Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,856,829 | |
Entity Central Index Key | 0001505732 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets - (
Consolidated Balance Sheets - (unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 234,277 | $ 267,521 |
Federal funds sold | 17,103 | 1,636 |
Cash and cash equivalents | 251,380 | 269,157 |
Investment securities | ||
Marketable equity securities, at fair value | 2,079 | 2,070 |
Available for sale investment securities, at fair value | 107,635 | 109,736 |
Held to maturity investment securities, at amortized cost (fair values of $28,966 and $15,903 at June 30, 2024 and December 31, 2023, respectively) | 28,286 | 15,817 |
Total investment securities | 138,000 | 127,623 |
Loans receivable (net of ACL-Loans of $36,083 at June 30, 2024 and $27,946 at December 31, 2023) | 2,616,691 | 2,685,301 |
Accrued interest receivable | 14,675 | 14,863 |
Federal Home Loan Bank stock, at cost | 5,655 | 5,696 |
Premises and equipment, net | 25,599 | 27,018 |
Bank-owned life insurance | 52,097 | 51,435 |
Goodwill | 2,589 | 2,589 |
Deferred income taxes, net | 11,345 | 9,383 |
Other assets | 23,623 | 22,417 |
Total assets | 3,141,654 | 3,215,482 |
Deposits | ||
Noninterest bearing deposits | 328,475 | 346,172 |
Interest bearing deposits | 2,333,900 | 2,390,585 |
Total deposits | 2,662,375 | 2,736,757 |
Advances from the Federal Home Loan Bank | 90,000 | 90,000 |
Subordinated debentures (face value of $70,000 and $70,000 at June 30, 2024 and December 31, 2023, respectively, less unamortized debt issuance costs of $672 and $795 at June 30, 2024 and December 31, 2023, respectively) | 69,328 | 69,205 |
Accrued expenses and other liabilities | 52,975 | 53,768 |
Total liabilities | 2,874,678 | 2,949,730 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock, no par value; 10,000,000 shares authorized, 7,866,499 and 7,882,616 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 118,037 | 118,247 |
Retained earnings | 150,895 | 149,169 |
Accumulated other comprehensive loss | (1,956) | (1,664) |
Total shareholders' equity | 266,976 | 265,752 |
Total liabilities and shareholders' equity | $ 3,141,654 | $ 3,215,482 |
Consolidated Balance Sheets -_2
Consolidated Balance Sheets - (unaudited) (Parenthetical) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Held to maturity investment securities, fair value | $ 28,966,000 | $ 15,903,000 |
Allowance for loan losses | $ 36,083,000 | $ 27,946,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 7,866,499 | 7,882,616 |
Common stock, shares outstanding (in shares) | 7,866,499 | 7,882,616 |
Subordinated debentures | ||
Debt instrument face value of debt | $ 70,000,000 | $ 70,000,000 |
Unamortized debt issuance costs | $ 672,000 | $ 795,000 |
Consolidated Statements of Inco
Consolidated Statements of Income – (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 43,060 | $ 42,482 | $ 86,385 | $ 82,205 |
Interest and dividends on securities | 1,190 | 1,002 | 2,320 | 2,002 |
Interest on cash and cash equivalents | 3,429 | 3,022 | 7,255 | 6,590 |
Total interest and dividend income | 47,679 | 46,506 | 95,960 | 90,797 |
Interest expense | ||||
Interest expense on deposits | 24,677 | 20,777 | 50,039 | 37,810 |
Interest expense on borrowings | 1,783 | 1,738 | 3,555 | 3,455 |
Total interest expense | 26,460 | 22,515 | 53,594 | 41,265 |
Net interest income | 21,219 | 23,991 | 42,366 | 49,532 |
Provision for credit losses | 8,183 | 2,579 | 11,866 | 3,405 |
Net interest income after provision for credit losses | 13,036 | 21,412 | 30,500 | 46,127 |
Noninterest income | ||||
Bank-owned life insurance | 333 | 292 | 662 | 573 |
Service charges and fees | 495 | 361 | 799 | 647 |
Gains and fees from sales of loans | 45 | 725 | 366 | 1,656 |
Other | (190) | 23 | (229) | 51 |
Total noninterest income | 683 | 1,401 | 1,598 | 2,927 |
Noninterest expense | ||||
Salaries and employee benefits | 6,176 | 6,390 | 12,467 | 12,471 |
Occupancy and equipment | 2,238 | 2,204 | 4,561 | 4,288 |
Professional services | 989 | 692 | 2,054 | 2,014 |
Data processing | 755 | 729 | 1,495 | 1,400 |
Director fees | 306 | 453 | 1,206 | 845 |
FDIC insurance | 705 | 1,050 | 1,635 | 2,112 |
Marketing | 90 | 177 | 203 | 328 |
Other | 986 | 946 | 1,921 | 1,874 |
Total noninterest expense | 12,245 | 12,641 | 25,542 | 25,332 |
Income before income tax expense | 1,474 | 10,172 | 6,556 | 23,722 |
Income tax expense | 356 | 2,189 | 1,675 | 5,360 |
Net income | $ 1,118 | $ 7,983 | $ 4,881 | $ 18,362 |
Earnings Per Common Share: | ||||
Basic (in dollars per share) | $ 0.14 | $ 1.02 | $ 0.62 | $ 2.36 |
Diluted (in dollars per share) | $ 0.14 | $ 1.02 | $ 0.62 | $ 2.34 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 7,747,675 | 7,593,417 | 7,705,598 | 7,574,160 |
Diluted (in shares) | 7,723,888 | 7,601,562 | 7,721,880 | 7,639,828 |
Dividends per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) – (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,118 | $ 7,983 | $ 4,881 | $ 18,362 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) on available for sale securities | 398 | (1,941) | 182 | (1,189) |
Reclassification adjustment for gains realized in net income | 0 | 0 | 0 | 0 |
Net change in unrealized gains (losses) | 398 | (1,941) | 182 | (1,189) |
Income tax (expense) benefit | (94) | 446 | 7 | 328 |
Unrealized gains (losses) on securities, net of tax | 304 | (1,495) | 189 | (861) |
Unrealized (losses) gains on interest rate swaps: | ||||
Unrealized (losses) gains on interest rate swaps | (709) | 1,185 | (583) | (796) |
Income tax benefit (expense) | 168 | (272) | 102 | 130 |
Unrealized (losses) gains on interest rate swaps, net of tax | (541) | 913 | (481) | (666) |
Total other comprehensive (loss) income, net of tax | (237) | (582) | (292) | (1,527) |
Comprehensive income | $ 881 | $ 7,401 | $ 4,589 | $ 16,835 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - (unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance (in shares) at Dec. 31, 2022 | 7,730,699 | 7,730,699 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 238,469 | $ (4,893) | $ 233,576 | $ 115,018 | $ 115,018 | $ 123,640 | $ (4,893) | $ 118,747 | $ (189) | $ (189) |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 18,362 | 18,362 | ||||||||
Other comprehensive (loss), net of tax | (1,527) | (1,527) | ||||||||
Cash dividends declared | (3,121) | (3,121) | ||||||||
Stock-based compensation expense | 1,368 | $ 1,368 | ||||||||
Forfeitures of restricted stock (in shares) | (15,438) | |||||||||
Issuance of restricted stock (in shares) | 106,009 | |||||||||
Stock options exercised (in shares) | 8,680 | |||||||||
Stock options exercised | 155 | $ 155 | ||||||||
Ending balance (in shares) at Jun. 30, 2023 | 7,829,950 | |||||||||
Ending balance at Jun. 30, 2023 | 248,813 | $ 116,541 | 133,988 | (1,716) | ||||||
Beginning balance (in shares) at Dec. 31, 2022 | 7,730,699 | 7,730,699 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 238,469 | $ (4,893) | $ 233,576 | $ 115,018 | $ 115,018 | 123,640 | $ (4,893) | $ 118,747 | (189) | $ (189) |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Repurchase of common stock (in shares) | 0 | |||||||||
Ending balance (in shares) at Dec. 31, 2023 | 7,882,616 | 7,882,616 | ||||||||
Ending balance at Dec. 31, 2023 | $ 265,752 | $ 118,247 | 149,169 | (1,664) | ||||||
Beginning balance (in shares) at Mar. 31, 2023 | 7,843,438 | |||||||||
Beginning balance at Mar. 31, 2023 | 242,307 | $ 115,875 | 127,566 | (1,134) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 7,983 | 7,983 | ||||||||
Other comprehensive (loss), net of tax | (582) | (582) | ||||||||
Cash dividends declared | (1,561) | (1,561) | ||||||||
Stock-based compensation expense | 666 | $ 666 | ||||||||
Forfeitures of restricted stock (in shares) | (13,488) | |||||||||
Ending balance (in shares) at Jun. 30, 2023 | 7,829,950 | |||||||||
Ending balance at Jun. 30, 2023 | $ 248,813 | $ 116,541 | 133,988 | (1,716) | ||||||
Beginning balance (in shares) at Dec. 31, 2023 | 7,882,616 | 7,882,616 | ||||||||
Beginning balance at Dec. 31, 2023 | $ 265,752 | $ 118,247 | 149,169 | (1,664) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 4,881 | 4,881 | ||||||||
Other comprehensive (loss), net of tax | (292) | (292) | ||||||||
Cash dividends declared | (3,155) | (3,155) | ||||||||
Stock-based compensation expense | 1,696 | $ 1,696 | ||||||||
Forfeitures of restricted stock (in shares) | (2,700) | |||||||||
Issuance of restricted stock (in shares) | 62,903 | |||||||||
Repurchase of common stock (in shares) | (76,320) | |||||||||
Repurchase of common stock | $ (1,906) | $ (1,906) | ||||||||
Ending balance (in shares) at Jun. 30, 2024 | 7,866,499 | 7,866,499 | ||||||||
Ending balance at Jun. 30, 2024 | $ 266,976 | $ 118,037 | 150,895 | (1,956) | ||||||
Beginning balance (in shares) at Mar. 31, 2024 | 7,908,180 | |||||||||
Beginning balance at Mar. 31, 2024 | 268,032 | $ 118,401 | 151,350 | (1,719) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 1,118 | 1,118 | ||||||||
Other comprehensive (loss), net of tax | (237) | (237) | ||||||||
Cash dividends declared | (1,573) | (1,573) | ||||||||
Stock-based compensation expense | 622 | $ 622 | ||||||||
Forfeitures of restricted stock (in shares) | (2,600) | |||||||||
Issuance of restricted stock (in shares) | 1,059 | |||||||||
Stock options exercised | 0 | |||||||||
Repurchase of common stock (in shares) | (40,140) | |||||||||
Repurchase of common stock | $ (986) | $ (986) | ||||||||
Ending balance (in shares) at Jun. 30, 2024 | 7,866,499 | 7,866,499 | ||||||||
Ending balance at Jun. 30, 2024 | $ 266,976 | $ 118,037 | $ 150,895 | $ (1,956) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows – (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net income | $ 4,881 | $ 18,362 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of premiums and discounts on investment securities | 87 | 35 |
(Provision) credit for credit losses | 11,866 | 3,405 |
Credit for deferred income taxes | (1,853) | (676) |
Change in fair value of marketable equity securities | 21 | (6) |
Depreciation and amortization | 1,871 | 1,780 |
Amortization of debt issuance costs | 123 | 123 |
Increase in cash surrender value of bank-owned life insurance | (662) | (573) |
Gains and fees from sales of loans | (366) | (1,656) |
Stock-based compensation | 1,696 | 1,368 |
Loss (gain) on sale of premises and equipment | 0 | 13 |
Net change in: | ||
Deferred loan fees | (948) | (328) |
Accrued interest receivable | 188 | (1,139) |
Other assets | (66) | (2,488) |
Accrued expenses and other liabilities | (660) | 1,521 |
Net cash (used in) provided by operating activities | 16,178 | 19,741 |
Cash flows from investing activities | ||
Proceeds from principal repayments on available for sale securities | 2,288 | 2,496 |
Proceeds from principal repayments on held to maturity securities | 81 | 103 |
Purchases of marketable equity securities | (30) | (24) |
Purchases of held to maturity securities | (12,642) | 0 |
Net decrease (increase) in loans | 52,722 | (120,107) |
Proceeds from sales of loans not originated for sale | 3,480 | 21,219 |
Purchases of premises and equipment, net | (452) | (1,655) |
Reduction (purchases) of Federal Home Loan Bank stock | 41 | (480) |
Net cash provided by (used in) investing activities | 45,488 | (98,448) |
Cash flows from financing activities | ||
Net change in time certificates of deposit | (20,754) | 101,007 |
Net change in other deposits | (53,628) | (112,962) |
Proceeds from exercise of options | 0 | 155 |
Dividends paid on common stock | (3,155) | (3,121) |
Repurchase of common stock | (1,906) | 0 |
Net cash (used in) provided by financing activities | (79,443) | (14,921) |
Net decrease in cash and cash equivalents | (17,777) | (93,628) |
Cash and cash equivalents: | ||
Beginning of year | 269,157 | 355,679 |
End of period | 251,380 | 262,051 |
Cash paid for: | ||
Interest | 54,003 | 33,412 |
Income taxes | 3,574 | 7,318 |
Noncash investing and financing activities: | ||
Net change in unrealized gains or losses on available for sale securities | 182 | (1,189) |
Net change in unrealized gains or losses on interest rate swaps | (583) | (796) |
Establishment of right-of-use asset and lease liability | 0 | 597 |
Transfer of loans from held-for-investment to held-for-sale | $ 3,115 | $ 19,564 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity - (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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, "we", "our", "us", or 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 a wide range of services to clients in our market, an area encompassing approximately a 100 mile radius around our branch network. In addition, the Bank pursues certain types of commercial lending opportunities outside our market, particularly where we have strong business relationships. The Bank operates branches in New Canaan, Stamford, Fairfield, 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, and 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 Credit Losses-Loans ("ACL-Loans"), derivative instrument valuation, investment securities valuation, Allowance for Credit Losses-Securities, and deferred income taxes valuation. Segments The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. 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, 2024. 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, 2023. Significant Concentrations of Credit Risk Many of the Company's activities are with clients located in Connecticut and New York, with the majority of the Company's commercial real estate investor 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, with a growing percentage being owner-occupied, which present a lower risk profile. ACL-Loans and Allowance for Credit Losses-Unfunded Commitments ("ACL-Unfunded Commitments") The ACL-Loans is measured on each loan’s amortized cost basis, excluding interest receivable, and is initially recognized upon origination or purchase of the loan, and subsequently remeasured on a recurring basis. The ACL-Loans is recognized as a contra-asset, and credit loss expense is recorded as a provision for loan losses in the consolidated statements of income. Loan losses are charged off against the ACL-Loans when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL-Loans. Loans are normally placed on nonaccrual status if it is probable that the Company will be unable to collect the full payment of principal and interest when due according to the contractual terms of the loan agreement, or the loan is past due for a period of 90 days or more unless the obligation is well-secured and is in the process of collection. The Company generally does not recognize an allowance for credit losses ("ACL") on accrued interest receivables, consistent with its policy to reverse interest income when interest is 90 days or more past due. The Company also records an ACL-Unfunded commitments, which is based on the same assumptions as funded loans and also considers the probability of funding. The ACL is recognized as a liability, and credit loss expense is recorded as a provision for unfunded loan commitments within the provision for credit losses in the Consolidated statements of income. For collectively evaluated loans and related unfunded commitments, the Company utilizes software provided by a third party, which includes various models for forecasting expected credit losses, to calculate its ACL. Management selected lifetime loss rate models, utilizing CRE, C&I, and Consumer specific models, to calculate the expected losses over the life of each loan based on exposure at default, loan attributes and reasonable, supportable economic forecasts. The models selected by the Company in its ACL calculation rely upon historical losses from a broad cross section of U.S. banks that also utilize the same third party for ACL calculations. Management reviewed the third party’s analysis of the banks included in the models as part of their model development dataset and determined the Company’s loan portfolio composition by property type, balance distribution by loan age, and delinquency status are similar, which supports the use of these loss rate models. The Company also noted the third party’s model development dataset has loan concentrations that are evenly distributed across the United States, while the Company’s portfolio is mainly concentrated in the Northeast. Based on the disparate regional concentration, management determined that a select group of peer banks is necessary to scale the loss rate models to produce an ACL that is more representative of the Company’s loan portfolio. This peer-based calibration, called a "peer scalar", utilizes the loss rates of a subset of peer banks to appropriately scale the initial model results. These peers have been selected by the Company given their similar characteristics, such as loan portfolio composition and location, to better align the models’ results to the Company’s expected losses. Key assumptions used in the models include portfolio segmentation, risk rating, forecasted economic scenarios, the peer scalar, and the expected utilization of unfunded commitments, among others. Our loan portfolios are segmented by loan level attributes such as loan type, size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated, and loss rates are subsequently applied to the pools as the loans have similar characteristics. To account for economic uncertainty, the Company incorporates multiple economic scenarios in determining the ACL. The scenarios include various projections based on variables such as Gross Domestic Product, interest rates, property price indices, and employment measures, among others. The scenarios are probability-weighted based on available information at the time the calculation is conducted. As part of our ongoing governance of ACL, scenario weightings and model parameters are reviewed periodically by management and are subject to change, as deemed appropriate. The Company also considers qualitative adjustments to expected credit loss estimates for information not already captured in the quantitative loss estimation models. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Qualitative loss factors are based on the Company’s judgment of market, changes in loan composition or concentrations, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. When loans do not share risk characteristics with other financial assets they are evaluated individually. Management applies its normal loan review procedures in making these judgments. Individually evaluated loans consist of loans with credit quality indicators which are substandard or doubtful. The Company also individually evaluates all insurance premium loans. While insurance premium loans are considered consumer loans, the third-party Consumer ACL model is designed for unsecured lending, whereas these loans are secured. To account for the fully secured structure of this type of loan, management determined each loan will be individually evaluated, regardless of the credit quality indicators. These loans are evaluated based upon their collateral, which primarily consists of cash, cash surrender value life insurance, and in some cases real estate. In determining the ACL-Loans for individually evaluated loans, the Company generally applies a discounted cash flow method for instruments that are individually assessed. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. ACL-Securities The Company individually evaluates the available for sale debt securities and held to maturity securities for impairment credit losses. Available for sale securities include U.S. Treasuries, mortgage-backed securities, and corporate bonds. U.S. Treasuries and mortgaged-backed securities are guaranteed by the U.S. Government and as a result, management has a zero loss expectation. No ACL-Securities was recorded for these securities as of June 30, 2024. For the corporate bond portfolio, the Company developed a metric that includes each issuer’s current credit ratings and key financial performance metrics to assess the underlying performance of each issuer. The analysis of the issuers’ performance and the intent of the Company to retain these securities support the determination that there is no expected credit loss, and therefore, no ACL-Securities were recognized on the corporate bond portfolio as of June 30, 2024. Of our held to maturity securities portfolio, one security’s fair value was less than its amortized cost as of June 30, 2024. Since this is a highly rated state agency and municipal obligation, the Company's expectation of nonpayment of the amortized cost basis is zero. No allowance for ALC-Securities was recorded for this security as of June 30, 2024. 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 2024 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. 2023-09—Income Taxes (Topic 740): "Improvements to Income Tax Disclosures": The amendments in this update provide more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The Company believes this ASU will not have a material impact on existing disclosures and will continue to monitor for SEC action, and plan accordingly for adoption. ASU No. 2023-06, Disclosure Improvements: “Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”: The amendments in this update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments. The summary of the amendments applicable to the Company include: Statement of Cash Flows - Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows. Accounting Changes and Error Corrections - Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements. Earnings Per Share - Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings-per-share computation. Interim Reporting - Conforms to the amendments made to Topic 250 (Accounting Changes and Error Correction). Commitments - Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized. Debt - Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. Entities that are not public business entities are not required to provide information about the weighted-average interest rate. Equity - Requires entities that issue preferred stock to disclose preference in involuntary liquidation if the liquidation preference is other than par or stated value. Derivatives - Adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows in Topic 230. Transfers and Servicing—Secured Borrowing and Collateral - Requires: a. That accrued interest be included in the disclosure of liabilities incurred in securities borrowing or repurchase or resale transactions. b. Separate presentation of the aggregate carrying amount of reverse repurchase agreements on the face of the balance sheet if that amount exceeds 10 percent of total assets. c. Disclosure of the weighted-average interest rates of repurchase liabilities for public business entities. d. Disclosure of amounts at risk with an individual counterparty if that amount exceeds more than 10 percent of shareholder’s equity. e. Disclosure for reverse repurchase agreements that exceed 10 percent of total assets on whether there are any provisions in a reverse repurchase agreement to ensure that the market value of the underlying assets remains sufficient. to protect against counterparty default and, if so, the nature of those provisions. Financial Services - Requires that investment companies disclose the components of capital on the balance sheet. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this update are to be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Company believes this ASU will not have a material impact on existing disclosures and will continue to monitor for SEC action, and plan accordingly for adoption. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 were as follows: June 30, 2024 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 19,993 $ — $ (285) $ 19,708 Due from one through five years 52,556 8 (2,951) 49,613 Due from five through ten years 17,832 — (1,175) 16,657 Due after ten years 7,613 — (919) 6,694 Total U.S. Government and agency obligations 97,994 8 (5,330) 92,672 Corporate bonds Due from five through ten years 15,500 — (1,678) 13,822 Due after ten years 1,500 — (359) 1,141 Total corporate bonds 17,000 — (2,037) 14,963 Total available for sale securities $ 114,994 $ 8 $ (7,367) $ 107,635 Held to maturity securities: State agency and municipal obligations Due from five through ten years $ 2,830 $ — $ (75) $ 2,755 Due after ten years 25,426 1,664 (910) 26,180 Government-sponsored mortgage backed securities No contractual maturity 30 1 — 31 Total held to maturity securities $ 28,286 $ 1,665 $ (985) $ 28,966 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2023 were as follows: December 31, 2023 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 9,836 $ — $ (52) $ 9,784 Due from one through five years 55,288 123 (2,680) 52,731 Due from five through ten years 27,229 — (1,630) 25,599 Due after ten years 7,923 — (811) 7,112 Total U.S. Government and agency obligations 100,276 123 (5,173) 95,226 Corporate bonds Due from five through ten years 15,500 — (2,028) 13,472 Due after ten years 1,500 — (462) 1,038 Total corporate bonds 17,000 — (2,490) 14,510 Total available for sale securities $ 117,276 $ 123 $ (7,663) $ 109,736 Held to maturity securities: State agency and municipal obligations Due after ten years $ 15,785 $ 716 $ (631) $ 15,870 Government-sponsored mortgage backed securities No contractual maturity 32 1 — 33 Total held to maturity securities $ 15,817 $ 717 $ (631) $ 15,903 There were no sales of investment securities during the six months ended June 30, 2024 or 2023. At June 30, 2024 and December 31, 2023, none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution. As of June 30, 2024 and December 31, 2023, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities. As of June 30, 2024, the Company held marketable equity securities with a fair value of $2.1 million an d an amortized cost of $2.2 million . At December 31, 2023, the Company held marketable equity securities with a fair value of $2.1 million and an amortized cost of $2.2 million. These securities represent an investment in mutual funds that have an objective to make investments for Community Reinvestment Act ("CRA") purposes. The following tables provide information regarding available for sale securities and held to maturity securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024 and December 31, 2023: 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) June 30, 2024 U.S. Government and agency obligations $ — $ — — % $ 82,766 $ (5,330) 6.05 % $ 82,766 $ (5,330) 6.05 % Corporate bonds — — — 14,963 (2,037) 11.98 14,963 (2,037) 11.98 State agency and municipal obligations 6,004 (164) 2.66 3,852 (821) 17.57 9,856 (985) 9.09 Total investment securities $ 6,004 $ (164) 2.66 % $ 101,581 $ (8,188) 7.46 % $ 107,585 $ (8,352) 7.20 % 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, 2023 U.S. Government and agency obligations $ — $ — — % $ 85,243 $ (5,173) 5.72 % $ 85,243 $ (5,173) 5.72 % Corporate bonds — — — 14,510 (2,490) 14.65 14,510 (2,490) 14.65 State agency and municipal obligations — — — 4,076 (631) 13.41 4,076 (631) 13.41 Total investment securities $ — $ — — % $ 103,829 $ (8,294) 7.40 % $ 103,829 $ (8,294) 7.40 % There were thirty-six and thirty-four available for sale securities or held to maturity securities as of June 30, 2024 and December 31, 2023, 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 corporate bonds are investments in subordinated debt of federally insured banks, the majority of which are callable after five years o f origination. The Company monitors its corporate bond, state agency and municipal bond portfolios and considers them to have minimal default risk. The Company has the intent and ability to retain its investment securities in an unrealized loss position at June 30, 2024 until the decline in value has recovered or the security has matured. |
Loans Receivable and ACL-Loans
Loans Receivable and ACL-Loans | 6 Months Ended |
Jun. 30, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Receivable and ACL-Loans | Loans Receivable and ACL-Loans The following table sets forth a summary of the loan portfolio at June 30, 2024 and December 31, 2023: (In thousands) June 30, 2024 December 31, 2023 Real estate loans: Residential $ 47,875 $ 50,931 Commercial 1,912,701 1,947,648 Construction 150,259 183,414 2,110,835 2,181,993 Commercial business 503,444 500,569 Consumer 42,906 36,045 Total loans 2,657,185 2,718,607 ACL-Loans (36,083) (27,946) Deferred loan origination fees, net (4,411) (5,360) Loans receivable, net $ 2,616,691 $ 2,685,301 Lending activities primarily consist of commercial real estate loans, commercial business loans and, to a lesser degree, 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 client and extends credit of up to 80% of the market value of the collateral, (85% maximum for owner occupied commercial real estate), depending on the client's creditworthiness and the type of collateral. The client’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, 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 client’s ability to generate continuing cash flows. The Company does not provide first or second lien residential mortgage loans secured by residential properties but has a small legacy portfolio which continues to amortize, pay off due to the sale of the collateral, or refinance away from the Company. Credit quality of loans and the ACL-Loans Management segregates the loan portfolio into defined segments, which are used to develop and document a systematic method for determining the Company's ACL-Loans. 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 client 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 clients 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, and their repayment generally depends on the successful operation of the client’s business. Consumer: This portfolio segment includes loans to finance insurance premiums secured by the cash surrender value of life insurance and marketable securities, overdraft lines of credit, and unsecured personal loans to high net worth individuals. ACL-Loans The following tables set forth the activity in the Company’s ACL-Loans for the three and six months ended June 30, 2024 and 2023, by portfolio segment: Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2024 Beginning balance $ 133 $ 21,666 $ 1,543 $ 4,078 $ 571 $ 27,991 Charge-offs (9) (522) — — (12) (543) Recoveries 141 113 — — 13 267 (Credit) provision for credit losses (142) 1,216 729 6,569 (4) 8,368 Ending balance $ 123 $ 22,473 $ 2,272 $ 10,647 $ 568 $ 36,083 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2023 Beginning balance $ 207 $ 19,413 $ 1,070 $ 6,593 $ 715 $ 27,998 Charge-offs — — — — (25) (25) Recoveries — — — 32 11 43 (Credit) provision for credit losses (17) 535 728 163 1,269 2,678 Ending balance $ 190 $ 19,948 $ 1,798 $ 6,788 $ 1,970 $ 30,694 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2024 Beginning balance $ 149 $ 20,950 $ 1,699 $ 4,562 $ 586 $ 27,946 Charge-offs (141) (3,828) — (197) (61) (4,227) Recoveries 141 113 — 27 17 298 (Credit) provision for credit losses (26) 5,238 573 6,255 26 12,066 Ending balance $ 123 $ 22,473 $ 2,272 $ 10,647 $ 568 $ 36,083 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2023 Balance as of December 31, 2022 $ 163 $ 15,597 $ 311 $ 6,214 $ 146 $ 22,431 Day1 effect of CECL 80 4,987 611 (1,125) 526 5,079 Balance as of January 1, 2023 as adjusted for changes in accounting principle 243 20,584 922 5,089 672 27,510 Charge-offs — — — (439) (37) (476) Recoveries — — — 33 15 48 (Credit) provision for credit losses (53) (636) 876 2,105 1,320 3,612 Ending balance $ 190 $ 19,948 $ 1,798 $ 6,788 $ 1,970 $ 30,694 We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the tables below. The following tables present loans by origination and risk designation as of June 30, 2024 and December 31, 2023 (dollars in thousands): Term Loans Amortized Cost Balances by Origination Year as of June 30, 2024 2024 2023 2022 2021 2020 Prior Total Residential Real Estate Loans Pass $ — $ — $ — $ — $ — $ 44,331 $ 44,331 Special Mention — — — — — 137 137 Substandard — — — — — 3,652 3,652 Doubtful — — — — — — — Total Residential Real Estate Loans $ — $ — $ — $ — $ — $ 48,120 $ 48,120 Residential Real Estate charge-off Current period charge-offs $ — $ — $ — $ — $ — $ 141 $ 141 Commercial Real Estate Loans Pass $ 49,958 $ 90,747 $ 763,916 $ 259,337 $ 96,638 $ 540,643 $ 1,801,239 Special Mention — 12,454 34,877 13,199 — 2,008 62,538 Substandard — 18,470 — 16,516 13,993 — 48,979 Doubtful — — — 1,594 — 4,423 6,017 Total Commercial Real Estate Loans $ 49,958 $ 121,671 $ 798,793 $ 290,646 $ 110,631 $ 547,074 $ 1,918,773 Commercial Real Estate charge-off Current period charge-offs $ — $ — $ — $ 522 $ — $ 3,306 $ 3,828 Construction Loans Pass $ — $ 45,027 $ 44,930 $ 51,565 $ — $ — $ 141,522 Special Mention — — — — — — — Substandard — — — — — 9,362 9,362 Doubtful — — — — — — — Total Construction Loans $ — $ 45,027 $ 44,930 $ 51,565 $ — $ 9,362 $ 150,884 Construction charge-off Current period charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial Business Loans Pass $ 66,944 $ 112,109 $ 199,731 $ 62,327 $ 6,485 $ 27,726 $ 475,322 Special Mention — — 7,479 1,009 — — 8,488 Substandard — 886 8,923 7,438 — 1,973 19,220 Doubtful — — — 1,720 — 76 1,796 Total Commercial Business Loans $ 66,944 $ 112,995 $ 216,133 $ 72,494 $ 6,485 $ 29,775 $ 504,826 Commercial Business charge-off Current period charge-offs $ — $ — $ — $ 197 $ — $ — $ 197 Consumer Loans Pass $ — $ 11,674 $ 29,466 $ — $ — $ 46 $ 41,186 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total Consumer Loans $ — $ 11,674 $ 29,466 $ — $ — $ 46 $ 41,186 Consumer charge-off Current period charge-offs $ 15 $ — $ — $ 46 $ — $ — $ 61 Total Loans Pass $ 116,902 $ 259,557 $ 1,038,043 $ 373,229 $ 103,123 $ 612,746 $ 2,503,600 Special Mention — 12,454 42,356 14,208 — 2,145 71,163 Substandard — 19,356 8,923 23,954 13,993 14,987 81,213 Doubtful — — — 3,314 — 4,499 7,813 Total Loans $ 116,902 $ 291,367 $ 1,089,322 $ 414,705 $ 117,116 $ 634,377 $ 2,663,789 Total charge-off Current period charge-offs $ 15 $ — $ — $ 765 $ — $ 3,447 $ 4,227 Term Loans Amortized Cost Balances by Origination Year as of December 31, 2023 2023 2022 2021 2020 2019 Prior Total Residential Real Estate Loans Pass $ — $ — $ — $ — $ — $ 47,314 $ 47,314 Special Mention — — — — — 140 140 Substandard — — — — — 3,728 3,728 Doubtful — — — — — — — Total Residential Real Estate Loans $ — $ — $ — $ — $ — $ 51,182 $ 51,182 Residential Real Estate charge-off Current period charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate Loans Pass $ 95,881 $ 755,352 $ 310,811 $ 113,554 $ 133,996 $ 429,695 $ 1,839,289 Special Mention 12,333 35,136 13,203 — 2,035 114 62,821 Substandard 18,525 — 16,923 — — 8,121 43,569 Doubtful — — 2,116 — — 4,272 6,388 Total Commercial Real Estate Loans $ 126,739 $ 790,488 $ 343,053 $ 113,554 $ 136,031 $ 442,202 $ 1,952,067 Commercial Real Estate charge-off Current period charge-offs $ — $ — $ 213 $ — $ — $ 611 $ 824 Construction Loans Pass $ 39,627 $ 67,788 $ 41,156 $ 26,156 $ — $ — $ 174,727 Special Mention — — — — — — — Substandard — — — — — 9,362 9,362 Doubtful — — — — — — — Total Construction Loans $ 39,627 $ 67,788 $ 41,156 $ 26,156 $ — $ 9,362 $ 184,089 Construction charge-off Current period charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial Business Loans Pass $ 121,312 $ 234,997 $ 73,805 $ 9,291 $ 6,504 $ 32,293 $ 478,202 Special Mention — 3,395 1,009 — — — 4,404 Substandard 892 8,934 7,910 — — 2,092 19,828 Doubtful — — — — — 103 103 Total Commercial Business Loans $ 122,204 $ 247,326 $ 82,724 $ 9,291 $ 6,504 $ 34,488 $ 502,537 Commercial Business charge-off Current period charge-offs $ — $ — $ — $ — $ 440 $ — $ 440 Consumer Loans Pass $ 10,126 $ 25,406 $ — $ — $ — $ 37 $ 35,569 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total Consumer Loans $ 10,126 $ 25,406 $ — $ — $ — $ 37 $ 35,569 Consumer charge-off Current period charge-offs $ 83 $ — $ — $ — $ — $ — $ 83 Total Loans Pass $ 266,946 $ 1,083,543 $ 425,772 $ 149,001 $ 140,500 $ 509,339 $ 2,575,101 Special Mention 12,333 38,531 14,212 — 2,035 254 67,365 Substandard 19,417 8,934 24,833 — — 23,303 76,487 Doubtful — — 2,116 — — 4,375 6,491 Total Loans $ 298,696 $ 1,131,008 $ 466,933 $ 149,001 $ 142,535 $ 537,271 $ 2,725,444 Total charge-off Current period charge-offs $ 83 $ — $ 213 $ — $ 440 $ 611 $ 1,347 Loans evaluated for impairment and the related ACL-Loans as of June 30, 2024 and December 31, 2023 were as follows: Portfolio ACL-Loans (In thousands) June 30, 2024 Loans individually evaluated for impairment: Residential real estate $ 3,631 $ — Commercial real estate 54,858 — Construction 9,382 778 Commercial business 20,922 7,010 Consumer 26,159 — Subtotal 114,952 7,788 Loans collectively evaluated for impairment: Residential real estate 44,244 123 Commercial real estate 1,857,843 22,473 Construction 140,877 1,494 Commercial business 482,522 3,637 Consumer 16,747 568 Subtotal 2,542,233 28,295 Total $ 2,657,185 $ 36,083 Portfolio ACL-Loans (In thousands) December 31, 2023 Loans individually evaluated for impairment: Residential real estate $ 3,711 $ — Commercial real estate 49,935 955 Construction 9,382 — Commercial business 19,848 — Consumer 22,129 — Subtotal 105,005 955 Loans collectively evaluated for impairment: Residential real estate 47,220 149 Commercial real estate 1,897,713 19,995 Construction 174,032 1,699 Commercial business 480,721 4,562 Consumer 13,916 586 Subtotal 2,613,602 26,991 Total $ 2,718,607 $ 27,946 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 ACL-Loans. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default or non-payment. 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) loan 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 have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt. A loan rated “doubtful” (8) has all the weaknesses inherent in a substandard loan 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 charging 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, monthly delinquency monitoring, 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 June 30, 2024 and December 31, 2023: Commercial Credit Quality Indicators June 30, 2024 December 31, 2023 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,795,570 $ 140,877 $ 474,105 $ 2,410,552 $ 1,835,136 $ 174,032 $ 476,358 $ 2,485,526 Special Mention 62,273 — 8,417 70,690 62,577 — 4,362 66,939 Substandard 48,836 9,382 19,131 77,349 43,542 9,382 19,745 72,669 Doubtful 6,022 — 1,791 7,813 6,393 — 104 6,497 Loss — — — — — — — — Total loans $ 1,912,701 $ 150,259 $ 503,444 $ 2,566,404 $ 1,947,648 $ 183,414 $ 500,569 $ 2,631,631 Residential and Consumer Credit Quality Indicators June 30, 2024 December 31, 2023 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 44,109 $ 42,906 $ 87,015 $ 47,082 $ 36,045 $ 83,127 Special Mention 135 — 135 138 — 138 Substandard 3,631 — 3,631 3,711 — 3,711 Doubtful — — — — — — Loss — — — — — — Total loans $ 47,875 $ 42,906 $ 90,781 $ 50,931 $ 36,045 $ 86,976 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. The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of June 30, 2024 and December 31, 2023: June 30, 2024 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 $ 997 $ 150 $ 1,189 $ 2,336 $ 45,539 $ 47,875 Commercial real estate 90 595 1,388 2,073 1,910,628 1,912,701 Construction — — 9,382 9,382 140,877 150,259 Commercial business 5 14 8,621 8,640 494,804 503,444 Consumer — — — — 42,906 42,906 Total loans $ 1,092 $ 759 $ 20,580 $ 22,431 $ 2,634,754 $ 2,657,185 December 31, 2023 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 $ — $ 1,220 $ 132 $ 1,352 $ 49,579 $ 50,931 Commercial real estate 195 282 1,851 2,328 1,945,320 1,947,648 Construction — — 9,382 9,382 174,032 183,414 Commercial business 6,568 1,648 — 8,216 492,353 500,569 Consumer — — — — 36,045 36,045 Total loans $ 6,763 $ 3,150 $ 11,365 $ 21,278 $ 2,697,329 $ 2,718,607 There w ere no lo ans delinquent greater than 90 days and still accruing interest as of June 30, 2024 or December 31, 2023. Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (In thousands) Residential real estate $ 1,339 $ 1,386 Commercial real estate 28,088 23,009 Commercial business 17,396 15,430 Construction 9,382 9,382 Consumer — — Total $ 56,205 $ 49,207 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 six months ended June 30, 2024 and 2023 was $1.2 million and $4.2 million, respectively. At June 30, 2024 and December 31, 2023, there were no commitments to lend additional funds to any borrower on nonaccrual status. Nonaccrual loans with no specific reserve totaled $38.1 million and $48.3 million at June 30, 2024 and December 31, 2023, respectively, as these loans were deemed to be adequately collateralized. Individually evaluated loans An individually evaluated 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. Individually evaluated 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 Company individually evaluates all insurance premium loans within the Consumer portfolio segment, irrespective of credit risk ratings. The following table summarizes individually evaluated loans by portfolio segment as of June 30, 2024 and December 31, 2023. Carrying Amount Unpaid Principal Balance Associated ACL-Loans June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 (In thousands) Individually evaluated loans without a valuation allowance: Residential real estate $ 3,631 $ 3,711 $ 3,918 $ 4,022 $ — $ — Commercial real estate 54,858 43,942 59,372 45,032 — — Construction — 9,382 — 9,382 — — Commercial business 12,224 19,848 13,310 20,502 — — Consumer 26,159 22,129 26,159 22,129 — — Total individually evaluated loans without a valuation allowance 96,872 99,012 102,759 101,067 — — Individually evaluated loans with a valuation allowance: Residential real estate $ — $ — $ — $ — $ — $ — Commercial real estate — 5,993 — 6,017 — 955 Construction 9,382 — 9,382 — 778 — Commercial business 8,698 — 9,089 — 7,010 — Consumer — — — — — — Total individually evaluated loans with a valuation allowance 18,080 5,993 18,471 6,017 7,788 955 Total individually evaluated loans $ 114,952 $ 105,005 $ 121,230 $ 107,084 $ 7,788 $ 955 The following tables summarize the average carrying amount of individually evaluated loans and interest income recognized on individually evaluated loans by portfolio segment for the three and six months ended June 30, 2024 and 2023: Average Carrying Amount Interest Income Recognized Three Months Ended June 30, Three Months Ended June 30, 2024 2023 2024 2023 (In thousands) Individually evaluated loans without a valuation allowance: Residential real estate $ 3,640 $ 3,794 $ 42 $ 20 Commercial real estate 55,291 1,907 552 — Commercial business 12,423 4,901 211 40 Construction — 9,382 — — Consumer 26,156 — 400 — Total individually evaluated loans without a valuation allowance 97,510 19,984 1,205 60 Individually evaluated loans with a valuation allowance: Residential real estate $ — $ — $ — $ — Commercial real estate — 15,890 — 87 Commercial business 8,516 — 878 — Construction 9,382 — — — Consumer — — — — Total individually evaluated loans with a valuation allowance 17,898 15,890 878 87 Total individually evaluated loans $ 115,408 $ 35,874 $ 2,083 $ 147 Average Carrying Amount Interest Income Recognized Six Months Ended June 30, Six Months Ended June 2024 2023 2024 2023 (In thousands) Individually evaluated loans without a valuation allowance: Residential real estate $ 3,656 $ 3,814 $ 85 $ 40 Commercial real estate 57,247 1,912 1,094 — Commercial business 12,745 5,035 618 84 Construction — 9,382 — — Consumer 25,840 — 736 — Total individually evaluated loans without a valuation allowance 99,488 20,143 2,533 124 Individually evaluated loans with a valuation allowance: Residential real estate $ — $ — $ — $ — Commercial real estate — 15,891 — 173 Commercial business 8,607 — 1,039 — Construction 9,382 — — — Consumer — — — — Total individually evaluated loans with a valuation allowance 17,989 15,891 1,039 173 Total individually evaluated loans $ 117,477 $ 36,034 $ 3,572 $ 297 Loan Modifications A loan will be considered modified as defined by ASU 2022-02 when both of the following conditions are met: 1) the borrower is experiencing financial difficulties and 2) the modification constitutes a direct change in contractual cash flows for a significant period of time. Modified terms are dependent upon the financial position and needs of the individual borrower. There were no new loan modifications reportable under ASU 2022-02 at June 30, 2024 and December 31, 2023. The following table provides information on loans that were modified during the periods indicated. Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2024 2023 2024 2023 2024 2023 Three Months Ended June 30, Residential real estate — — $ — $ — $ — $ — Commercial business — — — — — — Commercial real estate — — — — — — Total — — $ — $ — $ — $ — Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2024 2023 2024 2023 2024 2023 Six Months Ended June 30, Residential real estate — — $ — $ — $ — $ — Commercial business — — — — — — Commercial real estate — — — — — — Total — — $ — $ — $ — $ — Allowance for credit losses (ACL)-Unfunded Commitments The Company has recorded ACL-Unfunded Commitments in A ccrued expenses and other liabilities . The provision is recorded within the Provision for credit losses on the Company’s Consolidated Statements of Income. The following table presents a roll forward of the ACL-Unfunded Commitments for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Balance at beginning of period $ 911 $ 1,165 $ 926 $ 80 Reversal of prior unfunded reserve — — — (80) Day 1 effect of CECL — — — 1,273 (Credit) for credit losses (unfunded commitments) (185) (99) (200) (207) Balance at end of period $ 726 $ 1,066 $ 726 $ 1,066 Components of Provision for Credit Losses The following table summarizes the Provision for credit losses for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Provision for credit losses (loans) $ 8,368 $ 2,678 $ 12,066 $ 3,612 (Credit) for credit losses (unfunded commitments) (185) (99) (200) (207) Provision for credit losses $ 8,183 $ 2,579 $ 11,866 $ 3,405 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The Company has 10,000,000 shares authoriz ed and 7,866,499 shares issued and outstanding at June 30, 2024 and 10,000,000 shares authorized and 7,882,616 shares issued and outstanding at December 31, 2023. The Company's stock is traded on the Nasdaq Global 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 six months ended June 30, 2024, the Company purchased 76,320 shares of its Common Stock at a weighted average price of $24.95 per share. During the year ended December 31, 2023, the Company had no purchases of Common Stock. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive 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 de rivative instruments are utilized to manage economic risks, including interest rate risk. Changes in fair value of the Company's cash flow swap derivatives are primarily driven by changes in interest rates and recognized in other comprehensive income. The Company’s total compreh ensive income or loss for the three and six months ended June 30, 2024 and June 30, 2023 is reported in the Consolidated Statements of Comprehensive Income. The following tables present the changes in accumulated other comprehensive (loss) income by component, net of tax for the three and six months ended June 30, 2024 and June 30, 2023: Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2024 $ (5,926) $ 4,207 $ (1,719) Other comprehensive income (loss) before reclassifications, net of tax 304 420 724 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (961) (961) Net other comprehensive income (loss) 304 (541) (237) Balance at June 30, 2024 $ (5,622) $ 3,666 $ (1,956) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2023 $ (6,116) $ 4,982 $ (1,134) Other comprehensive (loss) income before reclassifications, net of tax (1,495) 1,770 275 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (857) (857) Net other comprehensive (loss) income (1,495) 913 (582) Balance at June 30, 2023 $ (7,611) $ 5,895 $ (1,716) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2023 $ (5,810) $ 4,146 $ (1,664) Other comprehensive income (loss) before reclassifications, net of tax 188 1,695 1,883 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (2,175) (2,175) Net other comprehensive income (loss) 188 (480) (292) Balance at June 30, 2024 $ (5,622) $ 3,666 $ (1,956) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2022 $ (6,750) $ 6,561 $ (189) Other comprehensive (loss) income before reclassifications, net of tax (861) 973 112 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (1,639) (1,639) Net other comprehensive (loss) income (861) (666) (1,527) Balance at June 30, 2023 $ (7,611) $ 5,895 $ (1,716) The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended June 30, Six Months Ended June 30, Associated Line Item in the Consolidated Statements of Income 2024 2023 2024 2023 (In thousands) Derivatives: Unrealized gains on derivatives $ 1,257 $ 1,112 $ 2,514 $ 2,094 Interest expense on borrowings Tax expense (296) (255) (339) (455) Income tax expense Net of tax $ 961 $ 857 $ 2,175 $ 1,639 |
Earnings per share ("EPS")
Earnings per share ("EPS") | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 (In thousands, except per share data) Net income $ 1,118 $ 7,983 $ 4,881 $ 18,362 Dividends to participating securities (1) (40) (41) (79) (84) Undistributed earnings allocated to participating securities (1) 14 (172) (52) (403) Net income for earnings per share calculation $ 1,092 $ 7,770 $ 4,750 $ 17,875 Weighted average shares outstanding, basic 7,748 7,593 7,706 7,574 Effect of dilutive equity-based awards (2) (24) 9 16 66 Weighted average shares outstanding, diluted 7,724 7,602 7,722 7,640 Net earnings per common share: Basic earnings per common share $ 0.14 $ 1.02 $ 0.62 $ 2.36 Diluted earnings per common share $ 0.14 $ 1.02 $ 0.62 $ 2.34 (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 | 6 Months Ended |
Jun. 30, 2024 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Regulatory Matters The Federal Reserve, the FDIC and 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 Bank to effectively maintain Common Equity Tier 1, Tier 1 and total capital ratios of 7.0%, 8.5% and 10.5%, respectively. 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. As of June 30, 2023, the Company no longer met the definition of a Small Bank Holding Company as the Company's assets exceeded $3 billion. Effective March 31, 2024, the Company is subject to the larger company capital requirements as set forth in the Economic Growth Act. 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 June 30, 2024, 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 June 30, 2024 and December 31, 2023 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 June 30, 2024 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 324,443 11.67 % $ 194,589 7.00 % $ 180,690 6.50 % Tier I Capital to Risk-Weighted Assets 324,443 11.67 % 236,287 8.50 % 222,388 8.00 % Total Capital to Risk-Weighted Assets 359,216 12.92 % 291,884 10.50 % 277,985 10.00 % Tier I Capital to Average Assets 324,443 10.17 % 127,556 4.00 % 159,444 5.00 % Minimum Regulatory Capital Required for Capital Adequacy Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital Amount Ratio Amount Ratio Amount Ratio Bankwell Financial Group, Inc. June 30, 2024 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 265,918 9.56 % $ 125,229 4.50 % $ 180,886 6.50 % Tier I Capital to Risk-Weighted Assets 265,918 9.56 % 166,972 6.00 % 222,629 8.00 % Total Capital to Risk-Weighted Assets 370,019 13.30 % 222,629 8.00 % 278,287 10.00 % Tier I Capital to Average Assets 265,918 8.34 % 127,556 4.00 % 159,444 5.00 % 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, 2023 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 321,432 11.30 % $ 199,047 7.00 % $ 184,829 6.50 % Tier I Capital to Risk-Weighted Assets 321,432 11.30 % 241,700 8.50 % 227,482 8.00 % Total Capital to Risk-Weighted Assets 350,303 12.32 % 298,571 10.50 % 284,353 10.00 % Tier I Capital to Average Assets 321,432 9.81 % 131,110 4.00 % 163,888 5.00 % Minimum Regulatory Capital Required for Capital Adequacy Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital Amount Ratio Amount Ratio Amount Ratio Bankwell Financial Group, Inc. December 31, 2023 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 264,209 9.28 % $ 128,121 4.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 264,209 9.28 % 170,828 6.00 % N/A N/A Total Capital to Risk-Weighted Assets 362,285 12.72 % 227,770 8.00 % N/A N/A Tier I Capital to Average Assets 264,209 8.05 % 131,232 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 June 30, 2024 or December 31, 2023. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2024 | |
Deposits [Abstract] | |
Deposits | Deposits At June 30, 2024 and December 31, 2023, deposits consisted of the following: June 30, 2024 December 31, 2023 (In thousands) Noninterest bearing demand deposit accounts $ 328,475 $ 346,172 Interest bearing accounts: NOW 122,112 90,829 Money market 825,599 887,352 Savings 91,870 97,331 Time certificates of deposit 1,294,319 1,315,073 Total interest bearing accounts 2,333,900 2,390,585 Total deposits $ 2,662,375 $ 2,736,757 Maturities of time certificates of deposit as of June 30, 2024 and December 31, 2023 are summarized below: June 30, 2024 December 31, 2023 (In thousands) 2024 $ 596,101 $ 979,807 2025 679,845 318,961 2026 1,413 24 2027 711 68 2028 and thereafter 16,249 16,213 Total $ 1,294,319 $ 1,315,073 The aggregate amount of individual certificate accounts, with balances of $250,000 or more, was approximately $179.9 million at June 30, 2024 and $151.6 million at December 31, 2023. Brokered certificates of deposits tot aled $755.5 million at June 30, 2024 and $860.5 million at December 31, 2023, respectively. Brokered money market accounts totaled $52.1 million at June 30, 2024 and $91.4 million at December 31, 2023, respectively. There were no certificates of deposits from national l isting services, one-way buy Certificate of Deposit Account Registry Service ("CDARS") or one-way buy Insured Cash Sweep Service ("ICS") at June 30, 2024 or December 31, 2023. Brokered deposits are comprised of Brokered CDs, brokered money market accounts, one-way buy CDARS, and one-way buy ICS. The following table summarizes interest expense on deposits by account type for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) NOW $ 49 $ 42 $ 88 $ 81 Money market 8,552 8,083 17,698 14,468 Savings 688 860 1,402 1,586 Time certificates of deposits 15,388 11,792 30,851 21,675 Total interest expense on deposits $ 24,677 $ 20,777 $ 50,039 $ 37,810 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity award plans The Company has unvested restricted stock outstanding under two equity award plans, which are collectively referred to as the “Stock Plans”. The current plan under which any future issuances of equity awards will be made is the 2022 Bankwell Financial Group, Inc. Stock Plan, or the “2022 Plan”. All equity awards made under the 2022 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 June 30, 2024, there were 277,333 shares reserved for future issuance under the 2022 Plan. 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 six months ended June 30, 2024: Six Months Ended June 30, 2024 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 254,328 (1) $ 29.58 Granted 62,903 (2) 24.60 Vested (83,006) (3) 26.10 Forfeited (2,700) 24.19 Unvested at end of period 231,525 (1) Inclu des 33,115 shares of performance based restricted stock. (2) Includes 18,598 shares of performance based restricted stock. (3) Includes 15,694 shares of performance based restricted stock. The total fair value of restricted stock awards vested during the six months ended June 30, 2024 was $2.2 million. The Company's restricted stock expense fo r the six months ended June 30, 2024 and June 30, 2023 was $1.7 million and $1.4 million, respectively. At June 30, 2024, there was $6.5 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.2 years. Performance Based Restricted Stock : The Compa ny has 36,019 s hares of performance based restricted stock outstanding as of June 30, 2024 pursuant to the Company’s Stock Plans. 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 metrics will be met and (b) the fair market value of the Company’s stock at the date of the grant. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, the Company was a party to five cash flow swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to the variability of the future cash fl ows 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 cash flow swaps to convert rolling 90- day Federal Home Loan Bank advances or brokered deposits. Cash flow swaps with a positive fair value are recorded as other assets and cash flow swaps with a negative fair value are recorded as other liabilities on the Consolidated Balance Sheets. The Company terminated two cash flow swaps with a total notional amount of $50 million during the year ended December 31, 2022. The underlying debt associated with the terminated swaps was kept in place. The fair value of the terminated swaps totaled $134.4 thousand as of June 30, 2024. The fair value of the terminated swaps will be reclassified from other comprehensive income to interest expense on a straight-line basis over the original term of the hedging relationship. The Company has one pay-fixed portfolio layer method fair value swap, designated as a hedging instrument, with a total notional amount of $150 million. The Company designated the fair value swap under the portfolio layer method (“PLM”). Under this method, the hedged item is designated as a hedged layer of a closed portfolio of financial loans that is anticipated to remain outstanding for the designated hedged period. Adjustments will be made to record the swap at fair value on the Consolidated Balance Sheets, with changes in fair value recognized in interest income. The carrying value of the fair value swap on the Consolidated Balance Sheets will also be adjusted through interest income, based on changes in fair value attributable to changes in the hedged risk. The following table represents the carrying value of the portfolio layer method hedged asset and the cumulative fair value hedging adjustment included in the carrying value of the hedged asset as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Carrying Value of Hedged Asset Hedged Items (In thousands) Fixed Rate Asset (1) $ 149,055 $ 150,915 $ (945) $ 915 (1) These amounts include the amortized cost basis of closed portfolios of fixed rate loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. As of June 30, 2024 and December 31, 2023, the amortized cost basis of the closed portfolio used in this hedging relationship was $575.9 million and $611.5 million , the cumulative basis adjustments associated with this hedging relationships was $1.8 million and $1.1 million, respectively. As of June 30, 2024 and December 31, 2023, t he amount of the designated hedged item was $150.0 million, respectively. As of June 30, 2024, the Company has interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to clients. The Company accounts for all non-client related interest rate swaps as either effective cash flow or fair value swaps. 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 clients. The Company executes interest rate swaps with commercial banking clients 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 client derivatives and the offsetting derivatives are recognized directly in earnings. Information about derivative instruments at June 30, 2024 and December 31, 2023 is as follows: As of June 30, 2024 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: Cash flow swaps $ 125,000 Other assets $ 4,663 $ — Accrued expenses and other liabilities $ — Fair value swap $ 150,000 Other assets $ 933 $ — Accrued expenses and other liabilities $ — Derivatives not designated as hedging instruments: Cash flow swaps (1) $ 38,500 Other assets $ 4,362 $ 38,500 Accrued expenses and other liabilities $ 4,362 (1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party. Accru ed interest receivables related to interest rate swaps as of June 30, 2024 totaled $0.9 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $6.6 million as of June 30, 2024. As of December 31, 2023 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: Cash flow swaps $ 125,000 Other assets $ 5,240 $ — Accrued expenses and other liabilities $ — Fair value swap $ 150,000 Other assets $ — $ — Accrued expenses and other liabilities $ 917 Derivatives not designated as hedging instruments: Cash flow swaps (1) $ 38,500 Other assets $ 3,579 $ 38,500 Accrued expenses and other liabilities $ 3,579 (1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party. Accrued interest receivables related to interest rate swaps as of December 31, 2023 totaled $0.8 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $6.0 million as of December 31, 2023. The effective portion of changes in the fair value of derivatives designated 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 $2.7 million to reduce interest expense during the next 12 months. The Company assesses the cash flow swaps hedge 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. The Company assesses the effectiveness of the fair value swap hedge with a regression analysis that compares the changes in forward curves to determine the value. The effective portion of changes in the fair value of derivatives designated as fair value hedges is recorded through interest income. 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 and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Interest rate swaps designated as cash flow hedges: Unrealized gain (loss) recognized in accumulated other comprehensive income before reclassifications $ 548 $ 2,297 $ 1,931 $ 1,298 Amounts reclassified from accumulated other comprehensive income (1,257) (1,112) (2,514) (2,094) Income tax (expense) benefit on items recognized in accumulated other comprehensive income 168 (272) 102 130 Other comprehensive income $ (541) $ 913 $ (481) $ (666) 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 table summarizes the effect of the fair value hedging relationship recognized in the consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 (Loss) gain on fair value hedging relationship: Hedged asset $ (192) $ (3,084) $ (1,860) $ (680) Fair value derivative designated as hedging instrument 610 3,358 1,772 1,005 Total gain (loss) recognized in the consolidated statements of income within interest and fees on loans $ 418 $ 274 $ (88) $ 325 The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at June 30, 2024 and December 31, 2023: June 30, 2024 (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 $ 10,881 $ — $ 10,881 $ — $ 10,614 $ 267 (1) Includes accru ed interest receivable totaling $923 thousand . June 30, 2024 (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 $ 4,432 $ — $ 4,432 $ — $ — $ 4,432 (1) Includes ac crued interest payable totaling $70 thousand . December 31, 2023 (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 $ 9,583 $ — $ 9,583 $ — $ 8,599 $ 984 (1) Includes accrued interest receivable totaling $764 thousand. December 31, 2023 (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 $ 4,473 $ — $ 4,473 $ — $ — $ 4,473 (1) Includes net interest receivable totaling $23 thousand. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 234,277 $ 234,277 $ 234,277 $ — $ — Federal funds sold 17,103 17,103 17,103 — — Marketable equity securities 2,079 2,079 2,079 — — Available for sale securities 107,635 107,635 69,321 38,314 — Held to maturity securities 28,286 28,965 — 31 28,934 Loans receivable, net 2,616,691 2,582,592 — — 2,582,592 Accrued interest receivable 14,675 14,675 — 14,675 — FHLB stock 5,655 5,655 — 5,655 — Servicing asset, net of valuation allowance 590 590 — — 590 Derivative asset 9,958 9,958 — 9,958 — Financial Liabilities: Noninterest bearing deposits $ 328,475 $ 328,475 $ — $ 328,475 $ — NOW and money market 947,711 947,711 — 947,711 — Savings 91,870 91,870 — 91,870 — Time deposits 1,294,319 1,294,759 — — 1,294,759 Accrued interest payable 14,186 14,186 — 14,186 — Advances from the FHLB 90,000 89,991 — — 89,991 Subordinated debentures 69,328 64,788 — — 64,788 Servicing liability — — — — — Derivative liability 4,362 4,362 — 4,362 — December 31, 2023 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 267,521 $ 267,521 $ 267,521 $ — $ — Federal funds sold 1,636 1,636 1,636 — — Marketable equity securities 2,070 2,070 2,070 — — Available for sale securities 109,736 109,736 62,514 47,222 — Held to maturity securities 15,817 15,903 — 33 15,870 Loans receivable, net 2,685,301 2,659,667 — — 2,659,667 Accrued interest receivable 14,863 14,863 — 14,863 — FHLB stock 5,696 5,696 — 5,696 — Servicing asset, net of valuation allowance 869 869 — — 869 Derivative asset 8,819 8,819 — 8,819 — Financial Liabilities: Noninterest bearing deposits $ 346,172 $ 346,172 $ — $ 346,172 $ — NOW and money market 978,181 978,181 — 978,181 — Savings 97,331 97,331 — 97,331 — Time deposits 1,315,073 1,315,233 — — 1,315,233 Accrued interest payable 14,595 14,595 — 14,595 — Advances from the FHLB 90,000 90,012 — — 90,012 Subordinated debentures 69,205 63,060 — — 63,060 Servicing liability 4 4 — — 4 Derivative liability 4,496 4,496 — 4,496 — The following methods and assumptions were used by management in estimating the fair value of its financial instruments: Cash and due from banks, federal funds sold, accrued interest receivable and accrued interest payable: The carrying amount is a reasonable estimate of fair value. 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. Level 3 held to maturity securities represent private placement municipal housing authority bonds for which no quoted market price is available. The fair value for these securities is estimated using a discounted cash flow model, using discount rates ranging from 5.3% to 7.1% as of June 30, 2024 and 4.5% to 6.9% as of December 31, 2023. These securities are CRA eligible investments. FHLB stock: The carrying value of FHLB stock approximates fair value based on the most recent redemption provisions of the FHLB. Loans receivable: For variable rate loans which reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair value of fixed rate loans are estimated by discounting the future cash flows using the rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value methodology includes prepayment, default and loss severity assumptions applied by type of loan. The fair value estimate of the loans includes an expected credit loss. 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 discounte d 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). Deposits: The fair value of demand deposits, regular savings and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit and other time deposits is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities to a schedule of aggregated expected maturities on such deposits. Borrowings and subordinated debentures: The fair value of the Company’s borrowings and subordinated debentures is estimated using a discounted cash flow calculation that applies discount rates currently offered based on similar maturities. The Company also considers its own creditworthiness in determining the fair value of its borrowings and subordinated debt. Contractual cash flows for the subordinated debt are reduced based on the estimated rates of default, the severity of losses to be incurred on a default, and the rates at which the subordinated debt is expected to prepay after the call date. 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. Off-balance-sheet instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at June 30, 2024 and December 31, 2023 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, 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 six months ended June 30, 2024 and for the year ended December 31, 2023. Fair Value (In thousands) Level 1 Level 2 Level 3 June 30, 2024: Marketable equity securities $ 2,079 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 69,321 23,351 — Corporate bonds — 14,963 — Derivative asset — 9,958 — Derivative liability — 4,362 — December 31, 2023: Marketable equity securities $ 2,070 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 62,514 32,712 — Corporate bonds — 14,510 — Derivative asset — 8,819 — Derivative liability — 4,496 — 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 June 30, 2024 and December 31, 2023, 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 June 30, 2024: Individually evaluated loans $ — $ — $ 107,164 Servicing asset, net — — 590 December 31, 2023: Individually evaluated loans $ — $ — $ 104,050 Servicing asset, net — — 865 The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at June 30, 2024 and December 31, 2023: Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) June 30, 2024: Individually evaluated loans $ 39,004 Appraisals Discount to appraised value 8.00% 26,159 Appraisals, cash surrender value life insurance, securities, cash held as collateral Discounts to appraised value and securities value —% - 8.00% 42,001 Discounted cash flows Discount rate 3.38% - 10.75% $ 107,164 Servicing asset, net $ 590 Discounted cash flows Discount rate 10.00% Prepayment rate 3.00% - 18.00% December 31, 2023: Individually evaluated loans $ 31,527 Appraisals Discount to appraised value 8.00% 22,129 Appraisals, cash surrender value life insurance, securities, cash held as collateral Discounts to appraised value and securities value —% - 8.00% 50,394 Discounted cash flows Discount rate 3.38% - 10.75% $ 104,050 Servicing asset, net $ 865 Discounted cash flows Discount rate 10.00% Prepayment rate 3.00% - 17.00% Individually evaluated 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 ACL-Loans. 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. |
