Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37497 | ||
Entity Registrant Name | LIVE OAK BANCSHARES, INC. | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 26-4596286 | ||
Entity Address, Address Line One | 1741 Tiburon Drive | ||
Entity Address, City or Town | Wilmington | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28403 | ||
City Area Code | 910 | ||
Local Phone Number | 790-5867 | ||
Title of 12(b) Security | Voting Common Stock, no par value per share | ||
Trading Symbol | LOB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Files | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 876,352,160 | ||
Entity Common Stock, Shares Outstanding (in shares) | 44,769,239 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement for the 2024 Annual Meeting of Shareholders, which the registrant plans to file subsequent to the date hereof, are incorporated by reference into Part III. Portions of the registrant's annual report to shareholders for the year ended December 31, 2023, which will be posted on the registrant's website and furnished to the SEC subsequent to the date hereof, are incorporated by reference into Part II. | ||
Entity Central Index Key | 0001462120 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | FORVIS, LLP |
Auditor Location | Greenville, North Carolina |
Auditor Firm ID | 686 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 582,540 | $ 280,239 |
Federal funds sold | 0 | 136,397 |
Certificates of deposit with other banks | 250 | 4,000 |
Investment securities available-for-sale | 1,126,160 | 1,014,719 |
Loans held for sale | 387,037 | 554,610 |
Loans and leases held for investment (includes $388,036 and $494,458 measured at fair value, respectively) | 8,633,847 | 7,344,178 |
Allowance for credit losses on loans and leases | (125,840) | (96,566) |
Net loans and leases | 8,508,007 | 7,247,612 |
Premises and equipment, net | 257,881 | 263,290 |
Foreclosed assets | 6,481 | 0 |
Servicing assets (includes $48,186 and $26,323 measured at fair value, respectively) | 48,591 | 26,323 |
Other assets | 354,476 | 328,308 |
Total assets | 11,271,423 | 9,855,498 |
Deposits: | ||
Noninterest-bearing | 259,270 | 194,100 |
Interest-bearing | 10,015,749 | 8,690,828 |
Total deposits | 10,275,019 | 8,884,928 |
Borrowings | 23,354 | 83,203 |
Other liabilities | 70,384 | 76,334 |
Total liabilities | 10,368,757 | 9,044,465 |
Shareholders’ equity | ||
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding at September 30, 2023 and December 31, 2022 | 0 | 0 |
Retained earnings | 642,817 | 572,497 |
Accumulated other comprehensive loss | (84,719) | (92,318) |
Total shareholders’ equity | 902,666 | 811,033 |
Total liabilities and shareholders’ equity | 11,271,423 | 9,855,498 |
Class A Common Stock | ||
Shareholders’ equity | ||
Common stock | 344,568 | 330,854 |
Class B Common Stock | ||
Shareholders’ equity | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Total Loans and Leases | $ 8,655,865 | $ 7,348,612 |
Servicing asset, fair value | $ 48,186 | $ 26,323 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Receivables Under The Fair Value Option Member | ||
Total Loans and Leases | $ 388,036 | $ 494,458 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 44,617,673 | 44,061,244 |
Common stock outstanding (in shares) | 44,617,673 | 44,061,244 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock issued (in shares) | 0 | 0 |
Common stock outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income | |||
Loans and fees on loans | $ 623,667 | $ 418,545 | $ 347,738 |
Investment securities, taxable | 33,497 | 19,667 | 12,533 |
Other interest earning assets | 31,111 | 6,261 | 942 |
Total interest income | 688,275 | 444,473 | 361,213 |
Interest expense | |||
Deposits | 340,207 | 115,035 | 59,740 |
Borrowings | 2,763 | 1,937 | 4,688 |
Total interest expense | 342,970 | 116,972 | 64,428 |
Net interest income | 345,305 | 327,501 | 296,785 |
Provision for loan and lease credit losses | 51,323 | 40,943 | 15,210 |
Net interest income after provision for loan and lease credit losses | 293,982 | 286,558 | 281,575 |
Noninterest income | |||
Loan servicing revenue | 27,399 | 25,359 | 25,219 |
Loan servicing asset revaluation | 4,886 | (16,577) | (11,726) |
Net gains on sales of loans | 46,545 | 43,244 | 67,280 |
Net (loss) gain on loans accounted for under the fair value option | (3,539) | 1,046 | 4,257 |
Equity method investments (loss) income | (5,994) | 144,250 | (1,716) |
Equity security investments (losses) gains, net | (969) | 3,355 | 44,752 |
Lease income | 10,007 | 10,084 | 10,263 |
Management fee income | 13,324 | 10,090 | 6,378 |
Other noninterest income | 20,074 | 17,141 | 15,493 |
Total noninterest income | 111,733 | 237,992 | 160,200 |
Noninterest expense | |||
Salaries and employee benefits | 175,052 | 170,822 | 124,932 |
Travel expense | 8,922 | 8,499 | 5,809 |
Professional services expense | 7,737 | 11,737 | 15,135 |
Advertising and marketing expense | 12,559 | 10,543 | 5,002 |
Occupancy expense | 8,490 | 11,088 | 8,423 |
Technology expense | 31,858 | 28,434 | 22,648 |
Equipment expense | 14,997 | 15,120 | 14,869 |
Other loan origination and maintenance expense | 14,804 | 13,168 | 13,529 |
Renewable energy tax credit investment impairment | 14,644 | 16,217 | 3,187 |
FDIC insurance | 16,670 | 9,756 | 7,070 |
Contributions and donations | 0 | 6,462 | 2,331 |
Other expense | 17,152 | 12,380 | 8,052 |
Total noninterest expense | 322,885 | 314,226 | 230,987 |
Income before taxes | 82,830 | 210,324 | 210,788 |
Income tax expense | 8,932 | 34,116 | 43,793 |
Net income | $ 73,898 | $ 176,208 | $ 166,995 |
Basic earnings per share (in dollars per share) | $ 1.67 | $ 4.02 | $ 3.87 |
Diluted earnings per share (in dollars per share) | $ 1.64 | $ 3.92 | $ 3.71 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 73,898 | $ 176,208 | $ 166,995 |
Other comprehensive income (loss) before tax: | |||
Net unrealized gain (loss) on investment securities available-for-sale during the period | 9,999 | (124,032) | (25,738) |
Reclassification adjustment for gain on sale of securities available- for-sale included in net income | 0 | 0 | 0 |
Other comprehensive income (loss) before tax | 9,999 | (124,032) | (25,738) |
Income tax (expense) benefit | (2,400) | 29,768 | 6,177 |
Other comprehensive income (loss), net of tax | 7,599 | (94,264) | (19,561) |
Total comprehensive income | $ 81,497 | $ 81,944 | $ 147,434 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Common stock Class A Common Stock | Common stock Class B Common Stock | Retained earnings | Accumulated other comprehensive income (loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 41,344,689 | 1,107,757 | ||||
Beginning balance at Dec. 31, 2020 | $ 567,850 | $ 310,619 | $ 235,724 | $ 21,507 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 166,995 | 166,995 | ||||
Other comprehensive income (loss) | (19,561) | (19,561) | ||||
Issuance of restricted stock (in shares) | 453,127 | |||||
Tax withholding related to vesting of restricted stock and other | (19,151) | (19,151) | ||||
Employee stock purchase program (in shares) | 13,674 | |||||
Employee stock purchase program | 670 | 670 | ||||
Non-voting common stock converted to voting common stock in private sale | 982,733 | (982,733) | ||||
Stock option exercises (in shares) | 709,823 | |||||
Stock option exercises | 4,158 | 4,158 | ||||
Stock option based compensation expense | 1,379 | 1,379 | ||||
Restricted stock expense | 15,572 | 15,572 | ||||
Transfer from retained earnings to other assets for pro rata portion of equity method investee stock compensation expense | 3,360 | 3,360 | ||||
Repurchase and retirement of shares securing a note receivable (in shares) | (10,000) | |||||
Repurchase and retirement of shares securing a note receivable | (953) | (953) | ||||
Cash dividends | (5,186) | (5,186) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 43,494,046 | 125,024 | ||||
Ending balance at Dec. 31, 2021 | 715,133 | 312,294 | 400,893 | 1,946 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 176,208 | 176,208 | ||||
Other comprehensive income (loss) | (94,264) | (94,264) | ||||
Issuance of restricted stock (in shares) | 211,235 | |||||
Tax withholding related to vesting of restricted stock and other | (4,972) | (4,972) | ||||
Employee stock purchase program (in shares) | 29,383 | |||||
Employee stock purchase program | 1,067 | 1,067 | ||||
Non-voting common stock converted to voting common stock in private sale | 125,024 | (125,024) | ||||
Stock option exercises (in shares) | 201,556 | |||||
Stock option exercises | 2,118 | 2,118 | ||||
Stock option based compensation expense | 942 | 942 | ||||
Restricted stock expense | $ 19,405 | 19,405 | ||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2022-02 [Member] | |||||
Transfer from retained earnings to other assets for pro rata portion of equity method investee stock compensation expense | $ 662 | 662 | ||||
Cash dividends | (5,266) | (5,266) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 44,061,244 | 0 | ||||
Ending balance at Dec. 31, 2022 | 811,033 | 330,854 | 572,497 | (92,318) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 73,898 | 73,898 | ||||
Other comprehensive income (loss) | 7,599 | 7,599 | ||||
Issuance of restricted stock (in shares) | 373,616 | |||||
Tax withholding related to vesting of restricted stock and other | (6,725) | (6,725) | ||||
Employee stock purchase program (in shares) | 59,074 | |||||
Employee stock purchase program | $ 1,396 | 1,396 | ||||
Stock option exercises (in shares) | 148,551 | 123,739 | ||||
Stock option exercises | $ 1,168 | 1,168 | ||||
Stock option based compensation expense | 272 | 272 | ||||
Restricted stock expense | 17,603 | 17,603 | ||||
Transfer from retained earnings to other assets for pro rata portion of equity method investee stock compensation expense | 1,072 | 1,072 | ||||
Cash dividends | (5,326) | (5,326) | ||||
Ending balance (in shares) at Dec. 31, 2023 | 44,617,673 | 0 | ||||
Ending balance at Dec. 31, 2023 | $ 902,666 | $ 344,568 | $ 642,817 | $ (84,719) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 73,898 | $ 176,208 | $ 166,995 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 21,271 | 20,779 | 21,366 |
Provision for loan and lease credit losses | 51,323 | 40,943 | 15,210 |
Amortization of premium on securities, net of accretion | 8 | 3,420 | 6,461 |
Deferred tax (benefit) expense | (22,161) | 27,129 | 24,808 |
Originations of loans held for sale | (877,083) | (1,042,061) | (1,364,168) |
Proceeds from sales of loans held for sale | 1,362,803 | 1,067,758 | 1,092,222 |
Net gains on sale of loans held for sale | (46,545) | (43,244) | (67,280) |
Net loss (gain) on impairment and sale of foreclosed assets | 751 | (24) | (779) |
Net loss (gain) on loans accounted for under fair value option | 3,539 | (1,046) | (4,257) |
Net change in servicing assets | (22,268) | 7,251 | 344 |
Net gain on sale or disposal of long lived asset | (4,411) | 0 | (114) |
Net loss (gain) on disposal of premises and equipment | 377 | 31 | (48) |
Impairment on premises and equipment, net | 499 | 0 | 904 |
Equity method investments loss (income) | 5,994 | (144,250) | 1,716 |
Equity security investments losses (gains), net | 969 | (3,355) | (44,752) |
Renewable energy tax credit investment impairment | 14,644 | 16,217 | 3,187 |
Stock option compensation expense | 272 | 942 | 1,379 |
Restricted stock compensation expense | 17,603 | 19,405 | 15,572 |
Stock based compensation excess tax (deficiency) benefit | (1,004) | 531 | 9,340 |
Business combination contingent consideration fair value adjustment | 125 | (86) | 99 |
Lease right-of-use assets and liabilities, net | (59) | 232 | (26) |
Changes in assets and liabilities: | |||
Other assets | 35,556 | (15,889) | 1,754 |
Other liabilities | 3,970 | (6,406) | 350 |
Net cash provided (used) by operating activities | 620,071 | 124,485 | (119,717) |
Cash flows from investing activities | |||
Purchases of investment securities available-for-sale | (215,595) | (397,346) | (428,246) |
Proceeds from sales, maturities, calls, and principal paydowns of investment securities available-for-sale | 114,145 | 161,227 | 240,093 |
Proceeds from SBA reimbursement/sale of foreclosed assets, net | 0 | 1,837 | 6,786 |
Maturities of certificates of deposit with other banks | 3,750 | 750 | 1,750 |
Loan and lease originations and principal collections, net | (1,626,084) | (1,268,871) | 8,824 |
Proceeds from sale of long lived asset | 18,588 | 0 | 8,988 |
Purchases of equity security investments | (3,390) | (9,283) | 0 |
Purchases of equity method investments | (27,209) | (35,955) | 0 |
Proceeds from sale of equity security investments | 0 | 625 | 15,000 |
Proceeds from sale of equity method investments | 7,612 | 148,423 | 0 |
Proceeds from sale of premises and equipment | 100 | 0 | 84 |
Purchases of premises and equipment, net | (46,839) | (43,751) | (3,082) |
Net cash used by investing activities | (1,774,922) | (1,442,344) | (149,803) |
Cash flows from financing activities | |||
Net increase in deposits | 1,390,091 | 1,772,884 | 1,399,216 |
Proceeds from borrowings | 2,906,071 | 62,096 | 602,848 |
Repayment of borrowings | (2,965,920) | (297,182) | (1,826,652) |
Stock option exercises | 1,168 | 2,118 | 4,158 |
Employee stock purchase program | 1,396 | 1,067 | 670 |
Withholding cash issued in lieu of restricted stock and other | (6,725) | (4,972) | (19,151) |
Repurchase and retirement of shares | 0 | 0 | (953) |
Shareholder dividend distributions | (5,326) | (5,266) | (5,186) |
Net cash provided by financing activities | 1,320,755 | 1,530,745 | 154,950 |
Net increase (decrease) in cash and cash equivalents | 165,904 | 212,886 | (114,570) |
Cash and cash equivalents at beginning of year | 416,636 | 203,750 | 318,320 |
Cash and cash equivalents at end of year | 582,540 | 416,636 | 203,750 |
Supplemental disclosure of cash flow information | |||
Interest paid | 342,766 | 117,516 | 66,844 |
Income tax paid, net | 5,303 | 24,708 | 19,722 |
Supplemental disclosures of noncash operating, investing, and financing activities | |||
Unrealized holding gains (losses) on investment securities available-for-sale, net of taxes | 7,599 | (94,264) | (19,561) |
Transfers from loans and leases to foreclosed real estate and other repossessions or SBA receivable | 39,901 | 18,496 | 13,346 |
Net transfers between foreclosed real estate and SBA receivable | 0 | (15) | (1,643) |
Transfer aircraft from premises and equipment, net to held for sale assets | 30,154 | 0 | 0 |
Transfer of loans held for sale to loans and leases held for investment | 275,408 | 930,612 | 638,696 |
Transfer of loans and leases held for investment to loans held for sale | 617,189 | 468,042 | 338,873 |
Transfer from retained earnings to other assets for pro rata portion of equity method investee stock compensation expense | 1,072 | 662 | 3,360 |
Equity method investment commitments | 7,715 | 17,022 | 0 |
Equity security investment commitments | 0 | 394 | 2,245 |
Change related to accounting change for ASU 2022-02 | $ 676 | $ 0 | $ 0 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization Live Oak Bancshares, Inc. (collectively with its subsidiaries including Live Oak Banking Company, the “Company”) is a bank holding company headquartered in Wilmington, North Carolina incorporated under the laws of North Carolina in December 2008. The Company conducts business operations primarily through its commercial bank subsidiary, Live Oak Banking Company (the “Bank”). The Bank was organized and incorporated under the laws of the State of North Carolina on February 25, 2008 and commenced operations on May 12, 2008. The Bank has satellite sales offices across the United States. The Bank specializes in providing lending and deposit related services to small businesses nationwide. A significant portion of the loans originated by the Bank are partially guaranteed by the Small Business Administration (“SBA”) under the 7(a) Loan Program and the U.S. Department of Agriculture’s (“USDA”) Rural Energy for America Program (“REAP”), Water and Environmental Program (“WEP”), Business & Industry (“B&I”) and Community Facilities loan programs. These loans are to small businesses and professionals with what the Bank believes are lower risk characteristics. Industries, or “verticals,” on which the Bank focuses its lending efforts are carefully selected. The Bank also lends more broadly to select borrowers outside of those verticals. The Company’s wholly owned material subsidiaries are the Bank, Government Loan Solutions (“GLS”), Live Oak Grove, LLC (“Grove”), Live Oak Ventures, Inc. (“Live Oak Ventures”), and Canapi Advisors, LLC (“Canapi Advisors”). GLS is a management and technology consulting firm that advises and offers solutions and services to participants in the government guaranteed lending sector. GLS primarily provides services in connection with the settlement, accounting, and securitization processes for government guaranteed loans, including loans originated under the SBA 7(a) loan programs and USDA guaranteed loans. The Grove provides Company employees and business visitors with on-site dining. Live Oak Ventures’ purpose is investing in businesses that align with the Company's strategic initiative to be a leader in financial technology. Canapi Advisors provides investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies. The Bank’s wholly owned subsidiaries are Live Oak Number One, Inc., Live Oak Clean Energy Financing LLC (“LOCEF”), Live Oak Private Wealth, LLC (“Live Oak Private Wealth”) and Tiburon Land Holdings, LLC (“TLH”). Live Oak Number One, Inc. holds properties foreclosed on by the Bank. LOCEF provides financing to entities for renewable energy applications. Live Oak Private Wealth provides high-net-worth individuals and families with strategic wealth and investment management services. During the first quarter of 2022, Jolley Asset Management, LLC (“JAM”) was merged into Live Oak Private Wealth. JAM was previously a wholly owned subsidiary of Live Oak Private Wealth. TLH holds land adjacent to the Bank's headquarters consisting of wetlands and other protected property for the use and enjoyment of the Bank's employees and customers. Basis of Presentation Dollar amounts in all tables in the notes to consolidated financial statements have been presented in thousands, except percentage, time period, stock option, share and per share data. The accounting and reporting policies of the Company and the Bank follow United States generally accepted accounting principles (“GAAP”) and general practices within the financial services industry. The following is a description of the significant accounting and reporting policies the Company follows in preparing and presenting its consolidated financial statements. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. Consolidation Policy The consolidated financial statements include the financial statements of the Company and its directly and indirectly wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company evaluates its relationships with other entities to identify whether they are a voting interest entity or variable interest entity (“VIE”). Voting interest entities are entities that generally (1) have sufficient equity to finance their activities and (2) provide the equity investors with power to make significant decisions relating to the entity’s operations. A voting interest entity is consolidated if the Company holds majority voting rights. The Company is considered to hold a controlling financial interest in a VIE when it is the primary beneficiary. A primary beneficiary has both (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or right to receive benefits of a VIE that could potentially be significant to a VIE. The parties that make investment and investment decisions, or parties that can unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The Company considers all of its economic interests in the VIE when determining whether it has the obligation to absorb losses or the right to receive benefits from the VIE. For details on the Company’s VIE investments refer to Note 2. Securities, “Variable Interest Entities.” Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. Under the acquisition method, identifiable assets acquired and liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date, and are recognized separately from any resulting goodwill. Results of operations of the acquired entities are included in the consolidated statements of income and comprehensive income from the date of acquisition. Any subsequent measurement-period adjustments are recorded within 12 months of the acquisition date. Business Segments Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has two reportable operating segments: Banking and Fintech, as discussed more fully in Note 15. Segments. Use of Estimates In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities as of the date of the balance sheet and 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 change in the near term relate to the determination of the allowance for credit losses on loans and leases, valuations of loans at fair value and servicing assets. During the first quarter of 2023, the Company refined its allowance for credit losses (“ACL”) methodology for estimating probability of default (“PD”) and loss given default (“LGD”). Additionally, the Company began using internally calculated prepayment rates based on its historical information. These changes, based on the continued maturity of internal data, resulted in a $1.5 million increase in the ACL in the first quarter of 2023. The Company also refined its methodology for estimating its reserve on unfunded loan commitments by incorporating historical utilization rates on unused lines of credit and updating probability assumptions related to construction loan commitments. These changes resulted in a $2.4 million increase in the reserve on unfunded commitments in the first quarter of 2023. During the third quarter of 2023, the Company changed the valuation techniques used to estimate the fair value of servicing rights and loans measured at fair value as a result of rising interest rates and their impacts on market conditions. The changes include aligning our net servicing income and loan fair value estimates with changes in forward interest rate curves. Loan fair value estimates were also revised to utilize market participant credit loss information. These revisions provide estimates that the Company believes are more representative of fair value while transitioning from unobservable inputs to those that are more observable. These estimate changes were implemented as of July 1, 2023 and resulted in one-time adjustments to increase the estimated value of the servicing asset by $13.7 million and loans measured at fair value by $1.3 million. This adjustment also increased noninterest income by a corresponding $15.0 million. These refinements have been accounted for as changes in accounting estimates under Financial Accounting Standards Board (“FASB”) ASC 250, Accounting Changes and Error Corrections , with prospective application beginning in the period of change. Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet caption “cash and due from banks” and “federal funds sold.” Cash and cash equivalents have an initial maturity of three months or less. To comply with banking regulations, the Company is required to maintain certain average cash reserve balances. The daily average cash reserve requirement was suspended for the years ended December 31, 2023 and 2022. Certificates of Deposit with other Banks The certificate of deposit with other banks has a maturity of December 2024 and bears interest at a rate of 4.60%. All investments in certificates of deposit are with FDIC insured financial institutions and none exceed the maximum insurable amount of $250 thousand. Investments Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost. Securities that may be sold prior to maturity are classified as available-for-sale and recorded at fair value. Unrealized gains and losses for available-for-sale investment securities, other than certain credit-related impairment losses, are excluded from earnings and reported in other comprehensive income. The Company’s entire portfolio of debt securities is classified as available-for-sale for the periods presented. Purchase premiums and discounts on debt securities are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sales of these securities are recorded on the trade date and are determined using the specific identification method. When debt securities are in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. Debt securities that do not meet the aforementioned criteria are evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management has made the accounting policy election to exclude accrued interest receivable on available-for-sale debt securities from the estimate of credit losses. Securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. Equity Investments Equity investments are generally non-marketable investments and are included in the other assets line in the consolidated balance sheets. The Company generally accounts for equity investments either under the equity method or equity security accounting. Earnings impacts are reflected in the equity method investments (loss) income and equity security investments (losses) gains, net line items on the consolidated statements of income . Investments in in-substance common stock through which there is significant influence but not control over the investee are accounted for under the equity method. The determination of whether the Company has significant influence over an investee requires judgement based on the facts and circumstances of each investment including, share type, level of ownership, power to control and legal structure. Significant influence is generally presumed to exist in privately held companies where the Company owns at least 20% of voting stock, or 5% interest in limited partnerships or limited liability companies. Qualitatively, significant influence can exist through the ability to influence the investee’s operating and financial policies through board involvement or other influence. Under the equity method, the Company recognizes its proportionate share of the results of operations of the investee based on most current information available. In instances where cash distributions vary at different points and/or are not directly linked to the Company’s ownership percentage, the investee’s net income or loss is allocated using the hypothetical liquidation at book value (“HLBV”) method. Investments that do not qualify as in-substance common stock, or through which the Company is not able to exercise significant influence over the investee, are accounted for as equity securities, whereby investments are measured at fair value with changes in fair value recognized in net income, unless those investments have no readily determinable fair value. Investments without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus changes in value resulting from observable price changes arising from orderly transactions . Management considers a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted. For equity securities not accounted for at fair value, any impairment is recognized with the full charge recorded in earnings. To determine whether an equity security may be impaired, the Company considers various indicators of impairment, including, but not limited to (1) the financial condition and near-term prospects of the issuer, (2) adverse market conditions and (3) bona-fide offers to purchase an equity interest in the investee below the carrying amount. Federal Home Loan Bank Stock Membership in the Federal Home Loan Bank of Atlanta (“FHLB”) requires ownership of FHLB stock. FHLB stock is restricted because it may only be sold to the FHLB and all sales must be at par. FHLB stock is carried at cost minus impairment, if any, and is recorded within other assets in the consolidated balance sheets. FHLB stock was $6.8 million and $4.1 million at December 31, 2023 and 2022, respectively. Loans and Leases Fair Value Option Prior to 2021, management elected to account for the retained participating interests in government guaranteed loans under the fair value option. Those loans for which the fair value option were elected are measured at fair value and classified as either held for sale or held for investment, as outlined below. Not electing fair value generally results in a larger discount being recorded on the date of the sale. This discount is subsequently accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this change of election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. In accordance with accounting standards, any loans for which fair value was previously elected continue to be measured accordingly. Interest income is recognized in the same manner on loans reported at fair value as on non-fair value loans, except in regard to origination fees and costs which are recognized immediately upon fair value election. The changes in fair value of loans are reported in noninterest income. Fair value of loans includes adjustments for historical credit losses, market liquidity, and economic conditions. Management estimates the fair value of loans accounted for under the fair value option using a discounted cash flow (“DCF”) methodology. The estimate incorporates assumptions that market participants would use to estimate fair value of similar assets such as prepayment speeds, default and severity rates, and a discount rate. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Held for Sale Management designates loans as held for sale based on its intent to sell loans, or portions of loans, in established secondary markets or to participant banks and credit unions. Salability requirements of government guaranteed portions include, but are not limited to, full disbursement of the loan commitment amount. Loans held for sale are carried at either fair value, if the fair value option is elected, or the lower of cost or estimated fair value. Net unrealized losses, if any, on loans without a fair value election, are recognized through a valuation allowance and recorded as a charge to noninterest income. The cost basis of loans held for sale includes unamortized loan origination fees and costs. The pro-rata portion, based on the percent of the total loan sold, of the remaining deferred fees and costs are recognized as an adjustment to the gain on sale. Transfers of loans, or portions of loans that meet the definition of a participating interest are accounted for as sales on the transaction settlement date when control has been surrendered. Control is deemed surrendered when the loans have been (1) legally isolated from the Company, (2) the transferee obtains the right to pledge or transfer the loans free of conditions that constrain it from using that right, and (3) the Company does not maintain effective control over the loans through a repurchase agreement or other means. If the transfer is accounted for as a sale, the loans are derecognized from the Company’s consolidated balance sheet and a gain or loss is recognized in net gains on sales of loans line item on the consolidated statements of income. The gain on sale recognized in income is the sum of the premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the transferred loans remaining on the Company’s consolidated balance sheet and proceeds recognized as a liability. In accordance with SBA and USDA regulation, the Bank is required to retain 10% and 7.5% of the principal balance of any SBA 7(a) or USDA loan, respectively, comprised of unguaranteed dollars. With written consent from the SBA, the Bank may sell down to a 5% exposure comprised of unguaranteed dollars. The Company occasionally transfers loans between the held for sale and held for investment classifications based on its intent and ability to hold or sell loans. Management’s intent to sell may be impacted by secondary market conditions, loan credit quality, or other factors. The following summarizes the activity pertaining to loans held for sale for the years ended December 31, 2023 and 2022: 2023 2022 Balance at beginning of year $ 554,610 $ 1,116,519 Originations 877,083 1,042,061 Proceeds from sale (1,362,803) (1,067,758) Gain on sale of loans 46,545 43,244 Principal collections, net of deferred fees and costs (70,179) (116,886) Non-cash transfers, net 341,781 (462,570) Balance at end of period $ 387,037 $ 554,610 Held for Investment Loans and leases receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are classified as held for investment and generally reported at their outstanding principal amount, net of unearned income unless the fair value option has been elected. For such loans not carried at fair value, loan origination fees and direct origination costs are deferred and recognized as an adjustment of the loan yield using the interest method. Discounts and premiums on any purchased loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. Interest income on loans and leases is recognized as earned on a daily accrual basis at the applicable interest rate. Loans and leases designated as held for investment include those identified as more beneficial to hold for the long term as well as the required retention amount defined by the SBA and USDA. Loans and leases held for investment also consist of certain guaranteed and unguaranteed credits including nonaccrual, non-marketable, and risk grade 5 or worse as defined by internal risk rating metrics. Nonaccrual and Past Due Loans Past due status of loans and leases is determined based on contractual terms. Loans and leases are placed in nonaccrual status and the accrual of interest is discontinued if they become 90 days delinquent or there is evidence that the borrower’s ability to make the required payments is not probable. When interest accrual is discontinued, all unpaid accrued interest is reversed against current interest income. Loans and leases, or portions thereof, are charged off when deemed uncollectible. Al lowance for Credit Losses The ACL is a valuation account that is deducted from the amortized cost basis of loans and leases to present a net amount expected to be collected. The ACL is not applicable to loans held for sale and loans accounted for under the fair value option. Loans and leases are charged-off against the ACL when management believes the uncollectibility of a loan or lease balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company’s ACL on loans and leases is estimated using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As a result, the impact of loss mitigation strategies, such as loan modifications and restructurings, are captured in the estimates of LGD and PD. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses. The ACL is measured on a pooled basis using a quantitative modeling process when similar risk characteristics are present in the portfolio. The Company has identified pools based on industry, which aggregates into divisions, and whether the receivable is secured by real estate or another form of collateral. Additional information related to the portfolio segments can be found in Note 3. Loans and Leases Held for Investment and Credit Quality. Expected credit losses for pooled loans and leases are estimated using a DCF methodology for each loan which incorporates measurements of PD, LGD, prepayments, the estimated outstanding exposure at default (“EAD”), and the effective interest rate (“EIR”). PD rates are calculated using the number of defaults divided by the number of loans available to default for 1-year observation periods over the lifetime of data available for a certain pool. LGD rates are calculated by dividing the lifetime net charge-offs for each pool by the pool’s average outstanding balance. PD and LGD rates are adjusted for forecasted national unemployment rates during a reasonable and supportable forecast period. Management has determined that four quarters represents a reasonable and supportable forecast period and adjusted loss rates revert back to a historical loss rate over four quarters on a straight-line basis. Expected losses are calculated as the product of PD, LGD, and EAD. Expected losses are discounted using the loan or lease EIR, adjusted for prepayments. Management adjusts historical loss information for differences in current risk characteristics that are not considered within the quantitative modeling processes but are relevant in assessing the expected credit losses within the loan and lease pools. These qualitative factor adjustments generally increase management’s estimate of expected credit losses based upon the estimated level of risk. The various risk factors considered in qualitative adjustments include risk grading, delinquency levels, pool age, portfolio mix and growth rates, and the status of servicing efforts which may be impacted by natural disasters or health pandemics. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Loans or leases that do not share risk characteristics are evaluated on an individual basis and are excluded from the pooled evaluation. This generally occurs when, based on current information and events, it is probable that the Company will be unable to collect all interest and principal payments due according to the originally contracted, or reasonably modified, terms of the loan or lease agreement. The Company has determined that loans and leases meeting the criteria defined below must be reviewed quarterly to determine if they should be evaluated for expected credit losses on an individual basis. • All commercial loans and leases classified substandard or worse. • Any loan or lease that is on nonaccrual, or any loan or lease that is delinquent greater than 90 days past due and still accruing interest. • Prior to January 1, 2023, any loan or lease that was restructured with an interest rate concession and met the definition of a troubled debt restructuring (“TDR”). The Company estimates reserves on individually evaluated loans and leases using a DCF methodology or through the evaluation of collateral values. During the quarter ended September 30, 2021, management updated the Company’s policy for estimating expected credit losses on certain relationships that would otherwise meet the criteria for individual evaluation. Relationships with unguaranteed exposure of less than $250 thousand are now collectively evaluated using an average of loss rates applied to individually evaluated relationships with unguaranteed exposure between $250 thousand and $1.0 million. The impact of this change on the ACL was not considered material. Expected credit losses are estimated over the contractual term of the loan or lease, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless management has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower or the extension or renewal options are included in the contract at the reporting date and are not unconditionally cancellable by the Company. When the ACL, for pooled or individually evaluated loans and leases, is estimated using the DCF method, the EIR used to discount expected cash flows is adjusted for expected prepayments. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Allowance for Off-Balance Sheet Credit Exposures Expected credit losses on off-balance sheet credit exposures is estimated over the contractual period in which the Company is exposed to such losses, unless the obligation to extend credit is unconditionally cancellable. The estimate of off-balance sheet credit exposures includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated losses. The estimate is influenced by historical loss experience, adjusted for current risk characteristics, and economic forecasts. The balance of the allowance for off-balance sheet credit exposures was $4.8 million and $1.5 million at December 31, 2023 and 2022, respectively, and is recorded in other expense in the consolidated statements of income and other liabilities in the consolidated balance sheets. Equipment Leasing The Company may purchase new equipment for the purpose of leasing such equipment to customers within its verticals. Equipment purchased to fulfill commitments to commercial renewable energy projects is leased out under operating leases while leases of equipment outside of the renewable energy vertical are generally direct financing leases. Accordingly, leased assets under operating leases are included in premises and equipment while leased assets under direct financing leases are included in loans and leases held for investment in the consolidated balance sheets. Direct Financing Leases Interest income on direct financing leases is recognized when earned. Unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. The term of each lease is generally 3-7 years which is consistent with the useful life of the equipment with no residual value. The Company records expected credit losses on direct finance leases within the ACL. Operating Leases The term of each operating lease is generally 10 to 15 years. The Company retains ownership of the equipment and associated tax benefits such as investment tax credits and accelerated depreciation. At the end of the lease term, the lessee has the option to renew the lease for two additional terms or purchase the equipment at the then-current fair market value. Rental revenue from operating leases is recognized on a straight-line basis over the term of the lease. Rental equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful life. The useful lives generally range from 20 to 25 years and residual values generally range from 20% to 50%, however, they are subject to periodic evaluation. Changes in useful lives or residual values will impact depreciation expense and any gain or loss from the sale of used equipment. The estimated useful lives and residual values of the Company's leasing equipment are based on industry disposal experience and the Company's expectations for future sale prices. If the Company decides to sell or otherwise dispose of rental equipment, it is carried at the lower of cost or fair value less costs to sell or dispose. Repair and maintenance costs that do not extend the lives of the rental equipment are charged to direct operating expenses at the time the costs are incurred. The Company evaluates the carrying value of rental equipment for impairment whenever events or circumstances have occurred that would indicate the carrying a |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Available-for-Sale The carrying amount of securities and their approximate fair values are reflected in the following table: December 31, 2023 Amortized Unrealized Unrealized Fair U.S. government agencies $ 17,809 $ 2 $ 282 $ 17,529 Mortgage-backed securities 1,216,624 466 111,498 1,105,592 Municipal bonds 3,200 — 161 3,039 Total $ 1,237,633 $ 468 $ 111,941 $ 1,126,160 December 31, 2022 U.S. government agencies $ 16,080 $ — $ 412 $ 15,668 Mortgage-backed securities 1,116,387 270 121,083 995,574 Municipal bonds 3,223 — 246 2,977 Other debt securities 500 — — 500 Total $ 1,136,190 $ 270 $ 121,741 $ 1,014,719 During the year ended December 31, 2023, three securities totaling $13.0 million were called and four securities totaling $7.0 million were settled. During the year ended December 31, 2022, two securities totaling $7.5 million matured and twenty securities totaling $36.5 million were settled. During the year ended December 31, 2021, one security totaling $5.0 million matured and twelve securities totaling $33.1 million were settled. The following tables show debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized U.S. government agencies $ — $ — $ 15,057 $ 282 $ 15,057 $ 282 Mortgage-backed securities 138,823 3,431 886,699 108,067 1,025,522 111,498 Municipal bonds — — 3,039 161 3,039 161 Total $ 138,823 $ 3,431 $ 904,795 $ 108,510 $ 1,043,618 $ 111,941 Less Than 12 Months 12 Months or More Total December 31, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. government agencies $ 15,668 $ 412 $ — $ — $ 15,668 $ 412 Mortgage-backed securities 513,639 29,060 456,972 92,023 970,611 121,083 Municipal bonds 2,884 241 93 5 2,977 246 Total $ 532,191 $ 29,713 $ 457,065 $ 92,028 $ 989,256 $ 121,741 At December 31, 2023, there were 409 mortgage-backed securities, five U.S. government agencies and two municipal bonds in unrealized loss positions for greater than 12 months. There were 27 mortgage-backed securities in unrealized loss positions for less than 12 months. Unrealized losses at December 31, 2022 consisted of 185 mortgage-backed securities and one municipal bond for greater than 12 months. There were 236 mortgage-backed securities, five U.S. government agencies, and one municipal bond in unrealized loss positions for less than 12 months. These unrealized losses are primarily the result of non-credit-related volatility in the market and market interest rates. Since none of the unrealized losses relate to the issuer’s ability to honor redemption obligations, and the Company does not intend to sell the related securities and does not believe it is more likely than not that it will be required to sell the securities before recovery of amortized cost, none of the losses have been recognized in the Company’s consolidated statement of income. All mortgage-backed securities in the Company’s portfolio at December 31, 2023 and 2022 were backed by U.S. government sponsored enterprises (“GSEs”). The following is a summary of investment securities by maturity: December 31, 2023 Available-for-sale Amortized Cost Fair Value U.S. government agencies Within one year $ 3,000 $ 2,976 One to five years 12,430 12,218 Five to ten years 2,379 2,335 Total 17,809 17,529 Mortgage-backed securities Within one year 12,358 12,319 One to five years 179,740 170,908 Five to ten years 240,665 216,013 After 10 years 783,861 706,352 Total 1,216,624 1,105,592 Municipal bonds Five to ten years 3,103 2,954 After 10 years 97 85 Total 3,200 3,039 Total $ 1,237,633 $ 1,126,160 The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may repay sooner than scheduled. There were no investment securities pledged at December 31, 2023 or 2022. Equity Investments Equity investments, largely comprised of non-marketable equity investments, are generally accounted for under either the equity method or equity security accounting. The below tables provide additional information related to investments accounted for under these two methods. Equity Method Accounting The carrying amount and ownership percentage of each equity method investment at December 31, 2023 and 2022 is reflected in the following table: 2023 2022 Amount Ownership % Amount Ownership % Apiture, Inc. $ 60,682 40.4 % $ 60,320 40.3 % Canapi Ventures SBIC Fund, LP (1) (5) (8) 18,190 2.9 19,246 2.9 Canapi Ventures Fund, LP (2) (5) (9) 2,267 1.5 2,382 1.5 Canapi Ventures Fund II, LP (3) (5) (9) 7,232 1.6 7,412 1.6 Canapi Ventures SBIC Fund II, LP (4) (5) (8) 7,611 2.9 7,981 3.7 Other investments in fintech private companies (6) — — 241 4.3 Other (7) (8) 22,932 Various 12,476 Various Total $ 118,914 $ 110,058 (1) Includes unfunded commitments of $5.0 million and $5.5 million as of December 31, 2023 and 2022, respectively. (2) Includes unfunded commitments of $559 thousand and $617 thousand as of December 31, 2023 and 2022, respectively. (3) Includes unfunded commitments of $6.3 million and $6.9 million as of December 31, 2023 and 2022, respectively. (4) Includes unfunded commitments of $7.1 million and $7.5 million as of December 31, 2023 and 2022, respectively. (5) Investee is accounted for under equity method due to the Company's participation as an investment advisor. (6) As of December 31, 2022, Other Fintech investments included Kwipped, Inc. As of December 31, 2023, the investment has been moved to equity security as the preferred shares do not qualify as in-substance common stock. (7) As of December 31, 2023, Other investments include low income housing tax credit (“LIHTC”) in Estrella Landing Apartments, LLC (“Estrella Landing”), in which the company holds a 99.9% limited member interest. Also included in Other investments are solar income tax credit investments in Green Sun Tenant, LLC (“Green Sun”), SVA 2021-2 TE Holdco, LLC (“Sun Vest”), EG5 CSP1 Holding, LLC (“HEP”) and HRE MM I, LLC (“Heelstone”), which the Company holds a 99.0% limited member interest in all investments. Also included are Cape Fear Collective Impact Opportunity 1, LLC (“Cape Fear Collective”), Cape Fear Collective Impact Opportunity 2, LLC (“Cape Fear Collective 2”) and OTR Fund I, LLC (“OTR”) which the Company holds 91.0%, 32.3%, and 11.5% of limited member interests, respectively. As of December 31, 2023, there was an unfunded commitment of $7.7 million for Estrella Landing. As of December 31, 2022, Other investments include Green Sun, Sun Vest, and HEP, which the Company holds a 99.0% limited member interest in all investments. Also included within Other investments are Cape Fear Collective and Cape Fear Collective 2, which the Company holds 99.0% and 32.3% of limited member interests, respectively. As of December 31, 2022 an unfunded commitment of $2.6 million was recorded as a liability for HEP, and as of December 31, 2023, this commitment has been funded. Managing control of the above investments resides with the managing members. (8) Investments reported in Banking segment. (9) Investments reported in Other segment. Equity Security Accounting The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis as of December 31, 2023 and for the years ended December 31, 2023, 2022 and 2021 is reflected in the following table: Cumulative Adjustments 2023 2022 2021 Carrying value (1) $ 77,825 $ 76,438 $ 63,321 Carrying value adjustments: Impairment $ — — — — Upward changes for observable prices (2) 50,492 — 2,022 30,197 Downward changes for observable prices (1,610) (1,524) — — Net upward (downward) change $ 48,882 $ (1,524) $ 2,022 $ 30,197 (1) Includes $2.3 million, $3.0 million and $2.8 million in unfunded commitments for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Cumulative adjustments excludes $13.9 million in realized cash gains for the sale of an investment in the second quarter of 2021. For the twelve months ended December 31, 2023, 2022 and 2021, the Company recognized unrealized (losses) gains on all equity securities still held at the reporting date of $(1.5) million, $1.9 million, and $44.0 million, respectively. Variable Interest Entities Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in the fair value of an entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. Solar Renewable Energy Tax Credit Investments The Company has equity interests in several limited liability companies that own and operate solar renewable energy projects which are accounted for as equity method investments. Over the course of the investments, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. Affordable Housing The Company has an equity investment in a limited liability company LIHTC that qualifies as an affordable housing project, managed by an unrelated general partner. The Company accounts for the investment under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense. The Company also has equity interests in two limited liability companies that invest in the acquisition, rehabilitation, or new construction of local qualified housing projects which are accounted for as equity method investments . Canapi Funds The Company’s limited partnership investments in the Canapi Funds focus on providing venture capital to new and emerging financial technology companies. After initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down. Non-marketable and Other Equity Investments The Company also has limited interests in several non-marketable funds, including Small Business Investment Company (“SBIC”) and venture capital funds, which are accounted for as equity security investments. After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down. While the partnership agreements allow the Company to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. All investments are generally non-redeemable and distributions are expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreement. The above investments meet the criteria of a VIE, however, the Company is not the primary beneficiary of the entities, as it does not have the power to direct the activities that most significantly impact the economic performance of the entities. The Company’s investment in the unconsolidated VIEs are carried in other assets and the Company’s unfunded capital and other commitments related to the unconsolidated VIEs are carried in other liabilities on the consolidated balance sheets. The Company’s maximum exposure to loss from unconsolidated VIEs includes the investment recorded on the Company’s consolidated balance sheets. For solar tax credit investments, the balance sheet figures are net of any impairment recognized, and includes previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes the potential for loss from these investments is remote, the maximum exposure for solar tax credit investments was determined by assuming a scenario where related tax credits were recaptured. The following table provides a summary of the VIEs that the Company has not consolidated as of December 31, 2023 and 2022: December 31, 2023 Carrying Amount Maximum Exposure to Loss Liability Recognized Classification Solar tax credit investments $ 6,714 $ 38,228 $ — Other assets (1) Affordable housing 15,611 15,611 7,715 Other assets & other liabilities (2) Canapi Funds 35,300 35,300 18,930 Other assets & other liabilities Non-marketable and other equity investments 8,840 8,840 2,321 Other assets & other liabilities December 31, 2022 Carrying Amount Maximum Exposure to Loss Liability Recognized Classification Solar tax credit investments $ 5,221 $ 24,295 $ 2,641 Other assets & other liabilities (3) Affordable housing 7,255 7,255 — Other assets Canapi Funds 37,021 37,021 20,474 Other assets & other liabilities Non-marketable and other equity investments 8,509 8,509 3,033 Other assets & other liabilities (1) Maximum exposure to loss represents $6.7 million of current investments and a scenario in which $31.5 million in related tax credits are recaptured. (2) Maximum exposure to loss represents $15.6 million of investments. As there are no tax credits allocated in the current year, there is no increase to the maximum exposure to loss related to recaptured tax credits on the $8.8 million LIHTC investment. (3) Maximum exposure to loss represents $5.2 million of current investments and a scenario in which related tax credits are recaptured, collectively totaling $19.1 million. |
Loans and Leases Held for Inves
Loans and Leases Held for Investment and Credit Quality | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Leases Held for Investment and Credit Quality | Loans and Leases Held for Investment and Credit Quality Loan and Lease Portfolio Segments & Classes The following describes the risk characteristics relevant to each of the portfolio segments. Commercial and Industrial Commercial and industrial loans (“C&I”) receive similar underwriting treatment as commercial real estate loans in that the repayment source is analyzed to determine its ability to meet cash flow coverage requirements as set forth by Bank policies. Repayment of the Bank’s C&I loans generally comes from the generation of cash flow as the result of the borrower’s business operations. This business cycle itself brings a certain level of risk to the portfolio. In some instances, these loans may carry a higher degree of risk due to a variety of reasons – illiquid collateral, specialized equipment, highly depreciable assets, uncollectable accounts receivable, revolving balances, or simply being unsecured. As a result of these characteristics, the government guarantee on these loans, when applicable, is an important factor in mitigating risk. The Bank’s lease portfolio is included in the C&I segment. Construction and Development Construction and development loans are for the purpose of acquisition and development of land to be improved through the construction of commercial buildings. Such loans are usually paid off through the conversion to permanent financing for the long-term benefit of the borrower’s ongoing operations. At the completion of the project, if the loan is converted to permanent financing or if scheduled loan amortization begins, it is then reclassified to the Commercial Real Estate segment. Underwriting of construction and development loans typically includes analysis of not only the borrower’s financial condition and ability to meet the required debt obligations, but also the general market conditions associated with the area and type of project being funded. Commercial Real Estate Commercial real estate loans are extensions of credit secured by owner occupied and non-owner occupied collateral. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Such repayment of owner occupied loans is commonly derived from the successful ongoing operations of the business occupying the property. These typically include small businesses and professional practices. Commercial real estate loans may also include government guaranteed loans secured by collateral in the form of residential real estate. Repayment of such loans generally comes from the generation of cash flow as the result of the borrower’s business operations. Commercial Land Commercial land loans are extensions of credit secured by farmland. Such loans are often for land improvements related to agricultural endeavors that may include construction of new specialized facilities. These loans are usually repaid through the conversion to permanent financing, or if scheduled loan amortization begins, for the long-term benefit of the borrower’s ongoing operations. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. The loan and lease portfolio is further grouped into one of the following classes (also referred to as divisions): Small Business Banking, Specialty Lending, Energy & Infrastructure (“E&I”), or Paycheck Protection Program. Small Business Banking includes loans to customers in verticals that generally have traditional loan structures. Specialty Lending includes loans to customers in verticals that generally have atypical ownership structures as well as complex collateral arrangements, underwriting requirements, and servicing needs. E&I includes loans to customers that operate renewable energy projects, lodging facilities, and municipalities. E&I loans often utilize USDA or tax-exempt loan structures. Paycheck Protection Program (“PPP”) includes all loans originated under the PPP pursuant to the Coronavirus Aid, Relief, and Economic Security Act’s (“CARES Act”) economic relief program and carry a 100% government guarantee. These loans and lease classes were determined based on industry risk characteristics and management’s method for monitoring credit risk and managing those lending divisions. Past Due Loans and Leases Loans and leases are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans and leases less than 30 days past due and accruing are included within current loans and leases shown below. The following tables show an age analysis of past due loans and leases as of the dates presented. December 31, 2023 Current or Less than 30 Days Past Due 30-89 Days 90 Days or More Past Due Total Past Due Total Carried at Amortized Loans Accounted for Under the Fair Value Option (1) Total Loans and Leases Commercial & Industrial Small Business Banking $ 2,075,227 $ 16,570 $ 33,366 $ 49,936 $ 2,125,163 $ 151,887 $ 2,277,050 Specialty Lending 1,131,493 — — — 1,131,493 7,829 1,139,322 Energy & Infrastructure 842,907 2,806 4,044 6,850 849,757 46,185 895,942 Paycheck Protection Program 5,595 — — — 5,595 — 5,595 Total 4,055,222 19,376 37,410 56,786 4,112,008 205,901 4,317,909 Construction & Development Small Business Banking 413,349 1,745 — 1,745 415,094 — 415,094 Specialty Lending 47,419 — — — 47,419 — 47,419 Energy & Infrastructure 7,541 — — — 7,541 — 7,541 Total 468,309 1,745 — 1,745 470,054 — 470,054 Commercial Real Estate Small Business Banking 2,414,677 18,589 32,310 50,899 2,465,576 127,358 2,592,934 Specialty Lending 511,712 — 12,032 12,032 523,744 — 523,744 Energy & Infrastructure 158,613 — 3,072 3,072 161,685 17,751 179,436 Total 3,085,002 18,589 47,414 66,003 3,151,005 145,109 3,296,114 Commercial Land Small Business Banking 531,331 1,521 1,910 3,431 534,762 37,026 571,788 Total 531,331 1,521 1,910 3,431 534,762 37,026 571,788 Total $ 8,139,864 $ 41,231 $ 86,734 $ 127,965 $ 8,267,829 $ 388,036 $ 8,655,865 Retained Loan Discount and Net Deferred Costs $ (22,018) Loan and Leases, Net $ 8,633,847 Guaranteed Balance $ 2,877,105 $ 29,183 $ 61,107 $ 90,290 $ 2,967,395 $ 66,299 $ 3,033,694 % Guaranteed 35.3% 70.8% 70.5% 70.6% 35.9% 17.1% 35.0% December 31, 2022 Current or Less than 30 Days Past Due 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Carried at Amortized Loans Accounted for Under the Fair Value Option (1) Total Loans and Leases Commercial & Industrial Small Business Banking $ 1,987,508 $ 21,987 $ 16,487 $ 38,474 $ 2,025,982 $ 195,856 $ 2,221,838 Specialty Lending 754,272 — — — 754,272 15,576 769,848 Energy & Infrastructure 420,447 — 3,082 3,082 423,529 50,094 473,623 Paycheck Protection Program 13,134 — — — 13,134 — 13,134 Total 3,175,361 21,987 19,569 41,556 3,216,917 261,526 3,478,443 Construction & Development Small Business Banking 471,243 1,500 — 1,500 472,743 — 472,743 Specialty Lending 104,069 — — — 104,069 — 104,069 Energy & Infrastructure 13,753 — — — 13,753 — 13,753 Total 589,065 1,500 — 1,500 590,565 — 590,565 Commercial Real Estate Small Business Banking 2,149,662 12,082 5,771 17,853 2,167,515 168,409 2,335,924 Specialty Lending 306,785 — — — 306,785 236 307,021 Energy & Infrastructure 136,706 — 3,072 3,072 139,778 22,123 161,901 Total 2,593,153 12,082 8,843 20,925 2,614,078 190,768 2,804,846 Commercial Land Small Business Banking 429,014 1,663 1,917 3,580 432,594 42,164 474,758 Total 429,014 1,663 1,917 3,580 432,594 42,164 474,758 Total $ 6,786,593 $ 37,232 $ 30,329 $ 67,561 $ 6,854,154 $ 494,458 $ 7,348,612 Retained Loan Discount and Net Deferred Costs $ (4,434) Loan and Leases, Net $ 7,344,178 Guaranteed Balance $ 2,657,770 $ 20,199 $ 26,026 $ 46,225 $ 2,703,995 $ 67,268 $ 2,771,263 % Guaranteed 39.2% 54.3% 85.8% 68.4% 39.5% 13.6% 37.7% (1) Retained portions of government guaranteed loans sold prior to January 1, 2021 are carried at fair value under FASB ASC Subtopic 825-10, Financial Instruments: Overall. See Note 10. Fair Value of Financial Instruments for additional information. Credit Quality Indicators The Bank uses internal loan and lease reviews to assess the performance of individual loans and leases. Each loan and lease is assigned a risk grade during the origination and closing process. Subsequent to origination, loans and lease risk grades are continually evaluated as information becomes available. The Bank performs an annual review of each borrower’s financial performance to validate the accuracy of the assigned risk grade. Additionally, the loan and lease portfolio is subject to annual independent review by an external firm. The Bank uses a grading system to rank the quality of each loan and lease. The grade is periodically evaluated and adjusted as performance dictates. Loan and lease grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 8 represent classified loans and leases in the Bank’s portfolio. The following guidelines govern the assignment of these risk grades: Exceptional (1 Rated): These loans and leases are of the highest quality, with strong, well-documented sources of repayment. These loans and leases will typically have multiple demonstrated sources of repayment with no significant identifiable risk to collection, exhibit well-qualified management, and have liquid financial statements relative to both direct and indirect obligations. Quality (2 Rated): These loans and leases are of very high credit quality, with strong, well-documented sources of repayment. These loans and leases exhibit very strong, well defined primary and secondary sources of repayment, with no significant identifiable risk of collection and have internally generated cash flow that more than adequately covers current maturities of long-term debt. Satisfactory (3 Rated): These loans and leases exhibit satisfactory credit risk and have excellent sources of repayment, with no significant identifiable risk of collection. These loans and leases have documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. They have adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. Acceptable (4 Rated): These loans and leases show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans and leases may have unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected performance. They may also contain marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor. Special mention (5 Rated): These loans and leases show signs of weaknesses in either adequate sources of repayment or collateral. These loans and leases may contain underwriting guideline tolerances and/or exceptions with no mitigating factors; and/or instances where adverse economic conditions develop subsequent to origination that do not jeopardize liquidation of the debt but substantially increase the level of risk. Substandard (6 Rated): Loans and leases graded Substandard are inadequately protected by current sound net worth, paying capacity of the obligor, or pledged collateral. Loans and leases classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans and leases are consistently not meeting the repayment schedule. Doubtful (7 Rated): Loans and leases graded Doubtful have all the weaknesses inherent in those classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Once the loss position is determined, the amount is charged off. Loss (8 Rated): Loss rated loans and leases are considered uncollectible and of such little value that their continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this credit even though partial recovery may be affected in the future. The following tables present credit quality indicators by portfolio class: Term Loans and Leases Amortized Cost Basis by Origination Year December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Total (1) Small Business Banking Risk Grades 1 - 4 $ 990,349 $ 1,470,824 $ 1,255,664 $ 660,926 $ 363,377 $ 296,132 $ 63,963 $ 11,047 $ 5,112,282 Risk Grade 5 7,744 72,913 60,115 37,390 42,095 50,705 7,174 1,407 279,543 Risk Grades 6 - 8 2,286 31,487 29,636 35,611 18,429 28,700 2,621 — 148,770 Total 1,000,379 1,575,224 1,345,415 733,927 423,901 375,537 73,758 12,454 5,540,595 Specialty Lending Risk Grades 1 - 4 640,596 337,880 226,170 21,286 9,103 112 210,460 58,441 1,504,048 Risk Grade 5 8,858 52,767 35,453 43,080 9,223 — 20,547 5,417 175,345 Risk Grades 6 - 8 — — 12,032 — — — 7,203 4,028 23,263 Total 649,454 390,647 273,655 64,366 18,326 112 238,210 67,886 1,702,656 Energy & Infrastructure Risk Grades 1 - 4 386,421 223,309 120,917 41,919 50,035 23,308 14,818 — 860,727 Risk Grade 5 — — 104,371 13,485 7,827 18,627 — — 144,310 Risk Grades 6 - 8 — 4,024 6,303 3,619 — — — — 13,946 Total 386,421 227,333 231,591 59,023 57,862 41,935 14,818 — 1,018,983 Paycheck Protection Program Risk Grades 1 - 4 — — 2,831 2,764 — — — — 5,595 Total — — 2,831 2,764 — — — — 5,595 Total $ 2,036,254 $ 2,193,204 $ 1,853,492 $ 860,080 $ 500,089 $ 417,584 $ 326,786 $ 80,340 $ 8,267,829 Year-To-Date Small Business Banking $ — $ 5,621 $ 6,435 $ 1,058 $ 1,225 $ 525 $ 1,097 $ — $ 15,961 Specialty Lending — — — — — — 7,966 — 7,966 Total $ — $ 5,621 $ 6,435 $ 1,058 $ 1,225 $ 525 $ 9,063 $ — $ 23,927 Term Loans and Leases Amortized Cost Basis by Origination Year December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Total (1) Small Business Banking Risk Grades 1 - 4 $ 1,499,309 $ 1,490,346 $ 857,380 $ 438,907 $ 224,199 $ 204,933 $ 75,005 $ 1,773 $ 4,791,852 Risk Grade 5 15,942 22,295 45,541 46,655 30,523 27,212 15,549 452 204,169 Risk Grades 6 - 8 1,806 8,777 18,261 29,047 14,260 27,215 2,688 759 102,813 Total 1,517,057 1,521,418 921,182 514,609 268,982 259,360 93,242 2,984 5,098,834 Specialty Lending Risk Grades 1 - 4 562,952 266,165 82,812 13,343 268 788 143,512 31,469 1,101,309 Risk Grade 5 7,341 28,722 6,990 9,258 — — 4,280 — 56,591 Risk Grades 6 - 8 — 6,933 — — — — 293 — 7,226 Total 570,293 301,820 89,802 22,601 268 788 148,085 31,469 1,165,126 Energy & Infrastructure Risk Grades 1 - 4 199,338 176,855 39,600 51,190 23,374 19,694 12,751 351 523,153 Risk Grade 5 4,024 4,409 500 6,976 4,706 5,142 — — 25,757 Risk Grades 6 - 8 — 3,082 16,589 — 8,479 — — — 28,150 Total 203,362 184,346 56,689 58,166 36,559 24,836 12,751 351 577,060 Paycheck Protection Program Risk Grades 1 - 4 — 7,421 5,713 — — — — — 13,134 Total — 7,421 5,713 — — — — — 13,134 Total $ 2,290,712 $ 2,015,005 $ 1,073,386 $ 595,376 $ 305,809 $ 284,984 $ 254,078 $ 34,804 $ 6,854,154 (1) Excludes $388.0 million and $494.5 million of loans accounted for under the fair value option as of December 31, 2023 and December 31, 2022, respectively. The following tables present guaranteed and unguaranteed loan and lease balances by asset quality indicator: December 31, 2023 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance % Guaranteed Risk Grades 1 - 4 $ 7,482,652 $ 2,622,558 $ 4,860,094 35.0 % Risk Grade 5 599,198 234,845 364,353 39.2 Risk Grades 6 - 8 185,979 109,992 75,987 59.1 Total $ 8,267,829 $ 2,967,395 $ 5,300,434 35.9 % December 31, 2022 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance % Guaranteed Risk Grades 1 - 4 $ 6,429,448 $ 2,508,229 $ 3,921,219 39.0 % Risk Grade 5 286,517 115,573 170,944 40.3 Risk Grades 6 - 8 138,189 80,193 57,996 58.0 Total $ 6,854,154 $ 2,703,995 $ 4,150,159 39.5 % (1) Excludes $388.0 million and $494.5 million of loans accounted for under the fair value option as of December 31, 2023 and 2022, respectively. Nonaccrual Loans and Leases As of December 31, 2023 and December 31, 2022 there were no loans greater than 90 days past due and still accruing. There was no interest income recognized on nonaccrual loans and leases during the twelve months ended December 31, 2023 and 2022. Nonaccrual loans and leases are generally included in the held for investment portfolio. Accrued interest receivable on loans totaled $63.5 million and $46.5 million at December 31, 2023 and December 31, 2022, respectively, and is included in other assets Nonaccrual loans and leases as of December 31, 2023 and December 31, 2022 are as follows: December 31, 2023 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 47,558 $ 39,018 $ 8,540 $ 407 Energy & Infrastructure 6,850 2,794 4,056 2,546 Total 54,408 41,812 12,596 2,953 Construction & Development Small Business Banking 1,745 1,309 436 — Total 1,745 1,309 436 — Commercial Real Estate Small Business Banking 57,140 44,426 12,714 8,199 Specialty Lending 12,032 — 12,032 12,032 Energy & Infrastructure 3,072 2,799 273 — Total 72,244 47,225 25,019 20,231 Commercial Land Small Business Banking 6,566 5,332 1,234 194 Total 6,566 5,332 1,234 194 Total $ 134,963 $ 95,678 $ 39,285 $ 23,378 December 31, 2022 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 25,968 $ 19,686 $ 6,282 $ 407 Energy & Infrastructure 3,082 2,794 288 288 Total 29,050 22,480 6,570 695 Commercial Real Estate Small Business Banking 34,520 23,830 10,690 3,611 Energy & Infrastructure 3,072 2,799 273 — Total 37,592 26,629 10,963 3,611 Commercial Land Small Business Banking 6,750 5,499 1,251 196 Total 6,750 5,499 1,251 196 Total $ 73,392 $ 54,608 $ 18,784 $ 4,502 (1) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. When a loan or lease is placed on nonaccrual status, any accrued interest is reversed from loan interest income. The following table summarizes the amount of accrued interest reversed during the periods presented: Twelve Months Ended December 31, 2023 2022 Commercial & Industrial $ 2,212 $ 619 Commercial Real Estate 1,041 833 Commercial Land — 127 Construction & Development 56 — Total $ 3,309 $ 1,579 The following tables present the amortized cost basis of collateral-dependent loans and leases which are individually evaluated to determine expected credit losses, as of December 31, 2023 and 2022: Total Collateral-Dependent Loans Unguaranteed Portion December 31, 2023 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 2,737 $ 2,426 $ — $ 421 $ 547 $ — $ 277 Specialty Lending — 4,711 — — 4,711 — — Energy & Infrastructure — 3,022 — — 227 — — Total 2,737 10,159 — 421 5,485 — 277 Commercial Real Estate Small Business Banking 21,211 — — 6,298 — — — Total 21,211 — — 6,298 — — — Commercial Land Small Business Banking 1,735 — — 200 — — — Total 1,735 — — 200 — — — Total $ 25,683 $ 10,159 $ — $ 6,919 $ 5,485 $ — $ 277 Total Collateral-Dependent Loans Unguaranteed Portion December 31, 2022 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 2,730 $ 371 $ — $ 414 $ 371 $ — $ 291 Energy & Infrastructure 16,378 — — 13,583 — — — Total 19,108 371 — 13,997 371 — 291 Commercial Real Estate Small Business Banking 15,286 — — 6,440 — — 152 Total 15,286 — — 6,440 — — 152 Commercial Land Small Business Banking 1,743 — — 202 — — — Total 1,743 — — 202 — — — Total $ 36,137 $ 371 $ — $ 20,639 $ 371 $ — $ 443 Allowance for Credit Losses – Loans and Leases The Company maintains the ACL at levels management believes represents the future expected credit losses in the loan and lease portfolios as of the balance sheet date. See Note 1. Organization and Summary of Significant Accounting Policies for a description of the methodologies used to estimate credit losses. The following tables detail activity in the allowance for credit losses for the periods presented: Commercial & Industrial Construction & Development Commercial Real Estate Commercial Land Total December 31, 2023 Beginning Balance $ 64,995 $ 5,101 $ 22,901 $ 3,569 $ 96,566 Adoption of ASU 2022-02 (25) (166) (83) (402) (676) Charge offs (22,510) — (1,417) — (23,927) Recoveries 839 — 1,715 — 2,554 Provision 44,282 (218) 5,748 1,511 51,323 Ending Balance $ 87,581 $ 4,717 $ 28,864 $ 4,678 $ 125,840 December 31, 2022 Beginning Balance $ 37,770 $ 3,435 $ 19,068 $ 3,311 $ 63,584 Charge offs (8,262) — (1,463) (652) (10,377) Recoveries 1,039 3 1,363 11 2,416 Provision 34,448 1,663 3,933 899 40,943 Ending Balance $ 64,995 $ 5,101 $ 22,901 $ 3,569 $ 96,566 December 31, 2021 Beginning Balance $ 26,941 $ 5,663 $ 18,148 $ 1,554 $ 52,306 Charge offs (2,912) (262) (2,731) (12) (5,917) Recoveries 172 — 1,813 — 1,985 Provision 13,569 (1,966) 1,838 1,769 15,210 Ending Balance $ 37,770 $ 3,435 $ 19,068 $ 3,311 $ 63,584 During the year ended December 31, 2023, the ACL increased primarily as a result of loan growth and charge-off related impacts. Additionally, during the first quarter of 2023, certain assumptions were refined, drawing more heavily on internal data, in the calculations of PD, LGD and prepayment rates. Loss rates are adjusted for twelve month forecasted unemployment followed by a twelve-month straight-line reversion period. During the year ended December 31, 2022, the ACL increased primarily as a result of loan growth, charge-off experience impacts and changes in the macroeconomic outlook. Loss rates are adjusted for twelve month forecasted unemployment followed by a twelve-month straight-line reversion period. During the year ended December 31, 2021, increases to the ACL were primarily related to loan growth which has outpaced the improvement in forecasted unemployment rates and other conditions related to the COVID-19 pandemic. Unemployment rates were forecasted for twelve months followed by a twelve-month straight-line reversion period. Additionally, the provision expense was impacted by net charge-offs during the period . Loan Modifications for Borrowers Experiencing Financial Difficulty The Company may agree to modify the contractual terms of a loan to a borrower experiencing financial difficulty as a part of ongoing loss mitigation strategies. These modifications may result in an interest rate reduction, term extension, an other-than-insignificant payment delay, or a combination thereof. The Company typically does not offer principal forgiveness. The following tables summarize the amortized cost basis of loans that were modified during the periods presented. Twelve Months Ended December 31, 2023 Other-Than-Insignificant Term Extension Interest Rate Reduction Combination - Term Extension & Payment Delay % of Total Class of Small Business Banking $ 10,090 $ 5,127 $ 3,330 $ 361 0.3 % Specialty Lending — 708 — 4,133 0.3 Energy & Infrastructure — 13,485 — — 1.4 Total $ 10,090 $ 19,320 $ 3,330 $ 4,494 2.0 % As of December 31, 2023, the Company had commitments to lend additional funds to these borrowers totaling $1.2 million. The following table presents an aging analysis of loans that were modified on or after January 1, 2023, the date the Company adopted ASU 2022-02, through December 31, 2023. Current 30-89 Days 90 Days or More Past Due Total Past Due Small Business Banking $ 18,908 $ — $ — $ — Specialty Lending 4,841 — — — Energy & Infrastructure 13,485 — — — Total $ 37,234 $ — $ — $ — The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty during the periods presented. Twelve Months Ended December 31, 2023 Weighted Average Weighted Average Small Business Banking 1.41 % 67 Specialty Lending — 67 Energy & Infrastructure — 15 There were no loans that were modified on or after January 1, 2023, the date the Company adopted ASU 2022-02, through December 31, 2023 that subsequently defaulted during the periods presented. The Company’s ACL is estimated using lifetime historical loan performance adjusted to reflect current conditions and reasonable and supportable forecasts. Upon determination that a modified loan, or portion of a modified loan, has subsequently been deemed uncollectible, the uncollectible portion is written off. The amortized cost basis is reduced by the uncollectible amount and the ACL is adjusted by the same amount. As a result, the impact of loss mitigation strategies is captured in the estimates of PD and LGD. Prior to January 1, 2023, a loan or lease was accounted for as a TDR if the Company, for reasons related to the borrower’s financial difficulties, restructured a loan or lease, and granted a concession to the borrower that it would not otherwise grant. A TDR typically involved a more than short-term modification of terms such as a reduction of the interest rate below the current market rate for a loan or lease with similar risk characteristics or the waiving of certain financial covenants without corresponding offsetting compensation or additional support. The following table represents the types of TDRs that were made during the periods presented: Twelve months ended December 31, 2022 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 7 $ 8,795 3 $ 1,442 1 $ 490 11 $ 10,727 Specialty Lending — — 1 4,183 — — — — 1 4,183 Energy & Infrastructure — — — — 1 13,517 1 13,517 Total — — 8 12,978 4 14,959 1 490 13 28,427 Commercial Real Estate Small Business Banking 1 3,677 1 797 1 4,364 — — 3 8,838 Total 1 3,677 1 797 1 4,364 — — 3 8,838 Construction & Development Small Business Banking — — — — — — 2 3,081 2 3,081 Total — — — — — — 2 3,081 2 3,081 Total 1 $ 3,677 9 $ 13,775 5 $ 19,323 3 $ 3,571 18 $ 40,346 (1) Includes one small business banking loan with extend amortization and a rate concession ($490 thousand) and two small business banking loans with extended amortization and interest only ($3.1 million). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. Twelve months ended December 31, 2021 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 3 $ 6,097 1 $ 496 — $ — 4 $ 6,593 Total — — 3 6,097 1 496 — — 4 6,593 Commercial Real Estate Small Business Banking — — 5 6,613 — — 1 3,124 6 9,737 Total — — 5 6,613 — — 1 3,124 6 9,737 Total — $ — 8 $ 12,710 1 $ 496 1 $ 3,124 10 $ 16,330 (1) Includes one small business banking loan with extended amortization and a rate concession TDR ($3.1 million). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. Restructurings made to improve a loan’s performance have varying degrees of success. The following tables present TDRs that were modified within the twelve months ended December 31, 2022 that subsequently defaulted during the period: Twelve months ended December 31, 2022 Interest Only Payment Deferral Extend Amortization Other Total TDRs (1) Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 2 $ 940 2 $ 318 — $ — 4 $ 1,258 Total — $ — 2 $ 940 2 $ 318 — $ — 4 $ 1,258 (1) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Lessor Equipment Leasing The Company may purchase new equipment for the purpose of leasing such equipment to customers within its verticals. Equipment purchased to fulfill commitments to commercial renewable energy projects is rented out under operating leases while leases of equipment outside of the renewable energy vertical are generally direct financing leases. Accordingly, leased assets under operating leases are included in premises and equipment while leased assets under direct financing leases are included in loans and leases held for investment. Direct Financing Leases The gross lease payments receivable and the net investment included in loans and leases held for investment are as follows: As of December 31, 2023 2022 Gross direct finance lease payments receivable $ 2,335 $ 4,284 Less - unearned interest (218) (479) Net investment in direct financing leases $ 2,117 $ 3,805 Future minimum lease payments receivable under direct finance leases are as follows: As of December 31, 2023 Amount 2024 $ 1,250 2025 968 2026 117 Total $ 2,335 Interest income of $253 thousand, $393 thousand and $669 thousand was recognized in the twelve months ended December 31, 2023 , 2022 and 2021 , respectively. Operating Leases As of December 31, 2023 and 2022 , the Company had a net investment of $104.0 million and $114.2 million, respectively, in assets included in premises and equipment, net in the consolidated balance sheets that are subject to operating leases. Of the net investment, the gross balance of the assets was $162.3 million and $163.4 million as of December 31, 2023 and 2022, respectively, and accumulated depreciation was $58.3 million and $49.2 million as of December 31, 2023 and 2022 , respectively. Depreciation expense recognized on these assets for the twelve months ended December 31, 2023 , 2022 and 2021 was $9.6 million, $9.7 million and $9.7 million, respectively. Lease income $9.5 million was recognized in the twelve months ended December 31, 2023, 2022 and 2021. A maturity analysis of future minimum lease payments receivable under non-cancelable operating leases is as follows: As of December 31, 2023 Amount 2024 $ 9,055 2025 8,738 2026 8,721 2027 8,483 2028 3,837 Thereafter 9,708 Total $ 48,542 Lessee Lease Arrangements The Company determines if an arrangement is or contains a lease at inception. If it is determined to be or contain a lease, then the lease is classified as an operating or finance lease. Right-of-use assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. When recognizing right-of-use assets and liabilities, the Company accounts for lease and non-lease components separately because such amounts are readily determinable under the lease contracts. Right-of-use assets and liabilities are measured on commencement date based on the present value of the lease payments over the lease term, discounted using the discount rate for the lease at commencement. The discount rate is the rate implicit in the lease, however, if that is not readily determinable, the Company will use its incremental borrowing rate. The right-of-use asset also includes any lease payments made before the commencement date and initial direct costs and excludes any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not apply the recognition and measurement requirements to any short-term leases (terms of twelve months or less). Operating leases are included in other assets and other liabilities in the consolidated balance sheets. Finance leases are included in other assets and borrowings in the consolidated balance sheets. Lease expense for operating leases and finance leases is included in occupancy expense in the consolidated statements of income and interest expense for finance leases is included in borrowings interest expense in the consolidated statements of income. The Company has operating leases for real property and land. These leases have remaining lease terms of less than 1 year to 23 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases. The Company has concluded that it is reasonably certain it will exercise the options to extend for only one lease, which was therefore recognized as part of the right-of-use asset and lease liability. The Company had a finance lease for fitness equipment, which matured during the year ended December 31, 2022. The components of lease expense are as follows: December 31, 2023 December 31, 2022 Operating lease cost $ 820 $ 1,224 Short-term lease cost 123 99 Finance lease cost: Amortization of right-of-use assets — 4 Interest expense on lease liabilities — — Total net lease cost $ 943 $ 1,327 Supplemental disclosure for the consolidated balance sheets related to operating leases is as follows: December 31, 2023 December 31, 2022 Operating lease right-of-use asset $ 2,799 $ 2,118 Operating lease liability 3,180 2,558 The weighted average remaining lease term and weighted average discount rate for leases are as follows: December 31, 2023 December 31, 2022 Weighted average remaining lease term (years) Operating leases 10.58 10.62 Weighted average discount rate Operating leases 3.64 % 3.14 % A maturity analysis of operating lease liabilities is as follows: As of December 31, 2023 Operating Leases 2024 $ 718 2025 571 2026 508 2027 500 2028 333 Thereafter 1,231 Total lease payments 3,861 Less: imputed interest (681) Total lease liabilities $ 3,180 |
Leases | Leases Lessor Equipment Leasing The Company may purchase new equipment for the purpose of leasing such equipment to customers within its verticals. Equipment purchased to fulfill commitments to commercial renewable energy projects is rented out under operating leases while leases of equipment outside of the renewable energy vertical are generally direct financing leases. Accordingly, leased assets under operating leases are included in premises and equipment while leased assets under direct financing leases are included in loans and leases held for investment. Direct Financing Leases The gross lease payments receivable and the net investment included in loans and leases held for investment are as follows: As of December 31, 2023 2022 Gross direct finance lease payments receivable $ 2,335 $ 4,284 Less - unearned interest (218) (479) Net investment in direct financing leases $ 2,117 $ 3,805 Future minimum lease payments receivable under direct finance leases are as follows: As of December 31, 2023 Amount 2024 $ 1,250 2025 968 2026 117 Total $ 2,335 Interest income of $253 thousand, $393 thousand and $669 thousand was recognized in the twelve months ended December 31, 2023 , 2022 and 2021 , respectively. Operating Leases As of December 31, 2023 and 2022 , the Company had a net investment of $104.0 million and $114.2 million, respectively, in assets included in premises and equipment, net in the consolidated balance sheets that are subject to operating leases. Of the net investment, the gross balance of the assets was $162.3 million and $163.4 million as of December 31, 2023 and 2022, respectively, and accumulated depreciation was $58.3 million and $49.2 million as of December 31, 2023 and 2022 , respectively. Depreciation expense recognized on these assets for the twelve months ended December 31, 2023 , 2022 and 2021 was $9.6 million, $9.7 million and $9.7 million, respectively. Lease income $9.5 million was recognized in the twelve months ended December 31, 2023, 2022 and 2021. A maturity analysis of future minimum lease payments receivable under non-cancelable operating leases is as follows: As of December 31, 2023 Amount 2024 $ 9,055 2025 8,738 2026 8,721 2027 8,483 2028 3,837 Thereafter 9,708 Total $ 48,542 Lessee Lease Arrangements The Company determines if an arrangement is or contains a lease at inception. If it is determined to be or contain a lease, then the lease is classified as an operating or finance lease. Right-of-use assets represent the Company's right to use an underlying asset for the lease term. Lease liabilities represent the Company's obligation to make lease payments arising from the lease. When recognizing right-of-use assets and liabilities, the Company accounts for lease and non-lease components separately because such amounts are readily determinable under the lease contracts. Right-of-use assets and liabilities are measured on commencement date based on the present value of the lease payments over the lease term, discounted using the discount rate for the lease at commencement. The discount rate is the rate implicit in the lease, however, if that is not readily determinable, the Company will use its incremental borrowing rate. The right-of-use asset also includes any lease payments made before the commencement date and initial direct costs and excludes any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company does not apply the recognition and measurement requirements to any short-term leases (terms of twelve months or less). Operating leases are included in other assets and other liabilities in the consolidated balance sheets. Finance leases are included in other assets and borrowings in the consolidated balance sheets. Lease expense for operating leases and finance leases is included in occupancy expense in the consolidated statements of income and interest expense for finance leases is included in borrowings interest expense in the consolidated statements of income. The Company has operating leases for real property and land. These leases have remaining lease terms of less than 1 year to 23 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases. The Company has concluded that it is reasonably certain it will exercise the options to extend for only one lease, which was therefore recognized as part of the right-of-use asset and lease liability. The Company had a finance lease for fitness equipment, which matured during the year ended December 31, 2022. The components of lease expense are as follows: December 31, 2023 December 31, 2022 Operating lease cost $ 820 $ 1,224 Short-term lease cost 123 99 Finance lease cost: Amortization of right-of-use assets — 4 Interest expense on lease liabilities — — Total net lease cost $ 943 $ 1,327 Supplemental disclosure for the consolidated balance sheets related to operating leases is as follows: December 31, 2023 December 31, 2022 Operating lease right-of-use asset $ 2,799 $ 2,118 Operating lease liability 3,180 2,558 The weighted average remaining lease term and weighted average discount rate for leases are as follows: December 31, 2023 December 31, 2022 Weighted average remaining lease term (years) Operating leases 10.58 10.62 Weighted average discount rate Operating leases 3.64 % 3.14 % A maturity analysis of operating lease liabilities is as follows: As of December 31, 2023 Operating Leases 2024 $ 718 2025 571 2026 508 2027 500 2028 333 Thereafter 1,231 Total lease payments 3,861 Less: imputed interest (681) Total lease liabilities $ 3,180 |
