Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36448 | |
Entity Registrant Name | Bankwell Financial Group, Inc. | |
Entity Incorporation, State | CT | |
Entity Tax Identification Number | 20-8251355 | |
Entity Address, Street | 258 Elm Street | |
Entity Address, City | New Canaan | |
Entity Address, State | CT | |
Entity Address, Postal Zip Code | 06840 | |
City Area Code | 203 | |
Local Phone Number | 652-0166 | |
Title of Each Class | Common Stock, no par value pershare | |
Trading Symbol(s) | BWFG | |
Name of Each Exchange on Which Registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,761,113 | |
Entity Central Index Key | 0001505732 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets - (
Consolidated Balance Sheets - (unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 280,471 | $ 291,598 |
Federal funds sold | 19,022 | 53,084 |
Cash and cash equivalents | 299,493 | 344,682 |
Investment securities | ||
Marketable equity securities, at fair value | 2,090 | 2,168 |
Available for sale investment securities, at fair value | 98,733 | 90,198 |
Held to maturity investment securities, at amortized cost (fair values of $16,338 and $18,445 at March 31, 2022 and December 31, 2021, respectively) | 15,979 | 16,043 |
Total investment securities | 116,802 | 108,409 |
Loans receivable (net of allowance for loan losses of $17,141 at March 31, 2022 and $16,902 at December 31, 2021) | 1,964,567 | 1,875,167 |
Accrued interest receivable | 7,733 | 7,512 |
Federal Home Loan Bank stock, at cost | 2,870 | 2,814 |
Premises and equipment, net | 25,661 | 25,588 |
Bank-owned life insurance | 49,434 | 49,174 |
Goodwill | 2,589 | 2,589 |
Deferred income taxes, net | 6,879 | 7,621 |
Other assets | 20,849 | 32,708 |
Total assets | 2,496,877 | 2,456,264 |
Deposits | ||
Noninterest bearing deposits | 412,985 | 398,956 |
Interest bearing deposits | 1,753,219 | 1,725,042 |
Total deposits | 2,166,204 | 2,123,998 |
Advances from the Federal Home Loan Bank | 50,000 | 50,000 |
Subordinated debentures (face value of $35,000 and $35,000 at March 31, 2022 and December 31, 2021, respectively, less unamortized debt issuance costs of $529 and $559 at March 31, 2022 and December 31, 2021, respectively) | 34,471 | 34,441 |
Accrued expenses and other liabilities | 35,982 | 45,838 |
Total liabilities | 2,286,657 | 2,254,277 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock, no par value; 10,000,000 shares authorized, 7,761,338 and 7,803,166 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 114,882 | 118,148 |
Retained earnings | 99,047 | 92,400 |
Accumulated other comprehensive loss | (3,709) | (8,561) |
Total shareholders' equity | 210,220 | 201,987 |
Total liabilities and shareholders' equity | $ 2,496,877 | $ 2,456,264 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - (unaudited) (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Held to maturity investment securities, fair value | $ 16,338,000 | $ 18,445,000 |
Allowance for loan losses | $ 17,141,000 | $ 16,902,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (shares) | 7,761,338 | 7,803,166 |
Common stock, shares outstanding (shares) | 7,761,338 | 7,803,166 |
Subordinated debentures | ||
Debt instrument face value of debt | $ 35,000,000 | $ 35,000,000 |
Unamortized debt issuance costs | $ 529,000 | $ 559,000 |
Consolidated Statements of Inco
Consolidated Statements of Income – (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and dividend income | ||
Interest and fees on loans | $ 21,428 | $ 17,900 |
Interest and dividends on securities | 720 | 769 |
Interest on cash and cash equivalents | 154 | 108 |
Total interest and dividend income | 22,302 | 18,777 |
Interest expense | ||
Interest expense on deposits | 2,206 | 3,114 |
Interest expense on borrowings | 586 | 1,008 |
Total interest expense | 2,792 | 4,122 |
Net interest income | 19,510 | 14,655 |
Provision (credit) for loan losses | 229 | (296) |
Net interest income after provision (credit) for loan losses | 19,281 | 14,951 |
Noninterest income | ||
Gains and fees from sales of loans | 631 | 513 |
Bank-owned life insurance | 260 | 231 |
Service charges and fees | 240 | 199 |
Other | (173) | 1,013 |
Total noninterest income | 958 | 1,956 |
Noninterest expense | ||
Salaries and employee benefits | 4,940 | 4,769 |
Occupancy and equipment | 2,150 | 2,406 |
Professional services | 981 | 587 |
Data processing | 654 | 512 |
Director fees | 352 | 317 |
FDIC insurance | 223 | 403 |
Marketing | 45 | (9) |
Other | 580 | 653 |
Total noninterest expense | 9,925 | 9,638 |
Income before income tax expense | 10,314 | 7,269 |
Income tax expense | 2,102 | 1,579 |
Net income | $ 8,212 | $ 5,690 |
Earnings Per Common Share: | ||
Basic (in dollars per share) | $ 1.05 | $ 0.72 |
Diluted (in dollars per share) | $ 1.04 | $ 0.71 |
Weighted Average Common Shares Outstanding: | ||
Basic (in shares) | 7,637,077 | 7,758,540 |
Diluted (in shares) | 7,719,405 | 7,800,777 |
Dividends per common share (in dollars per share) | $ 0.20 | $ 0.14 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) – (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 8,212 | $ 5,690 |
Unrealized losses on securities: | ||
Unrealized holding losses on available for sale securities | (4,767) | (1,025) |
Reclassification adjustment for gain realized in net income | 0 | 0 |
Net change in unrealized losses | (4,767) | (1,025) |
Income tax benefit | 1,064 | 227 |
Unrealized losses on securities, net of tax | (3,703) | (798) |
Unrealized gains on interest rate swaps: | ||
Unrealized gains on interest rate swaps | 11,016 | 10,934 |
Income tax expense | (2,461) | (2,434) |
Unrealized gains on interest rate swaps, net of tax | 8,555 | 8,500 |
Total other comprehensive income, net of tax | 4,852 | 7,702 |
Comprehensive income | $ 13,064 | $ 13,392 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity – (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2020 | $ 176,602 | $ 121,338 | $ 70,839 | $ (15,575) |
Beginning balance (in shares) at Dec. 31, 2020 | 7,919,278 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 5,690 | 5,690 | ||
Other comprehensive income, net of tax | 7,702 | 7,702 | ||
Cash dividends declared | (1,111) | (1,111) | ||
Stock-based compensation expense | 431 | $ 431 | ||
Forfeitures of restricted stock (in shares) | (150) | |||
Issuance of restricted stock (in shares) | 51,628 | |||
Stock options exercised | 53 | $ 53 | ||
Stock options exercised (in shares) | 3,500 | |||
Repurchase of common stock | (1,424) | $ (1,424) | ||
Repurchase of common stock (in shares) | (65,626) | |||
Ending balance at Mar. 31, 2021 | 187,943 | $ 120,398 | 75,418 | (7,873) |
Ending balance (in shares) at Mar. 31, 2021 | 7,908,630 | |||
Beginning balance at Dec. 31, 2020 | 176,602 | $ 121,338 | 70,839 | (15,575) |
Beginning balance (in shares) at Dec. 31, 2020 | 7,919,278 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Repurchase of common stock (in shares) | (190,770) | |||
Ending balance at Dec. 31, 2021 | 201,987 | $ 118,148 | 92,400 | (8,561) |
Ending balance (in shares) at Dec. 31, 2021 | 7,803,166 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 8,212 | 8,212 | ||
Other comprehensive income, net of tax | 4,852 | 4,852 | ||
Cash dividends declared | (1,565) | (1,565) | ||
Stock-based compensation expense | 541 | $ 541 | ||
Issuance of restricted stock (in shares) | 69,001 | |||
Stock options exercised | 30 | $ 30 | ||
Stock options exercised (in shares) | 2,000 | |||
Repurchase of common stock | (3,837) | $ (3,837) | ||
Repurchase of common stock (in shares) | (112,829) | |||
Ending balance at Mar. 31, 2022 | $ 210,220 | $ 114,882 | $ 99,047 | $ (3,709) |
Ending balance (in shares) at Mar. 31, 2022 | 7,761,338 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity – (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows – (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 8,212 | $ 5,690 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of premiums and discounts on investment securities | 90 | 30 |
Provision (credit) for loan losses | 229 | (296) |
(Credit) provision for deferred income taxes | (303) | 185 |
Change in fair value of marketable equity securities | 85 | 36 |
Depreciation and amortization | 752 | 791 |
Amortization of debt issuance costs | 30 | 13 |
Increase in cash surrender value of bank-owned life insurance | (260) | (231) |
Gains and fees from sales of loans | (631) | (513) |
Stock-based compensation | 541 | 431 |
Amortization of intangibles | 0 | 9 |
Loss on sale of premises and equipment | 0 | 6 |
Net change in: | ||
Deferred loan fees | 810 | (403) |
Accrued interest receivable | (221) | (727) |
Other assets | 13,516 | 11,854 |
Accrued expenses and other liabilities | (849) | (181) |
Net cash provided by operating activities | 22,001 | 16,694 |
Cash flows from investing activities | ||
Proceeds from principal repayments on available for sale securities | 2,847 | 4,329 |
Proceeds from principal repayments on held to maturity securities | 66 | 4,592 |
Purchases of marketable equity securities | (7) | (7) |
Purchases of available for sale securities | (16,241) | 0 |
Purchases of held to maturity securities | 0 | (4,736) |
Net increase in loans | (96,076) | (51,723) |
Proceeds from sales of loans not originated for sale | 6,268 | 4,480 |
Purchases of premises and equipment, net | (825) | (2,646) |
(Purchase) reduction of Federal Home Loan Bank stock | (56) | 1,414 |
Net cash used in investing activities | (104,024) | (44,297) |
Cash flows from financing activities | ||
Net change in time certificates of deposit | (11,025) | (83,269) |
Net change in other deposits | 53,231 | 115,761 |
Net change in FHLB advances | 0 | (50,000) |
Proceeds from exercise of options | 30 | 53 |
Dividends paid on common stock | (1,565) | (1,111) |
Repurchase of common stock | (3,837) | (1,424) |
Net cash provided by (used in) financing activities | 36,834 | (19,990) |
Net decrease in cash and cash equivalents | (45,189) | (47,593) |
Cash and cash equivalents: | ||
Beginning of year | 344,682 | 409,598 |
End of period | 299,493 | 362,005 |
Cash paid for: | ||
Interest | 2,673 | 4,694 |
Income taxes | 150 | 109 |
Noncash investing and financing activities: | ||
Net change in unrealized gains or losses on available for sale securities | (4,767) | (1,025) |
Net change in unrealized gains or losses on interest rate swaps | 11,016 | 10,934 |
Establishment of right-of-use asset and lease liability | 0 | 9,775 |
Transfer of loans from held-for-investment to held-for-sale | $ 5,637 | $ 3,967 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Bankwell Financial Group, Inc. (the "Parent Corporation") is a bank holding company headquartered in New Canaan, Connecticut. The Parent Corporation offers a broad range of financial services through its banking subsidiary, Bankwell Bank (the "Bank" and, collectively with the Parent Corporation and the Parent Corporation's subsidiaries, the "Company"). The Bank is a Connecticut state chartered commercial bank, founded in 2002, whose deposits are insured under the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (“FDIC”). The Bank provides commercial lending services through a variety of fixed and floating rate products in Connecticut and surrounding markets. Such services are also provided to certain industries across several regions of the United States, primarily with borrowers with whom the Company has existing relationships. The Bank operates branches in New Canaan, Stamford, Fairfield, Wilton, Westport, Darien, Norwalk, and Hamden, Connecticut. Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, the valuation of derivative instruments, investment securities valuation, evaluation of investment securities for other than temporary impairment and deferred income taxes valuation. Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2021. Significant concentrations of credit risk Many of the Company's activities are with customers located in Connecticut and New York, with the majority of the Company's loans in Connecticut and some New York metro area counties. Declines in property values in these areas could significantly impact the Company. The Company has a significant concentration in commercial real estate loans. Common Share Repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Reclassification Certain prior period amounts may be reclassified to conform to the 2022 financial statement presentation. These reclassifications only change the reporting categories and do not affect the consolidated results of operations or consolidated financial position of the Company. Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): "Troubled Debt Restructurings and Vintage Disclosures.” This ASU eliminates the TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. In addition, this ASU enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, this ASU requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. For entities that have adopted the amendments in update 2016-13, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in update 2016-13, the effective dates for the amendments in this update are the same as the effective dates in Update 2016-13. The Company has not yet adopted this accounting standard as ASU 2016-13 has not been adopted. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On July 17, 2019, the FASB proposed deferring the effective date of ASC 326 for smaller reporting companies as defined by the SEC. The FASB proposed a three year deferral for smaller reporting companies, with an effective date of January 1, 2023. On October 16, 2019, the FASB voted in favor of finalizing its proposal to defer the effective date of this standard. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company qualifies to defer the adoption of this standard and has not yet adopted this standard. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB voted in favor of a proposal to defer the effective date of this standard in the same manner it is deferring the effective date of ASC 326. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company qualifies to defer the adoption of this standard and has not yet adopted this standard. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at March 31, 2022 were as follows: March 31, 2022 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Due from one through five years $ 40,944 $ — $ (1,887) $ 39,057 Due from five through ten years 33,689 — (260) 33,429 Due after ten years 11,240 47 (411) 10,876 Total U.S. Government and agency obligations 85,873 47 (2,558) 83,362 Corporate bonds Due from five through ten years 14,000 90 (253) 13,837 Due after ten years 1,500 34 — 1,534 Total corporate bonds 15,500 124 (253) 15,371 Total available for sale securities $ 101,373 $ 171 $ (2,811) $ 98,733 Held to maturity securities: State agency and municipal obligations Due after ten years $ 15,937 $ 1,018 $ (663) $ 16,292 Government-sponsored mortgage backed securities No contractual maturity 42 4 — 46 Total held to maturity securities $ 15,979 $ 1,022 $ (663) $ 16,338 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2021 were as follows: December 31, 2021 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Due from one through five years $ 25,747 $ 3 $ (181) $ 25,569 Due from five through ten years 16,540 866 — 17,406 Due after ten years 31,284 988 (58) 32,214 Total U.S. Government and agency obligations 73,571 1,857 (239) 75,189 Corporate bonds Due from five through ten years 13,000 429 (10) 13,419 Due after ten years 1,500 90 — 1,590 Total corporate bonds 14,500 519 (10) 15,009 Total available for sale securities $ 88,071 $ 2,376 $ (249) $ 90,198 Held to maturity securities: State agency and municipal obligations Due after ten years $ 15,998 $ 2,601 $ (206) $ 18,393 Government-sponsored mortgage backed securities No contractual maturity 45 7 — 52 Total held to maturity securities $ 16,043 $ 2,608 $ (206) $ 18,445 There were no sales of investment securities during the three months ended March 31, 2022 or 2021. At March 31, 2022 and December 31, 2021, none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution. As of March 31, 2022 and December 31, 2021, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities. As of March 31, 2022, the Company held marketable equity securities with a fair value of $2.1 million and an amortized cost of $2.1 million. At December 31, 2021, the Company held marketable equity securities with a fair value of $2.2 million and an amortized cost of $2.1 million. These securities represent an investment in mutual funds that have an objective to make investments for CRA purposes. The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021: Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Percent Fair Value Unrealized Percent Fair Value Unrealized Percent (Dollars in thousands) March 31, 2022 U.S. Government and agency obligations $ 79,507 $ (2,558) 3.12 % $ — $ — — % $ 79,507 $ (2,558) 3.12 % Corporate bonds 9,747 (253) 2.53 — — — 9,747 (253) 2.53 State agency and municipal obligations — — — 3,971 (663) 14.30 3,971 (663) 14.30 Total investment securities $ 89,254 $ (2,811) 3.05 % $ 3,971 $ (663) 14.30 % $ 93,225 $ (3,474) 3.59 % Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Percent Fair Value Unrealized Percent Fair Value Unrealized Percent (Dollars in thousands) December 31, 2021 U.S. Government and agency obligations $ 28,121 $ (239) 0.84 % $ — $ — — % $ 28,121 $ (239) 0.84 % Corporate bonds 2,990 (10) 0.35 — — — 2,990 (10) 0.35 State agency and municipal obligations 4,443 (206) 4.44 — — — 4,443 (206) 4.44 Total investment securities $ 35,554 $ (455) 1.27 % $ — $ — — % $ 35,554 $ (455) 1.27 % There were twenty-two and seven investment securities as of March 31, 2022 and December 31, 2021, respectively, in which the fair value of the security was less than the amortized cost of the security. The U.S. Government and agency obligations owned are either direct obligations of the U.S. Government or guaranteed by the U.S. Government, therefore the contractual cash flows are guaranteed and as a result the unrealized losses in this portfolio are considered to be only temporarily impaired. The Company continually monitors its corporate bond, state agency and municipal bond portfolios and at this time these portfolios have minimal default risk because state agency and municipal bonds are all rated investment grade or deemed to be of investment grade quality. The Company has the intent and ability to retain its investment securities in an unrealized loss position at March 31, 2022 until the decline in value has recovered or the security has matured. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses The following table sets forth a summary of the loan portfolio at March 31, 2022 and December 31, 2021: (In thousands) March 31, 2022 December 31, 2021 Real estate loans: Residential $ 68,617 $ 79,987 Commercial 1,425,758 1,356,709 Construction 115,514 98,341 1,609,889 1,535,037 Commercial business (1) 370,166 350,975 Consumer 5,275 8,869 Total loans 1,985,330 1,894,881 Allowance for loan losses (17,141) (16,902) Deferred loan origination fees, net (3,622) (2,812) Loans receivable, net $ 1,964,567 $ 1,875,167 (1) The March 31, 2022 and December 31, 2021 balances include $0.1 million and $0.2 million, respectively, of Paycheck Protection Program ("PPP") loans made under the CARES Act. Lending activities consist of commercial real estate loans, commercial business loans and, to a lesser degree, a variety of consumer loans. Loans may also be granted for the construction of commercial properties. The majority of commercial mortgage loans are collateralized by first or second mortgages on real estate. Risk management The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and extends credit of up to 80% of the market value of the collateral, depending on the borrower's creditworthiness and the type of collateral. The borrower’s ability to service the debt is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, time deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans to be based on the borrower’s ability to generate continuing cash flows. In the fourth quarter of 2017, management made the strategic decision to cease the origination of residential mortgage loans. At the beginning of the third quarter 2019, the Company no longer offered home equity loans or lines of credit. The Company’s policy for residential lending generally required that the amount of the loan may not exceed 80% of the original appraised value of the property. In certain situations, the amount may have exceeded 80% LTV either with private mortgage insurance being required for that portion of the residential loan in excess of 80% of the appraised value of the property or where secondary financing is provided by a housing authority program second mortgage, a community’s low/moderate income housing program, or a religious or civic organization. Credit quality of loans and the allowance for loan losses Management segregates the loan portfolio into defined segments, which are used to develop and document a systematic method for determining the Company's allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The Company's loan portfolio is segregated into the following portfolio segments: Residential Real Estate: This portfolio segment consists of first mortgage loans secured by one-to-four family owner occupied residential properties for personal use located in the Company's market area. This segment also includes home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties. Loans of this type were written at a combined maximum of 80% of the appraised value of the property and the Company requires a first or second lien position on the property. These loans can be affected by economic conditions and the values of the underlying properties. Commercial Real Estate: This portfolio segment includes loans secured by commercial real estate, multi-family dwellings, owner-occupied commercial real estate and investor-owned one-to-four family dwellings. Loans secured by commercial real estate generally have larger loan balances and more credit risk than owner occupied one-to-four family mortgage loans. Construction: This portfolio segment includes commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail and other income producing properties and land loans, which are loans made with land as collateral. Construction and land development financing generally involves greater credit risk than long-term financing on improved, owner-occupied or leased real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, the Company may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment through sale or refinance. Construction loans also expose the Company to the risks that improvements will not be completed on time in accordance with specifications and projected costs and that repayment will depend on the successful operation or sale of the properties, which may cause some borrowers to be unable to continue paying debt service, which exposes the Company to greater risk of non-payment and loss. Commercial Business: This portfolio segment includes commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners. Commercial business loans generally have higher interest rates and shorter terms than other loans, but they also have increased difficulty of loan monitoring and a higher risk of default since their repayment generally depends on the successful operation of the borrower’s business. This segment also includes Paycheck Protection Program ("PPP") loans made under the CARES Act to small businesses impacted by COVID-19, to cover payroll and other operating expenses. Loans extended under the PPP are fully guaranteed by the U.S. Small Business Administration ("SBA"). Consumer: This portfolio segment includes loans secured by savings or certificate accounts, automobiles, as well as unsecured personal loans and overdraft lines of credit. In addition, there are loans to finance insurance premiums, secured by the cash surrender value of life insurance and marketable securities. Allowance for loan losses The following tables set forth the activity in the Company’s allowance for loan losses for the three months ended March 31, 2022 and 2021, by portfolio segment: Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended March 31, 2022 Beginning balance $ 504 $ 12,751 $ 4 $ 3,590 $ 53 $ 16,902 Charge-offs — — — — (4) (4) Recoveries — — — 13 1 14 (Credits) provisions (146) 690 52 (349) (18) 229 Ending balance $ 358 $ 13,441 $ 56 $ 3,254 $ 32 $ 17,141 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended March 31, 2021 Beginning balance $ 610 $ 16,425 $ 221 $ 3,753 $ — $ 21,009 Charge-offs — (163) — — (14) (177) Recoveries — — — — 9 9 (Credits) provisions (109) (3) 76 (301) 41 (296) Ending balance $ 501 $ 16,259 $ 297 $ 3,452 $ 36 $ 20,545 Loans evaluated for impairment and the related allowance for loan losses as of March 31, 2022 and December 31, 2021 were as follows: Portfolio Allowance (In thousands) March 31, 2022 Loans individually evaluated for impairment: Residential real estate $ 3,918 $ 211 Commercial real estate 29,609 2,497 Construction 9,382 — Commercial business 3,022 74 Subtotal 45,931 2,782 Loans collectively evaluated for impairment: Residential real estate 64,699 147 Commercial real estate 1,396,149 10,944 Construction 106,132 56 Commercial business 367,144 3,180 Consumer 5,275 32 Subtotal 1,939,399 14,359 Total $ 1,985,330 $ 17,141 Portfolio Allowance (In thousands) December 31, 2021 Loans individually evaluated for impairment: Residential real estate $ 4,150 $ 261 Commercial real estate 29,666 2,520 Construction 8,997 — Commercial business 4,368 87 Subtotal 47,181 2,868 Loans collectively evaluated for impairment: Residential real estate 75,837 243 Commercial real estate 1,327,043 10,231 Construction 89,344 4 Commercial business 346,607 3,503 Consumer 8,869 53 Subtotal 1,847,700 14,034 Total $ 1,894,881 $ 16,902 Credit quality indicators To measure credit risk for the loan portfolios, the Company employs a credit risk rating system. This risk rating represents an assessed level of a loan’s risk based on the character and creditworthiness of the borrower/guarantor, the capacity of the borrower to adequately service the debt, any credit enhancements or additional sources of repayment, and the quality, value and coverage of the collateral, if any. The objectives of the Company’s risk rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize a potential credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for loan losses. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default. Risk ratings of (1) through (5) are "pass" categories and risk ratings of (6) through (9) are criticized asset categories as defined by the regulatory agencies. A “special mention” (6) credit has a potential weakness which, if uncorrected, may result in a deterioration of the repayment prospects or inadequately protect the Company’s credit position at some time in the future. “Substandard” (7) loans are credits that have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt. An asset rated “doubtful” (8) has all the weaknesses inherent in a substandard asset and which, in addition, make collection or liquidation in full highly questionable and improbable when considering existing facts, conditions, and values. Loans classified as “loss” (9) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value; rather, it is not practical or desirable to defer writing-off this asset even though partial recovery may be made in the future. Risk ratings are assigned as necessary to differentiate risk within the portfolio. They are reviewed on an ongoing basis through the annual loan review process performed by Company personnel, normal renewal activity and the quarterly watchlist and watched asset report process. They are revised to reflect changes in the borrower's financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage, as well as other considerations. In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers. The following tables present credit risk ratings by loan segment as of March 31, 2022 and December 31, 2021: Commercial Credit Quality Indicators March 31, 2022 December 31, 2021 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,376,769 $ 106,132 $ 365,690 $ 1,848,591 $ 1,307,992 $ 89,344 $ 345,153 $ 1,742,489 Special Mention 19,380 — 1,454 20,834 19,051 — 1,454 20,505 Substandard 29,204 9,382 2,391 40,977 29,255 8,997 2,847 41,099 Doubtful 405 — 631 1,036 411 — 1,521 1,932 Loss — — — — — — — — Total loans $ 1,425,758 $ 115,514 $ 370,166 $ 1,911,438 $ 1,356,709 $ 98,341 $ 350,975 $ 1,806,025 Residential and Consumer Credit Quality Indicators March 31, 2022 December 31, 2021 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 64,554 $ 5,275 $ 69,829 $ 75,692 $ 8,869 $ 84,561 Special Mention 145 — 145 145 — 145 Substandard 3,918 — 3,918 3,975 — 3,975 Doubtful — — — 175 — 175 Loss — — — — — — Total loans $ 68,617 $ 5,275 $ 73,892 $ 79,987 $ 8,869 $ 88,856 Loan portfolio aging analysis When a loan is 15 days past due, the Company sends the borrower a late notice. The Company attempts to contact the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company mails the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency and ensure the borrower understands the terms of the loan. If necessary, after the 90th day of delinquency, the Company may take other appropriate legal action. A summary report of all loans 30 days or more past due is provided to the Board of Directors of the Company periodically. Loans greater than 90 days past due are generally put on nonaccrual status. A nonaccrual loan is restored to accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt. A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms. Loans that are granted payment deferrals under the CARES Act are not required to be reported as past due or placed on non-accrual status if the criteria under section 4013 of the CARES Act is met. As of March 31, 2022, no loans remained on active deferral under the CARES Act. The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of March 31, 2022 and December 31, 2021: March 31, 2022 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 1 $ — $ 834 $ 835 $ 67,782 $ 68,617 Commercial real estate — — 3,368 3,368 1,422,390 1,425,758 Construction — — 9,382 9,382 106,132 115,514 Commercial business 2,627 — 567 3,194 366,972 370,166 Consumer 3 — — 3 5,272 5,275 Total loans $ 2,631 $ — $ 14,151 $ 16,782 $ 1,968,548 $ 1,985,330 December 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 873 $ — $ 878 $ 1,751 $ 78,236 $ 79,987 Commercial real estate 2,186 10,500 4,244 16,930 1,339,779 1,356,709 Construction — — 8,997 8,997 89,344 98,341 Commercial business 1,995 1,483 1,469 4,947 346,028 350,975 Consumer — 3 — 3 8,866 8,869 Total loans $ 5,054 $ 11,986 $ 15,588 $ 32,628 $ 1,862,253 $ 1,894,881 There was one loan, totaling $0.3 million, delinquent greater than 90 days and still accruing interest as of March 31, 2022. The delinquency for this particular loan was a result of a closing delay. There were two loans, totaling $1.1 million, delinquent greater than 90 days and still accruing interest as of December 31, 2021. The delinquencies for these particular loans was a result of an administrative delay. Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In thousands) Residential real estate $ 2,181 $ 2,380 Commercial real estate 3,365 3,482 Commercial business 817 1,728 Construction 9,382 8,997 Total $ 15,745 $ 16,587 Interest income on loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the three months ended March 31, 2022 and 2021 was $0.2 million and $0.4 million, respectively. There was no interest income recognized on these loans for the three months ended March 31, 2022 and 2021. At March 31, 2022 and December 31, 2021, there were no commitments to lend additional funds to any borrower on nonaccrual status. Nonaccrual loans with no specific reserve totaled $13.4 million and $14.2 million at March 31, 2022 and December 31, 2021, respectively, as these loans were deemed to be adequately collateralized. Impaired loans An impaired loan is generally one for which it is probable, based on current information, that the Company will not collect all the amounts due in accordance with the contractual terms of the loan. Impaired loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it evaluates whether a specific valuation allowance is required for that portion of the asset that is estimated to be impaired. The following table summarizes impaired loans by portfolio segment as of March 31, 2022 and December 31, 2021: Carrying Amount Unpaid Principal Balance Associated Allowance March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 1,640 $ 1,851 $ 1,814 $ 2,038 $ — $ — Commercial real estate 8,254 8,338 8,625 8,698 — — Construction 9,382 8,997 9,382 8,997 — — Commercial business 1,021 1,938 1,376 2,582 — — Total impaired loans without a valuation allowance 20,297 21,124 21,197 22,315 — — Impaired loans with a valuation allowance: Residential real estate $ 2,278 $ 2,299 $ 2,288 $ 2,304 $ 211 $ 261 Commercial real estate 21,355 21,328 21,394 21,367 2,497 2,520 Commercial business 2,001 2,430 2,001 2,429 74 87 Total impaired loans with a valuation allowance 25,634 26,057 25,683 26,100 2,782 2,868 Total impaired loans $ 45,931 $ 47,181 $ 46,880 $ 48,415 $ 2,782 $ 2,868 The following tables summarize the average carrying amount of impaired loans and interest income recognized on impaired loans by portfolio segment for the three months ended March 31, 2022 and 2021: Average Carrying Amount Interest Income Recognized Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2022 2021 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 1,647 $ 4,317 $ — $ 21 Commercial real estate 8,297 8,049 70 35 Commercial business 1,039 1,812 5 4 Construction 9,093 8,997 — — Total impaired loans without a valuation allowance 20,076 23,175 75 60 Impaired loans with a valuation allowance: Residential real estate $ 2,289 $ — $ 12 $ — Commercial real estate 21,348 30,107 92 498 Commercial business 2,244 3,038 14 59 Total impaired loans with a valuation allowance 25,881 33,145 118 557 Total impaired loans $ 45,957 $ 56,320 $ 193 $ 617 Troubled debt restructurings ("TDRs") Modifications to a loan are considered to be a troubled debt restructuring when both of the following conditions are met: 1) the borrower is experiencing financial difficulties and 2) the modification constitutes a concession that is not in line with market rates and/or terms. Modified terms are dependent upon the financial position and needs of the individual borrower. Troubled debt restructurings are classified as impaired loans. If a performing loan is restructured into a TDR, it remains in performing status. If a nonperforming loan is restructured into a TDR, it continues to be carried in nonaccrual status. Nonaccrual classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of six months. Loans classified as TDRs totaled $25.3 million at March 31, 2022 and $25.8 million at December 31, 2021. The following tables provide information on loans that were modified as TDRs during the periods indicated. There were no loans modified as TDRs during the three months ended March 31, 2022. Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2022 2021 2022 2021 2022 2021 Three Months Ended March 31, Residential real estate — 1 $ — $ 631 $ — $ 631 Total — 1 $ — $ 631 $ — $ 631 At March 31, 2022 and December 31, 2021, there were five nonaccrual loans identified as TDRs totaling $1.9 million and five nonaccrual loans identified as TDRs totaling $2.0 million, respectively. There were no loans modified in a troubled debt restructuring that re-defaulted during the three months ended March 31, 2022 and March 31, 2021. The following table provides information on how loans were modified as TDRs during the three months ended March 31, 2022 and March 31, 2021. Three Months Ended March 31, 2022 2021 (In thousands) Payment concession $ — $ 631 Total $ — $ 631 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The Company has 10,000,000 shares authorized and 7,761,338 shares issued and outstanding at March 31, 2022 and 10,000,000 shares authorized and 7,803,166 shares issued and outstanding at December 31, 2021. The Company's stock is traded on the NASDAQ stock market under the ticker symbol BWFG. Dividends The Company’s shareholders are entitled to dividends when and if declared by the Board of Directors out of funds legally available. The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Parent Corporation. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Issuer Purchases of Equity Securities On December 19, 2018, the Company's Board of Directors authorized a share repurchase program of up to 400,000 shares of the Company's Common Stock and, on October 27, 2021, the Company’ Board of Directors authorized the repurchase of an additional 200,000 shares under its share repurchase program. The Company intends to accomplish the share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The share repurchase plan does not obligate the Company to acquire any particular amount of Common Stock, and it may be modified or suspended at any time at the Company's discretion. During the three months ended March 31, 2022, the Company purchased 112,829 shares of its Common Stock at a weighted average price of $34.01 per share. During the year ended December 31, 2021, the Company purchased 190,770 shares of its Common Stock at a weighted average price of $26.62 per share. |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income | Comprehensive IncomeComprehensive income represents the sum of net income and items of other comprehensive income or loss, including net unrealized gains or losses on securities available for sale and net unrealized gains or losses on derivatives. The Company's derivative instruments are utilized to manage economic risks, including interest rate risk. Changes in fair value of the Company's derivatives are primarily driven by changes in interest rates and recognized in other comprehensive income. The Company's current derivative positions will cause a decrease to other comprehensive income in a falling interest rate environment and an increase in a rising interest rate environment. The Company’s total comprehensive income or loss for the three months ended March 31, 2022 and March 31, 2021 is reported in the Consolidated Statements of Comprehensive Income. The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax for the three months ended March 31, 2022 and March 31, 2021: Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2021 $ 1,651 $ (10,212) $ (8,561) Other comprehensive (loss) income before reclassifications, net of tax (3,703) 7,901 4,198 Amounts reclassified from accumulated other comprehensive income, net of tax — 654 654 Net other comprehensive (loss) income (3,703) 8,555 4,852 Balance at March 31, 2022 $ (2,052) $ (1,657) $ (3,709) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2020 $ 2,744 $ (18,319) $ (15,575) Other comprehensive (loss) income before reclassifications, net of tax (798) 7,783 6,985 Amounts reclassified from accumulated other comprehensive income, net of tax — 717 717 Net other comprehensive (loss) income (798) 8,500 7,702 Balance at March 31, 2021 $ 1,946 $ (9,819) $ (7,873) The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended March 31, Associated Line Item in the Consolidated Statements of Income 2022 2021 (In thousands) Derivatives: Unrealized losses on derivatives $ (842) $ (922) Interest expense on borrowings Tax benefit 188 205 Income tax expense Net of tax $ (654) $ (717) |
Earnings per share ("EPS")
Earnings per share ("EPS") | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share ("EPS") | Earnings per share ("EPS") Unvested restricted stock awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s unvested restricted stock awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating unvested restricted stock awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended 2022 2021 (In thousands, except per share data) Net income $ 8,212 $ 5,690 Dividends to participating securities (1) (35) (22) Undistributed earnings allocated to participating securities (1) (146) (94) Net income for earnings per share calculation $ 8,031 $ 5,574 Weighted average shares outstanding, basic 7,637 7,759 Effect of dilutive equity-based awards (2) 82 42 Weighted average shares outstanding, diluted 7,719 7,801 Net earnings per common share: Basic earnings per common share $ 1.05 $ 0.72 Diluted earnings per common share $ 1.04 $ 0.71 (1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Regulatory Matters The Federal Reserve, the FDIC and the other federal and state bank regulatory agencies establish regulatory capital guidelines for U.S. banking organizations. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier 1 risk-based capital ratio of 6.0%, a minimum Common Equity Tier 1 risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a capital conservation buffer consisting of common equity in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk-weighted assets, resulting in a requirement for the Company and the Bank to effectively maintain Common Equity Tier 1, Tier 1 and total capital ratios of 7.0%, 8.5% and 10.5%, respectively. The Company and the Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends, pay discretionary bonuses, or to engage in share repurchases. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. As of March 31, 2022, the Bank and Company met all capital adequacy requirements to which they are subject. There are no conditions or events since then that management believes have changed this conclusion. The capital amounts and ratios for the Bank and the Company at March 31, 2022 and December 31, 2021 were as follows: Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank March 31, 2022 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 241,346 11.20 % $ 150,824 7.00 % $ 140,050 6.50 % Total Capital to Risk-Weighted Assets 258,522 12.00 % 226,235 10.50 % 215,462 10.00 % Tier I Capital to Risk-Weighted Assets 241,346 11.20 % 183,143 8.50 % 172,370 8.00 % Tier I Capital to Average Assets 241,346 9.80 % 98,486 4.00 % 123,180 5.00 % Bankwell Financial Group, Inc. March 31, 2022 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 210,782 9.78 % $ 150,824 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 263,487 12.23 % 226,235 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 210,782 9.78 % 183,143 8.50 % N/A N/A Tier I Capital to Average Assets 210,782 8.55 % 98,658 4.00 % N/A N/A Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2021 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 232,106 11.18 % $ 145,353 7.00 % $ 134,971 6.50 % Total Capital to Risk-Weighted Assets 249,178 12.00 % 218,030 10.50 % 207,648 10.00 % Tier I Capital to Risk-Weighted Assets 232,106 11.18 % 176,500 8.50 % 166,118 8.00 % Tier I Capital to Average Assets 232,106 9.94 % 93,392 4.00 % 116,740 5.00 % Bankwell Financial Group, Inc. December 31, 2021 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 207,393 9.97 % $ 145,629 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 260,024 12.50 % 218,443 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 207,393 9.97 % 176,835 8.50 % N/A N/A Tier I Capital to Average Assets 207,393 8.87 % 93,534 4.00 % N/A N/A Regulatory Restrictions on Dividends The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Parent Corporation. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Reserve Requirements on Cash The Bank was not required to maintain a minimum reserve balance in the Federal Reserve Bank (FRB) at March 31, 2022 or December 31, 2021 as the FRB has waived this requirement due to the COVID-19 pandemic. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits At March 31, 2022 and December 31, 2021, deposits consisted of the following: March 31, 2022 December 31, 2021 (In thousands) Noninterest bearing demand deposit accounts $ 412,985 $ 398,956 Interest bearing accounts: NOW 112,567 119,479 Money market 996,458 954,674 Savings 197,961 193,631 Time certificates of deposit 446,233 457,258 Total interest bearing accounts 1,753,219 1,725,042 Total deposits $ 2,166,204 $ 2,123,998 Maturities of time certificates of deposit as of March 31, 2022 and December 31, 2021 are summarized below: March 31, 2022 December 31, 2021 (In thousands) 2022 $ 125,754 $ 167,147 2023 202,875 179,520 2024 111,428 110,449 2025 6,015 33 2026 109 109 2027 52 — Total $ 446,233 $ 457,258 The aggregate amount of individual certificate accounts, including brokered deposits with balances of $250,000 or more, was approximately $303.2 million at March 31, 2022 and $305.7 million at December 31, 2021. Brokered certificates of deposits totaled $249.4 million at March 31, 2022 and $249.4 million at December 31, 2021. There were no certificates of deposits from national listing services at March 31, 2022 or December 31, 2021. Brokered money market accounts totaled $100.3 million at March 31, 2022 and $104.0 million at December 31, 2021. The following table summarizes interest expense on deposits by account type for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In thousands) NOW $ 47 $ 43 Money market 1,180 950 Savings 101 125 Time certificates of deposits 878 1,996 Total interest expense on deposits $ 2,206 $ 3,114 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity award plans The Company has stock options or unvested restricted stock outstanding under two equity award plans, which are collectively referred to as the “Plan”. The current plan under which any future issuances of equity awards will be made is the 2012 BNC Financial Group, Inc. Stock Plan, or the “2012 Plan,” as amended from time-to-time. All equity awards made under the 2012 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of stock options or restricted stock. At March 31, 2022, there were 473,220 shares reserved for future issuance under the 2012 Plan. Stock Options : The Company accounts for stock options based on the fair value at the date of grant and records an expense over the vesting period of such awards on a straight line basis. There were no options granted during the three months ended March 31, 2022. A summary of the status of outstanding stock options for the three months ended March 31, 2022 is presented below: Three Months Ended March 31, 2022 Number of Shares Weighted Average Exercise Price Options outstanding at beginning of period 11,680 $ 17.37 Exercised (2,000) 15.00 Options outstanding at end of period 9,680 17.86 Options exercisable at end of period 9,680 17.86 Intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The total intrinsic value of share options exercised during the three months ended March 31, 2022 was $39 thousand. The exercise price for the 9,680 options exercisable at March 31, 2022 was $17.86 per share. The weighted average remaining contractual life for these options was 1.1 years at March 31, 2022. At March 31, 2022, as all awarded options have vested, all of the outstanding options are exercisable, and the aggregate intrinsic value of these options was $155 thousand. Restricted Stock : Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over one The following table presents the activity for restricted stock for the three months ended March 31, 2022: Three Months Ended March 31, 2022 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 190,359 (1) $ 24.57 Granted 69,001 (2) 34.22 Vested (54,667) (3) 24.17 Unvested at end of period 204,693 27.93 (1) Includes 29,462 shares of performance based restricted stock (2) Includes 20,905 shares of performance based restricted stock (3) Includes 13,798 shares of performance based restricted stock The total fair value of restricted stock awards vested during the three months ended March 31, 2022 was $1.8 million. The Company's restricted stock expense for the three months ended March 31, 2022 and March 31, 2021 was $0.5 million and $0.4 million, respectively. At March 31, 2022, there was $4.9 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.8 years. Performance Based Restricted Stock : The Company has 36,569 shares of performance based restricted stock outstanding as of March 31, 2022 pursuant to the Company’s 2012 Stock Plan. The awards vest over a three year service period, provided certain performance metrics are met. The share quantity that ultimately vests can range between 0% and 200%, which is dependent on the degree to which the performance metrics are met. The Company records an expense over the vesting period based on (a) the probability that the performance metric will be met and (b) the fair market value of the Company’s stock at the date of the grant. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company manages economic risks, including interest rate, liquidity, and credit risk, by managing the amount, sources, and duration of its funding along with the use of interest rate derivative financial instruments, namely interest rate swaps. The Company does not use derivatives for speculative purposes. As of March 31, 2022, the Company was a party to eight interest rate swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to the variability of the future cash flows attributable to the contractually specified interest rates. The notional amount for each swap is $25 million and in each case, the Company has entered into pay-fixed interest rate swaps to convert rolling 90 days Federal Home Loan Bank advances or brokered deposits. As of March 31, 2022, the Company entered into four interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to customers. The Company accounts for all non-borrower related interest rate swaps as effective cash flow hedges. None of the interest rate swap agreements contain any credit risk related contingent features. A hedging instrument is expected at inception to be highly effective at offsetting changes in the hedged transactions attributable to the changes in the hedged risk. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives 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 derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Interest rate swaps with a positive fair value are recorded as other assets and interest rate swaps with a negative fair value are recorded as other liabilities on the Consolidated Balance Sheets. Information about derivative instruments at March 31, 2022 and December 31, 2021 is as follows: As of March 31, 2022 Derivative Assets Derivative Liabilities Original Notional Amount Balance Sheet Location Fair Value Original Notional Amount Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps $ 125,000 Other assets $ 3,637 $ 75,000 Accrued expenses and other liabilities $ (5,773) Derivatives not designated as hedging instruments: Interest rate swaps (1) $ 38,500 Other assets $ 2,000 $ 38,500 Accrued expenses and other liabilities $ (2,000) (1) Represents interest rate swaps with commercial banking customers, which are offset by derivatives with a third party. Accrued interest payable related to interest rate swaps as of March 31, 2022 totaled $0.5 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net liability position, including accrued interest, totaled $2.6 million as of March 31, 2022. As of December 31, 2021 Derivative Assets Derivative Liabilities Original Notional Amount Balance Sheet Location Fair Value Original Notional Amount Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps $ 50,000 Other assets $ 1,043 $ 150,000 Accrued expenses and other liabilities $ (14,195) Derivatives not designated as hedging instruments: Interest rate swaps (1) $ 38,500 Other assets $ 2,585 $ 38,500 Accrued expenses and other liabilities $ (2,585) (1) Represents interest rate swaps with commercial banking customers, which are offset by derivatives with a third party. Accrued interest payable related to interest rate swaps as of December 31, 2021 totaled $0.6 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net liability position, including accrued interest, totaled $13.7 million as of December 31, 2021. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $0.2 million to interest expense during the next 12 months. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes. Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three months ended March 31, 2022 and March 31, 2021: Three Months Ended March 31, (In thousands) 2022 2021 Interest rate swaps designated as cash flow hedges: Unrealized gain recognized in accumulated other comprehensive income before reclassifications $ 10,174 $ 10,011 Amounts reclassified from accumulated other comprehensive income 842 923 Income tax expense on items recognized in accumulated other comprehensive income (2,461) (2,434) Other comprehensive income $ 8,555 $ 8,500 The above unrealized gains and losses are reflective of market interest rates as of the respective balance sheet dates. Generally, a lower interest rate environment will result in a negative impact to comprehensive income whereas a higher interest rate environment will result in a positive impact to comprehensive income. The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at March 31, 2022 and December 31, 2021: March 31, 2022 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 5,549 $ — $ 5,549 $ 1,793 $ — $ 3,756 (1) Includes accrued interest payable totaling $89 thousand. March 31, 2022 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted Net Amount Derivative Liabilities $ 8,190 $ — $ 8,190 $ 1,793 $ 1,548 $ 4,849 (1) Includes accrued interest payable totaling $417 thousand. December 31, 2021 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 3,604 $ — $ 3,604 $ 217 $ — $ 3,387 (1) Includes accrued interest payable totaling $24 thousand. December 31, 2021 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted Net Amount Derivative Liabilities $ 17,338 $ — $ 17,338 $ 217 $ 15,845 $ 1,276 (1) Includes accrued interest payable totaling $558 thousand. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the Consolidated Balance Sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction. The estimated fair value amounts have been measured as of the respective period-ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk. The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 280,471 $ 280,471 $ 280,471 $ — $ — Federal funds sold 19,022 19,022 19,022 — — Marketable equity securities 2,090 2,090 2,090 — — Available for sale securities 98,733 98,733 39,057 59,676 — Held to maturity securities 15,979 16,338 — 46 16,292 Loans receivable, net 1,964,567 1,933,114 — — 1,933,114 Accrued interest receivable 7,733 7,733 — 7,733 — FHLB stock 2,870 2,870 — 2,870 — Servicing asset, net of valuation allowance 792 792 — — 792 Derivative asset 5,637 5,637 — 5,637 — Assets held for sale 2,268 2,268 — — 2,268 Financial Liabilities: Noninterest bearing deposits $ 412,985 $ 412,985 $ — $ 412,985 $ — NOW and money market 1,109,025 1,109,025 — 1,109,025 — Savings 197,961 197,961 — 197,961 — Time deposits 446,233 443,904 — — 443,904 Accrued interest payable 1,353 1,353 — 1,353 — Advances from the FHLB 50,000 50,021 — — 50,021 Subordinated debentures 34,471 32,676 — — 32,676 Servicing liability 12 12 — — 12 Derivative liability 7,773 7,773 — 7,773 — December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 291,598 $ 291,598 $ 291,598 $ — $ — Federal funds sold 53,084 53,084 53,084 — — Marketable equity securities 2,168 2,168 2,168 — — Available for sale securities 90,198 90,198 25,569 64,629 — Held to maturity securities 16,043 18,445 — 52 18,393 Loans receivable, net 1,875,167 1,858,661 — — 1,858,661 Accrued interest receivable 7,512 7,512 — 7,512 — FHLB stock 2,814 2,814 — 2,814 — Servicing asset, net of valuation allowance 818 818 — — 818 Derivative asset 3,628 3,628 — 3,628 — Assets held for sale 2,268 2,268 — — 2,268 Financial Liabilities: Noninterest bearing deposits $ 398,956 $ 398,956 $ — $ 398,956 $ — NOW and money market 1,074,153 1,074,153 — 1,074,153 — Savings 193,631 193,631 — 193,631 — Time deposits 457,258 457,759 — — 457,759 Accrued interest payable 1,234 1,234 — 1,234 — Advances from the FHLB 50,000 49,996 — — 49,996 Subordinated debentures 34,441 34,509 — — 34,509 Servicing liability 14 14 — — 14 Derivative liability 16,780 16,780 — 16,780 — The following methods and assumptions were used by management in estimating the fair value of its financial instruments: Marketable equity securities and available for sale securities: Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The majority of the available for sale securities are considered to be Level 2 as other observable inputs are utilized, such as quoted prices for similar securities. Level 1 investment securities include investments in U.S. treasury notes and in marketable equity securities for which a quoted price is readily available in the market. Derivative asset (liability): The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company also considers the creditworthiness of each counterparty for assets and the creditworthiness of the Company for liabilities. Assets held for sale: Assets held for sale (excluding loans) consist of real estate properties that are expected to sell within a year. The assets are reported at the lower of the carrying amount or fair value less costs to sell. The fair value represents the price that would be received to sell the asset (the exit price). Servicing asset (liability): Servicing assets and liabilities do not trade in an active, open market with readily observable prices. The Company estimates the fair value of servicing assets and liabilities using discounted cash flow models, incorporating numerous assumptions from the perspective of a market participant, including market discount rates. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company is required to account for certain assets at fair value on a recurring or non-recurring basis. The Company determines fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time they are susceptible to material near-term changes. Financial instruments measured at fair value on a recurring basis The following table details the financial instruments carried at fair value on a recurring basis at March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2022 and for the year ended December 31, 2021. Fair Value (In thousands) Level 1 Level 2 Level 3 March 31, 2022: Marketable equity securities $ 2,090 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 39,057 44,305 — Corporate bonds — 15,371 — Derivative asset — 5,637 — Derivative liability — 7,773 — December 31, 2021: Marketable equity securities $ 2,168 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 25,569 49,620 — Corporate bonds — 15,009 — Derivative asset — 3,628 — Derivative liability — 16,780 — Marketable equity securities and available for sale investment securities: The fair value of the Company’s investment securities is estimated by using pricing models or quoted prices of securities with similar characteristics (i.e., matrix pricing) and is classified within Level 1 or Level 2 of the valuation hierarchy. The pricing is primarily sourced from third-party pricing services overseen by management. Derivative assets and liabilities: The Company’s derivative assets and liabilities consist of transactions as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy. Financial instruments measured at fair value on a nonrecurring basis Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following table details the financial instruments measured at fair value on a nonrecurring basis at March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 March 31, 2022: Impaired loans $ — $ — $ 43,149 Servicing asset, net — — 780 December 31, 2021: Impaired loans $ — $ — $ 44,313 Servicing asset, net — — 804 Assets held for sale — — 2,268 The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at March 31, 2022 and December 31, 2021: Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) March 31, 2022: Impaired loans $ 18,898 Appraisals Discount to appraised value 8.00% 24,251 Discounted cash flows Discount rate 3.00 - 6.50% $ 43,149 Servicing asset, net $ 780 Discounted cash flows Discount rate 10.00% (1) Prepayment rate 3.00 - 17.00% December 31, 2021: Impaired loans $ 18,548 Appraisals Discount to appraised value 8.00% 25,765 Discounted cash flows Discount rate 3.00 - 6.75% $ 44,313 Servicing asset, net $ 804 Discounted cash flows Discount rate 10.00% (2) Prepayment rate 3.00 - 17.00% Assets held for sale $ 2,268 Sale & income Adjustment to N/A (1) Servicing liabilities totaling $12 thousand were valued using a discount rate of 1.6%. (2) Servicing liabilities totaling $14 thousand were valued using a discount rate of 0.8%. Impaired loans : Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with ASC 310-10 when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or other assumptions. Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. For those loans where the primary source of repayment is cash flow from operations, adjustments include impairment amounts calculated based on the perceived collectability of interest payments on the basis of a discounted cash flow analysis utilizing a discount rate equivalent to the original note rate. Servicing assets and liabilities: When loans are sold, on a servicing retained basis, servicing rights are initially recorded at fair value. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized. The fair value of servicing assets and liabilities are not measured on an ongoing basis but are subject to fair value adjustments when and if the assets or liabilities are deemed to be impaired. Assets held for sale: Assets held for sale (excluding loans) consist of real estate properties that are expected to sell within a year. The assets are reported at the lower of the carrying amount or fair value less costs to sell. The fair value represents the price that would be received to sell the asset (the exit price). |
Subordinated debentures
Subordinated debentures | 3 Months Ended |
Mar. 31, 2022 | |
Subordinated Borrowings [Abstract] | |
Subordinated debentures | Subordinated debentures On August 19, 2015, the Company completed a private placement of $25.5 million in aggregate principal amount of fixed rate subordinated notes (the “2015 Notes”) to certain institutional investors. The 2015 Notes were non-callable for five years, had a stated maturity of August 15, 2025, and bore interest at a quarterly pay fixed rate of 5.75% per annum to the maturity date. The 2015 Notes became callable, in part or in whole, beginning August 2020. On May 15, 2021, the Company repaid $10.0 million of the 2015 Notes and on November 15, 2021, the Company repaid the remaining $15.5 million of the 2015 Notes. On October 14, 2021, the Company completed a private placement of a $35.0 million fixed-to-floating rate subordinated note (the “2021 Note”) to an institutional accredited investor. The Company used the net proceeds to repay the 2015 Notes and intends to use the remaining proceeds for general corporate purposes. The 2021 Note bears interest at a fixed rate of 3.25% per year until October 14, 2026. Thereafter, the interest rate will reset quarterly at a variable rate equal to the then current three-month term SOFR plus 233 basis points. The 2021 Note has a stated maturity of October 15, 2031 and is non-callable for five years. Beginning October 15, 2026, the Company may redeem the 2021 Note, in whole or in part, at its option. The 2021 Note is not redeemable at the option of the holder. The 2021 Note has been structured to qualify for the Company as Tier 2 capital under regulatory guidelines. The Company incurred certain costs associated with the issuance of its subordinated debt. The Company capitalized these costs and they have been presented within subordinated debentures on the consolidated balance sheets. At March 31, 2022 and December 31, 2021, unamortized debt issuance costs were $0.5 million and $0.6 million, respectively. Debt issuance costs amortize over the expected life of the related debt. For the three months ended March 31, 2022 and 2021 the amortization expense for debt issuance costs were $30 thousand and $13 thousand, respectively, and were recognized as an increase to interest expense on borrowings within the consolidated statements of income. The Company recognized $0.3 million and $0.4 million in interest expense related to its subordinated debt for the three month periods ended March 31, 2022 and 2021, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn April 27, 2022, the Company’s Board of Directors declared a $0.20 per share cash dividend, payable on May 23, 2022 to shareholders of record on May 13, 2022. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, the valuation of derivative instruments, investment securities valuation, evaluation of investment securities for other than temporary impairment and deferred income taxes valuation. |
Basis of consolidated financial statement presentation | Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2021. |
Common Shares Repurchases | Common Share Repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. |
Reclassification | Reclassification Certain prior period amounts may be reclassified to conform to the 2022 financial statement presentation. These reclassifications only change the reporting categories and do not affect the consolidated results of operations or consolidated financial position of the Company. |
Recent accounting pronouncements | Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): "Troubled Debt Restructurings and Vintage Disclosures.” This ASU eliminates the TDR recognition and measurement guidance and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether a modification represents a new loan or a continuation of an existing loan. In addition, this ASU enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, this ASU requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. For entities that have adopted the amendments in update 2016-13, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted the amendments in update 2016-13, the effective dates for the amendments in this update are the same as the effective dates in Update 2016-13. The Company has not yet adopted this accounting standard as ASU 2016-13 has not been adopted. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On July 17, 2019, the FASB proposed deferring the effective date of ASC 326 for smaller reporting companies as defined by the SEC. The FASB proposed a three year deferral for smaller reporting companies, with an effective date of January 1, 2023. On October 16, 2019, the FASB voted in favor of finalizing its proposal to defer the effective date of this standard. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company qualifies to defer the adoption of this standard and has not yet adopted this standard. Management continues to evaluate the impact of its future adoption of this guidance on the Company’s financial statements. ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB voted in favor of a proposal to defer the effective date of this standard in the same manner it is deferring the effective date of ASC 326. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company qualifies to defer the adoption of this standard and has not yet adopted this standard. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities | The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at March 31, 2022 were as follows: March 31, 2022 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Due from one through five years $ 40,944 $ — $ (1,887) $ 39,057 Due from five through ten years 33,689 — (260) 33,429 Due after ten years 11,240 47 (411) 10,876 Total U.S. Government and agency obligations 85,873 47 (2,558) 83,362 Corporate bonds Due from five through ten years 14,000 90 (253) 13,837 Due after ten years 1,500 34 — 1,534 Total corporate bonds 15,500 124 (253) 15,371 Total available for sale securities $ 101,373 $ 171 $ (2,811) $ 98,733 Held to maturity securities: State agency and municipal obligations Due after ten years $ 15,937 $ 1,018 $ (663) $ 16,292 Government-sponsored mortgage backed securities No contractual maturity 42 4 — 46 Total held to maturity securities $ 15,979 $ 1,022 $ (663) $ 16,338 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2021 were as follows: December 31, 2021 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Due from one through five years $ 25,747 $ 3 $ (181) $ 25,569 Due from five through ten years 16,540 866 — 17,406 Due after ten years 31,284 988 (58) 32,214 Total U.S. Government and agency obligations 73,571 1,857 (239) 75,189 Corporate bonds Due from five through ten years 13,000 429 (10) 13,419 Due after ten years 1,500 90 — 1,590 Total corporate bonds 14,500 519 (10) 15,009 Total available for sale securities $ 88,071 $ 2,376 $ (249) $ 90,198 Held to maturity securities: State agency and municipal obligations Due after ten years $ 15,998 $ 2,601 $ (206) $ 18,393 Government-sponsored mortgage backed securities No contractual maturity 45 7 — 52 Total held to maturity securities $ 16,043 $ 2,608 $ (206) $ 18,445 |
Schedule of fair value and related unrealized losses of temporarily impaired investment securities, aggregated by investment category | The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021: Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Percent Fair Value Unrealized Percent Fair Value Unrealized Percent (Dollars in thousands) March 31, 2022 U.S. Government and agency obligations $ 79,507 $ (2,558) 3.12 % $ — $ — — % $ 79,507 $ (2,558) 3.12 % Corporate bonds 9,747 (253) 2.53 — — — 9,747 (253) 2.53 State agency and municipal obligations — — — 3,971 (663) 14.30 3,971 (663) 14.30 Total investment securities $ 89,254 $ (2,811) 3.05 % $ 3,971 $ (663) 14.30 % $ 93,225 $ (3,474) 3.59 % Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Percent Fair Value Unrealized Percent Fair Value Unrealized Percent (Dollars in thousands) December 31, 2021 U.S. Government and agency obligations $ 28,121 $ (239) 0.84 % $ — $ — — % $ 28,121 $ (239) 0.84 % Corporate bonds 2,990 (10) 0.35 — — — 2,990 (10) 0.35 State agency and municipal obligations 4,443 (206) 4.44 — — — 4,443 (206) 4.44 Total investment securities $ 35,554 $ (455) 1.27 % $ — $ — — % $ 35,554 $ (455) 1.27 % |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of loan portfolio | The following table sets forth a summary of the loan portfolio at March 31, 2022 and December 31, 2021: (In thousands) March 31, 2022 December 31, 2021 Real estate loans: Residential $ 68,617 $ 79,987 Commercial 1,425,758 1,356,709 Construction 115,514 98,341 1,609,889 1,535,037 Commercial business (1) 370,166 350,975 Consumer 5,275 8,869 Total loans 1,985,330 1,894,881 Allowance for loan losses (17,141) (16,902) Deferred loan origination fees, net (3,622) (2,812) Loans receivable, net $ 1,964,567 $ 1,875,167 (1) The March 31, 2022 and December 31, 2021 balances include $0.1 million and $0.2 million, respectively, of Paycheck Protection Program ("PPP") loans made under the CARES Act. |
