Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | LIVE OAK BANCSHARES, INC. | ||
Entity Central Index Key | 0001462120 | ||
Trading Symbol | LOB | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Voluntary Files | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,888,039,471 | ||
Entity Common Stock, Shares Outstanding (in shares) | 43,716,608 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Title of 12(b) Security | Voting Common Stock, no par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-37497 | ||
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 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Auditor Name | Dixon Hughes Goodman LLP | ||
Auditor Location | Raleigh, North Carolina | ||
Auditor Firm ID | 57 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement for the 2022 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, 2021, which will be posted on the registrant's website subsequent to the date hereof, are incorporated by reference into Part II. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 187,203 | $ 297,167 |
Federal funds sold | 16,547 | 21,153 |
Certificates of deposit with other banks | 4,750 | 6,500 |
Investment securities available-for-sale | 906,052 | 750,098 |
Loans held for sale (includes $25,310 and $36,111 measured at fair value, respectively) | 1,116,519 | 1,175,470 |
Loans and leases held for investment (includes $645,201 and $815,374 measured at fair value, respectively) | 5,521,262 | 5,144,930 |
Allowance for credit losses on loans and leases | (63,584) | (52,306) |
Net loans and leases | 5,457,678 | 5,092,624 |
Premises and equipment, net | 240,196 | 259,267 |
Foreclosed assets | 620 | 4,155 |
Servicing assets | 33,574 | 33,918 |
Other assets | 250,254 | 231,951 |
Total assets | 8,213,393 | 7,872,303 |
Deposits: | ||
Noninterest-bearing | 89,279 | 75,287 |
Interest-bearing | 7,022,765 | 5,637,541 |
Total deposits | 7,112,044 | 5,712,828 |
Borrowings | 318,289 | 1,542,093 |
Other liabilities | 67,927 | 49,532 |
Total liabilities | 7,498,260 | 7,304,453 |
Shareholders’ equity | ||
Retained earnings | 400,893 | 235,724 |
Accumulated other comprehensive income | 1,946 | 21,507 |
Total shareholders’ equity | 715,133 | 567,850 |
Total liabilities and shareholders’ equity | 8,213,393 | 7,872,303 |
Preferred Stock Undefined | ||
Shareholders’ equity | ||
Preferred stock, no par value, 1,000,000 authorized, none issued or outstanding at December 31, 2021 and December 31, 2020 | ||
Class A Common Stock | ||
Shareholders’ equity | ||
Common stock | 310,970 | 298,890 |
Class B Common Stock | ||
Shareholders’ equity | ||
Common stock | $ 1,324 | $ 11,729 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans held-for-sale, fair value | $ 25,310 | $ 36,111 |
Loans and leases held for Investment at fair value | $ 645,201 | $ 815,374 |
Preferred Stock Undefined | ||
Preferred stock, par value | ||
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 |
Class A Common Stock | ||
Common stock, par value | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 43,494,046 | 41,344,689 |
Common stock outstanding (in shares) | 43,494,046 | 41,344,689 |
Class B Common Stock | ||
Common stock, par value | ||
Common stock authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock issued (in shares) | 125,024 | 1,107,757 |
Common stock outstanding (in shares) | 125,024 | 1,107,757 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income | |||
Loans and fees on loans | $ 347,738 | $ 270,770 | $ 207,836 |
Investment securities, taxable | 12,533 | 15,016 | 15,345 |
Other interest earning assets | 942 | 2,622 | 4,799 |
Total interest income | 361,213 | 288,408 | 227,980 |
Interest expense | |||
Deposits | 59,740 | 89,726 | 87,897 |
Borrowings | 4,688 | 3,959 | 1 |
Total interest expense | 64,428 | 93,685 | 87,898 |
Net interest income | 296,785 | 194,723 | 140,082 |
Provision for loan and lease credit losses | 15,210 | 40,658 | 15,212 |
Net interest income after provision for loan and lease credit losses | 281,575 | 154,065 | 124,870 |
Noninterest income | |||
Loan servicing revenue | 25,219 | 26,600 | 28,034 |
Loan servicing asset revaluation | (11,726) | (9,958) | (16,581) |
Net gains on sales of loans | 67,280 | 49,473 | 29,002 |
Net gain (loss) on loans accounted for under the fair value option | 4,257 | (13,083) | 7,408 |
Equity method investments income (loss) | (1,716) | (14,691) | (7,889) |
Equity security investments gains (losses), net | 44,752 | 14,909 | 3,532 |
Gain on sale of investment securities available-for-sale, net | 0 | 1,880 | 620 |
Lease income | 10,263 | 10,508 | 9,655 |
Management fee income | 6,378 | 6,352 | 1,742 |
Other noninterest income | 15,493 | 14,010 | 7,996 |
Total noninterest income | 160,200 | 86,000 | 63,519 |
Noninterest expense | |||
Salaries and employee benefits | 124,932 | 112,525 | 90,634 |
Travel expense | 5,809 | 3,451 | 6,921 |
Professional services expense | 15,135 | 6,359 | 6,859 |
Advertising and marketing expense | 5,002 | 3,510 | 5,936 |
Occupancy expense | 8,423 | 8,757 | 8,116 |
Data processing expense | 18,181 | 12,344 | 9,265 |
Equipment expense | 17,950 | 17,603 | 16,327 |
Other loan origination and maintenance expense | 13,529 | 10,790 | 9,272 |
Renewable energy tax credit investment impairment | 3,187 | 0 | 602 |
FDIC insurance | 7,070 | 7,473 | 3,447 |
Other expense | 11,769 | 9,864 | 7,545 |
Total noninterest expense | 230,987 | 192,676 | 164,924 |
Income before taxes | 210,788 | 47,389 | 23,465 |
Income tax expense (benefit) | 43,793 | (12,154) | 5,431 |
Net income | $ 166,995 | $ 59,543 | $ 18,034 |
Basic earnings per share | $ 3.87 | $ 1.46 | $ 0.45 |
Diluted earnings per share | $ 3.71 | $ 1.43 | $ 0.44 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 166,995 | $ 59,543 | $ 18,034 |
Other comprehensive (loss) income before tax: | |||
Net unrealized (loss) gain on investment securities arising during the period | (25,738) | 14,752 | 18,252 |
Reclassification adjustment for gain on sale of securities available- for-sale included in net income | (1,880) | (620) | |
Other comprehensive (loss) income before tax | (25,738) | 12,872 | 17,632 |
Income tax benefit (expense) | 6,177 | (3,089) | (4,231) |
Other comprehensive (loss) income, net of tax | (19,561) | 9,783 | 13,401 |
Total comprehensive income | $ 147,434 | $ 69,326 | $ 31,435 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Common stockClass A Common Stock | Common stockClass B Common Stock | Retained earnings | Retained earningsCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) |
Beginning balance at Dec. 31, 2018 | $ 493,560 | $ 328,113 | $ 167,124 | $ (1,677) | ||||
Beginning balance (Accounting Standards Update 2016-02) at Dec. 31, 2018 | $ (66) | $ (66) | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 35,512,262 | 4,643,530 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 18,034 | 18,034 | ||||||
Other comprehensive income (loss) | 13,401 | 13,401 | ||||||
Issuance of restricted stock (in shares) | 61,121 | |||||||
Tax withholding related to vesting of restricted stock and other | (409) | (409) | ||||||
Employee stock purchase program | 437 | 437 | ||||||
Employee stock purchase program (in shares) | 29,493 | |||||||
Non-voting common stock converted to voting common stock in private sale (Shares) | 1,727,999 | (1,727,999) | ||||||
Stock option exercises | 508 | 508 | ||||||
Stock option exercises (in shares) | 70,568 | |||||||
Stock option based compensation expense | 1,723 | 1,723 | ||||||
Restricted stock expense | 10,025 | 10,025 | ||||||
Ending balance at Dec. 31, 2019 | 532,386 | 340,397 | 180,265 | 11,724 | ||||
Ending balance (Accounting Standards Update 2016-13) at Dec. 31, 2019 | $ 822 | $ 822 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cash dividends | (4,827) | (4,827) | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 37,401,443 | 2,915,531 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 59,543 | 59,543 | ||||||
Other comprehensive income (loss) | 9,783 | 9,783 | ||||||
Issuance of restricted stock (in shares) | 1,510,066 | |||||||
Tax withholding related to vesting of restricted stock and other | (49,229) | (49,229) | ||||||
Employee stock purchase program | 520 | 520 | ||||||
Employee stock purchase program (in shares) | 39,253 | |||||||
Non-voting common stock converted to voting common stock in private sale (Shares) | 1,807,774 | (1,807,774) | ||||||
Stock option exercises | 3,069 | 3,069 | ||||||
Stock option exercises (in shares) | 496,226 | |||||||
Stock option based compensation expense | 1,594 | 1,594 | ||||||
Restricted stock expense | 13,146 | 13,146 | ||||||
Ending balance at Dec. 31, 2020 | 567,850 | 310,619 | 235,724 | 21,507 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock in connection with acquisition of wholly-owned subsidiary | 1,122 | 1,122 | ||||||
Issuance of common stock in connection with acquisition of wholly-owned subsidiary (in shares) | 89,927 | |||||||
Cash dividends | (4,906) | (4,906) | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 41,344,689 | 1,107,757 | ||||||
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 | 670 | 670 | ||||||
Employee stock purchase program (in shares) | 13,674 | |||||||
Non-voting common stock converted to voting common stock in private sale (Shares) | 982,733 | (982,733) | ||||||
Stock option exercises | $ 4,158 | 4,158 | ||||||
Stock option exercises (in shares) | 767,988 | 709,823 | ||||||
Stock option based compensation expense | $ 1,379 | 1,379 | ||||||
Restricted stock expense | 15,572 | 15,572 | ||||||
Ending balance at Dec. 31, 2021 | 715,133 | 312,294 | 400,893 | $ 1,946 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
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 | (953) | $ (953) | ||||||
Repurchase and retirement of shares securing a note receivable (in shares) | (10,000) | |||||||
Cash dividends | $ (5,186) | $ (5,186) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 43,494,046 | 125,024 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 166,995 | $ 59,543 | $ 18,034 |
Adjustments to reconcile net income to net cash used by operating activities: | |||
Depreciation and amortization | 21,366 | 21,688 | 19,967 |
Provision for loan and lease credit losses | 15,210 | 40,658 | 15,212 |
Amortization of premium on securities, net of accretion | 6,461 | 3,359 | 507 |
Deferred tax expense (benefit) | 24,808 | (17,447) | 1,467 |
Originations of loans held for sale | (1,364,168) | (1,183,152) | (1,005,165) |
Proceeds from sales of loans held for sale | 1,092,222 | 875,393 | 457,533 |
Net gains on sale of loans held for sale | (67,280) | (49,473) | (29,002) |
Net (gain) loss on sale of foreclosed assets | (779) | 12 | 25 |
Net (gain) loss on loans accounted for under fair value option | (4,257) | 13,083 | (7,408) |
Net decrease in servicing assets | 344 | 1,447 | 12,276 |
Gain on sale of investment securities available-for-sale, net | 0 | (1,880) | (620) |
Net (gain) loss on sale or disposal of long lived asset | (114) | 6 | (357) |
Net (gain) loss on disposal of premises and equipment | (48) | 38 | 109 |
Impairment on premises and equipment, net | 904 | 1,263 | |
Equity method investments (income) loss | 1,716 | 14,691 | 7,889 |
Equity security investments (gains) losses, net | (44,752) | (14,909) | (3,532) |
Renewable energy tax credit investment impairment | 3,187 | 0 | 602 |
Stock option based compensation expense | 1,379 | 1,594 | 1,723 |
Restricted stock expense | 15,572 | 13,146 | 10,025 |
Stock based compensation expense excess tax benefit (shortfall) | 9,340 | 22,043 | (125) |
Business combination contingent consideration fair value adjustment | 99 | 163 | |
Changes in assets and liabilities: | |||
Lease right-of-use assets and liabilities, net | (26) | 42 | 126 |
Other assets | 1,754 | (64,323) | 14,298 |
Other liabilities | 350 | 2,018 | 3,896 |
Net cash used by operating activities | (119,717) | (260,997) | (482,520) |
Cash flows from investing activities | |||
Purchases of securities available-for-sale | (428,246) | (396,187) | (253,100) |
Proceeds from sales, maturities, calls, and principal paydowns of securities available-for-sale | 240,093 | 197,527 | 111,290 |
Proceeds from SBA reimbursement/sale of foreclosed assets, net | 6,786 | 5,282 | 796 |
Business combination, net of cash acquired | (895) | ||
Maturities of certificates of deposit with other banks | 1,750 | 750 | |
Loan and lease originations and principal collections, net | 8,824 | (2,414,016) | (517,253) |
Proceeds from sale of long lived asset | 8,988 | 9,063 | 10,895 |
Proceeds from sale of equity security investment | 15,000 | ||
Proceeds from sale of premises and equipment | 84 | 4 | |
Purchases of premises and equipment, net | (3,082) | (20,989) | (37,197) |
Net cash used by investing activities | (149,803) | (2,619,461) | (684,569) |
Cash flows from financing activities | |||
Net increase in deposits | 1,399,216 | 1,485,848 | 1,074,909 |
Proceeds from borrowings | 602,848 | 1,828,033 | |
Repayment of borrowings | (1,826,652) | (285,954) | (1,443) |
Stock option exercises | 4,158 | 3,069 | 508 |
Employee stock purchase program | 670 | 520 | 437 |
Withholding cash issued in lieu of restricted stock and other | (19,151) | (49,229) | (409) |
Repurchase and retirement of shares | (953) | ||
Shareholder dividend distributions | (5,186) | (4,906) | (4,827) |
Net cash provided by financing activities | 154,950 | 2,977,381 | 1,069,175 |
Net (decrease) increase in cash and cash equivalents | (114,570) | 96,923 | (97,914) |
Cash and cash equivalents, beginning | 318,320 | 221,397 | 319,311 |
Cash and cash equivalents, ending | 203,750 | 318,320 | 221,397 |
Supplemental disclosure of cash flow information | |||
Interest paid | 66,844 | 91,801 | 87,280 |
Income tax paid (received), net | 19,722 | 11,486 | (12,293) |
Supplemental disclosures of noncash operating, investing, and financing activities | |||
Unrealized holding (losses) gains on available-for-sale securities, net of taxes | (19,561) | 9,783 | 13,401 |
Transfers from loans and leases to foreclosed real estate and other repossessions or SBA receivable | 13,346 | 16,091 | 19,105 |
Net transfers between foreclosed real estate and SBA receivable | (1,643) | 252 | (281) |
Transfer aircraft from premises and equipment, net to held for sale assets | 17,943 | ||
Transfer of loans held for sale to loans and leases held for investment | 638,696 | 295,981 | 277,964 |
Transfer of loans and leases held for investment to loans held for sale | 338,873 | 97,341 | 39,067 |
Transfer from retained earnings to other assets for pro rata portion of equity method investee stock compensation expense | 3,360 | ||
Accrued premises and equipment additions | 88 | ||
Right-of-use assets obtained in exchange for lessee operating lease liabilities | 2,241 | ||
Equity method investment commitments | 2,940 | $ 16,282 | |
Equity security investment commitments | $ 2,245 | ||
Business combination: | |||
Assets acquired (excluding goodwill) | 2,523 | ||
Liabilities assumed | 2,074 | ||
Goodwill recorded | $ 1,797 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Live Oak Bancshares, Inc. Notes to Consolidated Financial Statements Note 1. 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 seven satellite sales offices across the United States. The Bank specializes in lending and deposit related services to small businesses nationwide. The Bank identifies and extends lending to credit-worthy borrowers both within specific industries, also called verticals, through expertise within those industries, and more broadly to select borrowers outside of those industries. A significant portion of the loans originated by the Bank are guaranteed by the Small Business Administration (“SBA”) under the 7(a) Loan Program and the U.S. Department of Agriculture (“USDA”) Rural Energy for America Program (“REAP”), Water and Environmental Program (“WEP”) and Business & Industry (“B&I”) loan programs. The Company’s wholly owned 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”). The Bank’s wholly owned subsidiaries are Live Oak Number One, Inc., Live Oak Clean Energy Financing LLC (“LOCEF”), and Live Oak Private Wealth, LLC (“Live Oak Private Wealth”). Live Oak Number One, Inc. holds properties foreclosed on by the Bank. LOCEF provides financing to entities for renewable energy applications and became a wholly owned subsidiary of the Bank during the first quarter of 2019. Live Oak Private Wealth and its wholly owned subsidiary, Jolley Asset Management, LLC (“JAM”), provide high-net-worth individuals and families with strategic wealth and investment management services. See Business Combination discussion below for more information on the acquisition of JAM in 2020. 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 an on-site restaurant location. 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 Company jointly formed 504 Fund Advisors, LLC (“504FA”) to serve as the investment adviser for the 504 Fund, a closed-end mutual fund organized to invest in SBA section 504 loans. 504FA exited as advisor for the 504 Fund in May 2019 and the Company subsequently dissolved this legal entity. 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. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements. If an entity is not a variable interest entity, the Company also evaluates arrangements in which there is a general partner or managing member to determine whether consolidation is appropriate. Unconsolidated investments where we have the ability to exercise significant influence over the operating and financial policies of the respective investee are accounted for using the equity method of accounting; those that are not consolidated or accounted for using the equity method of accounting are accounted for under equity security or fair value accounting. For the investments accounted for under the equity method, the Company records its investment in non-consolidated affiliates and the portion of income or loss in equity in income of non-consolidated affiliates. The Company periodically evaluates these investments for impairment. 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 variable interest entity (“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. The Company has a limited interest in a partnerships that own and operate solar renewable energy projects which are accounted for as an equity method investment. 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. This type of entity meets the criteria of a VIE; however, the Company is not the primary beneficiary of the entity, as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. While the partnership agreement allows 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. The Company’s investment in the unconsolidated VIEs are carried in other assets on the consolidated balance sheet and the Company’s unfunded capital and other commitments related to the unconsolidated VIEs are carried in other liabilities on the consolidated balance sheet. The Company’s maximum exposure to loss from unconsolidated VIEs includes the investment recorded on the Company’s consolidated balance sheet, net of unfunded capital commitments and any impairment recognized, and 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 losses from this investment is remote, the maximum exposure was determined by assuming a scenario where related tax credits were recaptured. The following table provides a summary of the tax-advantaged VIEs that the Company has not consolidated as of December 31, 2021 and 2020: 2021 2020 Investment carrying amount $ 708 $ — Maximum exposure to loss 4,100 879 Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (ASC) 805, Business Combinations. On April 1, 2020, the Company acquired 100% of the equity interests of JAM, a registered investment advisor based in Rocky Mount, North Carolina. Goodwill, intangible assets and contingent consideration of $1.8 million, $2.3 million and $2.1 million, respectively, were recorded by the Company as a result of this transaction. Intangible assets are almost entirely comprised of customer relationships that are being amortized using the straight-line method over 15 years. As a result of this acquisition, the Bank's wholly owned subsidiary Live Oak Private Wealth, expects to broaden service offerings to existing high-net-worth individuals and families, attract new clients from an expanded footprint and benefit from economies of scale. The acquisition did not materially impact the Company's financial position, results of operations or cash flows. Given the impact of the above acquisition was immaterial to the Company and its results of operations, additional disclosures have not been included 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 significant operating segments: Banking and Fintech, as discussed more fully in Note 16. Segments. In determining the appropriateness of segment definition, the Company considers the criteria of ASC 280, Segment Reporting 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, restricted stock unit awards with market price conditions and income taxes. 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, 2021 and 2020. Certificates of Deposit with other Banks Certificates of deposit with other banks have maturities ranging from February 2022 through November 2023 and bear interest at rates ranging from 0.20% to 3.55%. All investments in certificates of deposit are with FDIC insured financial institutions and none exceed the maximum insurable amount of $250 thousand. Investments 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. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading 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 for the periods presented is classified as available-for-sale. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sales of securities are typically recorded on the trade date and are determined using the specific identification method. Other Other investments are generally non-marketable equity investments and are included in the other assets line in the consolidated balance sheets while the impact is largely reflected in the equity method investments income (loss) and equity security investments gains (losses), net line items on the consolidated statements of income Investments – Equity Securities Investments 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 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%, or 5% for limited partnerships or limited liability companies in certain circumstances, or circumstances where there is ability to exercise significant influence over 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. The Company’s investment in Apiture, Inc. (“Apiture”) is accounted for under the HLBV method. Investments 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. Impairment Available for Sale Securities In 2020 and 2021, after adoption of ASC 326, discussed more fully under Allowance for Credit Losses (“ACL”) 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. In 2019, prior to adoption of ASC 326 At each reporting date, the Company evaluates each investment in a loss position for other than temporary impairment. The Company evaluates declines in market value below cost for debt securities by assessing the likelihood of selling the security prior to recovering its cost basis. If the Company intends to sell the debt security or it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its cost basis, the Company will write down the security to fair value with the full charge recorded in earnings. If the Company does not intend to sell the debt security and it is not more-likely-than-not that the Company will be required to sell the debt security prior to recovery, the security will not be considered other-than-temporarily impaired unless there are credit losses associated with the security. In that case: (1) where credit losses exist, the portion of the impairment related to those credit losses is recognized in earnings; (2) any remaining difference between the fair value and the cost basis should be recognized as part of other comprehensive income. Equity Securities For equity securities not accounted for at fair value, any impairment is recognized with the full charge recorded in earnings. To determine whether such equity security is impaired, the Company considers various indicators of impairment, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. 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 $3.9 million and $4.3 million at December 31, 2021 and 2020, respectively. Loans and Leases Fair Value Option Management evaluates retained participating interests in government guaranteed loans for the fair value option election. Those loans for which the fair value option is elected are measured at fair value and are classified as either Held for Sale and Held for Investment, as outlined below. 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. The historical credit loss adjustment is estimated using a discounted cash flow (“DCF”) methodology for each loan which incorporates measurements of (i) probability of default (“PD”), which is the likelihood a loan or lease will stop performing, (ii) loss given default (“LGD”), which is the expected loss rate for loans or leases in default, (iii) prepayments, (iv) the estimated outstanding exposure at default (“EAD”), and (v) 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 Expected historical losses are calculated as the product of PD, LGD, and EAD. Expected historical losses are discounted using the loan or lease EIR, adjusted for prepayments. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In the first quarter of 2021, the Company chose not to elect the fair value for any retained participating interests arising from new government guaranteed loan sales. Held for Sale Management designates loans as held for sale based on its intent to sell guaranteed portions in the SBA and USDA Secondary Market and unguaranteed portions to participant banks and credit unions. Salability requirements of the guaranteed portion include, but are not limited to, full disbursement of the loan commitment amount. Loans originated and intended for sale are carried at either fair value, if the fair value option is elected, or the lower of cost or estimated fair value based on a loan-by-loan election. The cost basis of loans held for sale includes the deferral of loan origination fees and costs. Deferred fees and costs are accreted and amortized for non-fair value loans classified held for sale until the sale occurs. At loan settlement, 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. As part of the Company’s management of the loans held in the portfolio, the Company will occasionally transfer loans from held for investment to held for sale. Upon transfer, any associated allowance for credit losses on loans and lease loss is released and the carrying value of the loans is adjusted to the estimated fair value. The loans are subsequently accounted for at the lower of cost or fair value, or fair value if elected, with valuation changes recorded in noninterest income. Gains or losses on the sale of these loans are also recorded in noninterest income. In certain circumstances, loans designated as held for sale may later be transferred back to the held for investment loan and lease portfolio based upon the Company’s intent and ability to hold the loans for the foreseeable future. If not carried at fair value, the Company transfers these loans to loans and leases held for investment at the lower of cost or fair value and establishes a related allowance for credit losses on loans and leases. 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 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, and any fair value fluctuations in associated exchange-traded interest rate futures contracts. The following summarizes the activity pertaining to loans held for sale for the years ended December 31, 2021 and 2020: 2021 2020 Balance at beginning of year $ 1,175,470 $ 966,447 Originations 1,364,168 1,183,152 Proceeds from sale (1,092,222 ) (875,393 ) Gain on sale of loans 67,280 49,473 Principal collections, net of deferred fees and costs (98,354 ) 50,431 Non-cash transfers, net (299,823 ) (198,640 ) Balance at end of period $ 1,116,519 $ 1,175,470 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 reported, based on a loan by loan election, at either fair value or their outstanding principal amount adjusted for any charge-offs, the allowance for credit losses on loans and leases, and any deferred fees or costs on originated loans and leases and unamortized premium or discount on purchased loans. For such loans not carried at fair value, loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related 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. 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 those designated as troubled debt restructurings, nonaccrual, non-marketable, and risk grade 5 or worse as defined by internal risk rating metrics. Interest income on loans and leases is recognized as earned on a daily accrual basis. The accrual of interest on loans and leases is discontinued when principal or interest is past due 90 days or the loan or lease is determined to be impaired. Impaired loans and leases, or portions thereof, are charged off when deemed uncollectible. Equipment Leasing The Company purchases 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. 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. 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 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 amount may not be fully recoverable. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value. The Company determines fair value based upon the condition of the rental equipment and the projected net cash flows from its rental and sale considering current market conditions. During the year ended December 31, 2021 the Company recognized impairment expense of $904 thousand related to rental equipment. No impairment expense was recorded for the years ended December 31, 2020 and 2019. Allowance for Credit Losses On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC 326”) along with its amendments, which replaces the incurred loss impairment methodology in current standards with the current expected credit loss methodology (“CECL”) and requires consideration of a broader range of information to determine credit loss estimates. ASC 326 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration is different under ASC 326. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net increase to retained earnings of $822 thousand, comprised of a $1.3 million decrease in the allowance for credit losses combined with a $499 thousand increase in reserve on unfunded commitments, as of January 1, 2020 for the cumulative effect of adopting ASC 326. Allowance for Credit Losses – Loans and Leases Held for Investment (ASC 326) 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. 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 EAD, and the |
Securities
Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 2. Securities Available-for-Sale The carrying amount of securities and their approximate fair values are reflected in the following table: December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value US government agencies $ 10,444 $ 193 $ — $ 10,637 Mortgage-backed securities 887,302 14,246 12,209 889,339 Municipal bonds 3,246 333 3 3,576 Other debt securities 2,500 — — 2,500 Total $ 903,492 $ 14,772 $ 12,212 $ 906,052 December 31, 2020 US government agencies $ 15,440 $ 479 $ — $ 15,919 Mortgage-backed securities 703,092 28,302 940 730,454 Municipal bonds 3,267 462 4 3,725 Total $ 721,799 $ 29,243 $ 944 $ 750,098 During the year ended December 31, 2021, one security totaling $5.0 million matured and twelve securities totaling $33.1 million were paid out. During the year ended December 31, 2020, four securities totaling $12.0 million matured and twenty 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, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 479,322 $ 8,503 $ 110,633 $ 3,706 $ 589,955 $ 12,209 Municipal bonds — — 96 3 96 3 Total $ 479,322 $ 8,503 $ 110,729 $ 3,709 $ 590,051 $ 12,212 Less Than 12 Months 12 Months or More Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 156,904 $ 917 $ 1,853 $ 23 $ 158,757 $ 940 Municipal bonds — — 96 4 96 4 Total $ 156,904 $ 917 $ 1,949 $ 27 $ 158,853 $ 944 Management evaluates available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. The evaluation considers the extent to which the security’s fair value is less than cost, the financial condition and near-term prospects of the issuer, and intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At December 31, 2021, there were thirty-one mortgage-backed securities and one municipal bond in unrealized loss positions for greater than 12 months. There were one hundred forty-two mortgage-backed securities in unrealized loss positions for less than 12 months. Unrealized losses at December 31, 2020 consisted of three mortgage-backed securities and one municipal bond for greater than 12 months and twenty-nine mortgage-backed securities 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 marketability of the securities or the issuer’s ability to honor redemption obligations, and the Company has the intent and ability to hold these securities for a sufficient period of time to recover unrealized losses, 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, 2021 and 2020 were backed by U.S. government sponsored enterprises (“GSEs”). The following is a summary of investment securities by maturity: December 31, 2021 Available-for-sale Amortized cost Fair value US government agencies Within one year $ 7,507 $ 7,614 Five to ten years 2,937 3,023 Total 10,444 10,637 Mortgage-backed securities Within one year 202 202 One to five years 20,316 21,168 Five to ten years 298,860 305,190 After 10 years 567,924 562,779 Total 887,302 889,339 Municipal bonds After 10 years 3,246 3,576 Total 3,246 3,576 Other debt securities Within one year 500 500 One to five years 2,000 2,000 Total 2,500 2,500 Total $ 903,492 $ 906,052 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, 2021 or 2020. Other Other 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, 2021 and 2020 is reflected in the following table: 2021 2020 Amount Ownership % Amount Ownership % Apiture, Inc. $ 52,323 39.1 % $ 53,344 39.1 % Canapi Ventures SBIC Fund, LP (1) (3) 19,431 2.9 % 14,843 3.1 % Canapi Ventures Fund, LP (2) (3) 2,402 1.5 % 1,686 1.5 % Other fintech investments in private companies (4) 5,330 Various 1,634 Various Other (5) 4,664 Various 6,421 Various Total $ 84,150 $ 77,928 (1) Includes unfunded commitments of $6.8 million and $11.3 million as of December 31, 2021 and 2020, respectively. (2) Includes unfunded commitments of $770 thousand and $1.0 million as of December 31, 2021 and 2020, respectively. (3) Investee is accounted for under equity method due to the Company's participation as an investment advisor. (4) Other fintech investments include Finxact, Inc., Payrailz, LLC. and Kwipped, Inc. (5) Includes unfunded commitments of $2.9 million at December 31, 2020. There were no unfunded commitments as of December 31, 2021. 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, 2021 and for the years ended December 31, 2021, 2020 and 2019 is reflected in the following table: Cumulative Adjustments 2021 2020 2019 Carrying value (1) $ 63,321 $ 31,146 $ 15,525 Carrying value adjustments: Impairment $ — — — — Upward changes for observable prices (2) 48,469 30,197 14,558 3,628 Downward changes for observable prices (86 ) — — — Net upward change $ 48,383 $ 30,197 $ 14,558 $ 3,628 (1) Includes $2.8 million, $522 thousand and $650 thousand in unfunded commitments for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Excludes $13.9 million in realized cash gains for the sale of an investment for the year ended December 31, 2021. |
