Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Document Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity File Number | 001-35654 | |
Entity Registrant Name | NATIONAL BANK HOLDINGS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0563799 | |
Entity Address, Address Line One | 7800 East Orchard, Suite 300 | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | 303 | |
Local Phone Number | 892-8715 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | NBHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,604,461 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001475841 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 444,603 | $ 109,690 |
Interest bearing bank deposits | 500 | 500 |
Cash and cash equivalents | 445,103 | 110,190 |
Investment securities available-for-sale (at fair value) | 572,523 | 638,249 |
Investment securities held-to-maturity (fair value of $197,597 and $183,741 at March 31, 2020 and December 31, 2019, respectively) | 320,001 | 182,884 |
Non-marketable securities | 29,598 | 29,751 |
Loans | 4,556,121 | 4,415,406 |
Allowance for credit losses | (60,979) | (39,064) |
Loans, net | 4,495,142 | 4,376,342 |
Loans held for sale | 273,003 | 117,444 |
Other real estate owned | 4,590 | 7,300 |
Premises and equipment, net | 108,860 | 112,151 |
Goodwill | 115,027 | 115,027 |
Intangible assets, net | 15,017 | 11,361 |
Other assets | 221,812 | 194,813 |
Total assets | 6,600,676 | 5,895,512 |
Liabilities: | ||
Non-interest bearing demand deposits | 1,533,676 | 1,184,945 |
Interest bearing demand deposits | 976,133 | 738,496 |
Savings and money market | 2,079,585 | 1,755,538 |
Time deposits | 1,027,066 | 1,058,153 |
Total deposits | 5,616,460 | 4,737,132 |
Securities sold under agreements to repurchase | 23,904 | 56,935 |
Federal Home Loan Bank advances | 207,675 | |
Other liabilities | 160,955 | 126,850 |
Total liabilities | 5,801,319 | 5,128,592 |
Shareholders' equity: | ||
Common stock, par value $0.01 per share: 400,000,000 shares authorized; 51,487,907 and 51,487,907 shares issued; 30,483,361 and 31,176,627 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 515 | 515 |
Additional paid-in capital | 1,010,145 | 1,009,223 |
Retained earnings | 202,238 | 164,082 |
Treasury stock of 20,883,923 and 20,189,082 shares at March 31, 2020 and December 31, 2019, respectively, at cost | (424,621) | (408,962) |
Accumulated other comprehensive income, net of tax | 11,080 | 2,062 |
Total shareholders' equity | 799,357 | 766,920 |
Total liabilities and shareholders' equity | $ 6,600,676 | $ 5,895,512 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 324,720 | $ 183,741 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 400,000,000 | 400,000,000 |
Common Stock, shares issued | 51,487,907 | 51,487,907 |
Common Stock, shares outstanding | 30,594,412 | 31,176,627 |
Treasury stock, shares | 20,714,662 | 20,189,082 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 47,974,000 | $ 55,708,000 | $ 150,672,000 | $ 164,478,000 |
Interest and dividends on investment securities | 4,037,000 | 5,080,000 | 12,918,000 | 16,627,000 |
Dividends on non-marketable securities | 221,000 | 417,000 | 945,000 | 1,299,000 |
Interest on interest-bearing bank deposits | 70,000 | 167,000 | 179,000 | 581,000 |
Total interest and dividend income | 52,302,000 | 61,372,000 | 164,714,000 | 182,985,000 |
Interest expense: | ||||
Interest on deposits | 5,491,000 | 7,974,000 | 18,904,000 | 22,238,000 |
Interest on borrowings | 96,000 | 1,613,000 | 1,420,000 | 5,305,000 |
Total interest expense | 5,587,000 | 9,587,000 | 20,324,000 | 27,543,000 |
Net interest income before provision for loan losses | 46,715,000 | 51,785,000 | 144,390,000 | 155,442,000 |
Provision for loan losses | 1,200,000 | 5,690,000 | 17,630,000 | 10,463,000 |
Net interest income after provision for loan losses | 45,515,000 | 46,095,000 | 126,760,000 | 144,979,000 |
Non-interest income: | ||||
Mortgage banking income | 34,943,000 | 14,702,000 | 79,246,000 | 32,037,000 |
Bank-owned life insurance income | 597,000 | 431,000 | 1,776,000 | 1,276,000 |
Other non-interest income | 1,136,000 | 1,230,000 | 3,608,000 | 4,585,000 |
OREO-related income | 75,000 | 27,000 | 103,000 | 147,000 |
Total non-interest income | 44,532,000 | 24,759,000 | 106,901,000 | 62,470,000 |
Non-interest expense: | ||||
Salaries and benefits | 38,614,000 | 33,522,000 | 108,251,000 | 92,079,000 |
Occupancy and equipment | 6,878,000 | 6,825,000 | 20,854,000 | 20,428,000 |
Telecommunications and data processing | 2,270,000 | 2,133,000 | 6,790,000 | 6,547,000 |
Marketing and business development | 696,000 | 985,000 | 1,992,000 | 2,811,000 |
FDIC deposit insurance | 409,000 | 58,000 | 744,000 | 1,049,000 |
Bank card expenses | 1,275,000 | 1,288,000 | 3,334,000 | 3,521,000 |
Professional fees | 714,000 | 743,000 | 2,082,000 | 2,598,000 |
Other non-interest expense | 2,793,000 | 2,958,000 | 8,362,000 | 8,570,000 |
Problem asset workout | 1,064,000 | 602,000 | 2,341,000 | 2,450,000 |
Loss (gain) on OREO sales, net | (119,000) | (6,514,000) | (25,000) | (7,200,000) |
Core deposit intangible asset amortization | 295,000 | 295,000 | 887,000 | 887,000 |
Banking center consolidation related expenses | 432,000 | 898,000 | 2,140,000 | 898,000 |
Total non-interest expense | 55,321,000 | 43,793,000 | 157,752,000 | 134,638,000 |
Income before income taxes | 34,726,000 | 27,061,000 | 75,909,000 | 72,811,000 |
Income tax expense | 6,833,000 | 5,419,000 | 14,487,000 | 11,965,000 |
Net income | $ 27,893,000 | $ 21,642,000 | $ 61,422,000 | $ 60,846,000 |
Earnings per share-basic (in dollars per share) | $ 0.91 | $ 0.69 | $ 1.99 | $ 1.95 |
Earnings per share-diluted (in dollars per share) | $ 0.90 | $ 0.69 | $ 1.97 | $ 1.93 |
Weighted average number of common shares outstanding: | ||||
Basic (Shares) | 30,756,116 | 31,281,970 | 30,881,325 | 31,133,982 |
Diluted (Shares) | 30,924,223 | 31,508,999 | 31,070,997 | 31,537,334 |
Service charges and other fees | ||||
Non-interest income: | ||||
Non-interest income | $ 3,742,000 | $ 4,617,000 | $ 10,962,000 | $ 13,479,000 |
Bank card fees | ||||
Non-interest income: | ||||
Non-interest income | $ 4,039,000 | $ 3,752,000 | $ 11,206,000 | $ 10,946,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,893 | $ 21,642 | $ 61,422 | $ 60,846 |
Securities available-for-sale: | ||||
Net unrealized gains arising during the period, net of tax expense of $3,301 and $1,706 for the three months ended March 31, 2020 and 2019, respectively. | (925) | 1,828 | 9,627 | 15,150 |
Less: amortization of net unrealized holding gains to income, net of tax benefit of $68 and $90 for the three months ended March 31, 2020 and 2019, respectively. | (190) | (247) | (609) | (788) |
Other comprehensive income | (1,115) | 1,581 | 9,018 | 14,362 |
Comprehensive income | $ 26,778 | $ 23,223 | $ 70,440 | $ 75,208 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax (expense) benefit on net unrealized gains arising during the period | $ 290 | $ (574) | $ 3,021 | $ 4,760 |
Tax (expense) benefit of amortization of net unrealized holding gains to income | $ 60 | $ 78 | $ 191 | $ 249 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained earnings [Member] | Treasury stock [Member] | Accumulated other comprehensive (loss) income, net [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance in the beginning at Dec. 31, 2018 | $ 515 | $ 1,014,399 | $ 106,990 | $ (415,623) | $ (11,275) | $ 695,006 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 60,846 | 60,846 | ||||||
Stock-based compensation | 3,325 | 3,325 | ||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | (10,096) | 6,853 | (3,243) | |||||
Cash dividends declared | (17,226) | (17,226) | ||||||
Other comprehensive income (loss) | 14,362 | 14,362 | ||||||
Balance in the ending at Sep. 30, 2019 | 515 | 1,007,628 | $ (256) | 150,866 | (408,770) | 3,087 | $ (256) | 753,326 |
Balance in the beginning at Jun. 30, 2019 | 515 | 1,006,008 | 135,210 | (409,322) | 1,506 | 733,917 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 21,642 | 21,642 | ||||||
Stock-based compensation | 1,441 | 1,441 | ||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | 179 | 552 | 731 | |||||
Cash dividends declared | (5,986) | (5,986) | ||||||
Other comprehensive income (loss) | 1,581 | 1,581 | ||||||
Balance in the ending at Sep. 30, 2019 | 515 | 1,007,628 | (256) | 150,866 | (408,770) | 3,087 | (256) | 753,326 |
Balance in the beginning at Dec. 31, 2019 | 515 | 1,009,223 | 164,082 | (408,962) | 2,062 | 766,920 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 61,422 | 61,422 | ||||||
Stock-based compensation | 4,028 | 4,028 | ||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | (3,106) | 3,817 | 711 | |||||
Repurchase of 734,117 shares | (19,476) | (19,476) | ||||||
Cash dividends declared | (18,643) | (18,643) | ||||||
Other comprehensive income (loss) | 9,018 | 9,018 | ||||||
Balance in the ending at Sep. 30, 2020 | 515 | 1,010,145 | 4,623 | 202,238 | (424,621) | 11,080 | 4,623 | 799,357 |
Balance in the beginning at Jun. 30, 2020 | 515 | 1,008,773 | 180,537 | (425,053) | 12,195 | 776,967 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 27,893 | 27,893 | ||||||
Stock-based compensation | 1,189 | 1,189 | ||||||
Issuance of stock under purchase and equity compensation plans, including gain on reissuance of treasury stock, net | 183 | 432 | 615 | |||||
Cash dividends declared | (6,192) | (6,192) | ||||||
Other comprehensive income (loss) | (1,115) | (1,115) | ||||||
Balance in the ending at Sep. 30, 2020 | $ 515 | $ 1,010,145 | $ 4,623 | $ 202,238 | $ (424,621) | $ 11,080 | $ 4,623 | $ 799,357 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Gain on reissuance of treasury stock | $ 157 | $ 373 | $ 1,192 | $ 6,106 |
Shares repurchased (shares) | 734,117 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 61,422,000 | $ 60,846,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 17,630,000 | 10,463,000 |
Provision (release) for mortgage loan repurchases | 604,000 | (639,000) |
Depreciation and amortization | 11,804,000 | 11,112,000 |
Current income tax receivable | 2,394,000 | 3,498,000 |
Deferred income taxes | 1,251,000 | 7,431,000 |
Net excess tax expense (benefit) on stock-based compensation | 120,000 | (2,162,000) |
Discount accretion, net of premium amortization on securities | 1,983,000 | 1,483,000 |
Loan accretion | (9,687,000) | (12,291,000) |
Gain on sale of mortgages, net | (76,397,000) | (30,086,000) |
Origination of loans held for sale, net of repayments | (1,703,208,000) | (946,576,000) |
Proceeds from sales of loans held for sale | 1,626,392,000 | 820,905,000 |
Bank-owned life insurance income | (1,776,000) | (1,276,000) |
Loss (gain) on the sale of other real estate owned, net | (25,000) | (7,200,000) |
Originations of mortgage serving rights | (6,627,000) | (26,000) |
Impairment of mortgage servicing rights | 847,000 | 453,000 |
Impairment on other real estate owned | 423,000 | 872,000 |
Impairment on fixed assets related to banking center consolidations | 1,631,000 | 898,000 |
Stock-based compensation | 4,028,000 | 3,325,000 |
Operating lease payments | (4,092,000) | (4,209,000) |
Change in other assets | (33,877,000) | (7,273,000) |
Change in other liabilities | 43,447,000 | 29,848,000 |
Net cash provided by (used in) operating activities | (61,713,000) | (60,604,000) |
Cash flows from investing activities: | ||
Purchase of FHLB stock | (447,000) | (13,422,000) |
Proceeds from redemption of FHLB stock | 600,000 | 13,700,000 |
Proceeds from maturities of investment securities held-to-maturity | 58,099,000 | 44,090,000 |
Proceeds from maturities of investment securities available-for-sale | 191,846,000 | 146,316,000 |
Proceeds from sales of investment securities available-for-sale | 20,378,000 | |
Purchase of investment securities held-to-maturity | (196,736,000) | |
Purchase of investment securities available-for-sale | (114,735,000) | (18,005,000) |
Increase in securities purchased under agreement to resell | (33,031,000) | |
Net increase in loans | (142,133,000) | (305,450,000) |
Purchases of premises and equipment, net | (4,498,000) | (7,743,000) |
Proceeds from sales of other real estate owned | 3,498,000 | 11,508,000 |
Net cash used in investing activities | (204,506,000) | (108,628,000) |
Cash flows from financing activities: | ||
Net increase in deposits | 879,328,000 | 198,239,000 |
Net increase in repurchase agreements and other short-term borrowings | 6,688,000 | |
Advances from FHLB | 947,431,000 | 1,199,492,000 |
FHLB repayments | (1,155,106,000) | (1,207,255,000) |
Issuance of stock under purchase and equity compensation plans | (570,000) | (6,079,000) |
Proceeds from exercise of stock options | 1,213,000 | 2,780,000 |
Payment of dividends | (18,657,000) | (17,270,000) |
Repurchase of common stock | (19,476,000) | |
Net cash provided by financing activities | 601,132,000 | 176,595,000 |
Increase (decrease) in cash, cash equivalents and restricted cash | 334,913,000 | 7,363,000 |
Cash, cash equivalents and restricted cash at beginning of the year | 120,190,000 | 119,556,000 |
Cash, cash equivalents and restricted cash at end of period | 455,103,000 | 126,919,000 |
Supplemental disclosure of cash flow information during the period: | ||
Cash paid for interest | 21,433,000 | 25,050,000 |
Net tax payment (refund) | 13,673,000 | 5,547,000 |
Supplemental schedule of non-cash activities: | ||
Loans transferred to other real estate owned at fair value | 1,186,000 | 2,488,000 |
Decrease in loans purchased but not settled | (6,119,000) | 2,526,000 |
Loans transferred from loans held for sale to loans | $ 2,346,000 | 725,000 |
Lease right-of-use assets obtained | $ (30,474,000) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - Peoples Inc | Sep. 30, 2020USD ($) |
Restricted cash placed in escrow | $ 10,000,000 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Other Assets |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Basis of Presentation | |
Basis of Presentation | Note 1 Basis of Presentation National Bank Holdings Corporation ("NBHC" or the "Company") is a bank holding company that was incorporated in the State of Delaware in 2009. The Company is headquartered in Denver, Colorado, and its primary operations are conducted through its wholly owned subsidiary, NBH Bank (the "Bank"), a Colorado state-chartered bank and a member of the Federal Reserve System. The Company provides a variety of banking products to both commercial and consumer clients through a network of 100 banking centers, as of September 30, 2020, located primarily in Colorado and the greater Kansas City region, and through online and mobile banking products and services. The accompanying interim unaudited consolidated financial statements serve to update the National Bank Holdings Corporation Annual Report on Form 10-K Form 10-K General economic conditions declined during 2020 as a result of the COVID-19 pandemic, which has caused substantial disruption to the communities we serve and has changed the way we live and work. The length of the pandemic and the efficacy of the extraordinary government-mandated measures that have been put into place to address it are still unknown, but have already had, and are likely to continue to have, a significant impact to the financial condition and operations of the Company. GAAP requires management to make estimates that affect the reported amounts of assets, liabilities, revenues and expenses and disclosures of contingent assets and liabilities. By their nature, estimates are based on judgment and available information. Management has made significant estimates in certain areas, such as the amount and timing of expected cash flows from assets, the valuation of other real estate owned (“OREO”), the fair value adjustments on assets acquired and liabilities assumed, the valuation of core deposit intangible assets, the valuation of investment securities, the valuation of stock-based compensation, the valuation of mortgage servicing rights (“MSRs”), the fair values of financial instruments, the allowance for credit losses (“ACL”) and contingent liabilities. Because of the inherent uncertainties associated with any estimation process and future changes in market and economic conditions, it is possible that actual results could differ significantly from those estimates. The Company's significant accounting policies followed in the preparation of the unaudited consolidated financial statements are disclosed in note 2 of the audited financial statements and notes for the year ended December 31, 2019 and are contained in the Company's Annual Report on Form 10-K Allowance for credit losses (“ACL”) Measurement of Credit Losses on Financial Instruments Loans The ACL represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified four primary loan segments that are further stratified into 11 loan classes to provide more granularity in analyzing loss history based upon specific loss drivers and risk factors affecting each loan class. Generally, the underlying risk of loss for each of these loan classes will follow certain norms/trends in various economic environments. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective evaluation. Those loans include loans on non-accrual status, loans in bankruptcy, and troubled debt restructurings (“TDRs”) described below. If a specific allowance is warranted based on the borrower’s overall financial condition, the specific allowance is calculated based on discounted expected cash flows using the loan’s initial contractual effective interest rate or the fair value of the collateral less selling costs for collateral-dependent loans. The Company utilizes a discounted cash flow ("DCF") model developed within a third-party software tool to establish expected lifetime credit losses for the loan portfolio. The ACL is calculated as the difference between the amortized cost basis and the projections from the DCF analysis. The DCF model allows for individual life of loan cash flow modeling, excluding extensions and renewals, using loan-specific interest rates and repayment schedules. The model incorporates forecasts of certain national macroeconomic factors which drive correlated Probability of Default (“PD”) and Loss Given Default (“LGD”) rates, which in turn, drive the losses predicted in establishing our ACL. PD and LGD rates along with prepayment rates and loss recovery time delays are determined at a loan class level making use of both internal and peer historical loss rate data. The determination and application of the ACL accounting policy involves judgments, estimates, and uncertainties that are subject to change. For periods beyond the near term, we revert to historical long-term average loss rates on a straight-line basis. The length of the forecast and reversion periods is based on management’s assessment of the length and pattern of the current economic cycle. Management accounts for the inherent uncertainty of the underlying economic forecast by reviewing and weighting alternate forecast scenarios. Additionally, the ACL calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for lending management experience and risk tolerance, loan review and audit results, asset quality and portfolio trends, loan portfolio growth and industry concentrations. The Company has elected to exclude accrued interest receivable ("AIR") from the allowance for credit losses calculation. When a loan is placed on non-accrual, any recorded AIR is reversed against interest income. The determination and application of the ACL accounting policy involves judgments, estimates, and uncertainties that are subject to change. Changes in these assumptions, estimates or the conditions surrounding them may have a material impact on our financial condition, liquidity or results of operations. Various regulatory agencies, as an integral part of the examination process, periodically review the ACL. Such agencies may require the Company to recognize additions to the ACL or reserve increases to adversely graded classified loans based on their judgments about information available to them at the time of their examinations. The ACL is decreased by net charge-offs and is increased by provisions for loan losses that are charged to the statements of operations. Charge-offs, if any, are typically measured for each loan based on a thorough analysis of the most probable source of repayment, such as the present value of the loan’s expected future cash flows, the loan’s estimated fair value, or the estimated fair value of the underlying collateral less costs of disposition for collateral-dependent loans. When it is determined that specific loans, or portions thereof, are uncollectible, these amounts are charged off against the ACL. The Company uses an internal risk rating system to indicate credit quality in the loan portfolio. The risk rating system is applied to all loans and uses a series of grades, which reflect management’s assessment of the risk attributable to loans based on an analysis of the borrower’s financial condition and ability to meet contractual debt service requirements. Loans that management perceives to have acceptable risk are categorized as “Pass” loans. The “Special Mention” loans represent loans that have potential credit weaknesses that deserve management’s close attention. Special mention loans include borrowers that have potential weaknesses or unwarranted risks that, unless corrected, may threaten the borrower’s ability to meet debt requirements. However, these borrowers are still believed to have the ability to respond to and resolve the financial issues that threaten their financial situation. Loans classified as “Substandard” are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans have a distinct possibility of loss if the deficiencies are not corrected. “Doubtful” loans are loans that management believes the collection of payments in accordance with the terms of the loan agreement is highly questionable and improbable. Credit quality indicators are reviewed and updated in accordance with internal policy based on loan balance and risk rating. Interest accrual is discontinued on doubtful loans and certain substandard loans, as is more fully discussed in note 4. Unfunded loan commitments In addition to the ACL for funded loans, the Company maintains reserves to cover the risk of loss associated with off-balance sheet unfunded loan commitments. The allowance for off-balance sheet credit losses is maintained within the other liabilities in the statements of financial condition. Under the CECL framework, adjustments to this liability are recorded as provision for credit losses in the statements of operations. Unfunded loan commitment balances are evaluated by loan class and further segregated by revolving and non-revolving commitments. In order to establish the required level of reserve, the Company applies average historical utilization rates and ACL loan model loss rates for each loan class to the outstanding unfunded commitment balances. Investment securities Management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making the assessment, we may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an allowance for credit loss. For U.S. agency-backed held-to-maturity securities, since the risk of nonpayment of the amortized cost basis is zero, the Company will not measure expected credit losses on these securities. When the loss is not considered a result of credit loss, the cost basis of the security is written down to fair value, with the loss charge recognized in accumulated other comprehensive income (“AOCI”). Credit losses are not estimated for AIR from investment securities as interest deemed uncollectible is written off through interest income. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | Note 2 Recent Accounting Pronouncements Financial Instruments - Credit Losses Measurement of Credit Losses on Financial Instruments Other Pronouncements Fair Value Measurement Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement , Intangibles - Goodwill and Other Simplifying the Test for Goodwill Impairment . |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 3 Investment Securities The Company’s investment securities portfolio is comprised of available-for-sale and held-to-maturity investment securities. These investment securities totaled $0.9 billion at September 30, 2020 and included $0.6 billion of available-for-sale securities and $0.3 billion of held-to-maturity securities. At December 31, 2019, investment securities totaled $0.8 billion and included $0.6 billion of available-for-sale securities and $0.2 billion of held-to-maturity securities. Available-for-sale Available-for-sale securities are summarized as follows as of the dates indicated: September 30, 2020 Amortized Gross Gross cost unrealized gains unrealized losses Fair value Mortgage-backed securities (“MBS”): Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 90,022 $ 2,870 $ — $ 92,892 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 466,648 10,114 (112) 476,650 Municipal securities 495 14 — 509 Corporate debt 2,000 3 — 2,003 Other securities 469 — — 469 Total investment securities available-for-sale $ 559,634 $ 13,001 $ (112) $ 572,523 December 31, 2019 Amortized Gross Gross cost unrealized gains unrealized losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 93,770 $ 1,497 $ (11) $ 95,256 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 543,275 3,818 (5,056) 542,037 Municipal securities 495 — (8) 487 Other securities 469 — — 469 Total investment securities available-for-sale $ 638,009 $ 5,315 $ (5,075) $ 638,249 At September 30, 2020 and December 31, 2019, the Company’s available-for-sale investment portfolio was primarily comprised of mortgage-backed securities, and all mortgage-backed securities were backed by government sponsored enterprises (“GSE”) collateral such as Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”) and the government owned agency Government National Mortgage Association (“GNMA”). The tables below summarize the available-for-sale securities with unrealized losses as of the dates shown, along with the length of the impairment period: September 30, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 26,992 $ (90) $ 2,394 $ (22) $ 29,386 $ (112) Total $ 26,992 $ (90) $ 2,394 $ (22) $ 29,386 $ (112) December 31, 2019 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 10,413 $ (7) $ 1,421 $ (4) $ 11,834 $ (11) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 41,983 (281) 254,380 (4,775) 296,363 (5,056) Municipal securities — — 372 (8) 372 (8) Total $ 52,396 $ (288) $ 256,173 $ (4,787) $ 308,569 $ (5,075) Management evaluated all of the available-for-sale securities in an unrealized loss position at September 30, 2020 and December 31, 2019. The portfolio included 12 securities, which were in an unrealized loss position at September 30, 2020, compared to 67 securities at December 31, 2019. The unrealized losses in the Company's investment portfolio at September 30, 2020 were caused by changes in interest rates. The Company has no intention to sell these securities and believes it will not be required to sell the securities before the recovery of their amortized cost. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk. Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the Federal Reserve Bank (“FRB”), if needed. The fair value of available-for-sale investment securities pledged as collateral totaled $401.6 million and $352.3 million at September 30, 2020 and at December 31, 2019, respectively. The Bank may also pledge available-for-sale investment securities as collateral for Federal Home Loan Bank (“FHLB”) advances. No securities were pledged for this purpose at September 30, 2020, and securities totaling $13.6 million were pledged as collateral at the FHLB at December 31, 2019. Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments. As of September 30, 2020, the entire municipal securities portfolio with an amortized cost and fair value As of September 30, 2020 and December 31, 2019, AIR from available-for-sale investment securities totaled $1.6 million and $1.5 million, respectively, and was included within other assets on the statements of financial condition. Held-to-maturity Held-to-maturity investment securities are summarized as follows as of the dates indicated: September 30, 2020 Gross Gross Amortized unrealized unrealized cost gains losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 250,790 $ 4,358 $ (116) $ 255,032 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 69,211 477 — 69,688 Total investment securities held-to-maturity $ 320,001 $ 4,835 $ (116) $ 324,720 December 31, 2019 Gross Gross Amortized unrealized unrealized cost gains losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 127,560 $ 1,239 $ (29) $ 128,770 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 55,324 82 (435) 54,971 Total investment securities held-to-maturity $ 182,884 $ 1,321 $ (464) $ 183,741 There were six held-to-maturity securities in an unrealized loss position as of September 30, 2020, compared to 13 securities at December 31, 2019. The tables below summarize the held-to-maturity securities with unrealized losses as of the dates shown, along with the length of the impairment period: September 30, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 59,053 $ (116) $ — $ — $ 59,053 $ (116) Total $ 59,053 $ (116) $ — $ — $ 59,053 $ (116) December 31, 2019 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 10,478 $ (26) $ 338 $ (3) $ 10,816 $ (29) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 3,925 (9) 28,554 (426) 32,479 (435) Total $ 14,403 $ (35) $ 28,892 $ (429) $ 43,295 $ (464) The Company does not measure expected credit losses on a financial asset, or group of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or U.S. government sponsored entities, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell any held-to-maturity securities and believes it will not be required to sell any held-to-maturity securities before the recovery of their amortized cost. Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The carrying value of held-to-maturity investment securities pledged as collateral totaled $146.3 million and $144.2 million at September 30, 2020 and December 31, 2019, respectively. The Bank had no held-to-maturity investment securities pledged as collateral for FHLB advances at September 30, 2020 and $4.0 million of held-to-maturity investment securities pledged at the FHLB at December 31, 2019. Actual maturities of mortgage-backed securities may differ from scheduled maturities depending on the repayment characteristics and experience of the underlying financial instruments. As of September 30, 2020 and December 31, 2019, AIR from held-to-maturity investment securities totaled $0.6 million and $0.5 million, respectively, and was included within other assets on the statements of financial condition. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans | Note 4 Loans The loan portfolio is comprised of loans originated by the Company and loans that were acquired in connection with the Company’s acquisitions. During the first quarter of 2020, the Company updated its loan classifications to include energy loans within the commercial and industrial loan class and present municipal and non-profit loans as their own class within the commercial segment. In addition, as the concept of impaired loans does not exist under CECL, disclosures that related solely to impaired loans have been removed. The tables below show the loan portfolio composition including carrying value by segment as of the dates shown. The carrying value of loans is net of discounts, fees, costs and fair value marks of $22.3 million and $21.9 million as of September 30, 2020 and December 31, 2019, respectively. Included in commercial loans are loans originated as part of the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) of which $348.3 million, net of fees and costs, are outstanding at September 30, 2020, which are fully guaranteed by the SBA. September 30, 2020 Total loans % of total Commercial $ 3,217,406 70.6% Commercial real estate non-owner occupied 617,087 13.5% Residential real estate 700,927 15.4% Consumer 20,701 0.5% Total $ 4,556,121 100.0% December 31, 2019 Total loans % of total Commercial $ 2,992,307 67.8% Commercial real estate non-owner occupied 630,906 14.3% Residential real estate 770,417 17.4% Consumer 21,776 0.5% Total $ 4,415,406 100.0% Information about delinquent and non-accrual loans are shown in the following tables at September 30, 2020 and December 31, 2019: September 30, 2020 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 970 $ — $ 7,395 $ 8,365 $ 1,592,426 $ 1,600,791 Municipal and non-profit — — — — 883,641 883,641 Owner occupied commercial real estate 1,845 — 3,539 5,384 511,031 516,415 Food and agribusiness 472 — 551 1,023 215,536 216,559 Total commercial 3,287 — 11,485 14,772 3,202,634 3,217,406 Commercial real estate non-owner occupied: Construction — — — — 77,361 77,361 Acquisition/development — — 8 8 26,003 26,011 Multifamily — — — — 69,925 69,925 Non-owner occupied 2,633 — 20 2,653 441,137 443,790 Total commercial real estate 2,633 — 28 2,661 614,426 617,087 Residential real estate: Senior lien 506 161 6,625 7,292 611,971 619,263 Junior lien 154 — 697 851 80,813 81,664 Total residential real estate 660 161 7,322 8,143 692,784 700,927 Consumer 7 — 47 54 20,647 20,701 Total loans $ 6,587 $ 161 $ 18,882 $ 25,630 $ 4,530,491 $ 4,556,121 September 30, 2020 Non-accrual loans Non-accrual loans with a related with no related allowance for allowance for Non-accrual credit loss credit loss loans Commercial: Commercial and industrial $ 4,664 $ 2,731 $ 7,395 Municipal and non-profit — — — Owner occupied commercial real estate 633 2,906 3,539 Food and agribusiness 178 373 551 Total commercial 5,475 6,010 11,485 Commercial real estate non-owner occupied: Construction — — — Acquisition/development 8 — 8 Multifamily — — — Non-owner occupied 20 — 20 Total commercial real estate 28 — 28 Residential real estate: Senior lien 4,429 2,196 6,625 Junior lien 697 — 697 Total residential real estate 5,126 2,196 7,322 Consumer 47 — 47 Total loans $ 10,676 $ 8,206 $ 18,882 December 31, 2019 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 2,252 $ 879 $ 10,330 $ 13,461 $ 1,398,070 $ 1,411,531 Municipal and non-profit 226 — — 226 837,300 837,526 Owner occupied commercial real estate 595 630 2,264 3,489 486,633 490,122 Food and agribusiness 190 — 317 507 252,621 253,128 Total commercial 3,263 1,509 12,911 17,683 2,974,624 2,992,307 Commercial real estate non-owner occupied: Construction — — — — 77,733 77,733 Acquisition/development 187 — 416 603 26,276 26,879 Multifamily — — — — 55,808 55,808 Non-owner occupied 438 65 43 546 469,940 470,486 Total commercial real estate 625 65 459 1,149 629,757 630,906 Residential real estate: Senior lien 2,101 9 7,597 9,707 668,955 678,662 Junior lien 245 79 731 1,055 90,700 91,755 Total residential real estate 2,346 88 8,328 10,762 759,655 770,417 Consumer 116 — 50 166 21,610 21,776 Total loans $ 6,350 $ 1,662 $ 21,748 $ 29,760 $ 4,385,646 $ 4,415,406 Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. Non-accrual loans include non-accrual loans and TDRs on non-accrual status. There was no interest income recognized from non-accrual loans during the nine months ended September 30, 2020 or 2019. The Company’s internal risk rating system uses a series of grades, which reflect our assessment of the credit quality of loans based on an analysis of the borrower's financial condition, liquidity and ability to meet contractual debt service requirements and are categorized as “Pass”, “Special mention”, “Substandard” and “Doubtful”. For a description of the general characteristics of the risk grades, refer to note 1 Basis of Presentation. The amortized cost basis for all loans as determined by the Company’s internal risk rating system and year of origination was as follows at September 30, 2020: September 30, 2020 Revolving Revolving loans loans Origination year amortized converted 2020 2019 2018 2017 2016 Prior cost basis to term Total Commercial: Commercial and industrial: Pass $ 488,391 $ 231,994 $ 217,190 $ 98,442 $ 16,130 $ 19,820 $ 478,080 $ 2,290 $ 1,552,337 Special mention 871 1,327 5,849 5,018 6,098 824 4,073 1,019 25,079 Substandard 27 1,284 1,317 12,709 6 4,786 2,145 — 22,274 Doubtful — — — 403 — 674 24 — 1,101 Total commercial and industrial 489,289 234,605 224,356 116,572 22,234 26,104 484,322 3,309 1,600,791 Municipal and non-profit: Pass 116,484 95,749 133,050 158,834 132,527 246,993 4 — 883,641 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total municipal and non-profit 116,484 95,749 133,050 158,834 132,527 246,993 4 — 883,641 Owner occupied commercial real estate: Pass 67,503 114,301 95,751 54,320 33,105 103,895 1,396 53 470,324 Special mention 1,581 2,996 2,612 548 5,912 19,496 — — 33,145 Substandard — 2,342 6,231 255 102 4,016 — — 12,946 Doubtful — — — — — — — — — Total owner occupied commercial real estate 69,084 119,639 104,594 55,123 39,119 127,407 1,396 53 516,415 Food and agribusiness: Pass 21,695 9,417 31,671 7,366 9,874 28,770 105,873 167 214,833 Special mention — — — — — 370 — — 370 Substandard — — — 308 — 970 69 — 1,347 Doubtful — — — — — 1 8 — 9 Total food and agribusiness 21,695 9,417 31,671 7,674 9,874 30,111 105,950 167 216,559 Total commercial 696,552 459,410 493,671 338,203 203,754 430,615 591,672 3,529 3,217,406 Commercial real estate non-owner occupied: Construction: Pass 13,778 37,496 17,144 4,097 — — 4,563 — 77,078 Special mention 283 — — — — — — — 283 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total construction 14,061 37,496 17,144 4,097 — — 4,563 — 77,361 Acquisition/development: Pass 3,781 2,030 1,951 8,503 4,569 4,653 43 — 25,530 Special mention — — — 35 — 253 — — 288 Substandard — — — — — 193 — — 193 Doubtful — — — — — — — — — Total acquisition/development 3,781 2,030 1,951 8,538 4,569 5,099 43 — 26,011 Multifamily: Pass 21,492 13,743 138 7,273 19,516 5,380 — — 67,542 Special mention — — — — — 2,383 — — 2,383 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total multifamily 21,492 13,743 138 7,273 19,516 7,763 — — 69,925 Non-owner occupied Pass 32,026 96,992 27,884 110,225 28,868 121,540 1,761 49 419,345 Special mention — — 5,912 9,869 3,966 3,698 100 — 23,545 Substandard — — 66 — — 834 — — 900 Doubtful — — — — — — — — — Total non-owner occupied 32,026 96,992 33,862 120,094 32,834 126,072 1,861 49 443,790 Total commercial real estate non-owner occupied 71,360 150,261 53,095 140,002 56,919 138,934 6,467 49 617,087 Residential real estate: Senior lien Pass 95,390 95,318 46,063 54,423 102,307 192,309 25,377 327 611,514 Special mention — — — — — 452 — — 452 Substandard 96 359 20 1,530 562 4,730 — — 7,297 September 30, 2020 Revolving Revolving loans loans Origination year amortized converted 2020 2019 2018 2017 2016 Prior cost basis to term Total Doubtful — — — — — — — — — Total senior lien 95,486 95,677 46,083 55,953 102,869 197,491 25,377 327 619,263 Junior lien Pass 3,731 4,767 3,387 1,963 1,433 4,397 60,327 508 80,513 Special mention — — — — — 21 347 — 368 Substandard — 114 103 196 57 313 — — 783 Doubtful — — — — — — — — — Total junior lien 3,731 4,881 3,490 2,159 1,490 4,731 60,674 508 81,664 Total residential real estate 99,217 100,558 49,573 58,112 104,359 202,222 86,051 835 700,927 Consumer Pass 9,195 4,529 2,086 636 422 732 3,030 24 20,654 Special mention — — — — — — — — — Substandard — 20 — — 19 8 — — 47 Doubtful — — — — — — — — — Total consumer 9,195 4,549 2,086 636 441 740 3,030 24 20,701 Total loans $ 876,324 $ 714,778 $ 598,425 $ 536,953 $ 365,473 $ 772,511 $ 687,220 $ 4,437 $ 4,556,121 Loans evaluated individually We evaluate loans individually when they no longer share risk characteristics with pooled loans. These loans include loans on non-accrual status, loans in bankruptcy, and TDRs described below. If a specific allowance is warranted based on the borrower’s overall financial condition, the specific allowance is calculated based on discounted expected cash flows using the loan’s initial contractual effective interest rate or the fair value of the collateral less selling costs for collateral-dependent loans. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Management individually evaluates collateral-dependent loans with an amortized cost basis of $250 thousand or more and includes collateral-dependent loans less than $250 thousand within the general allowance population. The amortized cost basis of collateral-dependent loans over $250 thousand was as follows at September 30, 2020: September 30, 2020 Total amortized Real property Business assets cost basis Commercial Commercial and industrial $ 7,936 $ 4,441 $ 12,377 Owner-occupied commercial real estate 6,396 284 6,680 Food and agribusiness 372 86 458 Total Commercial 14,704 4,811 19,515 Commercial real estate non owner-occupied Acquisition/development 253 — 253 Multifamily 1,935 — 1,935 Non-owner occupied 556 — 556 Total commercial real estate 2,744 — 2,744 Residential real estate Senior lien 2,196 — 2,196 Total residential real estate 2,196 — 2,196 Total loans $ 19,644 $ 4,811 $ 24,455 Loan modifications and troubled debt restructurings The Company’s policy is to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with lending laws, the respective loan agreements, and credit monitoring and remediation procedures that may include restructuring a loan to provide a concession by the Company to the borrower from their original terms due to borrower financial difficulties in order to facilitate repayment. Additionally, if a borrower’s repayment obligation has been discharged by a court, and that debt has not been reaffirmed by the borrower, regardless of past due status, the loan is considered to be a TDR. The CARES Act afforded financial institutions the option to modify loans within certain parameters in response to the COVID-19 pandemic without requiring the modifications to be classified as troubled debt restructurings under ASC Topic 310 if the borrower has been adversely impacted by COVID-19 and was current on their loan payments as of December 31, 2019. During the three and nine months ended September 30, 2020, the Company modified 20 and 483 loans totaling $7.1 million and $499.5 million, respectively, due to the effects of the COVID-19 pandemic that were not classified as TDRs. Loans with COVID-related modifications during the nine months ended September 30, 2020 totaled 11.6% of the total loan portfolio at September 30, 2020. Of those loans, $334.3 million have resumed making principal or interest payments or paid in full as of September 30, 2020. Modified loans that remained on a payment deferral plan at September 30, 2020 totaled $165.2 million, or 3.6% of the total loan portfolio, of which 84.0% were a second modification. Of those loans, principal payment deferrals totaled $155.1 million and full payment deferrals totaled $10.1 million All COVID modified loans were classified as performing as of September 30, 2020. During the three months ended September 30, 2020, the Company restructured seven loans with an amortized cost basis of $0.8 million to facilitate repayment that are considered TDRs. During the nine months ended September 30, 2020, the Company restructured 21 loans with an amortized cost basis of $18.6 million to facilitate repayment that are considered TDRs. Included in the total TDR balance as of September 30, 2020 were loans totaling $4.4 million previously accounted for under ASC 310-30. Loan modifications were a reduction of the principal payment, a reduction in interest rate, or an extension of term. The tables below provide additional information related to accruing TDRs at September 30, 2020 and December 31, 2019: September 30, 2020 Amortized Average year-to-date Unpaid Unfunded commitments cost basis amortized cost basis principal balance to fund TDRs Commercial $ 14,903 $ 15,394 $ 15,527 $ 157 Commercial real estate non-owner occupied 5,076 4,938 7,001 — Residential real estate 1,807 1,851 2,630 12 Consumer — — — — Total $ 21,786 $ 22,183 $ 25,158 $ 169 December 31, 2019 Recorded Average year-to-date Unpaid Unfunded commitments investment recorded investment principal balance to fund TDRs Commercial $ 5,615 $ 5,788 $ 5,714 $ — Commercial real estate non-owner occupied 141 172 192 — Residential real estate 1,129 1,178 1,206 12 Consumer — — — — Total $ 6,885 $ 7,138 $ 7,112 $ 12 The following table summarizes the Company’s carrying value of non-accrual TDRs as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Commercial $ 1,590 $ 1,891 Commercial real estate non-owner occupied — 410 Residential real estate 3,069 2,553 Consumer — — Total non-accruing TDRs $ 4,659 $ 4,854 Accrual of interest is resumed on loans that were previously on non-accrual only after the loan has performed sufficiently for a period of time. The Company had no TDRs that were modified within the past 12 months and had defaulted on their restructured terms during the nine months ended September 30, 2020 or 2019. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due on principal or interest. The allowance for credit losses related to TDRs on non-accrual status is determined by individual evaluation, including collateral adequacy, using the same process as loans on non-accrual status, which are not classified as TDRs. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Note 5 Allowance for Credit Losses The tables below detail the Company’s allowance for credit losses as of the dates shown: Three months ended September 30, 2020 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 33,142 $ 12,314 $ 14,525 $ 484 $ 60,465 Charge-offs (499) — (16) (104) (619) Recoveries 104 — 4 25 133 Provision (1,576) 1,467 1,000 109 1,000 Ending balance $ 31,171 $ 13,781 $ 15,513 $ 514 $ 60,979 Nine months ended September 30, 2020 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 30,442 $ 4,850 $ 3,468 $ 304 $ 39,064 Cumulative effect adjustment (1) (1,299) 1,666 5,314 155 5,836 Charge-offs (1,411) — (56) (502) (1,969) Recoveries 370 — 24 121 515 Provision 3,069 7,265 6,763 436 17,533 Ending balance $ 31,171 $ 13,781 $ 15,513 $ 514 $ 60,979 (1) Related to the adoption of Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments Three months ended September 30, 2019 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 30,823 $ 5,067 $ 3,851 $ 341 $ 40,082 Charge-offs (6,760) (1) (77) (263) (7,101) Recoveries 2 — 3 34 39 Provision 5,730 (11) (214) 185 5,690 Ending balance $ 29,795 $ 5,055 $ 3,563 $ 297 $ 38,710 Nine months ended September 30, 2019 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 27,137 $ 4,406 $ 3,800 $ 349 $ 35,692 Charge-offs (6,841) (1) (124) (696) (7,662) Recoveries 31 11 32 143 217 Provision 9,468 639 (145) 501 10,463 Ending balance $ 29,795 $ 5,055 $ 3,563 $ 297 $ 38,710 In evaluating the loan portfolio for an appropriate ACL level, excluding loans evaluated individually, loans were grouped into segments based on broad characteristics such as primary use and underlying collateral. Within the segments, the portfolio was further disaggregated into classes of loans with similar attributes and risk characteristics for purposes of developing the underlying data used within the discounted cash flow model including, but not limited to, prepayment and recovery rates as well as loss rates tied to macro-economic conditions within management’s reasonable and supportable forecast. The ACL also includes subjective adjustments based upon qualitative risk factors including asset quality, loss trends, lending management, portfolio growth and loan review/internal audit results. Net charge-offs on loans during the three months ended September 30, 2020 were $0.5 million. Provision for loan losses for funded loans of $1.0 million was recorded during the three months ended September 30, 2020. Net charge-offs on loans during the nine months ended September 30, 2020 were $1.5 million. Provision for loan losses for funded loans of $17.5 million was recorded during the nine months ended September 30, 2020 to provide coverage for the impact of deteriorating economic conditions as a result of COVID-19 and to support net charge-offs. Provision for loan losses totaled $5.7 million and $10.5 million for the three and nine months ended September 30, 2019, respectively, to support originated loan growth and net charge-offs. The Company has elected to exclude AIR from the allowance for credit losses calculation. As of September 30, 2020 and December 31, 2019, AIR from loans totaled $20.6 million and $17.2 million, respectively. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2020 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 6 Other Real Estate Owned A summary of the activity in OREO during the nine months ended September 30, 2020 and 2019 is as follows: For the nine months ended September 30, 2020 2019 Beginning balance $ 7,300 $ 10,596 Transfers from loan portfolio, at fair value 1,186 2,488 Impairments (423) (872) Sales (3,473) (4,308) Ending balance $ 4,590 $ 7,904 During the nine months ended September 30, 2020 and 2019, the Company sold OREO properties with net book balances of $3.5 million and $4.3 million, respectively. Sales of OREO properties resulted in net OREO gains of $0.1 million and $6.5 million, which were included in the consolidated statements of operations for the three months ended September 30, 2020 and 2019, respectively. Net OREO gains of $25 thousand and $7.2 million were included in the consolidated statements of operations for the nine months ended September 30, 2020 and 2019, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 7 Goodwill and Intangible Assets Goodwill and core deposit intangible In connection with our acquisitions, the Company recorded goodwill of $115.0 million. Goodwill is measured as the excess of the fair value of consideration paid over the fair value of net assets acquired. No goodwill impairment was recorded during the three or nine months ended September 30, 2020 or the year ended December 31, 2019. The gross carrying amount of the core deposit intangibles and the associated accumulated amortization at September 30, 2020 and December 31, 2019, are presented as follows: September 30, 2020 December 31, 2019 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount Core deposit intangible $ 48,834 $ (40,990) $ 7,844 $ 48,834 $ (40,103) $ 8,731 The Company is amortizing the core deposit intangibles from acquisitions on a straight-line basis over 7 The following table shows the estimated future amortization expense for the core deposit intangibles as of September 30, 2020: Years ending December 31, Amount For the three months ending December 31, 2020 $ 296 For the year ending December 31, 2021 1,183 For the year ending December 31, 2022 1,127 For the year ending December 31, 2023 1,048 For the year ending December 31, 2024 1,048 Mortgage servicing rights MSRs represent rights to service loans originated by the Company and sold to government-sponsored enterprises including FHLMC, FNMA, GNMA and FHLB and are included in other assets in the consolidated statements of financial condition. Mortgage loans serviced were $985.3 million and $334.5 million at September 30, 2020 and 2019, respectively. Below are the changes in the MSRs for the periods presented: For the nine months ended September 30, 2020 2019 Beginning balance $ 2,630 $ 3,556 Originations 6,627 26 Impairment (847) (453) Amortization (1,237) (578) Ending balance 7,173 2,551 Fair value of mortgage servicing rights $ 7,653 $ 2,551 The fair value of MSRs was determined based upon a discounted cash flow analysis. The cash flow analysis included assumptions for discount rates and prepayment speeds. Discount rates ranged from 9.5% to 10.5%, and the constant prepayment speed ranged from 18.0% to 21.8% for the September 30, 2020 valuation. Discount rates ranged from 9.5% to 10.5%, and the constant prepayment speed ranged from 17.9% to 26.7% for the September 30, 2019 valuation. Included in mortgage banking income in the consolidated statements of operations were service fees of $0.5 million and $1.0 million for the three and nine months ended September 30, 2020, respectively, and $0.2 million and $0.7 million for the three and nine months ended September 30, 2019, respectively. MSRs are evaluated and impairment is recognized to the extent fair value is less than the carrying amount. The Company evaluates impairment by stratifying MSRs based on the predominant risk characteristics of the underlying loans, including loan type and loan term. The Company is amortizing the MSRs in proportion to and over the period of the estimated net servicing income of the underlying loans. The following table shows the estimated future amortization expense for the MSRs as of September 30, 2020: Years ending December 31, Amount For the three months ending December 31, 2020 $ 396 For the year ending December 31, 2021 1,507 For the year ending December 31, 2022 1,215 For the year ending December 31, 2023 980 For the year ending December 31, 2024 790 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Borrowings | |
Borrowings | Note 8 Borrowings The Company enters into repurchase agreements to facilitate the needs of its clients. As of September 30, 2020 and December 31, 2019, the Company sold securities under agreements to repurchase totaling $23.9 million and $56.9 million, respectively. The Company pledged mortgage-backed securities with a fair value of approximately $28.8 million and $65.6 million as of September 30, 2020 and December 31, 2019, respectively, for these agreements. The Company monitors collateral levels on a continuous basis and may be required to provide additional collateral based on the fair value of the underlying securities. As of September 30, 2020 and December 31, 2019, the Company had $4.2 million and $7.0 million, respectively, of excess collateral pledged for repurchase agreements. As a member of the FHLB, the Bank has access to a line of credit and term financing from the FHLB with total available credit of $1.0 billion at September 30, 2020. At September 30, 2020, the Bank had no outstanding borrowings from the FHLB. At December 31, 2019, the Bank had $192.7 million in line of credit advances from the FHLB that matured within a day and one term advance totaling $15.0 million with a fixed interest rate of 2.33% and a maturity date in October 2020 . The Bank may have investment securities and loans pledged as collateral for FHLB advances. There were no investment securities pledged at September 30, 2020. At December 31, 2019, investment securities totaling $17.6 million were pledged as collateral for FHLB advances. Loans pledged were $1.3 billion at September 30, 2020 and $1.5 billion at December 31, 2019. Interest expense related to FHLB advances and other short-term borrowings totaled $0.1 million and $1.3 million for the three and nine months ended September 30, 2020, respectively, and $1.4 million and $4.8 million for the three and nine months ended September 30, 2019, respectively. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Capital | |
Regulatory Capital | Note 9 Regulatory Capital As a bank holding company, the Company is subject to regulatory capital adequacy requirements implemented by the Federal Reserve. The federal banking agencies have risk-based capital adequacy regulations intended to provide a measure of capital adequacy that reflects the degree of risk associated with a banking organization’s operations. Under these regulations, assets are assigned to one of several risk categories, and nominal dollar amounts of assets and credit equivalent amounts of off-balance-sheet items are multiplied by a risk adjustment percentage for the category. Under the Basel III requirements, at September 30, 2020 and December 31, 2019, the Company and the Bank met all capital requirements including the capital conservation buffer of 2.5%, which was fully phased in on January 1, 2019. The Bank had regulatory capital ratios in excess of the levels established for well-capitalized institutions, as detailed in the tables below: September 30, 2020 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 10.6% $ 673,622 N/A N/A 4.0% $ 254,180 NBH Bank 9.2% 586,217 5.0% $ 317,605 4.0% 254,084 Common equity tier 1 risk based capital: Consolidated 14.3% $ 673,622 N/A N/A 7.0% $ 330,905 NBH Bank 12.4% 586,217 6.5% $ 307,342 7.0% 330,984 Tier 1 risk based capital ratio: Consolidated 14.3% $ 673,622 N/A N/A 8.5% $ 401,813 NBH Bank 12.4% 586,217 8.0% $ 378,267 8.5% 401,909 Total risk based capital ratio: Consolidated 15.4% $ 728,166 N/A N/A 10.5% $ 496,358 NBH Bank 13.6% 640,760 10.0% $ 472,834 10.5% 496,476 December 31, 2019 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 11.0% $ 640,440 N/A N/A 4.0% $ 231,950 NBH Bank 9.1% 528,028 5.0% $ 289,926 4.0% 231,940 Common equity tier 1 risk based capital: Consolidated 13.2% $ 640,440 N/A N/A 7.0% $ 405,912 NBH Bank 10.9% 528,028 6.5% $ 376,903 7.0% 405,896 Tier 1 risk based capital ratio: Consolidated 13.2% $ 640,440 N/A N/A 8.5% $ 412,620 NBH Bank 10.9% 528,028 8.0% $ 387,701 8.5% 411,932 Total risk based capital ratio: Consolidated 14.1% $ 682,645 N/A N/A 10.5% $ 509,707 NBH Bank 11.8% 570,233 10.0% $ 484,626 10.5% 508,857 |
Revenue from Contracts with Cli
Revenue from Contracts with Clients | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contracts with Clients | |
Revenue from Contracts with Clients | Note 10 Revenue from Contracts with Clients Revenue is recognized when obligations under the terms of a contract with clients are satisfied. Below is the detail of the Company’s revenue from contracts with clients. Service charges and other fees Service charge fees are primarily comprised of monthly service fees, check orders and other deposit account related fees. Other fees include revenue from processing Bank card fees Bank card fees are primarily comprised of debit card income, ATM fees, merchant services income and other fees. Debit card income is primarily comprised of interchange fees earned whenever the Company’s debit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Bank cardholder uses a non-Bank ATM or a non-Bank cardholder uses a Bank ATM. Merchant services income mainly represents fees charged to merchants to process their debit card transactions. The Company’s performance obligation for bank card fees are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Gain on OREO sales, net Gain on OREO sales, net is recognized when the Company meets its performance obligation to transfer title to the buyer. The gain or loss is measured as the excess of the proceeds received compared to the OREO carrying value. Sales proceeds are received in cash at the time of transfer. The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, and non-interest expense in-scope of Topic 606 for the three and nine months ended September 30, 2020 and 2019: For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Non-interest income In-scope of Topic 606: Service charges and other fees $ 4,246 $ 5,112 $ 12,453 $ 14,822 Bank card fees 4,039 3,752 11,206 10,946 Non-interest income (in-scope of Topic 606) 8,285 8,864 23,659 25,768 Non-interest income (out-of-scope of Topic 606) 36,247 15,895 83,242 36,702 Total non-interest income $ 44,532 $ 24,759 $ 106,901 $ 62,470 Non-interest expense In-scope of Topic 606: Gain on OREO sales, net $ 119 $ 6,514 $ 25 $ 7,200 Total revenue in-scope of Topic 606 $ 8,404 $ 15,378 $ 23,684 $ 32,968 Contract acquisition costs In accordance with Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a client if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a client that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient, which allows entities to expense immediately contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company has not capitalized any contract acquisition costs. |
Stock-based Compensation and Be
Stock-based Compensation and Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Stock-based Compensation and Benefits | |
Stock-based Compensation and Benefits | Note 11 Stock-based Compensation and Benefits The Company provides stock-based compensation in accordance with shareholder-approved plans. In 2014, shareholders approved the 2014 Omnibus Incentive Plan (the "2014 Plan"). The 2014 Plan replaces the NBH Holdings Corp. 2009 Equity Incentive Plan (the "Prior Plan"), pursuant to which the Company granted equity awards prior to the approval of the 2014 Plan. Pursuant to the 2014 Plan, the Compensation Committee of the Board of Directors has the authority to grant, from time to time, awards of stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, other stock-based awards, or any combination thereof to eligible persons. Stock options The Company issues stock options, which are primarily time-vesting with 1/3 The expense associated with the awarded stock options was measured at fair value using a Black-Scholes option-pricing model. The outstanding option awards vest or have vested on a graded basis over 1-4 years of continuous service and have 10-year contractual terms. The following table summarizes stock option activity for the nine months ended September 30, 2020: Weighted average Weighted remaining average contractual Aggregate exercise term in intrinsic Options price years value Outstanding at December 31, 2019 657,114 $ 26.69 6.41 $ 5,626 Granted 225,936 23.13 Exercised (63,558) 19.77 Forfeited (17,038) 29.00 Outstanding at September 30, 2020 802,454 26.18 7.01 2,474 Options exercisable at September 30, 2020 447,461 25.35 5.43 1,791 Options vested and expected to vest 764,282 26.17 6.90 2,390 Stock option expense is a component of salaries and benefits in the consolidated statements of operations and totaled $0.1 million and $0.2 million for the three months ended September 30, 2020 and 2019, respectively, and $0.8 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively. At September 30, 2020, there was $0.9 million of total unrecognized compensation cost related to non-vested stock options granted under the plans. The cost is expected to be recognized over a weighted average period of 1.3 years. Restricted stock awards The Company issues primarily time-based restricted stock awards that vest over a range of a 1 - 3 year period. Restricted stock with time-based vesting was valued at the fair value of the shares on the date of grant as they are assumed to be held beyond the vesting period. Performance stock units The Company grants performance stock units which represent initial target awards and do not reflect potential increases or decreases resulting from the final performance results, which are to be determined at the end of the three-year performance period (vesting date). The actual number of shares to be awarded at the end of the performance period will range from 0% - 150% of the initial target awards. Historically, 60% of the award is based on the Company’s cumulative earnings per share (EPS target) during the performance period, and 40% of the award is based on the Company’s cumulative total shareholder return (TSR target), or TSR, during the performance period. On the vesting date, the Company’s TSR will be compared to the respective TSRs of the companies comprising the KBW Regional Index at the grant date to determine the shares awarded. The fair value of the EPS target portion of the award was determined based on the closing stock price of the Company’s common stock on the grant date. The fair value of the TSR target portion of the award was determined using a Monte Carlo Simulation at the grant date. In establishing the PSU components during 2020, the Compensation Committee determined the EPS target portion of the award would not be an effective metric in light of economic uncertainty surrounding COVID-19. Consequently, the Compensation Committee granted an award based upon a relative return on tangible assets (“ROTA”). Annually, the Company’s ROTA is compared to the respective ROTA of companies comprising the KBW Regional Index. At the end of the measurement period, the Company’s ranking will be averaged to determine the shares awarded. The fair value of the ROTA award was determined based on the closing stock price of the Company’s common stock on the grant date. The weighted-average grant date fair value per unit for the ROTA target portion and the TSR target portion granted during the nine months ended September 30, 2020 was $28.43 and $24.58, respectively. The initial weighted-average performance price for the TSR target portion granted during the nine months ended September 30, 2020 was $35.95. During the nine months ended September 30, 2020, the Company awarded an additional 17,852 units due to final performance results related to performance stock units granted in 2017. The following table summarizes restricted stock and performance stock unit activity during the nine months ended September 30, 2020: Weighted Weighted Restricted average grant- Performance average grant- stock shares date fair value stock units date fair value Unvested at December 31, 2019 122,198 $ 34.19 158,874 $ 31.19 Granted 120,132 23.58 68,498 26.74 Net adjustment due to performance — — 17,852 33.22 Vested (53,995) 34.40 (53,540) 33.22 Forfeited (9,502) 29.94 (6,032) 29.37 Unvested at September 30, 2020 178,833 $ 27.22 185,652 $ 29.22 As of September 30, 2020, the total unrecognized compensation cost related to the non-vested restricted stock awards and performance stock units totaled $2.6 million and $3.1 million, respectively, and is expected to be recognized over a weighted average period of approximately 2.0 years and 1.9 years, respectively. Expense related to non-vested restricted stock awards totaled $0.7 million and $0.7 million during the three months ended September 30, 2020 and 2019, respectively, and $1.9 million and $1.6 million during the nine months ended September 30, 2020 and 2019, respectively. Expense related to non-vested performance stock units totaled $0.4 million and $0.5 million during the three months ended September 30, 2020 and 2019, respectively, and $1.3 million and $1.2 million during the nine months ended September 30, 2020 and 2019, respectively. Expense related to non-vested restricted stock awards and units is a component of salaries and benefits in the Company’s consolidated statements of operations. Employee stock purchase plan The 2014 Employee Stock Purchase Plan (“ESPP”) is intended to be a qualified plan within the meaning of Section 423 of the Internal Revenue Code of 1986 and allows eligible employees to purchase shares of common stock through payroll deductions up to a limit of $25,000 per calendar year and 2,000 shares per offering period. The price an employee pays for shares is 90.0% of the fair market value of Company common stock on the last day of the offering period. The offering periods are the six-month periods commencing on March 1 and September 1 of each year and ending on August 31 and February 28 (or February 29 in the case of a leap year) of each year. There are no vesting or other restrictions on the stock purchased by employees under the ESPP. Under the ESPP, the total number of shares of common stock reserved for issuance totaled 400,000 shares, of which 302,876 was available for issuance at September 30, 2020. Under the ESPP, employees purchased 23,212 shares and 16,556 shares during the nine months ended September 30, 2020 and 2019, respectively. |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2020 | |
Common Stock | |
Common Stock | Note 12 Common Stock The Company had 30,594,412 and 31,176,627 shares of Class A common stock outstanding at September 30, 2020 and December 31, 2019, respectively. Additionally, the Company had 178,833 and 122,198 shares outstanding at September 30, 2020 and December 31, 2019, respectively, of restricted Class A common stock issued but not yet vested under the 2014 Plan that are not included in shares outstanding until such time that they are vested; however, these shares do have voting and certain dividend rights during the vesting period. On February 26, 2020, the Board of Directors authorized a new share repurchase program for up to $50.0 million from time to time in either the open market or through privately negotiated transactions. During the first quarter of 2020, the Company repurchased 734,117 shares for $19.5 million. Of those repurchases, $12.6 million were part of the previous authorization from August 2016. That authorization has been completed. The remaining authorization under the new program as of September 30, 2020 was $43.1 million. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Earnings Per Share | Note 13 Earnings Per Share The Company calculates earnings per share under the two-class method, as certain non-vested share awards contain non-forfeitable rights to dividends. As such, these awards are considered securities that participate in the earnings of the Company. Non-vested shares are discussed further in note 11. The Company had 30,594,412 and 31,169,086 shares of Class A common stock outstanding as of September 30, 2020 and 2019, respectively, exclusive of issued non-vested restricted shares. Certain stock options and non-vested restricted shares are potentially dilutive securities, but are not included in the calculation of diluted earnings per share because to do so would have been anti-dilutive for the three and nine months ended September 30, 2020 and 2019. The following table illustrates the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019: For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income $ 27,893 $ 21,642 $ 61,422 $ 60,846 Less: income allocated to participating securities (36) (25) (96) (69) Income allocated to common shareholders $ 27,857 $ 21,617 $ 61,326 $ 60,777 Weighted average shares outstanding for basic earnings per common share 30,756,116 31,281,970 30,881,325 31,133,982 Dilutive effect of equity awards 168,107 227,029 189,672 403,352 Weighted average shares outstanding for diluted earnings per common share 30,924,223 31,508,999 31,070,997 31,537,334 Basic earnings per share $ 0.91 $ 0.69 $ 1.99 $ 1.95 Diluted earnings per share 0.90 0.69 1.97 1.93 The Company had 802,454 and 661,467 outstanding stock options to purchase common stock at weighted average exercise prices of $26.18 and $26.73 per share at September 30, 2020 and 2019, respectively, which have time-vesting criteria, and as such, any dilution is derived only for the time frame in which the vesting criteria had been met and where the inclusion of those stock options is dilutive. The Company had 364,485 and 295,619 unvested restricted shares and performance stock units issued as of September 30, 2020 and 2019, respectively, which have performance, market and/or time-vesting criteria, and as such, any dilution is derived only for the time frame in which the vesting criteria had been met and where the inclusion of those restricted shares and units is dilutive. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivatives | |
Derivatives | Note 14 Derivatives Risk management objective of using derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company has established policies that neither carrying value nor fair value at risk should exceed established guidelines. The Company has designed strategies to confine these risks within the established limits and identify appropriate trade-offs in the financial structure of its balance sheet. These strategies include the use of derivative financial instruments to help achieve the desired balance sheet repricing structure while meeting the desired objectives of its clients. Currently, the Company employs certain interest rate swaps that are designated as fair value hedges as well as economic hedges. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. Fair values of derivative instruments on the balance sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of September 30, 2020 and December 31, 2019. Information about the valuation methods used to measure fair value is provided in note 16. Asset derivatives fair value Liability derivatives fair value Balance Sheet September 30, December 31, Balance Sheet September 30, December 31, location 2020 2019 Location 2020 2019 Derivatives designated as hedging instruments: Interest rate products Other assets $ — $ 1,171 Other liabilities $ 45,279 $ 13,537 Total derivatives designated as hedging instruments $ — $ 1,171 $ 45,279 $ 13,537 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 21,287 $ 9,004 Other liabilities $ 21,371 $ 9,021 Interest rate lock commitments Other assets 11,769 1,499 Other liabilities 440 141 Forward contracts Other assets 191 16 Other liabilities 1,006 299 Total derivatives not designated as hedging instruments $ 33,247 $ 10,519 $ 22,817 $ 9,461 Fair value hedges Interest rate swaps designated as fair value hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. As of September 30, 2020, the Company had interest rate swaps with a notional amount of $395.3 million, which were designated as fair value hedges of interest rate risk. As of December 31, 2019, the Company had interest rate swaps with a notional amount of $403.7 million, that were designated as fair value hedges. These interest rate swaps were associated with $398.4 million and $405.9 million of the Company’s fixed-rate loans included in loans receivable on the statements of financial condition as of September 30, 2020 and December 31, 2019, respectively, before a gain of $46.9 million and $13.9 million from the fair value hedge adjustment in the carrying amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related derivatives. Non-designated hedges Derivatives not designated as hedges are not speculative and consist of interest rate swaps with commercial banking clients that facilitate their respective risk management strategies. Interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the client swaps and the offsetting swaps are recognized directly in earnings. As of September 30, 2020, the Company had matched interest rate swap transactions with an aggregate notional amount of $492.3 million related to this program. As of December 31, 2019, the Company had matched interest rate swap transactions with an aggregate notional amount of $478.9 million. As part of its mortgage banking activities, the Company enters into interest rate lock commitments, which are commitments to originate loans where the interest rate on the loan is determined prior to funding and the clients have locked into that interest rate. The Company then locks in the loan and interest rate with an investor and commits to deliver the loan if settlement occurs ("best efforts") or commits to deliver the locked loan in a binding ("mandatory") delivery program with an investor. Fair value changes of certain loans under interest rate lock commitments are hedged with forward sales contracts of MBS. Forward sales contracts of MBS are recorded at fair value with changes in fair value recorded in non-interest income. Interest rate lock commitments and commitments to deliver loans to investors are considered derivatives. The market value of interest rate lock commitments and best efforts contracts are not readily ascertainable with precision because they are not actively traded in stand-alone markets. The Company determines the fair value of interest rate lock commitments and delivery contracts by measuring the fair value of the underlying assets. The fair value of the underlying assets is impacted by current interest rates, remaining origination fees, costs of production to be incurred and the probability that the interest rate lock commitments will close or will be funded. Certain additional risks arise from these forward delivery contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. The Company does not expect any counterparty to any MBS contract to fail to meet its obligation. Additional risks inherent in mandatory delivery programs include the risk that, if the Company fails to deliver the loans subject to interest rate risk lock commitments, it will still be obligated to “pair off” MBS to the counterparty. Should this be required, the Company could incur significant costs in acquiring replacement loans and such costs could have an adverse effect on the consolidated financial statements. The fair value of the mortgage banking derivative is recorded as a freestanding asset or liability with the change in value being The Company had interest rate lock commitments with a notional value of $457.9 million and forward contracts with a notional value of $516.4 million at September 30, 2020. At December 31, 2019, the Company had interest rate lock commitments with a notional value of $99.8 million and forward contracts with a notional value of $181.5 million . Effect of derivative instruments on the consolidated statements of operations The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019: Location of gain (loss) Amount of gain (loss) recognized in income on derivatives Derivatives in fair value recognized in income on For the three months ended September 30, For the nine months ended September 30, hedging relationships derivatives 2020 2019 2020 2019 Interest rate products Interest and fees on loans $ 5,043 $ 5,809 $ 1,310 $ (11,791) Total $ 5,043 $ 5,809 $ 1,310 $ (11,791) Location of gain (loss) Amount of (loss) gain recognized in income on hedged items recognized in income on For the three months ended September 30, For the nine months ended September 30, Hedged items hedged items 2020 2019 2020 2019 Interest rate products Interest and fees on loans $ (4,993) $ (3,313) $ (2,869) $ 11,604 Total $ (4,993) $ (3,313) $ (2,869) $ 11,604 Location of gain (loss) Amount of gain (loss) recognized in income on derivatives Derivatives not designated recognized in income on For the three months ended September 30, For the nine months ended September 30, as hedging instruments derivatives 2020 2019 2020 2019 Interest rate products Other non-interest expense $ 8 $ (198) $ (65) $ (761) Interest rate lock commitments Mortgage banking income 3,243 522 14,174 2,290 Forward contracts Mortgage banking income 1,558 348 (532) 49 Total $ 4,809 $ 672 $ 13,577 $ 1,578 Credit-risk-related contingent features The Company has agreements with its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness for reasons other than an error or omission of an administrative or operational nature, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well/adequately capitalized institution, then the counterparty has the right to terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of September 30, 2020, the termination value of derivatives in a net liability position related to these agreements was $69.3 million, which includes accrued interest but excludes any adjustment for nonperformance risk. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and, as of September 30, 2020, the Company had posted $76.3 million in eligible collateral. If the Company had breached any of these provisions at September 30, 2020, it could have been required to settle its obligations under the agreements at the termination value. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 15 Commitments and Contingencies In the normal course of business, the Company enters into various off-balance sheet commitments to help meet the financing needs of clients. These financial instruments include commitments to extend credit, commercial and consumer lines of credit and standby letters of credit. The same credit policies are applied to these commitments as the loans on the consolidated statements of financial condition; however, these commitments involve varying degrees of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The total amounts of unused commitments do not necessarily represent future credit exposure or cash requirements, as commitments often expire without being drawn upon. However, the contractual amount of these commitments, offset by any additional collateral pledged, represents the Company’s potential credit loss exposure. Total unfunded commitments at September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Commitments to fund loans $ 280,496 $ 249,914 Unfunded commitments under lines of credit 557,464 600,407 Commercial and standby letters of credit 8,862 11,929 Total unfunded commitments $ 846,822 $ 862,250 Commitments to fund loans Unfunded commitments under lines of credit Commercial and standby letters of credit Contingencies Mortgage loans sold to investors may be subject to repurchase or indemnification in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company established a reserve liability for expected losses related to these representations and warranties based upon management’s evaluation of actual and historic loss history, delinquency trends in the portfolio and economic conditions. Charges against the reserve during the three and nine months ended September 30, 2020 totaling $214 thousand and $397 thousand, respectively, were primarily driven by early payoffs. The Company recorded a repurchase reserve of $2.8 million and $2.6 million at September 30, 2020 and December 31, 2019, respectively, which is included in other liabilities on the consolidated statements of financial condition. The following table summarizes mortgage repurchase reserve activity for the periods presented: For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Beginning balance $ 2,725 $ 2,633 $ 2,589 $ 3,286 Provision charged to (released from) operating expense, net 285 (111) 604 (639) Charge-offs (214) (24) (397) (149) Ending balance $ 2,796 $ 2,498 $ 2,796 $ 2,498 In the ordinary course of business, the Company and the Bank may be subject to litigation. Based upon the available information and advice from the Company’s legal counsel, management does not believe that any potential, threatened or pending litigation to which it is a party will have a material adverse effect on the Company’s liquidity, financial condition or results of operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16 Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For disclosure purposes, the Company groups its financial and non-financial assets and liabilities into three different levels based on the nature of the instrument and the availability and reliability of the information that is used to determine fair value. The three levels are defined as follows: ● Level 1—Includes assets or liabilities in which the valuation methodologies are based on unadjusted quoted prices in active markets for identical assets or liabilities. ● Level 2—Includes assets or liabilities in which the inputs to the valuation methodologies are based on similar assets or liabilities in inactive markets, quoted prices for identical or similar assets or liabilities in inactive markets, and inputs other than quoted prices that are observable, such as interest rates, yield curves, volatilities, prepayment speeds and other inputs obtained from observable market input. ● Level 3—Includes assets or liabilities in which the inputs to the valuation methodology are based on at least one significant assumption that is not observable in the marketplace. These valuations may rely on management’s judgment and may include internally-developed model-based valuation techniques. Level 1 inputs are considered to be the most transparent and reliable and level 3 inputs are considered to be the least transparent and reliable. The Company assumes the use of the principal market to conduct a transaction of each particular asset or liability being measured and then considers the assumptions that market participants would use when pricing the asset or liability. Whenever possible, the Company first looks for quoted prices for identical assets or liabilities in active markets (level 1 inputs) to value each asset or liability. However, when inputs from identical assets or liabilities on active markets are not available, the Company utilizes market observable data for similar assets and liabilities. The Company maximizes the use of observable inputs and limits the use of unobservable inputs to occasions when observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity of the actual financial instrument or of the underlying collateral. While third-party price indications may be available in those cases, limited trading activity can challenge the observability of those inputs. Changes in the valuation inputs used for measuring the fair value of financial instruments may occur due to changes in current market conditions or other factors. Such changes may necessitate a transfer of the financial instruments to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfer occurs. During the nine months ended September 30, 2020 and 2019, there were no transfers of financial instruments between the hierarchy levels. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of each instrument under the valuation hierarchy: Fair Value of Financial Instruments Measured on a Recurring Basis Investment securities available-for-sale Loans held for sale Interest rate swap derivatives Mortgage banking derivatives valuation model to estimate the fair value of its forward commitments to sell residential mortgage loans (i.e., an estimate of what the Company would receive or pay to terminate the forward delivery contract based on market prices for similar financial instruments), which includes matching specific terms and maturities of the forward commitments against applicable investor pricing. The tables below present the financial instruments measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 on the consolidated statements of financial condition utilizing the hierarchy structure described above: September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ — $ 92,892 $ — $ 92,892 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 476,650 — 476,650 Municipal securities — 394 — 394 Corporate debt — 2,003 — 2,003 Loans held for sale — 273,003 — 273,003 Interest rate swap derivatives — 21,287 — 21,287 Mortgage banking derivatives — — 11,960 11,960 Total assets at fair value $ — $ 866,229 $ 11,960 $ 878,189 Liabilities: Interest rate swap derivatives $ — $ 66,650 $ — $ 66,650 Mortgage banking derivatives — — 1,446 1,446 Total liabilities at fair value $ — $ 66,650 $ 1,446 $ 68,096 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ — $ 95,256 $ — $ 95,256 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 542,037 — 542,037 Municipal securities — 372 — 372 Loans held for sale — 117,444 — 117,444 Interest rate swap derivatives — 10,175 — 10,175 Mortgage banking derivatives — — 1,515 1,515 Total assets at fair value $ — $ 765,284 $ 1,515 $ 766,799 Liabilities: Interest rate swap derivatives $ — $ 22,558 $ — $ 22,558 Mortgage banking derivatives — — 440 440 Total liabilities at fair value $ — $ 22,558 $ 440 $ 22,998 The table below details the changes in level 3 financial instruments during the nine months ended September 30, 2020: Mortgage banking derivatives, net Balance at December 31, 2019 $ 1,075 Gain included in earnings, net 13,642 Fees and costs included in earnings, net (4,203) Balance at September 30, 2020 $ 10,514 Fair Value of Financial Instruments Measured on a Non-recurring Basis Certain assets may be recorded at fair value on a non-recurring basis as conditions warrant. These non-recurring fair value measurements typically result from the application of lower of cost or fair value accounting or a write-down occurring during the period. Individually evaluated loans OREO Mortgage servicing rights MSRs calculation of fair value. For purposes of measuring impairment, the MSRs are stratified into certain risk characteristics including note type and note term. If the valuation model reflects a value less than the carrying value, MSRs are adjusted to fair value through a valuation allowance and the adjustment is included in mortgage banking income on the consolidated statements of operations. The inputs used to determine the fair values of MSRs are considered level 3 inputs in the fair value hierarchy. Premises and equipment The Company may be required to record fair value adjustments on other available-for-sale and municipal securities valued at par on a non-recurring basis. The tables below provide information regarding the assets recorded at fair value on a non-recurring basis during the nine months ended September 30, 2020 and 2019: September 30, 2020 Total Losses from fair value changes Individually evaluated loans $ 33,603 $ 1,969 Other real estate owned 4,590 423 Premises and equipment 8,024 1,631 Mortgage servicing rights 7,173 847 Total $ 53,390 $ 4,870 September 30, 2019 Total Losses from fair value changes Individually evaluated loans $ 37,002 $ 7,571 Other real estate owned 7,904 872 Premises and equipment 3,385 898 Mortgage servicing rights 2,879 453 Total $ 51,170 $ 9,794 The Company did not record any liabilities measured at fair value on a non-recurring basis during the nine months ended September 30, 2020. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 17 Fair Value of Financial Instruments The fair value of a financial instrument is the amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is determined based upon quoted market prices to the extent possible; however, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques that may be significantly impacted by the assumptions used, including the discount rate and estimates of future cash flows. Changes in any of these assumptions could significantly affect the fair value estimates. The fair value of the financial instruments listed below does not reflect a premium or discount that could result from offering all of the Company’s holdings of financial instruments at one time, nor does it reflect the underlying value of the Company, as ASC Topic 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies and are based on the exit price concept within ASC Topic 825 and applied to this disclosure on a prospective basis. Considerable judgment is required to interpret market data in order to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The fair value of financial instruments at September 30, 2020 and December 31, 2019 are set forth below: Level in fair value September 30, 2020 December 31, 2019 measurement Carrying Estimated Carrying Estimated hierarchy amount fair value amount fair value ASSETS Cash and cash equivalents Level 1 $ 445,103 $ 445,103 $ 110,190 $ 110,190 Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 92,892 92,892 95,256 95,256 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 476,650 476,650 542,037 542,037 Municipal securities available-for-sale Level 2 394 394 372 372 Municipal securities available-for-sale Level 3 115 115 115 115 Corporate debt Level 2 2,003 2,003 — — Other available-for-sale securities Level 3 469 469 469 469 Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 250,790 255,032 127,560 128,770 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 69,211 69,688 55,324 54,971 Non-marketable securities Level 2 29,598 29,598 29,751 29,751 Loans receivable Level 3 4,556,121 4,723,757 4,415,406 4,481,209 Loans held for sale Level 2 273,003 273,003 117,444 117,444 Accrued interest receivable Level 2 22,852 22,852 19,157 19,157 Interest rate swap derivatives Level 2 21,287 21,287 10,175 10,175 Mortgage banking derivatives Level 3 11,960 11,960 1,515 1,515 LIABILITIES Deposit transaction accounts Level 2 4,589,394 4,589,394 3,678,979 3,678,979 Time deposits Level 2 1,027,066 1,036,192 1,058,153 1,058,354 Securities sold under agreements to repurchase Level 2 23,904 23,904 56,935 56,935 Federal Home Loan Bank advances Level 2 — — 207,675 207,890 Accrued interest payable Level 2 8,219 8,219 9,328 9,328 Interest rate swap derivatives Level 2 66,650 66,650 22,558 22,558 Mortgage banking derivatives Level 3 1,446 1,446 440 440 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | Available-for-sale securities are summarized as follows as of the dates indicated: September 30, 2020 Amortized Gross Gross cost unrealized gains unrealized losses Fair value Mortgage-backed securities (“MBS”): Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 90,022 $ 2,870 $ — $ 92,892 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 466,648 10,114 (112) 476,650 Municipal securities 495 14 — 509 Corporate debt 2,000 3 — 2,003 Other securities 469 — — 469 Total investment securities available-for-sale $ 559,634 $ 13,001 $ (112) $ 572,523 December 31, 2019 Amortized Gross Gross cost unrealized gains unrealized losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 93,770 $ 1,497 $ (11) $ 95,256 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 543,275 3,818 (5,056) 542,037 Municipal securities 495 — (8) 487 Other securities 469 — — 469 Total investment securities available-for-sale $ 638,009 $ 5,315 $ (5,075) $ 638,249 |
Summary of unrealized losses for available-for-sale securities | The tables below summarize the available-for-sale securities with unrealized losses as of the dates shown, along with the length of the impairment period: September 30, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 26,992 $ (90) $ 2,394 $ (22) $ 29,386 $ (112) Total $ 26,992 $ (90) $ 2,394 $ (22) $ 29,386 $ (112) December 31, 2019 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 10,413 $ (7) $ 1,421 $ (4) $ 11,834 $ (11) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 41,983 (281) 254,380 (4,775) 296,363 (5,056) Municipal securities — — 372 (8) 372 (8) Total $ 52,396 $ (288) $ 256,173 $ (4,787) $ 308,569 $ (5,075) |
Held-to-maturity Securities | Held-to-maturity investment securities are summarized as follows as of the dates indicated: September 30, 2020 Gross Gross Amortized unrealized unrealized cost gains losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 250,790 $ 4,358 $ (116) $ 255,032 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 69,211 477 — 69,688 Total investment securities held-to-maturity $ 320,001 $ 4,835 $ (116) $ 324,720 December 31, 2019 Gross Gross Amortized unrealized unrealized cost gains losses Fair value Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 127,560 $ 1,239 $ (29) $ 128,770 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 55,324 82 (435) 54,971 Total investment securities held-to-maturity $ 182,884 $ 1,321 $ (464) $ 183,741 |
Summary of unrealized losses for held-to-maturity securities | There were six held-to-maturity securities in an unrealized loss position as of September 30, 2020, compared to 13 securities at December 31, 2019. The tables below summarize the held-to-maturity securities with unrealized losses as of the dates shown, along with the length of the impairment period: September 30, 2020 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 59,053 $ (116) $ — $ — $ 59,053 $ (116) Total $ 59,053 $ (116) $ — $ — $ 59,053 $ (116) December 31, 2019 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ 10,478 $ (26) $ 338 $ (3) $ 10,816 $ (29) Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises 3,925 (9) 28,554 (426) 32,479 (435) Total $ 14,403 $ (35) $ 28,892 $ (429) $ 43,295 $ (464) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loan Portfolio Composition Including Carrying Value by Segment of Originated and Acquired Loans Accounted for under ASC Topic 310-30 and Loans Covered by the FDIC Loss Sharing Agreements | The tables below show the loan portfolio composition including carrying value by segment as of the dates shown. The carrying value of loans is net of discounts, fees, costs and fair value marks of $22.3 million and $21.9 million as of September 30, 2020 and December 31, 2019, respectively. Included in commercial loans are loans originated as part of the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) of which $348.3 million, net of fees and costs, are outstanding at September 30, 2020, which are fully guaranteed by the SBA. September 30, 2020 Total loans % of total Commercial $ 3,217,406 70.6% Commercial real estate non-owner occupied 617,087 13.5% Residential real estate 700,927 15.4% Consumer 20,701 0.5% Total $ 4,556,121 100.0% December 31, 2019 Total loans % of total Commercial $ 2,992,307 67.8% Commercial real estate non-owner occupied 630,906 14.3% Residential real estate 770,417 17.4% Consumer 21,776 0.5% Total $ 4,415,406 100.0% |