Schedule of portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio | The following tables set forth the activity in the Company’s allowance for loan losses for the three months ended March 31, 2022 and 2021, by portfolio segment: Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended March 31, 2022 Beginning balance $ 504 $ 12,751 $ 4 $ 3,590 $ 53 $ 16,902 Charge-offs — — — — (4) (4) Recoveries — — — 13 1 14 (Credits) provisions (146) 690 52 (349) (18) 229 Ending balance $ 358 $ 13,441 $ 56 $ 3,254 $ 32 $ 17,141 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended March 31, 2021 Beginning balance $ 610 $ 16,425 $ 221 $ 3,753 $ — $ 21,009 Charge-offs — (163) — — (14) (177) Recoveries — — — — 9 9 (Credits) provisions (109) (3) 76 (301) 41 (296) Ending balance $ 501 $ 16,259 $ 297 $ 3,452 $ 36 $ 20,545 Loans evaluated for impairment and the related allowance for loan losses as of March 31, 2022 and December 31, 2021 were as follows: Portfolio Allowance (In thousands) March 31, 2022 Loans individually evaluated for impairment: Residential real estate $ 3,918 $ 211 Commercial real estate 29,609 2,497 Construction 9,382 — Commercial business 3,022 74 Subtotal 45,931 2,782 Loans collectively evaluated for impairment: Residential real estate 64,699 147 Commercial real estate 1,396,149 10,944 Construction 106,132 56 Commercial business 367,144 3,180 Consumer 5,275 32 Subtotal 1,939,399 14,359 Total $ 1,985,330 $ 17,141 Portfolio Allowance (In thousands) December 31, 2021 Loans individually evaluated for impairment: Residential real estate $ 4,150 $ 261 Commercial real estate 29,666 2,520 Construction 8,997 — Commercial business 4,368 87 Subtotal 47,181 2,868 Loans collectively evaluated for impairment: Residential real estate 75,837 243 Commercial real estate 1,327,043 10,231 Construction 89,344 4 Commercial business 346,607 3,503 Consumer 8,869 53 Subtotal 1,847,700 14,034 Total $ 1,894,881 $ 16,902 |
Schedule of loan portfolio quality indicators by portfolio segment | The following tables present credit risk ratings by loan segment as of March 31, 2022 and December 31, 2021: Commercial Credit Quality Indicators March 31, 2022 December 31, 2021 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,376,769 $ 106,132 $ 365,690 $ 1,848,591 $ 1,307,992 $ 89,344 $ 345,153 $ 1,742,489 Special Mention 19,380 — 1,454 20,834 19,051 — 1,454 20,505 Substandard 29,204 9,382 2,391 40,977 29,255 8,997 2,847 41,099 Doubtful 405 — 631 1,036 411 — 1,521 1,932 Loss — — — — — — — — Total loans $ 1,425,758 $ 115,514 $ 370,166 $ 1,911,438 $ 1,356,709 $ 98,341 $ 350,975 $ 1,806,025 Residential and Consumer Credit Quality Indicators March 31, 2022 December 31, 2021 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 64,554 $ 5,275 $ 69,829 $ 75,692 $ 8,869 $ 84,561 Special Mention 145 — 145 145 — 145 Substandard 3,918 — 3,918 3,975 — 3,975 Doubtful — — — 175 — 175 Loss — — — — — — Total loans $ 68,617 $ 5,275 $ 73,892 $ 79,987 $ 8,869 $ 88,856 |
Schedule of information with respect to our loan portfolio delinquencies by portfolio segment and amount | The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of March 31, 2022 and December 31, 2021: March 31, 2022 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 1 $ — $ 834 $ 835 $ 67,782 $ 68,617 Commercial real estate — — 3,368 3,368 1,422,390 1,425,758 Construction — — 9,382 9,382 106,132 115,514 Commercial business 2,627 — 567 3,194 366,972 370,166 Consumer 3 — — 3 5,272 5,275 Total loans $ 2,631 $ — $ 14,151 $ 16,782 $ 1,968,548 $ 1,985,330 December 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 873 $ — $ 878 $ 1,751 $ 78,236 $ 79,987 Commercial real estate 2,186 10,500 4,244 16,930 1,339,779 1,356,709 Construction — — 8,997 8,997 89,344 98,341 Commercial business 1,995 1,483 1,469 4,947 346,028 350,975 Consumer — 3 — 3 8,866 8,869 Total loans $ 5,054 $ 11,986 $ 15,588 $ 32,628 $ 1,862,253 $ 1,894,881 |
Schedule of nonaccrual loans by portfolio segment | The following is a summary of nonaccrual loans by portfolio segment as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In thousands) Residential real estate $ 2,181 $ 2,380 Commercial real estate 3,365 3,482 Commercial business 817 1,728 Construction 9,382 8,997 Total $ 15,745 $ 16,587 |
Schedule of summarizes impaired loans | The following table summarizes impaired loans by portfolio segment as of March 31, 2022 and December 31, 2021: Carrying Amount Unpaid Principal Balance Associated Allowance March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 1,640 $ 1,851 $ 1,814 $ 2,038 $ — $ — Commercial real estate 8,254 8,338 8,625 8,698 — — Construction 9,382 8,997 9,382 8,997 — — Commercial business 1,021 1,938 1,376 2,582 — — Total impaired loans without a valuation allowance 20,297 21,124 21,197 22,315 — — Impaired loans with a valuation allowance: Residential real estate $ 2,278 $ 2,299 $ 2,288 $ 2,304 $ 211 $ 261 Commercial real estate 21,355 21,328 21,394 21,367 2,497 2,520 Commercial business 2,001 2,430 2,001 2,429 74 87 Total impaired loans with a valuation allowance 25,634 26,057 25,683 26,100 2,782 2,868 Total impaired loans $ 45,931 $ 47,181 $ 46,880 $ 48,415 $ 2,782 $ 2,868 The following tables summarize the average carrying amount of impaired loans and interest income recognized on impaired loans by portfolio segment for the three months ended March 31, 2022 and 2021: Average Carrying Amount Interest Income Recognized Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2022 2021 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 1,647 $ 4,317 $ — $ 21 Commercial real estate 8,297 8,049 70 35 Commercial business 1,039 1,812 5 4 Construction 9,093 8,997 — — Total impaired loans without a valuation allowance 20,076 23,175 75 60 Impaired loans with a valuation allowance: Residential real estate $ 2,289 $ — $ 12 $ — Commercial real estate 21,348 30,107 92 498 Commercial business 2,244 3,038 14 59 Total impaired loans with a valuation allowance 25,881 33,145 118 557 Total impaired loans $ 45,957 $ 56,320 $ 193 $ 617 |
Schedule of loans whose terms were modified as TDRs during the periods | The following tables provide information on loans that were modified as TDRs during the periods indicated. There were no loans modified as TDRs during the three months ended March 31, 2022. Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2022 2021 2022 2021 2022 2021 Three Months Ended March 31, Residential real estate — 1 $ — $ 631 $ — $ 631 Total — 1 $ — $ 631 $ — $ 631 |
Schedule of information on how loans were modified as a TDR | The following table provides information on how loans were modified as TDRs during the three months ended March 31, 2022 and March 31, 2021. Three Months Ended March 31, 2022 2021 (In thousands) Payment concession $ — $ 631 Total $ — $ 631 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax for the three months ended March 31, 2022 and March 31, 2021: Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2021 $ 1,651 $ (10,212) $ (8,561) Other comprehensive (loss) income before reclassifications, net of tax (3,703) 7,901 4,198 Amounts reclassified from accumulated other comprehensive income, net of tax — 654 654 Net other comprehensive (loss) income (3,703) 8,555 4,852 Balance at March 31, 2022 $ (2,052) $ (1,657) $ (3,709) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2020 $ 2,744 $ (18,319) $ (15,575) Other comprehensive (loss) income before reclassifications, net of tax (798) 7,783 6,985 Amounts reclassified from accumulated other comprehensive income, net of tax — 717 717 Net other comprehensive (loss) income (798) 8,500 7,702 Balance at March 31, 2021 $ 1,946 $ (9,819) $ (7,873) |
Schedule of reclassified from accumulated other comprehensive income or loss | The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended March 31, Associated Line Item in the Consolidated Statements of Income 2022 2021 (In thousands) Derivatives: Unrealized losses on derivatives $ (842) $ (922) Interest expense on borrowings Tax benefit 188 205 Income tax expense Net of tax $ (654) $ (717) |
Earnings per share ("EPS") (Tab
Earnings per share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding | The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended 2022 2021 (In thousands, except per share data) Net income $ 8,212 $ 5,690 Dividends to participating securities (1) (35) (22) Undistributed earnings allocated to participating securities (1) (146) (94) Net income for earnings per share calculation $ 8,031 $ 5,574 Weighted average shares outstanding, basic 7,637 7,759 Effect of dilutive equity-based awards (2) 82 42 Weighted average shares outstanding, diluted 7,719 7,801 Net earnings per common share: Basic earnings per common share $ 1.05 $ 0.72 Diluted earnings per common share $ 1.04 $ 0.71 (1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Matters [Abstract] | |
Schedule of capital amounts and ratios | The capital amounts and ratios for the Bank and the Company at March 31, 2022 and December 31, 2021 were as follows: Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank March 31, 2022 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 241,346 11.20 % $ 150,824 7.00 % $ 140,050 6.50 % Total Capital to Risk-Weighted Assets 258,522 12.00 % 226,235 10.50 % 215,462 10.00 % Tier I Capital to Risk-Weighted Assets 241,346 11.20 % 183,143 8.50 % 172,370 8.00 % Tier I Capital to Average Assets 241,346 9.80 % 98,486 4.00 % 123,180 5.00 % Bankwell Financial Group, Inc. March 31, 2022 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 210,782 9.78 % $ 150,824 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 263,487 12.23 % 226,235 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 210,782 9.78 % 183,143 8.50 % N/A N/A Tier I Capital to Average Assets 210,782 8.55 % 98,658 4.00 % N/A N/A Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2021 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 232,106 11.18 % $ 145,353 7.00 % $ 134,971 6.50 % Total Capital to Risk-Weighted Assets 249,178 12.00 % 218,030 10.50 % 207,648 10.00 % Tier I Capital to Risk-Weighted Assets 232,106 11.18 % 176,500 8.50 % 166,118 8.00 % Tier I Capital to Average Assets 232,106 9.94 % 93,392 4.00 % 116,740 5.00 % Bankwell Financial Group, Inc. December 31, 2021 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 207,393 9.97 % $ 145,629 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 260,024 12.50 % 218,443 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 207,393 9.97 % 176,835 8.50 % N/A N/A Tier I Capital to Average Assets 207,393 8.87 % 93,534 4.00 % N/A N/A |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Deposit liabilities | At March 31, 2022 and December 31, 2021, deposits consisted of the following: March 31, 2022 December 31, 2021 (In thousands) Noninterest bearing demand deposit accounts $ 412,985 $ 398,956 Interest bearing accounts: NOW 112,567 119,479 Money market 996,458 954,674 Savings 197,961 193,631 Time certificates of deposit 446,233 457,258 Total interest bearing accounts 1,753,219 1,725,042 Total deposits $ 2,166,204 $ 2,123,998 |
Time deposits maturity schedule | Maturities of time certificates of deposit as of March 31, 2022 and December 31, 2021 are summarized below: March 31, 2022 December 31, 2021 (In thousands) 2022 $ 125,754 $ 167,147 2023 202,875 179,520 2024 111,428 110,449 2025 6,015 33 2026 109 109 2027 52 — Total $ 446,233 $ 457,258 |
Interest expense disclosure | The following table summarizes interest expense on deposits by account type for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, 2022 2021 (In thousands) NOW $ 47 $ 43 Money market 1,180 950 Savings 101 125 Time certificates of deposits 878 1,996 Total interest expense on deposits $ 2,206 $ 3,114 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of status of outstanding stock options | A summary of the status of outstanding stock options for the three months ended March 31, 2022 is presented below: Three Months Ended March 31, 2022 Number of Shares Weighted Average Exercise Price Options outstanding at beginning of period 11,680 $ 17.37 Exercised (2,000) 15.00 Options outstanding at end of period 9,680 17.86 Options exercisable at end of period 9,680 17.86 |
Schedule of activity for restricted stock | The following table presents the activity for restricted stock for the three months ended March 31, 2022: Three Months Ended March 31, 2022 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 190,359 (1) $ 24.57 Granted 69,001 (2) 34.22 Vested (54,667) (3) 24.17 Unvested at end of period 204,693 27.93 (1) Includes 29,462 shares of performance based restricted stock (2) Includes 20,905 shares of performance based restricted stock (3) Includes 13,798 shares of performance based restricted stock |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | Information about derivative instruments at March 31, 2022 and December 31, 2021 is as follows: As of March 31, 2022 Derivative Assets Derivative Liabilities Original Notional Amount Balance Sheet Location Fair Value Original Notional Amount Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps $ 125,000 Other assets $ 3,637 $ 75,000 Accrued expenses and other liabilities $ (5,773) Derivatives not designated as hedging instruments: Interest rate swaps (1) $ 38,500 Other assets $ 2,000 $ 38,500 Accrued expenses and other liabilities $ (2,000) (1) Represents interest rate swaps with commercial banking customers, which are offset by derivatives with a third party. As of December 31, 2021 Derivative Assets Derivative Liabilities Original Notional Amount Balance Sheet Location Fair Value Original Notional Amount Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments: Interest rate swaps $ 50,000 Other assets $ 1,043 $ 150,000 Accrued expenses and other liabilities $ (14,195) Derivatives not designated as hedging instruments: Interest rate swaps (1) $ 38,500 Other assets $ 2,585 $ 38,500 Accrued expenses and other liabilities $ (2,585) (1) Represents interest rate swaps with commercial banking customers, which are offset by derivatives with a third party. |
Schedule of changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows | Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three months ended March 31, 2022 and March 31, 2021: Three Months Ended March 31, (In thousands) 2022 2021 Interest rate swaps designated as cash flow hedges: Unrealized gain recognized in accumulated other comprehensive income before reclassifications $ 10,174 $ 10,011 Amounts reclassified from accumulated other comprehensive income 842 923 Income tax expense on items recognized in accumulated other comprehensive income (2,461) (2,434) Other comprehensive income $ 8,555 $ 8,500 |
Summarized gross and net information abut derivative instruments that are offset in the consolidated balance sheets | The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at March 31, 2022 and December 31, 2021: March 31, 2022 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 5,549 $ — $ 5,549 $ 1,793 $ — $ 3,756 (1) Includes accrued interest payable totaling $89 thousand. March 31, 2022 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted Net Amount Derivative Liabilities $ 8,190 $ — $ 8,190 $ 1,793 $ 1,548 $ 4,849 (1) Includes accrued interest payable totaling $417 thousand. December 31, 2021 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Derivative Assets $ 3,604 $ — $ 3,604 $ 217 $ — $ 3,387 (1) Includes accrued interest payable totaling $24 thousand. December 31, 2021 (In thousands) Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities (1) Gross Amounts Offset in the Statement of Financial Position Net Amounts of Liabilities presented in the Statement of Financial Position Financial Instruments Cash Collateral Posted Net Amount Derivative Liabilities $ 17,338 $ — $ 17,338 $ 217 $ 15,845 $ 1,276 (1) Includes accrued interest payable totaling $558 thousand. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and fair values of the Company s financial instruments | The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at March 31, 2022 and December 31, 2021 were as follows: March 31, 2022 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 280,471 $ 280,471 $ 280,471 $ — $ — Federal funds sold 19,022 19,022 19,022 — — Marketable equity securities 2,090 2,090 2,090 — — Available for sale securities 98,733 98,733 39,057 59,676 — Held to maturity securities 15,979 16,338 — 46 16,292 Loans receivable, net 1,964,567 1,933,114 — — 1,933,114 Accrued interest receivable 7,733 7,733 — 7,733 — FHLB stock 2,870 2,870 — 2,870 — Servicing asset, net of valuation allowance 792 792 — — 792 Derivative asset 5,637 5,637 — 5,637 — Assets held for sale 2,268 2,268 — — 2,268 Financial Liabilities: Noninterest bearing deposits $ 412,985 $ 412,985 $ — $ 412,985 $ — NOW and money market 1,109,025 1,109,025 — 1,109,025 — Savings 197,961 197,961 — 197,961 — Time deposits 446,233 443,904 — — 443,904 Accrued interest payable 1,353 1,353 — 1,353 — Advances from the FHLB 50,000 50,021 — — 50,021 Subordinated debentures 34,471 32,676 — — 32,676 Servicing liability 12 12 — — 12 Derivative liability 7,773 7,773 — 7,773 — December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 291,598 $ 291,598 $ 291,598 $ — $ — Federal funds sold 53,084 53,084 53,084 — — Marketable equity securities 2,168 2,168 2,168 — — Available for sale securities 90,198 90,198 25,569 64,629 — Held to maturity securities 16,043 18,445 — 52 18,393 Loans receivable, net 1,875,167 1,858,661 — — 1,858,661 Accrued interest receivable 7,512 7,512 — 7,512 — FHLB stock 2,814 2,814 — 2,814 — Servicing asset, net of valuation allowance 818 818 — — 818 Derivative asset 3,628 3,628 — 3,628 — Assets held for sale 2,268 2,268 — — 2,268 Financial Liabilities: Noninterest bearing deposits $ 398,956 $ 398,956 $ — $ 398,956 $ — NOW and money market 1,074,153 1,074,153 — 1,074,153 — Savings 193,631 193,631 — 193,631 — Time deposits 457,258 457,759 — — 457,759 Accrued interest payable 1,234 1,234 — 1,234 — Advances from the FHLB 50,000 49,996 — — 49,996 Subordinated debentures 34,441 34,509 — — 34,509 Servicing liability 14 14 — — 14 Derivative liability 16,780 16,780 — 16,780 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value on a recurring basis | The following table details the financial instruments carried at fair value on a recurring basis at March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the three months ended March 31, 2022 and for the year ended December 31, 2021. Fair Value (In thousands) Level 1 Level 2 Level 3 March 31, 2022: Marketable equity securities $ 2,090 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 39,057 44,305 — Corporate bonds — 15,371 — Derivative asset — 5,637 — Derivative liability — 7,773 — December 31, 2021: Marketable equity securities $ 2,168 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 25,569 49,620 — Corporate bonds — 15,009 — Derivative asset — 3,628 — Derivative liability — 16,780 — |