Loans and Leases Held for Inves
Loans and Leases Held for Investment and Credit Quality | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans and Leases Held for Investment and Credit Quality | Note 3. 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 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, the associated unguaranteed exposure, 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 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, the associated unguaranteed exposure, 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, 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. 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. Each loan and lease is assigned a risk grade during the origination and closing process based on the Credit Quality Indicators described below. 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, 2021 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 Cost (1) Loans Accounted for Under the Fair Value Option (2) Total Loans and Leases Commercial & Industrial Small Business Banking $ 1,103,915 $ 13,171 $ 7,320 $ 20,491 $ 1,124,406 $ 248,806 $ 1,373,212 Specialty Lending 875,367 — — — 875,367 64,525 939,892 Paycheck Protection Program 266,893 68 1,414 1,482 268,375 — 268,375 Total 2,246,175 13,239 8,734 21,973 2,268,148 313,331 2,581,479 Construction & Development Small Business Banking 275,786 — 1,366 1,366 277,152 — 277,152 Specialty Lending 82,014 — — — 82,014 — 82,014 Total 357,800 — 1,366 1,366 359,166 — 359,166 Commercial Real Estate Small Business Banking 1,577,765 5,802 10,761 16,563 1,594,328 250,856 1,845,184 Specialty Lending 285,373 — 2,315 2,315 287,688 19,481 307,169 Total 1,863,138 5,802 13,076 18,878 1,882,016 270,337 2,152,353 Commercial Land Small Business Banking 362,881 7,399 2,055 9,454 372,335 61,533 433,868 Total 362,881 7,399 2,055 9,454 372,335 61,533 433,868 Total $ 4,829,994 $ 26,440 $ 25,231 $ 51,671 $ 4,881,665 $ 645,201 $ 5,526,866 Net deferred fees $ (5,604 ) Loan and Leases, Net $ 5,521,262 December 31, 2020 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 Cost (1) Loans Accounted for Under the Fair Value Option (2) Total Loans and Leases Commercial & Industrial Small Business Banking $ 695,090 $ 10,341 $ 10,765 $ 21,106 $ 716,196 $ 308,341 $ 1,024,537 Specialty Lending 341,952 337 — 337 342,289 71,090 413,379 Paycheck Protection Program 1,528,180 — — — 1,528,180 — 1,528,180 Total 2,565,222 10,678 10,765 21,443 2,586,665 379,431 2,966,096 Construction & Development Small Business Banking 183,087 — — — 183,087 — 183,087 Specialty Lending 88,890 — 3,723 3,723 92,613 — 92,613 Total 271,977 — 3,723 3,723 275,700 — 275,700 Commercial Real Estate Small Business Banking 987,358 3,730 8,609 12,339 999,697 321,352 1,321,049 Specialty Lending 148,264 5,374 1,693 7,067 155,331 20,317 175,648 Total 1,135,622 9,104 10,302 19,406 1,155,028 341,669 1,496,697 Commercial Land Small Business Banking 329,638 — 2,243 2,243 331,881 94,274 426,155 Total 329,638 — 2,243 2,243 331,881 94,274 426,155 Total $ 4,302,459 $ 19,782 $ 27,033 $ 46,815 $ 4,349,274 $ 815,374 $ 5,164,648 Net deferred fees $ (19,718 ) Loan and Leases, Net $ 5,144,930 (1) Total loans and leases include $2.07 billion of U.S. government guaranteed loans as of December 31, 2021, of which $16.4 million is greater than 90 days past due, $18.4 million is 30-89 days past due and $2.04 billion is included in current loans and leases as presented above. As of December 31, 2020, total loans and leases include $2.61 billion of U.S. government guaranteed loans, of which $12.9 million is greater than 90 days past due, $16.7 million is 30-89 days past due and $2.58 billion is included in current loans and leases as presented above. (2) The Company measures the carrying value of the retained portion of loans sold at fair value under ASC 825-10. 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. An independent review of the loan and lease portfolio is performed annually by an external firm. The goal of the Bank’s annual review of each borrower’s financial performance is to validate the adequacy of the risk grade assigned. 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, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (1,2) Small Business Banking Risk Grades 1 - 4 $ 1,051,775 $ 853,250 $ 522,407 $ 285,397 $ 188,858 $ 116,645 $ 46,356 $ 1,771 $ 3,066,459 Risk Grade 5 7,838 19,651 65,715 60,615 37,661 13,933 5,066 195 210,674 Risk Grades 6 - 8 2,517 8,667 27,696 14,545 14,193 21,239 1,457 774 91,088 Total 1,062,130 881,568 615,818 360,557 240,712 151,817 52,879 2,740 3,368,221 Specialty Lending Risk Grades 1 - 4 644,851 238,409 73,978 42,452 38,703 — 133,889 1,816 1,174,098 Risk Grade 5 2,250 17,677 5,497 10,415 17,104 — 2,953 848 56,744 Risk Grades 6 - 8 — 17 3,166 8,654 — 2,315 75 14,227 Total 647,101 256,103 82,641 61,521 55,807 2,315 136,917 2,664 1,245,069 Paycheck Protection Program Risk Grades 1 - 4 204,803 63,572 — — — — — — 268,375 Risk Grade 5 — — — — — — — — — Risk Grades 6 - 8 — — — — — — — — — Total 204,803 63,572 — — — — — — 268,375 Total $ 1,914,034 $ 1,201,243 $ 698,459 $ 422,078 $ 296,519 $ 154,132 $ 189,796 $ 5,404 $ 4,881,665 Term Loans and Leases Amortized Cost Basis by Origination Year December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (1,2) Small Business Banking Risk Grades 1 - 4 $ 724,506 $ 475,593 $ 287,712 $ 230,653 $ 159,877 $ 59,065 $ 32,373 $ 1,392 $ 1,971,171 Risk Grade 5 16,080 59,595 62,857 44,478 11,203 3,666 2,131 212 200,222 Risk Grades 6 - 8 81 8,976 14,639 15,090 11,424 8,418 631 209 59,468 Total 740,667 544,164 365,208 290,221 182,504 71,149 35,135 1,813 2,230,861 Specialty Lending Risk Grades 1 - 4 296,537 96,553 48,930 40,626 — — 55,229 632 538,507 Risk Grade 5 7,672 6,379 2,752 18,718 — — 1,711 — 37,232 Risk Grades 6 - 8 — — 8,635 — 5,782 — 77 14,494 Total 304,209 102,932 60,317 59,344 5,782 — 57,017 632 590,233 Paycheck Protection Program Risk Grades 1 - 4 1,528,180 — — — — — — — 1,528,180 Risk Grade 5 — — — — — — — — — Risk Grades 6 - 8 — — — — — — — — — Total 1,528,180 — — — — — — — 1,528,180 Total $ 2,573,056 $ 647,096 $ 425,525 $ 349,565 $ 188,286 $ 71,149 $ 92,152 $ 2,445 $ 4,349,274 (1) Total loans and leases include $2.07 billion of U.S. government guaranteed loans as of December 31, 2021, segregated by risk grade as follows: Risk Grades 1 – 4 = $1.88 billion, Risk Grade 5 = $134.2 million, Risk Grades 6 – 8 = $63.0 million. As of December 31, 2020, total loans and leases include $2.61 billion of U.S. government guaranteed loans, segregated by risk grade as follows: Risk Grades 1 – 4 = $2.44 billion, Risk Grade 5 = $128.0 million, Risk Grades 6 – 8 = $40.9 million. (2) Excludes $645.2 million and $815.4 million of loans accounted for under the fair value option as of December 31, 2021 and December 31, 2020, respectively. Nonaccrual Loans and Leases As of December 31, 2021 and December 31, 2020 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, 2021 and 2020. Nonaccrual loans and leases are generally included in the held for investment portfolio. Accrued interest receivable on loans totaled $31.0 million and $41.0 million at December 31, 2021 and December 31, 2020, respectively, and is included in other assets in the accompanying consolidated balance sheets. Nonaccrual loans and leases as of December 31, 2021 and December 31, 2020 are as follows: December 31, 2021 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 16,911 $ 13,981 $ 2,930 $ — Payroll Protection Program 1,482 1,482 — — Total 18,393 15,463 2,930 — Construction & Development Small Business Banking 3,884 1,201 2,683 — Total 3,884 1,201 2,683 — Commercial Real Estate Small Business Banking 12,410 5,226 7,184 5,169 Specialty Lending 2,315 507 1,808 1,808 Total 14,725 5,733 8,992 6,977 Commercial Land Small Business Banking 5,531 4,148 1,383 — Total 5,531 4,148 1,383 — Total $ 42,533 $ 26,545 $ 15,988 $ 6,977 December 31, 2020 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 17,992 $ 12,046 $ 5,946 $ — Total 17,992 12,046 5,946 — Construction & Development Specialty Lending 3,723 — 3,723 3,723 Total 3,723 — 3,723 3,723 Commercial Real Estate Small Business Banking 15,085 6,725 8,360 5,327 Specialty Lending 7,068 5,533 1,535 — Total 22,153 12,258 9,895 5,327 Commercial Land Small Business Banking 2,242 1,728 514 — Total 2,242 1,728 514 — Total $ 46,110 $ 26,032 $ 20,078 $ 9,050 (1) Excludes nonaccrual loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. 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, 2021 and 2020: Total Collateral Dependent Loans Unguaranteed Portion December 31, 2021 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 698 $ 7,475 $ — $ 152 $ 449 $ — $ 235 Total 698 7,475 — 152 449 — 235 Construction & Development Specialty Lending 3,858 — — 2,657 — — 57 Total 3,858 — — 2,657 — — 57 Commercial Real Estate Small Business Banking 5,172 700 64 4,038 14 13 65 Specialty Lending 512 — — 6 — — — Total 5,684 700 64 4,044 14 13 65 Commercial Land Small Business Banking 5,541 — — 1,393 — — 601 Total 5,541 — — 1,393 — — 601 Total $ 15,781 $ 8,175 $ 64 $ 8,246 $ 463 $ 13 $ 958 Total Collateral Dependent Loans Unguaranteed Portion December 31, 2020 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 1,279 $ 9,440 $ 197 $ 531 $ 4,077 $ 66 $ 1,281 Total 1,279 9,440 197 531 4,077 66 1,281 Construction & Development Specialty Lending 3,767 — — 3,767 — — — Total 3,767 — — 3,767 — — — Commercial Real Estate Small Business Banking 11,568 258 332 6,873 9 335 175 Specialty Lending 13,196 — — 7,663 — — 23 Total 24,764 258 332 14,536 9 335 198 Commercial Land Small Business Banking 2,263 — — 534 — — 302 Total 2,263 — — 534 — — 302 Total $ 32,073 $ 9,698 $ 529 $ 19,368 $ 4,086 $ 401 $ 1,781 Allowance for Credit Losses – Loans and Leases On January 1, 2020, the Company adopted ASC 326. Upon adoption, 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 under ASC 326 and, for prior periods, ASC 405 and ASC 310. 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, 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 December 31, 2020 Beginning Balance, prior to adoption of ASC 326 $ 15,757 $ 2,732 $ 8,427 $ 1,318 $ 28,234 Impact of adopting ASC 326 (4,561 ) 1,131 1,916 193 (1,321 ) Charge offs (4,401 ) — (10,347 ) (644 ) (15,392 ) Recoveries 84 — 28 15 127 Provision 20,062 1,800 18,124 672 40,658 Ending Balance $ 26,941 $ 5,663 $ 18,148 $ 1,554 $ 52,306 December 31, 2019 Beginning Balance $ 6,524 $ 2,042 $ 5,259 $ 607 $ 14,432 Charge offs (887 ) — (615 ) (173 ) (1,675 ) Recoveries 246 — 18 1 265 Provision 9,874 690 3,765 883 15,212 Ending Balance $ 15,757 $ 2,732 $ 8,427 $ 1,318 $ 28,234 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. During the year ended December 31, 2020, increases to the ACL were primarily related to the severity of forecasted unemployment rates and ongoing developments as a result of 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 loan and lease growth and net charge-offs during the period. The following table presents the average recorded investment of impaired loans and leases for each period presented and interest income recognized during the period in which the loans and leases were considered impaired. December 31, 2019 Average Balance Interest Income Recognized Commercial & Industrial Small Business Banking $ 10,809 $ 137 Specialty Lending 2,249 59 Total 13,058 196 Construction & Development Small Business Banking 722 15 Specialty Lending — — Total 722 15 Commercial Real Estate Small Business Banking 22,996 632 Specialty Lending 1,855 10 Total 24,851 642 Commercial Land Small Business Banking 17,427 771 Total 17,427 771 Total $ 56,058 $ 1,624 The following table represent the types of TDRs that were made during the periods presented: December 31, 2021 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans 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 extend amortization and a rate concession TDR. (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. December 31, 2020 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 6 $ 1,895 — $ — 1 $ 170 7 $ 2,065 Specialty Lending — — — — 2 423 — — 2 423 Total — — 6 1,895 2 423 1 170 9 2,488 Construction & Development Small Business Banking — — — — 1 1,787 — — 1 1,787 Total — — — — 1 1,787 — — 1 1,787 Commercial Real Estate Small Business Banking — — 2 3,738 — — — — 2 3,738 Specialty Lending — — 1 3,627 — — 2 12,219 3 15,846 Total — — 3 7,365 — — 2 12,219 5 19,584 Commercial Land Small Business Banking — — — — 1 4,865 — — 1 4,865 Total — — — — 1 4,865 — — 1 4,865 Total — $ — 9 $ 9,260 4 $ 7,075 3 $ 12,389 16 $ 28,724 (1) Includes one small business banking interest only and rate concession TDR ($170 thousand), and two specialty lending interest only and rate concession TDRs ($12.2 million). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. December 31, 2019 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Commercial & Industrial Small Business Banking 1 $ 348 — $ — — $ — — $ — 1 $ 348 Total 1 348 — — — — — — 1 348 Commercial Real Estate Small Business Banking — — 1 1,841 — — 1 259 2 2,100 Total — — 1 1,841 — — 1 259 2 2,100 Total 1 $ 348 1 $ 1,841 — $ — 1 $ 259 3 $ 2,448 (1) Includes one payment deferral and rate concession TDR ($259 thousand). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. Concessions made to improve a loan and lease’s performance have varying degrees of success. One TDR that was modified within the twelve months ended December 31, 2021 subsequently defaulted during the twelve months ended December 31, 2021. The TDR that defaulted was a Commercial Real Estate Small Business Banking loan that had previously been modified for a payment deferral and had a recorded investment of $50 thousand at December 31, 2021. No TDRs that were modified within the twelve months ended December 31, 2020 subsequently defaulted during the twelve months ended December 31, 2020. One TDR that was modified within the twelve months ended December 31, 2019 subsequently defaulted during the twelve months ended December 31, 2019. The TDR default was a commercial real estate healthcare loan that was previously modified for payment deferral and had a recorded investment of $1.8 million at December 31, 2019. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 4. Leases Lessor Equipment Leasing The Company purchases 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 accounts receivable for such leases are as follows: As of December 31, 2021 2020 Gross direct finance lease payments receivable $ 7,333 $ 10,629 Less - unearned interest (998 ) (1,685 ) Net investment in direct financing leases $ 6,335 $ 8,944 Future minimum lease payments receivable under direct finance leases are as follows: As of December 31, 2021 Amount 2022 $ 2,495 2023 2,102 2024 1,524 2025 1,095 2026 117 Total $ 7,333 Interest income of $669 thousand, $838 thousand and $991 thousand was recognized in the twelve months ended December 31, 2021, 2020 and 2019, respectively. Operating Leases As of December 31, 2021 and 2020, the Company had a net investment of $123.9 million and $134.5 million, respectively, in assets included in premises and equipment that are subject to operating leases. Of the net investment, the gross balance of the assets was $163.4 million and $164.3 million and accumulated depreciation was $39.5 million and $29.8 million as of December 31, 2021 and 2020, respectively. Depreciation expense recognized on these assets for the twelve months ended December 31, 2021, 2020 and 2019 was $9.7 million, $9.8 million and $9.7 million, respectively. Lease income of $9.5 million, $9.5 million and $9.4 million was recognized in the twelve months ended December 31, 2021, 2020 and 2019, respectively. A maturity analysis of future minimum lease payments receivable under non-cancelable operating leases is as follows: As of December 31, 2021 Amount 2022 $ 9,057 2023 9,075 2024 8,808 2025 8,935 2026 8,923 Thereafter 22,252 Total $ 67,050 Lessee Lease Arrangements The Company has operating leases for real property, land, copiers and other equipment. These leases have remaining lease terms of 1 year to 25 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 ROU asset and lease liability. The Company has a finance lease for fitness equipment, and it has a remaining lease term of approximately 0.92 years. There are no options to extend or terminate this lease. The components of lease expense are as follows: December 31, 2021 December 31, 2020 Operating lease cost $ 635 $ 787 Short-term lease cost 96 87 Finance lease cost: Amortization of right-of-use assets 3 5 Interest expense on lease liabilities — — Sublease income — (29 ) Total net lease cost $ 734 $ 850 Supplemental disclosure for the consolidated balance sheet related to finance leases is as follows: December 31, 2021 December 31, 2020 Operating lease right-of-use asset $ 2,228 $ 2,522 Operating lease liability 2,436 2,756 Finance lease right-of-use asset 4 9 Finance lease liability 4 9 The weighted average remaining lease term and weighted average discount rate for leases are as follows: December 31, 2021 December 31, 2020 Weighted average remaining lease term (years) Operating leases 12.35 12.21 Finance lease 0.92 1.92 Weighted average discount rate Operating leases 2.74 % 2.87 % Finance lease 3.10 % 3.10 % A maturity analysis of operating and finance lease liabilities is as follows: As of December 31, 2021 Operating Leases Finance Leases 2022 $ 871 $ 4 2023 618 — 2024 237 — 2025 78 — 2026 43 — Thereafter 1,159 — Total lease payments 3,006 4 Less: imputed interest (570 ) — Total lease liabilities $ 2,436 $ 4 In December 2021, the Company entered into a lease agreement to rent real property for a term of 91 months with $1.1 million of future expected lease payments. There is an option to renew the lease for an additional 5 year period. As of December 31, 2021, the lease had not commenced. |
Servicing Assets
Servicing Assets | 12 Months Ended |
Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | |
Servicing Assets | Note 5. Servicing Assets Loans serviced for others are not included in the accompanying consolidated balance sheet. The unpaid principal balances of loans serviced for others requiring recognition of a servicing asset were $2.29 billion, $2.21 billion and $2.26 billion at December 31, 2021, 2020 and 2019, respectively. The unpaid principal balance for all loans serviced for others was $3.30 billion, $3.21 billion and $2.97 billion at December 31, 2021, 2020 and 2019, respectively. The following summarizes the activity pertaining to servicing rights: 2021 2020 Balance at beginning of period $ 33,918 $ 35,365 Additions, net 11,382 8,511 Fair value changes: Due to changes in valuation inputs or assumptions (982 ) (1,049 ) Decay due to increases in principal paydowns or runoff (10,744 ) (8,909 ) Balance at end of period $ 33,574 $ 33,918 The fair value of servicing rights was determined using a weighted average discount rate of 13.2% on December 31, 2021 and 11.7% on December 31, 2020. The fair value of servicing rights was determined using a weighted average prepayment speed of 16.2% on December 31, 2021 and 18.8% on December 31, 2020, with the actual rate depending on the stratification of the specific right. Changes to fair value are reported in loan servicing asset revaluation within the consolidated statements of income. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the fair value of servicing rights. Generally, as interest rates rise on variable rate loans, loan prepayments increase due to an increase in refinance activity, which results in a decrease in the fair value of servicing assets, however, weakening economic conditions or significant declines in interest rates can also increase loan prepayment activity. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different time. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 6. Premises and Equipment Components of Premises and Equipment Components of premises and equipment and total accumulated depreciation at December 31, 2021 and 2020 are as follows: 2021 2020 Buildings $ 54,746 $ 54,718 Land improvements 5,180 5,180 Furniture and equipment 18,683 18,032 Computers and software 8,399 6,001 Leasehold improvements 8,106 8,068 Land 8,650 8,650 Transportation 49,766 30,496 Solar panels 163,391 164,295 Deposits on fixed assets 712 20,124 Premises and equipment, total 317,633 315,564 Less accumulated depreciation (77,437 ) (56,297 ) Premises and equipment, net of depreciation $ 240,196 $ 259,267 Deposits on fixed assets at December 31, 2021 consist primarily of software development costs and campus improvement costs. Depreciation expense for the years ended December 31, 2021, 2020 and 2019 amounted to $21.2 million, $21.6 million and $19.3 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits Liabilities Balance Sheet Reported Amounts [Abstract] | |
Deposits | Note 7. Deposits The types of deposits at December 31, 2021 and 2020 are: 2021 2020 Noninterest-bearing deposits $ 89,279 $ 75,287 Interest-bearing deposits: Interest-bearing checking — 250,060 Money market 105,628 117,010 Savings 3,507,354 2,081,561 Time deposits 3,409,783 3,188,910 Total 7,022,765 5,637,541 Total deposits $ 7,112,044 $ 5,712,828 The aggregate amount of time deposits in denominations of $250 thousand or more at December 31, 2021 and 2020 was approximately $564.8 million and $644.0 million, respectively. At December 31, 2021 the scheduled maturities of total time deposits are as follows: Year Amount 2022 $ 1,918,843 2023 451,722 2024 271,522 2025 194,826 2026 193,730 Thereafter 379,140 Total $ 3,409,783 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 8. Borrowings Total outstanding borrowings consisted of the following: December 31, 2021 December 31, 2020 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. $ 42,734 $ — In April 2020, the Company entered into the Federal Reserve Bank's Paycheck Protection Program Liquidity Facility ("PPPLF"). Under the PPPLF, advances must be secured by pledges of loans to small businesses originated by the Company under the U.S. Small Business Administration's 7(a) loan program titled the Paycheck Protection Program. The PPPLF accrues interest at thirty-five basis points and matures at various dates equal to the maturity date of the PPPLF collateral pledged to secure the advance, ranging from April 6, 2022 to May 5, 2026, and will be accelerated on and to the extent of any 7(a) loan forgiveness reimbursement by the SBA for any PPPLF collateral or the date of purchase by the SBA from the borrower of any PPPLF collateral. On the maturity date of each advance, the Company shall repay the advance plus accrued interest. This $267.6 million borrowing was fully advanced at December 31, 2021. 267,550 1,527,596 In September 2020, the Company renewed a $50.0 million revolving line of credit originally issued in 2017 with a third party correspondent bank. Subsequently on October 20, 2021, the Company renewed and increased the revolving line of credit from $50.0 million to $100.0 million and increased the term from 12 months to 36 months. The line of credit is unsecured and accrues interest at 30-day SOFR plus 1.25%, with an interest rate cap of 4.25% and an interest rate floor of 2.75%. Payments are interest only with all principal and accrued interest due at maturity on October 10, 2024. 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 $750 thousand loan origination fee upon signing of the Note that will be amortized into interest expense over the life of the loan. The Company made an advance of $8.0 million on December 20, 2021 and there is $92.0 million of available credit remaining at December 31, 2021. 8,000 14,488 Other long term debt (1) 5 9 Total borrowings $ 318,289 $ 1,542,093 (1) Includes finance leases. The Company may purchase federal funds through unsecured federal funds lines of credit with various correspondent banks, which totaled $167.5 million as of December 31, 2021 and 2020. 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 balances on the lines of credit as of December 31, 2021 or 2020. The Company has entered into a repurchase agreement with a third party for up to $5.0 million as of December 31, 2021 and 2020. 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, 2021 and 2020. 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, 2021 and 2020, there was $2.02 billion and $2.01 billion, respectively, of potential borrowing capacity available under this agreement. There is no collateral pledged and no advances outstanding as of December 31, 2021 or 2020. 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 $2.44 billion and $2.22 billion as of December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the Company had approximately $2.04 billion and $1.77 billion, respectively, in borrowing capacity available under these arrangements with no outstanding balance as of December 31, 2021 or 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The components of income tax expense for the years ended December 31 are as follows: 2021 2020 2019 Current income tax expense: Federal $ 12,774 $ 2,071 $ 1,339 State 6,211 3,222 2,625 Total current tax expense 18,985 5,293 3,964 Deferred income tax expense (benefit): Federal 22,886 (12,946 ) 3,031 State 1,922 (4,501 ) (1,564 ) Total deferred tax expense (benefit) 24,808 (17,447 ) 1,467 Income tax expense (benefit), as reported $ 43,793 $ (12,154 ) $ 5,431 Reported income tax expense (benefit) differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% in 2021, 2020 and 2019 to income before income taxes as follows: 2021 2020 2019 Income tax expense computed at the statutory rate $ 44,266 $ 9,952 $ 4,928 State income tax expense (benefit) , net of federal 6,426 (1,009 ) 838 Stock-based compensation expense (4,689 ) (17,489 ) 443 Decrease in taxes due to investment tax credit (3,392 ) — (1,561 ) Net operating loss carryback arising from CARES Act — (3,732 ) — Other 1,182 124 783 Total income tax expense (benefit) $ 43,793 $ (12,154 ) $ 5,431 Components of deferred tax assets and liabilities are as follows: 2021 2020 Deferred tax assets: Mark to market on loans held for sale $ 24,213 $ 25,107 Allowance for loan and lease losses 19,918 19,311 Stock-based compensation expense 3,720 1,805 Deferred loan fees and costs, net 3,388 6,535 Accrued expenses 2,247 2,487 Operating lease liabilities 584 661 Goodwill and intangibles 71 278 Tax credit carryforwards — 21,892 Other 1,474 1,036 Total deferred tax assets 55,615 79,112 Deferred tax liabilities: Premises and equipment 41,038 39,847 Net unrealized gains on equity securities 12,282 4,386 Net unrealized losses on equity method investments 10,991 11,417 Unguaranteed loan discount 6,171 12,612 Net unrealized gains on securities available for sale 614 6,792 Operating lease right-of-use assets 534 605 Other — 843 Total deferred tax liabilities 71,630 76,502 Net deferred tax (liability) asset $ (16,015 ) $ 2,610 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. The Company does not have any uncertain tax positions and does not have any interest and penalties recorded in the income statement or balance sheet for the years ended December 31, 2021, 2020 and 2019. 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, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 10. 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 Level 2 Level 3 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 : 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 sale: The fair values of loans held for sale are determined by discounting estimated cash flows using interest rates approximating prevailing market rates for similar loans adjusted to reflect the inherent credit risk. Due to the nature of the valuation inputs, loans held for sale are classified within Level 3 of the valuation hierarchy. Loans held for investment: The fair values of loans held for investment are typically determined based on discounted cash flow analyses using market-based interest rate spreads. Discounted cash flow analyses are adjusted, as appropriate, to reflect current market conditions and borrower-specific credit risk. If the loan is collateral dependent, the fair value is determined 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. 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, servicing costs, market 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. Option expiration dates are modified to account for estimates of actual life relative to stated expiration. 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 2021 2020 Balance at beginning of period $ 908 $ 570 Issuances 229 203 Net gains on derivative instruments 1,088 168 Settlements (553 ) (33 ) Balance at end of period $ 1,672 $ 908 The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. December 31, 2021 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US government agencies $ 10,637 $ — $ 10,637 $ — Mortgage-backed securities 889,339 — 889,339 — Municipal bonds 1 3,576 — 3,480 96 Other debt securities 2,500 — 2,500 — Loans held for sale 25,310 — — 25,310 Loans held for investment 645,201 — — 645,201 Servicing assets 2 33,574 — — 33,574 Mutual fund 2,379 — 2,379 — Equity warrant assets 1,672 — — 1,672 Total assets at fair value $ 1,614,188 $ — $ 908,335 $ 705,853 December 31, 2020 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US government agencies $ 15,919 $ — $ 15,919 $ — Mortgage-backed securities 730,454 — 730,454 — Municipal bonds 1 3,725 — 3,629 96 Loans held for sale 36,111 — — 36,111 Loans held for investment 815,374 — — 815,374 Servicing assets 2 33,918 — — 33,918 Mutual fund 2,351 — 2,351 — Equity warrant assets 908 — — 908 Total assets at fair value $ 1,638,760 $ — $ 752,353 $ 886,407 1 During the year ended December 31, 2021, the Company recorded a principal paydown of $1 thousand and a fair value adjustment gain of $1 thousand. During the year ended December 31, 2020, the Company recorded a fair value adjustment gain of $4 thousand. 2 See Note 5 for a rollforward of recurring Level 3 fair values for servicing assets. Fair Value Option The Company has 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 on loans accounted for under the fair value option is recognized in loans and fees on loans on the Company’s consolidated statements of income. Beginning in the first quarter of 2021, the Company chose not to elect fair value for all retained participating interests arising from new government guaranteed loan sales. 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 will continue to be measured as such. 