Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34095 | |
Entity Registrant Name | FIRST BUSINESS FINANCIAL SERVICES, INC. | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-1576570 | |
Entity Address, Address Line One | 401 Charmany Drive | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53719 | |
City Area Code | 608 | |
Local Phone Number | 238-8008 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | FBIZ | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,288,707 | |
Entity Central Index Key | 0001521951 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 25,056 | $ 32,348 |
Short-term investments | 46,984 | 107,162 |
Cash and cash equivalents | 72,040 | 139,510 |
Securities available-for-sale, at fair value | 314,114 | 297,006 |
Securities held-to-maturity, at amortized cost | 8,131 | 8,503 |
Loans held for sale | 4,855 | 4,589 |
Loans and leases receivable, net of allowance for credit losses of $32,799 and $31,275, respectively | 2,878,065 | 2,818,986 |
Premises and equipment, net | 6,268 | 6,190 |
Repossessed assets | 317 | 247 |
Right-of-use assets, net | 6,297 | 6,559 |
Bank-owned life insurance | 55,948 | 55,536 |
Federal Home Loan Bank stock, at cost | 13,326 | 12,042 |
Goodwill and other intangible assets | 11,950 | 12,023 |
Derivatives | 69,703 | 55,597 |
Accrued interest receivable and other assets | 90,344 | 91,058 |
Total assets | 3,531,358 | 3,507,846 |
Liabilities and Stockholders’ Equity | ||
Deposits | 2,755,406 | 2,796,779 |
Federal Home Loan Bank advances and other borrowings | 381,718 | 330,916 |
Lease liabilities | 8,664 | 8,954 |
Derivatives | 61,133 | 51,949 |
Accrued interest payable and other liabilities | 26,649 | 29,660 |
Total liabilities | 3,233,570 | 3,218,258 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 2,500,000 shares authorized, 12,500 shares of 7% non-cumulative perpetual preferred stock, Series A, outstanding at March 31, 2024 and December 31, 2023, respectively | 11,992 | 11,992 |
Common stock, $0.01 par value, 25,000,000 shares authorized, 9,426,316 and 9,418,463 shares issued, 8,306,573 and 8,314,778 shares outstanding at March 31, 2024 and December 31, 2023, respectively | 95 | 95 |
Additional paid-in capital | 91,312 | 90,616 |
Retained earnings | 237,270 | 230,728 |
Accumulated other comprehensive loss | (12,176) | (13,717) |
Treasury stock, 1,119,743 and 1,103,685 shares at March 31, 2024 and December 31, 2023, respectively, at cost | (30,705) | (30,126) |
Total stockholders’ equity | 297,788 | 289,588 |
Total liabilities and stockholders’ equity | $ 3,531,358 | $ 3,507,846 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 32,799 | $ 31,275 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 2,500,000 | 2,500,000 |
Preferred Stock, Shares Issued | 12,500 | 12,500 |
Preferred Stock, Shares Outstanding | 12,500 | 12,500 |
Preferred Stock, Dividend Rate, Percentage | 7% | 7% |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 |
Common Stock, Shares, Issued | 9,426,316 | 9,418,463 |
Common Stock, Shares, Outstanding | 8,306,573 | 8,314,778 |
Treasury Stock, Common, Shares | 1,119,743 | 1,103,685 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income | ||
Loans and leases | $ 51,549 | $ 39,814 |
Securities | 2,794 | 1,590 |
Short-term investments | 1,440 | 660 |
Total interest income | 55,783 | 42,064 |
Interest expense | ||
Deposits | 23,837 | 12,430 |
Federal Home Loan Bank advances and other borrowings | 2,435 | 2,929 |
Total interest expense | 26,272 | 15,359 |
Net interest income | 29,511 | 26,705 |
Provision for credit losses | 2,326 | 1,561 |
Net interest income after provision for credit losses | 27,185 | 25,144 |
Non-interest income | ||
Private wealth management service fees | 3,111 | 2,654 |
Gain on sale of Small Business Administration loans | 195 | 476 |
Service charges on deposits | 940 | 682 |
Loan fees | 847 | 803 |
Increase in cash surrender value of bank-owned life insurance | 412 | 366 |
Net loss on sale of securities | (8) | 0 |
Swap fees | 198 | 557 |
Other non-interest income | 1,062 | 2,872 |
Total non-interest income | 6,757 | 8,410 |
Non-interest expense | ||
Compensation | 16,157 | 15,908 |
Occupancy | 607 | 631 |
Professional fees | 1,571 | 1,343 |
Data processing | 1,018 | 875 |
Marketing | 818 | 628 |
Equipment | 345 | 295 |
Computer software | 1,418 | 1,183 |
FDIC insurance | 610 | 394 |
Other non-interest expense | 798 | 510 |
Total non-interest expense | 23,342 | 21,767 |
Income before income tax expense | 10,600 | 11,787 |
Income tax expense | 1,752 | 2,808 |
Net income | 8,848 | 8,979 |
Preferred stock dividend | 219 | 219 |
Basic earnings allocated to common shareholders | $ 8,629 | $ 8,760 |
Earnings per common share | ||
Basic | $ 1.04 | $ 1.05 |
Diluted | 1.04 | 1.05 |
Dividends declared per share | $ 0.2500 | $ 0.2275 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 8,848 | $ 8,979 |
Other comprehensive income | ||
Unrealized securities (losses) gains arising during the period | (2,861) | 3,762 |
Reclassification adjustment for net loss realized in net income | 8 | 0 |
Amortization of net unrealized losses transferred from available-for-sale | 1 | 2 |
Unrealized gains on interest rate swaps | 4,922 | (1,562) |
Income tax expense | (529) | (563) |
Total other comprehensive income | 1,541 | 1,639 |
Comprehensive income | $ 10,389 | $ 10,618 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common stock | Preferred Stock | Additional paid-in capital | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Retained earnings Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Loss | Treasury Stock, Common |
Common shares outstanding at Dec. 31, 2022 | 8,362,085 | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | (426) | ||||||||||
Issuance of common stock under the employee stock purchase plan, shares | 1,005 | ||||||||||
Treasury stock purchased, shares | (56,394) | ||||||||||
Common shares outstanding at Mar. 31, 2023 | 8,306,270 | ||||||||||
Beginning balance at Dec. 31, 2022 | $ 260,640 | $ 1,353 | $ 259,287 | $ 94 | $ 11,992 | $ 87,512 | $ 203,507 | $ (1,353) | $ 202,154 | $ (15,310) | $ (27,155) |
Net income | 8,979 | 8,979 | |||||||||
Other comprehensive income (loss) | 1,639 | 1,639 | |||||||||
Share-based compensation - restricted shares | 634 | 0 | 634 | ||||||||
Issuance of common stock under the employee stock purchase plan | 27 | 27 | |||||||||
Preferred stock dividend | 219 | 219 | |||||||||
Cash Dividends | (1,906) | (1,906) | |||||||||
Treasury stock purchased | (1,860) | (1,860) | |||||||||
Ending balance at Mar. 31, 2023 | $ 266,581 | $ 94 | 11,992 | 88,173 | 209,008 | (13,671) | (29,015) | ||||
Common shares outstanding at Dec. 31, 2023 | 8,314,778 | 8,314,778 | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 6,940 | ||||||||||
Issuance of common stock under the employee stock purchase plan, shares | 913 | 913 | |||||||||
Treasury stock purchased, shares | (16,058) | ||||||||||
Common shares outstanding at Mar. 31, 2024 | 8,306,573 | 8,306,573 | |||||||||
Beginning balance at Dec. 31, 2023 | $ 289,588 | $ 95 | 11,992 | 90,616 | 230,728 | (13,717) | (30,126) | ||||
Net income | 8,848 | 8,848 | |||||||||
Other comprehensive income (loss) | 1,541 | 1,541 | |||||||||
Share-based compensation - restricted shares | 665 | 0 | 665 | ||||||||
Issuance of common stock under the employee stock purchase plan | 31 | 31 | |||||||||
Preferred stock dividend | 219 | 219 | |||||||||
Cash Dividends | (2,087) | (2,087) | |||||||||
Treasury stock purchased | (579) | (579) | |||||||||
Ending balance at Mar. 31, 2024 | $ 297,788 | $ 95 | $ 11,992 | $ 91,312 | $ 237,270 | $ (12,176) | $ (30,705) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share | $ 0.2500 | $ 0.2275 | ||
Stockholders' Equity Attributable to Parent | $ 297,788 | $ 266,581 | $ 289,588 | $ 260,640 |
Issuance of common stock under the employee stock purchase plan, shares | 913 | |||
Issuance of common stock under the employee stock purchase plan | $ 31 | 27 | ||
Preferred stock dividends paid | (219) | (219) | ||
Treasury Stock, Value, Acquired, Cost Method | $ (579) | $ (1,860) | ||
Common Stock, Shares, Outstanding | 8,306,573 | 8,314,778 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities | ||
Net income | $ 8,848 | $ 8,979 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes, net | 2,268 | 312 |
Provision for credit losses | 2,326 | 1,561 |
Depreciation, amortization and accretion, net | 791 | 912 |
Share-based compensation | 665 | 634 |
Net loss on disposal of fixed assets | 10 | 0 |
Gain on disposal of lease equipment | 0 | 1 |
Net loss on sale of securities | (8) | 0 |
Amortization of tax credit investments | 1,296 | 436 |
Bank-owned life insurance policy income | (412) | (366) |
Originations of loans for sale | (37,213) | (27,639) |
Sale of loans originated for sale | 37,142 | 28,049 |
Gain on sale of loans originated for sale | (195) | (476) |
Net loss on repossessed assets | 86 | 6 |
Return on investment in limited partnerships | 644 | 1,690 |
Excess tax benefit expense from share-based compensation | 90 | 137 |
Payments on operating lease liabilities | (385) | (355) |
Net increase in accrued interest receivable and other assets | 977 | (5,738) |
Net (decrease) increase in accrued interest payable and other liabilities | (8,263) | 1,766 |
Net cash provided by operating activities | 8,683 | 9,909 |
Investing activities | ||
Proceeds from maturities, redemptions, and paydowns of available-for-sale securities | 11,814 | 4,574 |
Proceeds from maturities, redemptions, and paydowns of held-to-maturity securities | 369 | 1,169 |
Proceeds from sale of available-for-sale securities | 7,533 | 0 |
Purchases of available-for-sale securities | (39,332) | (25,924) |
Net increase in loans and leases | (61,454) | (96,356) |
Investments in limited partnerships | (600) | (650) |
Returns of investments in limited partnerships | 0 | 4 |
Investment in tax credit investments | (195) | (3,090) |
Distribution from tax credit investments | 57 | 0 |
Proceeds from Sale of Tax Credit | 731 | 0 |
Investment in Federal Home Loan Bank stock | (1,284) | (11,644) |
Proceeds from the sale of Federal Home Loan Bank stock | 0 | 16,369 |
Purchases of leasehold improvements and equipment, net | (397) | (798) |
Proceeds from sale of leasehold improvements and equipment | 30 | 0 |
Net cash used in investing activities | (82,728) | (116,346) |
Financing activities | ||
Net (decrease) increase in deposits | (41,373) | 308,635 |
Repayment of Federal Home Loan Bank advances | (95,450) | (810,350) |
Proceeds from Federal Home Loan Bank advances | 146,200 | 701,470 |
Net increase (decrease) in long-term borrowed funds | 52 | (6,069) |
Cash dividends paid | (2,087) | (1,906) |
Preferred stock dividend | (219) | (219) |
Proceeds from issuance of common stock under ESPP | 31 | 27 |
Purchase of treasury stock | (579) | (1,860) |
Net cash provided by financing activities | 6,575 | 189,728 |
Net (decrease) increase in cash and cash equivalents | (67,470) | 83,291 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 72,040 | 185,973 |
Cash paid during the period for: | ||
Interest paid on deposits and borrowings | 26,323 | 13,010 |
Income taxes paid | 7 | (7) |
Transfer of loans to repossessed assets | $ 157 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1 — Nature of Operations and Summary of Significant Accounting Policies Nature of Operations The accounting and reporting practices of First Business Financial Services, Inc. (“FBFS” or the “Corporation”), through our wholly-owned subsidiary, First Business Bank (“FBB” or the “Bank”), have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). FBB operates as a commercial banking institution primarily in Wisconsin and the greater Kansas City metropolitan area. The Bank provides a full range of financial services to businesses, business owners, executives, professionals, and high net worth individuals. FBB also offers bank consulting services to community financial institutions. The Bank is subject to competition from other financial institutions and service providers and is also subject to state and federal regulations. As of March 31, 2024, FBB had the following wholly-owned subsidiaries: First Business Specialty Finance, LLC (“FBSF”), First Madison Investment Corp. (“FMIC”), ABKC Real Estate, LLC (“ABKC”), FBB Real Estate 2, LLC (“FBB RE 2”), Mitchell Street Apartments Investment, LLC (“Mitchell Street”), and FBB Tax Credit Investment, LLC (“FBB Tax Credit”). Basis of Presentation The accompanying unaudited Consolidated Financial Statements were prepared in accordance with GAAP and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s Consolidated Financial Statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023. The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Management of the Corporation is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of the allowance for credit losses, lease residuals, property under operating leases, goodwill, and income taxes. The results of operations for the three months ended March 31, 2024, are not necessarily indicative of results that may be expected for any other interim period or the entire fiscal year ending December 31, 2024. Certain amounts in prior periods may have been reclassified to conform to the current presentation. Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. The Corporation has not changed its significant accounting and reporting policies from those disclosed in the Corporation’s Form 10-K for the year ended December 31, 2023. Recent Accounting Pronouncements In March 2023, the Financial Accounting Standards Board issued Accounting Standards Update No. 2023-02 “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force).” The amendments in this Update permit reporting entities to elect to account for their tax equity investments, regardless of the program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The ASU is effective for annual and interim periods beginning after December 15, 2023. The Corporation adopted the standard effective January 1, 2024. The implementation did not have a material effect on the Consolidated Financial Statements. In October 2023, the FASB issued ASU No. 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This update is intended to improve the relevance and usefulness of financial information for investors and other users by incorporating certain SEC disclosure requirements into the FASB Accounting Standards Codification. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The adoption of this standard did not have a material effect on the Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures.” This update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024. The Corporation is assessing the impact of the standard. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This update enhances the transparency and decision usefulness of income tax disclosures by providing better information regarding exposure to potential changes in jurisdictional tax legislation and related forecasting and cash flow opportunities. This update is effective for fiscal years beginning after December 15, 2024. The Corporation is assessing the impact of the standard. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted-average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method. For the Three Months Ended March 31, 2024 2023 (Dollars in Thousands, Except Share Data) Basic earnings per common share Net income $ 8,848 $ 8,979 Less: preferred stock dividends 219 219 Less: earnings allocated to participating securities 214 238 Basic earnings allocated to common shareholders $ 8,415 $ 8,522 Weighted-average common shares outstanding, excluding participating securities 8,125,319 8,148,525 Basic earnings per common share $ 1.04 $ 1.05 Diluted earnings per common share Earnings allocated to common shareholders, diluted $ 8,415 $ 8,522 Weighted-average diluted common shares outstanding, excluding participating securities 8,125,319 8,148,525 Diluted earnings per common share $ 1.04 $ 1.05 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Corporation initially adopted the 2019 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2019. The Plan is administered by the Compensation Committee of the Board of Directors (the “Board”) of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options, restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of March 31, 2024, 274,242 shares were available for future grants under the Plan, as amended. Shares covered by awards that expire, terminate, or lapse will again be available for the grant of awards under the Plan. Restricted Stock Under the Plan, the Corporation may grant restricted stock awards (“RSA”), restricted stock units (“RSU”), and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, RSA participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. RSUs do not have voting rights. RSUs granted prior to 2023 are provided dividend equivalents concurrent with dividends paid to shareholders while RSUs granted in 2023 and after will accrue dividend equivalents payable upon vesting. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense for restricted stock is recognized over the requisite service period of generally three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the unaudited Consolidated Statements of Income. The Corporation may also issue performance-based restricted stock units (“PRSU”). Vesting of the PRSU will be measured on the relative Total Shareholder Return (“TSR”) and relative Return on Average Equity (“ROAE”) for issuances prior to 2023 or Return on Average Common Equity (“ROACE”) for issuances after 2022, and will cliff-vest after a three-year measurement period based on the Corporation’s TSR performance and ROAE or ROACE performance compared to a broad peer group of over 100 banks. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. The restricted stock awards and units issued to executive officers will vest ratably over a three-year period. Compensation expense is recognized for PRSU over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the ROAE or ROACE metric will be adjusted if there is a change in the expectation of ROAE or ROACE. The compensation expense for the awards expected to vest for the percentage of PRSU subject to the TSR metric are never adjusted and are amortized utilizing the accounting fair value provided using a Monte Carlo pricing model. Restricted stock activity for the year ended December 31, 2023 and the three months ended March 31, 2024 was as follows: RSA Weighted Average Grant Price PRSU Weighted Average Grant Price RSU Weighted Average Grant Price Total Weighted Average Grant Price Nonvested balance as of December 31, 2022 133,317 $ 27.95 57,435 $ 32.89 6,105 $ 25.92 196,857 $ 29.32 Granted (1) — — 34,840 35.79 54,955 34.43 89,795 34.96 Vested (56,931) 27.03 (36,120) 31.31 (3,253) 26.06 (96,304) 28.60 Forfeited (4,435) 30.20 — — (820) 36.42 (5,255) 31.17 Nonvested balance as of December 31, 2023 71,951 28.53 56,155 35.70 56,987 33.97 185,093 32.38 Granted (1) — — 17,025 42.89 46,025 36.08 63,050 32.78 Vested (32,211) 26.87 — — (13,264) 34.47 (45,475) 29.09 Forfeited (5,085) 30.33 — — (3,875) 36.30 (8,960) 32.91 Nonvested balance as of March 31, 2024 34,655 $ 29.81 73,180 $ 37.37 85,873 $ 34.92 193,708 $ 34.93 Unrecognized compensation cost (in thousands) $ 911 $ 1,559 $ 2,709 $ 5,179 Weighted average remaining recognition period (in years) 1.59 2.15 3.20 2.60 (1) The number of restricted shares/units shown includes the shares that would be granted if the target level of performance is achieved related to the PRSU. The number of shares actually issued may vary. Employee Stock Purchase Plan The Corporation is authorized to issue up to 250,000 shares of common stock under the ESPP. The plan qualifies as an employee stock purchase plan under section 423 of the Internal Revenue Code of 1986. Under the ESPP, eligible employees may enroll in a three month offer period that begins January, April, July, and October of each year. Employees may elect to purchase a limited number of shares of the Corporation's common stock at 90% of the fair market value on the last day of the offering period. The ESPP is treated as a compensatory item for purposes of share-based compensation expense. During the three months ended March 31, 2024, the Corporation issued 913 shares of common stock under the ESPP. As of March 31, 2024, 229,725 shares remained available for issuance under the ESPP. Share-based compensation expense related to restricted stock and ESPP included in the unaudited Consolidated Statements of Income was as follows: For the Three Months Ended March 31, 2024 2023 (In Thousands) Share-based compensation expense $ 665 $ 634 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: As of March 31, 2024 Amortized Cost Gross Gross Fair Value (In Thousands) Available-for-sale: U.S. treasuries $ 14,239 $ — $ (410) 13,829 U.S. government agency securities - government-sponsored enterprises 15,901 — (463) 15,438 Municipal securities 40,304 — (5,007) 35,297 Residential mortgage-backed securities - government issued 105,331 409 (2,871) 102,869 Residential mortgage-backed securities - government-sponsored enterprises 127,841 145 (11,754) 116,232 Commercial mortgage-backed securities - government issued 2,823 — (469) 2,354 Commercial mortgage-backed securities - government-sponsored enterprises 32,603 44 (4,552) 28,095 $ 339,042 $ 598 $ (25,526) $ 314,114 As of December 31, 2023 Amortized Cost Gross Gross Fair Value (In Thousands) Available-for-sale: U.S. treasuries $ 14,158 $ 7 $ (389) $ 13,776 U.S. government agency securities - government-sponsored enterprises 27,986 35 (455) 27,566 Municipal securities 40,407 — (4,526) 35,881 Residential mortgage-backed securities - government issued 69,441 1,000 (2,385) 68,056 Residential mortgage-backed securities - government-sponsored enterprises 131,321 281 (10,769) 120,833 Commercial mortgage-backed securities - government issued 2,995 — (470) 2,525 Commercial mortgage-backed securities - government-sponsored enterprises 32,774 65 (4,470) 28,369 $ 319,082 $ 1,388 $ (23,464) $ 297,006 The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows: As of March 31, 2024 Amortized Cost Gross Gross Fair Value (In Thousands) Held-to-maturity: Municipal securities $ 4,017 $ — $ (57) $ 3,960 Residential mortgage-backed securities - government issued 1,114 — (73) 1,041 Residential mortgage-backed securities - government-sponsored enterprises 996 — (57) 939 Commercial mortgage-backed securities - government-sponsored enterprises 2,004 — (96) 1,908 $ 8,131 $ — $ (283) $ 7,848 As of December 31, 2023 Amortized Cost Gross Gross Fair Value (In Thousands) Held-to-maturity: Municipal securities $ 4,210 $ 4 $ (41) $ 4,173 Residential mortgage-backed securities - government issued 1,211 — (76) 1,135 Residential mortgage-backed securities - government-sponsored enterprises 1,078 — (53) 1,025 Commercial mortgage-backed securities - government-sponsored enterprises 2,004 — (82) 1,922 $ 8,503 $ 4 $ (252) $ 8,255 U.S. Treasuries contain treasury bonds issued by the United States Treasury. U.S. government agency securities - government-sponsored enterprises represent securities issued by Federal National Mortgage Association (“FNMA”) and the SBA. Municipal securities include securities issued by various municipalities located primarily within Wisconsin and are primarily general obligation bonds that are tax-exempt in nature. Residential and commercial mortgage-backed securities - government issued represent securities guaranteed by the Government National Mortgage Association. Residential and commercial mortgage-backed securities - government-sponsored enterprises include securities guaranteed by the Federal Home Loan Mortgage Corporation, FNMA, and the FHLB. The Corporation sold five available-for-sale securities during the three months ended March 31, 2024. There were no sales of available-for-sale securities during the three months ended March 31, 2023. At March 31, 2024 and December 31, 2023, securities with a fair value of $33.0 million and $45.4 million, respectively, were pledged to secure various obligations, including interest rate swap contracts and municipal deposits. The amortized cost and fair value of securities by contractual maturity at March 31, 2024 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ 18,655 $ 18,645 $ 870 $ 870 Due in one year through five years 19,674 18,259 3,147 3,090 Due in five through ten years 10,553 9,736 — — Due in over ten years 21,562 17,924 — — 70,444 64,564 4,017 3,960 Residential mortgage-backed securities 233,172 219,101 2,110 1,980 Commercial mortgage-backed securities 35,426 30,449 2,004 1,908 $ 339,042 $ 314,114 $ 8,131 $ 7,848 The tables below show the Corporation’s gross unrealized losses and fair value of available-for-sale investments aggregated by investment category and length of time that individual investments were in a continuous loss position at March 31, 2024 and December 31, 2023. At March 31, 2024, the Corporation held 182 available-for-sale securities that were in an unrealized loss position, 159 of which have been in a continuous unrealized loss position for twelve months or