Subordinated debentures
Subordinated debentures | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
Subordinated debentures | Subordinated debentures 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 outstanding balance of subordinated debt issued in 2015 and 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. On August 19, 2022, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers, pursuant to which the Company issued and sold 6.0% fixed-to-floating rate subordinated notes due 2032 (the “2022 Notes”) in the aggregate principal amount of $35.0 million. The Company used the net proceeds from the sale of the 2022 Notes for general corporate purposes. The 2022 Notes bear interest at a fixed rate of 6.0% per year until August 31, 2027. Thereafter, the interest rate will reset quarterly at a variable rate equal to the then current three-month term SOFR plus 326 basis points. The 2022 Notes have a stated maturity of September 1, 2032 and are non-callable for five years. Beginning August 19, 2027, the Company may redeem the 2022 Notes, in whole or in part, at its option. The 2022 Notes are not subject to redemption at the option of the holder. The 2022 Notes have 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 June 30, 2024 and December 31, 2023, unamortize d debt issuance costs were $0.7 million and $0.8 million, respectively. Debt issuance costs amortize over the exp ected life of the related debt. For the three months ended June 30, 2024 and 2023 the amortization expense for debt issuance costs were $62 thousand and $62 thousand, respectively, and were recognized as an increase to interest expense on borrowings within the Consolidated Statements of Income. For the six months ended June 30, 2024 and 2023 the amortization expense for debt issuance costs were $123 thousand and $123 thousand, respectively. The Company recognized $0.8 million and $0.8 million in interest expense related to its subordinated debt for the three-month periods ended June 30, 2024 and 2023, respectively. The Company recognized $1.6 million and $1.6 million in interest expense related to its subordinated debt for the six-month periods ended June 30, 2024 and 2023, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 24, 2024, the Company’s Board of Directors declared a $0.20 per share cash dividend, payable on August 23, 2024, to shareholders of record on August 12, 2024. Subsequent to June 30, 2024, through July 11, 2024, the Company purchased 9,670 shares at a weighted average price of $23.86 per share. On July 31, 2024, a $3.0 million nonaccrual commercial real estate non-owner occupied loan was sold. As of July 31, 2024, nonaccrual loans were $53.1 million compared to $56.2 million |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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, and 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 Credit Losses-Loans ("ACL-Loans"), derivative instrument valuation, investment securities valuation, Allowance for Credit Losses-Securities, and deferred income taxes valuation. |
Segments | Segments The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. |
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, 2024. 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, 2023. |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk Many of the Company's activities are with clients located in Connecticut and New York, with the majority of the Company's commercial real estate investor 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, with a growing percentage being owner-occupied, which present a lower risk profile. |
ACL-Loans and Allowance for Credit Losses-Unfunded Commitments ("ACL-Unfunded Commitments") | ACL-Loans and Allowance for Credit Losses-Unfunded Commitments ("ACL-Unfunded Commitments") The ACL-Loans is measured on each loan’s amortized cost basis, excluding interest receivable, and is initially recognized upon origination or purchase of the loan, and subsequently remeasured on a recurring basis. The ACL-Loans is recognized as a contra-asset, and credit loss expense is recorded as a provision for loan losses in the consolidated statements of income. Loan losses are charged off against the ACL-Loans when management believes the loan is uncollectible. Subsequent recoveries, if any, are credited to the ACL-Loans. Loans are normally placed on nonaccrual status if it is probable that the Company will be unable to collect the full payment of principal and interest when due according to the contractual terms of the loan agreement, or the loan is past due for a period of 90 days or more unless the obligation is well-secured and is in the process of collection. The Company generally does not recognize an allowance for credit losses ("ACL") on accrued interest receivables, consistent with its policy to reverse interest income when interest is 90 days or more past due. The Company also records an ACL-Unfunded commitments, which is based on the same assumptions as funded loans and also considers the probability of funding. The ACL is recognized as a liability, and credit loss expense is recorded as a provision for unfunded loan commitments within the provision for credit losses in the Consolidated statements of income. For collectively evaluated loans and related unfunded commitments, the Company utilizes software provided by a third party, which includes various models for forecasting expected credit losses, to calculate its ACL. Management selected lifetime loss rate models, utilizing CRE, C&I, and Consumer specific models, to calculate the expected losses over the life of each loan based on exposure at default, loan attributes and reasonable, supportable economic forecasts. The models selected by the Company in its ACL calculation rely upon historical losses from a broad cross section of U.S. banks that also utilize the same third party for ACL calculations. Management reviewed the third party’s analysis of the banks included in the models as part of their model development dataset and determined the Company’s loan portfolio composition by property type, balance distribution by loan age, and delinquency status are similar, which supports the use of these loss rate models. The Company also noted the third party’s model development dataset has loan concentrations that are evenly distributed across the United States, while the Company’s portfolio is mainly concentrated in the Northeast. Based on the disparate regional concentration, management determined that a select group of peer banks is necessary to scale the loss rate models to produce an ACL that is more representative of the Company’s loan portfolio. This peer-based calibration, called a "peer scalar", utilizes the loss rates of a subset of peer banks to appropriately scale the initial model results. These peers have been selected by the Company given their similar characteristics, such as loan portfolio composition and location, to better align the models’ results to the Company’s expected losses. Key assumptions used in the models include portfolio segmentation, risk rating, forecasted economic scenarios, the peer scalar, and the expected utilization of unfunded commitments, among others. Our loan portfolios are segmented by loan level attributes such as loan type, size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated, and loss rates are subsequently applied to the pools as the loans have similar characteristics. To account for economic uncertainty, the Company incorporates multiple economic scenarios in determining the ACL. The scenarios include various projections based on variables such as Gross Domestic Product, interest rates, property price indices, and employment measures, among others. The scenarios are probability-weighted based on available information at the time the calculation is conducted. As part of our ongoing governance of ACL, scenario weightings and model parameters are reviewed periodically by management and are subject to change, as deemed appropriate. The Company also considers qualitative adjustments to expected credit loss estimates for information not already captured in the quantitative loss estimation models. Qualitative factor adjustments may increase or decrease management’s estimate of expected credit losses. Qualitative loss factors are based on the Company’s judgment of market, changes in loan composition or concentrations, performance trends, regulatory changes, uncertainty of macroeconomic forecasts, and other asset specific risk characteristics. When loans do not share risk characteristics with other financial assets they are evaluated individually. Management applies its normal loan review procedures in making these judgments. Individually evaluated loans consist of loans with credit quality indicators which are substandard or doubtful. The Company also individually evaluates all insurance premium loans. While insurance premium loans are considered consumer loans, the third-party Consumer ACL model is designed for unsecured lending, whereas these loans are secured. To account for the fully secured structure of this type of loan, management determined each loan will be individually evaluated, regardless of the credit quality indicators. These loans are evaluated based upon their collateral, which primarily consists of cash, cash surrender value life insurance, and in some cases real estate. In determining the ACL-Loans for individually evaluated loans, the Company generally applies a discounted cash flow method for instruments that are individually assessed. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable and where the borrower is experiencing financial difficulty, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. Fair value is generally calculated based on the value of the underlying collateral less an appraisal discount and the estimated cost to sell. |
ACL-Securities | ACL-Securities The Company individually evaluates the available for sale debt securities and held to maturity securities for impairment credit losses. Available for sale securities include U.S. Treasuries, mortgage-backed securities, and corporate bonds. U.S. Treasuries and mortgaged-backed securities are guaranteed by the U.S. Government and as a result, management has a zero loss expectation. No ACL-Securities was recorded for these securities as of June 30, 2024. For the corporate bond portfolio, the Company developed a metric that includes each issuer’s current credit ratings and key financial performance metrics to assess the underlying performance of each issuer. The analysis of the issuers’ performance and the intent of the Company to retain these securities support the determination that there is no expected credit loss, and therefore, no ACL-Securities were recognized on the corporate bond portfolio as of June 30, 2024. Of our held to maturity securities portfolio, one security’s fair value was less than its amortized cost as of June 30, 2024. Since this is a highly rated state agency and municipal obligation, the Company's expectation of nonpayment of the amortized cost basis is zero. No allowance for ALC-Securities was recorded for this security as of June 30, 2024. |
Common Share 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 2024 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. 2023-09—Income Taxes (Topic 740): "Improvements to Income Tax Disclosures": The amendments in this update provide more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2024. The Company believes this ASU will not have a material impact on existing disclosures and will continue to monitor for SEC action, and plan accordingly for adoption. ASU No. 2023-06, Disclosure Improvements: “Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”: The amendments in this update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments. The summary of the amendments applicable to the Company include: Statement of Cash Flows - Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows. Accounting Changes and Error Corrections - Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements. Earnings Per Share - Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings-per-share computation. Interim Reporting - Conforms to the amendments made to Topic 250 (Accounting Changes and Error Correction). Commitments - Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized. Debt - Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. Entities that are not public business entities are not required to provide information about the weighted-average interest rate. Equity - Requires entities that issue preferred stock to disclose preference in involuntary liquidation if the liquidation preference is other than par or stated value. Derivatives - Adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows in Topic 230. Transfers and Servicing—Secured Borrowing and Collateral - Requires: a. That accrued interest be included in the disclosure of liabilities incurred in securities borrowing or repurchase or resale transactions. b. Separate presentation of the aggregate carrying amount of reverse repurchase agreements on the face of the balance sheet if that amount exceeds 10 percent of total assets. c. Disclosure of the weighted-average interest rates of repurchase liabilities for public business entities. d. Disclosure of amounts at risk with an individual counterparty if that amount exceeds more than 10 percent of shareholder’s equity. e. Disclosure for reverse repurchase agreements that exceed 10 percent of total assets on whether there are any provisions in a reverse repurchase agreement to ensure that the market value of the underlying assets remains sufficient. to protect against counterparty default and, if so, the nature of those provisions. Financial Services - Requires that investment companies disclose the components of capital on the balance sheet. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this update are to be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Company believes this ASU will not have a material impact on existing disclosures and will continue to monitor for SEC action, and plan accordingly for adoption. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 were as follows: June 30, 2024 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 19,993 $ — $ (285) $ 19,708 Due from one through five years 52,556 8 (2,951) 49,613 Due from five through ten years 17,832 — (1,175) 16,657 Due after ten years 7,613 — (919) 6,694 Total U.S. Government and agency obligations 97,994 8 (5,330) 92,672 Corporate bonds Due from five through ten years 15,500 — (1,678) 13,822 Due after ten years 1,500 — (359) 1,141 Total corporate bonds 17,000 — (2,037) 14,963 Total available for sale securities $ 114,994 $ 8 $ (7,367) $ 107,635 Held to maturity securities: State agency and municipal obligations Due from five through ten years $ 2,830 $ — $ (75) $ 2,755 Due after ten years 25,426 1,664 (910) 26,180 Government-sponsored mortgage backed securities No contractual maturity 30 1 — 31 Total held to maturity securities $ 28,286 $ 1,665 $ (985) $ 28,966 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2023 were as follows: December 31, 2023 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 9,836 $ — $ (52) $ 9,784 Due from one through five years 55,288 123 (2,680) 52,731 Due from five through ten years 27,229 — (1,630) 25,599 Due after ten years 7,923 — (811) 7,112 Total U.S. Government and agency obligations 100,276 123 (5,173) 95,226 Corporate bonds Due from five through ten years 15,500 — (2,028) 13,472 Due after ten years 1,500 — (462) 1,038 Total corporate bonds 17,000 — (2,490) 14,510 Total available for sale securities $ 117,276 $ 123 $ (7,663) $ 109,736 Held to maturity securities: State agency and municipal obligations Due after ten years $ 15,785 $ 716 $ (631) $ 15,870 Government-sponsored mortgage backed securities No contractual maturity 32 1 — 33 Total held to maturity securities $ 15,817 $ 717 $ (631) $ 15,903 |
Schedule of Fair Value and Related Unrealized Losses of Temporarily Impaired Investment Securities, Aggregated by Investment Category | The following tables provide information regarding available for sale securities and held to maturity securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2024 and December 31, 2023: 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) June 30, 2024 U.S. Government and agency obligations $ — $ — — % $ 82,766 $ (5,330) 6.05 % $ 82,766 $ (5,330) 6.05 % Corporate bonds — — — 14,963 (2,037) 11.98 14,963 (2,037) 11.98 State agency and municipal obligations 6,004 (164) 2.66 3,852 (821) 17.57 9,856 (985) 9.09 Total investment securities $ 6,004 $ (164) 2.66 % $ 101,581 $ (8,188) 7.46 % $ 107,585 $ (8,352) 7.20 % 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, 2023 U.S. Government and agency obligations $ — $ — — % $ 85,243 $ (5,173) 5.72 % $ 85,243 $ (5,173) 5.72 % Corporate bonds — — — 14,510 (2,490) 14.65 14,510 (2,490) 14.65 State agency and municipal obligations — — — 4,076 (631) 13.41 4,076 (631) 13.41 Total investment securities $ — $ — — % $ 103,829 $ (8,294) 7.40 % $ 103,829 $ (8,294) 7.40 % |
Loans Receivable and ACL-Loans
Loans Receivable and ACL-Loans (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023: (In thousands) June 30, 2024 December 31, 2023 Real estate loans: Residential $ 47,875 $ 50,931 Commercial 1,912,701 1,947,648 Construction 150,259 183,414 2,110,835 2,181,993 Commercial business 503,444 500,569 Consumer 42,906 36,045 Total loans 2,657,185 2,718,607 ACL-Loans (36,083) (27,946) Deferred loan origination fees, net (4,411) (5,360) Loans receivable, net $ 2,616,691 $ 2,685,301 |
Schedule of Portfolio Segment and Impairment Methodology, of ACL-Loan and Related Portfolio | The following tables set forth the activity in the Company’s ACL-Loans for the three and six months ended June 30, 2024 and 2023, by portfolio segment: Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2024 Beginning balance $ 133 $ 21,666 $ 1,543 $ 4,078 $ 571 $ 27,991 Charge-offs (9) (522) — — (12) (543) Recoveries 141 113 — — 13 267 (Credit) provision for credit losses (142) 1,216 729 6,569 (4) 8,368 Ending balance $ 123 $ 22,473 $ 2,272 $ 10,647 $ 568 $ 36,083 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2023 Beginning balance $ 207 $ 19,413 $ 1,070 $ 6,593 $ 715 $ 27,998 Charge-offs — — — — (25) (25) Recoveries — — — 32 11 43 (Credit) provision for credit losses (17) 535 728 163 1,269 2,678 Ending balance $ 190 $ 19,948 $ 1,798 $ 6,788 $ 1,970 $ 30,694 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2024 Beginning balance $ 149 $ 20,950 $ 1,699 $ 4,562 $ 586 $ 27,946 Charge-offs (141) (3,828) — (197) (61) (4,227) Recoveries 141 113 — 27 17 298 (Credit) provision for credit losses (26) 5,238 573 6,255 26 12,066 Ending balance $ 123 $ 22,473 $ 2,272 $ 10,647 $ 568 $ 36,083 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2023 Balance as of December 31, 2022 $ 163 $ 15,597 $ 311 $ 6,214 $ 146 $ 22,431 Day1 effect of CECL 80 4,987 611 (1,125) 526 5,079 Balance as of January 1, 2023 as adjusted for changes in accounting principle 243 20,584 922 5,089 672 27,510 Charge-offs — — — (439) (37) (476) Recoveries — — — 33 15 48 (Credit) provision for credit losses (53) (636) 876 2,105 1,320 3,612 Ending balance $ 190 $ 19,948 $ 1,798 $ 6,788 $ 1,970 $ 30,694 Loans evaluated for impairment and the related ACL-Loans as of June 30, 2024 and December 31, 2023 were as follows: Portfolio ACL-Loans (In thousands) June 30, 2024 Loans individually evaluated for impairment: Residential real estate $ 3,631 $ — Commercial real estate 54,858 — Construction 9,382 778 Commercial business 20,922 7,010 Consumer 26,159 — Subtotal 114,952 7,788 Loans collectively evaluated for impairment: Residential real estate 44,244 123 Commercial real estate 1,857,843 22,473 Construction 140,877 1,494 Commercial business 482,522 3,637 Consumer 16,747 568 Subtotal 2,542,233 28,295 Total $ 2,657,185 $ 36,083 Portfolio ACL-Loans (In thousands) December 31, 2023 Loans individually evaluated for impairment: Residential real estate $ 3,711 $ — Commercial real estate 49,935 955 Construction 9,382 — Commercial business 19,848 — Consumer 22,129 — Subtotal 105,005 955 Loans collectively evaluated for impairment: Residential real estate 47,220 149 Commercial real estate 1,897,713 19,995 Construction 174,032 1,699 Commercial business 480,721 4,562 Consumer 13,916 586 Subtotal 2,613,602 26,991 Total $ 2,718,607 $ 27,946 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Balance at beginning of period $ 911 $ 1,165 $ 926 $ 80 Reversal of prior unfunded reserve — — — (80) Day 1 effect of CECL — — — 1,273 (Credit) for credit losses (unfunded commitments) (185) (99) (200) (207) Balance at end of period $ 726 $ 1,066 $ 726 $ 1,066 The following table summarizes the Provision for credit losses for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) Provision for credit losses (loans) $ 8,368 $ 2,678 $ 12,066 $ 3,612 (Credit) for credit losses (unfunded commitments) (185) (99) (200) (207) Provision for credit losses $ 8,183 $ 2,579 $ 11,866 $ 3,405 |