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, 2021 and December 31, 2020. December 31, 2021 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 sale $ 25,310 $ 26,831 $ (1,521 ) $ — $ — $ — $ — $ — $ — Loans held for investment 645,201 666,066 (20,865 ) 38,262 42,841 (4,579 ) 24,057 25,633 (1,576 ) $ 670,511 $ 692,897 $ (22,386 ) $ 38,262 $ 42,841 $ (4,579 ) $ 24,057 $ 25,633 $ (1,576 ) December 31, 2020 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 sale $ 36,111 $ 38,135 $ (2,024 ) $ — $ — $ — $ — $ — $ — Loans held for investment 815,374 845,082 (29,708 ) 35,499 39,318 (3,819 ) 25,532 28,741 (3,209 ) $ 851,485 $ 883,217 $ (31,732 ) $ 35,499 $ 39,318 $ (3,819 ) $ 25,532 $ 28,741 $ (3,209 ) The following table presents the net gains (losses) from changes in fair value. Twelve Months Ended December 31, Gains (Losses) on Loans Accounted for under the Fair Value Option 2021 2020 Loans held for sale $ 502 $ 232 Loans held for investment 3,755 (13,315 ) $ 4,257 $ (13,083 ) Losses related to borrower-specific credit risk were $1.5 million and $5.6 million for the twelve months ended December 31, 2021 and 2020, 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 2021 2020 Balance at beginning of period $ 36,111 $ 16,198 Repurchases & Issuances — 35,275 Fair value changes 502 232 Sales — (6,082 ) Settlements (11,303 ) (9,512 ) Balance at end of period $ 25,310 $ 36,111 Twelve Months Ended December 31, Loans held for investment 2021 2020 Balance at beginning of period $ 815,374 $ 824,520 Repurchases & Issuances 37,159 173,280 Fair value changes 3,755 (13,315 ) Settlements (211,087 ) (169,111 ) Balance at end of period $ 645,201 $ 815,374 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 nonrecurring Level 3. Long-lived asset held for sale: Long-lived assets held for sale are carried at the lower of carrying value or fair value less selling costs. Fair value is typically based upon an independent market valuation of the property which is then adjusted for the cost related to the sell the property. Long-lived assets held for sale with an independent market valuation are generally classified as nonrecurring Level 3, given the lack of observable market prices for identical assets and market discounts applied to market prices. Long-lived assets with agreed upon sales prices are classified as Level 1. Equity security investments with a non-readily determinable fair value: Equity security investments are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. When an observable price change in an orderly transaction occurs for an identical investment of the same issuer, the investment is generally classified as nonrecurring Level 1 within the valuation hierarchy. When an observable price change in an orderly transaction occurs for a similar investment of the same issuer, the investment is generally classified as nonrecurring Level 2 within the valuation hierarchy. The tables below present the recorded amount of assets and liabilities measured at fair value on a non-recurring basis. December 31, 2021 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 1,567 $ — $ — $ 1,567 Foreclosed assets 620 — — 620 Total assets at fair value $ 2,187 $ — $ — $ 2,187 December 31, 2020 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 4,159 $ — $ — $ 4,159 Foreclosed assets 4,155 — — 4,155 Long-lived asset held for sale 8,874 8,874 — — Equity security investment with a non-readily determinable fair value 25,367 — 25,367 — Total assets at fair value $ 42,555 $ 8,874 $ 25,367 $ 8,314 Level 3 Analysis For Level 3 assets and liabilities measured at fair value as of December 31, 2021 and December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2021 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Recurring fair value Municipal bond $ 96 Discounted expected cash flows Discount rate Prepayment speed 4.8% 5.0% Loans held for sale $ 25,310 Discounted expected cash flows Discount rate Prepayment speed 6.2% to 21.9% WAVG 17.4% Loans held for investment $ 645,201 Discounted expected cash flows Discounted appraisals Loss rate Discount rate Prepayment speed Appraisal adjustments 0.0% to 70.2% (WAVG 1.5%) 6.2% to 21.9% WAVG 17.4% 10.0% to 85.0% Equity warrant assets $ 1,672 Black-Scholes option pricing model Volatility Risk-free interest rate Marketability discount Remaining life 26.2-88.2% 1.26% to 1.52% 20.0% 4 - 10 years Non-recurring fair value Collateral-dependent loans $ 1,567 Discounted appraisals Appraisal adjustments (1) 10.0% to 99.0% Foreclosed assets $ 620 Discounted appraisals Appraisal adjustments (1) 9.0% to 10.0% December 31, 2020 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Recurring fair value Municipal bond $ 96 Discounted expected cash flows Discount rate Prepayment speed 4.3% 5.0% Loans held for sale $ 36,111 Discounted expected cash flows Discount rate Prepayment speed 4.2% to 18.5% WAVG 19.0% Loans held for investment $ 815,374 Discounted expected cash flows Discounted appraisals Loss rate Discount rate Prepayment speed Appraisal adjustments 0.0% to 73.2% (WAVG 1.5%) 4.2% to 18.5% WAVG 19.0% 10.0% to 83.0% Equity warrant assets $ 908 Black-Scholes option pricing model Volatility Risk-free interest rate Marketability discount Remaining life 26.5-87.1% 0.36% to 0.93% 20.0% 5 - 10 years Non-recurring fair value Collateral-dependent loans $ 4,159 Discounted appraisals Appraisal adjustments (1) 10.0% to 83.0% Foreclosed assets $ 4,155 Discounted appraisals Appraisal adjustments (1) 10.0% to 20.0% (1) 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 represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: December 31, 2021 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 $ 187,203 $ 187,203 $ — $ — $ 187,203 Federal funds sold 16,547 16,547 — — 16,547 Certificates of deposit with other banks 4,750 4,930 — — 4,930 Loans held for sale 1,091,209 — — 1,197,307 1,197,307 Loans and leases held for investment, net of allowance for credit losses on loans and leases 4,812,477 — — 4,958,875 4,958,875 Financial liabilities Deposits 7,112,044 — 6,942,512 — 6,942,512 Borrowings 318,289 — — 312,036 312,036 December 31, 2020 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 $ 297,167 $ 297,167 $ — $ — $ 297,167 Federal funds sold 21,153 21,153 — — 21,153 Certificates of deposit with other banks 6,500 6,906 — — 6,906 Loans held for sale 1,139,359 — — 1,235,122 1,235,122 Loans and leases held for investment, net of allowance for credit losses on loans and leases 4,277,250 — — 4,366,489 4,366,489 Financial liabilities Deposits 5,712,828 — 5,711,781 — 5,711,781 Borrowings 1,542,093 — — 1,542,171 1,542,171 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Litigation In the normal course of business, the Company is involved in various legal proceedings. Management believes that the outcome of such proceedings will not materially affect the financial position, results of operations or cash flows of the Company. On March 12, 2021, a purported class action was filed against the Company in the United States District Court for the Eastern District of North Carolina, Joseph McAlear, individually and on behalf of all others similarly situated v. Live Oak Bancshares, Inc. et al. The complaint alleges the existence of an agreement between the Company, nCino, Inc. and Apiture, LLC in which those companies purportedly sought to restrain the mobility of employees in violation of antitrust laws by agreeing not to solicit or hire each other’s employees. The complaint alleges violations of Section 1 of the federal Sherman Act (15 U.S.C. § 1) and violations of Sections 75-1 and 75-2 of the North Carolina General Statutes. The plaintiff seeks monetary damages, including treble damages, entitlement to restitution, disgorgement, attorneys’ fees, and pre- and post-judgment interest. On October 12, 2021, the Company reached an agreement to settle the case with a proposed class of all persons (with certain exclusions) employed by the Company or its wholly owned subsidiary, Live Oak Banking Company, Apiture, Inc. or nCino, Inc. in North Carolina at any time from January 27, 2017, through March 31, 2021. In the agreement, the Company agreed to pay $3.9 million which was included in other liabilities as of December 31, 2021. On October 13, 2021, the plaintiff filed a motion for preliminary approval of the settlement, and the court granted such preliminary approval by order entered on November 23, 2021. The court set a hearing for April 25, 2022, at which final approval of the settlement will be considered. 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, 2021 December 31, 2020 Commitments to extend credit $ 2,634,387 $ 2,054,910 Standby letters of credit 10,753 22,913 Total unfunded off-balance sheet credit risk $ 2,645,140 $ 2,077,823 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. As of December 31, 2021 and 2020, the Company had unfunded commitments to provide capital contributions for on-balance sheet instruments in the amount of $10.4 million and $15.8 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 $15.0 million, except for thirty relationships that have a retained unguaranteed exposure of $748.3 million of which $356.7 million of the unguaranteed exposure has been disbursed. Additionally, the Company has future minimum lease payments receivable under non-cancelable operating leases totaling $67.1 million, of which $20.6 million is due from one relationship. The Company from time-to-time may have cash and cash equivalents on deposit with financial institutions that exceed federally-insured limits. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Benefit Plans | Note 12. 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, 2021, 2020 and 2019 amounted to $4.4 million, $3.9 million and $3.0 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 (“2014 ESPP”) on October 8, 2014. On May 24, 2016, the 2014 ESPP was amended and the Amended and Restated Employee Stock Purchase Plan became effective (“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 $118 thousand, $92 thousand and $77 thousand for fiscal years 2021, 2020 and 2019, respectively. Stock Option Plans On March 20, 2015, the Company adopted 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 and May 15, 2018, the 2015 Omnibus Stock Incentive Plan was amended and restated 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. Options or restricted shares granted under the Amended and Restated 2015 Omnibus Stock Incentive Plan (the “Plan”) expire no more than 10 years from date of grant. Exercise prices under the 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. Options vest over a minimum of three years from 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, 2021, 2020 and 2019 the Company recognized $1.3 million, $1.5 million and $1.6 million in compensation expense for stock options, respectively. Stock option activity under the Plan during the year ended December 31, 2021 is summarized below. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2020 1,877,762 $ 11.78 Exercised (767,988 ) 9.89 Forfeited (47,093 ) 16.31 Outstanding at December 31, 2021 1,062,681 $ 12.94 3.26 $ 79,010,231 Exercisable at December 31, 2021 679,831 $ 11.72 3.05 $ 51,374,053 The following is a summary of non-vested stock option activity for the Company for the years ended December 31, 2021, 2020 and 2019. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2018 1,839,830 $ 4.60 Vested (288,394 ) 4.20 Forfeited (66,040 ) 3.50 Non-vested at December 31, 2019 1,485,396 4.73 Vested (387,867 ) 3.05 Forfeited (74,893 ) 4.52 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 The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $46.3 million, $15.9 million and $785 thousand, respectively. At December 31, 2021, unrecognized compensation costs relating to stock options amounted to $803 thousand which will be recognized over a weighted average period of 0.77 years. There were no options granted in 2021, 2020 or 2019. 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 vest 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, during 2019, 164,828 restricted stock units were granted to eligible employees and outside directors at a weighted average grant date fair value of $17.00, and 500,000 restricted stock units had market price conditions or non-market-related performance criteria restrictions at a weighted average grant date fair value of $8.81. During 2020, 586,132 restricted stock units were granted to eligible employees and outside directors at a weighted average grant date fair value of $17.78. The vesting of these grants was time based and had no market price conditions. During 2021, 1,329,508 restricted stock units were granted to eligible employees and outside directors at a weighted average grant date fair value of $58.19, 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 also 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. For the outstanding Market RSUs as of December 31, 2020, the market price conditions ranged from $45.00 to $55.00 per share. The non-market-related performance criteria had all been satisfied as of December 31, 2020. 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, 2021. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 889,839 $ 18.94 Granted 1,329,508 58.19 Vested (182,272 ) 18.77 Forfeited (129,562 ) 21.77 Non-vested at December 31, 2021 1,907,513 $ 46.12 During 2020 and 2019, the Company granted 586,132 and 164,828 RSUs, respectively. The weighted average grant date fair value for RSUs granted in 2020 and 2019 were $17.78 and $17.00, respectively. For the years ended December 31, 2021, 2020 and 2019 the Company recognized $11.4 million, $3.5 million and $2.2 million in compensation expense for RSUs, respectively. At December 31, 2021, unrecognized compensation costs relating to RSUs amounted to $77.3 million which will be recognized over a weighted average period of 4.69 years. The following is a summary of non-vested Market RSU stock activity for the Company for the year ended December 31, 2021. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 583,500 $ 8.38 1 Vested (575,500 ) 7.62 Forfeited (8,000 ) 6.76 Non-vested at December 31, 2021 — $ — 1 Adjusted for modification in 2019, as described below. During 2019, the Company granted 500,000 Market RSUs with a weighted average grant date fair value of $8.81, as modified. 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. Related to the 500,000 Market RSUs granted on February 11, 2019, the share price simulation was based on the Cox, Ross & Rubinstein option pricing methodology for a period of 10.0 years. The implied term of the restricted stock ranges from 4.5 to 5.8 years On February 11, 2019, 75,000 Market RSUs granted on May 14, 2018 to one employee were modified to lengthen the vesting term from 7 to 10 years and change the target stock price from $48.00 to a range of $35.00 to $48.00 per share for at least twenty (20) consecutive trading days. Additionally, 410,000 Market RSUs granted on August 10, 2018, to eleven employees were modified to lengthen the vesting term from 7 to 10 years and change the amount of Market RSUs that vest at various target stock prices to 20% per tier. As a result of the modification, the Company recognized additional compensation expense of $543 thousand for the year ended December 31, 2019. For the years ended December 31, 2021, 2020 and 2019, the Company recognized $4.2 million, $9.7 million and $7.9 million respectively, 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 consecutive days. The remaining expense of $3.7 million was fully recognized due to the accelerated vesting. For the year ended December 31, 2020, 2,513,233 Market RSUs met the performance stock price conditions for the $34.00, $35.00, $38.00 and $40.00 stock price for twenty consecutive days. The remaining expense of $2.4 million was fully recognized due to the accelerated vesting. There were no remaining Market RSUs at year end December 31, 2021. Employee Incentive Compensation |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Note 13. 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 8.00 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. As discussed in Note 1. Organization and Summary of Significant Accounting Policies, the Company recorded a cumulative effect increase to retained earnings totaling $822 thousand on January 1, 2020 as a result of the adoption of ASC 326. The Company did not elect the federal banking agencies’ transition option that allowed banking organizations to phase in the day one effects of ASC 326 on their regulatory capital ratios over multiple years. Federal bank regulatory agencies have issued an interim final rule that permits banks to neutralize the regulatory capital effects of participating in the PPPLF and clarify that PPP loans have a zero percent risk weight under applicable risk-based capital rules. Specifically, a bank may exclude all PPP loans pledged as collateral to the PPPLF from its average total consolidated assets for the purposes of calculating its leverage ratio, while PPP loans that are not pledged as collateral to the PPPLF will be included. Accordingly, the Company’s PPP loans are excluded from the calculation of the leverage ratio as of December 31, 2021 and 2020. 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, 2021, 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, 2021 and 2020, are presented in the following table. Actual Minimum Capital Requirement Minimum To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio Consolidated - December 31, 2021 Common Equity Tier 1 (to Risk-Weighted Assets) $ 689,367 12.38 % $ 250,619 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 753,691 13.53 % $ 445,544 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 689,367 12.38 % $ 334,158 6.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 689,367 8.87 % $ 310,902 4.00 % N/A N/A Bank - December 31, 2021 Common Equity Tier 1 (to Risk-Weighted Assets) $ 640,652 12.05 % $ 239,201 4.50 % $ 345,512 6.50 % Total Capital (to Risk-Weighted Assets) $ 704,976 13.26 % $ 425,246 8.00 % $ 531,557 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 640,652 12.05 % $ 318,934 6.00 % $ 425,246 8.00 % Tier 1 Capital (to Average Assets) $ 640,652 8.32 % $ 307,931 4.00 % $ 384,914 5.00 % Consolidated - December 31, 2020 Common Equity Tier 1 (to Risk-Weighted Assets) $ 521,568 12.15 % $ 193,172 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 574,621 13.39 % $ 343,417 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 521,568 12.15 % $ 257,563 6.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 521,568 8.40 % $ 248,417 4.00 % N/A N/A Bank - December 31, 2020 Common Equity Tier 1 (to Risk-Weighted Assets) $ 470,069 11.25 % $ 188,012 4.50 % $ 271,573 6.50 % Total Capital (to Risk-Weighted Assets) $ 522,305 12.50 % $ 334,243 8.00 % $ 417,804 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 470,069 11.25 % $ 250,683 6.00 % $ 334,243 8.00 % Tier 1 Capital (to Average Assets) $ 470,069 7.60 % $ 247,288 4.00 % $ 309,110 5.00 % |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Note 14. Transactions with Related Parties The Company has entered into transactions with its directors, officers, significant shareholders, their affiliates, and equity method investments (“related parties”). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal risk or present other unfavorable features. During the year ended December 31, 2021, $1.9 million of related party loans were originated with $2.1 million repayments, resulting in $1.9 million of related party loans as of December 31, 2021. During the year ended December 31, 2020, $2.1 million of related party loans were originated with no repayments resulting in $2.1 million of related party loans as of December 31, 2020. Deposits from related parties held by the Company as of December 31, 2021 and 2020 amounted to $40.3 million and $40.6 million, respectively. The Company has an investment in Finxact, Inc. (“Finxact”), a developer of core processing software and services for the banking industry, which is included in other assets in the consolidated balance sheets with a balance of $5.1 million and $1.4 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company held approximately 15.1% of Finxact on a fully diluted basis in the form of both voting and non-voting equity, including approximately 5.0% voting control. This investment is accounted for as an equity method investment due to the Company's ability to exercise significant influence over financial and operating policies of Finxact. Directors and officers of the Company and their affiliates collectively own approximately 6.4% of Finxact on a fully diluted basis in the form of non-voting equity as of December 31, 2021. During 2021, 2020 and 2019, the Company paid $1.6 million, $1.1 million and $24 thousand, respectively, for core processor services. The Company has an investment in Payrailz, LLC (“Payrailz”), an entity that provides digital payment services and solutions to the financial services industry, which is included in other assets in the consolidated balance sheets with no balance as of December 31, 2021 and 2020. As of December 31, 2021, the Company holds approximately 13.6% of Payrailz on a fully diluted basis in the form of voting equity. This investment is accounted for as an equity method investment due to the Company's ability to exercise significant influence over financial and operating policies of Payrailz. Certain officers and directors of the Company collectively own approximately 3.7% of Payrailz on a fully diluted basis in the form of voting equity as of December 31, 2021. No payments were made for the year ended December 31, 2021 and 2020. During 2019, the Company paid $250 thousand for digital payment services. The Bank’s digital banking investment in Apiture is included in other assets in the consolidated balance sheets and had a balance of $52.3 million and $53.3 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company holds approximately 32.5% of Apiture on a fully diluted basis in the form of voting equity. This investment is accounted for as an equity method investment due to the Company's ability to exercise significant influence over financial and operating policies of Apiture. During the years ended December 31, 2021, 2020 and 2019, the Company paid $1.2 million, $377 thousand and $524 thousand, respectively, for professional services. During 2021, 2020 and 2019, the Company recognized income of $601 thousand, $782 thousand and $446 thousand, respectively, for shared services and rent. The Company has an investment in Canapi Ventures Fund, L.P. (“The Fund”), an investment fund which centers around early to growth stage financial technology companies. During 2021 and 2020, $237 thousand and $507 thousand of the original $1.8 million commitment was invested, respectively. The Fund is included in other assets in the consolidated balance sheets with a balance of $2.4 million and $1.7 million as of December 31, 2021 and 2020, respectively. The Fund is accounted for as an equity method investment. The Company has an investment in Canapi Ventures SBIC Fund, L.P. (“The SBIC Fund”), an investment fund which centers around early to growth stage financial technology companies. During 2021 and 2020, $4.5 million and $3.4 million of the original $15.2 million commitment was invested, respectively. The SBIC Fund is included in other assets in the consolidated balance sheets with a balance of $19.4 million and $14.8 million as of December 31, 2021 and 2020, respectively. The SBIC Fund is accounted for as an equity method investment. During the years ended December 31, 2021 and 2020, the Company invested $1.3 million and $2.5 million, respectively, in Cape Fear Collective Impact Opportunity 1, LLC (“Cape Fear Collective”), which serves as a special purpose vehicle to purchase a portfolio of residential homes available for sale in the community. This investment is included in other assets in the consolidated balance sheet with a balance of $4.0 million and $2.5 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company holds approximately 99.0% of Cape Fear Collective’s membership units, however, these units do not provide the Company with substantive participating rights to make financial or operating decisions that are made in the ordinary course of business. Accordingly, this investment is accounted for as an equity method investment. During the year ended December 31, 2020, the Company committed to invest $3.9 million in Green Sun Tenant LLC (“Green Sun”), a solar income tax credit project. During the years ended December 31, 2021 and 2020, $2.9 million and $980 thousand of the commitment was invested, respectively. This investment is included in other assets in the consolidated balance sheet with a balance of $708 thousand and $3.9 million as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company holds approximately 99.0% of Green Sun. This investment is an unconsolidated VIE accounted for as an equity method investment. See Note 1. Organization and Summary of Significant Accounting Policies |
Significant Equity Method Inves
Significant Equity Method Investments | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Significant Equity Method Investments | Note 15. Significant Equity Method Investments In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, the Company must assess whether any of its equity method investments are significant equity method investments. In evaluating the significance of these investments, the Company performed the income test, the investment test and the asset test described in S-X 3-05 and S-X 1-02(w). Rule 3-09 of Regulation S-X requires separate audited financial statements of an equity method investee in an annual report if either the income or investment test exceeds 20%. As of December 31, 2021, 2020 and 2019, none of our investments were considered a significant subsidiary under Rule 3-09. Rule 4-08(g) of Regulation S-X requires summarized financial information in an annual report if any of the three tests exceeds 10%. Under the income test, the Company’s proportionate share of its equity method investees' aggregated net losses exceeded the applicable threshold of 10% and is accordingly required to provide summarized financial information for these investees for all periods presented in this Form 10-K. The following table provides summarized balance sheet information for the Company’s combined equity method investments as of December 31, 2021 and 2020. The Company’s equity method investments are included in the other assets line on the consolidated balance sheet and are largely concentrated in new or emerging financial service technology companies. As of December 31, Balance sheet data 2021 2020 Current assets $ 90,629 $ 67,843 Noncurrent assets 776,171 285,018 Total assets $ 866,800 $ 352,861 Current liabilities $ 37,730 $ 64,019 Noncurrent liabilities 14,052 17,151 Total liabilities 51,782 81,170 Equity interests 815,018 271,691 Total liabilities and equity $ 866,800 $ 352,861 The following table provides summarized income statement information for the Company’s combined equity method investments for the years ended December 31, 2021, 2020 and 2019. Years ended December 31, Summary of operations 2021 2020 2019 Total revenues $ 79,016 $ 68,038 $ 56,928 Net income (loss) 215,792 (68,406 ) (30,367 ) |
Segments
Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Note 16. 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, 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 expense (benefit) 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 As of and for the year ended December 31, 2020 Interest income $ 288,305 $ — $ 103 $ 288,408 Interest expense 93,313 — 372 93,685 Net interest income 194,992 — (269 ) 194,723 Provision for loan and lease credit losses 40,658 — — 40,658 Noninterest income 77,512 6,567 1,921 86,000 Noninterest expense 181,555 5,510 5,611 192,676 Income tax (benefit) expense (7,171 ) 2,989 (7,972 ) (12,154 ) Net income (loss) $ 57,462 $ (1,932 ) $ 4,013 $ 59,543 Total assets $ 7,767,013 $ 83,946 $ 21,344 $ 7,872,303 As of and for the year ended December 31, 2019 Interest income $ 227,776 $ 30 $ 174 $ 227,980 Interest expense 88,052 — (154 ) 87,898 Net interest income 139,724 30 328 140,082 Provision for loan and lease credit losses 15,067 — 145 15,212 Noninterest income 64,034 (2,436 ) 1,921 63,519 Noninterest expense 152,227 7,078 5,619 164,924 Income tax expense (benefit) 6,803 (1,218 ) (154 ) 5,431 Net income (loss) $ 29,661 $ (8,266 ) $ (3,361 ) $ 18,034 Total assets $ 4,724,537 $ 82,355 $ 5,936 $ 4,812,828 |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | Note 17. 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, 2021 2020 Assets Cash and cash equivalents $ 10,635 $ 11,209 Investment in subsidiaries 723,803 543,740 Other assets 40,149 30,816 Total assets $ 774,587 $ 585,765 Liabilities and Shareholders' Equity Borrowings $ 50,734 $ 14,488 Other liabilities 8,720 3,427 Total liabilities 59,454 17,915 Shareholders' equity: Common stock 312,294 310,619 Retained earnings 400,893 235,724 Accumulated other comprehensive income 1,946 21,507 Total equity 715,133 567,850 Total liabilities & shareholders' equity $ 774,587 $ 585,765 Statements of Income Years ended December 31, 2021 2020 2019 Interest income $ 25 $ 91 $ 236 Interest expense 1,309 372 — Net interest (loss) income (1,284 ) (281 ) 236 Noninterest income: Other noninterest income 716 252 140 Total noninterest income 716 252 140 Noninterest expense: Salaries and employee benefits 5,120 17,250 12,408 Professional services expense 679 750 825 Renewable energy tax credit investment impairment — — 602 Other expense 789 1,167 999 Total noninterest expense 6,588 19,167 14,834 Net loss before equity in undistributed income of subsidiaries (7,156 ) (19,196 ) (14,458 ) Income tax benefit (1,615 ) (7,785 ) (27 ) Net loss (5,541 ) (11,411 ) (14,431 ) Equity in undistributed income of subsidiaries in excess of dividends from subsidiaries 172,536 70,954 32,465 Net income attributable to Live Oak Bancshares, Inc. $ 166,995 $ 59,543 $ 18,034 Statements of Cash Flows Years ended December 31, 2021 2020 2019 Cash flows from operating activities Net income $ 166,995 $ 59,543 $ 18,034 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries in excess of dividends of subsidiaries (172,536 ) (70,954 ) (32,465 ) Equity in subsidiary tax withholding related to vesting of restricted stock and other 2,679 43,507 — Deferred income tax 30,070 1,163 (790 ) Renewable energy tax credit investment impairment — — 602 Stock option based compensation expense 1,379 1,594 1,723 Restricted stock expense 15,572 13,146 10,025 Business combination contingent consideration fair value adjustments 99 163 — Net change in other assets (23,388 ) (6,706 ) 7,100 Net change in other liabilities (10,821 ) (525 ) 1,417 Net cash provided by operating activities 10,049 40,931 5,646 Cash flows from investing activities Capital investment in subsidiaries (26,407 ) (6,354 ) (1,109 ) Business combination, net of cash acquired — (895 ) — Net cash used in investing activities (26,407 ) (7,249 ) (1,109 ) Cash flows from financing activities Proceeds from borrowings 57,675 70,000 — Repayments of borrowings (21,429 ) (55,512 ) (1,441 ) Stock option exercises 4,158 3,069 508 Employee stock purchase program 670 520 437 Withholding cash issued in lieu of restricted stock and other (19,151 ) (49,229 ) (409 ) Repurchase and retirement of shares (953 ) — — Shareholder dividend distributions (5,186 ) (4,906 ) (4,827 ) Net cash provided by (used in) financing activities 15,784 (36,058 ) (5,732 ) Net change in cash and cash equivalents (574 ) (2,376 ) (1,195 ) Cash and cash equivalents at beginning of year 11,209 13,585 14,780 Cash and cash equivalents at end of year $ 10,635 $ 11,209 $ 13,585 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 18. Subsequent Event The Company has evaluated subsequent events through the date the consolidated financial statements were available to be issued and determined that the following events required disclosure: On February 7, 2022, Fiserv, Inc., (“Fiserv”) announced it had entered into a definitive agreement to acquire Finxact, Inc. (“Finxact”). Live Oak Ventures, Inc., a wholly owned subsidiary of Live Oak Bancshares, Inc., (the “Company”) has an investment in Finxact. Under the terms of the agreement, Fiserv will acquire the ownership interests in Finxact that it does not currently own, including the Company’s interest (the “Transaction”). The closing of the Transaction is subject to customary approvals and closing conditions. If the Transaction is successfully closed, the Company anticipates realizing an estimated pre-tax gain of approximately $115 million On January 27, 2022, the Company entered into an agreement to purchase real estate for a price of $18.3 million. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the consolidated financial statements. If an entity is not a variable interest entity, the Company also evaluates arrangements in which there is a general partner or managing member to determine whether consolidation is appropriate. Unconsolidated investments where we have the ability to exercise significant influence over the operating and financial policies of the respective investee are accounted for using the equity method of accounting; those that are not consolidated or accounted for using the equity method of accounting are accounted for under equity security or fair value accounting. For the investments accounted for under the equity method, the Company records its investment in non-consolidated affiliates and the portion of income or loss in equity in income of non-consolidated affiliates. The Company periodically evaluates these investments for impairment. |
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 variable interest entity (“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. The Company has a limited interest in a partnerships that own and operate solar renewable energy projects which are accounted for as an equity method investment. 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. This type of entity meets the criteria of a VIE; however, the Company is not the primary beneficiary of the entity, as the general partner has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. While the partnership agreement allows 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. The Company’s investment in the unconsolidated VIEs are carried in other assets on the consolidated balance sheet and the Company’s unfunded capital and other commitments related to the unconsolidated VIEs are carried in other liabilities on the consolidated balance sheet. The Company’s maximum exposure to loss from unconsolidated VIEs includes the investment recorded on the Company’s consolidated balance sheet, net of unfunded capital commitments and any impairment recognized, and 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 losses from this investment is remote, the maximum exposure was determined by assuming a scenario where related tax credits were recaptured. The following table provides a summary of the tax-advantaged VIEs that the Company has not consolidated as of December 31, 2021 and 2020: 2021 2020 Investment carrying amount $ 708 $ — Maximum exposure to loss 4,100 879 |
Business Combinations | Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (ASC) 805, Business Combinations. On April 1, 2020, the Company acquired 100% of the equity interests of JAM, a registered investment advisor based in Rocky Mount, North Carolina. Goodwill, intangible assets and contingent consideration of $1.8 million, $2.3 million and $2.1 million, respectively, were recorded by the Company as a result of this transaction. Intangible assets are almost entirely comprised of customer relationships that are being amortized using the straight-line method over 15 years. As a result of this acquisition, the Bank's wholly owned subsidiary Live Oak Private Wealth, expects to broaden service offerings to existing high-net-worth individuals and families, attract new clients from an expanded footprint and benefit from economies of scale. The acquisition did not materially impact the Company's financial position, results of operations or cash flows. Given the impact of the above acquisition was immaterial to the Company and its results of operations, additional disclosures have not been included |
Business Segments | 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 significant operating segments: Banking and Fintech, as discussed more fully in Note 16. Segments. In determining the appropriateness of segment definition, the Company considers the criteria of ASC 280, Segment Reporting |