greater. The Corporation has not specifically identified available-for-sale securities in a loss position that it intends to sell in the near term and does not believe that it will be required to sell any such securities. The Corporation reviews its securities on a quarterly basis to assess declines in fair value for credit losses. Consideration is given to such factors as the credit rating of the borrower, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. For the three months ended March 31, 2024 and 2023, management concluded that in all instances securities with fair value less than carrying value was due to market and other factors; thus, no credit loss provision was required. A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of March 31, 2024 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (In Thousands) Available-for-sale: U.S. treasuries $ 9,252 $ 3 $ 4,577 $ 407 $ 13,829 $ 410 U.S. government agency securities - government-sponsored enterprises 10,381 20 5,057 443 15,438 463 Municipal securities — — 35,297 5,007 35,297 5,007 Residential mortgage-backed securities - government issued 37,001 409 17,270 2,462 54,271 2,871 Residential mortgage-backed securities - government-sponsored enterprises 20,280 331 86,461 11,423 106,741 11,754 Commercial mortgage-backed securities - government issued — — 2,354 469 2,354 469 Commercial mortgage-backed securities - government-sponsored enterprises — — 27,102 4,552 27,102 4,552 $ 76,914 $ 763 $ 178,118 $ 24,763 $ 255,032 $ 25,526 As of December 31, 2023 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (In Thousands) Available-for-sale: U.S. treasuries $ — $ — $ 4,595 $ 389 $ 4,595 $ 389 U.S. government agency securities - government-sponsored enterprises 13,370 30 3,076 425 16,446 455 Municipal securities — — 35,881 4,526 35,881 4,526 Residential mortgage-backed securities - government issued 13,178 160 13,819 2,225 26,997 2,385 Residential mortgage-backed securities - government-sponsored enterprises 19,925 285 78,086 10,484 98,011 10,769 Commercial mortgage-backed securities - government issued — — 2,525 470 2,525 470 Commercial mortgage-backed securities - government-sponsored enterprises 893 20 26,465 4,450 27,358 4,470 $ 47,366 $ 495 $ 164,447 $ 22,969 $ 211,813 $ 23,464 The tables below show the Corporation’s gross unrealized losses and fair value of held-to-maturity investments, aggregated by investment category and length of time that individual investments were in a continuous loss position at March 31, 2024 and December 31, 2023. At March 31, 2024, the Corporation held 25 held-to-maturity securities that were in an unrealized loss position, 21 of which have been in a continuous loss position for twelve months or greater. Management assesses held-to-maturity securities for credit losses on a quarterly basis. The assessment includes review of credit ratings, identification of delinquency and evaluation of market factors. Based on this analysis, management concludes the decline in fair value is due to market factors, specifically changes in interest rates. Accordingly, no credit loss provision was recorded in the unaudited Consolidated Statements of Income for the three months ended March 31, 2024 and 2023. A summary of unrecognized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of March 31, 2024 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Fair Value Unrecognized Fair Value Unrecognized (In Thousands) Held-to-maturity: Municipal securities $ 1,655 $ 12 $ 1,765 $ 45 $ 3,420 $ 57 Residential mortgage-backed securities - government issued — — 1,041 73 1,041 73 Residential mortgage-backed securities - government-sponsored enterprises — — 939 57 939 57 Commercial mortgage-backed securities - government-sponsored enterprises — — 1,908 96 1,908 96 $ 1,655 $ 12 $ 5,653 $ 271 $ 7,308 $ 283 As of December 31, 2023 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Fair Value Unrecognized Fair Value Unrecognized (In Thousands) Held-to-maturity: Municipal securities $ 1,424 $ 4 $ 2,234 $ 37 $ 3,658 $ 41 Residential mortgage-backed securities - government issued — — 1,135 76 1,135 76 Residential mortgage-backed securities - government-sponsored enterprises — — 1,025 53 1,025 53 Commercial mortgage-backed securities - government-sponsored enterprises — — 1,922 82 1,922 82 $ 1,424 $ 4 $ 6,316 $ 248 $ 7,740 $ 252 |
Loans, Lease Receivables, and A
Loans, Lease Receivables, and Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loans, Lease Receivables, and Allowance for Credit Losses | Loans, Lease Receivables, and Allowance for Credit Losses Loan and lease receivables consist of the following: March 31, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 263,748 $ 256,479 Commercial real estate — non-owner occupied 792,858 773,494 Construction 202,382 193,080 Multi-family 453,321 450,529 1-4 family 27,482 26,289 Total commercial real estate 1,739,791 1,699,871 Commercial and industrial 1,120,779 1,105,835 Consumer and other 50,020 44,312 Total gross loans and leases receivable 2,910,590 2,850,018 Less: Allowance for loan losses 32,799 31,275 Deferred loan fees and costs, net (274) (243) Loans and leases receivable, net $ 2,878,065 $ 2,818,986 Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market and participation interests in other, non-SBA originated loans. The total principal amount of the guaranteed portions of SBA loans sold during the three months ended March 31, 2024, and 2023, was $2.1 million and $5.0 million, respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the three months ended March 31, 2024, and 2023, have been derecognized in the unaudited Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. The total outstanding balance of sold SBA loans at March 31, 2024, and December 31, 2023, was $80.8 million and $84.2 million, respectively. The total principal amount of transferred participation interests in other, non-SBA originated loans during the three months ended March 31, 2024, and 2023, was $34.8 million and $22.6 million, respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other, non-SBA originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represents adequate compensation. The total outstanding balance of these transferred loans at March 31, 2024, and December 31, 2023, was $302.8 million and $279.5 million, respectively. As of March 31, 2024, and December 31, 2023, the total amount of the Corporation’s partial ownership of these transferred loans on the unaudited Consolidated Balance Sheets was $376.8 million and $367.4 million, respectively. As of March 31, 2024 and December 31, 2023, the non-SBA originated participation portfolio contained no non-performing loans. The Corporation does not share in the participant’s portion of any potential charge-offs. The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-performing loans by class of receivable, and considering certain credit quality indicators: March 31, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate — owner occupied Category I $ 4,587 $ 39,361 $ 46,629 $ 38,100 $ 44,415 $ 88,783 $ 1,118 $ 262,993 II — — — — — 303 — 303 III — — — — — 452 — 452 IV — — — — — — — — Total $ 4,587 $ 39,361 $ 46,629 $ 38,100 $ 44,415 $ 89,538 $ 1,118 $ 263,748 Commercial real estate — non-owner occupied Category I $ 14,263 $ 71,834 $ 76,485 $ 72,049 $ 87,338 $ 368,191 $ 34,705 $ 724,865 II — — — 2,289 2,227 43,867 — 48,383 III — 680 — — — 18,930 — 19,610 IV — — — — — — — — Total $ 14,263 $ 72,514 $ 76,485 $ 74,338 $ 89,565 $ 430,988 $ 34,705 $ 792,858 Construction Category I $ 10,982 $ 85,216 $ 64,039 $ 8,845 $ 739 $ 6,148 $ 10,688 $ 186,657 II — — — — — — — — III — — 454 9,289 5,713 269 — 15,725 IV — — — — — — — — Total $ 10,982 $ 85,216 $ 64,493 $ 18,134 $ 6,452 $ 6,417 $ 10,688 $ 202,382 Multi-family Category I $ 19,964 $ 77,049 $ 42,927 $ 69,755 $ 103,163 $ 137,451 $ 3,012 $ 453,321 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 19,964 $ 77,049 $ 42,927 $ 69,755 $ 103,163 $ 137,451 $ 3,012 $ 453,321 1-4 family Category I $ 599 $ 4,231 $ 7,395 $ 2,642 $ 2,340 $ 3,004 $ 7,251 $ 27,462 II — — — — — — — — III — — — — — — — — IV — — — — — 20 — 20 Total $ 599 $ 4,231 $ 7,395 $ 2,642 $ 2,340 $ 3,024 $ 7,251 $ 27,482 March 31, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Category I $ 62,280 $ 281,217 $ 128,662 $ 76,007 $ 34,882 $ 41,167 $ 434,523 $ 1,058,738 II 4,161 1,778 5,952 839 255 264 5,287 18,536 III — 1,277 7,612 1,802 1,403 4,989 6,613 23,696 IV — 2,593 6,366 1,221 523 1,627 7,479 19,809 Total $ 66,441 $ 286,865 $ 148,592 $ 79,869 $ 37,063 $ 48,047 $ 453,902 $ 1,120,779 Consumer and other Category I $ 6,738 $ 5,873 $ 8,182 $ 3,068 $ 12,139 $ 5,989 $ 8,031 $ 50,020 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 6,738 $ 5,873 $ 8,182 $ 3,068 $ 12,139 $ 5,989 $ 8,031 $ 50,020 Total Loans Category I $ 119,413 $ 564,781 $ 374,319 $ 270,466 $ 285,016 $ 650,733 $ 499,328 $ 2,764,056 II 4,161 1,778 5,952 3,128 2,482 44,434 5,287 67,222 III — 1,957 8,066 11,091 7,116 24,640 6,613 59,483 IV — 2,593 6,366 1,221 523 1,647 7,479 $ 19,829 Total $ 123,574 $ 571,109 $ 394,703 $ 285,906 $ 295,137 $ 721,454 $ 518,707 $ 2,910,590 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate — owner occupied Category I $ 31,637 $ 43,156 $ 38,803 $ 44,704 $ 22,078 $ 72,774 $ 451 $ 253,603 II — — — 260 — — — 260 III — — — — — 2,616 — 2,616 IV — — — — — — — — Total $ 31,637 $ 43,156 $ 38,803 $ 44,964 $ 22,078 $ 75,390 $ 451 $ 256,479 Commercial real estate — non-owner occupied Category I $ 71,857 $ 76,689 $ 72,660 $ 78,212 $ 66,262 $ 314,970 $ 32,478 $ 713,128 II — — 2,302 2,252 19,838 16,274 — 40,666 III — — — — — 19,700 — 19,700 IV — — — — — — — — Total $ 71,857 $ 76,689 $ 74,962 $ 80,464 $ 86,100 $ 350,944 $ 32,478 $ 773,494 Construction Category I $ 63,660 $ 83,161 $ 8,542 $ 744 $ 433 $ 6,528 $ 15,011 $ 178,079 II — — 9,289 5,712 — — — 15,001 III — — — — — — — — IV — — — — — — — — Total $ 63,660 $ 83,161 $ 17,831 $ 6,456 $ 433 $ 6,528 $ 15,011 $ 193,080 Multi-family Category I $ 84,932 $ 41,068 $ 70,054 $ 113,294 $ 22,925 $ 115,243 $ 3,013 $ 450,529 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 84,932 $ 41,068 $ 70,054 $ 113,294 $ 22,925 $ 115,243 $ 3,013 $ 450,529 1-4 family Category I $ 4,242 $ 7,684 $ 2,672 $ 2,359 $ 443 $ 2,805 $ 6,062 $ 26,267 II — — — — — — — — III — — — — — — — — IV — — — — — 22 — 22 Total $ 4,242 $ 7,684 $ 2,672 $ 2,359 $ 443 $ 2,827 $ 6,062 $ 26,289 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Category I $ 302,612 $ 144,167 $ 85,504 $ 38,164 $ 20,151 $ 26,490 $ 415,301 $ 1,032,389 II 1,496 5,280 785 353 94 219 5,706 13,933 III 1,093 7,168 1,882 5,919 3,861 3,957 15,058 38,938 IV 1,482 6,519 1,319 321 133 1,644 9,157 20,575 Total $ 306,683 $ 163,134 $ 89,490 $ 44,757 $ 24,239 $ 32,310 $ 445,222 $ 1,105,835 Consumer and other Category I $ 5,920 $ 8,786 $ 3,167 $ 12,193 $ 2,049 $ 3,485 $ 8,712 $ 44,312 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 5,920 $ 8,786 $ 3,167 $ 12,193 $ 2,049 $ 3,485 $ 8,712 $ 44,312 Total Loans Category I $ 564,860 $ 404,711 $ 281,402 $ 289,670 $ 134,341 $ 542,295 $ 481,028 $ 2,698,307 II 1,496 5,280 12,376 8,577 19,932 16,493 5,706 69,860 III 1,093 7,168 1,882 5,919 3,861 26,273 15,058 61,254 IV 1,482 6,519 1,319 321 133 1,666 9,157 $ 20,597 Total $ 568,931 $ 423,678 $ 296,979 $ 304,487 $ 158,267 $ 586,727 $ 510,949 $ 2,850,018 Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers, or as other circumstances dictate. The Corporation primarily uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is subjective and, depending on the size and nature of the credit, subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management. Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team, or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers, and continued review of such borrowers’ compliance with the terms of their respective agreements. Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends, or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by asset quality review committees. Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry, or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and asset quality review committees on a monthly basis. Category IV — Loans and leases in this category are non-performing loans. Management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Non-performing loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded. Loans and leases in this category are monitored by management and asset quality review committees on a monthly basis. The delinquency aging of the loan and lease portfolio by class of receivable was as follows: March 31, 2024 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Total loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 263,748 $ 263,748 Non-owner occupied — — — — 792,858 792,858 Construction — — — — 202,382 202,382 Multi-family — — — — 453,321 453,321 1-4 family — — — — 27,482 27,482 Commercial and industrial 2,071 480 16,745 19,296 1,101,483 1,120,779 Consumer and other — — — — 50,020 50,020 Total $ 2,071 $ 480 $ 16,745 $ 19,296 $ 2,891,294 $ 2,910,590 Percent of portfolio 0.07 % 0.02 % 0.57 % 0.66 % 99.34 % 100.00 % December 31, 2023 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Total loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 256,479 $ 256,479 Non-owner occupied — — — — 773,494 773,494 Construction — — — — 193,080 193,080 Multi-family — — — — 450,529 450,529 1-4 family — — — — 26,289 26,289 Commercial and industrial 3,430 1,041 18,347 22,818 1,083,017 1,105,835 Consumer and other — — — — 44,312 44,312 Total $ 3,430 $ 1,041 $ 18,347 $ 22,818 $ 2,827,200 $ 2,850,018 Percent of portfolio 0.12 % 0.04 % 0.64 % 0.80 % 99.20 % 100.00 % The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of: March 31, 2024 Non-accrual With No Allowance for Credit Loss Non-accrual With Allowance for Credit Loss Loans Past Due Over 89 Days Still Accruing (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ — $ — $ — Commercial real estate — non-owner occupied — — — Construction — — — Multi-family — — — 1-4 family 20 — — Total commercial real estate 20 — — Commercial and industrial 9,305 10,504 — Consumer and other — — — Total non-accrual loans and leases $ 9,325 $ 10,504 $ — December 31, 2023 Non-accrual With No Allowance for Credit Loss Non-accrual Loans Past Due Over 89 Days Still Accruing (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ — $ — $ — Commercial real estate — non-owner occupied — — — Construction — — — Multi-family — — — 1-4 family — 22 — Total commercial real estate — 22 — Commercial and industrial 9,690 10,885 — Consumer and other — — — Total non-accrual loans and leases $ 9,690 $ 10,907 $ — March 31, December 31, Total non-accrual loans and leases to gross loans and leases 0.68 % 0.72 % Allowance for credit losses to gross loans and leases 1.19 1.16 Allowance for credit losses to non-accrual loans and leases 174.64 160.21 The following table presents the amortized cost basis of the non-accrual, collateral-dependent commercial and industrial loans as of: March 31, December 31, (In Thousands) Inventory $ 1,120 $ 8,879 Equipment 4,753 3,740 Real Estate 140 46 Accounts Receivable 6,359 278 Other 1,191 1,348 Total $ 13,563 $ 14,291 Occasionally, the Corporation modifies loans to borrowers in financial distress. There were six commercial and industrial loans for a total of $1.1 million and two commercial real estate non-owner occupied loans for a total of $5.9 million modified during the three months ended March 31, 2024. The modifications consisted of payment deferrals and modified loan repayment schedules. Of these modified loans, two are included in total non-performing loans and are currently between zero and 300 days past due as of March 31, 2024. No loans were modified during the three months ended March 31, 2023. There was one commercial and industrial loan to borrowers experiencing financial distress for a total of $283,000 that was modified during the previous 12 months and which subsequently defaulted during three months ended March 31, 2024. There were no loans to borrowers experiencing financial distress that were modified during the previous 12 months and which subsequently defaulted during the three months ended March 31, 2023. There were no unfunded commitments associated with loans modified for borrowers experiencing financial distress as of March 31, 2024. Allowance for Credit Losses The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in the Corporation’s Form 10-K for the year ended December 31, 2023. Quantitative Considerations The ACL is primarily calculated utilizing a discounted cash flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below: • Forecast model - For each portfolio segment, a loss driver analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer FFIEC Call Report data for all pools. The Corporation plans to update the LDA annually. • Probability of default – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs. • Loss given default – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data. • Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually. • Forecast and reversion – the Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. • Economic forecast – the Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2023, the Corporation selected a forecast which estimates unemployment between 3.89% and 4.04% and GDP growth change between 1.29% and 2.32% over the next four quarters. As of March 31, 2024, the Corporation selected a forecast which estimates unemployment between 3.96% and 4.10% and GDP growth change between 1.43% and 2.99% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks. Qualitative Considerations In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below: • The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries; • Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets; • The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff; • The volume of past due financial assets, the volume of non-performing assets, and the volume and severity of adversely classified or graded assets; • The existence and effect of industry concentrations of credit; • The nature and volume of the portfolio segment or class; • The quality of the Corporation’s credit review function; and • The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics. ACL Activity A summary of the activity in the allowance for credit losses by portfolio segment is as follows: As of and for the Three Months Ended March 31, 2024 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer Total (In Thousands) Beginning balance $ 1,540 $ 5,636 $ 2,125 $ 3,571 $ 266 $ 19,408 $ 451 $ 32,997 Charge-offs — — — — — (899) (22) (921) Recoveries 1 — — — 110 116 — 227 Net recoveries (charge-offs) 1 — — — 110 (783) (22) (694) Provision for credit losses 35 566 412 28 (64) 1,289 60 2,326 Ending balance $ 1,576 $ 6,202 $ 2,537 $ 3,599 $ 312 $ 19,914 $ 489 $ 34,629 Components: Allowance for credit losses on loans 1,562 6,164 1,515 3,588 282 19,250 438 32,799 Allowance for credit losses on unfunded credit commitments 14 38 1,022 11 30 664 51 1,830 Total ACL $ 1,576 $ 6,202 $ 2,537 $ 3,599 $ 312 $ 19,914 $ 489 $ 34,629 As of and for the Three Months Ended March 31, 2023 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer and Other Total (In Thousands) Beginning balance $ 1,766 $ 5,108 $ 1,646 $ 2,634 $ 207 $ 12,403 $ 466 $ 24,230 Impact of adopting ASC 326 (204) (242) 796 (386) (45) 1,873 26 1,818 Charge-offs — — — — — (166) — (166) Recoveries — 1 — — — 95 11 107 Net recoveries (charge-offs) — 1 — — — (71) 11 (59) Provision for credit losses 94 99 (155) 653 59 700 111 1,561 Ending balance $ 1,656 $ 4,966 $ 2,287 $ 2,901 $ 221 $ 14,905 $ 614 $ 27,550 Components: Allowance for credit losses on loans $ 1,636 $ 4,915 $ 1,586 $ 2,892 $ 201 $ 14,348 $ 562 $ 26,140 Allowance for credit losses on unfunded credit commitments 20 51 701 9 20 557 52 1,410 Total ACL $ 1,656 $ 4,966 $ 2,287 $ 2,901 $ 221 $ 14,905 $ 614 $ 27,550 ACL Summary Loans collectively evaluated for credit losses in the following tables include all performing loans at March 31, 2024 and December 31, 2023. Loans individually evaluated for credit losses include all non-performing loans. The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology. As of March 31, 2024 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer Total (In Thousands) Allowance for credit losses: Collectively evaluated for credit losses $ 1,562 $ 6,164 $ 1,515 $ 3,588 $ 282 $ 12,632 $ 438 $ 26,181 Individually evaluated for credit loss — — — — — 6,618 — 6,618 Total $ 1,562 $ 6,164 $ 1,515 $ 3,588 $ 282 $ 19,250 $ 438 $ 32,799 Loans and lease receivables: Collectively evaluated for credit losses $ 263,748 $ 792,858 $ 202,382 $ 453,321 $ 27,462 $ 1,100,970 $ 50,020 $ 2,890,761 Individually evaluated for credit loss — — — — 20 19,809 — 19,829 Total $ 263,748 $ 792,858 $ 202,382 $ 453,321 $ 27,482 $ 1,120,779 $ 50,020 $ 2,910,590 As of December 31, 2023 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer Total (In Thousands) Allowance for credit losses: Collectively evaluated for credit losses $ 1,525 $ 5,596 $ 1,244 $ 3,562 $ 221 $ 12,743 $ 395 $ 25,286 Individually evaluated for credit loss — — — — 22 5,967 — 5,989 Total $ 1,525 $ 5,596 $ 1,244 $ 3,562 $ 243 $ 18,710 $ 395 $ 31,275 Loans and lease receivables: Collectively evaluated for credit losses $ 256,479 $ 773,494 $ 193,080 $ 450,529 $ 26,267 $ 1,085,260 $ 44,312 $ 2,829,421 Individually evaluated for credit loss — — — — 22 20,575 — 20,597 Total $ 256,479 $ 773,494 $ 193,080 $ 450,529 $ 26,289 $ 1,105,835 $ 44,312 $ 2,850,018 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases The Corporation leases various office spaces and specialized lending production offices under non-cancellable operating leases which expire on various dates through 2033. The Corporation also leases office equipment. The Corporation recognizes a right-of-use asset and an operating lease liability for all leases, with the exception of short-term leases. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. The components of total lease expense were as follows: For the Three Months Ended March 31, 2024 2023 (In Thousands) Operating lease cost $ 357 $ 382 Short-term lease cost 37 63 Variable lease cost 141 150 Less: sublease income — (45) Total lease cost, net $ 535 $ 550 Quantitative information regarding the Corporation’s operating leases was as follows: March 31, 2024 December 31, 2023 Weighted-average remaining lease term (in years) 7.55 7.70 Weighted-average discount rate 3.66 % 3.61 % The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities: (In Thousands) 2024 $ 1,139 2025 1,408 2026 1,400 2027 1,427 2028 1,113 Thereafter 3,600 Total undiscounted cash flows 10,087 Discount on cash flows (1,423) Total lease liability $ 8,664 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 7 — Other Assets A summary of accrued interest receivable and other assets was as follows: March 31, 2024 December 31, 2023 (In Thousands) Accrued interest receivable $ 13,650 $ 13,275 Net deferred tax asset 8,267 9,508 Investment in historic development entities 2,393 2,393 Investment in low-income housing development entities 31,471 33,303 Investment in limited partnerships 15,566 15,027 Prepaid expenses 5,309 4,269 Other assets 13,688 13,283 Total accrued interest receivable and other assets $ 90,344 $ 91,058 For the three months ended March 31, 2024 and 2023, the Corporation amortized tax credit investments of $1.3 million and $436,000 respectively, and recognized tax credits and other benefits for the three months ended March 31, 2024 and 2023 of $1.7 million and $586,000, respectively, within the income tax expense on the unaudited consolidated statements of income. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
Deposits | Deposits The composition of deposits is shown below. Average balances represent year-to-date averages. March 31, 2024 December 31, 2023 Balance Average Average Rate Balance Average Average Rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 400,267 $ 443,416 — % $ 445,376 $ 453,930 — % Interest-bearing transaction accounts 818,080 862,896 3.92 895,319 689,500 3.44 Money market accounts 813,467 761,893 3.97 711,245 681,336 3.25 Certificates of deposit 266,029 278,248 4.61 287,131 273,387 4.10 Wholesale deposits 457,563 457,536 4.03 457,708 346,285 4.14 Total deposits $ 2,755,406 $ 2,803,989 3.40 $ 2,796,779 $ 2,444,438 2.92 A summary of annual maturities of core and wholesale certificates of deposit at March 31, 2024 is as follows: (In Thousands) Maturities during the year ended December 31, 2024 $ 494,093 2025 40,573 2026 50,383 2027 73,650 2028 12,821 Thereafter 2,072 $ 673,592 Wholesale deposits include $407.6 million and $50.0 million of wholesale certificates of deposit and non-reciprocal interest-bearing transaction accounts, respectively, at March 31, 2024, compared to $407.7 million and $50.0 million of wholesale certificates of deposit and non-reciprocal interest-bearing transaction accounts, respectively, at December 31, 2023. The Corporation has entered into derivative contracts hedging a portion of the certificates of deposit included in the 2024 maturities above. As of March 31, 2024, the notional amount of derivatives designated as cash flow hedges totaled $306.3 million with a weighted average remaining maturity of 3.7 years and a weighted average rate of 3.95%. Certificates of deposit and wholesale deposits denominated in amounts greater than $250,000 were $102.2 million at March 31, 2024 and $120.2 million at December 31, 2023. |