Schedule of financial instruments carried at fair value on a nonrecurring basis | The following table details the financial instruments measured at fair value on a nonrecurring basis at March 31, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 March 31, 2022: Impaired loans $ — $ — $ 43,149 Servicing asset, net — — 780 December 31, 2021: Impaired loans $ — $ — $ 44,313 Servicing asset, net — — 804 Assets held for sale — — 2,268 |
Schedule of quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis | The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at March 31, 2022 and December 31, 2021: Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) March 31, 2022: Impaired loans $ 18,898 Appraisals Discount to appraised value 8.00% 24,251 Discounted cash flows Discount rate 3.00 - 6.50% $ 43,149 Servicing asset, net $ 780 Discounted cash flows Discount rate 10.00% (1) Prepayment rate 3.00 - 17.00% December 31, 2021: Impaired loans $ 18,548 Appraisals Discount to appraised value 8.00% 25,765 Discounted cash flows Discount rate 3.00 - 6.75% $ 44,313 Servicing asset, net $ 804 Discounted cash flows Discount rate 10.00% (2) Prepayment rate 3.00 - 17.00% Assets held for sale $ 2,268 Sale & income Adjustment to N/A (1) Servicing liabilities totaling $12 thousand were valued using a discount rate of 1.6%. |
Investment Securities - Summary
Investment Securities - Summary of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale securities: | ||
Amortized cost | $ 101,373 | $ 88,071 |
Gross unrealized gains | 171 | 2,376 |
Gross unrealized losses | (2,811) | (249) |
Available for sale securities | 98,733 | 90,198 |
Held to maturity securities: | ||
Amortized cost | 15,979 | 16,043 |
Gross unrealized gains | 1,022 | 2,608 |
Gross unrealized losses | (663) | (206) |
Fair value | 16,338 | 18,445 |
U.S. Government and agency obligations | ||
Available for sale securities: | ||
Amortized cost, due from one through five years | 40,944 | 25,747 |
Gross unrealized gains, due from one through five years | 0 | 3 |
Gross unrealized losses, due from one through five years | (1,887) | (181) |
Fair value, due from one through five years | 39,057 | 25,569 |
Amortized cost, due from five through ten years | 33,689 | 16,540 |
Gross unrealized gains, due from five through ten years | 0 | 866 |
Gross unrealized losses, due from five through ten years | (260) | 0 |
Fair value, due from five through ten years | 33,429 | 17,406 |
Amortized cost, due after ten years | 11,240 | 31,284 |
Gross unrealized gains, due after ten years | 47 | 988 |
Gross unrealized losses, due after ten years | (411) | (58) |
Fair value, due after ten years | 10,876 | 32,214 |
Amortized cost | 85,873 | 73,571 |
Gross unrealized gains | 47 | 1,857 |
Gross unrealized losses | (2,558) | (239) |
Available for sale securities | 83,362 | 75,189 |
Corporate bonds | ||
Available for sale securities: | ||
Amortized cost, due from five through ten years | 14,000 | 13,000 |
Gross unrealized gains, due from five through ten years | 90 | 429 |
Gross unrealized losses, due from five through ten years | (253) | (10) |
Fair value, due from five through ten years | 13,837 | 13,419 |
Amortized cost, due after ten years | 1,500 | 1,500 |
Gross unrealized gains, due after ten years | 34 | 90 |
Gross unrealized losses, due after ten years | 0 | 0 |
Fair value, due after ten years | 1,534 | 1,590 |
Amortized cost | 15,500 | 14,500 |
Gross unrealized gains | 124 | 519 |
Gross unrealized losses | (253) | (10) |
Available for sale securities | 15,371 | 15,009 |
State agency and municipal obligations | ||
Held to maturity securities: | ||
Amortized cost, due after ten years | 15,937 | 15,998 |
Gross unrealized gains, due after ten years | 1,018 | 2,601 |
Gross unrealized losses, due after ten years | (663) | (206) |
Fair Value, due after ten years | 16,292 | 18,393 |
Government-sponsored mortgage backed securities | ||
Held to maturity securities: | ||
Amortized cost, no contractual maturity | 42 | 45 |
Gross unrealized gains, no contractual maturity | 4 | 7 |
Gross unrealized losses, no contractual maturity | 0 | 0 |
Fair Value, no contractual maturity | $ 46 | $ 52 |
Investment Securities - Narrati
Investment Securities - Narratives (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)security | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)security | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities | $ 0 | $ 0 | |
Marketable equity securities, at fair value | 2,090,000 | $ 2,168,000 | |
Marketable equity securities at amortized cost | $ 2,100,000 | $ 2,100,000 | |
Number of available for sales debt securities in continuous loss position (positions) | security | 22 | 7 |
Investment Securities - Informa
Investment Securities - Information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 89,254 | $ 35,554 |
Less than 12 months - unrealized loss | $ (2,811) | $ (455) |
Less than 12 months - percent decline from amortized cost | 3.05% | 1.27% |
12 months or more - fair value | $ 3,971 | $ 0 |
12 months or more - unrealized loss | $ (663) | $ 0 |
12 months or more - Percent decline from amortized cost | 14.30% | 0.00% |
Fair value - total | $ 93,225 | $ 35,554 |
Unrealized loss - total | $ (3,474) | $ (455) |
Percent decline from amortized cost - total | 3.59% | 1.27% |
U.S. Government and agency obligations | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 79,507 | $ 28,121 |
Less than 12 months - unrealized loss | $ (2,558) | $ (239) |
Less than 12 months - percent decline from amortized cost | 3.12% | 0.84% |
12 months or more - fair value | $ 0 | $ 0 |
12 months or more - unrealized loss | $ 0 | $ 0 |
12 months or more - Percent decline from amortized cost | 0.00% | 0.00% |
Fair value - total | $ 79,507 | $ 28,121 |
Unrealized loss - total | $ (2,558) | $ (239) |
Percent decline from amortized cost - total | 3.12% | 0.84% |
State agency and municipal obligations | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 0 | $ 4,443 |
Less than 12 months - unrealized loss | $ 0 | $ (206) |
Less than 12 months - percent decline from amortized cost | 0.00% | 4.44% |
12 months or more - fair value | $ 3,971 | $ 0 |
12 months or more - unrealized loss | $ (663) | $ 0 |
12 months or more - Percent decline from amortized cost | 14.30% | 0.00% |
Fair value - total | $ 3,971 | $ 4,443 |
Unrealized loss - total | $ (663) | $ (206) |
Percent decline from amortized cost - total | 14.30% | 4.44% |
Corporate bonds | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 9,747 | $ 2,990 |
Less than 12 months - unrealized loss | $ (253) | $ (10) |
Less than 12 months - percent decline from amortized cost | 2.53% | 0.35% |
12 months or more - fair value | $ 0 | $ 0 |
12 months or more - unrealized loss | $ 0 | $ 0 |
12 months or more - Percent decline from amortized cost | 0.00% | 0.00% |
Fair value - total | $ 9,747 | $ 2,990 |
Unrealized loss - total | $ (253) | $ (10) |
Percent decline from amortized cost - total | 2.53% | 0.35% |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Summary of loan portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure | ||||
Total loans | $ 1,985,330 | $ 1,894,881 | ||
Allowance for loan losses | (17,141) | (16,902) | $ (20,545) | $ (21,009) |
Deferred loan origination fees, net | (3,622) | (2,812) | ||
Loans receivable, net | 1,964,567 | 1,875,167 | ||
Real estate loan | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 1,609,889 | 1,535,037 | ||
Residential | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 68,617 | 79,987 | ||
Allowance for loan losses | (358) | (504) | (501) | (610) |
Commercial | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 1,425,758 | 1,356,709 | ||
Allowance for loan losses | (13,441) | (12,751) | (16,259) | (16,425) |
Construction | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 115,514 | 98,341 | ||
Allowance for loan losses | (56) | (4) | (297) | (221) |
Commercial business | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 370,166 | 350,975 | ||
Allowance for loan losses | (3,254) | (3,590) | (3,452) | (3,753) |
Commercial business | PPP loans | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 100 | 200 | ||
Consumer | ||||
Loans and Leases Receivable Disclosure | ||||
Total loans | 5,275 | 8,869 | ||
Allowance for loan losses | $ (32) | $ (53) | $ (36) | $ 0 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Narratives (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)loan | |
Loans and Leases Receivable Disclosure | |||
Percentage of market value of the collateral | 80.00% | ||
Private mortgage percentage of appraised value property | 80.00% | ||
Maximum percent of the loan in comparison with original appraised value of the property | 80.00% | ||
Deferral loans remaining | $ 0 | ||
Number of loans | loan | 1 | 2 | |
Loans delinquent greater than 90 days | $ 300,000 | $ 1,100,000 | |
Income contractually due but not recognized on originated nonaccrual loans | 200,000 | $ 400,000 | |
Interest income recognized on loan | 0 | 0 | |
Non-accrual loans with no allowance for loans losses | 13,400,000 | 14,200,000 | |
Recorded investment in TDR | $ 25,300,000 | $ 25,800,000 | |
Number of nonaccrual loans identified as TDRs | loan | 5 | 5 | |
TDR on non accrual status | $ 1,900,000 | $ 2,000,000 | |
The total recorded investment on 3 loans modified | $ 0 | $ 0 | |
Residential mortgage | |||
Loans and Leases Receivable Disclosure | |||
Private mortgage percentage of appraised value property | 80.00% |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Summary of allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for Loan and Lease Losses | ||
Beginning balance | $ 16,902 | $ 21,009 |
Charge-offs | (4) | (177) |
Recoveries | 14 | 9 |
(Credits) provisions | 229 | (296) |
Ending balance | 17,141 | 20,545 |
Residential Real Estate | ||
Allowance for Loan and Lease Losses | ||
Beginning balance | 504 | 610 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
(Credits) provisions | (146) | (109) |
Ending balance | 358 | 501 |
Commercial Real Estate | ||
Allowance for Loan and Lease Losses | ||
Beginning balance | 12,751 | 16,425 |
Charge-offs | 0 | (163) |
Recoveries | 0 | 0 |
(Credits) provisions | 690 | (3) |
Ending balance | 13,441 | 16,259 |
Construction | ||
Allowance for Loan and Lease Losses | ||
Beginning balance | 4 | 221 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
(Credits) provisions | 52 | 76 |
Ending balance | 56 | 297 |
Commercial Business | ||
Allowance for Loan and Lease Losses | ||
Beginning balance | 3,590 | 3,753 |
Charge-offs | 0 | 0 |
Recoveries | 13 | 0 |
(Credits) provisions | (349) | (301) |
Ending balance | 3,254 | 3,452 |
Consumer | ||
Allowance for Loan and Lease Losses | ||
Beginning balance | 53 | 0 |
Charge-offs | (4) | (14) |
Recoveries | 1 | 9 |
(Credits) provisions | (18) | 41 |
Ending balance | $ 32 | $ 36 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Summary by portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans individually evaluated for impairment: | ||||
Loans individually evaluated for impairment, Portfolio | $ 45,931 | $ 47,181 | ||
Loans individually evaluated for impairment, Allowance | 2,782 | 2,868 | ||
Loans collectively evaluated for impairment: | ||||
Loans collectively evaluated for impairment, Portfolio | 1,939,399 | 1,847,700 | ||
Loans collectively evaluated for impairment, Allowance | 14,359 | 14,034 | ||
Total loans | 1,985,330 | 1,894,881 | ||
Allowance for loan losses | 17,141 | 16,902 | $ 20,545 | $ 21,009 |
Residential Real Estate | ||||
Loans individually evaluated for impairment: | ||||
Loans individually evaluated for impairment, Portfolio | 3,918 | 4,150 | ||
Loans individually evaluated for impairment, Allowance | 211 | 261 | ||
Loans collectively evaluated for impairment: | ||||
Loans collectively evaluated for impairment, Portfolio | 64,699 | 75,837 | ||
Loans collectively evaluated for impairment, Allowance | 147 | 243 | ||
Total loans | 68,617 | 79,987 | ||
Allowance for loan losses | 358 | 504 | 501 | 610 |
Commercial Real Estate | ||||
Loans individually evaluated for impairment: | ||||
Loans individually evaluated for impairment, Portfolio | 29,609 | 29,666 | ||
Loans individually evaluated for impairment, Allowance | 2,497 | 2,520 | ||
Loans collectively evaluated for impairment: | ||||
Loans collectively evaluated for impairment, Portfolio | 1,396,149 | 1,327,043 | ||
Loans collectively evaluated for impairment, Allowance | 10,944 | 10,231 | ||
Total loans | 1,425,758 | 1,356,709 | ||
Allowance for loan losses | 13,441 | 12,751 | 16,259 | 16,425 |
Construction | ||||
Loans individually evaluated for impairment: | ||||
Loans individually evaluated for impairment, Portfolio | 9,382 | 8,997 | ||
Loans individually evaluated for impairment, Allowance | 0 | 0 | ||
Loans collectively evaluated for impairment: | ||||
Loans collectively evaluated for impairment, Portfolio | 106,132 | 89,344 | ||
Loans collectively evaluated for impairment, Allowance | 56 | 4 | ||
Total loans | 115,514 | 98,341 | ||
Allowance for loan losses | 56 | 4 | 297 | 221 |
Commercial business | ||||
Loans individually evaluated for impairment: | ||||
Loans individually evaluated for impairment, Portfolio | 3,022 | 4,368 | ||
Loans individually evaluated for impairment, Allowance | 74 | 87 | ||
Loans collectively evaluated for impairment: | ||||
Loans collectively evaluated for impairment, Portfolio | 367,144 | 346,607 | ||
Loans collectively evaluated for impairment, Allowance | 3,180 | 3,503 | ||
Total loans | 370,166 | 350,975 | ||
Allowance for loan losses | 3,254 | 3,590 | 3,452 | 3,753 |
Consumer | ||||
Loans collectively evaluated for impairment: | ||||
Loans collectively evaluated for impairment, Portfolio | 5,275 | 8,869 | ||
Loans collectively evaluated for impairment, Allowance | 32 | 53 | ||
Total loans | 5,275 | 8,869 | ||
Allowance for loan losses | $ 32 | $ 53 | $ 36 | $ 0 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Summary of credit risk ratings by loan segment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment | ||
Total loans | $ 1,985,330 | $ 1,894,881 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,425,758 | 1,356,709 |
Construction | ||
Financing Receivable, Recorded Investment | ||
Total loans | 115,514 | 98,341 |
Commercial business | ||
Financing Receivable, Recorded Investment | ||
Total loans | 370,166 | 350,975 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 68,617 | 79,987 |
Consumer | ||
Financing Receivable, Recorded Investment | ||
Total loans | 5,275 | 8,869 |
Commercial Credit Quality Indicators | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,911,438 | 1,806,025 |
Commercial Credit Quality Indicators | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,848,591 | 1,742,489 |
Commercial Credit Quality Indicators | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 20,834 | 20,505 |
Commercial Credit Quality Indicators | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 40,977 | 41,099 |
Commercial Credit Quality Indicators | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,036 | 1,932 |
Commercial Credit Quality Indicators | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Commercial Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,425,758 | 1,356,709 |
Commercial Credit Quality Indicators | Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,376,769 | 1,307,992 |
Commercial Credit Quality Indicators | Commercial Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 19,380 | 19,051 |
Commercial Credit Quality Indicators | Commercial Real Estate | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 29,204 | 29,255 |
Commercial Credit Quality Indicators | Commercial Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 405 | 411 |
Commercial Credit Quality Indicators | Commercial Real Estate | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | ||
Financing Receivable, Recorded Investment | ||
Total loans | 115,514 | 98,341 |