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, restricted stock unit awards with market price conditions and income taxes. |
Cash and Cash Equivalents | 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, 2021 and 2020. Certificates of Deposit with other Banks Certificates of deposit with other banks have maturities ranging from February 2022 through November 2023 and bear interest at rates ranging from 0.20% to 3.55%. All investments in certificates of deposit are with FDIC insured financial institutions and none exceed the maximum insurable amount of $250 thousand. |
Investments | Investments 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. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held-to-maturity or trading 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 for the periods presented is classified as available-for-sale. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sales of securities are typically recorded on the trade date and are determined using the specific identification method. Other Other investments are generally non-marketable equity investments and are included in the other assets line in the consolidated balance sheets while the impact is largely reflected in the equity method investments income (loss) and equity security investments gains (losses), net line items on the consolidated statements of income Investments – Equity Securities Investments 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 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%, or 5% for limited partnerships or limited liability companies in certain circumstances, or circumstances where there is ability to exercise significant influence over 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. The Company’s investment in Apiture, Inc. (“Apiture”) is accounted for under the HLBV method. Investments 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. Impairment Available for Sale Securities In 2020 and 2021, after adoption of ASC 326, discussed more fully under Allowance for Credit Losses (“ACL”) 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. In 2019, prior to adoption of ASC 326 At each reporting date, the Company evaluates each investment in a loss position for other than temporary impairment. The Company evaluates declines in market value below cost for debt securities by assessing the likelihood of selling the security prior to recovering its cost basis. If the Company intends to sell the debt security or it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its cost basis, the Company will write down the security to fair value with the full charge recorded in earnings. If the Company does not intend to sell the debt security and it is not more-likely-than-not that the Company will be required to sell the debt security prior to recovery, the security will not be considered other-than-temporarily impaired unless there are credit losses associated with the security. In that case: (1) where credit losses exist, the portion of the impairment related to those credit losses is recognized in earnings; (2) any remaining difference between the fair value and the cost basis should be recognized as part of other comprehensive income. Equity Securities For equity securities not accounted for at fair value, any impairment is recognized with the full charge recorded in earnings. To determine whether such equity security is impaired, the Company considers various indicators of impairment, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. 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 $3.9 million and $4.3 million at December 31, 2021 and 2020, respectively. |
Loans and Leases | Loans and Leases Fair Value Option Management evaluates retained participating interests in government guaranteed loans for the fair value option election. Those loans for which the fair value option is elected are measured at fair value and are classified as either Held for Sale and Held for Investment, as outlined below. 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. The historical credit loss adjustment is estimated using a discounted cash flow (“DCF”) methodology for each loan which incorporates measurements of (i) probability of default (“PD”), which is the likelihood a loan or lease will stop performing, (ii) loss given default (“LGD”), which is the expected loss rate for loans or leases in default, (iii) prepayments, (iv) the estimated outstanding exposure at default (“EAD”), and (v) 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 Expected historical losses are calculated as the product of PD, LGD, and EAD. Expected historical losses are discounted using the loan or lease EIR, adjusted for prepayments. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In the first quarter of 2021, the Company chose not to elect the fair value for any retained participating interests arising from new government guaranteed loan sales. Held for Sale Management designates loans as held for sale based on its intent to sell guaranteed portions in the SBA and USDA Secondary Market and unguaranteed portions to participant banks and credit unions. Salability requirements of the guaranteed portion include, but are not limited to, full disbursement of the loan commitment amount. Loans originated and intended for sale are carried at either fair value, if the fair value option is elected, or the lower of cost or estimated fair value based on a loan-by-loan election. The cost basis of loans held for sale includes the deferral of loan origination fees and costs. Deferred fees and costs are accreted and amortized for non-fair value loans classified held for sale until the sale occurs. At loan settlement, 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. As part of the Company’s management of the loans held in the portfolio, the Company will occasionally transfer loans from held for investment to held for sale. Upon transfer, any associated allowance for credit losses on loans and lease loss is released and the carrying value of the loans is adjusted to the estimated fair value. The loans are subsequently accounted for at the lower of cost or fair value, or fair value if elected, with valuation changes recorded in noninterest income. Gains or losses on the sale of these loans are also recorded in noninterest income. In certain circumstances, loans designated as held for sale may later be transferred back to the held for investment loan and lease portfolio based upon the Company’s intent and ability to hold the loans for the foreseeable future. If not carried at fair value, the Company transfers these loans to loans and leases held for investment at the lower of cost or fair value and establishes a related allowance for credit losses on loans and leases. 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 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, and any fair value fluctuations in associated exchange-traded interest rate futures contracts. The following summarizes the activity pertaining to loans held for sale for the years ended December 31, 2021 and 2020: 2021 2020 Balance at beginning of year $ 1,175,470 $ 966,447 Originations 1,364,168 1,183,152 Proceeds from sale (1,092,222 ) (875,393 ) Gain on sale of loans 67,280 49,473 Principal collections, net of deferred fees and costs (98,354 ) 50,431 Non-cash transfers, net (299,823 ) (198,640 ) Balance at end of period $ 1,116,519 $ 1,175,470 |
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 reported, based on a loan by loan election, at either fair value or their outstanding principal amount adjusted for any charge-offs, the allowance for credit losses on loans and leases, and any deferred fees or costs on originated loans and leases and unamortized premium or discount on purchased loans. For such loans not carried at fair value, loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related 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. 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 those designated as troubled debt restructurings, nonaccrual, non-marketable, and risk grade 5 or worse as defined by internal risk rating metrics. Interest income on loans and leases is recognized as earned on a daily accrual basis. The accrual of interest on loans and leases is discontinued when principal or interest is past due 90 days or the loan or lease is determined to be impaired. Impaired loans and leases, or portions thereof, are charged off when deemed uncollectible. |
Equipment Leasing | Equipment Leasing The Company purchases 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. 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. 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 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 amount may not be fully recoverable. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value. The Company determines fair value based upon the condition of the rental equipment and the projected net cash flows from its rental and sale considering current market conditions. During the year ended December 31, 2021 the Company recognized impairment expense of $904 thousand related to rental equipment. No impairment expense was recorded for the years ended December 31, 2020 and 2019. |
Allowance for Credit Losses | Allowance for Credit Losses On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13 “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC 326”) along with its amendments, which replaces the incurred loss impairment methodology in current standards with the current expected credit loss methodology (“CECL”) and requires consideration of a broader range of information to determine credit loss estimates. ASC 326 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration is different under ASC 326. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net increase to retained earnings of $822 thousand, comprised of a $1.3 million decrease in the allowance for credit losses combined with a $499 thousand increase in reserve on unfunded commitments, as of January 1, 2020 for the cumulative effect of adopting ASC 326. Allowance for Credit Losses – Loans and Leases Held for Investment (ASC 326) 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. 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 EAD, and the 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. • Any loan or lease that was restructured with an interest rate concession and now meets 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 TDR 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 effective interest rate used to discount expected cash flows is adjusted for expected prepayments. Past due status of loans and leases is determined based on contractual terms. Loans and leases are placed in nonaccrual status and interest accrual is discontinued if they become 90 days delinquent or there is evidence that the borrower’s ability to make the required payments is impaired. When interest accrual is discontinued, all unpaid accrued interest is reversed. Management has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. A loan or lease is accounted for as a TDR if the Company, for reasons related to the borrower’s financial difficulties, restructures a loan or lease, and grants a concession to the borrower that it would not otherwise grant. A TDR typically involves 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. 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 Credit Losses – Loans and Leases Held for Investment (Prior to adoption of ASC 326) Prior to the adoption of ASC 326 on January 1, 2020, the Company’s methodology for determining the ACL is based on the requirements of GAAP (ASC 405, Liabilities Receivables The ACL policy for pooled loans and leases is governed in accordance with banking regulatory guidance for homogenous pools of non-impaired loans and leases that have similar risk characteristics. The Company follows a consistent and structured approach for assessing the need for reserves within each individual loan and lease pool. Quantitative allowances are calculated based on the loss experience of specific types of loans. Internal and external risk indicators are considered when calculating qualitative allowances. These risk indicators include business type concentrations, vertical maturity, unemployment rates, experience of the bank’s servicing staff, and changes in asset quality. Loans and leases are considered impaired when, based on current information and events, it is probable that the creditor 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’s criteria for individual impairment review and the methods used to estimate specific reserves under prior GAAP is the same as the criteria and methods used for individual evaluation under ASC 326. Allowance for Credit Losses – Off-Balance Sheet Credit Exposures (ASC 326) 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 $739 thousand and $746 thousand at December 31, 2021 and 2020, respectively, and is recorded in other expense in the consolidated income statement and other liabilities in the consolidated balance sheet. |
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. |
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 Computers and software 3-5 Solar panels 20-25 |
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 40 basis points. The fair value of the servicing asset is measured at the discounted present value of the excess servicing spread over the expected life of the related loan using appropriate discount rates and assumptions based on industry statistics for prepayment speeds. Servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets and are carried at fair value. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. 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, an inflation rate, ancillary income, prepayment speeds and default rates and losses, with the prepayment speed being one of the most sensitive assumptions. Capitalized servicing rights are carried at fair value as of the reporting date. Changes to fair value are reported in loan servicing asset revaluation. The Company’s investment in a loan is allocated between the retained portion of the loan, the servicing asset, and the sold portion of the loan on the date the loan is sold. The carrying value of the retained portion of the loan is discounted based in part on the estimates derived from the Company’s comparable nonguaranteed loan sales. 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 Interest Rate Futures Contracts The Company uses exchange-traded interest rate futures contracts to manage interest rate risk that may impact expected gains arising from future secondary market loan sales. Upon entering into a futures contract, the Company is required to pledge to the counterparty an amount of cash equal to a certain percentage of the contract amount, also known as an initial margin deposit. Subsequent payments, known as variation margin, are made or received by the Company each day to settle the daily fluctuations in the fair value of the underlying contract. As of December 31, 2021 and 2020, there were no cash margin balances. Investments in these derivative contracts are subject to risks that can result in a loss of all or part of an investment. Credit risk is considered low because the counterparties are futures exchanges. The Company has not designated any derivative as a hedging instrument under applicable accounting guidance. Changes in fair value of the derivative contracts is recorded as a component of "net gains on sales of loans" on the consolidated statement of income. The Company recognized a loss of $0, $2.6 million and $3.0 million on the derivative contracts for the years ended December 31, 2021, 2020 and 2019, respectively. All derivative contracts were closed out in December 2020 and there was no further activity in 2021. The total notional amount of derivative contracts outstanding was $20.4 million as of December 2019. The fair value of the derivative contracts on the balance sheet date is zero due to the daily cash settlement of contracts. 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 under ASC 815, Derivatives and Hedging 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 will be recognized as increases or decreases to other assets on the consolidated balance sheet 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. The carrying amounts and accumulated amortization of all intangible assets as of December 31, 2021 was $2.0 million and $153 thousand, respectively, while at December 31, 2020 the balances were $2.2 million and $115 thousand, respectively, all as a result of the JAM acquisition discussed earlier under Business Combinations. The Company had no impairment charges related to business combinations in 2021, 2020 or 2019. |
Long-Lived Assets Impairment Evaluation | Long-Lived Assets Impairment Evaluation The Company evaluates the carrying value of long-lived assets for impairment whenever events or circumstances have occurred that would indicate the carrying amount may not be fully recoverable. A key element in determining the recoverability of long-lived assets is the Company’s outlook as to the future market conditions. If the carrying amount is not fully recoverable, an impairment loss is recognized to reduce the carrying amount to fair value. Long-Lived Assets Reclassified to Held for Sale During 2020, the Company determined that retention of two of its aircraft was ineffective in serving the needs of an expanding nationwide customer base. As a result of the determination to sell, the Company began marketing the aircraft for sale and accordingly reclassified them from premises and equipment, net to other assets. The total amount reclassified out of premises and equipment was $19.2 million and after assessment of fair value, $1.3 million of that balance was recognized as impairment expense included in the other expense line item in the 2020 consolidated statement of income. Prior to December 31, 2020, one aircraft was sold for a minimal incremental loss with one remaining in other assets with a carrying amount of $8.9 million at December 31, 2020. In 2021, the remaining held for sale aircraft was sold with a gain of $114 thousand. During 2019, an aircraft previously reclassified to held for sale was sold for a gain of $357 thousand. |
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 for Voting Common Stock and Non-Voting Common Stock, respectively, in the accompanying consolidated balance sheet and statement 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 unless circumstances arise where instances creating the Non-Voting Common Shares are modified in any way that negatively impact rights of holder. 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. During 2021, 982,733 shares of Class B common stock (non-voting) were converted to Class A common stock (voting) in connection with private sales. This conversion decreased the value of Class B common stock (non-voting) and increased the value of Class A common stock (voting) by $10.4 million. During 2020, 1,807,774 shares of Class B common stock (non-voting) were converted to Class A common stock (voting) in connection with private sales. This conversion decreased the value of Class B common stock (non-voting) and increased the value of Class A common stock (voting) by $19.1 million. |
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 on investments that generate investment tax credits. Under this 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. The Company evaluates uncertain tax positions at the end of each reporting period. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefit recognized in the financial statements from any such position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Any interest and/or penalties related to income taxes are reported as a component of 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. |
Stock Compensation Plans | Stock Compensation Plans The Company recognizes compensation cost based on the fair value of the equity or liability 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 the 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 be shared in the net income of the Company. December 31, 2021 2020 2019 Basic earnings per share: Net income $ 166,995 $ 59,543 $ 18,034 Weighted-average basic shares outstanding 43,169,935 40,677,496 40,222,758 Basic earnings per share $ 3.87 $ 1.46 $ 0.45 Diluted earnings per share: Net income, for diluted earnings per share $ 166,995 $ 59,543 $ 18,034 Total weighted-average basic shares outstanding 43,169,935 40,677,496 40,222,758 Add effect of dilutive stock options and restricted stock grants 1,901,369 1,093,754 830,756 Total weighted-average diluted shares outstanding 45,071,304 41,771,250 41,053,514 Diluted earnings per share $ 3.71 $ 1.43 $ 0.44 Anti-dilutive shares 37,401 2,179 1,071,467 |
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, 2021, 2020 and 2019, remaining performance obligations consisted primarily of serviced based revenues for contracts with an original expected length of two years or less. Service based revenues are included in other noninterest 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, investment management and financial planning services provided by Live Oak Private Wealth, and administration of trust assets held by the Company's trust department. 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. Starting in 2021, the Company stopped offering advisory services to new Government Contracting clients. Additionally, the Bank may earn additional revenue under these agreements as clients are awarded government contracts or complete merger & acquisition transactions. 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 two 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. Live Oak Private Wealth’s investment management and financial planning performance obligations are generally satisfied over time. Fees are recognized quarterly based on the quarter-end market value of the managed assets as valued by the custodian of the customer’s assets and the applicable fee rate. Payment is generally received within a quarter of service delivery. The Company does not earn performance-based incentives from investment management and financial planning services. Contracts with customers may be terminated at any time by either party. The Company’s trust department ceased operations in the first quarter of 2019. Trust account administration performance obligations were generally satisfied over time and fees were recognized monthly, based on the month-end market value of assets in fiduciary accounts and the applicable fee rate. Fees were generally received after month-end through a direct charge to customers' accounts. The Company did not earn performance-based incentives from trust account administration services. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period’s consolidated financial statements to place them on a comparable basis with the current year. Net income and shareholders’ equity previously reported were not affected by these reclassifications . |
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 December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies accounting for income taxes by removing specific technical exceptions in ASC 740 related to the incremental approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The Company adopted the standard on January 1, 2021 with no material effect on its consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, “Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)-Clarifying the Interactions between Topic 321, Topic 323, and Topic 815” (“ASU 2020-01”). ASU 2020-01 clarifies the interaction between accounting standards related to equity securities, equity method investments, and certain derivatives including accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the standard on January 1, 2021 with no material effect on its consolidated financial statements. In March 2020, the FASB issued 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. The amendments are effective for and can be adopted by the Company as of March 12, 2020 through December 31, 2022. The Company does not believe this standard will have a material impact on its consolidated financial statements. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table provides a summary of the tax-advantaged VIEs that the Company has not consolidated as of December 31, 2021 and 2020: 2021 2020 Investment carrying amount $ 708 $ — Maximum exposure to loss 4,100 879 |
Schedule of Loans Receivable Held-for-sale | The following summarizes the activity pertaining to loans held for sale for the years ended December 31, 2021 and 2020: 2021 2020 Balance at beginning of year $ 1,175,470 $ 966,447 Originations 1,364,168 1,183,152 Proceeds from sale (1,092,222 ) (875,393 ) Gain on sale of loans 67,280 49,473 Principal collections, net of deferred fees and costs (98,354 ) 50,431 Non-cash transfers, net (299,823 ) (198,640 ) Balance at end of period $ 1,116,519 $ 1,175,470 |
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 Computers and software 3-5 Solar panels 20-25 Components of premises and equipment and total accumulated depreciation at December 31, 2021 and 2020 are as follows: 2021 2020 Buildings $ 54,746 $ 54,718 Land improvements 5,180 5,180 Furniture and equipment 18,683 18,032 Computers and software 8,399 6,001 Leasehold improvements 8,106 8,068 Land 8,650 8,650 Transportation 49,766 30,496 Solar panels 163,391 164,295 Deposits on fixed assets 712 20,124 Premises and equipment, total 317,633 315,564 Less accumulated depreciation (77,437 ) (56,297 ) Premises and equipment, net of depreciation $ 240,196 $ 259,267 |
Schedule of Basic and Diluted Earnings Per Share | December 31, 2021 2020 2019 Basic earnings per share: Net income $ 166,995 $ 59,543 $ 18,034 Weighted-average basic shares outstanding 43,169,935 40,677,496 40,222,758 Basic earnings per share $ 3.87 $ 1.46 $ 0.45 Diluted earnings per share: Net income, for diluted earnings per share $ 166,995 $ 59,543 $ 18,034 Total weighted-average basic shares outstanding 43,169,935 40,677,496 40,222,758 Add effect of dilutive stock options and restricted stock grants 1,901,369 1,093,754 830,756 Total weighted-average diluted shares outstanding 45,071,304 41,771,250 41,053,514 Diluted earnings per share $ 3.71 $ 1.43 $ 0.44 Anti-dilutive shares 37,401 2,179 1,071,467 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Carrying Amount and Fair Value of Securities | Available-for-Sale The carrying amount of securities and their approximate fair values are reflected in the following table: December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value US government agencies $ 10,444 $ 193 $ — $ 10,637 Mortgage-backed securities 887,302 14,246 12,209 889,339 Municipal bonds 3,246 333 3 3,576 Other debt securities 2,500 — — 2,500 Total $ 903,492 $ 14,772 $ 12,212 $ 906,052 December 31, 2020 US government agencies $ 15,440 $ 479 $ — $ 15,919 Mortgage-backed securities 703,092 28,302 940 730,454 Municipal bonds 3,267 462 4 3,725 Total $ 721,799 $ 29,243 $ 944 $ 750,098 |
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, 2021 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 479,322 $ 8,503 $ 110,633 $ 3,706 $ 589,955 $ 12,209 Municipal bonds — — 96 3 96 3 Total $ 479,322 $ 8,503 $ 110,729 $ 3,709 $ 590,051 $ 12,212 Less Than 12 Months 12 Months or More Total December 31, 2020 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 156,904 $ 917 $ 1,853 $ 23 $ 158,757 $ 940 Municipal bonds — — 96 4 96 4 Total $ 156,904 $ 917 $ 1,949 $ 27 $ 158,853 $ 944 |
Summary of Investment Securities by Maturity | The following is a summary of investment securities by maturity: December 31, 2021 Available-for-sale Amortized cost Fair value US government agencies Within one year $ 7,507 $ 7,614 Five to ten years 2,937 3,023 Total 10,444 10,637 Mortgage-backed securities Within one year 202 202 One to five years 20,316 21,168 Five to ten years 298,860 305,190 After 10 years 567,924 562,779 Total 887,302 889,339 Municipal bonds After 10 years 3,246 3,576 Total 3,246 3,576 Other debt securities Within one year 500 500 One to five years 2,000 2,000 Total 2,500 2,500 Total $ 903,492 $ 906,052 |
Summary of Carrying and Ownership Percentage of Each Equity Method Investment | The carrying amount and ownership percentage of each equity method investment at December 31, 2021 and 2020 is reflected in the following table: 2021 2020 Amount Ownership % Amount Ownership % Apiture, Inc. $ 52,323 39.1 % $ 53,344 39.1 % Canapi Ventures SBIC Fund, LP (1) (3) 19,431 2.9 % 14,843 3.1 % Canapi Ventures Fund, LP (2) (3) 2,402 1.5 % 1,686 1.5 % Other fintech investments in private companies (4) 5,330 Various 1,634 Various Other (5) 4,664 Various 6,421 Various Total $ 84,150 $ 77,928 (1) Includes unfunded commitments of $6.8 million and $11.3 million as of December 31, 2021 and 2020, respectively. (2) Includes unfunded commitments of $770 thousand and $1.0 million as of December 31, 2021 and 2020, respectively. (3) Investee is accounted for under equity method due to the Company's participation as an investment advisor. (4) Other fintech investments include Finxact, Inc., Payrailz, LLC. and Kwipped, Inc. (5) Includes unfunded commitments of $2.9 million at December 31, 2020. There were no unfunded commitments as of December 31, 2021. |
Carrying Amount of Company Investments in Non Marketable Equity Securities with No Readily Determinable Fair Value and Amounts Recognized in Earnings on Cumulative Basis | 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, 2021 and for the years ended December 31, 2021, 2020 and 2019 is reflected in the following table: Cumulative Adjustments 2021 2020 2019 Carrying value (1) $ 63,321 $ 31,146 $ 15,525 Carrying value adjustments: Impairment $ — — — — Upward changes for observable prices (2) 48,469 30,197 14,558 3,628 Downward changes for observable prices (86 ) — — — Net upward change $ 48,383 $ 30,197 $ 14,558 $ 3,628 (1) Includes $2.8 million, $522 thousand and $650 thousand in unfunded commitments for the years ended December 31, 2021, 2020 and 2019, respectively. (2) Excludes $13.9 million in realized cash gains for the sale of an investment for the year ended December 31, 2021. |
Loans and Leases Held for Inv_2
Loans and Leases Held for Investment and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 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 Cost (1) Loans Accounted for Under the Fair Value Option (2) Total Loans and Leases Commercial & Industrial Small Business Banking $ 1,103,915 $ 13,171 $ 7,320 $ 20,491 $ 1,124,406 $ 248,806 $ 1,373,212 Specialty Lending 875,367 — — — 875,367 64,525 939,892 Paycheck Protection Program 266,893 68 1,414 1,482 268,375 — 268,375 Total 2,246,175 13,239 8,734 21,973 2,268,148 313,331 2,581,479 Construction & Development Small Business Banking 275,786 — 1,366 1,366 277,152 — 277,152 Specialty Lending 82,014 — — — 82,014 — 82,014 Total 357,800 — 1,366 1,366 359,166 — 359,166 Commercial Real Estate Small Business Banking 1,577,765 5,802 10,761 16,563 1,594,328 250,856 1,845,184 Specialty Lending 285,373 — 2,315 2,315 287,688 19,481 307,169 Total 1,863,138 5,802 13,076 18,878 1,882,016 270,337 2,152,353 Commercial Land Small Business Banking 362,881 7,399 2,055 9,454 372,335 61,533 433,868 Total 362,881 7,399 2,055 9,454 372,335 61,533 433,868 Total $ 4,829,994 $ 26,440 $ 25,231 $ 51,671 $ 4,881,665 $ 645,201 $ 5,526,866 Net deferred fees $ (5,604 ) Loan and Leases, Net $ 5,521,262 December 31, 2020 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 Cost (1) Loans Accounted for Under the Fair Value Option (2) Total Loans and Leases Commercial & Industrial Small Business Banking $ 695,090 $ 10,341 $ 10,765 $ 21,106 $ 716,196 $ 308,341 $ 1,024,537 Specialty Lending 341,952 337 — 337 342,289 71,090 413,379 Paycheck Protection Program 1,528,180 — — — 1,528,180 — 1,528,180 Total 2,565,222 10,678 10,765 21,443 2,586,665 379,431 2,966,096 Construction & Development Small Business Banking 183,087 — — — 183,087 — 183,087 Specialty Lending 88,890 — 3,723 3,723 92,613 — 92,613 Total 271,977 — 3,723 3,723 275,700 — 275,700 Commercial Real Estate Small Business Banking 987,358 3,730 8,609 12,339 999,697 321,352 1,321,049 Specialty Lending 148,264 5,374 1,693 7,067 155,331 20,317 175,648 Total 1,135,622 9,104 10,302 19,406 1,155,028 341,669 1,496,697 Commercial Land Small Business Banking 329,638 — 2,243 2,243 331,881 94,274 426,155 Total 329,638 — 2,243 2,243 331,881 94,274 426,155 Total $ 4,302,459 $ 19,782 $ 27,033 $ 46,815 $ 4,349,274 $ 815,374 $ 5,164,648 Net deferred fees $ (19,718 ) Loan and Leases, Net $ 5,144,930 (1) Total loans and leases include $2.07 billion of U.S. government guaranteed loans as of December 31, 2021, of which $16.4 million is greater than 90 days past due, $18.4 million is 30-89 days past due and $2.04 billion is included in current loans and leases as presented above. As of December 31, 2020, total loans and leases include $2.61 billion of U.S. government guaranteed loans, of which $12.9 million is greater than 90 days past due, $16.7 million is 30-89 days past due and $2.58 billion is included in current loans and leases as presented above. (2) The Company measures the carrying value of the retained portion of loans sold at fair value under ASC 825-10. 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, 2021 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (1,2) Small Business Banking Risk Grades 1 - 4 $ 1,051,775 $ 853,250 $ 522,407 $ 285,397 $ 188,858 $ 116,645 $ 46,356 $ 1,771 $ 3,066,459 Risk Grade 5 7,838 19,651 65,715 60,615 37,661 13,933 5,066 195 210,674 Risk Grades 6 - 8 2,517 8,667 27,696 14,545 14,193 21,239 1,457 774 91,088 Total 1,062,130 881,568 615,818 360,557 240,712 151,817 52,879 2,740 3,368,221 Specialty Lending Risk Grades 1 - 4 644,851 238,409 73,978 42,452 38,703 — 133,889 1,816 1,174,098 Risk Grade 5 2,250 17,677 5,497 10,415 17,104 — 2,953 848 56,744 Risk Grades 6 - 8 — 17 3,166 8,654 — 2,315 75 14,227 Total 647,101 256,103 82,641 61,521 55,807 2,315 136,917 2,664 1,245,069 Paycheck Protection Program Risk Grades 1 - 4 204,803 63,572 — — — — — — 268,375 Risk Grade 5 — — — — — — — — — Risk Grades 6 - 8 — — — — — — — — — Total 204,803 63,572 — — — — — — 268,375 Total $ 1,914,034 $ 1,201,243 $ 698,459 $ 422,078 $ 296,519 $ 154,132 $ 189,796 $ 5,404 $ 4,881,665 Term Loans and Leases Amortized Cost Basis by Origination Year December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total (1,2) Small Business Banking Risk Grades 1 - 4 $ 724,506 $ 475,593 $ 287,712 $ 230,653 $ 159,877 $ 59,065 $ 32,373 $ 1,392 $ 1,971,171 Risk Grade 5 16,080 59,595 62,857 44,478 11,203 3,666 2,131 212 200,222 Risk Grades 6 - 8 81 8,976 14,639 15,090 11,424 8,418 631 209 59,468 Total 740,667 544,164 365,208 290,221 182,504 71,149 35,135 1,813 2,230,861 Specialty Lending Risk Grades 1 - 4 296,537 96,553 48,930 40,626 — — 55,229 632 538,507 Risk Grade 5 7,672 6,379 2,752 18,718 — — 1,711 — 37,232 Risk Grades 6 - 8 — — 8,635 — 5,782 — 77 14,494 Total 304,209 102,932 60,317 59,344 5,782 — 57,017 632 590,233 Paycheck Protection Program Risk Grades 1 - 4 1,528,180 — — — — — — — 1,528,180 Risk Grade 5 — — — — — — — — — Risk Grades 6 - 8 — — — — — — — — — Total 1,528,180 — — — — — — — 1,528,180 Total $ 2,573,056 $ 647,096 $ 425,525 $ 349,565 $ 188,286 $ 71,149 $ 92,152 $ 2,445 $ 4,349,274 (1) Total loans and leases include $2.07 billion of U.S. government guaranteed loans as of December 31, 2021, segregated by risk grade as follows: Risk Grades 1 – 4 = $1.88 billion, Risk Grade 5 = $134.2 million, Risk Grades 6 – 8 = $63.0 million. As of December 31, 2020, total loans and leases include $2.61 billion of U.S. government guaranteed loans, segregated by risk grade as follows: Risk Grades 1 – 4 = $2.44 billion, Risk Grade 5 = $128.0 million, Risk Grades 6 – 8 = $40.9 million. (2) Excludes $645.2 million and $815.4 million of loans accounted for under the fair value option as of December 31, 2021 and December 31, 2020, respectively. |