FHLB Advances, Other Borrowings
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures | FHLB Advances, Other Borrowings and Subordinated Notes and Debentures The composition of borrowed funds is shown below. Average balances represent year-to-date averages. March 31, 2024 December 31, 2023 Balance Weighted Average Weighted Balance Weighted Average Weighted (Dollars in Thousands) Federal funds purchased $ — $ — — % $ — $ 3 5.37 % FHLB advances 332,250 287,307 2.39 281,500 351,990 2.52 Line of credit — — — — 38 7.26 Other borrowings 10 20 — 20 600 8.33 Subordinated notes and debentures 49,458 49,438 5.78 49,396 38,250 5.16 $ 381,718 $ 336,765 2.89 $ 330,916 $ 390,881 2.79 A summary of annual maturities of borrowings at March 31, 2024 is as follows: (In Thousands) Maturities during the year ended December 31, 2024 $ 160,810 2025 48,000 2026 65,000 2027 28,000 2028 10,450 Thereafter 69,458 $ 381,718 As of March 31, 2024 and December 31, 2023, the Corporation had other borrowings of $10,000 and $20,000, respectively, which consisted of sold tax credit investments accounted for as secured borrowings because they did not qualify for true sale accounting. The Corporation has entered into derivative contracts hedging a portion of the borrowings included in the 2024 maturities above. As of March 31, 2024, the notional amount of derivatives designated as cash flow hedges totaled $88.4 million with a weighted average remaining maturity of 2.4 years and a weighted average rate of 1.66%. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock On March 4, 2022, the Corporation issued 12,500 shares, or $12.5 million in aggregate liquidation preference, of 7.0% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, par value $0.01 per share, with a liquidation preference of $1,000 per share (the “Series A Preferred Stock”) in a private placement to institutional investors. The net proceeds received from the issuance of the Series A Preferred Stock were $12.0 million. The Corporation expects to pay dividends on the Series A Preferred Stock when and if declared by the Board, at a fixed rate of 7.0% per annum, payable quarterly, in arrears, on March 15, June 15, September 15 and December 15 of each year up to, but excluding, March 15, 2027. For each dividend period from and including March 15, 2027, dividends will be paid at a floating rate of Three-Month Term SOFR plus a spread of 539 basis points per annum. During the three months ended March 31, 2024, the Board of Directors declared an aggregate preferred stock dividend of $219,000. The Series A Preferred Stock is perpetual and has no stated maturity. The Corporation may redeem the Series A Preferred Stock at its option at a redemption price equal to $1,000 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), subject to regulatory approval, on or after March 15, 2027 or within 90 days following a regulatory capital treatment event, in accordance with the terms of the Series A Preferred Stock. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, various legal proceedings involving the Corporation are pending. Management, based upon advice from legal counsel, does not anticipate any significant losses as a result of these actions. Management believes that any liability arising from any such proceedings currently existing or threatened will not have a material adverse effect on the Corporation’s financial position, results of operations, and cash flows. As of March 31, 2024, the Corporation is obligated to fund $3.4 million related to an equity investment. The funding took place in April 2024. The Corporation sells the guaranteed portions of SBA 7(a) and 504 loans, as well as participation interests in other, non-SBA originated, loans to third parties. The Corporation has a continuing involvement in each of the transferred lending arrangements by way of relationship management and servicing the loans, as well as being subject to normal and customary requirements of the SBA loan program and standard representations and warranties related to sold amounts. In the event of a loss resulting from default and a determination by the SBA that there is a deficiency in the manner in which the loan was originated, funded, or serviced by the Corporation, the SBA may require the Corporation to repurchase the loan, deny its liability under the guaranty, reduce the amount of the guaranty, or, if it has already paid under the guaranty, seek recovery of the principal loss related to the deficiency from the Corporation. The Corporation must comply with applicable SBA regulations in order to maintain the guaranty. In addition, the Corporation retains the option to repurchase the sold guaranteed portion of an SBA loan if the loan defaults. Management has assessed estimated losses inherent in the outstanding guaranteed portions of SBA loans sold in accordance with ASC 450, Contingencies , and determined a recourse reserve based on the probability of future losses for these loans to be $1.1 million at March 31, 2024, which is reported in accrued interest payable and other liabilities on the unaudited Consolidated Balance Sheets. The summary of the activity in the SBA recourse reserve is as follows: As of and for the Three Months Ended March 31, 2024 2023 (In Thousands) Balance at the beginning of the period $ 955 $ 441 SBA recourse provision (benefit) 126 (18) Balance at the end of the period $ 1,081 $ 423 |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk, such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, 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 for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: March 31, 2024 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. treasuries $ — $ 13,829 $ — $ 13,829 U.S. government agency securities - government-sponsored enterprises — 15,438 — 15,438 Municipal securities — 35,297 — 35,297 Residential mortgage-backed securities - government issued — 102,869 — 102,869 Residential mortgage-backed securities - government-sponsored enterprises — 116,232 — 116,232 Commercial mortgage-backed securities - government issued — 2,354 — 2,354 Commercial mortgage-backed securities - government-sponsored enterprises — 28,095 — 28,095 Interest rate swaps — 69,703 — 69,703 Liabilities: Interest rate swaps — 61,133 — 61,133 December 31, 2023 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. treasuries $ — $ 13,776 $ — $ 13,776 U.S. government agency securities - government-sponsored enterprises — 27,566 — 27,566 Municipal securities — 35,881 — 35,881 Residential mortgage-backed securities - government issued — 68,056 — 68,056 Residential mortgage-backed securities - government-sponsored enterprises — 120,833 — 120,833 Commercial mortgage-backed securities - government issued — 2,525 — 2,525 Commercial mortgage-backed securities - government-sponsored enterprises — 28,369 — 28,369 Interest rate swaps — 55,597 — 55,597 Liabilities: Interest rate swaps — 51,949 — 51,949 For assets and liabilities measured at fair value on a recurring basis, there were no transfers between the levels during the three months ended March 31, 2024 or the year ended December 31, 2023 related to the above measurements. Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: March 31, 2024 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Collateral-dependent loans $ — $ — $ 5,219 $ 5,219 Repossessed assets — — 317 317 Loan servicing rights — — 1,282 1,282 December 31, 2023 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Collateral-dependent loans $ — $ — $ 4,917 $ 4,917 Repossessed assets — — 247 247 Loan servicing rights — — 1,356 1,356 Collateral-dependent loans were written down to the fair value of their underlying collateral less costs to sell of $5.2 million and $4.9 million at March 31, 2024 and December 31, 2023, respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value of the underlying collateral of individually evaluated loans. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value. These techniques included observable inputs for the collateral dependent loans being evaluated, such as current appraisals, recent sales of similar assets, or other observable market data, and unobservable inputs, typically when discounts are applied to appraisal values to adjust such values to current market conditions or to reflect net realizable values. The quantification of unobservable inputs for Level 3 individually evaluated loan values range from 10% - 100% as of the measurement date of March 31, 2024. The weighted average of those unobservable inputs was 51%. The majority of the individually evaluated loans are considered collateral dependent loans or are supported by an SBA guaranty. Repossessed assets, upon initial recognition, are remeasured and reported at fair value through a charge-off to the allowance for credit losses, if deemed necessary, based upon the fair value of the repossessed asset. The fair value of a repossessed asset, upon initial recognition, is estimated using a market approach or based on observable market data, such as a current appraisal, recent sale price of similar assets, or based upon assumptions specific to the individual property or equipment, such as management applied discounts used to further reduce values to a net realizable value when observable inputs become stale. Loan servicing rights represent the asset retained upon sale of the guaranteed portion of certain SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. The servicing rights are subsequently measured using the amortization method, which requires amortization into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. Loan servicing rights do not trade in an active, open market with readily observable prices. While sales of loan servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its loan servicing rights. The valuation model incorporates prepayment assumptions to project loan servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the loan servicing rights. The valuation model considers portfolio characteristics of the underlying serviced portion of the SBA loans and uses the following significant unobservable inputs: (1) constant prepayment rate (“CPR”) assumptions based on the SBA sold pools historical CPR as quoted in Bloomberg and (2) a discount rate. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the fair value hierarchy. Fair Value of Financial Instruments The Corporation is required to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: March 31, 2024 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 72,040 $ 72,040 $ 72,040 $ — $ — Securities available-for-sale 314,114 314,114 — 314,114 — Securities held-to-maturity 8,131 7,848 — 7,848 — Loans held for sale 4,855 5,244 — 5,244 — Loans and lease receivables, net 2,878,065 2,848,940 — — 2,848,940 Federal Home Loan Bank stock 13,326 N/A N/A N/A N/A Accrued interest receivable 13,650 13,650 13,650 — — Interest rate swaps 69,703 69,703 — 69,703 — Financial liabilities: Deposits 2,755,406 2,754,078 2,081,814 672,264 — Federal Home Loan Bank advances and other borrowings 381,718 370,486 — 370,486 — Accrued interest payable 10,809 10,809 10,809 — — Interest rate swaps 61,133 61,133 — 61,133 — Off-balance sheet items: Standby letters of credit 162 162 — — 162 N/A = The fair value is not applicable due to restrictions placed on transferability December 31, 2023 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 139,510 $ 139,510 $ 139,510 $ — $ — Securities available-for-sale 297,006 297,006 — 297,006 — Securities held-to-maturity 8,503 8,255 — 8,255 — Loans held for sale 4,589 4,956 — 4,956 — Loans and lease receivables, net 2,818,986 2,789,731 — — 2,789,731 Federal Home Loan Bank stock 12,042 N/A N/A N/A N/A Accrued interest receivable 13,275 13,275 13,275 — — Interest rate swaps 55,597 55,597 — 55,597 — Financial liabilities: Deposits 2,796,779 2,795,463 2,101,939 693,524 — Federal Home Loan Bank advances and other borrowings 330,916 320,287 — 320,287 — Accrued interest payable 10,860 10,860 10,860 — — Interest rate swaps 51,949 51,949 — 51,949 — Off-balance sheet items: Standby letters of credit 190 190 — — 190 N/A = The fair value is not applicable due to restrictions placed on transferability Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the unaudited Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information, and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. Loans Held for Sale: Loans held for sale, which consist of the guaranteed portions of SBA 7(a) loans, are carried at the lower of cost or estimated fair value. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds, and guarantees. As of March 31, 2024 and December 31, 2023, the credit valuation allowance was $117,000. The Corporation receives fixed rates and pays floating rates based upon designated benchmark interest rates used on the swaps with commercial borrowers. Commercial borrower swaps are completed independently with each borrower and are not subject to master netting arrangements. The Corporation pays fixed rates and receives floating rates based upon designated benchmark interest rates used on the swaps with dealer counterparties. Dealer counterparty swaps are subject to master netting agreements among the contracts within our Bank and are reported on the unaudited Consolidated Balance Sheet. The gross amount of dealer counterparty swaps, without regard to the enforceable master netting agreement, was a gross derivative asset of $61.1 million and gross derivative liability of $2.8 million as of March 31, 2024. No right of offset existed with the dealer counterparty swaps as of March 31, 2024. All changes in fair value of these instruments are recorded in other non-interest income. Given the mirror-image terms of the outstanding derivative portfolio, the change in fair value for the three months ended March 31, 2024 and 2023 had an insignificant impact on the unaudited Consolidated Statements of Income. The Corporation also enters into interest rate swaps to manage interest rate risk and reduce the cost of match-funding certain long-term fixed rate loans. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for the Corporation making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The instruments are designated as cash flow hedges as the receipt of floating rate interest from the counterparty is used to manage interest rate risk related to cash outflows attributable to future wholesale deposit or short-term FHLB advance borrowings. The change in the fair value of these hedging instruments is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transactions affect earnings. A pre-tax unrealized gain of $4.8 million was recognized in other comprehensive income for the three months ended March 31, 2024 and there were no ineffective portions of the hedges. A pre-tax unrealized loss of $1.4 million was recognized in other comprehensive income for the three months ended March 31, 2023 and there were no ineffective portions of the hedges. The Corporation also enters into interest rate swaps to mitigate market value volatility on certain long-term fixed securities. The objective of the hedge is to protect the Corporation against changes in fair value due to changes in benchmark interest rates. The instruments are designated as fair value hedges as the changes in the fair value of the interest rate swap are expected to offset changes in the fair value of the hedged item attributable to changes in the SOFR swap rate, the designated benchmark interest rate. These derivative contracts involve the receipt of floating rate interest from a counterparty in exchange for the Corporation making fixed-rate payments over the life of the agreement, without the exchange of the underlying notional value. The change in the fair value of these hedging instruments is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transactions affect earnings. A pre-tax unrealized gain of $140,000 was recognized in other comprehensive income for the three months ended March 31, 2024 and there was no ineffective portion of these hedges. A pre-tax unrealized loss of $175,000 was recognized in other comprehensive income for the three months ended March 31, 2023 and there was no ineffective portion of these hedges. As of March 31, 2024 Number of Instruments Notional Amount Weighted Average Maturity (In Years) Fair Value (Dollars in Thousands) Included in Derivative assets Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 18 $ 143,915 6.28 $ 2,759 Interest rate swap agreements on loans with third-party counterparties 104 $ 938,679 5.77 $ 58,374 Derivatives designated as hedging instruments Interest rate swap related to AFS securities 11 $ 12,500 8.03 $ 765 Interest rate swap related to wholesale funding 37 394,655 3.40 7,805 Included in Derivative liabilities Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 86 $ 794,764 5.68 $ 61,133 As of December 31, 2023 Number of Instruments Notional Amount Weighted Average Maturity (In Years) Fair Value (Dollars in Thousands) Included in Derivative assets Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 25 $ 249,454 6.33 $ 7,904 Interest rate swap agreements on loans with third-party counter parties 106 939,156 6.06 43,234 Derivatives designated as hedging instruments Interest rate swap related to AFS securities 11 $ 12,500 8.28 $ 624 Interest rate swap related to wholesale funding 9 96,400 2.47 3,835 Included in Derivative liabilities Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 81 $ 689,702 5.96 $ 51,138 Derivatives designated as hedging instruments Interest rate swap related to wholesale funding 29 $ 306,255 3.89 $ 811 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2024 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital | Regulatory Capital The Corporation and the Bank are subject to various regulatory capital requirements administered by Federal and Wisconsin banking agencies. Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory practices. The Corporation’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. The Corporation regularly reviews and updates, when appropriate, its Capital and Liquidity Action Plans, which is designed to help ensure appropriate capital adequacy, to plan for future capital needs, and to ensure that the Corporation serves as a source of financial strength to the Bank. The Corporation’s and the Bank’s Board and management teams adhere to the appropriate regulatory guidelines on decisions which affect their respective capital positions, including but not limited to, decisions relating to the payment of dividends and increasing indebtedness. As a bank holding company, the Corporation’s ability to pay dividends is affected by the policies and enforcement powers of the Board of Governors of the Federal Reserve system (the “Federal Reserve”). Federal Reserve guidance urges financial institutions to strongly consider eliminating, deferring, or significantly reducing dividends if: (i) net income available to common shareholders for the past four quarters, net of dividends previously paid during that period, is not sufficient to fully fund the dividend; (ii) the prospective rate of earnings retention is not consistent with the bank holding company’s capital needs and overall current and prospective financial condition; or (iii) the bank holding company will not meet, or is in danger of not meeting, its minimum regulatory capital ratios. Management intends, when appropriate under regulatory guidelines, to consult with the Federal Reserve Bank (“FRB”) of Chicago and provide it with information on the Corporation’s then-current and prospective earnings and capital position in advance of declaring any cash dividends. As a Wisconsin corporation, the Corporation is subject to the limitations of the Wisconsin Business Corporation Law, which prohibit the Corporation from paying dividends if such payment would: (i) render the Corporation unable to pay its debts as they become due in the usual course of business, or (ii) result in the Corporation’s assets being less than the sum of its total liabilities plus the amount needed to satisfy the preferential rights upon dissolution of any shareholders with preferential rights superior to those shareholders receiving the dividend. The Bank is also subject to certain legal, regulatory, and other restrictions on their ability to pay dividends to the Corporation. As a bank holding company, the payment of dividends by the Bank to the Corporation is one of the sources of funds the Corporation could use to pay dividends, if any, in the future and to make other payments. Future dividend decisions by the Bank and the Corporation will continue to be subject to compliance with various legal, regulatory, and other restrictions as defined from time to time. Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios of Total Common Equity Tier 1 and Tier 1 capital to risk-weighted assets and of Tier 1 capital to adjusted total assets. These risk-based capital requirements presently address credit risk related to both recorded and off-balance sheet commitments and obligations. As of March 31, 2024, the Corporation’s capital levels exceeded the regulatory minimums and the Bank’s capital levels remained characterized as well capitalized under the regulatory framework. The following tables summarize both the Corporation’s and the Bank’s capital ratios and the ratios required by their federal regulators: As of March 31, 2024 Actual (1) Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital Consolidated $ 384,083 11.36 % $ 270,485 8.00 % $ 355,011 10.50 % N/A N/A First Business Bank 384,542 11.37 270,553 8.00 355,101 10.50 $ 338,191 10.00 % Tier 1 capital Consolidated $ 299,707 8.86 % $ 202,864 6.00 % $ 287,390 8.50 % N/A N/A First Business Bank 349,624 10.34 202,915 6.00 287,462 8.50 $ 270,553 8.00 % Common equity tier 1 capital Consolidated $ 287,715 8.51 % $ 152,148 4.50 % $ 236,674 7.00 % N/A N/A First Business Bank 349,624 10.34 152,186 4.50 236,734 7.00 $ 219,824 6.50 % Tier 1 leverage capital Consolidated $ 299,707 8.45 % $ 141,847 4.00 % $ 141,847 4.00 % N/A N/A First Business Bank 349,624 9.86 141,889 4.00 141,889 4.00 $ 177,361 5.00 % As of December 31, 2023 Actual (1) Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital Consolidated $ 375,440 11.19 % $ 268,500 8.00 % $ 352,406 10.50 % N/A N/A First Business Bank 376,310 11.21 268,595 8.00 352,531 10.50 $ 335,744 10.00 % Tier 1 capital Consolidated $ 293,338 8.74 % $ 201,375 6.00 % $ 285,281 8.50 % N/A N/A First Business Bank 343,604 10.23 201,446 6.00 285,382 8.50 $ 268,595 8.00 % Common equity tier 1 capital Consolidated $ 281,346 8.38 % $ 151,031 4.50 % $ 234,937 7.00 % N/A N/A First Business Bank 343,604 10.23 151,085 4.50 235,021 7.00 $ 218,233 6.50 % Tier 1 leverage capital Consolidated $ 293,338 8.43 % $ 139,145 4.00 % $ 139,145 4.00 % N/A N/A First Business Bank 343,604 9.87 139,262 4.00 139,262 4.00 $ 174,077 5.00 % |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | The unaudited Consolidated Financial Statements include the accounts of the Corporation and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Management of the Corporation is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that could significantly change in the near-term include the value of securities and interest rate swaps, level of the allowance for credit losses, lease residuals, property under operating leases, goodwill, and income taxes. |
Reclassification | Certain amounts in prior periods may have been reclassified to conform to the current presentation. |
Subsequent Events | Subsequent events have been evaluated through the date of the issuance of the unaudited Consolidated Financial Statements. No significant subsequent events have occurred through this date requiring adjustment to the financial statements or disclosures. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2023, the Financial Accounting Standards Board issued Accounting Standards Update No. 2023-02 “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force).” The amendments in this Update permit reporting entities to elect to account for their tax equity investments, regardless of the program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. A reporting entity may make an accounting policy election to apply the proportional amortization method on a tax-credit-program-by-tax-credit-program basis rather than electing to apply the proportional amortization method at the reporting entity level or to individual investments. The ASU is effective for annual and interim periods beginning after December 15, 2023. The Corporation adopted the standard effective January 1, 2024. The implementation did not have a material effect on the Consolidated Financial Statements. In October 2023, the FASB issued ASU No. 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.” This update is intended to improve the relevance and usefulness of financial information for investors and other users by incorporating certain SEC disclosure requirements into the FASB Accounting Standards Codification. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. The adoption of this standard did not have a material effect on the Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures.” This update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024. The Corporation is assessing the impact of the standard. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This update enhances the transparency and decision usefulness of income tax disclosures by providing better information regarding exposure to potential changes in jurisdictional tax legislation and related forecasting and cash flow opportunities. This update is effective for fiscal years beginning after December 15, 2024. The Corporation is assessing the impact of the standard. |