Past Due Financing Receivables | Information about delinquent and non-accrual loans are shown in the following tables at September 30, 2020 and December 31, 2019: September 30, 2020 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 970 $ — $ 7,395 $ 8,365 $ 1,592,426 $ 1,600,791 Municipal and non-profit — — — — 883,641 883,641 Owner occupied commercial real estate 1,845 — 3,539 5,384 511,031 516,415 Food and agribusiness 472 — 551 1,023 215,536 216,559 Total commercial 3,287 — 11,485 14,772 3,202,634 3,217,406 Commercial real estate non-owner occupied: Construction — — — — 77,361 77,361 Acquisition/development — — 8 8 26,003 26,011 Multifamily — — — — 69,925 69,925 Non-owner occupied 2,633 — 20 2,653 441,137 443,790 Total commercial real estate 2,633 — 28 2,661 614,426 617,087 Residential real estate: Senior lien 506 161 6,625 7,292 611,971 619,263 Junior lien 154 — 697 851 80,813 81,664 Total residential real estate 660 161 7,322 8,143 692,784 700,927 Consumer 7 — 47 54 20,647 20,701 Total loans $ 6,587 $ 161 $ 18,882 $ 25,630 $ 4,530,491 $ 4,556,121 September 30, 2020 Non-accrual loans Non-accrual loans with a related with no related allowance for allowance for Non-accrual credit loss credit loss loans Commercial: Commercial and industrial $ 4,664 $ 2,731 $ 7,395 Municipal and non-profit — — — Owner occupied commercial real estate 633 2,906 3,539 Food and agribusiness 178 373 551 Total commercial 5,475 6,010 11,485 Commercial real estate non-owner occupied: Construction — — — Acquisition/development 8 — 8 Multifamily — — — Non-owner occupied 20 — 20 Total commercial real estate 28 — 28 Residential real estate: Senior lien 4,429 2,196 6,625 Junior lien 697 — 697 Total residential real estate 5,126 2,196 7,322 Consumer 47 — 47 Total loans $ 10,676 $ 8,206 $ 18,882 December 31, 2019 Greater 30-89 days than 90 days Total past past due and past due and Non-accrual due and accruing accruing loans non-accrual Current Total loans Commercial: Commercial and industrial $ 2,252 $ 879 $ 10,330 $ 13,461 $ 1,398,070 $ 1,411,531 Municipal and non-profit 226 — — 226 837,300 837,526 Owner occupied commercial real estate 595 630 2,264 3,489 486,633 490,122 Food and agribusiness 190 — 317 507 252,621 253,128 Total commercial 3,263 1,509 12,911 17,683 2,974,624 2,992,307 Commercial real estate non-owner occupied: Construction — — — — 77,733 77,733 Acquisition/development 187 — 416 603 26,276 26,879 Multifamily — — — — 55,808 55,808 Non-owner occupied 438 65 43 546 469,940 470,486 Total commercial real estate 625 65 459 1,149 629,757 630,906 Residential real estate: Senior lien 2,101 9 7,597 9,707 668,955 678,662 Junior lien 245 79 731 1,055 90,700 91,755 Total residential real estate 2,346 88 8,328 10,762 759,655 770,417 Consumer 116 — 50 166 21,610 21,776 Total loans $ 6,350 $ 1,662 $ 21,748 $ 29,760 $ 4,385,646 $ 4,415,406 |
Credit Exposure for Loans as Determined by Company's Internal Risk Rating System | The amortized cost basis for all loans as determined by the Company’s internal risk rating system and year of origination was as follows at September 30, 2020: September 30, 2020 Revolving Revolving loans loans Origination year amortized converted 2020 2019 2018 2017 2016 Prior cost basis to term Total Commercial: Commercial and industrial: Pass $ 488,391 $ 231,994 $ 217,190 $ 98,442 $ 16,130 $ 19,820 $ 478,080 $ 2,290 $ 1,552,337 Special mention 871 1,327 5,849 5,018 6,098 824 4,073 1,019 25,079 Substandard 27 1,284 1,317 12,709 6 4,786 2,145 — 22,274 Doubtful — — — 403 — 674 24 — 1,101 Total commercial and industrial 489,289 234,605 224,356 116,572 22,234 26,104 484,322 3,309 1,600,791 Municipal and non-profit: Pass 116,484 95,749 133,050 158,834 132,527 246,993 4 — 883,641 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total municipal and non-profit 116,484 95,749 133,050 158,834 132,527 246,993 4 — 883,641 Owner occupied commercial real estate: Pass 67,503 114,301 95,751 54,320 33,105 103,895 1,396 53 470,324 Special mention 1,581 2,996 2,612 548 5,912 19,496 — — 33,145 Substandard — 2,342 6,231 255 102 4,016 — — 12,946 Doubtful — — — — — — — — — Total owner occupied commercial real estate 69,084 119,639 104,594 55,123 39,119 127,407 1,396 53 516,415 Food and agribusiness: Pass 21,695 9,417 31,671 7,366 9,874 28,770 105,873 167 214,833 Special mention — — — — — 370 — — 370 Substandard — — — 308 — 970 69 — 1,347 Doubtful — — — — — 1 8 — 9 Total food and agribusiness 21,695 9,417 31,671 7,674 9,874 30,111 105,950 167 216,559 Total commercial 696,552 459,410 493,671 338,203 203,754 430,615 591,672 3,529 3,217,406 Commercial real estate non-owner occupied: Construction: Pass 13,778 37,496 17,144 4,097 — — 4,563 — 77,078 Special mention 283 — — — — — — — 283 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total construction 14,061 37,496 17,144 4,097 — — 4,563 — 77,361 Acquisition/development: Pass 3,781 2,030 1,951 8,503 4,569 4,653 43 — 25,530 Special mention — — — 35 — 253 — — 288 Substandard — — — — — 193 — — 193 Doubtful — — — — — — — — — Total acquisition/development 3,781 2,030 1,951 8,538 4,569 5,099 43 — 26,011 Multifamily: Pass 21,492 13,743 138 7,273 19,516 5,380 — — 67,542 Special mention — — — — — 2,383 — — 2,383 Substandard — — — — — — — — — Doubtful — — — — — — — — — Total multifamily 21,492 13,743 138 7,273 19,516 7,763 — — 69,925 Non-owner occupied Pass 32,026 96,992 27,884 110,225 28,868 121,540 1,761 49 419,345 Special mention — — 5,912 9,869 3,966 3,698 100 — 23,545 Substandard — — 66 — — 834 — — 900 Doubtful — — — — — — — — — Total non-owner occupied 32,026 96,992 33,862 120,094 32,834 126,072 1,861 49 443,790 Total commercial real estate non-owner occupied 71,360 150,261 53,095 140,002 56,919 138,934 6,467 49 617,087 Residential real estate: Senior lien Pass 95,390 95,318 46,063 54,423 102,307 192,309 25,377 327 611,514 Special mention — — — — — 452 — — 452 Substandard 96 359 20 1,530 562 4,730 — — 7,297 September 30, 2020 Revolving Revolving loans loans Origination year amortized converted 2020 2019 2018 2017 2016 Prior cost basis to term Total Doubtful — — — — — — — — — Total senior lien 95,486 95,677 46,083 55,953 102,869 197,491 25,377 327 619,263 Junior lien Pass 3,731 4,767 3,387 1,963 1,433 4,397 60,327 508 80,513 Special mention — — — — — 21 347 — 368 Substandard — 114 103 196 57 313 — — 783 Doubtful — — — — — — — — — Total junior lien 3,731 4,881 3,490 2,159 1,490 4,731 60,674 508 81,664 Total residential real estate 99,217 100,558 49,573 58,112 104,359 202,222 86,051 835 700,927 Consumer Pass 9,195 4,529 2,086 636 422 732 3,030 24 20,654 Special mention — — — — — — — — — Substandard — 20 — — 19 8 — — 47 Doubtful — — — — — — — — — Total consumer 9,195 4,549 2,086 636 441 740 3,030 24 20,701 Total loans $ 876,324 $ 714,778 $ 598,425 $ 536,953 $ 365,473 $ 772,511 $ 687,220 $ 4,437 $ 4,556,121 |
Schedule of collateral dependent loans | The amortized cost basis of collateral-dependent loans over $250 thousand was as follows at September 30, 2020: September 30, 2020 Total amortized Real property Business assets cost basis Commercial Commercial and industrial $ 7,936 $ 4,441 $ 12,377 Owner-occupied commercial real estate 6,396 284 6,680 Food and agribusiness 372 86 458 Total Commercial 14,704 4,811 19,515 Commercial real estate non owner-occupied Acquisition/development 253 — 253 Multifamily 1,935 — 1,935 Non-owner occupied 556 — 556 Total commercial real estate 2,744 — 2,744 Residential real estate Senior lien 2,196 — 2,196 Total residential real estate 2,196 — 2,196 Total loans $ 19,644 $ 4,811 $ 24,455 |
Additional Information Related to Accruing TDR's | The tables below provide additional information related to accruing TDRs at September 30, 2020 and December 31, 2019: September 30, 2020 Amortized Average year-to-date Unpaid Unfunded commitments cost basis amortized cost basis principal balance to fund TDRs Commercial $ 14,903 $ 15,394 $ 15,527 $ 157 Commercial real estate non-owner occupied 5,076 4,938 7,001 — Residential real estate 1,807 1,851 2,630 12 Consumer — — — — Total $ 21,786 $ 22,183 $ 25,158 $ 169 December 31, 2019 Recorded Average year-to-date Unpaid Unfunded commitments investment recorded investment principal balance to fund TDRs Commercial $ 5,615 $ 5,788 $ 5,714 $ — Commercial real estate non-owner occupied 141 172 192 — Residential real estate 1,129 1,178 1,206 12 Consumer — — — — Total $ 6,885 $ 7,138 $ 7,112 $ 12 |
Summary of Company's Carrying Value of Non-Accrual TDR's | The following table summarizes the Company’s carrying value of non-accrual TDRs as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Commercial $ 1,590 $ 1,891 Commercial real estate non-owner occupied — 410 Residential real estate 3,069 2,553 Consumer — — Total non-accruing TDRs $ 4,659 $ 4,854 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Summary of Company's Allowance for Loan Losses ("ALL") and Recorded Investment in Loans | The tables below detail the Company’s allowance for credit losses as of the dates shown: Three months ended September 30, 2020 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 33,142 $ 12,314 $ 14,525 $ 484 $ 60,465 Charge-offs (499) — (16) (104) (619) Recoveries 104 — 4 25 133 Provision (1,576) 1,467 1,000 109 1,000 Ending balance $ 31,171 $ 13,781 $ 15,513 $ 514 $ 60,979 Nine months ended September 30, 2020 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 30,442 $ 4,850 $ 3,468 $ 304 $ 39,064 Cumulative effect adjustment (1) (1,299) 1,666 5,314 155 5,836 Charge-offs (1,411) — (56) (502) (1,969) Recoveries 370 — 24 121 515 Provision 3,069 7,265 6,763 436 17,533 Ending balance $ 31,171 $ 13,781 $ 15,513 $ 514 $ 60,979 (1) Related to the adoption of Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments Three months ended September 30, 2019 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 30,823 $ 5,067 $ 3,851 $ 341 $ 40,082 Charge-offs (6,760) (1) (77) (263) (7,101) Recoveries 2 — 3 34 39 Provision 5,730 (11) (214) 185 5,690 Ending balance $ 29,795 $ 5,055 $ 3,563 $ 297 $ 38,710 Nine months ended September 30, 2019 Non-owner occupied commercial Residential Commercial real estate real estate Consumer Total Beginning balance $ 27,137 $ 4,406 $ 3,800 $ 349 $ 35,692 Charge-offs (6,841) (1) (124) (696) (7,662) Recoveries 31 11 32 143 217 Provision 9,468 639 (145) 501 10,463 Ending balance $ 29,795 $ 5,055 $ 3,563 $ 297 $ 38,710 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Real Estate Owned | |
Summary of Activity in OREO Balances | A summary of the activity in OREO during the nine months ended September 30, 2020 and 2019 is as follows: For the nine months ended September 30, 2020 2019 Beginning balance $ 7,300 $ 10,596 Transfers from loan portfolio, at fair value 1,186 2,488 Impairments (423) (872) Sales (3,473) (4,308) Ending balance $ 4,590 $ 7,904 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of gross carrying amount of intangible assets and the associated accumulated amortization | The gross carrying amount of the core deposit intangibles and the associated accumulated amortization at September 30, 2020 and December 31, 2019, are presented as follows: September 30, 2020 December 31, 2019 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying amount amortization amount amount amortization amount Core deposit intangible $ 48,834 $ (40,990) $ 7,844 $ 48,834 $ (40,103) $ 8,731 |
Summary of changes in the mortgage servicing rights | Below are the changes in the MSRs for the periods presented: For the nine months ended September 30, 2020 2019 Beginning balance $ 2,630 $ 3,556 Originations 6,627 26 Impairment (847) (453) Amortization (1,237) (578) Ending balance 7,173 2,551 Fair value of mortgage servicing rights $ 7,653 $ 2,551 |
Core Deposits | |
Summary of estimated future amortization expense for the next five fiscal years | The following table shows the estimated future amortization expense for the core deposit intangibles as of September 30, 2020: Years ending December 31, Amount For the three months ending December 31, 2020 $ 296 For the year ending December 31, 2021 1,183 For the year ending December 31, 2022 1,127 For the year ending December 31, 2023 1,048 For the year ending December 31, 2024 1,048 |
Mortgage servicing rights | |
Summary of estimated future amortization expense for the next five fiscal years | The following table shows the estimated future amortization expense for the MSRs as of September 30, 2020: Years ending December 31, Amount For the three months ending December 31, 2020 $ 396 For the year ending December 31, 2021 1,507 For the year ending December 31, 2022 1,215 For the year ending December 31, 2023 980 For the year ending December 31, 2024 790 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Regulatory Capital | ||
Capital Ratio Requirements under Prompt Corrective Action or Other Regulatory Requirements | September 30, 2020 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 10.6% $ 673,622 N/A N/A 4.0% $ 254,180 NBH Bank 9.2% 586,217 5.0% $ 317,605 4.0% 254,084 Common equity tier 1 risk based capital: Consolidated 14.3% $ 673,622 N/A N/A 7.0% $ 330,905 NBH Bank 12.4% 586,217 6.5% $ 307,342 7.0% 330,984 Tier 1 risk based capital ratio: Consolidated 14.3% $ 673,622 N/A N/A 8.5% $ 401,813 NBH Bank 12.4% 586,217 8.0% $ 378,267 8.5% 401,909 Total risk based capital ratio: Consolidated 15.4% $ 728,166 N/A N/A 10.5% $ 496,358 NBH Bank 13.6% 640,760 10.0% $ 472,834 10.5% 496,476 | December 31, 2019 Required to be Required to be well capitalized under considered prompt corrective adequately Actual action provisions capitalized Ratio Amount Ratio Amount Ratio Amount Tier 1 leverage ratio: Consolidated 11.0% $ 640,440 N/A N/A 4.0% $ 231,950 NBH Bank 9.1% 528,028 5.0% $ 289,926 4.0% 231,940 Common equity tier 1 risk based capital: Consolidated 13.2% $ 640,440 N/A N/A 7.0% $ 405,912 NBH Bank 10.9% 528,028 6.5% $ 376,903 7.0% 405,896 Tier 1 risk based capital ratio: Consolidated 13.2% $ 640,440 N/A N/A 8.5% $ 412,620 NBH Bank 10.9% 528,028 8.0% $ 387,701 8.5% 411,932 Total risk based capital ratio: Consolidated 14.1% $ 682,645 N/A N/A 10.5% $ 509,707 NBH Bank 11.8% 570,233 10.0% $ 484,626 10.5% 508,857 |
Revenue from Contracts with C_2
Revenue from Contracts with Clients (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contracts with Clients | |
Summary of non-interest income segregated by revenue streams | The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, and non-interest expense in-scope of Topic 606 for the three and nine months ended September 30, 2020 and 2019: For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Non-interest income In-scope of Topic 606: Service charges and other fees $ 4,246 $ 5,112 $ 12,453 $ 14,822 Bank card fees 4,039 3,752 11,206 10,946 Non-interest income (in-scope of Topic 606) 8,285 8,864 23,659 25,768 Non-interest income (out-of-scope of Topic 606) 36,247 15,895 83,242 36,702 Total non-interest income $ 44,532 $ 24,759 $ 106,901 $ 62,470 Non-interest expense In-scope of Topic 606: Gain on OREO sales, net $ 119 $ 6,514 $ 25 $ 7,200 Total revenue in-scope of Topic 606 $ 8,404 $ 15,378 $ 23,684 $ 32,968 |
Stock-based Compensation and _2
Stock-based Compensation and Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-based Compensation and Benefits | |
Summary of outstanding stock options | The following table summarizes stock option activity for the nine months ended September 30, 2020: Weighted average Weighted remaining average contractual Aggregate exercise term in intrinsic Options price years value Outstanding at December 31, 2019 657,114 $ 26.69 6.41 $ 5,626 Granted 225,936 23.13 Exercised (63,558) 19.77 Forfeited (17,038) 29.00 Outstanding at September 30, 2020 802,454 26.18 7.01 2,474 Options exercisable at September 30, 2020 447,461 25.35 5.43 1,791 Options vested and expected to vest 764,282 26.17 6.90 2,390 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock and performance stock unit activity during the nine months ended September 30, 2020: Weighted Weighted Restricted average grant- Performance average grant- stock shares date fair value stock units date fair value Unvested at December 31, 2019 122,198 $ 34.19 158,874 $ 31.19 Granted 120,132 23.58 68,498 26.74 Net adjustment due to performance — — 17,852 33.22 Vested (53,995) 34.40 (53,540) 33.22 Forfeited (9,502) 29.94 (6,032) 29.37 Unvested at September 30, 2020 178,833 $ 27.22 185,652 $ 29.22 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Schedule of Computation of Basic and Diluted Income (Loss) Per Share | The following table illustrates the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2020 and 2019: For the three months ended For the nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net income $ 27,893 $ 21,642 $ 61,422 $ 60,846 Less: income allocated to participating securities (36) (25) (96) (69) Income allocated to common shareholders $ 27,857 $ 21,617 $ 61,326 $ 60,777 Weighted average shares outstanding for basic earnings per common share 30,756,116 31,281,970 30,881,325 31,133,982 Dilutive effect of equity awards 168,107 227,029 189,672 403,352 Weighted average shares outstanding for diluted earnings per common share 30,924,223 31,508,999 31,070,997 31,537,334 Basic earnings per share $ 0.91 $ 0.69 $ 1.99 $ 1.95 Diluted earnings per share 0.90 0.69 1.97 1.93 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivatives | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated statements of financial condition as of September 30, 2020 and December 31, 2019. Information about the valuation methods used to measure fair value is provided in note 16. Asset derivatives fair value Liability derivatives fair value Balance Sheet September 30, December 31, Balance Sheet September 30, December 31, location 2020 2019 Location 2020 2019 Derivatives designated as hedging instruments: Interest rate products Other assets $ — $ 1,171 Other liabilities $ 45,279 $ 13,537 Total derivatives designated as hedging instruments $ — $ 1,171 $ 45,279 $ 13,537 Derivatives not designated as hedging instruments: Interest rate products Other assets $ 21,287 $ 9,004 Other liabilities $ 21,371 $ 9,021 Interest rate lock commitments Other assets 11,769 1,499 Other liabilities 440 141 Forward contracts Other assets 191 16 Other liabilities 1,006 299 Total derivatives not designated as hedging instruments $ 33,247 $ 10,519 $ 22,817 $ 9,461 |
Derivative Instruments, Gain (Loss) | The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of operations for the three and nine months ended September 30, 2020 and 2019: Location of gain (loss) Amount of gain (loss) recognized in income on derivatives Derivatives in fair value recognized in income on For the three months ended September 30, For the nine months ended September 30, hedging relationships derivatives 2020 2019 2020 2019 Interest rate products Interest and fees on loans $ 5,043 $ 5,809 $ 1,310 $ (11,791) Total $ 5,043 $ 5,809 $ 1,310 $ (11,791) Location of gain (loss) Amount of (loss) gain recognized in income on hedged items recognized in income on For the three months ended September 30, For the nine months ended September 30, Hedged items hedged items 2020 2019 2020 2019 Interest rate products Interest and fees on loans $ (4,993) $ (3,313) $ (2,869) $ 11,604 Total $ (4,993) $ (3,313) $ (2,869) $ 11,604 Location of gain (loss) Amount of gain (loss) recognized in income on derivatives Derivatives not designated recognized in income on For the three months ended September 30, For the nine months ended September 30, as hedging instruments derivatives 2020 2019 2020 2019 Interest rate products Other non-interest expense $ 8 $ (198) $ (65) $ (761) Interest rate lock commitments Mortgage banking income 3,243 522 14,174 2,290 Forward contracts Mortgage banking income 1,558 348 (532) 49 Total $ 4,809 $ 672 $ 13,577 $ 1,578 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Schedule of Total Unfunded Commitments | Total unfunded commitments at September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Commitments to fund loans $ 280,496 $ 249,914 Unfunded commitments under lines of credit 557,464 600,407 Commercial and standby letters of credit 8,862 11,929 Total unfunded commitments $ 846,822 $ 862,250 |
Schedule of Repurchase Reserve | The following table summarizes mortgage repurchase reserve activity for the periods presented: For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Beginning balance $ 2,725 $ 2,633 $ 2,589 $ 3,286 Provision charged to (released from) operating expense, net 285 (111) 604 (639) Charge-offs (214) (24) (397) (149) Ending balance $ 2,796 $ 2,498 $ 2,796 $ 2,498 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Tables of Financial Instruments Measured At Fair Value on Recurring Basis | The tables below present the financial instruments measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 on the consolidated statements of financial condition utilizing the hierarchy structure described above: September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ — $ 92,892 $ — $ 92,892 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 476,650 — 476,650 Municipal securities — 394 — 394 Corporate debt — 2,003 — 2,003 Loans held for sale — 273,003 — 273,003 Interest rate swap derivatives — 21,287 — 21,287 Mortgage banking derivatives — — 11,960 11,960 Total assets at fair value $ — $ 866,229 $ 11,960 $ 878,189 Liabilities: Interest rate swap derivatives $ — $ 66,650 $ — $ 66,650 Mortgage banking derivatives — — 1,446 1,446 Total liabilities at fair value $ — $ 66,650 $ 1,446 $ 68,096 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: Mortgage-backed securities: Residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises $ — $ 95,256 $ — $ 95,256 Other residential MBS issued or guaranteed by U.S. Government agencies or sponsored enterprises — 542,037 — 542,037 Municipal securities — 372 — 372 Loans held for sale — 117,444 — 117,444 Interest rate swap derivatives — 10,175 — 10,175 Mortgage banking derivatives — — 1,515 1,515 Total assets at fair value $ — $ 765,284 $ 1,515 $ 766,799 Liabilities: Interest rate swap derivatives $ — $ 22,558 $ — $ 22,558 Mortgage banking derivatives — — 440 440 Total liabilities at fair value $ — $ 22,558 $ 440 $ 22,998 |
Table of Changes in Level 3 Financial Instruments | The table below details the changes in level 3 financial instruments during the nine months ended September 30, 2020: Mortgage banking derivatives, net Balance at December 31, 2019 $ 1,075 Gain included in earnings, net 13,642 Fees and costs included in earnings, net (4,203) Balance at September 30, 2020 $ 10,514 |