Commercial Credit Quality Indicators | Construction | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 106,132 | 89,344 |
Commercial Credit Quality Indicators | Construction | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 9,382 | 8,997 |
Commercial Credit Quality Indicators | Construction | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Commercial business | ||
Financing Receivable, Recorded Investment | ||
Total loans | 370,166 | 350,975 |
Commercial Credit Quality Indicators | Commercial business | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 365,690 | 345,153 |
Commercial Credit Quality Indicators | Commercial business | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,454 | 1,454 |
Commercial Credit Quality Indicators | Commercial business | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 2,391 | 2,847 |
Commercial Credit Quality Indicators | Commercial business | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 631 | 1,521 |
Commercial Credit Quality Indicators | Commercial business | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | ||
Financing Receivable, Recorded Investment | ||
Total loans | 73,892 | 88,856 |
Residential and Consumer Credit Quality Indicators | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 69,829 | 84,561 |
Residential and Consumer Credit Quality Indicators | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 145 | 145 |
Residential and Consumer Credit Quality Indicators | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 3,918 | 3,975 |
Residential and Consumer Credit Quality Indicators | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 175 |
Residential and Consumer Credit Quality Indicators | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 68,617 | 79,987 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 64,554 | 75,692 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 145 | 145 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 3,918 | 3,975 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 175 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | ||
Financing Receivable, Recorded Investment | ||
Total loans | 5,275 | 8,869 |
Residential and Consumer Credit Quality Indicators | Consumer | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 5,275 | 8,869 |
Residential and Consumer Credit Quality Indicators | Consumer | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Summary of loan portfolio delinquencies by portfolio segment and amount (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | $ 1,985,330 | $ 1,894,881 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 16,782 | 32,628 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 2,631 | 5,054 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 11,986 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 14,151 | 15,588 |
Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,968,548 | 1,862,253 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 68,617 | 79,987 |
Residential Real Estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 835 | 1,751 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1 | 873 |
Residential Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
Residential Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 834 | 878 |
Residential Real Estate | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 67,782 | 78,236 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,425,758 | 1,356,709 |
Commercial Real Estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 3,368 | 16,930 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 2,186 |
Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 10,500 |
Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 3,368 | 4,244 |
Commercial Real Estate | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,422,390 | 1,339,779 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 115,514 | 98,341 |
Construction | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 9,382 | 8,997 |
Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
Construction | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
Construction | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 9,382 | 8,997 |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 106,132 | 89,344 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 370,166 | 350,975 |
Commercial business | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 3,194 | 4,947 |
Commercial business | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 2,627 | 1,995 |
Commercial business | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 1,483 |
Commercial business | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 567 | 1,469 |
Commercial business | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 366,972 | 346,028 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 5,275 | 8,869 |
Consumer | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 3 | 3 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 3 | 0 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 3 |
Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
Consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | $ 5,272 | $ 8,866 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Summary of nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 15,745 | $ 16,587 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 2,181 | 2,380 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 3,365 | 3,482 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 817 | 1,728 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 9,382 | $ 8,997 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Summary of impaired loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Impaired loans without a valuation allowance: | ||
Carrying Amount | $ 20,297 | $ 21,124 |
Unpaid Principal Balance | 21,197 | 22,315 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 25,634 | 26,057 |
Unpaid Principal Balance | 25,683 | 26,100 |
Total impaired loans | ||
Carrying Amount | 45,931 | 47,181 |
Unpaid Principal Balance | 46,880 | 48,415 |
Associated Allowance | 2,782 | 2,868 |
Residential Real Estate | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 1,640 | 1,851 |
Unpaid Principal Balance | 1,814 | 2,038 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 2,278 | 2,299 |
Unpaid Principal Balance | 2,288 | 2,304 |
Total impaired loans | ||
Associated Allowance | 211 | 261 |
Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 8,254 | 8,338 |
Unpaid Principal Balance | 8,625 | 8,698 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 21,355 | 21,328 |
Unpaid Principal Balance | 21,394 | 21,367 |
Total impaired loans | ||
Associated Allowance | 2,497 | 2,520 |
Construction | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 9,382 | 8,997 |
Unpaid Principal Balance | 9,382 | 8,997 |
Commercial business | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 1,021 | 1,938 |
Unpaid Principal Balance | 1,376 | 2,582 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 2,001 | 2,430 |
Unpaid Principal Balance | 2,001 | 2,429 |
Total impaired loans | ||
Associated Allowance | $ 74 | $ 87 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses - Summary of average recorded investment balance of impaired loans and interest income recognized on impaired loans by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Impaired loans without a valuation allowance: | ||
Average Carrying Amount | $ 20,076 | $ 23,175 |
Interest Income Recognized | 75 | 60 |
Impaired loans with a valuation allowance: | ||
Average Carrying Amount | 25,881 | 33,145 |
Interest Income Recognized | 118 | 557 |
Total impaired loans | ||
Average Carrying Amount | 45,957 | 56,320 |
Interest Income Recognized | 193 | 617 |
Residential Real Estate | ||
Impaired loans without a valuation allowance: | ||
Average Carrying Amount | 1,647 | 4,317 |
Interest Income Recognized | 0 | 21 |
Impaired loans with a valuation allowance: | ||
Average Carrying Amount | 2,289 | 0 |
Interest Income Recognized | 12 | 0 |
Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Average Carrying Amount | 8,297 | 8,049 |
Interest Income Recognized | 70 | 35 |
Impaired loans with a valuation allowance: | ||
Average Carrying Amount | 21,348 | 30,107 |
Interest Income Recognized | 92 | 498 |
Commercial business | ||
Impaired loans without a valuation allowance: | ||
Average Carrying Amount | 1,039 | 1,812 |
Interest Income Recognized | 5 | 4 |
Impaired loans with a valuation allowance: | ||
Average Carrying Amount | 2,244 | 3,038 |
Interest Income Recognized | 14 | 59 |
Construction | ||
Impaired loans without a valuation allowance: | ||
Average Carrying Amount | 9,093 | 8,997 |
Interest Income Recognized | $ 0 | $ 0 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses - Summary of loans whose terms were modified as TDRs (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Financing Receivable, Modifications | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification | $ 0 | $ 631 |
Post-Modification | $ 0 | $ 631 |
Residential Real Estate | ||
Financing Receivable, Modifications | ||
Number of Loans | loan | 0 | 1 |
Pre-Modification | $ 0 | $ 631 |
Post-Modification | $ 0 | $ 631 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses - Summary of loans were modified as TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Modifications | ||
Post-Modification | $ 0 | $ 631 |
Payment concession | ||
Financing Receivable, Modifications | ||
Post-Modification | $ 0 | $ 631 |
Shareholders' Equity - Common s
Shareholders' Equity - Common stock (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (shares) | 7,761,338 | 7,803,166 |
Common stock, shares outstanding (shares) | 7,761,338 | 7,803,166 |
Shareholders' Equity - Issuer p
Shareholders' Equity - Issuer purchases of equity securities (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Oct. 27, 2021 | Dec. 19, 2018 | |
Stockholders Equity Note | |||||
Authorized shares for repurchase (shares) | 400,000 | ||||
Weighted average share repurchased (in dollars per share) | $ 26.62 | ||||
Common Stock | |||||
Stockholders Equity Note | |||||
Shares repurchased (shares) | 112,829 | 65,626 | 190,770 | ||
Weighted average share repurchased (in dollars per share) | $ 34.01 | ||||
Common Stock | Board of Directors | |||||
Stockholders Equity Note | |||||
Authorized additional shares for repurchase (shares) | 200,000 |
Comprehensive Income - Summary
Comprehensive Income - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income Loss | ||
Beginning balance | $ 201,987 | $ 176,602 |
Other comprehensive (loss) income before reclassifications, net of tax | 4,198 | 6,985 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 654 | 717 |
Net other comprehensive (loss) income | 4,852 | 7,702 |
Ending balance | 210,220 | 187,943 |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income Loss | ||
Beginning balance | (8,561) | (15,575) |
Net other comprehensive (loss) income | 4,852 | 7,702 |
Ending balance | (3,709) | (7,873) |
Net Unrealized Gain (Loss) on Available for Sale Securities | ||
Accumulated Other Comprehensive Income Loss | ||
Beginning balance | 1,651 | 2,744 |
Other comprehensive (loss) income before reclassifications, net of tax | (3,703) | (798) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 |
Net other comprehensive (loss) income | (3,703) | (798) |
Ending balance | (2,052) | 1,946 |
Net Unrealized Gain (Loss) on Interest Rate Swaps | ||
Accumulated Other Comprehensive Income Loss | ||
Beginning balance | (10,212) | (18,319) |
Other comprehensive (loss) income before reclassifications, net of tax | 7,901 | 7,783 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 654 | 717 |
Net other comprehensive (loss) income | 8,555 | 8,500 |
Ending balance | $ (1,657) | $ (9,819) |
Comprehensive Income - Summar_2
Comprehensive Income - Summary of reclassified from accumulated other comprehensive income or loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivatives: | ||
Unrealized losses on derivatives | $ 10,174 | $ 10,011 |
Derivatives: | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Derivatives: | ||
Unrealized losses on derivatives | (842) | (922) |
Tax benefit | 188 | 205 |
Net of tax | $ (654) | $ (717) |
Earnings per share ("EPS") - Re
Earnings per share ("EPS") - Reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income | $ 8,212 | $ 5,690 |
Dividends to participating securities | (35) | (22) |
Undistributed earnings allocated to participating securities | (146) | (94) |
Net income for earnings per share calculation | $ 8,031 | $ 5,574 |
Weighted average shares outstanding, basic (in shares) | 7,637,077 | 7,758,540 |
Effect of dilutive equity-based awards (in shares) | 82,000 | 42,000 |
Weighted average shares outstanding, diluted (in shares) | 7,719,405 | 7,800,777 |
Net earnings per common share: | ||
Basic earnings per common share (in dollars per share) | $ 1.05 | $ 0.72 |
Diluted earnings per common share (in dollars per share) | $ 1.04 | $ 0.71 |
Regulatory Matters - Narratives
Regulatory Matters - Narratives (Details) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total capital to risk-weighted assets requirement (percent) | 0.0800 | 0.0800 |
Tier 1 capital to risk-weighted assets requirement (percent) | 0.1120 | 0.1118 |
Tier one | 0.0700 | 0.0700 |
Tier one risk based capital ratio | 0.0850 | 0.0850 |
Total risk-based capital ratio | 0.1050 | 0.1050 |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Common equity Tier 1 capital requirement of risk-weighted assets (percent) | 4.50% | |
Leverage ratio (percent) | 4.00% | |
Regulatory risk based capital conservation buffer (percent) | 2.50% | |
Maximum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Tier 1 capital to risk-weighted assets requirement (percent) | 0.060 |
Regulatory Matters - Capital am
Regulatory Matters - Capital amounts and ratios for Bank (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Actual Capital, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 241,346 | $ 232,106 |
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | 258,522 | 249,178 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | 241,346 | 232,106 |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 241,346 | $ 232,106 |
Actual Capital, Ratio | ||
Common Equity Tier 1 capital requirement | 0.1120 | 0.1118 |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1200 | 0.1200 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1120 | 0.1118 |
Tier I Capital to Average Assets, Actual Capital, Ratio | 0.0980 | 0.0994 |
Minimum Regulatory Capital Required for Capital Adequacy Plus Capital Conservation Buffer, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 150,824 | $ 145,353 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 226,235 | 218,030 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 183,143 | 176,500 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 98,486 | $ 93,392 |
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.0700 | 0.0700 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.1050 | 0.1050 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.0850 | 0.0850 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.0400 | 0.0400 |
Minimum Regulatory Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 140,050 | $ 134,971 |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 215,462 | 207,648 |
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 172,370 | 166,118 |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 123,180 | $ 116,740 |
Minimum Regulatory Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0650 | 0.0650 |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier I Capital to Risk-Weighted Assets To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Bankwell Financial Group Inc. | ||
Actual Capital, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 210,782 | $ 207,393 |
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | 263,487 | 260,024 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | 210,782 | 207,393 |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 210,782 | $ 207,393 |
Actual Capital, Ratio | ||
Common Equity Tier 1 capital requirement | 0.0978 | 0.0997 |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1223 | 0.1250 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.0978 | 0.0997 |
Tier I Capital to Average Assets, Actual Capital, Ratio | 0.0855 | 0.0887 |
Minimum Regulatory Capital Required for Capital Adequacy Plus Capital Conservation Buffer, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 150,824 | $ 145,629 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 226,235 | 218,443 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 183,143 | 176,835 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 98,658 | $ 93,534 |
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.0700 | 0.0700 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.1050 | 0.1050 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.0850 | 0.0850 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 0.0400 | 0.0400 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Noninterest bearing demand deposit accounts | $ 412,985 | $ 398,956 |
Interest bearing accounts: | ||
NOW | 112,567 | 119,479 |
Money market | 996,458 | 954,674 |
Savings | 197,961 | 193,631 |
Time certificates of deposit | 446,233 | 457,258 |
Total interest bearing accounts | 1,753,219 | 1,725,042 |
Total deposits | $ 2,166,204 | $ 2,123,998 |
Deposits - Time Deposits Maturi
Deposits - Time Deposits Maturity Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Time Deposits, Fiscal Year Maturity | ||
Remainder of year | $ 125,754 | |
Year one | 202,875 | $ 167,147 |