Earnings Per Common Share (Poli
Earnings Per Common Share (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per common share are computed using the two-class method. Basic earnings per common share are computed by dividing net income allocated to common shares by the weighted-average number of shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include unvested restricted shares. Unvested restricted shares are considered participating securities because holders of these securities receive non-forfeitable dividends, or dividend equivalents, at the same rate as holders of the Corporation’s common stock. Diluted earnings per share are computed by dividing net income allocated to common shares adjusted for reallocation of undistributed earnings of unvested restricted shares by the weighted average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents using the treasury stock method. |
Share-Based Compensation (Polic
Share-Based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation, Option and Incentive Plans | The Corporation initially adopted the 2019 Equity Incentive Plan (the “Plan”) during the quarter ended June 30, 2019. The Plan is administered by the Compensation Committee of the Board of Directors (the “Board”) of the Corporation and provides for the grant of equity ownership opportunities through incentive stock options and nonqualified stock options, restricted stock, restricted stock units, dividend equivalent units, and any other type of award permitted by the Plan. As of March 31, 2024, 274,242 shares were available for future grants under the Plan, as amended. Shares covered by awards that expire, terminate, or lapse will again be available for the grant of awards under the Plan. Restricted Stock Under the Plan, the Corporation may grant restricted stock awards (“RSA”), restricted stock units (“RSU”), and other stock-based awards to plan participants, subject to forfeiture upon the occurrence of certain events until the dates specified in the participant’s award agreement. While restricted stock is subject to forfeiture, RSA participants may exercise full voting rights and will receive all dividends and other distributions paid with respect to the restricted shares. RSUs do not have voting rights. RSUs granted prior to 2023 are provided dividend equivalents concurrent with dividends paid to shareholders while RSUs granted in 2023 and after will accrue dividend equivalents payable upon vesting. The restricted stock granted under the Plan is typically subject to a vesting period. Compensation expense for restricted stock is recognized over the requisite service period of generally three or four years for the entire award on a straight-line basis. Upon vesting of restricted stock, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the unaudited Consolidated Statements of Income. The Corporation may also issue performance-based restricted stock units (“PRSU”). Vesting of the PRSU will be measured on the relative Total Shareholder Return (“TSR”) and relative Return on Average Equity (“ROAE”) for issuances prior to 2023 or Return on Average Common Equity (“ROACE”) for issuances after 2022, and will cliff-vest after a three-year measurement period based on the Corporation’s TSR performance and ROAE or ROACE performance compared to a broad peer group of over 100 banks. At the end of the performance period, the number of actual shares to be awarded varies between 0% and 200% of target amounts. The restricted stock awards and units issued to executive officers will vest ratably over a three-year period. Compensation expense is recognized for PRSU over the requisite service and performance period of generally three years for the entire expected award on a straight-line basis. The compensation expense for the awards expected to vest for the percentage of performance-based restricted stock units subject to the ROAE or ROACE metric will be adjusted if there is a change in the expectation of ROAE or ROACE. The compensation expense for the awards expected to vest for the percentage of PRSU subject to the TSR metric are never adjusted and are amortized utilizing the accounting fair value provided using a Monte Carlo pricing model. |
Loans, Lease Receivables, and_2
Loans, Lease Receivables, and Allowance for Credit Losses (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loans and Leases Receivable, Allowance for Credit Losses | The ACL is an estimate of the expected credit losses on financial assets measured at amortized cost, which is measured using relevant information about past events, including historical credit loss experience on financial assets with similar risk characteristics, current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the financial assets. A provision for credit losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors as discussed within Note 1 – Nature of Operations and Summary of Significant Accounting Policies included in the Corporation’s Form 10-K for the year ended December 31, 2023. Quantitative Considerations The ACL is primarily calculated utilizing a discounted cash flow (“DCF”) model. Key inputs and assumptions used in this model are discussed below: • Forecast model - For each portfolio segment, a loss driver analysis (“LDA”) was performed in order to identify appropriate loss drivers and create a regression model for use in forecasting cash flows. The LDA analysis utilized peer FFIEC Call Report data for all pools. The Corporation plans to update the LDA annually. • Probability of default – PD is the probability that an asset will be in default within a given time frame. The Corporation has defined default as when a charge-off has occurred, a loan goes to non-accrual status, or a loan is greater than 90 days past due. The forecast model is utilized to estimate PDs. • Loss given default – LGD is the percentage of the asset not expected to be collected due to default. The LGD is derived from using a method referred to as Frye Jacobs which uses industry data. • Prepayments and curtailments – Prepayments and curtailments are calculated based on the Corporation’s own data. This analysis is updated semi-annually. • Forecast and reversion – the Corporation has established a one-year reasonable and supportable forecast period with a one-year straight line reversion to the long-term historical average. • Economic forecast – the Corporation utilizes a third party to provide economic forecasts under various scenarios, which are assessed against economic indicators and management’s observations in the market. As of December 31, 2023, the Corporation selected a forecast which estimates unemployment between 3.89% and 4.04% and GDP growth change between 1.29% and 2.32% over the next four quarters. As of March 31, 2024, the Corporation selected a forecast which estimates unemployment between 3.96% and 4.10% and GDP growth change between 1.43% and 2.99% over the next four quarters. Following the forecast period, the model reverts to long-term averages over four quarters. Management believes that the resulting quantitative reserve appropriately balances economic indicators with identified risks. Qualitative Considerations In addition to the quantitative model, management considers the need for qualitative adjustment for risks not considered in the DCF. Factors that are considered by management in determining loan collectability and the appropriate level of the ACL are listed below: • The Corporation’s lending policies and procedures, including changes in lending strategies, underwriting standards and practices for collections, write-offs, and recoveries; • Actual and expected changes in international, national, regional, and local economic and business conditions and developments in which the Corporation operates that affect the collectability of financial assets; • The experience, ability, and depth of the Corporation’s lending, investment, collection, and other relevant management and staff; • The volume of past due financial assets, the volume of non-performing assets, and the volume and severity of adversely classified or graded assets; • The existence and effect of industry concentrations of credit; • The nature and volume of the portfolio segment or class; • The quality of the Corporation’s credit review function; and • The effect of other external factors such as the regulatory, legal and technological environments, competition, and events such as natural disasters or pandemics. |
Fair Value Disclosures (Policie
Fair Value Disclosures (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The Corporation determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received in an orderly transaction that is not a forced liquidation or distressed sale at the measurement date and is based on exit prices. Fair value includes assumptions about risk, such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. The standard describes three levels of inputs that may be used to measure fair value. Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 — Level 2 inputs are inputs, other than quoted prices included with Level 1, that are observable for the asset or liability either directly or indirectly, 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 for substantially the full term of the assets or liabilities. Level 3 — Level 3 inputs are supported by little or no market activity and are significant to the fair value of the assets or liabilities. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Collateral-dependent loans were written down to the fair value of their underlying collateral less costs to sell of $5.2 million and $4.9 million at March 31, 2024 and December 31, 2023, respectively, through the establishment of specific reserves or by recording charge-offs when the carrying value exceeded the fair value of the underlying collateral of individually evaluated loans. Valuation techniques consistent with the market approach, income approach, or cost approach were used to measure fair value. These techniques included observable inputs for the collateral dependent loans being evaluated, such as current appraisals, recent sales of similar assets, or other observable market data, and unobservable inputs, typically when discounts are applied to appraisal values to adjust such values to current market conditions or to reflect net realizable values. The quantification of unobservable inputs for Level 3 individually evaluated loan values range from 10% - 100% as of the measurement date of March 31, 2024. The weighted average of those unobservable inputs was 51%. The majority of the individually evaluated loans are considered collateral dependent loans or are supported by an SBA guaranty. Repossessed assets, upon initial recognition, are remeasured and reported at fair value through a charge-off to the allowance for credit losses, if deemed necessary, based upon the fair value of the repossessed asset. The fair value of a repossessed asset, upon initial recognition, is estimated using a market approach or based on observable market data, such as a current appraisal, recent sale price of similar assets, or based upon assumptions specific to the individual property or equipment, such as management applied discounts used to further reduce values to a net realizable value when observable inputs become stale. Loan servicing rights represent the asset retained upon sale of the guaranteed portion of certain SBA loans. When SBA loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. The servicing rights are subsequently measured using the amortization method, which requires amortization into interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The Corporation periodically reviews this portfolio for impairment and engages a third-party valuation firm to assess the fair value of the overall servicing rights portfolio. Loan servicing rights do not trade in an active, open market with readily observable prices. While sales of loan servicing rights do occur, the precise terms and conditions typically are not readily available to allow for a “quoted price for similar assets” comparison. Accordingly, the Corporation utilizes an independent valuation from a third party which uses a discounted cash flow model to estimate the fair value of its loan servicing rights. The valuation model incorporates prepayment assumptions to project loan servicing rights cash flows based on the current interest rate scenario, which is then discounted to estimate an expected fair value of the loan servicing rights. The valuation model considers portfolio characteristics of the underlying serviced portion of the SBA loans and uses the following significant unobservable inputs: (1) constant prepayment rate (“CPR”) assumptions based on the SBA sold pools historical CPR as quoted in Bloomberg and (2) a discount rate. Due to the nature of the valuation inputs, loan servicing rights are classified in Level 3 of the fair value hierarchy. |
Fair Value Measurement | Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the unaudited Consolidated Balance Sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Corporation. Securities: The fair value measurements of investment securities are determined by a third-party pricing service which considers observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, credit information, and the securities’ terms and conditions, among other things. The fair value measurements are subject to independent verification by another pricing source on a quarterly basis to review for reasonableness. Any significant differences in pricing are reviewed with appropriate members of management who have the relevant technical expertise to assess the results. The Corporation has determined that these valuations are classified in Level 2 of the fair value hierarchy. When the independent pricing service does not provide a fair value measurement for a particular security, the Corporation will estimate the fair value based on specific information about each security. Fair values derived in this manner are classified in Level 3 of the fair value hierarchy. Loans Held for Sale: Loans held for sale, which consist of the guaranteed portions of SBA 7(a) loans, are carried at the lower of cost or estimated fair value. The estimated fair value is based on what secondary markets are currently offering for portfolios with similar characteristics. Interest Rate Swaps: The carrying amount and fair value of existing derivative financial instruments are based upon independent valuation models, which use widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative contract. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Corporation considers the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Limitations: Fair value estimates are made at a discrete point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holding of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and are not considered in the estimates. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | The Corporation offers interest rate swap products directly to qualified commercial borrowers. The Corporation economically hedges client derivative transactions by entering into offsetting interest rate swap contracts executed with a third party. Derivative transactions executed as part of this program are not considered hedging instruments and are marked-to-market through earnings each period. The derivative contracts have mirror-image terms, which results in the positions’ changes in fair value offsetting through earnings each period. The credit risk and risk of non-performance embedded in the fair value calculations is different between the dealer counterparties and the commercial borrowers which may result in a difference in the changes in the fair value of the mirror-image swaps. The Corporation incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the counterparty’s risk in the fair value measurements. When evaluating the fair value of its derivative contracts for the effects of non-performance and credit risk, the Corporation considered the impact of netting and any applicable credit enhancements such as collateral postings, thresholds, and guarantees. As of March 31, 2024 and December 31, 2023, the credit valuation allowance was $117,000. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended March 31, 2024 2023 (Dollars in Thousands, Except Share Data) Basic earnings per common share Net income $ 8,848 $ 8,979 Less: preferred stock dividends 219 219 Less: earnings allocated to participating securities 214 238 Basic earnings allocated to common shareholders $ 8,415 $ 8,522 Weighted-average common shares outstanding, excluding participating securities 8,125,319 8,148,525 Basic earnings per common share $ 1.04 $ 1.05 Diluted earnings per common share Earnings allocated to common shareholders, diluted $ 8,415 $ 8,522 Weighted-average diluted common shares outstanding, excluding participating securities 8,125,319 8,148,525 Diluted earnings per common share $ 1.04 $ 1.05 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Activity | Restricted stock activity for the year ended December 31, 2023 and the three months ended March 31, 2024 was as follows: RSA Weighted Average Grant Price PRSU Weighted Average Grant Price RSU Weighted Average Grant Price Total Weighted Average Grant Price Nonvested balance as of December 31, 2022 133,317 $ 27.95 57,435 $ 32.89 6,105 $ 25.92 196,857 $ 29.32 Granted (1) — — 34,840 35.79 54,955 34.43 89,795 34.96 Vested (56,931) 27.03 (36,120) 31.31 (3,253) 26.06 (96,304) 28.60 Forfeited (4,435) 30.20 — — (820) 36.42 (5,255) 31.17 Nonvested balance as of December 31, 2023 71,951 28.53 56,155 35.70 56,987 33.97 185,093 32.38 Granted (1) — — 17,025 42.89 46,025 36.08 63,050 32.78 Vested (32,211) 26.87 — — (13,264) 34.47 (45,475) 29.09 Forfeited (5,085) 30.33 — — (3,875) 36.30 (8,960) 32.91 Nonvested balance as of March 31, 2024 34,655 $ 29.81 73,180 $ 37.37 85,873 $ 34.92 193,708 $ 34.93 Unrecognized compensation cost (in thousands) $ 911 $ 1,559 $ 2,709 $ 5,179 Weighted average remaining recognition period (in years) 1.59 2.15 3.20 2.60 (1) |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Share-based compensation expense related to restricted stock and ESPP included in the unaudited Consolidated Statements of Income was as follows: For the Three Months Ended March 31, 2024 2023 (In Thousands) Share-based compensation expense $ 665 $ 634 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The amortized cost and fair value of securities available-for-sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: As of March 31, 2024 Amortized Cost Gross Gross Fair Value (In Thousands) Available-for-sale: U.S. treasuries $ 14,239 $ — $ (410) 13,829 U.S. government agency securities - government-sponsored enterprises 15,901 — (463) 15,438 Municipal securities 40,304 — (5,007) 35,297 Residential mortgage-backed securities - government issued 105,331 409 (2,871) 102,869 Residential mortgage-backed securities - government-sponsored enterprises 127,841 145 (11,754) 116,232 Commercial mortgage-backed securities - government issued 2,823 — (469) 2,354 Commercial mortgage-backed securities - government-sponsored enterprises 32,603 44 (4,552) 28,095 $ 339,042 $ 598 $ (25,526) $ 314,114 As of December 31, 2023 Amortized Cost Gross Gross Fair Value (In Thousands) Available-for-sale: U.S. treasuries $ 14,158 $ 7 $ (389) $ 13,776 U.S. government agency securities - government-sponsored enterprises 27,986 35 (455) 27,566 Municipal securities 40,407 — (4,526) 35,881 Residential mortgage-backed securities - government issued 69,441 1,000 (2,385) 68,056 Residential mortgage-backed securities - government-sponsored enterprises 131,321 281 (10,769) 120,833 Commercial mortgage-backed securities - government issued 2,995 — (470) 2,525 Commercial mortgage-backed securities - government-sponsored enterprises 32,774 65 (4,470) 28,369 $ 319,082 $ 1,388 $ (23,464) $ 297,006 |
Schedule of Held-to-maturity Securities | The amortized cost and fair value of securities held-to-maturity and the corresponding amounts of gross unrecognized gains and losses were as follows: As of March 31, 2024 Amortized Cost Gross Gross Fair Value (In Thousands) Held-to-maturity: Municipal securities $ 4,017 $ — $ (57) $ 3,960 Residential mortgage-backed securities - government issued 1,114 — (73) 1,041 Residential mortgage-backed securities - government-sponsored enterprises 996 — (57) 939 Commercial mortgage-backed securities - government-sponsored enterprises 2,004 — (96) 1,908 $ 8,131 $ — $ (283) $ 7,848 As of December 31, 2023 Amortized Cost Gross Gross Fair Value (In Thousands) Held-to-maturity: Municipal securities $ 4,210 $ 4 $ (41) $ 4,173 Residential mortgage-backed securities - government issued 1,211 — (76) 1,135 Residential mortgage-backed securities - government-sponsored enterprises 1,078 — (53) 1,025 Commercial mortgage-backed securities - government-sponsored enterprises 2,004 — (82) 1,922 $ 8,503 $ 4 $ (252) $ 8,255 |
Investments Classified by Contractual Maturity | The amortized cost and fair value of securities by contractual maturity at March 31, 2024 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ 18,655 $ 18,645 $ 870 $ 870 Due in one year through five years 19,674 18,259 3,147 3,090 Due in five through ten years 10,553 9,736 — — Due in over ten years 21,562 17,924 — — 70,444 64,564 4,017 3,960 Residential mortgage-backed securities 233,172 219,101 2,110 1,980 Commercial mortgage-backed securities 35,426 30,449 2,004 1,908 $ 339,042 $ 314,114 $ 8,131 $ 7,848 |
Schedule of Unrealized Loss on Investments | A summary of unrealized loss information for securities available-for-sale, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of March 31, 2024 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (In Thousands) Available-for-sale: U.S. treasuries $ 9,252 $ 3 $ 4,577 $ 407 $ 13,829 $ 410 U.S. government agency securities - government-sponsored enterprises 10,381 20 5,057 443 15,438 463 Municipal securities — — 35,297 5,007 35,297 5,007 Residential mortgage-backed securities - government issued 37,001 409 17,270 2,462 54,271 2,871 Residential mortgage-backed securities - government-sponsored enterprises 20,280 331 86,461 11,423 106,741 11,754 Commercial mortgage-backed securities - government issued — — 2,354 469 2,354 469 Commercial mortgage-backed securities - government-sponsored enterprises — — 27,102 4,552 27,102 4,552 $ 76,914 $ 763 $ 178,118 $ 24,763 $ 255,032 $ 25,526 As of December 31, 2023 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (In Thousands) Available-for-sale: U.S. treasuries $ — $ — $ 4,595 $ 389 $ 4,595 $ 389 U.S. government agency securities - government-sponsored enterprises 13,370 30 3,076 425 16,446 455 Municipal securities — — 35,881 4,526 35,881 4,526 Residential mortgage-backed securities - government issued 13,178 160 13,819 2,225 26,997 2,385 Residential mortgage-backed securities - government-sponsored enterprises 19,925 285 78,086 10,484 98,011 10,769 Commercial mortgage-backed securities - government issued — — 2,525 470 2,525 470 Commercial mortgage-backed securities - government-sponsored enterprises 893 20 26,465 4,450 27,358 4,470 $ 47,366 $ 495 $ 164,447 $ 22,969 $ 211,813 $ 23,464 A summary of unrecognized loss information for securities held-to-maturity, categorized by security type and length of time for which the security has been in a continuous unrealized loss position, follows: As of March 31, 2024 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Fair Value Unrecognized Fair Value Unrecognized (In Thousands) Held-to-maturity: Municipal securities $ 1,655 $ 12 $ 1,765 $ 45 $ 3,420 $ 57 Residential mortgage-backed securities - government issued — — 1,041 73 1,041 73 Residential mortgage-backed securities - government-sponsored enterprises — — 939 57 939 57 Commercial mortgage-backed securities - government-sponsored enterprises — — 1,908 96 1,908 96 $ 1,655 $ 12 $ 5,653 $ 271 $ 7,308 $ 283 As of December 31, 2023 Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Fair Value Unrecognized Fair Value Unrecognized (In Thousands) Held-to-maturity: Municipal securities $ 1,424 $ 4 $ 2,234 $ 37 $ 3,658 $ 41 Residential mortgage-backed securities - government issued — — 1,135 76 1,135 76 Residential mortgage-backed securities - government-sponsored enterprises — — 1,025 53 1,025 53 Commercial mortgage-backed securities - government-sponsored enterprises — — 1,922 82 1,922 82 $ 1,424 $ 4 $ 6,316 $ 248 $ 7,740 $ 252 |