Servicing Assets
Servicing Assets | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Servicing Assets | Servicing Assets Loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balances of loans serviced for others requiring recognition of a servicing asset were $3.09 billion, $2.67 billion and $2.29 billion at December 31, 2023, 2022 and 2021 , respectively. The unpaid principal balance for all loans serviced for others was $4.24 billion, $3.48 billion and $3.30 billion at December 31, 2023, 2022 and 2021 , respectively. The following summarizes the activity pertaining to servicing rights measured at fair value: 2023 2022 Balance at beginning of period $ 26,323 $ 33,574 Additions, net 16,977 9,326 Fair value changes: Due to changes in valuation inputs or assumptions (1) 14,297 (5,934) Decay due to increases in principal paydowns or runoff (9,411) (10,643) Balance at end of period $ 48,186 $ 26,323 (1) The twelve month period ended December 31, 2023, includes a $13.7 million increase related to change in estimate implemented on July 1, 2023. See Note 10. Fair Value of Financial Instruments for further details about servicing assets measured at fair value. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Components of Premises and Equipment Components of premises and equipment and total accumulated depreciation at December 31, 2023 and 2022 are as follows: 2023 2022 Buildings $ 54,746 $ 54,746 Land improvements 5,213 5,180 Furniture and equipment 19,537 19,117 Hardware and software 16,698 10,264 Leasehold improvements 7,678 7,705 Land 17,998 15,982 Transportation 22,279 49,766 Solar panels 162,348 163,391 Deposits on fixed assets 48,518 33,966 Premises and equipment, total 355,015 360,117 Less accumulated depreciation (97,134) (96,827) Premises and equipment, net of depreciation $ 257,881 $ 263,290 Deposits on fixed assets at December 31, 2023 consist primarily of construction costs related to the Company’s planned fourth building, software development costs, plane deposits and campus improvement costs. Depreciation expense for the years ended December 31, 2023, 2022 and 2021 amounted to $21.1 million, $20.6 million and $21.2 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
Deposits | Deposits The types of deposits at December 31, 2023 and 2022 are: 2023 2022 Noninterest-bearing deposits $ 259,270 $ 194,100 Interest-bearing deposits: Interest-bearing checking 301,006 — Money market 135,551 128,443 Savings 4,497,376 4,096,576 Time deposits 5,081,816 4,465,809 Total 10,015,749 8,690,828 Total deposits $ 10,275,019 $ 8,884,928 The aggregate amount of time deposits in denominations of $250 thousand or more at December 31, 2023 and 2022 was approximately $695.6 million and $629.1 million, respectively. At December 31, 2023 the scheduled maturities of total time deposits are as follows: Year Amount 2024 $ 3,452,692 2025 556,766 2026 370,858 2027 258,963 2028 156,472 Thereafter 286,065 Total $ 5,081,816 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Total outstanding borrowings consisted of the following: December 31, December 31, Borrowings In March 2021, the Company entered into a 60-month term loan agreement of $50.0 million with a third party correspondent bank. The loan accrues interest at a fixed rate of 2.95% with a monthly payment sufficient to fully amortize the loan, with all remaining unpaid principal and interest due at maturity on March 30, 2026. The Company paid the Lender a non-refundable $325 thousand loan origination fee upon signing of the Note that is presented as a direct deduction from the carrying amount of the loan and will be amortized into interest expense over the life of the loan. $ 23,354 $ 33,203 On December 30, 2022, the Company made an advance of $50.0 million on an overnight Fed Funds line of credit that is unsecured with an interest rate of 4.65%. The Company paid down the balance in full on January 3, 2023 and there is $100.0 million of available credit remaining at December 31, 2023. — 50,000 Total borrowings $ 23,354 $ 83,203 As of December 31, 2023 and 2022, the Company’s total unused borrowing capacity was $3.68 billion and $3.55 billion, respectively, based upon securities and loans identified as available for collateral. Unused borrowing capacity consists of access through the Federal Reserve Bank's discount window, available lines of credit with the Federal Home Loan Bank and other correspondent banks, the Federal Reserve Bank’s Bank Term Funding Program, as well as access to a repurchase agreement. If additional collateral is available, the Company’s aggregate approved borrowing capacity with all of the above sources is $6.28 billion and $4.88 billion as of December 31, 2023 and 2022, respectively. The Company may borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by a blanket floating lien on qualifying loans with a balance of $2.74 billion and $2.81 billion as of December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the Company had approximately $2.21 billion and $2.35 billion, respectively, in borrowing capacity available under these arrangements with no outstanding balance as of December 31, 2023 or 2022. On June 18, 2018, the Company entered into a borrowing agreement with the Federal Home Loan Bank of Atlanta. These borrowings must be secured with eligible collateral approved by the Federal Home Loan Bank of Atlanta. As of December 31, 2023 and 2022, there was $2.72 billion and $2.31 billion, respectively, of stated potential borrowing capacity available under this agreement, of which approximately $111.7 million and $983.8 million of securities are available for collateral, respectively. There is no collateral pledged and no advances outstanding as of December 31, 2023 or 2022. The Company may purchase federal funds through unsecured federal funds lines of credit with various correspondent banks, which totaled $130.0 million and $164.5 million as of December 31, 2023 and 2022, respectively. These lines are intended for short-term borrowings and are subject to restrictions limiting the frequency and terms of advances. These lines of credit are payable on demand and bear interest based upon the daily federal funds rate. The Company had no outstanding balance on the lines of credit as of December 31, 2023, and $50.0 million in outstanding balances on the lines of credit as of December 31, 2022. In September 2023, the Company modified a $100.0 million revolving line of credit with a third party correspondent bank. The line of credit is unsecured and accrues interest at 30-day SOFR plus 1.25% with an interest rate floor of 2.75%. The line of credit was extended 12 months to a maturity date of October 10, 2026 and the interest rate cap was increased from 4.25% to 6.75%. Payments are interest only with all principal and accrued interest due at maturity. The terms of this loan require the Company to maintain minimum capital and debt service coverage ratios. The Company paid the Lender a non-refundable $250 thousand renewal fee upon modifying the Note that will be amortized into interest expense over the life of the loan. As of December 31, 2023 and 2022, there was $100.0 million of available credit. The Company may borrow funds from the Bank Term Funding Program (“BTFP”). Under the BTFP, advances must be secured by pledging eligible securities owned by the Company on March 12, 2023. BTFP advances can be requested for a term of up to one year at a fixed market rate until the program ends March 11, 2024. As of December 31, 2023, there was $1.12 billion of potential borrowing capacity available and no outstanding balance. The Company has entered into a repurchase agreement with a third party for up to $5.0 million as of December 31, 2023 and 2022. At the time the Company enters into a transaction with the third party, the Company must transfer securities or other assets against the funds received. The terms of the agreement are set at market conditions at the time the Company enters into such transaction. The Company had no outstanding balance on the repurchase agreement as of December 31, 2023 and 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31 are as follows: 2023 2022 2021 Current income tax expense: Federal $ 24,051 $ 3,686 $ 12,774 State 7,042 3,301 6,211 Total current tax expense 31,093 6,987 18,985 Deferred income tax (benefit) expense: Federal (20,914) 23,838 22,886 State (1,247) 3,291 1,922 Total deferred tax (benefit) expense (22,161) 27,129 24,808 Income tax expense, as reported $ 8,932 $ 34,116 $ 43,793 Reported income tax expense differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% in 2023, 2022 and 2021 to income before income taxes as follows: 2023 2022 2021 Income tax expense computed at the statutory rate $ 17,394 $ 44,168 $ 44,266 State income tax expense, net of federal 4,316 5,899 6,426 Stock-based compensation expense 2,084 73 (4,689) Decrease in taxes due to investment tax credit (16,390) (16,361) (3,392) Amended return net benefits — (3,261) — Other 1,528 3,598 1,182 Total income tax expense $ 8,932 $ 34,116 $ 43,793 Components of deferred tax assets and liabilities are as follows: 2023 2022 Deferred tax assets: Net unrealized losses on securities available for sale $ 26,753 $ 29,153 Allowance for loan and lease losses 30,576 27,159 Stock-based compensation expense 2,599 5,248 Capitalized research and experimentation costs 4,726 3,780 Accrued expenses 1,283 1,070 Operating lease liabilities 773 618 Goodwill and intangibles — 14 Unguaranteed loan discount 319 — Deferred loan fees and costs, net 101 — Other 1,806 1,147 Total deferred tax assets 68,936 68,189 Deferred tax liabilities: Premises and equipment 37,381 39,054 Net unrealized gains on non-marketable and other equity securities 18,165 22,309 Mark to market on loans held for sale 6,294 14,036 Unguaranteed loan discount — 4,309 Deferred loan fees and costs, net — 1,332 Operating lease right-of-use assets 680 511 Goodwill and intangibles 19 — Other 11 13 Total deferred tax liabilities 62,550 81,564 Net deferred tax asset (liability) $ 6,386 $ (13,375) The Company assesses the realizability of deferred tax assets at each reporting period and considers whether it is more likely than not that a deferred tax asset will not be realized. The realization of a deferred tax asset is dependent upon the generation of future taxable income during periods in which the related temporary difference becomes deductible or realizable prior to its expiration. The Company considers projected future taxable income, scheduled reversal of deferred tax liabilities, cessation of investing in renewable energy assets that generate investment tax credits and tax planning strategies in making this assessment. Based on these considerations, management believes it is more likely than not that the deferred tax assets will be realized. ASC 740, Income Taxes, defines the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority. The Company does not have material uncertain tax positions, interest or penalties recorded in the consolidated balance sheets or statements of income as of or for the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, the Company was under audit by the Internal Revenue Service principally as it relates to prior energy credits. Due to the complexities of uncertainties, the ultimate resolution may result in a liability that is materially different from the current estimate. The Company files a consolidated income tax return in the U.S. federal tax jurisdiction. Generally, the Company’s federal and state tax returns are no longer subject to examination by the taxing authorities for years prior to 2015. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value Hierarchy There are three levels of inputs in the fair value hierarchy that may be used to measure fair value. Financial instruments are considered Level 1 when valuation can be based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation. Recurring Fair Value The following sections provide a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the fair value hierarchy: Investment securities available-for-sale : Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, discounted cash flow or at net asset value per share. Level 2 securities would include U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Loans held for investment: The fair values of loans accounted for under the fair value option are determined using a DCF methodology. The estimate incorporates assumptions that market participants would use to estimate fair value of similar assets such as prepayment speeds, default and severity rates, and a discount rate. Due to the nature of the valuation inputs, loans held for investment are classified within Level 3 of the valuation hierarchy. Servicing assets: Servicing rights do not trade in an active, open market with readily observable prices. While sales of servicing rights do occur, the precise terms and conditions typically are not readily available. Accordingly, the Company estimates the fair value of servicing rights using discounted cash flow models incorporating numerous assumptions from the perspective of a market participant including servicing income, ancillary income, servicing costs, discount rates and prepayment speeds. Due to the nature of the valuation inputs, servicing rights are classified within Level 3 of the valuation hierarchy. Mutual fund: The mutual fund is registered with the Securities and Exchange Commission as a closed-end, non-diversified management investment company and operates as an interval fund. The fund primarily invests in the unguaranteed portion of SBA504 first lien loans secured by owner-occupied commercial real estate. This investment is valued using quoted prices in markets that are not active and is classified as Level 2 within the valuation hierarchy. Equity warrant assets: Fair value measurements of equity warrant assets of private companies are priced based on a Black-Scholes option pricing model to estimate the asset value by using stated strike prices, option expiration dates, risk-free interest rates and option volatility assumptions. Option volatility assumptions used in the Black-Scholes model are based on public companies that operate in similar industries as the companies in the Company’s private company portfolio. Values are further adjusted for a general lack of liquidity due to the private nature of the associated underlying company. The Company classifies equity warrant assets within Level 3 of the valuation hierarchy. The table below provides a rollforward of the Level 3 equity warrant asset fair values. Twelve months ended December 31, Equity Warrant Assets 2023 2022 Balance at beginning of period $ 2,210 $ 1,672 Issuances 1,005 833 Net gains on derivative instruments 19 671 Settlements (360) (966) Balance at end of period $ 2,874 $ 2,210 The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. December 31, 2023 Total Level 1 Level 2 Level 3 Investment securities available-for-sale U.S. government agencies $ 17,529 $ — $ 17,529 $ — Mortgage-backed securities 1,105,592 — 1,105,592 — Municipal bonds (1) 3,039 — 2,954 85 Loans held for investment 388,036 — — 388,036 Servicing assets (2) 48,186 — — 48,186 Mutual fund 1,645 — 1,645 — Equity warrant assets 2,874 — — 2,874 Total assets at fair value $ 1,566,901 $ — $ 1,127,720 $ 439,181 December 31, 2022 Total Level 1 Level 2 Level 3 Investment securities available-for-sale U.S. government agencies $ 15,668 $ — $ 15,668 $ — Mortgage-backed securities 995,574 — 995,574 — Municipal bonds (1) 2,977 — 2,884 93 Other debt securities 500 — 500 — Loans held for investment 494,458 — — 494,458 Servicing assets (2) 26,323 — — 26,323 Mutual fund 1,656 — 1,656 — Equity warrant assets 2,210 — — 2,210 Total assets at fair value $ 1,539,366 $ — $ 1,016,282 $ 523,084 (1) During the year ended December 31, 2023, the Company recorded a principal paydown of $1 thousand and a fair value adjustment loss of $7 thousand. During the year ended December 31, 2022, the Company recorded a principal paydown of $1 thousand and a fair value adjustment loss of $2 thousand. (2) See Note 5 for a rollforward of recurring Level 3 fair values for servicing assets. Fair Value Option Until the first quarter of 2021, the Company had historically elected to account for retained participating interests of all government guaranteed loans under the fair value option in order to align the accounting presentation with the Company’s viewpoint of the economics of the loans. Interest income is recognized in the same manner on loans reported at fair value as on non-fair value loans, except in regard to origination fees and costs which are recognized immediately upon fair value election. Not electing fair value generally results in a larger discount being recorded on the date of the sale. This discount is subsequently accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this change of election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. In accordance with GAAP, any loans for which fair value was previously elected continue to be measured as such. There were no loans accounted for under the fair value option that were 90 days or more past due and still accruing interest at December 31, 2023 or 2022. The unpaid principal balance of unguaranteed exposure for nonaccruals was $9.1 million and $7.2 million at December 31, 2023 and 2022, respectively. The following tables provide more information about the fair value carrying amount and the unpaid principal outstanding of loans accounted for under the fair value option at December 31, 2023 and December 31, 2022. December 31, 2023 Total Loans Nonaccruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Option Elections Loans held for investment $ 388,036 $ 407,544 $ (19,508) $ 48,474 $ 50,749 $ (2,275) $ 36,490 $ 37,939 $ (1,449) $ 388,036 $ 407,544 $ (19,508) $ 48,474 $ 50,749 $ (2,275) $ 36,490 $ 37,939 $ (1,449) December 31, 2022 Total Loans Nonaccruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Option Elections Loans held for investment $ 494,458 $ 513,219 $ (18,761) $ 44,890 $ 46,993 $ (2,103) $ 24,663 $ 26,321 $ (1,658) $ 494,458 $ 513,219 $ (18,761) $ 44,890 $ 46,993 $ (2,103) $ 24,663 $ 26,321 $ (1,658) The following table presents the net (losses) gains from changes in fair value. Twelve Months Ended (Losses) Gains on Loans Accounted for under the Fair Value Option 2023 2022 Loans held for sale $ — $ 1,521 Loans held for investment (3,539) (475) $ (3,539) $ 1,046 Losses related to borrower-specific credit risk were $3.5 million and $1.9 million for the twelve months ended December 31, 2023 and 2022, respectively. The following tables summarize the activity pertaining to loans accounted for under the fair value option. Twelve Months Ended December 31, Loans held for sale 2023 2022 Balance at beginning of period $ — $ 25,310 Repurchases and issuances — 65 Fair value changes — 1,521 Transfers — (26,219) Settlements — (677) Balance at end of period $ — $ — Twelve Months Ended December 31, Loans held for investment 2023 2022 Balance at beginning of period $ 494,458 $ 645,201 Repurchases and issuances 22,955 18,629 Fair value changes (3,539) (475) Transfers — 26,219 Settlements (125,838) (195,116) Balance at end of period $ 388,036 $ 494,458 Non-recurring Fair Value The following sections provide a description of the valuation methodologies used for instruments measured at fair value on a non-recurring basis, as well as the general classification of such instruments pursuant to the fair value hierarchy: Collateral-dependent loans : Loans are considered collateral-dependent when the Company has determined that foreclosure of the collateral is probable or when a borrower is experiencing financial difficulty and the loan is expected to be repaid substantially through the operation or sale of collateral. A collateral-dependent loan’s ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan’s collateral is determined by appraisals, independent valuation, or management’s estimation of fair value which is then adjusted for the cost related to liquidation of the collateral. Collateral-dependent loans are generally classified as Level 3 based on management’s judgment and estimation. Loans with agreed upon sales prices are classified as Level 1. Foreclosed assets: Foreclosed real estate is adjusted to fair value less selling costs upon transfer of the loans to foreclosed real estate. Subsequently, foreclosed real estate is carried at the lower of carrying value or fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Given the lack of observable market prices for identical properties and market discounts applied to appraised values, the Company generally classifies foreclosed assets as non-recurring Level 3. The tables below present the recorded amount of assets measured at fair value on a non-recurring basis. The Company has no liabilities recorded at fair value on a non-recurring basis. December 31, 2023 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 4,503 $ — $ — $ 4,503 Foreclosed assets 6,481 — — 6,481 Total assets at fair value $ 10,984 $ — $ — $ 10,984 December 31, 2022 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 4,840 $ — $ — $ 4,840 Total assets at fair value $ 4,840 $ — $ — $ 4,840 Level 3 Analysis For Level 3 assets measured at fair value on a recurring or non-recurring basis as of December 31, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2023 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Weighted Average (1) Recurring fair value Municipal bond $ 85 Discounted expected cash flows Discount rate 7.0% N/A Prepayment speed 5.0% N/A Loans held for investment $ 388,036 Discounted expected cash flows Loss rate 0.0% - 7.4% 1.2 % Discount rate 6.7% - 18.0% 9.6 % Prepayment speed 14.0% - 30.3% 16.0 % Servicing assets $ 48,186 Discounted expected cash flows Discount rate 14.5% 14.5 % Prepayment speed 11.8% - 17.8% 15.3 % Equity warrant assets $ 2,874 Black-Scholes option pricing model Volatility 26.9% - 90.0% 35.8 % Risk-free interest rate 3.8% - 3.9% 3.9 % Marketability discount 20.0% - 25.0% 22.7 % Remaining life 3.9 - 10 years 7.6 years Non-recurring fair value Collateral-dependent loans $ 4,503 Discounted appraisals Appraisal adjustments (2) 10.0% - 70.0% 38.7 % Foreclosed assets $ 6,481 Discounted appraisals Appraisal adjustments (2) 10.0% - 17.4% 10.4 % December 31, 2022 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Weighted Average (1) Recurring fair value Municipal bond $ 93 Discounted expected cash flows Discount rate 6.0% N/A Prepayment speed 5.0% N/A Loans held for investment $ 494,458 Discounted expected cash flows Loss rate 0.0 % - 79.3 % 1.9 % Discount rate 7.5 % - 11.2 % 10.0 % Prepayment speed 16.5% 16.5 % Discounted appraisals Appraisal adjustments 0.0 % - 77.3 % 28.6 % Servicing assets $ 26,323 Discounted expected cash flows Discount rate 0.0 % - 32.0% 20.8 % Prepayment speed 0.0 % - 37.4 % 15.7 % Equity warrant assets $ 2,210 Black-Scholes option pricing model Volatility 26.5 % - 90.0 % 34.2 % Risk-free interest rate 3.9 % - 4.0 % 3.9 % Marketability discount 20.0 % 20.0 % Remaining life 3 - 10 years 7.7 years Non-recurring fair value Collateral-dependent loans $ 4,840 Discounted appraisals Appraisal adjustments (2) 10.0 % - 66.5 % 34.2 % (1) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to the instruments fair value. (2) Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and other qualitative adjustments. Estimated Fair Value of Other Financial Instruments GAAP also requires disclosure of fair value information about financial instruments carried at book value on the consolidated balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value to the Company. The carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis are as follows: December 31, 2023 Carrying Amount Quoted Price In Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 582,540 $ 582,540 $ — $ — $ 582,540 Certificates of deposit with other banks 250 250 — — 250 Loans held for sale 387,037 — — 402,096 402,096 Loans and leases held for investment, net of allowance for credit losses on loans and leases 8,119,971 — — 8,600,046 8,600,046 Financial liabilities Deposits 10,275,019 — 10,080,182 — 10,080,182 Borrowings 23,354 — — 22,844 22,844 December 31, 2022 Carrying Amount Quoted Price In Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 280,239 $ 280,239 $ — $ — $ 280,239 Federal funds sold 136,397 136,397 — — 136,397 Certificates of deposit with other banks 4,000 4,000 — — 4,000 Loans held for sale 554,610 — — 577,254 577,254 Loans and leases held for investment, net of allowance for credit losses on loans and leases 6,753,154 — — 6,652,936 6,652,936 Financial liabilities Deposits 8,884,928 — 8,532,615 — 8,532,615 Borrowings 83,203 — — 82,258 82,258 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the ordinary course of operations, the Company is at times involved in legal proceedings. In the opinion of management, as of December 31, 2023, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party or of which any of their property is the subject. Financial Instruments with Off-balance-sheet Risk The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, credit risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as for on-balance-sheet instruments. A summary of the Company’s commitments is as follows: December 31, 2023 December 31, 2022 Commitments to extend credit (1) $ 2,921,978 $ 2,731,866 Standby letters of credit 20,487 26,454 Airplane purchase agreement commitments 9,000 24,000 Total unfunded off-balance sheet credit risk $ 2,951,465 $ 2,782,320 (1) Includes unfunded overdraft protection. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. Commitment letters are issued after approval of the loan by the Credit Department and generally expire ninety days after issuance. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies as specified above and is required in instances which the Company deems necessary. Other Commitments The Company is in the final phase of constructing a new facility to accommodate expansion of its main campus. The total estimated cost to complete the construction program is approximately $37.0 million. At December 31, 2023 , the Company has paid and was committed to approximately $21.5 million of the total estimated amount. As of December 31, 2023 and December 31, 2022, the Company recorded unfunded commitments to provide capital contributions for on-balance-sheet investments in the amount of $29.0 million and $26.1 million, respectively. Concentrations of Credit Risk The distribution of commitments to extend credit approximates the distribution of loans outstanding. The Company does not have a significant number of credits to any single borrower or group of related borrowers whereby their retained exposure exceeds $20.0 million, except for twenty-seven relationships that have a retained unguaranteed exposure of $1.10 billion of which $684.9 million of the unguaranteed exposure has been disbursed. Additionally, the Company has future minimum lease payments receivable under non-cancelable operating leases totaling $48.5 million, of which no relationships exceed $20.0 million. The Company from time-to-time may have cash and cash equivalents on deposit with financial institutions that exceed federally-insured limits. Geographic Concentration s The following table presents the geographic concentration of the Company’s loan and lease portfolio at December 31, 2023: % of Total Geographic Regions (1) Midwest 12.4 % Northeast 18.7 Southeast 30.8 Southwest 12.2 West 25.9 Total 100.0 % (1) Concentrations are stated as a percentage of total unguaranteed loans held for investment. Midwest consists of ND, SD, NE, KS, MN, IA,WI, MO, IL, IN, MI and OH. Northeast consists of MD, DE, PA, NJ, NY, CT, RI, MA, VT, ME and NH. Southeast consists of AR, LA, MS, TN, AL, GA, FL, SC, KY, NC, VA, WV, DC, PR and VI. Southwest consists of AZ, NM, TX and OK. West consists of WA, OR, CA, NV, ID, MT, WY, CO, UT, AK and HI. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Benefit Plans | Benefit Plans Defined Contribution Plan The Company maintains an employee benefit plan pursuant to Section 401(k) of the Internal Revenue Code. The plan covers substantially all employees. Participants may contribute a percentage of compensation, subject to a maximum allowed under the Code. In addition, the Company makes certain matching contributions and may make additional contributions at the discretion of the board of directors. Company expense relating to the plan for the years ended December 31, 2023, 2022 and 2021 amounted to $6.5 million, $6.3 million and $4.4 million, respectively. Flexible Benefits Plan The Company maintains a Flexible Benefits Plan which covers substantially all employees. Participants may set aside pre-tax dollars to provide for future expenses such as dependent care. Employee Stock Purchase Plan The Company adopted an Employee Stock Purchase Plan on October 8, 2014, which plan was most recently amended and restated as of March 22, 2021 and approved by the Company’s shareholders on May 11, 2021 (“ESPP”), within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended. Under this plan, eligible employees are able to purchase available shares with post-tax dollars as of the grant date. In order for employees to be eligible to participate in this plan they must be employed or on an authorized leave of absence from the Company or any subsidiary immediately prior to the grant date. ESPP stock purchases cannot exceed $25 thousand in fair market value per employee per calendar year. Options to purchase shares under the ESPP are granted at a 15% discount to fair market value. Expense recognized in relation to the ESPP was $246 thousand, $188 thousand and $118 thousand for fiscal years 2023, 2022 and 2021, respectively. Stock Option Plans On March 20, 2015, the Company adopted the 2015 Omnibus Stock Incentive Plan (as amended and currently in effect, the “2015 Omnibus Stock Incentive Plan”) which replaced the previously existing Amended Incentive Stock Option Plan and Nonstatutory Stock Option Plan. Subsequently on May 24, 2016, the 2015 Omnibus Stock Incentive Plan was amended and restated, and on May 15, 2018, the 2015 Omnibus Stock Incentive Plan was amended, to authorize awards covering a maximum of 7,000,000 and 8,750,000 common voting shares, respectively. On May 11, 2021, the Amended and Restated 2015 Omnibus Stock Incentive Plan was amended to authorize awards covering a maximum of 10,750,000 common voting shares. Subsequently on May 16, 2023, 2015 Omnibus Stock Incentive Plan was amended to authorize awards covering a maximum of 13,750,000 common voting shares. Options or restricted shares granted under 2015 Omnibus Stock Incentive Plan expire no more than 10 years from date of grant. Exercise prices under the 2015 Omnibus Stock Incentive Plan are set by the Board of Directors at the date of grant but shall not be less than 100% of fair market value of the related stock at the date of the grant. Forfeitures are recognized as they occur. Compensation cost relating to share-based payment transactions are recognized in the financial statements with measurement based upon the fair value of the equity or liability instruments issued. For the years ended December 31, 2023, 2022 and 2021 the Company recognized $25 thousand, $753 thousand and $1.3 million in compensation expense for stock options, respectively. Stock option activity under the 2015 Omnibus Stock Incentive Plan during the year ended December 31, 2023 is summarized below. Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2022 825,114 $ 12.73 Exercised (148,551) 12.71 Outstanding at December 31, 2023 676,563 $ 12.74 1.31 years $ 22,165,930 Exercisable at December 31, 2023 676,563 $ 12.74 1.31 years $ 22,165,930 The following is a summary of non-vested stock option activity for the Company for the years ended December 31, 2023, 2022 and 2021. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 1,022,636 $ 5.38 Vested (592,693) 4.35 Forfeited (47,093) 7.28 Non-vested at December 31, 2021 382,850 6.75 Vested (336,464) 6.85 Forfeited (8,626) 6.95 Non-vested at December 31, 2022 37,760 6.60 Vested (37,760) 6.60 Non-vested at December 31, 2023 — $ — The total intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021 was $2.8 million, $7.0 million and $46.3 million, respectively. At December 31, 2023, there was no unrecognized compensation costs relating to stock options. There were no options granted in 2023, 2022 or 2021. Restricted Stock Plan In 2010, the Company adopted a Restricted Stock Plan. Under this plan, a total of 1,350,000 shares of Common Stock were available for issuance to eligible employees. Restricted stock grants vested in equal installments ranging from immediate vesting to over a seven year period from the date of the grant. Under the 2015 Omnibus Stock Incentive Plan, which replaced the previously existing Restricted Stock Plan, 1,329,508 restricted stock units were granted during 2021 to eligible employees and outside directors at a weighted average grant date fair value of $58.19. During 2022, 885,939 restricted stock units were granted to eligible employees and outside directors at a weighted average grant date fair value of $37.75. The vesting of these grants was time based and had no market price conditions. During 2023, 927,838 restricted stock units were granted to eligible employees and outside directors at a weighted average grant date fair value of $34.83, of which the vesting of all grants was time based. The fair value of each restricted stock unit is based on the market value of the Company’s stock on the date of the grant. Restricted stock awards are authorized in the form of restricted stock awards or units (“RSUs”) and restricted stock awards or units with a market price condition (“Market RSUs”). RSUs have a restriction based on the passage of time and may also have a restriction based on a non-market-related performance criteria. The fair value of the RSUs is based on the closing price on the date of the grant. Market RSUs may have a restriction based on the passage of time and may have non-market-related performance criteria, but also have a restriction based on market price criteria related to the Company’s share price closing at or above a specified price for at least twenty (20) consecutive trading days at any time prior to the expiration date of the grants. The amount of Market RSUs earned will not exceed 100% of the Market RSUs awarded. The fair value of the Market RSUs and the implied service period is calculated using the Monte Carlo Simulation method. The following is a summary of non-vested RSU stock activity for the Company for the year ended December 31, 2023. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2022 2,409,698 $ 43.63 Granted 927,838 34.83 Vested (565,790) 41.87 Forfeited (543,510) 47.39 Non-vested at December 31, 2023 2,228,236 $ 39.50 During 2022 and 2021, the Company granted 885,939 and 1,329,508 RSUs, respectively. The weighted average grant date fair value for RSUs granted in 2022 and 2021 was $37.75 and $58.19, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company recognized $17.6 million, $19.4 million and $11.4 million in compensation expense for RSUs, respectively. At December 31, 2023, unrecognized compensation costs relating to RSUs amounted to $77.1 million which will be recognized over a weighted average period of 3.83 years. Subsequently in February 2024, the Company granted 457,167 RSUs with a weighted average grant date fair value of $39.40 with unrecognized compensation expense of $18.0 million which will be recognized over a weighted average period of 5.01 years. The compensation expense for Market RSUs is measured based on their grant date fair value as calculated using the Monte Carlo Simulation and is recognized on a straight-line basis over the average vesting period. The Monte Carlo Simulation used 100,000 simulation paths to assess the expected date of achieving the market price criteria. For the year ended December 31, 2021, the Company recognized $4.2 million in compensation expense for Market RSUs. For the year ended December 31, 2021, 575,500 Market RSUs met the performance stock price conditions for the $45.00, $48.00 $50.00 and $55.00 stock price for twenty There were no remaining Market RSUs at year end December 31, 2023 and 2022. Employee Incentive Compensation The Company has an incentive compensation framework whereby full-time employees are eligible to receive an annual cash bonus payment plus the opportunity for an annual long-term incentive (“LTI”) equity grant in the form of RSUs. Both cash bonus and LTI equity grants are based on each individual’s base pay and overall Company performance. LTI grants are generally influenced by each individual’s tiered target as a percent of base pay. Total expenses related to the cash bonus for employees were $1.0 million, $9.4 million and $7.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. In addition, for the years ended December 31, 2023, 2022 and 2021 the Company had discretionary special bonuses of $4.5 million, $10.5 million and $4.0 million, respectively, to most full-time employees. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Dividends The Bank, as a North Carolina banking corporation, may pay dividends to shareholders provided the bank does not make distributions that reduce its capital below its applicable required capital, pursuant to North Carolina General Statutes Section 53C-4-7. However, regulatory authorities may limit payment of dividends by any bank when it is determined that such a limitation is in the public interest and is necessary to ensure financial soundness of the bank. Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, includes quantitative measures designed to ensure capital adequacy. The Basel III Rules require the Company and the Bank to maintain (i) a minimum common equity Tier 1 ratio minimum of 4.50 percent plus a 2.50 percent “capital conservation buffer” (effectively resulting in minimum common equity Tier 1 ratio of 7.00 percent), (ii) Tier 1 risk-based capital minimum of 6.00 percent plus the capital conservation buffer (effectively resulting in a minimum Tier 1 risk-based capital ratio of 8.50 percent), (iii) total risk-based capital ratio minimum of 8.00 percent plus the capital conservation buffer (effectively resulting in a minimum total risk-based capital ratio of 10.5 percent) and (iv) Tier 1 leverage capital ratio minimum of 4.00 percent. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to meet minimum capital requirements may result in certain actions by regulators that could have a direct material effect on the consolidated financial statements. Based on the most recent notification from the Federal Deposit Insurance Corporation, the Bank is well capitalized under the regulatory framework for prompt corrective action. As of December 31, 2023, the Company and the Bank met all capital adequacy requirements to which they are subject and were not aware of any conditions or events that would change each entity’s well capitalized status. Capital amounts and ratios as of December 31, 2023 and 2022, are presented in the following table. Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio Consolidated - December 31, 2023 Common Equity Tier 1 (to Risk-Weighted Assets) $ 960,433 11.73 % $ 368,549 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 1,063,157 12.98 % $ 655,198 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 960,433 11.73 % $ 491,399 6.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 960,433 8.58 % $ 447,561 4.00 % N/A N/A Bank - December 31, 2023 Common Equity Tier 1 (to Risk-Weighted Assets) $ 823,478 10.40 % $ 356,426 4.50 % $ 514,837 6.50 % Total Capital (to Risk-Weighted Assets) $ 922,876 11.65 % $ 633,646 8.00 % $ 792,057 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 823,478 10.40 % $ 475,234 6.00 % $ 633,646 8.00 % Tier 1 Capital (to Average Assets) $ 823,478 7.41 % $ 444,480 4.00 % $ 555,600 5.00 % Consolidated - December 31, 2022 Common Equity Tier 1 (to Risk-Weighted Assets) $ 888,235 12.47 % $ 320,446 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 977,360 13.73 % $ 569,681 8.00% N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 888,235 12.47 % $ 427,261 6.00% N/A N/A Tier 1 Capital (to Average Assets) $ 888,235 9.26 % $ 383,499 4.00% N/A N/A Bank - December 31, 2022 Common Equity Tier 1 (to Risk-Weighted Assets) $ 730,092 10.70 % $ 307,179 4.50 % $ 443,703 6.50 % Total Capital (to Risk-Weighted Assets) $ 815,577 11.95 % $ 546,096 8.00% $ 682,620 10.00% Tier 1 Capital (to Risk-Weighted Assets) $ 730,092 10.70 % $ 409,572 6.00% $ 546,096 8.00% Tier 1 Capital (to Average Assets) $ 730,092 7.70 % $ 379,396 4.00% $ 474,245 5.00% |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties The Company has entered into transactions with its directors, officers, significant shareholders, their affiliates, and equity method investments (“related parties”). The following table provides related party loan activity during 2023: Amount Balance as of December 31, 2022 $ 21,738 Loan originations 3,723 Loan repayments (2,537) Balance as of December 31, 2023 $ 22,924 Deposits from related parties held by the Company as of December 31, 2023 and 2022 amounted to $48.6 million and $63.5 million, respectively. Transactions with related parties include the following equity method investments: Apiture, Inc. (“Apiture”), Canapi Funds, Cape Fear Collective 1 & 2, OTR, Estrella Landing, Green Sun, Sunvest, HEP and Heelstone. Apiture is a digital banking solution for financial institutions. The Canapi Funds are investment funds which focus on providing venture capital to new and emerging financial technology companies. Each of Cape Fear Collective 1 & 2 is a “qualified housing project” within the meaning of 12 CFR 362.3 and serves as a special purpose vehicle to purchase residential homes available for sale in the community. OTR is a Community Development Financial Institution (CDFI) certified by the U.S. Department of the Treasury. CDFIs provide credit and financial services to underserved markets and populations to help low-income and other disadvantaged people join the economic mainstream. Estrella Landing is a LIHTC investment that qualifies as an affordable housing project located in Wilmington, NC. Green Sun, Sunvest, HEP, and Heelstone are solar income tax credit projects. See Note 2. Securities, section captioned “Equity Method Accounting,” for further detail on equity method investments. During the years ended December 31, 2023, 2022 and 2021, the Company paid Apiture $2.5 million, $2.0 million and $1.2 million, respectively, for professional services. During 2023, 2022 and 2021, the Company recognized income from Apiture of $385 thousand, $438 thousand and $601 thousand, respectively, for shared services and rent. During the years ended December 31, 2022 and 2021, the Company made charitable contributions in the amounts of $310 thousand and $352 thousand, respectively, to Collective Impact in New Hanover County, a 501(c)(3) charitable organization (“Collective Impact”). There were no charitable contributions made during the year ended December 31, 2023. Cape Fear Collective Ventures, LLC, a wholly owned subsidiary of Collective Impact, manages each of Cape Fear Collective 1 & 2. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company's management reporting process measures the performance of its operating segments based on internal operating structure, which is subject to change from time to time. Accordingly, the Company operates two reportable segments for management reporting purposes as discussed below: Banking - This segment specializes in providing financing services to small businesses nationwide in targeted industries and deposit-related services to small businesses, consumers and other customers nationwide. The primary source of revenue for this segment is net interest income and secondarily the origination and sale of government guaranteed loans. Fintech - This segment is involved in making strategic investments into emerging financial technology companies. The primary sources of revenue for this segment are principally gains and losses on equity method and equity security investments and management fees. The Fintech segment is comprised of the Company's direct wholly owned subsidiaries Live Oak Ventures and Canapi Advisors, and the investments held by those entities, as well as the Bank's investment in Apiture. The following tables provide financial information for the Company's segments. The information provided under the caption “Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries and elimination adjustments to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Banking Fintech Other Consolidated As of and for the year ended December 31, 2023 Interest income $ 687,655 $ 39 $ 581 $ 688,275 Interest expense 341,789 — 1,181 342,970 Net interest income 345,866 39 (600) 345,305 Provision for loan and lease credit losses 51,323 — — 51,323 Noninterest income 101,054 8,297 2,382 111,733 Noninterest expense 303,695 10,458 8,732 322,885 Income tax (benefit) expense 9,106 1,034 (1,208) 8,932 Net income (loss) $ 82,796 $ (3,156) $ (5,742) $ 73,898 Total assets $ 11,145,385 $ 131,310 $ (5,272) $ 11,271,423 As of and for the year ended December 31, 2022 Interest income $ 444,307 $ 93 $ 73 $ 444,473 Interest expense 115,324 — 1,648 116,972 Net interest income 328,983 93 (1,575) 327,501 Provision for loan and lease credit losses 40,943 — — 40,943 Noninterest income 80,562 155,028 2,402 237,992 Noninterest expense 296,891 9,413 7,922 314,226 Income tax (benefit) expense (226) 36,016 (1,674) 34,116 Net income (loss) $ 71,937 $ 109,692 $ (5,421) $ 176,208 Total assets $ 9,672,458 $ 124,249 $ 58,791 $ 9,855,498 As of and for the year ended December 31, 2021 Interest income $ 360,986 $ 201 $ 26 $ 361,213 Interest expense 63,119 — 1,309 64,428 Net interest income 297,867 201 (1,283) 296,785 Provision for loan and lease credit losses 15,210 — — 15,210 Noninterest income 114,363 43,141 2,696 160,200 Noninterest expense 215,819 5,395 9,773 230,987 Income tax (benefit) expense 35,539 10,280 (2,026) 43,793 Net income (loss) $ 145,662 $ 27,667 $ (6,334) $ 166,995 Total assets $ 8,053,212 $ 121,889 $ 38,292 $ 8,213,393 |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following balance sheets, statements of income and statements of cash flows are for Live Oak Bancshares, Inc. Balance Sheets As of December 31, 2023 2022 Assets Cash and cash equivalents $ 81,897 $ 103,238 Investment in subsidiaries 843,978 704,905 Other assets 14,518 50,801 Total assets $ 940,393 $ 858,944 Liabilities and Shareholders' Equity Borrowings $ 23,354 $ 33,203 Other liabilities 14,373 14,708 Total liabilities 37,727 47,911 Shareholders' equity: Common stock 344,568 330,854 Retained earnings 642,817 572,497 Accumulated other comprehensive loss (84,719) (92,318) Total shareholders' equity 902,666 811,033 Total liabilities and shareholders' equity $ 940,393 $ 858,944 Statements of Income Years ended December 31, 2023 2022 2021 Interest income $ 581 $ 73 $ 25 Interest expense 1,182 1,648 1,309 Net interest loss (601) (1,575) (1,284) Noninterest income: Other noninterest income (290) (107) 716 Total noninterest income (290) (107) 716 Noninterest expense: Salaries and employee benefits 1,549 1,444 5,120 Professional services expense 1,540 1,163 679 Other expense 2,384 1,907 789 Total noninterest expense 5,473 4,514 6,588 Net loss before equity in undistributed income of subsidiaries (6,364) (6,196) (7,156) Income tax benefit (1,010) (1,358) (1,615) Net loss (5,354) (4,838) (5,541) Equity in undistributed income of subsidiaries in excess of dividends from subsidiaries 79,252 181,046 172,536 Net income attributable to Live Oak Bancshares, Inc. $ 73,898 $ 176,208 $ 166,995 Statements of Cash Flows Years ended December 31, 2023 2022 2021 Cash flows from operating activities Net income $ 73,898 $ 176,208 $ 166,995 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed net income of subsidiaries in excess of dividends of subsidiaries (79,252) (181,046) (172,536) Subsidiary vesting of restricted stock and other (10,474) (14,862) 2,679 Deferred tax (benefit) expense (15) 434 30,070 Stock option compensation expense 272 942 1,379 Restricted stock compensation expense 17,603 19,405 15,572 Business combination contingent consideration fair value adjustments 125 (86) 99 Net change in other assets 36,283 (2,846) (22,645) Net change in other liabilities 299 (1,626) (11,243) Net cash provided by (used in) operating activities 38,739 (3,477) 10,370 Cash flows from investing activities Capital (investment in) return on subsidiaries (40,000) 121,750 (26,407) Purchases of equity security investments (132) (182) (84) Purchases of equity method investments (612) (904) (237) Net cash (used in) provided by investing activities (40,744) 120,664 (26,728) Cash flows from financing activities Proceeds from borrowings 71 12,096 57,675 Repayment of borrowings (9,920) (29,627) (21,429) Stock option exercises 1,168 2,118 4,158 Employee stock purchase program 1,396 1,067 670 Withholding cash issued in lieu of restricted stock and other (6,725) (4,972) (19,151) Repurchase and retirement of shares — — (953) Shareholder dividend distributions (5,326) (5,266) (5,186) Net cash (used in) provided by financing activities (19,336) (24,584) 15,784 Net change in cash and cash equivalents (21,341) 92,603 (574) Cash and cash equivalents at beginning of year 103,238 10,635 11,209 Cash and cash equivalents at end of year $ 81,897 $ 103,238 $ 10,635 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Dollar amounts in all tables in the notes to consolidated financial statements have been presented in thousands, except percentage, time period, stock option, share and per share data. The accounting and reporting policies of the Company and the Bank follow United States generally accepted accounting principles (“GAAP”) and general practices within the financial services industry. The following is a description of the significant accounting and reporting policies the Company follows in preparing and presenting its consolidated financial statements. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Consolidation Policy | Consolidation Policy The consolidated financial statements include the financial statements of the Company and its directly and indirectly wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company evaluates its relationships with other entities to identify whether they are a voting interest entity or variable interest entity (“VIE”). Voting interest entities are entities that generally (1) have sufficient equity to finance their activities and (2) provide the equity investors with power to make significant decisions relating to the entity’s operations. A voting interest entity is consolidated if the Company holds majority voting rights. The Company is considered to hold a controlling financial interest in a VIE when it is the primary beneficiary. A primary beneficiary has both (1) the power to direct the activities that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or right to receive benefits of a VIE that could potentially be significant to a VIE. The parties that make investment and investment decisions, or parties that can unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The Company considers all of its economic interests in the VIE when determining whether it has the obligation to absorb losses or the right to receive benefits from the VIE. For details on the Company’s VIE investments refer to Note 2. Securities, “Variable Interest Entities.” |
Business Combinations | Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations. Under the acquisition method, identifiable assets acquired and liabilities assumed, and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date, and are recognized separately from any resulting goodwill. Results of operations of the acquired entities are included in the consolidated statements of income and comprehensive income from the date of acquisition. Any subsequent measurement-period adjustments are recorded within 12 months of the acquisition date. |
Business Segments | Business Segments |
Use of Estimates | Use of Estimates In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect reported amounts of assets and liabilities as of the date of the balance sheet and 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 change in the near term relate to the determination of the allowance for credit losses on loans and leases, valuations of loans at fair value and servicing assets. During the first quarter of 2023, the Company refined its allowance for credit losses (“ACL”) methodology for estimating probability of default (“PD”) and loss given default (“LGD”). Additionally, the Company began using internally calculated prepayment rates based on its historical information. These changes, based on the continued maturity of internal data, resulted in a $1.5 million increase in the ACL in the first quarter of 2023. The Company also refined its methodology for estimating its reserve on unfunded loan commitments by incorporating historical utilization rates on unused lines of credit and updating probability assumptions related to construction loan commitments. These changes resulted in a $2.4 million increase in the reserve on unfunded commitments in the first quarter of 2023. During the third quarter of 2023, the Company changed the valuation techniques used to estimate the fair value of servicing rights and loans measured at fair value as a result of rising interest rates and their impacts on market conditions. The changes include aligning our net servicing income and loan fair value estimates with changes in forward interest rate curves. Loan fair value estimates were also revised to utilize market participant credit loss information. These revisions provide estimates that the Company believes are more representative of fair value while transitioning from unobservable inputs to those that are more observable. These estimate changes were implemented as of July 1, 2023 and resulted in one-time adjustments to increase the estimated value of the servicing asset by $13.7 million and loans measured at fair value by $1.3 million. This adjustment also increased noninterest income by a corresponding $15.0 million. These refinements have been accounted for as changes in accounting estimates under Financial Accounting Standards Board (“FASB”) ASC 250, Accounting Changes and Error Corrections |
Cash and Cash Equivalents And Certificates of Deposit with Other Banks | Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet caption “cash and due from banks” and “federal funds sold.” Cash and cash equivalents have an initial maturity of three months or less. To comply with banking regulations, the Company is required to maintain certain average cash reserve balances. The daily average cash reserve requirement was suspended for the years ended December 31, 2023 and 2022. Certificates of Deposit with other Banks The certificate of deposit with other banks has a maturity of December 2024 and bears interest at a rate of 4.60%. All investments in certificates of deposit are with FDIC insured financial institutions and none exceed the maximum insurable amount of $250 thousand. |
Investments | Investments Debt Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost. Securities that may be sold prior to maturity are classified as available-for-sale and recorded at fair value. Unrealized gains and losses for available-for-sale investment securities, other than certain credit-related impairment losses, are excluded from earnings and reported in other comprehensive income. The Company’s entire portfolio of debt securities is classified as available-for-sale for the periods presented. Purchase premiums and discounts on debt securities are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sales of these securities are recorded on the trade date and are determined using the specific identification method. When debt securities are in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. Debt securities that do not meet the aforementioned criteria are evaluated to determine whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Management has made the accounting policy election to exclude accrued interest receivable on available-for-sale debt securities from the estimate of credit losses. Securities are charged-off against the allowance or, in the absence of any allowance, written down through income when deemed uncollectible by management or when either of the aforementioned criteria regarding intent or requirement to sell is met. Equity Investments Equity investments are generally non-marketable investments and are included in the other assets line in the consolidated balance sheets. The Company generally accounts for equity investments either under the equity method or equity security accounting. Earnings impacts are reflected in the equity method investments (loss) income and equity security investments (losses) gains, net line items on the consolidated statements of income . Investments in in-substance common stock through which there is significant influence but not control over the investee are accounted for under the equity method. The determination of whether the Company has significant influence over an investee requires judgement based on the facts and circumstances of each investment including, share type, level of ownership, power to control and legal structure. Significant influence is generally presumed to exist in privately held companies where the Company owns at least 20% of voting stock, or 5% interest in limited partnerships or limited liability companies. Qualitatively, significant influence can exist through the ability to influence the investee’s operating and financial policies through board involvement or other influence. Under the equity method, the Company recognizes its proportionate share of the results of operations of the investee based on most current information available. In instances where cash distributions vary at different points and/or are not directly linked to the Company’s ownership percentage, the investee’s net income or loss is allocated using the hypothetical liquidation at book value (“HLBV”) method. Investments that do not qualify as in-substance common stock, or through which the Company is not able to exercise significant influence over the investee, are accounted for as equity securities, whereby investments are measured at fair value with changes in fair value recognized in net income, unless those investments have no readily determinable fair value. Investments without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus changes in value resulting from observable price changes arising from orderly transactions . Management considers a range of factors when adjusting the fair value of these investments, including, but not limited to, the term and nature of the investment, market conditions, values for comparable securities, current and projected operating performance, exit strategies, financing transactions subsequent to the acquisition of the investment and a discount for certain investments that have lock-up restrictions or other features that indicate a discount to fair value is warranted. For equity securities not accounted for at fair value, any impairment is recognized with the full charge recorded in earnings. To determine whether an equity security may be impaired, the Company considers various indicators of impairment, including, but not limited to (1) the financial condition and near-term prospects of the issuer, (2) adverse market conditions and (3) bona-fide offers to purchase an equity interest in the investee below the carrying amount. Federal Home Loan Bank Stock |
Loans Held for Sale | Held for Sale Management designates loans as held for sale based on its intent to sell loans, or portions of loans, in established secondary markets or to participant banks and credit unions. Salability requirements of government guaranteed portions include, but are not limited to, full disbursement of the loan commitment amount. Loans held for sale are carried at either fair value, if the fair value option is elected, or the lower of cost or estimated fair value. Net unrealized losses, if any, on loans without a fair value election, are recognized through a valuation allowance and recorded as a charge to noninterest income. The cost basis of loans held for sale includes unamortized loan origination fees and costs. The pro-rata portion, based on the percent of the total loan sold, of the remaining deferred fees and costs are recognized as an adjustment to the gain on sale. |
Transfer of Loans | Transfers of loans, or portions of loans that meet the definition of a participating interest are accounted for as sales on the transaction settlement date when control has been surrendered. Control is deemed surrendered when the loans have been (1) legally isolated from the Company, (2) the transferee obtains the right to pledge or transfer the loans free of conditions that constrain it from using that right, and (3) the Company does not maintain effective control over the loans through a repurchase agreement or other means. If the transfer is accounted for as a sale, the loans are derecognized from the Company’s consolidated balance sheet and a gain or loss is recognized in net gains on sales of loans line item on the consolidated statements of income. The gain on sale recognized in income is the sum of the premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the transferred loans remaining on the Company’s consolidated balance sheet and proceeds recognized as a liability. In accordance with SBA and USDA regulation, the Bank is required to retain 10% and 7.5% of the principal balance of any SBA 7(a) or USDA loan, respectively, comprised of unguaranteed dollars. With written consent from the SBA, the Bank may sell down to a 5% exposure comprised of unguaranteed dollars. The Company occasionally transfers loans between the held for sale and held for investment classifications based on its intent and ability to hold or sell loans. Management’s intent to sell may be impacted by secondary market conditions, loan credit quality, or other factors. |
Held for Investment | Held for Investment Loans and leases receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are classified as held for investment and generally reported at their outstanding principal amount, net of unearned income unless the fair value option has been elected. For such loans not carried at fair value, loan origination fees and direct origination costs are deferred and recognized as an adjustment of the loan yield using the interest method. Discounts and premiums on any purchased loans are amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. Interest income on loans and leases is recognized as earned on a daily accrual basis at the applicable interest rate. Loans and leases designated as held for investment include those identified as more beneficial to hold for the long term as well as the required retention amount defined by the SBA and USDA. Loans and leases held for investment also consist of certain guaranteed and unguaranteed credits including nonaccrual, non-marketable, and risk grade 5 or worse as defined by internal risk rating metrics. Nonaccrual and Past Due Loans Past due status of loans and leases is determined based on contractual terms. Loans and leases are placed in nonaccrual status and the accrual of interest is discontinued if they become 90 days delinquent or there is evidence that the borrower’s ability to make the required payments is not probable. When interest accrual is discontinued, all unpaid accrued interest is reversed against current interest income. Loans and leases, or portions thereof, are charged off when deemed uncollectible. |
Allowance for Credit Losses | Al lowance for Credit Losses The ACL is a valuation account that is deducted from the amortized cost basis of loans and leases to present a net amount expected to be collected. The ACL is not applicable to loans held for sale and loans accounted for under the fair value option. Loans and leases are charged-off against the ACL when management believes the uncollectibility of a loan or lease balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The Company’s ACL on loans and leases is estimated using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. As a result, the impact of loss mitigation strategies, such as loan modifications and restructurings, are captured in the estimates of LGD and PD. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses. The ACL is measured on a pooled basis using a quantitative modeling process when similar risk characteristics are present in the portfolio. The Company has identified pools based on industry, which aggregates into divisions, and whether the receivable is secured by real estate or another form of collateral. Additional information related to the portfolio segments can be found in Note 3. Loans and Leases Held for Investment and Credit Quality. Expected credit losses for pooled loans and leases are estimated using a DCF methodology for each loan which incorporates measurements of PD, LGD, prepayments, the estimated outstanding exposure at default (“EAD”), and the effective interest rate (“EIR”). PD rates are calculated using the number of defaults divided by the number of loans available to default for 1-year observation periods over the lifetime of data available for a certain pool. LGD rates are calculated by dividing the lifetime net charge-offs for each pool by the pool’s average outstanding balance. PD and LGD rates are adjusted for forecasted national unemployment rates during a reasonable and supportable forecast period. Management has determined that four quarters represents a reasonable and supportable forecast period and adjusted loss rates revert back to a historical loss rate over four quarters on a straight-line basis. Expected losses are calculated as the product of PD, LGD, and EAD. Expected losses are discounted using the loan or lease EIR, adjusted for prepayments. Management adjusts historical loss information for differences in current risk characteristics that are not considered within the quantitative modeling processes but are relevant in assessing the expected credit losses within the loan and lease pools. These qualitative factor adjustments generally increase management’s estimate of expected credit losses based upon the estimated level of risk. The various risk factors considered in qualitative adjustments include risk grading, delinquency levels, pool age, portfolio mix and growth rates, and the status of servicing efforts which may be impacted by natural disasters or health pandemics. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Loans or leases that do not share risk characteristics are evaluated on an individual basis and are excluded from the pooled evaluation. This generally occurs when, based on current information and events, it is probable that the Company will be unable to collect all interest and principal payments due according to the originally contracted, or reasonably modified, terms of the loan or lease agreement. The Company has determined that loans and leases meeting the criteria defined below must be reviewed quarterly to determine if they should be evaluated for expected credit losses on an individual basis. • All commercial loans and leases classified substandard or worse. • Any loan or lease that is on nonaccrual, or any loan or lease that is delinquent greater than 90 days past due and still accruing interest. • Prior to January 1, 2023, any loan or lease that was restructured with an interest rate concession and met the definition of a troubled debt restructuring (“TDR”). The Company estimates reserves on individually evaluated loans and leases using a DCF methodology or through the evaluation of collateral values. During the quarter ended September 30, 2021, management updated the Company’s policy for estimating expected credit losses on certain relationships that would otherwise meet the criteria for individual evaluation. Relationships with unguaranteed exposure of less than $250 thousand are now collectively evaluated using an average of loss rates applied to individually evaluated relationships with unguaranteed exposure between $250 thousand and $1.0 million. The impact of this change on the ACL was not considered material. Expected credit losses are estimated over the contractual term of the loan or lease, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless management has a reasonable expectation at the reporting date that a modification will be executed with an individual borrower or the extension or renewal options are included in the contract at the reporting date and are not unconditionally cancellable by the Company. When the ACL, for pooled or individually evaluated loans and leases, is estimated using the DCF method, the EIR used to discount expected cash flows is adjusted for expected prepayments. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Allowance for Off-Balance Sheet Credit Exposures |
Equipment Leasing | Equipment Leasing The Company may purchase new equipment for the purpose of leasing such equipment to customers within its verticals. Equipment purchased to fulfill commitments to commercial renewable energy projects is leased out under operating leases while leases of equipment outside of the renewable energy vertical are generally direct financing leases. Accordingly, leased assets under operating leases are included in premises and equipment while leased assets under direct financing leases are included in loans and leases held for investment in the consolidated balance sheets. Direct Financing Leases Interest income on direct financing leases is recognized when earned. Unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. The term of each lease is generally 3-7 years which is consistent with the useful life of the equipment with no residual value. The Company records expected credit losses on direct finance leases within the ACL. Operating Leases The term of each operating lease is generally 10 to 15 years. The Company retains ownership of the equipment and associated tax benefits such as investment tax credits and accelerated depreciation. At the end of the lease term, the lessee has the option to renew the lease for two additional terms or purchase the equipment at the then-current fair market value. Rental revenue from operating leases is recognized on a straight-line basis over the term of the lease. Rental equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful life. The useful lives generally range from 20 to 25 years and residual values generally range from 20% to 50%, however, they are subject to periodic evaluation. Changes in useful lives or residual values will impact depreciation expense and any gain or loss from the sale of used equipment. The estimated useful lives and residual values of the Company's leasing equipment are based on industry disposal experience and the Company's expectations for future sale prices. If the Company decides to sell or otherwise dispose of rental equipment, it is carried at the lower of cost or fair value less costs to sell or dispose. Repair and maintenance costs that do not extend the lives of the rental equipment are charged to direct operating expenses at the time the costs are incurred. |
Premises and Equipment | Premises and Equipment All premises and equipment, excluding land, are carried at cost, less accumulated depreciation. Land is carried at cost. Additions and major replacements or improvements which extend useful lives of property or equipment are capitalized. Maintenance, repairs, and minor improvements are expensed as incurred. Upon retirement or other disposition of the assets, the cost and related depreciation are derecognized and any resulting gain or loss is reflected in income. Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Depreciation is computed by the straight-line method over the following generally estimated useful lives: Years Buildings 39 Transportation 5-10 Land improvements 10-15 Furniture and equipment 5-10 Hardware and software 3-5 Solar panels 20-25 |
Foreclosed Assets | Foreclosed Assets Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less anticipated cost to sell at the date of foreclosure, establishing a new cost basis. Any write down at the time of transfer to foreclosed assets is charged to the allowance for credit losses on loans and leases. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of the carrying amount or fair value, less cost to sell. Subsequent write downs are charged to other expense. Costs relating to improvement of the property are capitalized while holding costs of the property are charged to other loan origination and maintenance expense in the period incurred. |
Servicing Assets | Servicing Assets All sales of loans are executed on a servicing retained basis. The standard SBA loan sale agreement is structured to provide the Company with a “servicing spread” paid from a portion of the interest cash flow of the loan. SBA regulations require the Bank to retain a portion of the cash flow from the interest payments received for a sold loan. The SBA retention requirement is at least 100 basis points in servicing spread while the Company's standard USDA loan sale agreement specifies a servicing spread of 40 basis points. The portion of the servicing spread that exceeds adequate compensation for the servicing function is recognized as a servicing asset, while any that is less is considered a servicing liability. Industry practice recognizes adequate compensation for servicing SBA and USDA loans as 25 basis points. Servicing assets are recognized as separate assets measured at fair value when a loan is sold. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as adequate compensation for servicing, the discount rate, the custodial earnings rate, ancillary income, prepayment speeds and default rates and losses, with the prepayment speed and discount rate being the most sensitive assumptions. Servicing rights recognized through the sale of government guaranteed loans are carried at fair value as of the reporting date. Changes to fair value are reported in loan servicing asset revaluation in the consolidated statements of income. Servicing rights recognized through the sale of conventional loans are amortized over the period of estimated future net servicing life of the underlying assets and are evaluated quarterly for impairment by comparing the amortized cost to the estimated fair value. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Derivatives Financial Instruments | Derivative Financial Instruments Equity Warrant Assets In connection with negotiated credit facilities and certain other services, the Company may obtain equity warrant assets giving the Company the right to acquire stock in private companies in certain verticals. These assets are held for prospective investment gains and are not used to hedge any economic risks. Further, the Company does not use other derivative instruments to hedge economic risks stemming from equity warrant assets. Equity warrant assets in certain private client companies are recorded as derivatives when they contain net settlement terms and other qualifying criteria. Equity warrant assets entitle the Company to purchase a specific number of shares of stock at a specific price within a specific time period, generally 10 years. Certain equity warrant assets contain contingent provisions, which adjust the underlying number of shares or purchase price upon the occurrence of certain future events to prevent dilution of the Company’s implied ownership represented by the warrants. Certain warrant agreements contain net share settlement provisions, which permit the receipt of, upon exercise, a share count equal to the intrinsic value of the warrant divided by the share price (otherwise known as a “cashless” exercise). These equity warrant assets are recorded at fair value and are classified as derivative assets, a component of other assets, on the consolidated balance sheets at the time they are obtained. The grant date fair values of equity warrant assets classified as derivatives received in connection with the issuance of a credit facility are deemed to be loan fees and recognized as an adjustment of loan yield through loan interest income. Similar to other loan fees, the yield adjustment related to grant date fair value of warrants is recognized over the life of that credit facility. Any changes in fair value from the grant date fair value of equity warrant assets classified as derivatives are recognized as increases or decreases to other assets on the consolidated balance sheets and as net gains or losses on derivative instruments, in other noninterest income, a component of consolidated net income. When a portfolio company is acquired, the Company may exercise these equity warrant assets for shares or cash. The fair value of equity warrant assets classified as derivatives is reviewed and updated quarterly using a Black-Scholes option pricing model. For those equity warrant assets that do not contain net share settlement provisions, the Company considers these to be equity investments without readily determinable market values and records the asset at cost, subject to periodic impairment testing. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the purchase premium after adjusting for the fair value of net assets acquired. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or when events or circumstances indicate a potential impairment, at the related reporting unit level. The goodwill impairment test involves comparing the fair value of the reporting unit with its carrying value, including goodwill. If the fair value of the reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired; however, if the carrying value of the reporting unit exceeds its fair value, an impairment charge must be recorded. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit. An impairment loss establishes a new basis in the goodwill and subsequent reversals of goodwill impairment losses are not permitted under applicable accounting guidance. For intangible assets subject to amortization, the recoverability test is performed when a triggering event occurs and an impairment loss is recognized if the carrying value of the intangible asset is not recoverable and exceeds fair value. The carrying value of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets deemed to have indefinite useful lives are not subject to amortization. An impairment loss is recognized if the carrying value of the intangible asset with an indefinite life exceeds its fair value. |
Long-Lived Assets Impairment Evaluation | Long-Lived Assets Impairment Evaluation |
Common Stock | Common Stock On June 11, 2014, the Company amended its Articles of Incorporation to create two classes of common stock. These two classes are identified as Class A and Class B or Voting Common Stock and Non-Voting Common Stock, respectively, in the accompanying consolidated balance sheets and statements of changes in shareholders’ equity. Voting and Non-Voting Common Stock holders have identical rights and privileges, with the exception that Non-Voting Common shares have no voting power except in limited circumstances. Stock splits or dividends of Voting and Non-Voting Common Shares shall be in like stock (voting for voting and non-voting for non-voting). Any number of Non-Voting Common Stock may be converted to an equal number of Voting Common Stock at the option of the holder; provided that holder is not the initial transferee or an affiliate of initial transferee and other conditions are met. |
Advertising Expense | Advertising Expense Marketing costs are recognized in the month the event or advertisement takes place. These costs are included in advertising and marketing expense as presented in the consolidated statements of income. |
Income Taxes | Income Taxes Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to business combinations or components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. The effect of a change in tax rates on deferred assets and liabilities is recognized in income taxes during the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount more likely than not to be realized. Realization of deferred tax assets is dependent upon the level of historical income, prudent and feasible tax planning strategies, reversals of deferred tax liabilities and estimates of future taxable income. The Company uses the flow-through method of accounting for its solar investment tax credit investments, none of which qualify for proportional amortization. Under the flow-through method, investment tax credits are recognized as a reduction to income tax expense immediately in the period that the credit is generated, to the extent permitted by tax law. In accounting for any temporary difference that arise, the Company has elected the income statement method whereby deferred taxes are adjusted through income tax expense. |
Comprehensive Income | Comprehensive Income Annual comprehensive income reflects the change in the Company’s equity during the year arising from transactions and events other than investment by and distributions to shareholders. The only components of other comprehensive income consist of realized and unrealized gains and losses related to investment securities available-for-sale. |
Stock Compensation Plans | Stock Compensation Plans The Company recognizes compensation cost based on the fair value of the equity instruments issued. The expense measures the cost of employee services received in exchange for stock options and restricted stock based on the grant-date fair value of the award and recognizes the cost over the vesting period for all awards within an individual grant, including ones with graded vesting features. The fair value of restricted stock awards or units with a market price condition and implied service period are calculated using the Monte Carlo Simulation method. The impact of forfeitures on stock-based compensation expense is recognized as forfeitures occur. See Note 12. Benefit Plans for further discussion and detail. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy established per GAAP which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. See Note 10. Fair Value of Financial Instruments for further discussion and detail. |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share are computed based on the weighted average number of shares outstanding during each period. Diluted earnings per share reflects the potential dilution that could occur, upon the exercise of stock options or upon the vesting of restricted stock grants, any of which would result in the issuance of common stock that would then share in the net income of the Company. |
Revenue Recognition | Revenue Recognition The Company offers various services to customers that generate revenue. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. Incremental costs of obtaining a contract are expensed when incurred when the amortization period is one year or less. As of December 31, 2023, 2022 and 2021, remaining performance obligations consisted primarily of service based revenues for contracts with an original expected length of two years or less. Service based revenues are included in other noninterest income in the consolidated statements of income and consist of other recurring revenue streams from services provided by the Bank for advisory and successful transactions, GLS to its clients for settlement, accounting and valuation for government guaranteed loan sales and holdings, fund investment advisory services performed by Canapi Advisors, and investment management and financial planning services provided by Live Oak Private Wealth. Service Based Revenues In addition to lending and related activities, the Bank’s specialized industry teams also provide advisory services to certain Government Contracting clients. Performance obligations are satisfied over the contract period and revenue is recognized monthly. In 2021, the Company stopped offering advisory services to new Government Contracting clients. GLS provides services when requested by clients. Each requested service represents a specific performance obligation with a transaction price outlined by GLS' fee schedule. Revenue is recognized as the requested services are completed and payment is generally received the following month. Canapi Advisors provides investment advisory services to four financial technology venture funds where its performance obligations are satisfied over time. Fund management fees are based upon the contractual terms of the limited partnership agreements and are recognized as earned over the specified contract period, which is generally equal to the life of the individual fund. Fund management fees are calculated as a percentage of committed capital, net of any permitted offsets, and are collected in advance and recognized quarterly. |
Reclassifications | Reclassifications During the third quarter of 2023, management reclassified all Search Fund Lending loans from the Specialty Lending division to the Small Business Banking division to better align with the underlying risk characteristics and management's methods for managing the Sponsor Finance business. This resulted in a reclassification of $297.2 million between loan classes as of December 31, 2022. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following is a summary of recent authoritative pronouncements that could impact the accounting, reporting, and/or disclosure of financial information by the Company. In March 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In December 2022, ASU 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” was issued deferring the sunset date of Topic 848. As subsequently amended, the ASU can be adopted by the Company through December 31, 2024. The Company does not believe these standards will have a material impact on its consolidated financial statements. To address the discontinuance of LIBOR, the Company has stopped originating variable LIBOR-based loans effective December 31, 2021 and has started to negotiate loans using the preferred replacement index, the Secured Overnight Financing Rate (“SOFR”) or a relevant duration U.S. Treasury rate. As of December 31, 2023, the Company has transitioned nearly all its LIBOR-based loan exposure to an alternative index. The remaining LIBOR-based loans will transition to an alternative index at their next repricing date. In March 2022, the FASB issued ASU No. 2022-02 “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for TDRs by creditors in ASC 310-40, Receivables – Troubled Debt Restructurings by Creditors , while enhancing disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. Additionally, for public business entities, ASU 2022-02 requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost . The Company adopted the standard on January 1, 2023 using the modified retrospective method resulting in a net increase to retained earnings of $676 thousand. In June 2022, the FASB issued ASU No. 2022-03 “Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to Contractual Restrictions” (“ASU 2022-03”). ASU 2022-03 indicates a contractual sale restriction on equity securities should not be considered in measuring fair value, however, disclosure should be made about such restrictions. The amendments in this standard will be effective for the Company on January 1, 2024. The Company does not believe this standard will have a material impact on its consolidated financial statements. In March 2023, the FASB issued ASU No. 2023-02 “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). ASU 2023-02 permits companies to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The amendments in this standard will be effective for the Company on January 1, 2024. The Company does not believe this standard will have a material impact on its consolidated financial statements. In October 2023, the FASB issued ASU No. 2023-06 “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company does not believe this standard will have a material impact on its consolidated financial statements. In November 2023, the FASB issued ASU No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2024 and subsequent interim periods. The amendments will be applied retrospectively to all prior periods in the consolidated financial statements. The Company is currently evaluating the impact the amendments will have on the consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires enhanced income tax disclosures primarily related to the rate reconciliation and income taxes paid information to provide more transparency by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation table and (ii) income taxes paid, net of refunds, to be disaggregated by jurisdiction based on an established threshold. The amendments in this standard will be effective for the Company on January 1, 2025. The Company is currently evaluating the impact the amendments will have the consolidated financial statements and related disclosures. |