Table of assets recorded at fair value on a non-recurring basis | The tables below provide information regarding the assets recorded at fair value on a non-recurring basis during the nine months ended September 30, 2020 and 2019: September 30, 2020 Total Losses from fair value changes Individually evaluated loans $ 33,603 $ 1,969 Other real estate owned 4,590 423 Premises and equipment 8,024 1,631 Mortgage servicing rights 7,173 847 Total $ 53,390 $ 4,870 September 30, 2019 Total Losses from fair value changes Individually evaluated loans $ 37,002 $ 7,571 Other real estate owned 7,904 872 Premises and equipment 3,385 898 Mortgage servicing rights 2,879 453 Total $ 51,170 $ 9,794 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The fair value of financial instruments at September 30, 2020 and December 31, 2019 are set forth below: Level in fair value September 30, 2020 December 31, 2019 measurement Carrying Estimated Carrying Estimated hierarchy amount fair value amount fair value ASSETS Cash and cash equivalents Level 1 $ 445,103 $ 445,103 $ 110,190 $ 110,190 Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 92,892 92,892 95,256 95,256 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale Level 2 476,650 476,650 542,037 542,037 Municipal securities available-for-sale Level 2 394 394 372 372 Municipal securities available-for-sale Level 3 115 115 115 115 Corporate debt Level 2 2,003 2,003 — — Other available-for-sale securities Level 3 469 469 469 469 Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 250,790 255,032 127,560 128,770 Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity Level 2 69,211 69,688 55,324 54,971 Non-marketable securities Level 2 29,598 29,598 29,751 29,751 Loans receivable Level 3 4,556,121 4,723,757 4,415,406 4,481,209 Loans held for sale Level 2 273,003 273,003 117,444 117,444 Accrued interest receivable Level 2 22,852 22,852 19,157 19,157 Interest rate swap derivatives Level 2 21,287 21,287 10,175 10,175 Mortgage banking derivatives Level 3 11,960 11,960 1,515 1,515 LIABILITIES Deposit transaction accounts Level 2 4,589,394 4,589,394 3,678,979 3,678,979 Time deposits Level 2 1,027,066 1,036,192 1,058,153 1,058,354 Securities sold under agreements to repurchase Level 2 23,904 23,904 56,935 56,935 Federal Home Loan Bank advances Level 2 — — 207,675 207,890 Accrued interest payable Level 2 8,219 8,219 9,328 9,328 Interest rate swap derivatives Level 2 66,650 66,650 22,558 22,558 Mortgage banking derivatives Level 3 1,446 1,446 440 440 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2020loanitem | |
Basis of Presentation | |
Number of full service banking offices | item | 100 |
Number of primary loan segment | 4 |
Number of loan classes | 11 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 202,238 | $ 164,082 | |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in allowance for credit losses | $ 5,800 | ||
Increase in allowance for credit losses net of tax | 4,600 | ||
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment [Member] | Mortgage-Backed Securities (MBS) [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in allowance for credit losses | $ 0 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Investment securities total | $ 900,000 | $ 800,000 |
Amortized cost | 559,634 | 638,009 |
Available-for-sale securities | 572,523 | 638,249 |
Held-to-maturity securities | $ 320,001 | $ 182,884 |
Number of securities | security | 12 | 67 |
Fair value of available-for-sale securities in an unrealized loss position | $ 29,386 | $ 308,569 |
Pledged as collateral for line of credit at the Federal Home Loan Bank | 0 | 13,600 |
Fair value of collateral | $ 4,200 | $ 7,000 |
Mortgage-backed securities as percentage of available-for-sale investment portfolio | 100.00% | 100.00% |
Fair value of available-for-sale investment securities pledged as collateral | $ 401,600 | $ 352,300 |
Number of held-to-maturity securities in unrealized loss positions | security | 6 | 13 |
Fair value of held-to-maturity securities in an unrealized loss position | $ 59,053 | $ 43,295 |
Held-to-maturity investment securities pledged as collateral | 146,300 | 144,200 |
Held-to-maturity investment securities held as collateral | 0 | 4,000 |
Investment Securities Available-For-Sale [Member] | ||
Accrued interest receivable | 1,600 | 1,500 |
Held-to-maturity Securities [Member] | ||
Accrued interest receivable | 600 | 500 |
Municipal securities maturing within one to five years [Member] | ||
Amortized cost | 500 | |
Available-for-sale securities | 200 | |
Other Securities Investments with No Contractual Maturity [Member] | ||
Amortized cost | 500 | |
Other Securities [Member] | ||
Amortized cost | 469 | 469 |
Available-for-sale securities | $ 469 | $ 469 |
Investment Securities - Summary
Investment Securities - Summary of Available-for-Sale Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 559,634 | $ 638,009 |
Gross unrealized gains | 13,001 | 5,315 |
Gross unrealized losses | (112) | (5,075) |
Investment securities available-for-sale (at fair value) | 572,523 | 638,249 |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 90,022 | 93,770 |
Gross unrealized gains | 2,870 | 1,497 |
Gross unrealized losses | (11) | |
Investment securities available-for-sale (at fair value) | 92,892 | 95,256 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 466,648 | 543,275 |
Gross unrealized gains | 10,114 | 3,818 |
Gross unrealized losses | (112) | (5,056) |
Investment securities available-for-sale (at fair value) | 476,650 | 542,037 |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 495 | 495 |
Gross unrealized gains | 14 | |
Gross unrealized losses | (8) | |
Investment securities available-for-sale (at fair value) | 509 | 487 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 2,000 | |
Gross unrealized gains | 3 | |
Investment securities available-for-sale (at fair value) | 2,003 | |
Other Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 469 | 469 |
Investment securities available-for-sale (at fair value) | $ 469 | $ 469 |
Investment Securities - Summa_2
Investment Securities - Summary of Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | $ 26,992 | $ 52,396 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (90) | (288) |
12 months or more, Fair Value | 2,394 | 256,173 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (22) | (4,787) |
Total, Fair Value | 29,386 | 308,569 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (112) | (5,075) |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 10,413 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (7) | |
12 months or more, Fair Value | 1,421 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4) | |
Total, Fair Value | 11,834 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (11) | |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 26,992 | 41,983 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (90) | (281) |
12 months or more, Fair Value | 2,394 | 254,380 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (22) | (4,775) |
Total, Fair Value | 29,386 | 296,363 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (112) | (5,056) |
Municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 months or more, Fair Value | 372 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (8) | |
Total, Fair Value | 372 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (8) |
Investment Securities - Summa_3
Investment Securities - Summary of Held-to-maturity Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | $ 320,001 | $ 182,884 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 4,835 | 1,321 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (116) | (464) |
Fair value | 324,720 | 183,741 |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | 250,790 | 127,560 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 4,358 | 1,239 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (116) | (29) |
Fair value | 255,032 | 128,770 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held-to-maturity Securities | 69,211 | 55,324 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 477 | 82 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (435) | |
Fair value | $ 69,688 | $ 54,971 |
Investment Securities - Summa_4
Investment Securities - Summary of Held-to-Maturity Securities, Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 59,053 | $ 14,403 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (116) | (35) |
Fair Value, 12 months or more | 28,892 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (429) | |
Total Fair Value | 59,053 | 43,295 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (116) | (464) |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 59,053 | 10,478 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (116) | (26) |
Fair Value, 12 months or more | 338 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3) | |
Total Fair Value | 59,053 | 10,816 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (116) | (29) |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 3,925 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (9) | |
Fair Value, 12 months or more | 28,554 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (426) | |
Total Fair Value | 32,479 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (435) |
Loans - Loan Portfolio Composit
Loans - Loan Portfolio Composition Including Carrying Value by Segment of Loans Accounted for under ASC Topic 310-30 (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans [Line Items] | ||
Fees and cost related to loans | $ 22,300 | $ 21,900 |
Total Loans | $ 4,556,121 | $ 4,415,406 |
% of Total | 100.00% | 100.00% |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 3,217,406 | $ 2,992,307 |
% of Total | 70.60% | 67.80% |
Commercial Portfolio Segment [Member] | Paycheck Protection Program Loans [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 348,300 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 617,087 | $ 630,906 |
% of Total | 13.50% | 14.30% |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 700,927 | $ 770,417 |
% of Total | 15.40% | 17.40% |
Consumer Loan [Member] | ||
Loans [Line Items] | ||
Total Loans | $ 20,701 | $ 21,776 |
% of Total | 0.50% | 0.50% |
Loans - Loan Delinquency (Detai
Loans - Loan Delinquency (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loans [Line Items] | ||
Non- accrual loans | $ 18,882 | $ 21,748 |
Total past due and non-accrual | 25,630 | 29,760 |
Current | 4,530,491 | 4,385,646 |
Total | 4,556,121 | 4,415,406 |
Non-accrual loans with a related allowance | 10,676 | |
Non-accrual loans with no related allowance | 8,206 | |
Interest income recognized non-accrual | 0 | |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 11,485 | 12,911 |
Total past due and non-accrual | 14,772 | 17,683 |
Current | 3,202,634 | 2,974,624 |
Total | 3,217,406 | 2,992,307 |
Non-accrual loans with a related allowance | 5,475 | |
Non-accrual loans with no related allowance | 6,010 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 7,395 | 10,330 |
Total past due and non-accrual | 8,365 | 13,461 |
Current | 1,592,426 | 1,398,070 |
Total | 1,600,791 | 1,411,531 |
Non-accrual loans with a related allowance | 4,664 | |
Non-accrual loans with no related allowance | 2,731 | |
Commercial Portfolio Segment [Member] | Municipal [Member] | ||
Loans [Line Items] | ||
Total past due and non-accrual | 226 | |
Current | 883,641 | 837,300 |
Total | 883,641 | 837,526 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 3,539 | 2,264 |
Total past due and non-accrual | 5,384 | 3,489 |
Current | 511,031 | 486,633 |
Total | 516,415 | 490,122 |
Non-accrual loans with a related allowance | 633 | |
Non-accrual loans with no related allowance | 2,906 | |
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 551 | 317 |
Total past due and non-accrual | 1,023 | 507 |
Current | 215,536 | 252,621 |
Total | 216,559 | 253,128 |
Non-accrual loans with a related allowance | 178 | |
Non-accrual loans with no related allowance | 373 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 28 | 459 |
Total past due and non-accrual | 2,661 | 1,149 |
Current | 614,426 | 629,757 |
Total | 617,087 | 630,906 |
Non-accrual loans with a related allowance | 28 | |
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | ||
Loans [Line Items] | ||
Current | 77,361 | 77,733 |
Total | 77,361 | 77,733 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 8 | 416 |
Total past due and non-accrual | 8 | 603 |
Current | 26,003 | 26,276 |
Total | 26,011 | 26,879 |
Non-accrual loans with a related allowance | 8 | |
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | ||
Loans [Line Items] | ||
Current | 69,925 | 55,808 |
Total | 69,925 | 55,808 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 20 | 43 |
Total past due and non-accrual | 2,653 | 546 |
Current | 441,137 | 469,940 |
Total | 443,790 | 470,486 |
Non-accrual loans with a related allowance | 20 | |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 7,322 | 8,328 |
Total past due and non-accrual | 8,143 | 10,762 |
Current | 692,784 | 759,655 |
Total | 700,927 | 770,417 |
Non-accrual loans with a related allowance | 5,126 | |
Non-accrual loans with no related allowance | 2,196 | |
Residential Portfolio Segment [Member] | Senior lien | ||
Loans [Line Items] | ||
Non- accrual loans | 6,625 | 7,597 |
Total past due and non-accrual | 7,292 | 9,707 |
Current | 611,971 | 668,955 |
Total | 619,263 | 678,662 |
Non-accrual loans with a related allowance | 4,429 | |
Non-accrual loans with no related allowance | 2,196 | |
Residential Portfolio Segment [Member] | Junior lien | ||
Loans [Line Items] | ||
Non- accrual loans | 697 | 731 |
Total past due and non-accrual | 851 | 1,055 |
Current | 80,813 | 90,700 |
Total | 81,664 | 91,755 |
Non-accrual loans with a related allowance | 697 | |
Consumer Loan [Member] | ||
Loans [Line Items] | ||
Non- accrual loans | 47 | 50 |
Total past due and non-accrual | 54 | 166 |
Current | 20,647 | 21,610 |
Total | 20,701 | 21,776 |
Non-accrual loans with a related allowance | 47 | |
30-89 Days Past Due | ||
Loans [Line Items] | ||
Past due loans | 6,587 | 6,350 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Past due loans | 3,287 | 3,263 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Past due loans | 970 | 2,252 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Municipal [Member] | ||
Loans [Line Items] | ||
Past due loans | 226 | |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Past due loans | 1,845 | 595 |
30-89 Days Past Due | Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | ||
Loans [Line Items] | ||
Past due loans | 472 | 190 |
30-89 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Past due loans | 2,633 | 625 |
30-89 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | ||
Loans [Line Items] | ||
Past due loans | 187 | |
30-89 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Past due loans | 2,633 | 438 |
30-89 Days Past Due | Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Past due loans | 660 | 2,346 |
30-89 Days Past Due | Residential Portfolio Segment [Member] | Senior lien | ||
Loans [Line Items] | ||
Past due loans | 506 | 2,101 |
30-89 Days Past Due | Residential Portfolio Segment [Member] | Junior lien | ||
Loans [Line Items] | ||
Past due loans | 154 | 245 |
30-89 Days Past Due | Consumer Loan [Member] | ||
Loans [Line Items] | ||
Past due loans | 7 | 116 |
Greater than 90 Days Past Due | ||
Loans [Line Items] | ||
Past due loans | 161 | 1,662 |
Greater than 90 Days Past Due | Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Past due loans | 1,509 | |
Greater than 90 Days Past Due | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Loans [Line Items] | ||
Past due loans | 879 | |
Greater than 90 Days Past Due | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Past due loans | 630 | |
Greater than 90 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Past due loans | 65 | |
Greater than 90 Days Past Due | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | ||
Loans [Line Items] | ||
Past due loans | 65 | |
Greater than 90 Days Past Due | Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Past due loans | 161 | 88 |
Greater than 90 Days Past Due | Residential Portfolio Segment [Member] | Senior lien | ||
Loans [Line Items] | ||
Past due loans | $ 161 | 9 |
Greater than 90 Days Past Due | Residential Portfolio Segment [Member] | Junior lien | ||
Loans [Line Items] | ||
Past due loans | $ 79 |
Loans - Carrying Value of Loan
Loans - Carrying Value of Loan Portfolio by Segment and Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | $ 876,324 | ||||
2019 | $ 714,778 | ||||
2018 | $ 598,425 | ||||
2017 | $ 536,953 | ||||
2016 | $ 365,473 | ||||
Prior | 772,511 | ||||
Revolving Loans Amortized Cost Basis | 687,220 | ||||
Revolving Loans Converted to Term | 4,437 | ||||
Total | 4,556,121 | 4,415,406 | |||
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 696,552 | ||||
2019 | 459,410 | ||||
2018 | 493,671 | ||||
2017 | 338,203 | ||||
2016 | 203,754 | ||||
Prior | 430,615 | ||||
Revolving Loans Amortized Cost Basis | 591,672 | ||||
Revolving Loans Converted to Term | 3,529 | ||||
Total | 3,217,406 | 2,992,307 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 489,289 | ||||
2019 | 234,605 | ||||
2018 | 224,356 | ||||
2017 | 116,572 | ||||
2016 | 22,234 | ||||
Prior | 26,104 | ||||
Revolving Loans Amortized Cost Basis | 484,322 | ||||
Revolving Loans Converted to Term | 3,309 | ||||
Total | 1,600,791 | 1,411,531 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 488,391 | ||||
2019 | 231,994 | ||||
2018 | 217,190 | ||||
2017 | 98,442 | ||||
2016 | 16,130 | ||||
Prior | 19,820 | ||||
Revolving Loans Amortized Cost Basis | 478,080 | ||||
Revolving Loans Converted to Term | 2,290 | ||||
Total | 1,552,337 | ||||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 871 | ||||
2019 | 1,327 | ||||
2018 | 5,849 | ||||
2017 | 5,018 | ||||
2016 | 6,098 | ||||
Prior | 824 | ||||
Revolving Loans Amortized Cost Basis | 4,073 | ||||
Revolving Loans Converted to Term | 1,019 | ||||
Total | 25,079 | ||||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 27 | ||||
2019 | 1,284 | ||||
2018 | 1,317 | ||||
2017 | 12,709 | ||||
2016 | 6 | ||||
Prior | 4,786 | ||||
Revolving Loans Amortized Cost Basis | 2,145 | ||||
Total | 22,274 | ||||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Doubtful [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2017 | 403 | ||||
Prior | 674 | ||||
Revolving Loans Amortized Cost Basis | 24 | ||||
Total | 1,101 | ||||
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 69,084 | ||||
2019 | 119,639 | ||||
2018 | 104,594 | ||||
2017 | 55,123 | ||||
2016 | 39,119 | ||||
Prior | 127,407 | ||||
Revolving Loans Amortized Cost Basis | 1,396 | ||||
Revolving Loans Converted to Term | 53 | ||||
Total | 516,415 | 490,122 | |||
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 67,503 | ||||
2019 | 114,301 | ||||
2018 | 95,751 | ||||
2017 | 54,320 | ||||
2016 | 33,105 | ||||
Prior | 103,895 | ||||
Revolving Loans Amortized Cost Basis | 1,396 | ||||
Revolving Loans Converted to Term | 53 | ||||
Total | 470,324 | ||||
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 1,581 | ||||
2019 | 2,996 | ||||
2018 | 2,612 | ||||
2017 | 548 | ||||
2016 | 5,912 | ||||
Prior | 19,496 | ||||
Total | 33,145 | ||||
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2019 | 2,342 | ||||
2018 | 6,231 | ||||
2017 | 255 | ||||
2016 | 102 | ||||
Prior | 4,016 | ||||
Total | 12,946 | ||||
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 21,695 | ||||
2019 | 9,417 | ||||
2018 | 31,671 | ||||
2017 | 7,674 | ||||
2016 | 9,874 | ||||
Prior | 30,111 | ||||
Revolving Loans Amortized Cost Basis | 105,950 | ||||
Revolving Loans Converted to Term | 167 | ||||
Total | 216,559 | 253,128 | |||
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 21,695 | ||||
2019 | 9,417 | ||||
2018 | 31,671 | ||||
2017 | 7,366 | ||||
2016 | 9,874 | ||||
Prior | 28,770 | ||||
Revolving Loans Amortized Cost Basis | 105,873 | ||||
Revolving Loans Converted to Term | 167 | ||||
Total | 214,833 | ||||
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Prior | 370 | ||||
Total | 370 | ||||
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2017 | 308 | ||||
Prior | 970 | ||||
Revolving Loans Amortized Cost Basis | 69 | ||||
Total | 1,347 | ||||
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | Doubtful [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Prior | 1 | ||||
Revolving Loans Amortized Cost Basis | 8 | ||||
Total | 9 | ||||
Commercial Portfolio Segment [Member] | Municipal [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 116,484 | ||||
2019 | 95,749 | ||||
2018 | 133,050 | ||||
2017 | 158,834 | ||||
2016 | 132,527 | ||||
Prior | 246,993 | ||||
Revolving Loans Amortized Cost Basis | 4 | ||||
Total | 883,641 | 837,526 | |||
Commercial Portfolio Segment [Member] | Municipal [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 116,484 | ||||
2019 | 95,749 | ||||
2018 | 133,050 | ||||
2017 | 158,834 | ||||
2016 | 132,527 | ||||
Prior | 246,993 | ||||
Revolving Loans Amortized Cost Basis | 4 | ||||
Total | 883,641 | ||||
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 71,360 | ||||
2019 | 150,261 | ||||
2018 | 53,095 | ||||
2017 | 140,002 | ||||
2016 | 56,919 | ||||
Prior | 138,934 | ||||
Revolving Loans Amortized Cost Basis | 6,467 | ||||
Revolving Loans Converted to Term | 49 | ||||
Total | 617,087 | 630,906 | |||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 14,061 | ||||
2019 | 37,496 | ||||
2018 | 17,144 | ||||
2017 | 4,097 | ||||
Revolving Loans Amortized Cost Basis | 4,563 | ||||
Total | 77,361 | 77,733 | |||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 13,778 | ||||
2019 | 37,496 | ||||
2018 | 17,144 | ||||
2017 | 4,097 | ||||
Revolving Loans Amortized Cost Basis | 4,563 | ||||
Total | 77,078 | ||||
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 283 | ||||
Total | 283 | ||||
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 3,781 | ||||
2019 | 2,030 | ||||
2018 | 1,951 | ||||
2017 | 8,538 | ||||
2016 | 4,569 | ||||
Prior | 5,099 | ||||
Revolving Loans Amortized Cost Basis | 43 | ||||
Total | 26,011 | 26,879 | |||
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 3,781 | ||||
2019 | 2,030 | ||||
2018 | 1,951 | ||||
2017 | 8,503 | ||||
2016 | 4,569 | ||||
Prior | 4,653 | ||||
Revolving Loans Amortized Cost Basis | 43 | ||||
Total | 25,530 | ||||
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2017 | 35 | ||||
Prior | 253 | ||||
Total | 288 | ||||
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Prior | 193 | ||||
Total | 193 | ||||
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 21,492 | ||||
2019 | 13,743 | ||||
2018 | 138 | ||||
2017 | 7,273 | ||||
2016 | 19,516 | ||||
Prior | 7,763 | ||||
Total | 69,925 | 55,808 | |||
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 21,492 | ||||
2019 | 13,743 | ||||
2018 | 138 | ||||
2017 | 7,273 | ||||
2016 | 19,516 | ||||
Prior | 5,380 | ||||
Total | 67,542 | ||||
Commercial Real Estate Portfolio Segment [Member] | Multifamily [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Prior | 2,383 | ||||
Total | 2,383 | ||||
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 32,026 | ||||
2019 | 96,992 | ||||
2018 | 33,862 | ||||
2017 | 120,094 | ||||
2016 | 32,834 | ||||
Prior | 126,072 | ||||
Revolving Loans Amortized Cost Basis | 1,861 | ||||
Revolving Loans Converted to Term | 49 | ||||
Total | 443,790 | 470,486 | |||
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 32,026 | ||||
2019 | 96,992 | ||||
2018 | 27,884 | ||||
2017 | 110,225 | ||||
2016 | 28,868 | ||||
Prior | 121,540 | ||||
Revolving Loans Amortized Cost Basis | 1,761 | ||||
Revolving Loans Converted to Term | 49 | ||||
Total | 419,345 | ||||
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2018 | 5,912 | ||||
2017 | 9,869 | ||||
2016 | 3,966 | ||||
Prior | 3,698 | ||||
Revolving Loans Amortized Cost Basis | 100 | ||||
Total | 23,545 | ||||
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2018 | 66 | ||||
Prior | 834 | ||||
Total | 900 | ||||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 99,217 | ||||
2019 | 100,558 | ||||
2018 | 49,573 | ||||
2017 | 58,112 | ||||
2016 | 104,359 | ||||
Prior | 202,222 | ||||
Revolving Loans Amortized Cost Basis | 86,051 | ||||
Revolving Loans Converted to Term | 835 | ||||
Total | 700,927 | 770,417 | |||
Residential Portfolio Segment [Member] | Senior lien | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 95,486 | ||||
2019 | 95,677 | ||||
2018 | 46,083 | ||||
2017 | 55,953 | ||||
2016 | 102,869 | ||||
Prior | 197,491 | ||||
Revolving Loans Amortized Cost Basis | 25,377 | ||||
Revolving Loans Converted to Term | 327 | ||||
Total | 619,263 | 678,662 | |||
Residential Portfolio Segment [Member] | Senior lien | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 95,390 | ||||
2019 | 95,318 | ||||
2018 | 46,063 | ||||
2017 | 54,423 | ||||
2016 | 102,307 | ||||
Prior | 192,309 | ||||
