Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35750 | |
Entity Registrant Name | First Internet Bancorp | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 20-3489991 | |
Entity Address, Address Line One | 11201 USA Parkway | |
Entity Address, City or Town | Fishers | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46037 | |
City Area Code | 317 | |
Local Phone Number | 532-7900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,799,047 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false | |
Entity Central Index Key | 0001562463 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | INBK | |
Security Exchange Name | NASDAQ | |
6.0% Fixed to Floating Subordinated Notes due 2026 | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | 6.0% Fixed to Floating Subordinated Notes due 2026 | |
Trading Symbol | INBKL | |
Security Exchange Name | NASDAQ | |
6.0% Fixed to Floating Subordinated Notes due 2029 | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | 6.0% Fixed to Floating Subordinated Notes due 2029 | |
Trading Symbol | INBKZ | |
Security Exchange Name | NASDAQ |
Premises and Equipment
Premises and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table summarizes premises and equipment at June 30, 2020 and December 31, 2019. (in thousands) June 30, December 31, Land $ 2,500 $ 2,500 Right of use leased asset 1,242 1,602 Building and improvements 19,821 10,004 Furniture and equipment 10,452 9,689 Less: accumulated depreciation (10,076) (9,165) Total $ 23,939 $ 14,630 During 2018, the Bank's subsidiary, SPF15, Inc., (“SPF15”) acquired several parcels of land consisting of approximately 3.3 acres located in Fishers, Indiana for approximately $10.2 million, inclusive of acquisition costs. Pursuant to a Land Acquisition Agreement with the City of Fishers, Indiana (the “City”), and its Redevelopment Commission, among others, the City agreed to reimburse SPF15 for the purchase price and other specified land acquisition costs. The Land Acquisition Agreement was replaced by a Project Agreement in December 2018, which extended the reimbursement deadline to October 31, 2019 and made additional financial incentives available to the Company for constructing an office building and associated parking garage on the property. As contemplated under the Project Agreement, the City transferred to SPF15 two additional parcels of land consisting of approximately 0.75 acres and SPF15 transferred to the Fishers Town Hall Building Corporation and third parties a certain parcel of land consisting of approximately 1.65 acres in connection with the development of the property. On October 25, 2019, the City satisfied its reimbursement obligation, resulting in the payment of SPF15 of an aggregate of $11.1 million for purchase prices and other specified land acquisition costs. Site demolition has been completed and construction of a multi-use development, to include the Company's future headquarters, began on October 7, 2019. Development of the site is estimated to be substantially completed by October 12, 2021. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As of June 30, 2020 and December 31, 2019, the carrying amount of goodwill was $4.7 million. There have been no changes in the carrying amount of goodwill for the three months ended June 30, 2020. Goodwill is tested for impairment on an annual basis as of August 31, or whenever events or changes in circumstances indicate the carrying amount of goodwill exceeds its implied fair value. The annual test indicated no impairment existed as of August 31, 2019. Due to the impact of COVID-19 on the economy and the financial markets, the Company evaluated goodwill and determined no triggering event has occurred since the last goodwill impairment test was conducted. |
Subordinated Debt
Subordinated Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Subordinated Debt In October 2015, the Company entered into a term loan in the principal amount of $10.0 million, evidenced by a term note due 2025 (the “2025 Note”). The 2025 Note bears a fixed interest rate of 6.4375% per year, payable quarterly, and is scheduled to mature on October 1, 2025. The 2025 Note is an unsecured subordinated obligation of the Company and may be repaid, without penalty, on any interest payment date on or after October 15, 2020. The 2025 Note is intended to qualify as Tier 2 capital under regulatory guidelines. In September 2016, the Company issued $25.0 million aggregate principal amount of 6.0% Fixed-to-Floating Rate Subordinated Notes due 2026 (the “2026 Notes”) in a public offering. The 2026 Notes initially bear a fixed interest rate of 6.0% per year to, but excluding September 30, 2021, and thereafter a floating rate equal to the then-current three-month LIBOR rate plus 485 basis points. All interest on the 2026 Notes is payable quarterly. The 2026 Notes are scheduled to mature on September 30, 2026. The 2026 Notes are unsecured subordinated obligations of the Company and may be repaid, without penalty, on any interest payment date on or after September 30, 2021. The 2026 Notes are intended to qualify as Tier 2 capital under regulatory guidelines. In June 2019, the Company issued $37.0 million aggregate principal amount of 6.0% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Notes”) in a public offering. The 2029 Notes initially bear a fixed interest rate of 6.0% per year to, but excluding, June 30, 2024, and thereafter a floating rate equal to the then-current benchmark rate (initially three-month LIBOR rate) plus 411 basis points. All interest on the 2029 Notes is payable quarterly. The 2029 Notes are scheduled to mature on June 30, 2029. The 2029 Notes are unsecured subordinated obligations of the Company and may be repaid, without penalty, on any interest payment date on or after June 30, 2024. The 2029 Notes are intended to qualify as Tier 2 capital under regulatory guidelines. The following table presents the principal balance and unamortized debt issuance costs for the 2025 Note, the 2026 Notes and the 2029 Notes as of June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs 2025 Note 10,000 (126) 10,000 (138) 2026 Notes 25,000 (777) 25,000 (839) 2029 Notes 37,000 (1,416) 37,000 (1,495) Total $ 72,000 $ (2,319) $ 72,000 $ (2,472) |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Employment Agreement The Company is party to an employment agreement with its Chief Executive Officer that provides for an annual base salary and an annual bonus, if any, as determined from time to time by the Compensation Committee of our Board of Directors. The annual bonus is to be determined with reference to the achievement of annual performance objectives established by the Compensation Committee for the Chief Executive Officer and other senior officers. The agreement also provides that the Chief Executive Officer may be awarded additional compensation, benefits, or consideration as the Compensation Committee may determine. The agreement provides for the continuation of salary and certain other benefits for a specified period of time upon termination of his employment under certain circumstances, including his resignation for “good reason” or termination by the Company without “cause” at any time or any termination of his employment for any reason within twelve months following a “change in control,” along with other specific conditions. 2013 Equity Incentive Plan The 2013 Equity Incentive Plan (the “2013 Plan”) authorizes the issuance of 750,000 shares of the Company’s common stock in the form of equity-based awards to employees, directors, and other eligible persons. Under the terms of the 2013 Plan, the pool of shares available for issuance may be used for available types of equity awards under the 2013 Plan, which includes stock options, stock appreciation rights, restricted stock awards, stock unit awards, and other share-based awards. All employees, consultants, and advisors of the Company or any subsidiary, as well as all non-employee directors of the Company, are eligible to receive awards under the 2013 Plan. The Company recorded $0.5 million and $1.1 million of share-based compensation expense for the three and six months ended June 30, 2020, respectively, related to awards made under th e 2013 Plan. The Company recorded $0.4 million and $0.9 million of share-based compensation expense for the three and six months ended June 30, 2019, respectively, related to awards made under the 2013 Plan. The following table summarizes the status of the 2013 Plan awards as of June 30, 2020 , and activity for the six months ended June 30, 2020. Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share Nonvested at December 31, 2019 107,244 $ 29.03 — $ — — $ — Granted 66,808 27.56 16,090 25.58 6 19.41 Vested (48,499) 30.34 (6,808) 26.37 (6) 19.41 Forfeited — — (1,638) 27.56 — — Nonvested at June 30, 2020 125,553 $ 27.74 7,644 $ 24.44 — $ — At June 30, 2020, the total unrecognized compensation cost related to nonvested awards was $3.1 million with a weighted-average expense recognition period of 1.9 years. Directors Deferred Stock Plan Until January 1, 2014, the Company had a practice of granting awards under a stock compensation plan for members of the Board of Directors (“Directors Deferred Stock Plan”). The Company reserved 180,000 shares of common stock that could have been issued pursuant to the Directors Deferred Stock Plan. The Directors Deferred Stock Plan provided directors the option to elect to receive up to 100% of their annual retainer in either common stock or deferred stock rights. Deferred stock rights were to be settled in common stock following the end of the deferral period payable on the basis of one share of common stock for each deferred stock right. The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the six months ended June 30, 2020. Deferred Stock Rights Outstanding, beginning of period 84,505 Granted 428 Exercised — Outstanding, end of period 84,933 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into IRLCs with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. The Company had various interest rate swap agreements designated and qualifying as accounting hedges during the reported periods. Designating an interest rate swap as an accounting hedge allows the Company to recognize gains and losses, less any ineffectiveness, in the condensed consolidated statements of income within the same period that the hedged item affects earnings. The Company includes the gain or loss on the hedged items in the same line item as the offsetting loss or gain on the related interest rate swaps. For derivative instruments that are designated and qualify as cash flow hedges, any gains or losses related to changes in fair value are recorded in accumulated other comprehensive loss, net of tax. The fair value of interest rate swaps with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while interest rate swaps with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets. The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income on the condensed consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets. The following table presents amounts that were recorded on the condensed consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of June 30, 2020 and December 31, 2019. (in thousands) Carrying amount of the hedged asset Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets Line item in the condensed consolidated balance sheets in which the hedged item is included June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Loans $ — $ 474,957 $ — $ 21,440 Securities available-for-sale (1) 145,872 151,538 7,095 2,802 (1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At both June 30, 2020 and December 31, 2019, the amounts of the designated hedged items were $88.2 million. The following tables present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company’s asset/liability management activities at June 30, 2020 and December 31, 2019, identified by the underlying interest rate-sensitive instruments. (dollars in thousands) June 30, 2020 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Instruments Associated With Value (years) Fair Value Receive Pay Securities available-for-sale 88,200 3.6 (7,097) 3-month LIBOR 2.54 % Total at June 30, 2020 $ 88,200 3.6 $ (7,097) 3-month LIBOR 2.54 % (dollars in thousands) December 31, 2019 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Instruments Associated With Value (years) Fair Value Receive Pay Loans $ 427,446 5.5 $ (21,551) 3-month LIBOR 2.86 % Securities available-for-sale 88,200 4.1 (2,806) 3-month LIBOR 2.54 % Total at December 31, 2019 $ 515,646 5.3 $ (24,357) 3-month LIBOR 2.80 % In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $46.1 million. The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted-average term to maturity of 13.6 years as of June 30, 2020. The following tables present a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company’s asset/liability management activities at June 30, 2020 and December 31, 2019. (dollars in thousands) June 30, 2020 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 6.6 $ (17,993) 3-month LIBOR 2.88 % Interest rate swaps 100,000 3.5 (9,404) 1-month LIBOR 2.88 % (dollars in thousands) December 31, 2019 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 7.1 $ (8,390) 3-month LIBOR 2.88 % Interest rate swaps 100,000 4.0 (5,040) 1-month LIBOR 2.88 % These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities. The Company pledged $34.6 million and $42.3 million of cash collateral to counterparties as security for its obligations related to these interest rate swap transactions at June 30, 2020 and December 31, 2019, respectively. Collateral posted and received is dependent on the market valuation of the underlying hedges. The following table presents the notional amount and fair value of interest rate swaps, IRLCs and forward contracts utilized by the Company at June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (in thousands) Notional Fair Notional Fair Asset Derivatives Derivatives not designated as hedging instruments IRLCs 14,527 282 56,256 910 Total contracts $ 14,527 $ 282 $ 56,256 $ 910 Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with loans $ — $ — $ 427,446 $ (21,551) Interest rate swaps associated with securities available-for-sale 88,200 (7,097) 88,200 (2,806) Interest rate swaps associated with liabilities 210,000 (27,397) 210,000 (13,429) Derivatives not designated as hedging instruments Forward contracts 11,710 (17) 115,000 (153) Total contracts $ 309,910 $ (34,511) $ 840,646 $ (37,939) The fair value of interest rate swaps was estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date. Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three and six months ended June 30, 2020 and 2019. Amount of Loss Recognized in Other Comprehensive Loss in The Three Months Ended Amount of Loss Recognized in Other Comprehensive Loss in the Six Months Ended (in thousands) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Interest rate swap agreements $ (509) $ (5,892) $ (13,967) $ (9,464) The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and six months ended June 30, 2020 and 2019. Amount of Gain / (Loss) Recognized in the Three Months Ended Amount of Gain / (Loss) Recognized in the Six Months Ended (in thousands) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Asset Derivatives Derivatives not designated as hedging instruments IRLCs $ (1,781) $ 428 $ (628) $ 820 Liability Derivatives Derivatives not designated as hedging instruments Forward contracts $ 2,281 $ (122) $ 136 $ (189) The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of income during the three and six months ended June 30, 2020 and 2019. (in thousands) Line item in the condensed consolidated statements of income Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Interest income Loans $ (1,221) $ (285) $ (2,445) $ (264) Securities - taxable (159) (10) (250) (17) Securities - non-taxable (164) 27 (230) 72 Total interest income (1,544) (268) (2,925) (209) Interest expense Deposits 593 104 899 194 Other borrowed funds 589 79 911 113 Total interest expense 1,182 183 1,810 307 Net interest income $ (2,726) $ (451) $ (4,735) $ (516) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 7,016 | $ 5,061 |
Interest-bearing deposits | 491,603 | 322,300 |
Total cash and cash equivalents | 498,619 | 327,361 |
Securities available-for-sale, at fair value (amortized cost of $590,046 and $546,640 in 2020 and 2019, respectively) | 589,017 | 540,852 |
Securities held-to-maturity, at amortized cost (fair value of $69,152 and $62,560 in 2020 and 2019, respectively) | 68,295 | 61,878 |
Loans held-for-sale (includes $38,813 and $56,097 at fair value in 2020 and 2019, respectively) | 38,813 | 56,097 |
Loans | 2,973,674 | 2,963,547 |
Allowance for loan losses | (24,465) | (21,840) |
Net loans | 2,949,209 | 2,941,707 |
Accrued interest receivable | 21,093 | 18,607 |
Federal Home Loan Bank of Indianapolis stock | 25,650 | 25,650 |
Cash surrender value of bank-owned life insurance | 37,474 | 37,002 |
Premises and equipment, net | 23,939 | 14,630 |
Goodwill | 4,687 | 4,687 |
Servicing asset, at fair value | 2,522 | 2,481 |
Other real estate owned | 2,065 | 2,065 |
Accrued income and other assets | 63,217 | 67,066 |
Total assets | 4,324,600 | 4,100,083 |
Liabilities and Shareholders’ Equity | ||
Noninterest-bearing deposits | 82,864 | 57,115 |
Interest-bearing deposits | 3,297,925 | 3,096,848 |
Total deposits | 3,380,789 | 3,153,963 |
Advances from Federal Home Loan Bank | 514,913 | 514,910 |
Subordinated debt, net of unamortized debt issuance costs of $2,319 and $2,472 in 2020 and 2019, respectively | 69,681 | 69,528 |
Accrued interest payable | 1,073 | 3,767 |
Accrued expenses and other liabilities | 50,433 | 53,002 |
Total liabilities | 4,016,889 | 3,795,170 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none | 0 | 0 |
Retained earnings | 108,431 | 99,681 |
Accumulated other comprehensive loss | (21,138) | (14,191) |
Total shareholders’ equity | 307,711 | 304,913 |
Total liabilities and shareholders’ equity | 4,324,600 | 4,100,083 |
Voting Common Stock | ||
Shareholders’ Equity | ||
Common stock | 220,418 | 219,423 |
Nonvoting Common Stock | ||
Shareholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized cost, at fair value | $ 590,046 | $ 546,640 |
Held-to-maturity, at fair value | 69,152 | 62,560 |
Loans held-for-sale, at fair value | 38,813 | 56,097 |