Nonaccrual Loans and Leases | Nonaccrual loans and leases as of December 31, 2021 and December 31, 2020 are as follows: December 31, 2021 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 16,911 $ 13,981 $ 2,930 $ — Payroll Protection Program 1,482 1,482 — — Total 18,393 15,463 2,930 — Construction & Development Small Business Banking 3,884 1,201 2,683 — Total 3,884 1,201 2,683 — Commercial Real Estate Small Business Banking 12,410 5,226 7,184 5,169 Specialty Lending 2,315 507 1,808 1,808 Total 14,725 5,733 8,992 6,977 Commercial Land Small Business Banking 5,531 4,148 1,383 — Total 5,531 4,148 1,383 — Total $ 42,533 $ 26,545 $ 15,988 $ 6,977 December 31, 2020 Loan and Lease Balance (1) Guaranteed Balance Unguaranteed Balance Unguaranteed Exposure with No ACL Commercial & Industrial Small Business Banking $ 17,992 $ 12,046 $ 5,946 $ — Total 17,992 12,046 5,946 — Construction & Development Specialty Lending 3,723 — 3,723 3,723 Total 3,723 — 3,723 3,723 Commercial Real Estate Small Business Banking 15,085 6,725 8,360 5,327 Specialty Lending 7,068 5,533 1,535 — Total 22,153 12,258 9,895 5,327 Commercial Land Small Business Banking 2,242 1,728 514 — Total 2,242 1,728 514 — Total $ 46,110 $ 26,032 $ 20,078 $ 9,050 (1) Excludes nonaccrual loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. |
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, 2021 and 2020: Total Collateral Dependent Loans Unguaranteed Portion December 31, 2021 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 698 $ 7,475 $ — $ 152 $ 449 $ — $ 235 Total 698 7,475 — 152 449 — 235 Construction & Development Specialty Lending 3,858 — — 2,657 — — 57 Total 3,858 — — 2,657 — — 57 Commercial Real Estate Small Business Banking 5,172 700 64 4,038 14 13 65 Specialty Lending 512 — — 6 — — — Total 5,684 700 64 4,044 14 13 65 Commercial Land Small Business Banking 5,541 — — 1,393 — — 601 Total 5,541 — — 1,393 — — 601 Total $ 15,781 $ 8,175 $ 64 $ 8,246 $ 463 $ 13 $ 958 Total Collateral Dependent Loans Unguaranteed Portion December 31, 2020 Real Estate Business Assets Other Real Estate Business Assets Other Allowance for Credit Losses Commercial & Industrial Small Business Banking $ 1,279 $ 9,440 $ 197 $ 531 $ 4,077 $ 66 $ 1,281 Total 1,279 9,440 197 531 4,077 66 1,281 Construction & Development Specialty Lending 3,767 — — 3,767 — — — Total 3,767 — — 3,767 — — — Commercial Real Estate Small Business Banking 11,568 258 332 6,873 9 335 175 Specialty Lending 13,196 — — 7,663 — — 23 Total 24,764 258 332 14,536 9 335 198 Commercial Land Small Business Banking 2,263 — — 534 — — 302 Total 2,263 — — 534 — — 302 Total $ 32,073 $ 9,698 $ 529 $ 19,368 $ 4,086 $ 401 $ 1,781 |
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, 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 December 31, 2020 Beginning Balance, prior to adoption of ASC 326 $ 15,757 $ 2,732 $ 8,427 $ 1,318 $ 28,234 Impact of adopting ASC 326 (4,561 ) 1,131 1,916 193 (1,321 ) Charge offs (4,401 ) — (10,347 ) (644 ) (15,392 ) Recoveries 84 — 28 15 127 Provision 20,062 1,800 18,124 672 40,658 Ending Balance $ 26,941 $ 5,663 $ 18,148 $ 1,554 $ 52,306 December 31, 2019 Beginning Balance $ 6,524 $ 2,042 $ 5,259 $ 607 $ 14,432 Charge offs (887 ) — (615 ) (173 ) (1,675 ) Recoveries 246 — 18 1 265 Provision 9,874 690 3,765 883 15,212 Ending Balance $ 15,757 $ 2,732 $ 8,427 $ 1,318 $ 28,234 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. During the year ended December 31, 2020, increases to the ACL were primarily related to the severity of forecasted unemployment rates and ongoing developments as a result of 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 loan and lease growth and net charge-offs during the period. |
Impaired Loans and Leases | The following table presents the average recorded investment of impaired loans and leases for each period presented and interest income recognized during the period in which the loans and leases were considered impaired. December 31, 2019 Average Balance Interest Income Recognized Commercial & Industrial Small Business Banking $ 10,809 $ 137 Specialty Lending 2,249 59 Total 13,058 196 Construction & Development Small Business Banking 722 15 Specialty Lending — — Total 722 15 Commercial Real Estate Small Business Banking 22,996 632 Specialty Lending 1,855 10 Total 24,851 642 Commercial Land Small Business Banking 17,427 771 Total 17,427 771 Total $ 56,058 $ 1,624 |
Troubled Debt Restructurings on Financing Receivables | The following table represent the types of TDRs that were made during the periods presented: December 31, 2021 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans 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 extend amortization and a rate concession TDR. (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. December 31, 2020 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Commercial & Industrial Small Business Banking — $ — 6 $ 1,895 — $ — 1 $ 170 7 $ 2,065 Specialty Lending — — — — 2 423 — — 2 423 Total — — 6 1,895 2 423 1 170 9 2,488 Construction & Development Small Business Banking — — — — 1 1,787 — — 1 1,787 Total — — — — 1 1,787 — — 1 1,787 Commercial Real Estate Small Business Banking — — 2 3,738 — — — — 2 3,738 Specialty Lending — — 1 3,627 — — 2 12,219 3 15,846 Total — — 3 7,365 — — 2 12,219 5 19,584 Commercial Land Small Business Banking — — — — 1 4,865 — — 1 4,865 Total — — — — 1 4,865 — — 1 4,865 Total — $ — 9 $ 9,260 4 $ 7,075 3 $ 12,389 16 $ 28,724 (1) Includes one small business banking interest only and rate concession TDR ($170 thousand), and two specialty lending interest only and rate concession TDRs ($12.2 million). (2) Excludes loans accounted for under the fair value option. See Note 10. Fair Value of Financial Instruments for additional information. December 31, 2019 Interest Only Payment Deferral Extend Amortization Other (1) Total TDRs (2) Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Number of Loans Recorded investment at period end Commercial & Industrial Small Business Banking 1 $ 348 — $ — — $ — — $ — 1 $ 348 Total 1 348 — — — — — — 1 348 Commercial Real Estate Small Business Banking — — 1 1,841 — — 1 259 2 2,100 Total — — 1 1,841 — — 1 259 2 2,100 Total 1 $ 348 1 $ 1,841 — $ — 1 $ 259 3 $ 2,448 (1) Includes one payment deferral and rate concession TDR ($259 thousand). (2) 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, 2021 | |
Leases [Abstract] | |
Net Lease Investment | The gross lease payments receivable and the net investment included in accounts receivable for such leases are as follows: As of December 31, 2021 2020 Gross direct finance lease payments receivable $ 7,333 $ 10,629 Less - unearned interest (998 ) (1,685 ) Net investment in direct financing leases $ 6,335 $ 8,944 |
Future Minimum Finance Lease Payments Receivable | Future minimum lease payments receivable under direct finance leases are as follows: As of December 31, 2021 Amount 2022 $ 2,495 2023 2,102 2024 1,524 2025 1,095 2026 117 Total $ 7,333 |
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, 2021 Amount 2022 $ 9,057 2023 9,075 2024 8,808 2025 8,935 2026 8,923 Thereafter 22,252 Total $ 67,050 |
Summary of Components of Lease Expense | The components of lease expense are as follows: December 31, 2021 December 31, 2020 Operating lease cost $ 635 $ 787 Short-term lease cost 96 87 Finance lease cost: Amortization of right-of-use assets 3 5 Interest expense on lease liabilities — — Sublease income — (29 ) Total net lease cost $ 734 $ 850 |
Summary of Consolidated Balance Sheet Related to Finance Leases | Supplemental disclosure for the consolidated balance sheet related to finance leases is as follows: December 31, 2021 December 31, 2020 Operating lease right-of-use asset $ 2,228 $ 2,522 Operating lease liability 2,436 2,756 Finance lease right-of-use asset 4 9 Finance lease liability 4 9 |
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, 2021 December 31, 2020 Weighted average remaining lease term (years) Operating leases 12.35 12.21 Finance lease 0.92 1.92 Weighted average discount rate Operating leases 2.74 % 2.87 % Finance lease 3.10 % 3.10 % |
Summary of Operating and Finance Lease Liabilities | A maturity analysis of operating and finance lease liabilities is as follows: As of December 31, 2021 Operating Leases Finance Leases 2022 $ 871 $ 4 2023 618 — 2024 237 — 2025 78 — 2026 43 — Thereafter 1,159 — Total lease payments 3,006 4 Less: imputed interest (570 ) — Total lease liabilities $ 2,436 $ 4 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | |
Summary of Activity Pertaining to Servicing Rights | The following summarizes the activity pertaining to servicing rights: 2021 2020 Balance at beginning of period $ 33,918 $ 35,365 Additions, net 11,382 8,511 Fair value changes: Due to changes in valuation inputs or assumptions (982 ) (1,049 ) Decay due to increases in principal paydowns or runoff (10,744 ) (8,909 ) Balance at end of period $ 33,574 $ 33,918 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Computers and software 3-5 Solar panels 20-25 Components of premises and equipment and total accumulated depreciation at December 31, 2021 and 2020 are as follows: 2021 2020 Buildings $ 54,746 $ 54,718 Land improvements 5,180 5,180 Furniture and equipment 18,683 18,032 Computers and software 8,399 6,001 Leasehold improvements 8,106 8,068 Land 8,650 8,650 Transportation 49,766 30,496 Solar panels 163,391 164,295 Deposits on fixed assets 712 20,124 Premises and equipment, total 317,633 315,564 Less accumulated depreciation (77,437 ) (56,297 ) Premises and equipment, net of depreciation $ 240,196 $ 259,267 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits Liabilities Balance Sheet Reported Amounts [Abstract] | |
Types of Deposits | The types of deposits at December 31, 2021 and 2020 are: 2021 2020 Noninterest-bearing deposits $ 89,279 $ 75,287 Interest-bearing deposits: Interest-bearing checking — 250,060 Money market 105,628 117,010 Savings 3,507,354 2,081,561 Time deposits 3,409,783 3,188,910 Total 7,022,765 5,637,541 Total deposits $ 7,112,044 $ 5,712,828 |
Schedule of Maturities of Time Deposits | At December 31, 2021 the scheduled maturities of total time deposits are as follows: Year Amount 2022 $ 1,918,843 2023 451,722 2024 271,522 2025 194,826 2026 193,730 Thereafter 379,140 Total $ 3,409,783 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Total Outstanding Borrowings | Total outstanding borrowings consisted of the following: December 31, 2021 December 31, 2020 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. $ 42,734 $ — In April 2020, the Company entered into the Federal Reserve Bank's Paycheck Protection Program Liquidity Facility ("PPPLF"). Under the PPPLF, advances must be secured by pledges of loans to small businesses originated by the Company under the U.S. Small Business Administration's 7(a) loan program titled the Paycheck Protection Program. The PPPLF accrues interest at thirty-five basis points and matures at various dates equal to the maturity date of the PPPLF collateral pledged to secure the advance, ranging from April 6, 2022 to May 5, 2026, and will be accelerated on and to the extent of any 7(a) loan forgiveness reimbursement by the SBA for any PPPLF collateral or the date of purchase by the SBA from the borrower of any PPPLF collateral. On the maturity date of each advance, the Company shall repay the advance plus accrued interest. This $267.6 million borrowing was fully advanced at December 31, 2021. 267,550 1,527,596 In September 2020, the Company renewed a $50.0 million revolving line of credit originally issued in 2017 with a third party correspondent bank. Subsequently on October 20, 2021, the Company renewed and increased the revolving line of credit from $50.0 million to $100.0 million and increased the term from 12 months to 36 months. The line of credit is unsecured and accrues interest at 30-day SOFR plus 1.25%, with an interest rate cap of 4.25% and an interest rate floor of 2.75%. Payments are interest only with all principal and accrued interest due at maturity on October 10, 2024. 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 $750 thousand loan origination fee upon signing of the Note that will be amortized into interest expense over the life of the loan. The Company made an advance of $8.0 million on December 20, 2021 and there is $92.0 million of available credit remaining at December 31, 2021. 8,000 14,488 Other long term debt (1) 5 9 Total borrowings $ 318,289 $ 1,542,093 (1) Includes finance leases. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The components of income tax expense for the years ended December 31 are as follows: 2021 2020 2019 Current income tax expense: Federal $ 12,774 $ 2,071 $ 1,339 State 6,211 3,222 2,625 Total current tax expense 18,985 5,293 3,964 Deferred income tax expense (benefit): Federal 22,886 (12,946 ) 3,031 State 1,922 (4,501 ) (1,564 ) Total deferred tax expense (benefit) 24,808 (17,447 ) 1,467 Income tax expense (benefit), as reported $ 43,793 $ (12,154 ) $ 5,431 |
Schedule of Effective Income Tax Rate Reconciliation | Reported income tax expense (benefit) differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% in 2021, 2020 and 2019 to income before income taxes as follows: 2021 2020 2019 Income tax expense computed at the statutory rate $ 44,266 $ 9,952 $ 4,928 State income tax expense (benefit) , net of federal 6,426 (1,009 ) 838 Stock-based compensation expense (4,689 ) (17,489 ) 443 Decrease in taxes due to investment tax credit (3,392 ) — (1,561 ) Net operating loss carryback arising from CARES Act — (3,732 ) — Other 1,182 124 783 Total income tax expense (benefit) $ 43,793 $ (12,154 ) $ 5,431 |
Schedule of Deferred Tax Assets and Liabilities | Components of deferred tax assets and liabilities are as follows: 2021 2020 Deferred tax assets: Mark to market on loans held for sale $ 24,213 $ 25,107 Allowance for loan and lease losses 19,918 19,311 Stock-based compensation expense 3,720 1,805 Deferred loan fees and costs, net 3,388 6,535 Accrued expenses 2,247 2,487 Operating lease liabilities 584 661 Goodwill and intangibles 71 278 Tax credit carryforwards — 21,892 Other 1,474 1,036 Total deferred tax assets 55,615 79,112 Deferred tax liabilities: Premises and equipment 41,038 39,847 Net unrealized gains on equity securities 12,282 4,386 Net unrealized losses on equity method investments 10,991 11,417 Unguaranteed loan discount 6,171 12,612 Net unrealized gains on securities available for sale 614 6,792 Operating lease right-of-use assets 534 605 Other — 843 Total deferred tax liabilities 71,630 76,502 Net deferred tax (liability) asset $ (16,015 ) $ 2,610 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 Balance at beginning of period $ 908 $ 570 Issuances 229 203 Net gains on derivative instruments 1,088 168 Settlements (553 ) (33 ) Balance at end of period $ 1,672 $ 908 |
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, 2021 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US government agencies $ 10,637 $ — $ 10,637 $ — Mortgage-backed securities 889,339 — 889,339 — Municipal bonds 1 3,576 — 3,480 96 Other debt securities 2,500 — 2,500 — Loans held for sale 25,310 — — 25,310 Loans held for investment 645,201 — — 645,201 Servicing assets 2 33,574 — — 33,574 Mutual fund 2,379 — 2,379 — Equity warrant assets 1,672 — — 1,672 Total assets at fair value $ 1,614,188 $ — $ 908,335 $ 705,853 December 31, 2020 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US government agencies $ 15,919 $ — $ 15,919 $ — Mortgage-backed securities 730,454 — 730,454 — Municipal bonds 1 3,725 — 3,629 96 Loans held for sale 36,111 — — 36,111 Loans held for investment 815,374 — — 815,374 Servicing assets 2 33,918 — — 33,918 Mutual fund 2,351 — 2,351 — Equity warrant assets 908 — — 908 Total assets at fair value $ 1,638,760 $ — $ 752,353 $ 886,407 1 During the year ended December 31, 2021, the Company recorded a principal paydown of $1 thousand and a fair value adjustment gain of $1 thousand. During the year ended December 31, 2020, the Company recorded a fair value adjustment gain of $4 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, 2021 and December 31, 2020. December 31, 2021 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 sale $ 25,310 $ 26,831 $ (1,521 ) $ — $ — $ — $ — $ — $ — Loans held for investment 645,201 666,066 (20,865 ) 38,262 42,841 (4,579 ) 24,057 25,633 (1,576 ) $ 670,511 $ 692,897 $ (22,386 ) $ 38,262 $ 42,841 $ (4,579 ) $ 24,057 $ 25,633 $ (1,576 ) December 31, 2020 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 sale $ 36,111 $ 38,135 $ (2,024 ) $ — $ — $ — $ — $ — $ — Loans held for investment 815,374 845,082 (29,708 ) 35,499 39,318 (3,819 ) 25,532 28,741 (3,209 ) $ 851,485 $ 883,217 $ (31,732 ) $ 35,499 $ 39,318 $ (3,819 ) $ 25,532 $ 28,741 $ (3,209 ) |
Schedule of Net Gains (Losses) from Changes in Fair Value | The following table presents the net gains (losses) from changes in fair value. Twelve Months Ended December 31, Gains (Losses) on Loans Accounted for under the Fair Value Option 2021 2020 Loans held for sale $ 502 $ 232 Loans held for investment 3,755 (13,315 ) $ 4,257 $ (13,083 ) |
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 2021 2020 Balance at beginning of period $ 36,111 $ 16,198 Repurchases & Issuances — 35,275 Fair value changes 502 232 Sales — (6,082 ) Settlements (11,303 ) (9,512 ) Balance at end of period $ 25,310 $ 36,111 Twelve Months Ended December 31, Loans held for investment 2021 2020 Balance at beginning of period $ 815,374 $ 824,520 Repurchases & Issuances 37,159 173,280 Fair value changes 3,755 (13,315 ) Settlements (211,087 ) (169,111 ) Balance at end of period $ 645,201 $ 815,374 |
Recorded Amount of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a non-recurring basis. December 31, 2021 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 1,567 $ — $ — $ 1,567 Foreclosed assets 620 — — 620 Total assets at fair value $ 2,187 $ — $ — $ 2,187 December 31, 2020 Total Level 1 Level 2 Level 3 Collateral-dependent loans $ 4,159 $ — $ — $ 4,159 Foreclosed assets 4,155 — — 4,155 Long-lived asset held for sale 8,874 8,874 — — Equity security investment with a non-readily determinable fair value 25,367 — 25,367 — Total assets at fair value $ 42,555 $ 8,874 $ 25,367 $ 8,314 |
Analysis of Level 3 Valuation Techniques | For Level 3 assets and liabilities measured at fair value as of December 31, 2021 and December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 2021 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Recurring fair value Municipal bond $ 96 Discounted expected cash flows Discount rate Prepayment speed 4.8% 5.0% Loans held for sale $ 25,310 Discounted expected cash flows Discount rate Prepayment speed 6.2% to 21.9% WAVG 17.4% Loans held for investment $ 645,201 Discounted expected cash flows Discounted appraisals Loss rate Discount rate Prepayment speed Appraisal adjustments 0.0% to 70.2% (WAVG 1.5%) 6.2% to 21.9% WAVG 17.4% 10.0% to 85.0% Equity warrant assets $ 1,672 Black-Scholes option pricing model Volatility Risk-free interest rate Marketability discount Remaining life 26.2-88.2% 1.26% to 1.52% 20.0% 4 - 10 years Non-recurring fair value Collateral-dependent loans $ 1,567 Discounted appraisals Appraisal adjustments (1) 10.0% to 99.0% Foreclosed assets $ 620 Discounted appraisals Appraisal adjustments (1) 9.0% to 10.0% December 31, 2020 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Recurring fair value Municipal bond $ 96 Discounted expected cash flows Discount rate Prepayment speed 4.3% 5.0% Loans held for sale $ 36,111 Discounted expected cash flows Discount rate Prepayment speed 4.2% to 18.5% WAVG 19.0% Loans held for investment $ 815,374 Discounted expected cash flows Discounted appraisals Loss rate Discount rate Prepayment speed Appraisal adjustments 0.0% to 73.2% (WAVG 1.5%) 4.2% to 18.5% WAVG 19.0% 10.0% to 83.0% Equity warrant assets $ 908 Black-Scholes option pricing model Volatility Risk-free interest rate Marketability discount Remaining life 26.5-87.1% 0.36% to 0.93% 20.0% 5 - 10 years Non-recurring fair value Collateral-dependent loans $ 4,159 Discounted appraisals Appraisal adjustments (1) 10.0% to 83.0% Foreclosed assets $ 4,155 Discounted appraisals Appraisal adjustments (1) 10.0% to 20.0% (1) 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 are as follows: December 31, 2021 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 $ 187,203 $ 187,203 $ — $ — $ 187,203 Federal funds sold 16,547 16,547 — — 16,547 Certificates of deposit with other banks 4,750 4,930 — — 4,930 Loans held for sale 1,091,209 — — 1,197,307 1,197,307 Loans and leases held for investment, net of allowance for credit losses on loans and leases 4,812,477 — — 4,958,875 4,958,875 Financial liabilities Deposits 7,112,044 — 6,942,512 — 6,942,512 Borrowings 318,289 — — 312,036 312,036 December 31, 2020 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 $ 297,167 $ 297,167 $ — $ — $ 297,167 Federal funds sold 21,153 21,153 — — 21,153 Certificates of deposit with other banks 6,500 6,906 — — 6,906 Loans held for sale 1,139,359 — — 1,235,122 1,235,122 Loans and leases held for investment, net of allowance for credit losses on loans and leases 4,277,250 — — 4,366,489 4,366,489 Financial liabilities Deposits 5,712,828 — 5,711,781 — 5,711,781 Borrowings 1,542,093 — — 1,542,171 1,542,171 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Commitments | A summary of the Company’s commitments is as follows: December 31, 2021 December 31, 2020 Commitments to extend credit $ 2,634,387 $ 2,054,910 Standby letters of credit 10,753 22,913 Total unfunded off-balance sheet credit risk $ 2,645,140 $ 2,077,823 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | Stock option activity under the Plan during the year ended December 31, 2021 is summarized below. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2020 1,877,762 $ 11.78 Exercised (767,988 ) 9.89 Forfeited (47,093 ) 16.31 Outstanding at December 31, 2021 1,062,681 $ 12.94 3.26 $ 79,010,231 Exercisable at December 31, 2021 679,831 $ 11.72 3.05 $ 51,374,053 |
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, 2021, 2020 and 2019. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2018 1,839,830 $ 4.60 Vested (288,394 ) 4.20 Forfeited (66,040 ) 3.50 Non-vested at December 31, 2019 1,485,396 4.73 Vested (387,867 ) 3.05 Forfeited (74,893 ) 4.52 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 |
Restricted Stock Unit Activity | The following is a summary of non-vested RSU stock activity for the Company for the year ended December 31, 2021. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 889,839 $ 18.94 Granted 1,329,508 58.19 Vested (182,272 ) 18.77 Forfeited (129,562 ) 21.77 Non-vested at December 31, 2021 1,907,513 $ 46.12 The following is a summary of non-vested Market RSU stock activity for the Company for the year ended December 31, 2021. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2020 583,500 $ 8.38 1 Vested (575,500 ) 7.62 Forfeited (8,000 ) 6.76 Non-vested at December 31, 2021 — $ — 1 Adjusted for modification in 2019, as described below. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Capital amounts and ratios as of December 31, 2021 and 2020, are presented in the following table. Actual Minimum Capital Requirement Minimum To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio Consolidated - December 31, 2021 Common Equity Tier 1 (to Risk-Weighted Assets) $ 689,367 12.38 % $ 250,619 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 753,691 13.53 % $ 445,544 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 689,367 12.38 % $ 334,158 6.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 689,367 8.87 % $ 310,902 4.00 % N/A N/A Bank - December 31, 2021 Common Equity Tier 1 (to Risk-Weighted Assets) $ 640,652 12.05 % $ 239,201 4.50 % $ 345,512 6.50 % Total Capital (to Risk-Weighted Assets) $ 704,976 13.26 % $ 425,246 8.00 % $ 531,557 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 640,652 12.05 % $ 318,934 6.00 % $ 425,246 8.00 % Tier 1 Capital (to Average Assets) $ 640,652 8.32 % $ 307,931 4.00 % $ 384,914 5.00 % Consolidated - December 31, 2020 Common Equity Tier 1 (to Risk-Weighted Assets) $ 521,568 12.15 % $ 193,172 4.50 % N/A N/A Total Capital (to Risk-Weighted Assets) $ 574,621 13.39 % $ 343,417 8.00 % N/A N/A Tier 1 Capital (to Risk-Weighted Assets) $ 521,568 12.15 % $ 257,563 6.00 % N/A N/A Tier 1 Capital (to Average Assets) $ 521,568 8.40 % $ 248,417 4.00 % N/A N/A Bank - December 31, 2020 Common Equity Tier 1 (to Risk-Weighted Assets) $ 470,069 11.25 % $ 188,012 4.50 % $ 271,573 6.50 % Total Capital (to Risk-Weighted Assets) $ 522,305 12.50 % $ 334,243 8.00 % $ 417,804 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 470,069 11.25 % $ 250,683 6.00 % $ 334,243 8.00 % Tier 1 Capital (to Average Assets) $ 470,069 7.60 % $ 247,288 4.00 % $ 309,110 5.00 % |
Significant Equity Method Inv_2
Significant Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Balance Sheet and Income Statement Information of Combined Equity Method Investments | The following table provides summarized balance sheet information for the Company’s combined equity method investments as of December 31, 2021 and 2020. The Company’s equity method investments are included in the other assets line on the consolidated balance sheet and are largely concentrated in new or emerging financial service technology companies. As of December 31, Balance sheet data 2021 2020 Current assets $ 90,629 $ 67,843 Noncurrent assets 776,171 285,018 Total assets $ 866,800 $ 352,861 Current liabilities $ 37,730 $ 64,019 Noncurrent liabilities 14,052 17,151 Total liabilities 51,782 81,170 Equity interests 815,018 271,691 Total liabilities and equity $ 866,800 $ 352,861 The following table provides summarized income statement information for the Company’s combined equity method investments for the years ended December 31, 2021, 2020 and 2019. Years ended December 31, Summary of operations 2021 2020 2019 Total revenues $ 79,016 $ 68,038 $ 56,928 Net income (loss) 215,792 (68,406 ) (30,367 ) |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | 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, 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 expense (benefit) 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 As of and for the year ended December 31, 2020 Interest income $ 288,305 $ — $ 103 $ 288,408 Interest expense 93,313 — 372 93,685 Net interest income 194,992 — (269 ) 194,723 Provision for loan and lease credit losses 40,658 — — 40,658 Noninterest income 77,512 6,567 1,921 86,000 Noninterest expense 181,555 5,510 5,611 192,676 Income tax (benefit) expense (7,171 ) 2,989 (7,972 ) (12,154 ) Net income (loss) $ 57,462 $ (1,932 ) $ 4,013 $ 59,543 Total assets $ 7,767,013 $ 83,946 $ 21,344 $ 7,872,303 As of and for the year ended December 31, 2019 Interest income $ 227,776 $ 30 $ 174 $ 227,980 Interest expense 88,052 — (154 ) 87,898 Net interest income 139,724 30 328 140,082 Provision for loan and lease credit losses 15,067 — 145 15,212 Noninterest income 64,034 (2,436 ) 1,921 63,519 Noninterest expense 152,227 7,078 5,619 164,924 Income tax expense (benefit) 6,803 (1,218 ) (154 ) 5,431 Net income (loss) $ 29,661 $ (8,266 ) $ (3,361 ) $ 18,034 Total assets $ 4,724,537 $ 82,355 $ 5,936 $ 4,812,828 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Balance Sheets As of December 31, 2021 2020 Assets Cash and cash equivalents $ 10,635 $ 11,209 Investment in subsidiaries 723,803 543,740 Other assets 40,149 30,816 Total assets $ 774,587 $ 585,765 Liabilities and Shareholders' Equity Borrowings $ 50,734 $ 14,488 Other liabilities 8,720 3,427 Total liabilities 59,454 17,915 Shareholders' equity: Common stock 312,294 310,619 Retained earnings 400,893 235,724 Accumulated other comprehensive income 1,946 21,507 Total equity 715,133 567,850 Total liabilities & shareholders' equity $ 774,587 $ 585,765 |
Condensed Income Statement | Statements of Income Years ended December 31, 2021 2020 2019 Interest income $ 25 $ 91 $ 236 Interest expense 1,309 372 — Net interest (loss) income (1,284 ) (281 ) 236 Noninterest income: Other noninterest income 716 252 140 Total noninterest income 716 252 140 Noninterest expense: Salaries and employee benefits 5,120 17,250 12,408 Professional services expense 679 750 825 Renewable energy tax credit investment impairment — — 602 Other expense 789 1,167 999 Total noninterest expense 6,588 19,167 14,834 Net loss before equity in undistributed income of subsidiaries (7,156 ) (19,196 ) (14,458 ) Income tax benefit (1,615 ) (7,785 ) (27 ) Net loss (5,541 ) (11,411 ) (14,431 ) Equity in undistributed income of subsidiaries in excess of dividends from subsidiaries 172,536 70,954 32,465 Net income attributable to Live Oak Bancshares, Inc. $ 166,995 $ 59,543 $ 18,034 |
Condensed Cash Flow Statement | Statements of Cash Flows Years ended December 31, 2021 2020 2019 Cash flows from operating activities Net income $ 166,995 $ 59,543 $ 18,034 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries in excess of dividends of subsidiaries (172,536 ) (70,954 ) (32,465 ) Equity in subsidiary tax withholding related to vesting of restricted stock and other 2,679 43,507 — Deferred income tax 30,070 1,163 (790 ) Renewable energy tax credit investment impairment — — 602 Stock option based compensation expense 1,379 1,594 1,723 Restricted stock expense 15,572 13,146 10,025 Business combination contingent consideration fair value adjustments 99 163 — Net change in other assets (23,388 ) (6,706 ) 7,100 Net change in other liabilities (10,821 ) (525 ) 1,417 Net cash provided by operating activities 10,049 40,931 5,646 Cash flows from investing activities Capital investment in subsidiaries (26,407 ) (6,354 ) (1,109 ) Business combination, net of cash acquired — (895 ) — Net cash used in investing activities (26,407 ) (7,249 ) (1,109 ) Cash flows from financing activities Proceeds from borrowings 57,675 70,000 — Repayments of borrowings (21,429 ) (55,512 ) (1,441 ) Stock option exercises 4,158 3,069 508 Employee stock purchase program 670 520 437 Withholding cash issued in lieu of restricted stock and other (19,151 ) (49,229 ) (409 ) Repurchase and retirement of shares (953 ) — — Shareholder dividend distributions (5,186 ) (4,906 ) (4,827 ) Net cash provided by (used in) financing activities 15,784 (36,058 ) (5,732 ) Net change in cash and cash equivalents (574 ) (2,376 ) (1,195 ) Cash and cash equivalents at beginning of year 11,209 13,585 14,780 Cash and cash equivalents at end of year $ 10,635 $ 11,209 $ 13,585 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Organization Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021USD ($)Office | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Schedule Of Equity Method Investments [Line Items] | |||||
Financing receivable, allowance for credit loss | $ 63,584 | $ 52,306 | $ 28,234 | $ 14,432 | |
Unguaranteed Loan Exposure | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Financing receivable, allowance for credit loss | $ 1,000 | ||||
Maximum | Unguaranteed Loan Exposure | |||||
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 | 5.00% | ||||
Significant Influence | Minimum | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Limited liability companies privately held ownership interest | 20.00% | ||||
UNITED STATES | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Number of satellite sales offices | Office | 7 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Schedule of Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Investment carrying amount | $ 708 | |
Maximum exposure to loss | $ 4,100 | $ 879 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Business Combination (Details) - JAM $ in Millions | Apr. 01, 2020USD ($) |
Business Acquisition [Line Items] | |
Equity interests | 100.00% |
Goodwill | $ 1.8 |
Intangible assets | 2.3 |
Contingent consideration | $ 2.1 |
Useful life | 15 years |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents and Certificates of Deposit with other Banks (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Minimum | Certificates of Deposit | |
Cash And Cash Equivalents [Line Items] | |
Investment interest rate | 0.20% |
Maximum | |
Cash And Cash Equivalents [Line Items] | |
FDIC insurable amount | $ 250 |
Maximum | Certificates of Deposit | |
Cash And Cash Equivalents [Line Items] | |
Investment interest rate | 3.55% |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Federal home loan bank stock | $ 3.9 | $ 4.3 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Loans and Leases (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 | 10.00% |