Loans, Lease Receivables, and_3
Loans, Lease Receivables, and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loan Composition Schedule | Loan and lease receivables consist of the following: March 31, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 263,748 $ 256,479 Commercial real estate — non-owner occupied 792,858 773,494 Construction 202,382 193,080 Multi-family 453,321 450,529 1-4 family 27,482 26,289 Total commercial real estate 1,739,791 1,699,871 Commercial and industrial 1,120,779 1,105,835 Consumer and other 50,020 44,312 Total gross loans and leases receivable 2,910,590 2,850,018 Less: Allowance for loan losses 32,799 31,275 Deferred loan fees and costs, net (274) (243) Loans and leases receivable, net $ 2,878,065 $ 2,818,986 |
Financing Receivable by Credit Quality Indicators | The following table illustrates ending balances of the Corporation’s loan and lease portfolio, including non-performing loans by class of receivable, and considering certain credit quality indicators: March 31, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate — owner occupied Category I $ 4,587 $ 39,361 $ 46,629 $ 38,100 $ 44,415 $ 88,783 $ 1,118 $ 262,993 II — — — — — 303 — 303 III — — — — — 452 — 452 IV — — — — — — — — Total $ 4,587 $ 39,361 $ 46,629 $ 38,100 $ 44,415 $ 89,538 $ 1,118 $ 263,748 Commercial real estate — non-owner occupied Category I $ 14,263 $ 71,834 $ 76,485 $ 72,049 $ 87,338 $ 368,191 $ 34,705 $ 724,865 II — — — 2,289 2,227 43,867 — 48,383 III — 680 — — — 18,930 — 19,610 IV — — — — — — — — Total $ 14,263 $ 72,514 $ 76,485 $ 74,338 $ 89,565 $ 430,988 $ 34,705 $ 792,858 Construction Category I $ 10,982 $ 85,216 $ 64,039 $ 8,845 $ 739 $ 6,148 $ 10,688 $ 186,657 II — — — — — — — — III — — 454 9,289 5,713 269 — 15,725 IV — — — — — — — — Total $ 10,982 $ 85,216 $ 64,493 $ 18,134 $ 6,452 $ 6,417 $ 10,688 $ 202,382 Multi-family Category I $ 19,964 $ 77,049 $ 42,927 $ 69,755 $ 103,163 $ 137,451 $ 3,012 $ 453,321 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 19,964 $ 77,049 $ 42,927 $ 69,755 $ 103,163 $ 137,451 $ 3,012 $ 453,321 1-4 family Category I $ 599 $ 4,231 $ 7,395 $ 2,642 $ 2,340 $ 3,004 $ 7,251 $ 27,462 II — — — — — — — — III — — — — — — — — IV — — — — — 20 — 20 Total $ 599 $ 4,231 $ 7,395 $ 2,642 $ 2,340 $ 3,024 $ 7,251 $ 27,482 March 31, 2024 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Category I $ 62,280 $ 281,217 $ 128,662 $ 76,007 $ 34,882 $ 41,167 $ 434,523 $ 1,058,738 II 4,161 1,778 5,952 839 255 264 5,287 18,536 III — 1,277 7,612 1,802 1,403 4,989 6,613 23,696 IV — 2,593 6,366 1,221 523 1,627 7,479 19,809 Total $ 66,441 $ 286,865 $ 148,592 $ 79,869 $ 37,063 $ 48,047 $ 453,902 $ 1,120,779 Consumer and other Category I $ 6,738 $ 5,873 $ 8,182 $ 3,068 $ 12,139 $ 5,989 $ 8,031 $ 50,020 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 6,738 $ 5,873 $ 8,182 $ 3,068 $ 12,139 $ 5,989 $ 8,031 $ 50,020 Total Loans Category I $ 119,413 $ 564,781 $ 374,319 $ 270,466 $ 285,016 $ 650,733 $ 499,328 $ 2,764,056 II 4,161 1,778 5,952 3,128 2,482 44,434 5,287 67,222 III — 1,957 8,066 11,091 7,116 24,640 6,613 59,483 IV — 2,593 6,366 1,221 523 1,647 7,479 $ 19,829 Total $ 123,574 $ 571,109 $ 394,703 $ 285,906 $ 295,137 $ 721,454 $ 518,707 $ 2,910,590 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate — owner occupied Category I $ 31,637 $ 43,156 $ 38,803 $ 44,704 $ 22,078 $ 72,774 $ 451 $ 253,603 II — — — 260 — — — 260 III — — — — — 2,616 — 2,616 IV — — — — — — — — Total $ 31,637 $ 43,156 $ 38,803 $ 44,964 $ 22,078 $ 75,390 $ 451 $ 256,479 Commercial real estate — non-owner occupied Category I $ 71,857 $ 76,689 $ 72,660 $ 78,212 $ 66,262 $ 314,970 $ 32,478 $ 713,128 II — — 2,302 2,252 19,838 16,274 — 40,666 III — — — — — 19,700 — 19,700 IV — — — — — — — — Total $ 71,857 $ 76,689 $ 74,962 $ 80,464 $ 86,100 $ 350,944 $ 32,478 $ 773,494 Construction Category I $ 63,660 $ 83,161 $ 8,542 $ 744 $ 433 $ 6,528 $ 15,011 $ 178,079 II — — 9,289 5,712 — — — 15,001 III — — — — — — — — IV — — — — — — — — Total $ 63,660 $ 83,161 $ 17,831 $ 6,456 $ 433 $ 6,528 $ 15,011 $ 193,080 Multi-family Category I $ 84,932 $ 41,068 $ 70,054 $ 113,294 $ 22,925 $ 115,243 $ 3,013 $ 450,529 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 84,932 $ 41,068 $ 70,054 $ 113,294 $ 22,925 $ 115,243 $ 3,013 $ 450,529 1-4 family Category I $ 4,242 $ 7,684 $ 2,672 $ 2,359 $ 443 $ 2,805 $ 6,062 $ 26,267 II — — — — — — — — III — — — — — — — — IV — — — — — 22 — 22 Total $ 4,242 $ 7,684 $ 2,672 $ 2,359 $ 443 $ 2,827 $ 6,062 $ 26,289 December 31, 2023 Term Loans Amortized Cost Basis by Origination Year (In Thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Category I $ 302,612 $ 144,167 $ 85,504 $ 38,164 $ 20,151 $ 26,490 $ 415,301 $ 1,032,389 II 1,496 5,280 785 353 94 219 5,706 13,933 III 1,093 7,168 1,882 5,919 3,861 3,957 15,058 38,938 IV 1,482 6,519 1,319 321 133 1,644 9,157 20,575 Total $ 306,683 $ 163,134 $ 89,490 $ 44,757 $ 24,239 $ 32,310 $ 445,222 $ 1,105,835 Consumer and other Category I $ 5,920 $ 8,786 $ 3,167 $ 12,193 $ 2,049 $ 3,485 $ 8,712 $ 44,312 II — — — — — — — — III — — — — — — — — IV — — — — — — — — Total $ 5,920 $ 8,786 $ 3,167 $ 12,193 $ 2,049 $ 3,485 $ 8,712 $ 44,312 Total Loans Category I $ 564,860 $ 404,711 $ 281,402 $ 289,670 $ 134,341 $ 542,295 $ 481,028 $ 2,698,307 II 1,496 5,280 12,376 8,577 19,932 16,493 5,706 69,860 III 1,093 7,168 1,882 5,919 3,861 26,273 15,058 61,254 IV 1,482 6,519 1,319 321 133 1,666 9,157 $ 20,597 Total $ 568,931 $ 423,678 $ 296,979 $ 304,487 $ 158,267 $ 586,727 $ 510,949 $ 2,850,018 |
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable was as follows: March 31, 2024 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Total loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 263,748 $ 263,748 Non-owner occupied — — — — 792,858 792,858 Construction — — — — 202,382 202,382 Multi-family — — — — 453,321 453,321 1-4 family — — — — 27,482 27,482 Commercial and industrial 2,071 480 16,745 19,296 1,101,483 1,120,779 Consumer and other — — — — 50,020 50,020 Total $ 2,071 $ 480 $ 16,745 $ 19,296 $ 2,891,294 $ 2,910,590 Percent of portfolio 0.07 % 0.02 % 0.57 % 0.66 % 99.34 % 100.00 % December 31, 2023 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Total loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 256,479 $ 256,479 Non-owner occupied — — — — 773,494 773,494 Construction — — — — 193,080 193,080 Multi-family — — — — 450,529 450,529 1-4 family — — — — 26,289 26,289 Commercial and industrial 3,430 1,041 18,347 22,818 1,083,017 1,105,835 Consumer and other — — — — 44,312 44,312 Total $ 3,430 $ 1,041 $ 18,347 $ 22,818 $ 2,827,200 $ 2,850,018 Percent of portfolio 0.12 % 0.04 % 0.64 % 0.80 % 99.20 % 100.00 % |
Schedule of Financing Receivables, Non-Performing Status | The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of: March 31, 2024 Non-accrual With No Allowance for Credit Loss Non-accrual With Allowance for Credit Loss Loans Past Due Over 89 Days Still Accruing (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ — $ — $ — Commercial real estate — non-owner occupied — — — Construction — — — Multi-family — — — 1-4 family 20 — — Total commercial real estate 20 — — Commercial and industrial 9,305 10,504 — Consumer and other — — — Total non-accrual loans and leases $ 9,325 $ 10,504 $ — December 31, 2023 Non-accrual With No Allowance for Credit Loss Non-accrual Loans Past Due Over 89 Days Still Accruing (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ — $ — $ — Commercial real estate — non-owner occupied — — — Construction — — — Multi-family — — — 1-4 family — 22 — Total commercial real estate — 22 — Commercial and industrial 9,690 10,885 — Consumer and other — — — Total non-accrual loans and leases $ 9,690 $ 10,907 $ — March 31, December 31, Total non-accrual loans and leases to gross loans and leases 0.68 % 0.72 % Allowance for credit losses to gross loans and leases 1.19 1.16 Allowance for credit losses to non-accrual loans and leases 174.64 160.21 |
Schedule of Collateral Dependent Loans | The following table presents the amortized cost basis of the non-accrual, collateral-dependent commercial and industrial loans as of: March 31, December 31, (In Thousands) Inventory $ 1,120 $ 8,879 Equipment 4,753 3,740 Real Estate 140 46 Accounts Receivable 6,359 278 Other 1,191 1,348 Total $ 13,563 $ 14,291 |
Allowance for Credit Losses by Portfolio Segment | A summary of the activity in the allowance for credit losses by portfolio segment is as follows: As of and for the Three Months Ended March 31, 2024 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer Total (In Thousands) Beginning balance $ 1,540 $ 5,636 $ 2,125 $ 3,571 $ 266 $ 19,408 $ 451 $ 32,997 Charge-offs — — — — — (899) (22) (921) Recoveries 1 — — — 110 116 — 227 Net recoveries (charge-offs) 1 — — — 110 (783) (22) (694) Provision for credit losses 35 566 412 28 (64) 1,289 60 2,326 Ending balance $ 1,576 $ 6,202 $ 2,537 $ 3,599 $ 312 $ 19,914 $ 489 $ 34,629 Components: Allowance for credit losses on loans 1,562 6,164 1,515 3,588 282 19,250 438 32,799 Allowance for credit losses on unfunded credit commitments 14 38 1,022 11 30 664 51 1,830 Total ACL $ 1,576 $ 6,202 $ 2,537 $ 3,599 $ 312 $ 19,914 $ 489 $ 34,629 As of and for the Three Months Ended March 31, 2023 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer and Other Total (In Thousands) Beginning balance $ 1,766 $ 5,108 $ 1,646 $ 2,634 $ 207 $ 12,403 $ 466 $ 24,230 Impact of adopting ASC 326 (204) (242) 796 (386) (45) 1,873 26 1,818 Charge-offs — — — — — (166) — (166) Recoveries — 1 — — — 95 11 107 Net recoveries (charge-offs) — 1 — — — (71) 11 (59) Provision for credit losses 94 99 (155) 653 59 700 111 1,561 Ending balance $ 1,656 $ 4,966 $ 2,287 $ 2,901 $ 221 $ 14,905 $ 614 $ 27,550 Components: Allowance for credit losses on loans $ 1,636 $ 4,915 $ 1,586 $ 2,892 $ 201 $ 14,348 $ 562 $ 26,140 Allowance for credit losses on unfunded credit commitments 20 51 701 9 20 557 52 1,410 Total ACL $ 1,656 $ 4,966 $ 2,287 $ 2,901 $ 221 $ 14,905 $ 614 $ 27,550 |
Allowance for Credit Losses and Balances by Type of Allowance Methodology | The following tables provide information regarding the allowance for credit losses and balances by type of allowance methodology. As of March 31, 2024 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer Total (In Thousands) Allowance for credit losses: Collectively evaluated for credit losses $ 1,562 $ 6,164 $ 1,515 $ 3,588 $ 282 $ 12,632 $ 438 $ 26,181 Individually evaluated for credit loss — — — — — 6,618 — 6,618 Total $ 1,562 $ 6,164 $ 1,515 $ 3,588 $ 282 $ 19,250 $ 438 $ 32,799 Loans and lease receivables: Collectively evaluated for credit losses $ 263,748 $ 792,858 $ 202,382 $ 453,321 $ 27,462 $ 1,100,970 $ 50,020 $ 2,890,761 Individually evaluated for credit loss — — — — 20 19,809 — 19,829 Total $ 263,748 $ 792,858 $ 202,382 $ 453,321 $ 27,482 $ 1,120,779 $ 50,020 $ 2,910,590 As of December 31, 2023 Owner Occupied Non-Owner Occupied Construction Multi-Family 1-4 Family Commercial Consumer Total (In Thousands) Allowance for credit losses: Collectively evaluated for credit losses $ 1,525 $ 5,596 $ 1,244 $ 3,562 $ 221 $ 12,743 $ 395 $ 25,286 Individually evaluated for credit loss — — — — 22 5,967 — 5,989 Total $ 1,525 $ 5,596 $ 1,244 $ 3,562 $ 243 $ 18,710 $ 395 $ 31,275 Loans and lease receivables: Collectively evaluated for credit losses $ 256,479 $ 773,494 $ 193,080 $ 450,529 $ 26,267 $ 1,085,260 $ 44,312 $ 2,829,421 Individually evaluated for credit loss — — — — 22 20,575 — 20,597 Total $ 256,479 $ 773,494 $ 193,080 $ 450,529 $ 26,289 $ 1,105,835 $ 44,312 $ 2,850,018 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease expense | The components of total lease expense were as follows: For the Three Months Ended March 31, 2024 2023 (In Thousands) Operating lease cost $ 357 $ 382 Short-term lease cost 37 63 Variable lease cost 141 150 Less: sublease income — (45) Total lease cost, net $ 535 $ 550 |
Operating Lease Quantitative Information | Quantitative information regarding the Corporation’s operating leases was as follows: March 31, 2024 December 31, 2023 Weighted-average remaining lease term (in years) 7.55 7.70 Weighted-average discount rate 3.66 % 3.61 % |
Operating Lease Maturity Analysis | The following maturity analysis shows the undiscounted cash flows due on the Corporation’s operating lease liabilities: (In Thousands) 2024 $ 1,139 2025 1,408 2026 1,400 2027 1,427 2028 1,113 Thereafter 3,600 Total undiscounted cash flows 10,087 Discount on cash flows (1,423) Total lease liability $ 8,664 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | A summary of accrued interest receivable and other assets was as follows: March 31, 2024 December 31, 2023 (In Thousands) Accrued interest receivable $ 13,650 $ 13,275 Net deferred tax asset 8,267 9,508 Investment in historic development entities 2,393 2,393 Investment in low-income housing development entities 31,471 33,303 Investment in limited partnerships 15,566 15,027 Prepaid expenses 5,309 4,269 Other assets 13,688 13,283 Total accrued interest receivable and other assets $ 90,344 $ 91,058 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
Deposits | The composition of deposits is shown below. Average balances represent year-to-date averages. March 31, 2024 December 31, 2023 Balance Average Average Rate Balance Average Average Rate (Dollars in Thousands) Non-interest-bearing transaction accounts $ 400,267 $ 443,416 — % $ 445,376 $ 453,930 — % Interest-bearing transaction accounts 818,080 862,896 3.92 895,319 689,500 3.44 Money market accounts 813,467 761,893 3.97 711,245 681,336 3.25 Certificates of deposit 266,029 278,248 4.61 287,131 273,387 4.10 Wholesale deposits 457,563 457,536 4.03 457,708 346,285 4.14 Total deposits $ 2,755,406 $ 2,803,989 3.40 $ 2,796,779 $ 2,444,438 2.92 |
Time deposits by maturity | A summary of annual maturities of core and wholesale certificates of deposit at March 31, 2024 is as follows: (In Thousands) Maturities during the year ended December 31, 2024 $ 494,093 2025 40,573 2026 50,383 2027 73,650 2028 12,821 Thereafter 2,072 $ 673,592 |
FHLB Advances, Other Borrowin_2
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The composition of borrowed funds is shown below. Average balances represent year-to-date averages. March 31, 2024 December 31, 2023 Balance Weighted Average Weighted Balance Weighted Average Weighted (Dollars in Thousands) Federal funds purchased $ — $ — — % $ — $ 3 5.37 % FHLB advances 332,250 287,307 2.39 281,500 351,990 2.52 Line of credit — — — — 38 7.26 Other borrowings 10 20 — 20 600 8.33 Subordinated notes and debentures 49,458 49,438 5.78 49,396 38,250 5.16 $ 381,718 $ 336,765 2.89 $ 330,916 $ 390,881 2.79 |
Schedule of Maturities of Long-term Debt | A summary of annual maturities of borrowings at March 31, 2024 is as follows: (In Thousands) Maturities during the year ended December 31, 2024 $ 160,810 2025 48,000 2026 65,000 2027 28,000 2028 10,450 Thereafter 69,458 $ 381,718 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of SBA Recourse Reserve | The summary of the activity in the SBA recourse reserve is as follows: As of and for the Three Months Ended March 31, 2024 2023 (In Thousands) Balance at the beginning of the period $ 955 $ 441 SBA recourse provision (benefit) 126 (18) Balance at the end of the period $ 1,081 $ 423 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy level, are summarized below: March 31, 2024 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. treasuries $ — $ 13,829 $ — $ 13,829 U.S. government agency securities - government-sponsored enterprises — 15,438 — 15,438 Municipal securities — 35,297 — 35,297 Residential mortgage-backed securities - government issued — 102,869 — 102,869 Residential mortgage-backed securities - government-sponsored enterprises — 116,232 — 116,232 Commercial mortgage-backed securities - government issued — 2,354 — 2,354 Commercial mortgage-backed securities - government-sponsored enterprises — 28,095 — 28,095 Interest rate swaps — 69,703 — 69,703 Liabilities: Interest rate swaps — 61,133 — 61,133 December 31, 2023 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Assets: Securities available-for-sale: U.S. treasuries $ — $ 13,776 $ — $ 13,776 U.S. government agency securities - government-sponsored enterprises — 27,566 — 27,566 Municipal securities — 35,881 — 35,881 Residential mortgage-backed securities - government issued — 68,056 — 68,056 Residential mortgage-backed securities - government-sponsored enterprises — 120,833 — 120,833 Commercial mortgage-backed securities - government issued — 2,525 — 2,525 Commercial mortgage-backed securities - government-sponsored enterprises — 28,369 — 28,369 Interest rate swaps — 55,597 — 55,597 Liabilities: Interest rate swaps — 51,949 — 51,949 |
Fair Value Measurements, Nonrecurring Basis | Assets and liabilities measured at fair value on a non-recurring basis, segregated by fair value hierarchy are summarized below: March 31, 2024 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Collateral-dependent loans $ — $ — $ 5,219 $ 5,219 Repossessed assets — — 317 317 Loan servicing rights — — 1,282 1,282 December 31, 2023 Fair Value Measurements Using Level 1 Level 2 Level 3 Total (In Thousands) Collateral-dependent loans $ — $ — $ 4,917 $ 4,917 Repossessed assets — — 247 247 Loan servicing rights — — 1,356 1,356 |
Fair Value, by Balance Sheet Grouping | Fair value estimates, methods, and assumptions, consistent with exit price concepts for fair value measurements, are set forth below: March 31, 2024 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 72,040 $ 72,040 $ 72,040 $ — $ — Securities available-for-sale 314,114 314,114 — 314,114 — Securities held-to-maturity 8,131 7,848 — 7,848 — Loans held for sale 4,855 5,244 — 5,244 — Loans and lease receivables, net 2,878,065 2,848,940 — — 2,848,940 Federal Home Loan Bank stock 13,326 N/A N/A N/A N/A Accrued interest receivable 13,650 13,650 13,650 — — Interest rate swaps 69,703 69,703 — 69,703 — Financial liabilities: Deposits 2,755,406 2,754,078 2,081,814 672,264 — Federal Home Loan Bank advances and other borrowings 381,718 370,486 — 370,486 — Accrued interest payable 10,809 10,809 10,809 — — Interest rate swaps 61,133 61,133 — 61,133 — Off-balance sheet items: Standby letters of credit 162 162 — — 162 N/A = The fair value is not applicable due to restrictions placed on transferability December 31, 2023 Carrying Fair Value Total Level 1 Level 2 Level 3 (In Thousands) Financial assets: Cash and cash equivalents $ 139,510 $ 139,510 $ 139,510 $ — $ — Securities available-for-sale 297,006 297,006 — 297,006 — Securities held-to-maturity 8,503 8,255 — 8,255 — Loans held for sale 4,589 4,956 — 4,956 — Loans and lease receivables, net 2,818,986 2,789,731 — — 2,789,731 Federal Home Loan Bank stock 12,042 N/A N/A N/A N/A Accrued interest receivable 13,275 13,275 13,275 — — Interest rate swaps 55,597 55,597 — 55,597 — Financial liabilities: Deposits 2,796,779 2,795,463 2,101,939 693,524 — Federal Home Loan Bank advances and other borrowings 330,916 320,287 — 320,287 — Accrued interest payable 10,860 10,860 10,860 — — Interest rate swaps 51,949 51,949 — 51,949 — Off-balance sheet items: Standby letters of credit 190 190 — — 190 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | As of March 31, 2024 Number of Instruments Notional Amount Weighted Average Maturity (In Years) Fair Value (Dollars in Thousands) Included in Derivative assets Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 18 $ 143,915 6.28 $ 2,759 Interest rate swap agreements on loans with third-party counterparties 104 $ 938,679 5.77 $ 58,374 Derivatives designated as hedging instruments Interest rate swap related to AFS securities 11 $ 12,500 8.03 $ 765 Interest rate swap related to wholesale funding 37 394,655 3.40 7,805 Included in Derivative liabilities Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 86 $ 794,764 5.68 $ 61,133 As of December 31, 2023 Number of Instruments Notional Amount Weighted Average Maturity (In Years) Fair Value (Dollars in Thousands) Included in Derivative assets Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 25 $ 249,454 6.33 $ 7,904 Interest rate swap agreements on loans with third-party counter parties 106 939,156 6.06 43,234 Derivatives designated as hedging instruments Interest rate swap related to AFS securities 11 $ 12,500 8.28 $ 624 Interest rate swap related to wholesale funding 9 96,400 2.47 3,835 Included in Derivative liabilities Derivatives not designated as hedging instruments Interest rate swap agreements on loans with commercial loan clients 81 $ 689,702 5.96 $ 51,138 Derivatives designated as hedging instruments Interest rate swap related to wholesale funding 29 $ 306,255 3.89 $ 811 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables summarize both the Corporation’s and the Bank’s capital ratios and the ratios required by their federal regulators: As of March 31, 2024 Actual (1) Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital Consolidated $ 384,083 11.36 % $ 270,485 8.00 % $ 355,011 10.50 % N/A N/A First Business Bank 384,542 11.37 270,553 8.00 355,101 10.50 $ 338,191 10.00 % Tier 1 capital Consolidated $ 299,707 8.86 % $ 202,864 6.00 % $ 287,390 8.50 % N/A N/A First Business Bank 349,624 10.34 202,915 6.00 287,462 8.50 $ 270,553 8.00 % Common equity tier 1 capital Consolidated $ 287,715 8.51 % $ 152,148 4.50 % $ 236,674 7.00 % N/A N/A First Business Bank 349,624 10.34 152,186 4.50 236,734 7.00 $ 219,824 6.50 % Tier 1 leverage capital Consolidated $ 299,707 8.45 % $ 141,847 4.00 % $ 141,847 4.00 % N/A N/A First Business Bank 349,624 9.86 141,889 4.00 141,889 4.00 $ 177,361 5.00 % As of December 31, 2023 Actual (1) Minimum Required for Capital Adequacy Purposes For Capital Adequacy Purposes Plus Capital Conservation Buffer Minimum Required to Be Well Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) Total capital Consolidated $ 375,440 11.19 % $ 268,500 8.00 % $ 352,406 10.50 % N/A N/A First Business Bank 376,310 11.21 268,595 8.00 352,531 10.50 $ 335,744 10.00 % Tier 1 capital Consolidated $ 293,338 8.74 % $ 201,375 6.00 % $ 285,281 8.50 % N/A N/A First Business Bank 343,604 10.23 201,446 6.00 285,382 8.50 $ 268,595 8.00 % Common equity tier 1 capital Consolidated $ 281,346 8.38 % $ 151,031 4.50 % $ 234,937 7.00 % N/A N/A First Business Bank 343,604 10.23 151,085 4.50 235,021 7.00 $ 218,233 6.50 % Tier 1 leverage capital Consolidated $ 293,338 8.43 % $ 139,145 4.00 % $ 139,145 4.00 % N/A N/A First Business Bank 343,604 9.87 139,262 4.00 139,262 4.00 $ 174,077 5.00 % |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings per common share | ||
Net income | $ 8,848 | $ 8,979 |
Preferred stock dividend | 219 | 219 |
Less: earnings allocated to participating securities | 214 | 238 |
Basic earnings allocated to common shareholders | $ 8,415 | $ 8,522 |
Weighted-average common shares outstanding, excluding participating securities | 8,125,319 | 8,148,525 |
Basic earnings per common share | $ 1.04 | $ 1.05 |
Diluted earnings per common share | ||
Diluted earnings allocated to common shareholders | $ 8,415 | $ 8,522 |
Weighted-average diluted common shares outstanding, excluding participating securities | 8,125,319 | 8,148,525 |
Diluted earnings per common share | $ 1.04 | $ 1.05 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 193,708 | 185,093 | 196,857 |
Granted (1) | 63,050 | 89,795 | |
Vested | (45,475) | (96,304) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (8,960) | (5,255) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 34.93 | $ 32.38 | $ 29.32 |
Granted (1) | 32.78 | 34.96 | |
Vested | 29.09 | 28.60 | |
Forfeited | $ 32.91 | $ 31.17 | |
Deferred compensation expense yet to be recognized | $ 5,179 | ||
Period of time that deferred compensation expense will be recognized | 2 years 7 months 6 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 34,655 | 71,951 | 133,317 |
Granted (1) | 0 | 0 | |
Vested | (32,211) | (56,931) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (5,085) | (4,435) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 29.81 | $ 28.53 | $ 27.95 |
Granted (1) | 0 | 0 | |
Vested | 26.87 | 27.03 | |
Forfeited | $ 30.33 | $ 30.20 | |
Deferred compensation expense yet to be recognized | $ 911 | ||
Period of time that deferred compensation expense will be recognized | 1 year 7 months 2 days | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 73,180 | 56,155 | 57,435 |
Granted (1) | 17,025 | 34,840 | |
Vested | 0 | (36,120) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 37.37 | $ 35.70 | $ 32.89 |
Granted (1) | 42.89 | 35.79 | |
Vested | 0 | 31.31 | |
Forfeited | $ 0 | $ 0 | |
Deferred compensation expense yet to be recognized | $ 1,559 | ||
Period of time that deferred compensation expense will be recognized | 2 years 1 month 24 days | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 85,873 | 56,987 | 6,105 |
Granted (1) | 46,025 | 54,955 | |
Vested | (13,264) | (3,253) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (3,875) | (820) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 34.92 | $ 33.97 | $ 25.92 |
Granted (1) | 36.08 | 34.43 | |