Schedule of Loan Portfolio Quality Indicators by Portfolio Segment | The following tables present loans by origination and risk designation as of June 30, 2024 and December 31, 2023 (dollars in thousands): Term Loans Amortized Cost Balances by Origination Year as of June 30, 2024 2024 2023 2022 2021 2020 Prior Total Residential Real Estate Loans Pass $ — $ — $ — $ — $ — $ 44,331 $ 44,331 Special Mention — — — — — 137 137 Substandard — — — — — 3,652 3,652 Doubtful — — — — — — — Total Residential Real Estate Loans $ — $ — $ — $ — $ — $ 48,120 $ 48,120 Residential Real Estate charge-off Current period charge-offs $ — $ — $ — $ — $ — $ 141 $ 141 Commercial Real Estate Loans Pass $ 49,958 $ 90,747 $ 763,916 $ 259,337 $ 96,638 $ 540,643 $ 1,801,239 Special Mention — 12,454 34,877 13,199 — 2,008 62,538 Substandard — 18,470 — 16,516 13,993 — 48,979 Doubtful — — — 1,594 — 4,423 6,017 Total Commercial Real Estate Loans $ 49,958 $ 121,671 $ 798,793 $ 290,646 $ 110,631 $ 547,074 $ 1,918,773 Commercial Real Estate charge-off Current period charge-offs $ — $ — $ — $ 522 $ — $ 3,306 $ 3,828 Construction Loans Pass $ — $ 45,027 $ 44,930 $ 51,565 $ — $ — $ 141,522 Special Mention — — — — — — — Substandard — — — — — 9,362 9,362 Doubtful — — — — — — — Total Construction Loans $ — $ 45,027 $ 44,930 $ 51,565 $ — $ 9,362 $ 150,884 Construction charge-off Current period charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial Business Loans Pass $ 66,944 $ 112,109 $ 199,731 $ 62,327 $ 6,485 $ 27,726 $ 475,322 Special Mention — — 7,479 1,009 — — 8,488 Substandard — 886 8,923 7,438 — 1,973 19,220 Doubtful — — — 1,720 — 76 1,796 Total Commercial Business Loans $ 66,944 $ 112,995 $ 216,133 $ 72,494 $ 6,485 $ 29,775 $ 504,826 Commercial Business charge-off Current period charge-offs $ — $ — $ — $ 197 $ — $ — $ 197 Consumer Loans Pass $ — $ 11,674 $ 29,466 $ — $ — $ 46 $ 41,186 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total Consumer Loans $ — $ 11,674 $ 29,466 $ — $ — $ 46 $ 41,186 Consumer charge-off Current period charge-offs $ 15 $ — $ — $ 46 $ — $ — $ 61 Total Loans Pass $ 116,902 $ 259,557 $ 1,038,043 $ 373,229 $ 103,123 $ 612,746 $ 2,503,600 Special Mention — 12,454 42,356 14,208 — 2,145 71,163 Substandard — 19,356 8,923 23,954 13,993 14,987 81,213 Doubtful — — — 3,314 — 4,499 7,813 Total Loans $ 116,902 $ 291,367 $ 1,089,322 $ 414,705 $ 117,116 $ 634,377 $ 2,663,789 Total charge-off Current period charge-offs $ 15 $ — $ — $ 765 $ — $ 3,447 $ 4,227 Term Loans Amortized Cost Balances by Origination Year as of December 31, 2023 2023 2022 2021 2020 2019 Prior Total Residential Real Estate Loans Pass $ — $ — $ — $ — $ — $ 47,314 $ 47,314 Special Mention — — — — — 140 140 Substandard — — — — — 3,728 3,728 Doubtful — — — — — — — Total Residential Real Estate Loans $ — $ — $ — $ — $ — $ 51,182 $ 51,182 Residential Real Estate charge-off Current period charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate Loans Pass $ 95,881 $ 755,352 $ 310,811 $ 113,554 $ 133,996 $ 429,695 $ 1,839,289 Special Mention 12,333 35,136 13,203 — 2,035 114 62,821 Substandard 18,525 — 16,923 — — 8,121 43,569 Doubtful — — 2,116 — — 4,272 6,388 Total Commercial Real Estate Loans $ 126,739 $ 790,488 $ 343,053 $ 113,554 $ 136,031 $ 442,202 $ 1,952,067 Commercial Real Estate charge-off Current period charge-offs $ — $ — $ 213 $ — $ — $ 611 $ 824 Construction Loans Pass $ 39,627 $ 67,788 $ 41,156 $ 26,156 $ — $ — $ 174,727 Special Mention — — — — — — — Substandard — — — — — 9,362 9,362 Doubtful — — — — — — — Total Construction Loans $ 39,627 $ 67,788 $ 41,156 $ 26,156 $ — $ 9,362 $ 184,089 Construction charge-off Current period charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial Business Loans Pass $ 121,312 $ 234,997 $ 73,805 $ 9,291 $ 6,504 $ 32,293 $ 478,202 Special Mention — 3,395 1,009 — — — 4,404 Substandard 892 8,934 7,910 — — 2,092 19,828 Doubtful — — — — — 103 103 Total Commercial Business Loans $ 122,204 $ 247,326 $ 82,724 $ 9,291 $ 6,504 $ 34,488 $ 502,537 Commercial Business charge-off Current period charge-offs $ — $ — $ — $ — $ 440 $ — $ 440 Consumer Loans Pass $ 10,126 $ 25,406 $ — $ — $ — $ 37 $ 35,569 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Total Consumer Loans $ 10,126 $ 25,406 $ — $ — $ — $ 37 $ 35,569 Consumer charge-off Current period charge-offs $ 83 $ — $ — $ — $ — $ — $ 83 Total Loans Pass $ 266,946 $ 1,083,543 $ 425,772 $ 149,001 $ 140,500 $ 509,339 $ 2,575,101 Special Mention 12,333 38,531 14,212 — 2,035 254 67,365 Substandard 19,417 8,934 24,833 — — 23,303 76,487 Doubtful — — 2,116 — — 4,375 6,491 Total Loans $ 298,696 $ 1,131,008 $ 466,933 $ 149,001 $ 142,535 $ 537,271 $ 2,725,444 Total charge-off Current period charge-offs $ 83 $ — $ 213 $ — $ 440 $ 611 $ 1,347 The following tables present credit risk ratings by loan segment as of June 30, 2024 and December 31, 2023: Commercial Credit Quality Indicators June 30, 2024 December 31, 2023 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,795,570 $ 140,877 $ 474,105 $ 2,410,552 $ 1,835,136 $ 174,032 $ 476,358 $ 2,485,526 Special Mention 62,273 — 8,417 70,690 62,577 — 4,362 66,939 Substandard 48,836 9,382 19,131 77,349 43,542 9,382 19,745 72,669 Doubtful 6,022 — 1,791 7,813 6,393 — 104 6,497 Loss — — — — — — — — Total loans $ 1,912,701 $ 150,259 $ 503,444 $ 2,566,404 $ 1,947,648 $ 183,414 $ 500,569 $ 2,631,631 Residential and Consumer Credit Quality Indicators June 30, 2024 December 31, 2023 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 44,109 $ 42,906 $ 87,015 $ 47,082 $ 36,045 $ 83,127 Special Mention 135 — 135 138 — 138 Substandard 3,631 — 3,631 3,711 — 3,711 Doubtful — — — — — — Loss — — — — — — Total loans $ 47,875 $ 42,906 $ 90,781 $ 50,931 $ 36,045 $ 86,976 |
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 June 30, 2024 and December 31, 2023: June 30, 2024 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 $ 997 $ 150 $ 1,189 $ 2,336 $ 45,539 $ 47,875 Commercial real estate 90 595 1,388 2,073 1,910,628 1,912,701 Construction — — 9,382 9,382 140,877 150,259 Commercial business 5 14 8,621 8,640 494,804 503,444 Consumer — — — — 42,906 42,906 Total loans $ 1,092 $ 759 $ 20,580 $ 22,431 $ 2,634,754 $ 2,657,185 December 31, 2023 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 $ — $ 1,220 $ 132 $ 1,352 $ 49,579 $ 50,931 Commercial real estate 195 282 1,851 2,328 1,945,320 1,947,648 Construction — — 9,382 9,382 174,032 183,414 Commercial business 6,568 1,648 — 8,216 492,353 500,569 Consumer — — — — 36,045 36,045 Total loans $ 6,763 $ 3,150 $ 11,365 $ 21,278 $ 2,697,329 $ 2,718,607 |
Schedule of Nonaccrual Loans by Portfolio Segment | The following is a summary of nonaccrual loans by portfolio segment as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (In thousands) Residential real estate $ 1,339 $ 1,386 Commercial real estate 28,088 23,009 Commercial business 17,396 15,430 Construction 9,382 9,382 Consumer — — Total $ 56,205 $ 49,207 |
Schedule of Loans Whose Terms were Modified as Tdrs During the Periods | The following table summarizes individually evaluated loans by portfolio segment as of June 30, 2024 and December 31, 2023. Carrying Amount Unpaid Principal Balance Associated ACL-Loans June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 (In thousands) Individually evaluated loans without a valuation allowance: Residential real estate $ 3,631 $ 3,711 $ 3,918 $ 4,022 $ — $ — Commercial real estate 54,858 43,942 59,372 45,032 — — Construction — 9,382 — 9,382 — — Commercial business 12,224 19,848 13,310 20,502 — — Consumer 26,159 22,129 26,159 22,129 — — Total individually evaluated loans without a valuation allowance 96,872 99,012 102,759 101,067 — — Individually evaluated loans with a valuation allowance: Residential real estate $ — $ — $ — $ — $ — $ — Commercial real estate — 5,993 — 6,017 — 955 Construction 9,382 — 9,382 — 778 — Commercial business 8,698 — 9,089 — 7,010 — Consumer — — — — — — Total individually evaluated loans with a valuation allowance 18,080 5,993 18,471 6,017 7,788 955 Total individually evaluated loans $ 114,952 $ 105,005 $ 121,230 $ 107,084 $ 7,788 $ 955 The following tables summarize the average carrying amount of individually evaluated loans and interest income recognized on individually evaluated loans by portfolio segment for the three and six months ended June 30, 2024 and 2023: Average Carrying Amount Interest Income Recognized Three Months Ended June 30, Three Months Ended June 30, 2024 2023 2024 2023 (In thousands) Individually evaluated loans without a valuation allowance: Residential real estate $ 3,640 $ 3,794 $ 42 $ 20 Commercial real estate 55,291 1,907 552 — Commercial business 12,423 4,901 211 40 Construction — 9,382 — — Consumer 26,156 — 400 — Total individually evaluated loans without a valuation allowance 97,510 19,984 1,205 60 Individually evaluated loans with a valuation allowance: Residential real estate $ — $ — $ — $ — Commercial real estate — 15,890 — 87 Commercial business 8,516 — 878 — Construction 9,382 — — — Consumer — — — — Total individually evaluated loans with a valuation allowance 17,898 15,890 878 87 Total individually evaluated loans $ 115,408 $ 35,874 $ 2,083 $ 147 Average Carrying Amount Interest Income Recognized Six Months Ended June 30, Six Months Ended June 2024 2023 2024 2023 (In thousands) Individually evaluated loans without a valuation allowance: Residential real estate $ 3,656 $ 3,814 $ 85 $ 40 Commercial real estate 57,247 1,912 1,094 — Commercial business 12,745 5,035 618 84 Construction — 9,382 — — Consumer 25,840 — 736 — Total individually evaluated loans without a valuation allowance 99,488 20,143 2,533 124 Individually evaluated loans with a valuation allowance: Residential real estate $ — $ — $ — $ — Commercial real estate — 15,891 — 173 Commercial business 8,607 — 1,039 — Construction 9,382 — — — Consumer — — — — Total individually evaluated loans with a valuation allowance 17,989 15,891 1,039 173 Total individually evaluated loans $ 117,477 $ 36,034 $ 3,572 $ 297 Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2024 2023 2024 2023 2024 2023 Three Months Ended June 30, Residential real estate — — $ — $ — $ — $ — Commercial business — — — — — — Commercial real estate — — — — — — Total — — $ — $ — $ — $ — Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2024 2023 2024 2023 2024 2023 Six Months Ended June 30, Residential real estate — — $ — $ — $ — $ — Commercial business — — — — — — Commercial real estate — — — — — — Total — — $ — $ — $ — $ — |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 (loss) income by component, net of tax for the three and six months ended June 30, 2024 and June 30, 2023: Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2024 $ (5,926) $ 4,207 $ (1,719) Other comprehensive income (loss) before reclassifications, net of tax 304 420 724 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (961) (961) Net other comprehensive income (loss) 304 (541) (237) Balance at June 30, 2024 $ (5,622) $ 3,666 $ (1,956) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2023 $ (6,116) $ 4,982 $ (1,134) Other comprehensive (loss) income before reclassifications, net of tax (1,495) 1,770 275 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (857) (857) Net other comprehensive (loss) income (1,495) 913 (582) Balance at June 30, 2023 $ (7,611) $ 5,895 $ (1,716) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2023 $ (5,810) $ 4,146 $ (1,664) Other comprehensive income (loss) before reclassifications, net of tax 188 1,695 1,883 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (2,175) (2,175) Net other comprehensive income (loss) 188 (480) (292) Balance at June 30, 2024 $ (5,622) $ 3,666 $ (1,956) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2022 $ (6,750) $ 6,561 $ (189) Other comprehensive (loss) income before reclassifications, net of tax (861) 973 112 Amounts reclassified from accumulated other comprehensive (loss) income, net of tax — (1,639) (1,639) Net other comprehensive (loss) income (861) (666) (1,527) Balance at June 30, 2023 $ (7,611) $ 5,895 $ (1,716) |
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 June 30, Six Months Ended June 30, Associated Line Item in the Consolidated Statements of Income 2024 2023 2024 2023 (In thousands) Derivatives: Unrealized gains on derivatives $ 1,257 $ 1,112 $ 2,514 $ 2,094 Interest expense on borrowings Tax expense (296) (255) (339) (455) Income tax expense Net of tax $ 961 $ 857 $ 2,175 $ 1,639 |
Earnings per share ("EPS") (Tab
Earnings per share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 (In thousands, except per share data) Net income $ 1,118 $ 7,983 $ 4,881 $ 18,362 Dividends to participating securities (1) (40) (41) (79) (84) Undistributed earnings allocated to participating securities (1) 14 (172) (52) (403) Net income for earnings per share calculation $ 1,092 $ 7,770 $ 4,750 $ 17,875 Weighted average shares outstanding, basic 7,748 7,593 7,706 7,574 Effect of dilutive equity-based awards (2) (24) 9 16 66 Weighted average shares outstanding, diluted 7,724 7,602 7,722 7,640 Net earnings per common share: Basic earnings per common share $ 0.14 $ 1.02 $ 0.62 $ 2.36 Diluted earnings per common share $ 0.14 $ 1.02 $ 0.62 $ 2.34 (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) | 6 Months Ended |
Jun. 30, 2024 | |
Regulatory Matters [Abstract] | |
Schedule of Capital Amounts and Ratios | The capital amounts and ratios for the Bank and the Company at June 30, 2024 and December 31, 2023 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 June 30, 2024 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 324,443 11.67 % $ 194,589 7.00 % $ 180,690 6.50 % Tier I Capital to Risk-Weighted Assets 324,443 11.67 % 236,287 8.50 % 222,388 8.00 % Total Capital to Risk-Weighted Assets 359,216 12.92 % 291,884 10.50 % 277,985 10.00 % Tier I Capital to Average Assets 324,443 10.17 % 127,556 4.00 % 159,444 5.00 % Minimum Regulatory Capital Required for Capital Adequacy Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital Amount Ratio Amount Ratio Amount Ratio Bankwell Financial Group, Inc. June 30, 2024 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 265,918 9.56 % $ 125,229 4.50 % $ 180,886 6.50 % Tier I Capital to Risk-Weighted Assets 265,918 9.56 % 166,972 6.00 % 222,629 8.00 % Total Capital to Risk-Weighted Assets 370,019 13.30 % 222,629 8.00 % 278,287 10.00 % Tier I Capital to Average Assets 265,918 8.34 % 127,556 4.00 % 159,444 5.00 % 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, 2023 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 321,432 11.30 % $ 199,047 7.00 % $ 184,829 6.50 % Tier I Capital to Risk-Weighted Assets 321,432 11.30 % 241,700 8.50 % 227,482 8.00 % Total Capital to Risk-Weighted Assets 350,303 12.32 % 298,571 10.50 % 284,353 10.00 % Tier I Capital to Average Assets 321,432 9.81 % 131,110 4.00 % 163,888 5.00 % Minimum Regulatory Capital Required for Capital Adequacy Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital Amount Ratio Amount Ratio Amount Ratio Bankwell Financial Group, Inc. December 31, 2023 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 264,209 9.28 % $ 128,121 4.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 264,209 9.28 % 170,828 6.00 % N/A N/A Total Capital to Risk-Weighted Assets 362,285 12.72 % 227,770 8.00 % N/A N/A Tier I Capital to Average Assets 264,209 8.05 % 131,232 4.00 % N/A N/A |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | At June 30, 2024 and December 31, 2023, deposits consisted of the following: June 30, 2024 December 31, 2023 (In thousands) Noninterest bearing demand deposit accounts $ 328,475 $ 346,172 Interest bearing accounts: NOW 122,112 90,829 Money market 825,599 887,352 Savings 91,870 97,331 Time certificates of deposit 1,294,319 1,315,073 Total interest bearing accounts 2,333,900 2,390,585 Total deposits $ 2,662,375 $ 2,736,757 |
Schedule of Time Deposits Maturity Schedule | Maturities of time certificates of deposit as of June 30, 2024 and December 31, 2023 are summarized below: June 30, 2024 December 31, 2023 (In thousands) 2024 $ 596,101 $ 979,807 2025 679,845 318,961 2026 1,413 24 2027 711 68 2028 and thereafter 16,249 16,213 Total $ 1,294,319 $ 1,315,073 |
Schedule of Interest Expense | The following table summarizes interest expense on deposits by account type for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (In thousands) NOW $ 49 $ 42 $ 88 $ 81 Money market 8,552 8,083 17,698 14,468 Savings 688 860 1,402 1,586 Time certificates of deposits 15,388 11,792 30,851 21,675 Total interest expense on deposits $ 24,677 $ 20,777 $ 50,039 $ 37,810 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Activity for Restricted Stock | The following table presents the activity for restricted stock for the six months ended June 30, 2024: Six Months Ended June 30, 2024 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 254,328 (1) $ 29.58 Granted 62,903 (2) 24.60 Vested (83,006) (3) 26.10 Forfeited (2,700) 24.19 Unvested at end of period 231,525 (1) Inclu des 33,115 shares of performance based restricted stock. (2) Includes 18,598 shares of performance based restricted stock. (3) Includes 15,694 shares of performance based restricted stock. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Portfolio Layer Method Hedged Asset | The following table represents the carrying value of the portfolio layer method hedged asset and the cumulative fair value hedging adjustment included in the carrying value of the hedged asset as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Carrying Value of Hedged Asset Hedged Items (In thousands) Fixed Rate Asset (1) $ 149,055 $ 150,915 $ (945) $ 915 (1) These amounts include the amortized cost basis of closed portfolios of fixed rate loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. As of June 30, 2024 and December 31, 2023, the amortized cost basis of the closed portfolio used in this hedging relationship was $575.9 million and $611.5 million , the cumulative basis adjustments associated with this hedging relationships was $1.8 million and $1.1 million, respectively. As of June 30, 2024 and December 31, 2023, t he amount of the designated hedged item was $150.0 million, respectively. |
Schedule of Derivative Instruments | Information about derivative instruments at June 30, 2024 and December 31, 2023 is as follows: As of June 30, 2024 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: Cash flow swaps $ 125,000 Other assets $ 4,663 $ — Accrued expenses and other liabilities $ — Fair value swap $ 150,000 Other assets $ 933 $ — Accrued expenses and other liabilities $ — Derivatives not designated as hedging instruments: Cash flow swaps (1) $ 38,500 Other assets $ 4,362 $ 38,500 Accrued expenses and other liabilities $ 4,362 (1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party. As of December 31, 2023 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: Cash flow swaps $ 125,000 Other assets $ 5,240 $ — Accrued expenses and other liabilities $ — Fair value swap $ 150,000 Other assets $ — $ — Accrued expenses and other liabilities $ 917 Derivatives not designated as hedging instruments: Cash flow swaps (1) $ 38,500 Other assets $ 3,579 $ 38,500 Accrued expenses and other liabilities $ 3,579 (1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party. |
Schedule of Changes in the Consolidated Statements of Comprehensive Income (Loss) 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 and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Interest rate swaps designated as cash flow hedges: Unrealized gain (loss) recognized in accumulated other comprehensive income before reclassifications $ 548 $ 2,297 $ 1,931 $ 1,298 Amounts reclassified from accumulated other comprehensive income (1,257) (1,112) (2,514) (2,094) Income tax (expense) benefit on items recognized in accumulated other comprehensive income 168 (272) 102 130 Other comprehensive income $ (541) $ 913 $ (481) $ (666) |
Schedule of Derivative Fair Value Hedge Recognized in Consolidated Statements of Income | The following table summarizes the effect of the fair value hedging relationship recognized in the consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 (Loss) gain on fair value hedging relationship: Hedged asset $ (192) $ (3,084) $ (1,860) $ (680) Fair value derivative designated as hedging instrument 610 3,358 1,772 1,005 Total gain (loss) recognized in the consolidated statements of income within interest and fees on loans $ 418 $ 274 $ (88) $ 325 |
Schedule of Gross and Net Information about 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 June 30, 2024 and December 31, 2023: June 30, 2024 (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 $ 10,881 $ — $ 10,881 $ — $ 10,614 $ 267 (1) Includes accru ed interest receivable totaling $923 thousand . June 30, 2024 (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 $ 4,432 $ — $ 4,432 $ — $ — $ 4,432 (1) Includes ac crued interest payable totaling $70 thousand . December 31, 2023 (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 $ 9,583 $ — $ 9,583 $ — $ 8,599 $ 984 (1) Includes accrued interest receivable totaling $764 thousand. December 31, 2023 (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 $ 4,473 $ — $ 4,473 $ — $ — $ 4,473 (1) Includes net interest receivable totaling $23 thousand. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 234,277 $ 234,277 $ 234,277 $ — $ — Federal funds sold 17,103 17,103 17,103 — — Marketable equity securities 2,079 2,079 2,079 — — Available for sale securities 107,635 107,635 69,321 38,314 — Held to maturity securities 28,286 28,965 — 31 28,934 Loans receivable, net 2,616,691 2,582,592 — — 2,582,592 Accrued interest receivable 14,675 14,675 — 14,675 — FHLB stock 5,655 5,655 — 5,655 — Servicing asset, net of valuation allowance 590 590 — — 590 Derivative asset 9,958 9,958 — 9,958 — Financial Liabilities: Noninterest bearing deposits $ 328,475 $ 328,475 $ — $ 328,475 $ — NOW and money market 947,711 947,711 — 947,711 — Savings 91,870 91,870 — 91,870 — Time deposits 1,294,319 1,294,759 — — 1,294,759 Accrued interest payable 14,186 14,186 — 14,186 — Advances from the FHLB 90,000 89,991 — — 89,991 Subordinated debentures 69,328 64,788 — — 64,788 Servicing liability — — — — — Derivative liability 4,362 4,362 — 4,362 — December 31, 2023 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 267,521 $ 267,521 $ 267,521 $ — $ — Federal funds sold 1,636 1,636 1,636 — — Marketable equity securities 2,070 2,070 2,070 — — Available for sale securities 109,736 109,736 62,514 47,222 — Held to maturity securities 15,817 15,903 — 33 15,870 Loans receivable, net 2,685,301 2,659,667 — — 2,659,667 Accrued interest receivable 14,863 14,863 — 14,863 — FHLB stock 5,696 5,696 — 5,696 — Servicing asset, net of valuation allowance 869 869 — — 869 Derivative asset 8,819 8,819 — 8,819 — Financial Liabilities: Noninterest bearing deposits $ 346,172 $ 346,172 $ — $ 346,172 $ — NOW and money market 978,181 978,181 — 978,181 — Savings 97,331 97,331 — 97,331 — Time deposits 1,315,073 1,315,233 — — 1,315,233 Accrued interest payable 14,595 14,595 — 14,595 — Advances from the FHLB 90,000 90,012 — — 90,012 Subordinated debentures 69,205 63,060 — — 63,060 Servicing liability 4 4 — — 4 Derivative liability 4,496 4,496 — 4,496 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, 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 six months ended June 30, 2024 and for the year ended December 31, 2023. Fair Value (In thousands) Level 1 Level 2 Level 3 June 30, 2024: Marketable equity securities $ 2,079 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 69,321 23,351 — Corporate bonds — 14,963 — Derivative asset — 9,958 — Derivative liability — 4,362 — December 31, 2023: Marketable equity securities $ 2,070 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 62,514 32,712 — Corporate bonds — 14,510 — Derivative asset — 8,819 — Derivative liability — 4,496 — |