USDA loan | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |
Percentage of principal balance required to be retained | 5.00% |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Schedule of Loans Receivable Held-for-sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Balance at beginning of year | $ 1,175,470 | $ 966,447 | |
Originations | 1,364,168 | 1,183,152 | $ 1,005,165 |
Proceeds from sale | (1,092,222) | (875,393) | (457,533) |
Gain on sale of loans | 67,280 | 49,473 | 29,002 |
Principal collections, net of deferred fees and costs | (98,354) | 50,431 | |
Non-cash transfers, net | (299,823) | (198,640) | |
Balance at end of period | $ 1,116,519 | $ 1,175,470 | $ 966,447 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)term | |
Lessee, Lease, Description [Line Items] | |
Number of additional terms | term | 2 |
Impairment expense | $ | $ 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 | 20.00% |
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 | 50.00% |
Organization and Summary of _12
Organization and Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Equity Method Investments [Line Items] | |||
Retained earnings | $ 400,893 | $ 235,724 | |
Allowance for off-balance sheet credit exposures | $ 739 | $ 746 | |
ASU No. 2016-13 | |||
Schedule Of Equity Method Investments [Line Items] | |||
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2020 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
ASU No. 2016-13 | Restatement Adjustment | |||
Schedule Of Equity Method Investments [Line Items] | |||
Retained earnings | $ 822 | ||
Decrease in allowance for credit losses | (1,300) | ||
Increase in reserve on unfunded commitments | $ 499 |
Organization and Summary of _13
Organization and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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 |
Computers and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computers 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 _14
Organization and Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Cash margin balances | $ 0 | ||
Gain (loss) on derivative, net | $ 0 | $ (2,600,000) | $ (3,000,000) |
Derivative, notional amount | $ 20,400,000 | ||
Derivative, fair value, net | $ 0 | ||
Term of warrant | 10 years |
Organization and Summary of _15
Organization and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment related charges | $ 0 | $ 0 | $ 0 |
JAM | |||
Finite-Lived Intangible Assets [Line Items] | |||
Carrying amount of intangible assets | 2,000,000 | 2,200,000 | |
Accumulated amortization of intangible assets | $ 153,000 | $ 115,000 |
Organization and Summary of _16
Organization and Summary of Significant Accounting Policies - Impairment of Long-Lived Asset Reclassified to Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Gain on sale of aircraft | $ 114 | $ (6) | $ 357 |
Air Transportation Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Expected proceeds from sale of aircraft | 8,900 | ||
Impairment expense | 1,300 | ||
Carrying amount of aircraft | $ 19,200 | ||
Gain on sale of aircraft | $ 114 | $ 357 |
Organization and Summary of _17
Organization and Summary of Significant Accounting Policies - Common Stock (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Jun. 11, 2014class | |
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 | 982,733 | 1,807,774 | |
Non-voting common stock converted to voting common stock in private sale | $ | $ 10.4 | $ 19.1 |
Organization and Summary of _18
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic earnings per share: | |||
Net income | $ 166,995 | $ 59,543 | $ 18,034 |
Weighted-average basic shares outstanding | 43,169,935 | 40,677,496 | 40,222,758 |
Basic earnings per share | $ 3.87 | $ 1.46 | $ 0.45 |
Diluted earnings per share: | |||
Net income, for diluted earnings per share | $ 166,995 | $ 59,543 | $ 18,034 |
Weighted-average basic shares outstanding | 43,169,935 | 40,677,496 | 40,222,758 |
Add effect of dilutive stock options and restricted stock grants | 1,901,369 | 1,093,754 | 830,756 |
Total weighted-average diluted shares outstanding | 45,071,304 | 41,771,250 | 41,053,514 |
Diluted earnings per share | $ 3.71 | $ 1.43 | $ 0.44 |
Anti-dilutive shares | 37,401 | 2,179 | 1,071,467 |
Organization and Summary of _19
Organization and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) | Dec. 31, 2021 |
ASU No. 2020-01 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2021 |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU No. 2019-12 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change In Accounting Principle Accounting Standards Update Adoption Date | Jan. 1, 2021 |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU 2020-04 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change In Accounting Principle Accounting Standards Update Adoption Date | Mar. 12, 2020 |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Securities - Carrying Amount an
Securities - Carrying Amount and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 903,492 | $ 721,799 |
Unrealized Gains | 14,772 | 29,243 |
Unrealized Losses | 12,212 | 944 |
Fair Value | 906,052 | 750,098 |
US government agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 10,444 | 15,440 |
Unrealized Gains | 193 | 479 |
Fair Value | 10,637 | 15,919 |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 887,302 | 703,092 |
Unrealized Gains | 14,246 | 28,302 |
Unrealized Losses | 12,209 | 940 |
Fair Value | 889,339 | 730,454 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 3,246 | 3,267 |
Unrealized Gains | 333 | 462 |
Unrealized Losses | 3 | 4 |
Fair Value | 3,576 | $ 3,725 |
Other debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,500 | |
Fair Value | $ 2,500 |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($)Security | Dec. 31, 2019USD ($)Security | |
Schedule Of Available For Sale Securities [Line Items] | |||
Number of securities sold | Security | 11 | ||
Proceeds from sale of securities | $ 36,200,000 | ||
Gain (Loss) on sale of securities available-for-sale | $ 0 | $ 1,880,000 | 620,000 |
Other than temporary impairment losses | $ 0 | ||
Collateral Pledged | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Debt securities, available-for-sale, restricted | $ 0 | $ 0 | |
Matured Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of securities sold | Security | 1 | 4 | |
Proceeds from sale of securities | $ 5,000,000 | $ 12,000,000 | |
Sale of Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of securities sold | Security | 12 | 20 | |
Proceeds from sale of securities | $ 33,100,000 | $ 29,600,000 | |
Gain (Loss) on sale of securities available-for-sale | 1,900,000 | ||
Gain on sale of securities available-for-sale | 2,000,000 | ||
Loss on sale of securities available-for-sale | $ (136,000) | ||
Mortgage-backed securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of securities in unrealized loss portions for longer than 12 months | Security | 31 | 3 | |
Number of securities in unrealized loss positions for less than 12 months | Security | 142 | 29 | |
Municipal bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Number of securities in unrealized loss portions for longer than 12 months | Security | 1 | 1 |
Securities - Debt Securities Av
Securities - Debt Securities Available-for-Sale in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities in unrealized loss position, Less Than 12 Months, Fair Value | $ 479,322 | $ 156,904 |
Securities in unrealized loss position, Less Than 12 Months, Unrealized Losses | 8,503 | 917 |
Securities in unrealized loss position, 12 Months or More, Fair Value | 110,729 | 1,949 |
Securities in unrealized loss position, 12 Months or More, Unrealized Losses | 3,709 | 27 |
Securities in unrealized loss position, Total, Fair Value | 590,051 | 158,853 |
Securities in unrealized loss position, Total, Unrealized Losses | 12,212 | 944 |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities in unrealized loss position, Less Than 12 Months, Fair Value | 479,322 | 156,904 |
Securities in unrealized loss position, Less Than 12 Months, Unrealized Losses | 8,503 | 917 |
Securities in unrealized loss position, 12 Months or More, Fair Value | 110,633 | 1,853 |
Securities in unrealized loss position, 12 Months or More, Unrealized Losses | 3,706 | 23 |
Securities in unrealized loss position, Total, Fair Value | 589,955 | 158,757 |
Securities in unrealized loss position, Total, Unrealized Losses | 12,209 | 940 |
Municipal bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities in unrealized loss position, 12 Months or More, Fair Value | 96 | 96 |
Securities in unrealized loss position, 12 Months or More, Unrealized Losses | 3 | 4 |
Securities in unrealized loss position, Total, Fair Value | 96 | 96 |
Securities in unrealized loss position, Total, Unrealized Losses | $ 3 | $ 4 |
Securities - Summary of Investm
Securities - Summary of Investment Securities by Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized Cost | $ 903,492 | $ 721,799 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 906,052 | 750,098 |
US government agencies | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Within one year, Amortized cost | 7,507 | |
Five to ten year, Amortized cost | 2,937 | |
Amortized Cost | 10,444 | 15,440 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Within one year, Fair value | 7,614 | |
Five to ten years, Fair value | 3,023 | |
Total, Fair value | 10,637 | 15,919 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Within one year, Amortized cost | 202 | |
Five to ten year, Amortized cost | 298,860 | |
After 10 years, Amortized cost | 567,924 | |
Amortized Cost | 887,302 | 703,092 |
One to five years, Amortized cost | 20,316 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Within one year, Fair value | 202 | |
Five to ten years, Fair value | 305,190 | |
After 10 years, Fair value | 562,779 | |
Total, Fair value | 889,339 | 730,454 |
One to five years, Fair value | 21,168 | |
Municipal bonds | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
After 10 years, Amortized cost | 3,246 | |
Amortized Cost | 3,246 | 3,267 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
After 10 years, Fair value | 3,576 | |
Total, Fair value | 3,576 | $ 3,725 |
Other debt securities | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Within one year, Amortized cost | 500 | |
Amortized Cost | 2,500 | |
One to five years, Amortized cost | 2,000 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Within one year, Fair value | 500 | |
Total, Fair value | 2,500 | |
One to five years, Fair value | $ 2,000 |
Securities - Carrying and Owner
Securities - Carrying and Ownership Percentage of Each Equity Method Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 84,150 | $ 77,928 |
Apiture, Inc. | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 52,323 | $ 53,344 |
Equity method investment ownership percentage | 39.10% | 39.10% |
Canapi Ventures SBIC Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 19,431 | $ 14,843 |
Equity method investment ownership percentage | 2.90% | 3.10% |
Canapi Ventures Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 2,402 | $ 1,686 |
Equity method investment ownership percentage | 1.50% | 1.50% |
Other Fintech Investments in Private Companies | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 5,330 | $ 1,634 |
Equity method investment ownership percentage | Various | Various |
Other | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments | $ 4,664 | $ 6,421 |
Equity method investment ownership percentage | Various | Various |
Securities - Carrying and Own_2
Securities - Carrying and Ownership Percentage of Each Equity Method Investment (Parenthetical) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Canapi Ventures SBIC Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | $ 6,800,000 | $ 11,300,000 |
Canapi Ventures Fund, LP | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | 770,000 | 1,000,000 |
Other | ||
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investments, committed amount of investment | $ 0 | $ 2,900,000 |
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 on Cumulative Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |||
Carrying value (1) | $ 63,321 | $ 31,146 | $ 15,525 |
Carrying value adjustments: | |||
Upward changes for observable prices (2) | 30,197 | 14,558 | 3,628 |
Net upward change | 30,197 | $ 14,558 | $ 3,628 |
Cumulative Adjustments Carrying value adjustments : | |||
Cumulative Adjustments Upward changes for observable prices | 48,469 | ||
Cumulative Adjustments Downward changes for observable prices | (86) | ||
Cumulative Adjustments Net upward change | $ 48,383 |
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 on Cumulative Basis (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |||
Equity security investments, committed amount | $ 2,800 | $ 522 | $ 650 |
Realized cash gains for sale of investment | $ 13,900 |
Loans and Leases Held for Inv_3
Loans and Leases Held for Investment and Credit Quality - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)SecurityLoan | Dec. 31, 2020USD ($)SecurityLoan | Dec. 31, 2019USD ($)SecurityLoan | |
Accounts Notes And Loans Receivable [Line Items] | |||
CARES ACT of 2020 government guarantee percentage | 100.00% | ||
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 | $ 31,000,000 | $ 41,000,000 | |
Number of TDRs with subsequent default | SecurityLoan | 1 | 0 | 1 |
Commercial Real Estate | Healthcare | Payment Deferral | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded investment | $ 1,800,000 | ||
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 - Age Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | $ 4,881,665 | $ 4,349,274 |
Loans Accounted for Under the Fair Value Option | 645,201 | 815,374 |
Total Loans and Leases | 5,526,866 | 5,164,648 |
Net deferred fees | (5,604) | (19,718) |
Loan and Leases, Net | 5,521,262 | 5,144,930 |
Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,829,994 | 4,302,459 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 26,440 | 19,782 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25,231 | 27,033 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 51,671 | 46,815 |
Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 3,368,221 | 2,230,861 |
Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 1,245,069 | 590,233 |
Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 268,375 | 1,528,180 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 2,268,148 | 2,586,665 |
Loans Accounted for Under the Fair Value Option | 313,331 | 379,431 |
Total Loans and Leases | 2,581,479 | 2,966,096 |
Commercial & Industrial | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,246,175 | 2,565,222 |
Commercial & Industrial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,239 | 10,678 |
Commercial & Industrial | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,734 | 10,765 |
Commercial & Industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 21,973 | 21,443 |
Commercial & Industrial | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 1,124,406 | 716,196 |
Loans Accounted for Under the Fair Value Option | 248,806 | 308,341 |
Total Loans and Leases | 1,373,212 | 1,024,537 |
Commercial & Industrial | Small Business Banking | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,103,915 | 695,090 |
Commercial & Industrial | Small Business Banking | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,171 | 10,341 |
Commercial & Industrial | Small Business Banking | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,320 | 10,765 |
Commercial & Industrial | Small Business Banking | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 20,491 | 21,106 |
Commercial & Industrial | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 875,367 | 342,289 |
Loans Accounted for Under the Fair Value Option | 64,525 | 71,090 |
Total Loans and Leases | 939,892 | 413,379 |
Commercial & Industrial | Specialty Lending | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 875,367 | 341,952 |
Commercial & Industrial | Specialty Lending | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 337 | |
Commercial & Industrial | Specialty Lending | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 337 | |
Commercial & Industrial | Paycheck Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 268,375 | 1,528,180 |
Total Loans and Leases | 268,375 | 1,528,180 |
Commercial & Industrial | Paycheck Protection Program | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 266,893 | 1,528,180 |
Commercial & Industrial | Paycheck Protection Program | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 68 | |
Commercial & Industrial | Paycheck Protection Program | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,414 | |
Commercial & Industrial | Paycheck Protection Program | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,482 | |
Construction & Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 359,166 | 275,700 |
Total Loans and Leases | 359,166 | 275,700 |
Construction & Development | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 357,800 | 271,977 |
Construction & Development | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,366 | 3,723 |
Construction & Development | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,366 | 3,723 |
Construction & Development | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 277,152 | 183,087 |
Total Loans and Leases | 277,152 | 183,087 |
Construction & Development | Small Business Banking | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 275,786 | 183,087 |
Construction & Development | Small Business Banking | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,366 | |
Construction & Development | Small Business Banking | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,366 | |
Construction & Development | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 82,014 | 92,613 |
Total Loans and Leases | 82,014 | 92,613 |
Construction & Development | Specialty Lending | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 82,014 | 88,890 |
Construction & Development | Specialty Lending | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,723 | |
Construction & Development | Specialty Lending | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,723 | |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 1,882,016 | 1,155,028 |
Loans Accounted for Under the Fair Value Option | 270,337 | 341,669 |
Total Loans and Leases | 2,152,353 | 1,496,697 |
Commercial Real Estate | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,863,138 | 1,135,622 |
Commercial Real Estate | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,802 | 9,104 |
Commercial Real Estate | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13,076 | 10,302 |
Commercial Real Estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,878 | 19,406 |
Commercial Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 1,594,328 | 999,697 |
Loans Accounted for Under the Fair Value Option | 250,856 | 321,352 |
Total Loans and Leases | 1,845,184 | 1,321,049 |
Commercial Real Estate | Small Business Banking | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,577,765 | 987,358 |
Commercial Real Estate | Small Business Banking | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,802 | 3,730 |
Commercial Real Estate | Small Business Banking | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,761 | 8,609 |
Commercial Real Estate | Small Business Banking | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16,563 | 12,339 |
Commercial Real Estate | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 287,688 | 155,331 |
Loans Accounted for Under the Fair Value Option | 19,481 | 20,317 |
Total Loans and Leases | 307,169 | 175,648 |
Commercial Real Estate | Specialty Lending | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 285,373 | 148,264 |
Commercial Real Estate | Specialty Lending | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,374 | |
Commercial Real Estate | Specialty Lending | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,315 | 1,693 |
Commercial Real Estate | Specialty Lending | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,315 | 7,067 |
Commercial Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 372,335 | 331,881 |
Loans Accounted for Under the Fair Value Option | 61,533 | 94,274 |
Total Loans and Leases | 433,868 | 426,155 |
Commercial Land | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 362,881 | 329,638 |
Commercial Land | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,399 | |
Commercial Land | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,055 | 2,243 |
Commercial Land | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,454 | 2,243 |
Commercial Land | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Carried at Amortized Cost | 372,335 | 331,881 |
Loans Accounted for Under the Fair Value Option | 61,533 | 94,274 |
Total Loans and Leases | 433,868 | 426,155 |
Commercial Land | Small Business Banking | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 362,881 | 329,638 |
Commercial Land | Small Business Banking | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,399 | |
Commercial Land | Small Business Banking | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,055 | 2,243 |
Commercial Land | Small Business Banking | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 9,454 | $ 2,243 |
Loans and Leases Held for Inv_5
Loans and Leases Held for Investment and Credit Quality - Age Analysis of Past Due Loans and Leases (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | $ 4,881,665 | $ 4,349,274 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due loans | 25,231 | 27,033 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due loans | 26,440 | 19,782 |
Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases receivable | 2,070,000 | 2,610,000 |
Loans Insured or Guaranteed by US Government Authorities | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due loans | 16,400 | 12,900 |
Loans Insured or Guaranteed by US Government Authorities | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due loans | 18,400 | 16,700 |
Loans Insured or Guaranteed by US Government Authorities | Not Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due loans | $ 2,040,000 | $ 2,580,000 |
Loans and Leases Held for Inv_6
Loans and Leases Held for Investment and Credit Quality - Summary of Credit Quality Indicators by Portfolio Class (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | $ 1,914,034 | $ 2,573,056 |
Fiscal year before current fiscal year | 1,201,243 | 647,096 |
Two years before current fiscal year | 698,459 | 425,525 |
Three years before current fiscal year | 422,078 | 349,565 |
Four years before current fiscal year | 296,519 | 188,286 |
Prior | 154,132 | 71,149 |
Revolving Loans Amortized Cost Basis | 189,796 | 92,152 |
Revolving Loans Converted to Term | 5,404 | 2,445 |
Total loans and leases | 4,881,665 | 4,349,274 |
Small Business Banking | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 1,062,130 | 740,667 |
Fiscal year before current fiscal year | 881,568 | 544,164 |
Two years before current fiscal year | 615,818 | 365,208 |
Three years before current fiscal year | 360,557 | 290,221 |
Four years before current fiscal year | 240,712 | 182,504 |
Prior | 151,817 | 71,149 |
Revolving Loans Amortized Cost Basis | 52,879 | 35,135 |
Revolving Loans Converted to Term | 2,740 | 1,813 |
Total loans and leases | 3,368,221 | 2,230,861 |
Small Business Banking | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 1,051,775 | 724,506 |
Fiscal year before current fiscal year | 853,250 | 475,593 |
Two years before current fiscal year | 522,407 | 287,712 |
Three years before current fiscal year | 285,397 | 230,653 |
Four years before current fiscal year | 188,858 | 159,877 |
Prior | 116,645 | 59,065 |
Revolving Loans Amortized Cost Basis | 46,356 | 32,373 |
Revolving Loans Converted to Term | 1,771 | 1,392 |
Total loans and leases | 3,066,459 | 1,971,171 |
Small Business Banking | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 7,838 | 16,080 |
Fiscal year before current fiscal year | 19,651 | 59,595 |
Two years before current fiscal year | 65,715 | 62,857 |
Three years before current fiscal year | 60,615 | 44,478 |
Four years before current fiscal year | 37,661 | 11,203 |
Prior | 13,933 | 3,666 |
Revolving Loans Amortized Cost Basis | 5,066 | 2,131 |
Revolving Loans Converted to Term | 195 | 212 |
Total loans and leases | 210,674 | 200,222 |
Small Business Banking | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 2,517 | 81 |
Fiscal year before current fiscal year | 8,667 | 8,976 |
Two years before current fiscal year | 27,696 | 14,639 |
Three years before current fiscal year | 14,545 | 15,090 |
Four years before current fiscal year | 14,193 | 11,424 |
Prior | 21,239 | 8,418 |
Revolving Loans Amortized Cost Basis | 1,457 | 631 |
Revolving Loans Converted to Term | 774 | 209 |
Total loans and leases | 91,088 | 59,468 |
Specialty Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 647,101 | 304,209 |
Fiscal year before current fiscal year | 256,103 | 102,932 |
Two years before current fiscal year | 82,641 | 60,317 |
Three years before current fiscal year | 61,521 | 59,344 |
Four years before current fiscal year | 55,807 | 5,782 |
Prior | 2,315 | |
Revolving Loans Amortized Cost Basis | 136,917 | 57,017 |
Revolving Loans Converted to Term | 2,664 | 632 |
Total loans and leases | 1,245,069 | 590,233 |
Specialty Lending | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 644,851 | 296,537 |
Fiscal year before current fiscal year | 238,409 | 96,553 |
Two years before current fiscal year | 73,978 | 48,930 |
Three years before current fiscal year | 42,452 | 40,626 |
Four years before current fiscal year | 38,703 | |
Revolving Loans Amortized Cost Basis | 133,889 | 55,229 |
Revolving Loans Converted to Term | 1,816 | 632 |
Total loans and leases | 1,174,098 | 538,507 |
Specialty Lending | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 2,250 | 7,672 |
Fiscal year before current fiscal year | 17,677 | 6,379 |
Two years before current fiscal year | 5,497 | 2,752 |
Three years before current fiscal year | 10,415 | 18,718 |
Four years before current fiscal year | 17,104 | |
Revolving Loans Amortized Cost Basis | 2,953 | 1,711 |
Revolving Loans Converted to Term | 848 | |
Total loans and leases | 56,744 | 37,232 |
Specialty Lending | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Fiscal year before current fiscal year | 17 | |
Two years before current fiscal year | 3,166 | 8,635 |
Three years before current fiscal year | 8,654 | |
Four years before current fiscal year | 5,782 | |
Prior | 2,315 | |
Revolving Loans Amortized Cost Basis | 75 | 77 |
Total loans and leases | 14,227 | 14,494 |
Paycheck Protection Program | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 204,803 | 1,528,180 |
Fiscal year before current fiscal year | 63,572 | |
Total loans and leases | 268,375 | 1,528,180 |
Paycheck Protection Program | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current fiscal year | 204,803 | 1,528,180 |
Fiscal year before current fiscal year | 63,572 | |
Total loans and leases | $ 268,375 | $ 1,528,180 |
Loans and Leases Held for Inv_7
Loans and Leases Held for Investment and Credit Quality - Summary of Credit Quality Indicators by Portfolio Class (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases receivable | $ 4,881,665 | $ 4,349,274 |
Loans receivable, fair value | 645,201 | 815,374 |
Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases receivable | 2,070,000 | 2,610,000 |
Loans Insured or Guaranteed by US Government Authorities | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases receivable | 1,880,000 | 2,440,000 |
Loans Insured or Guaranteed by US Government Authorities | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases receivable | 134,200 | 128,000 |
Loans Insured or Guaranteed by US Government Authorities | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases receivable | $ 63,000 | $ 40,900 |
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, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | $ 42,533 | $ 46,110 |
Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 26,545 | 26,032 |
Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 15,988 | 20,078 |
Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 6,977 | 9,050 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 18,393 | 17,992 |
Commercial & Industrial | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 15,463 | 12,046 |
Commercial & Industrial | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 2,930 | 5,946 |
Commercial & Industrial | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 16,911 | 17,992 |
Commercial & Industrial | Small Business Banking | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 13,981 | 12,046 |
Commercial & Industrial | Small Business Banking | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 2,930 | 5,946 |
Commercial & Industrial | Payroll Protection Program | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 1,482 | |
Commercial & Industrial | Payroll Protection Program | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 1,482 | |
Construction & Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 3,884 | 3,723 |
Construction & Development | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 1,201 | |
Construction & Development | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 2,683 | 3,723 |
Construction & Development | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 3,723 | |
Construction & Development | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 3,884 | |
Construction & Development | Small Business Banking | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 1,201 | |
Construction & Development | Small Business Banking | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 2,683 | |
Construction & Development | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 3,723 | |
Construction & Development | Specialty Lending | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 3,723 | |
Construction & Development | Specialty Lending | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 3,723 | |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 14,725 | 22,153 |
Commercial Real Estate | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 5,733 | 12,258 |
Commercial Real Estate | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 8,992 | 9,895 |
Commercial Real Estate | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 6,977 | 5,327 |
Commercial Real Estate | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 12,410 | 15,085 |
Commercial Real Estate | Small Business Banking | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 5,226 | 6,725 |
Commercial Real Estate | Small Business Banking | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 7,184 | 8,360 |
Commercial Real Estate | Small Business Banking | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 5,169 | 5,327 |
Commercial Real Estate | Specialty Lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 2,315 | 7,068 |
Commercial Real Estate | Specialty Lending | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 507 | 5,533 |
Commercial Real Estate | Specialty Lending | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 1,808 | 1,535 |
Commercial Real Estate | Specialty Lending | Unguaranteed Exposure with No ACL | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Unguaranteed exposure with no allowance | 1,808 | |
Commercial Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 5,531 | 2,242 |
Commercial Land | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 4,148 | 1,728 |
Commercial Land | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 1,383 | 514 |
Commercial Land | Small Business Banking | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 5,531 | 2,242 |
Commercial Land | Small Business Banking | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | 4,148 | 1,728 |
Commercial Land | Small Business Banking | Unguaranteed Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans and leases balance | $ 1,383 | $ 514 |
Loans and Leases Held for Inv_9
Loans and Leases Held for Investment and Credit Quality - Amortized Cost Basis of Collateral-Dependent Loans and Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | $ 4,881,665 | $ 4,349,274 | ||
Financing receivable, allowance for credit loss | 63,584 | 52,306 | $ 28,234 | $ 14,432 |
Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 15,781 | 32,073 | ||
Collateral Dependent Loans, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 8,175 | 9,698 | ||
Collateral Dependent Loans, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 64 | 529 | ||
Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 8,246 | 19,368 | ||
Unguaranteed Portion, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 463 | 4,086 | ||
Unguaranteed Portion, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 13 | 401 | ||
Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 958 | 1,781 | ||
Small Business Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 3,368,221 | 2,230,861 | ||
Specialty Lending | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 1,245,069 | 590,233 | ||
Commercial & Industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 2,268,148 | 2,586,665 | ||
Financing receivable, allowance for credit loss | 37,770 | 26,941 | 15,757 | 6,524 |
Commercial & Industrial | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 698 | 1,279 | ||
Commercial & Industrial | Collateral Dependent Loans, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 7,475 | 9,440 | ||
Commercial & Industrial | Collateral Dependent Loans, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 197 | |||
Commercial & Industrial | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 152 | 531 | ||
Commercial & Industrial | Unguaranteed Portion, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 449 | 4,077 | ||
Commercial & Industrial | Unguaranteed Portion, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 66 | |||
Commercial & Industrial | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 235 | 1,281 | ||
Commercial & Industrial | Small Business Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 1,124,406 | 716,196 | ||
Commercial & Industrial | Small Business Banking | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 698 | 1,279 | ||