Year two | 111,428 | 179,520 |
Year three | 6,015 | 110,449 |
Year four | 109 | 33 |
Year five | 52 | 109 |
After year five | 0 | |
Time certificates of deposit | $ 446,233 | $ 457,258 |
Deposits - Narratives (Details)
Deposits - Narratives (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Certificate of deposits above $250,000 | $ 303,200,000 | $ 305,700,000 |
Brokerage certificate of deposits | 249,400,000 | 249,400,000 |
Brokerage certificate of deposits national listing service | 0 | |
Brokerage money market accounts | $ 100,300,000 | $ 104,000,000 |
Deposits - Interest Expense on
Deposits - Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest Expense on Deposit Liabilities, Disclosures | ||
NOW | $ 47 | $ 43 |
Money market | 1,180 | 950 |
Savings | 101 | 125 |
Time certificates of deposits | 878 | 1,996 |
Total interest expense on deposits | $ 2,206 | $ 3,114 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)plan$ / sharesshares | Mar. 31, 2021USD ($) | Dec. 31, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Intrinsic value of exercisable shares | $ | $ 155 | ||
Unvested shares outstanding (shares) | shares | 204,693 | 190,359 | |
Employee Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total intrinsic value of share options exercised | $ | $ 39 | ||
Exercise price of exercisable shares (shares) | shares | 9,680 | ||
Exercise price upper range limit (in dollars per share) | $ / shares | $ 17.86 | ||
Exercisable shares (term) | 1 year 1 month 6 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Aggregate intrinsic value of awards other than options | $ | $ 1,800 | ||
Share based compensation expenses | $ | 500 | $ 400 | |
Unrecognized stock compensation expense for restricted stock | $ | $ 4,900 | ||
Weighted average period for recognition of compensation expense for restricted stock | 1 year 9 months 18 days | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share based payment award, vesting period | 1 year | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share based payment award, vesting period | 5 years | ||
Performance based restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unvested shares outstanding (shares) | shares | 29,462 | ||
BNC Financial Group Inc Stock Option 2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of equity award plans | plan | 2 | ||
Number of common stock reserved for issuance (shares) | shares | 473,220 | ||
BNC Financial Group Inc Stock Option 2012 Plan | Performance based restricted stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share based payment award, vesting period | 3 years | ||
Unvested shares outstanding (shares) | shares | 36,569 | ||
BNC Financial Group Inc Stock Option 2012 Plan | Performance based restricted stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of grant as share quantity for which performance metric is met | 0.00% | ||
BNC Financial Group Inc Stock Option 2012 Plan | Performance based restricted stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of grant as share quantity for which performance metric is met | 200.00% |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding share options (Details) - Employee Stock Options | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Options outstanding at beginning of period (shares) | shares | 11,680 |
Exercised (shares) | shares | (2,000) |
Options outstanding at end of period (shares) | shares | 9,680 |
Options exercisable at end of period (shares) | shares | 9,680 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (usd per share) | $ / shares | $ 17.37 |
Exercised (usd per share) | $ / shares | 15 |
Options outstanding at end of period (usd per share) | $ / shares | 17.86 |
Options exercisable at end of period (usd per share) | $ / shares | $ 17.86 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity for restricted stock (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Shares | |
Unvested at beginning of period (shares) | 190,359 |
Granted (shares) | 69,001 |
Vested (shares) | (54,667) |
Unvested at end of period (shares) | 204,693 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 24.57 |
Granted (in dollars per share) | $ / shares | 34.22 |
Vested (in dollars per share) | $ / shares | 24.17 |
Unvested at end of period (in dollars per share) | $ / shares | $ 27.93 |
Performance based restricted stock | |
Number of Shares | |
Unvested at beginning of period (shares) | 29,462 |
Granted (shares) | 20,905 |
Vested (shares) | (13,798) |
Derivative Instruments - Narrat
Derivative Instruments - Narratives (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)instrument | Dec. 31, 2021USD ($) | |
Derivatives | ||
Accrued interest included in derivative fair value | $ 89 | $ 24 |
Accrued interest included in derivative liability fair value | 417 | 558 |
Interest expense | ||
Derivatives | ||
Amount of cash flow hedge gain expected to be reclassified to interest expense in the next 12 months | $ 200 | |
Interest rate swaps | ||
Derivatives | ||
Number of derivatives instruments held (instruments) | instrument | 8 | |
Notional amount of interest rate swap | $ 25,000 | |
Rolling period of federal home loan bank advances converted to fixed rates | 90 days | |
Accrued interest excluded from derivative fair value | $ 500 | 600 |
Accrued interest included in derivative fair value | $ 2,600 | $ 13,700 |
Interest rate swaps | Derivatives not designated as hedging instruments | ||
Derivatives | ||
Number of derivatives instruments held (instruments) | instrument | 4 |
Derivative Instruments - Inform
Derivative Instruments - Information about derivative instruments (Details) - Interest rate swaps - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Original Notional Amount | $ 25,000,000 | |
Derivatives designated as hedging instruments | Cash Flow Hedging | Other assets | ||
Derivatives | ||
Original Notional Amount | 125,000,000 | $ 50,000,000 |
Derivative asset fair value | 3,637,000 | 1,043,000 |
Derivatives designated as hedging instruments | Cash Flow Hedging | Accrued expenses and other liabilities | ||
Derivatives | ||
Original Notional Amount | 75,000,000 | 150,000,000 |
Derivative liability fair value | (5,773,000) | (14,195,000) |
Derivatives not designated as hedging instruments | Other assets | ||
Derivatives | ||
Original Notional Amount | 38,500,000 | 38,500,000 |
Derivative asset fair value | 2,000,000 | 2,585,000 |
Derivatives not designated as hedging instruments | Accrued expenses and other liabilities | ||
Derivatives | ||
Original Notional Amount | 38,500,000 | 38,500,000 |
Derivative liability fair value | $ (2,000,000) | $ (2,585,000) |
Derivative Instruments - Change
Derivative Instruments - Changes in consolidated statements of comprehensive income related to interest rate derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest rate swaps designated as cash flow hedges: | ||
Unrealized gain recognized in accumulated other comprehensive income before reclassifications | $ 10,174 | $ 10,011 |
Amounts reclassified from accumulated other comprehensive income | 842 | 923 |
Income tax expense on items recognized in accumulated other comprehensive income | (2,461) | (2,434) |
Unrealized gains on interest rate swaps, net of tax | $ 8,555 | $ 8,500 |
Derivative Instruments - Summar
Derivative Instruments - Summary of gross net information about derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 5,549 | $ 3,604 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 5,549 | 3,604 |
Financial Instruments | 1,793 | 217 |
Cash Collateral Received | 0 | 0 |
Net Amount | 3,756 | 3,387 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 8,190 | 17,338 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 8,190 | 17,338 |
Financial Instruments | 1,793 | 217 |
Cash collateral posted | 1,548 | 15,845 |
Net Amount | $ 4,849 | $ 1,276 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying values and fair values of financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Federal funds sold | $ 19,022 | $ 53,084 |
Marketable equity securities | 2,090 | 2,168 |
Available for sale securities | 98,733 | 90,198 |
Held to maturity securities | 15,979 | 16,043 |
Derivative asset | 5,549 | 3,604 |
Financial Liabilities: | ||
Derivative liability | 8,190 | 17,338 |
Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 280,471 | 291,598 |
Federal funds sold | 19,022 | 53,084 |
Marketable equity securities | 2,090 | 2,168 |
Available for sale securities | 39,057 | 25,569 |
Held to maturity securities | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Servicing asset, net of valuation allowance | 0 | 0 |
Derivative asset | 0 | 0 |
Assets held for sale | 0 | 0 |
Financial Liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Subordinated debentures | 0 | 0 |
Servicing liability | 0 | 0 |
Derivative liability | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Marketable equity securities | 0 | 0 |
Available for sale securities | 59,676 | 64,629 |
Held to maturity securities | 46 | 52 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 7,733 | 7,512 |
FHLB stock | 2,870 | 2,814 |
Servicing asset, net of valuation allowance | 0 | 0 |
Derivative asset | 5,637 | 3,628 |
Assets held for sale | 0 | 0 |
Financial Liabilities: | ||
Noninterest bearing deposits | 412,985 | 398,956 |
NOW and money market | 1,109,025 | 1,074,153 |
Savings | 197,961 | 193,631 |
Time deposits | 0 | 0 |
Accrued interest payable | 1,353 | 1,234 |
Advances from the FHLB | 0 | 0 |
Subordinated debentures | 0 | 0 |
Servicing liability | 0 | 0 |
Derivative liability | 7,773 | 16,780 |
Level 3 | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Marketable equity securities | 0 | 0 |
Available for sale securities | 0 | 0 |
Held to maturity securities | 16,292 | 18,393 |
Loans receivable, net | 1,933,114 | 1,858,661 |
Accrued interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Servicing asset, net of valuation allowance | 792 | 818 |
Derivative asset | 0 | 0 |
Assets held for sale | 2,268 | 2,268 |
Financial Liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 443,904 | 457,759 |
Accrued interest payable | 0 | 0 |
Advances from the FHLB | 50,021 | 49,996 |
Subordinated debentures | 32,676 | 34,509 |
Servicing liability | 12 | 14 |
Derivative liability | 0 | 0 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 280,471 | 291,598 |
Federal funds sold | 19,022 | 53,084 |
Marketable equity securities | 2,090 | 2,168 |
Available for sale securities | 98,733 | 90,198 |
Held to maturity securities | 15,979 | 16,043 |
Loans receivable, net | 1,964,567 | 1,875,167 |
Accrued interest receivable | 7,733 | 7,512 |
FHLB stock | 2,870 | 2,814 |
Servicing asset, net of valuation allowance | 792 | 818 |
Derivative asset | 5,637 | 3,628 |
Assets held for sale | 2,268 | 2,268 |
Financial Liabilities: | ||
Noninterest bearing deposits | 412,985 | 398,956 |
NOW and money market | 1,109,025 | 1,074,153 |
Savings | 197,961 | 193,631 |
Time deposits | 446,233 | 457,258 |
Accrued interest payable | 1,353 | 1,234 |
Advances from the FHLB | 50,000 | 50,000 |
Subordinated debentures | 34,471 | 34,441 |
Servicing liability | 12 | 14 |
Derivative liability | 7,773 | 16,780 |
Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 280,471 | 291,598 |
Federal funds sold | 19,022 | 53,084 |
Marketable equity securities | 2,090 | 2,168 |
Available for sale securities | 98,733 | 90,198 |
Held to maturity securities | 16,338 | 18,445 |
Loans receivable, net | 1,933,114 | 1,858,661 |
Accrued interest receivable | 7,733 | 7,512 |
FHLB stock | 2,870 | 2,814 |
Servicing asset, net of valuation allowance | 792 | 818 |
Derivative asset | 5,637 | 3,628 |
Assets held for sale | 2,268 | 2,268 |
Financial Liabilities: | ||
Noninterest bearing deposits | 412,985 | 398,956 |
NOW and money market | 1,109,025 | 1,074,153 |
Savings | 197,961 | 193,631 |
Time deposits | 443,904 | 457,759 |
Accrued interest payable | 1,353 | 1,234 |
Advances from the FHLB | 50,021 | 49,996 |
Subordinated debentures | 32,676 | 34,509 |
Servicing liability | 12 | 14 |
Derivative liability | $ 7,773 | $ 16,780 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial instruments carried at fair value on recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | $ 2,090 | $ 2,168 |
Available for sale securities | 98,733 | 90,198 |
Derivative asset | 5,549 | 3,604 |
Derivative liability | 8,190 | 17,338 |
U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 83,362 | 75,189 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 2,090 | 2,168 |
Available for sale securities | 39,057 | 25,569 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Available for sale securities | 59,676 | 64,629 |
Derivative asset | 5,637 | 3,628 |
Derivative liability | 7,773 | 16,780 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Available for sale securities | 0 | 0 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value Measurements Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 2,090 | 2,168 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value Measurements Recurring | Level 1 | U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 39,057 | 25,569 |
Fair Value Measurements Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Derivative asset | 5,637 | 3,628 |
Derivative liability | 7,773 | 16,780 |
Fair Value Measurements Recurring | Level 2 | U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 44,305 | 49,620 |
Fair Value Measurements Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 15,371 | 15,009 |
Fair Value Measurements Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value Measurements Recurring | Level 3 | U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Fair Value Measurements Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 0 | $ 0 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial instruments carried at fair value on nonrecurring basis (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 0 | $ 0 |
Servicing asset, net | 0 | 0 |
Assets held for sale | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Servicing asset, net | 0 | 0 |
Assets held for sale | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 43,149 | 44,313 |
Servicing asset, net | $ 780 | 804 |
Assets held for sale | $ 2,268 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on nonrecurring basis (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing liability | $ 12 | $ 14 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing liability | 12 | 14 |
Fair Value Measurements Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 43,149 | 44,313 |
Servicing asset, net | 780 | 804 |
Assets held for sale | 2,268 | |
Fair Value Measurements Nonrecurring | Level 3 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 43,149 | 44,313 |
Servicing asset, net | $ 780 | 804 |
Fair Value Measurements Nonrecurring | Level 3 | Fair Value | Sale & income approach | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets held for sale | $ 2,268 | |
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.1000 | 0.1000 |
Servicing liability, measurement input (percent) | 0.016 | 0.008 |
Fair Value Measurements Nonrecurring | Level 3 | Prepayment rate | Fair Value | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.0300 | 0.0300 |
Fair Value Measurements Nonrecurring | Level 3 | Prepayment rate | Fair Value | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.1700 | 0.1700 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Fair Value | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 18,898 | $ 18,548 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Fair Value | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 24,251 | $ 25,765 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount to appraised value | Fair Value | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0.0800 | 0.0800 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount rate | Fair Value | Minimum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0.0300 | 0.0300 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount rate | Fair Value | Maximum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0.0650 | 0.0675 |
Subordinated debentures - Narra
Subordinated debentures - Narratives (Details) - USD ($) | Nov. 15, 2021 | Oct. 14, 2021 | May 15, 2021 | Aug. 19, 2015 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Debt Instrument | |||||||
Amortization of debt issuance costs | $ 30,000 | $ 13,000 | |||||
Subordinated debentures | |||||||
Debt Instrument | |||||||
Aggregate principal amount | 35,000,000 | $ 35,000,000 | |||||
Unamortized debt issuance costs | 529,000 | $ 559,000 | |||||
Amortization of debt issuance costs | 30,000 | 13,000 | |||||
Interest expense debt | $ 300,000 | $ 400,000 | |||||
Fixed Rated Subordinated Notes | Subordinated debentures | |||||||
Debt Instrument | |||||||
Aggregate principal amount | $ 25,500,000 | ||||||
Notes non-callable term (in years) | 5 years | ||||||
Quarterly pay fixed interest rate of notes | 5.75% | ||||||
Repayments of debt | $ 10,000,000 | ||||||
Repayments of notes | $ 15,500,000 | ||||||
3.25 Subordinated Note Due 2031 | Subordinated debentures | |||||||
Debt Instrument | |||||||
Aggregate principal amount | $ 35,000,000 | ||||||
Interest rate (percent) | 3.25% | ||||||
3.25 Subordinated Note Due 2031 | Subordinated debentures | SOFR | |||||||
Debt Instrument | |||||||
Variable rate (basis points) | 2.33% |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Apr. 27, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Subsequent Event | |||
Dividends per common share (in dollars per share) | $ 0.20 | $ 0.14 | |
Subsequent Event | |||
Subsequent Event | |||
Dividends per common share (in dollars per share) | $ 0.20 |