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 June 30, 2024 and December 31, 2023, 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 June 30, 2024: Individually evaluated loans $ — $ — $ 107,164 Servicing asset, net — — 590 December 31, 2023: Individually evaluated loans $ — $ — $ 104,050 Servicing asset, net — — 865 |
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 June 30, 2024 and December 31, 2023: Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) June 30, 2024: Individually evaluated loans $ 39,004 Appraisals Discount to appraised value 8.00% 26,159 Appraisals, cash surrender value life insurance, securities, cash held as collateral Discounts to appraised value and securities value —% - 8.00% 42,001 Discounted cash flows Discount rate 3.38% - 10.75% $ 107,164 Servicing asset, net $ 590 Discounted cash flows Discount rate 10.00% Prepayment rate 3.00% - 18.00% December 31, 2023: Individually evaluated loans $ 31,527 Appraisals Discount to appraised value 8.00% 22,129 Appraisals, cash surrender value life insurance, securities, cash held as collateral Discounts to appraised value and securities value —% - 8.00% 50,394 Discounted cash flows Discount rate 3.38% - 10.75% $ 104,050 Servicing asset, net $ 865 Discounted cash flows Discount rate 10.00% Prepayment rate 3.00% - 17.00% |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies - Narratives (Details) | 6 Months Ended |
Jun. 30, 2024 mi² segment | |
Real Estate Properties | |
Number of reportable segments | segment | 1 |
Connecticut | |
Real Estate Properties | |
Area of land (in miles) | mi² | 100 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Available for Sale and Held to Maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Available for sale securities: | ||
Amortized cost | $ 114,994 | $ 117,276 |
Gross unrealized gains | 8 | 123 |
Gross unrealized losses | (7,367) | (7,663) |
Fair value | 107,635 | 109,736 |
Held to maturity securities: | ||
Amortized cost | 28,286 | 15,817 |
Gross unrealized gains | 1,665 | 717 |
Gross unrealized losses | (985) | (631) |
Fair value | 28,966 | 15,903 |
U.S. Government and agency obligations | ||
Available for sale securities: | ||
Amortized cost, less than one year | 19,993 | 9,836 |
Gross unrealized gains, less than one year | 0 | 0 |
Gross unrealized losses, less than one year | (285) | (52) |
Fair value, less than one year | 19,708 | 9,784 |
Amortized cost, due from one through five years | 52,556 | 55,288 |
Gross unrealized gains, due from one through five years | 8 | 123 |
Gross unrealized losses, due from one through five years | (2,951) | (2,680) |
Fair value, due from one through five years | 49,613 | 52,731 |
Amortized cost, due from five through ten years | 17,832 | 27,229 |
Gross unrealized gains, due from five through ten years | 0 | 0 |
Gross unrealized losses, due from five through ten years | (1,175) | (1,630) |
Fair value, due from five through ten years | 16,657 | 25,599 |
Amortized cost, due after ten years | 7,613 | 7,923 |
Gross unrealized gains, due after ten years | 0 | 0 |
Gross unrealized losses, due after ten years | (919) | (811) |
Fair value, due after ten years | 6,694 | 7,112 |
Amortized cost | 97,994 | 100,276 |
Gross unrealized gains | 8 | 123 |
Gross unrealized losses | (5,330) | (5,173) |
Fair value | 92,672 | 95,226 |
Corporate bonds | ||
Available for sale securities: | ||
Amortized cost, due from five through ten years | 15,500 | 15,500 |
Gross unrealized gains, due from five through ten years | 0 | 0 |
Gross unrealized losses, due from five through ten years | (1,678) | (2,028) |
Fair value, due from five through ten years | 13,822 | 13,472 |
Amortized cost, due after ten years | 1,500 | 1,500 |
Gross unrealized gains, due after ten years | 0 | 0 |
Gross unrealized losses, due after ten years | (359) | (462) |
Fair value, due after ten years | 1,141 | 1,038 |
Amortized cost | 17,000 | 17,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2,037) | (2,490) |
Fair value | 14,963 | 14,510 |
State agency and municipal obligations | ||
Held to maturity securities: | ||
Amortized cost, due from five through ten years | 2,830 | |
Gross unrealized gains, due from five through ten years | 0 | |
Gross unrealized losses, due from five through ten years | (75) | |
Fair valur, due from five through ten years | 2,755 | |
Amortized cost, due after ten years | 25,426 | 15,785 |
Gross unrealized gains, due after ten years | 1,664 | 716 |
Gross unrealized losses, due after ten years | (910) | (631) |
Fair Value, due after ten years | 26,180 | 15,870 |
Government-sponsored mortgage backed securities | ||
Held to maturity securities: | ||
Amortized cost, no contractual maturity | 30 | 32 |
Gross unrealized gains, no contractual maturity | 1 | 1 |
Gross unrealized losses, no contractual maturity | 0 | 0 |
Fair Value, no contractual maturity | $ 31 | $ 33 |
Investment Securities - Sched_2
Investment Securities - Schedule of Fair Value and Related Unrealized Losses of Temporarily Impaired Investment Securities, Aggregated by Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 6,004 | $ 0 |
Less than 12 months - unrealized loss | $ (164) | $ 0 |
Less than 12 months - percent decline from amortized cost | 2.66% | 0% |
12 months or more - fair value | $ 101,581 | $ 103,829 |
12 months or more - unrealized loss | $ (8,188) | $ (8,294) |
12 months or more - percent decline from amortized cost | 7.46% | 7.40% |
Fair value - total | $ 107,585 | $ 103,829 |
Unrealized loss - total | $ (8,352) | $ (8,294) |
Percent decline from amortized cost - total | 7.20% | 7.40% |
U.S. Government and agency obligations | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 0 | $ 0 |
Less than 12 months - unrealized loss | $ 0 | $ 0 |
Less than 12 months - percent decline from amortized cost | 0% | 0% |
12 months or more - fair value | $ 82,766 | $ 85,243 |
12 months or more - unrealized loss | $ (5,330) | $ (5,173) |
12 months or more - percent decline from amortized cost | 6.05% | 5.72% |
Fair value - total | $ 82,766 | $ 85,243 |
Unrealized loss - total | $ (5,330) | $ (5,173) |
Percent decline from amortized cost - total | 6.05% | 5.72% |
Corporate bonds | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 0 | $ 0 |
Less than 12 months - unrealized loss | $ 0 | $ 0 |
Less than 12 months - percent decline from amortized cost | 0% | 0% |
12 months or more - fair value | $ 14,963 | $ 14,510 |
12 months or more - unrealized loss | $ (2,037) | $ (2,490) |
12 months or more - percent decline from amortized cost | 11.98% | 14.65% |
Fair value - total | $ 14,963 | $ 14,510 |
Unrealized loss - total | $ (2,037) | $ (2,490) |
Percent decline from amortized cost - total | 11.98% | 14.65% |
State agency and municipal obligations | ||
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | ||
Less than 12 months - fair value | $ 6,004 | $ 0 |
Less than 12 months - unrealized loss | $ (164) | $ 0 |
Less than 12 months - percent decline from amortized cost | 2.66% | 0% |
12 months or more - fair value | $ 3,852 | $ 4,076 |
12 months or more - unrealized loss | $ (821) | $ (631) |
12 months or more - percent decline from amortized cost | 17.57% | 13.41% |
Fair value - total | $ 9,856 | $ 4,076 |
Unrealized loss - total | $ (985) | $ (631) |
Percent decline from amortized cost - total | 9.09% | 13.41% |
Investment Securities - Narrati
Investment Securities - Narratives (Details) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) security | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) security | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities | $ 0 | $ 0 | |
Marketable equity securities, at fair value | 2,079,000 | $ 2,070,000 | |
Marketable equity securities at amortized cost | $ 2,200,000 | $ 2,200,000 | |
Number of available for sales debt securities in continuous loss position (positions) | security | 36 | 34 |
Loans Receivable and ACL-Loan_2
Loans Receivable and ACL-Loans - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans and Leases Receivable Disclosure | ||||||
Total loans | $ 2,657,185 | $ 2,718,607 | ||||
ACL-Loans | (36,083) | $ (27,991) | (27,946) | $ (30,694) | $ (27,998) | $ (22,431) |
Deferred loan origination fees, net | (4,411) | (5,360) | ||||
Loans receivable, net | 2,616,691 | 2,685,301 | ||||
Real estate loan | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 2,110,835 | 2,181,993 | ||||
Residential | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 47,875 | 50,931 | ||||
ACL-Loans | (123) | (133) | (149) | (190) | (207) | (163) |
Commercial | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 1,912,701 | 1,947,648 | ||||
ACL-Loans | (22,473) | (21,666) | (20,950) | (19,948) | (19,413) | (15,597) |
Construction | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 150,259 | 183,414 | ||||
ACL-Loans | (2,272) | (1,543) | (1,699) | (1,798) | (1,070) | (311) |
Commercial Business | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 503,444 | 500,569 | ||||
ACL-Loans | (10,647) | (4,078) | (4,562) | (6,788) | (6,593) | (6,214) |
Consumer | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 42,906 | 36,045 | ||||
ACL-Loans | $ (568) | $ (571) | $ (586) | $ (1,970) | $ (715) | $ (146) |
Loans Receivable and ACL-Loan_3
Loans Receivable and ACL-Loans - Narratives (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 USD ($) loan | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Percentage of market value of the collateral (as a percent) | 80% | ||
Maximum percentage of market value of the collateral (as a percent) | 85% | ||
Maximum percent of the loan in comparison with original appraised value of the property (as a percent) | 80% | ||
Number of loans | loan | 0 | 0 | |
Income contractually due but not recognized on originated nonaccrual loans | $ 1,200,000 | $ 4,200,000 | |
Non-accrual loans with no allowance for loans losses | 38,100,000 | $ 48,300,000 | |
Recorded investment in TDR | $ 0 | $ 0 |
Loans Receivable and ACL-Loan_4
Loans Receivable and ACL-Loans - Schedule of Portfolio Segment and Impairment Methodology, of ACL-Loan and Related Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
ACL-Loan and Lease Losses | ||||
Beginning balance | $ 27,991 | $ 27,998 | $ 27,946 | $ 22,431 |
Charge-offs | (543) | (25) | (4,227) | (476) |
Recoveries | 267 | 43 | 298 | 48 |
(Credit) provision for credit losses | 8,183 | 2,579 | 11,866 | 3,405 |
Ending balance | 36,083 | 30,694 | 36,083 | 30,694 |
(Credit) provision for credit losses | ||||
ACL-Loan and Lease Losses | ||||
(Credit) provision for credit losses | 8,368 | 2,678 | 12,066 | 3,612 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 5,079 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 27,510 | |||
Residential Real Estate | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 133 | 207 | 149 | 163 |
Charge-offs | (9) | 0 | (141) | 0 |
Recoveries | 141 | 0 | 141 | 0 |
Ending balance | 123 | 190 | 123 | 190 |
Residential Real Estate | (Credit) provision for credit losses | ||||
ACL-Loan and Lease Losses | ||||
(Credit) provision for credit losses | (142) | (17) | (26) | (53) |
Residential Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 80 | |||
Residential Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 243 | |||
Commercial Real Estate | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 21,666 | 19,413 | 20,950 | 15,597 |
Charge-offs | (522) | 0 | (3,828) | 0 |
Recoveries | 113 | 0 | 113 | 0 |
Ending balance | 22,473 | 19,948 | 22,473 | 19,948 |
Commercial Real Estate | (Credit) provision for credit losses | ||||
ACL-Loan and Lease Losses | ||||
(Credit) provision for credit losses | 1,216 | 535 | 5,238 | (636) |
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 4,987 | |||
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 20,584 | |||
Construction | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 1,543 | 1,070 | 1,699 | 311 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending balance | 2,272 | 1,798 | 2,272 | 1,798 |
Construction | (Credit) provision for credit losses | ||||
ACL-Loan and Lease Losses | ||||
(Credit) provision for credit losses | 729 | 728 | 573 | 876 |
Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 611 | |||
Construction | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 922 | |||
Commercial Business | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 4,078 | 6,593 | 4,562 | 6,214 |
Charge-offs | 0 | 0 | (197) | (439) |
Recoveries | 0 | 32 | 27 | 33 |
Ending balance | 10,647 | 6,788 | 10,647 | 6,788 |
Commercial Business | (Credit) provision for credit losses | ||||
ACL-Loan and Lease Losses | ||||
(Credit) provision for credit losses | 6,569 | 163 | 6,255 | 2,105 |
Commercial Business | Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | (1,125) | |||
Commercial Business | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 5,089 | |||
Consumer | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 571 | 715 | 586 | 146 |
Charge-offs | (12) | (25) | (61) | (37) |
Recoveries | 13 | 11 | 17 | 15 |
Ending balance | 568 | 1,970 | 568 | 1,970 |
Consumer | (Credit) provision for credit losses | ||||
ACL-Loan and Lease Losses | ||||
(Credit) provision for credit losses | $ (4) | $ 1,269 | $ 26 | 1,320 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 526 | |||
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | $ 672 |
Loans Receivable and ACL-Loan_5
Loans Receivable and ACL-Loans - Origination and Risk Designation (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | $ 116,902 | $ 298,696 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 291,367 | 1,131,008 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,089,322 | 466,933 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 414,705 | 149,001 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 117,116 | 142,535 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 634,377 | 537,271 |
Total loans | 2,663,789 | 2,725,444 |
Charge Off | ||
Charge, year one | 15 | 83 |
Charge off, year two | 0 | 0 |
Charge off, year three | 0 | |
Charge off, year three | 213 | |
Charge off, year four | 0 | |
Charge off, year four | 765 | |
Charge off, year five | 0 | 440 |
Charge off, year after year five | 3,447 | 611 |
Charge offs | 4,227 | 1,347 |
Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 116,902 | 266,946 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 259,557 | 1,083,543 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 1,038,043 | 425,772 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 373,229 | 149,001 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 103,123 | 140,500 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 612,746 | 509,339 |
Total loans | 2,503,600 | 2,575,101 |
Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 12,333 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 12,454 | 38,531 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 42,356 | 14,212 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 14,208 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 2,035 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 2,145 | 254 |
Total loans | 71,163 | 67,365 |
Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 19,417 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 19,356 | 8,934 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 8,923 | 24,833 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 23,954 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 13,993 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 14,987 | 23,303 |
Total loans | 81,213 | 76,487 |
Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 2,116 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 3,314 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 4,499 | 4,375 |
Total loans | 7,813 | 6,491 |
Residential Real Estate Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 48,120 | 51,182 |
Total loans | 48,120 | 51,182 |
Residential Real Estate Loans | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 44,331 | 47,314 |
Total loans | 44,331 | 47,314 |
Residential Real Estate Loans | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 137 | 140 |
Total loans | 137 | 140 |
Residential Real Estate Loans | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 3,652 | 3,728 |
Total loans | 3,652 | 3,728 |
Residential Real Estate Loans | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 0 | 0 |
Residential Real Estate charge-off | ||
Charge Off | ||
Charge off, year one | 0 | 0 |
Charge off, year two | 0 | 0 |
Charge off, year three | 0 | 0 |
Charge off, year four | 0 | 0 |
Charge off, year five | 0 | 0 |
Charge off, year after year five | 0 | |
Charge off, year after year five | 141 | |
Charge offs | 0 | |
Charge offs | 141 | |
Commercial Real Estate Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 49,958 | 126,739 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 121,671 | 790,488 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 798,793 | 343,053 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 290,646 | 113,554 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 110,631 | 136,031 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 547,074 | 442,202 |
Total loans | 1,918,773 | 1,952,067 |
Commercial Real Estate Loans | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 49,958 | 95,881 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 90,747 | 755,352 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 763,916 | 310,811 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 259,337 | 113,554 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 96,638 | 133,996 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 540,643 | 429,695 |
Total loans | 1,801,239 | 1,839,289 |
Commercial Real Estate Loans | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 12,333 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 12,454 | 35,136 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 34,877 | 13,203 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 13,199 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 2,035 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 2,008 | 114 |
Total loans | 62,538 | 62,821 |
Commercial Real Estate Loans | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 18,525 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 18,470 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 16,923 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 16,516 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 13,993 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 8,121 |
Total loans | 48,979 | 43,569 |
Commercial Real Estate Loans | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 2,116 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 1,594 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 4,423 | 4,272 |
Total loans | 6,017 | 6,388 |
Commercial Real Estate charge-off | ||
Charge Off | ||
Charge off, year one | 0 | 0 |
Charge off, year two | 0 | 0 |
Charge off, year three | 0 | |
Charge off, year three | 213 | |
Charge off, year four | 0 | |
Charge off, year four | 522 | |
Charge off, year five | 0 | 0 |
Charge off, year after year five | 3,306 | 611 |
Charge offs | 3,828 | 824 |
Construction Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 39,627 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 45,027 | 67,788 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 44,930 | 41,156 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 51,565 | 26,156 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 9,362 | 9,362 |
Total loans | 150,884 | 184,089 |
Construction Loans | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 39,627 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 45,027 | 67,788 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 44,930 | 41,156 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 51,565 | 26,156 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 141,522 | 174,727 |
Construction Loans | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 0 | 0 |
Construction Loans | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 9,362 | 9,362 |
Total loans | 9,362 | 9,362 |
Construction Loans | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 0 | 0 |
Construction charge-off | ||
Charge Off | ||
Charge off, year one | 0 | 0 |
Charge off, year two | 0 | 0 |
Charge off, year three | 0 | 0 |
Charge off, year four | 0 | 0 |
Charge off, year five | 0 | 0 |
Charge off, year after year five | 0 | 0 |
Charge offs | 0 | 0 |
Commercial Business Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 66,944 | 122,204 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 112,995 | 247,326 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 216,133 | 82,724 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 72,494 | 9,291 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 6,485 | 6,504 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 29,775 | 34,488 |
Total loans | 504,826 | 502,537 |
Commercial Business Loans | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 66,944 | 121,312 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 112,109 | 234,997 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 199,731 | 73,805 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 62,327 | 9,291 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 6,485 | 6,504 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 27,726 | 32,293 |
Total loans | 475,322 | 478,202 |
Commercial Business Loans | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 3,395 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 7,479 | 1,009 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 1,009 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 8,488 | 4,404 |
Commercial Business Loans | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 892 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 886 | 8,934 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 8,923 | 7,910 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 7,438 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 1,973 | 2,092 |
Total loans | 19,220 | 19,828 |
Commercial Business Loans | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 1,720 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 76 | 103 |
Total loans | 1,796 | 103 |
Commercial Business charge-off | ||
Charge Off | ||
Charge off, year one | 0 | 0 |