Commercial & Industrial | Small Business Banking | Collateral Dependent Loans, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 7,475 | 9,440 | ||
Commercial & Industrial | Small Business Banking | Collateral Dependent Loans, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 197 | |||
Commercial & Industrial | Small Business Banking | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 152 | 531 | ||
Commercial & Industrial | Small Business Banking | Unguaranteed Portion, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 449 | 4,077 | ||
Commercial & Industrial | Small Business Banking | Unguaranteed Portion, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 66 | |||
Commercial & Industrial | Small Business Banking | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 235 | 1,281 | ||
Commercial & Industrial | Specialty Lending | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 875,367 | 342,289 | ||
Construction & Development | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 359,166 | 275,700 | ||
Financing receivable, allowance for credit loss | 3,435 | 5,663 | 2,732 | 2,042 |
Construction & Development | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 3,858 | 3,767 | ||
Construction & Development | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 2,657 | 3,767 | ||
Construction & Development | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 57 | |||
Construction & Development | Small Business Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 277,152 | 183,087 | ||
Construction & Development | Specialty Lending | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 82,014 | 92,613 | ||
Construction & Development | Specialty Lending | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 3,858 | 3,767 | ||
Construction & Development | Specialty Lending | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 2,657 | 3,767 | ||
Construction & Development | Specialty Lending | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 57 | |||
Commercial Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 1,882,016 | 1,155,028 | ||
Financing receivable, allowance for credit loss | 19,068 | 18,148 | 8,427 | 5,259 |
Commercial Real Estate | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 5,684 | 24,764 | ||
Commercial Real Estate | Collateral Dependent Loans, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 700 | 258 | ||
Commercial Real Estate | Collateral Dependent Loans, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 64 | 332 | ||
Commercial Real Estate | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 4,044 | 14,536 | ||
Commercial Real Estate | Unguaranteed Portion, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 14 | 9 | ||
Commercial Real Estate | Unguaranteed Portion, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 13 | 335 | ||
Commercial Real Estate | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 65 | 198 | ||
Commercial Real Estate | Small Business Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 1,594,328 | 999,697 | ||
Commercial Real Estate | Small Business Banking | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 5,172 | 11,568 | ||
Commercial Real Estate | Small Business Banking | Collateral Dependent Loans, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 700 | 258 | ||
Commercial Real Estate | Small Business Banking | Collateral Dependent Loans, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 64 | 332 | ||
Commercial Real Estate | Small Business Banking | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 4,038 | 6,873 | ||
Commercial Real Estate | Small Business Banking | Unguaranteed Portion, Business Assets | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 14 | 9 | ||
Commercial Real Estate | Small Business Banking | Unguaranteed Portion, Other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 13 | 335 | ||
Commercial Real Estate | Small Business Banking | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 65 | 175 | ||
Commercial Real Estate | Specialty Lending | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 287,688 | 155,331 | ||
Commercial Real Estate | Specialty Lending | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 512 | 13,196 | ||
Commercial Real Estate | Specialty Lending | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 6 | 7,663 | ||
Commercial Real Estate | Specialty Lending | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 23 | |||
Commercial Land | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 372,335 | 331,881 | ||
Financing receivable, allowance for credit loss | 3,311 | 1,554 | $ 1,318 | $ 607 |
Commercial Land | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 5,541 | 2,263 | ||
Commercial Land | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 1,393 | 534 | ||
Commercial Land | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | 601 | 302 | ||
Commercial Land | Small Business Banking | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 372,335 | 331,881 | ||
Commercial Land | Small Business Banking | Collateral Dependent Loans, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 5,541 | 2,263 | ||
Commercial Land | Small Business Banking | Unguaranteed Portion, Real Estate | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total loans and leases receivable | 1,393 | 534 | ||
Commercial Land | Small Business Banking | Unguaranteed Portion | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Financing receivable, allowance for credit loss | $ 601 | $ 302 |
Loans and Leases Held for In_10
Loans and Leases Held for Investment and Credit Quality - Activity in the Allowance for Credit Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan Losses: | |||
Beginning Balance | $ 52,306 | $ 28,234 | $ 14,432 |
Impact of adopting ASC 326 | (1,321) | ||
Charge offs | (5,917) | (15,392) | (1,675) |
Recoveries | 1,985 | 127 | 265 |
Provision | 15,210 | 40,658 | 15,212 |
Ending Balance | 63,584 | 52,306 | 28,234 |
Commercial & Industrial | |||
Allowance for Loan Losses: | |||
Beginning Balance | 26,941 | 15,757 | 6,524 |
Impact of adopting ASC 326 | (4,561) | ||
Charge offs | (2,912) | (4,401) | (887) |
Recoveries | 172 | 84 | 246 |
Provision | 13,569 | 20,062 | 9,874 |
Ending Balance | 37,770 | 26,941 | 15,757 |
Construction & Development | |||
Allowance for Loan Losses: | |||
Beginning Balance | 5,663 | 2,732 | 2,042 |
Impact of adopting ASC 326 | 1,131 | ||
Charge offs | (262) | ||
Provision | (1,966) | 1,800 | 690 |
Ending Balance | 3,435 | 5,663 | 2,732 |
Commercial Real Estate | |||
Allowance for Loan Losses: | |||
Beginning Balance | 18,148 | 8,427 | 5,259 |
Impact of adopting ASC 326 | 1,916 | ||
Charge offs | (2,731) | (10,347) | (615) |
Recoveries | 1,813 | 28 | 18 |
Provision | 1,838 | 18,124 | 3,765 |
Ending Balance | 19,068 | 18,148 | 8,427 |
Commercial Land | |||
Allowance for Loan Losses: | |||
Beginning Balance | 1,554 | 1,318 | 607 |
Impact of adopting ASC 326 | 193 | ||
Charge offs | (12) | (644) | (173) |
Recoveries | 15 | 1 | |
Provision | 1,769 | 672 | 883 |
Ending Balance | $ 3,311 | $ 1,554 | $ 1,318 |
Loans and Leases Held for In_11
Loans and Leases Held for Investment and Credit Quality - Impaired Loans and Leases With Associated Reserves and No Associated Reserves (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | $ 56,058 |
Loans, Interest Income Recognized | 1,624 |
Commercial & Industrial | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 13,058 |
Loans, Interest Income Recognized | 196 |
Commercial & Industrial | Small Business Banking | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 10,809 |
Loans, Interest Income Recognized | 137 |
Commercial & Industrial | Specialty Lending | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 2,249 |
Loans, Interest Income Recognized | 59 |
Construction & Development | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 722 |
Loans, Interest Income Recognized | 15 |
Construction & Development | Small Business Banking | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 722 |
Loans, Interest Income Recognized | 15 |
Commercial Real Estate | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 24,851 |
Loans, Interest Income Recognized | 642 |
Commercial Real Estate | Small Business Banking | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 22,996 |
Loans, Interest Income Recognized | 632 |
Commercial Real Estate | Specialty Lending | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 1,855 |
Loans, Interest Income Recognized | 10 |
Commercial Land | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 17,427 |
Loans, Interest Income Recognized | 771 |
Commercial Land | Small Business Banking | |
Financing Receivable, Impaired [Line Items] | |
Loans, Average Balance | 17,427 |
Loans, Interest Income Recognized | $ 771 |
Loans and Leases Held for In_12
Loans and Leases Held for Investment and Credit Quality - Schedule of Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)SecurityLoan | Dec. 31, 2020USD ($)SecurityLoan | Dec. 31, 2019USD ($)SecurityLoan | |
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 10 | 16 | 3 |
Recorded investment at period end | $ | $ 16,330 | $ 28,724 | $ 2,448 |
Interest Only | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 348 | ||
Payment Deferral | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 8 | 9 | 1 |
Recorded investment at period end | $ | $ 12,710 | $ 9,260 | $ 1,841 |
Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 4 | |
Recorded investment at period end | $ | $ 496 | $ 7,075 | |
Other | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 3 | 1 |
Recorded investment at period end | $ | $ 3,124 | $ 12,389 | $ 259 |
Commercial & Industrial | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 4 | 9 | |
Recorded investment at period end | $ | $ 6,593 | $ 2,488 | |
Commercial & Industrial | Payment Deferral | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 3 | 6 | |
Recorded investment at period end | $ | $ 6,097 | $ 1,895 | |
Commercial & Industrial | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 2 | |
Recorded investment at period end | $ | $ 496 | $ 423 | |
Commercial & Industrial | Other | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 170 | ||
Commercial & Industrial | Small Business Banking | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 4 | 7 | |
Recorded investment at period end | $ | $ 6,593 | $ 2,065 | |
Commercial & Industrial | Small Business Banking | Payment Deferral | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 3 | 6 | |
Recorded investment at period end | $ | $ 6,097 | $ 1,895 | |
Commercial & Industrial | Small Business Banking | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 496 | ||
Commercial & Industrial | Small Business Banking | Other | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 170 | ||
Commercial & Industrial | Specialty Lending | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 2 | ||
Recorded investment at period end | $ | $ 423 | ||
Commercial & Industrial | Specialty Lending | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 2 | ||
Recorded investment at period end | $ | $ 423 | ||
Construction & Development | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 1 | |
Recorded investment at period end | $ | $ 1,787 | $ 348 | |
Construction & Development | Interest Only | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 348 | ||
Construction & Development | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 1,787 | ||
Construction & Development | Small Business Banking | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 1 | |
Recorded investment at period end | $ | $ 1,787 | $ 348 | |
Construction & Development | Small Business Banking | Interest Only | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 348 | ||
Construction & Development | Small Business Banking | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 1,787 | ||
Commercial Real Estate | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 6 | 5 | 2 |
Recorded investment at period end | $ | $ 9,737 | $ 19,584 | $ 2,100 |
Commercial Real Estate | Payment Deferral | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 5 | 3 | 1 |
Recorded investment at period end | $ | $ 6,613 | $ 7,365 | $ 1,841 |
Commercial Real Estate | Other | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 2 | 1 |
Recorded investment at period end | $ | $ 3,124 | $ 12,219 | $ 259 |
Commercial Real Estate | Small Business Banking | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 6 | 2 | 2 |
Recorded investment at period end | $ | $ 9,737 | $ 3,738 | $ 2,100 |
Commercial Real Estate | Small Business Banking | Payment Deferral | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 5 | 2 | 1 |
Recorded investment at period end | $ | $ 6,613 | $ 3,738 | $ 1,841 |
Commercial Real Estate | Small Business Banking | Other | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | 1 | |
Recorded investment at period end | $ | $ 3,124 | $ 259 | |
Commercial Real Estate | Specialty Lending | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 3 | ||
Recorded investment at period end | $ | $ 15,846 | ||
Commercial Real Estate | Specialty Lending | Payment Deferral | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 3,627 | ||
Commercial Real Estate | Specialty Lending | Other | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 2 | ||
Recorded investment at period end | $ | $ 12,219 | ||
Commercial Land | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 4,865 | ||
Commercial Land | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 4,865 | ||
Commercial Land | Small Business Banking | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 4,865 | ||
Commercial Land | Small Business Banking | Extend Amortization | |||
Financing Receivable Modifications [Line Items] | |||
Number of Loans | SecurityLoan | 1 | ||
Recorded investment at period end | $ | $ 4,865 |
Loans and Leases Held for In_13
Loans and Leases Held for Investment and Credit Quality - Schedule of Troubled Debt Restructurings (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | $ 16,330 | $ 28,724 | $ 2,448 |
Commercial & Industrial | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | 6,593 | 2,488 | |
Commercial & Industrial | Small Business Banking | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | 6,593 | 2,065 | |
Commercial & Industrial | Small Business Banking | Interest Only And Rate Concession | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | 170 | ||
Commercial & Industrial | Specialty Lending | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | 423 | ||
Commercial Real Estate | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | 9,737 | 19,584 | 2,100 |
Commercial Real Estate | Small Business Banking | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | $ 9,737 | 3,738 | 2,100 |
Commercial Real Estate | Specialty Lending | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | 15,846 | ||
Commercial Real Estate | Specialty Lending | Interest Only And Rate Concession | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | $ 12,200 | ||
Other | Payment Deferral & Rate Concession | |||
Financing Receivable Modifications [Line Items] | |||
Recorded investment at period end | $ 259 |
Leases - Direct Financing Lease
Leases - Direct Financing Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Gross direct finance lease payments receivable | $ 7,333 | $ 10,629 |
Less - unearned interest | (998) | (1,685) |
Net investment in direct financing leases | $ 6,335 | $ 8,944 |
Leases - Future Minimum Finance
Leases - Future Minimum Finance Lease Payments Receivable (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 2,495 |
2023 | 2,102 |
2024 | 1,524 |
2025 | 1,095 |
2026 | 117 |
Total | $ 7,333 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Lease | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lessor Lease Description [Line Items] | |||
Direct financing lease, interest income | $ 669 | $ 838 | $ 991 |
Premises and equipment, net | 123,900 | 134,500 | |
Premises and equipment, gross | 163,400 | 164,300 | |
Premises and equipment, accumulated depreciation | 39,500 | 29,800 | |
Premises and equipment, depreciation expense | 9,700 | 9,800 | 9,700 |
Lease income | $ 9,500 | $ 9,500 | $ 9,400 |
Lessee, operating lease, number of leases on which options to extend lease term will certainly be exercised | Lease | 1 | ||
Finance lease, remaining lease term | 11 months 1 day | ||
Lease term | 91 months | ||
Lease payments | $ 1,100 | ||
Additional option to renew lease | 5 years | ||
Lessee, Operating Lease, Lease Not yet Commenced, Existence of Option to Extend [true false] | true | ||
Not yet commenced, description | As of December 31, 2021, the lease had not commenced. | ||
Minimum | |||
Lessor Lease Description [Line Items] | |||
Operating lease, remaining lease term | 1 year | ||
Maximum | |||
Lessor Lease Description [Line Items] | |||
Operating lease, remaining lease term | 25 years | ||
Lessee, operating lease, renewal term | 20 years |
Leases - Maturity Analysis of F
Leases - Maturity Analysis of Future Minimum Operating Lease Payments Receivable (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 9,057 |
2023 | 9,075 |
2024 | 8,808 |
2025 | 8,935 |
2026 | 8,923 |
Thereafter | 22,252 |
Total | $ 67,050 |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 635 | $ 787 |
Short-term lease cost | 96 | 87 |
Finance lease cost: | ||
Amortization of right-of-use assets | 3 | 5 |
Sublease income | (29) | |
Total net lease cost | $ 734 | $ 850 |
Leases - Summary of Consolidate
Leases - Summary of Consolidated Balance Sheet Related to Finance Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 2,228 | $ 2,522 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease liability | $ 2,436 | $ 2,756 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesMember | us-gaap:OtherLiabilitiesMember |
Finance lease right-of-use asset | $ 4 | $ 9 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Finance lease liability | $ 4 | $ 9 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Leases (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases | 12 years 4 months 6 days | 12 years 2 months 15 days |
Finance lease | 11 months 1 day | 1 year 11 months 1 day |
Operating leases | 2.74% | 2.87% |
Finance lease | 3.10% | 3.10% |
Leases - Summary of Operating a
Leases - Summary of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating leases, 2022 | $ 871 | |
Operating leases, 2023 | 618 | |
Operating leases, 2024 | 237 | |
Operating leases, 2025 | 78 | |
Operating leases, 2026 | 43 | |
Operating leases, thereafter | 1,159 | |
Operating leases, future lease payments | 3,006 | |
Operating leases, less: imputed interest | (570) | |
Operating leases, total lease liabilities | 2,436 | $ 2,756 |
Finance leases | ||
Finance leases, 2022 | 4 | |
Finance leases, future lease payments | 4 | |
Finance leases, total lease liabilities | $ 4 | $ 9 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Assets at Fair Value [Line Items] | |||
Unpaid principal balance of loans serviced for others requiring recognition of a servicing asset | $ 2,290 | $ 2,210 | $ 2,260 |
Unpaid principal balances of loan serviced for others | $ 3,300 | $ 3,210 | $ 2,970 |
Weighted Average | |||
Servicing Assets at Fair Value [Line Items] | |||
Fair value of servicing rights, discount rate | 13.20% | 11.70% | |
Fair value of servicing rights, prepayment rate | 16.20% | 18.80% |
Servicing Assets - Summary of A
Servicing Assets - Summary of Activity Pertaining to Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Servicing Asset At Fair Value Amount Roll Forward | ||
Balance at beginning of period | $ 33,918 | $ 35,365 |
Additions, net | 11,382 | 8,511 |
Fair value changes: | ||
Due to changes in valuation inputs or assumptions | (982) | (1,049) |
Decay due to increases in principal paydowns or runoff | (10,744) | (8,909) |
Balance at end of period | $ 33,574 | $ 33,918 |
Premises and Equipment - Compon
Premises and Equipment - Components of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | $ 317,633 | $ 315,564 |
Less accumulated depreciation | (77,437) | (56,297) |
Premises and equipment, net of depreciation | 240,196 | 259,267 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 54,746 | 54,718 |
Land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 5,180 | 5,180 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 18,683 | 18,032 |
Computers and software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 8,399 | 6,001 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 8,106 | 8,068 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 8,650 | 8,650 |
Transportation | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 49,766 | 30,496 |
Solar panels | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | 163,391 | 164,295 |
Deposits on fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, total | $ 712 | $ 20,124 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 21.2 | $ 21.6 | $ 19.3 |
Deposits - Types of Deposits (D
Deposits - Types of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits Liabilities Balance Sheet Reported Amounts [Abstract] | ||
Noninterest-bearing deposits | $ 89,279 | $ 75,287 |
Interest-bearing deposits: | ||
Interest-bearing checking | 250,060 | |
Money market | 105,628 | 117,010 |
Savings | 3,507,354 | 2,081,561 |
Time deposits | 3,409,783 | 3,188,910 |
Total Interest-bearing deposits | 7,022,765 | 5,637,541 |
Total deposits | $ 7,112,044 | $ 5,712,828 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits Liabilities Balance Sheet Reported Amounts [Abstract] | ||
Aggregate amount of time deposits in denominations of $250 thousand or more | $ 564.8 | $ 644 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Total Time Deposits (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Deposits Liabilities Balance Sheet Reported Amounts [Abstract] | |
2022 | $ 1,918,843 |
2023 | 451,722 |
2024 | 271,522 |
2025 | 194,826 |
2026 | 193,730 |
Thereafter | 379,140 |
Total | $ 3,409,783 |
Borrowings - Total Outstanding
Borrowings - Total Outstanding Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Borrowings | $ 318,289 | $ 1,542,093 |
Third Party Correspondent Bank | Term Loan | ||
Debt Instrument [Line Items] | ||
Borrowings | 42,734 | |
Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Borrowings | 267,600 | |
Federal Reserve Bank | Paycheck Protection Program Liquidity Facility | ||
Debt Instrument [Line Items] | ||
Borrowings | 267,550 | 1,527,596 |
Third Party Correspondent Bank | Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Borrowings | 8,000 | 14,488 |
Other Long Term Debt | ||
Debt Instrument [Line Items] | ||
Borrowings | $ 5 | $ 9 |
Borrowings - Total Outstandin_2
Borrowings - Total Outstanding Borrowings (Parenthetical) (Details) - USD ($) | Oct. 20, 2021 | Apr. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 20, 2021 | Oct. 19, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||||||||
Borrowings | $ 318,289,000 | $ 1,542,093,000 | ||||||
Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-refundable loan origination fee | $ 750,000 | |||||||
Debt instrument, maturity date | Oct. 10, 2024 | |||||||
Debt instrument accrued interest term | The line of credit is unsecured and accrues interest at 30-day SOFR plus 1.25%, with an interest rate cap of 4.25% and an interest rate floor of 2.75%. Payments are interest only with all principal and accrued interest due at maturity on October 10, 2024. | |||||||
Line of credit, maximum borrowing capacity | $ 100,000,000 | $ 50,000,000 | ||||||
Line of credit, advances | $ 8,000,000 | |||||||
Current available credit facility | $ 92,000,000 | |||||||
Minimum | Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term | 12 months | |||||||
Maximum | Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term | 36 months | |||||||
Third Party Correspondent Bank | Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | |||||||
Third Party Correspondent Bank | SOFR | Revolving Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Debt instrument interest rate cap | 4.25% | |||||||
Debt instrument interest rate floor | 2.75% | |||||||
Third Party Correspondent Bank | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 50,000,000 | |||||||
Debt instrument fixed interest rate | 2.95% | |||||||
Non-refundable loan origination fee | $ 325,000 | |||||||
Debt instrument term | 60 months | |||||||
Debt instrument, maturity date | Mar. 30, 2026 | |||||||
Borrowings | 42,734,000 | |||||||
Federal Reserve Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings | 267,600,000 | |||||||
Federal Reserve Bank | Paycheck Protection Program Liquidity Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument fixed interest rate | 0.35% | |||||||
Borrowings | $ 267,550,000 | $ 1,527,596,000 | ||||||
Federal Reserve Bank | Paycheck Protection Program Liquidity Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Apr. 6, 2022 | |||||||
Federal Reserve Bank | Paycheck Protection Program Liquidity Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | May 5, 2026 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Repurchased agreements, borrowing capacity | $ 5,000,000 | $ 5,000,000 |
Repurchases agreements, outstanding balance | 0 | 0 |
FHLB maximum amount available | 2,020,000,000 | 2,010,000,000 |
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | 167,500,000 | 167,500,000 |
Short term borrowings | 0 | 0 |
Federal Reserve Bank | Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Collateral amount | 2,440,000,000 | 2,220,000,000 |
Remaining available credit facility | 2,040,000,000 | 1,770,000,000 |
Short term borrowings | $ 0 | $ 0 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current income tax expense: | |||
Federal | $ 12,774 | $ 2,071 | $ 1,339 |
State | 6,211 | 3,222 | 2,625 |
Total current tax expense | 18,985 | 5,293 | 3,964 |
Deferred income tax expense (benefit): | |||
Federal | 22,886 | (12,946) | 3,031 |
State | 1,922 | (4,501) | (1,564) |
Total deferred tax expense (benefit) | 24,808 | (17,447) | 1,467 |
Income tax expense (benefit), as reported | $ 43,793 | $ (12,154) | $ 5,431 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
Income tax penalties and interest expense | $ 0 | $ 0 | $ 0 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at the statutory rate | $ 44,266 | $ 9,952 | $ 4,928 |
State income tax expense (benefit) , net of federal | 6,426 | (1,009) | 838 |
Stock-based compensation expense | (4,689) | (17,489) | 443 |
Decrease in taxes due to investment tax credit | (3,392) | 0 | (1,561) |
Net operating loss carryback arising from CARES Act | 0 | (3,732) | 0 |
Other | 1,182 | 124 | 783 |
Income tax expense (benefit), as reported | $ 43,793 | $ (12,154) | $ 5,431 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Mark to market on loans held for sale | $ 24,213 | $ 25,107 |
Allowance for loan and lease losses | 19,918 | 19,311 |
Stock-based compensation expense | 3,720 | 1,805 |
Deferred loan fees and costs, net | 3,388 | 6,535 |
Accrued expenses | 2,247 | 2,487 |
Operating lease liabilities | 584 | 661 |
Goodwill and intangibles | 71 | 278 |
Tax credit carryforwards | 0 | 21,892 |
Other | 1,474 | 1,036 |
Total deferred tax assets | 55,615 | 79,112 |
Deferred tax liabilities: | ||
Premises and equipment | 41,038 | 39,847 |
Net unrealized gains on equity securities | 12,282 | 4,386 |
Net unrealized losses on equity method investments | 10,991 | 11,417 |
Unguaranteed loan discount | 6,171 | 12,612 |
Net unrealized gains on securities available for sale | 614 | 6,792 |
Operating lease right-of-use assets | 534 | 605 |
Other | 0 | 843 |
Total deferred tax liabilities | 71,630 | 76,502 |
Net deferred tax (liability) asset | $ (16,015) | |
Net deferred tax (liability) asset | $ 2,610 |
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, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Balance at beginning of period | $ 908 | $ 570 |
Issuances | 229 | 203 |
Net gains on derivative instruments | 1,088 | 168 |
Settlements | (553) | (33) |
Balance at end of period | $ 1,672 | $ 908 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | $ 906,052 | $ 750,098 | |
Loans held for sale | 25,310 | 36,111 | |
Loans Accounted for Under the Fair Value Option | 645,201 | 815,374 | |
Servicing assets | 33,574 | 33,918 | $ 35,365 |
US government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 10,637 | 15,919 | |
Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 889,339 | 730,454 | |
Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for sale | 25,310 | 36,111 | |
Loans Accounted for Under the Fair Value Option | 645,201 | 815,374 | |
Servicing assets | 33,574 | 33,918 | |
Equity warrant assets | 1,672 | 908 | |
Total assets at fair value | 1,614,188 | 1,638,760 | |
Recurring | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,576 | 3,725 | |
Recurring | Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 2,500 | ||
Recurring | US government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 10,637 | 15,919 | |
Recurring | Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 889,339 | 730,454 | |
Recurring | Mutual Fund | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Mutual fund | 2,379 | 2,351 | |
Recurring | Level 1 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for sale | 0 | 0 | |
Loans Accounted for Under the Fair Value Option | 0 | 0 | |
Servicing assets | 0 | 0 | |
Equity warrant assets | 0 | 0 | |
Total assets at fair value | 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 | US 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 | 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 sale | 0 | 0 | |
Loans Accounted for Under the Fair Value Option | 0 | 0 | |
Servicing assets | 0 | 0 | |
Equity warrant assets | 0 | 0 | |
Total assets at fair value | 908,335 | 752,353 | |
Recurring | Level 2 | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 3,480 | 3,629 | |
Recurring | Level 2 | Other debt securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 2,500 | ||
Recurring | Level 2 | US government agencies | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 10,637 | 15,919 | |
Recurring | Level 2 | Mortgage-backed securities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 889,339 | 730,454 | |
Recurring | Level 2 | Mutual Fund | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Mutual fund | 2,379 | 2,351 | |
Recurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loans held for sale | 25,310 | 36,111 | |
Loans Accounted for Under the Fair Value Option | 645,201 | 815,374 | |
Servicing assets | 33,574 | 33,918 | |
Equity warrant assets | 1,672 | 908 | |
Total assets at fair value | 705,853 | 886,407 | |
Recurring | Level 3 | Municipal bonds | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Investment securities available-for-sale | 96 | 96 | |
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 | US 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 | 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 (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Principal paydown value | $ 1 | $ 1 |
Fair value adjustment gain (loss) | $ 4 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 6,900,000 | 6,900,000 |
Loss related to borrower specific credit risk | $ 1,500,000 | $ 5,600,000 |
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, 2021 | Dec. 31, 2020 |
Fair Value Option Quantitative Disclosures [Line Items] | ||
Total Loans, Fair Value Carrying amount | $ 670,511 | $ 851,485 |
Total Loans, Unpaid Principal Balance | 692,897 | 883,217 |
Total Loans, Difference | (22,386) | (31,732) |
Nonaccruals, Fair Value Carrying amount | 38,262 | 35,499 |
Nonaccruals, Unpaid Principal Balance | 42,841 | 39,318 |
Nonaccruals, Difference | (4,579) | (3,819) |
90 Days or More Past Due, Fair Value Carrying Amount | 24,057 | 25,532 |
90 Days or More Past Due, Unpaid Principal Balance | 25,633 | 28,741 |
90 Days or More Past Due, Difference | (1,576) | (3,209) |
Loans held for sale | ||
Fair Value Option Quantitative Disclosures [Line Items] | ||
Total Loans, Fair Value Carrying amount | 25,310 | 36,111 |
Total Loans, Unpaid Principal Balance | 26,831 | 38,135 |
Total Loans, Difference | (1,521) | (2,024) |
Loans held for investment | ||
Fair Value Option Quantitative Disclosures [Line Items] | ||
Total Loans, Fair Value Carrying amount | 645,201 | 815,374 |
Total Loans, Unpaid Principal Balance | 666,066 | 845,082 |
Total Loans, Difference | (20,865) | (29,708) |
Nonaccruals, Fair Value Carrying amount | 38,262 | 35,499 |
Nonaccruals, Unpaid Principal Balance | 42,841 | 39,318 |
Nonaccruals, Difference | (4,579) | (3,819) |
90 Days or More Past Due, Fair Value Carrying Amount | 24,057 | 25,532 |
90 Days or More Past Due, Unpaid Principal Balance | 25,633 | 28,741 |
90 Days or More Past Due, Difference | $ (1,576) | $ (3,209) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Net Gains (Losses) from Changes in Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Option Quantitative Disclosures [Line Items] | |||
Gains (Losses) on Loans Accounted for under the Fair Value Option | $ 4,257 | $ (13,083) | $ 7,408 |
Loans held for sale | |||
Fair Value Option Quantitative Disclosures [Line Items] | |||
Gains (Losses) on Loans Accounted for under the Fair Value Option | 502 | 232 | |
Loans held for investment | |||
Fair Value Option Quantitative Disclosures [Line Items] | |||
Gains (Losses) on Loans Accounted for under the Fair Value Option | $ 3,755 | $ (13,315) |
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, 2021 | Dec. 31, 2020 | |
Loans held for sale | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 36,111 | $ 16,198 |
Repurchases & Issuances | 35,275 | |
Fair value changes | 502 | 232 |
Sales | (6,082) | |
Settlements | (11,303) | (9,512) |
Balance at end of period | 25,310 | 36,111 |
Loans held for investment | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | 815,374 | 824,520 |
Repurchases & Issuances | 37,159 | 173,280 |
Fair value changes | 3,755 | (13,315) |
Settlements | (211,087) | (169,111) |
Balance at end of period | $ 645,201 | $ 815,374 |
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, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Foreclosed assets | $ 620 | $ 4,155 |
Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 1,567 | 4,159 |
Foreclosed assets | 620 | 4,155 |