Variable Interest Entities | Variable Interest Entities Variable interests are defined as contractual ownership or other interests in an entity that change with fluctuations in the fair value of an entity's net asset value. The primary beneficiary consolidates the VIE. The primary beneficiary is defined as the enterprise that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. Solar Renewable Energy Tax Credit Investments The Company has equity interests in several limited liability companies that own and operate solar renewable energy projects which are accounted for as equity method investments. Over the course of the investments, the Company will receive federal and state tax credits, tax-related benefits, and excess cash available for distribution, if any. The Company may be called to sell its interest in the limited partnerships through a call option once all investment tax credits have been recognized. Affordable Housing The Company has an equity investment in a limited liability company LIHTC that qualifies as an affordable housing project, managed by an unrelated general partner. The Company accounts for the investment under the proportional amortization method. Under this method an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance as a component of income tax expense. The Company also has equity interests in two limited liability companies that invest in the acquisition, rehabilitation, or new construction of local qualified housing projects which are accounted for as equity method investments . Canapi Funds The Company’s limited partnership investments in the Canapi Funds focus on providing venture capital to new and emerging financial technology companies. After initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down. Non-marketable and Other Equity Investments The Company also has limited interests in several non-marketable funds, including Small Business Investment Company (“SBIC”) and venture capital funds, which are accounted for as equity security investments. After the initial commitment and over the course of the investment period, the Company will make capital contributions and receive profit and return of capital distributions as a result of fund performance until the funds wind down. While the partnership agreements allow the Company to remove the general partner, this right is not deemed to be substantive as the general partner can only be removed for cause. All investments are generally non-redeemable and distributions are expected to be received through the liquidation of the underlying investments throughout the life of the investment fund. Investments may only be sold or transferred subject to the notice and approval provisions of the underlying investment agreement. The above investments meet the criteria of a VIE, however, the Company is not the primary beneficiary of the entities, as it does not have the power to direct the activities that most significantly impact the economic performance of the entities. The Company’s investment in the unconsolidated VIEs are carried in other assets and the Company’s unfunded capital and other commitments related to the unconsolidated VIEs are carried in other liabilities on the consolidated balance sheets. The Company’s maximum exposure to loss from unconsolidated VIEs includes the investment recorded on the Company’s consolidated balance sheets. For solar tax credit investments, the balance sheet figures are net of any impairment recognized, and includes previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes the potential for loss from these investments is remote, the maximum exposure for solar tax credit investments was determined by assuming a scenario where related tax credits were recaptured. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Loans Receivable Held-for-sale | The following summarizes the activity pertaining to loans held for sale for the years ended December 31, 2023 and 2022: 2023 2022 Balance at beginning of year $ 554,610 $ 1,116,519 Originations 877,083 1,042,061 Proceeds from sale (1,362,803) (1,067,758) Gain on sale of loans 46,545 43,244 Principal collections, net of deferred fees and costs (70,179) (116,886) Non-cash transfers, net 341,781 (462,570) Balance at end of period $ 387,037 $ 554,610 |
Schedule of Property, Plant and Equipment | Depreciation is computed by the straight-line method over the following generally estimated useful lives: Years Buildings 39 Transportation 5-10 Land improvements 10-15 Furniture and equipment 5-10 Hardware and software 3-5 Solar panels 20-25 Components of premises and equipment and total accumulated depreciation at December 31, 2023 and 2022 are as follows: 2023 2022 Buildings $ 54,746 $ 54,746 Land improvements 5,213 5,180 Furniture and equipment 19,537 19,117 Hardware and software 16,698 10,264 Leasehold improvements 7,678 7,705 Land 17,998 15,982 Transportation 22,279 49,766 Solar panels 162,348 163,391 Deposits on fixed assets 48,518 33,966 Premises and equipment, total 355,015 360,117 Less accumulated depreciation (97,134) (96,827) Premises and equipment, net of depreciation $ 257,881 $ 263,290 |
Schedule of Basic and Diluted Earnings Per Share | December 31, 2023 2022 2021 Basic earnings per share: Net income $ 73,898 $ 176,208 $ 166,995 Weighted-average basic shares outstanding 44,353,708 43,862,291 43,169,935 Basic earnings per share $ 1.67 $ 4.02 $ 3.87 Diluted earnings per share: Net income, for diluted earnings per share $ 73,898 $ 176,208 $ 166,995 Total weighted-average basic shares outstanding 44,353,708 43,862,291 43,169,935 Add effect of dilutive stock options and restricted stock grants 741,171 1,044,019 1,901,369 Total weighted-average diluted shares outstanding 45,094,879 44,906,310 45,071,304 Diluted earnings per share $ 1.64 $ 3.92 $ 3.71 Anti-dilutive stock options and restricted shares 1,233,230 1,413,738 37,401 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Carrying Amount and Fair Value of Securities | The carrying amount of securities and their approximate fair values are reflected in the following table: December 31, 2023 Amortized Unrealized Unrealized Fair U.S. government agencies $ 17,809 $ 2 $ 282 $ 17,529 Mortgage-backed securities 1,216,624 466 111,498 1,105,592 Municipal bonds 3,200 — 161 3,039 Total $ 1,237,633 $ 468 $ 111,941 $ 1,126,160 December 31, 2022 U.S. government agencies $ 16,080 $ — $ 412 $ 15,668 Mortgage-backed securities 1,116,387 270 121,083 995,574 Municipal bonds 3,223 — 246 2,977 Other debt securities 500 — — 500 Total $ 1,136,190 $ 270 $ 121,741 $ 1,014,719 |
Debt Securities Available-for-Sale in Unrealized Loss Position | The following tables show debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total December 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized U.S. government agencies $ — $ — $ 15,057 $ 282 $ 15,057 $ 282 Mortgage-backed securities 138,823 3,431 886,699 108,067 1,025,522 111,498 Municipal bonds — — 3,039 161 3,039 161 Total $ 138,823 $ 3,431 $ 904,795 $ 108,510 $ 1,043,618 $ 111,941 Less Than 12 Months 12 Months or More Total December 31, 2022 Fair Unrealized Fair Unrealized Fair Unrealized U.S. government agencies $ 15,668 $ 412 $ — $ — $ 15,668 $ 412 Mortgage-backed securities 513,639 29,060 456,972 92,023 970,611 121,083 Municipal bonds 2,884 241 93 5 2,977 246 Total $ 532,191 $ 29,713 $ 457,065 $ 92,028 $ 989,256 $ 121,741 |
Summary of Investment Securities by Maturity | The following is a summary of investment securities by maturity: December 31, 2023 Available-for-sale Amortized Cost Fair Value U.S. government agencies Within one year $ 3,000 $ 2,976 One to five years 12,430 12,218 Five to ten years 2,379 2,335 Total 17,809 17,529 Mortgage-backed securities Within one year 12,358 12,319 One to five years 179,740 170,908 Five to ten years 240,665 216,013 After 10 years 783,861 706,352 Total 1,216,624 1,105,592 Municipal bonds Five to ten years 3,103 2,954 After 10 years 97 85 Total 3,200 3,039 Total $ 1,237,633 $ 1,126,160 |
Summary of Balance Sheet and Income Statement Information of Combined Equity Method Investments | The carrying amount and ownership percentage of each equity method investment at December 31, 2023 and 2022 is reflected in the following table: 2023 2022 Amount Ownership % Amount Ownership % Apiture, Inc. $ 60,682 40.4 % $ 60,320 40.3 % Canapi Ventures SBIC Fund, LP (1) (5) (8) 18,190 2.9 19,246 2.9 Canapi Ventures Fund, LP (2) (5) (9) 2,267 1.5 2,382 1.5 Canapi Ventures Fund II, LP (3) (5) (9) 7,232 1.6 7,412 1.6 Canapi Ventures SBIC Fund II, LP (4) (5) (8) 7,611 2.9 7,981 3.7 Other investments in fintech private companies (6) — — 241 4.3 Other (7) (8) 22,932 Various 12,476 Various Total $ 118,914 $ 110,058 (1) Includes unfunded commitments of $5.0 million and $5.5 million as of December 31, 2023 and 2022, respectively. (2) Includes unfunded commitments of $559 thousand and $617 thousand as of December 31, 2023 and 2022, respectively. (3) Includes unfunded commitments of $6.3 million and $6.9 million as of December 31, 2023 and 2022, respectively. (4) Includes unfunded commitments of $7.1 million and $7.5 million as of December 31, 2023 and 2022, respectively. (5) Investee is accounted for under equity method due to the Company's participation as an investment advisor. (6) As of December 31, 2022, Other Fintech investments included Kwipped, Inc. As of December 31, 2023, the investment has been moved to equity security as the preferred shares do not qualify as in-substance common stock. (7) As of December 31, 2023, Other investments include low income housing tax credit (“LIHTC”) in Estrella Landing Apartments, LLC (“Estrella Landing”), in which the company holds a 99.9% limited member interest. Also included in Other investments are solar income tax credit investments in Green Sun Tenant, LLC (“Green Sun”), SVA 2021-2 TE Holdco, LLC (“Sun Vest”), EG5 CSP1 Holding, LLC (“HEP”) and HRE MM I, LLC (“Heelstone”), which the Company holds a 99.0% limited member interest in all investments. Also included are Cape Fear Collective Impact Opportunity 1, LLC (“Cape Fear Collective”), Cape Fear Collective Impact Opportunity 2, LLC (“Cape Fear Collective 2”) and OTR Fund I, LLC (“OTR”) which the Company holds 91.0%, 32.3%, and 11.5% of limited member interests, respectively. As of December 31, 2023, there was an unfunded commitment of $7.7 million for Estrella Landing. As of December 31, 2022, Other investments include Green Sun, Sun Vest, and HEP, which the Company holds a 99.0% limited member interest in all investments. Also included within Other investments are Cape Fear Collective and Cape Fear Collective 2, which the Company holds 99.0% and 32.3% of limited member interests, respectively. As of December 31, 2022 an unfunded commitment of $2.6 million was recorded as a liability for HEP, and as of December 31, 2023, this commitment has been funded. Managing control of the above investments resides with the managing members. (8) Investments reported in Banking segment. (9) Investments reported in Other segment. |
Summary of Carrying Amount of Company Investments in Non Marketable Equity Securities with No Readily Determinable Fair Value and Amounts Recognized in Earnings | The carrying amount of the Company’s investments in non-marketable equity securities with no readily determinable fair value and amounts recognized in earnings on a cumulative basis as of December 31, 2023 and for the years ended December 31, 2023, 2022 and 2021 is reflected in the following table: Cumulative Adjustments 2023 2022 2021 Carrying value (1) $ 77,825 $ 76,438 $ 63,321 Carrying value adjustments: Impairment $ — — — — Upward changes for observable prices (2) 50,492 — 2,022 30,197 Downward changes for observable prices (1,610) (1,524) — — Net upward (downward) change $ 48,882 $ (1,524) $ 2,022 $ 30,197 (1) Includes $2.3 million, $3.0 million and $2.8 million in unfunded commitments for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Cumulative adjustments excludes $13.9 million in realized cash gains for the sale of an investment in the second quarter of 2021. |
Schedule of Variable Interest Entities | The following table provides a summary of the VIEs that the Company has not consolidated as of December 31, 2023 and 2022: December 31, 2023 Carrying Amount Maximum Exposure to Loss Liability Recognized Classification Solar tax credit investments $ 6,714 $ 38,228 $ — Other assets (1) Affordable housing 15,611 15,611 7,715 Other assets & other liabilities (2) Canapi Funds 35,300 35,300 18,930 Other assets & other liabilities Non-marketable and other equity investments 8,840 8,840 2,321 Other assets & other liabilities December 31, 2022 Carrying Amount Maximum Exposure to Loss Liability Recognized Classification Solar tax credit investments $ 5,221 $ 24,295 $ 2,641 Other assets & other liabilities (3) Affordable housing 7,255 7,255 — Other assets Canapi Funds 37,021 37,021 20,474 Other assets & other liabilities Non-marketable and other equity investments 8,509 8,509 3,033 Other assets & other liabilities (1) Maximum exposure to loss represents $6.7 million of current investments and a scenario in which $31.5 million in related tax credits are recaptured. (2) Maximum exposure to loss represents $15.6 million of investments. As there are no tax credits allocated in the current year, there is no increase to the maximum exposure to loss related to recaptured tax credits on the $8.8 million LIHTC investment. (3) Maximum exposure to loss represents $5.2 million of current investments and a scenario in which related tax credits are recaptured, collectively totaling $19.1 million. |
Loans and Leases Held for Inv_2
Loans and Leases Held for Investment and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Age Analysis of Past Due Loans and Leases | The following tables show an age analysis of past due loans and leases as of the dates presented. December 31, 2023 Current or Less than 30 Days Past Due 30-89 Days 90 Days or More Past Due Total Past Due Total Carried at Amortized Loans Accounted for Under the Fair Value Option (1) Total Loans and Leases Commercial & Industrial Small Business Banking $ 2,075,227 $ 16,570 $ 33,366 $ 49,936 $ 2,125,163 $ 151,887 $ 2,277,050 Specialty Lending 1,131,493 — — — 1,131,493 7,829 1,139,322 Energy & Infrastructure 842,907 2,806 4,044 6,850 849,757 46,185 895,942 Paycheck Protection Program 5,595 — — — 5,595 — 5,595 Total 4,055,222 19,376 37,410 56,786 4,112,008 205,901 4,317,909 Construction & Development Small Business Banking 413,349 1,745 — 1,745 415,094 — 415,094 Specialty Lending 47,419 — — — 47,419 — 47,419 Energy & Infrastructure 7,541 — — — 7,541 — 7,541 Total 468,309 1,745 — 1,745 470,054 — 470,054 Commercial Real Estate Small Business Banking 2,414,677 18,589 32,310 50,899 2,465,576 127,358 2,592,934 Specialty Lending 511,712 — 12,032 12,032 523,744 — 523,744 Energy & Infrastructure 158,613 — 3,072 3,072 161,685 17,751 179,436 Total 3,085,002 18,589 47,414 66,003 3,151,005 145,109 3,296,114 Commercial Land Small Business Banking 531,331 1,521 1,910 3,431 534,762 37,026 571,788 Total 531,331 1,521 1,910 3,431 534,762 37,026 571,788 Total $ 8,139,864 $ 41,231 $ 86,734 $ 127,965 $ 8,267,829 $ 388,036 $ 8,655,865 Retained Loan Discount and Net Deferred Costs $ (22,018) Loan and Leases, Net $ 8,633,847 Guaranteed Balance $ 2,877,105 $ 29,183 $ 61,107 $ 90,290 $ 2,967,395 $ 66,299 $ 3,033,694 % Guaranteed 35.3% 70.8% 70.5% 70.6% 35.9% 17.1% 35.0% December 31, 2022 Current or Less than 30 Days Past Due 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Carried at Amortized Loans Accounted for Under the Fair Value Option (1) Total Loans and Leases Commercial & Industrial Small Business Banking $ 1,987,508 $ 21,987 $ 16,487 $ 38,474 $ 2,025,982 $ 195,856 $ 2,221,838 Specialty Lending 754,272 — — — 754,272 15,576 769,848 Energy & Infrastructure 420,447 — 3,082 3,082 423,529 50,094 473,623 Paycheck Protection Program 13,134 — — — 13,134 — 13,134 Total 3,175,361 21,987 19,569 41,556 3,216,917 261,526 3,478,443 Construction & Development Small Business Banking 471,243 1,500 — 1,500 472,743 — 472,743 Specialty Lending 104,069 — — — 104,069 — 104,069 Energy & Infrastructure 13,753 — — — 13,753 — 13,753 Total 589,065 1,500 — 1,500 590,565 — 590,565 Commercial Real Estate Small Business Banking 2,149,662 12,082 5,771 17,853 2,167,515 168,409 2,335,924 Specialty Lending 306,785 — — — 306,785 236 307,021 Energy & Infrastructure 136,706 — 3,072 3,072 139,778 22,123 161,901 Total 2,593,153 12,082 8,843 20,925 2,614,078 190,768 2,804,846 Commercial Land Small Business Banking 429,014 1,663 1,917 3,580 432,594 42,164 474,758 Total 429,014 1,663 1,917 3,580 432,594 42,164 474,758 Total $ 6,786,593 $ 37,232 $ 30,329 $ 67,561 $ 6,854,154 $ 494,458 $ 7,348,612 Retained Loan Discount and Net Deferred Costs $ (4,434) Loan and Leases, Net $ 7,344,178 Guaranteed Balance $ 2,657,770 $ 20,199 $ 26,026 $ 46,225 $ 2,703,995 $ 67,268 $ 2,771,263 % Guaranteed 39.2% 54.3% 85.8% 68.4% 39.5% 13.6% 37.7% (1) Retained portions of government guaranteed loans sold prior to January 1, 2021 are carried at fair value under FASB ASC Subtopic 825-10, Financial Instruments: Overall. See Note 10. Fair Value of Financial Instruments for additional information. |
Summary of Credit Quality Indicators by Portfolio Class | The following tables present credit quality indicators by portfolio class: Term Loans and Leases Amortized Cost Basis by Origination Year December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Total (1) Small Business Banking Risk Grades 1 - 4 $ 990,349 $ 1,470,824 $ 1,255,664 $ 660,926 $ 363,377 $ 296,132 $ 63,963 $ 11,047 $ 5,112,282 Risk Grade 5 7,744 72,913 60,115 37,390 42,095 50,705 7,174 1,407 279,543 Risk Grades 6 - 8 2,286 31,487 29,636 35,611 18,429 28,700 2,621 — 148,770 Total 1,000,379 1,575,224 1,345,415 733,927 423,901 375,537 73,758 12,454 5,540,595 Specialty Lending Risk Grades 1 - 4 640,596 337,880 226,170 21,286 9,103 112 210,460 58,441 1,504,048 Risk Grade 5 8,858 52,767 35,453 43,080 9,223 — 20,547 5,417 175,345 Risk Grades 6 - 8 — — 12,032 — — — 7,203 4,028 23,263 Total 649,454 390,647 273,655 64,366 18,326 112 238,210 67,886 1,702,656 Energy & Infrastructure Risk Grades 1 - 4 386,421 223,309 120,917 41,919 50,035 23,308 14,818 — 860,727 Risk Grade 5 — — 104,371 13,485 7,827 18,627 — — 144,310 Risk Grades 6 - 8 — 4,024 6,303 3,619 — — — — 13,946 Total 386,421 227,333 231,591 59,023 57,862 41,935 14,818 — 1,018,983 Paycheck Protection Program Risk Grades 1 - 4 — — 2,831 2,764 — — — — 5,595 Total — — 2,831 2,764 — — — — 5,595 Total $ 2,036,254 $ 2,193,204 $ 1,853,492 $ 860,080 $ 500,089 $ 417,584 $ 326,786 $ 80,340 $ 8,267,829 Year-To-Date Small Business Banking $ — $ 5,621 $ 6,435 $ 1,058 $ 1,225 $ 525 $ 1,097 $ — $ 15,961 Specialty Lending — — — — — — 7,966 — 7,966 Total $ — $ 5,621 $ 6,435 $ 1,058 $ 1,225 $ 525 $ 9,063 $ — $ 23,927 Term Loans and Leases Amortized Cost Basis by Origination Year December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Total (1) Small Business Banking Risk Grades 1 - 4 $ 1,499,309 $ 1,490,346 $ 857,380 $ 438,907 $ 224,199 $ 204,933 $ 75,005 $ 1,773 $ 4,791,852 Risk Grade 5 15,942 22,295 45,541 46,655 30,523 27,212 15,549 452 204,169 Risk Grades 6 - 8 1,806 8,777 18,261 29,047 14,260 27,215 2,688 759 102,813 Total 1,517,057 1,521,418 921,182 514,609 268,982 259,360 93,242 2,984 5,098,834 Specialty Lending Risk Grades 1 - 4 562,952 266,165 82,812 13,343 268 788 143,512 31,469 1,101,309 Risk Grade 5 7,341 28,722 6,990 9,258 — — 4,280 — 56,591 Risk Grades 6 - 8 — 6,933 — — — — 293 — 7,226 Total 570,293 301,820 89,802 22,601 268 788 148,085 31,469 1,165,126 Energy & Infrastructure Risk Grades 1 - 4 199,338 176,855 39,600 51,190 23,374 19,694 12,751 351 523,153 Risk Grade 5 4,024 4,409 500 6,976 4,706 5,142 — — 25,757 Risk Grades 6 - 8 — 3,082 16,589 — 8,479 — — — 28,150 Total 203,362 184,346 56,689 58,166 36,559 24,836 12,751 351 577,060 Paycheck Protection Program Risk Grades 1 - 4 — 7,421 5,713 — — — — — 13,134 Total — 7,421 5,713 — — — — — 13,134 Total $ 2,290,712 $ 2,015,005 $ 1,073,386 $ 595,376 $ 305,809 $ 284,984 $ 254,078 $ 34,804 $ 6,854,154 (1) Excludes $388.0 million and $494.5 million of loans accounted for under the fair value option as of December 31, 2023 and December 31, 2022, respectively. The following tables present guaranteed and unguaranteed loan and lease balances by asset quality indicator: December 31, 2023 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance % Guaranteed Risk Grades 1 - 4 $ 7,482,652 $ 2,622,558 $ 4,860,094 35.0 % Risk Grade 5 599,198 234,845 364,353 39.2 Risk Grades 6 - 8 185,979 109,992 75,987 59.1 Total $ 8,267,829 $ 2,967,395 $ 5,300,434 35.9 % December 31, 2022 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance % Guaranteed Risk Grades 1 - 4 $ 6,429,448 $ 2,508,229 $ 3,921,219 39.0 % Risk Grade 5 286,517 115,573 170,944 40.3 Risk Grades 6 - 8 138,189 80,193 57,996 58.0 Total $ 6,854,154 $ 2,703,995 $ 4,150,159 39.5 % (1) Excludes $388.0 million and $494.5 million of loans accounted for under the fair value option as of December 31, 2023 and 2022, respectively. |
Nonaccrual Loans and Leases | Nonaccrual loans and leases as of December 31, 2023 and December 31, 2022 are as follows: December 31, 2023 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 47,558 $ 39,018 $ 8,540 $ 407 Energy & Infrastructure 6,850 2,794 4,056 2,546 Total 54,408 41,812 12,596 2,953 Construction & Development Small Business Banking 1,745 1,309 436 — Total 1,745 1,309 436 — Commercial Real Estate Small Business Banking 57,140 44,426 12,714 8,199 Specialty Lending 12,032 — 12,032 12,032 Energy & Infrastructure 3,072 2,799 273 — Total 72,244 47,225 25,019 20,231 Commercial Land Small Business Banking 6,566 5,332 1,234 194 Total 6,566 5,332 1,234 194 Total $ 134,963 $ 95,678 $ 39,285 $ 23,378 December 31, 2022 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 25,968 $ 19,686 $ 6,282 $ 407 Energy & Infrastructure 3,082 2,794 288 288 Total 29,050 22,480 6,570 695 Commercial Real Estate Small Business Banking 34,520 23,830 10,690 3,611 Energy & Infrastructure 3,072 2,799 273 — Total 37,592 26,629 10,963 3,611 Commercial Land Small Business Banking 6,750 5,499 1,251 196 Total 6,750 5,499 1,251 196 Total $ 73,392 $ 54,608 $ 18,784 $ 4,502 (1) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. When a loan or lease is placed on nonaccrual status, any accrued interest is reversed from loan interest income. The following table summarizes the amount of accrued interest reversed during the periods presented: Twelve Months Ended December 31, 2023 2022 Commercial & Industrial $ 2,212 $ 619 Commercial Real Estate 1,041 833 Commercial Land — 127 Construction & Development 56 — Total $ 3,309 $ 1,579 |
Amortized Cost Basis of Collateral-Dependent Loans and Leases | The following tables present the amortized cost basis of collateral-dependent loans and leases which are individually evaluated to determine expected credit losses, as of December 31, 2023 and 2022: Total Collateral-Dependent Loans Unguaranteed Portion December 31, 2023 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 2,737 $ 2,426 $ — $ 421 $ 547 $ — $ 277 Specialty Lending — 4,711 — — 4,711 — — Energy & Infrastructure — 3,022 — — 227 — — Total 2,737 10,159 — 421 5,485 — 277 Commercial Real Estate Small Business Banking 21,211 — — 6,298 — — — Total 21,211 — — 6,298 — — — Commercial Land Small Business Banking 1,735 — — 200 — — — Total 1,735 — — 200 — — — Total $ 25,683 $ 10,159 $ — $ 6,919 $ 5,485 $ — $ 277 Total Collateral-Dependent Loans Unguaranteed Portion December 31, 2022 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 2,730 $ 371 $ — $ 414 $ 371 $ — $ 291 Energy & Infrastructure 16,378 — — 13,583 — — — Total 19,108 371 — 13,997 371 — 291 Commercial Real Estate Small Business Banking 15,286 — — 6,440 — — 152 Total 15,286 — — 6,440 — — 152 Commercial Land Small Business Banking 1,743 — — 202 — — — Total 1,743 — — 202 — — — Total $ 36,137 $ 371 $ — $ 20,639 $ 371 $ — $ 443 |
Activity in the Allowance for Credit Losses by Portfolio Segment | The following tables detail activity in the allowance for credit losses for the periods presented: Commercial & Industrial Construction & Development Commercial Real Estate Commercial Land Total December 31, 2023 Beginning Balance $ 64,995 $ 5,101 $ 22,901 $ 3,569 $ 96,566 Adoption of ASU 2022-02 (25) (166) (83) (402) (676) Charge offs (22,510) — (1,417) — (23,927) Recoveries 839 — 1,715 — 2,554 Provision 44,282 (218) 5,748 1,511 51,323 Ending Balance $ 87,581 $ 4,717 $ 28,864 $ 4,678 $ 125,840 December 31, 2022 Beginning Balance $ 37,770 $ 3,435 $ 19,068 $ 3,311 $ 63,584 Charge offs (8,262) — (1,463) (652) (10,377) Recoveries 1,039 3 1,363 11 2,416 Provision 34,448 1,663 3,933 899 40,943 Ending Balance $ 64,995 $ 5,101 $ 22,901 $ 3,569 $ 96,566 December 31, 2021 Beginning Balance $ 26,941 $ 5,663 $ 18,148 $ 1,554 $ 52,306 Charge offs (2,912) (262) (2,731) (12) (5,917) Recoveries 172 — 1,813 — 1,985 Provision 13,569 (1,966) 1,838 1,769 15,210 Ending Balance $ 37,770 $ 3,435 $ 19,068 $ 3,311 $ 63,584 |
Loans Modified | The following tables summarize the amortized cost basis of loans that were modified during the periods presented. Twelve Months Ended December 31, 2023 Other-Than-Insignificant Term Extension Interest Rate Reduction Combination - Term Extension & Payment Delay % of Total Class of Small Business Banking $ 10,090 $ 5,127 $ 3,330 $ 361 0.3 % Specialty Lending — 708 — 4,133 0.3 Energy & Infrastructure — 13,485 — — 1.4 Total $ 10,090 $ 19,320 $ 3,330 $ 4,494 2.0 % The following table presents an aging analysis of loans that were modified on or after January 1, 2023, the date the Company adopted ASU 2022-02, through December 31, 2023. Current 30-89 Days 90 Days or More Past Due Total Past Due Small Business Banking $ 18,908 $ — $ — $ — Specialty Lending 4,841 — — — Energy & Infrastructure 13,485 — — — Total $ 37,234 $ — $ — $ — The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty during the periods presented. Twelve Months Ended December 31, 2023 Weighted Average Weighted Average Small Business Banking 1.41 % 67 Specialty Lending — 67 Energy & Infrastructure — 15 The following table represents the types of TDRs that were made during the periods presented: Twelve months ended December 31, 2022 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 7 $ 8,795 3 $ 1,442 1 $ 490 11 $ 10,727 Specialty Lending — — 1 4,183 — — — — 1 4,183 Energy & Infrastructure — — — — 1 13,517 1 13,517 Total — — 8 12,978 4 14,959 1 490 13 28,427 Commercial Real Estate Small Business Banking 1 3,677 1 797 1 4,364 — — 3 8,838 Total 1 3,677 1 797 1 4,364 — — 3 8,838 Construction & Development Small Business Banking — — — — — — 2 3,081 2 3,081 Total — — — — — — 2 3,081 2 3,081 Total 1 $ 3,677 9 $ 13,775 5 $ 19,323 3 $ 3,571 18 $ 40,346 (1) Includes one small business banking loan with extend amortization and a rate concession ($490 thousand) and two small business banking loans with extended amortization and interest only ($3.1 million). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. Twelve months ended December 31, 2021 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 3 $ 6,097 1 $ 496 — $ — 4 $ 6,593 Total — — 3 6,097 1 496 — — 4 6,593 Commercial Real Estate Small Business Banking — — 5 6,613 — — 1 3,124 6 9,737 Total — — 5 6,613 — — 1 3,124 6 9,737 Total — $ — 8 $ 12,710 1 $ 496 1 $ 3,124 10 $ 16,330 (1) Includes one small business banking loan with extended amortization and a rate concession TDR ($3.1 million). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. Restructurings made to improve a loan’s performance have varying degrees of success. The following tables present TDRs that were modified within the twelve months ended December 31, 2022 that subsequently defaulted during the period: Twelve months ended December 31, 2022 Interest Only Payment Deferral Extend Amortization Other Total TDRs (1) Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Number of Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 2 $ 940 2 $ 318 — $ — 4 $ 1,258 Total — $ — 2 $ 940 2 $ 318 — $ — 4 $ 1,258 (1) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Net Lease Investment | The gross lease payments receivable and the net investment included in loans and leases held for investment are as follows: As of December 31, 2023 2022 Gross direct finance lease payments receivable $ 2,335 $ 4,284 Less - unearned interest (218) (479) Net investment in direct financing leases $ 2,117 $ 3,805 |
Future Minimum Finance Lease Payments Receivable | Future minimum lease payments receivable under direct finance leases are as follows: As of December 31, 2023 Amount 2024 $ 1,250 2025 968 2026 117 Total $ 2,335 |
Maturity Analysis of Future Minimum Operating Lease Payments Receivable | A maturity analysis of future minimum lease payments receivable under non-cancelable operating leases is as follows: As of December 31, 2023 Amount 2024 $ 9,055 2025 8,738 2026 8,721 2027 8,483 2028 3,837 Thereafter 9,708 Total $ 48,542 |
Summary of Components of Lease Expense | The components of lease expense are as follows: December 31, 2023 December 31, 2022 Operating lease cost $ 820 $ 1,224 Short-term lease cost 123 99 Finance lease cost: Amortization of right-of-use assets — 4 Interest expense on lease liabilities — — Total net lease cost $ 943 $ 1,327 |
Summary of Consolidated Balance Sheet Related to Operating and Finance Leases | Supplemental disclosure for the consolidated balance sheets related to operating leases is as follows: December 31, 2023 December 31, 2022 Operating lease right-of-use asset $ 2,799 $ 2,118 Operating lease liability 3,180 2,558 |
Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Leases | The weighted average remaining lease term and weighted average discount rate for leases are as follows: December 31, 2023 December 31, 2022 Weighted average remaining lease term (years) Operating leases 10.58 10.62 Weighted average discount rate Operating leases 3.64 % 3.14 % |
Summary of Operating Lease Liabilities | A maturity analysis of operating lease liabilities is as follows: As of December 31, 2023 Operating Leases 2024 $ 718 2025 571 2026 508 2027 500 2028 333 Thereafter 1,231 Total lease payments 3,861 Less: imputed interest (681) Total lease liabilities $ 3,180 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Summary of Activity Pertaining to Servicing Rights | The following summarizes the activity pertaining to servicing rights measured at fair value: 2023 2022 Balance at beginning of period $ 26,323 $ 33,574 Additions, net 16,977 9,326 Fair value changes: Due to changes in valuation inputs or assumptions (1) 14,297 (5,934) Decay due to increases in principal paydowns or runoff (9,411) (10,643) Balance at end of period $ 48,186 $ 26,323 (1) The twelve month period ended December 31, 2023, includes a $13.7 million increase related to change in estimate implemented on July 1, 2023. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Depreciation is computed by the straight-line method over the following generally estimated useful lives: Years Buildings 39 Transportation 5-10 Land improvements 10-15 Furniture and equipment 5-10 Hardware and software 3-5 Solar panels 20-25 Components of premises and equipment and total accumulated depreciation at December 31, 2023 and 2022 are as follows: 2023 2022 Buildings $ 54,746 $ 54,746 Land improvements 5,213 5,180 Furniture and equipment 19,537 19,117 Hardware and software 16,698 10,264 Leasehold improvements 7,678 7,705 Land 17,998 15,982 Transportation 22,279 49,766 Solar panels 162,348 163,391 Deposits on fixed assets 48,518 33,966 Premises and equipment, total 355,015 360,117 Less accumulated depreciation (97,134) (96,827) Premises and equipment, net of depreciation $ 257,881 $ 263,290 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
Types of Deposits | The types of deposits at December 31, 2023 and 2022 are: 2023 2022 Noninterest-bearing deposits $ 259,270 $ 194,100 Interest-bearing deposits: Interest-bearing checking 301,006 — Money market 135,551 128,443 Savings 4,497,376 4,096,576 Time deposits 5,081,816 4,465,809 Total 10,015,749 8,690,828 Total deposits $ 10,275,019 $ 8,884,928 |
Schedule of Maturities of Time Deposits | At December 31, 2023 the scheduled maturities of total time deposits are as follows: Year Amount 2024 $ 3,452,692 2025 556,766 2026 370,858 2027 258,963 2028 156,472 Thereafter 286,065 Total $ 5,081,816 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Total Outstanding Borrowings | Total outstanding borrowings consisted of the following: December 31, December 31, Borrowings In March 2021, the Company entered into a 60-month term loan agreement of $50.0 million with a third party correspondent bank. The loan accrues interest at a fixed rate of 2.95% with a monthly payment sufficient to fully amortize the loan, with all remaining unpaid principal and interest due at maturity on March 30, 2026. The Company paid the Lender a non-refundable $325 thousand loan origination fee upon signing of the Note that is presented as a direct deduction from the carrying amount of the loan and will be amortized into interest expense over the life of the loan. $ 23,354 $ 33,203 On December 30, 2022, the Company made an advance of $50.0 million on an overnight Fed Funds line of credit that is unsecured with an interest rate of 4.65%. The Company paid down the balance in full on January 3, 2023 and there is $100.0 million of available credit remaining at December 31, 2023. — 50,000 Total borrowings $ 23,354 $ 83,203 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The components of income tax expense for the years ended December 31 are as follows: 2023 2022 2021 Current income tax expense: Federal $ 24,051 $ 3,686 $ 12,774 State 7,042 3,301 6,211 Total current tax expense 31,093 6,987 18,985 Deferred income tax (benefit) expense: Federal (20,914) 23,838 22,886 State (1,247) 3,291 1,922 Total deferred tax (benefit) expense (22,161) 27,129 24,808 Income tax expense, as reported $ 8,932 $ 34,116 $ 43,793 |
Schedule of Effective Income Tax Rate Reconciliation | Reported income tax expense differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% in 2023, 2022 and 2021 to income before income taxes as follows: 2023 2022 2021 Income tax expense computed at the statutory rate $ 17,394 $ 44,168 $ 44,266 State income tax expense, net of federal 4,316 5,899 6,426 Stock-based compensation expense 2,084 73 (4,689) Decrease in taxes due to investment tax credit (16,390) (16,361) (3,392) Amended return net benefits — (3,261) — Other 1,528 3,598 1,182 Total income tax expense $ 8,932 $ 34,116 $ 43,793 |
Schedule of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities are as follows: 2023 2022 Deferred tax assets: Net unrealized losses on securities available for sale $ 26,753 $ 29,153 Allowance for loan and lease losses 30,576 27,159 Stock-based compensation expense 2,599 5,248 Capitalized research and experimentation costs 4,726 3,780 Accrued expenses 1,283 1,070 Operating lease liabilities 773 618 Goodwill and intangibles — 14 Unguaranteed loan discount 319 — Deferred loan fees and costs, net 101 — Other 1,806 1,147 Total deferred tax assets 68,936 68,189 Deferred tax liabilities: Premises and equipment 37,381 39,054 Net unrealized gains on non-marketable and other equity securities 18,165 22,309 Mark to market on loans held for sale 6,294 14,036 Unguaranteed loan discount — 4,309 Deferred loan fees and costs, net — 1,332 Operating lease right-of-use assets 680 511 Goodwill and intangibles 19 — Other 11 13 Total deferred tax liabilities 62,550 81,564 Net deferred tax asset (liability) $ 6,386 $ (13,375) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Rollforward of Level 3 Equity Warrant Asset Fair Values | The table below provides a rollforward of the Level 3 equity warrant asset fair values. Twelve months ended December 31, Equity Warrant Assets 2023 2022 Balance at beginning of period $ 2,210 $ 1,672 Issuances 1,005 833 Net gains on derivative instruments 19 671 Settlements (360) (966) Balance at end of period $ 2,874 $ 2,210 |
Record Amount of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. December 31, 2023 Total Level 1 Level 2 Level 3 Investment securities available-for-sale U.S. government agencies $ 17,529 $ — $ 17,529 $ — Mortgage-backed securities 1,105,592 — 1,105,592 — Municipal bonds (1) 3,039 — 2,954 85 Loans held for investment 388,036 — — 388,036 Servicing assets (2) 48,186 — — 48,186 Mutual fund 1,645 — 1,645 — Equity warrant assets 2,874 — — 2,874 Total assets at fair value $ 1,566,901 $ — $ 1,127,720 $ 439,181 December 31, 2022 Total Level 1 Level 2 Level 3 Investment securities available-for-sale U.S. government agencies $ 15,668 $ — $ 15,668 $ — Mortgage-backed securities 995,574 — 995,574 — Municipal bonds (1) 2,977 — 2,884 93 Other debt securities 500 — 500 — Loans held for investment 494,458 — — 494,458 Servicing assets (2) 26,323 — — 26,323 Mutual fund 1,656 — 1,656 — Equity warrant assets 2,210 — — 2,210 Total assets at fair value $ 1,539,366 $ — $ 1,016,282 $ 523,084 (1) During the year ended December 31, 2023, the Company recorded a principal paydown of $1 thousand and a fair value adjustment loss of $7 thousand. During the year ended December 31, 2022, the Company recorded a principal paydown of $1 thousand and a fair value adjustment loss of $2 thousand. (2) See Note 5 for a rollforward of recurring Level 3 fair values for servicing assets. |
Summary of Fair Value Carrying Amount and Unpaid Principal Outstanding of Loans Under Fair Value Option | The following tables provide more information about the fair value carrying amount and the unpaid principal outstanding of loans accounted for under the fair value option at December 31, 2023 and December 31, 2022. December 31, 2023 Total Loans Nonaccruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Option Elections Loans held for investment $ 388,036 $ 407,544 $ (19,508) $ 48,474 $ 50,749 $ (2,275) $ 36,490 $ 37,939 $ (1,449) $ 388,036 $ 407,544 $ (19,508) $ 48,474 $ 50,749 $ (2,275) $ 36,490 $ 37,939 $ (1,449) December 31, 2022 Total Loans Nonaccruals 90 Days or More Past Due Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Carrying Amount Unpaid Principal Balance Difference Fair Value Option Elections Loans held for investment $ 494,458 $ 513,219 $ (18,761) $ 44,890 $ 46,993 $ (2,103) $ 24,663 $ 26,321 $ (1,658) $ 494,458 $ 513,219 $ (18,761) $ 44,890 $ 46,993 $ (2,103) $ 24,663 $ 26,321 $ (1,658) |
Schedule of Net Gains (Losses) from Changes in Fair Value | The following table presents the net (losses) gains from changes in fair value. Twelve Months Ended (Losses) Gains on Loans Accounted for under the Fair Value Option 2023 2022 Loans held for sale $ — $ 1,521 Loans held for investment (3,539) (475) $ (3,539) $ 1,046 |
Summary of the Activity Pertaining to Loans Accounted for Under Fair Value Option | The following tables summarize the activity pertaining to loans accounted for under the fair value option. Twelve Months Ended December 31, Loans held for sale 2023 2022 Balance at beginning of period $ — $ 25,310 Repurchases and issuances — 65 Fair value changes — 1,521 Transfers — (26,219) Settlements — (677) Balance at end of period $ — $ — Twelve Months Ended December 31, Loans held for investment 2023 2022 Balance at beginning of period $ 494,458 $ 645,201 Repurchases and issuances 22,955 18,629 Fair value changes (3,539) (475) Transfers — 26,219 Settlements (125,838) (195,116) Balance at end of period $ 388,036 $ 494,458 |
Recorded Amount of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The tables below present the recorded amount of assets measured at fair value on a non-recurring basis. The Company has no liabilities recorded at fair value on a non-recurring basis. December 31, 2023 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 4,503 $ — $ — $ 4,503 Foreclosed assets 6,481 — — 6,481 Total assets at fair value $ 10,984 $ — $ — $ 10,984 December 31, 2022 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 4,840 $ — $ — $ 4,840 Total assets at fair value $ 4,840 $ — $ — $ 4,840 |
Analysis of Level 3 Valuation Techniques | For Level 3 assets measured at fair value on a recurring or non-recurring basis as of December 31, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2023 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Weighted Average (1) Recurring fair value Municipal bond $ 85 Discounted expected cash flows Discount rate 7.0% N/A Prepayment speed 5.0% N/A Loans held for investment $ 388,036 Discounted expected cash flows Loss rate 0.0% - 7.4% 1.2 % Discount rate 6.7% - 18.0% 9.6 % Prepayment speed 14.0% - 30.3% 16.0 % Servicing assets $ 48,186 Discounted expected cash flows Discount rate 14.5% 14.5 % Prepayment speed 11.8% - 17.8% 15.3 % Equity warrant assets $ 2,874 Black-Scholes option pricing model Volatility 26.9% - 90.0% 35.8 % Risk-free interest rate 3.8% - 3.9% 3.9 % Marketability discount 20.0% - 25.0% 22.7 % Remaining life 3.9 - 10 years 7.6 years Non-recurring fair value Collateral-dependent loans $ 4,503 Discounted appraisals Appraisal adjustments (2) 10.0% - 70.0% 38.7 % Foreclosed assets $ 6,481 Discounted appraisals Appraisal adjustments (2) 10.0% - 17.4% 10.4 % December 31, 2022 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Weighted Average (1) Recurring fair value Municipal bond $ 93 Discounted expected cash flows Discount rate 6.0% N/A Prepayment speed 5.0% N/A Loans held for investment $ 494,458 Discounted expected cash flows Loss rate 0.0 % - 79.3 % 1.9 % Discount rate 7.5 % - 11.2 % 10.0 % Prepayment speed 16.5% 16.5 % Discounted appraisals Appraisal adjustments 0.0 % - 77.3 % 28.6 % Servicing assets $ 26,323 Discounted expected cash flows Discount rate 0.0 % - 32.0% 20.8 % Prepayment speed 0.0 % - 37.4 % 15.7 % Equity warrant assets $ 2,210 Black-Scholes option pricing model Volatility 26.5 % - 90.0 % 34.2 % Risk-free interest rate 3.9 % - 4.0 % 3.9 % Marketability discount 20.0 % 20.0 % Remaining life 3 - 10 years 7.7 years Non-recurring fair value Collateral-dependent loans $ 4,840 Discounted appraisals Appraisal adjustments (2) 10.0 % - 66.5 % 34.2 % (1) Weighted averages are determined by the relative fair value of the instruments or the relative contribution to the instruments fair value. (2) Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and other qualitative adjustments. |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis are as follows: December 31, 2023 Carrying Amount Quoted Price In Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 582,540 $ 582,540 $ — $ — $ 582,540 Certificates of deposit with other banks 250 250 — — 250 Loans held for sale 387,037 — — 402,096 402,096 Loans and leases held for investment, net of allowance for credit losses on loans and leases 8,119,971 — — 8,600,046 8,600,046 Financial liabilities Deposits 10,275,019 — 10,080,182 — 10,080,182 Borrowings 23,354 — — 22,844 22,844 December 31, 2022 Carrying Amount Quoted Price In Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 280,239 $ 280,239 $ — $ — $ 280,239 Federal funds sold 136,397 136,397 — — 136,397 Certificates of deposit with other banks 4,000 4,000 — — 4,000 Loans held for sale 554,610 — — 577,254 577,254 Loans and leases held for investment, net of allowance for credit losses on loans and leases 6,753,154 — — 6,652,936 6,652,936 Financial liabilities Deposits 8,884,928 — 8,532,615 — 8,532,615 Borrowings 83,203 — — 82,258 82,258 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments | A summary of the Company’s commitments is as follows: December 31, 2023 December 31, 2022 Commitments to extend credit (1) $ 2,921,978 $ 2,731,866 Standby letters of credit 20,487 26,454 Airplane purchase agreement commitments 9,000 24,000 Total unfunded off-balance sheet credit risk $ 2,951,465 $ 2,782,320 (1) Includes unfunded overdraft protection. |