Unamortized discounts and debt issuance costs | $ 2,319 | $ 2,472 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 4,913,779 | 4,913,779 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, share outstanding (in shares) | 0 | 0 |
Voting Common Stock | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 9,799,047 | 9,741,800 |
Common stock, shares outstanding (in shares) | 9,799,047 | 9,741,800 |
Nonvoting Common Stock | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 86,221 | 86,221 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Income | ||||
Loans | $ 29,730,000 | $ 30,842,000 | $ 60,138,000 | $ 60,060,000 |
Securities – taxable | 3,276,000 | 3,540,000 | 6,895,000 | 6,864,000 |
Securities – non-taxable | 457,000 | 668,000 | 1,029,000 | 1,352,000 |
Other earning assets | 759,000 | 1,794,000 | 2,404,000 | 3,567,000 |
Total interest income | 34,222,000 | 36,844,000 | 70,466,000 | 71,843,000 |
Interest Expense | ||||
Deposits | 15,763,000 | 17,147,000 | 32,971,000 | 32,533,000 |
Other borrowed funds | 4,033,000 | 3,592,000 | 8,051,000 | 6,961,000 |
Total interest expense | 19,796,000 | 20,739,000 | 41,022,000 | 39,494,000 |
Net Interest Income | 14,426,000 | 16,105,000 | 29,444,000 | 32,349,000 |
Provision for Loan Losses | 2,491,000 | 1,389,000 | 3,952,000 | 2,674,000 |
Net Interest Income After Provision for Loan Losses | 11,935,000 | 14,716,000 | 25,492,000 | 29,675,000 |
Noninterest Income | ||||
Gain (loss) on sale of loans | 762,000 | (66,000) | 2,563,000 | (170,000) |
(Loss) gain on sale of securities | 0 | (458,000) | 41,000 | (458,000) |
Other | 456,000 | 1,089,000 | 873,000 | 1,712,000 |
Total noninterest income | 4,973,000 | 3,454,000 | 11,184,000 | 5,826,000 |
Noninterest Expense | ||||
Salaries and employee benefits | 7,789,000 | 6,642,000 | 15,563,000 | 12,963,000 |
Marketing, advertising and promotion | 411,000 | 466,000 | 786,000 | 935,000 |
Consulting and professional services | 932,000 | 835,000 | 2,109,000 | 1,649,000 |
Data processing | 339,000 | 328,000 | 714,000 | 645,000 |
Loan expenses | 399,000 | 292,000 | 998,000 | 606,000 |
Premises and equipment | 1,602,000 | 1,497,000 | 3,227,000 | 2,997,000 |
Deposit insurance premium | 435,000 | 747,000 | 920,000 | 1,302,000 |
Other | 1,337,000 | 902,000 | 2,413,000 | 1,721,000 |
Total noninterest expense | 13,244,000 | 11,709,000 | 26,730,000 | 22,818,000 |
Income Before Income Taxes | 3,664,000 | 6,461,000 | 9,946,000 | 12,683,000 |
Income Tax (Benefit) Provision | (268,000) | 340,000 | (5,000) | 866,000 |
Net Income | $ 3,932,000 | $ 6,121,000 | $ 9,951,000 | $ 11,817,000 |
Income Per Share of Common Stock | ||||
Basic (in dollars per share) | $ 0.40 | $ 0.60 | $ 1.02 | $ 1.16 |
Diluted (in dollars per share) | $ 0.40 | $ 0.60 | $ 1.02 | $ 1.16 |
Weighted-Average Number of Common Shares Outstanding | ||||
Basic (in shares) | 9,768,227 | 10,148,285 | 9,798,528 | 10,182,770 |
Diluted (in shares) | 9,768,227 | 10,148,285 | 9,802,427 | 10,186,833 |
Dividends Declared Per Share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Service charges and fees | ||||
Noninterest Income | ||||
Noninterest income | $ 182,000 | $ 225,000 | $ 394,000 | $ 461,000 |
Loan servicing revenue | ||||
Noninterest Income | ||||
Noninterest income | 255,000 | 0 | 506,000 | 0 |
Loan servicing asset revaluation | ||||
Noninterest Income | ||||
Noninterest income | (90,000) | 0 | (269,000) | 0 |
Mortgage banking activities | ||||
Noninterest Income | ||||
Noninterest income | $ 3,408,000 | $ 2,664,000 | $ 7,076,000 | $ 4,281,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,932 | $ 6,121 | $ 9,951 | $ 11,817 |
Net unrealized holding (losses) gains on securities available-for-sale recorded within other comprehensive (loss) income before income tax | (1,498) | 3,667 | 4,801 | 10,577 |
Reclassification adjustment for gains (losses) realized | 0 | 458 | (41) | 458 |
Net unrealized holding losses on cash flow hedging derivatives recorded within other comprehensive (loss) income before tax | (509) | (5,892) | (13,967) | (9,464) |
Other comprehensive (loss) income before income tax | (2,007) | (1,767) | (9,207) | 1,571 |
Income tax (benefit) provision | (735) | (357) | (2,260) | 608 |
Other comprehensive (loss) income | (1,272) | (1,410) | (6,947) | 963 |
Comprehensive income | $ 2,660 | $ 4,711 | $ 3,004 | $ 12,780 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common StockVoting and Nonvoting Common Stock | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Balance, beginning of period at Dec. 31, 2018 | $ 288,735 | $ 227,587 | $ 77,689 | $ (16,541) | ||
Balance, beginning of period (Accounting Standards Update 2017-08) at Dec. 31, 2018 | $ (821) | $ (821) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 11,817 | 11,817 | ||||
Other comprehensive income (loss) | 963 | 963 | ||||
Dividends declared | (1,231) | (1,231) | ||||
Recognition of the fair value of share-based compensation | 862 | 862 | ||||
Repurchase of common stock | (4,133) | (4,133) | ||||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 22 | 22 | ||||
Common stock redeemed for the net settlement of share-based awards | (94) | (94) | ||||
Balance, end of period at Jun. 30, 2019 | 296,120 | 224,244 | 87,454 | (15,578) | ||
Balance, beginning of period at Mar. 31, 2019 | 294,013 | 226,235 | 81,946 | (14,168) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,121 | 6,121 | ||||
Other comprehensive income (loss) | (1,410) | (1,410) | ||||
Dividends declared | (613) | (613) | ||||
Recognition of the fair value of share-based compensation | 383 | 383 | ||||
Repurchase of common stock | (2,387) | (2,387) | ||||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 13 | 13 | ||||
Balance, end of period at Jun. 30, 2019 | 296,120 | 224,244 | 87,454 | (15,578) | ||
Balance, beginning of period at Dec. 31, 2019 | 304,913 | 219,423 | 99,681 | (14,191) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,951 | 9,951 | ||||
Other comprehensive income (loss) | (6,947) | (6,947) | ||||
Dividends declared | (1,201) | (1,201) | ||||
Recognition of the fair value of share-based compensation | 1,073 | 1,073 | ||||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 15 | 15 | ||||
Common stock redeemed for the net settlement of share-based awards | (93) | (93) | ||||
Balance, end of period at Jun. 30, 2020 | 307,711 | 220,418 | 108,431 | (21,138) | ||
Balance, beginning of period at Mar. 31, 2020 | 305,127 | 219,893 | 105,100 | (19,866) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,932 | 3,932 | ||||
Other comprehensive income (loss) | (1,272) | (1,272) | ||||
Dividends declared | (601) | (601) | ||||
Recognition of the fair value of share-based compensation | 517 | 517 | ||||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 8 | 8 | ||||
Balance, end of period at Jun. 30, 2020 | $ 307,711 | $ 220,418 | $ 108,431 | $ (21,138) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.12 | $ 0.12 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net income | $ 9,951,000 | $ 11,817,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,515,000 | 3,747,000 |
Increase in cash surrender value of bank-owned life insurance | (472,000) | (468,000) |
Provision for loan losses | 3,952,000 | 2,674,000 |
Share-based compensation expense | 1,073,000 | 862,000 |
Loss on other-than-temporary impairment of securities | 0 | 0 |
(Loss) gain on sale of available-for-sale securities | (41,000) | 458,000 |
Loans originated for sale | (427,323,000) | (220,266,000) |
Proceeds from sale of loans | 454,737,000 | 211,432,000 |
Gain on loans sold | (11,069,000) | (3,128,000) |
Gain on sale of other real estate owned | 0 | 0 |
Decrease (increase) in fair value of loans held-for-sale | 939,000 | (352,000) |
Loss (gain) on derivatives | 377,000 | (553,000) |
Settlement of derivatives | (46,109,000) | 0 |
Net change in servicing asset | (41,000) | 0 |
Amortization of operating lease right-of-use assets | 360,000 | 353,000 |
Net change in accrued income and other assets | (2,221,000) | (44,383,000) |
Net change in accrued expenses and other liabilities | (1,840,000) | 4,476,000 |
Net cash used in operating activities | (14,212,000) | (33,331,000) |
Investing Activities | ||
Net loan activity, excluding purchases | (18,907,000) | (153,259,000) |
Maturities and calls of securities available-for-sale | 74,828,000 | 30,950,000 |
Proceeds from sale of securities available-for-sale | 795,000 | 30,137,000 |
Purchase of securities available-for-sale | (116,993,000) | (76,834,000) |
Purchase of securities held-to-maturity | (2,000,000) | (13,116,000) |
Purchase of Federal Home Loan Bank of Indianapolis stock | 0 | (2,025,000) |
Purchase of premises and equipment | (10,580,000) | (2,852,000) |
Loans purchased | (172,250,000) | (159,068,000) |
Net proceeds from sale of portfolio loans | 205,023,000 | 184,095,000 |
Net cash used in investing activities | (40,084,000) | (161,972,000) |
Financing Activities | ||
Net increase in deposits | 226,826,000 | 334,912,000 |
Short-term borrowings | 0 | 0 |
Cash dividends paid | (1,179,000) | (1,214,000) |
Net proceeds from issuance of subordinated debt | 0 | 35,418,000 |
Repurchase of common stock | 0 | (4,133,000) |
Proceeds from advances from Federal Home Loan Bank | 220,000,000 | 375,000,000 |
Repayment of advances from Federal Home Loan Bank | (220,000,000) | (385,000,000) |
Other, net | (93,000) | (94,000) |
Net cash provided by financing activities | 225,554,000 | 354,889,000 |
Net Increase in Cash and Cash Equivalents | 171,258,000 | 159,586,000 |
Cash and Cash Equivalents, Beginning of Period | 327,361,000 | 188,712,000 |
Cash and Cash Equivalents, End of Period | 498,619,000 | 348,298,000 |
Supplemental Disclosures | ||
Initial recognition of right-of-use asset | 0 | 2,096,000 |
Initial recognition of operating lease liabilities | 0 | 2,096,000 |
Cash paid during the period for interest | 43,716,000 | 37,672,000 |
Income Taxes Paid, Net | 91,000 | 1,793,000 |
Loans transferred to other real estate owned | 0 | 0 |
Loans transferred to held-for-sale from portfolio | 204,258,000 | 184,021,000 |
Cash dividends declared, paid in subsequent period | 588,000 | 601,000 |
Securities purchased during the period, settled in subsequent period | 0 | 14,247,000 |
Transfer of available-for-sale municipal securities to held-to-maturity municipal securities | $ 4,479,000 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information or footnotes necessary for a complete presentation of financial condition, results of operations, changes in shareholders’ equity, or cash flows in accordance with GAAP. In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation have been included. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results expected for the year ending December 31, 2020 or any other period. The June 30, 2020 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the First Internet Bancorp Annual Report on Form 10-K for the year ended December 31, 2019. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, or assumptions that could have a material effect on the carrying value of certain assets and liabilities. These estimates, judgments, and assumptions affect the amounts reported in the condensed consolidated financial statements and the disclosures provided. The determination of the allowance for loan losses, valuations and impairments of investment securities, valuation of the servicing asset and the accounting for income tax expense are highly dependent upon management’s estimates, judgments, and assumptions, and changes in any of these could have a significant impact on the condensed consolidated financial statements. The condensed consolidated financial statements include the accounts of First Internet Bancorp (the “Company”), its wholly owned subsidiary, First Internet Bank of Indiana (the “Bank”), and the Bank’s three wholly owned subsidiaries, First Internet Public Finance Corp., JKH Realty Services, LLC and SPF15, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations, and cash flows of the Company. Certain reclassifications have been made to the 2019 financial statements to conform to the presentation of the 2020 financial statements. These reclassifications had no effect on net income. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share of common stock are based on the weighted-average number of basic shares and dilutive shares outstanding during the period. The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three and six months ended June 30, 2020 and 2019. (dollars in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per share Net income $ 3,932 $ 6,121 $ 9,951 $ 11,817 Weighted-average common shares 9,768,227 10,148,285 9,798,528 10,182,770 Basic earnings per common share $ 0.40 $ 0.60 $ 1.02 $ 1.16 Diluted earnings per share Net income $ 3,932 $ 6,121 $ 9,951 $ 11,817 Weighted-average common shares 9,768,227 10,148,285 9,798,528 10,182,770 Dilutive effect of equity compensation — — 3,899 4,063 Weighted-average common and incremental shares 9,768,227 10,148,285 9,802,427 10,186,833 Diluted earnings per common share (1) $ 0.40 $ 0.60 $ 1.02 $ 1.16 (1) Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive. Excluded from the computation of diluted EPS were weighted-average antidilutive shares totaling 79,893 and 29,606 for the three and six months ended June 30, 2020, respectively and 30,250 and 23,305 for the three and six months ended June 30, 2019, respectively. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables summarize securities available-for-sale and securities held-to-maturity as of June 30, 2020 and December 31, 2019. June 30, 2020 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 68,203 $ 384 $ (2,043) $ 66,544 Municipal securities 91,906 3,140 (4,484) 90,562 Agency mortgage-backed securities 275,433 6,632 (3,535) 278,530 Private label mortgage-backed securities 101,110 1,044 (229) 101,925 Asset-backed securities 5,000 — (163) 4,837 Corporate securities 48,394 309 (2,084) 46,619 Total available-for-sale $ 590,046 $ 11,509 $ (12,538) $ 589,017 June 30, 2020 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 14,603 $ 671 $ — $ 15,274 Corporate securities 53,692 768 (582) 53,878 Total held-to-maturity $ 68,295 $ 1,439 $ (582) $ 69,152 December 31, 2019 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 77,715 $ 99 $ (1,942) $ 75,872 Municipal securities 97,447 1,706 (1,501) 97,652 Agency mortgage-backed securities 264,142 1,304 (4,006) 261,440 Private label mortgage-backed securities 63,704 97 (188) 63,613 Asset-backed securities 5,000 — (45) 4,955 Corporate securities 38,632 220 (1,532) 37,320 Total available-for-sale $ 546,640 $ 3,426 $ (9,214) $ 540,852 December 31, 2019 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 10,142 $ 226 $ — $ 10,368 Corporate securities 51,736 588 (132) 52,192 Total held-to-maturity $ 61,878 $ 814 $ (132) $ 62,560 The Company elected to transfer ten available-for-sale (“AFS”) securities with an aggregate fair value of $4.5 million to a classification of held-to-maturity (“HTM”) on March 1, 2020. The net unrealized holding gain of $0.1 million, net of tax, as the date of the transfer was retained in accumulated other comprehensive loss, with the associated pretax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to interest income over the remaining life of the securities. The fair value of the transferred AFS securities became the book value of the HTM securities as of March 1, 2020, with no unrealized gain or loss at that date. The carrying value of securities at June 30, 2020 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale (in thousands) Amortized Fair Within one year $ 15 $ 15 One to five years 30,141 25,364 Five to ten years 82,174 79,991 After ten years 96,173 98,355 208,503 203,725 Agency mortgage-backed securities 275,433 278,530 Private label mortgage-backed securities 101,110 101,925 Asset-backed securities 5,000 4,837 Total $ 590,046 $ 589,017 Held-to-Maturity (in thousands) Amortized Fair One to five years $ 1,505 $ 1,557 Five to ten years 54,272 54,642 After ten years 12,518 12,953 Total $ 68,295 $ 69,152 There were no gross gains or losses resulting from sales of available-for-sale securities during the three months ended June 30, 2020 and gross gains of less than $0.1 million resulting from the sales of available-for-sale securities during the six months ended June 30, 2020. There were $0.5 million of gross losses resulting from sales of available-for-sale securities during the three and six months ended June 30, 2019. Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2020 and December 31, 2019 was $237.5 million and $317.5 million, which was approximately 36% and 53%, respectively, of the Company’s available-for-sale and held-to-maturity securities portfolios. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced, with the resulting loss recognized in net income in the period the other-than-temporary impairment (“OTTI”) is identified. U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2020. Agency Mortgage-Backed, Private Label Mortgage-Backed and Asset-Backed Securities The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2020. The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019. June 30, 2020 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale U.S. Government-sponsored agencies $ 1,195 $ (15) $ 56,494 $ (2,028) $ 57,689 $ (2,043) Municipal securities 61,167 (4,484) — — 61,167 (4,484) Agency mortgage-backed securities 22,419 (391) 10,727 (3,144) 33,146 (3,535) Private label mortgage-backed securities 21,781 (160) 2,777 (69) 24,558 (229) Asset-backed securities — — 4,837 (163) 4,837 (163) Corporate securities 12,512 (122) 20,038 (1,962) 32,550 (2,084) Total $ 119,074 $ (5,172) $ 94,873 $ (7,366) $ 213,947 $ (12,538) June 30, 2020 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Corporate securities $ 23,527 $ (582) $ — $ — $ 23,527 $ (582) Total $ 23,527 $ (582) $ — $ — $ 23,527 $ (582) December 31, 2019 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale U.S. Government-sponsored agencies $ 4,820 $ (61) $ 62,182 $ (1,881) $ 67,002 $ (1,942) Municipal securities 1,279 (1,501) — — 1,279 (1,501) Agency mortgage-backed securities 91,159 (829) 83,212 (3,177) 174,371 (4,006) Private label mortgage-backed securities 30,077 (180) 2,884 (8) 32,961 (188) Asset-backed securities — — 4,955 (45) 4,955 (45) Corporate securities — — 22,985 (1,532) 22,985 (1,532) Total $ 127,335 $ (2,571) $ 176,218 $ (6,643) $ 303,553 $ (9,214) December 31, 2019 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Corporate securities 13,977 (132) — — 13,977 (132) Total $ 13,977 $ (132) $ — $ — $ 13,977 $ (132) Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and six months ended June 30, 2020 and June 30, 2019 were as follows: (in thousands) Details About Accumulated Other Comprehensive Loss Components Affected Line Item in the Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Realized gains (losses) on securities available-for-sale Gain (loss) realized in earnings $ — $ 41 $ (458) $ (458) Gain (loss) on sale of securities Total reclassified amount before tax — 41 (458) (458) Income Before Income Taxes Tax expense (benefit) — 11 (124) (124) Income Tax Provision (Benefit) Total reclassifications out of accumulated other comprehensive loss $ — $ 30 $ (334) $ (334) Net Income |