Vested | 34.47 | 26.06 | |
Forfeited | $ 36.30 | $ 36.42 | |
Deferred compensation expense yet to be recognized | $ 2,709 | ||
Period of time that deferred compensation expense will be recognized | 3 years 2 months 12 days |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative Disclosures) (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 274,242 |
Employee Stock Purchase Plan, Number of Shares Authorized for Grant | 250,000 |
Employee Stock Purchase Program, Percent Discount | 90% |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 913 |
Employee Stock Purchase Plan, Number of Shares Available for Grant | 229,725 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Share-based compensation | $ 665 | $ 634 |
Securities (Available-for-Sale
Securities (Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities | ||
Amortized cost | $ 339,042 | $ 319,082 |
Gross unrealized holding gains | 598 | 1,388 |
Gross unrealized holding losses | (25,526) | (23,464) |
Available-for-sale securities, fair value | 314,114 | 297,006 |
US treasuries | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 14,239 | 14,158 |
Gross unrealized holding gains | 0 | 7 |
Gross unrealized holding losses | (410) | (389) |
Available-for-sale securities, fair value | 13,829 | 13,776 |
Municipal securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 40,304 | 40,407 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | (5,007) | (4,526) |
Available-for-sale securities, fair value | 35,297 | 35,881 |
Government Sponsored Enterprises | Other agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 15,901 | 27,986 |
Gross unrealized holding gains | 0 | 35 |
Gross unrealized holding losses | (463) | (455) |
Available-for-sale securities, fair value | 15,438 | 27,566 |
Government Sponsored Enterprises | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 127,841 | 131,321 |
Gross unrealized holding gains | 145 | 281 |
Gross unrealized holding losses | (11,754) | (10,769) |
Available-for-sale securities, fair value | 116,232 | 120,833 |
Government Sponsored Enterprises | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 32,603 | 32,774 |
Gross unrealized holding gains | 44 | 65 |
Gross unrealized holding losses | (4,552) | (4,470) |
Available-for-sale securities, fair value | 28,095 | 28,369 |
GNMA | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 105,331 | 69,441 |
Gross unrealized holding gains | 409 | 1,000 |
Gross unrealized holding losses | (2,871) | (2,385) |
Available-for-sale securities, fair value | 102,869 | 68,056 |
GNMA | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized cost | 2,823 | 2,995 |
Gross unrealized holding gains | 0 | 0 |
Gross unrealized holding losses | (469) | (470) |
Available-for-sale securities, fair value | $ 2,354 | $ 2,525 |
Securities (Held-to-Maturity Se
Securities (Held-to-Maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Held-to-maturity Securities | ||
Securities held-to-maturity, at amortized cost | $ 8,131 | $ 8,503 |
Gross unrecognized holding gains | 0 | 4 |
Gross unrecognized holding losses | (283) | (252) |
Estimated Fair Value | 7,848 | 8,255 |
Municipal securities | ||
Schedule of Held-to-maturity Securities | ||
Securities held-to-maturity, at amortized cost | 4,017 | 4,210 |
Gross unrecognized holding gains | 0 | 4 |
Gross unrecognized holding losses | (57) | (41) |
Estimated Fair Value | 3,960 | 4,173 |
GNMA | Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Securities held-to-maturity, at amortized cost | 1,114 | 1,211 |
Gross unrecognized holding gains | 0 | 0 |
Gross unrecognized holding losses | (73) | (76) |
Estimated Fair Value | 1,041 | 1,135 |
Government Sponsored Enterprises | Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Securities held-to-maturity, at amortized cost | 996 | 1,078 |
Gross unrecognized holding gains | 0 | 0 |
Gross unrecognized holding losses | (57) | (53) |
Estimated Fair Value | 939 | 1,025 |
Government Sponsored Enterprises | Commercial mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Securities held-to-maturity, at amortized cost | 2,004 | 2,004 |
Gross unrecognized holding gains | 0 | 0 |
Gross unrecognized holding losses | (96) | (82) |
Estimated Fair Value | $ 1,908 | $ 1,922 |
Securities (Contractual Maturit
Securities (Contractual Maturity) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Available-for-Sale, Amortized Cost | |
Due in one year or less | $ 18,655 |
Due in one year through five years | 19,674 |
Due in five through ten years | 10,553 |
Due in over ten years | 21,562 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost | 70,444 |
Residential mortgage-backed securities, available-for-sale, maturity, without single maturity date, amortized cost | 233,172 |
Commercial mortgage-backed securities, available-for-sale, maturity, without single maturity date, amortized cost | 35,426 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Amortized Cost | 339,042 |
Available-for-Sale, Estimated Fair Value | |
Due in one year or less | 18,645 |
Due in one year through five years | 18,259 |
Due in five through ten years | 9,736 |
Due in over ten years | 17,924 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Fair Value | 64,564 |
Residential mortgage-backed securities, available-for-sale, maturity, without single maturity date, fair value | 219,101 |
Available-for-sale securities, fair value | 30,449 |
Debt Securities, Available-for-Sale, Maturity, without Single Maturity Date, Fair Value | 314,114 |
Held-to-Maturity, Amortized Cost | |
Due in one year or less | 870 |
Due in one year through five years | 3,147 |
Due in five through ten years | 0 |
Due in over ten years | 0 |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date | 4,017 |
Residential mortgage-backed securities, held-to-maturity, maturity, without single maturity date, amortized cost | 2,110 |
Securities held-to-maturity, at amortized cost | 2,004 |
Debt Securities, Held-to-Maturity, Maturity, without Single Maturity Date, Amortized Cost | 8,131 |
Held-to-Maturity, Estimated Fair Value | |
Due in one year or less | 870 |
Due in one year through five years | 3,090 |
Due in five through ten years | 0 |
Due in over ten years | 0 |
Debt Securities, Held-to-Maturity, Maturity, Allocated and Single Maturity Date, Fair Value | 3,960 |
Residential mortgage-backed securities, held-to-maturity, maturity, without single maturity date, fair value | 1,980 |
Held-to-maturity Securities, fair value | 1,908 |
Debt Securities, Held-to-Maturity, Maturity, without Single Maturity Date, Fair Value | $ 7,848 |
Securities (Unrealized Losses A
Securities (Unrealized Losses Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 76,914 | $ 47,366 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 763 | 495 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 178,118 | 164,447 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 24,763 | 22,969 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 255,032 | 211,813 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 25,526 | 23,464 |
US treasuries | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 9,252 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 4,577 | 4,595 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 407 | 389 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 13,829 | 4,595 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 410 | 389 |
Municipal securities | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 35,297 | 35,881 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 5,007 | 4,526 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 35,297 | 35,881 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 5,007 | 4,526 |
Government Sponsored Enterprises | Other agency securities | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 10,381 | 13,370 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 20 | 30 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 5,057 | 3,076 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 443 | 425 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 15,438 | 16,446 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 463 | 455 |
Government Sponsored Enterprises | Residential mortgage-backed securities | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 20,280 | 19,925 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 331 | 285 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 86,461 | 78,086 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 11,423 | 10,484 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 106,741 | 98,011 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 11,754 | 10,769 |
Government Sponsored Enterprises | Commercial mortgage-backed securities | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 893 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 20 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 27,102 | 26,465 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 4,552 | 4,450 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 27,102 | 27,358 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 4,552 | 4,470 |
GNMA | Residential mortgage-backed securities | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 37,001 | 13,178 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 409 | 160 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 17,270 | 13,819 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2,462 | 2,225 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 54,271 | 26,997 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | 2,871 | 2,385 |
GNMA | Commercial mortgage-backed securities | ||
Fair Value | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2,354 | 2,525 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 469 | 470 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 2,354 | 2,525 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 469 | $ 470 |
Securities (Unrealized Losses H
Securities (Unrealized Losses Held-to-Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value | ||
Fair Value Less than 12 months | $ 1,655 | $ 1,424 |
Unrealized Loss Less than 12 months | 12 | 4 |
Fair Value 12 months or longer | 5,653 | 6,316 |
Unrealized Loss 12 months or longer | 271 | 248 |
Total Fair Value | 7,308 | 7,740 |
Total Unrealized Loss | 283 | 252 |
Municipal securities | ||
Fair Value | ||
Fair Value Less than 12 months | 1,655 | 1,424 |
Unrealized Loss Less than 12 months | 12 | 4 |
Fair Value 12 months or longer | 1,765 | 2,234 |
Unrealized Loss 12 months or longer | 45 | 37 |
Total Fair Value | 3,420 | 3,658 |
Total Unrealized Loss | 57 | 41 |
GNMA | Residential mortgage-backed securities | ||
Fair Value | ||
Fair Value Less than 12 months | 0 | 0 |
Unrealized Loss Less than 12 months | 0 | 0 |
Fair Value 12 months or longer | 1,041 | 1,135 |
Unrealized Loss 12 months or longer | 73 | 76 |
Total Fair Value | 1,041 | 1,135 |
Total Unrealized Loss | 73 | 76 |
Government Sponsored Enterprises | Residential mortgage-backed securities | ||
Fair Value | ||
Fair Value Less than 12 months | 0 | 0 |
Unrealized Loss Less than 12 months | 0 | 0 |
Fair Value 12 months or longer | 939 | 1,025 |
Unrealized Loss 12 months or longer | 57 | 53 |
Total Fair Value | 939 | 1,025 |
Total Unrealized Loss | 57 | 53 |
Government Sponsored Enterprises | Commercial mortgage-backed securities | ||
Fair Value | ||
Fair Value Less than 12 months | 0 | 0 |
Unrealized Loss Less than 12 months | 0 | 0 |
Fair Value 12 months or longer | 1,908 | 1,922 |
Unrealized Loss 12 months or longer | 96 | 82 |
Total Fair Value | 1,908 | 1,922 |
Total Unrealized Loss | $ 96 | $ 82 |
Securities (Narrative Disclosur
Securities (Narrative Disclosures) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) securities | Mar. 31, 2023 USD ($) securities | Dec. 31, 2023 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of available-for-sale securities sold | 5 | 0 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | 182 | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | 159 | ||
Number of held-to-maturity securities in an unrealized loss position | 25 | ||
Held-to-Maturity, Securities in Continuous Unrealized Loss Positions, 12 Months or Longer, Qualitative Disclosure, Number of Positions | 21 | ||
Other than temporary impairment on held-to-maturity securities recorded on the income statement | $ | $ 0 | $ 0 | |
Various Obligations | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Debt Securities | $ | $ 33,000 | $ 45,400 |
Loans, Lease Receivables, and_4
Loans, Lease Receivables, and Allowance for Credit Losses (Loan Composition) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | $ 2,910,590 | $ 2,850,018 |
Financing Receivable, Allowance for Credit Loss | 32,799 | 31,275 |
Deferred loan fees and costs, net | (274) | (243) |
Loans and leases receivable, net amount | 2,878,065 | 2,818,986 |
Commercial real estate — owner occupied | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 263,748 | 256,479 |
Financing Receivable, Allowance for Credit Loss | 1,562 | 1,525 |
Commercial real estate — non-owner occupied | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 792,858 | 773,494 |
Financing Receivable, Allowance for Credit Loss | 6,164 | 5,596 |
Construction | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 202,382 | 193,080 |
Financing Receivable, Allowance for Credit Loss | 1,515 | 1,244 |
Multi-family | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 453,321 | 450,529 |
Financing Receivable, Allowance for Credit Loss | 3,588 | 3,562 |
1-4 family | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 27,482 | 26,289 |
Financing Receivable, Allowance for Credit Loss | 282 | 243 |
Total commercial real estate | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 1,739,791 | 1,699,871 |
Commercial and industrial | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 1,120,779 | 1,105,835 |
Financing Receivable, Allowance for Credit Loss | 19,250 | 18,710 |
Consumer and other | ||
Loans and Leases Receivable Disclosure | ||
Loans and Leases Receivable, before Fees, Gross | 50,020 | 44,312 |
Financing Receivable, Allowance for Credit Loss | $ 438 | $ 395 |
Loans, Lease Receivables, and_5
Loans, Lease Receivables, and Allowance for Credit Losses (Loans by Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | $ 123,574 | $ 568,931 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 571,109 | 423,678 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 394,703 | 296,979 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 285,906 | 304,487 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 295,137 | 158,267 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 721,454 | 586,727 |
Financing Receivable, Excluding Accrued Interest, Revolving | 518,707 | 510,949 |
Loans and Leases Receivable, before Fees, Gross | 2,910,590 | 2,850,018 |
Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 119,413 | 564,860 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 564,781 | 404,711 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 374,319 | 281,402 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 270,466 | 289,670 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 285,016 | 134,341 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 650,733 | 542,295 |
Financing Receivable, Excluding Accrued Interest, Revolving | 499,328 | 481,028 |
Loans and Leases Receivable, before Fees, Gross | 2,764,056 | 2,698,307 |
Category II | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 4,161 | 1,496 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,778 | 5,280 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 5,952 | 12,376 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 3,128 | 8,577 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 2,482 | 19,932 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 44,434 | 16,493 |
Financing Receivable, Excluding Accrued Interest, Revolving | 5,287 | 5,706 |
Loans and Leases Receivable, before Fees, Gross | 67,222 | 69,860 |
Category III | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 1,093 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,957 | 7,168 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 8,066 | 1,882 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 11,091 | 5,919 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 7,116 | 3,861 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 24,640 | 26,273 |
Financing Receivable, Excluding Accrued Interest, Revolving | 6,613 | 15,058 |
Loans and Leases Receivable, before Fees, Gross | 59,483 | 61,254 |
Category IV | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 1,482 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,593 | 6,519 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 6,366 | 1,319 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,221 | 321 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 523 | 133 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1,647 | 1,666 |
Financing Receivable, Excluding Accrued Interest, Revolving | 7,479 | 9,157 |
Loans and Leases Receivable, before Fees, Gross | 19,829 | 20,597 |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 4,587 | 31,637 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 39,361 | 43,156 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 46,629 | 38,803 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 38,100 | 44,964 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 44,415 | 22,078 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 89,538 | 75,390 |
Financing Receivable, Excluding Accrued Interest, Revolving | 1,118 | 451 |
Loans and Leases Receivable, before Fees, Gross | 263,748 | 256,479 |
Commercial real estate — owner occupied | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 4,587 | 31,637 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 39,361 | 43,156 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 46,629 | 38,803 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 38,100 | 44,704 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 44,415 | 22,078 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 88,783 | 72,774 |
Financing Receivable, Excluding Accrued Interest, Revolving | 1,118 | 451 |
Loans and Leases Receivable, before Fees, Gross | 262,993 | 253,603 |
Commercial real estate — owner occupied | Category II | ||
Financing Receivable, Recorded Investment | ||
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 | 260 |
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 | 303 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 303 | 260 |
Commercial real estate — owner occupied | Category III | ||
Financing Receivable, Recorded Investment | ||
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 | 452 | 2,616 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 452 | 2,616 |
Commercial real estate — owner occupied | Category IV | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 14,263 | 71,857 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 72,514 | 76,689 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 76,485 | 74,962 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 74,338 | 80,464 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 89,565 | 86,100 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 430,988 | 350,944 |
Financing Receivable, Excluding Accrued Interest, Revolving | 34,705 | 32,478 |
Loans and Leases Receivable, before Fees, Gross | 792,858 | 773,494 |
Commercial real estate — non-owner occupied | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 14,263 | 71,857 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 71,834 | 76,689 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 76,485 | 72,660 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 72,049 | 78,212 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 87,338 | 66,262 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 368,191 | 314,970 |
Financing Receivable, Excluding Accrued Interest, Revolving | 34,705 | 32,478 |
Loans and Leases Receivable, before Fees, Gross | 724,865 | 713,128 |
Commercial real estate — non-owner occupied | Category II | ||
Financing Receivable, Recorded Investment | ||
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 | 2,302 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 2,289 | 2,252 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 2,227 | 19,838 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 43,867 | 16,274 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 48,383 | 40,666 |
Commercial real estate — non-owner occupied | Category III | ||
Financing Receivable, Recorded Investment | ||
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 | 680 | 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 | 18,930 | 19,700 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 19,610 | 19,700 |
Commercial real estate — non-owner occupied | Category IV | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 10,982 | 63,660 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 85,216 | 83,161 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 64,493 | 17,831 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 18,134 | 6,456 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 6,452 | 433 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 6,417 | 6,528 |
Financing Receivable, Excluding Accrued Interest, Revolving | 10,688 | 15,011 |
Loans and Leases Receivable, before Fees, Gross | 202,382 | 193,080 |
Construction | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 10,982 | 63,660 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 85,216 | 83,161 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 64,039 | 8,542 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 8,845 | 744 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 739 | 433 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 6,148 | 6,528 |
Financing Receivable, Excluding Accrued Interest, Revolving | 10,688 | 15,011 |
Loans and Leases Receivable, before Fees, Gross | 186,657 | 178,079 |
Construction | Category II | ||
Financing Receivable, Recorded Investment | ||
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 | 9,289 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 5,712 |
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 15,001 |
Construction | Category III | ||
Financing Receivable, Recorded Investment | ||
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 | 454 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 9,289 | 0 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 5,713 | 0 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 269 | 0 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 15,725 | 0 |
Construction | Category IV | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 19,964 | 84,932 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 77,049 | 41,068 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 42,927 | 70,054 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 69,755 | 113,294 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 103,163 | 22,925 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 137,451 | 115,243 |
Financing Receivable, Excluding Accrued Interest, Revolving | 3,012 | 3,013 |
Loans and Leases Receivable, before Fees, Gross | 453,321 | 450,529 |
Multi-family | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 19,964 | 84,932 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 77,049 | 41,068 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 42,927 | 70,054 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 69,755 | 113,294 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 103,163 | 22,925 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 137,451 | 115,243 |
Financing Receivable, Excluding Accrued Interest, Revolving | 3,012 | 3,013 |
Loans and Leases Receivable, before Fees, Gross | 453,321 | 450,529 |
Multi-family | Category II | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | Category III | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | Category IV | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 599 | 4,242 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,231 | 7,684 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 7,395 | 2,672 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 2,642 | 2,359 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 2,340 | 443 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 3,024 | 2,827 |
Financing Receivable, Excluding Accrued Interest, Revolving | 7,251 | 6,062 |
Loans and Leases Receivable, before Fees, Gross | 27,482 | 26,289 |
1-4 family | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 599 | 4,242 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 4,231 | 7,684 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 7,395 | 2,672 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 2,642 | 2,359 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 2,340 | 443 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 3,004 | 2,805 |
Financing Receivable, Excluding Accrued Interest, Revolving | 7,251 | 6,062 |
Loans and Leases Receivable, before Fees, Gross | 27,462 | 26,267 |
1-4 family | Category II | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | Category III | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | Category IV | ||
Financing Receivable, Recorded Investment | ||
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 | 20 | 22 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 20 | 22 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 66,441 | 306,683 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 286,865 | 163,134 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 148,592 | 89,490 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 79,869 | 44,757 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 37,063 | 24,239 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 48,047 | 32,310 |
Financing Receivable, Excluding Accrued Interest, Revolving | 453,902 | 445,222 |
Loans and Leases Receivable, before Fees, Gross | 1,120,779 | 1,105,835 |
Commercial and industrial | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 62,280 | 302,612 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 281,217 | 144,167 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 128,662 | 85,504 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 76,007 | 38,164 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 34,882 | 20,151 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 41,167 | 26,490 |
Financing Receivable, Excluding Accrued Interest, Revolving | 434,523 | 415,301 |
Loans and Leases Receivable, before Fees, Gross | 1,058,738 | 1,032,389 |
Commercial and industrial | Category II | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 4,161 | 1,496 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,778 | 5,280 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 5,952 | 785 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 839 | 353 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 255 | 94 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 264 | 219 |
Financing Receivable, Excluding Accrued Interest, Revolving | 5,287 | 5,706 |
Loans and Leases Receivable, before Fees, Gross | 18,536 | 13,933 |
Commercial and industrial | Category III | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 1,093 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,277 | 7,168 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 7,612 | 1,882 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,802 | 5,919 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 1,403 | 3,861 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 4,989 | 3,957 |
Financing Receivable, Excluding Accrued Interest, Revolving | 6,613 | 15,058 |
Loans and Leases Receivable, before Fees, Gross | 23,696 | 38,938 |
Commercial and industrial | Category IV | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 0 | 1,482 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,593 | 6,519 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 6,366 | 1,319 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 1,221 | 321 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 523 | 133 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 1,627 | 1,644 |
Financing Receivable, Excluding Accrued Interest, Revolving | 7,479 | 9,157 |
Loans and Leases Receivable, before Fees, Gross | 19,809 | 20,575 |
Consumer and other | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 6,738 | 5,920 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 5,873 | 8,786 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 8,182 | 3,167 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 3,068 | 12,193 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12,139 | 2,049 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 5,989 | 3,485 |
Financing Receivable, Excluding Accrued Interest, Revolving | 8,031 | 8,712 |
Loans and Leases Receivable, before Fees, Gross | 50,020 | 44,312 |
Consumer and other | Category I | ||
Financing Receivable, Recorded Investment | ||
Financing Receivable, Excluding Accrued Interest, Year One, Originated, Current Fiscal Year | 6,738 | 5,920 |
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year | 5,873 | 8,786 |
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year | 8,182 | 3,167 |
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year | 3,068 | 12,193 |
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year | 12,139 | 2,049 |
Financing Receivable, Excluding Accrued Interest, Originated, More than Five Years before Current Fiscal Year | 5,989 | 3,485 |
Financing Receivable, Excluding Accrued Interest, Revolving | 8,031 | 8,712 |
Loans and Leases Receivable, before Fees, Gross | 50,020 | 44,312 |
Consumer and other | Category II | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Consumer and other | Category III | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Consumer and other | Category IV | ||
Financing Receivable, Recorded Investment | ||
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 |
Financing Receivable, Excluding Accrued Interest, Revolving | 0 | 0 |
Loans and Leases Receivable, before Fees, Gross | $ 0 | $ 0 |
Loans, Lease Receivables, and_6
Loans, Lease Receivables, and Allowance for Credit Losses (Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | $ 2,910,590 | $ 2,850,018 |
30 to 59 days past due, percent of total portfolio | 0.07% | 0.12% |
60 to 89 days past due, percent of total portfolio | 0.02% | 0.04% |
Greater than 90 days past due, percent of portfolio | 0.57% | 0.64% |
Financing Receivable, Recorded Investment, Past Due, Percent of Portfolio | 0.66% | 0.80% |
Current, percent of total portfolio | 99.34% | 99.20% |
Financing Receivable, Recorded Investment, Gross, Percent of Portfolio | 100% | 100% |
30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | $ 2,071 | $ 3,430 |
60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 480 | 1,041 |
Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 16,745 | 18,347 |
Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 19,296 | 22,818 |
Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 2,891,294 | 2,827,200 |
Commercial real estate — owner occupied | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 263,748 | 256,479 |
Commercial real estate — owner occupied | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — owner occupied | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — owner occupied | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — owner occupied | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — owner occupied | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 263,748 | 256,479 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 792,858 | 773,494 |
Commercial real estate — non-owner occupied | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — non-owner occupied | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — non-owner occupied | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — non-owner occupied | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Commercial real estate — non-owner occupied | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 792,858 | 773,494 |
Construction | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 202,382 | 193,080 |
Construction | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Construction | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Construction | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Construction | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Construction | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 202,382 | 193,080 |
Multi-family | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 453,321 | 450,529 |
Multi-family | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Multi-family | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 453,321 | 450,529 |
1-4 family | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 27,482 | 26,289 |
1-4 family | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
1-4 family | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 27,482 | 26,289 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 1,120,779 | 1,105,835 |
Commercial and industrial | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 2,071 | 3,430 |
Commercial and industrial | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 480 | 1,041 |
Commercial and industrial | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 16,745 | 18,347 |
Commercial and industrial | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 19,296 | 22,818 |
Commercial and industrial | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 1,101,483 | 1,083,017 |
Consumer and other | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 50,020 | 44,312 |
Consumer and other | 30-59 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Consumer and other | 60-89 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Consumer and other | Greater than 90 days past due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Consumer and other | Total Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | 0 | 0 |
Consumer and other | Not Past Due | ||
Financing Receivable, Recorded Investment, Summary of Past Due and Current Loans Receivable | ||
Loans and Leases Receivable, before Fees, Gross | $ 50,020 | $ 44,312 |
Loans, Lease Receivables, and_7
Loans, Lease Receivables, and Allowance for Credit Losses (Non-accrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | $ 9,325 | $ 9,690 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 10,504 | 10,907 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Total non-accrual loans and leases to gross loans and leases | 0.68% | 0.72% |
Allowance for credit losses to gross loans and leases | 1.19% | 1.16% |
Allowance for credit losses to non-accrual loans and leases | 174.64% | 160.21% |
Commercial real estate — owner occupied | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | $ 0 | $ 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Construction | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Multi-family | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
1-4 family | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 20 | 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 22 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Total commercial real estate | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 20 | 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 22 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 9,305 | 9,690 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 10,504 | 10,885 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | 0 | 0 |
Consumer and other | ||
Financing Receivable, Impaired | ||
Financing Receivable, Excluding Accrued Interest, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, Nonaccrual | 0 | 0 |
Financing Receivable, Excluding Accrued Interest, 90 Days or More Past Due, Still Accruing | $ 0 | $ 0 |
Loans, Lease Receivables, and_8
Loans, Lease Receivables, and Allowance for Credit Losses (Schedule of Collateral Dependent Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Impaired Financing Receivable Amortized Cost | $ 13,563 | $ 14,291 |
Financing Receivable, Recorded Investment | ||
Impaired Financing Receivable Amortized Cost | 13,563 | 14,291 |
Inventory | ||
Receivables [Abstract] | ||
Impaired Financing Receivable Amortized Cost | 1,120 | 8,879 |
Financing Receivable, Recorded Investment | ||
Impaired Financing Receivable Amortized Cost | 1,120 | 8,879 |
Equipment | ||
Receivables [Abstract] | ||
Impaired Financing Receivable Amortized Cost | 4,753 | 3,740 |
Financing Receivable, Recorded Investment | ||
Impaired Financing Receivable Amortized Cost | 4,753 | 3,740 |
Real Estate | ||
Receivables [Abstract] | ||
Impaired Financing Receivable Amortized Cost | 140 | 46 |
Financing Receivable, Recorded Investment | ||
Impaired Financing Receivable Amortized Cost | 140 | 46 |
Accounts Receivable | ||
Receivables [Abstract] | ||
Impaired Financing Receivable Amortized Cost | 6,359 | 278 |
Financing Receivable, Recorded Investment | ||
Impaired Financing Receivable Amortized Cost | 6,359 | 278 |
Other | ||
Receivables [Abstract] | ||
Impaired Financing Receivable Amortized Cost | 1,191 | 1,348 |
Financing Receivable, Recorded Investment | ||
Impaired Financing Receivable Amortized Cost | $ 1,191 | $ 1,348 |
Loans, Lease Receivables, and_9
Loans, Lease Receivables, and Allowance for Credit Losses (Summary of Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - begin | $ 31,275 | |||
Allowance for loan and lease losses - end | 32,799 | $ 26,140 | ||
Off-Balance-Sheet, Credit Loss, Liability | 1,830 | 1,410 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 31,275 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 32,799 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 921 | 166 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 227 | 107 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | (694) | (59) | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 2,326 | 1,561 | ||
Financing Receivable, Allowance for Credit Loss, Including | 34,629 | 27,550 | $ 32,997 | $ 24,230 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 1,818 | |||
Commercial real estate — owner occupied | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 1,562 | 1,636 | ||
Off-Balance-Sheet, Credit Loss, Liability | 14 | 20 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 1,525 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 1,562 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 1 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | 1 | 0 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 35 | 94 | ||
Financing Receivable, Allowance for Credit Loss, Including | 1,576 | 1,656 | 1,540 | 1,766 |
Commercial real estate — owner occupied | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | (204) | |||
Commercial real estate — non-owner occupied | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 6,164 | 4,915 | ||
Off-Balance-Sheet, Credit Loss, Liability | 38 | 51 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 5,596 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 6,164 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | 1 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | 0 | 1 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 566 | 99 | ||
Financing Receivable, Allowance for Credit Loss, Including | 6,202 | 4,966 | 5,636 | 5,108 |
Commercial real estate — non-owner occupied | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | (242) | |||
Construction | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 1,515 | 1,586 | ||
Off-Balance-Sheet, Credit Loss, Liability | 1,022 | 701 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 1,244 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 1,515 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | 0 | 0 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 412 | (155) | ||
Financing Receivable, Allowance for Credit Loss, Including | 2,537 | 2,287 | 2,125 | 1,646 |
Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 796 | |||
Multi-family | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 3,588 | 2,892 | ||
Off-Balance-Sheet, Credit Loss, Liability | 11 | 9 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 3,562 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 3,588 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | 0 | 0 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 28 | 653 | ||
Financing Receivable, Allowance for Credit Loss, Including | 3,599 | 2,901 | 3,571 | 2,634 |
Multi-family | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | (386) | |||
1-4 family | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 282 | 201 | ||
Off-Balance-Sheet, Credit Loss, Liability | 30 | 20 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 243 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 282 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 110 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | 110 | 0 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | (64) | 59 | ||
Financing Receivable, Allowance for Credit Loss, Including | 312 | 221 | 266 | 207 |
1-4 family | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | (45) | |||
Commercial and industrial | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 19,250 | 14,348 | ||
Off-Balance-Sheet, Credit Loss, Liability | 664 | 557 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 18,710 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 19,250 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 899 | 166 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 116 | 95 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | (783) | (71) | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 1,289 | 700 | ||
Financing Receivable, Allowance for Credit Loss, Including | 19,914 | 14,905 | 19,408 | 12,403 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 1,873 | |||
Consumer and other | ||||
Allowance for credit losses roll-forward | ||||
Allowance for loan and lease losses - end | 438 | 562 | ||
Off-Balance-Sheet, Credit Loss, Liability | 51 | 52 | ||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Beginning Balance | 395 | |||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | 438 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff | 22 | 0 | ||
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | 11 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery | (22) | 11 | ||
Financing Receivable, Credit Loss, Expense (Reversal) | 60 | 111 | ||
Financing Receivable, Allowance for Credit Loss, Including | $ 489 | 614 | $ 451 | $ 466 |
Consumer and other | Cumulative Effect, Period of Adoption, Adjustment | ||||
Allowance for credit losses roll-forward | ||||
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance | $ 26 |
Loans, Lease Receivables, an_10
Loans, Lease Receivables, and Allowance for Credit Losses (Allowance for Credit Losses by Type of Methodology) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | $ 26,181 | $ 25,286 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 6,618 | 5,989 |
Financing Receivable, Allowance for Credit Loss | 32,799 | 31,275 |
Financing Receivable, Collectively Evaluated for Impairment | 2,890,761 | 2,829,421 |
Financing Receivable, Individually Evaluated for Impairment | 19,829 | 20,597 |
Loans and Leases Receivable, Gross | 2,910,590 | 2,850,018 |
Commercial real estate — owner occupied | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,562 | 1,525 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 1,562 | 1,525 |
Financing Receivable, Collectively Evaluated for Impairment | 263,748 | 256,479 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans and Leases Receivable, Gross | 263,748 | 256,479 |
Commercial real estate — non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 6,164 | 5,596 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 6,164 | 5,596 |
Financing Receivable, Collectively Evaluated for Impairment | 792,858 | 773,494 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans and Leases Receivable, Gross | 792,858 | 773,494 |
Construction | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,515 | 1,244 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 1,515 | 1,244 |
Financing Receivable, Collectively Evaluated for Impairment | 202,382 | 193,080 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans and Leases Receivable, Gross | 202,382 | 193,080 |
Multi-family | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,588 | 3,562 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 3,588 | 3,562 |
Financing Receivable, Collectively Evaluated for Impairment | 453,321 | 450,529 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans and Leases Receivable, Gross | 453,321 | 450,529 |
1-4 family | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 282 | 221 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 22 |
Financing Receivable, Allowance for Credit Loss | 282 | 243 |
Financing Receivable, Collectively Evaluated for Impairment | 27,462 | 26,267 |
Financing Receivable, Individually Evaluated for Impairment | 20 | 22 |
Loans and Leases Receivable, Gross | 27,482 | 26,289 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 12,632 | 12,743 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 6,618 | 5,967 |
Financing Receivable, Allowance for Credit Loss | 19,250 | 18,710 |
Financing Receivable, Collectively Evaluated for Impairment | 1,100,970 | 1,085,260 |
Financing Receivable, Individually Evaluated for Impairment | 19,809 | 20,575 |
Loans and Leases Receivable, Gross | 1,120,779 | 1,105,835 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Losses | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 438 | 395 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 |
Financing Receivable, Allowance for Credit Loss | 438 | 395 |
Financing Receivable, Collectively Evaluated for Impairment | 50,020 | 44,312 |
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 |
Loans and Leases Receivable, Gross | $ 50,020 | $ 44,312 |
Loans, Lease Receivables, an_11
Loans, Lease Receivables, and Allowance for Credit Losses (Narrative Disclosures) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) loans securities days | Mar. 31, 2023 USD ($) loans | Dec. 31, 2023 USD ($) | |
Financing Receivable, Recorded Investment | |||
Guaranteed portion of SBA loans sold to third parties | $ 2,100 | $ 5,000 | |
Total amount of outstanding SBA loans sold | 80,800 | $ 84,200 | |
Loans and leases transferred to third parties total principal amount | 34,800 | $ 22,600 | |
Gain (Loss) Recognized on Participation Interest in Originated Loans | 0 | ||
Total amount of outstanding loans transferred to third parties as loan participations | 302,800 | 279,500 | |
Total amount of loan participations remaining on the Corporations balance sheet | 376,800 | 367,400 | |
Loans in the participation sold portfolio, considered impaired, gross amount | $ 0 | $ 0 | |
Number of Loans | loans | 0 | ||
Financing Receivable, Nonaccrual, Modifications, Number of Contracts | securities | 2 | ||
Financing Receivable, Excluding Accrued Interest, Modified, Subsequent Default | $ 283 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans | 1 | 0 | |
Unfunded commitments, troubled debt restructurings | $ 0 | ||
Minimum | |||
Financing Receivable, Recorded Investment | |||
Financing Receivable, Excluding Accrued Interest, Modified in Period, Days Past Due | days | 0 | ||
Maximum | |||
Financing Receivable, Recorded Investment | |||
Financing Receivable, Excluding Accrued Interest, Modified in Period, Days Past Due | days | 300 | ||
Commercial and industrial | |||
Financing Receivable, Recorded Investment | |||
Number of Loans | loans | 6 | ||
Financing Receivable, Excluding Accrued Interest, Modified in Period, Amount | $ 1,100 | ||
Commercial real estate — non-owner occupied | |||
Financing Receivable, Recorded Investment | |||
Number of Loans | loans | 2 | ||
Financing Receivable, Excluding Accrued Interest, Modified in Period, Amount | $ 5,900 |
Leases Total Lease Cost (Detail
Leases Total Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 357 | $ 382 |
Short-term lease cost | 37 | 63 |
Variable lease cost | 141 | 150 |
Sublease income | 0 | (45) |
Total lease cost, net | $ 535 | $ 550 |
Leases Quantitative Information
Leases Quantitative Information (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term (in years) | 7 years 6 months 18 days | 7 years 8 months 12 days |
Weighted-average discount rate | 3.66% | 3.61% |
Leases Maturity of Operating Le
Leases Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Due 2024 | $ 1,139 | |
Due 2025 | 1,408 | |
Due 2026 | 1,400 | |
Due 2027 | 1,427 | |
Due 2028 | 1,113 | |
Due thereafter | 3,600 | |
Total undiscounted cash flows | 10,087 | |
Discount on cash flows | (1,423) | |
Total lease liability | $ 8,664 | $ 8,954 |
Other Assets Accrued Interest R
Other Assets Accrued Interest Receivable and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accrued interest receivable | $ 13,650 | $ 13,275 |
Net deferred tax asset | 8,267 | 9,508 |
Investment in historic development entities | 2,393 | 2,393 |
Investment in Low-Income Housing Development Entities | 31,471 | 33,303 |
Investment in limited partnerships | 15,566 | 15,027 |
Prepaid expenses | 5,309 | 4,269 |
Other assets | 13,688 | 13,283 |
Total accrued interest receivable and other assets | $ 90,344 | $ 91,058 |
Other Assets Accrued Interest_2
Other Assets Accrued Interest Receivable and Other Assets (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of tax credit investments | $ 1,296 | $ 436 |
Affordable Housing Tax Credits and Other Tax Benefits, Amount | $ 1,700 | $ 586 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Deposits | ||
Deposits | $ 2,755,406 | $ 2,796,779 |
Average balance, deposits | $ 2,803,989 | $ 2,444,438 |
Deposits, weighted average interest rate during the period | 3.40% | 2.92% |
Non-interest-bearing transaction accounts | ||
Deposits | ||
Deposits | $ 400,267 | $ 445,376 |
Average balance, deposits | $ 443,416 | $ 453,930 |
Deposits, weighted average interest rate during the period | 0% | 0% |
Interest-bearing transaction accounts | ||
Deposits | ||
Deposits | $ 818,080 | $ 895,319 |
Average balance, deposits | $ 862,896 | $ 689,500 |
Deposits, weighted average interest rate during the period | 3.92% | 3.44% |
Money market accounts | ||
Deposits | ||
Deposits | $ 813,467 | $ 711,245 |
Average balance, deposits | $ 761,893 | $ 681,336 |
Deposits, weighted average interest rate during the period | 3.97% | 3.25% |
Certificates of deposit | ||
Deposits | ||
Deposits | $ 266,029 | $ 287,131 |
Average balance, deposits | $ 278,248 | $ 273,387 |
Deposits, weighted average interest rate during the period | 4.61% | 4.10% |
Wholesale deposits | ||
Deposits | ||
Deposits | $ 457,563 | $ 457,708 |
Average balance, deposits | $ 457,536 | $ 346,285 |
Deposits, weighted average interest rate during the period | 4.03% | 4.14% |
Time Deposits by Maturity (Deta
Time Deposits by Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Deposits [Abstract] | |
Time Deposit Maturities, Remainder of Fiscal Year | $ 494,093 |
Time Deposit Maturities, Year One | 40,573 |
Time Deposit Maturities, Year Two | 50,383 |
Time Deposit Maturities, Year Three | 73,650 |
Time Deposit Maturities, Year Four | 12,821 |
Time Deposit Maturities, after Year Five | 2,072 |
Time Deposits | $ 673,592 |
Narrative (Details)
Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Deposits | ||
Deposits, carrying amount | $ 2,755,406 | $ 2,796,779 |
Designated as Hedging Instrument | Interest rate swap related to certificate of deposits | ||
Deposits | ||
Derivative Asset, Notional Amount | $ 306,300 | |
Derivative Asset, Average Remaining Maturity | 3 years 8 months 12 days | |
Derivative Asset, Weighted Average Rate | 3.95% | |
Wholesale Certificates of Deposit | ||
Deposits | ||
Deposits, carrying amount | $ 407,600 | 407,700 |
Non-Reciprocal Interest-Bearing Transaction Accounts | ||
Deposits | ||
Deposits, carrying amount | 50,000 | 50,000 |
Certificates of Deposits and Wholesale Deposits | ||
Deposits | ||
Time Deposits, $250,000 or More | $ 102,200 | $ 120,200 |
FHLB Advances, Other Borrowin_3
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures (Composition of Borrowed Funds) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Composition of Borrowed Funds | ||
Borrowed funds | $ 381,718,000 | $ 330,916,000 |
Borrowed funds, average balance | $ 336,765,000 | $ 390,881,000 |
Borrowed funds, interest rate during period | 2.89% | 2.79% |
Federal funds purchased | ||
Composition of Borrowed Funds | ||
Borrowed funds | $ 0 | $ 0 |
Borrowed funds, average balance | $ 0 | $ 3,000 |
Borrowed funds, interest rate during period | 0% | 5.37% |
FHLB advances | ||
Composition of Borrowed Funds | ||
Borrowed funds | $ 332,250,000 | $ 281,500,000 |
Borrowed funds, average balance | $ 287,307,000 | $ 351,990,000 |
Borrowed funds, interest rate during period | 2.39% | 2.52% |
Line of Credit | ||
Composition of Borrowed Funds | ||
Borrowed funds | $ 0 | $ 0 |
Borrowed funds, average balance | $ 0 | $ 38,000 |
Borrowed funds, interest rate during period | 0% | 7.26% |
Other borrowings | ||
Composition of Borrowed Funds | ||
Borrowed funds | $ 10,000 | $ 20,000 |
Borrowed funds, average balance | $ 20,000 | $ 600,000 |
Borrowed funds, interest rate during period | 0% | 8.33% |
Subordinated notes and debentures | ||
Composition of Borrowed Funds | ||
Borrowed funds | $ 49,458,000 | $ 49,396,000 |
Borrowed funds, average balance | $ 49,438,000 | $ 38,250,000 |
Borrowed funds, interest rate during period | 5.78% | 5.16% |
FHLB Advances, Other Borrowin_4
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures (Debt Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Long-Term Debt, Maturity, Remainder of Fiscal Year | $ 160,810 | |
Long-Term Debt, Maturity, Year One | 48,000 | |
Long-Term Debt, Maturity, Year Two | 65,000 | |
Long-Term Debt, Maturity, Year Three | 28,000 | |
Long-Term Debt, Maturity, Year Four | 10,450 | |
Long-Term Debt, Maturity, after Year Four | 69,458 | |
Borrowed funds | $ 381,718 | $ 330,916 |
FHLB Advances, Other Borrowin_5
FHLB Advances, Other Borrowings and Subordinated Notes and Debentures (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Short-term Debt [Line Items] | ||
Borrowed funds | $ 381,718 | $ 330,916 |
Interest rate swap related to FHLB borrowings | Designated as Hedging Instrument | ||
Short-term Debt [Line Items] | ||
Derivative Asset, Notional Amount | $ 88,400 | |
Derivative Asset, Average Remaining Maturity | 2 years 4 months 24 days | |
Derivative Asset, Weighted Average Rate | 1.66% | |
Secured Borrowings | ||
Short-term Debt [Line Items] | ||
Borrowed funds | $ 10 | $ 20 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||||
Preferred Stock, Shares Issued | 12,500 | 12,500 | 12,500 | |
Preferred Stock, Value, Outstanding | $ 12,500 | |||
Preferred Stock, Dividend Rate, Percentage | 7% | 7% | 7% | |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 | ||
Proceeds from issuance of preferred stock | $ 12,000 | |||
Preferred stock dividend | $ 219 | $ 219 |
Commitments and Contingencies S
Commitments and Contingencies SBA Recourse Reserve Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 955 | $ 441 |
SBA recourse provision | 126 | (18) |
Ending balance | $ 1,081 | $ 423 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation | $ 3,400 |
SBA Loans, Probability of Future Losses | $ 1,100 |
Fair Value Disclosures (Measure
Fair Value Disclosures (Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swaps - liabilities, carrying amount | $ 61,133 | $ 51,949 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swaps - liabilities, carrying amount | 61,133 | 51,949 |
Fair value on a recurring basis | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swaps - liabilities, carrying amount | 61,133 | 51,949 |
Fair value on a recurring basis | Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swaps - liabilities, carrying amount | 0 | 0 |
Fair value on a recurring basis | Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swaps - liabilities, carrying amount | 61,133 | 51,949 |
Fair value on a recurring basis | Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Interest rate swaps - liabilities, carrying amount | 0 | 0 |
Fair value on a recurring basis | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 69,703 | 55,597 |
Fair value on a recurring basis | Interest rate swaps | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | Interest rate swaps | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 69,703 | 55,597 |
Fair value on a recurring basis | Interest rate swaps | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | US treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 13,829 | 13,776 |
Fair value on a recurring basis | US treasuries | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | US treasuries | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 13,829 | 13,776 |
Fair value on a recurring basis | US treasuries | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | U.S. government agency securities - government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 15,438 | 27,566 |
Fair value on a recurring basis | U.S. government agency securities - government-sponsored enterprises | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | U.S. government agency securities - government-sponsored enterprises | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 15,438 | 27,566 |
Fair value on a recurring basis | U.S. government agency securities - government-sponsored enterprises | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 35,297 | 35,881 |
Fair value on a recurring basis | Municipal securities | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair value on a recurring basis | Municipal securities | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 35,297 | 35,881 |
Fair value on a recurring basis | Municipal securities | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
GNMA | Fair value on a recurring basis | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 102,869 | 68,056 |
GNMA | Fair value on a recurring basis | Residential mortgage-backed securities | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
GNMA | Fair value on a recurring basis | Residential mortgage-backed securities | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 102,869 | 68,056 |
GNMA | Fair value on a recurring basis | Residential mortgage-backed securities | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
GNMA | Fair value on a recurring basis | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 2,354 | 2,525 |
GNMA | Fair value on a recurring basis | Commercial mortgage-backed securities | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
GNMA | Fair value on a recurring basis | Commercial mortgage-backed securities | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 2,354 | 2,525 |
GNMA | Fair value on a recurring basis | Commercial mortgage-backed securities | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Government Sponsored Enterprises | Fair value on a recurring basis | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 116,232 | 120,833 |
Government Sponsored Enterprises | Fair value on a recurring basis | Residential mortgage-backed securities | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Government Sponsored Enterprises | Fair value on a recurring basis | Residential mortgage-backed securities | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 116,232 | 120,833 |
Government Sponsored Enterprises | Fair value on a recurring basis | Residential mortgage-backed securities | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Government Sponsored Enterprises | Fair value on a recurring basis | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 28,095 | 28,369 |
Government Sponsored Enterprises | Fair value on a recurring basis | Commercial mortgage-backed securities | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Government Sponsored Enterprises | Fair value on a recurring basis | Commercial mortgage-backed securities | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 28,095 | 28,369 |
Government Sponsored Enterprises | Fair value on a recurring basis | Commercial mortgage-backed securities | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Disclosures (Measu_2
Fair Value Disclosures (Measured on a Non-Recurring Basis) (Details) - Fair value on a non-recurring basis - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | $ 5,219 | $ 4,917 |
Impaired loans | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Impaired loans | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Impaired loans | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 5,219 | 4,917 |
Repossessed Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 317 | 247 |
Repossessed Assets | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Repossessed Assets | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Repossessed Assets | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 317 | 247 |
Loan servicing rights | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 1,282 | 1,356 |
Loan servicing rights | Fair Value Measurements - Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Loan servicing rights | Fair Value Measurements - Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | 0 | 0 |
Loan servicing rights | Fair Value Measurements - Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Disclosure | $ 1,282 | $ 1,356 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value by Balance Sheet Groupings) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Cash and cash equivalents, carrying amount | $ 72,040 | $ 139,510 |
Cash and cash equivalents, fair value | 72,040 | 139,510 |
Available-for-sale securities, fair value | 314,114 | 297,006 |
Securities held-to-maturity, carrying amount | 8,131 | 8,503 |
Held-to-maturity Securities, fair value | 7,848 | 8,255 |
Loans held for sale, carrying amount | 4,855 | 4,589 |
Loans Held-for-sale, fair value | 5,244 | 4,956 |
Loans and leases receivable, net amount | 2,878,065 | 2,818,986 |
Loans and lease receivables, net, fair value | 2,848,940 | 2,789,731 |
Federal Home Loan Bank stock, carrying amount | 13,326 | 12,042 |
Accrued interest receivable, carrying amount | 13,650 | 13,275 |
Accrued interest receivable, fair value | 13,650 | 13,275 |
Derivative Asset | 69,703 | 55,597 |
Financial liabilities: | ||
Deposits, carrying amount | 2,755,406 | 2,796,779 |
Deposits, fair value | 2,754,078 | 2,795,463 |
Federal Home Loan Bank and other borrowings, carrying amount | 381,718 | 330,916 |
Federal Home Loan Bank and other borrowings fair value | 370,486 | 320,287 |
Accrued interest payable, carrying amount | 10,809 | 10,860 |
Accrued interest payable, fair value | 10,809 | 10,860 |
Derivatives | 61,133 | 51,949 |
Standby letters of credit, carrying amount | 162 | 190 |
Standby letters of credit, fair value | 162 | 190 |
Interest rate swaps | ||
Financial liabilities: | ||
Derivatives | 61,133 | 51,949 |
Interest rate swaps - liabilities, fair value | 61,133 | 51,949 |
Interest rate swaps | ||
Financial assets: | ||
Derivative Asset | 69,703 | 55,597 |
Interest rate swaps - assets, fair value | 69,703 | 55,597 |
Fair Value Measurements - Level 1 Inputs | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 72,040 | 139,510 |
Available-for-sale securities, fair value | 0 | 0 |
Held-to-maturity Securities, fair value | 0 | 0 |
Loans Held-for-sale, fair value | 0 | 0 |
Loans and lease receivables, net, fair value | 0 | 0 |
Accrued interest receivable, fair value | 13,650 | 13,275 |
Financial liabilities: | ||
Deposits, fair value | 2,081,814 | 2,101,939 |
Federal Home Loan Bank and other borrowings fair value | 0 | 0 |
Accrued interest payable, fair value | 10,809 | 10,860 |
Standby letters of credit, fair value | 0 | 0 |
Fair Value Measurements - Level 1 Inputs | Interest rate swaps | ||
Financial liabilities: | ||
Interest rate swaps - liabilities, fair value | 0 | 0 |
Fair Value Measurements - Level 1 Inputs | Interest rate swaps | ||
Financial assets: | ||
Interest rate swaps - assets, fair value | 0 | 0 |
Fair Value Measurements - Level 2 Inputs | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 0 | 0 |
Available-for-sale securities, fair value | 314,114 | 297,006 |
Held-to-maturity Securities, fair value | 7,848 | 8,255 |
Loans Held-for-sale, fair value | 5,244 | 4,956 |
Loans and lease receivables, net, fair value | 0 | 0 |
Accrued interest receivable, fair value | 0 | 0 |
Financial liabilities: | ||
Deposits, fair value | 672,264 | 693,524 |
Federal Home Loan Bank and other borrowings fair value | 370,486 | 320,287 |
Accrued interest payable, fair value | 0 | 0 |
Standby letters of credit, fair value | 0 | 0 |
Fair Value Measurements - Level 2 Inputs | Interest rate swaps | ||
Financial liabilities: | ||
Interest rate swaps - liabilities, fair value | 61,133 | 51,949 |
Fair Value Measurements - Level 2 Inputs | Interest rate swaps | ||
Financial assets: | ||
Interest rate swaps - assets, fair value | 69,703 | 55,597 |
Fair Value Measurements - Level 3 Inputs | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 0 | 0 |
Available-for-sale securities, fair value | 0 | 0 |
Held-to-maturity Securities, fair value | 0 | 0 |
Loans Held-for-sale, fair value | 0 | 0 |
Loans and lease receivables, net, fair value | 2,848,940 | 2,789,731 |
Accrued interest receivable, fair value | 0 | 0 |
Financial liabilities: | ||
Deposits, fair value | 0 | 0 |
Federal Home Loan Bank and other borrowings fair value | 0 | 0 |
Accrued interest payable, fair value | 0 | 0 |
Standby letters of credit, fair value | 162 | 190 |
Fair Value Measurements - Level 3 Inputs | Interest rate swaps | ||
Financial liabilities: | ||
Interest rate swaps - liabilities, fair value | 0 | 0 |
Fair Value Measurements - Level 3 Inputs | Interest rate swaps | ||
Financial assets: | ||
Interest rate swaps - assets, fair value | $ 0 | $ 0 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount1 | $ 0 | $ 0 |
Fair value, assets, level 2 to Level 1 transfers | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | $ 0 | 0 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Quantification of unobservable inputs for level 3 values for impaired loans | 10% | |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Quantification of unobservable inputs for level 3 values for impaired loans | 100% | |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Quantification of unobservable inputs for level 3 values for impaired loans | 51% | |
Fair value on a non-recurring basis | Impaired loans | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Assets, Fair Value Disclosure | $ 5,219 | $ 4,917 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Location and Fair Value of Derivative Instruments) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivatives not designated as hedging instruments, fair value | ||
Derivatives | $ 69,703,000 | $ 55,597,000 |
Derivatives | $ 61,133,000 | $ 51,949,000 |
Interest rate swap agreements on loans with commercial loan customers | Not Designated as Hedging Instrument | ||
Derivatives not designated as hedging instruments, fair value | ||
Derivative Asset, Number of Instruments Held | 18 | 25 |
Derivative Asset, Notional Amount | $ 143,915,000 | $ 249,454,000 |
Derivative Asset, Average Remaining Maturity | 6 years 3 months 10 days | 6 years 3 months 29 days |
Derivatives | $ 2,759,000 | $ 7,904,000 |
Derivative Liability, Number of Instruments Held | 86 | 81 |
Derivative Liability, Notional Amount | $ 794,764,000 | $ 689,702,000 |
Derivative Liability, Average Remaining Maturity | 5 years 8 months 4 days | 5 years 11 months 15 days |
Derivatives | $ 61,133,000 | $ 51,138,000 |
Interest rate swap agreements on loans with third-party counter parties | Not Designated as Hedging Instrument | ||
Derivatives not designated as hedging instruments, fair value | ||
Derivative Asset, Number of Instruments Held | 104 | 106 |
Derivative Asset, Notional Amount | $ 938,679,000 | $ 939,156,000 |
Derivative Asset, Average Remaining Maturity | 5 years 9 months 7 days | 6 years 21 days |
Derivatives | $ 58,374,000 | $ 43,234,000 |
Interest rate swap related to AFS securities | Designated as Hedging Instrument | ||
Derivatives not designated as hedging instruments, fair value | ||
Derivative Asset, Number of Instruments Held | 11 | 11 |
Derivative Asset, Notional Amount | $ 12,500,000 | $ 12,500,000 |
Derivative Asset, Average Remaining Maturity | 8 years 10 days | 8 years 3 months 10 days |
Derivatives | $ 765,000 | $ 624,000 |
Interest rate swap related to wholesale funding | Designated as Hedging Instrument | ||
Derivatives not designated as hedging instruments, fair value | ||
Derivative Asset, Number of Instruments Held | 37 | 9 |
Derivative Asset, Notional Amount | $ 394,655,000 | $ 96,400,000 |
Derivative Asset, Average Remaining Maturity | 3 years 4 months 24 days | 2 years 5 months 19 days |
Derivatives | $ 7,805,000 | $ 3,835,000 |
Derivative Liability, Number of Instruments Held | 29 | |
Derivative Liability, Notional Amount | $ 306,255,000 | |
Derivative Liability, Average Remaining Maturity | 3 years 10 months 20 days | |
Derivatives | $ 811,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Narrative Disclosures) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Derivatives | |||
Accumulated Derivative Credit Valuation Adjustment | $ 117,000 | $ 117,000 | |
Unrealized gains on interest rate swaps | 4,922,000 | $ (1,562,000) | |
Interest rate swap agreements on loans with third-party counter parties | |||
Derivatives | |||
Interest rate swaps - assets, fair value | 61,100,000 | ||
Interest rate swaps - liabilities, fair value | 2,800,000 | ||
Interest rate swap related to AFS securities | Designated as Hedging Instrument | |||
Derivatives | |||
Unrealized gains on interest rate swaps | 140,000 | 175,000 | |
Gain recognized in income on ineffective portion of hedges | 0 | 0 | |
Interest rate swap related to FHLB borrowings | Designated as Hedging Instrument | |||
Derivatives | |||
Unrealized gains on interest rate swaps | 4,800,000 | 1,400,000 | |
Gain recognized in income on ineffective portion of hedges | $ 0 | $ 0 |
Regulatory Capital (Regulatory
Regulatory Capital (Regulatory Capital Ratios) (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total capital | $ 384,083 | $ 375,440 |
Total capital to risk-weighted assets | 0.1136 | 0.1119 |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 270,485 | $ 268,500 |
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 0.0800 | 0.0800 |
Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 355,011 | $ 352,406 |
Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 10.50% | 10.50% |
Tier 1 capital | $ 299,707 | $ 293,338 |
Tier 1 capital to risk-weighted assets | 0.0886 | 0.0874 |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 202,864 | $ 201,375 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 0.0600 | 0.0600 |
Tier One Risk Based Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 287,390 | $ 285,281 |
Tier One Risk Based Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 8.50% | 8.50% |
Common equity tier 1 capital | $ 287,715 | $ 281,346 |
Common equity tier 1 capital to risk-weighted assets | 8.51% | 8.38% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 152,148 | $ 151,031 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common Equity Tier One Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 236,674 | $ 234,937 |
Common Equity Tier One Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 7% | 7% |
Tier 1 leverage capital | $ 299,707 | $ 293,338 |
Tier 1 leverage capital to average assets | 0.0845 | 0.0843 |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 141,847 | $ 139,145 |
Tier 1 leverage capital to average assets, Minimum Required for Capital Adequacy Purposes | 0.0400 | 0.0400 |
Tier One Leverage Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 141,847 | $ 139,145 |
Tier One Leverage Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 4% | 4% |
First Business Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Total capital | $ 384,542 | $ 376,310 |
Total capital to risk-weighted assets | 0.1137 | 0.1121 |
Total capital, Minimum Required for Capital Adequacy Purposes | $ 270,553 | $ 268,595 |
Total capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 0.0800 | 0.0800 |
Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 355,101 | $ 352,531 |
Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 10.50% | 10.50% |
Total capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 338,191 | $ 335,744 |
Total capital to risk-weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 0.1000 | 0.1000 |
Tier 1 capital | $ 349,624 | $ 343,604 |
Tier 1 capital to risk-weighted assets | 0.1034 | 0.1023 |
Tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 202,915 | $ 201,446 |
Tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 0.0600 | 0.0600 |
Tier One Risk Based Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 287,462 | $ 285,382 |
Tier One Risk Based Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 8.50% | 8.50% |
Tier 1 capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 270,553 | $ 268,595 |
Tier 1 capital to risk weighted assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 0.0800 | 0.0800 |
Common equity tier 1 capital | $ 349,624 | $ 343,604 |
Common equity tier 1 capital to risk-weighted assets | 10.34% | 10.23% |
Common equity tier 1 capital, Minimum Required for Capital Adequacy Purposes | $ 152,186 | $ 151,085 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required for Capital Adequacy Purposes | 4.50% | 4.50% |
Common Equity Tier One Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 236,734 | $ 235,021 |
Common Equity Tier One Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 7% | 7% |
Common equity tier 1 capital, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | $ 219,824 | $ 218,233 |
Common equity tier 1 capital to risk-weighted assets, Minimum Required to Be Well Capitalized Under Prompt Corrective Action Requirements | 6.50% | 6.50% |
Tier 1 leverage capital | $ 349,624 | $ 343,604 |
Tier 1 leverage capital to average assets | 0.0986 | 0.0987 |
Tier 1 leverage capital, Minimum Required for Capital Adequacy Purposes | $ 141,889 | $ 139,262 |
Tier 1 leverage capital to average assets, Minimum Required for Capital Adequacy Purposes | 0.0400 | 0.0400 |
Tier One Leverage Capital Required for Capital Adequacy Plus Capital Conservation Buffer | $ 141,889 | $ 139,262 |
Tier One Leverage Capital Required for Capital Adequacy Plus Conservation Buffer to Risk Weighted Assets | 4% | 4% |
Tier 1 leverage capital, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | $ 177,361 | $ 174,077 |
Tier 1 leverage capital to average assets, Minimum Required to be Well Capitalized Under Prompt Corrective Action Requirements | 0.0500 | 0.0500 |
Regulatory Capital Narrative Di
Regulatory Capital Narrative Disclosures (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Description of Material Affects of Noncompliance | Failure to meet minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions on the part of regulators, that if undertaken, could have a direct material effect on the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory practices. |
Uncategorized Items - fbiz-2024
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 139,510,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 102,682,000 |