Schedules of Concentration of Risk, by Risk Factor | The following table presents the geographic concentration of the Company’s loan and lease portfolio at December 31, 2023: % of Total Geographic Regions (1) Midwest 12.4 % Northeast 18.7 Southeast 30.8 Southwest 12.2 West 25.9 Total 100.0 % (1) Concentrations are stated as a percentage of total unguaranteed loans held for investment. Midwest consists of ND, SD, NE, KS, MN, IA,WI, MO, IL, IN, MI and OH. Northeast consists of MD, DE, PA, NJ, NY, CT, RI, MA, VT, ME and NH. Southeast consists of AR, LA, MS, TN, AL, GA, FL, SC, KY, NC, VA, WV, DC, PR and VI. Southwest consists of AZ, NM, TX and OK. West consists of WA, OR, CA, NV, ID, MT, WY, CO, UT, AK and HI. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | Stock option activity under the 2015 Omnibus Stock Incentive Plan during the year ended December 31, 2023 is summarized below. Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2022 825,114 $ 12.73 Exercised (148,551) 12.71 Outstanding at December 31, 2023 676,563 $ 12.74 1.31 years $ 22,165,930 Exercisable at December 31, 2023 676,563 $ 12.74 1.31 years $ 22,165,930 |
Summary of Non-vested Stock Option Activity | The following is a summary of non-vested stock option activity for the Company for the years ended December 31, 2023, 2022 and 2021. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 1,022,636 $ 5.38 Vested (592,693) 4.35 Forfeited (47,093) 7.28 Non-vested at December 31, 2021 382,850 6.75 Vested (336,464) 6.85 Forfeited (8,626) 6.95 Non-vested at December 31, 2022 37,760 6.60 Vested (37,760) 6.60 Non-vested at December 31, 2023 — $ — |
Restricted Stock Unit Activity | The following is a summary of non-vested RSU stock activity for the Company for the year ended December 31, 2023. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2022 2,409,698 $ 43.63 Granted 927,838 34.83 Vested (565,790) 41.87 Forfeited (543,510) 47.39 Non-vested at December 31, 2023 2,228,236 $ 39.50 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Capital amounts and ratios as of December 31, 2023 and 2022, are presented in the following table. Actual Minimum Capital Minimum To Be Amount Ratio Amount Ratio Amount Ratio Consolidated - December 31, 2023 Common Equity Tier 1 (to Risk-Weighted Assets) $ 960,433 11.73 % $ 368,549 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 1,063,157 12.98 % $ 655,198 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 960,433 11.73 % $ 491,399 6.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 960,433 8.58 % $ 447,561 4.00 % N/A N/A Bank - December 31, 2023 Common Equity Tier 1 (to Risk-Weighted Assets) $ 823,478 10.40 % $ 356,426 4.50 % $ 514,837 6.50 % Total Capital (to Risk-Weighted Assets) $ 922,876 11.65 % $ 633,646 8.00 % $ 792,057 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 823,478 10.40 % $ 475,234 6.00 % $ 633,646 8.00 % Tier 1 Capital (to Average Assets) $ 823,478 7.41 % $ 444,480 4.00 % $ 555,600 5.00 % Consolidated - December 31, 2022 Common Equity Tier 1 (to Risk-Weighted Assets) $ 888,235 12.47 % $ 320,446 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 977,360 13.73 % $ 569,681 8.00% N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 888,235 12.47 % $ 427,261 6.00% N/A N/A Tier 1 Capital (to Average Assets) $ 888,235 9.26 % $ 383,499 4.00% N/A N/A Bank - December 31, 2022 Common Equity Tier 1 (to Risk-Weighted Assets) $ 730,092 10.70 % $ 307,179 4.50 % $ 443,703 6.50 % Total Capital (to Risk-Weighted Assets) $ 815,577 11.95 % $ 546,096 8.00% $ 682,620 10.00% Tier 1 Capital (to Risk-Weighted Assets) $ 730,092 10.70 % $ 409,572 6.00% $ 546,096 8.00% Tier 1 Capital (to Average Assets) $ 730,092 7.70 % $ 379,396 4.00% $ 474,245 5.00% |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Loan Activity | The following table provides related party loan activity during 2023: Amount Balance as of December 31, 2022 $ 21,738 Loan originations 3,723 Loan repayments (2,537) Balance as of December 31, 2023 $ 22,924 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables provide financial information for the Company's segments. The information provided under the caption “Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries and elimination adjustments to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP. Banking Fintech Other Consolidated As of and for the year ended December 31, 2023 Interest income $ 687,655 $ 39 $ 581 $ 688,275 Interest expense 341,789 — 1,181 342,970 Net interest income 345,866 39 (600) 345,305 Provision for loan and lease credit losses 51,323 — — 51,323 Noninterest income 101,054 8,297 2,382 111,733 Noninterest expense 303,695 10,458 8,732 322,885 Income tax (benefit) expense 9,106 1,034 (1,208) 8,932 Net income (loss) $ 82,796 $ (3,156) $ (5,742) $ 73,898 Total assets $ 11,145,385 $ 131,310 $ (5,272) $ 11,271,423 As of and for the year ended December 31, 2022 Interest income $ 444,307 $ 93 $ 73 $ 444,473 Interest expense 115,324 — 1,648 116,972 Net interest income 328,983 93 (1,575) 327,501 Provision for loan and lease credit losses 40,943 — — 40,943 Noninterest income 80,562 155,028 2,402 237,992 Noninterest expense 296,891 9,413 7,922 314,226 Income tax (benefit) expense (226) 36,016 (1,674) 34,116 Net income (loss) $ 71,937 $ 109,692 $ (5,421) $ 176,208 Total assets $ 9,672,458 $ 124,249 $ 58,791 $ 9,855,498 As of and for the year ended December 31, 2021 Interest income $ 360,986 $ 201 $ 26 $ 361,213 Interest expense 63,119 — 1,309 64,428 Net interest income 297,867 201 (1,283) 296,785 Provision for loan and lease credit losses 15,210 — — 15,210 Noninterest income 114,363 43,141 2,696 160,200 Noninterest expense 215,819 5,395 9,773 230,987 Income tax (benefit) expense 35,539 10,280 (2,026) 43,793 Net income (loss) $ 145,662 $ 27,667 $ (6,334) $ 166,995 Total assets $ 8,053,212 $ 121,889 $ 38,292 $ 8,213,393 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Balance Sheets As of December 31, 2023 2022 Assets Cash and cash equivalents $ 81,897 $ 103,238 Investment in subsidiaries 843,978 704,905 Other assets 14,518 50,801 Total assets $ 940,393 $ 858,944 Liabilities and Shareholders' Equity Borrowings $ 23,354 $ 33,203 Other liabilities 14,373 14,708 Total liabilities 37,727 47,911 Shareholders' equity: Common stock 344,568 330,854 Retained earnings 642,817 572,497 Accumulated other comprehensive loss (84,719) (92,318) Total shareholders' equity 902,666 811,033 Total liabilities and shareholders' equity $ 940,393 $ 858,944 |
Statements of Income | Statements of Income Years ended December 31, 2023 2022 2021 Interest income $ 581 $ 73 $ 25 Interest expense 1,182 1,648 1,309 Net interest loss (601) (1,575) (1,284) Noninterest income: Other noninterest income (290) (107) 716 Total noninterest income (290) (107) 716 Noninterest expense: Salaries and employee benefits 1,549 1,444 5,120 Professional services expense 1,540 1,163 679 Other expense 2,384 1,907 789 Total noninterest expense 5,473 4,514 6,588 Net loss before equity in undistributed income of subsidiaries (6,364) (6,196) (7,156) Income tax benefit (1,010) (1,358) (1,615) Net loss (5,354) (4,838) (5,541) Equity in undistributed income of subsidiaries in excess of dividends from subsidiaries 79,252 181,046 172,536 Net income attributable to Live Oak Bancshares, Inc. $ 73,898 $ 176,208 $ 166,995 |
Statements of Cash Flows | Statements of Cash Flows Years ended December 31, 2023 2022 2021 Cash flows from operating activities Net income $ 73,898 $ 176,208 $ 166,995 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed net income of subsidiaries in excess of dividends of subsidiaries (79,252) (181,046) (172,536) Subsidiary vesting of restricted stock and other (10,474) (14,862) 2,679 Deferred tax (benefit) expense (15) 434 30,070 Stock option compensation expense 272 942 1,379 Restricted stock compensation expense 17,603 19,405 15,572 Business combination contingent consideration fair value adjustments 125 (86) 99 Net change in other assets 36,283 (2,846) (22,645) Net change in other liabilities 299 (1,626) (11,243) Net cash provided by (used in) operating activities 38,739 (3,477) 10,370 Cash flows from investing activities Capital (investment in) return on subsidiaries (40,000) 121,750 (26,407) Purchases of equity security investments (132) (182) (84) Purchases of equity method investments (612) (904) (237) Net cash (used in) provided by investing activities (40,744) 120,664 (26,728) Cash flows from financing activities Proceeds from borrowings 71 12,096 57,675 Repayment of borrowings (9,920) (29,627) (21,429) Stock option exercises 1,168 2,118 4,158 Employee stock purchase program 1,396 1,067 670 Withholding cash issued in lieu of restricted stock and other (6,725) (4,972) (19,151) Repurchase and retirement of shares — — (953) Shareholder dividend distributions (5,326) (5,266) (5,186) Net cash (used in) provided by financing activities (19,336) (24,584) 15,784 Net change in cash and cash equivalents (21,341) 92,603 (574) Cash and cash equivalents at beginning of year 103,238 10,635 11,209 Cash and cash equivalents at end of year $ 81,897 $ 103,238 $ 10,635 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule Of Equity Method Investments [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Total Loans and Leases | $ 8,655,865 | $ 7,348,612 | |||
Adoption of accounting standards update, adjustment to retained earnings | 902,666 | 811,033 | $ 715,133 | $ 567,850 | |
Retained Earnings [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Adoption of accounting standards update, adjustment to retained earnings | $ 642,817 | 572,497 | $ 400,893 | $ 235,724 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Adoption of accounting standards update, adjustment to retained earnings | 676 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Adoption of accounting standards update, adjustment to retained earnings | 676 | ||||
Restatement Adjustment | Specialty Lending | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Total Loans and Leases | (297,200) | ||||
Restatement Adjustment | Small Business Banking | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Total Loans and Leases | $ 297,200 | ||||
Unguaranteed Balance | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Financing receivable, allowance for credit loss | $ 1,000 | ||||
Maximum | Unguaranteed Balance | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Financing receivable, allowance for credit loss | $ 250 | ||||
Significant Influence | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Limited partnership board involvement ownership percentage | 5% | ||||
Significant Influence | Minimum | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Limited liability companies privately held ownership interest | 20% |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Use Of Estimates (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jul. 01, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Accounting Estimate [Line Items] | ||||||
Total Loans and Leases | $ 8,655,865 | $ 7,348,612 | ||||
Noninterest income | 111,733 | 237,992 | $ 160,200 | |||
Receivables Under The Fair Value Option Member | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Total Loans and Leases | 388,036 | $ 494,458 | ||||
Change in Accounting Method Accounted for as Change in Estimate | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Allowance for credit loss, period increase | $ 1,500 | |||||
Increase in reserve on unfunded commitments | $ 2,400 | |||||
Increase in servicing assets | $ 13,700 | $ 13,700 | ||||
Noninterest income | $ 15,000 | |||||
Change in Accounting Method Accounted for as Change in Estimate | Receivables Under The Fair Value Option Member | ||||||
Change in Accounting Estimate [Line Items] | ||||||
Total Loans and Leases | $ 1,300 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents and Certificates of Deposit with other Banks (Details) - Maximum $ in Thousands | Dec. 31, 2023 USD ($) |
Cash And Cash Equivalents [Line Items] | |
FDIC insurable amount | $ 250 |
Certificates of Deposit | |
Cash And Cash Equivalents [Line Items] | |
Investment interest rate | 4.60% |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Federal home loan bank stock | $ 6.8 | $ 4.1 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Loans and Leases (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |
Retention percentage of unguaranteed portion of loan participating interest. | 7.50% |
SBA Loan | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |
Percentage of principal balance required to be retained | 10% |
USDA loan | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |
Percentage of principal balance required to be retained | 5% |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Schedule of Loans Receivable Held-for-sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Balance at beginning of year | $ 554,610 | $ 1,116,519 | |
Originations | 877,083 | 1,042,061 | $ 1,364,168 |
Proceeds from sale | (1,362,803) | (1,067,758) | (1,092,222) |
Gain on sale of loans | 46,545 | 43,244 | 67,280 |
Principal collections, net of deferred fees and costs | (70,179) | (116,886) | |
Non-cash transfers, net | 341,781 | (462,570) | |
Balance at end of period | $ 387,037 | $ 554,610 | $ 1,116,519 |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2021 |
Schedule Of Equity Method Investments [Line Items] | |||
Allowance for off-balance sheet credit exposures | $ 4,800 | $ 1,500 | |
Unguaranteed Balance | |||
Schedule Of Equity Method Investments [Line Items] | |||
Financing receivable, allowance for credit loss | $ 1,000 | ||
Maximum | Unguaranteed Balance | |||
Schedule Of Equity Method Investments [Line Items] | |||
Financing receivable, allowance for credit loss | $ 250 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - Leases (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) term | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of additional terms | term | 2 | ||
Impairment expense | $ | $ 499 | $ 0 | $ 904 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 3 years | ||
Term of contract, operating lease | 10 years | ||
Minimum | Equipment Leased to Other Party | |||
Lessee, Lease, Description [Line Items] | |||
Useful life | 20 years | ||
Salvage value, percentage | 20% | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Term of contract | 7 years | ||
Term of contract, operating lease | 15 years | ||
Maximum | Equipment Leased to Other Party | |||
Lessee, Lease, Description [Line Items] | |||
Useful life | 25 years | ||
Salvage value, percentage | 50% |
Organization and Summary of _12
Organization and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Details) | Dec. 31, 2023 |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Useful life | 39 years |
Transportation | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Transportation | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Solar panels | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Solar panels | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Organization and Summary of _13
Organization and Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Term of warrant | 10 years |
Organization and Summary of _14
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Goodwill | $ 1,800,000 | $ 1,800,000 | |
Carrying amount of intangible assets | 1,700,000 | 1,900,000 | |
Accumulated amortization of intangible assets | $ 573,000 | 421,000 | |
Intangible assets subject to amortization, remaining amortization period (in years) | 15 years | ||
Impairment related charges | $ 0 | $ 0 | $ 0 |
Organization and Summary of _15
Organization and Summary of Significant Accounting Policies - Long-Lived Asset Reclassified to Held for Sale (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) asset | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Gain on disposal | $ (377) | $ (31) | $ 48 |
Premises and equipment, net | $ 257,881 | $ 263,290 | |
Air Transportation Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Number of long-lived assets reclassified to held-for-sale | asset | 2 | ||
Carrying amount of aircraft | $ 30,200 | ||
Number of long-lived assets held-for-sale | asset | 1 | ||
Premises and equipment, net | $ 16,000 | ||
Air Transportation Equipment | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Property, Plant and Equipment [Line Items] | |||
Number of long-lived assets disposed by sale | asset | 1 | ||
Gain on disposal | $ 4,400 | $ 114 |
Organization and Summary of _16
Organization and Summary of Significant Accounting Policies - Common Stock (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) shares | Jun. 11, 2014 class | |
Class Of Stock [Line Items] | ||
Number of class of common stock | class | 2 | |
Private Placement | Class A Common Stock | ||
Class Of Stock [Line Items] | ||
Non-voting common stock converted to voting common stock in private sale (in shares) | shares | 125,024 | |
Non-voting common stock converted to voting common stock in private sale | $ | $ 1.3 |
Organization and Summary of _17
Organization and Summary of Significant Accounting Policies - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic earnings per share: | |||
Net income | $ 73,898 | $ 176,208 | $ 166,995 |
Weighted-average basic shares outstanding (in shares) | 44,353,708 | 43,862,291 | 43,169,935 |
Basic earnings per share (in dollars per share) | $ 1.67 | $ 4.02 | $ 3.87 |
Diluted earnings per share: | |||
Net income, for diluted earnings per share | $ 73,898 | $ 176,208 | $ 166,995 |
Weighted-average basic shares outstanding (in shares) | 44,353,708 | 43,862,291 | 43,169,935 |
Add effect of dilutive stock options and restricted stock grants (in shares) | 741,171 | 1,044,019 | 1,901,369 |
Total weighted-average diluted shares outstanding (in shares) | 45,094,879 | 44,906,310 | 45,071,304 |
Diluted earnings per share (in dollars per share) | $ 1.64 | $ 3.92 | $ 3.71 |
Anti-dilutive stock options and restricted shares (in shares) | 1,233,230 | 1,413,738 | 37,401 |
Securities - Carrying Amount an
Securities - Carrying Amount and Fair Value of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 1,237,633 | $ 1,136,190 |
Unrealized Gains | 468 | 270 |
Unrealized Losses | 111,941 | 121,741 |
Fair Value | 1,126,160 | 1,014,719 |
U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 17,809 | 16,080 |
Unrealized Gains | 2 | 0 |
Unrealized Losses | 282 | 412 |
Fair Value | 17,529 | 15,668 |
Mortgage-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 1,216,624 | 1,116,387 |
Unrealized Gains | 466 | 270 |
Unrealized Losses | 111,498 | 121,083 |
Fair Value | 1,105,592 | 995,574 |
Municipal bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 3,200 | 3,223 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 161 | 246 |
Fair Value | $ 3,039 | 2,977 |
Other debt securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 500 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | $ 500 |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | |
Debt Securities, Available-for-Sale [Line Items] | |||
Other than temporary impairment losses | $ | $ 0 | ||
Unrealized gain (loss) on equity securities | $ | (1,500,000) | $ 1,900,000 | $ 44,000,000 |
Collateral Pledged | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Debt securities, available-for-sale, restricted | $ | $ 0 | $ 0 | |
Called Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Number of investment securities sold | 3 | ||
Proceeds from sale of investment securities | $ | $ 13,000,000 | ||
Sale of Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Number of investment securities sold | 4 | 20 | 12 |
Proceeds from sale of investment securities | $ | $ 7,000,000 | $ 36,500,000 | $ 33,100,000 |
Matured Securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Number of investment securities sold | 2 | 1 | |
Proceeds from sale of investment securities | $ | $ 7,500,000 | $ 5,000,000 | |
Mortgage-backed securities | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Number of securities in unrealized loss portions for longer than 12 months | 409 | 185 | |
Number of securities in unrealized loss positions for less than 12 months | 27 | 236 | |
U.S. government agencies | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Number of securities in unrealized loss portions for longer than 12 months | 5 | ||
Number of securities in unrealized loss positions for less than 12 months | 5 | ||
Municipal bonds | |||
Debt Securities, Available-for-Sale [Line Items] | |||
Number of securities in unrealized loss portions for longer than 12 months | 2 | 1 | |
Number of securities in unrealized loss positions for less than 12 months | 1 |
Securities - Debt Securities Av
Securities - Debt Securities Available-for-Sale in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | $ 138,823 | $ 532,191 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 3,431 | 29,713 |
Securities in unrealized loss position, 12 months or more, fair value | 904,795 | 457,065 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 108,510 | 92,028 |
Securities in unrealized loss position, total, fair value | 1,043,618 | 989,256 |
Securities in unrealized loss position, total, unrealized losses | 111,941 | 121,741 |
U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 0 | 15,668 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 0 | 412 |
Securities in unrealized loss position, 12 months or more, fair value | 15,057 | 0 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 282 | 0 |
Securities in unrealized loss position, total, fair value | 15,057 | 15,668 |
Securities in unrealized loss position, total, unrealized losses | 282 | 412 |
Mortgage-backed securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 138,823 | 513,639 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 3,431 | 29,060 |
Securities in unrealized loss position, 12 months or more, fair value | 886,699 | 456,972 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 108,067 | 92,023 |
Securities in unrealized loss position, total, fair value | 1,025,522 | 970,611 |
Securities in unrealized loss position, total, unrealized losses | 111,498 | 121,083 |
Municipal bonds | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 0 | 2,884 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 0 | 241 |
Securities in unrealized loss position, 12 months or more, fair value | 3,039 | 93 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 161 | 5 |
Securities in unrealized loss position, total, fair value | 3,039 | 2,977 |
Securities in unrealized loss position, total, unrealized losses | $ 161 | $ 246 |
Securities - Summary of Investm
Securities - Summary of Investment Securities by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | $ 1,237,633 | $ 1,136,190 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | 1,126,160 | 1,014,719 |
U.S. government agencies | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Within one year, amortized cost | 3,000 | |
One to five years, amortized cost | 12,430 | |
Five to ten years, amortized cost | 2,379 | |
Amortized Cost | 17,809 | 16,080 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Within one year, fair value | 2,976 | |
One to five years, fair value | 12,218 | |
Five to ten years, fair value | 2,335 | |
Fair Value | 17,529 | 15,668 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Within one year, amortized cost | 12,358 | |
One to five years, amortized cost | 179,740 | |
Five to ten years, amortized cost | 240,665 | |
After 10 years, amortized cost | 783,861 | |
Amortized Cost | 1,216,624 | 1,116,387 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Within one year, fair value | 12,319 | |
One to five years, fair value | 170,908 | |
Five to ten years, fair value | 216,013 | |
After 10 years, fair value | 706,352 | |
Fair Value | 1,105,592 | 995,574 |
Municipal bonds | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Five to ten years, amortized cost | 3,103 | |
After 10 years, amortized cost | 97 | |
Amortized Cost | 3,200 | 3,223 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Five to ten years, fair value | 2,954 | |
After 10 years, fair value | 85 | |
Fair Value | $ 3,039 | 2,977 |
Other debt securities | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | 500 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair Value | $ 500 |
Securities - Carrying and Owner
Securities - Carrying and Ownership Percentage of Each Equity Method Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 118,914 | $ 110,058 |
Apiture, Inc. | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 60,682 | $ 60,320 |
Equity method investment ownership percentage | 40.40% | 40.30% |
Canapi Ventures SBIC Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 18,190 | $ 19,246 |
Equity method investment ownership percentage | 2.90% | 2.90% |
Canapi Ventures Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 2,267 | $ 2,382 |
Equity method investment ownership percentage | 1.50% | 1.50% |
Canapi Ventures Fund II, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 7,232 | $ 7,412 |
Equity method investment ownership percentage | 1.60% | 1.60% |
Canapi Ventures SBIC Fund II, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 7,611 | $ 7,981 |
Equity method investment ownership percentage | 2.90% | 3.70% |
Other Investments In Fintech Private Companies | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 0 | $ 241 |
Equity method investment ownership percentage | 4.30% | |
Other | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 22,932 | $ 12,476 |
Equity method investment ownership percentage | Various | Various |
Securities - Carrying and Own_2
Securities - Carrying and Ownership Percentage of Each Equity Method Investment Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estrella Landing | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | $ 7,700 | |
Equity method investment ownership percentage | 99.90% | |
Green Sun, Sun Vest, HEP, And Heelstone | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment ownership percentage | 99% | |
Green Sun, Sun Vest and HEP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment ownership percentage | 99% | |
Cape Fear Collective | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment ownership percentage | 91% | 99% |
Cape Fear Collective 2 | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment ownership percentage | 32.30% | 32.30% |
OTR Fund I, LLC | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment ownership percentage | 11.50% | |
HEP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | $ 2,600 | |
Canapi Ventures SBIC Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | $ 5,000 | 5,500 |
Canapi Ventures Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | 559 | 617 |
Canapi Ventures Fund II, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | 6,300 | 6,900 |
Canapi Ventures SBIC Fund II, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | $ 7,100 | $ 7,500 |
Securities - Carrying Amount of
Securities - Carrying Amount of Company Investments in Non Marketable Equity Securities with No Readily Determinable Fair Value and Amounts Recognized in Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cumulative Adjustments Carrying value adjustments : | |||
Carrying value | $ 77,825 | $ 76,438 | $ 63,321 |
Carrying value adjustments: | |||
Cumulative adjustments, impairment | 0 | ||
Cumulative adjustments, upward changes for observable prices | 50,492 | ||
Cumulative adjustments, downward changes for observable prices | (1,610) | ||
Cumulative adjustments, net upward change | 48,882 | ||
Impairment | 0 | 0 | 0 |
Upward changes for observable prices | 0 | 2,022 | 30,197 |
Downward changes for observable prices | (1,524) | 0 | 0 |
Net upward change | $ (1,524) | $ 2,022 | $ 30,197 |
Securities - Carrying Amount _2
Securities - Carrying Amount of Company Investments in Non Marketable Equity Securities with No Readily Determinable Fair Value and Amounts Recognized in Earnings (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Equity security investments, committed amount | $ 2.3 | $ 3 | $ 2.8 | |
Realized cash gains for sale of investment | $ 13.9 |
Securities - Summary of Variabl
Securities - Summary of Variable Interest Entities Not Consolidated (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule Of Equity Method Investments [Line Items] | ||
Liability Recognized | $ 10,368,757 | $ 9,044,465 |
Variable Interest Entity, Not Primary Beneficiary | Solar tax credit investments | ||
Schedule Of Equity Method Investments [Line Items] | ||
Carrying Amount | 6,714 | 5,221 |
Maximum Exposure to Loss | 38,228 | 24,295 |
Liability Recognized | 0 | 2,641 |
Investment tax credit recapture | 31,500 | 19,100 |
Variable Interest Entity, Not Primary Beneficiary | Affordable housing | ||
Schedule Of Equity Method Investments [Line Items] | ||
Carrying Amount | 15,611 | 7,255 |
Maximum Exposure to Loss | 15,611 | 7,255 |
Liability Recognized | 7,715 | 0 |
LIHTC investment | 8,800 | |
Variable Interest Entity, Not Primary Beneficiary | Canapi Funds | ||
Schedule Of Equity Method Investments [Line Items] | ||
Carrying Amount | 35,300 | 37,021 |
Maximum Exposure to Loss | 35,300 | 37,021 |
Liability Recognized | 18,930 | 20,474 |
Variable Interest Entity, Not Primary Beneficiary | Non-marketable and other equity investments | ||
Schedule Of Equity Method Investments [Line Items] | ||
Carrying Amount | 8,840 | 8,509 |
Maximum Exposure to Loss | 8,840 | 8,509 |
Liability Recognized | $ 2,321 | $ 3,033 |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment and Credit Quality - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Notes And Loans Receivable [Line Items] | |||
CARES ACT of 2020 government guarantee percentage | 100% | ||
Loans greater than 90 days or more past due still accruing | $ 0 | $ 0 | |
Interest income recognized on nonaccrual loans and leases | 0 | 0 | |
Accrued interest receivable on loans | $ 63,500,000 | $ 46,500,000 | |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Commitments to lend | $ 1,200,000 | ||
Commercial Real Estate | Small Business Banking | Payment Deferral | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded investment | $ 50,000 |
Loans and Leases Held for Inv_4
Loans and Leases Held for Investment and Credit Quality - Summary of Total Loans and Leases Held for Investment and Aging Analysis of Portfolio Segments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | $ 8,655,865 | $ 7,348,612 |
Retained Loan Discount and Net Deferred Costs | (22,018) | (4,434) |
Total | 8,633,847 | 7,344,178 |
Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 8,267,829 | 6,854,154 |
Receivables Not Under the Fair Value Option | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 5,540,595 | 5,098,834 |
Receivables Not Under the Fair Value Option | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,702,656 | 1,165,126 |
Receivables Not Under the Fair Value Option | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,018,983 | 577,060 |
Receivables Not Under the Fair Value Option | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 5,595 | 13,134 |
Receivables Under The Fair Value Option Member | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 388,036 | 494,458 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 127,965 | 67,561 |
Current or Less than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 8,139,864 | 6,786,593 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 41,231 | 37,232 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 86,734 | 30,329 |
Guaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 3,033,694 | $ 2,771,263 |
Total Carried at Amortized Cost, Percentage | 35.90% | 39.50% |
Loans Accounted for Under the Fair Value Option, Percentage | 17.10% | 13.60% |
Total Loans and Leases, Percentage | 35% | 37.70% |
Guaranteed Balance | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 2,967,395 | $ 2,703,995 |
Guaranteed Balance | Receivables Under The Fair Value Option Member | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 66,299 | $ 67,268 |
Guaranteed Balance | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Percentage | 70.60% | 68.40% |
Guaranteed Balance | Total Past Due | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 90,290 | $ 46,225 |
Guaranteed Balance | Current or Less than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Percentage | 35.30% | 39.20% |
Guaranteed Balance | Current or Less than 30 Days Past Due | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 2,877,105 | $ 2,657,770 |
Guaranteed Balance | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Percentage | 70.80% | 54.30% |
Guaranteed Balance | 30-89 Days Past Due | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 29,183 | $ 20,199 |
Guaranteed Balance | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Percentage | 70.50% | 85.80% |
Guaranteed Balance | 90 Days or More Past Due | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 61,107 | $ 26,026 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 4,317,909 | 3,478,443 |
Commercial & Industrial | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,277,050 | 2,221,838 |
Commercial & Industrial | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,139,322 | 769,848 |
Commercial & Industrial | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 895,942 | 473,623 |
Commercial & Industrial | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 5,595 | 13,134 |
Commercial & Industrial | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 4,112,008 | 3,216,917 |
Commercial & Industrial | Receivables Not Under the Fair Value Option | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,125,163 | 2,025,982 |
Commercial & Industrial | Receivables Not Under the Fair Value Option | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,131,493 | 754,272 |
Commercial & Industrial | Receivables Not Under the Fair Value Option | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 849,757 | 423,529 |
Commercial & Industrial | Receivables Not Under the Fair Value Option | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 5,595 | 13,134 |
Commercial & Industrial | Receivables Under The Fair Value Option Member | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 205,901 | 261,526 |
Commercial & Industrial | Receivables Under The Fair Value Option Member | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 151,887 | 195,856 |
Commercial & Industrial | Receivables Under The Fair Value Option Member | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 7,829 | 15,576 |
Commercial & Industrial | Receivables Under The Fair Value Option Member | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 46,185 | 50,094 |
Commercial & Industrial | Receivables Under The Fair Value Option Member | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial & Industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 56,786 | 41,556 |
Commercial & Industrial | Total Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 49,936 | 38,474 |
Commercial & Industrial | Total Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial & Industrial | Total Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 6,850 | 3,082 |
Commercial & Industrial | Total Past Due | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial & Industrial | Current or Less than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 4,055,222 | 3,175,361 |
Commercial & Industrial | Current or Less than 30 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,075,227 | 1,987,508 |
Commercial & Industrial | Current or Less than 30 Days Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,131,493 | 754,272 |
Commercial & Industrial | Current or Less than 30 Days Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 842,907 | 420,447 |
Commercial & Industrial | Current or Less than 30 Days Past Due | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 5,595 | 13,134 |
Commercial & Industrial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 19,376 | 21,987 |
Commercial & Industrial | 30-89 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 16,570 | 21,987 |
Commercial & Industrial | 30-89 Days Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial & Industrial | 30-89 Days Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,806 | 0 |
Commercial & Industrial | 30-89 Days Past Due | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial & Industrial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 37,410 | 19,569 |
Commercial & Industrial | 90 Days or More Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 33,366 | 16,487 |
Commercial & Industrial | 90 Days or More Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial & Industrial | 90 Days or More Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 4,044 | 3,082 |
Commercial & Industrial | 90 Days or More Past Due | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 470,054 | 590,565 |
Construction & Development | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 415,094 | 472,743 |
Construction & Development | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 47,419 | 104,069 |
Construction & Development | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 7,541 | 13,753 |
Construction & Development | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 470,054 | 590,565 |
Construction & Development | Receivables Not Under the Fair Value Option | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 415,094 | 472,743 |
Construction & Development | Receivables Not Under the Fair Value Option | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 47,419 | 104,069 |
Construction & Development | Receivables Not Under the Fair Value Option | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 7,541 | 13,753 |
Construction & Development | Receivables Under The Fair Value Option Member | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | Receivables Under The Fair Value Option Member | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | Receivables Under The Fair Value Option Member | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | Receivables Under The Fair Value Option Member | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,745 | 1,500 |
Construction & Development | Total Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,745 | 1,500 |
Construction & Development | Total Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | Total Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | Current or Less than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 468,309 | 589,065 |
Construction & Development | Current or Less than 30 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 413,349 | 471,243 |
Construction & Development | Current or Less than 30 Days Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 47,419 | 104,069 |
Construction & Development | Current or Less than 30 Days Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 7,541 | 13,753 |
Construction & Development | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,745 | 1,500 |
Construction & Development | 30-89 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,745 | 1,500 |
Construction & Development | 30-89 Days Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | 30-89 Days Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | 90 Days or More Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | 90 Days or More Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Construction & Development | 90 Days or More Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,296,114 | 2,804,846 |
Commercial Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,592,934 | 2,335,924 |
Commercial Real Estate | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 523,744 | 307,021 |
Commercial Real Estate | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 179,436 | 161,901 |
Commercial Real Estate | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,151,005 | 2,614,078 |
Commercial Real Estate | Receivables Not Under the Fair Value Option | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,465,576 | 2,167,515 |
Commercial Real Estate | Receivables Not Under the Fair Value Option | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 523,744 | 306,785 |
Commercial Real Estate | Receivables Not Under the Fair Value Option | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 161,685 | 139,778 |
Commercial Real Estate | Receivables Under The Fair Value Option Member | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 145,109 | 190,768 |
Commercial Real Estate | Receivables Under The Fair Value Option Member | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 127,358 | 168,409 |
Commercial Real Estate | Receivables Under The Fair Value Option Member | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 236 |
Commercial Real Estate | Receivables Under The Fair Value Option Member | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 17,751 | 22,123 |
Commercial Real Estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 66,003 | 20,925 |
Commercial Real Estate | Total Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 50,899 | 17,853 |
Commercial Real Estate | Total Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 12,032 | 0 |
Commercial Real Estate | Total Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,072 | 3,072 |
Commercial Real Estate | Current or Less than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,085,002 | 2,593,153 |
Commercial Real Estate | Current or Less than 30 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 2,414,677 | 2,149,662 |
Commercial Real Estate | Current or Less than 30 Days Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 511,712 | 306,785 |
Commercial Real Estate | Current or Less than 30 Days Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 158,613 | 136,706 |
Commercial Real Estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 18,589 | 12,082 |
Commercial Real Estate | 30-89 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 18,589 | 12,082 |
Commercial Real Estate | 30-89 Days Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial Real Estate | 30-89 Days Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 0 | 0 |
Commercial Real Estate | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 47,414 | 8,843 |
Commercial Real Estate | 90 Days or More Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 32,310 | 5,771 |
Commercial Real Estate | 90 Days or More Past Due | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 12,032 | 0 |
Commercial Real Estate | 90 Days or More Past Due | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,072 | 3,072 |
Commercial Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 571,788 | 474,758 |
Commercial Land | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 571,788 | 474,758 |
Commercial Land | Receivables Not Under the Fair Value Option | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 534,762 | 432,594 |
Commercial Land | Receivables Not Under the Fair Value Option | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 534,762 | 432,594 |
Commercial Land | Receivables Under The Fair Value Option Member | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 37,026 | 42,164 |
Commercial Land | Receivables Under The Fair Value Option Member | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 37,026 | 42,164 |
Commercial Land | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,431 | 3,580 |
Commercial Land | Total Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 3,431 | 3,580 |
Commercial Land | Current or Less than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 531,331 | 429,014 |
Commercial Land | Current or Less than 30 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 531,331 | 429,014 |
Commercial Land | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,521 | 1,663 |
Commercial Land | 30-89 Days Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,521 | 1,663 |
Commercial Land | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | 1,910 | 1,917 |
Commercial Land | 90 Days or More Past Due | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans and Leases | $ 1,910 | $ 1,917 |
Loans and Leases Held for Inv_5
Loans and Leases Held for Investment and Credit Quality - Summary of Asset Quality Indicators by Portfolio Class and Origination Year (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total loans held for investment | |||