Loans
Loans | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans | Loans Loan balances as of June 30, 2020 and December 31, 2019 are summarized in the table below. Categories of loans include: (in thousands) June 30, 2020 December 31, 2019 Commercial loans Commercial and industrial $ 81,687 $ 96,420 Owner-occupied commercial real estate (1) 86,897 86,726 Investor commercial real estate 13,286 12,567 Construction 77,591 60,274 Single tenant lease financing 980,292 995,879 Public finance 647,107 687,094 Healthcare finance 380,956 300,612 Small business lending (1) 118,526 46,945 Total commercial loans 2,386,342 2,286,517 Consumer loans Residential mortgage 208,728 313,849 Home equity 22,640 24,306 Other consumer 291,632 295,309 Total consumer loans 523,000 633,464 Total commercial and consumer loans 2,909,342 2,919,981 Net deferred loan origination costs and premiums and discounts on purchased loans and other (2) 64,332 43,566 Total loans 2,973,674 2,963,547 Allowance for loan losses (24,465) (21,840) Net loans $ 2,949,209 $ 2,941,707 (1) As of June 30, 2020, $13.3 million of commercial real estate loan balances were reclassified from small business lending to owner-occupied commercial real estate. (2) Includes carrying value adjustments of $46.0 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2020 and $21.4 million related to interest rate swaps associated with public finance loans as of December 31, 2019. The risk characteristics of each loan portfolio segment are as follows: Commercial and Industrial: Commercial and industrial loans’ sources of repayment are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected, and the collateral securing these loans may fluctuate in value. Loans are made for working capital, equipment purchases, or other purposes. Most commercial and industrial loans are secured by the assets being financed and may incorporate a personal guarantee. This portfolio segment is generally concentrated in Central Indiana and adjacent markets and the greater Phoenix, Arizona market. Owner-Occupied Commercial Real Estate: The primary source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower, or an affiliate of the borrower, who owns the property. This portfolio segment is generally concentrated in Central Indiana and adjacent markets and the greater Phoenix, Arizona market and its loans are often secured by manufacturing and service facilities, as well as office buildings. Investor Commercial Real Estate: These loans are underwritten primarily based on the cash flow expected to be generated from the property and are secondarily supported by the value of the real estate. These loans typically incorporate a personal guarantee from the primary sponsor or sponsors. This portfolio segment generally involves larger loan amounts with repayment primarily dependent on the successful leasing and operation of the property securing the loan or the business conducted on the property securing the loan. Investor commercial real estate loans may be more adversely affected by changing economic conditions in the real estate markets, industry dynamics or the overall health of the local economy where the property is located. The properties securing the Company’s investor commercial real estate portfolio tend to be diverse in terms of property type and are generally located in the state of Indiana or markets immediately adjacent to Indiana. Management monitors and evaluates commercial real estate loans based on property financial performance, collateral value, guarantor strength, economic and industry conditions together with other risk grade criteria. As a general rule, the Company avoids financing special use projects or properties outside of its designated market areas unless other underwriting factors are present to mitigate these additional risks. Construction: Construction loans are secured by land and related improvements and are made to assist in the construction of new structures, which may include commercial (retail, industrial, office, multi-family) properties or single family residential properties offered for sale by the builder. These loans generally finance a variety of project costs, including land, site preparation, architectural services, construction, closing and soft costs and interim financing needs. The cash flows of builders, while initially predictable, may fluctuate with market conditions, and the value of the collateral securing these loans may be subject to fluctuations based on general economic changes. This portfolio segment is generally concentrated in Central Indiana. Single Tenant Lease Financing: These loans are made on a nationwide basis to property owners of real estate subject to long-term lease arrangements with single tenant operators. The real estate is typically operated by regionally, nationally or globally branded businesses. The loans are underwritten based on the financial strength of the borrower, characteristics of the real estate, cash flows generated from the lease arrangements and the financial strength of the tenant. Similar to the other loan portfolio segments, management monitors and evaluates these loans based on borrower and tenant financial performance, collateral value, industry trends and other risk grade criteria. Public Finance: These loans are made to governmental and not-for-profit entities to provide both tax-exempt and taxable loans for a variety of purposes including: short-term cash-flow needs; debt refinancing; economic development; quality of life projects; infrastructure improvements; and equipment financing. The primary sources of repayment for public finance loans include pledged revenue sources including but not limited to: general obligations; property taxes; income taxes; tax increment revenue; utility revenue; gaming revenues; sales tax; and pledged general revenue. Certain loans may also include an additional collateral pledge of mortgaged property or a security interest in financed equipment. Public finance loans have been completed primarily in the Midwest, but continues to expand nationwide. Healthcare Finance: These loans are made to healthcare providers, primarily dentists, for practice acquisition refinancing that occasionally includes owner-occupied commercial real estate and equipment purchases. The sources of repayment are primarily based on the identified cash flows from operations of the borrower and related entities if the real estate is held in a separate entity and secondarily on the underlying collateral provided by the borrower. This portfolio segment was initially concentrated in the Western United States but has been growing rapidly throughout the rest of the country with the addition of a growing sales force located in Eastern and Midwestern markets. Small Business Lending: These loans are to small businesses and generally carry a partial guaranty from the U.S. Small Business Administration ("SBA") under its 7(a) loan program. We generally sell the government guaranteed portion of SBA loans into the secondary market while retaining the non-guaranteed portion of the loan and the servicing rights. Loans in the small business lending portfolio have sources of repayment that are primarily based on the identified cash flows of the borrower and secondarily on any underlying collateral provided by the borrower. Loans may, but do not always, have a collateral shortfall. For SBA loans where the guaranteed portion is retained, the SBA guaranty provides a tertiary source of repayment to the Bank in event of borrower default. Cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Loans are made for a broad array of purposes including, but not limited to, providing operating cash flow, funding ownership changes, and facilitating equipment purchases. These loans also include loans originated by the Bank under the SBA’s Paycheck Protection Program, which are fully guaranteed by the SBA. This portfolio segment has an emerging geography, with a nationwide focus. Residential Mortgage: With respect to residential loans that are secured by 1-to-4 family residences and are generally owner occupied, the Company typically establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Repayment of these loans is primarily dependent on the financial circumstances of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in residential property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country. Home Equity: Home equity loans and lines of credit are typically secured by a subordinate interest in 1-to-4 family residences. The properties securing the home equity portfolio segment are generally geographically diverse as the Company offers these products on a nationwide basis. Repayment of these loans and lines of credit is primarily dependent on the financial circumstances of the borrowers and may be impacted by changes in unemployment levels and property values on residential properties, among other economic conditions in the market. Other Consumer: These loans primarily consist of consumer loans and credit cards. Consumer loans may be secured by consumer assets such as horse trailers or recreational vehicles. Some consumer loans are unsecured, such as small installment loans, home improvement loans and certain lines of credit. Repayment of consumer loans is primarily dependent upon the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country. Allowance for Loan Losses Methodology Company policy is designed to maintain an adequate allowance for loan losses (“ALLL”). The portfolio is segmented by loan type, and the required ALLL for types of performing homogeneous loans which do not have a specific reserve is determined by applying a factor based on average historical losses, adjusted for current economic factors and portfolio trends. Management adds qualitative factors for observable trends, changes in internal practices, changes in delinquencies and impairments, and external factors. Observable factors include changes in the composition and size of portfolios, as well as loan terms or concentration levels. The Company evaluates the impact of internal changes such as management and staff experience levels or modification to loan underwriting processes. Delinquency trends are scrutinized for both volume and severity of past due, nonaccrual, or classified loans, as well as any changes in the value of underlying collateral. Finally, the Company considers the effect of other external factors such as national, regional, and local economic and business conditions, as well as competitive, legal, and regulatory requirements. Loans that are considered to be impaired are evaluated to determine the need for a specific allowance by applying at least one of three methodologies: present value of future cash flows; fair value of collateral less costs to sell; or the loan’s observable market price. All troubled debt restructurings (“TDR”) are considered impaired loans. Loans evaluated for impairment are removed from other pools to prevent double-counting. Accounting Standards Codification (“ASC”) Topic 310, Receivables , requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral less costs to sell and allows existing methods for recognizing interest income. Provision for Loan Losses A provision for estimated losses on loans is charged to income based upon management’s evaluation of the potential losses. Such an evaluation, which includes a review of all loans for which full repayment may not be reasonably assured, considers, among other matters, the estimated net realizable value of the underlying collateral, as applicable, economic conditions, loan loss experience, and other factors that are particularly susceptible to changes that could result in a material adjustment in the near term. While management attempts to use the best information available in making its evaluations, future allowance adjustments may be necessary if economic conditions change substantially from the assumptions used in making the evaluations. Policy for Charging Off Loans The Company’s policy is to charge off a loan at any point in time when it no longer can be considered a bankable asset, meaning collectible within the parameters of policy. A secured loan is generally charged down to the estimated fair value of the collateral, less costs to sell, no later than when it is 120 days past due as to principal or interest. An unsecured loan generally is charged off no later than when it is 180 days past due as to principal or interest. A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest. The following tables present changes in the balance of the ALLL during the three and six months ended June 30, 2020 and 2019. (in thousands) Three Months Ended June 30, 2020 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,670 $ (141) $ (57) $ 5 $ 1,477 Owner-occupied commercial real estate 645 201 — — 846 Investor commercial real estate 128 2 — — 130 Construction 460 261 — — 721 Single tenant lease financing 10,755 563 — — 11,318 Public finance 1,483 59 — — 1,542 Healthcare finance 4,318 1,187 (743) — 4,762 Small business lending 265 (20) — 6 251 Residential mortgage 500 36 — 3 539 Home equity 53 (4) — 2 51 Other consumer 2,580 347 (216) 117 2,828 Total $ 22,857 $ 2,491 $ (1,016) $ 133 $ 24,465 Six Months Ended June 30, 2020 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,521 $ 205 $ (254) $ 5 $ 1,477 Owner-occupied commercial real estate 561 285 — — 846 Investor commercial real estate 109 21 — — 130 Construction 380 341 — — 721 Single tenant lease financing 11,175 143 — — 11,318 Public finance 1,580 (38) — — 1,542 Healthcare finance 3,247 2,258 (743) — 4,762 Small business lending 54 183 — 14 251 Residential mortgage 657 (107) (15) 4 539 Home equity 46 — — 5 51 Other consumer 2,510 661 (502) 159 2,828 Total $ 21,840 $ 3,952 $ (1,514) $ 187 $ 24,465 (in thousands) Three Months Ended June 30, 2019 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,351 $ 444 $ — $ — $ 1,795 Owner-occupied commercial real estate 847 (223) — — 624 Investor commercial real estate 103 66 — — 169 Construction 267 35 — — 302 Single tenant lease financing 9,368 293 — — 9,661 Public finance 1,650 113 — — 1,763 Healthcare finance 1,731 562 — — 2,293 Small business lending 93 36 — — 129 Residential mortgage 1,044 (383) — 1 662 Home equity 49 (5) — 4 48 Other consumer 2,338 451 (337) 78 2,530 Total $ 18,841 $ 1,389 $ (337) $ 83 $ 19,976 Six Months Ended June 30, 2019 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,384 $ 523 $ (112) $ — $ 1,795 Owner-occupied commercial real estate 891 (267) — — 624 Investor commercial real estate 61 108 — — 169 Construction 251 51 — — 302 Single tenant lease financing 8,827 834 — — 9,661 Public finance 1,670 93 — — 1,763 Healthcare finance 1,264 1,029 — — 2,293 Small business lending 95 34 — — 129 Residential mortgage 1,079 (419) — 2 662 Home equity 53 (11) — 6 48 Other consumer 2,321 699 (654) 164 2,530 Total $ 17,896 $ 2,674 $ (766) $ 172 $ 19,976 The following tables present the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2020 and December 31, 2019. (in thousands) Loans Allowance for Loan Losses June 30, 2020 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 80,871 $ 816 $ 81,687 $ 1,368 $ 109 $ 1,477 Owner-occupied commercial real estate 82,974 3,922 86,897 846 — 846 Investor commercial real estate 13,286 — 13,286 130 — 130 Construction 77,591 — 77,591 721 — 721 Single tenant lease financing 975,612 4,680 980,292 9,658 1,660 11,318 Public finance 647,107 — 647,107 1,542 — 1,542 Healthcare finance 380,956 — 380,956 4,762 — 4,762 Small business lending 118,526 — 118,526 251 251 Residential mortgage 207,320 1,408 208,728 539 — 539 Home equity 22,640 — 22,640 51 — 51 Other consumer 291,518 115 291,632 2,828 — 2,828 Total $ 2,898,401 $ 10,941 $ 2,909,342 $ 22,696 $ 1,769 $ 24,465 (in thousands) Loans Allowance for Loan Losses December 31, 2019 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 93,520 $ 2,900 $ 96,420 $ 1,412 $ 109 $ 1,521 Owner-occupied commercial real estate 81,063 5,663 86,726 561 — 561 Investor commercial real estate 12,567 — 12,567 109 — 109 Construction 60,274 — 60,274 380 — 380 Single tenant lease financing 991,199 4,680 995,879 9,515 1,660 11,175 Public finance 687,094 — 687,094 1,580 — 1,580 Healthcare finance 300,612 — 300,612 3,247 — 3,247 Small business lending 46,945 — 46,945 54 — 54 Residential mortgage 312,714 1,135 313,849 657 — 657 Home equity 24,306 — 24,306 46 — 46 Other consumer 295,266 43 295,309 2,510 — 2,510 Total $ 2,905,560 $ 14,421 $ 2,919,981 $ 20,071 $ 1,769 $ 21,840 The Company utilizes a risk grading matrix to assign a risk grade to each of its commercial loans. A description of the general characteristics of the risk grades is as follows: • “Pass” - Higher quality loans that do not fit any of the other categories described below. • “Special Mention” - Loans that possess some credit deficiency or potential weakness, which deserve close attention. • “Substandard” - Loans that possess a defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. • “Doubtful” - Such loans have been placed on nonaccrual status and may be heavily dependent upon collateral possessing a value that is difficult to determine or based upon some near-term event that lacks clear certainty. These loans have all of the weaknesses of those classified as Substandard; however, based on existing conditions, these weaknesses make full collection of the principal balance highly improbable. • “Loss” - Loans that are considered uncollectible and of such little value that continuing to carry them as assets is not warranted. Nonaccrual Loans Any loan which becomes 90 days delinquent or for which the full collection of principal and interest may be in