Charge off, year two | 0 | 0 |
Charge off, year three | 0 | 0 |
Charge off, year four | 0 | |
Charge off, year four | 197 | |
Charge off, year five | 0 | 440 |
Charge off, year after year five | 0 | 0 |
Charge offs | 197 | 440 |
Consumer Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 10,126 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 11,674 | 25,406 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 29,466 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 46 | 37 |
Total loans | 41,186 | 35,569 |
Consumer Loans | Pass | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 10,126 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 11,674 | 25,406 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 29,466 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 46 | 37 |
Total loans | 41,186 | 35,569 |
Consumer Loans | Special Mention | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 0 | 0 |
Consumer Loans | Substandard | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 0 | 0 |
Consumer Loans | Doubtful | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year | ||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year four, originated, three years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, year five, originated, four years before current fiscal year | 0 | 0 |
Financing receivable, excluding accrued interest, originated, more than five years before current fiscal year | 0 | 0 |
Total loans | 0 | 0 |
Consumer charge-off | ||
Charge Off | ||
Charge, year one | 15 | 83 |
Charge off, year two | 0 | 0 |
Charge off, year three | 0 | 0 |
Charge off, year four | 0 | |
Charge off, year four | 46 | |
Charge off, year five | 0 | 0 |
Charge off, year after year five | 0 | 0 |
Charge offs | $ 61 | $ 83 |
Loans Receivable and ACL-Loan_6
Loans Receivable and ACL-Loans - Schedule of Portfolio Segment and Impairment Methodology, of the ACL-Loan and Related Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, portfolio | $ 114,952 | $ 105,005 | ||||
Loans individually evaluated for impairment, allowance | 7,788 | 955 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, portfolio | 2,542,233 | 2,613,602 | ||||
Loans collectively evaluated for impairment, allowance | 28,295 | 26,991 | ||||
Portfolio | 2,657,185 | 2,718,607 | ||||
ACL-Loans | 36,083 | $ 27,991 | 27,946 | $ 30,694 | $ 27,998 | $ 22,431 |
Residential Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, portfolio | 3,631 | 3,711 | ||||
Loans individually evaluated for impairment, allowance | 0 | 0 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, portfolio | 44,244 | 47,220 | ||||
Loans collectively evaluated for impairment, allowance | 123 | 149 | ||||
Portfolio | 47,875 | 50,931 | ||||
ACL-Loans | 123 | 133 | 149 | 190 | 207 | 163 |
Commercial Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, portfolio | 54,858 | 49,935 | ||||
Loans individually evaluated for impairment, allowance | 0 | 955 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, portfolio | 1,857,843 | 1,897,713 | ||||
Loans collectively evaluated for impairment, allowance | 22,473 | 19,995 | ||||
Portfolio | 1,912,701 | 1,947,648 | ||||
ACL-Loans | 22,473 | 21,666 | 20,950 | 19,948 | 19,413 | 15,597 |
Construction | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, portfolio | 9,382 | 9,382 | ||||
Loans individually evaluated for impairment, allowance | 778 | 0 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, portfolio | 140,877 | 174,032 | ||||
Loans collectively evaluated for impairment, allowance | 1,494 | 1,699 | ||||
Portfolio | 150,259 | 183,414 | ||||
ACL-Loans | 2,272 | 1,543 | 1,699 | 1,798 | 1,070 | 311 |
Commercial Business | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, portfolio | 20,922 | 19,848 | ||||
Loans individually evaluated for impairment, allowance | 7,010 | 0 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, portfolio | 482,522 | 480,721 | ||||
Loans collectively evaluated for impairment, allowance | 3,637 | 4,562 | ||||
Portfolio | 503,444 | 500,569 | ||||
ACL-Loans | 10,647 | 4,078 | 4,562 | 6,788 | 6,593 | 6,214 |
Consumer | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, portfolio | 26,159 | 22,129 | ||||
Loans individually evaluated for impairment, allowance | 0 | 0 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, portfolio | 16,747 | 13,916 | ||||
Loans collectively evaluated for impairment, allowance | 568 | 586 | ||||
Portfolio | 42,906 | 36,045 | ||||
ACL-Loans | $ 568 | $ 571 | $ 586 | $ 1,970 | $ 715 | $ 146 |
Loans Receivable and ACL-Loan_7
Loans Receivable and ACL-Loans - Schedule of Credit Risk Ratings by Loan Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment | ||
Total loans | $ 2,657,185 | $ 2,718,607 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,912,701 | 1,947,648 |
Construction | ||
Financing Receivable, Recorded Investment | ||
Total loans | 150,259 | 183,414 |
Commercial business | ||
Financing Receivable, Recorded Investment | ||
Total loans | 503,444 | 500,569 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 47,875 | 50,931 |
Consumer | ||
Financing Receivable, Recorded Investment | ||
Total loans | 42,906 | 36,045 |
Commercial Credit Quality Indicators | ||
Financing Receivable, Recorded Investment | ||
Total loans | 2,566,404 | 2,631,631 |
Commercial Credit Quality Indicators | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 2,410,552 | 2,485,526 |
Commercial Credit Quality Indicators | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 70,690 | 66,939 |
Commercial Credit Quality Indicators | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 77,349 | 72,669 |
Commercial Credit Quality Indicators | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 7,813 | 6,497 |
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 | 1,912,701 | 1,947,648 |
Commercial Credit Quality Indicators | Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,795,570 | 1,835,136 |
Commercial Credit Quality Indicators | Commercial Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 62,273 | 62,577 |
Commercial Credit Quality Indicators | Commercial Real Estate | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 48,836 | 43,542 |
Commercial Credit Quality Indicators | Commercial Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 6,022 | 6,393 |
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 | 150,259 | 183,414 |
Commercial Credit Quality Indicators | Construction | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 140,877 | 174,032 |
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 | 9,382 |
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 | 503,444 | 500,569 |
Commercial Credit Quality Indicators | Commercial business | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 474,105 | 476,358 |
Commercial Credit Quality Indicators | Commercial business | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 8,417 | 4,362 |
Commercial Credit Quality Indicators | Commercial business | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 19,131 | 19,745 |
Commercial Credit Quality Indicators | Commercial business | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,791 | 104 |
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 | 90,781 | 86,976 |
Residential and Consumer Credit Quality Indicators | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 87,015 | 83,127 |
Residential and Consumer Credit Quality Indicators | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 135 | 138 |
Residential and Consumer Credit Quality Indicators | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 3,631 | 3,711 |
Residential and Consumer Credit Quality Indicators | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
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 | 47,875 | 50,931 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 44,109 | 47,082 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 135 | 138 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 3,631 | 3,711 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
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 | 42,906 | 36,045 |
Residential and Consumer Credit Quality Indicators | Consumer | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 42,906 | 36,045 |
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 ACL-Loan_8
Loans Receivable and ACL-Loans - Schedule of Loan Portfolio Delinquencies by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | $ 2,657,185 | $ 2,718,607 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 22,431 | 21,278 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,092 | 6,763 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 759 | 3,150 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 20,580 | 11,365 |
Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 2,634,754 | 2,697,329 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 47,875 | 50,931 |
Residential Real Estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 2,336 | 1,352 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 997 | 0 |
Residential Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 150 | 1,220 |
Residential Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,189 | 132 |
Residential Real Estate | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 45,539 | 49,579 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,912,701 | 1,947,648 |
Commercial Real Estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 2,073 | 2,328 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 90 | 195 |
Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 595 | 282 |
Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,388 | 1,851 |
Commercial Real Estate | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 1,910,628 | 1,945,320 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 150,259 | 183,414 |
Construction | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 9,382 | 9,382 |
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 | 9,382 |
Construction | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 140,877 | 174,032 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 503,444 | 500,569 |
Commercial business | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 8,640 | 8,216 |
Commercial business | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 5 | 6,568 |
Commercial business | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 14 | 1,648 |
Commercial business | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 8,621 | 0 |
Commercial business | Current | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 494,804 | 492,353 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 42,906 | 36,045 |
Consumer | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total loans | 0 | 0 |
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 | $ 42,906 | $ 36,045 |
Loans Receivable and ACL-Loan_9
Loans Receivable and ACL-Loans - Schedule of Nonaccrual Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 56,205 | $ 49,207 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 1,339 | 1,386 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 28,088 | 23,009 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 17,396 | 15,430 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 9,382 | 9,382 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 0 | $ 0 |
Loans Receivable and ACL-Loa_10
Loans Receivable and ACL-Loans - Schedule of Individually Evaluated Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Individually evaluated loans without a valuation allowance: | ||
Carrying Amount | $ 96,872 | $ 99,012 |
Unpaid Principal Balance | 102,759 | 101,067 |
Individually evaluated loans with a valuation allowance: | ||
Carrying Amount | 18,080 | 5,993 |
Unpaid Principal Balance | 18,471 | 6,017 |
Total individually evaluated loans | ||
Carrying Amount | 114,952 | 105,005 |
Unpaid Principal Balance | 121,230 | 107,084 |
Associated ACL-Loans | 7,788 | 955 |
Residential Real Estate | ||
Individually evaluated loans without a valuation allowance: | ||
Carrying Amount | 3,631 | 3,711 |
Unpaid Principal Balance | 3,918 | 4,022 |
Individually evaluated loans with a valuation allowance: | ||
Carrying Amount | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Total individually evaluated loans | ||
Associated ACL-Loans | 0 | 0 |
Commercial Real Estate | ||
Individually evaluated loans without a valuation allowance: | ||
Carrying Amount | 54,858 | 43,942 |
Unpaid Principal Balance | 59,372 | 45,032 |
Individually evaluated loans with a valuation allowance: | ||
Carrying Amount | 0 | 5,993 |
Unpaid Principal Balance | 0 | 6,017 |
Total individually evaluated loans | ||
Associated ACL-Loans | 0 | 955 |
Construction | ||
Individually evaluated loans without a valuation allowance: | ||
Carrying Amount | 0 | 9,382 |
Unpaid Principal Balance | 0 | 9,382 |
Individually evaluated loans with a valuation allowance: | ||
Carrying Amount | 9,382 | 0 |
Unpaid Principal Balance | 9,382 | 0 |
Total individually evaluated loans | ||
Associated ACL-Loans | 778 | 0 |
Commercial business | ||
Individually evaluated loans without a valuation allowance: | ||
Carrying Amount | 12,224 | 19,848 |
Unpaid Principal Balance | 13,310 | 20,502 |
Individually evaluated loans with a valuation allowance: | ||
Carrying Amount | 8,698 | 0 |
Unpaid Principal Balance | 9,089 | 0 |
Total individually evaluated loans | ||
Associated ACL-Loans | 7,010 | 0 |
Consumer | ||
Individually evaluated loans without a valuation allowance: | ||
Carrying Amount | 26,159 | 22,129 |
Unpaid Principal Balance | 26,159 | 22,129 |
Individually evaluated loans with a valuation allowance: | ||
Carrying Amount | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Total individually evaluated loans | ||
Associated ACL-Loans | $ 0 | $ 0 |
Loans Receivable and ACL-Loa_11
Loans Receivable and ACL-Loans - Schedule of Average Carrying Amount of Individually Evaluated Loans and Interest Income Recognized on Individually Evaluated Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Individually evaluated loans without a valuation allowance: | ||||
Average Carrying Amount | $ 97,510 | $ 19,984 | $ 99,488 | $ 20,143 |
Interest Income Recognized | 1,205 | 60 | 2,533 | 124 |
Individually evaluated loans with a valuation allowance: | ||||
Average Carrying Amount | 17,898 | 15,890 | 17,989 | 15,891 |
Interest Income Recognized | 878 | 87 | 1,039 | 173 |
Total individually evaluated loans | ||||
Average Carrying Amount | 115,408 | 35,874 | 117,477 | 36,034 |
Interest Income Recognized | 2,083 | 147 | 3,572 | 297 |
Residential Real Estate | ||||
Individually evaluated loans without a valuation allowance: | ||||
Average Carrying Amount | 3,640 | 3,794 | 3,656 | 3,814 |
Interest Income Recognized | 42 | 20 | 85 | 40 |
Individually evaluated loans with a valuation allowance: | ||||
Average Carrying Amount | 0 | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial Real Estate | ||||
Individually evaluated loans without a valuation allowance: | ||||
Average Carrying Amount | 55,291 | 1,907 | 57,247 | 1,912 |
Interest Income Recognized | 552 | 0 | 1,094 | 0 |
Individually evaluated loans with a valuation allowance: | ||||
Average Carrying Amount | 0 | 15,890 | 0 | 15,891 |
Interest Income Recognized | 0 | 87 | 0 | 173 |
Commercial business | ||||
Individually evaluated loans without a valuation allowance: | ||||
Average Carrying Amount | 12,423 | 4,901 | 12,745 | 5,035 |
Interest Income Recognized | 211 | 40 | 618 | 84 |
Individually evaluated loans with a valuation allowance: | ||||
Average Carrying Amount | 9,382 | 0 | 8,607 | 0 |
Interest Income Recognized | 0 | 0 | 1,039 | 0 |
Construction | ||||
Individually evaluated loans without a valuation allowance: | ||||
Average Carrying Amount | 0 | 9,382 | 0 | 9,382 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Individually evaluated loans with a valuation allowance: | ||||
Average Carrying Amount | 8,516 | 0 | 9,382 | 0 |
Interest Income Recognized | 878 | 0 | 0 | 0 |
Consumer | ||||
Individually evaluated loans without a valuation allowance: | ||||
Average Carrying Amount | 26,156 | 0 | 25,840 | 0 |
Interest Income Recognized | 400 | 0 | 736 | 0 |
Individually evaluated loans with a valuation allowance: | ||||
Average Carrying Amount | 0 | 0 | 0 | 0 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and ACL-Loa_12
Loans Receivable and ACL-Loans - Schedule of Loans that were Modified (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan | Jun. 30, 2024 USD ($) loan | Jun. 30, 2023 USD ($) loan | |
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Residential Real Estate | ||||
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Business | ||||
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Real Estate | ||||
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and ACL-Loa_13
Loans Receivable and ACL-Loans - Schedule of Allowance for Credit Losses (ACL)-Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
ACL-Loan and Lease Losses | ||||
Beginning balance | $ 27,991 | $ 27,998 | $ 27,946 | $ 22,431 |
(Credit) provision for credit losses | 8,183 | 2,579 | 11,866 | 3,405 |
Ending balance | 36,083 | 30,694 | 36,083 | 30,694 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 5,079 | |||
Unfunded commitments | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 911 | 1,165 | 926 | 80 |
Reversal of prior unfunded reserve | 0 | 0 | 0 | (80) |
(Credit) provision for credit losses | (185) | (99) | (200) | (207) |
Ending balance | 726 | 1,066 | 726 | 1,066 |
Unfunded commitments | Cumulative Effect, Period of Adoption, Adjustment | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 1,273 |
Loans Receivable and ACL-Loa_14
Loans Receivable and ACL-Loans - Components of Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss | ||||
(Provision) credit for credit losses | $ 8,183 | $ 2,579 | $ 11,866 | $ 3,405 |
Provision for credit losses (loans) | ||||
Financing Receivable, Allowance for Credit Loss | ||||
(Provision) credit for credit losses | 8,368 | 2,678 | 12,066 | 3,612 |
(Credit) for credit losses (unfunded commitments) | ||||
Financing Receivable, Allowance for Credit Loss | ||||
(Provision) credit for credit losses | $ (185) | $ (99) | $ (200) | $ (207) |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - shares | Jun. 30, 2024 | Dec. 31, 2023 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 7,866,499 | 7,882,616 |
Common stock, shares outstanding (in shares) | 7,866,499 | 7,882,616 |
Shareholders' Equity - Issuer P
Shareholders' Equity - Issuer Purchases of Equity Securities (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Oct. 27, 2021 | Dec. 19, 2018 | |
Stockholders Equity Note | |||||
Authorized shares for repurchase (in shares) | 400,000 | ||||
Weighted average share repurchased (in dollars per share) | $ 24.95 | ||||
Common Stock | |||||
Stockholders Equity Note | |||||
Shares repurchased (in shares) | 40,140 | 76,320 | 0 | ||
Common Stock | Board of Directors | |||||
Stockholders Equity Note | |||||
Authorized additional shares for repurchase (in shares) | 200,000 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | $ 268,032 | $ 242,307 | $ 265,752 | $ 238,469 |
Other comprehensive income (loss) before reclassifications, net of tax | 724 | 275 | 1,883 | 112 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | (961) | (857) | (2,175) | (1,639) |
Total other comprehensive (loss) income, net of tax | (237) | (582) | (292) | (1,527) |
Ending balance | 266,976 | 248,813 | 266,976 | 248,813 |
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (1,719) | (1,134) | (1,664) | (189) |
Total other comprehensive (loss) income, net of tax | (237) | (582) | (292) | (1,527) |
Ending balance | (1,956) | (1,716) | (1,956) | (1,716) |
Net Unrealized Gain (Loss) on Available for Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (5,926) | (6,116) | (5,810) | (6,750) |
Other comprehensive income (loss) before reclassifications, net of tax | 304 | (1,495) | 188 | (861) |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income, net of tax | 304 | (1,495) | 188 | (861) |
Ending balance | (5,622) | (7,611) | (5,622) | (7,611) |
Net Unrealized Gain (Loss) on Interest Rate Swaps | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | 4,207 | 4,982 | 4,146 | 6,561 |
Other comprehensive income (loss) before reclassifications, net of tax | 420 | 1,770 | 1,695 | 973 |
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax | (961) | (857) | (2,175) | (1,639) |
Total other comprehensive (loss) income, net of tax | (541) | 913 | (480) | (666) |
Ending balance | $ 3,666 | $ 5,895 | $ 3,666 | $ 5,895 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Reclassified from Accumulated Other Comprehensive Income or Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives: | ||||
Unrealized gains on derivatives | $ 548 | $ 2,297 | $ 1,931 | $ 1,298 |
Derivatives | Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Derivatives: | ||||
Unrealized gains on derivatives | 1,257 | 1,112 | 2,514 | 2,094 |
Tax expense | (296) | (255) | (339) | (455) |
Net of tax | $ 961 | $ 857 | $ 2,175 | $ 1,639 |
Earnings per share ("EPS") - Sc
Earnings per share ("EPS") - Schedule of 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,118 | $ 7,983 | $ 4,881 | $ 18,362 |
Dividends to participating securities | (40) | (41) | (79) | (84) |
Undistributed earnings allocated to participating securities | 14 | (172) | (52) | (403) |
Net income for earnings per share calculation, Basic | 1,092 | 7,770 | 4,750 | 17,875 |
Net income for earnings per share calculation, Diluted | $ 1,092 | $ 7,770 | $ 4,750 | $ 17,875 |
Weighted average shares outstanding, basic (in shares) | 7,747,675 | 7,593,417 | 7,705,598 | 7,574,160 |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment, Net | (24,000) | |||
Effect of dilutive equity-based awards (in shares) | 9,000 | 16,000 | 66,000 | |
Weighted average shares outstanding, diluted (in shares) | 7,723,888 | 7,601,562 | 7,721,880 | 7,639,828 |
Net earnings per common share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.14 | $ 1.02 | $ 0.62 | $ 2.36 |
Diluted earnings per common share (in dollars per share) | $ 0.14 | $ 1.02 | $ 0.62 | $ 2.34 |
Regulatory Matters - Narratives
Regulatory Matters - Narratives (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Regulatory Matters [Abstract] | ||
Minimum total risk-based capital ratio (as a percent) | 0.080 | |
Minimum Tier 1 risk-based capital ratio (as a percent) | 0.060 | |
Minimum common equity Tier 1 risk-based capital ratio (as a percent) | 0.045 | |
Minimum leverage ratio (as a percent) | 0.0400 | 0.0400 |
Minimum risk-based capital requirements for adequately capitalized (as a percent) | 0.025 | |
Minimum Tier 1 risk-based capital ratio (as a percent) | 0.070 | 0.0700 |
Minimum Tier 1 risk-based capital ratio (as a percent) | 0.0850 | 0.0850 |