Total | $ 8,655,865 | $ 7,348,612 | |
Year-To-Date Gross Charge-offs | |||
Charge offs | 23,927 | 10,377 | $ 5,917 |
Receivables Not Under the Fair Value Option | |||
Total loans held for investment | |||
Current fiscal year | 2,036,254 | 2,290,712 | |
Fiscal year before current fiscal year | 2,193,204 | 2,015,005 | |
Two years before current fiscal year | 1,853,492 | 1,073,386 | |
Three years before current fiscal year | 860,080 | 595,376 | |
Four years before current fiscal year | 500,089 | 305,809 | |
Prior | 417,584 | 284,984 | |
Revolving Loans Amortized Cost Basis | 326,786 | 254,078 | |
Revolving Loans Converted to Term | 80,340 | 34,804 | |
Total | 8,267,829 | 6,854,154 | |
Year-To-Date Gross Charge-offs | |||
Current fiscal year | 0 | ||
Fiscal year before current fiscal year | 5,621 | ||
Two years before current fiscal year | 6,435 | ||
Three years before current fiscal year | 1,058 | ||
Four years before current fiscal year | 1,225 | ||
Five years before current fiscal year | 525 | ||
Revolving Loans Amortized Cost Basis | 9,063 | ||
Revolving Loans Converted to Term | 0 | ||
Charge offs | 23,927 | ||
Receivables Not Under the Fair Value Option | Small Business Banking | |||
Total loans held for investment | |||
Current fiscal year | 1,000,379 | 1,517,057 | |
Fiscal year before current fiscal year | 1,575,224 | 1,521,418 | |
Two years before current fiscal year | 1,345,415 | 921,182 | |
Three years before current fiscal year | 733,927 | 514,609 | |
Four years before current fiscal year | 423,901 | 268,982 | |
Prior | 375,537 | 259,360 | |
Revolving Loans Amortized Cost Basis | 73,758 | 93,242 | |
Revolving Loans Converted to Term | 12,454 | 2,984 | |
Total | 5,540,595 | 5,098,834 | |
Year-To-Date Gross Charge-offs | |||
Current fiscal year | 0 | ||
Fiscal year before current fiscal year | 5,621 | ||
Two years before current fiscal year | 6,435 | ||
Three years before current fiscal year | 1,058 | ||
Four years before current fiscal year | 1,225 | ||
Five years before current fiscal year | 525 | ||
Revolving Loans Amortized Cost Basis | 1,097 | ||
Revolving Loans Converted to Term | 0 | ||
Charge offs | 15,961 | ||
Receivables Not Under the Fair Value Option | Specialty Lending | |||
Total loans held for investment | |||
Current fiscal year | 649,454 | 570,293 | |
Fiscal year before current fiscal year | 390,647 | 301,820 | |
Two years before current fiscal year | 273,655 | 89,802 | |
Three years before current fiscal year | 64,366 | 22,601 | |
Four years before current fiscal year | 18,326 | 268 | |
Prior | 112 | 788 | |
Revolving Loans Amortized Cost Basis | 238,210 | 148,085 | |
Revolving Loans Converted to Term | 67,886 | 31,469 | |
Total | 1,702,656 | 1,165,126 | |
Year-To-Date Gross Charge-offs | |||
Current fiscal year | 0 | ||
Fiscal year before current fiscal year | 0 | ||
Two years before current fiscal year | 0 | ||
Three years before current fiscal year | 0 | ||
Four years before current fiscal year | 0 | ||
Five years before current fiscal year | 0 | ||
Revolving Loans Amortized Cost Basis | 7,966 | ||
Revolving Loans Converted to Term | 0 | ||
Charge offs | 7,966 | ||
Receivables Not Under the Fair Value Option | Energy & Infrastructure | |||
Total loans held for investment | |||
Current fiscal year | 386,421 | 203,362 | |
Fiscal year before current fiscal year | 227,333 | 184,346 | |
Two years before current fiscal year | 231,591 | 56,689 | |
Three years before current fiscal year | 59,023 | 58,166 | |
Four years before current fiscal year | 57,862 | 36,559 | |
Prior | 41,935 | 24,836 | |
Revolving Loans Amortized Cost Basis | 14,818 | 12,751 | |
Revolving Loans Converted to Term | 0 | 351 | |
Total | 1,018,983 | 577,060 | |
Receivables Not Under the Fair Value Option | Paycheck Protection Program | |||
Total loans held for investment | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 7,421 | |
Two years before current fiscal year | 2,831 | 5,713 | |
Three years before current fiscal year | 2,764 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 5,595 | 13,134 | |
Risk Grades 1 - 4 | Receivables Not Under the Fair Value Option | Small Business Banking | |||
Total loans held for investment | |||
Current fiscal year | 990,349 | 1,499,309 | |
Fiscal year before current fiscal year | 1,470,824 | 1,490,346 | |
Two years before current fiscal year | 1,255,664 | 857,380 | |
Three years before current fiscal year | 660,926 | 438,907 | |
Four years before current fiscal year | 363,377 | 224,199 | |
Prior | 296,132 | 204,933 | |
Revolving Loans Amortized Cost Basis | 63,963 | 75,005 | |
Revolving Loans Converted to Term | 11,047 | 1,773 | |
Total | 5,112,282 | 4,791,852 | |
Risk Grades 1 - 4 | Receivables Not Under the Fair Value Option | Specialty Lending | |||
Total loans held for investment | |||
Current fiscal year | 640,596 | 562,952 | |
Fiscal year before current fiscal year | 337,880 | 266,165 | |
Two years before current fiscal year | 226,170 | 82,812 | |
Three years before current fiscal year | 21,286 | 13,343 | |
Four years before current fiscal year | 9,103 | 268 | |
Prior | 112 | 788 | |
Revolving Loans Amortized Cost Basis | 210,460 | 143,512 | |
Revolving Loans Converted to Term | 58,441 | 31,469 | |
Total | 1,504,048 | 1,101,309 | |
Risk Grades 1 - 4 | Receivables Not Under the Fair Value Option | Energy & Infrastructure | |||
Total loans held for investment | |||
Current fiscal year | 386,421 | 199,338 | |
Fiscal year before current fiscal year | 223,309 | 176,855 | |
Two years before current fiscal year | 120,917 | 39,600 | |
Three years before current fiscal year | 41,919 | 51,190 | |
Four years before current fiscal year | 50,035 | 23,374 | |
Prior | 23,308 | 19,694 | |
Revolving Loans Amortized Cost Basis | 14,818 | 12,751 | |
Revolving Loans Converted to Term | 0 | 351 | |
Total | 860,727 | 523,153 | |
Risk Grades 1 - 4 | Receivables Not Under the Fair Value Option | Paycheck Protection Program | |||
Total loans held for investment | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 7,421 | |
Two years before current fiscal year | 2,831 | 5,713 | |
Three years before current fiscal year | 2,764 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 5,595 | 13,134 | |
Risk Grade 5 | Receivables Not Under the Fair Value Option | Small Business Banking | |||
Total loans held for investment | |||
Current fiscal year | 7,744 | 15,942 | |
Fiscal year before current fiscal year | 72,913 | 22,295 | |
Two years before current fiscal year | 60,115 | 45,541 | |
Three years before current fiscal year | 37,390 | 46,655 | |
Four years before current fiscal year | 42,095 | 30,523 | |
Prior | 50,705 | 27,212 | |
Revolving Loans Amortized Cost Basis | 7,174 | 15,549 | |
Revolving Loans Converted to Term | 1,407 | 452 | |
Total | 279,543 | 204,169 | |
Risk Grade 5 | Receivables Not Under the Fair Value Option | Specialty Lending | |||
Total loans held for investment | |||
Current fiscal year | 8,858 | 7,341 | |
Fiscal year before current fiscal year | 52,767 | 28,722 | |
Two years before current fiscal year | 35,453 | 6,990 | |
Three years before current fiscal year | 43,080 | 9,258 | |
Four years before current fiscal year | 9,223 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 20,547 | 4,280 | |
Revolving Loans Converted to Term | 5,417 | 0 | |
Total | 175,345 | 56,591 | |
Risk Grade 5 | Receivables Not Under the Fair Value Option | Energy & Infrastructure | |||
Total loans held for investment | |||
Current fiscal year | 0 | 4,024 | |
Fiscal year before current fiscal year | 0 | 4,409 | |
Two years before current fiscal year | 104,371 | 500 | |
Three years before current fiscal year | 13,485 | 6,976 | |
Four years before current fiscal year | 7,827 | 4,706 | |
Prior | 18,627 | 5,142 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 144,310 | 25,757 | |
Risk Grades 6 - 8 | Receivables Not Under the Fair Value Option | Small Business Banking | |||
Total loans held for investment | |||
Current fiscal year | 2,286 | 1,806 | |
Fiscal year before current fiscal year | 31,487 | 8,777 | |
Two years before current fiscal year | 29,636 | 18,261 | |
Three years before current fiscal year | 35,611 | 29,047 | |
Four years before current fiscal year | 18,429 | 14,260 | |
Prior | 28,700 | 27,215 | |
Revolving Loans Amortized Cost Basis | 2,621 | 2,688 | |
Revolving Loans Converted to Term | 0 | 759 | |
Total | 148,770 | 102,813 | |
Risk Grades 6 - 8 | Receivables Not Under the Fair Value Option | Specialty Lending | |||
Total loans held for investment | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 0 | 6,933 | |
Two years before current fiscal year | 12,032 | 0 | |
Three years before current fiscal year | 0 | 0 | |
Four years before current fiscal year | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 7,203 | 293 | |
Revolving Loans Converted to Term | 4,028 | 0 | |
Total | 23,263 | 7,226 | |
Risk Grades 6 - 8 | Receivables Not Under the Fair Value Option | Energy & Infrastructure | |||
Total loans held for investment | |||
Current fiscal year | 0 | 0 | |
Fiscal year before current fiscal year | 4,024 | 3,082 | |
Two years before current fiscal year | 6,303 | 16,589 | |
Three years before current fiscal year | 3,619 | 0 | |
Four years before current fiscal year | 0 | 8,479 | |
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | $ 13,946 | $ 28,150 |
Loans and Leases Held for Inv_6
Loans and Leases Held for Investment and Credit Quality - Summary of Asset Quality Indicators by Portfolio Class and Origination Year (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 8,655,865 | $ 7,348,612 |
Receivables Under The Fair Value Option Member | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans and Leases | $ 388,036 | $ 494,458 |
Loans and Leases Held for Inv_7
Loans and Leases Held for Investment and Credit Quality - Summary of Guaranteed and Unguaranteed Loan and Lease Balance by Asset Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 8,267,829 | $ 6,854,154 |
Guaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | 2,967,395 | 2,703,995 |
Unguaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 5,300,434 | $ 4,150,159 |
Percentage Guaranteed | ||
Financing Receivable Recorded Investment [Line Items] | ||
% Guaranteed | 35.90% | 39.50% |
Risk Grades 1 - 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 7,482,652 | $ 6,429,448 |
Risk Grades 1 - 4 | Guaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | 2,622,558 | 2,508,229 |
Risk Grades 1 - 4 | Unguaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 4,860,094 | $ 3,921,219 |
Risk Grades 1 - 4 | Percentage Guaranteed | ||
Financing Receivable Recorded Investment [Line Items] | ||
% Guaranteed | 35% | 39% |
Risk Grade 5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 599,198 | $ 286,517 |
Risk Grade 5 | Guaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | 234,845 | 115,573 |
Risk Grade 5 | Unguaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 364,353 | $ 170,944 |
Risk Grade 5 | Percentage Guaranteed | ||
Financing Receivable Recorded Investment [Line Items] | ||
% Guaranteed | 39.20% | 40.30% |
Risk Grades 6 - 8 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 185,979 | $ 138,189 |
Risk Grades 6 - 8 | Guaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | 109,992 | 80,193 |
Risk Grades 6 - 8 | Unguaranteed Balance | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total carried at amortized cost | $ 75,987 | $ 57,996 |
Risk Grades 6 - 8 | Percentage Guaranteed | ||
Financing Receivable Recorded Investment [Line Items] | ||
% Guaranteed | 59.10% | 58% |
Loans and Leases Held for Inv_8
Loans and Leases Held for Investment and Credit Quality - Nonaccrual Loans and Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | $ 134,963 | $ 73,392 |
Guaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 95,678 | 54,608 |
Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 39,285 | 18,784 |
Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 23,378 | 4,502 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 54,408 | 29,050 |
Commercial & Industrial | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 47,558 | 25,968 |
Commercial & Industrial | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 6,850 | 3,082 |
Commercial & Industrial | Guaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 41,812 | 22,480 |
Commercial & Industrial | Guaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 39,018 | 19,686 |
Commercial & Industrial | Guaranteed Balance | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 2,794 | 2,794 |
Commercial & Industrial | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 12,596 | 6,570 |
Commercial & Industrial | Unguaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 8,540 | 6,282 |
Commercial & Industrial | Unguaranteed Balance | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 4,056 | 288 |
Commercial & Industrial | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 2,953 | 695 |
Commercial & Industrial | Unguaranteed Exposure with No ACL | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 407 | 407 |
Commercial & Industrial | Unguaranteed Exposure with No ACL | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 2,546 | 288 |
Construction & Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 1,745 | |
Construction & Development | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 1,745 | |
Construction & Development | Guaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 1,309 | |
Construction & Development | Guaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 1,309 | |
Construction & Development | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 436 | |
Construction & Development | Unguaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 436 | |
Construction & Development | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 0 | |
Construction & Development | Unguaranteed Exposure with No ACL | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 0 | |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 72,244 | 37,592 |
Commercial Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 57,140 | 34,520 |
Commercial Real Estate | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 3,072 | 3,072 |
Commercial Real Estate | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 12,032 | |
Commercial Real Estate | Guaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 47,225 | 26,629 |
Commercial Real Estate | Guaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 44,426 | 23,830 |
Commercial Real Estate | Guaranteed Balance | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 2,799 | 2,799 |
Commercial Real Estate | Guaranteed Balance | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 0 | |
Commercial Real Estate | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 25,019 | 10,963 |
Commercial Real Estate | Unguaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 12,714 | 10,690 |
Commercial Real Estate | Unguaranteed Balance | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 273 | 273 |
Commercial Real Estate | Unguaranteed Balance | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 12,032 | |
Commercial Real Estate | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 20,231 | 3,611 |
Commercial Real Estate | Unguaranteed Exposure with No ACL | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 8,199 | 3,611 |
Commercial Real Estate | Unguaranteed Exposure with No ACL | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 0 | 0 |
Commercial Real Estate | Unguaranteed Exposure with No ACL | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 12,032 | |
Commercial Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 6,566 | 6,750 |
Commercial Land | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 6,566 | 6,750 |
Commercial Land | Guaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 5,332 | 5,499 |
Commercial Land | Guaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 5,332 | 5,499 |
Commercial Land | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 1,234 | 1,251 |
Commercial Land | Unguaranteed Balance | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loan and lease balance | 1,234 | 1,251 |
Commercial Land | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 194 | 196 |
Commercial Land | Unguaranteed Exposure with No ACL | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | $ 194 | $ 196 |
Loans and Leases Held for Inv_9
Loans and Leases Held for Investment and Credit Quality - Accrued Interest Reversed (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrued interest reversed | $ 3,309 | $ 1,579 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrued interest reversed | 2,212 | 619 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrued interest reversed | 1,041 | 833 |
Commercial Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrued interest reversed | 0 | 127 |
Construction & Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accrued interest reversed | $ 56 | $ 0 |
Loans and Leases Held for In_10
Loans and Leases Held for Investment and Credit Quality - Amortized Cost Basis of Collateral-Dependent Loans and Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | $ 8,267,829 | $ 6,854,154 |
Collateral Dependent Loans, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 25,683 | 36,137 |
Collateral Dependent Loans, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 10,159 | 371 |
Collateral Dependent Loans, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Unguaranteed Portion, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 6,919 | 20,639 |
Unguaranteed Portion, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 5,485 | 371 |
Unguaranteed Portion, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Unguaranteed Portion | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 277 | 443 |
Commercial & Industrial | Collateral Dependent Loans, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 2,737 | 19,108 |
Commercial & Industrial | Collateral Dependent Loans, Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 2,737 | 2,730 |
Commercial & Industrial | Collateral Dependent Loans, Real Estate | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | |
Commercial & Industrial | Collateral Dependent Loans, Real Estate | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 16,378 |
Commercial & Industrial | Collateral Dependent Loans, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 10,159 | 371 |
Commercial & Industrial | Collateral Dependent Loans, Business Assets | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 2,426 | 371 |
Commercial & Industrial | Collateral Dependent Loans, Business Assets | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 4,711 | |
Commercial & Industrial | Collateral Dependent Loans, Business Assets | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 3,022 | 0 |
Commercial & Industrial | Collateral Dependent Loans, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial & Industrial | Collateral Dependent Loans, Other | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial & Industrial | Collateral Dependent Loans, Other | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | |
Commercial & Industrial | Collateral Dependent Loans, Other | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial & Industrial | Unguaranteed Portion, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 421 | 13,997 |
Commercial & Industrial | Unguaranteed Portion, Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 421 | 414 |
Commercial & Industrial | Unguaranteed Portion, Real Estate | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | |
Commercial & Industrial | Unguaranteed Portion, Real Estate | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 13,583 |
Commercial & Industrial | Unguaranteed Portion, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 5,485 | 371 |
Commercial & Industrial | Unguaranteed Portion, Business Assets | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 547 | 371 |
Commercial & Industrial | Unguaranteed Portion, Business Assets | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 4,711 | |
Commercial & Industrial | Unguaranteed Portion, Business Assets | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 227 | 0 |
Commercial & Industrial | Unguaranteed Portion, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial & Industrial | Unguaranteed Portion, Other | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial & Industrial | Unguaranteed Portion, Other | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | |
Commercial & Industrial | Unguaranteed Portion, Other | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial & Industrial | Unguaranteed Portion | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 277 | 291 |
Commercial & Industrial | Unguaranteed Portion | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 277 | 291 |
Commercial & Industrial | Unguaranteed Portion | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 0 | |
Commercial & Industrial | Unguaranteed Portion | Energy & Infrastructure | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 0 | 0 |
Commercial Real Estate | Collateral Dependent Loans, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 21,211 | 15,286 |
Commercial Real Estate | Collateral Dependent Loans, Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 21,211 | 15,286 |
Commercial Real Estate | Collateral Dependent Loans, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Collateral Dependent Loans, Business Assets | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Collateral Dependent Loans, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Collateral Dependent Loans, Other | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Unguaranteed Portion, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 6,298 | 6,440 |
Commercial Real Estate | Unguaranteed Portion, Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 6,298 | 6,440 |
Commercial Real Estate | Unguaranteed Portion, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Unguaranteed Portion, Business Assets | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Unguaranteed Portion, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Unguaranteed Portion, Other | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Real Estate | Unguaranteed Portion | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 0 | 152 |
Commercial Real Estate | Unguaranteed Portion | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 0 | 152 |
Commercial Land | Collateral Dependent Loans, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 1,735 | 1,743 |
Commercial Land | Collateral Dependent Loans, Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 1,735 | 1,743 |
Commercial Land | Collateral Dependent Loans, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Collateral Dependent Loans, Business Assets | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Collateral Dependent Loans, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Collateral Dependent Loans, Other | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Unguaranteed Portion, Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 200 | 202 |
Commercial Land | Unguaranteed Portion, Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 200 | 202 |
Commercial Land | Unguaranteed Portion, Business Assets | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Unguaranteed Portion, Business Assets | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Unguaranteed Portion, Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Unguaranteed Portion, Other | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 0 | 0 |
Commercial Land | Unguaranteed Portion | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | 0 | 0 |
Commercial Land | Unguaranteed Portion | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, allowance for credit loss | $ 0 | $ 0 |
Loans and Leases Held for In_11
Loans and Leases Held for Investment and Credit Quality - Activity in the Allowance for Credit Losses ("ACL") by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 96,566 | $ 63,584 | $ 52,306 |
Charge offs | (23,927) | (10,377) | (5,917) |
Recoveries | 2,554 | 2,416 | 1,985 |
Provision | 51,323 | 40,943 | 15,210 |
Ending Balance | 125,840 | 96,566 | 63,584 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (676) | ||
Ending Balance | (676) | ||
Commercial & Industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 64,995 | 37,770 | 26,941 |
Charge offs | (22,510) | (8,262) | (2,912) |
Recoveries | 839 | 1,039 | 172 |
Provision | 44,282 | 34,448 | 13,569 |
Ending Balance | 87,581 | 64,995 | 37,770 |
Commercial & Industrial | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (25) | ||
Ending Balance | (25) | ||
Construction & Development | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 5,101 | 3,435 | 5,663 |
Charge offs | 0 | 0 | (262) |
Recoveries | 0 | 3 | 0 |
Provision | (218) | 1,663 | (1,966) |
Ending Balance | 4,717 | 5,101 | 3,435 |
Construction & Development | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (166) | ||
Ending Balance | (166) | ||
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 22,901 | 19,068 | 18,148 |
Charge offs | (1,417) | (1,463) | (2,731) |
Recoveries | 1,715 | 1,363 | 1,813 |
Provision | 5,748 | 3,933 | 1,838 |
Ending Balance | 28,864 | 22,901 | 19,068 |
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | (83) | ||
Ending Balance | (83) | ||
Commercial Land | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | 3,569 | 3,311 | 1,554 |
Charge offs | 0 | (652) | (12) |
Recoveries | 0 | 11 | 0 |
Provision | 1,511 | 899 | 1,769 |
Ending Balance | 4,678 | 3,569 | $ 3,311 |
Commercial Land | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ (402) | ||
Ending Balance | $ (402) |
Loans and Leases Held for In_12
Loans and Leases Held for Investment and Credit Quality - Loan Modifications for Borrowers Experiencing Financial Difficulty (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable Modifications [Line Items] | |
Percentage of total class of financing receivable | 2% |
Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Percentage of total class of financing receivable | 0.30% |
Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Percentage of total class of financing receivable | 0.30% |
Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Percentage of total class of financing receivable | 1.40% |
Payment Deferral [Member] | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | $ 10,090 |
Payment Deferral [Member] | Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 10,090 |
Payment Deferral [Member] | Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 0 |
Payment Deferral [Member] | Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 0 |
Term Extension | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 19,320 |
Term Extension | Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 5,127 |
Term Extension | Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 708 |
Term Extension | Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 13,485 |
Interest Rate Reduction | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 3,330 |
Interest Rate Reduction | Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 3,330 |
Interest Rate Reduction | Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 0 |
Interest Rate Reduction | Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 0 |
Combination - Term Extension & Payment Delay | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 4,494 |
Combination - Term Extension & Payment Delay | Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 361 |
Combination - Term Extension & Payment Delay | Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | 4,133 |
Combination - Term Extension & Payment Delay | Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Amortized cost basis of loans modified during period | $ 0 |
Loans and Leases Held for In_13
Loans and Leases Held for Investment and Credit Quality - Adoption of ASU 2022-02 (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Financing Receivable Modifications [Line Items] | |
Total | $ 0 |
Current | |
Financing Receivable Modifications [Line Items] | |
Total | 37,234 |
30-89 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
90 Days or More Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Small Business Banking | Current | |
Financing Receivable Modifications [Line Items] | |
Total | 18,908 |
Small Business Banking | 30-89 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Small Business Banking | 90 Days or More Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Specialty Lending | Current | |
Financing Receivable Modifications [Line Items] | |
Total | 4,841 |
Specialty Lending | 30-89 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Specialty Lending | 90 Days or More Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Energy & Infrastructure | Current | |
Financing Receivable Modifications [Line Items] | |
Total | 13,485 |
Energy & Infrastructure | 30-89 Days Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | 0 |
Energy & Infrastructure | 90 Days or More Past Due | |
Financing Receivable Modifications [Line Items] | |
Total | $ 0 |
Loans and Leases Held for In_14
Loans and Leases Held for Investment and Credit Quality - Financial Effect of Loan Modifications (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Small Business Banking | |
Financing Receivable Modifications [Line Items] | |
Weighted Average Interest Rate Reduction | 1.41% |
Weighted Average Term Extension (in Months) | 67 months |
Specialty Lending | |
Financing Receivable Modifications [Line Items] | |
Weighted Average Interest Rate Reduction | 0% |
Weighted Average Term Extension (in Months) | 67 months |
Energy & Infrastructure | |
Financing Receivable Modifications [Line Items] | |
Weighted Average Interest Rate Reduction | 0% |
Weighted Average Term Extension (in Months) | 15 months |
Loans and Leases Held for In_15
Loans and Leases Held for Investment and Credit Quality - Schedule of Loans Modified As Troubled Debt Restructurings ("TDRs") (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) securityLoan | Dec. 31, 2021 USD ($) securityLoan | |
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 18,000 | 10 |
Recorded investment at period end | $ | $ 40,346 | $ 16,330 |
Number of TDRs with subsequent default | securityLoan | 1 | |
Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 3,677 | $ 0 |
Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 9,000 | 8 |
Recorded investment at period end | $ | $ 13,775 | $ 12,710 |
Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 5,000 | 1 |
Recorded investment at period end | $ | $ 19,323 | $ 496 |
Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 3,000 | 1 |
Recorded investment at period end | $ | $ 3,571 | $ 3,124 |
Commercial & Industrial | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 13,000 | 4 |
Recorded investment at period end | $ | $ 28,427 | $ 6,593 |
Number of TDRs with subsequent default | securityLoan | 4 | |
Recorded investment | $ | $ 1,258 | |
Commercial & Industrial | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | 0 |
Recorded investment at period end | $ | $ 0 | $ 0 |
Number of TDRs with subsequent default | securityLoan | 0 | |
Recorded investment | $ | $ 0 | |
Commercial & Industrial | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 8,000 | 3 |
Recorded investment at period end | $ | $ 12,978 | $ 6,097 |
Number of TDRs with subsequent default | securityLoan | 2 | |
Recorded investment | $ | $ 940 | |
Commercial & Industrial | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 4,000 | 1 |
Recorded investment at period end | $ | $ 14,959 | $ 496 |
Number of TDRs with subsequent default | securityLoan | 2 | |
Recorded investment | $ | $ 318 | |
Commercial & Industrial | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 490 | $ 0 |
Number of TDRs with subsequent default | securityLoan | 0 | |
Recorded investment | $ | $ 0 | |
Commercial & Industrial | Small Business Banking | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 11,000 | 4 |
Recorded investment at period end | $ | $ 10,727 | $ 6,593 |
Number of TDRs with subsequent default | securityLoan | 4 | |
Recorded investment | $ | $ 1,258 | |
Commercial & Industrial | Small Business Banking | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | 0 |
Recorded investment at period end | $ | $ 0 | $ 0 |
Number of TDRs with subsequent default | securityLoan | 0 | |
Recorded investment | $ | $ 0 | |
Commercial & Industrial | Small Business Banking | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 7,000 | 3 |
Recorded investment at period end | $ | $ 8,795 | $ 6,097 |
Number of TDRs with subsequent default | securityLoan | 2 | |
Recorded investment | $ | $ 940 | |
Commercial & Industrial | Small Business Banking | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 3,000 | 1 |
Recorded investment at period end | $ | $ 1,442 | $ 496 |
Number of TDRs with subsequent default | securityLoan | 2 | |
Recorded investment | $ | $ 318 | |
Commercial & Industrial | Small Business Banking | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 490 | $ 0 |
Number of TDRs with subsequent default | securityLoan | 0 | |
Recorded investment | $ | $ 0 | |
Commercial & Industrial | Small Business Banking | Extended Amortization and Rate Concession | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1 | |
Recorded investment at period end | $ | $ 490 | |
Commercial & Industrial | Specialty Lending | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | |
Recorded investment at period end | $ | $ 4,183 | |
Commercial & Industrial | Specialty Lending | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Commercial & Industrial | Specialty Lending | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | |
Recorded investment at period end | $ | $ 4,183 | |
Commercial & Industrial | Specialty Lending | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Commercial & Industrial | Specialty Lending | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Commercial & Industrial | Energy & Infrastructure | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | |
Recorded investment at period end | $ | $ 13,517 | |
Commercial & Industrial | Energy & Infrastructure | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Commercial & Industrial | Energy & Infrastructure | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Commercial & Industrial | Energy & Infrastructure | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | |
Recorded investment at period end | $ | $ 13,517 | |
Commercial & Industrial | Energy & Infrastructure | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | ||
Recorded investment at period end | $ | ||
Commercial Real Estate | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 3,000 | 6 |
Recorded investment at period end | $ | $ 8,838 | $ 9,737 |
Commercial Real Estate | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 3,677 | $ 0 |
Commercial Real Estate | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 5 |
Recorded investment at period end | $ | $ 797 | $ 6,613 |
Commercial Real Estate | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 4,364 | $ 0 |
Commercial Real Estate | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | 1 |
Recorded investment at period end | $ | $ 0 | $ 3,124 |
Commercial Real Estate | Small Business Banking | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 3,000 | 6 |
Recorded investment at period end | $ | $ 8,838 | $ 9,737 |
Commercial Real Estate | Small Business Banking | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 3,677 | $ 0 |
Commercial Real Estate | Small Business Banking | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 5 |
Recorded investment at period end | $ | $ 797 | $ 6,613 |
Recorded investment | $ | $ 50 | |
Commercial Real Estate | Small Business Banking | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1,000 | 0 |
Recorded investment at period end | $ | $ 4,364 | $ 0 |
Commercial Real Estate | Small Business Banking | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | 1 |
Recorded investment at period end | $ | $ 0 | $ 3,124 |
Commercial Real Estate | Small Business Banking | Extended Amortization and Rate Concession | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 1 | |
Recorded investment at period end | $ | $ 3,100 | |
Construction & Development | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 2,000 | |
Recorded investment at period end | $ | $ 3,081 | |
Construction & Development | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Construction & Development | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Construction & Development | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Construction & Development | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 2,000 | |
Recorded investment at period end | $ | $ 3,081 | |
Construction & Development | Small Business Banking | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 2,000 | |
Recorded investment at period end | $ | $ 3,081 | |
Construction & Development | Small Business Banking | Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Construction & Development | Small Business Banking | Payment Deferral | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Construction & Development | Small Business Banking | Extend Amortization | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 0 | |
Recorded investment at period end | $ | $ 0 | |
Construction & Development | Small Business Banking | Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 2,000 | |
Recorded investment at period end | $ | $ 3,081 | |
Construction & Development | Small Business Banking | Extended Amortization and Interest Only | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | securityLoan | 2 | |
Recorded investment at period end | $ | $ 3,100 |
Leases - Direct Financing Lease
Leases - Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Gross direct finance lease payments receivable | $ 2,335 | $ 4,284 |
Less - unearned interest | (218) | (479) |
Net investment in direct financing leases | $ 2,117 | $ 3,805 |
Leases - Future Minimum Finance
Leases - Future Minimum Finance Lease Payments Receivable (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 1,250 |
2025 | 968 |
2026 | 117 |
Total | $ 2,335 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) lease | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Lessor Lease Description [Line Items] | |||
Direct financing lease, interest income | $ 253 | $ 393 | $ 669 |
Premises and equipment, depreciation expense | 9,600 | 9,700 | $ 9,700 |
Premises and equipment, net | 104,000 | 114,200 | |
Premises and equipment, gross | 162,300 | 163,400 | |
Premises and equipment, accumulated depreciation | $ 58,300 | $ 49,200 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Lease income | Lease income | Lease income |
Lease income | $ 9,500 | $ 9,500 | $ 9,500 |
Lessee, operating lease, number of leases on which options to extend lease term will certainly be exercised | lease | 1 | ||
Minimum | |||
Lessor Lease Description [Line Items] | |||
Operating lease, remaining lease term (in years) | 1 year | ||
Maximum | |||
Lessor Lease Description [Line Items] | |||
Operating lease, remaining lease term (in years) | 23 years | ||
Lessee, operating lease, renewal term (in years) | 20 years |
Leases - Maturity Analysis of F
Leases - Maturity Analysis of Future Minimum Operating Lease Payments to be Received (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 9,055 |
2025 | 8,738 |
2026 | 8,721 |
2027 | 8,483 |
2028 | 3,837 |
Thereafter | 9,708 |
Total | $ 48,542 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 820 | $ 1,224 |
Short-term lease cost | 123 | 99 |
Finance lease cost: | ||
Amortization of right-of-use assets | 0 | 4 |
Interest expense on lease liabilities | 0 | 0 |
Total net lease cost | $ 943 | $ 1,327 |
Leases - Summary of Consolidate
Leases - Summary of Consolidated Balance Sheet Related to Finance Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease right-of-use asset | $ 2,799 | $ 2,118 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities [Member] | Other Liabilities [Member] |
Operating lease liability | $ 3,180 | $ 2,558 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Leases (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted average remaining lease term (years) | ||
Operating leases | 10 years 6 months 29 days | 10 years 7 months 13 days |
Weighted average discount rate | ||
Operating leases | 3.64% | 3.14% |
Leases - Summary of Operating L
Leases - Summary of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 718 | |
2025 | 571 | |
2026 | 508 | |
2027 | 500 | |
2028 | 333 | |
Thereafter | 1,231 | |
Total lease payments | 3,861 | |
Less: imputed interest | (681) | |
Total lease liabilities | $ 3,180 | $ 2,558 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | |||
Unpaid principal balance of loans serviced for others requiring recognition of a servicing asset | $ 3,090,000 | $ 2,670,000 | $ 2,290,000 |
Unpaid principal balances of loan serviced for others | 4,240,000 | $ 3,480,000 | $ 3,300,000 |
Commercial Loan | |||
Servicing Assets at Fair Value [Line Items] | |||
Servicing asset at amortized cost | $ 405 |
Servicing Assets - Summary of A
Servicing Assets - Summary of Activity Pertaining to Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Balance at beginning of period | $ 26,323 | $ 33,574 | |
Additions, net | 16,977 | 9,326 | |
Fair value changes: | |||
Due to changes in valuation inputs or assumptions | $ 14,297 | $ (5,934) | |
Servicing Asset, Fair Value, Change in Fair Value, Other, Statement of Income or Comprehensive Income [Extensible Enumeration] | Loan servicing asset revaluation | Loan servicing asset revaluation | |
Decay due to increases in principal paydowns or runoff | $ (9,411) | $ (10,643) | |
Balance at end of period | 48,186 | $ 26,323 | |
Change in Accounting Method Accounted for as Change in Estimate | |||
Servicing Assets at Fair Value [Line Items] | |||
Increase in servicing assets | $ 13,700 | $ 13,700 |
Premises and Equipment - Compon
Premises and Equipment - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | $ 355,015 | $ 360,117 |
Less accumulated depreciation | (97,134) | (96,827) |
Premises and equipment, net of depreciation | 257,881 | 263,290 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 54,746 | 54,746 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 5,213 | 5,180 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 19,537 | 19,117 |
Hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 16,698 | 10,264 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 7,678 | 7,705 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 17,998 | 15,982 |
Transportation | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 22,279 | 49,766 |
Solar panels | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 162,348 | 163,391 |
Deposits on fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 48,518 | 33,966 |
Buildings, Temporarily Idle | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | $ 11,500 | $ 11,300 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 21,100 | $ 20,600 | $ 21,200 |
Purchase of building and land | 46,839 | 43,751 | $ 3,082 |
Value of building temporarily idle | 355,015 | 360,117 | |
Land and Building | |||
Property, Plant and Equipment [Line Items] | |||
Purchase of building and land | 18,300 | ||
Buildings, Temporarily Idle | |||
Property, Plant and Equipment [Line Items] | |||
Value of building temporarily idle | $ 11,500 | $ 11,300 |
Deposits - Types of Deposits (D
Deposits - Types of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | ||
Noninterest-bearing deposits | $ 259,270 | $ 194,100 |
Interest-bearing deposits: | ||
Interest-bearing checking | 301,006 | 0 |
Money market | 135,551 | 128,443 |
Savings | 4,497,376 | 4,096,576 |
Time deposits | 5,081,816 | 4,465,809 |
Total | 10,015,749 | 8,690,828 |
Total deposits | $ 10,275,019 | $ 8,884,928 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | ||
Aggregate amount of time deposits in denominations of $250 thousand or more | $ 695.6 | $ 629.1 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Total Time Deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
2024 | $ 3,452,692 |
2025 | 556,766 |
2026 | 370,858 |
2027 | 258,963 |
2028 | 156,472 |
Thereafter | 286,065 |
Total | $ 5,081,816 |
Borrowings - Total Outstanding
Borrowings - Total Outstanding Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Borrowings | $ 23,354 | $ 83,203 |
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Borrowings | 0 | 50,000 |
Third Party Correspondent Bank | Term Loan | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 23,354 | $ 33,203 |