doubt will be considered for nonaccrual status. At the time a loan is placed on nonaccrual status, all accrued but unpaid interest will be reversed from interest income. Placing the loan on nonaccrual status does not relieve the borrower of the obligation to repay interest. A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest. The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of June 30, 2020 and December 31, 2019. June 30, 2020 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 77,447 $ 3,465 $ 775 $ 81,687 Owner-occupied commercial real estate 80,389 2,585 3,923 86,897 Investor commercial real estate 13,286 — — 13,286 Construction 77,591 — — 77,591 Single tenant lease financing 966,782 8,830 4,680 980,292 Public finance 647,107 — — 647,107 Healthcare finance 379,899 1,057 — 380,956 Small business lending 118,526 — — 118,526 Total commercial loans $ 2,361,027 $ 15,937 $ 9,378 $ 2,386,342 June 30, 2020 (in thousands) Performing Nonaccrual Total Residential mortgage $ 207,686 $ 1,042 $ 208,728 Home equity 22,640 — 22,640 Other consumer 291,524 108 291,632 Total consumer loans $ 521,850 $ 1,150 $ 523,000 December 31, 2019 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 89,818 $ 3,973 $ 2,629 $ 96,420 Owner-occupied commercial real estate 79,329 3,462 3,935 86,726 Investor commercial real estate 12,567 — — 12,567 Construction 60,274 — — 60,274 Single tenant lease financing 983,448 7,751 4,680 995,879 Public finance 687,094 — — 687,094 Healthcare finance 300,612 — — 300,612 Small business lending 46,945 — — 46,945 Total commercial loans $ 2,260,087 $ 15,186 $ 11,244 $ 2,286,517 December 31, 2019 (in thousands) Performing Nonaccrual Total Residential mortgage $ 313,088 $ 761 $ 313,849 Home equity 24,306 — 24,306 Other consumer 295,276 33 295,309 Total consumer loans $ 632,670 $ 794 $ 633,464 The following tables present the Company’s loan portfolio delinquency analysis as of June 30, 2020 and December 31, 2019. June 30, 2020 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ 80 $ — $ 212 $ 292 $ 81,395 $ 81,687 $ 299 $ — Owner-occupied commercial real estate — — 2,066 2,066 84,831 86,897 2,066 — Investor commercial real estate — — — — 13,286 13,286 — — Construction — — — — 77,591 77,591 — — Single tenant lease financing — — 4,680 4,680 975,612 980,292 4,680 — Public finance — — — — 647,107 647,107 — — Healthcare finance — — — — 380,956 380,956 — — Small business lending — — — — 118,526 118,526 — — Residential mortgage — — 281 281 208,447 208,728 1,042 — Home equity — — — — 22,640 22,640 — — Other consumer 80 56 25 161 291,471 291,632 108 — Total $ 160 $ 56 $ 7,264 $ 7,480 $ 2,901,862 $ 2,909,342 $ 8,195 $ — December 31, 2019 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ 15 $ 96 $ 122 $ 233 $ 96,187 $ 96,420 $ 226 $ — Owner-occupied commercial real estate — — 464 464 86,262 86,726 464 — Investor commercial real estate — — — — 12,567 12,567 — — Construction — — — — 60,274 60,274 — — Single tenant lease financing — 4,680 — 4,680 991,199 995,879 4,680 — Public finance — — — — 687,094 687,094 — — Healthcare finance — — — — 300,612 300,612 — — Small business lending 54 — 54 46,891 46,945 — — Residential mortgage — — 1,177 1,177 312,672 313,849 761 416 Home equity — — — — 24,306 24,306 — — Other consumer 240 107 — 347 294,962 295,309 33 — Total $ 309 $ 4,883 $ 1,763 $ 6,955 $ 2,913,026 $ 2,919,981 $ 6,164 $ 416 Impaired Loans A loan is designated as impaired, in accordance with the impairment accounting guidance, when, based on current information or events, it is probable that the Company will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. Payments with delays generally not exceeding 90 days outstanding are not considered impaired. Certain nonaccrual and substantially all delinquent loans more than 90 days past due may be considered to be impaired. Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well-secured and in the process of collection. The accrual of interest on impaired and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. Impaired loans include nonperforming loans as well as loans modified in TDRs where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection. ASC Topic 310, Receivables , requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral, less costs to sell, and allows existing methods for recognizing interest income. The following table presents the Company’s impaired loans as of June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (in thousands) Recorded Unpaid Specific Recorded Unpaid Specific Loans without a specific valuation allowance Commercial and industrial $ 613 $ 672 $ — $ 2,693 $ 2,694 $ — Owner-occupied commercial real estate 3,922 3,925 — 5,663 5,665 — Residential mortgage 1,408 1,498 — 1,135 1,209 — Other consumer 115 215 — 43 107 — Total 6,058 6,310 — 9,534 9,675 — Loans with a specific valuation allowance Commercial and industrial 203 240 109 207 244 109 Single tenant lease financing 4,680 4,680 1,660 4,680 4,680 1,660 Total 4,883 4,920 1,769 4,887 4,924 1,769 Total impaired loans $ 10,941 $ 11,230 $ 1,769 $ 14,421 $ 14,599 $ 1,769 The table below presents average balances and interest income recognized for impaired loans during the three and six months ended June 30, 2020 and 2019. Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (in thousands) Average Interest Average Interest Average Interest Average Interest Loans without a specific valuation allowance Commercial and industrial $ 594 $ 18 $ 4,053 $ 86 $ 1,330 $ 36 $ 4,376 $ 167 Owner-occupied commercial real estate 3,923 29 2,723 66 4,573 31 2,464 93 Small business lending — — — — Residential mortgage 1,352 — 3,538 — 1,313 — 2,796 — Home equity — — — — — — 21 — Other consumer 75 — 83 — 60 — 79 — Total 5,944 47 10,397 152 7,276 67 9,736 260 Loans with a specific valuation allowance Commercial and industrial 204 — 353 — 204 — 177 — Single tenant lease financing 4,680 — — — 4,680 — — — Total 4,884 — 353 — 4,884 — 177 — Total impaired loans $ 10,828 $ 47 $ 10,750 $ 152 $ 12,160 $ 67 $ 9,913 $ 260 The Company had no residential mortgage other real estate owned as of June 30, 2020 and December 31, 2019. There was one loan with a balance of $0.1 million in the process of foreclosure at June 30, 2020 and no loans in the process of foreclosure at December 31, 2019. Troubled Debt Restructurings The loan portfolio includes TDRs, which are loans that have been modified to grant economic concessions to borrowers who have experienced financial difficulties. These concessions typically result from loss mitigation efforts and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally not less than six consecutive months. When loans are modified in a TDR, any possible impairment similar to other impaired loans is evaluated based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or using the current fair value of the collateral, less selling costs, for collateral dependent loans. If it is determined that the value of the modified loan is less than the recorded balance of the loan, impairment is recognized through a specific allowance or charge-off to the allowance. In periods subsequent to modification, all TDRs, including those that have payment defaults, are evaluated for possible impairment, and impairment is recognized through the allowance. In the course of working with troubled borrowers, the Company may choose to restructure the contractual terms of certain loans in an effort to work out an alternative payment schedule with the borrower in order to optimize the collectability of the loan. Any loan modification is reviewed by the Company to identify whether a TDR has occurred when the Company grants a concession to the borrower that it would not otherwise consider based on economic or legal reasons related to a borrower’s financial difficulties. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status or the loan may be restructured to secure additional collateral and/or guarantees to support the debt, or a combination of the two. There was one portfolio residential mortgage loan classified as a new TDR during the three and six months ended June 30, 2020 with a pre-modification and post-modification outstanding recorded investment of $0.8 million. The Company did not allocate a specific allowance for that loan as of June 30, 2020. The modification consisted of an extension of the maturity date. There were four commercial and industrial loans classified as new TDRs during the three and six months ended June 30, 2019 with a pre-modification and post-modification outstanding recorded investment of $2.0 million. The Company did not allocate a specific allowance for those loans as of June 30, 2019. The modifications consisted of interest-only payments for a period of time. There were no performing TDRs that had payment defaults within the twelve months following modification during the three and six months ended June 30, 2020 and 2019, respectively. Non-TDR Loan Modifications due to COVID-19 The “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” was issued by our banking regulators on March 22, 2020. This guidance encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) provides that loan modifications due to the impact of COVID-19 that would otherwise be classified as TDRs under GAAP will not be so classified. Modifications within the scope of this relief are in effect from the period beginning March 1, 2020 until the earlier of December 31, 2020 or 60 days after the date on which the national emergency related to the COVID-19 pandemic formally terminates. In accordance with this guidance, the Company offered modifications to borrowers who were both impacted by COVID-19 and current on all principal and interest payments. The modifications completed in the six months ended June 30, 2020 totaled $392.4 million and consisted of payment deferrals. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU 2016-02 - Leases (Topic 842) and elected the optional transition method, which allows the Company to not separate non-lease components from the associated lease component if certain conditions are met. In addition, the Company elected not to adjust prior comparative periods. The Company has three operating leases that are used for general office operations with remaining lease terms of two The following table shows the components of lease expense. (in thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost $ 251 $ 187 $ 466 $ 368 The following table shows supplemental cash flow information related to leases. (in thousands) Six Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 497 $ 394 The following table shows the operating leases’ impact on the condensed consolidated balance sheets. The Company elected not to include short-term leases (leases with original terms of 12 months or less) or equipment leases, as those amounts are insignificant. The Company’s leases do not provide an implicit rate. The discount rate utilized to determine the present value of lease payments is the Company’s incremental borrowing rate based on the information available at the lease inception date. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. (dollars in thousands) June 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 1,242 $ 1,602 Operating lease liabilities 1,242 1,602 Weighted-average remaining lease term (years) Operating leases 2.1 2.4 Weighted-average discount rate Operating leases 2.0 % 2.0 % The following table shows the future minimum payments of operating leases with initial or remaining terms of one year or more as of June 30, 2020. (in thousands) Twelve months ended June 30, 2021 $ 691 2022 290 2023 232 2024 — 2025 — Thereafter — Total lease payments 1,213 Less: imputed interest (30) Total $ 1,183 |
Servicing Asset
Servicing Asset | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Servicing Asset | Servicing Asset Activity for the servicing asset and the related changes in fair value for the six months ended June 30, 2020 and 2019 are shown in the table below. (in thousands) Six Months Ended June 30, 2020 June 30, 2019 Beginning balance $ 2,481 $ — Additions 310 — Changes in fair value (269) — Ending balance $ 2,522 $ — Loans serviced for others are not included in the condensed consolidated balance sheets. The unpaid principal balances of these loans serviced for others as of June 30, 2020 and December 31, 2019 are shown in the table below. (in thousands) June 30, 2020 December 31, 2019 Loan portfolios serviced for: SBA guaranteed loans $ 113,927 $ 103,981 Total $ 113,927 $ 103,981 Loan servicing revenue totaled $0.3 million and $0.5 million during the three and six months ended June 30, 2020, respectively. There was no loan servicing revenue during the three and six months ended June 30, 2019. Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $0.1 million and $0.3 million downward valuation for the three and six months ended June 30, 2020, respectively. There was no loan servicing asset revaluation during the three and six months ended June 30, 2019. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Though fluctuations in prepayment speeds and changes in secondary market premiums generally have the most substantial impact on the fair value of servicing rights, other influencing factors include changing economic conditions, changes to the discount rate assumption and the weighted average life of the servicing portfolio. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time; however, those assumptions may change over time. Refer to Note 12 - Fair Value of Financial Instruments for further details. |
Commitments and Credit Risk
Commitments and Credit Risk | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Credit Risk | Commitments and Credit Risk In the normal course of business, the Company makes various commitments to extend credit which are not reflected in the accompanying condensed consolidated financial statements. At June 30, 2020 and December 31, 2019, the Company had outstanding loan commitments totaling approximately $267.4 million and $254.4 million, respectively. In addition, the Company is a limited partner in a Small Business Investment Company fund (the “SBIC Fund”). As of June 30, 2020, the Company has committed to contribute up to $1.7 million of capital to the SBIC Fund. Capital Commitments Capital expenditures contracted to at the balance sheet date but not yet recognized in the financial statements are associated with the construction of premises intended to house our future corporate headquarters. The Company has entered into construction-related contracts in the amount of $65.1 million. As of June 30, 2020, $51.6 million of such contract commitments had not yet been incurred. These commitments are due within two years. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC Topic 820, Fair Value Measurement , defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying condensed consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid mutual funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. Government-sponsored agencies, municipal securities, mortgage and asset-backed securities and certain corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but also on the investment securities’ relationship to other benchmark quoted investment securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair values are calculated using discounted cash flows. Discounted cash flows are calculated based off of the anticipated future cash flows updated to incorporate loss severities. Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation. The Company did not own any securities classified within Level 3 of the hierarchy as of June 30, 2020 or December 31, 2019. Loans Held-for-Sale (mandatory pricing agreements) The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). Servicing Asset Fair value is based on a loan-by-loan basis taking into consideration the original maturity of the loans, the current age of the loans and the remaining term to maturity. The valuation methodology utilized for the servicing assets begins with generating estimated future cash flows for each servicing asset, based on their unique characteristics and market-based assumptions for prepayment speeds and costs to service. The present value of the future cash flows is then calculated utilizing market-based discount rate assumptions (Level 3). Interest Rate Swap Agreements The fair value of interest rate swap agreements is estimated using current market interest rates as of the balance sheet date and calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. Forward Contracts The fair values of forward contracts on to-be-announced securities are determined using quoted prices in active markets or benchmarked thereto (Level 1). Interest Rate Lock Commitments The fair values of interest rate lock commitments (“IRLCs”) are determined using the projected sale price of individual loans based on changes in market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3). The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019. June 30, 2020 Fair Value Measurements Using (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 66,544 $ — $ 66,544 $ — Municipal securities 90,562 — 90,562 — Agency mortgage-backed securities 278,530 — 278,530 — Private label mortgage-backed securities 101,925 101,925 — Asset-backed securities 4,837 — 4,837 — Corporate securities 46,619 — 46,619 — Total available-for-sale securities 589,017 — 589,017 — Servicing asset 2,522 — — 2,522 Interest rate swap liabilities (34,494) — (34,494) — Loans held-for-sale (mandatory pricing agreements) 2,001 — 2,001 — Forward contracts (17) (17) — — IRLCs 282 — — 282 December 31, 2019 (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 75,872 $ — $ 75,872 $ — Municipal securities 97,652 — 97,652 — Agency mortgage-backed securities 261,440 — 261,440 — Private label mortgage-backed securities 63,613 — 63,613 — Asset-backed securities 4,955 — 4,955 — Corporate securities 37,320 — 37,320 — Total available-for-sale securities 540,852 — 540,852 — Servicing asset 2,481 — — 2,481 Interest rate swap liabilities (37,786) — (37,786) — Loans held-for-sale (mandatory pricing agreements) 56,097 — 56,097 — Forward contracts (153) (153) — — IRLCs 910 — — 910 The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and six months ended June 30, 2020 and 2019. Three Months Ended (in thousands) Servicing Asset Interest Rate Lock Balance, April 1, 2020 $ 2,415 $ 2,064 Total realized gains (losses) Additions 197 — Change in fair value (90) (1,782) Balance, June 30, 2020 2,522 282 Balance as of April 1, 2019 $ — $ 781 Total realized gains Change in fair value — 428 Balance, June 30, 2019 $ — $ 1,209 (in thousands) Six Months Ended Servicing Asset Interest Rate Lock Commitments Balance January 1, 2020 $ 2,481 $ 910 Total realized gains (losses) Additions 310 — Change in fair value (269) (628) Balance, June 30, 2020 $ 2,522 282 Balance as of January 1, 2019 $ — $ 389 Total realized gains Change in fair value — 820 Balance, June 30, 2019 $ — $ 1,209 The following describes the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy. Impaired Loans (Collateral Dependent) Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The amount of impairment may be determined based on the fair value of the underlying collateral, less costs to sell, the estimated present value of future cash flows or the loan’s observable market price. If the impaired loan is identified as collateral dependent, the fair value of the underlying collateral, less costs to sell, is used to measure impairment. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the impaired loan is not collateral dependent, the Company utilizes a discounted cash flow analysis to measure impairment. Impaired loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at December 31, 2019. The Company did not have any measurements on a nonrecurring basis at June 30, 2020. December 31, 2019 (in thousands) Fair Value Measurements Using Fair Quoted Prices Significant Significant Impaired loans $ 3,019 $ — $ — $ 3,019 Significant Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. (dollars in thousands) Fair Value at Valuation Significant Unobservable Range Weighted-Average Range IRLCs $ 282 Discounted cash flow Loan closing rates 63% - 100% 73% Servicing asset 2,522 Discounted cash flow Prepayment speeds 0% - 25% 13.0% Expected weighted-average loan life 3.6 - 5.6 years 4.8 years (dollars in thousands) Fair Value at Valuation Significant Unobservable Range Weighted-Average Range Impaired loans $ 3,019 Fair value of collateral Discount for type of property and current market conditions 10% 10% IRLCs 910 Discounted cash flow Loan closing rates 50% - 100% 84% Servicing asset 2,481 Discounted cash flow Prepayment speeds 0% - 25% 13.5% Expected weighted-average loan life 3.2 - 5.7 years 5.0 years The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying condensed consolidated balance sheets at amounts other than fair value. Cash and Cash Equivalents For these instruments, the carrying amount is a reasonable estimate of fair value. Securities Held-to-Maturity Fair values are determined by using models that are based on security-specific details, as well as relevant industry and economic factors. The most significant of these inputs are quoted market prices and interest rate spreads on relevant benchmark securities. Loans Held-for-Sale (best efforts pricing agreements) The fair value of these loans approximates carrying value. Loans The fair value of loans is estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Accrued Interest Receivable The fair value of these financial instruments approximates carrying value. Federal Home Loan Bank of Indianapolis Stock The fair value approximates carrying value. Deposits The fair value of noninterest-bearing and interest-bearing demand deposits, savings and money market accounts approximates carrying value. The fair value of fixed maturity certificates of deposit and brokered deposits are estimated using rates currently offered for deposits of similar remaining maturities. Advances from Federal Home Loan Bank The fair value of fixed rate advances is estimated using rates currently available for advances with similar remaining maturities. The carrying value of variable rate advances approximates fair value. Subordinated Debt The fair value of the Company’s publicly traded subordinated debt is obtained from quoted market prices. The fair value of the Company’s remaining subordinated debt is estimated using discounted cash flow analysis, based on current borrowing rates for similar types of debt instruments. Accrued Interest Payable The fair value of these financial instruments approximates carrying value. Commitments The fair value of commitments to extend credit are based on fees currently charged to enter into similar agreements with similar maturities and interest rates. The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of June 30, 2020 and December 31, 2019. The following tables present the carrying value and estimated fair value of all financial assets and liabilities at June 30, 2020 and December 31, 2019. June 30, 2020 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 498,619 $ 498,619 $ 498,619 $ — $ — Securities held-to-maturity 68,295 69,152 — 69,152 — Loans held-for-sale (best efforts pricing agreements) 23,493 23,493 — 23,493 — Net loans 2,949,209 3,006,369 — — 3,006,369 Accrued interest receivable 21,093 21,093 21,093 — — Federal Home Loan Bank of Indianapolis stock 25,650 25,650 — 25,650 — Deposits 3,380,789 3,428,960 1,520,495 — 1,908,465 Advances from Federal Home Loan Bank 514,913 548,015 — 548,015 — Subordinated debt 69,681 65,349 55,154 10,195 — Accrued interest payable 1,073 1,073 1,073 — — December 31, 2019 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 327,361 $ 327,361 $ 327,361 $ — $ — Securities held-to-maturity 61,878 62,560 — 62,560 — Net loans 2,941,707 2,876,688 — — 2,876,688 Accrued interest receivable 18,607 18,607 18,607 — — Federal Home Loan Bank of Indianapolis stock 25,650 25,650 — 25,650 — Deposits 3,153,963 3,232,065 1,002,141 — 2,229,924 Advances from Federal Home Loan Bank 514,910 520,950 — 520,950 — Subordinated debt 69,528 75,206 64,996 10,210 — Accrued interest payable 3,767 3,767 3,767 — — |
Mortgage Banking Activities
Mortgage Banking Activities | 6 Months Ended |
Jun. 30, 2020 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Activities | Mortgage Banking ActivitiesThe Company’s residential real estate lending business originates mortgage loans for customers and typically sells a majority of the originated loans into the secondary market. For most of the mortgages it sells in the secondary market, the Company hedges its mortgage banking pipeline by entering into forward contracts for the future delivery of mortgage loans to third party investors and entering into IRLCs with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. To facilitate the hedging of the loans, the Company has elected the fair value option for loans originated and intended for sale in the secondary market under mandatory pricing agreements. Changes in the fair value of loans held-for-sale, IRLCs and forward contracts are recorded in the mortgage banking activities line item within noninterest income. Refer to Note 14 for further information on derivative financial instruments. During the three months ended June 30, 2020 and 2019, the Company originated mortgage loans held-for-sale of $211.9 million and $145.0 million, respectively, and sold $229.2 million and $130.4 million of mortgage loans, respectively, into the secondary market. During the six months ended June 30, 2020 and 2019, the Company originated mortgage loans held-for-sale of $427.3 million and $220.3 million, respectively, and sold $454.7 million and $211.4 million of mortgage loans, respectively, into the secondary market. The following table presents the components of income from mortgage banking activities for the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Gain on loans sold $ 4,164 $ 1,825 $ 8,507 $ 3,298 (Loss) gain resulting from the change in fair value of loans held-for-sale (1,255) 534 (939) 352 Gain (loss) resulting from the change in fair value of derivatives 499 305 (492) 631 Net revenue from mortgage banking activities $ 3,408 $ 2,664 $ 7,076 $ 4,281 Fluctuations in interest rates and changes in IRLC and loan volume within the mortgage banking pipeline may cause volatility in the fair value of loans held-for-sale and the fair value of derivatives used to hedge the mortgage banking pipeline. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, included in stockholders' equity, for the six months ended June 30, 2020 and 2019, respectively, are presented in the table below. (in thousands) Available-For-Sale Securities Cash Flow Hedges Total Balance, January 1, 2020 $ (4,388) $ (9,803) $ (14,191) Net change in unrealized gain (loss) 4,801 (13,967) (9,166) Reclassification of gain realized and included in earnings (41) — (41) Accumulated other comprehensive income (loss) before income tax 372 (23,770) (23,398) Income tax provision (benefit) 1,760 (4,020) (2,260) Balance, June 30, 2020 $ (1,388) $ (19,750) $ (21,138) Balance, January 1, 2019 $ (13,360) $ (3,181) $ (16,541) Net change in unrealized gain (loss) 10,577 (9,464) 1,113 Reclassification of net loss realized and included in earnings 458 — 458 Accumulated other comprehensive loss before income tax (2,325) (12,645) (14,970) Income tax provision (benefit) 3,163 (2,555) 608 Balance, June 30, 2019 $ (5,488) $ (10,090) $ (15,578) The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended June 30, 2020 and 2019, respectively, are presented in the table below. (in thousands) Available-For-Sale Securities Cash Flow Hedges Total Balance, April 1, 2020 $ (239) $ (19,627) $ (19,866) Net change in unrealized loss (1,498) (509) (2,007) Accumulated other comprehensive loss before income tax (1,737) (20,136) (21,873) Income tax benefit (349) (386) (735) Balance, June 30, 2020 $ (1,388) $ (19,750) $ (21,138) Balance, April 1, 2019 $ (8,380) $ (5,788) $ (14,168) Net change in unrealized gain (loss) 3,667 (5,892) (2,225) Reclassification of net loss realized and included in earnings 458 — 458 Accumulated other comprehensive loss before income tax (4,255) (11,680) (15,935) Income tax provision (benefit) 1,233 (1,590) (357) Balance, June 30, 2019 $ (5,488) $ (10,090) $ (15,578) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (June 2016) The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets that are not accounted for at fair value through net income. The amendments affect loans, debt securities, off-balance-sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. There is diversity in practice in applying the incurred loss methodology, which means that before transition some entities may be more aligned under current GAAP than others to the new measure of expected credit losses. The following describes the main provisions of this update. • Assets Measured at Amortized Cost: The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The statements of income reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increase or decrease of credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. • Available-for-Sale Debt Securities: Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available-for-sale is premised on an investment strategy that recognizes that the investment could be sold at fair value if cash collection would result in the realization of an amount less than fair value. • In May 2019, the FASB issued ASU 2019-05 - Financial Instruments - Credit Losses (Topic 326) - Targeted Transition Relief . This ASU allows an option for preparers to irrevocably elect the fair value option, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of the credit losses standard. This increases the comparability of financial statement information provided by institutions that otherwise would have reported similar financial instruments using different measurement methodologies, potentially decreasing costs for financial statement preparers while providing more useful information to investors and other users. For public business entities that are SEC filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may early adopt the amendments in this update as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In October 2019, the FASB voted to delay the effective date for smaller reporting companies to fiscal years beginning after December 15, 2022. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an OTTI had been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of this update. The Company does not expect to early adopt and is currently evaluating the impact of the amendments on the Company’s condensed consolidated financial statements. The Company currently cannot determine or reasonably quantify the impact of the adoption of the amendments due to the complexity and extensive changes. The Company intends to develop processes and procedures prior to the effective date to ensure it is fully compliant with the amendments at the adoption date. The Company has formed an implementation committee and has engaged a third-party consultant to assist in developing current expected credit losses (“CECL”) models using appropriate methodologies. ASU 2017-04 - Intangibles - Goodwill and other (Topic 350) - Simplifying the Test for Goodwill Impairment” (January 2017) The amendments in this update simplify the goodwill impairment test by eliminating Step 2 of the goodwill impairment process, which requires an entity to determine the implied fair value of its goodwill by assigning fair value to all its assets and liabilities. Under the new guidance, an entity will record an impairment charge if a reporting unit’s carrying amount exceeds its fair value. Entities still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment is necessary. The amendments in this ASU are effective for smaller reporting companies for annual and interim impairment tests performed in periods beginning after December 15, 2022. Early adoption is permitted. The Company adopted this guidance effective July 1, 2020 and it did not have a material impact on the condensed consolidated financial statements. ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (August 2018) The amendments in this update modify the disclosure requirements on fair value measurements in ASC Topic 820. This ASU eliminates the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. In addition, this ASU requires entities that calculate net asset value to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. This ASU also adds new requirements, which include the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for public companies for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2019. The Company adopted this guidance and it did not have a material impact on the condensed consolidated financial statements. ASU 2019-04 - Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (April 2019) The amendments in this ASU clarify or correct the guidance in ASC Topic 326, Topic 815 and Topic 825. With respect to Topic 326, ASU 2019-04 addresses a number of issues as it relates to the CECL standard including consideration of accrued interest, recoveries, variable-rate financial instruments, prepayments, extension and renewal options, among other things, in the measurement of expected credit losses. The amendments to Topic 326 have the same effective dates as ASU 2016-13 and the Company is currently evaluating the potential impact of these amendments on the condensed consolidated financial statements. With respect to Topic 815, ASU 2019-04 clarifies issues related to partial-term hedges, hedged debt securities, and transitioning from a quantitative method of assessing hedge effectiveness to a more simplified method. The amendments to Topic 815 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the condensed consolidated financial statements. With respect to Topic 825, ASU 2019-04 addresses the scope of the guidance, the requirement for remeasurement under ASC Topic 820 when using the measurement alternative, certain disclosure requirements, and which equity securities must be remeasured at historical exchanges rates. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the condensed consolidated financial statements. Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) In March 2020 in connection with the implementation of the CARES Act and related provisions, the Company elected the temporary relief in the CARES Act not to apply the guidance in ASC 310-40 on accounting for TDRs to loan modifications related to COVID-19. Section 4013 of the CARES Act further provides that loan modifications due to the impact of COVID-19 that would otherwise be classified as TDRs under GAAP will not be so classified. Modifications within the scope of this relief are in effect from the period beginning March 1, 2020 until the earlier of December 31, 2020 or 60 days after the date on which the national emergency related to the COVID-19 pandemic formally terminates. See the “Non-TDR Loan Modifications due to COVID-19” section of Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (June 2016) The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets that are not accounted for at fair value through net income. The amendments affect loans, debt securities, off-balance-sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. There is diversity in practice in applying the incurred loss methodology, which means that before transition some entities may be more aligned under current GAAP than others to the new measure of expected credit losses. The following describes the main provisions of this update. • Assets Measured at Amortized Cost: The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The statements of income reflect the measurement of credit losses for newly recognized financial assets, as well as the expected increase or decrease of credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. • Available-for-Sale Debt Securities: Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. Available-for-sale accounting recognizes that value may be realized either through collection of contractual cash flows or through sale of the security. Therefore, the amendments limit the amount of the allowance for credit losses to the amount by which fair value is below amortized cost because the classification as available-for-sale is premised on an investment strategy that recognizes that the investment could be sold at fair value if cash collection would result in the realization of an amount less than fair value. • In May 2019, the FASB issued ASU 2019-05 - Financial Instruments - Credit Losses (Topic 326) - Targeted Transition Relief . This ASU allows an option for preparers to irrevocably elect the fair value option, on an instrument-by-instrument basis, for eligible financial assets measured at amortized cost basis upon adoption of the credit losses standard. This increases the comparability of financial statement information provided by institutions that otherwise would have reported similar financial instruments using different measurement methodologies, potentially decreasing costs for financial statement preparers while providing more useful information to investors and other users. For public business entities that are SEC filers, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may early adopt the amendments in this update as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In October 2019, the FASB voted to delay the effective date for smaller reporting companies to fiscal years beginning after December 15, 2022. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). A prospective transition approach is required for debt securities for which an OTTI had been recognized before the effective date. The effect of a prospective transition approach is to maintain the same amortized cost basis before and after the effective date of this update. The Company does not expect to early adopt and is currently evaluating the impact of the amendments on the Company’s condensed consolidated financial statements. The Company currently cannot determine or reasonably quantify the impact of the adoption of the amendments due to the complexity and extensive changes. The Company intends to develop processes and procedures prior to the effective date to ensure it is fully compliant with the amendments at the adoption date. The Company has formed an implementation committee and has engaged a third-party consultant to assist in developing current expected credit losses (“CECL”) models using appropriate methodologies. ASU 2017-04 - Intangibles - Goodwill and other (Topic 350) - Simplifying the Test for Goodwill Impairment” (January 2017) The amendments in this update simplify the goodwill impairment test by eliminating Step 2 of the goodwill impairment process, which requires an entity to determine the implied fair value of its goodwill by assigning fair value to all its assets and liabilities. Under the new guidance, an entity will record an impairment charge if a reporting unit’s carrying amount exceeds its fair value. Entities still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment is necessary. The amendments in this ASU are effective for smaller reporting companies for annual and interim impairment tests performed in periods beginning after December 15, 2022. Early adoption is permitted. The Company adopted this guidance effective July 1, 2020 and it did not have a material impact on the condensed consolidated financial statements. ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (August 2018) The amendments in this update modify the disclosure requirements on fair value measurements in ASC Topic 820. This ASU eliminates the requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. In addition, this ASU requires entities that calculate net asset value to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. This ASU also adds new requirements, which include the disclosure of the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for public companies for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2019. The Company adopted this guidance and it did not have a material impact on the condensed consolidated financial statements. ASU 2019-04 - Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (April 2019) The amendments in this ASU clarify or correct the guidance in ASC Topic 326, Topic 815 and Topic 825. With respect to Topic 326, ASU 2019-04 addresses a number of issues as it relates to the CECL standard including consideration of accrued interest, recoveries, variable-rate financial instruments, prepayments, extension and renewal options, among other things, in the measurement of expected credit losses. The amendments to Topic 326 have the same effective dates as ASU 2016-13 and the Company is currently evaluating the potential impact of these amendments on the condensed consolidated financial statements. With respect to Topic 815, ASU 2019-04 clarifies issues related to partial-term hedges, hedged debt securities, and transitioning from a quantitative method of assessing hedge effectiveness to a more simplified method. The amendments to Topic 815 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the condensed consolidated financial statements. With respect to Topic 825, ASU 2019-04 addresses the scope of the guidance, the requirement for remeasurement under ASC Topic 820 when using the measurement alternative, certain disclosure requirements, and which equity securities must be remeasured at historical exchanges rates. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the condensed consolidated financial statements. Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) In March 2020 in connection with the implementation of the CARES Act and related provisions, the Company elected the temporary relief in the CARES Act not to apply the guidance in ASC 310-40 on accounting for TDRs to loan modifications related to COVID-19. Section 4013 of the CARES Act further provides that loan modifications due to the impact of COVID-19 that would otherwise be classified as TDRs under GAAP will not be so classified. Modifications within the scope of this relief are in effect from the period beginning March 1, 2020 until the earlier of December 31, 2020 or 60 days after the date on which the national emergency related to the COVID-19 pandemic formally terminates. See the “Non-TDR Loan Modifications due to COVID-19” section of Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three and six months ended June 30, 2020 and 2019. (dollars in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per share Net income $ 3,932 $ 6,121 $ 9,951 $ 11,817 Weighted-average common shares 9,768,227 10,148,285 9,798,528 10,182,770 Basic earnings per common share $ 0.40 $ 0.60 $ 1.02 $ 1.16 Diluted earnings per share Net income $ 3,932 $ 6,121 $ 9,951 $ 11,817 Weighted-average common shares 9,768,227 10,148,285 9,798,528 10,182,770 Dilutive effect of equity compensation — — 3,899 4,063 Weighted-average common and incremental shares 9,768,227 10,148,285 9,802,427 10,186,833 Diluted earnings per common share (1) $ 0.40 $ 0.60 $ 1.02 $ 1.16 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following tables summarize securities available-for-sale and securities held-to-maturity as of June 30, 2020 and December 31, 2019. June 30, 2020 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 68,203 $ 384 $ (2,043) $ 66,544 Municipal securities 91,906 3,140 (4,484) 90,562 Agency mortgage-backed securities 275,433 6,632 (3,535) 278,530 Private label mortgage-backed securities 101,110 1,044 (229) 101,925 Asset-backed securities 5,000 — (163) 4,837 Corporate securities 48,394 309 (2,084) 46,619 Total available-for-sale $ 590,046 $ 11,509 $ (12,538) $ 589,017 December 31, 2019 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 77,715 $ 99 $ (1,942) $ 75,872 Municipal securities 97,447 1,706 (1,501) 97,652 Agency mortgage-backed securities 264,142 1,304 (4,006) 261,440 Private label mortgage-backed securities 63,704 97 (188) 63,613 Asset-backed securities 5,000 — (45) 4,955 Corporate securities 38,632 220 (1,532) 37,320 Total available-for-sale $ 546,640 $ 3,426 $ (9,214) $ 540,852 |
Schedule Of Held-To-Maturity Securities Reconciliation | June 30, 2020 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 14,603 $ 671 $ — $ 15,274 Corporate securities 53,692 768 (582) 53,878 Total held-to-maturity $ 68,295 $ 1,439 $ (582) $ 69,152 December 31, 2019 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 10,142 $ 226 $ — $ 10,368 Corporate securities 51,736 588 (132) 52,192 Total held-to-maturity $ 61,878 $ 814 $ (132) $ 62,560 |
Available-for-sale Securities | The carrying value of securities at June 30, 2020 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale (in thousands) Amortized Fair Within one year $ 15 $ 15 One to five years 30,141 25,364 Five to ten years 82,174 79,991 After ten years 96,173 98,355 208,503 203,725 Agency mortgage-backed securities 275,433 278,530 Private label mortgage-backed securities 101,110 101,925 Asset-backed securities 5,000 4,837 Total $ 590,046 $ 589,017 |
Held-to-maturity Securities | Held-to-Maturity (in thousands) Amortized Fair One to five years $ 1,505 $ 1,557 Five to ten years 54,272 54,642 After ten years 12,518 12,953 Total $ 68,295 $ 69,152 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2020. The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019. June 30, 2020 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale U.S. Government-sponsored agencies $ 1,195 $ (15) $ 56,494 $ (2,028) $ 57,689 $ (2,043) Municipal securities 61,167 (4,484) — — 61,167 (4,484) Agency mortgage-backed securities 22,419 (391) 10,727 (3,144) 33,146 (3,535) Private label mortgage-backed securities 21,781 (160) 2,777 (69) 24,558 (229) Asset-backed securities — — 4,837 (163) 4,837 (163) Corporate securities 12,512 (122) 20,038 (1,962) 32,550 (2,084) Total $ 119,074 $ (5,172) $ 94,873 $ (7,366) $ 213,947 $ (12,538) June 30, 2020 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Corporate securities $ 23,527 $ (582) $ — $ — $ 23,527 $ (582) Total $ 23,527 $ (582) $ — $ — $ 23,527 $ (582) December 31, 2019 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale U.S. Government-sponsored agencies $ 4,820 $ (61) $ 62,182 $ (1,881) $ 67,002 $ (1,942) Municipal securities 1,279 (1,501) — — 1,279 (1,501) Agency mortgage-backed securities 91,159 (829) 83,212 (3,177) 174,371 (4,006) Private label mortgage-backed securities 30,077 (180) 2,884 (8) 32,961 (188) Asset-backed securities — — 4,955 (45) 4,955 (45) Corporate securities — — 22,985 (1,532) 22,985 (1,532) Total $ 127,335 $ (2,571) $ 176,218 $ (6,643) $ 303,553 $ (9,214) |
Held to Maturity, Continuous Unrealized Loss Position, Fair Value | December 31, 2019 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Corporate securities 13,977 (132) — — 13,977 (132) Total $ 13,977 $ (132) $ — $ — $ 13,977 $ (132) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and six months ended June 30, 2020 and June 30, 2019 were as follows: (in thousands) Details About Accumulated Other Comprehensive Loss Components Affected Line Item in the Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Realized gains (losses) on securities available-for-sale Gain (loss) realized in earnings $ — $ 41 $ (458) $ (458) Gain (loss) on sale of securities Total reclassified amount before tax — 41 (458) (458) Income Before Income Taxes Tax expense (benefit) — 11 (124) (124) Income Tax Provision (Benefit) Total reclassifications out of accumulated other comprehensive loss $ — $ 30 $ (334) $ (334) Net Income The components of accumulated other comprehensive loss, included in stockholders' equity, for the six months ended June 30, 2020 and 2019, respectively, are presented in the table below. (in thousands) Available-For-Sale Securities Cash Flow Hedges Total Balance, January 1, 2020 $ (4,388) $ (9,803) $ (14,191) Net change in unrealized gain (loss) 4,801 (13,967) (9,166) Reclassification of gain realized and included in earnings (41) — (41) Accumulated other comprehensive income (loss) before income tax 372 (23,770) (23,398) Income tax provision (benefit) 1,760 (4,020) (2,260) Balance, June 30, 2020 $ (1,388) $ (19,750) $ (21,138) Balance, January 1, 2019 $ (13,360) $ (3,181) $ (16,541) Net change in unrealized gain (loss) 10,577 (9,464) 1,113 Reclassification of net loss realized and included in earnings 458 — 458 Accumulated other comprehensive loss before income tax (2,325) (12,645) (14,970) Income tax provision (benefit) 3,163 (2,555) 608 Balance, June 30, 2019 $ (5,488) $ (10,090) $ (15,578) The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended June 30, 2020 and 2019, respectively, are presented in the table below. (in thousands) Available-For-Sale Securities Cash Flow Hedges Total Balance, April 1, 2020 $ (239) $ (19,627) $ (19,866) Net change in unrealized loss (1,498) (509) (2,007) Accumulated other comprehensive loss before income tax (1,737) (20,136) (21,873) Income tax benefit (349) (386) (735) Balance, June 30, 2020 $ (1,388) $ (19,750) $ (21,138) Balance, April 1, 2019 $ (8,380) $ (5,788) $ (14,168) Net change in unrealized gain (loss) 3,667 (5,892) (2,225) Reclassification of net loss realized and included in earnings 458 — 458 Accumulated other comprehensive loss before income tax (4,255) (11,680) (15,935) Income tax provision (benefit) 1,233 (1,590) (357) Balance, June 30, 2019 $ (5,488) $ (10,090) $ (15,578) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loan balances as of June 30, 2020 and December 31, 2019 are summarized in the table below. Categories of loans include: (in thousands) June 30, 2020 December 31, 2019 Commercial loans Commercial and industrial $ 81,687 $ 96,420 Owner-occupied commercial real estate (1) 86,897 86,726 Investor commercial real estate 13,286 12,567 Construction 77,591 60,274 Single tenant lease financing 980,292 995,879 Public finance 647,107 687,094 Healthcare finance 380,956 300,612 Small business lending (1) 118,526 46,945 Total commercial loans 2,386,342 2,286,517 Consumer loans Residential mortgage 208,728 313,849 Home equity 22,640 24,306 Other consumer 291,632 295,309 Total consumer loans 523,000 633,464 Total commercial and consumer loans 2,909,342 2,919,981 Net deferred loan origination costs and premiums and discounts on purchased loans and other (2) 64,332 43,566 Total loans 2,973,674 2,963,547 Allowance for loan losses (24,465) (21,840) Net loans $ 2,949,209 $ 2,941,707 (1) As of June 30, 2020, $13.3 million of commercial real estate loan balances were reclassified from small business lending to owner-occupied commercial real estate. |
Allowance for Credit Losses on Financing Receivables | The following tables present changes in the balance of the ALLL during the three and six months ended June 30, 2020 and 2019. (in thousands) Three Months Ended June 30, 2020 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,670 $ (141) $ (57) $ 5 $ 1,477 Owner-occupied commercial real estate 645 201 — — 846 Investor commercial real estate 128 2 — — 130 Construction 460 261 — — 721 Single tenant lease financing 10,755 563 — — 11,318 Public finance 1,483 59 — — 1,542 Healthcare finance 4,318 1,187 (743) — 4,762 Small business lending 265 (20) — 6 251 Residential mortgage 500 36 — 3 539 Home equity 53 (4) — 2 51 Other consumer 2,580 347 (216) 117 2,828 Total $ 22,857 $ 2,491 $ (1,016) $ 133 $ 24,465 Six Months Ended June 30, 2020 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,521 $ 205 $ (254) $ 5 $ 1,477 Owner-occupied commercial real estate 561 285 — — 846 Investor commercial real estate 109 21 — — 130 Construction 380 341 — — 721 Single tenant lease financing 11,175 143 — — 11,318 Public finance 1,580 (38) — — 1,542 Healthcare finance 3,247 2,258 (743) — 4,762 Small business lending 54 183 — 14 251 Residential mortgage 657 (107) (15) 4 539 Home equity 46 — — 5 51 Other consumer 2,510 661 (502) 159 2,828 Total $ 21,840 $ 3,952 $ (1,514) $ 187 $ 24,465 (in thousands) Three Months Ended June 30, 2019 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,351 $ 444 $ — $ — $ 1,795 Owner-occupied commercial real estate 847 (223) — — 624 Investor commercial real estate 103 66 — — 169 Construction 267 35 — — 302 Single tenant lease financing 9,368 293 — — 9,661 Public finance 1,650 113 — — 1,763 Healthcare finance 1,731 562 — — 2,293 Small business lending 93 36 — — 129 Residential mortgage 1,044 (383) — 1 662 Home equity 49 (5) — 4 48 Other consumer 2,338 451 (337) 78 2,530 Total $ 18,841 $ 1,389 $ (337) $ 83 $ 19,976 Six Months Ended June 30, 2019 Allowance for loan losses: Balance, Beginning of Period Provision (Credit) Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,384 $ 523 $ (112) $ — $ 1,795 Owner-occupied commercial real estate 891 (267) — — 624 Investor commercial real estate 61 108 — — 169 Construction 251 51 — — 302 Single tenant lease financing 8,827 834 — — 9,661 Public finance 1,670 93 — — 1,763 Healthcare finance 1,264 1,029 — — 2,293 Small business lending 95 34 — — 129 Residential mortgage 1,079 (419) — 2 662 Home equity 53 (11) — 6 48 Other consumer 2,321 699 (654) 164 2,530 Total $ 17,896 $ 2,674 $ (766) $ 172 $ 19,976 |
Allowance For Credit Losses On Financing Receivables Portfolio Segment | The following tables present the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2020 and December 31, 2019. (in thousands) Loans Allowance for Loan Losses June 30, 2020 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 80,871 $ 816 $ 81,687 $ 1,368 $ 109 $ 1,477 Owner-occupied commercial real estate 82,974 3,922 86,897 846 — 846 Investor commercial real estate 13,286 — 13,286 130 — 130 Construction 77,591 — 77,591 721 — 721 Single tenant lease financing 975,612 4,680 980,292 9,658 1,660 11,318 Public finance 647,107 — 647,107 1,542 — 1,542 Healthcare finance 380,956 — 380,956 4,762 — 4,762 Small business lending 118,526 — 118,526 251 251 Residential mortgage 207,320 1,408 208,728 539 — 539 Home equity 22,640 — 22,640 51 — 51 Other consumer 291,518 115 291,632 2,828 — 2,828 Total $ 2,898,401 $ 10,941 $ 2,909,342 $ 22,696 $ 1,769 $ 24,465 (in thousands) Loans Allowance for Loan Losses December 31, 2019 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 93,520 $ 2,900 $ 96,420 $ 1,412 $ 109 $ 1,521 Owner-occupied commercial real estate 81,063 5,663 86,726 561 — 561 Investor commercial real estate 12,567 — 12,567 109 — 109 Construction 60,274 — 60,274 380 — 380 Single tenant lease financing 991,199 4,680 995,879 9,515 1,660 11,175 Public finance 687,094 — 687,094 1,580 — 1,580 Healthcare finance 300,612 — 300,612 3,247 — 3,247 Small business lending 46,945 — 46,945 54 — 54 Residential mortgage 312,714 1,135 313,849 657 — 657 Home equity 24,306 — 24,306 46 — 46 Other consumer 295,266 43 295,309 2,510 — 2,510 Total $ 2,905,560 $ 14,421 $ 2,919,981 $ 20,071 $ 1,769 $ 21,840 |
Financing Receivable Credit Quality Indicators | The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of June 30, 2020 and December 31, 2019. June 30, 2020 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 77,447 $ 3,465 $ 775 $ 81,687 Owner-occupied commercial real estate 80,389 2,585 3,923 86,897 Investor commercial real estate 13,286 — — 13,286 Construction 77,591 — — 77,591 Single tenant lease financing 966,782 8,830 4,680 980,292 Public finance 647,107 — — 647,107 Healthcare finance 379,899 1,057 — 380,956 Small business lending 118,526 — — 118,526 Total commercial loans $ 2,361,027 $ 15,937 $ 9,378 $ 2,386,342 June 30, 2020 (in thousands) Performing Nonaccrual Total Residential mortgage $ 207,686 $ 1,042 $ 208,728 Home equity 22,640 — 22,640 Other consumer 291,524 108 291,632 Total consumer loans $ 521,850 $ 1,150 $ 523,000 December 31, 2019 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 89,818 $ 3,973 $ 2,629 $ 96,420 Owner-occupied commercial real estate 79,329 3,462 3,935 86,726 Investor commercial real estate 12,567 — — 12,567 Construction 60,274 — — 60,274 Single tenant lease financing 983,448 7,751 4,680 995,879 Public finance 687,094 — — 687,094 Healthcare finance 300,612 — — 300,612 Small business lending 46,945 — — 46,945 Total commercial loans $ 2,260,087 $ 15,186 $ 11,244 $ 2,286,517 December 31, 2019 (in thousands) Performing Nonaccrual Total Residential mortgage $ 313,088 $ 761 $ 313,849 Home equity 24,306 — 24,306 Other consumer 295,276 33 295,309 Total consumer loans $ 632,670 $ 794 $ 633,464 |
Past Due Financing Receivables | The following tables present the Company’s loan portfolio delinquency analysis as of June 30, 2020 and December 31, 2019. June 30, 2020 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ 80 $ — $ 212 $ 292 $ 81,395 $ 81,687 $ 299 $ — Owner-occupied commercial real estate — — 2,066 2,066 84,831 86,897 2,066 — Investor commercial real estate — — — — 13,286 13,286 — — Construction — — — — 77,591 77,591 — — Single tenant lease financing — — 4,680 4,680 975,612 980,292 4,680 — Public finance — — — — 647,107 647,107 — — Healthcare finance — — — — 380,956 380,956 — — Small business lending — — — — 118,526 118,526 — — Residential mortgage — — 281 281 208,447 208,728 1,042 — Home equity — — — — 22,640 22,640 — — Other consumer 80 56 25 161 291,471 291,632 108 — Total $ 160 $ 56 $ 7,264 $ 7,480 $ 2,901,862 $ 2,909,342 $ 8,195 $ — December 31, 2019 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ 15 $ 96 $ 122 $ 233 $ 96,187 $ 96,420 $ 226 $ — Owner-occupied commercial real estate — — 464 464 86,262 86,726 464 — Investor commercial real estate — — — — 12,567 12,567 — — Construction — — — — 60,274 60,274 — — Single tenant lease financing — 4,680 — 4,680 991,199 995,879 4,680 — Public finance — — — — 687,094 687,094 — — Healthcare finance — — — — 300,612 300,612 — — Small business lending 54 — 54 46,891 46,945 — — Residential mortgage — — 1,177 1,177 312,672 313,849 761 416 Home equity — — — — 24,306 24,306 — — Other consumer 240 107 — 347 294,962 295,309 33 — Total $ 309 $ 4,883 $ 1,763 $ 6,955 $ 2,913,026 $ 2,919,981 $ 6,164 $ 416 |
Impaired Financing Receivables | The following table presents the Company’s impaired loans as of June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (in thousands) Recorded Unpaid Specific Recorded Unpaid Specific Loans without a specific valuation allowance Commercial and industrial $ 613 $ 672 $ — $ 2,693 $ 2,694 $ — Owner-occupied commercial real estate 3,922 3,925 — 5,663 5,665 — Residential mortgage 1,408 1,498 — 1,135 1,209 — Other consumer 115 215 — 43 107 — Total 6,058 6,310 — 9,534 9,675 — Loans with a specific valuation allowance Commercial and industrial 203 240 109 207 244 109 Single tenant lease financing 4,680 4,680 1,660 4,680 4,680 1,660 Total 4,883 4,920 1,769 4,887 4,924 1,769 Total impaired loans $ 10,941 $ 11,230 $ 1,769 $ 14,421 $ 14,599 $ 1,769 The table below presents average balances and interest income recognized for impaired loans during the three and six months ended June 30, 2020 and 2019. Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 (in thousands) Average Interest Average Interest Average Interest Average Interest Loans without a specific valuation allowance Commercial and industrial $ 594 $ 18 $ 4,053 $ 86 $ 1,330 $ 36 $ 4,376 $ 167 Owner-occupied commercial real estate 3,923 29 2,723 66 4,573 31 2,464 93 Small business lending — — — — Residential mortgage 1,352 — 3,538 — 1,313 — 2,796 — Home equity — — — — — — 21 — Other consumer 75 — 83 — 60 — 79 — Total 5,944 47 10,397 152 7,276 67 9,736 260 Loans with a specific valuation allowance Commercial and industrial 204 — 353 — 204 — 177 — Single tenant lease financing 4,680 — — — 4,680 — — — Total 4,884 — 353 — 4,884 — 177 — Total impaired loans $ 10,828 $ 47 $ 10,750 $ 152 $ 12,160 $ 67 $ 9,913 $ 260 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table summarizes premises and equipment at June 30, 2020 and December 31, 2019. (in thousands) June 30, December 31, Land $ 2,500 $ 2,500 Right of use leased asset 1,242 1,602 Building and improvements 19,821 10,004 Furniture and equipment 10,452 9,689 Less: accumulated depreciation (10,076) (9,165) Total $ 23,939 $ 14,630 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | The following table shows the components of lease expense. (in thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost $ 251 $ 187 $ 466 $ 368 |
Lessee, Supplemental Cash Flow | The following table shows supplemental cash flow information related to leases. (in thousands) Six Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 497 $ 394 |
Lessee, Supplemental Balance Sheet | The following table shows the operating leases’ impact on the condensed consolidated balance sheets. The Company elected not to include short-term leases (leases with original terms of 12 months or less) or equipment leases, as those amounts are insignificant. The Company’s leases do not provide an implicit rate. The discount rate utilized to determine the present value of lease payments is the Company’s incremental borrowing rate based on the information available at the lease inception date. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. (dollars in thousands) June 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 1,242 $ 1,602 Operating lease liabilities 1,242 1,602 Weighted-average remaining lease term (years) Operating leases 2.1 2.4 Weighted-average discount rate Operating leases 2.0 % 2.0 % |
Lessee, Operating Lease, Liability, Maturity | The following table shows the future minimum payments of operating leases with initial or remaining terms of one year or more as of June 30, 2020. (in thousands) Twelve months ended June 30, 2021 $ 691 2022 290 2023 232 2024 — 2025 — Thereafter — Total lease payments 1,213 Less: imputed interest (30) Total $ 1,183 |
Servicing Asset (Tables)
Servicing Asset (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | Activity for the servicing asset and the related changes in fair value for the six months ended June 30, 2020 and 2019 are shown in the table below. (in thousands) Six Months Ended June 30, 2020 June 30, 2019 Beginning balance $ 2,481 $ — Additions 310 — Changes in fair value (269) — Ending balance $ 2,522 $ — |
Schedule Of Unpaid Principal Balances Of Loans Serviced For Others | The unpaid principal balances of these loans serviced for others as of June 30, 2020 and December 31, 2019 are shown in the table below. (in thousands) June 30, 2020 December 31, 2019 Loan portfolios serviced for: SBA guaranteed loans $ 113,927 $ 103,981 Total $ 113,927 $ 103,981 |
Subordinated Debt (Tables)
Subordinated Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | June 30, 2020 December 31, 2019 (in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs 2025 Note 10,000 (126) 10,000 (138) 2026 Notes 25,000 (777) 25,000 (839) 2029 Notes 37,000 (1,416) 37,000 (1,495) Total $ 72,000 $ (2,319) $ 72,000 $ (2,472) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Nonvested Restricted Stock Shares Activity | The following table summarizes the status of the 2013 Plan awards as of June 30, 2020 , and activity for the six months ended June 30, 2020. Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share Nonvested at December 31, 2019 107,244 $ 29.03 — $ — — $ — Granted 66,808 27.56 16,090 25.58 6 19.41 Vested (48,499) 30.34 (6,808) 26.37 (6) 19.41 Forfeited — — (1,638) 27.56 — — Nonvested at June 30, 2020 125,553 $ 27.74 7,644 $ 24.44 — $ — |
Schedule Of Deferred Stock Option Plan | The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the six months ended June 30, 2020. Deferred Stock Rights Outstanding, beginning of period 84,505 Granted 428 Exercised — Outstanding, end of period 84,933 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019. June 30, 2020 Fair Value Measurements Using (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 66,544 $ — $ 66,544 $ — Municipal securities 90,562 — 90,562 — Agency mortgage-backed securities 278,530 — 278,530 — Private label mortgage-backed securities 101,925 101,925 — Asset-backed securities 4,837 — 4,837 — Corporate securities 46,619 — 46,619 — Total available-for-sale securities 589,017 — 589,017 — Servicing asset 2,522 — — 2,522 Interest rate swap liabilities (34,494) — (34,494) — Loans held-for-sale (mandatory pricing agreements) 2,001 — 2,001 — Forward contracts (17) (17) — — IRLCs 282 — — 282 December 31, 2019 (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 75,872 $ — $ 75,872 $ — Municipal securities 97,652 — 97,652 — Agency mortgage-backed securities 261,440 — 261,440 — Private label mortgage-backed securities 63,613 — 63,613 — Asset-backed securities 4,955 — 4,955 — Corporate securities 37,320 — 37,320 — Total available-for-sale securities 540,852 — 540,852 — Servicing asset 2,481 — — 2,481 Interest rate swap liabilities (37,786) — (37,786) — Loans held-for-sale (mandatory pricing agreements) 56,097 — 56,097 — Forward contracts (153) (153) — — IRLCs 910 — — 910 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and six months ended June 30, 2020 and 2019. Three Months Ended (in thousands) Servicing Asset Interest Rate Lock Balance, April 1, 2020 $ 2,415 $ 2,064 Total realized gains (losses) Additions 197 — Change in fair value (90) (1,782) Balance, June 30, 2020 2,522 282 Balance as of April 1, 2019 $ — $ 781 Total realized gains Change in fair value — 428 Balance, June 30, 2019 $ — $ 1,209 (in thousands) Six Months Ended Servicing Asset Interest Rate Lock Commitments Balance January 1, 2020 $ 2,481 $ 910 Total realized gains (losses) Additions 310 — Change in fair value (269) (628) Balance, June 30, 2020 $ 2,522 282 Balance as of January 1, 2019 $ — $ 389 Total realized gains Change in fair value — 820 Balance, June 30, 2019 $ — $ 1,209 |
Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at December 31, 2019. The Company did not have any measurements on a nonrecurring basis at June 30, 2020. December 31, 2019 (in thousands) Fair Value Measurements Using Fair Quoted Prices Significant Significant Impaired loans $ 3,019 $ — $ — $ 3,019 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. (dollars in thousands) Fair Value at Valuation Significant Unobservable Range Weighted-Average Range IRLCs $ 282 Discounted cash flow Loan closing rates 63% - 100% 73% Servicing asset 2,522 Discounted cash flow Prepayment speeds 0% - 25% 13.0% Expected weighted-average loan life 3.6 - 5.6 years 4.8 years (dollars in thousands) Fair Value at Valuation Significant Unobservable Range Weighted-Average Range Impaired loans $ 3,019 Fair value of collateral Discount for type of property and current market conditions 10% 10% IRLCs 910 Discounted cash flow Loan closing rates 50% - 100% 84% Servicing asset 2,481 Discounted cash flow Prepayment speeds 0% - 25% 13.5% Expected weighted-average loan life 3.2 - 5.7 years 5.0 years |
Fair Value, by Balance Sheet Grouping | The following tables present the carrying value and estimated fair value of all financial assets and liabilities at June 30, 2020 and December 31, 2019. June 30, 2020 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 498,619 $ 498,619 $ 498,619 $ — $ — Securities held-to-maturity 68,295 69,152 — 69,152 — Loans held-for-sale (best efforts pricing agreements) 23,493 23,493 — 23,493 — Net loans 2,949,209 3,006,369 — — 3,006,369 Accrued interest receivable 21,093 21,093 21,093 — — Federal Home Loan Bank of Indianapolis stock 25,650 25,650 — 25,650 — Deposits 3,380,789 3,428,960 1,520,495 — 1,908,465 Advances from Federal Home Loan Bank 514,913 548,015 — 548,015 — Subordinated debt 69,681 65,349 55,154 10,195 — Accrued interest payable 1,073 1,073 1,073 — — December 31, 2019 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 327,361 $ 327,361 $ 327,361 $ — $ — Securities held-to-maturity 61,878 62,560 — 62,560 — Net loans 2,941,707 2,876,688 — — 2,876,688 Accrued interest receivable 18,607 18,607 18,607 — — Federal Home Loan Bank of Indianapolis stock 25,650 25,650 — 25,650 — Deposits 3,153,963 3,232,065 1,002,141 — 2,229,924 Advances from Federal Home Loan Bank 514,910 520,950 — 520,950 — Subordinated debt 69,528 75,206 64,996 10,210 — Accrued interest payable 3,767 3,767 3,767 — — |
Mortgage Banking Activities (Ta
Mortgage Banking Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Mortgage Banking [Abstract] | |
Schedule of Participating Mortgage Loans | The following table presents the components of income from mortgage banking activities for the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Gain on loans sold $ 4,164 $ 1,825 $ 8,507 $ 3,298 (Loss) gain resulting from the change in fair value of loans held-for-sale (1,255) 534 (939) 352 Gain (loss) resulting from the change in fair value of derivatives 499 305 (492) 631 Net revenue from mortgage banking activities $ 3,408 $ 2,664 $ 7,076 $ 4,281 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments, Cumulative Basis Adjustments | The following table presents amounts that were recorded on the condensed consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of June 30, 2020 and December 31, 2019. (in thousands) Carrying amount of the hedged asset Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets Line item in the condensed consolidated balance sheets in which the hedged item is included June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Loans $ — $ 474,957 $ — $ 21,440 Securities available-for-sale (1) 145,872 151,538 7,095 2,802 (1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At both June 30, 2020 and December 31, 2019, the amounts of the designated hedged items were $88.2 million. |
Schedule Of Derivative Instruments Of Fixed Rate Receivables | The following tables present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company’s asset/liability management activities at June 30, 2020 and December 31, 2019, identified by the underlying interest rate-sensitive instruments. (dollars in thousands) June 30, 2020 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Instruments Associated With Value (years) Fair Value Receive Pay Securities available-for-sale 88,200 3.6 (7,097) 3-month LIBOR 2.54 % Total at June 30, 2020 $ 88,200 3.6 $ (7,097) 3-month LIBOR 2.54 % (dollars in thousands) December 31, 2019 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Instruments Associated With Value (years) Fair Value Receive Pay Loans $ 427,446 5.5 $ (21,551) 3-month LIBOR 2.86 % Securities available-for-sale 88,200 4.1 (2,806) 3-month LIBOR 2.54 % Total at December 31, 2019 $ 515,646 5.3 $ (24,357) 3-month LIBOR 2.80 % |
Schedule Of Derivative Instruments Of Variable Rate Liabilities | The following tables present a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company’s asset/liability management activities at June 30, 2020 and December 31, 2019. (dollars in thousands) June 30, 2020 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 6.6 $ (17,993) 3-month LIBOR 2.88 % Interest rate swaps 100,000 3.5 (9,404) 1-month LIBOR 2.88 % (dollars in thousands) December 31, 2019 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 7.1 $ (8,390) 3-month LIBOR 2.88 % Interest rate swaps 100,000 4.0 (5,040) 1-month LIBOR 2.88 % |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the notional amount and fair value of interest rate swaps, IRLCs and forward contracts utilized by the Company at June 30, 2020 and December 31, 2019. June 30, 2020 December 31, 2019 (in thousands) Notional Fair Notional Fair Asset Derivatives Derivatives not designated as hedging instruments IRLCs 14,527 282 56,256 910 Total contracts $ 14,527 $ 282 $ 56,256 $ 910 Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with loans $ — $ — $ 427,446 $ (21,551) Interest rate swaps associated with securities available-for-sale 88,200 (7,097) 88,200 (2,806) Interest rate swaps associated with liabilities 210,000 (27,397) 210,000 (13,429) Derivatives not designated as hedging instruments Forward contracts 11,710 (17) 115,000 (153) Total contracts $ 309,910 $ (34,511) $ 840,646 $ (37,939) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three and six months ended June 30, 2020 and 2019. Amount of Loss Recognized in Other Comprehensive Loss in The Three Months Ended Amount of Loss Recognized in Other Comprehensive Loss in the Six Months Ended (in thousands) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Interest rate swap agreements $ (509) $ (5,892) $ (13,967) $ (9,464) |
Schedule of Derivative Instruments in Statements of Income Fair Value | The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and six months ended June 30, 2020 and 2019. Amount of Gain / (Loss) Recognized in the Three Months Ended Amount of Gain / (Loss) Recognized in the Six Months Ended (in thousands) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Asset Derivatives Derivatives not designated as hedging instruments IRLCs $ (1,781) $ 428 $ (628) $ 820 Liability Derivatives Derivatives not designated as hedging instruments Forward contracts $ 2,281 $ (122) $ 136 $ (189) |