Revolving Loans Amortized Cost Basis | 25,377 | ||||
Revolving Loans Converted to Term | 327 | ||||
Total | 611,514 | ||||
Residential Portfolio Segment [Member] | Senior lien | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Prior | 452 | ||||
Total | 452 | ||||
Residential Portfolio Segment [Member] | Senior lien | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 96 | ||||
2019 | 359 | ||||
2018 | 20 | ||||
2017 | 1,530 | ||||
2016 | 562 | ||||
Prior | 4,730 | ||||
Total | 7,297 | ||||
Residential Portfolio Segment [Member] | Junior lien | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 3,731 | ||||
2019 | 4,881 | ||||
2018 | 3,490 | ||||
2017 | 2,159 | ||||
2016 | 1,490 | ||||
Prior | 4,731 | ||||
Revolving Loans Amortized Cost Basis | 60,674 | ||||
Revolving Loans Converted to Term | 508 | ||||
Total | 81,664 | 91,755 | |||
Residential Portfolio Segment [Member] | Junior lien | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 3,731 | ||||
2019 | 4,767 | ||||
2018 | 3,387 | ||||
2017 | 1,963 | ||||
2016 | 1,433 | ||||
Prior | 4,397 | ||||
Revolving Loans Amortized Cost Basis | 60,327 | ||||
Revolving Loans Converted to Term | 508 | ||||
Total | 80,513 | ||||
Residential Portfolio Segment [Member] | Junior lien | Special Mention [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Prior | 21 | ||||
Revolving Loans Amortized Cost Basis | 347 | ||||
Total | 368 | ||||
Residential Portfolio Segment [Member] | Junior lien | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2019 | 114 | ||||
2018 | 103 | ||||
2017 | 196 | ||||
2016 | 57 | ||||
Prior | 313 | ||||
Total | 783 | ||||
Consumer Loan [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 9,195 | ||||
2019 | 4,549 | ||||
2018 | 2,086 | ||||
2017 | 636 | ||||
2016 | 441 | ||||
Prior | 740 | ||||
Revolving Loans Amortized Cost Basis | 3,030 | ||||
Revolving Loans Converted to Term | 24 | ||||
Total | 20,701 | 21,776 | |||
Consumer Loan [Member] | Pass [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2020 | 9,195 | ||||
2019 | 4,529 | ||||
2018 | $ 2,086 | ||||
2017 | $ 636 | ||||
2016 | 422 | ||||
Prior | 732 | ||||
Revolving Loans Amortized Cost Basis | 3,030 | ||||
Revolving Loans Converted to Term | 24 | ||||
Total | 20,654 | ||||
Consumer Loan [Member] | Substandard [Member] | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
2019 | $ 20 | ||||
2016 | $ 19 | ||||
Prior | 8 | ||||
Total | $ 47 |
Loans - Impaired Loans - Averag
Loans - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Receivables [Abstract] | |
Impaired Financing Receivable, Interest Income, Cash Basis Method | $ 0 |
Loans - Collateral Dependent Lo
Loans - Collateral Dependent Loans (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | $ 24,455 |
Management evaluated loan with amortized cost basis | 250 |
Commercial Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 19,515 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 12,377 |
Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 6,680 |
Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 458 |
Commercial Real Estate Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 2,744 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 253 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Multifamily [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 1,935 |
Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 556 |
Residential Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 2,196 |
Residential Portfolio Segment [Member] | Senior lien | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 2,196 |
Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 19,644 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 14,704 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 7,936 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 6,396 |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 372 |
Real Estate [Member] | Commercial Real Estate Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 2,744 |
Real Estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Acquisition/Development [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 253 |
Real Estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Multifamily [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 1,935 |
Real Estate [Member] | Commercial Real Estate Portfolio Segment [Member] | Non Owner-Occupied [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 556 |
Real Estate [Member] | Residential Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 2,196 |
Real Estate [Member] | Residential Portfolio Segment [Member] | Senior lien | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 2,196 |
Equipment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 4,811 |
Equipment [Member] | Commercial Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 4,811 |
Equipment [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 4,441 |
Equipment [Member] | Commercial Portfolio Segment [Member] | Owner-Occupied [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | 284 |
Equipment [Member] | Commercial Portfolio Segment [Member] | Food and Agriculture [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Amortized Cost Basis | $ 86 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructuring and Loans Accounted for Under ASC Topic 310-30 Narratives (Details) | 3 Months Ended | 9 Months Ended | 21 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)itemloan | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Loans receivable | $ 4,495,142,000 | $ 4,495,142,000 | $ 4,495,142,000 | $ 4,376,342,000 |
TDR's modified within the past year that defaulted on their restructured terms | loan | 0 | |||
ASC 310-30 | ||||
Debt Instrument [Line Items] | ||||
Amortized cost basis of restructed loans | $ 4,400,000 | |||
COVID-19 | ||||
Debt Instrument [Line Items] | ||||
Number of restructured loans not identified as TDRs | 20 | 483 | ||
Loans modified and not identified as TDRs | $ 7,100,000 | $ 499,500,000 | ||
Loan modifications and not identified as TDRs, resumed payment of principal and interest | 334,300,000 | 334,300,000 | $ 334,300,000 | |
Loans receivable | $ 165,200,000 | $ 165,200,000 | $ 165,200,000 | |
Outstanding Notes Receivable Balance Granted Relief (As a Percent) | 3.60% | 3.60% | 3.60% | |
Financing Receivable Not Identified As Troubled Debt Restructuring, Percent | 11.60% | |||
Financing Receibable Second Modifications Percent | 84.00% | 84.00% | 84.00% | |
COVID-19 | Contractual Interest Rate Reduction [Member] | ||||
Debt Instrument [Line Items] | ||||
Loans modified and not identified as TDRs | $ 155,100,000 | |||
COVID-19 | Payment Deferral [Member] | ||||
Debt Instrument [Line Items] | ||||
Loans modified and not identified as TDRs | $ 10,100,000 | |||
Troubled Debt Restructurings [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of restructured loans | 7 | 21 | ||
Amortized cost basis of restructed loans | $ 800,000 | $ 18,600,000 |
Loans - Additional Information
Loans - Additional Information Related to Accruing TDR's (Details) - Accruing TDR [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Loans [Line Items] | ||
Recorded Investment | $ 21,786 | $ 6,885 |
Average year-to- date recorded investment | 22,183 | 7,138 |
Unpaid principal balance | 25,158 | 7,112 |
Unfunded commitments to fund TDRs | 169 | 12 |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Recorded Investment | 14,903 | 5,615 |
Average year-to- date recorded investment | 15,394 | 5,788 |
Unpaid principal balance | 15,527 | 5,714 |
Unfunded commitments to fund TDRs | 157 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Recorded Investment | 5,076 | 141 |
Average year-to- date recorded investment | 4,938 | 172 |
Unpaid principal balance | 7,001 | 192 |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Recorded Investment | 1,807 | 1,129 |
Average year-to- date recorded investment | 1,851 | 1,178 |
Unpaid principal balance | 2,630 | 1,206 |
Unfunded commitments to fund TDRs | $ 12 | $ 12 |
Loans - Summary of Company's Ca
Loans - Summary of Company's Carrying Value of Non-Accrual TDR's (Details) - Non-Accruing TDR [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | $ 4,659 | $ 4,854 |
Commercial Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | 1,590 | 1,891 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | 410 | |
Residential Portfolio Segment [Member] | ||
Loans [Line Items] | ||
Carrying Value of Non - Accruing TDR's | $ 3,069 | $ 2,553 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Company's Allowance for Loan Losses ("All") and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Beginning balance | $ 60,465 | $ 39,064 | $ 35,692 | ||||
Charge-offs | (619) | $ (7,101) | (1,969) | (7,662) | |||
Recoveries | 133 | 39 | 515 | 217 | |||
Provision | 1,000 | 5,690 | 17,533 | 10,463 | |||
Ending balance | 60,979 | 38,710 | 60,979 | 38,710 | |||
Total Loans | $ 4,556,121 | $ 4,415,406 | |||||
Collective related allowance for loan losses for impaired loans | 60,465 | 38,710 | 39,064 | 38,710 | 60,979 | 39,064 | $ 40,082 |
Total Loans | 4,556,121 | 4,415,406 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Ending balance | 5,836 | 5,836 | |||||
Collective related allowance for loan losses for impaired loans | 5,836 | 5,836 | 5,836 | ||||
Commercial Portfolio Segment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Beginning balance | 33,142 | 30,442 | 27,137 | ||||
Charge-offs | (499) | (6,760) | (1,411) | (6,841) | |||
Recoveries | 104 | 2 | 370 | 31 | |||
Provision | (1,576) | 5,730 | 3,069 | 9,468 | |||
Ending balance | 31,171 | 29,795 | 31,171 | 29,795 | |||
Total Loans | 3,217,406 | 2,992,307 | |||||
Collective related allowance for loan losses for impaired loans | 31,171 | 29,795 | 31,171 | 29,795 | 31,171 | 30,442 | 30,823 |
Total Loans | 3,217,406 | 2,992,307 | |||||
Commercial Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Ending balance | (1,299) | (1,299) | |||||
Collective related allowance for loan losses for impaired loans | (1,299) | (1,299) | (1,299) | ||||
Commercial Real Estate Portfolio Segment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Beginning balance | 12,314 | 4,850 | 4,406 | ||||
Charge-offs | (1) | (1) | |||||
Recoveries | 11 | ||||||
Provision | 1,467 | (11) | 7,265 | 639 | |||
Ending balance | 13,781 | 5,055 | 13,781 | 5,055 | |||
Total Loans | 617,087 | 630,906 | |||||
Collective related allowance for loan losses for impaired loans | 13,781 | 5,055 | 4,850 | 5,055 | 13,781 | 4,850 | 5,067 |
Total Loans | 617,087 | 630,906 | |||||
Commercial Real Estate Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Ending balance | 1,666 | 1,666 | |||||
Collective related allowance for loan losses for impaired loans | 1,666 | 1,666 | 1,666 | ||||
Residential Portfolio Segment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Beginning balance | 14,525 | 3,468 | 3,800 | ||||
Charge-offs | (16) | (77) | (56) | (124) | |||
Recoveries | 4 | 3 | 24 | 32 | |||
Provision | 1,000 | (214) | 6,763 | (145) | |||
Ending balance | 15,513 | 3,563 | 15,513 | 3,563 | |||
Total Loans | 700,927 | 770,417 | |||||
Collective related allowance for loan losses for impaired loans | 15,513 | 3,563 | 3,468 | 3,563 | 15,513 | 3,468 | 3,851 |
Total Loans | 700,927 | 770,417 | |||||
Residential Portfolio Segment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Ending balance | 5,314 | 5,314 | |||||
Collective related allowance for loan losses for impaired loans | 5,314 | 5,314 | 5,314 | ||||
Consumer Loan [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Beginning balance | 484 | 304 | 349 | ||||
Charge-offs | (104) | (263) | (502) | (696) | |||
Recoveries | 25 | 34 | 121 | 143 | |||
Provision | 109 | 185 | 436 | 501 | |||
Ending balance | 514 | 297 | 514 | 297 | |||
Total Loans | 20,701 | 21,776 | |||||
Collective related allowance for loan losses for impaired loans | 514 | $ 297 | 514 | $ 297 | 514 | 304 | $ 341 |
Total Loans | 20,701 | 21,776 | |||||
Consumer Loan [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Ending balance | 155 | 155 | |||||
Collective related allowance for loan losses for impaired loans | $ 155 | $ 155 | 155 | ||||
Non Owner-Occupied [Member] | Commercial Real Estate Portfolio Segment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Total Loans | 443,790 | 470,486 | |||||
Total Loans | 443,790 | 470,486 | |||||
Food and Agriculture [Member] | Commercial Portfolio Segment [Member] | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Total Loans | 216,559 | 253,128 | |||||
Total Loans | $ 216,559 | $ 253,128 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Credit Loss [Abstract] | |||||
Charge-offs, net | $ 0.5 | $ 5.7 | $ 1.5 | $ 10.5 | |
Accrued interest receivable | $ 20.6 | $ 20.6 | $ 17.2 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Activity in OREO Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Other Real Estate [Roll Forward] | ||
Beginning balance | $ 4,590 | $ 7,904 |
Transfers from loan portfolio, at fair value | 1,186 | 2,488 |
Impairments | (423) | (872) |
Sales | (3,473) | (4,308) |
Ending balance | $ 7,300 | $ 10,596 |
Other Real Estate Owned - Narra
Other Real Estate Owned - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Real Estate Owned | ||||
OREO sales | $ 3,473,000 | $ 4,308,000 | ||
OREO Sold NBV | $ 3,500,000 | $ 4,300,000 | 3,500,000 | 4,300,000 |
Gain (loss) on OREO sales, net | $ 119,000 | $ 6,514,000 | $ 25,000 | $ 7,200,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Goodwill and Intangible Assets | |||||
Goodwill acquired | $ 115,027,000 | $ 115,027,000 | $ 115,027,000 | ||
Goodwill Impairment | 0 | $ 0 | |||
Amortization of acquired identifiable intangibles | 295,000 | $ 295,000 | 887,000 | $ 887,000 | |
Mortgage loans serviced | 985,300,000 | 334,500,000 | |||
Mortgage service fees | 500,000 | 200,000 | 1,000,000 | 700,000 | |
Core Deposits | |||||
Goodwill and Intangible Assets | |||||
Amortization of acquired identifiable intangibles | $ 300,000 | $ 300,000 | $ 900,000 | 900,000 | |
Core Deposits | Minimum | |||||
Goodwill and Intangible Assets | |||||
Amortization period | 7 years | ||||
Core Deposits | Maximum | |||||
Goodwill and Intangible Assets | |||||
Amortization period | 10 years | ||||
Mortgage servicing rights | |||||
Goodwill and Intangible Assets | |||||
Amortization of acquired identifiable intangibles | $ 1,237,000 | $ 578,000 | |||
Mortgage servicing rights | Measurement Input, Discount Rate [Member] | Minimum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.095 | 0.095 | 0.095 | 0.095 | |
Mortgage servicing rights | Measurement Input, Discount Rate [Member] | Maximum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.105 | 0.105 | 0.105 | 0.105 | |
Mortgage servicing rights | Measurement Input, Constant Prepayment Rate [Member] | Minimum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.180 | 0.179 | 0.180 | 0.179 | |
Mortgage servicing rights | Measurement Input, Constant Prepayment Rate [Member] | Maximum | |||||
Goodwill and Intangible Assets | |||||
Servicing assets measurement input (as a percent) | 0.218 | 0.267 | 0.218 | 0.267 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Carrying Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Core Deposits | ||||
Carrying amount of intangible assets | ||||
Gross carrying amount | $ 48,834 | $ 48,834 | ||
Accumulated amortization | 40,990 | 40,103 | ||
Net carrying amount | 7,844 | 8,731 | ||
Mortgage servicing rights | ||||
Carrying amount of intangible assets | ||||
Net carrying amount | $ 7,173 | $ 2,630 | $ 2,551 | $ 3,556 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Estimated Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Core Deposits | |
Estimated future amortization expense | |
For the remainder of December 31, 2020 | $ 296 |
For the years ending December 31, 2021 | 1,183 |
For the years ending December 31, 2022 | 1,127 |
For the years ending December 31, 2023 | 1,048 |
For the years ending December 31, 2024 | 1,048 |
Mortgage servicing rights | |
Estimated future amortization expense | |
For the remainder of December 31, 2020 | 396 |
For the years ending December 31, 2021 | 1,507 |
For the years ending December 31, 2022 | 1,215 |
For the years ending December 31, 2023 | 980 |
For the years ending December 31, 2024 | $ 790 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in the mortgage servicing rights | ||||
Amortization | $ (295) | $ (295) | $ (887) | $ (887) |
Mortgage servicing rights | ||||
Changes in the mortgage servicing rights | ||||
Beginning balance | 2,630 | 3,556 | ||
Originations | 6,627 | 26 | ||
Impairment | (847) | (453) | ||
Amortization | (1,237) | (578) | ||
Ending balance | 7,173 | 2,551 | 7,173 | 2,551 |
Fair value of mortgage servicing rights | $ 7,653 | $ 2,551 | $ 7,653 | $ 2,551 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Amount of repurchase agreements | $ 23.9 | $ 23.9 | $ 56.9 | ||
Fair value of collateral | 4.2 | 4.2 | 7 | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 1,000 | 1,000 | |||
Loans pledged | 1,300 | 1,300 | 1,500 | ||
Interest expense related to FHLB advances | 0.1 | $ 1.4 | 1.3 | $ 4.8 | |
Line of credit | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
FHLB advances | $ 0 | $ 0 | 192.7 | ||
Term financing | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Due Date, Last | 2020 | 2020 | |||
FHLB advances | $ 15 | $ 15 | |||
Interest rate range of FHLB advances | 2.33% | 2.33% | |||
Federal Home Loan Bank of Des Moines [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Fair value of collateral | $ 0 | $ 0 | 17.6 | ||
U.S. Treasury Securities [Member] | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Fair value of collateral | $ 28.8 | $ 28.8 | $ 65.6 |
Regulatory Capital - Capital Ra
Regulatory Capital - Capital Ratio Requirements under Prompt Corrective Action or Other Regulatory Requirements (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 2.50% | |
Parent Company [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio | 10.6 | 11 |
Common equity risk-based ratio | 14.3 | 13.2 |
Risk-based capital Ratio | 14.3 | 13.2 |
Total risk-based capital Ratio | 15.4 | 14.1 |
Leverage Amount | $ 673,622 | $ 640,440 |
Common equity risk-based amount | 673,622 | 640,440 |
Risk-based capital amount | 673,622 | 640,440 |
Total risk-based capital Amount | $ 728,166 | $ 682,645 |
Required to be considered adequately capitalized Ratio, leverage ratio | 4 | 4 |
Required to be considered adequately capitalized Ratio, risk-based common equity capital ratio | 7.00% | 7.00% |
Required to be considered adequately capitalized Ratio, risk-based capital ratio | 8.5 | 8.5 |
Required to be considered adequately capitalized Ratio, Total risk-based capital ratio | 10.5 | 10.5 |
Required to be considered adequately capitalized leverage Amount | $ 254,180 | $ 231,950 |
Required to be considered adequately capitalized common equity capital amount | 330,905 | 405,912 |
Required to be considered adequately capitalized risk-based capital Amount | 401,813 | 412,620 |
Required to be considered adequately capitalized Total risk-based capital Amount | $ 496,358 | $ 509,707 |
NBH Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio | 9.2 | 9.1 |
Common equity risk-based ratio | 12.4 | 10.9 |
Risk-based capital Ratio | 12.4 | 10.9 |
Total risk-based capital Ratio | 13.6 | 11.8 |
Leverage Amount | $ 586,217 | $ 528,028 |
Common equity risk-based amount | 586,217 | 528,028 |
Risk-based capital amount | 586,217 | 528,028 |
Total risk-based capital Amount | $ 640,760 | $ 570,233 |
Required to be considered well capitalized Ratio, leverage ratio | 5 | 5 |
Required to be considered adequately capitalized Ratio, risk-based common equity capital ratio | 6.50% | 6.50% |
Required to be considered well capitalized Ratio, risk-based capital ratio | 8 | 8 |
Required to be considered well capitalized Ratio, Total risk-based capital ratio | 10 | 10 |
Required to be considered well capitalized leverage Amount | $ 317,605 | $ 289,926 |
Required to be considered well capitalized common equity capital amount | 307,342 | 376,903 |
Required to be considered well capitalized risk-based capital Amount | 378,267 | 387,701 |
Required to be considered well capitalized Total risk-based capital Amount | $ 472,834 | $ 484,626 |
Required to be considered adequately capitalized Ratio, leverage ratio | 4 | 4 |
Required to be considered adequately capitalized Ratio, risk-based common equity capital ratio | 7.00% | 7.00% |
Required to be considered adequately capitalized Ratio, risk-based capital ratio | 8.5 | 8.5 |
Required to be considered adequately capitalized Ratio, Total risk-based capital ratio | 10.5 | 10.5 |
Required to be considered adequately capitalized leverage Amount | $ 254,084 | $ 231,940 |
Required to be considered adequately capitalized common equity capital amount | 330,984 | 405,896 |
Required to be considered adequately capitalized risk-based capital Amount | 401,909 | 411,932 |
Required to be considered adequately capitalized Total risk-based capital Amount | $ 496,476 | $ 508,857 |
Revenue from Contracts with C_3
Revenue from Contracts with Clients - Non-interest income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contracts with Clients | ||||
Loss (gain) on OREO sales, net | $ (119,000) | $ (6,514,000) | $ (25,000) | $ (7,200,000) |
Service charges and other fees | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | 3,742,000 | 4,617,000 | 10,962,000 | 13,479,000 |
Bank card fees | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | 4,039,000 | 3,752,000 | 11,206,000 | 10,946,000 |
ASU 2014-09 | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | 44,532,000 | 24,759,000 | 106,901,000 | 62,470,000 |
ASU 2014-09 | In-scope of Topic 606 | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | 8,285,000 | 8,864,000 | 23,659,000 | 25,768,000 |
Loss (gain) on OREO sales, net | (119,000) | (6,514,000) | (25,000) | (7,200,000) |
Total Revenue | 8,404,000 | 15,378,000 | 23,684,000 | 32,968,000 |
ASU 2014-09 | In-scope of Topic 606 | Service charges and other fees | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | 4,246,000 | 5,112,000 | 12,453,000 | 14,822,000 |
ASU 2014-09 | In-scope of Topic 606 | Bank card fees | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | 4,039,000 | 3,752,000 | 11,206,000 | 10,946,000 |
ASU 2014-09 | Out-of-scope of Topic 606 | ||||
Revenue from Contracts with Clients | ||||
Non-interest income | $ 36,247,000 | $ 15,895,000 | $ 83,242,000 | $ 36,702,000 |
Stock-based Compensation and _3
Stock-based Compensation and Benefits - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 100,000 | $ 200,000 | $ 800,000 | $ 500,000 |
Unrecognized compensation expense | 900,000 | $ 900,000 | ||
Unrecognized compensation cost, weighted-average period, years | 1 year 3 months 18 days | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 700,000 | 700,000 | $ 1,900,000 | 1,600,000 |
Awards granted (in shares) | 120,132 | |||
Restricted Stock [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | 2,600,000 | $ 2,600,000 | ||
Unrecognized compensation cost, weighted-average period, years | 2 years | |||
Performance stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 400,000 | $ 500,000 | $ 1,300,000 | $ 1,200,000 |
Awards granted (in shares) | 68,498 | |||
Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 3,100,000 | $ 3,100,000 | ||
Unrecognized compensation cost, weighted-average period, years | 1 year 10 months 24 days | |||
Awards granted (in shares) | 17,852 | |||
Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | EPS target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of awards based on performance type | 60.00% | |||
Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | TSR target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of awards based on performance type | 40.00% | |||
Employee Stock [Member] | Employee Stock Purchase Plan 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum stock purchases by employees, value | $ 25,000 | |||
Maximum stock purchases by employees (in shares) | 2,000 | |||