Minimum total risk-based capital ratio (as a percent) | 0.105 | 0.1050 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Capital Amounts and Ratios for Bank (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Actual Capital, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 324,443 | $ 321,432 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 194,589 | 199,047 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 180,690 | 184,829 |
Tier One Risk Based Capital, Amount | ||
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | 324,443 | 321,432 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 236,287 | 241,700 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 222,388 | 227,482 |
Capital, Amount | ||
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | 359,216 | 350,303 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 291,884 | 298,571 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 277,985 | 284,353 |
Tier One Leverage Capital, Amount | ||
Tier I Capital to Average Assets, Actual Capital, Amount | 324,443 | 321,432 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 127,556 | 131,110 |
Tier I Capital to Average Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | $ 159,444 | $ 163,888 |
Actual Capital, Ratio | ||
Common Equity Tier One Capital Ratio | 0.1167 | 0.1130 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.070 | 0.0700 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.0650 | 0.0650 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1167 | 0.1130 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.0850 | 0.0850 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.0800 | 0.0800 |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1292 | 0.1232 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.105 | 0.1050 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.1000 | 0.1000 |
Tier I Capital to Average Assets, Actual Capital, Ratio | 0.1017 | 0.0981 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.0400 | 0.0400 |
Tier I Capital to Average Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.0500 | 0.0500 |
Bankwell Financial Group Inc | ||
Actual Capital, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 265,918 | $ 264,209 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 125,229 | 128,121 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 180,886 | |
Tier One Risk Based Capital, Amount | ||
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | 265,918 | 264,209 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 222,629 | 170,828 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 166,972 | |
Capital, Amount | ||
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | 370,019 | 362,285 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 222,629 | 227,770 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 278,287 | |
Tier One Leverage Capital, Amount | ||
Tier I Capital to Average Assets, Actual Capital, Amount | 265,918 | 264,209 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 127,556 | $ 131,232 |
Tier I Capital to Average Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | $ 159,444 | |
Actual Capital, Ratio | ||
Common Equity Tier One Capital Ratio | 0.0956 | 0.0928 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.0450 | 0.0450 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.0650 | |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.0956 | 0.0928 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.0800 | 0.0600 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.0600 | |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 0.1330 | 0.1272 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.0800 | 0.0800 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.1000 | |
Tier I Capital to Average Assets, Actual Capital, Ratio | 0.0834 | 0.0805 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | 0.0400 | 0.0400 |
Tier I Capital to Average Assets, Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | 0.0500 |
Deposits - Schedule of Deposit
Deposits - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Deposits [Abstract] | ||
Noninterest bearing demand deposit accounts | $ 328,475 | $ 346,172 |
Interest bearing accounts: | ||
NOW | 122,112 | 90,829 |
Money market | 825,599 | 887,352 |
Savings | 91,870 | 97,331 |
Time certificates of deposit | 1,294,319 | 1,315,073 |
Total interest bearing accounts | 2,333,900 | 2,390,585 |
Total deposits | $ 2,662,375 | $ 2,736,757 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposits Maturity Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Time Deposits, Fiscal Year Maturity | ||
2024 | $ 596,101 | $ 979,807 |
2025 | 679,845 | 318,961 |
2026 | 1,413 | 24 |
2027 | 711 | 68 |
2028 and thereafter | 16,249 | 16,213 |
Total | $ 1,294,319 | $ 1,315,073 |
Deposits - Narratives (Details)
Deposits - Narratives (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Deposits [Abstract] | ||
Certificate of deposits above $250,000 | $ 179.9 | $ 151.6 |
Brokerage certificate of deposits | 755.5 | 860.5 |
Brokered money market accounts | $ 52.1 | $ 91.4 |
Deposits - Schedule of Interest
Deposits - Schedule of Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest Expense on Deposit Liabilities, Disclosures | ||||
NOW | $ 49 | $ 42 | $ 88 | $ 81 |
Money market | 8,552 | 8,083 | 17,698 | 14,468 |
Savings | 688 | 860 | 1,402 | 1,586 |
Time certificates of deposits | 15,388 | 11,792 | 30,851 | 21,675 |
Total interest expense on deposits | $ 24,677 | $ 20,777 | $ 50,039 | $ 37,810 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 USD ($) plan shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of equity award plans | plan | 2 | ||
Unvested shares (in shares) | 231,525 | 254,328 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total fair value of restricted stock awards vested | $ | $ 2.2 | ||
Share based compensation expenses | $ | 1.7 | $ 1.4 | |
Unrecognized stock compensation expense for restricted stock | $ | $ 6.5 | ||
Weighted average period for recognition of compensation expense for restricted stock (in years) | 1 year 2 months 12 days | ||
Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unvested shares (in shares) | 33,115 | ||
Minimum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share based payment award, vesting period (in years) | 1 year | ||
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share based payment award, vesting period (in years) | 5 years | ||
2022 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of common stock reserved for issuance (in shares) | 277,333 | ||
2022 Plan | Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share based payment award, vesting period (in years) | 3 years | ||
Unvested shares (in shares) | 36,019 | ||
2022 Plan | Minimum | Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of grant as share quantity for which performance metric is met (as a percent) | 0% | ||
2022 Plan | Maximum | Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Percentage of grant as share quantity for which performance metric is met (as a percent) | 200% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Activity for Restricted Stock (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares | |
Unvested at beginning of period (in shares) | 254,328 |
Granted (in shares) | 62,903 |
Vested (in shares) | (83,006) |
Forfeited (in shares) | (2,700) |
Unvested at end of period (in shares) | 231,525 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 29.58 |
Granted (in dollars per share) | $ / shares | 24.60 |
Vested (in dollars per share) | $ / shares | 26.10 |
Forfeited (in dollars per share) | $ / shares | 24.19 |
Unvested at end of period (in dollars per share) | $ / shares | |
Performance Based Restricted Stock | |
Number of Shares | |
Unvested at beginning of period (in shares) | 33,115 |
Granted (in shares) | 18,598 |
Vested (in shares) | (15,694) |
Derivative Instruments - Narrat
Derivative Instruments - Narratives (Details) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) instrument | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) instrument | |
Derivatives | |||
Rolling period of federal home loan bank advances converted to fixed rates | 90 days | ||
Accrued interest included in derivative fair value | $ 923,000 | $ 764,000 | |
Interest expense | |||
Derivatives | |||
Amount of cash flow hedge gain expected to be reclassified to interest expense in the next 12 months | $ 2,700,000 | ||
Cash flow swaps | |||
Derivatives | |||
Derivative instruments held (instruments) | instrument | 5 | ||
Original Notional Amount | $ 25,000,000 | ||
Accrued interest excluded from derivative fair value | 900,000 | ||
Accrued interest included in derivative fair value | 6,600,000 | ||
Accrued interest excluded from derivative fair value | 800,000 | ||
Accrued interest included in derivative fair value | $ 6,000,000 | ||
Cash flow swaps | Fair Value Hedging | |||
Derivatives | |||
Original Notional Amount | $ 150,000,000 | ||
Number of interest rate derivatives held | instrument | 1 | ||
Terminated Interest Rate Swaps | |||
Derivatives | |||
Derivative instruments held (instruments) | instrument | 2 | ||
Original Notional Amount | $ 50,000,000 | ||
Fair value of derivative instrument | $ 134,400 |
Derivative Instruments - Fixed
Derivative Instruments - Fixed Rate Asset (Details) - Cash flow swaps - Fair Value Hedging - Carrying Value - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives | ||
Carrying Value of Hedged Asset | $ 149,055 | $ 150,915 |
Hedged Items | (945) | 915 |
Amortized cost basis | 575,900 | 611,500 |
Hedged asset, cumulative adjustment basis | 1,800 | 1,100 |
Fair value hedge assets | $ 150,000 | $ 150,000 |
Derivative Instruments - Inform
Derivative Instruments - Information About Derivative Instruments (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Cash flow swaps | ||
Derivatives | ||
Original Notional Amount | $ 25,000,000 | |
Fair Value Hedging | Cash flow swaps | ||
Derivatives | ||
Original Notional Amount | 150,000,000 | |
Designated as Hedging Instrument | Fair Value Hedging | Other assets | ||
Derivatives | ||
Original Notional Amount | 150,000,000 | $ 150,000,000 |
Derivative asset fair value | 933,000 | |
Designated as Hedging Instrument | Fair Value Hedging | Other assets | Cash flow swaps | ||
Derivatives | ||
Original Notional Amount | 125,000,000 | 125,000,000 |
Derivative asset fair value | 4,663,000 | 5,240,000 |
Designated as Hedging Instrument | Fair Value Hedging | Accrued expenses and other liabilities | ||
Derivatives | ||
Derivative liability fair value | 917,000 | |
Derivatives not Designated as Hedging Instruments | Other assets | Cash flow swaps | ||
Derivatives | ||
Original Notional Amount | 38,500,000 | 38,500,000 |
Derivative asset fair value | 4,362,000 | 3,579,000 |
Derivatives not Designated as Hedging Instruments | Accrued expenses and other liabilities | Cash flow swaps | ||
Derivatives | ||
Original Notional Amount | 38,500,000 | 38,500,000 |
Derivative liability fair value | $ 4,362,000 | $ 3,579,000 |
Derivative Instruments - Change
Derivative Instruments - Changes in Consolidated Statements of Comprehensive Income Related to Interest Rate Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Unrealized (losses) gains on interest rate swaps: | ||||
Unrealized gain (loss) recognized in accumulated other comprehensive income before reclassifications | $ 548 | $ 2,297 | $ 1,931 | $ 1,298 |
Amounts reclassified from accumulated other comprehensive income | (1,257) | (1,112) | (2,514) | (2,094) |
Income tax (expense) benefit on items recognized in accumulated other comprehensive income | 168 | (272) | 102 | 130 |
Unrealized (losses) gains on interest rate swaps, net of tax | $ (541) | $ 913 | $ (481) | $ (666) |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value Hedging Relationship Recognized in the Consolidated Statement of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
(Loss) gain on fair value hedging relationship: | ||||
Hedged asset | $ (192) | $ (3,084) | $ (1,860) | $ (680) |
Fair value derivative designated as hedging instrument | 610 | 3,358 | 1,772 | 1,005 |
Total gain (loss) recognized in the consolidated statements of income within interest and fees on loans | $ 418 | $ 274 | $ (88) | $ 325 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Gross Net Information About Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative assets | ||
Gross Amounts of Recognized Assets | $ 10,881 | $ 9,583 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 10,881 | 9,583 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 10,614 | 8,599 |
Net Amount | 267 | 984 |
Accrued interest receivable included In fair value of derivative assets | 923 | 764 |
Derivative liabilities | ||
Gross Amounts of Recognized Liabilities | 4,432 | 4,473 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 4,432 | 4,473 |
Financial Instruments | 0 | 0 |
Cash Collateral Posted | 0 | 0 |
Net Amount | 4,432 | 4,473 |
Accrued interest payable included In fair value of derivative liabilities | $ 70 | |
Accrued interest receivable included In fair value of derivative liabilities | $ 23 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Carrying Values and Fair Values of the Company's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Federal funds sold | $ 17,103 | $ 1,636 |
Marketable equity securities | 2,079 | 2,070 |
Available for sale securities | 107,635 | 109,736 |
Held to maturity securities | 28,286 | 15,817 |
Derivative asset | 10,881 | 9,583 |
Financial Liabilities: | ||
Derivative liability | 4,432 | 4,473 |
Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 234,277 | 267,521 |
Federal funds sold | 17,103 | 1,636 |
Marketable equity securities | 2,079 | 2,070 |
Available for sale securities | 69,321 | 62,514 |
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 |
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 | 38,314 | 47,222 |
Held to maturity securities | 31 | 33 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 14,675 | 14,863 |
FHLB stock | 5,655 | 5,696 |
Servicing asset, net of valuation allowance | 0 | 0 |
Derivative asset | 9,958 | 8,819 |
Financial Liabilities: | ||
Noninterest bearing deposits | 328,475 | 346,172 |
NOW and money market | 947,711 | 978,181 |
Savings | 91,870 | 97,331 |
Time deposits | 0 | 0 |
Accrued interest payable | 14,186 | 14,595 |
Advances from the FHLB | 0 | 0 |
Subordinated debentures | 0 | 0 |
Servicing liability | 0 | 0 |
Derivative liability | 4,362 | 4,496 |
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 | 28,934 | 15,870 |
Loans receivable, net | 2,582,592 | 2,659,667 |
Accrued interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Servicing asset, net of valuation allowance | 590 | 869 |
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 1,294,759 | 1,315,233 |
Accrued interest payable | 0 | 0 |
Advances from the FHLB | 89,991 | 90,012 |
Subordinated debentures | 64,788 | 63,060 |
Servicing liability | 0 | 4 |
Derivative liability | 0 | 0 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 234,277 | 267,521 |
Federal funds sold | 17,103 | 1,636 |
Marketable equity securities | 2,079 | 2,070 |
Available for sale securities | 107,635 | 109,736 |
Held to maturity securities | 28,286 | 15,817 |
Loans receivable, net | 2,616,691 | 2,685,301 |
Accrued interest receivable | 14,675 | 14,863 |
FHLB stock | 5,655 | 5,696 |
Servicing asset, net of valuation allowance | 590 | 869 |
Derivative asset | 9,958 | 8,819 |
Financial Liabilities: | ||
Noninterest bearing deposits | 328,475 | 346,172 |
NOW and money market | 947,711 | 978,181 |
Savings | 91,870 | 97,331 |
Time deposits | 1,294,319 | 1,315,073 |
Accrued interest payable | 14,186 | 14,595 |
Advances from the FHLB | 90,000 | 90,000 |
Subordinated debentures | 69,328 | 69,205 |
Servicing liability | 0 | 4 |
Derivative liability | 4,362 | 4,496 |
Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 234,277 | 267,521 |
Federal funds sold | 17,103 | 1,636 |
Marketable equity securities | 2,079 | 2,070 |
Available for sale securities | 107,635 | 109,736 |
Held to maturity securities | 28,965 | 15,903 |
Loans receivable, net | 2,582,592 | 2,659,667 |
Accrued interest receivable | 14,675 | 14,863 |
FHLB stock | 5,655 | 5,696 |
Servicing asset, net of valuation allowance | 590 | 869 |
Derivative asset | 9,958 | 8,819 |
Financial Liabilities: | ||
Noninterest bearing deposits | 328,475 | 346,172 |
NOW and money market | 947,711 | 978,181 |
Savings | 91,870 | 97,331 |
Time deposits | 1,294,759 | 1,315,233 |
Accrued interest payable | 14,186 | 14,595 |
Advances from the FHLB | 89,991 | 90,012 |
Subordinated debentures | 64,788 | 63,060 |
Servicing liability | 0 | 4 |
Derivative liability | $ 4,362 | $ 4,496 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narratives (Details) - Discount rate | Jun. 30, 2024 | Dec. 31, 2023 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, measurement input | 0.053 | 0.045 |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, measurement input | 0.071 | 0.069 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | $ 2,079 | $ 2,070 |
Available for sale securities | 107,635 | 109,736 |
Derivative asset | 10,881 | 9,583 |
Derivative liability | 4,432 | 4,473 |
U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 92,672 | 95,226 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 2,079 | 2,070 |
Available for sale securities | 69,321 | 62,514 |
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 | 38,314 | 47,222 |
Derivative asset | 9,958 | 8,819 |
Derivative liability | 4,362 | 4,496 |
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 | 2,079 | 2,070 |
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 | 69,321 | 62,514 |
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 | 9,958 | 8,819 |
Derivative liability | 4,362 | 4,496 |
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 | 23,351 | 32,712 |
Fair Value Measurements Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 14,963 | 14,510 |
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 - Sch_2
Fair Value Measurements - Schedule of Financial Instruments Carried at Fair Value on a Nonrecurring Basis (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | $ 0 | $ 0 |
Servicing asset, net | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | 0 | 0 |
Servicing asset, net | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | 107,164 | 104,050 |
Servicing asset, net | $ 590 | $ 865 |
Fair Value Measurements - Sch_3
Fair Value Measurements - Schedule of Quantitative Inputs and Assumptions for Level 3 Financial Instruments Carried at Fair Value on a Nonrecurring Basis (Details) - Fair Value Measurements Nonrecurring - Level 3 $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | $ 107,164 | $ 104,050 |
Servicing asset, net | 590 | 865 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | 107,164 | 104,050 |
Servicing asset, net | $ 590 | $ 865 |
Discount rate | Fair Value | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (as a percent) | 0.1000 | 0.1000 |
Prepayment rate | Fair Value | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (as a percent) | 0.0300 | 0.0300 |
Prepayment rate | Fair Value | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (as a percent) | 0.1800 | 0.1700 |
Individually evaluated loans | Fair Value | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | $ 39,004 | $ 31,527 |
Individually evaluated loans | Fair Value | Appraisals, cash surrender value life insurance, securities, cash held as collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | 26,159 | 22,129 |
Individually evaluated loans | Fair Value | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | $ 42,001 | $ 50,394 |
Individually evaluated loans | Discount to appraised value | Fair Value | Minimum | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (as a percent) | ||
Individually evaluated loans | Discount to appraised value | Fair Value | Maximum | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (as a percent) | 0.0800 | 0.0800 |
Individually evaluated loans | Discount rate | Fair Value | Minimum | Appraisals, cash surrender value life insurance, securities, cash held as collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (as a percent) | 0 | 0 |
Individually evaluated loans | Discount rate | Fair Value | Minimum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (as a percent) | 0.0338 | 0.0338 |
Individually evaluated loans | Discount rate | Fair Value | Maximum | Appraisals, cash surrender value life insurance, securities, cash held as collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (as a percent) | 0.0800 | 0.0800 |
Individually evaluated loans | Discount rate | Fair Value | Maximum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (as a percent) | 0.1075 | 0.1075 |
Subordinated debentures (Detail
Subordinated debentures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Aug. 19, 2022 | Oct. 14, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument | |||||||
Amortization of debt issuance costs | $ 123,000 | $ 123,000 | |||||
Subordinated debentures | |||||||
Debt Instrument | |||||||
Aggregate principal amount | $ 70,000,000 | 70,000,000 | $ 70,000,000 | ||||
Unamortized debt issuance costs | 672,000 | 672,000 | $ 795,000 | ||||
Amortization of debt issuance costs | 62,000 | $ 62,000 | 123,000 | 123,000 | |||
Interest expense debt | $ 800,000 | $ 800,000 | $ 1,600,000 | $ 1,600,000 | |||
Subordinated debentures | 3.25% Subordinated Note Due 2031 | |||||||
Debt Instrument | |||||||
Aggregate principal amount | $ 35,000,000 | ||||||
Interest rate (as a percent) | 3.25% | ||||||
Variable rate (basis points) | 2.33% | ||||||
Debt instrument, non-callable period (in years) | 5 years | ||||||
Subordinated debentures | 6.0% Subordinated Note Due 2032 | |||||||
Debt Instrument | |||||||
Aggregate principal amount | $ 35,000,000 | ||||||
Interest rate (as a percent) | 6% | ||||||
Variable rate (basis points) | 3.26% | ||||||
Debt instrument, non-callable period (in years) | 5 years |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 31, 2024 | Jul. 24, 2024 | Jul. 11, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Subsequent Event | ||||||||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 | ||||
Weighted average share repurchased (in dollars per share) | $ 24.95 | |||||||
Nonaccrual loans | $ 56,205 | $ 56,205 | $ 49,207 | |||||
Commercial Real Estate | ||||||||
Subsequent Event | ||||||||
Nonaccrual loans | $ 28,088 | $ 28,088 | $ 23,009 | |||||
Subsequent Event | ||||||||
Subsequent Event | ||||||||
Cash dividends declared (in dollars per share) | $ 0.20 | |||||||
Shares repurchased (in shares) | 9,670 | |||||||
Weighted average share repurchased (in dollars per share) | $ 23.86 | |||||||
Nonaccrual loans | $ 53,100 | |||||||
Subsequent Event | Commercial Real Estate | ||||||||
Subsequent Event | ||||||||
Proceeds from sales of nonaccrual loans | $ 3,000 |
Uncategorized Items - bwfg-2024
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |