Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 25, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BKGM | ||
Entity Registrant Name | BankGuam Holding Company | ||
Entity Central Index Key | 0001527383 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 9,721,378 | ||
Entity Public Float | $ 48,386,283 | ||
Entity File Number | 000-54483 | ||
Entity Tax Identification Number | 66-0770448 | ||
Entity Address, Address Line One | 111 W Chalan Santo Papa | ||
Entity Address, City or Town | Hagåtña | ||
Entity Address, Country | GU | ||
Entity Address, Postal Zip Code | 96910 | ||
City Area Code | 671 | ||
Local Phone Number | 472-5300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | GU | ||
Title of 12(g) Security | Common Stock, $0.2083 par value per share | ||
ICFR Auditor Attestation Flag | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement relating to its 2022 annual meeting of shareholders (the “2022 Proxy Statement”) are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2022 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Auditor Firm ID | 23 | ||
Auditor Name | Baker Tilly US, LLP | ||
Auditor Location | San Diego, California |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 36,660 | $ 42,875 |
Interest bearing deposits in banks | 520,743 | 244,753 |
Total cash and cash equivalents | 557,403 | 287,628 |
Restricted cash | 150 | 150 |
Investment in unconsolidated subsidiary | 7,719 | |
Investment securities available-for-sale, at fair value | 499,366 | 510,111 |
Investment securities held-to-maturity, at amortized cost (Fair Value $310,372 at 12/31/2021 and $46,911 at 12/31/2020) | 312,294 | 46,584 |
Federal Home Loan Bank stock, at cost | 2,814 | 2,335 |
Loans, net of allowance for loan losses ($34,408 at 12/31/2021 and $34,805 at 12/31/2020) | 1,283,690 | 1,392,722 |
Accrued interest receivable | 6,715 | 8,068 |
Premises and equipment, net | 20,802 | 19,921 |
Goodwill | 13,014 | 783 |
Intangible assets | 10,720 | |
Other assets | 84,620 | 76,340 |
Total assets | 2,791,588 | 2,352,361 |
Deposits: | ||
Non-interest bearing | 981,537 | 770,037 |
Interest bearing | 1,551,694 | 1,348,807 |
Total deposits | 2,533,231 | 2,118,844 |
Accrued interest payable | 46 | 77 |
Subordinated debt, net | 34,400 | 14,777 |
Other liabilities | 43,162 | 41,607 |
Total liabilities | 2,610,839 | 2,175,305 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Common stock $0.2083 par value; 48,000 shares authorized; 9,770 and 9,734 shares issued and 9,721 and 9,702 shares outstanding at 12/31/2021 and 12/31/2020, respectively | 2,033 | 2,029 |
Preferred stock $100 par value; 300 shares authorized; 9.8 shares issued and outstanding at 9/30/2021 and 12/31/2020, respectively | 980 | 980 |
Additional paid-in capital, Common stock | 24,910 | 24,777 |
Additional paid-in capital, Preferred stock | 8,803 | 8,803 |
Retained earnings | 153,740 | 137,646 |
Accumulated other comprehensive (loss) income | (16,721) | 3,111 |
Non-controlling interest | 7,294 | |
Common stock in treasury, at cost (32 shares) | (290) | (290) |
Total stockholders’ equity | 180,749 | 177,056 |
Total liabilities and stockholders’ equity | $ 2,791,588 | $ 2,352,361 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Investment securities held-to-maturity, Fair Value | $ 310,372 | $ 46,911 |
Loans, net of allowance for loan losses | $ 34,408 | $ 34,805 |
Common stock, par value | $ 0.2083 | $ 0.2083 |
Common stock, shares authorized | 48,000,000 | 48,000,000 |
Common stock, shares issued | 9,770,000 | 9,734,000 |
Common stock, shares outstanding | 9,721,000 | 9,702,000 |
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, shares authorized | 300,000 | 300,000 |
Preferred stock, shares issued | 9,800 | 9,800 |
Preferred stock, shares outstanding | 9,800 | 9,800 |
Common stock in treasury, shares | 32,000 | 32,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | ||
Loans | $ 71,686 | $ 77,151 |
Investment securities | 10,042 | 7,057 |
Deposits with banks | 774 | 559 |
Total interest income | 82,502 | 84,767 |
Interest expense: | ||
Savings deposits | 433 | 1,242 |
Time deposits | 34 | 72 |
Other borrowed funds | 1,443 | 955 |
Total interest expense | 1,910 | 2,269 |
Net interest income | 80,592 | 82,498 |
Provision for loan losses | 2,150 | 10,358 |
Net interest income, after provision for loan losses | 78,442 | 72,140 |
Non-interest income: | ||
Service charges and fees | 11,842 | 6,317 |
Gains on sale of investment securities | 323 | 265 |
Income from merchant services, net | 2,946 | 1,984 |
Cardholders income, net | 4,387 | 2,164 |
Trustee fees | 670 | 1,695 |
Other income | 7,759 | 3,967 |
Total non-interest income | 27,927 | 16,392 |
Non-interest expense: | ||
Salaries and employee benefits | 38,975 | 35,754 |
Occupancy | 8,663 | 8,503 |
Equipment and depreciation | 14,486 | 11,811 |
Insurance | 1,973 | 1,918 |
Telecommunications | 1,588 | 1,455 |
FDIC assessment | 2,155 | 1,402 |
Professional services | 2,597 | 1,974 |
Contract services | 1,726 | 1,891 |
Other real estate owned | (599) | 71 |
Stationery and supplies | 371 | 502 |
Training and education | 719 | 304 |
General, administrative and other | 7,621 | 6,991 |
Total non-interest expense | 80,275 | 72,576 |
Income before income taxes | 26,094 | 15,956 |
Income tax expense | 5,095 | 3,464 |
Net income | 20,999 | 12,492 |
Net income attributable to noncontrolling interest | 498 | |
Net income available to BankGuam Holding Company | 20,501 | 12,492 |
Preferred stock dividend | (520) | (548) |
Net income attributable to common stockholders | $ 19,981 | $ 11,944 |
Earnings per common share (EPS): | ||
Basic and diluted EPS | $ 2.06 | $ 1.23 |
Dividends declared per common share | $ 0.40 | $ 0.40 |
Basic and diluted weighted average common shares | 9,719 | 9,685 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 20,999 | $ 12,492 |
Other comprehensive income: | ||
Unrealized holding (loss) gain on available-for-sale securities arising during the period, net of tax | (23,452) | 4,448 |
Reclassification for gain realized on available-for- sale securities | (272) | (265) |
Amortization of post-transfer unrealized holding loss on held-to-maturity securities during the period, net of tax | 3,892 | 255 |
Total other comprehensive (loss) income | (19,832) | 4,438 |
Total comprehensive income | $ 1,167 | $ 16,930 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital - Common [Member] | Additional Paid-in Capital - Preferred [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Beginning Balances at Dec. 31, 2019 | $ 164,243 | $ 2,023 | $ 980 | $ 24,478 | $ 8,803 | $ 129,576 | $ (1,327) | $ (290) | |
Beginning Balance, Shares at Dec. 31, 2019 | 9,672 | ||||||||
Comprehensive income: | |||||||||
Net income | 12,492 | 12,492 | |||||||
Change in accumulated other comprehensive income: | |||||||||
Unrealized gain on available-for-sale securities | 4,438 | 4,438 | |||||||
Common stock issued under Employee Stock Purchase Plan & Service Awards | 305 | $ 6 | 299 | ||||||
Common stock issued under Employee Stock Purchase Plan & Service Awards, Shares | 31 | ||||||||
Cash dividends on common stock | (3,874) | (3,874) | |||||||
Cash dividends on preferred stock | (548) | (548) | |||||||
Ending Balances at Dec. 31, 2020 | 177,056 | $ 2,029 | 980 | 24,777 | 8,803 | 137,646 | 3,111 | (290) | |
Ending Balance, Shares at Dec. 31, 2020 | 9,702 | ||||||||
Noncontrolling interest in connection with acquisition of ASC | 7,424 | $ 7,424 | |||||||
Comprehensive income: | |||||||||
Net income | 20,999 | 20,501 | 498 | ||||||
Change in accumulated other comprehensive income: | |||||||||
Unrealized gain on available-for-sale securities | (19,832) | (19,832) | |||||||
Common stock issued under Employee Stock Purchase Plan & Service Awards | 353 | $ 8 | 345 | ||||||
Common stock issued under Employee Stock Purchase Plan & Service Awards, Shares | 36 | ||||||||
Return of capital from stocks owned by subsidiary | (198) | $ (4) | (212) | 18 | |||||
Return of capital from stocks owned by subsidiary, shares | (18) | ||||||||
Cash dividends on common stock | (4,534) | (3,888) | (646) | ||||||
Cash dividends on preferred stock | (519) | (519) | |||||||
Ending Balances at Dec. 31, 2021 | $ 180,749 | $ 2,033 | $ 980 | $ 24,910 | $ 8,803 | $ 153,740 | $ (16,721) | $ (290) | $ 7,294 |
Ending Balance, Shares at Dec. 31, 2021 | 9,721 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 20,999 | $ 12,492 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,150 | 10,358 |
Depreciation | 4,640 | 3,945 |
Amortization of debt issuance costs | 47 | 26 |
Amortization of fees, discounts and premiums | 322 | 1,225 |
Gain on sales of other real estate owned, net | 121 | |
Proceeds from sales of loans held for sale | 26,329 | 31,534 |
Origination of loans held for sale | (26,329) | (31,534) |
Decrease (Increase) in mortgage servicing rights | 102 | (21) |
Gross realized gains on sale of available-for-sale securities | (323) | (265) |
Realized gain (loss) on sale of premises and equipment | 10 | (30) |
Noncash lease expense | 2,735 | 3,485 |
Gain on remeasurement of preexisting interest | (3,391) | |
Net change in operating assets and liabilities: | ||
Accrued interest receivable | 1,353 | (2,487) |
Other assets | (11,050) | 2,628 |
Accrued interest payable | (31) | (41) |
Lease liability | (2,478) | (3,537) |
Other liabilities | 3,449 | 1,100 |
Net cash provided by operating activities | 18,534 | 28,999 |
Cash flows from investing activities: | ||
Acquisition of subsidiary, ASC Trust LLC | (4,624) | |
Purchases of available-for-sale securities | (388,872) | (409,850) |
Purchases of held-to-maturity securities | (28,027) | (21,250) |
Proceeds from sales of available-for-sale securities | 46,993 | 132,014 |
Maturities, prepayments and calls of available-for-sale securities | 58,605 | 148,266 |
Maturities, prepayments and calls of held-to-maturity securities | 36,506 | 24,716 |
Loan originations and principal collections, net | 106,696 | (127,765) |
Income from equity investment in unconsolidated subsidiary | (1,183) | (1,131) |
Dividends received from unconsolidated subsidiary | 1,154 | 855 |
Costs from FHLB stock purchase | (479) | (68) |
Proceeds from sales of other real estate owned | 167 | |
Proceeds from sales of premises and equipment | 11 | 5 |
Purchases of premises and equipment | (4,802) | (4,117) |
Net cash used in investing activities | (178,022) | (258,158) |
Cash flows from financing activities: | ||
Net increase in deposits | 414,387 | 388,938 |
Proceeds from issuance of subordinated debt, net | 19,576 | |
Proceeds from issuance of common stock | 353 | 305 |
Dividends paid | (5,053) | (4,422) |
Net cash provided by financing activities | 429,263 | 384,821 |
Net change in cash, cash equivalents and restricted cash | 269,775 | 155,662 |
Cash, cash equivalents and restricted cash at beginning of period | 287,778 | 132,116 |
Cash, cash equivalents and restricted cash at end of period | 557,553 | 287,778 |
Cash paid during the period for: | ||
Interest | 421 | 1,237 |
Income taxes | 6,514 | 4,996 |
Supplemental disclosure of noncash investing and financing activities: | ||
Net change in unrealized loss on held-to-maturity securities, net of tax | 3,892 | 255 |
Net change in unrealized gain on available-for-sale securities, net of tax | (23,723) | 4,182 |
Transfer of securities from available-for-sale securities | 270,389 | |
Transfer of securities to held-to-maturity securities | (270,389) | |
Other real estate owned transferred from loans, net | $ 42 | |
Acquisition of subsidiary, ASC Trust LLC | $ (769) |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | Note 1 – Nature of Business Organization The accompanying consolidated financial statements include the accounts of BankGuam Holding Company (“Company”) and its wholly-owned subsidiaries, Bank of Guam (“Bank”) and BankGuam Investment Services (“BGIS”) (formerly BankGuam Investment and Insurance Services). The Company is a Guam corporation organized on October 29, 2010, to act as the holding company of the Bank, a Guam banking corporation, a 17-branch bank serving the communities in Guam, the Commonwealth of the Northern Mariana Islands (CNMI), the Federated States of Micronesia (FSM), the Republic of the Marshall Islands (RMI), the Republic of Palau (ROP), and San Francisco, California. BankGuam Investment Services was incorporated in Guam in 2015 and initially capitalized during the first quarter of 2016. During July 2016, the Company executed an agreement to purchase up to 70% of ASC Trust LLC, formerly ASC Trust Corporation. On July 6, 2021, the Company completed its final purchase of 25% of voting common stock of ASC Trust LLC under the agreement, as amended to date, bringing the Company’s ownership of ASC Trust LLC to 70%. See Note 5 under “Investment in Unconsolidated Subsidiary” for additional details. Other than holding the shares of the Bank, BGIS and ASC Trust LLC, the Company conducts no significant activities, although it is authorized, with the prior approval of its principal regulator, the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), to engage in a variety of activities related to the business of banking. Currently, substantially all of the Company’s operations are conducted and substantially all of the assets are owned by the Bank, which accounts for substantially all of our consolidated revenues, expenses and operating income. The Bank provides a variety of financial services to individuals, businesses and governments through its branches. The Bank’s headquarters is located in Hagåtña, Guam. The Bank currently has seven branches in Guam, three in the CNMI, four in the FSM, one in the RMI, one in the ROP, and one in San Francisco, California. The Bank’s primary deposit products are demand deposits, savings and time certificate accounts, and its primary lending products are consumer, commercial and real estate loans. In 2020, the Bank permanently closed the Malesso and Tumon branches, and in 2021 the Bank permanently closed the Dededo, Harmon and Chalan Piao branches. For ease of reference we will sometimes refer to the Company hereinafter as “we”, “us” or “our.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in effect in the United States (“GAAP”), on a basis consistent with prior periods. Certain prior period amounts have been reclassified to conform to current year presentation. The consolidated financial statements include the accounts of BankGuam Holding Company, the Bank, BGIS, and the Bank’s wholly owned subsidiaries, BankGuam Properties, Inc. and BankGuam Insurance Underwriters, Ltd. and IFIT Properties, LLC. It also includes ASC Trust LLC in which the Company has a controlling financial interest. See Note 22 – Acquisitions for more details. All significant intercompany and inter-branch balances and transactions have been eliminated in consolidation. Assets held by the Bank’s Trust Department and its sister corporation, BankGuam Investment Services, and ASC Trust LLC, a subsidiary, in a fiduciary capacity are not assets of the Bank, and, accordingly, are not included in the accompanying consolidated financial statements. The Company evaluated its ownership in ASC Trust LLC after the third and final closing, which brought the Company’s interest in ASC Trust LLC to 70%. The Company determined it has control of ASC Trust LLC in accordance to ASC 810 – Consolidation and accounted for the consolidation in accordance to ASC 805 – Business Combinations at December 31, 2021. The Company’s investment in ASC Trust LLC was accounted for under the equity method of accounting at December 31, 2020. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the periods presented. Actual results could differ from those estimates. Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable and other short‑term borrowings. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand and balances due from banks, Federal Funds sold, cash items in transit and interest bearing deposits with other banks. The Bank is required by the Federal Reserve System to maintain cash reserves against certain of its deposit accounts. At December 31, 2021 and 2020, the required combined reserves totaled zero for both comparative periods. On March 15, 2020, the Federal Reserve Board reduced the reserve requirement ratios to zero percent effective March 26, 2020. Restricted Cash Interest-bearing deposits in banks that mature within one year are carried at cost. $150 thousand of these deposits are held by the Bank jointly under the names of Bank of Guam and the Guam Insurance Commissioner, and serve as a bond for the Bank of Guam Trust Department. Investment Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity,” and are recorded at amortized cost. Securities not classified as held-to-maturity, including equity securities with readily determinable fair value, are classified as “available-for-sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Bank does not hold securities for trading purposes. Declines in the fair value of securities below their cost that are other than temporary are reflected in earnings as realized losses. In determining other-than-temporary losses, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment, and is based on the information available to management at the time such a determination is made. Federal Home Loan Bank Stock The Bank is required to hold non-marketable equity securities, comprised of Federal Home Loan Bank of Des Moines (“FHLB”) stock, as a condition of membership. These securities are accounted for at cost, which equals par or redemption value. Ownership is restricted and there is no market for these securities. These securities are redeemable at par by the issuing government supported institutions. The primary factor supporting the carrying value is the commitment of the FHLB to perform its obligations, which includes providing credit and other services to the Bank. Mortgage Servicing Rights (MSR) Mortgage servicing assets, included in other assets in the consolidated statements of financial condition, are recognized separately when rights are acquired through the sale of mortgage loans. Under the servicing assets and liabilities accounting guidance in ASC Topic 860, “ Transfers and Servicing Loans Held for Investment Loans held for investment generally are reported at their outstanding unpaid principal balances, adjusted for charge-offs, an allowance for loan losses, and any deferred fees or costs on the originated loans, as well as unamortized premiums or discounts on purchased loans, except for certain purchased loans that fall under the scope of Accounting Standards Codification (ASC) Topic 310-30, “ Accounting for Loans and Debt Securities Acquired with Deteriorated Credit Quality Interest income is accrued on the unpaid principal balance of loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized as income using the effective interest method over the contractual life of the loans. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Credit card loans and other unsecured consumer loans are typically charged off no later than when they are 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged-off are reversed against current period interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Loan Origination Fees and Costs All loan origination fees and related direct costs are deferred and amortized to interest income as an adjustment to yield over the respective lives of the loans using the effective interest method, except for loans that are revolving or short-term in nature for which the straight line method is used, which approximates the interest method. Allowance for Loan Losses, Impaired Loans and Troubled Debt Restructurings The allowance for loan losses is established as losses are estimated to be likely, and is funded through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is first determined by analyzing all classified loans (Substandard and Doubtful) in non-accrual for loss exposure and establishing specific reserves, as needed. ASC 310-10 defines loan impairment as the existence of uncertainty concerning collection of all principal and interest per the contractual terms of a loan. For collateral-dependent loans, impairment is typically measured by comparing the loan amount to the fair value of collateral, less costs to sell, with a specific reserve established for the “shortfall” amount. Other methods can be used in estimating impairment (market price or present value of expected future cash flows discounted at the loan’s original interest rate). The allowance for loan losses is management’s estimate of credit losses inherent in the loan portfolio at the balance sheet date. The Company has established a process to determine the appropriateness of the allowance for credit losses that assesses the losses inherent in the loan portfolio. The Company develops and documents its allowance methodology at the portfolio segment level – commercial loan, residential mortgage and consumer loan portfolios. While portions of the allowance are attributable to the respective commercial, residential mortgage and consumer portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Bank will grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring (TDR). These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral, if applicable. For modifications where principal is forgiven, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs, including loans in trial payment periods (trial modifications), are considered impaired loans. Other than resolutions such as foreclosures, the Bank may remove loans held for investment from TDR classification, but only if they have been refinanced or restructured at market terms and qualify as a new loan. Loans Held for Sale In its normal course of business, the Bank originates mortgage loans held for sale to the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). The Bank has elected to measure its residential mortgage loans held for sale at the lower of cost or market. Origination fees and costs are recognized in earnings at the time of origination for newly originated loans held for sale, and the loans are sold to Freddie Mac at par. The Bank recognizes gains on the sale of loans sold to Freddie Mac only to the extent of MSRs retained in such sales. During the years ended December 31, 2021 and 2020, the Bank originated and sold approximately $26.3 million and $31.5 million, respectively, of the above-mentioned loans. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded as off-balance sheet items when the commitment is made, then recorded as balance sheet items if and when funded (See Note 15). Premises and Equipment Premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the related assets. Depreciation expense has been computed principally using estimated lives of 15 to 40 years for premises and 3 to 10 years for furniture and equipment. Leasehold improvements are depreciated over the estimated lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Construction-in-progress consists of accumulated direct and indirect costs associated with the Bank’s construction of premises and the purchase of equipment that has not yet been placed in service and, accordingly, has not yet been subjected to depreciation. Such assets begin depreciation over their estimated useful lives when completed and placed in service. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than their carrying amount. In that event, the Bank records a loss for the difference between the carrying amount and the estimated fair value of the asset based on appraised values or quoted prices. Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” Other Real Estate Owned Properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the fair value of the property, reduced by estimated selling costs. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less the estimated cost to sell. Other real estate owned is estimated using the appraised value of the underlying collateral, discounted as necessary due to management’s estimates of changes in economic conditions, less estimated costs to sell. A valuation allowance is increased by provisions charged to earnings. Subsequent write-downs, income and expenses incurred in connection with holding such assets, and gains and losses realized from the sale of such assets, are charged to the valuation allowance. Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine the fair value of the intangible assets acquired. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other acquisition-related costs are expenses when incurred. Goodwill Goodwill is recorded in business combinations under the purchase method of accounting when the purchase price is greater than the fair value of net assets, including identifiable intangible assets. The Bank will assess goodwill for impairment at a reporting unit level on an annual basis or more frequently in certain circumstances. The Bank has the option of performing a qualitative assessment of goodwill, or to bypass the qualitative test and proceed directly to a quantitative test. If the Bank performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that a reporting unit’s fair value is greater than its carrying amount, quantitative tests are not required. However, if it is determined it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then the Bank completes a quantitative assessment to determine if there is goodwill impairment. The Bank can apply various quantitative valuation methodologies, including discounted cash flow and earnings multiple approaches, to determine the estimated fair value, which is compared to the carrying value of each reporting unit. If the fair value is less than the carrying amount, an additional test is required to measure the amount of impairment. Based on the Bank’s year-end evaluation, no goodwill impairment was recorded. Asset-Based Fees Fees to manage retirement plans are paid for by Plan Sponsors (the customers) by a combination of asset-based fees and fixed-dollar contracts. Services include plan design, document management, plan set-up, trustee services, recordkeeping and administration of employee communication and individual participant services, plan and participant level reporting, and compliance and regulatory services, among others. The Company recognizes revenue from rendering these services on a quarterly basis. Income Taxes Income taxes represent taxes recognized under laws of the Government of Guam, which generally conform to U.S. income tax laws. Foreign income taxes result from payments of taxes with effective rates ranging from 2% to 5% of gross income in the FSM, the RMI and the ROP to their respective government jurisdictions. U.S. Federal, California and the Commonwealth of the Northern Mariana Islands income taxes are reflected as foreign taxes for financial reporting purposes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid for the period by applying the provisions of the enacted tax law to the taxable income. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term, “more likely than not,” means a likelihood of more than 50 percent; the terms, “examined,” and, “upon examination,” also include resolution of related appeals or litigation processes, if any. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. The Company recognizes interest and penalties on income taxes as a component of income tax expense. Earnings Per Common Share Basic earnings per share represent income available to common stockholders (after deducting dividends on preferred stock) divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may have been issued by the Company relate solely to outstanding stock options, and are determined using the treasury stock method. Fair Value of Financial Instruments/Fair Value Option Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 18. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect these estimates. In addition, the fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments and written loan commitments not previously carried at fair value. The Company and the Bank have elected the fair value option for its mortgage servicing rights. The election was made to better reflect the underlying economics and to mitigate operational complexities in risk management activities. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when, (i) the assets have been isolated from the Bank – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Contingencies From time to time, the Company may become involved in disputes, litigation and other legal actions. In such event, the Company estimates the range of liability related to pending litigation where the amount and range of loss can be estimated and information available prior to the issuance of financial statements indicates such loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum amount in the range. COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The declaration of a global pandemic indicates that almost all public commerce and related business activities may be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Company’s customers operate and, in some instances, impaired their ability to fulfill their financial obligations to the Company. On March 3, 2020, the Federal Open Market Committee reduced the target range for federal funds by 50 basis points to 1.00% - 1.25%. This rate was further reduced to a target range of 0% - 0.25% on March 16, 2020. In September 2020, the Federal Open Market Committee announced that it will allow inflation to exceed 2% to support employment, and its most recent forecasts anticipate rate hikes in 2022; however, there can be no assurance as to when interest rates will rise. These reductions in interest rates and other effects of the COVID-19 outbreak had an adverse affect on the Company’s financial condition and results of operations. As a result of the spread of the COVID-19 coronavirus, economic uncertainties have negatively impacted net interest income and noninterest income. In the United States, the government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020. The CARES Act, among other things, created a $670 billion loan program (the “Paycheck Protection Program” or the “PPP”) for fully guaranteed loans (which may be forgiven) to small businesses for certain qualifying expenses. The PPP was modified on May 31, 2021. Due to the Company’s concerns for the health and safety of its customers and employees, in March 2020 the Bank temporarily closed seven of its branches in Guam and one of its branches in CNMI, and limited the number of customers allowed to be in its remaining facilities at any one time to 50. The Bank re-opened four of its branches in Guam, while four of the branches remain closed. Currently one branch in Guam remains closed due to renovations, and will reopen upon completion. The Bank continues to provide a secure telecommuting program for those personnel who are able to perform their responsibilities remotely, the computer hardware and software needed to support those tasks, and established teleconferencing capabilities to reduce the number of people in attendance at all of its larger group meetings. In recognition of the potential difficulties that may be faced by our commercial and consumer customers, the Bank initiated a temporary program in March 2020 under which affected customers may have their loan payments deferred or otherwise adjusted. This program applied to both commercial and consumer loans for a period of 90 days, and expired on June 30, 2020. Although these actions taken in response to the heightened risks posed by COVID-19 are costly, it is not possible at the time of this filing to estimate the final consequences of these impacts on economic performance or the results of the Company’s operations, its financial condition or its cash flows. However, despite these potential disruptions the Company has not materially changed its accounting policies or procedures due to COVID-19. The Bank has been transitioning to a digital platform for several years. The COVID-19 pandemic has accelerated the adoption by our customers to convert to our digital channels. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued (See Note 24). The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements. The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before financial statements are available to be issued. The Company has evaluated subsequent events through the date that these consolidated financial statements are being filed with the Securities and Exchange Commission. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements None. Recently Issued but Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)” The Company was preparing to implement ASU 2016-13 when it was scheduled to become effective January 1, 2020, but the FASB announced on October 16, 2019, a delay of the effective date for smaller reporting companies until January 1, 2023. Management expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the first reporting period in which the new standard is effective, but cannot yet estimate the magnitude of the adjustment or the overall impact of the new guidance on the Company’s financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting ," which provides temporary optional expedients to ease the financial reporting burdens of the expected market transition from London Interbank Offered Rate (LIBOR) to an alternative reference rate such as Secured Overnight Financing Rate (SOFR). The guidance was effective upon issuance and generally can be applied through December 31, 2022. In December 2021, t he Company adopted SOFR as a replacement to LIBOR. As of January 1, 2022, the Bank did not originate loans indexed to LIBOR nor enter into modifications which create new LIBOR exposure. The Company believes the adoption of this guidance will not have a material impact on the consolidated financial statements . |
Interest-Bearing Deposits and R
Interest-Bearing Deposits and Restricted Cash | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Interest-Bearing Deposits and Restricted Cash | Note 4 – Interest-Bearing Deposits and Restricted Cash The Company had $520.9 million and $244.9 million in interest bearing deposits, including restricted cash, at other financial institutions at December 31, 2021 and 2020, respectively. The weighted average percentage yields on these deposits were 0.13% and 0.10% at December 31, 2021 and 2020, respectively. This significant increase is the result of the various funds received from the CARES Act, which were held in cash balances with the Federal Reserve Bank at the end of the reporting period. Interest bearing deposits with financial institutions can be withdrawn by the Bank on demand, and are considered cash equivalents for purposes of the consolidated statements of financial condition and cash flows. At December 31, 2021 and 2020, we had $150 thousand each, in restricted cash held in time deposits that were scheduled to mature within one year, of which $150 thousand are held by the Bank jointly under the names of Bank of Guam and the Guam Insurance Commissioner, and serve as a bond for the Bank of Guam Trust Department. The weighted average percentage yields on these restricted cash deposits were 0.02% and 0.03% at December 31, 2021 and 2020, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 5 – Investment Securities The amortized cost and estimated fair value of investment securities, with gross unrealized gains and losses, were as follows: December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities Available-for-Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ 114,969 $ - $ (4,007 ) $ 110,962 U.S. government agency pool securities 21,106 2 (247 ) 20,861 U.S. government agency or GSE residential mortgage-backed securities 369,419 1,957 (3,833 ) 367,543 Total $ 505,494 $ 1,959 $ (8,087 ) $ 499,366 Securities Held-to-Maturity U.S. government agency and government sponsored enterprise (GSE) debt securities $ 276,188 $ - $ (1,621 ) $ 274,567 U.S. government agency pool securities 3,028 8 (45 ) 2,991 U.S. government agency or GSE residential mortgage-backed securities 33,078 105 (369 ) 32,814 Total $ 312,294 $ 113 $ (2,035 ) $ 310,372 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities Available-for-Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ 300,440 $ 54 $ (2,348 ) $ 298,146 U.S. government agency pool securities 28,783 29 (206 ) 28,606 U.S. government agency or GSE residential mortgage-backed securities 176,912 6,447 - 183,359 Total $ 506,135 $ 6,530 $ (2,554 ) $ 510,111 Securities Held-to-Maturity U.S. government agency and government sponsored enterprise (GSE) debt securities $ 33,221 $ 93 $ (15 ) $ 33,299 U.S. government agency pool securities 4,515 15 (36 ) 4,494 U.S. government agency or GSE residential mortgage-backed securities 8,848 280 (10 ) 9,118 Total $ 46,584 $ 388 $ (61 ) $ 46,911 At December 31, 2021 and 2020, investment securities with a carrying value of $558.8 million and $360.6 million, respectively, were pledged to secure various government deposits and other government requirements. Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the years ended December 31, 2021 and 2020, are shown below: Year Ended December 31, 2021 2021 2020 Proceeds from sales $ 46,993 $ 132,014 Gross realized gains from sales $ 272 $ 265 Gross realized losses from sales $ - $ - For the years ended December 31, 2021 The amortized cost and estimated fair value of investment securities by contractual maturity at December 31, 2021 and 2020 December 31, 2021 Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 105 $ 105 $ - $ - Due after one but within five years 8,331 8,377 1,228 1,246 Due after five but within ten years 151,682 148,389 62,925 62,257 Due after ten years 345,376 342,495 248,141 246,869 Total $ 505,494 $ 499,366 $ 312,294 $ 310,372 December 31, 2020 Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 5,115 $ 5,121 $ 11,990 $ 12,070 Due after one but within five years 13,255 13,432 2,325 2,358 Due after five but within ten years 129,708 131,340 26,214 26,348 Due after ten years 358,057 360,218 6,055 6,135 Total $ 506,135 $ 510,111 $ 46,584 $ 46,911 Temporarily Impaired Securities The following table indicates the gross unrealized losses and fair value of the Bank’s investments, with unrealized losses that are not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021 and 2020. December 31, 2021 Less Than Twelve Months More Than Twelve Months Total Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Securities Available for Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ (2,824 ) $ 82,145 $ (1,183 ) $ 28,817 $ (4,007 ) $ 110,962 U.S. government agency pool securities (71 ) 5,127 (176 ) 14,743 (247 ) 19,870 U.S. government agency or GSE residential mortgage-backed securities (3,833 ) 290,573 - - (3,833 ) 290,573 Total $ (6,728 ) $ 377,845 $ (1,359 ) $ 43,560 $ (8,087 ) $ 421,405 Securities Held to Maturity US government agency and sponsored Agencies (GSE) debt securities $ (1,395 ) $ 159,840 $ (226 ) $ 114,726 $ (1,621 ) $ 274,566 U.S. government agency pool securities (37 ) 1,507 (8 ) 403 (45 ) 1,910 U.S. government agency or GSE residential mortgage-backed securities (362 ) 28,498 (7 ) 529 (369 ) 29,027 Total $ (1,794 ) $ 189,845 $ (241 ) $ 115,658 $ (2,035 ) $ 305,503 December 31, 2020 Less Than Twelve Months More Than Twelve Months Total Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Securities Available for Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ (2,348 ) $ 243,089 $ - $ - $ (2,348 ) $ 243,089 U.S. government agency pool securities (22 ) 3,735 (184 ) 22,672 (206 ) 26,407 Total $ (2,370 ) $ 246,824 $ (184 ) $ 22,672 $ (2,554 ) $ 269,496 Securities Held to Maturity U.S. government agency and government sponsored enterprise (GSE) debt securities $ (15 ) $ 14,985 $ - $ - $ (15 ) $ 14,985 U.S. government agency pool securities - - (36 ) 2,923 (36 ) 2,923 U.S. government agency or GSE residential mortgage-backed securities (10 ) 506 - - (10 ) 506 Total $ (25 ) $ 15,491 $ (36 ) $ 2,923 $ (61 ) $ 18,414 The Bank does not believe that the investment securities that were in an unrealized loss position as of December 31, 2021, which comprised a total of 159 securities, were other than temporarily impaired. Specifically, the 159 securities are comprised of the following: 35 Small Business Administration (SBA) Pool securities, 1 mortgage-backed securities issued by Government National Mortgage Association (GNMA), 38 mortgage-backed securities and 1 agency security issued by Federal National Mortgage Association (FNMA), 26 agency securities issued by Federal Home Loan Bank (FHLB), 21 mortgage-backed securities and 19 agency securities issued by Federal Home Loan Mortgage Corporation (FHLMC), and 18 agency security issued by Federal Farm Credit Banks (FFCB). Total gross unrealized losses were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to changes in the credit quality of the investment securities. The Bank does not intend to sell the investment securities that are in an unrealized loss position and it is not likely that, except as needed to fund our liquidity position, the Bank will be required to sell the investment securities before recovery of their amortized cost bases, which may be at maturity. Investment in Unconsolidated Subsidiary On July 6, 2021, with the approval of the Federal Reserve Bank of San Francisco, the Company used $6.2 million of the proceeds from the subordinated notes totaling $20 million that were issued on June 29, 2021, to acquire an additional 25% of the voting common stock of ASC Trust LLC at the third and final closing, pursuant to the Stock Purchase Agreement (the “Agreement”) dated May 27, 2016, between the Company and David J. John, as amended to date. This transaction brought the Company’s interest in ASC Trust LLC to 70%. The Company evaluated its ownership in ASC Trust LLC after the last transaction in accordance to ASC 810 – Consolidation, and determined that the Company has control over ASC Trust LLC requiring consolidation. See Note 22 – Acquisitions for the details of the accounting treatment of the consolidation in accordance to ASC 805 – Business Combinations. The Company’s Chief Executive Officer serves on the Board of Directors of ASC Trust LLC. Another of the Company’s Board members also serves as a non-minority voting member of an entity that owns 5% of the common stock of ASC Trust LLC. The Agreement contains customary warranties, representations and indemnification provisions. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans | Note 6 – Loans The Bank provides commercial and industrial, commercial mortgage, commercial construction, automobile and other consumer loans in each of the markets it serves. It also offers residential mortgage, home equity and certain U.S. government guaranteed loans in Guam, the Northern Mariana Islands and California. The Bank has two commercial agricultural loans outstanding in Guam. Outstanding loan balances are presented net of unearned income, net deferred loan fees, and unamortized discount and premium totaling $3.2 million at December 31, 2021 and $4.2 million at December 31, 2020. As of December 31, 2021, our 10 largest borrowing relationships totaled $342.6 million in commitments, or approximately 25.9% of our total gross loans compared to $345.0 million, or approximately 24.1% in 2020. The loan portfolio consisted of the following at: December 31, 2021 December 31, 2020 Amount Percent Amount Percent Commercial Commercial & industrial $ 295,835 22.4 % $ 366,942 25.6 % Commercial mortgage 699,269 52.9 % 685,138 47.9 % Commercial construction 23,588 1.8 % 51,785 3.6 % Commercial agriculture 592 0.0 % 629 0.0 % Total commercial 1,019,284 77.1 % 1,104,494 77.1 % Consumer Residential mortgage 135,377 10.2 % 127,371 8.9 % Home equity 2,232 0.2 % 2,076 0.1 % Automobile 18,220 1.4 % 19,923 1.4 % Other consumer loans 1 146,208 11.1 % 177,822 12.5 % Total consumer 302,037 22.9 % 327,192 22.9 % Gross loans 1,321,321 100.0 % 1,431,686 100.0 % Deferred loan (fees) costs, net (3,223 ) (4,159 ) Allowance for loan losses (34,408 ) (34,805 ) Loans, net $ 1,283,690 $ 1,392,722 1 Comprised of other revolving credit, installment, and overdrafts. Paycheck Protection Program With the passage of the Paycheck Protection Program, or PPP, administered by the Small Business Administration, the Bank is actively participating in assisting its customers with applications for resources through the program. PPP loans have either a two-year five-year Allowance for Loan Losses The allowance for loan losses is evaluated on a regular basis by management, and is based upon management’s periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The portion of the allowance that covers unimpaired loans is based on historical charge-off experience and expected loss, given the default probability derived from the Bank’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. Our loss migration analysis tracks a certain number of quarters of loan loss history and industry loss factors to determine historical losses by classification category for each loan type, except certain consumer loans. These calculated loss factors are then applied to outstanding loan balances for all loans on accrual designated as “Pass,” “Special Mention,” “Substandard” or “Doubtful” (“classification categories”). Additionally, a qualitative factor that is determined utilizing external economic factors and internal assessments is applied to each homogeneous loan pool. We also conduct individual loan review analyses as part of the allowance for loan loss allocation process, applying specific monitoring policies and procedures in analyzing the existing loan portfolios. In December 31, 2021, management adjusted the economic risk factors to incorporate the current economic implications, which includes receding tourism and rising unemployment due to the COVID-19 pandemic. Credit Quality Indicators The Bank uses several credit quality indicators to manage credit risk, including an internal credit risk rating system that categorizes loans into pass, special mention, substandard, doubtful or loss categories. Credit risk ratings are applied individually to those classes of loans that have significant or unique credit characteristics and that benefit from a case-by-case evaluation. These are typically loans to businesses or individuals in the classes which comprise the commercial portfolio segment. Groups of loans that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk-rated and monitored collectively. These are typically loans to individuals in the classes which comprise the consumer portfolio segment. The following are the definitions of the Bank’s credit quality indicators: Pass (A): Exceptional: Essentially risk-free credit. These are loans of the highest quality that pose virtually no risk of loss to the Bank. This includes loans fully collateralized by means of a savings account(s) and time certificate(s) of deposit, and by at least 110% of the loan amount. Borrowers should have strong financial statements, good liquidity and excellent credit. Pass (B): Standard: Multiple “strong sources of repayment.” Loans to strong borrowers with a demonstrated history of financial and managerial performance. Risk of loss is considered to be low. Loans are well structured, with clearly identified primary and readily available secondary sources of repayment. Loans may be secured by an equal amount of funds in a savings account or time certificate of deposit. Loans may be secured by marketable collateral whose value can be reasonably determined through outside appraisals. Very strong cash flow and relatively low leverage. Pass (C): Acceptable: “Good” primary and secondary sources of repayment. Loans to borrowers of average financial strength, stability and management expertise. Borrower should be a well-established individual or company with adequate financial resources to weather short-term fluctuations in the marketplace. Financial ratios and trends are favorable. The loans may be unsecured or supported by non-real estate collateral for which the value is more difficult to determine, reasonable credit risk and requiring an average amount of account officer attention. Unsecured credit is to be of unquestionable strength. Pass (D): Monitor: “Sufficient” primary source of repayment and acceptable secondary source of repayment. Acceptable business or individual credit, but the borrower’s operations, cash flow or financial conditions evidence moderate to average levels of risk. Loans are considered to be collectable in full, but may require a greater-than-average amount of loan officer attention. Borrowers are capable of absorbing normal setbacks without failure. Special Mention: A special mention asset has potential weaknesses that deserve close monitoring. These potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special Mention should neither be a compromise between a pass grade and substandard, nor should it be a “catch all” grade to identify any loan that has a policy exception. Substandard: A substandard asset is inadequately protected by the current sound worth and payment capacity of the obligor or the collateral pledged. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Assets are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Formula Classified: Formula classified loans are all loans and credit cards delinquent 90 days and over which have yet to be formally classified Special Mention, Substandard or Doubtful by the Bank’s Loan Committee. In most instances, the monthly formula total is comprised primarily of residential real estate and consumer loans and credit cards. Commercial loans are typically formally classified by the Loan Committee no later than their 90-day delinquency, and thus usually do not become part of the formula classification. Real estate loans 90 days delinquent are in the foreclosure process and are typically completed within another 60 days, and thus are not formally classified during this period. Doubtful: A loan with weaknesses well enough defined that eventual repayment in full, on the basis of currently existing facts, conditions and values, is highly questionable, even though certain factors may be present which could improve the status of the loan. The probability of some loss is extremely high, but because of certain known factors, which may work to the advantage of strengthening of the assets (i.e. capital injection, perfecting liens on additional collateral, refinancing plans, etc.), its classification as an estimated loss is deferred until its more exact status can be determined. Loss: Loans classified as “Loss” are considered uncollectible, and are either unsecured or are supported by collateral that is of little to no value. As such, their continuance as recorded assets is not warranted. While this classification does not mandate that a loan has no ultimate recovery value, losses should be taken in the period these loans are deemed to be uncollectible. Loans identified as loss are immediately approved for charge off. The Bank may refer loans to outside collection agencies, attorneys, or its internal collection division to continue collection efforts. Any subsequent recoveries are credited to the Allowance for Loan Losses. Set forth below is information regarding gross loan balances and the related allowance for loan losses, by portfolio type, for the years ended December 31, 2021 and 2020. Commercial Residential Mortgages Consumer Total (Dollars in thousands) Year Ended December 31, 2021 Allowance for loan losses: Balance at beginning of period $ 21,213 $ 1,990 $ 11,602 $ 34,805 Charge-offs (115 ) (99 ) (4,736 ) (4,950 ) Recoveries 578 1 1,824 2,403 Provision 1,184 412 554 2,150 Balance at end of period $ 22,860 $ 2,304 $ 9,244 $ 34,408 Allowance balance at end of period related to: Loans individually evaluated for impairment $ 3,510 $ 50 $ 941 $ 4,501 Loans collectively evaluated for impairment 19,350 2,254 8,303 29,907 Ending balance $ 22,860 $ 2,304 $ 9,244 $ 34,408 Loan balances at end of period: Loans individually evaluated for impairment $ 48,459 $ 2,265 $ 1,059 $ 51,783 Loans collectively evaluated for impairment 970,825 135,343 163,370 1,269,538 Ending balance $ 1,019,284 $ 137,608 $ 164,429 $ 1,321,321 Year Ended December 31, 2020 Allowance for loan losses: Balance at beginning of year $ 18,360 $ 1,490 $ 8,020 $ 27,870 Charge-offs (1,069 ) - (4,559 ) (5,628 ) Recoveries 399 - 1,806 2,205 Provision 3,523 500 6,335 10,358 Ending balance $ 21,213 $ 1,990 $ 11,602 $ 34,805 Allowance balance at end of year related to: Loans individually evaluated for impairment $ 3,500 $ 4 $ 1,264 $ 4,768 Loans collectively evaluated for impairment 17,713 1,986 10,338 30,037 Ending balance $ 21,213 $ 1,990 $ 11,602 $ 34,805 Loan balances at end of year: Loans individually evaluated for impairment $ 36,031 $ 2,730 $ 1,343 $ 40,104 Loans collectively evaluated for impairment 1,068,463 126,717 196,402 1,391,582 Ending balance $ 1,104,494 $ 129,447 $ 197,745 $ 1,431,686 The $397 thousand decrease in the allowance for loan losses is primarily due to the improvement in credit quality of the Bank’s loans, the decrease in net charge-offs, the smaller loan portfolio, and the decrease in the specific reserve for consumer loans 0-59 days delinquent, which resulted in a $7.0 million reversal to the provision during the year, and management’s reassessment of economic conditions and prospects. The allowance will change in the future in response to changes in the size, composition and quality of the loan portfolio, as well as periodic reassessments of prospective economic conditions. Impairment is measured on a loan-by-loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral (if the loan is collateral dependent). Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment and are not immediately written-off, but a portion of the allowance is allocated to these loans based on the evaluation. The Bank performs direct write-downs of impaired loans with a charge to the allocated component of the allowance, therefore reducing the allocated component of the reserve to zero at the end of each reporting period. The following table provides a summary of the delinquency status of the Bank’s gross loans by portfolio type: 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Non- Accrual 90 Days and Greater Still Accruing Total Past Due Current Total Loans Outstanding December 31, 2021 Commercial Commercial & industrial $ 56 $ 202 $ 7,338 $ 106 $ 7,702 $ 288,133 $ 295,835 Commercial mortgage 2,540 217 4,622 - 7,379 691,890 699,269 Commercial construction - - - - - 23,588 23,588 Commercial agriculture - - - - - 592 592 Total commercial 2,596 419 11,960 106 15,081 1,004,203 1,019,284 Consumer Residential mortgage 2,194 1,236 267 77 3,774 131,603 135,377 Home equity - - - - - 2,232 2,232 Automobile 407 162 - 41 610 17,610 18,220 Other consumer 1 2,037 1,024 69 866 3,996 142,212 146,208 Total consumer 4,638 2,422 336 984 8,380 293,657 302,037 Total $ 7,234 $ 2,841 $ 12,296 $ 1,090 $ 23,461 $ 1,297,860 $ 1,321,321 December 31, 2020 Commercial Commercial & industrial $ 13,712 $ 3,857 $ 8,119 $ 387 $ 26,075 $ 340,867 $ 366,942 Commercial mortgage 9,183 36,562 913 471 47,129 638,009 685,138 Commercial construction - - - - - 51,785 51,785 Commercial agriculture - - - - - 629 629 Total commercial 22,895 40,419 9,032 858 73,204 1,031,290 1,104,494 Consumer Residential mortgage 4,758 1,833 1,147 129 7,867 119,504 127,371 Home equity - - - - - 2,076 2,076 Automobile 580 184 - 43 807 19,116 19,923 Other consumer 1 3,472 1,502 108 1,096 6,178 171,644 177,822 Total consumer 8,810 3,519 1,255 1,268 14,852 312,340 327,192 Total $ 31,705 $ 43,938 $ 10,287 $ 2,126 $ 88,056 $ 1,343,630 $ 1,431,686 1 Comprised of other revolving credit, installment loans, and overdrafts. Generally, the accrual of interest on a loan is discontinued when principal or interest payments become more than 90 days past due, unless management believes the loan is adequately collateralized and it is in the process of collection. When a loan is placed on non-accrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Non-accrual loans may be restored to accrual status when principal and interest become current and full repayment is expected. The following table provides information as of December 31, 2021 and 2020, with respect to loans on non-accrual status, by portfolio type: December 31, 2021 2020 (Dollars in thousands) Non-accrual loans: Commercial Commercial & industrial $ 7,610 $ 8,750 Commercial mortgage 8,148 6,618 Total commercial 15,758 15,368 Consumer Residential mortgage $ 1,660 $ 2,575 Other consumer 1 152 196 Total consumer 1,812 2,771 Total non-accrual loans $ 17,570 $ 18,139 1 Comprised of other revolving credit, installment loans, and overdrafts. The Company classifies its loan portfolios using internal credit quality ratings, as discussed above under Allowance for Loan Losses December 31, 2021 2020 (Dollars in thousands) Pass: Commercial & industrial $ 266,300 $ 314,201 Commercial mortgage 642,835 626,477 Commercial construction 23,588 51,785 Commercial agriculture 592 629 Residential mortgage 133,176 123,017 Home equity 2,232 2,076 Automobile 18,179 19,880 Other consumer 145,190 176,522 Total pass loans 1,232,092 1,314,587 Special Mention: Commercial & industrial 9,760 6,643 Commercial mortgage 11,051 16,285 Residential mortgage - 1,695 Total special mention loans 20,811 24,623 Substandard: Commercial & industrial 12,645 37,920 Commercial mortgage 44,661 41,654 Residential mortgage 613 433 Other consumer 2 7 Total substandard loans 57,921 80,014 Formula Classified: Residential mortgage 1,588 2,226 Automobile 41 43 Other consumer 1,016 1,293 Total formula classified loans 2,645 3,562 Doubtful: Commercial & industrial 7,130 8,178 Commercial mortgage 722 722 Total doubtful loans 7,852 8,900 Total outstanding loans, gross $ 1,321,321 $ 1,431,686 Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impaired loans include loans that are in non-accrual status and other loans that have been modified in Troubled Debt Restructurings (TDRs), where economic concessions have been granted to borrowers experiencing financial difficulties. These concessions typically result from the Company’s loss mitigation actions, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions taken with the intention to maximize collections. The following table sets forth information regarding non-accrual loans and restructured loans, at December 31, 2021 and 2020: December 31, 2021 2020 (Dollars in thousands) Impaired loans: Restructured loans: Non-accruing restructured loans $ 6,083 $ 4,718 Accruing restructured loans 32,595 15,937 Total restructured loans 38,678 20,655 Other impaired loans 13,105 19,450 Total impaired loans $ 51,783 $ 40,105 Impaired loans less than 90 days delinquent and included in total impaired loans $ 38,398 $ 27,664 The table below contains additional information with respect to impaired loans, by portfolio type, for the years ended December 31, 2021 and 2020: Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized (Dollars in thousands) December 31, 2021, With no related allowance recorded: Commercial & industrial $ 11,150 $ 11,150 $ 75,812 $ 56 Commercial mortgage 36,935 37,182 38,456 149 Residential mortgage 612 612 221 - Other consumer 2 2 4 - Total impaired loans with no related allowance $ 48,699 $ 48,946 $ 114,493 $ 205 December 31, 2021, With a related allowance recorded: Commercial & industrial $ 262 $ 262 $ 116 $ 2 Commercial mortgage 112 127 75 - Residential mortgage 1,653 1,663 1,921 1 Automobile 41 41 29 1 Other consumer 1,016 1,016 1,253 8 Total impaired loans with a related allowance $ 3,084 $ 3,109 $ 3,394 $ 12 December 31, 2020, With no related allowance recorded: Commercial & industrial $ 23,745 $ 23,745 $ 23,986 $ 102 Commercial mortgage 11,954 12,201 9,030 45 Residential mortgage 432 432 692 - Other consumer 7 7 7 - Total impaired loans with no related allowance $ 36,138 $ 36,385 $ 33,715 $ 147 December 31, 2020, With a related allowance recorded: Commercial & industrial $ 294 $ 607 $ 282 $ 4 Commercial mortgage 39 54 95 - Residential mortgage 2,298 2,308 2,887 (27 ) Automobile 43 43 71 - Other consumer 1,293 1,292 884 27 Total impaired loans with a related allowance $ 3,967 $ 4,304 $ 4,219 $ 4 Impairment is measured on a loan-by-loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The Bank performs direct write-downs of impaired loans with a charge to the allocated component of the allowance, thereby reducing the allocated component of the reserve to zero at the end of each reporting period. Troubled Debt Restructurings The Bank had $38.7 million and $20.7 million of troubled debt restructurings (TDRs) as of December 31, 2021 and 2020, respectively. The restructured loans recorded by the Bank represent financing receivables, modified for the purpose of alleviating temporary impairments to the borrower’s financial condition. The modifications that the Bank has extended to borrowers have come in the form of a change in the amortization terms, a reduction in the interest rate, interest only payments and, in limited cases, a concession to the outstanding loan balance. The restructuring plans between the borrower and Bank are designed to provide a bridge for the cash flow shortfalls in the near term. As the borrower works through the near-term issues, in most cases, the original contractual terms will be reinstated. The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined by the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. In an effort to constructively work with borrowers affected by the COVID-19 pandemic, the Bank initiated a temporary program in March 2020 to allow for 90-day deferrals for residential mortgage and commercial loans upon request from the borrower, and a 90-day deferral for all consumer and automobile loans. The Bank did not identify consumer loans that were deferred and were over 30 days delinquent as TDRs; however the Bank identified a specific reserve for these loans totaling $3.0 million at December 31, 2021. The Bank also identified a specific reserve for consumer loans over 90 days that were deferred and increased its environmental factors for the reserve to account for the effects of the COVID-19 pandemic. Number of Pre- Modification Outstanding Recorded Principal Post- Modification Outstanding Recorded Outstanding Balance Loans Investment Modifications Investment December 31, 2021 December 31, 2020 Performing Residential mortgage - $ - $ - $ - $ - $ - Commercial & industrial 10 3,974 - 3,974 3,696 - Commercial mortgage 1 28,899 - 28,899 28,899 15,936 Consumer - - - - - - Total performing 11 32,873 - 32,873 32,595 15,936 Nonperforming Commercial & industrial 2 275 - 275 142 - Commercial mortgage 9 8,509 - 8,509 5,941 4,671 Consumer - - - - - 48 Total nonperforming 11 8,784 - 8,784 6,083 4,719 Total Troubled Debt Restructurings (TDRs) 22 $ 41,657 $ - $ 41,657 $ 38,678 $ 20,655 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 7 – Premises and Equipment A summary of premises and equipment at December 31, 2021 and 2020 follows: December 31, 2021 Cost Accumulated Depreciation Net Book Value Buildings $ 29,281 $ (22,797 ) $ 6,484 Furniture and equipment 28,494 (20,135 ) 8,359 Automobiles and mobile facilities 2,071 (1,223 ) 848 Leasehold improvements 6,520 (4,241 ) 2,279 66,366 (48,396 ) 17,970 Construction in progress 2,832 - 2,832 $ 69,198 $ (48,396 ) $ 20,802 December 31, 2020 Cost Accumulated Depreciation Net Book Value Buildings $ 28,952 $ (22,001 ) $ 6,951 Furniture and equipment 27,688 (21,173 ) 6,515 Automobiles and mobile facilities 1,721 (1,182 ) 539 Leasehold improvements 6,841 (4,609 ) 2,232 65,202 (48,965 ) 16,237 Construction in progress 3,684 - 3,684 $ 68,886 $ (48,965 ) $ 19,921 For the years ended December 31, 2021 and 2020, depreciation expense was $4.6 million and $3.9 million, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 8 – Other Assets A summary of other assets at December 31, 2021 and 2020, follows: December 31, 2021 2020 Bank Owned Life Insurance $ 29,890 $ 28,798 Prepaid income tax 482 Prepaid expenses 9,130 6,919 Deferred tax asset, net (Note 12) 14,003 8,543 Mortgage servicing rights (Note 18) 1,581 1,683 Right-of-use asset (Note 19) 23,379 26,113 Accounts receivable 5,069 3,108 Other 1,086 1,176 Total other assets $ 84,620 $ 76,340 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Note 9 – Deposits A summary of deposits at December 31, 2021 and 2020, follows: December 31, 2021 2020 (Dollars in Thousands) Non-interest bearing deposits $ 981,537 $ 770,037 Interest bearing deposits: Demand deposits 401,753 322,933 Regular savings 801,101 754,042 Time deposits: $250,000 or more 14,201 14,201 Less than $250,000 15,696 14,569 Other interest bearing deposits 318,943 243,062 Total interest bearing deposits 1,551,694 1,348,807 Total Deposits $ 2,533,231 $ 2,118,844 At December 31, 2021, the scheduled maturities of time deposits were as follows: Years ending December 31, 2022 $ 26,322 2023 1,091 2024 1,318 2025 295 2026 and thereafter 871 Total $ 29,897 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 10 – Borrowings Federal Reserve Discount Window At December 31, 2021 and 2020 the Bank had investment securities with a market value of $18.5 million and $18.4 million, respectively, pledged to the FRB Discount Window supporting a borrowing capacity of $17.8 million and $17.9 million, respectively, based on an average Federal Reserve margin of 96%. The Bank had no outstanding borrowings through the discount window at December 31, 2021 or 2020. Federal Home Loan Bank (FHLB) Advances The Bank has a credit line with the FHLB of Des Moines equal to 35% of total Bank assets. At December 31, 2021 and 2020, the Bank did not have outstanding advances against this credit line under Blanket Agreements for Advances and Security Agreements (“the Agreements”). The Agreements enable the Bank to borrow funds from the FHLB to fund mortgage loan programs and to satisfy certain other funding needs. Overnight Fed Funds Lines At December 31, 2021 and 2020, the Bank had $35.0 million and $27.0 million in Federal Funds lines of credit available with its correspondent banks. No borrowings were outstanding as of December 31, 2021. |
Transactions with Directors of
Transactions with Directors of the Company | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions with Directors of the Company | Note 11 – Transactions with Directors of the Company The Directors of the Company and the Bank, and certain of the businesses with which they are associated, conduct banking transactions with the Company in the ordinary course of business. The following is a summary of loan transactions with members of the Board of Directors of the Company and certain of their associated businesses: Years Ended December 31, 2021 2020 (Dollars in thousands) Beginning balance $ 16,898 $ 12,537 Undisbursed commitments 823 1,369 New loans granted 465 4,274 Principal repayments (998 ) (1,282 ) Ending balance of term loans 17,188 16,898 Year-end balance of revolving accounts 1,687 844 Total term loans and revolving accounts $ 18,875 $ 17,742 In addition, the Bank leases certain facilities from two separate entities in which two of its directors have separate ownership interests. Lease payments made to these entities during the years ended December 31, 2021 and 2020, approximated $431 thousand and $359 thousand, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12 – Income Taxes The Bank pays income taxes in Guam and the Commonwealth of the Northern Mariana Islands under a territorial “mirror” of the U.S. Internal Revenue Code, with payments made to the respective territorial governments instead of the U.S. Treasury; there is no equivalent of a state income tax in either of these jurisdictions. The Bank also pays taxes to the governments of the Republic of Palau, the Federated States of Micronesia, the Republic of the Marshall Islands and the State of California. The income tax provision includes the following components: Years Ended December 31, 2021 2020 Government of Guam tax expense (benefit): Current $ 3,062 $ 5,578 Deferred 233 (2,114 ) Foreign income taxes (including U.S. income taxes) 1,800 - Total income tax expense $ 5,095 $ 3,464 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2021 2020 Statutory Guam income tax rate 21.00 % 21.00 % Permanent differences -2.90 % -1.51 % Other 1.86 % 2.22 % Total income tax expense 19.96 % 21.71 % The difference between effective income tax expense and income tax expense computed at the Guam statutory rate was due to nontaxable interest income earned on loans to the Government of Guam for each of the years ended December 31, 2021 and 2020. The components of deferred income taxes are as follows: Years Ended December 31, 2021 2020 Deferred loan origination fees $ 167 $ (285 ) Loan loss provision (284 ) (1,526 ) Fixed assets 38 15 SERP (269 ) (271 ) Unfunded Commitment Reserve (12 ) - Other real estate owned valuation - 1 Mortgage servicing rights (1 ) (5 ) Right-of-use asset (425 ) (833 ) Lease liability 369 778 Accrued bonus (54 ) (11 ) Unearned Income (131 ) - Other 835 23 Net operating loss - (1,265 ) Change in valuation allowance - 1,265 Deferred tax (benefit) provision $ 233 $ (2,114 ) The components of the net deferred tax asset are as follows: Years Ended December 31, 2021 2020 Deferred tax asset: Allowance for loan losses $ 7,885 $ 7,602 Lease Liability 5,526 5,895 Net operating loss - 1,265 Loan origination fees 739 906 Net unrealized gain on securities available-for-sale 4,859 - Unearned income 131 Accruals not currently deductible 2,157 1,823 Total deferred tax asset 21,297 17,491 Deferred tax liability: Right-of-use asset (5,358 ) (5,783 ) Net unrealized gain on securities available-for-sale - (835 ) Fixed assets (713 ) (674 ) Mortgage servicing rights (362 ) (363 ) Investment in ASC (790 ) Others (71 ) (28 ) Total deferred tax liability (7,294 ) (7,683 ) Valuation allowance - (1,265 ) Net deferred tax asset $ 14,003 $ 8,543 A valuation allowance of zero and $1.3 million have been provided at December 31, 2021 and 2020, respectively, to reduce the deferred tax asset because, in management’s opinion, it is more likely than not that less than the entire amount will be realized. This is primarily due to the operating losses in the CNMI region. We record as a “deferred tax asset” on our balance sheet an amount equal to the tax credit and tax loss carry-forwards and tax deductions (“tax benefits”) that we believe will be available to us to offset or reduce the amounts of our income taxes in future periods. Under applicable federal and state income tax laws and regulations, such tax benefits will expire if not used within specified periods of time. Accordingly, the ability to fully use our deferred tax asset depends on the amount of taxable income that we generate during those time periods. At least once each year, or more frequently, if warranted, we make estimates of future taxable income that we believe we are likely to generate during those future periods. If we conclude, on the basis of those estimates and the amount of the tax benefits available to us, that it is more likely than not that we will be able to fully utilize those tax benefits prior to their expiration, we recognize the deferred tax asset in full on our balance sheet. On the other hand, if we conclude on the basis of those estimates and the amount of the tax benefits available to us that it has become more likely than not that we will be unable to utilize those tax benefits in full prior to their expiration, then we would establish (or increase any existing) valuation allowance to reduce the deferred tax asset on our balance sheet to the amount which we believe we are more likely than not to be able to utilize. Such a reduction is implemented by recognizing a non-cash charge that would have the effect of increasing the provision, or reducing any credit, for income taxes that we would otherwise have recorded in our statements of operations. The determination of whether and the extent to which we will be able to utilize our deferred tax asset involves significant management judgments and assumptions that are subject to period-to-period changes as a result of changes in tax laws, changes in the market, or economic conditions that could affect our operating results or variances between our actual operating results and our projected operating results, as well as other factors. The Bank is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2012. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Note 13 – Employee Benefit Plans Stock Purchase Plan The Company’s 2011 Employee Stock Purchase Plan (the “2011 Plan”) was adopted by the Company’s Board of Directors and approved by the Company’s Stockholders on May 2, 2011. The 2011 Plan is open to all employees of the Company and the Bank who have met certain eligibility requirements. Under the 2011 Plan, as amended and restated as of July 1, 2012, eligible employees can purchase, through payroll deductions, shares of common stock at a discount. The right to purchase stocks is granted to eligible employees during a period of time that is established from time to time by the Board of Directors of the Company. Eligible employees cannot accrue the right to purchase more than $25 thousand worth of stock at the fair market value at the beginning of each offer period. Eligible employees also may not purchase more than one thousand five hundred (1,500) shares of stock in any one offer period. The shares are purchased at 85% of the fair market price of the stock on the enrollment date. The Company recognized $39 thousand and $34 thousand in compensation expenses in 2021 and 2020, respectively. Employee Retirement Savings Plan The Company has a 401(k) Plan whereby substantially all employees, with at least one year of continuous service, are eligible to participate in the Plan. The Company makes matching contributions equal to 100% of an employee’s deferrals, up to 1% of the employee’s compensation, plus 50% of the employee’s deferrals that exceed 1% but are less than 6% of the employee’s compensation. Matching contributions become 100% vested to the employee after two years of service. For the years ended December 31, 2021 and 2020, the expense attributable to the Plan was $730 thousand and $764 thousand, respectively. Supplemental Executive Retirement Plan (“SERP”) In April 2011, the Bank established an unfunded Supplemental Executive Retirement Plan (the “SERP”) for its Executive Officers and Senior Vice Presidents. The SERP provides that, subject to meeting certain vesting requirements, they will become entitled to receive 12 equal successive monthly retirement payments totaling $50,000 per annum for Senior Vice Presidents, $100,000 for the Executive Vice Presidents, and $150,000 for the President and CEO for the 15 years immediately following the date of their retirement or other termination of their employment. The Company follows FASB ASC 715-30-35, which requires us to recognize in our balance sheet the funded status of any post-retirement plans that we maintain, and to recognize, in other comprehensive income, changes in the funded status of any such plans in any year in which changes occur. The changes in the projected benefit obligation of other benefits under the Plan during 2021 and 2020, its funded status at December 31, 2021 and 2020, and the amounts recognized in the balance sheet at December 31, 2021 and 2020, were as follows: Years Ended December 31, 2021 2020 Change in benefit obligation: Benefit obligation at beginning of period $ 8,243 $ 7,009 Service cost 588 930 Interest cost 356 304 Benefit obligation at end of period $ 9,187 $ 8,243 Funded status: Amounts recognized in the Statement of Financial Condition Unfunded accrued SERP liability—current $ 9,187 $ 8,243 Total unfunded accrued SERP liability $ 9,187 $ 8,243 Net amount recognized in accumulated other comprehensive income Prior service cost/(benefit) $ - $ - Net actuarial loss/(gain) - - Total net amount recognized in accumulated other comprehensive income - - Accumulated benefit obligation $ 9,187 $ 8,243 Components of net periodic SERP cost: Service cost $ 7,545 $ 6,957 Interest cost 1,642 1,286 Net periodic SERP cost $ 9,187 $ 8,243 Assumptions as of December 31: Assumed discount rate 4.33 % 4.33 % Rate of compensation increase 0.00 % 0.00 % As of December 31, 2021, $3.7 million in benefits are expected to be paid in the next five years. During 2022, $844 thousand is expected to be recognized in net periodic benefit cost. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Pro Forma [Abstract] | |
Earnings Per Common Share | Note 14 – Earnings Per Common Share Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to shares for which employees’ funds have been collected but not issued under the Employee Stock Purchase Plan for 2021 and 2020, and are determined using the treasury stock method. Earnings per common share have been computed based on reported net income and the following share data: Years Ended December 31, 2021 2020 Net income available to BankGuam Holding Company $ 20,501 $ 12,492 Less preferred stock dividends (520 ) (548 ) Net income attributable to common stockholders $ 19,981 $ 11,944 Weighted average number of common shares outstanding - used to calculate basic and diluted earnings per common share 9,719 9,685 Earnings per common share (EPS): Basic and diluted EPS $ 2.06 $ 1.23 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15 – Commitments and Contingencies The Bank is a party to credit-related financial instruments with off-balance-sheet risk, in the normal course of business, to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount reflected in the consolidated financial statements. The Bank’s exposure to credit loss, in the event of nonperformance by the other parties to financial instruments for loan commitments and letters of credit, is represented by the contractual amount of these instruments. The Bank follows the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. A summary of financial instruments with off-balance-sheet risk at December 31, 2021 and 2020, is as follows: December 31, 2021 2020 Commitments to extend credit $ 162,569 $ 159,405 Letters of credit: Standby letters of credit $ 43,239 $ 52,827 Commercial letters of credit 2,366 2,574 Total $ 45,605 $ 55,401 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. The commitments for certain lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the customer. The Bank had recorded $48.0 thousand in reserve liabilities associated with these commitments at December 31, 2021. Commercial and standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party or the shipment of merchandise from a third party. Those letters of credit are primarily issued to support government and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral supporting these commitments. The Bank considers its standby letters of credit to be guarantees. At December 31, 2021, the maximum undiscounted future payments that the Bank could be required to make was $45.6 million. All of these arrangements mature within one year. The Bank generally has recourse to recover from the customer any amounts paid under these guarantees. Most of the guarantees are fully collateralized; however, some are unsecured. The Bank recorded $48.0 thousand in reserve liabilities associated with these guarantees at December 31, 2021. Mortgage loans serviced for others are not included in the accompanying consolidated statements of condition. The unpaid principal balances of mortgage loans serviced for others were $181.1 million and $186.9 million at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the Bank recorded mortgage servicing rights at their fair value of $1.6 million and $1.7 million, respectively. Legal Contingencies The Bank is involved in certain legal actions and claims that arise in the ordinary course of business. Management believes that, as a result of its legal defenses and insurance arrangements, none of these matters are expected to have a material adverse effect on the Bank’s financial position, results of operations or cash flows. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2021 | |
Banking Regulation [Abstract] | |
Minimum Regulatory Capital Requirements | Note 16 – Minimum Regulatory Capital Requirements The Bank is subject to various regulatory capital requirements administered by the United States federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1 capital and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). As of December 31, 2021 and 2020, the Bank met all capital adequacy requirements to which it is subject. In July 2013, the U.S. banking regulatory agencies approved the U.S. version of Basel III. The agencies-adopted version of Basel III revises the risk-based and leverage capital requirements and the method for calculating risk-weighted assets to make them consistent with Basel III and to meet the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Although many of the rules contained in these final regulations are applicable only to large, internationally active banks, some of them apply on a phased-in basis to all banking organizations, including the Company and the Bank. The rules, including alternative requirements for smaller community financial institutions like the Company and the Bank, were fully phased in on January 1, 2019. Among other things, the rules established a new minimum common equity Tier 1 ratio (4.5% of risk-weighted assets), a higher minimum Tier 1 risk-based capital requirement (6.0% of risk-weighted assets) and a minimum non-risk-based leverage ratio (4.0%, eliminating a 3.0% exception for higher rated banks). An additional capital conservation buffer of 2.5% of risk weighted assets must be met to avoid limitations on the ability of the Company and the Bank to pay dividends, repurchase shares or pay discretionary bonuses. An additional “countercyclical capital buffer” is required for larger and more complex institutions. The new rules assign higher risk weighting to exposures that are more than 90 days past due or are on nonaccrual status and certain commercial real estate facilities that finance the acquisition, development or construction of real property. The rules also changed the permitted composition of Tier 1 capital to exclude trust preferred securities, mortgage servicing rights and certain deferred tax assets, and include unrealized gains and losses on available-for-sale debt and equity securities (through a one-time opt out option for Standardized Banks (banks with less than $250 billion of total consolidated assets and less than $10 billion of foreign exposures) which the Company and the Bank elected at March 31, 2015). The Bank continues to receive a large influx of deposits from federal relief programs due to the COVID-19 pandemic, which largely increased its total cash and cash equivalents, and securities on its balance sheet resulting in an increase in its average assets in December 31, 2021 by approximately $600.2 million to $2.91 billion from $2.31 billion in December 31, 2020. This growth resulted in an adverse impact on its ratio of Tier 1 capital to average assets. Management believes that the Bank has the capacity to absorb the growth in total assets, and the tools needed to move deposits off its balance sheet through its Trust services to continue to be above the well capitalized standards under the regulatory framework for prompt corrective action. As of December 31, 2021, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company’s actual capital amounts and ratios as of December 31, 2021 and 2020 , are presented in the table below . Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio At December 31, 2021: Total capital (to Risk Weighted Assets) $ 222,493 15.161 % $ 117,403 8.000 % $ 146,753 10.000 % Tier 1 capital (to Risk Weighted Assets) $ 168,623 11.490 % $ 88,052 6.000 % $ 117,403 8.000 % Tier 1 capital (to Average Assets) $ 168,623 5.792 % $ 116,461 4.000 % $ 145,577 5.000 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 158,840 10.824 % $ 66,039 4.500 % $ 95,390 6.500 % At December 31, 2020: Total capital (to Risk Weighted Assets) $ 206,381 14.307 % $ 115,401 8.000 % $ 144,252 10.000 % Tier 1 capital (to Risk Weighted Assets) $ 173,141 12.003 % $ 86,551 6.000 % $ 115,401 8.000 % Tier 1 capital (to Average Assets) $ 173,141 7.466 % $ 92,765 4.000 % $ 115,956 5.000 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 163,359 11.325 % $ 64,913 4.500 % $ 93,764 6.500 % The Bank exceeds the adequately capitalized and the well capitalized standards under these measures. Management believes the Company and the Bank will remain adequately capitalized and well-capitalized under the standards. Since the formation of the Company in 2011, our assets have grown by 153.0% ($1.69 billion), while our stockholders’ equity has grown by 103.7% ($92.0 million, including $81.8 million in retained earnings). The growth in equity has helped to increase our capital ratios, and those ratios remain well above the well capitalized standards. To provide sufficient capital resources to expand our holdings, the Board approved the issuance of an additional $5.0 million in common stock during 2015, of which $2.9 million was issued that year, and an additional $10.0 million in non-cumulative perpetual preferred stock, of which $9.8 million was issued during 2016. During the fourth quarter of 2017 and the first quarter of 2018, the Company issued an additional $4.2 million in common stock in an SEC-registered public offering at a purchase price of $12.25 per common share. Non-Cumulative Perpetual Preferred Stock Commencing September 15, 2016, the Company offered a private placement of securities for the issuance and sale of an aggregate of 10,000 shares of its new Series A Non-Cumulative Perpetual Preferred Stock. This offer carried a subscription price of $1,000.00 per share and a yield of 5.5% (the “Series A Preferred Stock”) to various accredited and a limited number of non-accredited investors for total proceeds of up to $10 million (the “Offering”). Each subscriber could purchase a minimum number of Series A Preferred Stock equivalent to at least $250,000 (250 shares). The Offering agreement contains customary warranties, representations and indemnification provisions, and expired on December 31, 2016. At December 31, 2018, 9,800 of these shares were issued and outstanding. |
Parent Company Only Information
Parent Company Only Information | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Information | Note 17 – Parent Company Only Information Condensed Statements of Financial Condition (Dollars in thousands) December 31, 2021 2020 Assets Due from subsidiaries $ 7,816 $ 2,245 Investment in subsidiaries 184,435 189,703 Goodwill 12,232 Intangible assets 10,249 Other assets (744 ) 9 Total assets $ 213,988 $ 191,957 Liabilities and stockholders’ equity Other liabilities 361 124 Subordinated debt, net 34,400 14,777 Total liabilities $ 34,761 $ 14,901 Stockholders’ equity 179,227 177,056 Total liabilities and stockholders’ equity $ 213,988 $ 191,957 Condensed Statements of Income (Dollars in thousands) December 31, 2021 2020 Dividend income $ 4,153 $ 4,154 Interest expense (1,444 ) (955 ) Other expenses (1,646 ) (280 ) Equity in undistributed income of subsidiary 19,438 9,573 Net income $ 20,501 $ 12,492 Condensed Statements of Cash Flows (Dollars in thousands) December 31, 2021 2020 Cash flows from operating activities: Net income $ 20,501 $ 12,492 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiary (19,438 ) (9,573 ) Depreciation and amortization 199 - Amortization of debt issuance costs 45 26 Net change in operating assets and liabilities: Other assets 753 4 Other liabilities 237 5 Net cash provided by operating activities 2,297 2,954 Cash flows from investing activities: Payments for investments in and advances to subsidiaries (8,900 ) - Increased investment in unconsolidated subsidiary (6,186 ) - Dividends received from consolidated subsidiary 742 635 Dividends received from unconsolidated subsidiary 2,058 855 Net cash (used in) provided by investing activities (12,286 ) 1,490 Cash flows from financing activities: Proceeds from issuance of subordinated debt 19,616 - Cash dividends paid (4,408 ) (4,422 ) Proceeds from issuance of common stock 352 305 Net cash (used in) provided by financing activities 15,560 (4,117 ) Net change in cash and cash equivalents 5,571 327 Cash and cash equivalents, beginning of period 2,245 1,918 Cash and cash equivalents, end of period $ 7,816 $ 2,245 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 18 – Fair Value Measurements The Bank uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with ASC Topic 820, “Fair Value Measurements and Disclosures”, Fair Value Hierarchy In accordance with this guidance, the Bank groups its financial assets and financial liabilities, generally measured at fair value, in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1: Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on 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 asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active. Level 3: Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Financial assets measured at fair value on a recurring basis as of December 31, 2021 and 2020, are as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total At December 31, 2021 Available-for-sale Securities: U.S. treasury notes and bonds $ - $ - $ - $ - U.S. government agency and government sponsored enterprise (GSE) debt securities - 110,962 - 110,962 U.S. government agency pool securities - 20,861 - 20,861 U.S. government agency or GSE - 367,543 - 367,543 Total fair value of available-for-sale securities - 499,366 - 499,366 Other assets: MSRs - - 1,581 1,581 Total fair value $ - $ 499,366 $ 1,581 $ 500,947 At December 31, 2020 Available-for-sale Securities: U.S. treasury notes and bonds $ 5,005 $ - $ - $ 5,005 U.S. government agency and government sponsored enterprise (GSE) debt securities - 293,142 - 293,142 U.S. government agency pool securities - 28,606 - 28,606 U.S. government agency or GSE - 183,358 - 183,358 Total fair value of available-for-sale securities 5,005 505,106 - 510,111 Other assets: MSRs - - 1,683 1,683 Total fair value $ 5,005 $ 505,106 $ 1,683 $ 511,794 There were no liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020. During the periods ended December 31, 2021 and 2020, the changes in Level 3 assets (consisting solely of MSRs) measured at fair value on a recurring basis are as follows: Years Ended December 31, 2021 2021 Beginning balance $ 1,683 $ 1,704 Realized and unrealized net losses: Included in net income (102 ) (21 ) Ending balance $ 1,581 $ 1,683 The valuation technique used for Level 3 MSRs is their discounted cash flow. Inputs considered in determining Level 3 pricing include the anticipated prepayment rates, discount rates, and cost to service. Significant increases or decreases in any of those inputs in isolation would result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the valuation technique and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis: Estimated Fair Value Valuation Technique Unobservable Inputs Range of Inputs Weighted Average Rate December 31, 2021 Financial instrument: MSRs $ 1,581 Discounted Cash Flow Discount Rate 6.02% - 7.93% 7.20% Weighted Average Prepayment Rate (Public Securities Association) 125% December 31, 2020 Financial instrument: MSRs $ 1,683 Discounted Cash Flow Discount Rate 6.06% - 7.74% 6.30% Weighted Average Prepayment Rate (Public Securities Association) 125% There were no transfers into or out of the Bank’s Level 3 financial instruments for the periods ended December 31, 2021 and 2020. The valuation techniques for assets measured at fair value on a recurring basis are as follows: Investment Securities When quoted prices are available in an active market, the Bank classifies the securities within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid U.S. Government debt, equity securities, Treasury notes and bonds. If quoted market prices are not available, the Bank estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, the Bank would classify those securities in Level 3. At December 31, 2021 and 2020, the Bank did not have any Level 3 investment securities. Mortgage Servicing Rights The fair value measurement of mortgage servicing rights is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques that incorporate assumptions that market participants would use in estimating the fair value of servicing rights. The most important of these assumptions is the interest rate used in discounting the future cash flows into their present value. Other assumptions might include estimates of prepayment speeds, costs to service, escrow account earnings, contractual servicing fee income, prepayment and late fees, among other considerations. The Bank’s mortgage servicing rights are considered a Level 3 measurement at December 31, 2021 and 2020. Assets Measured at Fair Value on a Nonrecurring Basis Under certain circumstances the Bank makes adjustments to fair value for assets and liabilities even though they are not measured at fair value on an ongoing basis. At December 31, 2021 and 2020, the financial instruments carried on the consolidated statements of financial condition by caption and by level in the fair value hierarchy for which a nonrecurring change in fair value has been recorded were zero and $8 thousand, respectively. Fair Value of Other Financial Instruments The estimated fair values of the Bank’s other financial instruments, excluding those assets recorded at fair value on a recurring basis on the Bank’s consolidated statements of condition, are as follows: Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2021 Financial assets: Cash and cash equivalents $ 557,403 $ 557,403 $ - $ - Restricted cash 150 150 - - Federal Home Loan Bank stock 2,814 - 2,814 - Investment securities held-to-maturity 312,294 - 310,372 - Loans, net 1,283,690 - - 1,330,529 Total $ 2,156,351 $ 557,553 $ 313,186 $ 1,330,529 Financial liabilities: Deposits 2,533,231 - - 2,527,806 Total $ 2,533,231 $ - $ - $ 2,527,806 December 31, 2020 Financial assets: Cash and cash equivalents $ 287,628 $ 287,628 $ - $ - Restricted cash 150 150 - - Federal Home Loan Bank stock 2,335 - 2,335 - Investment securities held-to-maturity 46,584 - 46,911 - Loans, net 1,392,722 - - 1,441,402 Total $ 1,729,419 $ 287,778 $ 49,246 $ 1,441,402 Financial liabilities: Deposits $ 2,118,844 $ - $ - $ 2,130,361 Total $ 2,118,844 $ - $ - $ 2,130,361 During the periods ended December 31, 2021 and 2020, the changes in Level 3 loans and deposits measured at fair value on a non-recurring basis are as follows: Years Ended December 31, 2021 2020 Beginning loan balance $ 1,441,402 $ 1,310,822 Net issuances (110,873 ) 130,580 Ending loan balance $ 1,330,529 $ 1,441,402 Years Ended December 31, 2021 2020 Beginning deposit balance $ 2,130,361 $ 1,733,072 Net deposits 397,445 397,289 Ending deposit balance $ 2,527,806 $ 2,130,361 The valuation technique used for Level 3 loans and deposits is their discounted cash flow. Inputs considered in determining Level 3 pricing include the respective discount rates. Significant increases or decreases in those inputs in isolation would result in a significantly lower or higher fair value measurement. The following table presents quantitative information about the valuation technique and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis: Estimated Fair Value Valuation Technique Unobservable Inputs Range of Inputs Weighted Average Rate December 31, 2021 Financial instrument: Loans $ 1,330,529 Discounted Cash Flow Discount Rate 5.44% - 6.91% 6.18% Deposits $ 2,527,806 Discounted Cash Flow Discount Rate 0.03% - 0.48% 0.03% December 31, 2020 Financial instrument: Loans $ 1,441,402 Discounted Cash Flow Discount Rate 4.93% - 7.70% 5.98% Deposits $ 2,130,361 Discounted Cash Flow Discount Rate 0.03% - 0.63% 0.05% The following methods were used by the Company in estimating fair value for its financial instruments not previously disclosed: Cash, Cash Equivalents and Restricted Cash, including Interest Bearing Deposits in Banks The carrying amount of cash and short-term instruments approximates fair value based on the short-term nature of the assets. Fair values for interest-bearing deposits that reprice frequently are based upon carrying value. Fair values of other interest bearing deposits with longer terms are estimated using discounted cash flow analyses based on current rates for similar types of deposits. Loans For variable-rate loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Deposit Liabilities The fair values disclosed for demand deposits (for example, interest and non-interest checking, passbook savings and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings The carrying amounts of Federal Funds purchased and FHLB advances maturing within ninety days approximate their fair values. We had no outstanding short-term borrowings at December 31, 2020 or 2021. Long-Term Borrowings Fair value of FHLB advances maturing after ninety days is determined based on expected present value techniques based on current market rates for advances with similar terms and remaining maturities. We had no outstanding long-term borrowings at December 31, 2020 or 2021. Accrued Interest The carrying amount of accrued interest approximates fair value due to its short-term nature. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 19 – Leases The Bank leases certain land, office spaces, and storage spaces. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Instead, the Bank recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years or more. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements are limited by the expected lease terms, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on a percentage of the prevailing market value of the lease and the average of the Treasury Bill Rate and the Guam Consumer Price Index figure, and others include rental payments adjusted periodically for inflation. The Bank's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Bank leases certain facilities from two separate entities in which two of its directors have separate ownership interests. Lease payments made to these entities during the year ended December 31, 2021 and 2020, were $431 thousand, and $359 thousand respectively. Additionally, the Bank leases office space to third parties, with original lease terms ranging from 1 to 3 years with option periods ranging up to 12 years. At December 31, 2021, minimum future rents to be received under non-cancelable operating sublease agreements were $44 thousand and $26 thousand for the periods ending December 31, 2022 and 2023, respectively. The cash flow from operating leases included in the measurement of lease liabilities during December 31, 2021 and 2020 was $3.4 million and $3.6 million, respectively. The following table summarizes the lease-related assets and liabilities recorded as part of other assets and other liabilities in our consolidated statements of financial condition at December 31, 2021: December 31, 2021 December 31, 2020 Assets Operating lease right-of-use assets $ 23,379 $ 26,113 Total lease assets $ 23,379 $ 26,113 Liabilities Current Operating $ 1,926 $ 2,510 Noncurrent Operating 22,186 24,112 Total lease liabilities $ 24,112 $ 26,622 The operating lease cost, and variable lease costs, at December 31, 2021 and 2020 was $3.7 million and $3.9 million, respectively. The following table provides the maturities of lease liabilities at December 31, 2021: Operating Leases (a) Total 2022 $ 2,780 $ 2,780 2023 2,532 2,532 2024 2,420 2,420 2025 2,288 2,288 2026 2,054 2,054 After 2025 33,515 33,515 Total lease payments 45,589 45,589 Less: Interest (b) 21,477 21,477 Present value of lease liabilities (c) $ 24,112 $ 24,112 Note: For leases commencing prior to 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. (a) Operating lease payments include $21.5 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Calculated using the incremental borrowing rate based on the lease term for each lease. (c) Includes the current portion of $1.9 million for operating leases. The following table provides the weighted-average lease term and discount rate at December 31, 2021: Years Ended December 31, 2021 2020 Weighted-average remaining lease term (years) Operating leases 25.6 24.6 Weighted-average discount rate Operating leases 4.15 % 4.09 % |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 20 – Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASC 606”) See Note 5 under “Investment in Unconsolidated Subsidiary” for additional details. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debt | Note 21 – Subordinated Debt On June 29, 2021, the Company issued $20.0 million in aggregate principal amount of its 4.75% Fixed-to-Floating Rate Subordinated Notes due July 1, 2031 (the “2031 Notes”). The 2031 Notes have a ten-year On June 27, 2019, the Company issued $15.0 million in aggregate principal amount of its 6.35% Fixed-to-Floating Rate Subordinated Notes due June 30, 2029 (the “2029 Notes” and together with the 2031 Notes, the “Notes”). The 2029 Notes have a ten-year Both notes are unsecured, subordinated obligations of the Company only and are not obligations of, and are not guaranteed by, any subsidiary of the Company. The Notes rank junior in right to payment to the Company’s current and future senior indebtedness. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Note 22 – Acquisitions On July 6, 2021 ( the “acquisition date”), the Company closed the acquisition of an additional 25% ownership interest of ASC Trust LLC for $6.2 million, which brought the Company’s ownership interest in ASC Trust LLC to 70%. ASC Trust LLC primarily manages institutional retirement plans and trust accounts in the Micronesian region. The results of ASC Trust LLC operations have been included in the consolidated financial statements since the acquisition date. Prior to acquisition date, the Company accounted for its 45% interest in ASC Trust LLC as an equity-method investment. The aggregate purchase price of the Company’s 70% ownership interest totaled $13.4 million. The Company used both an income-based valuation model and a market approach to determine the fair value of the previously held 45% equity method investment in ASC Trust LLC and the noncontrolling interest. The Company recognized a gain of $3.4 million for the difference between the carrying value of $7.7 million and fair value of $11.1 million of the previously held equity interest. The gain is included in other income in the 2021 consolidated statement of income. The fair value of the noncontrolling interest at the acquisition date was $7.4 million. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company is in the process of obtaining third-party valuations of certain intangible assets; thus, the provisional measurements of intangible assets and goodwill are subject to change. Of the $11.1 million of acquired intangible assets, $460 thousand was provisionally assigned to trade name and $10.6 million was provisionally assigned to customer relationships. The Company identified the estimated useful life of the identifiable intangible assets to be 15 years. The fair values of assets acquired and liabilities assumed other than the intangible assets approximate the carrying values due to short-term maturities. Cash $ 546 Other current assets 1,287 Property and equipment, net 359 Intangible assets 11,090 Total identifiable assets 13,282 Current liabilities (472 ) Interest bearing debt (297 ) Total liabilities assumed (769 ) Net identifiable assets acquired 12,513 Goodwill 12,231 Net assets acquired $ 24,744 The Company applied the acquisition method of accounting to the ASC Trust LLC transactions, whereby the excess of the fair value of the business over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the workforce and synergies expected from the broader financial services offered in Guam. The goodwill is not expected to be deductible for tax purposes. A summary of the changes in goodwill is as follows: 2021 2020 Variance Balance at beginning of year $ 783 $ 783 $ - Additions 12,231 - 12,231 Balance $ 13,014 $ 783 $ 12,231 The Company used discounted cash flow analyses, which represent Level 3 fair value measurements, to assess certain components of its purchase price allocation. The fair value of trade name was determined using the relief from royalty method; the customer contracts were determined using the multi-period excess earnings method. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 23 – Subsequent Events Management has reviewed the events occurring through the date of this report, and there were no subsequent events that require additional disclosure to the accompanying financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in effect in the United States (“GAAP”), on a basis consistent with prior periods. Certain prior period amounts have been reclassified to conform to current year presentation. The consolidated financial statements include the accounts of BankGuam Holding Company, the Bank, BGIS, and the Bank’s wholly owned subsidiaries, BankGuam Properties, Inc. and BankGuam Insurance Underwriters, Ltd. and IFIT Properties, LLC. It also includes ASC Trust LLC in which the Company has a controlling financial interest. See Note 22 – Acquisitions for more details. All significant intercompany and inter-branch balances and transactions have been eliminated in consolidation. Assets held by the Bank’s Trust Department and its sister corporation, BankGuam Investment Services, and ASC Trust LLC, a subsidiary, in a fiduciary capacity are not assets of the Bank, and, accordingly, are not included in the accompanying consolidated financial statements. The Company evaluated its ownership in ASC Trust LLC after the third and final closing, which brought the Company’s interest in ASC Trust LLC to 70%. The Company determined it has control of ASC Trust LLC in accordance to ASC 810 – Consolidation and accounted for the consolidation in accordance to ASC 805 – Business Combinations at December 31, 2021. The Company’s investment in ASC Trust LLC was accounted for under the equity method of accounting at December 31, 2020. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income and expenses during the periods presented. Actual results could differ from those estimates. |
Cash Flows | Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable and other short‑term borrowings. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash on hand and balances due from banks, Federal Funds sold, cash items in transit and interest bearing deposits with other banks. The Bank is required by the Federal Reserve System to maintain cash reserves against certain of its deposit accounts. At December 31, 2021 and 2020, the required combined reserves totaled zero for both comparative periods. On March 15, 2020, the Federal Reserve Board reduced the reserve requirement ratios to zero percent effective March 26, 2020. |
Restricted Cash | Restricted Cash Interest-bearing deposits in banks that mature within one year are carried at cost. $150 thousand of these deposits are held by the Bank jointly under the names of Bank of Guam and the Guam Insurance Commissioner, and serve as a bond for the Bank of Guam Trust Department. |
Investment Securities | Investment Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held-to-maturity,” and are recorded at amortized cost. Securities not classified as held-to-maturity, including equity securities with readily determinable fair value, are classified as “available-for-sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Bank does not hold securities for trading purposes. Declines in the fair value of securities below their cost that are other than temporary are reflected in earnings as realized losses. In determining other-than-temporary losses, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment, and is based on the information available to management at the time such a determination is made. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank is required to hold non-marketable equity securities, comprised of Federal Home Loan Bank of Des Moines (“FHLB”) stock, as a condition of membership. These securities are accounted for at cost, which equals par or redemption value. Ownership is restricted and there is no market for these securities. These securities are redeemable at par by the issuing government supported institutions. The primary factor supporting the carrying value is the commitment of the FHLB to perform its obligations, which includes providing credit and other services to the Bank. |
Mortgage Servicing Rights (MSR) | Mortgage Servicing Rights (MSR) Mortgage servicing assets, included in other assets in the consolidated statements of financial condition, are recognized separately when rights are acquired through the sale of mortgage loans. Under the servicing assets and liabilities accounting guidance in ASC Topic 860, “ Transfers and Servicing |
Loans Held for Investment | Loans Held for Investment Loans held for investment generally are reported at their outstanding unpaid principal balances, adjusted for charge-offs, an allowance for loan losses, and any deferred fees or costs on the originated loans, as well as unamortized premiums or discounts on purchased loans, except for certain purchased loans that fall under the scope of Accounting Standards Codification (ASC) Topic 310-30, “ Accounting for Loans and Debt Securities Acquired with Deteriorated Credit Quality Interest income is accrued on the unpaid principal balance of loans. Loan origination fees, net of certain direct origination costs, are deferred and recognized as income using the effective interest method over the contractual life of the loans. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Credit card loans and other unsecured consumer loans are typically charged off no later than when they are 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged-off are reversed against current period interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Loan Origination Fees and Costs | Loan Origination Fees and Costs All loan origination fees and related direct costs are deferred and amortized to interest income as an adjustment to yield over the respective lives of the loans using the effective interest method, except for loans that are revolving or short-term in nature for which the straight line method is used, which approximates the interest method. |
Allowance for Loan Losses, Impaired Loans and Troubled Debt Restructurings | Allowance for Loan Losses, Impaired Loans and Troubled Debt Restructurings The allowance for loan losses is established as losses are estimated to be likely, and is funded through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is first determined by analyzing all classified loans (Substandard and Doubtful) in non-accrual for loss exposure and establishing specific reserves, as needed. ASC 310-10 defines loan impairment as the existence of uncertainty concerning collection of all principal and interest per the contractual terms of a loan. For collateral-dependent loans, impairment is typically measured by comparing the loan amount to the fair value of collateral, less costs to sell, with a specific reserve established for the “shortfall” amount. Other methods can be used in estimating impairment (market price or present value of expected future cash flows discounted at the loan’s original interest rate). The allowance for loan losses is management’s estimate of credit losses inherent in the loan portfolio at the balance sheet date. The Company has established a process to determine the appropriateness of the allowance for credit losses that assesses the losses inherent in the loan portfolio. The Company develops and documents its allowance methodology at the portfolio segment level – commercial loan, residential mortgage and consumer loan portfolios. While portions of the allowance are attributable to the respective commercial, residential mortgage and consumer portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Bank will grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring (TDR). These modified terms may include rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral, if applicable. For modifications where principal is forgiven, the entire amount of such principal forgiveness is immediately charged off. Loans classified as TDRs, including loans in trial payment periods (trial modifications), are considered impaired loans. Other than resolutions such as foreclosures, the Bank may remove loans held for investment from TDR classification, but only if they have been refinanced or restructured at market terms and qualify as a new loan. |
Loans Held for Sale | Loans Held for Sale In its normal course of business, the Bank originates mortgage loans held for sale to the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). The Bank has elected to measure its residential mortgage loans held for sale at the lower of cost or market. Origination fees and costs are recognized in earnings at the time of origination for newly originated loans held for sale, and the loans are sold to Freddie Mac at par. The Bank recognizes gains on the sale of loans sold to Freddie Mac only to the extent of MSRs retained in such sales. During the years ended December 31, 2021 and 2020, the Bank originated and sold approximately $26.3 million and $31.5 million, respectively, of the above-mentioned loans. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Bank has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded as off-balance sheet items when the commitment is made, then recorded as balance sheet items if and when funded (See Note 15). |
Premises and Equipment | Premises and Equipment Premises and equipment are reported at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed on the straight-line method over the estimated useful lives of the related assets. Depreciation expense has been computed principally using estimated lives of 15 to 40 years for premises and 3 to 10 years for furniture and equipment. Leasehold improvements are depreciated over the estimated lives of the assets or the expected terms of the leases, if shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. Construction-in-progress consists of accumulated direct and indirect costs associated with the Bank’s construction of premises and the purchase of equipment that has not yet been placed in service and, accordingly, has not yet been subjected to depreciation. Such assets begin depreciation over their estimated useful lives when completed and placed in service. Premises and equipment are periodically evaluated for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of premises and equipment are less than their carrying amount. In that event, the Bank records a loss for the difference between the carrying amount and the estimated fair value of the asset based on appraised values or quoted prices. |
Lease | Leases In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” |
Other Real Estate Owned | Other Real Estate Owned Properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the fair value of the property, reduced by estimated selling costs. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less the estimated cost to sell. Other real estate owned is estimated using the appraised value of the underlying collateral, discounted as necessary due to management’s estimates of changes in economic conditions, less estimated costs to sell. A valuation allowance is increased by provisions charged to earnings. Subsequent write-downs, income and expenses incurred in connection with holding such assets, and gains and losses realized from the sale of such assets, are charged to the valuation allowance. |
Business Combinations | Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine the fair value of the intangible assets acquired. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. The fair value of assets acquired and liabilities assumed in certain cases may be subject to revision based on the final determination of fair value during a period of time not to exceed 12 months from the acquisition date. Legal costs, due diligence costs, business valuation costs and all other acquisition-related costs are expenses when incurred. |
Goodwill | Goodwill Goodwill is recorded in business combinations under the purchase method of accounting when the purchase price is greater than the fair value of net assets, including identifiable intangible assets. The Bank will assess goodwill for impairment at a reporting unit level on an annual basis or more frequently in certain circumstances. The Bank has the option of performing a qualitative assessment of goodwill, or to bypass the qualitative test and proceed directly to a quantitative test. If the Bank performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that a reporting unit’s fair value is greater than its carrying amount, quantitative tests are not required. However, if it is determined it is more likely than not that a reporting unit’s fair value is less than its carrying amount, then the Bank completes a quantitative assessment to determine if there is goodwill impairment. The Bank can apply various quantitative valuation methodologies, including discounted cash flow and earnings multiple approaches, to determine the estimated fair value, which is compared to the carrying value of each reporting unit. If the fair value is less than the carrying amount, an additional test is required to measure the amount of impairment. Based on the Bank’s year-end evaluation, no goodwill impairment was recorded. |
Asset-Based Fees | Asset-Based Fees Fees to manage retirement plans are paid for by Plan Sponsors (the customers) by a combination of asset-based fees and fixed-dollar contracts. Services include plan design, document management, plan set-up, trustee services, recordkeeping and administration of employee communication and individual participant services, plan and participant level reporting, and compliance and regulatory services, among others. The Company recognizes revenue from rendering these services on a quarterly basis. |
Income Taxes | Income Taxes Income taxes represent taxes recognized under laws of the Government of Guam, which generally conform to U.S. income tax laws. Foreign income taxes result from payments of taxes with effective rates ranging from 2% to 5% of gross income in the FSM, the RMI and the ROP to their respective government jurisdictions. U.S. Federal, California and the Commonwealth of the Northern Mariana Islands income taxes are reflected as foreign taxes for financial reporting purposes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid for the period by applying the provisions of the enacted tax law to the taxable income. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term, “more likely than not,” means a likelihood of more than 50 percent; the terms, “examined,” and, “upon examination,” also include resolution of related appeals or litigation processes, if any. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. The Company recognizes interest and penalties on income taxes as a component of income tax expense. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per share represent income available to common stockholders (after deducting dividends on preferred stock) divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may have been issued by the Company relate solely to outstanding stock options, and are determined using the treasury stock method. |
Fair Value of Financial Instruments/Fair Value Option | Fair Value of Financial Instruments/Fair Value Option Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 18. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect these estimates. In addition, the fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments and written loan commitments not previously carried at fair value. The Company and the Bank have elected the fair value option for its mortgage servicing rights. The election was made to better reflect the underlying economics and to mitigate operational complexities in risk management activities. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when, (i) the assets have been isolated from the Bank – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Contingencies | Contingencies From time to time, the Company may become involved in disputes, litigation and other legal actions. In such event, the Company estimates the range of liability related to pending litigation where the amount and range of loss can be estimated and information available prior to the issuance of financial statements indicates such loss is considered probable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records a charge equal to at least the minimum amount in the range. |
COVID-19 | COVID-19 On March 11, 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a global pandemic, which continues to spread throughout the United States and around the world. The declaration of a global pandemic indicates that almost all public commerce and related business activities may be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Company’s customers operate and, in some instances, impaired their ability to fulfill their financial obligations to the Company. On March 3, 2020, the Federal Open Market Committee reduced the target range for federal funds by 50 basis points to 1.00% - 1.25%. This rate was further reduced to a target range of 0% - 0.25% on March 16, 2020. In September 2020, the Federal Open Market Committee announced that it will allow inflation to exceed 2% to support employment, and its most recent forecasts anticipate rate hikes in 2022; however, there can be no assurance as to when interest rates will rise. These reductions in interest rates and other effects of the COVID-19 outbreak had an adverse affect on the Company’s financial condition and results of operations. As a result of the spread of the COVID-19 coronavirus, economic uncertainties have negatively impacted net interest income and noninterest income. In the United States, the government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020. The CARES Act, among other things, created a $670 billion loan program (the “Paycheck Protection Program” or the “PPP”) for fully guaranteed loans (which may be forgiven) to small businesses for certain qualifying expenses. The PPP was modified on May 31, 2021. Due to the Company’s concerns for the health and safety of its customers and employees, in March 2020 the Bank temporarily closed seven of its branches in Guam and one of its branches in CNMI, and limited the number of customers allowed to be in its remaining facilities at any one time to 50. The Bank re-opened four of its branches in Guam, while four of the branches remain closed. Currently one branch in Guam remains closed due to renovations, and will reopen upon completion. The Bank continues to provide a secure telecommuting program for those personnel who are able to perform their responsibilities remotely, the computer hardware and software needed to support those tasks, and established teleconferencing capabilities to reduce the number of people in attendance at all of its larger group meetings. In recognition of the potential difficulties that may be faced by our commercial and consumer customers, the Bank initiated a temporary program in March 2020 under which affected customers may have their loan payments deferred or otherwise adjusted. This program applied to both commercial and consumer loans for a period of 90 days, and expired on June 30, 2020. Although these actions taken in response to the heightened risks posed by COVID-19 are costly, it is not possible at the time of this filing to estimate the final consequences of these impacts on economic performance or the results of the Company’s operations, its financial condition or its cash flows. However, despite these potential disruptions the Company has not materially changed its accounting policies or procedures due to COVID-19. The Bank has been transitioning to a digital platform for several years. The COVID-19 pandemic has accelerated the adoption by our customers to convert to our digital channels. |
Subsequent Events | Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued (See Note 24). The Company recognizes in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements. The Company’s financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before financial statements are available to be issued. The Company has evaluated subsequent events through the date that these consolidated financial statements are being filed with the Securities and Exchange Commission. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements None. |
Recently Issued but Not Yet Adopted Accounting Pronouncements | Recently Issued but Not Yet Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)” The Company was preparing to implement ASU 2016-13 when it was scheduled to become effective January 1, 2020, but the FASB announced on October 16, 2019, a delay of the effective date for smaller reporting companies until January 1, 2023. Management expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the first reporting period in which the new standard is effective, but cannot yet estimate the magnitude of the adjustment or the overall impact of the new guidance on the Company’s financial position, results of operations or cash flows. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting ," which provides temporary optional expedients to ease the financial reporting burdens of the expected market transition from London Interbank Offered Rate (LIBOR) to an alternative reference rate such as Secured Overnight Financing Rate (SOFR). The guidance was effective upon issuance and generally can be applied through December 31, 2022. In December 2021, t he Company adopted SOFR as a replacement to LIBOR. As of January 1, 2022, the Bank did not originate loans indexed to LIBOR nor enter into modifications which create new LIBOR exposure. The Company believes the adoption of this guidance will not have a material impact on the consolidated financial statements . |
Fair Value Measurements | The Bank uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with ASC Topic 820, “Fair Value Measurements and Disclosures”, Fair Value Hierarchy In accordance with this guidance, the Bank groups its financial assets and financial liabilities, generally measured at fair value, in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1: Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on 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 asset or liability, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active. Level 3: Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Investment Securities, with Gross Unrealized Gains and Losses | The amortized cost and estimated fair value of investment securities, with gross unrealized gains and losses, were as follows: December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities Available-for-Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ 114,969 $ - $ (4,007 ) $ 110,962 U.S. government agency pool securities 21,106 2 (247 ) 20,861 U.S. government agency or GSE residential mortgage-backed securities 369,419 1,957 (3,833 ) 367,543 Total $ 505,494 $ 1,959 $ (8,087 ) $ 499,366 Securities Held-to-Maturity U.S. government agency and government sponsored enterprise (GSE) debt securities $ 276,188 $ - $ (1,621 ) $ 274,567 U.S. government agency pool securities 3,028 8 (45 ) 2,991 U.S. government agency or GSE residential mortgage-backed securities 33,078 105 (369 ) 32,814 Total $ 312,294 $ 113 $ (2,035 ) $ 310,372 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Securities Available-for-Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ 300,440 $ 54 $ (2,348 ) $ 298,146 U.S. government agency pool securities 28,783 29 (206 ) 28,606 U.S. government agency or GSE residential mortgage-backed securities 176,912 6,447 - 183,359 Total $ 506,135 $ 6,530 $ (2,554 ) $ 510,111 Securities Held-to-Maturity U.S. government agency and government sponsored enterprise (GSE) debt securities $ 33,221 $ 93 $ (15 ) $ 33,299 U.S. government agency pool securities 4,515 15 (36 ) 4,494 U.S. government agency or GSE residential mortgage-backed securities 8,848 280 (10 ) 9,118 Total $ 46,584 $ 388 $ (61 ) $ 46,911 |
Summary of Proceeds and Gross Realized Gains (Losses) from Sales or Calls of Investment Securities | Proceeds and gross realized gains (losses) from the sales or calls of investment securities for the years ended December 31, 2021 and 2020, are shown below: Year Ended December 31, 2021 2021 2020 Proceeds from sales $ 46,993 $ 132,014 Gross realized gains from sales $ 272 $ 265 Gross realized losses from sales $ - $ - |
Summary of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of investment securities by contractual maturity at December 31, 2021 and 2020 December 31, 2021 Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 105 $ 105 $ - $ - Due after one but within five years 8,331 8,377 1,228 1,246 Due after five but within ten years 151,682 148,389 62,925 62,257 Due after ten years 345,376 342,495 248,141 246,869 Total $ 505,494 $ 499,366 $ 312,294 $ 310,372 December 31, 2020 Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Due within one year $ 5,115 $ 5,121 $ 11,990 $ 12,070 Due after one but within five years 13,255 13,432 2,325 2,358 Due after five but within ten years 129,708 131,340 26,214 26,348 Due after ten years 358,057 360,218 6,055 6,135 Total $ 506,135 $ 510,111 $ 46,584 $ 46,911 |
Summary of Gross Unrealized Losses and Fair Value of Investments, with Unrealized Losses of Temporarily Impaired Securities | The following table indicates the gross unrealized losses and fair value of the Bank’s investments, with unrealized losses that are not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2021 and 2020. December 31, 2021 Less Than Twelve Months More Than Twelve Months Total Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Securities Available for Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ (2,824 ) $ 82,145 $ (1,183 ) $ 28,817 $ (4,007 ) $ 110,962 U.S. government agency pool securities (71 ) 5,127 (176 ) 14,743 (247 ) 19,870 U.S. government agency or GSE residential mortgage-backed securities (3,833 ) 290,573 - - (3,833 ) 290,573 Total $ (6,728 ) $ 377,845 $ (1,359 ) $ 43,560 $ (8,087 ) $ 421,405 Securities Held to Maturity US government agency and sponsored Agencies (GSE) debt securities $ (1,395 ) $ 159,840 $ (226 ) $ 114,726 $ (1,621 ) $ 274,566 U.S. government agency pool securities (37 ) 1,507 (8 ) 403 (45 ) 1,910 U.S. government agency or GSE residential mortgage-backed securities (362 ) 28,498 (7 ) 529 (369 ) 29,027 Total $ (1,794 ) $ 189,845 $ (241 ) $ 115,658 $ (2,035 ) $ 305,503 December 31, 2020 Less Than Twelve Months More Than Twelve Months Total Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Securities Available for Sale U.S. government agency and government sponsored enterprise (GSE) debt securities $ (2,348 ) $ 243,089 $ - $ - $ (2,348 ) $ 243,089 U.S. government agency pool securities (22 ) 3,735 (184 ) 22,672 (206 ) 26,407 Total $ (2,370 ) $ 246,824 $ (184 ) $ 22,672 $ (2,554 ) $ 269,496 Securities Held to Maturity U.S. government agency and government sponsored enterprise (GSE) debt securities $ (15 ) $ 14,985 $ - $ - $ (15 ) $ 14,985 U.S. government agency pool securities - - (36 ) 2,923 (36 ) 2,923 U.S. government agency or GSE residential mortgage-backed securities (10 ) 506 - - (10 ) 506 Total $ (25 ) $ 15,491 $ (36 ) $ 2,923 $ (61 ) $ 18,414 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loan Portfolio | The loan portfolio consisted of the following at: December 31, 2021 December 31, 2020 Amount Percent Amount Percent Commercial Commercial & industrial $ 295,835 22.4 % $ 366,942 25.6 % Commercial mortgage 699,269 52.9 % 685,138 47.9 % Commercial construction 23,588 1.8 % 51,785 3.6 % Commercial agriculture 592 0.0 % 629 0.0 % Total commercial 1,019,284 77.1 % 1,104,494 77.1 % Consumer Residential mortgage 135,377 10.2 % 127,371 8.9 % Home equity 2,232 0.2 % 2,076 0.1 % Automobile 18,220 1.4 % 19,923 1.4 % Other consumer loans 1 146,208 11.1 % 177,822 12.5 % Total consumer 302,037 22.9 % 327,192 22.9 % Gross loans 1,321,321 100.0 % 1,431,686 100.0 % Deferred loan (fees) costs, net (3,223 ) (4,159 ) Allowance for loan losses (34,408 ) (34,805 ) Loans, net $ 1,283,690 $ 1,392,722 1 Comprised of other revolving credit, installment, and overdrafts. |
Loan Balances and Related Allowance for Loan Losses, by Portfolio Type | Set forth below is information regarding gross loan balances and the related allowance for loan losses, by portfolio type, for the years ended December 31, 2021 and 2020. Commercial Residential Mortgages Consumer Total (Dollars in thousands) Year Ended December 31, 2021 Allowance for loan losses: Balance at beginning of period $ 21,213 $ 1,990 $ 11,602 $ 34,805 Charge-offs (115 ) (99 ) (4,736 ) (4,950 ) Recoveries 578 1 1,824 2,403 Provision 1,184 412 554 2,150 Balance at end of period $ 22,860 $ 2,304 $ 9,244 $ 34,408 Allowance balance at end of period related to: Loans individually evaluated for impairment $ 3,510 $ 50 $ 941 $ 4,501 Loans collectively evaluated for impairment 19,350 2,254 8,303 29,907 Ending balance $ 22,860 $ 2,304 $ 9,244 $ 34,408 Loan balances at end of period: Loans individually evaluated for impairment $ 48,459 $ 2,265 $ 1,059 $ 51,783 Loans collectively evaluated for impairment 970,825 135,343 163,370 1,269,538 Ending balance $ 1,019,284 $ 137,608 $ 164,429 $ 1,321,321 Year Ended December 31, 2020 Allowance for loan losses: Balance at beginning of year $ 18,360 $ 1,490 $ 8,020 $ 27,870 Charge-offs (1,069 ) - (4,559 ) (5,628 ) Recoveries 399 - 1,806 2,205 Provision 3,523 500 6,335 10,358 Ending balance $ 21,213 $ 1,990 $ 11,602 $ 34,805 Allowance balance at end of year related to: Loans individually evaluated for impairment $ 3,500 $ 4 $ 1,264 $ 4,768 Loans collectively evaluated for impairment 17,713 1,986 10,338 30,037 Ending balance $ 21,213 $ 1,990 $ 11,602 $ 34,805 Loan balances at end of year: Loans individually evaluated for impairment $ 36,031 $ 2,730 $ 1,343 $ 40,104 Loans collectively evaluated for impairment 1,068,463 126,717 196,402 1,391,582 Ending balance $ 1,104,494 $ 129,447 $ 197,745 $ 1,431,686 |
Summary of Delinquency Status of Loans | The following table provides a summary of the delinquency status of the Bank’s gross loans by portfolio type: 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Non- Accrual 90 Days and Greater Still Accruing Total Past Due Current Total Loans Outstanding December 31, 2021 Commercial Commercial & industrial $ 56 $ 202 $ 7,338 $ 106 $ 7,702 $ 288,133 $ 295,835 Commercial mortgage 2,540 217 4,622 - 7,379 691,890 699,269 Commercial construction - - - - - 23,588 23,588 Commercial agriculture - - - - - 592 592 Total commercial 2,596 419 11,960 106 15,081 1,004,203 1,019,284 Consumer Residential mortgage 2,194 1,236 267 77 3,774 131,603 135,377 Home equity - - - - - 2,232 2,232 Automobile 407 162 - 41 610 17,610 18,220 Other consumer 1 2,037 1,024 69 866 3,996 142,212 146,208 Total consumer 4,638 2,422 336 984 8,380 293,657 302,037 Total $ 7,234 $ 2,841 $ 12,296 $ 1,090 $ 23,461 $ 1,297,860 $ 1,321,321 December 31, 2020 Commercial Commercial & industrial $ 13,712 $ 3,857 $ 8,119 $ 387 $ 26,075 $ 340,867 $ 366,942 Commercial mortgage 9,183 36,562 913 471 47,129 638,009 685,138 Commercial construction - - - - - 51,785 51,785 Commercial agriculture - - - - - 629 629 Total commercial 22,895 40,419 9,032 858 73,204 1,031,290 1,104,494 Consumer Residential mortgage 4,758 1,833 1,147 129 7,867 119,504 127,371 Home equity - - - - - 2,076 2,076 Automobile 580 184 - 43 807 19,116 19,923 Other consumer 1 3,472 1,502 108 1,096 6,178 171,644 177,822 Total consumer 8,810 3,519 1,255 1,268 14,852 312,340 327,192 Total $ 31,705 $ 43,938 $ 10,287 $ 2,126 $ 88,056 $ 1,343,630 $ 1,431,686 1 Comprised of other revolving credit, installment loans, and overdrafts. |
Loans on Non-Accrual Status, by Portfolio | The following table provides information as of December 31, 2021 and 2020, with respect to loans on non-accrual status, by portfolio type: December 31, 2021 2020 (Dollars in thousands) Non-accrual loans: Commercial Commercial & industrial $ 7,610 $ 8,750 Commercial mortgage 8,148 6,618 Total commercial 15,758 15,368 Consumer Residential mortgage $ 1,660 $ 2,575 Other consumer 1 152 196 Total consumer 1,812 2,771 Total non-accrual loans $ 17,570 $ 18,139 1 Comprised of other revolving credit, installment loans, and overdrafts. |
Summary of Loans by Portfolio Type and Internal Credit Quality Ratings | The following table provides a summary of loans by portfolio type and the Company’s internal credit quality ratings as of December 31, 2021 and 2020. December 31, 2021 2020 (Dollars in thousands) Pass: Commercial & industrial $ 266,300 $ 314,201 Commercial mortgage 642,835 626,477 Commercial construction 23,588 51,785 Commercial agriculture 592 629 Residential mortgage 133,176 123,017 Home equity 2,232 2,076 Automobile 18,179 19,880 Other consumer 145,190 176,522 Total pass loans 1,232,092 1,314,587 Special Mention: Commercial & industrial 9,760 6,643 Commercial mortgage 11,051 16,285 Residential mortgage - 1,695 Total special mention loans 20,811 24,623 Substandard: Commercial & industrial 12,645 37,920 Commercial mortgage 44,661 41,654 Residential mortgage 613 433 Other consumer 2 7 Total substandard loans 57,921 80,014 Formula Classified: Residential mortgage 1,588 2,226 Automobile 41 43 Other consumer 1,016 1,293 Total formula classified loans 2,645 3,562 Doubtful: Commercial & industrial 7,130 8,178 Commercial mortgage 722 722 Total doubtful loans 7,852 8,900 Total outstanding loans, gross $ 1,321,321 $ 1,431,686 |
Schedule of NonAccrual Loans and Restructured Loans | The following table sets forth information regarding non-accrual loans and restructured loans, at December 31, 2021 and 2020: December 31, 2021 2020 (Dollars in thousands) Impaired loans: Restructured loans: Non-accruing restructured loans $ 6,083 $ 4,718 Accruing restructured loans 32,595 15,937 Total restructured loans 38,678 20,655 Other impaired loans 13,105 19,450 Total impaired loans $ 51,783 $ 40,105 Impaired loans less than 90 days delinquent and included in total impaired loans $ 38,398 $ 27,664 |
Information Related to Impaired Loans | The table below contains additional information with respect to impaired loans, by portfolio type, for the years ended December 31, 2021 and 2020: Recorded Investment Unpaid Principal Balance Average Recorded Investment Interest Income Recognized (Dollars in thousands) December 31, 2021, With no related allowance recorded: Commercial & industrial $ 11,150 $ 11,150 $ 75,812 $ 56 Commercial mortgage 36,935 37,182 38,456 149 Residential mortgage 612 612 221 - Other consumer 2 2 4 - Total impaired loans with no related allowance $ 48,699 $ 48,946 $ 114,493 $ 205 December 31, 2021, With a related allowance recorded: Commercial & industrial $ 262 $ 262 $ 116 $ 2 Commercial mortgage 112 127 75 - Residential mortgage 1,653 1,663 1,921 1 Automobile 41 41 29 1 Other consumer 1,016 1,016 1,253 8 Total impaired loans with a related allowance $ 3,084 $ 3,109 $ 3,394 $ 12 December 31, 2020, With no related allowance recorded: Commercial & industrial $ 23,745 $ 23,745 $ 23,986 $ 102 Commercial mortgage 11,954 12,201 9,030 45 Residential mortgage 432 432 692 - Other consumer 7 7 7 - Total impaired loans with no related allowance $ 36,138 $ 36,385 $ 33,715 $ 147 December 31, 2020, With a related allowance recorded: Commercial & industrial $ 294 $ 607 $ 282 $ 4 Commercial mortgage 39 54 95 - Residential mortgage 2,298 2,308 2,887 (27 ) Automobile 43 43 71 - Other consumer 1,293 1,292 884 27 Total impaired loans with a related allowance $ 3,967 $ 4,304 $ 4,219 $ 4 |
Troubled Debt Restructurings | Number of Pre- Modification Outstanding Recorded Principal Post- Modification Outstanding Recorded Outstanding Balance Loans Investment Modifications Investment December 31, 2021 December 31, 2020 Performing Residential mortgage - $ - $ - $ - $ - $ - Commercial & industrial 10 3,974 - 3,974 3,696 - Commercial mortgage 1 28,899 - 28,899 28,899 15,936 Consumer - - - - - - Total performing 11 32,873 - 32,873 32,595 15,936 Nonperforming Commercial & industrial 2 275 - 275 142 - Commercial mortgage 9 8,509 - 8,509 5,941 4,671 Consumer - - - - - 48 Total nonperforming 11 8,784 - 8,784 6,083 4,719 Total Troubled Debt Restructurings (TDRs) 22 $ 41,657 $ - $ 41,657 $ 38,678 $ 20,655 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment at December 31, 2021 and 2020 follows: December 31, 2021 Cost Accumulated Depreciation Net Book Value Buildings $ 29,281 $ (22,797 ) $ 6,484 Furniture and equipment 28,494 (20,135 ) 8,359 Automobiles and mobile facilities 2,071 (1,223 ) 848 Leasehold improvements 6,520 (4,241 ) 2,279 66,366 (48,396 ) 17,970 Construction in progress 2,832 - 2,832 $ 69,198 $ (48,396 ) $ 20,802 December 31, 2020 Cost Accumulated Depreciation Net Book Value Buildings $ 28,952 $ (22,001 ) $ 6,951 Furniture and equipment 27,688 (21,173 ) 6,515 Automobiles and mobile facilities 1,721 (1,182 ) 539 Leasehold improvements 6,841 (4,609 ) 2,232 65,202 (48,965 ) 16,237 Construction in progress 3,684 - 3,684 $ 68,886 $ (48,965 ) $ 19,921 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Other Assets | A summary of other assets at December 31, 2021 and 2020, follows: December 31, 2021 2020 Bank Owned Life Insurance $ 29,890 $ 28,798 Prepaid income tax 482 Prepaid expenses 9,130 6,919 Deferred tax asset, net (Note 12) 14,003 8,543 Mortgage servicing rights (Note 18) 1,581 1,683 Right-of-use asset (Note 19) 23,379 26,113 Accounts receivable 5,069 3,108 Other 1,086 1,176 Total other assets $ 84,620 $ 76,340 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Summary of Deposits | A summary of deposits at December 31, 2021 and 2020, follows: December 31, 2021 2020 (Dollars in Thousands) Non-interest bearing deposits $ 981,537 $ 770,037 Interest bearing deposits: Demand deposits 401,753 322,933 Regular savings 801,101 754,042 Time deposits: $250,000 or more 14,201 14,201 Less than $250,000 15,696 14,569 Other interest bearing deposits 318,943 243,062 Total interest bearing deposits 1,551,694 1,348,807 Total Deposits $ 2,533,231 $ 2,118,844 |
Scheduled Maturities of Time Deposits | At December 31, 2021, the scheduled maturities of time deposits were as follows: Years ending December 31, 2022 $ 26,322 2023 1,091 2024 1,318 2025 295 2026 and thereafter 871 Total $ 29,897 |
Transactions with Directors o_2
Transactions with Directors of the Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Loan Transactions with Members of Board of Directors | The following is a summary of loan transactions with members of the Board of Directors of the Company and certain of their associated businesses: Years Ended December 31, 2021 2020 (Dollars in thousands) Beginning balance $ 16,898 $ 12,537 Undisbursed commitments 823 1,369 New loans granted 465 4,274 Principal repayments (998 ) (1,282 ) Ending balance of term loans 17,188 16,898 Year-end balance of revolving accounts 1,687 844 Total term loans and revolving accounts $ 18,875 $ 17,742 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | The income tax provision includes the following components: Years Ended December 31, 2021 2020 Government of Guam tax expense (benefit): Current $ 3,062 $ 5,578 Deferred 233 (2,114 ) Foreign income taxes (including U.S. income taxes) 1,800 - Total income tax expense $ 5,095 $ 3,464 |
Summary of Differences between Statutory Federal Income Tax Rate and Effective Tax Rates | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: 2021 2020 Statutory Guam income tax rate 21.00 % 21.00 % Permanent differences -2.90 % -1.51 % Other 1.86 % 2.22 % Total income tax expense 19.96 % 21.71 % |
Components of Deferred Income Taxes | The components of deferred income taxes are as follows: Years Ended December 31, 2021 2020 Deferred loan origination fees $ 167 $ (285 ) Loan loss provision (284 ) (1,526 ) Fixed assets 38 15 SERP (269 ) (271 ) Unfunded Commitment Reserve (12 ) - Other real estate owned valuation - 1 Mortgage servicing rights (1 ) (5 ) Right-of-use asset (425 ) (833 ) Lease liability 369 778 Accrued bonus (54 ) (11 ) Unearned Income (131 ) - Other 835 23 Net operating loss - (1,265 ) Change in valuation allowance - 1,265 Deferred tax (benefit) provision $ 233 $ (2,114 ) |
Components of Net Deferred Tax Asset | The components of the net deferred tax asset are as follows: Years Ended December 31, 2021 2020 Deferred tax asset: Allowance for loan losses $ 7,885 $ 7,602 Lease Liability 5,526 5,895 Net operating loss - 1,265 Loan origination fees 739 906 Net unrealized gain on securities available-for-sale 4,859 - Unearned income 131 Accruals not currently deductible 2,157 1,823 Total deferred tax asset 21,297 17,491 Deferred tax liability: Right-of-use asset (5,358 ) (5,783 ) Net unrealized gain on securities available-for-sale - (835 ) Fixed assets (713 ) (674 ) Mortgage servicing rights (362 ) (363 ) Investment in ASC (790 ) Others (71 ) (28 ) Total deferred tax liability (7,294 ) (7,683 ) Valuation allowance - (1,265 ) Net deferred tax asset $ 14,003 $ 8,543 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Changes in Projected Benefit Obligation of Other Benefits under Plan and its Funded Status | The changes in the projected benefit obligation of other benefits under the Plan during 2021 and 2020, its funded status at December 31, 2021 and 2020, and the amounts recognized in the balance sheet at December 31, 2021 and 2020, were as follows: Years Ended December 31, 2021 2020 Change in benefit obligation: Benefit obligation at beginning of period $ 8,243 $ 7,009 Service cost 588 930 Interest cost 356 304 Benefit obligation at end of period $ 9,187 $ 8,243 Funded status: Amounts recognized in the Statement of Financial Condition Unfunded accrued SERP liability—current $ 9,187 $ 8,243 Total unfunded accrued SERP liability $ 9,187 $ 8,243 Net amount recognized in accumulated other comprehensive income Prior service cost/(benefit) $ - $ - Net actuarial loss/(gain) - - Total net amount recognized in accumulated other comprehensive income - - Accumulated benefit obligation $ 9,187 $ 8,243 Components of net periodic SERP cost: Service cost $ 7,545 $ 6,957 Interest cost 1,642 1,286 Net periodic SERP cost $ 9,187 $ 8,243 Assumptions as of December 31: Assumed discount rate 4.33 % 4.33 % Rate of compensation increase 0.00 % 0.00 % |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Pro Forma [Abstract] | |
Summary of Earnings Per Common Share | Earnings per common share have been computed based on reported net income and the following share data: Years Ended December 31, 2021 2020 Net income available to BankGuam Holding Company $ 20,501 $ 12,492 Less preferred stock dividends (520 ) (548 ) Net income attributable to common stockholders $ 19,981 $ 11,944 Weighted average number of common shares outstanding - used to calculate basic and diluted earnings per common share 9,719 9,685 Earnings per common share (EPS): Basic and diluted EPS $ 2.06 $ 1.23 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments with Off-Balance-Sheet Risk | A summary of financial instruments with off-balance-sheet risk at December 31, 2021 and 2020, is as follows: December 31, 2021 2020 Commitments to extend credit $ 162,569 $ 159,405 Letters of credit: Standby letters of credit $ 43,239 $ 52,827 Commercial letters of credit 2,366 2,574 Total $ 45,605 $ 55,401 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Banking Regulation [Abstract] | |
Summary of Actual Capital Amounts and Ratios | The Company’s actual capital amounts and ratios as of December 31, 2021 and 2020 , are presented in the table below . Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio At December 31, 2021: Total capital (to Risk Weighted Assets) $ 222,493 15.161 % $ 117,403 8.000 % $ 146,753 10.000 % Tier 1 capital (to Risk Weighted Assets) $ 168,623 11.490 % $ 88,052 6.000 % $ 117,403 8.000 % Tier 1 capital (to Average Assets) $ 168,623 5.792 % $ 116,461 4.000 % $ 145,577 5.000 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 158,840 10.824 % $ 66,039 4.500 % $ 95,390 6.500 % At December 31, 2020: Total capital (to Risk Weighted Assets) $ 206,381 14.307 % $ 115,401 8.000 % $ 144,252 10.000 % Tier 1 capital (to Risk Weighted Assets) $ 173,141 12.003 % $ 86,551 6.000 % $ 115,401 8.000 % Tier 1 capital (to Average Assets) $ 173,141 7.466 % $ 92,765 4.000 % $ 115,956 5.000 % Common Equity Tier 1 Capital (to Risk Weighted Assets) $ 163,359 11.325 % $ 64,913 4.500 % $ 93,764 6.500 % |
Parent Company Only Informati_2
Parent Company Only Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Annual Financial Information | Condensed Statements of Financial Condition (Dollars in thousands) December 31, 2021 2020 Assets Due from subsidiaries $ 7,816 $ 2,245 Investment in subsidiaries 184,435 189,703 Goodwill 12,232 Intangible assets 10,249 Other assets (744 ) 9 Total assets $ 213,988 $ 191,957 Liabilities and stockholders’ equity Other liabilities 361 124 Subordinated debt, net 34,400 14,777 Total liabilities $ 34,761 $ 14,901 Stockholders’ equity 179,227 177,056 Total liabilities and stockholders’ equity $ 213,988 $ 191,957 |
Summary of Statements of Income | Condensed Statements of Income (Dollars in thousands) December 31, 2021 2020 Dividend income $ 4,153 $ 4,154 Interest expense (1,444 ) (955 ) Other expenses (1,646 ) (280 ) Equity in undistributed income of subsidiary 19,438 9,573 Net income $ 20,501 $ 12,492 |
Summary of Statements of Cash Flows | Condensed Statements of Cash Flows (Dollars in thousands) December 31, 2021 2020 Cash flows from operating activities: Net income $ 20,501 $ 12,492 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiary (19,438 ) (9,573 ) Depreciation and amortization 199 - Amortization of debt issuance costs 45 26 Net change in operating assets and liabilities: Other assets 753 4 Other liabilities 237 5 Net cash provided by operating activities 2,297 2,954 Cash flows from investing activities: Payments for investments in and advances to subsidiaries (8,900 ) - Increased investment in unconsolidated subsidiary (6,186 ) - Dividends received from consolidated subsidiary 742 635 Dividends received from unconsolidated subsidiary 2,058 855 Net cash (used in) provided by investing activities (12,286 ) 1,490 Cash flows from financing activities: Proceeds from issuance of subordinated debt 19,616 - Cash dividends paid (4,408 ) (4,422 ) Proceeds from issuance of common stock 352 305 Net cash (used in) provided by financing activities 15,560 (4,117 ) Net change in cash and cash equivalents 5,571 327 Cash and cash equivalents, beginning of period 2,245 1,918 Cash and cash equivalents, end of period $ 7,816 $ 2,245 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Financial assets measured at fair value on a recurring basis as of December 31, 2021 and 2020, are as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total At December 31, 2021 Available-for-sale Securities: U.S. treasury notes and bonds $ - $ - $ - $ - U.S. government agency and government sponsored enterprise (GSE) debt securities - 110,962 - 110,962 U.S. government agency pool securities - 20,861 - 20,861 U.S. government agency or GSE - 367,543 - 367,543 Total fair value of available-for-sale securities - 499,366 - 499,366 Other assets: MSRs - - 1,581 1,581 Total fair value $ - $ 499,366 $ 1,581 $ 500,947 At December 31, 2020 Available-for-sale Securities: U.S. treasury notes and bonds $ 5,005 $ - $ - $ 5,005 U.S. government agency and government sponsored enterprise (GSE) debt securities - 293,142 - 293,142 U.S. government agency pool securities - 28,606 - 28,606 U.S. government agency or GSE - 183,358 - 183,358 Total fair value of available-for-sale securities 5,005 505,106 - 510,111 Other assets: MSRs - - 1,683 1,683 Total fair value $ 5,005 $ 505,106 $ 1,683 $ 511,794 |
Assets Measured at Fair Value on Recurring Basis | During the periods ended December 31, 2021 and 2020, the changes in Level 3 assets (consisting solely of MSRs) measured at fair value on a recurring basis are as follows: Years Ended December 31, 2021 2021 Beginning balance $ 1,683 $ 1,704 Realized and unrealized net losses: Included in net income (102 ) (21 ) Ending balance $ 1,581 $ 1,683 |
Summary of Valuation Techniques and Unobservable Inputs | The following table presents quantitative information about the valuation technique and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis: Estimated Fair Value Valuation Technique Unobservable Inputs Range of Inputs Weighted Average Rate December 31, 2021 Financial instrument: MSRs $ 1,581 Discounted Cash Flow Discount Rate 6.02% - 7.93% 7.20% Weighted Average Prepayment Rate (Public Securities Association) 125% December 31, 2020 Financial instrument: MSRs $ 1,683 Discounted Cash Flow Discount Rate 6.06% - 7.74% 6.30% Weighted Average Prepayment Rate (Public Securities Association) 125% |
Fair Value of Other Financial Instruments | The estimated fair values of the Bank’s other financial instruments, excluding those assets recorded at fair value on a recurring basis on the Bank’s consolidated statements of condition, are as follows: Estimated Fair Value Carrying Amount Level 1 Level 2 Level 3 (Dollars in thousands) December 31, 2021 Financial assets: Cash and cash equivalents $ 557,403 $ 557,403 $ - $ - Restricted cash 150 150 - - Federal Home Loan Bank stock 2,814 - 2,814 - Investment securities held-to-maturity 312,294 - 310,372 - Loans, net 1,283,690 - - 1,330,529 Total $ 2,156,351 $ 557,553 $ 313,186 $ 1,330,529 Financial liabilities: Deposits 2,533,231 - - 2,527,806 Total $ 2,533,231 $ - $ - $ 2,527,806 December 31, 2020 Financial assets: Cash and cash equivalents $ 287,628 $ 287,628 $ - $ - Restricted cash 150 150 - - Federal Home Loan Bank stock 2,335 - 2,335 - Investment securities held-to-maturity 46,584 - 46,911 - Loans, net 1,392,722 - - 1,441,402 Total $ 1,729,419 $ 287,778 $ 49,246 $ 1,441,402 Financial liabilities: Deposits $ 2,118,844 $ - $ - $ 2,130,361 Total $ 2,118,844 $ - $ - $ 2,130,361 |
Schedule of Changes in Level 3 Loans and Deposits Measured at Fair Value on Non-Recurring Basis | During the periods ended December 31, 2021 and 2020, the changes in Level 3 loans and deposits measured at fair value on a non-recurring basis are as follows: Years Ended December 31, 2021 2020 Beginning loan balance $ 1,441,402 $ 1,310,822 Net issuances (110,873 ) 130,580 Ending loan balance $ 1,330,529 $ 1,441,402 Years Ended December 31, 2021 2020 Beginning deposit balance $ 2,130,361 $ 1,733,072 Net deposits 397,445 397,289 Ending deposit balance $ 2,527,806 $ 2,130,361 |
Summary of Quantitative Information about Valuation Technique and Unobservable Inputs to Level 3 Fair Value Measurements on Non-Recurring Basis | The following table presents quantitative information about the valuation technique and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis: Estimated Fair Value Valuation Technique Unobservable Inputs Range of Inputs Weighted Average Rate December 31, 2021 Financial instrument: Loans $ 1,330,529 Discounted Cash Flow Discount Rate 5.44% - 6.91% 6.18% Deposits $ 2,527,806 Discounted Cash Flow Discount Rate 0.03% - 0.48% 0.03% December 31, 2020 Financial instrument: Loans $ 1,441,402 Discounted Cash Flow Discount Rate 4.93% - 7.70% 5.98% Deposits $ 2,130,361 Discounted Cash Flow Discount Rate 0.03% - 0.63% 0.05% |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Related Assets and Liabilities Recorded as Part of Other Assets and Other Liabilities in Consolidated Statements of Financial Condition | The following table summarizes the lease-related assets and liabilities recorded as part of other assets and other liabilities in our consolidated statements of financial condition at December 31, 2021: December 31, 2021 December 31, 2020 Assets Operating lease right-of-use assets $ 23,379 $ 26,113 Total lease assets $ 23,379 $ 26,113 Liabilities Current Operating $ 1,926 $ 2,510 Noncurrent Operating 22,186 24,112 Total lease liabilities $ 24,112 $ 26,622 |
Schedule of Maturities of Lease Liabilities Under Operating Leases | The following table provides the maturities of lease liabilities at December 31, 2021: Operating Leases (a) Total 2022 $ 2,780 $ 2,780 2023 2,532 2,532 2024 2,420 2,420 2025 2,288 2,288 2026 2,054 2,054 After 2025 33,515 33,515 Total lease payments 45,589 45,589 Less: Interest (b) 21,477 21,477 Present value of lease liabilities (c) $ 24,112 $ 24,112 Note: For leases commencing prior to 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. (a) Operating lease payments include $21.5 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Calculated using the incremental borrowing rate based on the lease term for each lease. (c) Includes the current portion of $1.9 million for operating leases. |
Summary of Weighted-Average Lease Term and Discount Rate | The following table provides the weighted-average lease term and discount rate at December 31, 2021: Years Ended December 31, 2021 2020 Weighted-average remaining lease term (years) Operating leases 25.6 24.6 Weighted-average discount rate Operating leases 4.15 % 4.09 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The Company is in the process of obtaining third-party valuations of certain intangible assets; thus, the provisional measurements of intangible assets and goodwill are subject to change. Cash $ 546 Other current assets 1,287 Property and equipment, net 359 Intangible assets 11,090 Total identifiable assets 13,282 Current liabilities (472 ) Interest bearing debt (297 ) Total liabilities assumed (769 ) Net identifiable assets acquired 12,513 Goodwill 12,231 Net assets acquired $ 24,744 |
Summary of Changes in Goodwill | A summary of the changes in goodwill is as follows: 2021 2020 Variance Balance at beginning of year $ 783 $ 783 $ - Additions 12,231 - 12,231 Balance $ 13,014 $ 783 $ 12,231 |
Nature of Business - Additional
Nature of Business - Additional Information (Detail) - Branch | Dec. 31, 2021 | Jul. 06, 2021 | Jul. 01, 2016 |
Segment Reporting Information [Line Items] | |||
Ownership percentage | 70.00% | ||
Guam [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 7 | ||
CNMI [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 3 | ||
FSM [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 4 | ||
RMI [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 1 | ||
ROP [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 1 | ||
San Francisco, California [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 1 | ||
ASC Trust Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of Voting common stock acquire | 25.00% | ||
ASC Trust Corporation [Member] | Maximum [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of shares acquire | 70.00% | ||
Bank Branch [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of branches | 17 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Mar. 16, 2020 | Mar. 15, 2020 | Mar. 03, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 06, 2021 | Jul. 05, 2021 | Mar. 27, 2020 |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage | 70.00% | |||||||
Federal Reserve System cash reserves | $ 0 | $ 0 | ||||||
Federal reserve system cash reserves reduced percentage | 0.00% | |||||||
Federal reserve system cash reserves effective date | Mar. 26, 2020 | |||||||
Maturity of time deposits | 1 year | 1 year | ||||||
Interest-bearing Deposits in Banks and Other Financial Institutions | $ 520,743,000 | $ 244,753,000 | ||||||
Bank originated of mortgage loans held for sale | 26,300,000 | 31,500,000 | ||||||
Sale of mortgage loans held for sale | 26,300,000 | 31,500,000 | ||||||
Goodwill impairment | $ 0 | |||||||
Income taxes examination likelihood of realization settlement percentage | 50.00% | |||||||
Paycheck Protection Program [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Debt instrument, face amount | $ 56,600,000 | $ 93,400,000 | ||||||
COVID 19 [Member] | Paycheck Protection Program [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Debt instrument, face amount | $ 670,000,000,000 | |||||||
Base Rate [Member] | COVID 19 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 5.00% | |||||||
Minimum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Foreign income tax effective rate | 2.00% | |||||||
Minimum [Member] | COVID 19 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.00% | 1.00% | ||||||
Minimum [Member] | Premises [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful live | 15 years | |||||||
Minimum [Member] | Furniture and Equipment [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful live | 3 years | |||||||
Maximum [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Foreign income tax effective rate | 5.00% | |||||||
Maximum [Member] | COVID 19 [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.25% | 1.25% | ||||||
Maximum [Member] | Premises [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful live | 40 years | |||||||
Maximum [Member] | Furniture and Equipment [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Estimated useful live | 10 years | |||||||
Bank of Guam Trust Department Customer [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Interest-bearing Deposits in Banks and Other Financial Institutions | $ 150,000 | |||||||
ASC Trust LLC [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage | 70.00% | 45.00% |
Interest-Bearing Deposits and_2
Interest-Bearing Deposits and Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Bearing Deposits And Restricted Cash [Line Items] | ||
Interest bearing deposits at other financial institutions | $ 520,900 | $ 244,900 |
Weighted average percentage yields Interest bearing deposits at other financial institutions | 0.13% | 0.10% |
Restricted cash | $ 150 | $ 150 |
Maturity of time deposits | 1 year | 1 year |
Interest-bearing Deposits in Banks and Other Financial Institutions | $ 520,743 | $ 244,753 |
Weighted average percentage yields of restricted cash deposits | 0.02% | 0.03% |
Bank of Guam Trust Department Customer [Member] | ||
Interest Bearing Deposits And Restricted Cash [Line Items] | ||
Interest-bearing Deposits in Banks and Other Financial Institutions | $ 150 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Investment Securities, with Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | $ 505,494 | $ 506,135 |
Securities Available for Sale, Gross Unrealized Gains | 1,959 | 6,530 |
Securities Available for Sale, Gross Unrealized Losses | (8,087) | (2,554) |
Securities Available for Sale, Estimated Fair Value | 499,366 | 510,111 |
Securities Held to Maturity, Amortized Cost | 312,294 | 46,584 |
Securities Held to Maturity, Gross Unrealized Gains | 113 | 388 |
Securities Held to Maturity, Gross Unrealized Losses | (2,035) | (61) |
Securities Held to Maturity, Estimated Fair Value | 310,372 | 46,911 |
U.S. Government Agency and Government Sponsored Enterprise (GSE) Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 114,969 | 300,440 |
Securities Available for Sale, Gross Unrealized Gains | 54 | |
Securities Available for Sale, Gross Unrealized Losses | (4,007) | (2,348) |
Securities Available for Sale, Estimated Fair Value | 110,962 | 298,146 |
Securities Held to Maturity, Amortized Cost | 276,188 | 33,221 |
Securities Held to Maturity, Gross Unrealized Gains | 93 | |
Securities Held to Maturity, Gross Unrealized Losses | (1,621) | (15) |
Securities Held to Maturity, Estimated Fair Value | 274,567 | 33,299 |
U.S. Government Agency Pool Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 21,106 | 28,783 |
Securities Available for Sale, Gross Unrealized Gains | 2 | 29 |
Securities Available for Sale, Gross Unrealized Losses | (247) | (206) |
Securities Available for Sale, Estimated Fair Value | 20,861 | 28,606 |
Securities Held to Maturity, Amortized Cost | 3,028 | 4,515 |
Securities Held to Maturity, Gross Unrealized Gains | 8 | 15 |
Securities Held to Maturity, Gross Unrealized Losses | (45) | (36) |
Securities Held to Maturity, Estimated Fair Value | 2,991 | 4,494 |
U.S. Government Agency or GSE Residential Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Amortized Cost | 369,419 | 176,912 |
Securities Available for Sale, Gross Unrealized Gains | 1,957 | 6,447 |
Securities Available for Sale, Gross Unrealized Losses | (3,833) | |
Securities Available for Sale, Estimated Fair Value | 367,543 | 183,359 |
Securities Held to Maturity, Amortized Cost | 33,078 | 8,848 |
Securities Held to Maturity, Gross Unrealized Gains | 105 | 280 |
Securities Held to Maturity, Gross Unrealized Losses | (369) | (10) |
Securities Held to Maturity, Estimated Fair Value | $ 32,814 | $ 9,118 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | Jul. 06, 2021USD ($) | Dec. 31, 2021USD ($)Securities | Dec. 31, 2020USD ($) | Jun. 29, 2021USD ($) |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities at carrying value, pledged | $ 558,800,000 | $ 360,600,000 | ||
Proceeds from sales of available-for-sale securities | 46,993,000 | 132,014,000 | ||
Gross realized gains | 272,000 | 265,000 | ||
Gross realized losses | 0 | 0 | ||
Gross unrealized gains | 1,959,000 | 6,530,000 | ||
Gross unrealized losses | 8,087,000 | 2,554,000 | ||
Available for sale debt securities | $ 499,366,000 | 510,111,000 | ||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 159 | |||
Notes, aggregate principal amount | $ 34,400,000 | $ 14,777,000 | ||
Proceeds used to acquire additional stock | $ 19,576,000 | |||
ASC Trust LLC [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Proceeds used to acquire additional stock | $ 6,200,000 | |||
Percentage of Voting common stock acquire | 25.00% | 25.00% | ||
Stock purchase agreement date | May 27, 2016 | |||
Non-controlling interest | 70.00% | |||
ASC Trust LLC [Member] | Subordinated Notes [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Notes, aggregate principal amount | $ 20,000,000 | |||
ASC Trust LLC [Member] | Director | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Percentage of non minority voting of common stock owned | 5.00% | |||
U.S. Government Corporations and Agencies [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Available for sale debt securities | $ 817,800,000 | |||
Small Business Administration (SBA) Pool Securities [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Available for sale debt securities | $ 24,100,000 | |||
Estimated average remaining life securities | 3 years 6 months | |||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 35 | |||
Residential Mortgage Backed Securities [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Available for sale debt securities | $ 402,500,000 | |||
Estimated average remaining life securities | 4 years 10 months 24 days | |||
Government National Mortgage Association (GNMA) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 1 | |||
Mortgage Backed Securities Issued By Federal National Mortgage Association (FNMA) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 38 | |||
Mortgage-Backed Securities Issued by Federal Home Loan Corporation (FHLMC) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 21 | |||
Agency Security Issued by Federal National Mortgage Association (FNMA) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 1 | |||
Agency Securities Issued by Federal Home Loan Bank (FHLB) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 26 | |||
Agency Security Issued by Federal Farm Credit Banks (FFCB) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 18 | |||
Agency Securities Issued by Federal Home Loan Mortgage Corporation (FHLMC) [Member] | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Investment securities in unrealized loss position were other-than-temporarily impaired | Securities | 19 |
Investment Securities - Summa_2
Investment Securities - Summary of Proceeds and Gross Realized Gains (Losses) from Sales or Calls of Investment Securities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | ||
Proceeds from sales of available-for-sale securities | $ 46,993,000 | $ 132,014,000 |
Gross realized gains from sales | 272,000 | 265,000 |
Gross realized losses from sales | $ 0 | $ 0 |
Investment Securities - Summa_3
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Available for sale, Amortized cost, Due within one year | $ 105 | $ 5,115 |
Available for sale, Amortized cost, Due after one but within five years | 8,331 | 13,255 |
Available for sale, Amortized cost, Due after five but within ten years | 151,682 | 129,708 |
Available for sale, Amortized cost, Due after ten years | 345,376 | 358,057 |
Securities Available for Sale, Amortized Cost | 505,494 | 506,135 |
Available for sale, Estimated Fair Value, Due within one year | 105 | 5,121 |
Available for sale, Estimated Fair Value, Due after one but within five years | 8,377 | 13,432 |
Available for sale, Estimated Fair Value, Due after five but within ten years | 148,389 | 131,340 |
Available for sale, Estimated Fair Value, Due after ten years | 342,495 | 360,218 |
Securities Available for Sale, Estimated Fair Value | 499,366 | 510,111 |
Held to Maturity, Amortized Cost, Due within one year | 11,990 | |
Held to Maturity, Amortized Cost, Due after one but within five years | 1,228 | 2,325 |
Held to Maturity, Amortized Cost, Due after five but within ten years | 62,925 | 26,214 |
Held to Maturity, Amortized Cost, Due after ten years | 248,141 | 6,055 |
Securities Held to Maturity, Amortized Cost | 312,294 | 46,584 |
Held to maturity, Estimated Fair Value, Due within one year | 12,070 | |
Held to maturity, Estimated Fair Value, Due after one but within five years | 1,246 | 2,358 |
Held to maturity, Estimated Fair Value, Due after five but within ten years | 62,257 | 26,348 |
Held to maturity, Estimated Fair Value, Due after ten years | 246,869 | 6,135 |
Securities Held to Maturity, Estimated Fair Value | $ 310,372 | $ 46,911 |
Investment Securities - Summa_4
Investment Securities - Summary of Gross Unrealized Losses and Fair Value of Investments, with Unrealized Losses of Temporarily Impaired Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Unrealized Losses, Less Than Twelve Months | $ (6,728) | $ (2,370) |
Securities Available for Sale, Estimated Fair Value, Less Than Twelve Months | 377,845 | 246,824 |
Securities Available for Sale, Unrealized Losses, More Than Twelve Months | (1,359) | (184) |
Securities Available for Sale, Estimated Fair Value, More Than Twelve Months | 43,560 | 22,672 |
Securities Available for Sale, Unrealized Losses, Total | (8,087) | (2,554) |
Securities Available for Sale, Estimated Fair Value, Total | 421,405 | 269,496 |
Securities Held to Maturity, Unrealized Losses, Less Than Twelve Months | (1,794) | (25) |
Securities Held to Maturity, Estimated Fair Value, Less Than Twelve Months | 189,845 | 15,491 |
Securities Held to Maturity, Unrealized Losses, More Than Twelve Months | (241) | (36) |
Securities Held to Maturity, Estimated Fair Value, More Than Twelve Months | 115,658 | 2,923 |
Securities Held to Maturity, Unrealized Losses, Total | (2,035) | (61) |
Securities Held to Maturity, Estimated Fair Value, Total | 305,503 | 18,414 |
U.S. Government Agency and Government Sponsored Enterprise (GSE) Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Unrealized Losses, Less Than Twelve Months | (2,824) | (2,348) |
Securities Available for Sale, Estimated Fair Value, Less Than Twelve Months | 82,145 | 243,089 |
Securities Available for Sale, Unrealized Losses, More Than Twelve Months | (1,183) | |
Securities Available for Sale, Estimated Fair Value, More Than Twelve Months | 28,817 | |
Securities Available for Sale, Unrealized Losses, Total | (4,007) | (2,348) |
Securities Available for Sale, Estimated Fair Value, Total | 110,962 | 243,089 |
Securities Held to Maturity, Unrealized Losses, Less Than Twelve Months | (1,395) | (15) |
Securities Held to Maturity, Estimated Fair Value, Less Than Twelve Months | 159,840 | 14,985 |
Securities Held to Maturity, Unrealized Losses, More Than Twelve Months | (226) | |
Securities Held to Maturity, Estimated Fair Value, More Than Twelve Months | 114,726 | |
Securities Held to Maturity, Unrealized Losses, Total | (1,621) | (15) |
Securities Held to Maturity, Estimated Fair Value, Total | 274,566 | 14,985 |
U.S. Government Agency Pool Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Unrealized Losses, Less Than Twelve Months | (71) | (22) |
Securities Available for Sale, Estimated Fair Value, Less Than Twelve Months | 5,127 | 3,735 |
Securities Available for Sale, Unrealized Losses, More Than Twelve Months | (176) | (184) |
Securities Available for Sale, Estimated Fair Value, More Than Twelve Months | 14,743 | 22,672 |
Securities Available for Sale, Unrealized Losses, Total | (247) | (206) |
Securities Available for Sale, Estimated Fair Value, Total | 19,870 | 26,407 |
Securities Held to Maturity, Unrealized Losses, Less Than Twelve Months | (37) | |
Securities Held to Maturity, Estimated Fair Value, Less Than Twelve Months | 1,507 | |
Securities Held to Maturity, Unrealized Losses, More Than Twelve Months | (8) | (36) |
Securities Held to Maturity, Estimated Fair Value, More Than Twelve Months | 403 | 2,923 |
Securities Held to Maturity, Unrealized Losses, Total | (45) | (36) |
Securities Held to Maturity, Estimated Fair Value, Total | 1,910 | 2,923 |
U.S. Government Agency or GSE Residential Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities Available for Sale, Unrealized Losses, Less Than Twelve Months | (3,833) | |
Securities Available for Sale, Estimated Fair Value, Less Than Twelve Months | 290,573 | |
Securities Available for Sale, Unrealized Losses, Total | (3,833) | |
Securities Available for Sale, Estimated Fair Value, Total | 290,573 | |
Securities Held to Maturity, Unrealized Losses, Less Than Twelve Months | (362) | (10) |
Securities Held to Maturity, Estimated Fair Value, Less Than Twelve Months | 28,498 | 506 |
Securities Held to Maturity, Unrealized Losses, More Than Twelve Months | (7) | |
Securities Held to Maturity, Estimated Fair Value, More Than Twelve Months | 529 | |
Securities Held to Maturity, Unrealized Losses, Total | (369) | (10) |
Securities Held to Maturity, Estimated Fair Value, Total | $ 29,027 | $ 506 |
Loans - Additional Information
Loans - Additional Information (Detail) | Mar. 18, 2022USD ($) | Dec. 31, 2021USD ($)SecurityLoanBorrowing | Dec. 31, 2020USD ($) | Mar. 27, 2020USD ($) |
Accounts Notes And Loans Receivable [Line Items] | ||||
Deferred fee (income) costs | $ 3,223,000 | $ 4,159,000 | ||
Number of borrowing relationships | Borrowing | 10 | |||
Gross loans, total amount | $ 1,321,321,000 | $ 1,431,686,000 | ||
Gross loans, Total Percent | 100.00% | 100.00% | ||
All loans and credit cards delinquent | 90 days | |||
Real estate loans delinquent | 90 days | |||
Delinquent real estate loans foreclosure completion period | 90 days | |||
Period for loans delinquent under formula category | 60 days | |||
Decrease in allowance for loan losses | $ 397,000,000 | |||
Reversal to provision | 7,000,000 | |||
Reserve for allowance for loan losses at period end | $ 0 | |||
Accrual of interest payments on loan | 90 days | |||
Troubled Debt Restructurings (TDRs) | $ 38,678,000 | $ 20,655,000 | ||
Number of days deferrals residential mortgage and commercial loans | 90 days | |||
Number of days deferrals for consumer and auto mobile loans | 90 days | |||
Number of days troubled debt restructurings loans delinquent | 30 days | |||
Number of days of specific reserve for consumer loans deferred and increased environmental factors | 90 days | |||
COVID 19 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Specific reserve | $ 3,000,000 | |||
Minimum [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of Loan collateralized | 110.00% | |||
Paycheck Protection Program [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Debt instrument, term | 2 years | |||
Debt instrument, interest rate | 1.00% | |||
Debt instrument, face amount | $ 56,600,000 | 93,400,000 | ||
Proceeds from loans fund | 56,600,000 | 93,400,000 | ||
Debt instrument, forgiven amount | 124,600,000 | 7,700,000 | ||
Debt instrument, outstanding balance | $ 25,700,000 | |||
Paycheck Protection Program [Member] | COVID 19 [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Debt instrument, face amount | $ 670,000,000,000 | |||
Paycheck Protection Program [Member] | Subsequent Event [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Debt instrument, forgiven amount | $ 132,300,000 | |||
5-Year Paycheck Protection Program [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Debt instrument, term | 5 years | |||
Debt instrument, interest rate | 1.00% | |||
10 Largest Borrowing Relationship [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 342,600,000 | $ 345,000,000 | ||
Gross loans, Total Percent | 25.90% | 24.10% | ||
Commercial Agriculture [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of loans outstanding | SecurityLoan | 2 | |||
Gross loans, total amount | $ 592,000 | $ 629,000 |
Loans - Loan Portfolio (Detail)
Loans - Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 1,321,321 | $ 1,431,686 | ||
Deferred loan (fees) costs, net | (3,223) | (4,159) | ||
Allowance for loan losses | (34,408) | (34,805) | $ (27,870) | |
Loans, net | $ 1,283,690 | $ 1,392,722 | ||
Commercial, Percent | 77.10% | 77.10% | ||
Consumer, Percent | 22.90% | 22.90% | ||
Gross loans, Total Percent | 100.00% | 100.00% | ||
Automobile [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 18,220 | $ 19,923 | ||
Consumer, Percent | 1.40% | 1.40% | ||
Residential Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 135,377 | $ 127,371 | ||
Consumer, Percent | 10.20% | 8.90% | ||
Home Equity [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 2,232 | $ 2,076 | ||
Consumer, Percent | 0.20% | 0.10% | ||
Commercial & Industrial [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 295,835 | $ 366,942 | ||
Commercial, Percent | 22.40% | 25.60% | ||
Commercial Mortgage [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 699,269 | $ 685,138 | ||
Commercial, Percent | 52.90% | 47.90% | ||
Commercial Construction Loan [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 23,588 | $ 51,785 | ||
Commercial, Percent | 1.80% | 3.60% | ||
Commercial Agriculture [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 592 | $ 629 | ||
Commercial, Percent | 0.00% | 0.00% | ||
Other Consumer Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | [1],[2] | $ 146,208 | $ 177,822 | |
Consumer, Percent | [2] | 11.10% | 12.50% | |
Commercial [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 1,019,284 | $ 1,104,494 | ||
Allowance for loan losses | (22,860) | (21,213) | $ (18,360) | |
Consumer Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans, total amount | $ 302,037 | $ 327,192 | ||
[1] | Comprised of other revolving credit, installment loans, and overdrafts. | |||
[2] | Comprised of other revolving credit, installment, and overdrafts. |
Loans - Loan Balances and Relat
Loans - Loan Balances and Related Allowance for Loan Losses, by Portfolio Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for loan losses: | ||
Balance at beginning of period | $ 34,805 | $ 27,870 |
Charge-offs | (4,950) | (5,628) |
Recoveries | 2,403 | 2,205 |
Provision | 2,150 | 10,358 |
Balance at end of period | 34,408 | 34,805 |
Allowance balance at end of period related to: | ||
Loans individually evaluated for impairment | 4,501 | 4,768 |
Loans collectively evaluated for impairment | 29,907 | 30,037 |
Balance at end of period | 34,408 | 34,805 |
Loan balances at end of period: | ||
Loans individually evaluated for impairment | 51,783 | 40,104 |
Loans collectively evaluated for impairment | 1,269,538 | 1,391,582 |
Ending balance | 1,321,321 | 1,431,686 |
Commercial [Member] | ||
Allowance for loan losses: | ||
Balance at beginning of period | 21,213 | 18,360 |
Charge-offs | (115) | (1,069) |
Recoveries | 578 | 399 |
Provision | 1,184 | 3,523 |
Balance at end of period | 22,860 | 21,213 |
Allowance balance at end of period related to: | ||
Loans individually evaluated for impairment | 3,510 | 3,500 |
Loans collectively evaluated for impairment | 19,350 | 17,713 |
Balance at end of period | 22,860 | 21,213 |
Loan balances at end of period: | ||
Loans individually evaluated for impairment | 48,459 | 36,031 |
Loans collectively evaluated for impairment | 970,825 | 1,068,463 |
Ending balance | 1,019,284 | 1,104,494 |
Residential Mortgage And Home Equity [Member] | ||
Allowance for loan losses: | ||
Balance at beginning of period | 1,990 | 1,490 |
Charge-offs | (99) | |
Recoveries | 1 | |
Provision | 412 | 500 |
Balance at end of period | 2,304 | 1,990 |
Allowance balance at end of period related to: | ||
Loans individually evaluated for impairment | 50 | 4 |
Loans collectively evaluated for impairment | 2,254 | 1,986 |
Balance at end of period | 2,304 | 1,990 |
Loan balances at end of period: | ||
Loans individually evaluated for impairment | 2,265 | 2,730 |
Loans collectively evaluated for impairment | 135,343 | 126,717 |
Ending balance | 137,608 | 129,447 |
Consumer [Member] | ||
Allowance for loan losses: | ||
Balance at beginning of period | 11,602 | 8,020 |
Charge-offs | (4,736) | (4,559) |
Recoveries | 1,824 | 1,806 |
Provision | 554 | 6,335 |
Balance at end of period | 9,244 | 11,602 |
Allowance balance at end of period related to: | ||
Loans individually evaluated for impairment | 941 | 1,264 |
Loans collectively evaluated for impairment | 8,303 | 10,338 |
Balance at end of period | 9,244 | 11,602 |
Loan balances at end of period: | ||
Loans individually evaluated for impairment | 1,059 | 1,343 |
Loans collectively evaluated for impairment | 163,370 | 196,402 |
Ending balance | $ 164,429 | $ 197,745 |
Loans - Summary of Delinquency
Loans - Summary of Delinquency Status of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 23,461 | $ 88,056 | |
Total Loans Outstanding | 1,321,321 | 1,431,686 | |
Automobile [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 610 | 807 | |
Total Loans Outstanding | 18,220 | 19,923 | |
Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 3,774 | 7,867 | |
Total Loans Outstanding | 135,377 | 127,371 | |
Home Equity [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans Outstanding | 2,232 | 2,076 | |
Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 7,702 | 26,075 | |
Total Loans Outstanding | 295,835 | 366,942 | |
Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 7,379 | 47,129 | |
Total Loans Outstanding | 699,269 | 685,138 | |
Commercial Construction Loan [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans Outstanding | 23,588 | 51,785 | |
Commercial Agriculture [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Loans Outstanding | 592 | 629 | |
Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | [1] | 3,996 | 6,178 |
Total Loans Outstanding | [1],[2] | 146,208 | 177,822 |
30-59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 7,234 | 31,705 | |
30-59 Days Past Due [Member] | Automobile [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 407 | 580 | |
30-59 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,194 | 4,758 | |
30-59 Days Past Due [Member] | Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 56 | 13,712 | |
30-59 Days Past Due [Member] | Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,540 | 9,183 | |
30-59 Days Past Due [Member] | Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | [1] | 2,037 | 3,472 |
60-89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,841 | 43,938 | |
60-89 Days Past Due [Member] | Automobile [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 162 | 184 | |
60-89 Days Past Due [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,236 | 1,833 | |
60-89 Days Past Due [Member] | Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 202 | 3,857 | |
60-89 Days Past Due [Member] | Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 217 | 36,562 | |
60-89 Days Past Due [Member] | Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | [1] | 1,024 | 1,502 |
90 Days and Greater Non-Accrual [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 12,296 | 10,287 | |
90 Days and Greater Non-Accrual [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 267 | 1,147 | |
90 Days and Greater Non-Accrual [Member] | Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 7,338 | 8,119 | |
90 Days and Greater Non-Accrual [Member] | Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 4,622 | 913 | |
90 Days and Greater Non-Accrual [Member] | Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | [1] | 69 | 108 |
90 Days and Greater Still Accruing [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,090 | 2,126 | |
90 Days and Greater Still Accruing [Member] | Automobile [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 41 | 43 | |
90 Days and Greater Still Accruing [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 77 | 129 | |
90 Days and Greater Still Accruing [Member] | Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 106 | 387 | |
90 Days and Greater Still Accruing [Member] | Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 471 | ||
90 Days and Greater Still Accruing [Member] | Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | [1] | 866 | 1,096 |
Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,297,860 | 1,343,630 | |
Current [Member] | Automobile [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 17,610 | 19,116 | |
Current [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 131,603 | 119,504 | |
Current [Member] | Home Equity [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,232 | 2,076 | |
Current [Member] | Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 288,133 | 340,867 | |
Current [Member] | Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 691,890 | 638,009 | |
Current [Member] | Commercial Construction Loan [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 23,588 | 51,785 | |
Current [Member] | Commercial Agriculture [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 592 | 629 | |
Current [Member] | Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | [1] | 142,212 | 171,644 |
Commercial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 15,081 | 73,204 | |
Total Loans Outstanding | 1,019,284 | 1,104,494 | |
Commercial [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,596 | 22,895 | |
Commercial [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 419 | 40,419 | |
Commercial [Member] | 90 Days and Greater Non-Accrual [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 11,960 | 9,032 | |
Commercial [Member] | 90 Days and Greater Still Accruing [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 106 | 858 | |
Commercial [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,004,203 | 1,031,290 | |
Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 8,380 | 14,852 | |
Total Loans Outstanding | 302,037 | 327,192 | |
Consumer Loans [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 4,638 | 8,810 | |
Consumer Loans [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 2,422 | 3,519 | |
Consumer Loans [Member] | 90 Days and Greater Non-Accrual [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 336 | 1,255 | |
Consumer Loans [Member] | 90 Days and Greater Still Accruing [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 984 | 1,268 | |
Consumer Loans [Member] | Current [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 293,657 | $ 312,340 | |
[1] | Comprised of other revolving credit, installment loans, and overdrafts. | ||
[2] | Comprised of other revolving credit, installment, and overdrafts. |
Loans - Loans on Non-Accrual St
Loans - Loans on Non-Accrual Status, by Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | $ 17,570 | $ 18,139 | |
Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | 1,660 | 2,575 | |
Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | 7,610 | 8,750 | |
Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | 8,148 | 6,618 | |
Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | [1] | 152 | 196 |
Commercial [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | 15,758 | 15,368 | |
Consumer Loans [Member] | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Non-accrual loans | $ 1,812 | $ 2,771 | |
[1] | Comprised of other revolving credit, installment loans, and overdrafts. |
Loans - Summary of Loans by Por
Loans - Summary of Loans by Portfolio Type and Internal Credit Quality Ratings (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | $ 1,321,321 | $ 1,431,686 | |
Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 1,232,092 | 1,314,587 | |
Special Mention [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 20,811 | 24,623 | |
Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 57,921 | 80,014 | |
Formula Classified [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 2,645 | 3,562 | |
Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 7,852 | 8,900 | |
Automobile [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 18,220 | 19,923 | |
Automobile [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 18,179 | 19,880 | |
Automobile [Member] | Formula Classified [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 41 | 43 | |
Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 135,377 | 127,371 | |
Residential Mortgage Loans [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 133,176 | 123,017 | |
Residential Mortgage Loans [Member] | Special Mention [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 1,695 | ||
Residential Mortgage Loans [Member] | Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 613 | 433 | |
Residential Mortgage Loans [Member] | Formula Classified [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 1,588 | 2,226 | |
Home Equity [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 2,232 | 2,076 | |
Home Equity [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 2,232 | 2,076 | |
Commercial & Industrial [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 295,835 | 366,942 | |
Commercial & Industrial [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 266,300 | 314,201 | |
Commercial & Industrial [Member] | Special Mention [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 9,760 | 6,643 | |
Commercial & Industrial [Member] | Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 12,645 | 37,920 | |
Commercial & Industrial [Member] | Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 7,130 | 8,178 | |
Commercial Mortgage [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 699,269 | 685,138 | |
Commercial Mortgage [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 642,835 | 626,477 | |
Commercial Mortgage [Member] | Special Mention [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 11,051 | 16,285 | |
Commercial Mortgage [Member] | Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 44,661 | 41,654 | |
Commercial Mortgage [Member] | Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 722 | 722 | |
Commercial Construction Loan [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 23,588 | 51,785 | |
Commercial Construction Loan [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 23,588 | 51,785 | |
Commercial Agriculture [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 592 | 629 | |
Commercial Agriculture [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 592 | 629 | |
Other Consumer Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | [1],[2] | 146,208 | 177,822 |
Other Consumer Loans [Member] | Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 145,190 | 176,522 | |
Other Consumer Loans [Member] | Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | 2 | 7 | |
Other Consumer Loans [Member] | Formula Classified [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Gross loans, total amount | $ 1,016 | $ 1,293 | |
[1] | Comprised of other revolving credit, installment loans, and overdrafts. | ||
[2] | Comprised of other revolving credit, installment, and overdrafts. |
Loans - Non-Accrual Loans and R
Loans - Non-Accrual Loans and Restructured Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Restructured loans: | ||
Non-accruing restructured loans | $ 6,083 | $ 4,718 |
Accruing restructured loans | 32,595 | 15,937 |
Total restructured loans | 38,678 | 20,655 |
Other impaired loans | 13,105 | 19,450 |
Total impaired loans | 51,783 | 40,105 |
Impaired loans less than 90 days delinquent and included in total impaired loans | $ 38,398 | $ 27,664 |
Loans - Information Related to
Loans - Information Related to Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable Impaired [Line Items] | ||
Total impaired loans with no related allowance, Recorded Investment | $ 48,699 | $ 36,138 |
Total impaired loans with no related allowance, Unpaid Principal Balance | 48,946 | 36,385 |
Total impaired loans with no related allowance, Average Recorded Investment | 114,493 | 33,715 |
Total impaired loans with no related allowance, Interest Income Recognized | 205 | 147 |
Total impaired loans with a related allowance recorded, Recorded Investment | 3,084 | 3,967 |
Total impaired loans with a related allowance recorded, Unpaid Principal Balance | 3,109 | 4,304 |
Total impaired loans with a related allowance recorded, Average Recorded Investment | 3,394 | 4,219 |
Total impaired loans with a related allowance recorded, Interest Income Recognized | 12 | 4 |
Automobile [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Total impaired loans with a related allowance recorded, Recorded Investment | 41 | 43 |
Total impaired loans with a related allowance recorded, Unpaid Principal Balance | 41 | 43 |
Total impaired loans with a related allowance recorded, Average Recorded Investment | 29 | 71 |
Total impaired loans with a related allowance recorded, Interest Income Recognized | 1 | |
Residential Mortgage Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Total impaired loans with no related allowance, Recorded Investment | 612 | 432 |
Total impaired loans with no related allowance, Unpaid Principal Balance | 612 | 432 |
Total impaired loans with no related allowance, Average Recorded Investment | 221 | 692 |
Total impaired loans with a related allowance recorded, Recorded Investment | 1,653 | 2,298 |
Total impaired loans with a related allowance recorded, Unpaid Principal Balance | 1,663 | 2,308 |
Total impaired loans with a related allowance recorded, Average Recorded Investment | 1,921 | 2,887 |
Total impaired loans with a related allowance recorded, Interest Income Recognized | 1 | (27) |
Commercial & Industrial [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Total impaired loans with no related allowance, Recorded Investment | 11,150 | 23,745 |
Total impaired loans with no related allowance, Unpaid Principal Balance | 11,150 | 23,745 |
Total impaired loans with no related allowance, Average Recorded Investment | 75,812 | 23,986 |
Total impaired loans with no related allowance, Interest Income Recognized | 56 | 102 |
Total impaired loans with a related allowance recorded, Recorded Investment | 262 | 294 |
Total impaired loans with a related allowance recorded, Unpaid Principal Balance | 262 | 607 |
Total impaired loans with a related allowance recorded, Average Recorded Investment | 116 | 282 |
Total impaired loans with a related allowance recorded, Interest Income Recognized | 2 | 4 |
Commercial Mortgage [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Total impaired loans with no related allowance, Recorded Investment | 36,935 | 11,954 |
Total impaired loans with no related allowance, Unpaid Principal Balance | 37,182 | 12,201 |
Total impaired loans with no related allowance, Average Recorded Investment | 38,456 | 9,030 |
Total impaired loans with no related allowance, Interest Income Recognized | 149 | 45 |
Total impaired loans with a related allowance recorded, Recorded Investment | 112 | 39 |
Total impaired loans with a related allowance recorded, Unpaid Principal Balance | 127 | 54 |
Total impaired loans with a related allowance recorded, Average Recorded Investment | 75 | 95 |
Other Consumer Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Total impaired loans with no related allowance, Recorded Investment | 2 | 7 |
Total impaired loans with no related allowance, Unpaid Principal Balance | 2 | 7 |
Total impaired loans with no related allowance, Average Recorded Investment | 4 | 7 |
Total impaired loans with a related allowance recorded, Recorded Investment | 1,016 | 1,293 |
Total impaired loans with a related allowance recorded, Unpaid Principal Balance | 1,016 | 1,292 |
Total impaired loans with a related allowance recorded, Average Recorded Investment | 1,253 | 884 |
Total impaired loans with a related allowance recorded, Interest Income Recognized | $ 8 | $ 27 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)SecurityLoan | Dec. 31, 2020USD ($) | |
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 22 | |
Pre-Modification Outstanding Recorded Investment | $ 41,657 | |
Post-Modification Outstanding Recorded Investment | 41,657 | |
Outstanding Balance | $ 38,678 | $ 20,655 |
Performing [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 11 | |
Pre-Modification Outstanding Recorded Investment | $ 32,873 | |
Post-Modification Outstanding Recorded Investment | 32,873 | |
Outstanding Balance | $ 32,595 | 15,936 |
Performing [Member] | Commercial & Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 10 | |
Pre-Modification Outstanding Recorded Investment | $ 3,974 | |
Post-Modification Outstanding Recorded Investment | 3,974 | |
Outstanding Balance | $ 3,696 | |
Performing [Member] | Commercial Mortgage [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 28,899 | |
Post-Modification Outstanding Recorded Investment | 28,899 | |
Outstanding Balance | $ 28,899 | 15,936 |
Nonperforming [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 11 | |
Pre-Modification Outstanding Recorded Investment | $ 8,784 | |
Post-Modification Outstanding Recorded Investment | 8,784 | |
Outstanding Balance | $ 6,083 | 4,719 |
Nonperforming [Member] | Commercial & Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 275 | |
Post-Modification Outstanding Recorded Investment | 275 | |
Outstanding Balance | $ 142 | |
Nonperforming [Member] | Commercial Mortgage [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | SecurityLoan | 9 | |
Pre-Modification Outstanding Recorded Investment | $ 8,509 | |
Post-Modification Outstanding Recorded Investment | 8,509 | |
Outstanding Balance | $ 5,941 | 4,671 |
Nonperforming [Member] | Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Outstanding Balance | $ 48 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 69,198 | $ 68,886 |
Accumulated Depreciation | (48,396) | (48,965) |
Net Book Value | 20,802 | 19,921 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 29,281 | 28,952 |
Accumulated Depreciation | (22,797) | (22,001) |
Net Book Value | 6,484 | 6,951 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 28,494 | 27,688 |
Accumulated Depreciation | (20,135) | (21,173) |
Net Book Value | 8,359 | 6,515 |
Automobiles and Mobile Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,071 | 1,721 |
Accumulated Depreciation | (1,223) | (1,182) |
Net Book Value | 848 | 539 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 6,520 | 6,841 |
Accumulated Depreciation | (4,241) | (4,609) |
Net Book Value | 2,279 | 2,232 |
Property Plant and Equipment Other than Construction In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 66,366 | 65,202 |
Accumulated Depreciation | (48,396) | (48,965) |
Net Book Value | 17,970 | 16,237 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,832 | 3,684 |
Net Book Value | $ 2,832 | $ 3,684 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 4,640 | $ 3,945 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Bank Owned Life Insurance | $ 29,890 | $ 28,798 |
Prepaid income tax | 482 | |
Prepaid expenses | 9,130 | 6,919 |
Deferred tax asset, net (Note 12) | 14,003 | 8,543 |
Mortgage servicing rights (Note 18) | 1,581 | 1,683 |
Right-of-use asset (Note 19) | $ 23,379 | $ 26,113 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets |
Accounts receivable | $ 5,069 | $ 3,108 |
Other | 1,086 | 1,176 |
Total other assets | $ 84,620 | $ 76,340 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Non-interest bearing deposits | $ 981,537 | $ 770,037 |
Interest bearing deposits: | ||
Demand deposits | 401,753 | 322,933 |
Regular savings | 801,101 | 754,042 |
Time deposits: | ||
$250,000 or more | 14,201 | 14,201 |
Less than $250,000 | 15,696 | 14,569 |
Other interest bearing deposits | 318,943 | 243,062 |
Total interest bearing deposits | 1,551,694 | 1,348,807 |
Total deposits | $ 2,533,231 | $ 2,118,844 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Time Deposits [Abstract] | |
2022 | $ 26,322 |
2023 | 1,091 |
2024 | 1,318 |
2025 | 295 |
2026 and thereafter | 871 |
Time deposits, Total | $ 29,897 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Maximum borrowing capacity represented as percentage of assets | 35.00% | |
Outstanding advances against credit line | $ 0 | $ 0 |
Federal Funds lines of credit available | 35,000,000 | 27,000,000 |
Outstanding borrowings | 0 | |
FRB Discount Window [Member] | ||
Investment securities | 18,500,000 | 18,400,000 |
Borrowing capacity | $ 17,800,000 | 17,900,000 |
Average federal reserve margin | 96.00% | |
Outstanding borrowings | $ 0 | $ 0 |
Transactions with Directors o_3
Transactions with Directors of the Company- Summary of Loan Transactions with Members of Board of Directors (Detail) - Management [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Beginning balance | $ 16,898 | $ 12,537 |
Undisbursed commitments | 823 | 1,369 |
New loans granted | 465 | 4,274 |
Principal repayments | (998) | (1,282) |
Ending balance of term loans | 17,188 | 16,898 |
Year-end balance of revolving accounts | 1,687 | 844 |
Total term loans and revolving accounts | $ 18,875 | $ 17,742 |
Transactions with Directors o_4
Transactions with Directors of the Company - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)EntityDirectors | Dec. 31, 2020USD ($) | |
Related Party Transactions [Abstract] | ||
Number of entities which provide facilities | Entity | 2 | |
Number of directors | Directors | 2 | |
Lease payments made | $ | $ 431 | $ 359 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Government of Guam tax expense (benefit): | ||
Current | $ 3,062 | $ 5,578 |
Deferred | 233 | (2,114) |
Foreign income taxes (including U.S. income taxes) | 1,800 | |
Total income tax expense | $ 5,095 | $ 3,464 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Differences between Statutory Federal Income Tax Rate and Effective Tax Rates (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Income Tax Expense Benefit Continuing Operations [Abstract] | ||
Statutory Guam income tax rate | 21.00% | 21.00% |
Permanent differences | (2.90%) | (1.51%) |
Other | 1.86% | 2.22% |
Total income tax expense | 19.96% | 21.71% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Components Of Deferred Tax Assets [Abstract] | ||
Deferred loan origination fees | $ 167 | $ (285) |
Loan loss provision | (284) | (1,526) |
Fixed assets | 38 | 15 |
SERP | (269) | (271) |
Unfunded Commitment Reserve | (12) | |
Other real estate owned valuation | 1 | |
Mortgage servicing rights | (1) | (5) |
Right-of-use asset | (425) | (833) |
Lease liability | 369 | 778 |
Accrued bonus | (54) | (11) |
Unearned Income | (131) | |
Other | 835 | 23 |
Net operating loss | (1,265) | |
Change in valuation allowance | 1,265 | |
Deferred tax (benefit) provision | $ 233 | $ (2,114) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax asset: | ||
Allowance for loan losses | $ 7,885 | $ 7,602 |
Lease Liability | 5,526 | 5,895 |
Net operating loss | 1,265 | |
Loan origination fees | 739 | 906 |
Net unrealized gain on securities available-for-sale | 4,859 | |
Unearned income | 131 | |
Accruals not currently deductible | 2,157 | 1,823 |
Total deferred tax asset | 21,297 | 17,491 |
Deferred tax liability: | ||
Right-of-use asset | (5,358) | (5,783) |
Net unrealized gain on securities available-for-sale | (835) | |
Fixed assets | (713) | (674) |
Mortgage servicing rights | (362) | (363) |
Investment in ASC | (790) | |
Others | (71) | (28) |
Total deferred tax liability | (7,294) | (7,683) |
Valuation allowance | 0 | (1,265) |
Net deferred tax asset | $ 14,003 | $ 8,543 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 0 | $ 1,265 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - 2011 Employee Stock Purchase Plan [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employees right to purchase stock to maximum amount | $ 25,000 | |
Employees right to purchase stock to maximum extent | 1,500 | |
Share purchase price percentage of fair market value | 85.00% | |
Compensation expense | $ 39,000 | $ 34,000 |
Employee Benefit Plans - Addi_2
Employee Benefit Plans - Additional Information 1 (Detail) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2011USD ($)Retirement_Payments | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Eligibility service period condition for participant under plan | 1 year | ||
Matching contribution percentage | 100.00% | ||
Employee contribution percentage to compensation plan | 1.00% | ||
Employee deferral, minimum | 1.00% | ||
Employee deferral, maximum | 6.00% | ||
Matching contribution vested period of service | 2 years | ||
Expense attributable to the plan | $ 730,000 | $ 764,000 | |
Benefits expected to be paid in the next five years | 3,700,000 | ||
Expected to be recognized in net periodic benefit cost during next fiscal year | $ 844,000 | ||
Supplemental Executive Retirement Plan (SERP) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Frequency for member entitled to receive employment benefit payment | Retirement_Payments | 12 | ||
Retirement Payments Period Following Retirement Or Other Termination Date | 15 years | ||
Senior Vice Presidents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement payments | $ 50,000 | ||
Executive Vice President [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement payments | 100,000 | ||
President [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement payments | 150,000 | ||
Chief Executive Officer [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement payments | $ 150,000 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Projected Benefit Obligation of Other Benefits under Plan and its Funded Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of period | $ 8,243 | $ 7,009 |
Service cost | 588 | 930 |
Interest cost | 356 | 304 |
Benefit obligation at end of period | 9,187 | 8,243 |
Amounts recognized in the Statement of Financial Condition | ||
Unfunded accrued SERP liability—current | 9,187 | 8,243 |
Total unfunded accrued SERP liability | 9,187 | 8,243 |
Net amount recognized in accumulated other comprehensive income | ||
Accumulated benefit obligation | $ 9,187 | $ 8,243 |
Assumptions as of December 31: | ||
Assumed discount rate | 4.33% | 4.33% |
Rate of compensation increase | 0.00% | 0.00% |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Change in benefit obligation: | ||
Service cost | $ 7,545 | $ 6,957 |
Interest cost | 1,642 | 1,286 |
Net amount recognized in accumulated other comprehensive income | ||
Net periodic SERP cost | $ 9,187 | $ 8,243 |
Earnings Per Common Share - Sum
Earnings Per Common Share - Summary of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income available to BankGuam Holding Company | $ 20,501 | $ 12,492 |
Less preferred stock dividends | (520) | (548) |
Net income attributable to common stockholders | $ 19,981 | $ 11,944 |
Weighted average number of common shares outstanding - used to calculate basic and diluted earnings per common share | 9,719 | 9,685 |
Earnings per common share (EPS): | ||
Basic and diluted EPS | $ 2.06 | $ 1.23 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments with Off-Balance-Sheet Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial Instrument with off-balance-sheet risk | $ 162,569 | $ 159,405 |
Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial Instrument with off-balance-sheet risk | 45,605 | 55,401 |
Letters of Credit [Member] | Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial Instrument with off-balance-sheet risk | 43,239 | 52,827 |
Letters of Credit [Member] | Commercial Letters Of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Financial Instrument with off-balance-sheet risk | $ 2,366 | $ 2,574 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Reserve liabilities associated with guarantees | $ 48,000 | |
Letters of credit expiration date maximum | 1 year | |
Maximum undiscounted future payments | $ 45,600,000 | |
Guarantee maturity maximum | 1 year | |
Unpaid principal balances of mortgage loans serviced | $ 181,100,000 | $ 186,900,000 |
Mortgage servicing rights at their fair value | 1,600,000 | $ 1,700,000 |
Collateral Securities Based on Credit Evaluation of Customer [Member] | ||
Loss Contingencies [Line Items] | ||
Reserve liabilities associated with guarantees | $ 48,000 |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements - Additional Information (Detail) | Sep. 15, 2016USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2018shares |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Capital requirement tier 1 capital (to risk weighted assets) | 0.06000 | 0.06000 | 0.06000 | ||||||
Average assets | $ 2,310,000,000 | ||||||||
Percentage of assets growth since formation | 153.00% | ||||||||
Growth of assets value since formation | $ 1,690,000 | ||||||||
Percentage of equity growth since formation | 103.70% | ||||||||
Growth of equity value since formation | $ 92,000,000 | ||||||||
Growth of retained earnings since formation | $ 81,800,000 | ||||||||
Stock issued during period | $ 9,800 | ||||||||
Preferred stock, shares issued | shares | 9,800 | 9,800 | 9,800 | ||||||
Preferred stock, shares outstanding | shares | 9,800 | 9,800 | 9,800 | ||||||
Series A Non-Cumulative Perpetual Preferred Stock [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Preferred stock, shares issued | shares | 9,800,000 | ||||||||
Preferred stock, shares outstanding | shares | 9,800,000 | ||||||||
Private Placement [Member] | Series A Non-Cumulative Perpetual Preferred Stock [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Commencing date for preferred stock shares issuance | Sep. 15, 2016 | ||||||||
Aggregate preferred stock shares for issuances | shares | 10,000 | ||||||||
Subscription price per share | $ / shares | $ 1,000 | ||||||||
Preferred stock yield percentage | 5.50% | ||||||||
Minimum number of stock purchased, value | $ 250,000 | ||||||||
Minimum number of stock purchased, shares | shares | 250 | ||||||||
Expiration date for preferred stock shares issuance | Dec. 31, 2016 | ||||||||
Common Stock [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Approved stock issuance amount | $ 5,000,000 | ||||||||
Stock issued during period | $ 2,900,000 | ||||||||
Common Stock [Member] | Public Offering [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Stock issued during period | $ 4,200,000 | $ 4,200,000 | |||||||
Purchase price per share | $ / shares | $ 12.25 | $ 12.25 | |||||||
Non-Cumulative Perpetual Preferred Stock [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Approved stock issuance amount | $ 10,000,000 | ||||||||
COVID 19 [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Increase in average assets | $ 600,200,000 | ||||||||
Average assets | $ 2,910,000,000 | $ 2,910,000,000 | |||||||
Maximum [Member] | Private Placement [Member] | Series A Non-Cumulative Perpetual Preferred Stock [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Proceeds form private placements | $ 10,000,000 | ||||||||
Basel III [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Common equity tier 1 capital (to risk weighted assets), minimum | 4.50% | 4.50% | |||||||
Non risk based leverage ratio, minimum | 4.00% | 4.00% | |||||||
Non risk based leverage ratio for higher rated bank, minimum | 3.00% | 3.00% | |||||||
Capital conservation buffer | 2.50% | 2.50% | |||||||
Basel III [Member] | Maximum [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Capital requirement tier 1 capital (to risk weighted assets) | 0.060 | 0.060 | |||||||
Permitted composition for tier one capital consolidated assets value | $ 250,000,000,000 | $ 250,000,000,000 | |||||||
Permitted composition for tier one capital foreign exposures | $ 10,000,000,000 | $ 10,000,000,000 | |||||||
Basel III [Member] | Minimum [Member] | |||||||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||||||
Number of days assigned for non accrual Status for higher risk weighting to exposure | 90 days |
Minimum Regulatory Capital Re_4
Minimum Regulatory Capital Requirements - Summary of Company's Actual Capital Amounts and Ratios (Detail) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Banking Regulation [Abstract] | ||
Total capital (to Risk Weighted Assets), Actual, Amount | $ 222,493 | $ 206,381 |
Tier 1 capital (to Risk Weighted Assets), Actual, Amount | 168,623 | 173,141 |
Tier 1 capital (to Average Assets), Actual, Amount | 168,623 | 173,141 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual, Amount | $ 158,840 | $ 163,359 |
Total capital (to Risk Weighted Assets), Actual, Ratio | 0.15161 | 0.14307 |
Tier 1 capital (to Risk Weighted Assets), Actual, Ratio | 0.11490 | 0.12003 |
Tier 1 capital (to Average Assets), Actual, Ratio | 0.05792 | 0.07466 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual, Ratio | 0.10824 | 0.11325 |
Total capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 117,403 | $ 115,401 |
Tier 1 capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | 88,052 | 86,551 |
Tier 1 capital (to Average Assets), For Capital Adequacy Purposes, Amount | 116,461 | 92,765 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Amount | $ 66,039 | $ 64,913 |
Total capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.08000 | 0.08000 |
Tier 1 capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 0.06000 | 0.06000 |
Tier 1 capital (to Average Assets), For Capital Adequacy Purposes, Ratio | 0.04000 | 0.04000 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Total capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 146,753 | $ 144,252 |
Tier 1 capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 117,403 | 115,401 |
Tier 1 capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 145,577 | 115,956 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 95,390 | $ 93,764 |
Total capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.10000 | 0.10000 |
Tier 1 capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.08000 | 0.08000 |
Tier 1 capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.05000 | 0.05000 |
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Parent Company Only Informati_3
Parent Company Only Information - Parent Company Annual Financial Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | |||
Goodwill | $ 13,014 | $ 783 | $ 783 |
Intangible assets | 10,720 | ||
Other assets | 84,620 | 76,340 | |
Total assets | 2,791,588 | 2,352,361 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Other liabilities | 43,162 | 41,607 | |
Subordinated debt, net | 34,400 | 14,777 | |
Total liabilities | 2,610,839 | 2,175,305 | |
Total liabilities and stockholders’ equity | 2,791,588 | 2,352,361 | |
Parent Company [Member] | |||
Assets | |||
Due from subsidiaries | 7,816 | 2,245 | |
Investment in subsidiaries | 184,435 | 189,703 | |
Goodwill | 12,232 | ||
Intangible assets | 10,249 | ||
Other assets | (744) | 9 | |
Total assets | 213,988 | 191,957 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Other liabilities | 361 | 124 | |
Subordinated debt, net | 34,400 | 14,777 | |
Total liabilities | 34,761 | 14,901 | |
Stockholders’ equity | 179,227 | 177,056 | |
Total liabilities and stockholders’ equity | $ 213,988 | $ 191,957 |
Parent Company Only Informati_4
Parent Company Only Information - Summary of Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements Captions [Line Items] | ||
Interest expense | $ 1,910 | $ 2,269 |
Other expenses | 80,275 | 72,576 |
Net income available to BankGuam Holding Company | 20,501 | 12,492 |
Parent Company [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Dividend income | 4,153 | 4,154 |
Interest expense | (1,444) | (955) |
Other expenses | (1,646) | (280) |
Equity in undistributed income of subsidiary | 19,438 | 9,573 |
Net income available to BankGuam Holding Company | $ 20,501 | $ 12,492 |
Parent Company Only Informati_5
Parent Company Only Information - Summary of Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 20,999 | $ 12,492 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 47 | 26 |
Net change in operating assets and liabilities: | ||
Other assets | (11,050) | 2,628 |
Other liabilities | 3,449 | 1,100 |
Net cash provided by operating activities | 18,534 | 28,999 |
Cash flows from investing activities: | ||
Dividends received from unconsolidated subsidiary | 1,154 | 855 |
Net cash used in investing activities | (178,022) | (258,158) |
Cash flows from financing activities: | ||
Proceeds from issuance of subordinated debt, net | 19,576 | |
Dividends paid | (5,053) | (4,422) |
Proceeds from issuance of common stock | 353 | 305 |
Net cash provided by financing activities | 429,263 | 384,821 |
Net change in cash, cash equivalents and restricted cash | 269,775 | 155,662 |
Cash, cash equivalents and restricted cash at beginning of period | 287,778 | 132,116 |
Cash, cash equivalents and restricted cash at end of period | 557,553 | 287,778 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 20,501 | 12,492 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Undistributed earnings of subsidiary | (19,438) | (9,573) |
Depreciation and amortization | 199 | |
Amortization of debt issuance costs | 45 | 26 |
Net change in operating assets and liabilities: | ||
Other assets | 753 | 4 |
Other liabilities | 237 | 5 |
Net cash provided by operating activities | 2,297 | 2,954 |
Cash flows from investing activities: | ||
Payments for investments in and advances to subsidiaries | (8,900) | |
Increased investment in unconsolidated subsidiary | (6,186) | |
Dividends received from consolidated subsidiary | 742 | 635 |
Dividends received from unconsolidated subsidiary | 2,058 | 855 |
Net cash used in investing activities | (12,286) | 1,490 |
Cash flows from financing activities: | ||
Proceeds from issuance of subordinated debt, net | 19,616 | |
Dividends paid | (4,408) | (4,422) |
Proceeds from issuance of common stock | 352 | 305 |
Net cash provided by financing activities | 15,560 | (4,117) |
Net change in cash, cash equivalents and restricted cash | 5,571 | 327 |
Cash, cash equivalents and restricted cash at beginning of period | 2,245 | 1,918 |
Cash, cash equivalents and restricted cash at end of period | $ 7,816 | $ 2,245 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 499,366 | $ 510,111 |
Mortgage servicing rights at their fair value | 1,600 | 1,700 |
U.S. Government Agency Pool Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 20,861 | 28,606 |
U.S. Government Agency or GSE Residential Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 367,543 | 183,359 |
Fair Value on Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 499,366 | 510,111 |
Mortgage servicing rights at their fair value | 1,581 | 1,683 |
Total fair value | 500,947 | 511,794 |
Fair Value on Recurring Basis [Member] | U.S. Treasury Notes and Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 5,005 | |
Fair Value on Recurring Basis [Member] | U.S. Government Agency and Sponsored Enterprise (GSE) Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 110,962 | 293,142 |
Fair Value on Recurring Basis [Member] | U.S. Government Agency Pool Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 20,861 | 28,606 |
Fair Value on Recurring Basis [Member] | U.S. Government Agency or GSE Residential Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 367,543 | 183,358 |
Fair Value on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 5,005 | |
Total fair value | 5,005 | |
Fair Value on Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Notes and Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 5,005 | |
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 499,366 | 505,106 |
Total fair value | 499,366 | 505,106 |
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Agency and Sponsored Enterprise (GSE) Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 110,962 | 293,142 |
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Agency Pool Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 20,861 | 28,606 |
Fair Value on Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Agency or GSE Residential Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 367,543 | 183,358 |
Fair Value on Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights at their fair value | 1,581 | 1,683 |
Total fair value | $ 1,581 | $ 1,683 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfers in or out of the Bank's Level 3 financial instruments | $ 0 | $ 0 |
Number of days to maturity federal funds purchased and FHLB advances to be treated as short-term borrowings | 90 days | |
Short-term borrowings outstanding | $ 0 | 0 |
Long-term borrowings outstanding | $ 0 | 0 |
Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of FHLB advances maturing after ninety days | 90 days | |
Fair Value on Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on a recurring basis | $ 0 | 0 |
Assets measured at fair value | 500,947,000 | 511,794,000 |
Fair Value on Nonrecurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 0 | $ 8,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 1,683 | $ 1,704 |
Realized and unrealized net losses: | ||
Included in net income | (102) | (21) |
Ending balance | $ 1,581 | $ 1,683 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Valuation Techniques and Unobservable Inputs (Detail) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Estimated Fair Value | $ 1,600 | $ 1,700 |
Fair Value on Recurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Estimated Fair Value | 1,581 | 1,683 |
Fair Value on Recurring Basis [Member] | Discount Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Estimated Fair Value | $ 1,581 | $ 1,683 |
Mortgage Servicing Rights, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Fair Value on Recurring Basis [Member] | Discount Rate [Member] | Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Range of Inputs | 0.0602 | 0.0606 |
Fair Value on Recurring Basis [Member] | Discount Rate [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Range of Inputs | 0.0793 | 0.0774 |
Fair Value on Recurring Basis [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Range of Inputs | 0.0720 | 0.0630 |
Fair Value on Recurring Basis [Member] | Weighted Average Prepayment Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Mortgage Servicing Rights, Range of Inputs | 1.25 | 1.25 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Investment securities held-to-maturity | $ 310,372 | $ 46,911 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 557,403 | 287,628 |
Restricted cash | 150 | 150 |
Federal Home Loan Bank stock | 2,814 | 2,335 |
Investment securities held-to-maturity | 312,294 | 46,584 |
Loans, net | 1,283,690 | 1,392,722 |
Total fair value | 2,156,351 | 1,729,419 |
Financial liabilities: | ||
Deposits | 2,533,231 | 2,118,844 |
Total | 2,533,231 | 2,118,844 |
Fair Value on Nonrecurring Basis [Member] | ||
Financial assets: | ||
Loans, net | 1,330,529 | 1,441,402 |
Total fair value | 0 | 8 |
Financial liabilities: | ||
Deposits | 2,527,806 | 2,130,361 |
Fair Value on Nonrecurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 557,403 | 287,628 |
Restricted cash | 150 | 150 |
Total fair value | 557,553 | 287,778 |
Fair Value on Nonrecurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | ||
Financial assets: | ||
Federal Home Loan Bank stock | 2,814 | 2,335 |
Investment securities held-to-maturity | 310,372 | 46,911 |
Total fair value | 313,186 | 49,246 |
Fair Value on Nonrecurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Financial assets: | ||
Loans, net | 1,330,529 | 1,441,402 |
Total fair value | 1,330,529 | 1,441,402 |
Financial liabilities: | ||
Deposits | 2,527,806 | 2,130,361 |
Total | $ 2,527,806 | $ 2,130,361 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Changes in Level 3 Loans and Deposits Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning balance | $ 1,683 | $ 1,704 |
Ending balance | 1,581 | 1,683 |
Fair Value on Nonrecurring Basis [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Beginning balance | 1,441,402 | 1,310,822 |
Net issuances | (110,873) | 130,580 |
Ending balance | 1,330,529 | 1,441,402 |
Beginning deposit balance | 2,130,361 | 1,733,072 |
Net deposits | 397,445 | 397,289 |
Ending deposit balance | $ 2,527,806 | $ 2,130,361 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Quantitative Information about Valuation Technique and Unobservable Inputs to Level 3 Fair Value Measurements on Non-Recurring Basis (Detail) - Fair Value on Nonrecurring Basis [Member] $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans, Estimated Fair Value | $ 1,330,529 | $ 1,441,402 |
Loans, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Loans, Measurement Input [Extensible List] | Discount Rate [Member] | Discount Rate [Member] |
Deposits, Estimated Fair Value | $ 2,527,806 | $ 2,130,361 |
Deposits, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Deposits, Measurement Input [Extensible List] | Discount Rate [Member] | Discount Rate [Member] |
Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans, Range of Inputs | 0.0493 | 0.0493 |
Deposits, Range of Inputs | 0.0003 | 0.0003 |
Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans, Range of Inputs | 0.0770 | 0.0770 |
Deposits, Range of Inputs | 0.0063 | 0.0063 |
Weighted Average [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Loans, Range of Inputs | 0.0618 | 0.0598 |
Deposits, Range of Inputs | 0.0003 | 0.0005 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease [Line Items] | ||
Operating lease option to extend description | Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years or more. | |
Operating lease option to extend | true | |
Operating lease payments | $ 3,400 | $ 3,600 |
Minimum future rents to be received under non-cancelable operating sublease agreements, 2021 | 44 | |
Minimum future rents to be received under non-cancelable operating sublease agreements, 2022 | 26 | |
Minimum future rents to be received under non-cancelable operating sublease agreements, 2023 | 26 | |
Operating lease cost | 3,700 | 3,900 |
Variable lease costs | 3,700 | 3,900 |
Bank Facility Lease [Member] | ||
Lease [Line Items] | ||
Operating lease payments | $ 431 | $ 359 |
Minimum [Member] | ||
Lease [Line Items] | ||
Operating lease term | 1 year | |
Original operating lease term | 1 year | |
Maximum [Member] | ||
Lease [Line Items] | ||
Operating lease term | 50 years | |
Original operating lease term | 3 years | |
Operating lease renewal term | 12 years |
Leases - Summary of Lease Relat
Leases - Summary of Lease Related Assets and Liabilities Recorded as Part of Other Assets and Other Liabilities in Consolidated Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 23,379 | $ 26,113 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Total lease assets | $ 23,379 | $ 26,113 |
Operating | $ 1,926 | $ 2,510 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Operating | $ 22,186 | $ 24,112 |
Total lease liabilities | $ 24,112 | $ 26,622 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities Under Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating Leases, 2022 | $ 2,780 | |
Operating Leases, 2023 | 2,532 | |
Operating Leases, 2024 | 2,420 | |
Operating Leases, 2025 | 2,288 | |
Operating Leases, 2026 | 2,054 | |
Operating Leases, After 2026 | 33,515 | |
Operating Leases, Total lease payments | 45,589 | |
Operating Leases, Less: Interest | 21,477 | |
Operating Leases, Present value of lease liabilities (c) | $ 24,112 | |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total | ||
Lease liability, 2022 | $ 2,780 | |
Lease liability, 2023 | 2,532 | |
Lease liability, 2024 | 2,420 | |
Lease liability, 2025 | 2,288 | |
Lease liability, 2026 | 2,054 | |
Lease liability, After 2026 | 33,515 | |
Lease liability, Total lease payments | 45,589 | |
Lease liability, Less: Interest | 21,477 | |
Lease liability, Present value of lease liabilities | $ 24,112 | $ 26,622 |
Leases - Schedule of Maturiti_2
Leases - Schedule of Maturities of Lease Liabilities Under Operating Leases (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease payments related to option to extend lease | $ 21,500 | |
Current portion of operating lease liability | $ 1,926 | $ 2,510 |
Leases - Summary of Weighted-Av
Leases - Summary of Weighted-Average Lease Term and Discount Rate (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases | 25 years 7 months 6 days | 24 years 7 months 6 days |
Operating leases | 4.15% | 4.09% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Based Fees [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue | $ 4,600 | |
Percentage of total revenue | 4.60% | |
Service Charges on Deposit Accounts [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue | $ 3,800 | $ 3,700 |
Percentage of total revenue | 3.90% | 3.70% |
Online Fees [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue | $ 908 | $ 949 |
Percentage of total revenue | 0.90% | 1.00% |
Subordinated Debt - Additional
Subordinated Debt - Additional Information (Detail) - USD ($) | Jun. 29, 2021 | Jun. 27, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Notes, aggregate principal amount | $ 34,400,000 | $ 14,777,000 | ||
Subordinated Notes [Member] | 2031 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, aggregate principal amount | $ 20,000,000 | |||
Notes, interest rate | 4.75% | |||
Notes, maturity date | Jul. 1, 2031 | |||
Notes, term | 10 years | |||
Notes, interest payment terms | The Company is required to pay interest semi-annually during the fixed period, and quarterly during the floating rate period. | |||
Subordinated Notes [Member] | 2031 Notes [Member] | Three-month SOFR [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, basis points payable | 4.13% | |||
Subordinated Notes [Member] | 2029 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, aggregate principal amount | $ 15,000,000 | |||
Notes, interest rate | 6.35% | |||
Notes, maturity date | Jun. 30, 2029 | |||
Notes, term | 10 years | |||
Notes, interest payment terms | The Company is required to pay interest only semi-annually during the fixed period, and quarterly during the floating rate period. | |||
Subordinated Notes [Member] | 2029 Notes [Member] | Three-month LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, basis points payable | 4.66% |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 06, 2021 | Dec. 31, 2021 | Jul. 05, 2021 | Jun. 29, 2021 |
Business Acquisition [Line Items] | ||||
Ownership percentage | 70.00% | |||
ASC Trust LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of Voting common stock acquire | 25.00% | 25.00% | ||
Payments to acquire additional stock | $ 6,200 | |||
Ownership interest through step acquisition | 70.00% | |||
Ownership percentage | 70.00% | 45.00% | ||
Aggregate purchase price | $ 13,400 | |||
Equity method investment, carrying value | 7,700 | |||
Equity method investment, fair value | 11,100 | |||
Noncontrolling interest, fair value | 7,400 | |||
Intangible assets | 11,090 | |||
ASC Trust LLC [Member] | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 460 | |||
ASC Trust LLC [Member] | Customer Relationships [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 10,600 | |||
ASC Trust LLC [Member] | Other Income [Member] | ||||
Business Acquisition [Line Items] | ||||
Gain on equity method investment | $ 3,400 |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 06, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 13,014 | $ 783 | $ 783 | |
ASC Trust LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 546 | |||
Other current assets | 1,287 | |||
Property and equipment, net | 359 | |||
Intangible assets | 11,090 | |||
Total identifiable assets | 13,282 | |||
Current liabilities | (472) | |||
Interest bearing debt | (297) | |||
Total liabilities assumed | (769) | |||
Net identifiable assets acquired | 12,513 | |||
Goodwill | 12,231 | |||
Net assets acquired | $ 24,744 |
Acquisitions - Summary of Chang
Acquisitions - Summary of Changes in Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Balance at beginning of year | $ 783 |
Additions | 12,231 |
Balance at end of year | 13,014 |
Variance [Member] | |
Business Acquisition [Line Items] | |
Additions | 12,231 |
Balance at end of year | $ 12,231 |