Total assets at fair value | 2,187 | 42,555 |
Long-lived asset held for sale | 8,874 | |
Equity security investment with a non-readily determinable fair value | 25,367 | |
Non-recurring Fair Value | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 8,874 | |
Long-lived asset held for sale | 8,874 | |
Non-recurring Fair Value | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 25,367 | |
Equity security investment with a non-readily determinable fair value | 25,367 | |
Non-recurring Fair Value | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral-dependent loans | 1,567 | 4,159 |
Foreclosed assets | 620 | 4,155 |
Total assets at fair value | $ 2,187 | $ 8,314 |
Fair Value of Financial Inst_11
Fair Value of Financial Instruments - Analysis of Level 3 Valuation Techniques (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Asset, fair value | $ 1,614,188 | $ 1,638,760 |
Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Asset, fair value | 705,853 | 886,407 |
Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Asset, fair value | 2,187 | 42,555 |
Non-recurring Fair Value | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Asset, fair value | $ 2,187 | $ 8,314 |
Municipal bonds | Discounted Expected Cash Flows | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Municipal bond, measurement input | 0.048 | 0.043 |
Municipal bonds | Discounted Expected Cash Flows | Prepayment speed | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Municipal bond, measurement input | 0.050 | 0.050 |
Loans held for sale | Minimum | Discounted Expected Cash Flows | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.062 | 0.042 |
Loans held for sale | Maximum | Discounted Expected Cash Flows | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.219 | 0.185 |
Loans held for sale | Weighted Average | Discounted Expected Cash Flows | Prepayment speed | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.174 | 0.190 |
Loans held for investment | Minimum | Discounted Expected Cash Flows | Prepayment speed | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.062 | 0.042 |
Loans held for investment | Minimum | Discounted Expected Cash Flows | Loss rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0 |
Loans held for investment | Minimum | Discounted appraisals | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.100 | 0.100 |
Loans held for investment | Maximum | Discounted Expected Cash Flows | Prepayment speed | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.219 | 0.185 |
Loans held for investment | Maximum | Discounted Expected Cash Flows | Loss rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.702 | 0.732 |
Loans held for investment | Maximum | Discounted appraisals | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.850 | 0.830 |
Loans held for investment | Weighted Average | Discounted Expected Cash Flows | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.015 | 0.015 |
Loans held for investment | Weighted Average | Discounted appraisals | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.174 | 0.190 |
Equity Warrant Assets | Black-Scholes Option Pricing Model | Discount rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.200 | 0.200 |
Equity Warrant Assets | Minimum | Black-Scholes Option Pricing Model | Expected Volatility Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.262 | 0.265 |
Equity Warrant Assets | Minimum | Black-Scholes Option Pricing Model | Risk-Free Interest Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.0126 | 0.0036 |
Equity Warrant Assets | Minimum | Black-Scholes Option Pricing Model | Expected Term | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 4 years | 5 years |
Equity Warrant Assets | Maximum | Black-Scholes Option Pricing Model | Expected Volatility Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.882 | 0.871 |
Equity Warrant Assets | Maximum | Black-Scholes Option Pricing Model | Risk-Free Interest Rate | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.0152 | 0.0093 |
Equity Warrant Assets | Maximum | Black-Scholes Option Pricing Model | Expected Term | Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 10 years | 10 years |
Collateral dependent loans | Minimum | Discounted appraisals | Discount rate | Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.100 | 0.100 |
Collateral dependent loans | Maximum | Discounted appraisals | Discount rate | Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.990 | 0.830 |
Foreclosed assets | Minimum | Discounted appraisals | Discount rate | Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.090 | 0.100 |
Foreclosed assets | Maximum | Discounted appraisals | Discount rate | Non-recurring Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Measurement input | 0.100 | 0.200 |
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, 2021 | Dec. 31, 2020 |
Financial assets | ||
Cash and due from banks | $ 187,203 | $ 297,167 |
Federal funds sold | 16,547 | 21,153 |
Certificates of deposit with other banks | 4,750 | 6,500 |
Loans held for sale | 25,310 | 36,111 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 645,201 | 815,374 |
Carrying Amount | ||
Financial assets | ||
Cash and due from banks | 187,203 | 297,167 |
Federal funds sold | 16,547 | 21,153 |
Certificates of deposit with other banks | 4,750 | 6,500 |
Loans held for sale | 1,091,209 | 1,139,359 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 4,812,477 | 4,277,250 |
Financial liabilities | ||
Deposits | 7,112,044 | 5,712,828 |
Borrowings | 318,289 | 1,542,093 |
Estimate of Fair Value Measurement | ||
Financial assets | ||
Cash and due from banks | 187,203 | 297,167 |
Federal funds sold | 16,547 | 21,153 |
Certificates of deposit with other banks | 4,930 | 6,906 |
Loans held for sale | 1,197,307 | 1,235,122 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 4,958,875 | 4,366,489 |
Financial liabilities | ||
Deposits | 6,942,512 | 5,711,781 |
Borrowings | 312,036 | 1,542,171 |
Level 1 | Estimate of Fair Value Measurement | ||
Financial assets | ||
Cash and due from banks | 187,203 | 297,167 |
Federal funds sold | 16,547 | 21,153 |
Certificates of deposit with other banks | 4,930 | 6,906 |
Level 2 | Estimate of Fair Value Measurement | ||
Financial liabilities | ||
Deposits | 6,942,512 | 5,711,781 |
Level 3 | Estimate of Fair Value Measurement | ||
Financial assets | ||
Loans held for sale | 1,197,307 | 1,235,122 |
Loans and leases held for investment, net of allowance for credit losses on loans and leases | 4,958,875 | 4,366,489 |
Financial liabilities | ||
Borrowings | $ 312,036 | $ 1,542,171 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Oct. 12, 2021USD ($) | Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($) |
Concentration Risk [Line Items] | |||
Litigation, agreed to pay | $ 3,900 | ||
Commitment letters expiration period (in days) | 90 days | ||
Commitments for on-balance sheet instruments | $ 10,400 | $ 15,800 | |
Maximum retained credit exposure | 15,000 | ||
Future minimum lease payments receivable under non-cancelable operating leases | $ 67,050 | ||
Thirty Relationships | |||
Concentration Risk [Line Items] | |||
Number of relationships that have retained unguaranteed exposure | Customer | 30 | ||
Retained credit exposure | $ 748,300 | ||
Retained exposure, amount disbursed | 356,700 | ||
One Relationship | |||
Concentration Risk [Line Items] | |||
Future minimum lease payments receivable under non-cancelable operating leases | $ 20,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | $ 2,645,140 | $ 2,077,823 |
Commitments to Extend Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | 2,634,387 | 2,054,910 |
Standby Letters of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Total unfunded off-balance sheet credit risk | $ 10,753 | $ 22,913 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) | Feb. 11, 2019$ / sharesshares | Aug. 10, 2018shares | May 14, 2018$ / shares | May 24, 2016shares | Dec. 31, 2021USD ($)simulation$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2010shares | May 11, 2021shares | May 15, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expense recognized | $ | $ 4,400,000 | $ 3,900,000 | $ 3,000,000 | |||||||
Intrinsic value of options exercised | $ | $ 46,300,000 | $ 15,900 | $ 785,000 | |||||||
Shares, granted (in shares) | 0 | 0 | 0 | |||||||
Cash Bonus | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation expense | $ | $ 7,700,000 | $ 6,700,000 | $ 7,200,000 | |||||||
Special Bonus | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Compensation expense | $ | 4,000,000 | 7,200,000 | ||||||||
Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | 1,300,000 | $ 1,500,000 | $ 1,600,000 | |||||||
Unrecognized compensation costs, stock options | $ | $ 803,000 | |||||||||
Unrecognized compensation costs period recognized | 9 months 7 days | |||||||||
Market Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 500,000 | 0 | 500,000 | |||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 8.81 | |||||||||
Number of days share price must be maintained | 20 days | |||||||||
Units earned as a percent of units awarded | 100.00% | |||||||||
Number of simulations used | simulation | simulation | 100,000 | |||||||||
Measurement period | 10 years | |||||||||
Risk free interest rate | 2.62% | |||||||||
Expected volatility rate | 37.60% | |||||||||
Expected dividend rate | 0.78% | |||||||||
Additional compensation expense | $ | $ 543,000 | |||||||||
Compensation expense | $ | $ 4,200,000 | $ 9,700,000 | 7,900,000 | |||||||
Number of shares met performance stock price conditions | 575,500 | 2,513,233 | ||||||||
Performance stock price condition met, price one | $ / shares | $ 45 | $ 34 | ||||||||
Performance stock price condition met, price two | $ / shares | 48 | 35 | ||||||||
Performance stock price condition met, price three | $ / shares | 50 | 38 | ||||||||
Performance stock price condition met, price four | $ / shares | $ 55 | $ 40 | ||||||||
Compensation remaining expense fully recognized | $ | $ 3,700,000 | $ 2,400,000 | ||||||||
Number of remaining shares | 0 | 583,500 | ||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | $ | $ 11,400,000 | $ 3,500,000 | $ 2,200,000 | |||||||
Unrecognized compensation costs, stock options | $ | $ 77,300,000 | |||||||||
Unrecognized compensation costs period recognized | 4 years 8 months 8 days | |||||||||
Granted (in shares) | 1,329,508 | |||||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 58.19 | |||||||||
Number of shares met performance stock price conditions | 182,272 | |||||||||
Number of remaining shares | 1,907,513 | 889,839 | ||||||||
Market RSU Granted on May 14, 2018 | One Employee | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 10 years | 7 years | ||||||||
Granted (in shares) | 75,000 | |||||||||
Share price threshold for performance criteria (in dollars per share) | $ / shares | $ 48 | |||||||||
Number of days share price must be maintained | 20 days | |||||||||
Market RSU Granted on August 10, 2018 | Eleven Employees | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 10 years | 7 years | ||||||||
Shares, granted (in shares) | 410,000 | |||||||||
Minimum | Market Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share price threshold for performance criteria (in dollars per share) | $ / shares | $ 45 | |||||||||
Expected term | 4 years 6 months | |||||||||
Minimum | Market RSU Granted on May 14, 2018 | One Employee | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share price threshold for performance criteria (in dollars per share) | $ / shares | $ 35 | |||||||||
Maximum | Market Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share price threshold for performance criteria (in dollars per share) | $ / shares | $ 55 | |||||||||
Expected term | 5 years 9 months 18 days | |||||||||
Maximum | Market RSU Granted on May 14, 2018 | One Employee | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share price threshold for performance criteria (in dollars per share) | $ / shares | $ 48 | |||||||||
2015 Omnibus Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common voting shares authorized (in shares) | 7,000,000 | |||||||||
Options or restricted shares of expiration period | 10 years | |||||||||
Percentage of fair market value of common stock | 100.00% | |||||||||
2015 Omnibus Plan | Stock Options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of common voting shares authorized (in shares) | 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) | 1,329,508 | 586,132 | 164,828 | |||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 58.19 | $ 17.78 | $ 17 | |||||||
2015 Omnibus Plan | Market Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 500,000 | |||||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 8.81 | |||||||||
2015 Omnibus Plan | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
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) | 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) | 586,132 | 164,828 | ||||||||
Shares granted, weighted average grand date fair value (in dollars per share) | $ / shares | $ 17.78 | $ 17 | ||||||||
Employee Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Maximum annual purchase per employee | $ | $ 25,000 | |||||||||
Purchase date discount | 15.00% | |||||||||
Share-based compensation expense | $ | $ 118,000 | $ 92,000 | $ 77,000 |
Benefit Plans - Stock Option Ac
Benefit Plans - Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, outstanding, beginning balance (in shares) | shares | 1,877,762 |
Shares, exercised (in shares) | shares | (767,988) |
Shares, forfeited (in shares) | shares | (47,093) |
Shares, outstanding, ending balance (in shares) | shares | 1,062,681 |
Shares, exercisable (in shares) | shares | 679,831 |
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 | $ 11.78 |
Weighted average exercise price, exercised (in dollars per share) | $ / shares | 9.89 |
Weighted average exercise price, forfeited (in dollars per share) | $ / shares | 16.31 |
Weighted average exercise price, outstanding, ending balance (in dollars per share) | $ / shares | 12.94 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 11.72 |
Weighted average remaining contractual term, outstanding | 3 years 3 months 3 days |
Weighted average remaining contractual term, exercisable | 3 years 18 days |
Aggregate intrinsic value, outstanding | $ | $ 79,010,231 |
Aggregate intrinsic value, exercisable | $ | $ 51,374,053 |
Benefit Plans - Summary of Non-
Benefit Plans - Summary of Non-vested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares, non-vested, beginning balance (in shares) | 1,022,636 | 1,485,396 | 1,839,830 |
Shares, vested (in shares) | (592,693) | (387,867) | (288,394) |
Shares, forfeited (in shares) | (47,093) | (74,893) | (66,040) |
Shares, non-vested, ending balance (in shares) | 382,850 | 1,022,636 | 1,485,396 |
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) | $ 5.38 | $ 4.73 | $ 4.60 |
Weighted average grant date fair value, vested (in dollars per share) | 4.35 | 3.05 | 4.20 |
Weighted average grant date fair value, forfeited (in dollars per share) | 7.28 | 4.52 | 3.50 |
Weighted average grant date fair value, non-vested, ending balance (in dollars per share) | $ 6.75 | $ 5.38 | $ 4.73 |
Benefit Plans - Restricted Stoc
Benefit Plans - Restricted Stock Unit Activity (Details) - $ / shares | Feb. 11, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Stock Units (RSUs) | ||||
Shares | ||||
Shares, non-vested, beginning balance (in shares) | 889,839 | |||
Granted (in shares) | 1,329,508 | |||
Shares, vested (in shares) | (182,272) | |||
Shares, forfeited (in shares) | (129,562) | |||
Shares, non-vested, ending balance (in shares) | 1,907,513 | 889,839 | ||
Weighted Average Grant Date Fair Value | ||||
Shares, non-vested, weighted average grant date fair value (in dollars per share) | $ 18.94 | |||
Shares granted, weighted average grand date fair value (in dollars per share) | 58.19 | |||
Shares vested, weighted average grant date fair value (in dollars per share) | 18.77 | |||
Shares forfeited, weighted average grant date fair value (in dollars per share) | 21.77 | |||
Shares, non-vested, weighted average grant date fair value (in dollars per share) | $ 46.12 | $ 18.94 | ||
Market Restricted Stock | ||||
Shares | ||||
Shares, non-vested, beginning balance (in shares) | 583,500 | |||
Granted (in shares) | 500,000 | 0 | 500,000 | |
Shares, vested (in shares) | (575,500) | (2,513,233) | ||
Shares, forfeited (in shares) | (8,000) | |||
Shares, non-vested, ending balance (in shares) | 0 | 583,500 | ||
Weighted Average Grant Date Fair Value | ||||
Shares, non-vested, weighted average grant date fair value (in dollars per share) | $ 8.38 | |||
Shares granted, weighted average grand date fair value (in dollars per share) | $ 8.81 | |||
Shares vested, weighted average grant date fair value (in dollars per share) | 7.62 | |||
Shares forfeited, weighted average grant date fair value (in dollars per share) | $ 6.76 | |||
Shares, non-vested, weighted average grant date fair value (in dollars per share) | $ 8.38 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Minimum common equity tier 1 ratio | 4.50% | ||
Minimum common equity, capital conservation buffer | 2.50 | ||
Minimum common equity tier 1 ratio including conservation buffer | 7.00% | ||
Minimum tier 1 risk-based capital ratio | 6 | ||
Minimum tier 1 risk-based capital ratio including conservation buffer | 8 | ||
Minimum total risk-based capital ratio | 8 | ||
Minimum total risk-based capital ratio including conservation buffer | 10.5 | ||
Minimum leverage tier 1 capital ratio | 4 | ||
Retained earnings | $ 400,893 | $ 235,724 | |
Accounting Standards Update 2016-13 | Restatement Adjustment | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Retained earnings | $ 822 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
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 | 8 | |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital to risk-weighted assets ratio, minimum capital requirement | 6 | |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets ratio, minimum capital requirement | 4 | |
Live Oak Bancshares, Inc. | ||
Common Equity Tier 1 to Risk-Weighted Assets [Abstract] | ||
Common equity tier 1 capital | $ 689,367 | $ 521,568 |
Common equity tier 1 capital ratio | 12.38 | 12.15 |
Common equity tier 1 capital, minimum capital requirement | $ 250,619 | $ 193,172 |
Common equity tier 1 capital ratio, minimum capital requirement | 4.50% | 4.50% |
Capital [Abstract] | ||
Total capital to risk-weighted assets | $ 753,691 | $ 574,621 |
Total capital risk to weighted--assets, actual | 13.53 | 13.39 |
Total capital to risk-weighted assets, minimum capital requirement | $ 445,544 | $ 343,417 |
Total capital to risk-weighted assets ratio, minimum capital requirement | 8 | 8 |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital to risk-weighted assets, actual | $ 689,367 | $ 521,568 |
Tier 1 to risk-weighted assets, actual | 12.38 | 12.15 |
Tier 1 capital to risk-weighted assets, minimum capital requirement | $ 334,158 | $ 257,563 |
Tier 1 capital to risk-weighted assets ratio, minimum capital requirement | 6 | 6 |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets, actual | $ 689,367 | $ 521,568 |
Tier 1 to average assets, actual | 8.87 | 8.40 |
Tier 1 capital to average assets, minimum capital requirement | $ 310,902 | $ 248,417 |
Tier 1 capital to average assets ratio, minimum capital requirement | 4 | 4 |
Subsidiaries | ||
Common Equity Tier 1 to Risk-Weighted Assets [Abstract] | ||
Common equity tier 1 capital | $ 640,652 | $ 470,069 |
Common equity tier 1 capital ratio | 12.05 | 11.25 |
Common equity tier 1 capital, minimum capital requirement | $ 239,201 | $ 188,012 |
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 | $ 345,512 | $ 271,573 |
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 | $ 704,976 | $ 522,305 |
Total capital risk to weighted--assets, actual | 13.26 | 12.50 |
Total capital to risk-weighted assets, minimum capital requirement | $ 425,246 | $ 334,243 |
Total capital to risk-weighted assets ratio, minimum capital requirement | 8 | 8 |
Total capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions | $ 531,557 | $ 417,804 |
Total capital to risk-weighted assets ratio, minimum to be well capitalized under prompt corrective action provisions | 10 | 10 |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital to risk-weighted assets, actual | $ 640,652 | $ 470,069 |
Tier 1 to risk-weighted assets, actual | 12.05 | 11.25 |
Tier 1 capital to risk-weighted assets, minimum capital requirement | $ 318,934 | $ 250,683 |
Tier 1 capital to risk-weighted assets ratio, minimum capital requirement | 6 | 6 |
Tier 1 capital to risk-weighted assets, minimum to be well capitalized under prompt corrective action provisions | $ 425,246 | $ 334,243 |
Tier 1 to risk-weighted assets ratio, minimum to be well capitalized under prompt corrective action provisions | 8 | 8 |
Tier One Leverage Capital [Abstract] | ||
Tier 1 capital to average assets, actual | $ 640,652 | $ 470,069 |
Tier 1 to average assets, actual | 8.32 | 7.60 |
Tier 1 capital to average assets, minimum capital requirement | $ 307,931 | $ 247,288 |
Tier 1 capital to average assets ratio, minimum capital requirement | 4 | 4 |
Tier 1 capital to average assets, minimum to be well capitalized under prompt corrective action provisions | $ 384,914 | $ 309,110 |
Tier 1 to average assets ratio, minimum to be well capitalized under prompt corrective action provisions | 5 | 5 |
Transactions with Related Par_2
Transactions with Related Parties (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Related party loans | $ 1,900,000 | $ 2,100,000 | |
Related party loans originated repayments | 2,100,000 | 0 | |
Deposits from related parties | 40,300,000 | 40,600,000 | |
Equity method investments | $ 84,150,000 | 77,928,000 | |
Finxact LLC | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 15.10% | ||
Equity method investments | $ 5,100,000 | 1,400,000 | |
Payments incurred for related parties transactions | $ 1,600,000 | 1,100,000 | $ 24,000 |
Finxact LLC | Voting Common Stock | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 5.00% | ||
Finxact LLC | Directors and Officers | |||
Related Party Transaction [Line Items] | |||
Ownership percentage by noncontrolling owners | 6.40% | ||
Payrailz, LLC | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 13.60% | ||
Payments incurred for related parties transactions | $ 0 | 0 | 250,000 |
Payrailz, LLC | Directors and Officers | |||
Related Party Transaction [Line Items] | |||
Ownership percentage by noncontrolling owners | 3.70% | ||
Apiture | |||
Related Party Transaction [Line Items] | |||
Ownership percentage by noncontrolling owners | 32.50% | ||
Equity method investments | $ 52,300,000 | 53,300,000 | |
Apiture | Professional Services | |||
Related Party Transaction [Line Items] | |||
Payments incurred for related parties transactions | 1,200,000 | 377,000 | 524,000 |
Apiture | Shared Services and Rent | |||
Related Party Transaction [Line Items] | |||
Related party income recognized | $ 601,000 | $ 782,000 | $ 446,000 |
Canapi Ventures Fund, LP | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 1.50% | 1.50% | |
Equity method investments | $ 2,402,000 | $ 1,686,000 | |
Equity method investments, committed amount of early growth stage investment. | 1,800,000 | ||
Equity method investments, committed amount of invested | $ 237,000 | $ 507,000 | |
Canapi Ventures SBIC Fund, LP | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 2.90% | 3.10% | |
Equity method investments | $ 19,431,000 | $ 14,843,000 | |
Equity method investments, committed amount of early growth stage investment. | 15,200,000 | ||
Equity method investments, committed amount of invested | $ 4,500,000 | 3,400,000 | |
Cape Fear Collective Impact Opportunity 1, LLC | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 99.00% | ||
Equity method investments | $ 4,000,000 | 2,500,000 | |
Payments to acquire equity method investments | $ 1,300,000 | 2,500,000 | |
Green Sun Tenant LLC | |||
Related Party Transaction [Line Items] | |||
Equity method investment ownership percentage | 99.00% | ||
Equity method investments | $ 708,000 | 3,900,000 | |
Equity method investments, committed amount of early growth stage investment. | 3,900,000 | ||
Equity method investments, committed amount of invested | $ 2,900,000 | $ 980,000 |
Significant Equity Method Inv_3
Significant Equity Method Investments - Summary of Balance Sheet Information of Combined Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Equity Method Investments [Line Items] | |||
Total assets | $ 8,213,393 | $ 7,872,303 | $ 4,812,828 |
Total liabilities | 7,498,260 | 7,304,453 | |
Total liabilities and shareholders’ equity | 8,213,393 | 7,872,303 | |
Equity Method Investment Nonconsolidated Investee Or Group of Investees | |||
Schedule Of Equity Method Investments [Line Items] | |||
Current assets | 90,629 | 67,843 | |
Noncurrent assets | 776,171 | 285,018 | |
Total assets | 866,800 | 352,861 | |
Current liabilities | 37,730 | 64,019 | |
Noncurrent liabilities | 14,052 | 17,151 | |
Total liabilities | 51,782 | 81,170 | |
Equity interests | 815,018 | 271,691 | |
Total liabilities and shareholders’ equity | $ 866,800 | $ 352,861 |
Significant Equity Method Inv_4
Significant Equity Method Investments - Summary of Income Statement Information of Combined Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||
Net income (loss) | $ 166,995 | $ 59,543 | $ 18,034 |
Equity Method Investment Nonconsolidated Investee Or Group of Investees | |||
Schedule Of Equity Method Investments [Line Items] | |||
Total revenues | 79,016 | 68,038 | 56,928 |
Net income (loss) | $ 215,792 | $ (68,406) | $ (30,367) |
Segments - Narrative (Details)
Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021Segment | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 361,213 | $ 288,408 | $ 227,980 |
Interest expense | 64,428 | 93,685 | 87,898 |
Net interest income | 296,785 | 194,723 | 140,082 |
Provision for loan and lease credit losses | 15,210 | 40,658 | 15,212 |
Noninterest income | 160,200 | 86,000 | 63,519 |
Noninterest expense | 230,987 | 192,676 | 164,924 |
Income tax expense (benefit) | 43,793 | (12,154) | 5,431 |
Net income | 166,995 | 59,543 | 18,034 |
Total assets | 8,213,393 | 7,872,303 | 4,812,828 |
Operating Segments | Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 360,986 | 288,305 | 227,776 |
Interest expense | 63,119 | 93,313 | 88,052 |
Net interest income | 297,867 | 194,992 | 139,724 |
Provision for loan and lease credit losses | 15,210 | 40,658 | 15,067 |
Noninterest income | 114,363 | 77,512 | 64,034 |
Noninterest expense | 215,819 | 181,555 | 152,227 |
Income tax expense (benefit) | 35,539 | (7,171) | 6,803 |
Net income | 145,662 | 57,462 | 29,661 |
Total assets | 8,053,212 | 7,767,013 | 4,724,537 |
Operating Segments | Fintech | |||
Segment Reporting Information [Line Items] | |||
Interest income | 201 | 30 | |
Net interest income | 201 | 30 | |
Noninterest income | 43,141 | 6,567 | (2,436) |
Noninterest expense | 5,395 | 5,510 | 7,078 |
Income tax expense (benefit) | 10,280 | 2,989 | (1,218) |
Net income | 27,667 | (1,932) | (8,266) |
Total assets | 121,889 | 83,946 | 82,355 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 26 | 103 | 174 |
Interest expense | 1,309 | 372 | (154) |
Net interest income | (1,283) | (269) | 328 |
Provision for loan and lease credit losses | 145 | ||
Noninterest income | 2,696 | 1,921 | 1,921 |
Noninterest expense | 9,773 | 5,611 | 5,619 |
Income tax expense (benefit) | (2,026) | (7,972) | (154) |
Net income | (6,334) | 4,013 | (3,361) |
Total assets | $ 38,292 | $ 21,344 | $ 5,936 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Other assets | $ 250,254 | $ 231,951 | ||
Total assets | 8,213,393 | 7,872,303 | $ 4,812,828 | |
Liabilities and Shareholders’ Equity | ||||
Borrowings | 318,289 | 1,542,093 | ||
Other liabilities | 67,927 | 49,532 | ||
Total liabilities | 7,498,260 | 7,304,453 | ||
Shareholders' equity: | ||||
Retained earnings | 400,893 | 235,724 | ||
Accumulated other comprehensive income | 1,946 | 21,507 | ||
Total shareholders’ equity | 715,133 | 567,850 | $ 532,386 | $ 493,560 |
Total liabilities and shareholders’ equity | 8,213,393 | 7,872,303 | ||
Live Oak Bancshares, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 10,635 | 11,209 | ||
Investment in subsidiaries | 723,803 | 543,740 | ||
Other assets | 40,149 | 30,816 | ||
Total assets | 774,587 | 585,765 | ||
Liabilities and Shareholders’ Equity | ||||
Borrowings | 50,734 | 14,488 | ||
Other liabilities | 8,720 | 3,427 | ||
Total liabilities | 59,454 | 17,915 | ||
Shareholders' equity: | ||||
Common stock | 312,294 | 310,619 | ||
Retained earnings | 400,893 | 235,724 | ||
Accumulated other comprehensive income | 1,946 | 21,507 | ||
Total shareholders’ equity | 715,133 | 567,850 | ||
Total liabilities and shareholders’ equity | $ 774,587 | $ 585,765 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Interest income | $ 361,213 | $ 288,408 | $ 227,980 |
Interest expense | 64,428 | 93,685 | 87,898 |
Net interest income | 296,785 | 194,723 | 140,082 |
Other noninterest income | 15,493 | 14,010 | 7,996 |
Total noninterest income | 160,200 | 86,000 | 63,519 |
Noninterest expense | |||
Salaries and employee benefits | 124,932 | 112,525 | 90,634 |
Professional services expense | 15,135 | 6,359 | 6,859 |
Renewable energy tax credit investment impairment | 3,187 | 0 | 602 |
Other expense | 11,769 | 9,864 | 7,545 |
Total noninterest expense | 230,987 | 192,676 | 164,924 |
Income before taxes | 210,788 | 47,389 | 23,465 |
Income tax benefit | 43,793 | (12,154) | 5,431 |
Net income | 166,995 | 59,543 | 18,034 |
Live Oak Bancshares, Inc. | |||
Condensed Income Statements, Captions [Line Items] | |||
Interest income | 25 | 91 | 236 |
Interest expense | 1,309 | 372 | |
Net interest income | (1,284) | (281) | 236 |
Other noninterest income | 716 | 252 | 140 |
Total noninterest income | 716 | 252 | 140 |
Noninterest expense | |||
Salaries and employee benefits | 5,120 | 17,250 | 12,408 |
Professional services expense | 679 | 750 | 825 |
Renewable energy tax credit investment impairment | 602 | ||
Other expense | 789 | 1,167 | 999 |
Total noninterest expense | 6,588 | 19,167 | 14,834 |
Income before taxes | (7,156) | (19,196) | (14,458) |
Income tax benefit | (1,615) | (7,785) | (27) |
Net loss | (5,541) | (11,411) | (14,431) |
Equity in undistributed income of subsidiaries in excess of dividends from subsidiaries | 172,536 | 70,954 | 32,465 |
Net income | $ 166,995 | $ 59,543 | $ 18,034 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net income | $ 166,995 | $ 59,543 | $ 18,034 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income tax | 24,808 | (17,447) | 1,467 |
Renewable energy tax credit investment impairment | 3,187 | 0 | 602 |
Stock option based compensation expense | 1,379 | 1,594 | 1,723 |
Restricted stock expense | 15,572 | 13,146 | 10,025 |
Business combination contingent consideration fair value adjustment | 99 | 163 | |
Net cash used by operating activities | (119,717) | (260,997) | (482,520) |
Cash flows from investing activities | |||
Business combination, net of cash acquired | (895) | ||
Net cash used by investing activities | (149,803) | (2,619,461) | (684,569) |
Cash flows from financing activities | |||
Proceeds from borrowings | 602,848 | 1,828,033 | |
Repayments of borrowings | (1,826,652) | (285,954) | (1,443) |
Stock option exercises | 4,158 | 3,069 | 508 |
Employee stock purchase program | 670 | 520 | 437 |
Withholding cash issued in lieu of restricted stock and other | (19,151) | (49,229) | (409) |
Repurchase and retirement of shares | (953) | ||
Shareholder dividend distributions | (5,186) | (4,906) | (4,827) |
Net cash provided by (used in) financing activities | 154,950 | 2,977,381 | 1,069,175 |
Net (decrease) increase in cash and cash equivalents | (114,570) | 96,923 | (97,914) |
Cash and cash equivalents, beginning | 318,320 | 221,397 | 319,311 |
Cash and cash equivalents, ending | 203,750 | 318,320 | 221,397 |
Live Oak Bancshares, Inc. | |||
Cash flows from operating activities | |||
Net income | 166,995 | 59,543 | 18,034 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed net income of subsidiaries in excess of dividends of subsidiaries | (172,536) | (70,954) | (32,465) |
Equity in subsidiary tax withholding related to vesting of restricted stock and other | 2,679 | 43,507 | |
Deferred income tax | 30,070 | 1,163 | (790) |
Renewable energy tax credit investment impairment | 602 | ||
Stock option based compensation expense | 1,379 | 1,594 | 1,723 |
Restricted stock expense | 15,572 | 13,146 | 10,025 |
Business combination contingent consideration fair value adjustment | 99 | 163 | |
Net change in other assets | (23,388) | (6,706) | 7,100 |
Net change in other liabilities | (10,821) | (525) | 1,417 |
Net cash used by operating activities | 10,049 | 40,931 | 5,646 |
Cash flows from investing activities | |||
Capital investment in subsidiaries | (26,407) | (6,354) | (1,109) |
Business combination, net of cash acquired | (895) | ||
Net cash used by investing activities | (26,407) | (7,249) | (1,109) |
Cash flows from financing activities | |||
Proceeds from borrowings | 57,675 | 70,000 | |
Repayments of borrowings | (21,429) | (55,512) | (1,441) |
Stock option exercises | 4,158 | 3,069 | 508 |
Employee stock purchase program | 670 | 520 | 437 |
Withholding cash issued in lieu of restricted stock and other | (19,151) | (49,229) | (409) |
Repurchase and retirement of shares | (953) | ||
Shareholder dividend distributions | (5,186) | (4,906) | (4,827) |
Net cash provided by (used in) financing activities | 15,784 | (36,058) | (5,732) |
Net (decrease) increase in cash and cash equivalents | (574) | (2,376) | (1,195) |
Cash and cash equivalents, beginning | 11,209 | 13,585 | 14,780 |
Cash and cash equivalents, ending | $ 10,635 | $ 11,209 | $ 13,585 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) - USD ($) $ in Thousands | Feb. 07, 2022 | Jan. 27, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||
Equity security investments gains (losses), net | $ 44,752 | $ 14,909 | $ 3,532 | ||
Fiserv | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Equity security investments gains (losses), net | $ 115,000 | ||||
Agreement to purchase real estate | $ 18,300 |