Discount on purchase of common stock (as a percent) | 90.00% | |||
Offering period for employee stock purchases | 6 months | |||
Number of shares authorized | 400,000 | 400,000 | ||
Shares available for issuance | 302,876 | 302,876 | ||
Employees purchased shares (in shares) | 23,212 | 16,556 | ||
Minimum | Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Minimum | Restricted Stock [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Minimum | Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of initial target awards | 0.00% | |||
Maximum | Stock options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Contractual term (in years) | 10 years | |||
Maximum | Restricted Stock [Member] | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Maximum | Performance stock units | NBH Holdings Corp. 2014 Omnibus Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of initial target awards | 150.00% |
Stock-based Compensation and _4
Stock-based Compensation and Benefits - Summary of Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding Options, beginning | 657,114 | |
Granted, Options | 225,936 | |
Exercised, Options | (63,558) | |
Forfeited, Options | (17,038) | |
Outstanding Options, ending | 802,454 | 657,114 |
Options fully vested and exercisable at end of period, Options | 447,461 | |
Options expected to vest, Options | 764,282 | |
Outstanding, Weighted average exercise price, beginning | $ 26.69 | |
Granted, Weighted average exercise price | 23.13 | |
Exercised, Weighted average exercise price | 19.77 | |
Forfeited, Weighted average exercise price | 29 | |
Outstanding, Weighted average exercised price, ending | 26.18 | $ 26.69 |
Options fully vested and exercisable at end of period, Weighted average exercise price | 25.35 | |
Options expected to vest, Weighted average exercise price | $ 26.17 | |
Outstanding, Weighted average remaining contractual term in years | 7 years 3 days | 6 years 4 months 28 days |
Options fully vested and exercisable at end of period, weighted average remaining contractual term in years | 5 years 5 months 4 days | |
Options expected to vest, Weighted average remaining contractual term in years | 6 years 10 months 24 days | |
Outstanding, Aggregate intrinsic value, beginning | $ 5,626 | |
Outstanding, Outstanding, Aggregate intrinsic value, beginning | 2,474 | $ 5,626 |
Aggregate intrinsic Value of Options fully vested and exercisable at end of period | 1,791 | |
Options expected to vest, Aggregate Intrinsic Value | $ 2,390 |
Stock-based Compensation and _5
Stock-based Compensation and Benefits - Summary of Restricted Stock Activity (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average beginning measurement period price | $ | $ 35.95 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested Restricted shares, Beginning (in shares) | shares | 122,198 |
Unvested Restricted shares, Granted (in shares) | shares | 120,132 |
Unvested Restricted shares, Vested (in shares) | shares | (53,995) |
Unvested Restricted shares, Forfeited (in shares) | shares | (9,502) |
Unvested Restricted shares, Ending (in shares) | shares | 178,833 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant-date fair value, Beginning (in dollars per share) | $ 34.19 |
Weighted average grant-date fair value, Granted (in dollars per share) | 23.58 |
Weighted average grant-date fair value, Vested (in dollars per share) | 34.40 |
Weighted average grant-date fair value, Forfeited (in dollars per share) | 29.94 |
Weighted average grant-date fair value, Ending (in dollars per share) | $ 27.22 |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested Restricted shares, Beginning (in shares) | shares | 158,874 |
Unvested Restricted shares, Granted (in shares) | shares | 68,498 |
Unvested Restricted shares, Net adjustment due to performance (in shares) | shares | 17,852 |
Unvested Restricted shares, Vested (in shares) | shares | (53,540) |
Unvested Restricted shares, Forfeited (in shares) | shares | (6,032) |
Unvested Restricted shares, Ending (in shares) | shares | 185,652 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant-date fair value, Beginning (in dollars per share) | $ 31.19 |
Weighted average grant-date fair value, Granted (in dollars per share) | 26.74 |
Weighted average grant-date fair value, Net adjustment due to performance (in dollars per share) | 33.22 |
Weighted average grant-date fair value, Vested (in dollars per share) | 33.22 |
Weighted average grant-date fair value, Forfeited (in dollars per share) | 29.37 |
Weighted average grant-date fair value, Ending (in dollars per share) | 29.22 |
ROTA | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant-date fair value, Granted (in dollars per share) | 28.43 |
TSR | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant-date fair value, Granted (in dollars per share) | $ 24.58 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Feb. 26, 2020 | |
Schedule Of Common Stock [Line Items] | ||||
Shares outstanding | 30,594,412 | 31,176,627 | ||
Shares repurchased (shares) | 734,117 | |||
Repurchase of shares | $ 19,476 | |||
Common Class A [Member] | ||||
Schedule Of Common Stock [Line Items] | ||||
Shares outstanding | 30,594,412 | 31,176,627 | ||
Restricted issued but not yet vested, shares | 178,833 | 122,198 | ||
New Board Authorized Share Repurchase Program | ||||
Schedule Of Common Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 50,000 | |||
Remaining authorized amount | $ 43,100 | |||
Board Authorized Share Repurchase Programs [Member] | ||||
Schedule Of Common Stock [Line Items] | ||||
Repurchase of shares | $ 12,600 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Earnings Per Share | |||
Shares outstanding | 30,594,412 | 31,169,086 | |
Outstanding stock options to purchase common stock | 802,454 | 661,467 | 657,114 |
Outstanding stock options to purchase common stock, per share | $ 26.18 | $ 26.73 | $ 26.69 |
Restricted shares outstanding | 364,485 | 295,619 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share | ||||
Net income | $ 27,893 | $ 21,642 | $ 61,422 | $ 60,846 |
Less: income allocated to participating securities | (36) | (25) | (96) | (69) |
Income allocated to common shareholders | $ 27,857 | $ 21,617 | $ 61,326 | $ 60,777 |
Weighted average shares outstanding for basic earnings per common share | 30,756,116 | 31,281,970 | 30,881,325 | 31,133,982 |
Dilutive effect of equity awards | 168,107 | 227,029 | 189,672 | 403,352 |
Weighted average shares outstanding for diluted earnings per common share | 30,924,223 | 31,508,999 | 31,070,997 | 31,537,334 |
Basic earnings per share (in dollars per share) | $ 0.91 | $ 0.69 | $ 1.99 | $ 1.95 |
Diluted earnings per share (in dollars per share) | $ 0.90 | $ 0.69 | $ 1.97 | $ 1.93 |
Derivatives - FV of Derivatives
Derivatives - FV of Derivatives on the Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | $ 1,171 | |
Liability derivatives fair value | $ 45,279 | 13,537 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 33,247 | 10,519 |
Liability derivatives fair value | 22,817 | 9,461 |
Other assets [Member] | Interest rate products [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 1,171 | |
Other assets [Member] | Interest rate products [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 21,287 | 9,004 |
Other assets [Member] | Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 11,769 | 1,499 |
Other assets [Member] | Forward Contracts [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Asset derivatives fair value | 191 | 16 |
Other liabilities [Member] | Interest rate products [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | 45,279 | 13,537 |
Other liabilities [Member] | Interest rate products [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | 21,371 | 9,021 |
Other liabilities [Member] | Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | 440 | 141 |
Other liabilities [Member] | Forward Contracts [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | ||
Derivative [Line Items] | ||
Liability derivatives fair value | $ 1,006 | $ 299 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Hedged Loans | $ 398.4 | $ 405.9 |
Cumulative fair value hedge adjustment | 46.9 | 13.9 |
Termination value of derivatives in net liability position | 69.3 | |
Eligible collateral posted | 76.3 | |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Notional amount | 99.8 | |
Interest Rate Lock Commitments Notional Amount Member | ||
Derivative [Line Items] | ||
Notional amount | 457.9 | |
Forward Loan Sales Commitments Notional Amount Member | ||
Derivative [Line Items] | ||
Notional amount | 516.4 | |
Forward Contract Notional [Member] | ||
Derivative [Line Items] | ||
Notional amount | 181.5 | |
Designated as Hedging Instrument [Member] | Interest rate swap derivatives [Member] | ||
Derivative [Line Items] | ||
Notional amount | 395.3 | 403.7 |
Not Designated as Hedging Instrument, Economic Hedge [Member] | Interest rate swap derivatives [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 492.3 | $ 478.9 |
Derivatives - Derivatives on th
Derivatives - Derivatives on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Not Designated as Hedging Instrument, Economic Hedge [Member] | ||||
Derivative [Line Items] | ||||
Amount of (loss) gain recognized in income on derivatives | $ 4,809 | $ 672 | $ 13,577 | $ 1,578 |
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Amount of (loss) gain recognized in income on derivatives | 5,043 | 5,809 | 1,310 | (11,791) |
Amount of gain (loss) recognized in income on hedged items | (4,993) | (3,313) | (2,869) | 11,604 |
Interest rate products [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | Other Non-Interest income [Member] | ||||
Derivative [Line Items] | ||||
Amount of (loss) gain recognized in income on derivatives | 8 | (198) | (65) | (761) |
Interest rate products [Member] | Fair Value Hedging [Member] | Designated as Hedging Instrument [Member] | Interest income [Member] | ||||
Derivative [Line Items] | ||||
Amount of (loss) gain recognized in income on derivatives | 5,043 | 5,809 | 1,310 | (11,791) |
Amount of gain (loss) recognized in income on hedged items | (4,993) | (3,313) | (2,869) | 11,604 |
Forward Contracts [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | Mortgage banking income [Member] | ||||
Derivative [Line Items] | ||||
Amount of (loss) gain recognized in income on derivatives | 1,558 | 348 | (532) | 49 |
Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument, Economic Hedge [Member] | Mortgage banking income [Member] | ||||
Derivative [Line Items] | ||||
Amount of (loss) gain recognized in income on derivatives | $ 3,243 | $ 522 | $ 14,174 | $ 2,290 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Total Unfunded Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | $ 846,822 | $ 862,250 |
Commitments to fund loans [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | 280,496 | 249,914 |
Unfunded Commitment Line Of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | 557,464 | 600,407 |
Commercial And Standby Letters Of Credit [Member] | ||
Commitment And Contingencies [Line Items] | ||
Total unfunded commitments | $ 8,862 | $ 11,929 |
Commitments and Contingencies_2
Commitments and Contingencies - Repurchaase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitment And Contingencies [Line Items] | ||||||||
Beginning balance | $ 60,465 | $ 40,082 | $ 39,064 | $ 35,692 | $ 35,692 | |||
Recoveries | (133) | $ (39) | (515) | (217) | ||||
Ending balance | 60,979 | $ 60,465 | 38,710 | 60,979 | 38,710 | 39,064 | $ 35,692 | |
Allowance For Loan Repurchases Or Indemnification Beginning Balance | $ 2,725 | $ 2,633 | ||||||
Allowance For Loan Repurchases Or Indemnification Provision or Release | 285 | (111) | ||||||
Allowance For Loan Repurchases Or Indemnification Charge Offs | 214 | 24 | ||||||
Allowance For Loan Repurchases Or Indemnification Ending Balance | 2,796 | $ 2,498 | ||||||
Loans Sold Subject to Repurchase [Member] | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Beginning balance | 2,600 | |||||||
Ending balance | 2,800 | 2,800 | 2,600 | |||||
Allowance For Loan Repurchases Or Indemnification Beginning Balance | $ 2,589 | $ 3,286 | ||||||
Allowance For Loan Repurchases Or Indemnification Provision or Release | 604 | (639) | ||||||
Allowance For Loan Repurchases Or Indemnification Charge Offs | $ 214 | 397 | 149 | |||||
Allowance For Loan Repurchases Or Indemnification Ending Balance | $ 2,796 | $ 2,498 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Of Financial Instruments [Abstract] | |
Residential mortgage loans held for sale period | 45 days |
Interest Rate Lock Commitments, Average Percentage Of Estimated Pull Through Rate To Calculate Fair Value | 87 |
Fair Value Measurements - Table
Fair Value Measurements - Tables of Financial Instruments Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 878,189 | $ 766,799 |
Total liabilities at fair value | 68,096 | 22,998 |
Loans held for sale member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 273,003 | 117,444 |
Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 394 | 372 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2,003 | |
Mortgage-Backed Securities (MBS) [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 92,892 | 95,256 |
Mortgage-Backed Securities (MBS) [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 476,650 | 542,037 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 866,229 | 765,284 |
Total liabilities at fair value | 66,650 | 22,558 |
Level 2 [Member] | Loans held for sale member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 273,003 | 117,444 |
Level 2 [Member] | Municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 394 | 372 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 2,003 | |
Level 2 [Member] | Mortgage-Backed Securities (MBS) [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 92,892 | 95,256 |
Level 2 [Member] | Mortgage-Backed Securities (MBS) [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 476,650 | 542,037 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 11,960 | 1,515 |
Total liabilities at fair value | 1,446 | 440 |
Interest rate swap derivatives [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 21,287 | 10,175 |
Total liabilities at fair value | 66,650 | 22,558 |
Interest rate swap derivatives [Member] | Level 2 [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 21,287 | 10,175 |
Total liabilities at fair value | 66,650 | 22,558 |
Mortgage banking derivatives | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 11,960 | 1,515 |
Total liabilities at fair value | 1,446 | 440 |
Mortgage banking derivatives | Level 3 [Member] | Derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 11,960 | 1,515 |
Total liabilities at fair value | $ 1,446 | $ 440 |
Fair Value Measurements - Tab_2
Fair Value Measurements - Table of Changes in Level 3 Financial Instruments (Details) - Derivative Financial Instruments Assets and Liabilities [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 1,075 |
Gain included in earnings, net | 13,642 |
Fees and costs included in earnings, net | (4,203) |
Ending Balance | $ 10,514 |
Fair Value Measurements - Tab_3
Fair Value Measurements - Table of Valuation Techniques and Unobservable Inputs Used in Valuation of Financial Instruments Falling Within Level 3 of Fair Value Hierarchy (Details) | Sep. 30, 2020 |
Minimum | Mortgage servicing rights member | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Servicing assets measurement input (as a percent) | 18 |
Maximum | Mortgage servicing rights member | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Servicing assets measurement input (as a percent) | 21.8 |
Weighted Average | Impaired Loans [Member] | Measurement Input, Discount Rate [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Fair value of loans measurement input (as a percent) | 0.145 |
Weighted Average | Mortgage servicing rights member | Measurement Input, Constant Prepayment Rate [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Servicing assets measurement input (as a percent) | 18.1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans | $ 4,556,121,000 | $ 4,415,406,000 | |
Impairment on other real estate owned | 423,000 | $ 872,000 | |
Impairment on fixed assets related to banking center consolidations | 1,600,000 | ||
Net Book Balance Of Fixed Assets Sold | 8,000,000 | ||
Banking centers classified as held-for-sale | $ 12 | ||
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated selling cost (as a percent) | 6.00% | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated selling cost (as a percent) | 10.00% | ||
Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Estimated selling cost (as a percent) | 9.60% | ||
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonrecurring Loans Reserves | $ 1,100,000 | $ 1,800,000 | |
Number of Loans measured | loan | 6 | 8 | |
Loans | $ 4,600,000 | $ 5,900,000 | |
Impaired Loans [Member] | Measurement Input, Discount Rate [Member] | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 3.00% | ||
Impaired Loans [Member] | Measurement Input, Discount Rate [Member] | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 26.00% | ||
Mortgage servicing rights member | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 9.50% | ||
Mortgage servicing rights member | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 10.50% | ||
Mortgage servicing rights member | Weighted Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 9.50% |
Fair Value Measurements - Input
Fair Value Measurements - Inputs Used to Determine Fair Values of Oreo are Considered Level 3 Inputs in Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets at fair value | $ 878,189 | $ 766,799 | |
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets at fair value | 53,390 | $ 51,170 | |
Losses From Fair Value Changes | 4,870 | 9,794 | |
Impaired loans [Member] | Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets at fair value | 33,603 | 37,002 | |
Losses From Fair Value Changes | 1,969 | 7,571 | |
Other Real Estate Owned [Member] | Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets at fair value | 4,590 | 7,904 | |
Losses From Fair Value Changes | 423 | 872 | |
Mortgage servicing rights member | Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets at fair value | 7,173 | 2,879 | |
Losses From Fair Value Changes | 847 | 453 | |
Premise and Equipment [Member] | Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets at fair value | 8,024 | 3,385 | |
Losses From Fair Value Changes | $ 1,631 | $ 898 |
Fair Value Measurements - Trans
Fair Value Measurements - Transfer Between Hierarchy Levels (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Fair Value Disclosures [Abstract] | |
Level 1 to Level 2 Transfer, Asset | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Cash and cash equivalents | $ 445,103 | $ 110,190 |
Investment securities available-for-sale (at fair value) | 572,523 | 638,249 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 320,001 | 182,884 |
Non-marketable securities | 29,598 | 29,751 |
Loans receivable | 4,495,142 | 4,376,342 |
Total Loans | 4,556,121 | 4,415,406 |
Loans held-for-sale | 273,003 | 117,444 |
Accrued interest receivable | 20,600 | 17,200 |
LIABILITIES: | ||
Time deposits | 1,027,066 | 1,058,153 |
Securities sold under agreements to repurchase | 23,904 | 56,935 |
Federal Home Loan Bank advances | 207,675 | |
Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 92,892 | 95,256 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 250,790 | 127,560 |
Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 476,650 | 542,037 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 69,211 | 55,324 |
Other Securities [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 469 | 469 |
Municipal [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 509 | 487 |
Corporate Debt Securities [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 2,003 | |
Carrying Amount [Member] | Level 1 [Member] | ||
ASSETS: | ||
Cash and cash equivalents | 445,103 | 110,190 |
Carrying Amount [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 92,892 | 95,256 |
Non-marketable securities | 29,598 | 29,751 |
Loans held-for-sale | 273,003 | 117,444 |
Accrued interest receivable | 22,852 | 19,157 |
LIABILITIES: | ||
Deposit transaction accounts | 4,589,394 | 3,678,979 |
Time deposits | 1,027,066 | 1,058,153 |
Securities sold under agreements to repurchase | 23,904 | 56,935 |
Federal Home Loan Bank advances | 207,675 | |
Accrued interest payable | 8,219 | 9,328 |
Derivative liability | 66,650 | 22,558 |
Carrying Amount [Member] | Level 3 [Member] | ||
ASSETS: | ||
Loans receivable | 4,556,121 | 4,415,406 |
Carrying Amount [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | Level 2 [Member] | ||
ASSETS: | ||
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 250,790 | 127,560 |
Carrying Amount [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 476,650 | 542,037 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 69,211 | 55,324 |
Carrying Amount [Member] | Other Securities [Member] | Level 3 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 469 | 469 |
Carrying Amount [Member] | Municipal [Member] | Level 2 [Member] | ||
ASSETS: | ||
Municipal obligations | 394 | 372 |
Carrying Amount [Member] | Municipal [Member] | Level 3 [Member] | ||
ASSETS: | ||
Municipal obligations | 115 | 115 |
Carrying Amount [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 2,003 | |
Estimated Fair Value [Member] | Level 1 [Member] | ||
ASSETS: | ||
Cash and cash equivalents | 445,103 | 110,190 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 92,892 | 95,256 |
Non-marketable securities | 29,598 | 29,751 |
Loans held-for-sale | 273,003 | 117,444 |
Accrued interest receivable | 22,852 | 19,157 |
LIABILITIES: | ||
Deposit transaction accounts | 4,589,394 | 3,678,979 |
Time deposits | 1,036,192 | 1,058,354 |
Securities sold under agreements to repurchase | 23,904 | 56,935 |
Federal Home Loan Bank advances | 207,890 | |
Accrued interest payable | 8,219 | 9,328 |
Derivative liability | 66,650 | 22,558 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
ASSETS: | ||
Loans receivable | 4,723,757 | 4,481,209 |
Estimated Fair Value [Member] | Residential Mortgage Pass-Through Securities Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | Level 2 [Member] | ||
ASSETS: | ||
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 255,032 | 128,770 |
Estimated Fair Value [Member] | Other Residential MBS Issued or Guaranteed by U.S. Government Agencies or Sponsored Enterprises [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 476,650 | 542,037 |
Mortgage-backed securities-residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity | 69,688 | 54,971 |
Estimated Fair Value [Member] | Other Securities [Member] | Level 3 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 469 | 469 |
Estimated Fair Value [Member] | Municipal [Member] | Level 2 [Member] | ||
ASSETS: | ||
Municipal obligations | 394 | 372 |
Estimated Fair Value [Member] | Municipal [Member] | Level 3 [Member] | ||
ASSETS: | ||
Municipal obligations | 115 | 115 |
Estimated Fair Value [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | ||
ASSETS: | ||
Investment securities available-for-sale (at fair value) | 2,003 | |
Interest rate swap derivatives [Member] | Carrying Amount [Member] | Level 2 [Member] | ||
ASSETS: | ||
Derivative asset | 21,287 | 10,175 |
Interest rate swap derivatives [Member] | Estimated Fair Value [Member] | Level 2 [Member] | ||
ASSETS: | ||
Derivative asset | 21,287 | 10,175 |
Mortgage banking derivatives | Carrying Amount [Member] | Level 3 [Member] | ||
ASSETS: | ||
Derivative asset | 11,960 | 1,515 |
LIABILITIES: | ||
Derivative liability | 1,446 | 440 |
Mortgage banking derivatives | Estimated Fair Value [Member] | Level 3 [Member] | ||
ASSETS: | ||
Derivative asset | 11,960 | 1,515 |
LIABILITIES: | ||
Derivative liability | $ 1,446 | $ 440 |