Borrowings - Total Outstandin_2
Borrowings - Total Outstanding Borrowings Line Descriptions (Details) - USD ($) | 1 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Federal Funds Purchased | |||
Debt Instrument [Line Items] | |||
Lines of credit, outstanding | $ 0 | $ 50,000,000 | |
Federal home loan bank, advances, interest rate | 4.65% | ||
Fed Funds line of credit, available credit remaining | $ 100,000,000 | ||
Third Party Correspondent Bank | Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 60 months | ||
Debt instrument face amount | $ 50,000,000 | ||
Debt instrument fixed interest rate | 2.95% | ||
Debt instrument, maturity date | Mar. 30, 2026 | ||
Non-refundable loan origination fee | $ 325,000 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 1 Months Ended | |||
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 20, 2021 | |
Debt Instrument [Line Items] | ||||
Remaining available credit facility | $ 6,280,000,000 | $ 4,880,000,000 | ||
FHLB maximum amount available | 2,720,000,000 | 2,310,000,000 | ||
FHLB amount available for collateral | 111,700,000 | 983,800,000 | ||
FHLB advances, collateral pledged | 0 | 0 | ||
Repurchased agreements, borrowing capacity | 5,000,000 | 5,000,000 | ||
Repurchases agreements, outstanding balance | 0 | 0 | ||
Revolving Line of Credit | Third Party Correspondent Bank | ||||
Debt Instrument [Line Items] | ||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | |||
Interest rate floor (in percent) | 2.75% | |||
Extension term (in months) | 12 months | |||
Renewal fee | $ 250,000 | |||
Current available credit facility | 100,000,000 | 100,000,000 | ||
Revolving Line of Credit | Third Party Correspondent Bank | SOFR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Interest rate cap (in percent) | 6.75% | 4.25% | ||
Federal Funds Purchased | ||||
Debt Instrument [Line Items] | ||||
FHLB maximum amount available | 130,000,000 | 164,500,000 | ||
Lines of credit, outstanding | 0 | 50,000,000 | ||
Securities and Loans Identified As Available For Collateral | ||||
Debt Instrument [Line Items] | ||||
Unused borrowing capacity | 3,680,000,000 | 3,550,000,000 | ||
Federal Reserve Bank | Federal Reserve Bank | ||||
Debt Instrument [Line Items] | ||||
Remaining available credit facility | 2,210,000,000 | 2,350,000,000 | ||
Collateral amount | 2,740,000,000 | 2,810,000,000 | ||
Short term borrowings | 0 | $ 0 | ||
Bank Term Funding Program (“BTFP”) | Federal Reserve Bank | ||||
Debt Instrument [Line Items] | ||||
Remaining available credit facility | 1,120,000,000 | |||
Short term borrowings | $ 0 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense: | |||
Federal | $ 24,051 | $ 3,686 | $ 12,774 |
State | 7,042 | 3,301 | 6,211 |
Total current tax expense | 31,093 | 6,987 | 18,985 |
Deferred income tax (benefit) expense: | |||
Federal | (20,914) | 23,838 | 22,886 |
State | (1,247) | 3,291 | 1,922 |
Total deferred tax (benefit) expense | (22,161) | 27,129 | 24,808 |
Income tax expense, as reported | $ 8,932 | $ 34,116 | $ 43,793 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory rate | $ 17,394 | $ 44,168 | $ 44,266 |
State income tax expense, net of federal | 4,316 | 5,899 | 6,426 |
Stock-based compensation expense | 2,084 | 73 | (4,689) |
Decrease in taxes due to investment tax credit | (16,390) | (16,361) | (3,392) |
Amended return net benefits | 0 | (3,261) | 0 |
Other | 1,528 | 3,598 | 1,182 |
Income tax expense, as reported | $ 8,932 | $ 34,116 | $ 43,793 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net unrealized losses on securities available for sale | $ 26,753 | $ 29,153 |
Allowance for loan and lease losses | 30,576 | 27,159 |
Stock-based compensation expense | 2,599 | 5,248 |
Capitalized research and experimentation costs | 4,726 | 3,780 |
Accrued expenses | 1,283 | 1,070 |
Operating lease liabilities | 773 | 618 |
Goodwill and intangibles | 0 | 14 |
Unguaranteed loan discount | 319 | 0 |
Deferred loan fees and costs, net | 101 | 0 |
Other | 1,806 | 1,147 |
Total deferred tax assets | 68,936 | 68,189 |
Deferred tax liabilities: | ||
Premises and equipment | 37,381 | 39,054 |
Net unrealized gains on non-marketable and other equity securities | 18,165 | 22,309 |
Mark to market on loans held for sale | 6,294 | 14,036 |
Unguaranteed loan discount | 0 | 4,309 |
Deferred loan fees and costs, net | 0 | 1,332 |
Operating lease right-of-use assets | 680 | 511 |
Goodwill and intangibles | 19 | 0 |
Other | 11 | 13 |
Total deferred tax liabilities | 62,550 | 81,564 |
Net deferred tax asset | $ 6,386 | |
Net deferred tax (liability) | $ (13,375) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Rollforward of Level 3 Equity Warrant Asset Fair Values (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 2,210 | $ 1,672 |
Issuances | $ 1,005 | $ 833 |
Fair Value Recurring Basis Unobservable Input Reconciliation Net Derivative Asset Liability Gain Loss Statement Of Income Extensible List Not Disclosed Flag | Net gains on derivative instruments | Net gains on derivative instruments |
Net gains on derivative instruments | $ 19 | $ 671 |
Settlements | (360) | (966) |
Balance at end of period | $ 2,874 | $ 2,210 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Recorded Amount of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | $ 1,126,160 | $ 1,014,719 | |
Servicing asset, fair value | 48,186 | 26,323 | $ 33,574 |
U.S. government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 17,529 | 15,668 | |
Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 1,105,592 | 995,574 | |
Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,039 | 2,977 | |
Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 500 | ||
Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for investment | 388,036 | 494,458 | |
Servicing asset, fair value | 48,186 | 26,323 | |
Equity warrant assets | 2,874 | 2,210 | |
Total assets at fair value | 1,566,901 | 1,539,366 | |
Recurring | U.S. government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 17,529 | 15,668 | |
Recurring | Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 1,105,592 | 995,574 | |
Recurring | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,039 | 2,977 | |
Recurring | Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 500 | ||
Recurring | Mutual fund | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Mutual fund | 1,645 | 1,656 | |
Recurring | Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Servicing asset, fair value | 0 | 0 | |
Equity warrant assets | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Recurring | Level 1 | U.S. government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | Level 1 | Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | Level 1 | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | Level 1 | Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | ||
Recurring | Level 1 | Mutual fund | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Mutual fund | 0 | 0 | |
Recurring | Level 2 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for investment | 0 | 0 | |
Servicing asset, fair value | 0 | 0 | |
Equity warrant assets | 0 | 0 | |
Total assets at fair value | 1,127,720 | 1,016,282 | |
Recurring | Level 2 | U.S. government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 17,529 | 15,668 | |
Recurring | Level 2 | Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 1,105,592 | 995,574 | |
Recurring | Level 2 | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 2,954 | 2,884 | |
Recurring | Level 2 | Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 500 | ||
Recurring | Level 2 | Mutual fund | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Mutual fund | 1,645 | 1,656 | |
Recurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for investment | 388,036 | 494,458 | |
Servicing asset, fair value | 48,186 | 26,323 | |
Equity warrant assets | 2,874 | 2,210 | |
Total assets at fair value | 439,181 | 523,084 | |
Recurring | Level 3 | U.S. government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | Level 3 | Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | 0 | |
Recurring | Level 3 | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 85 | 93 | |
Recurring | Level 3 | Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 0 | ||
Recurring | Level 3 | Mutual fund | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Mutual fund | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Recorded Amount of Assets and Liabilities Measured at Fair Value on a Recurring Basis Footnotes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Principal paydown value | $ 1 | $ 1 |
Fair value adjustment loss | $ (7) | $ 2 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair value option that were 90 days or more past due and still accruing | $ 0 | $ 0 |
Unpaid principal balance of unguaranteed exposure for nonaccruals | 9,100,000 | 7,200,000 |
Gains (losses) related to borrower-specific credit risk | $ (3,500,000) | $ (1,900,000) |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Fair Value Carrying Amount and Unpaid Principal Outstanding of Loans Under Fair Value Option (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Option Quantitative Disclosures [Line Items] | ||
Total Loans, Fair Value Carrying amount | $ 388,036 | $ 494,458 |
Total Loans, Unpaid Principal Balance | 407,544 | 513,219 |
Total Loans, Difference | (19,508) | (18,761) |
Nonaccruals, Fair Value Carrying amount | 48,474 | 44,890 |
Nonaccruals, Unpaid Principal Balance | 50,749 | 46,993 |
Nonaccruals, Difference | (2,275) | (2,103) |
90 Days or More Past Due, Fair Value Carrying Amount | 36,490 | 24,663 |
90 Days or More Past Due, Unpaid Principal Balance | 37,939 | 26,321 |
90 Days or More Past Due, Difference | (1,449) | (1,658) |
Loans held for investment | ||
Fair Value Option Quantitative Disclosures [Line Items] | ||
Total Loans, Fair Value Carrying amount | 388,036 | 494,458 |
Total Loans, Unpaid Principal Balance | 407,544 | 513,219 |
Total Loans, Difference | (19,508) | (18,761) |
Nonaccruals, Fair Value Carrying amount | 48,474 | 44,890 |
Nonaccruals, Unpaid Principal Balance | 50,749 | 46,993 |
Nonaccruals, Difference | (2,275) | (2,103) |
90 Days or More Past Due, Fair Value Carrying Amount | 36,490 | 24,663 |
90 Days or More Past Due, Unpaid Principal Balance | 37,939 | 26,321 |
90 Days or More Past Due, Difference | $ (1,449) | $ (1,658) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Net (Losses) Gains From Changes in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Option Quantitative Disclosures [Line Items] | |||
Net (loss) gain on loans accounted for under the fair value option | $ (3,539) | $ 1,046 | $ 4,257 |
Loans held for sale | |||
Fair Value Option Quantitative Disclosures [Line Items] | |||
Net (loss) gain on loans accounted for under the fair value option | 0 | 1,521 | |
Loans held for investment | |||
Fair Value Option Quantitative Disclosures [Line Items] | |||
Net (loss) gain on loans accounted for under the fair value option | $ (3,539) | $ (475) |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Summary of the Activity Pertaining to Loans Accounted for Under Fair Value Option (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans held for sale | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 0 | $ 25,310 |
Repurchases and issuances | 0 | 65 |
Fair value changes | 0 | 1,521 |
Transfers | 0 | (26,219) |
Settlements | 0 | (677) |
Balance at end of period | 0 | 0 |
Loans held for investment | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | 494,458 | 645,201 |
Repurchases and issuances | 22,955 | 18,629 |
Fair value changes | (3,539) | (475) |
Transfers | 0 | 26,219 |
Settlements | (125,838) | (195,116) |
Balance at end of period | $ 388,036 | $ 494,458 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments - Recorded Amount of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreclosed assets | $ 6,481 | $ 0 |
Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 4,503 | 4,840 |
Foreclosed assets | 6,481 | |
Total assets at fair value | 10,984 | 4,840 |
Non-recurring Fair Value | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 0 | 0 |
Foreclosed assets | 0 | |
Total assets at fair value | 0 | 0 |
Non-recurring Fair Value | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 0 | 0 |
Foreclosed assets | 0 | |
Total assets at fair value | 0 | 0 |
Non-recurring Fair Value | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 4,503 | 4,840 |
Foreclosed assets | 6,481 | |
Total assets at fair value | $ 10,984 | $ 4,840 |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments - Analysis of Level 3 Valuation Techniques (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, fair value | $ 388,036 | $ 494,458 | |
Servicing asset, fair value | 48,186 | 26,323 | $ 33,574 |
Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, fair value | 388,036 | 494,458 | |
Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 1,566,901 | 1,539,366 | |
Servicing asset, fair value | 48,186 | 26,323 | |
Recurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 439,181 | 523,084 | |
Servicing asset, fair value | 48,186 | 26,323 | |
Recurring | Level 3 | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 85 | 93 | |
Recurring | Level 3 | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 494,458 | ||
Loans held for investment, fair value | 388,036 | ||
Recurring | Level 3 | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 2,874 | 2,210 | |
Non-recurring Fair Value | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 10,984 | 4,840 | |
Non-recurring Fair Value | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 10,984 | 4,840 | |
Non-recurring Fair Value | Level 3 | Collateral-dependent loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | 4,503 | $ 4,840 | |
Non-recurring Fair Value | Level 3 | Foreclosed assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Asset, fair value | $ 6,481 | ||
Discounted expected cash flows | Discount rate | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0.145 | ||
Discounted expected cash flows | Discount rate | Recurring | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Municipal bond, measurement input | 0.070 | 0.060 | |
Discounted expected cash flows | Prepayment speed | Recurring | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Municipal bond, measurement input | 0.050 | 5 | |
Discounted expected cash flows | Prepayment speed | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.165 | ||
Black-Scholes option pricing model | Discount rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.200 | ||
Minimum | Discounted expected cash flows | Discount rate | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0 | ||
Minimum | Discounted expected cash flows | Discount rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.067 | 0.075 | |
Minimum | Discounted expected cash flows | Prepayment speed | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0.118 | 0 | |
Minimum | Discounted expected cash flows | Prepayment speed | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.140 | ||
Minimum | Discounted expected cash flows | Loss rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0 | 0 | |
Minimum | Black-Scholes option pricing model | Discount rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.200 | ||
Minimum | Black-Scholes option pricing model | Volatility | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.269 | 0.265 | |
Minimum | Black-Scholes option pricing model | Risk-free interest rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.038 | 0.039 | |
Minimum | Black-Scholes option pricing model | Remaining life | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, remaining life | 3 years 10 months 24 days | 3 years | |
Minimum | Discounted appraisals | Discount rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0 | ||
Minimum | Discounted appraisals | Discount rate | Non-recurring Fair Value | Collateral-dependent loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Collateral-dependent loans, measurement input | 0.100 | 0.100 | |
Minimum | Discounted appraisals | Discount rate | Non-recurring Fair Value | Foreclosed assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Foreclosed assets, measurement input | 0.100 | ||
Maximum | Discounted expected cash flows | Discount rate | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0.320 | ||
Maximum | Discounted expected cash flows | Discount rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.180 | 0.112 | |
Maximum | Discounted expected cash flows | Prepayment speed | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0.178 | 0.374 | |
Maximum | Discounted expected cash flows | Prepayment speed | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.303 | ||
Maximum | Discounted expected cash flows | Loss rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.074 | 0.793 | |
Maximum | Black-Scholes option pricing model | Discount rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.250 | ||
Maximum | Black-Scholes option pricing model | Volatility | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.900 | 0.900 | |
Maximum | Black-Scholes option pricing model | Risk-free interest rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.039 | 0.040 | |
Maximum | Black-Scholes option pricing model | Remaining life | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, remaining life | 10 years | 10 years | |
Maximum | Discounted appraisals | Discount rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.773 | ||
Maximum | Discounted appraisals | Discount rate | Non-recurring Fair Value | Collateral-dependent loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Collateral-dependent loans, measurement input | 0.700 | 0.665 | |
Maximum | Discounted appraisals | Discount rate | Non-recurring Fair Value | Foreclosed assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Foreclosed assets, measurement input | 0.174 | ||
Weighted Average | Discounted expected cash flows | Discount rate | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0.145 | 0.208 | |
Weighted Average | Discounted expected cash flows | Discount rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.096 | 0.100 | |
Weighted Average | Discounted expected cash flows | Prepayment speed | Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Servicing asset, measurement input | 0.153 | 0.157 | |
Weighted Average | Discounted expected cash flows | Prepayment speed | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.160 | 0.165 | |
Weighted Average | Discounted expected cash flows | Loss rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.012 | 0.019 | |
Weighted Average | Black-Scholes option pricing model | Discount rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.227 | 0.200 | |
Weighted Average | Black-Scholes option pricing model | Volatility | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.358 | 0.342 | |
Weighted Average | Black-Scholes option pricing model | Risk-free interest rate | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, measurement input | 0.039 | 0.039 | |
Weighted Average | Black-Scholes option pricing model | Remaining life | Recurring | Equity warrant assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Equity warrant assets, remaining life | 7 years 7 months 6 days | 7 years 8 months 12 days | |
Weighted Average | Discounted appraisals | Discount rate | Recurring | Loans held for investment | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Loans held for investment, measurement input | 0.286 | ||
Weighted Average | Discounted appraisals | Discount rate | Non-recurring Fair Value | Collateral-dependent loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Collateral-dependent loans, measurement input | 0.387 | 0.342 | |
Weighted Average | Discounted appraisals | Discount rate | Non-recurring Fair Value | Foreclosed assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Foreclosed assets, measurement input | 0.104 |
Fair Value of Financial Inst_12
Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Cash and due from banks | $ 582,540 | $ 280,239 |
Federal funds sold | 0 | 136,397 |
Certificates of deposit with other banks | 250 | 4,000 |
Carrying Amount | ||
Financial assets | ||
Cash and due from banks | 582,540 | 280,239 |
Federal funds sold | 136,397 | |
Certificates of deposit with other banks | 250 | 4,000 |
Loans held for sale | 387,037 | 554,610 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 8,119,971 | 6,753,154 |
Financial liabilities | ||
Deposits | 10,275,019 | 8,884,928 |
Borrowings | 23,354 | 83,203 |
Estimate of Fair Value Measurement | ||
Financial assets | ||
Cash and due from banks | 582,540 | 280,239 |
Federal funds sold | 136,397 | |
Certificates of deposit with other banks | 250 | 4,000 |
Loans held for sale | 402,096 | 577,254 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 8,600,046 | 6,652,936 |
Financial liabilities | ||
Deposits | 10,080,182 | 8,532,615 |
Borrowings | 22,844 | 82,258 |
Level 1 | Estimate of Fair Value Measurement | ||
Financial assets | ||
Cash and due from banks | 582,540 | 280,239 |
Federal funds sold | 136,397 | |
Certificates of deposit with other banks | 250 | 4,000 |
Loans held for sale | 0 | 0 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Borrowings | 0 | 0 |
Level 2 | Estimate of Fair Value Measurement | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | |
Certificates of deposit with other banks | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 0 | 0 |
Financial liabilities | ||
Deposits | 10,080,182 | 8,532,615 |
Borrowings | 0 | 0 |
Level 3 | Estimate of Fair Value Measurement | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | |
Certificates of deposit with other banks | 0 | 0 |
Loans held for sale | 402,096 | 577,254 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 8,600,046 | 6,652,936 |
Financial liabilities | ||
Deposits | 0 | 0 |
Borrowings | $ 22,844 | $ 82,258 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) customer | Dec. 31, 2022 USD ($) | |
Concentration Risk [Line Items] | ||
Commitment letters expiration period (in days) | 90 days | |
Commitments for on-balance sheet instruments | $ 29,000 | $ 26,100 |
Construction Program, Estimated Costs To Complete | 37,000 | |
Construction Payable | 21,500 | |
Maximum retained credit exposure | 20,000 | |
Future minimum lease payments receivable under non-cancelable operating leases | $ 48,542 | |
Twenty-Three Relationships | ||
Concentration Risk [Line Items] | ||
Number of relationships that have retained unguaranteed exposure | customer | 27 | |
Retained credit exposure | $ 1,100,000 | |
Retained exposure, amount disbursed | 684,900 | |
No Relationships | Maximum | ||
Concentration Risk [Line Items] | ||
Future minimum lease payments receivable under non-cancelable operating leases | $ 20,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | $ 2,951,465 | $ 2,782,320 |
Commitments to extend credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | 2,921,978 | 2,731,866 |
Standby letters of credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | 20,487 | 26,454 |
Airplane purchase agreement commitments | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | $ 9,000 | $ 24,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Geographic Concentrations (Details) - Financing Receivable - Geographic Concentration Risk | 12 Months Ended |
Dec. 31, 2023 | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 100% |
Midwest | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 12.40% |
Northeast | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 18.70% |
Southeast | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 30.80% |
Southwest | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 12.20% |
West | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 25.90% |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||
May 24, 2016 shares | Feb. 22, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) simulation $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2010 shares | May 16, 2023 shares | May 11, 2021 shares | May 15, 2018 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expense recognized | $ | $ 6,500,000 | $ 6,300,000 | $ 4,400,000 | ||||||
Intrinsic value of options exercised | $ | $ 2,800,000 | $ 7,000,000 | $ 46,300,000 | ||||||
Shares, granted (in shares) | shares | 0 | 0 | 0 | ||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 25,000 | $ 753,000 | $ 1,300,000 | ||||||
Unrecognized compensation costs, stock options | $ | $ 0 | ||||||||
Market Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | shares | 0 | ||||||||
Units earned as a percent of units awarded | 100% | ||||||||
Number of simulations used | simulation | 100,000 | ||||||||
Compensation expense | $ | $ 4,200,000 | ||||||||
Number of shares met performance stock price conditions | shares | 575,500 | ||||||||
Performance stock price condition met, price one (in dollars per share) | $ / shares | $ 45 | ||||||||
Performance stock price condition met, price two (in dollars per share) | $ / shares | 48 | ||||||||
Performance stock price condition met, price three (in dollars per share) | $ / shares | 50 | ||||||||
Performance stock price condition met, price four (in dollars per share) | $ / shares | $ 55 | ||||||||
Compensation remaining expense fully recognized | $ | $ 3,700,000 | ||||||||
Number of remaining shares | shares | 0 | 0 | |||||||
Number of days share price must be maintained | 20 days | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation expense | $ | $ 17,600,000 | $ 19,400,000 | $ 11,400,000 | ||||||
Unrecognized compensation costs period recognized | 3 years 9 months 29 days | ||||||||
Granted (in shares) | shares | 927,838 | ||||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 34.83 | ||||||||
Unrecognized compensation costs | $ | $ 77,100,000 | ||||||||
Number of shares met performance stock price conditions | shares | 565,790 | ||||||||
Number of remaining shares | shares | 2,228,236 | 2,409,698 | |||||||
Restricted Stock Units (RSUs) | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrecognized compensation costs period recognized | 5 years 3 days | ||||||||
Granted (in shares) | shares | 457,167 | ||||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 39.40 | ||||||||
Unrecognized compensation costs | $ | $ 18,000,000 | ||||||||
Cash Bonus | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | $ | $ 1,000,000 | $ 9,400,000 | 7,700,000 | ||||||
Special Bonus | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense | $ | $ 4,500,000 | $ 10,500,000 | $ 4,000,000 | ||||||
2015 Omnibus Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common voting shares authorized (in shares) | shares | 7,000,000 | ||||||||
Options or restricted shares of expiration period | 10 years | ||||||||
Percentage of fair market value of common stock | 100% | ||||||||
2015 Omnibus Plan | Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of common voting shares authorized (in shares) | shares | 13,750,000 | 10,750,000 | 8,750,000 | ||||||
2015 Omnibus Plan | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | shares | 927,838 | 885,939 | 1,329,508 | ||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 34.83 | $ 37.75 | $ 58.19 | ||||||
Restricted Stock Plan | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 7 years | ||||||||
Shares available for issuance to eligible employees (in shares) | shares | 1,350,000 | ||||||||
A2015 Omnibus Plan Amendedand Restated | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | shares | 885,939 | 1,329,508 | |||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 37.75 | $ 58.19 | |||||||
Employee Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum annual purchase per employee | $ | $ 25,000 | ||||||||
Purchase date discount | 15% | ||||||||
Share-based compensation expense | $ | $ 246,000 | $ 188,000 | $ 118,000 |
Benefit Plans - Stock Option Ac
Benefit Plans - Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, outstanding, beginning balance (in shares) | shares | 825,114 |
Shares, exercised (in shares) | shares | (148,551) |
Shares, outstanding, ending balance (in shares) | shares | 676,563 |
Shares, exercisable (in shares) | shares | 676,563 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, outstanding, beginning balance (in dollars per share) | $ / shares | $ 12.73 |
Weighted average exercise price, exercised (in dollars per share) | $ / shares | 12.71 |
Weighted average exercise price, outstanding, ending balance (in dollars per share) | $ / shares | 12.74 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 12.74 |
Weighted average remaining contractual term, outstanding | 1 year 3 months 21 days |
Weighted average remaining contractual term, exercisable | 1 year 3 months 21 days |
Aggregate intrinsic value, outstanding | $ | $ 22,165,930 |
Aggregate intrinsic value, exercisable | $ | $ 22,165,930 |
Benefit Plans - Summary of Non-
Benefit Plans - Summary of Non-vested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, non-vested, beginning balance (in shares) | 37,760 | 382,850 | 1,022,636 |
Shares, vested (in shares) | (37,760) | (336,464) | (592,693) |
Shares, forfeited (in shares) | (8,626) | (47,093) | |
Shares, non-vested, ending balance (in shares) | 0 | 37,760 | 382,850 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, non-vested, beginning balance (in dollars per share) | $ 6.60 | $ 6.75 | $ 5.38 |
Weighted average grant date fair value, vested (in dollars per share) | 6.60 | 6.85 | 4.35 |
Weighted average grant date fair value, forfeited (in dollars per share) | 6.95 | 7.28 | |
Weighted average grant date fair value, non-vested, ending balance (in dollars per share) | $ 0 | $ 6.60 | $ 6.75 |
Benefit Plans - Restricted Stoc
Benefit Plans - Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) | |||
Shares | |||
Shares, non-vested, beginning balance (in shares) | 2,409,698 | ||
Granted (in shares) | 927,838 | ||
Shares, vested (in shares) | (565,790) | ||
Shares, forfeited (in shares) | (543,510) | ||
Shares, non-vested, ending balance (in shares) | 2,228,236 | 2,409,698 | |
Weighted Average Grant Date Fair Value | |||
Shares, non-vested, weighted average grant date fair value (in dollars per share) | $ 43.63 | ||
Shares granted, weighted average grand date fair value (in dollars per share) | 34.83 | ||
Shares vested, weighted average grant date fair value (in dollars per share) | 41.87 | ||
Shares forfeited, weighted average grant date fair value (in dollars per share) | 47.39 | ||
Shares, non-vested, weighted average grant date fair value (in dollars per share) | $ 39.50 | $ 43.63 | |
Market Restricted Stock | |||
Shares | |||
Shares, non-vested, beginning balance (in shares) | 0 | ||
Granted (in shares) | 0 | ||
Shares, vested (in shares) | (575,500) | ||
Shares, non-vested, ending balance (in shares) | 0 | 0 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | Dec. 31, 2023 |
Regulated Operations [Abstract] | |
Minimum common equity tier 1 ratio | 4.50% |
Minimum common equity, capital conservation buffer | 0.0250 |
Minimum common equity tier 1 ratio including conservation buffer | 7% |
Minimum tier 1 risk-based capital ratio | 0.0600 |
Minimum tier 1 risk-based capital ratio including conservation buffer | 8.50 |
Minimum total risk-based capital ratio | 0.0800 |
Minimum total risk-based capital ratio including conservation buffer | 0.105 |
Minimum leverage tier 1 capital ratio | 0.0400 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Common Equity Tier 1 to Risk-Weighted Assets [Abstract] | ||
Common equity tier 1 capital ratio, minimum capital requirement | 4.50% | |
Capital [Abstract] | ||
Total capital to risk-weighted assets ratio, minimum capital requirement | 0.0800 | |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital to risk-weighted assets ratio, minimum capital requirement | 0.0600 | |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets ratio, minimum capital requirement | 0.0400 | |
Live Oak Bancshares, Inc. | ||
Common Equity Tier 1 to Risk-Weighted Assets [Abstract] | ||
Common equity tier 1 capital | $ 960,433 | $ 888,235 |
Common equity tier 1 capital ratio | 0.1173 | 0.1247 |
Common equity tier 1 capital, minimum capital requirement | $ 368,549 | $ 320,446 |
Common equity tier 1 capital ratio, minimum capital requirement | 4.50% | 4.50% |
Capital [Abstract] | ||
Total capital to risk-weighted assets | $ 1,063,157 | $ 977,360 |
Total capital risk to weighted--assets, actual | 0.1298 | 0.1373 |
Total capital to risk-weighted assets, minimum capital requirement | $ 655,198 | $ 569,681 |
Total capital to risk-weighted assets ratio, minimum capital requirement | 0.0800 | 0.0800 |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital to risk-weighted assets, actual | $ 960,433 | $ 888,235 |
Tier 1 to risk-weighted assets, actual | 0.1173 | 0.1247 |
Tier 1 capital to risk-weighted assets, minimum capital requirement | $ 491,399 | $ 427,261 |
Tier 1 capital to risk-weighted assets ratio, minimum capital requirement | 0.0600 | 0.0600 |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets, actual | $ 960,433 | $ 888,235 |
Tier 1 to average assets, actual | 0.0858 | 0.0926 |
Tier 1 capital to average assets, minimum capital requirement | $ 447,561 | $ 383,499 |
Tier 1 capital to average assets ratio, minimum capital requirement | 0.0400 | 0.0400 |
Subsidiaries | ||
Common Equity Tier 1 to Risk-Weighted Assets [Abstract] | ||
Common equity tier 1 capital | $ 823,478 | $ 730,092 |
Common equity tier 1 capital ratio | 0.1040 | 0.1070 |
Common equity tier 1 capital, minimum capital requirement | $ 356,426 | $ 307,179 |
Common equity tier 1 capital ratio, minimum capital requirement | 4.50% | 4.50% |
Common equity tier 1 capital, minimum to be well capitalized under prompt corrective action | $ 514,837 | $ 443,703 |
Common equity tier 1 ratio, minimum to be well capitalized under prompt corrective action provisions | 6.50% | 6.50% |
Capital [Abstract] | ||
Total capital to risk-weighted assets | $ 922,876 | $ 815,577 |
Total capital risk to weighted--assets, actual | 0.1165 | 0.1195 |
Total capital to risk-weighted assets, minimum capital requirement | $ 633,646 | $ 546,096 |
Total capital to risk-weighted assets ratio, minimum capital requirement | 0.0800 | 0.0800 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions | $ 792,057 | $ 682,620 |
Total capital to risk-weighted assets ratio, minimum to be well capitalized under prompt corrective action provisions | 0.1000 | 0.1000 |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital to risk-weighted assets, actual | $ 823,478 | $ 730,092 |
Tier 1 to risk-weighted assets, actual | 0.1040 | 0.1070 |
Tier 1 capital to risk-weighted assets, minimum capital requirement | $ 475,234 | $ 409,572 |
Tier 1 capital to risk-weighted assets ratio, minimum capital requirement | 0.0600 | 0.0600 |
Tier 1 capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions | $ 633,646 | $ 546,096 |
Tier 1 to risk-weighted assets ratio, minimum to be well capitalized under prompt corrective action provisions | 0.0800 | 0.0800 |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets, actual | $ 823,478 | $ 730,092 |
Tier 1 to average assets, actual | 0.0741 | 0.0770 |
Tier 1 capital to average assets, minimum capital requirement | $ 444,480 | $ 379,396 |
Tier 1 capital to average assets ratio, minimum capital requirement | 0.0400 | 0.0400 |
Tier 1 capital to average assets, minimum to be well capitalized under prompt corrective action provisions | $ 555,600 | $ 474,245 |
Tier 1 to average assets ratio, minimum to be well capitalized under prompt corrective action provisions | 0.0500 | 0.0500 |
Transactions with Related Par_2
Transactions with Related Parties - Schedule of Related Party Loan Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Balance as of December 31, 2022 | $ 21,738 |
Loan originations | 3,723 |
Loan repayments | (2,537) |
Balance as of December 31, 2023 | $ 22,924 |
Transactions with Related Par_3
Transactions with Related Parties - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 48,600,000 | $ 63,500,000 | |
Apiture, Inc. | Related Party | |||
Related Party Transaction [Line Items] | |||
Professional services expense | 2,500,000 | 2,000,000 | $ 1,200,000 |
Apiture, Inc. | Related Party | Shared Services and Rent | |||
Related Party Transaction [Line Items] | |||
Total revenues | 385,000 | 438,000 | 601,000 |
Collective Impact | Related Party | |||
Related Party Transaction [Line Items] | |||
Charitable contributions expense | $ 0 | $ 310,000 | $ 352,000 |
Segments - Narrative (Details)
Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Schedule of Segment
Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 688,275 | $ 444,473 | $ 361,213 |
Interest expense | 342,970 | 116,972 | 64,428 |
Net interest income | 345,305 | 327,501 | 296,785 |
Provision for loan and lease credit losses | 51,323 | 40,943 | 15,210 |
Noninterest income | 111,733 | 237,992 | 160,200 |
Noninterest expense | 322,885 | 314,226 | 230,987 |
Income tax (benefit) expense | 8,932 | 34,116 | 43,793 |
Net income | 73,898 | 176,208 | 166,995 |
Total assets | 11,271,423 | 9,855,498 | 8,213,393 |
Operating Segments | Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 687,655 | 444,307 | 360,986 |
Interest expense | 341,789 | 115,324 | 63,119 |
Net interest income | 345,866 | 328,983 | 297,867 |
Provision for loan and lease credit losses | 51,323 | 40,943 | 15,210 |
Noninterest income | 101,054 | 80,562 | 114,363 |
Noninterest expense | 303,695 | 296,891 | 215,819 |
Income tax (benefit) expense | 9,106 | (226) | 35,539 |
Net income | 82,796 | 71,937 | 145,662 |
Total assets | 11,145,385 | 9,672,458 | 8,053,212 |
Operating Segments | Fintech | |||
Segment Reporting Information [Line Items] | |||
Interest income | 39 | 93 | 201 |
Interest expense | 0 | 0 | 0 |
Net interest income | 39 | 93 | 201 |
Provision for loan and lease credit losses | 0 | 0 | 0 |
Noninterest income | 8,297 | 155,028 | 43,141 |
Noninterest expense | 10,458 | 9,413 | 5,395 |
Income tax (benefit) expense | 1,034 | 36,016 | 10,280 |
Net income | (3,156) | 109,692 | 27,667 |
Total assets | 131,310 | 124,249 | 121,889 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 581 | 73 | 26 |
Interest expense | 1,181 | 1,648 | 1,309 |
Net interest income | (600) | (1,575) | (1,283) |
Provision for loan and lease credit losses | 0 | 0 | 0 |
Noninterest income | 2,382 | 2,402 | 2,696 |
Noninterest expense | 8,732 | 7,922 | 9,773 |
Income tax (benefit) expense | (1,208) | (1,674) | (2,026) |
Net income | (5,742) | (5,421) | (6,334) |
Total assets | $ (5,272) | $ 58,791 | $ 38,292 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Other assets | $ 354,476 | $ 328,308 | ||
Total assets | 11,271,423 | 9,855,498 | $ 8,213,393 | |
Liabilities and Shareholders’ Equity | ||||
Borrowings | 23,354 | 83,203 | ||
Other liabilities | 70,384 | 76,334 | ||
Total liabilities | 10,368,757 | 9,044,465 | ||
Shareholders' equity: | ||||
Retained earnings | 642,817 | 572,497 | ||
Accumulated other comprehensive loss | (84,719) | (92,318) | ||
Total shareholders’ equity | 902,666 | 811,033 | $ 715,133 | $ 567,850 |
Total liabilities and shareholders’ equity | 11,271,423 | 9,855,498 | ||
Live Oak Bancshares, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 81,897 | 103,238 | ||
Investment in subsidiaries | 843,978 | 704,905 | ||
Other assets | 14,518 | 50,801 | ||
Total assets | 940,393 | 858,944 | ||
Liabilities and Shareholders’ Equity | ||||
Borrowings | 23,354 | 33,203 | ||
Other liabilities | 14,373 | 14,708 | ||
Total liabilities | 37,727 | 47,911 | ||
Shareholders' equity: | ||||
Common stock | 344,568 | 330,854 | ||
Retained earnings | 642,817 | 572,497 | ||
Accumulated other comprehensive loss | (84,719) | (92,318) | ||
Total shareholders’ equity | 902,666 | 811,033 | ||
Total liabilities and shareholders’ equity | $ 940,393 | $ 858,944 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest income | $ 688,275 | $ 444,473 | $ 361,213 |
Interest expense | 342,970 | 116,972 | 64,428 |
Net interest income | 345,305 | 327,501 | 296,785 |
Other noninterest income | 20,074 | 17,141 | 15,493 |
Total noninterest income | 111,733 | 237,992 | 160,200 |
Noninterest expense | |||
Salaries and employee benefits | 175,052 | 170,822 | 124,932 |
Professional services expense | 7,737 | 11,737 | 15,135 |
Renewable energy tax credit investment impairment | 14,644 | 16,217 | 3,187 |
Other expense | 17,152 | 12,380 | 8,052 |
Total noninterest expense | 322,885 | 314,226 | 230,987 |
Income before taxes | 82,830 | 210,324 | 210,788 |
Income tax (benefit) expense | 8,932 | 34,116 | 43,793 |
Net income | 73,898 | 176,208 | 166,995 |
Live Oak Bancshares, Inc. | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest income | 581 | 73 | 25 |
Interest expense | 1,182 | 1,648 | 1,309 |
Net interest income | (601) | (1,575) | (1,284) |
Other noninterest income | (290) | (107) | 716 |
Total noninterest income | (290) | (107) | 716 |
Noninterest expense | |||
Salaries and employee benefits | 1,549 | 1,444 | 5,120 |
Professional services expense | 1,540 | 1,163 | 679 |
Other expense | 2,384 | 1,907 | 789 |
Total noninterest expense | 5,473 | 4,514 | 6,588 |
Income before taxes | (6,364) | (6,196) | (7,156) |
Income tax (benefit) expense | (1,010) | (1,358) | (1,615) |
Net loss | (5,354) | (4,838) | (5,541) |
Equity in undistributed income of subsidiaries in excess of dividends from subsidiaries | 79,252 | 181,046 | 172,536 |
Net income | $ 73,898 | $ 176,208 | $ 166,995 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 73,898 | $ 176,208 | $ 166,995 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Deferred tax (benefit) expense | (22,161) | 27,129 | 24,808 |
Stock option compensation expense | 272 | 942 | 1,379 |
Restricted stock compensation expense | 17,603 | 19,405 | 15,572 |
Business combination contingent consideration fair value adjustment | 125 | (86) | 99 |
Net cash provided (used) by operating activities | 620,071 | 124,485 | (119,717) |
Cash flows from investing activities | |||
Purchases of equity security investments | (3,390) | (9,283) | 0 |
Purchases of equity method investments | (27,209) | (35,955) | 0 |
Net cash used by investing activities | (1,774,922) | (1,442,344) | (149,803) |
Cash flows from financing activities | |||
Proceeds from borrowings | 2,906,071 | 62,096 | 602,848 |
Repayment of borrowings | (2,965,920) | (297,182) | (1,826,652) |
Stock option exercises | 1,168 | 2,118 | 4,158 |
Employee stock purchase program | 1,396 | 1,067 | 670 |
Withholding cash issued in lieu of restricted stock and other | (6,725) | (4,972) | (19,151) |
Repurchase and retirement of shares | 0 | 0 | (953) |
Shareholder dividend distributions | (5,326) | (5,266) | (5,186) |
Net cash (used in) provided by financing activities | 1,320,755 | 1,530,745 | 154,950 |
Net increase (decrease) in cash and cash equivalents | 165,904 | 212,886 | (114,570) |
Live Oak Bancshares, Inc. | |||
Cash flows from operating activities | |||
Net income | 73,898 | 176,208 | 166,995 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||
Equity in undistributed net income of subsidiaries in excess of dividends of subsidiaries | (79,252) | (181,046) | (172,536) |
Subsidiary vesting of restricted stock and other | (10,474) | (14,862) | 2,679 |
Deferred tax (benefit) expense | (15) | 434 | 30,070 |
Stock option compensation expense | 272 | 942 | 1,379 |
Restricted stock compensation expense | 17,603 | 19,405 | 15,572 |
Business combination contingent consideration fair value adjustment | 125 | (86) | 99 |
Net change in other assets | 36,283 | (2,846) | (22,645) |
Net change in other liabilities | 299 | (1,626) | (11,243) |
Net cash provided (used) by operating activities | 38,739 | (3,477) | 10,370 |
Cash flows from investing activities | |||
Capital investment in subsidiaries | (40,000) | 121,750 | (26,407) |
Purchases of equity security investments | (132) | (182) | (84) |
Purchases of equity method investments | (612) | (904) | (237) |
Net cash used by investing activities | (40,744) | 120,664 | (26,728) |
Cash flows from financing activities | |||
Proceeds from borrowings | 71 | 12,096 | 57,675 |
Repayment of borrowings | (9,920) | (29,627) | (21,429) |
Stock option exercises | 1,168 | 2,118 | 4,158 |
Employee stock purchase program | 1,396 | 1,067 | 670 |
Withholding cash issued in lieu of restricted stock and other | (6,725) | (4,972) | (19,151) |
Repurchase and retirement of shares | 0 | 0 | (953) |
Shareholder dividend distributions | (5,326) | (5,266) | (5,186) |
Net cash (used in) provided by financing activities | (19,336) | (24,584) | 15,784 |
Net increase (decrease) in cash and cash equivalents | (21,341) | 92,603 | (574) |
Cash and cash equivalents at beginning of year | 103,238 | 10,635 | 11,209 |
Cash and cash equivalents at end of year | $ 81,897 | $ 103,238 | $ 10,635 |