Schedule Of Effects Of Interest Rate Swap Agreements On Statements Of Income | The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of income during the three and six months ended June 30, 2020 and 2019. (in thousands) Line item in the condensed consolidated statements of income Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Interest income Loans $ (1,221) $ (285) $ (2,445) $ (264) Securities - taxable (159) (10) (250) (17) Securities - non-taxable (164) 27 (230) 72 Total interest income (1,544) (268) (2,925) (209) Interest expense Deposits 593 104 899 194 Other borrowed funds 589 79 911 113 Total interest expense 1,182 183 1,810 307 Net interest income $ (2,726) $ (451) $ (4,735) $ (516) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and six months ended June 30, 2020 and June 30, 2019 were as follows: (in thousands) Details About Accumulated Other Comprehensive Loss Components Affected Line Item in the Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Realized gains (losses) on securities available-for-sale Gain (loss) realized in earnings $ — $ 41 $ (458) $ (458) Gain (loss) on sale of securities Total reclassified amount before tax — 41 (458) (458) Income Before Income Taxes Tax expense (benefit) — 11 (124) (124) Income Tax Provision (Benefit) Total reclassifications out of accumulated other comprehensive loss $ — $ 30 $ (334) $ (334) Net Income The components of accumulated other comprehensive loss, included in stockholders' equity, for the six months ended June 30, 2020 and 2019, respectively, are presented in the table below. (in thousands) Available-For-Sale Securities Cash Flow Hedges Total Balance, January 1, 2020 $ (4,388) $ (9,803) $ (14,191) Net change in unrealized gain (loss) 4,801 (13,967) (9,166) Reclassification of gain realized and included in earnings (41) — (41) Accumulated other comprehensive income (loss) before income tax 372 (23,770) (23,398) Income tax provision (benefit) 1,760 (4,020) (2,260) Balance, June 30, 2020 $ (1,388) $ (19,750) $ (21,138) Balance, January 1, 2019 $ (13,360) $ (3,181) $ (16,541) Net change in unrealized gain (loss) 10,577 (9,464) 1,113 Reclassification of net loss realized and included in earnings 458 — 458 Accumulated other comprehensive loss before income tax (2,325) (12,645) (14,970) Income tax provision (benefit) 3,163 (2,555) 608 Balance, June 30, 2019 $ (5,488) $ (10,090) $ (15,578) The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended June 30, 2020 and 2019, respectively, are presented in the table below. (in thousands) Available-For-Sale Securities Cash Flow Hedges Total Balance, April 1, 2020 $ (239) $ (19,627) $ (19,866) Net change in unrealized loss (1,498) (509) (2,007) Accumulated other comprehensive loss before income tax (1,737) (20,136) (21,873) Income tax benefit (349) (386) (735) Balance, June 30, 2020 $ (1,388) $ (19,750) $ (21,138) Balance, April 1, 2019 $ (8,380) $ (5,788) $ (14,168) Net change in unrealized gain (loss) 3,667 (5,892) (2,225) Reclassification of net loss realized and included in earnings 458 — 458 Accumulated other comprehensive loss before income tax (4,255) (11,680) (15,935) Income tax provision (benefit) 1,233 (1,590) (357) Balance, June 30, 2019 $ (5,488) $ (10,090) $ (15,578) |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2020subsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries | 3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings per share | ||||
Net income | $ 3,932 | $ 6,121 | $ 9,951 | $ 11,817 |
Weighted-average common shares (in shares) | 9,768,227 | 10,148,285 | 9,798,528 | 10,182,770 |
Basic earnings per common share ( in dollars per share) | $ 0.40 | $ 0.60 | $ 1.02 | $ 1.16 |
Diluted earnings per share | ||||
Net income | $ 3,932 | $ 6,121 | $ 9,951 | $ 11,817 |
Weighted-average common shares (in shares) | 9,768,227 | 10,148,285 | 9,798,528 | 10,182,770 |
Dilutive effect of equity compensation (in shares) | 0 | 0 | 3,899 | 4,063 |
Weighted-average common and incremental shares (in shares) | 9,768,227 | 10,148,285 | 9,802,427 | 10,186,833 |
Diluted earnings per common share (in dollars per share) | $ 0.40 | $ 0.60 | $ 1.02 | $ 1.16 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 79,893 | 29,606 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale Securities [Abstract] | ||
Amortized cost | $ 590,046 | $ 546,640 |
Gross Unrealized Gains | 11,509 | 3,426 |
Gross Unrealized Losses | (12,538) | (9,214) |
Fair Value | 589,017 | 540,852 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 68,295 | 61,878 |
Held-to-maturity securities, Gross Unrealized Gains | 1,439 | 814 |
Held-to-maturity securities, Gross Unrealized Losses | (582) | (132) |
Held-to-maturity, at fair value | 69,152 | 62,560 |
U.S. Government-sponsored agencies | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 68,203 | 77,715 |
Gross Unrealized Gains | 384 | 99 |
Gross Unrealized Losses | (2,043) | (1,942) |
Fair Value | 66,544 | 75,872 |
Municipal securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 91,906 | 97,447 |
Gross Unrealized Gains | 3,140 | 1,706 |
Gross Unrealized Losses | (4,484) | (1,501) |
Fair Value | 90,562 | 97,652 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 14,603 | 10,142 |
Held-to-maturity securities, Gross Unrealized Gains | 671 | 226 |
Held-to-maturity securities, Gross Unrealized Losses | 0 | 0 |
Held-to-maturity, at fair value | 15,274 | 10,368 |
Agency mortgage-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 275,433 | 264,142 |
Gross Unrealized Gains | 6,632 | 1,304 |
Gross Unrealized Losses | (3,535) | (4,006) |
Fair Value | 278,530 | 261,440 |
Private label mortgage-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 101,110 | 63,704 |
Gross Unrealized Gains | 1,044 | 97 |
Gross Unrealized Losses | (229) | (188) |
Fair Value | 101,925 | 63,613 |
Asset-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 5,000 | 5,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (163) | (45) |
Fair Value | 4,837 | 4,955 |
Corporate securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 48,394 | 38,632 |
Gross Unrealized Gains | 309 | 220 |
Gross Unrealized Losses | (2,084) | (1,532) |
Fair Value | 46,619 | 37,320 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 53,692 | 51,736 |
Held-to-maturity securities, Gross Unrealized Gains | 768 | 588 |
Held-to-maturity securities, Gross Unrealized Losses | (582) | (132) |
Held-to-maturity, at fair value | $ 53,878 | $ 52,192 |
Securities (Details Textual)
Securities (Details Textual) | Mar. 01, 2020USD ($)security | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Investments, Debt and Equity Securities [Abstract] | |||||||
Number of available for sale securities transferred to held for sale | security | 10 | ||||||
Available for sale securities transferred to held to maturity | $ 4,500,000 | ||||||
Unrealized holding gain, net of tax, retained in accumulated other comprehensive income | $ 100,000 | ||||||
Available-for-sale securities, gross realized gain (loss) | $ 0 | $ (458,000) | $ 41,000 | $ (458,000) | |||
Continuous unrealized loss position, fair value | $ 237,500,000 | $ 237,500,000 | $ 317,500,000 | ||||
Continuous unrealized loss position, fair value (as a percent) | 53.00% | 36.00% |
Securities - Carrying Value (De
Securities - Carrying Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Within one year | $ 15 | |
One to five years | 30,141 | |
Five to ten years | 82,174 | |
After ten years | 96,173 | |
Amortized Cost | 208,503 | |
Amortized cost | 590,046 | $ 546,640 |
Held-to-maturity securities, One to five years | 1,505 | |
Held-to-maturity securities, Five to ten years | 54,272 | |
Held-to-maturity securities, After ten years | 12,518 | |
Held-to-maturity securities, Amortized Cost | 68,295 | |
Fair Value | ||
Within one year | 15 | |
One to five years | 25,364 | |
Five to ten years | 79,991 | |
After ten years | 98,355 | |
Fair Value | 203,725 | |
Fair Value | 589,017 | 540,852 |
Held-to-maturity securities, One to five years | 1,557 | |
Held-to-maturity securities, Five to ten years | 54,642 | |
Held-to-maturity securities, After ten years | 12,953 | |
Held-to-maturity securities, Fair Value | 69,152 | |
Agency mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost | 275,433 | 264,142 |
Fair Value | ||
Fair Value | 278,530 | 261,440 |
Private label mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost | 101,110 | 63,704 |
Fair Value | ||
Fair Value | 101,925 | 63,613 |
Asset-backed securities | ||
Amortized Cost | ||
Amortized cost | 5,000 | 5,000 |
Fair Value | ||
Fair Value | $ 4,837 | $ 4,955 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Less Than 12 Months, Fair Value | $ 119,074 | $ 127,335 |
Less Than 12 Months, Unrealized Losses | (5,172) | (2,571) |
12 Months or Longer, Fair Value | 94,873 | 176,218 |
12 Months or Longer, Unrealized Losses | (7,366) | (6,643) |
Total, Fair Value | 213,947 | 303,553 |
Total, Unrealized Losses | (12,538) | (9,214) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 23,527 | 13,977 |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (582) | (132) |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Held-to-maturity securities, Total, Fair Value | 23,527 | 13,977 |
Held-to-maturity securities, Total, Unrealized Losses | (582) | (132) |
U.S. Government-sponsored agencies | ||
Less Than 12 Months, Fair Value | 1,195 | 4,820 |
Less Than 12 Months, Unrealized Losses | (15) | (61) |
12 Months or Longer, Fair Value | 56,494 | 62,182 |
12 Months or Longer, Unrealized Losses | (2,028) | (1,881) |
Total, Fair Value | 57,689 | 67,002 |
Total, Unrealized Losses | (2,043) | (1,942) |
Municipal securities | ||
Less Than 12 Months, Fair Value | 61,167 | 1,279 |
Less Than 12 Months, Unrealized Losses | (4,484) | (1,501) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 61,167 | 1,279 |
Total, Unrealized Losses | (4,484) | (1,501) |
Agency mortgage-backed securities | ||
Less Than 12 Months, Fair Value | 22,419 | 91,159 |
Less Than 12 Months, Unrealized Losses | (391) | (829) |
12 Months or Longer, Fair Value | 10,727 | 83,212 |
12 Months or Longer, Unrealized Losses | (3,144) | (3,177) |
Total, Fair Value | 33,146 | 174,371 |
Total, Unrealized Losses | (3,535) | (4,006) |
Private label mortgage-backed securities | ||
Less Than 12 Months, Fair Value | 21,781 | 30,077 |
Less Than 12 Months, Unrealized Losses | (160) | (180) |
12 Months or Longer, Fair Value | 2,777 | 2,884 |
12 Months or Longer, Unrealized Losses | (69) | (8) |
Total, Fair Value | 24,558 | 32,961 |
Total, Unrealized Losses | (229) | (188) |
Asset-backed securities | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 4,837 | 4,955 |
12 Months or Longer, Unrealized Losses | (163) | (45) |
Total, Fair Value | 4,837 | 4,955 |
Total, Unrealized Losses | (163) | (45) |
Corporate securities | ||
Less Than 12 Months, Fair Value | 12,512 | 0 |
Less Than 12 Months, Unrealized Losses | (122) | 0 |
12 Months or Longer, Fair Value | 20,038 | 22,985 |
12 Months or Longer, Unrealized Losses | (1,962) | (1,532) |
Total, Fair Value | 32,550 | 22,985 |
Total, Unrealized Losses | (2,084) | (1,532) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 23,527 | 13,977 |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (582) | (132) |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | 0 | 0 |
Held-to-maturity securities, Total, Fair Value | 23,527 | 13,977 |
Held-to-maturity securities, Total, Unrealized Losses | $ (582) | $ (132) |
Securities Securities - Amounts
Securities Securities - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gain (loss) realized in earnings | $ 0 | $ (458,000) | $ 41,000 | $ (458,000) |
Total reclassified amount before tax | 0 | (458,000) | 41,000 | (458,000) |
Tax expense (benefit) | 0 | (124,000) | 11,000 | (124,000) |
Total reclassifications out of accumulated other comprehensive loss | $ 0 | $ (334,000) | $ 30,000 | $ (334,000) |
Loans - Categories (Details)
Loans - Categories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | $ 2,909,342 | $ 2,919,981 | ||||
Net deferred loan origination costs and premiums and discounts on purchased loans and other | 64,332 | 43,566 | ||||
Total loans | 2,973,674 | 2,963,547 | ||||
Allowance for loan losses | (24,465) | $ (22,857) | (21,840) | $ (19,976) | $ (18,841) | $ (17,896) |
Net loans | 2,949,209 | 2,941,707 | ||||
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (1,477) | (1,670) | (1,521) | (1,795) | (1,351) | (1,384) |
Owner-occupied commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (846) | (645) | (561) | (624) | (847) | (891) |
Investor commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (130) | (128) | (109) | (169) | (103) | (61) |
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (721) | (460) | (380) | (302) | (267) | (251) |
Single tenant lease financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (11,318) | (10,755) | (11,175) | (9,661) | (9,368) | (8,827) |
Public finance | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (1,542) | (1,483) | (1,580) | (1,763) | (1,650) | (1,670) |
Healthcare finance | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (4,762) | (4,318) | (3,247) | (2,293) | (1,731) | (1,264) |
Small business lending | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (251) | (265) | (54) | (129) | (93) | (95) |
Residential mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (539) | (500) | (657) | (662) | (1,044) | (1,079) |
Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (51) | (53) | (46) | (48) | (49) | (53) |
Other consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (2,828) | $ (2,580) | (2,510) | $ (2,530) | $ (2,338) | $ (2,321) |
Commercial Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 2,386,342 | 2,286,517 | ||||
Commercial Portfolio Segment | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 81,687 | 96,420 | ||||
Commercial Portfolio Segment | Owner-occupied commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 86,897 | 86,726 | ||||
Loans reclassified | 13,300 | |||||
Commercial Portfolio Segment | Investor commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 13,286 | 12,567 | ||||
Commercial Portfolio Segment | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 77,591 | 60,274 | ||||
Commercial Portfolio Segment | Single tenant lease financing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 980,292 | 995,879 | ||||
Commercial Portfolio Segment | Public finance | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 647,107 | 687,094 | ||||
Commercial Portfolio Segment | Healthcare finance | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 380,956 | 300,612 | ||||
Commercial Portfolio Segment | Small business lending | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 118,526 | 46,945 | ||||
Consumer Portfolio | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 523,000 | 633,464 | ||||
Consumer Portfolio | Residential mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 208,728 | 313,849 | ||||
Consumer Portfolio | Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 22,640 | 24,306 | ||||
Consumer Portfolio | Other consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | 291,632 | 295,309 | ||||
Interest rate swaps | Commercial Portfolio Segment | Public finance | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total commercial loans | $ 46,000 | $ 21,400 |
Loans - Change in the Balances
Loans - Change in the Balances of the ALLL (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for loan losses: | ||||
Balance, beginning of period | $ 22,857 | $ 18,841 | $ 21,840 | $ 17,896 |
Provision (credit) charged to expense | 2,491 | 1,389 | 3,952 | 2,674 |
Losses charged off | (1,016) | (337) | (1,514) | (766) |
Recoveries | 133 | 83 | 187 | 172 |
Balance, end of period | 24,465 | 19,976 | 24,465 | 19,976 |
Commercial and industrial | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 1,670 | 1,351 | 1,521 | 1,384 |
Provision (credit) charged to expense | (141) | 444 | 205 | 523 |
Losses charged off | (57) | 0 | (254) | (112) |
Recoveries | 5 | 0 | 5 | 0 |
Balance, end of period | 1,477 | 1,795 | 1,477 | 1,795 |
Owner-occupied commercial real estate | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 645 | 847 | 561 | 891 |
Provision (credit) charged to expense | 201 | (223) | 285 | (267) |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 846 | 624 | 846 | 624 |
Investor commercial real estate | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 128 | 103 | 109 | 61 |
Provision (credit) charged to expense | 2 | 66 | 21 | 108 |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 130 | 169 | 130 | 169 |
Construction | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 460 | 267 | 380 | 251 |
Provision (credit) charged to expense | 261 | 35 | 341 | 51 |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 721 | 302 | 721 | 302 |
Single tenant lease financing | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 10,755 | 9,368 | 11,175 | 8,827 |
Provision (credit) charged to expense | 563 | 293 | 143 | 834 |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 11,318 | 9,661 | 11,318 | 9,661 |
Public finance | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 1,483 | 1,650 | 1,580 | 1,670 |
Provision (credit) charged to expense | 59 | 113 | (38) | 93 |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 1,542 | 1,763 | 1,542 | 1,763 |
Healthcare finance | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 4,318 | 1,731 | 3,247 | 1,264 |
Provision (credit) charged to expense | 1,187 | 562 | 2,258 | 1,029 |
Losses charged off | (743) | 0 | (743) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 4,762 | 2,293 | 4,762 | 2,293 |
Small business lending | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 265 | 93 | 54 | 95 |
Provision (credit) charged to expense | (20) | 36 | 183 | 34 |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 6 | 0 | 14 | 0 |
Balance, end of period | 251 | 129 | 251 | 129 |
Residential mortgage | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 500 | 1,044 | 657 | 1,079 |
Provision (credit) charged to expense | 36 | (383) | (107) | (419) |
Losses charged off | 0 | 0 | (15) | 0 |
Recoveries | 3 | 1 | 4 | 2 |
Balance, end of period | 539 | 662 | 539 | 662 |
Home equity | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 53 | 49 | 46 | 53 |
Provision (credit) charged to expense | (4) | (5) | 0 | (11) |
Losses charged off | 0 | 0 | 0 | 0 |
Recoveries | 2 | 4 | 5 | 6 |
Balance, end of period | 51 | 48 | 51 | 48 |
Other consumer | ||||
Allowance for loan losses: | ||||
Balance, beginning of period | 2,580 | 2,338 | 2,510 | 2,321 |
Provision (credit) charged to expense | 347 | 451 | 661 | 699 |
Losses charged off | (216) | (337) | (502) | (654) |
Recoveries | 117 | 78 | 159 | 164 |
Balance, end of period | $ 2,828 | $ 2,530 | $ 2,828 | $ 2,530 |
Loans - Recorded Investments in
Loans - Recorded Investments in Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Loans: | ||||||
Ending balance: collectively evaluated for impairment | $ 2,898,401 | $ 2,905,560 | ||||
Ending balance: individually evaluated for impairment | 10,941 | 14,421 | ||||
Total Loans Receivable | 2,909,342 | 2,919,981 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 22,696 | 20,071 | ||||
Ending balance: individually evaluated for impairment | 1,769 | 1,769 | ||||
Ending balance | 24,465 | $ 22,857 | 21,840 | $ 19,976 | $ 18,841 | $ 17,896 |
Commercial and industrial | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 80,871 | 93,520 | ||||
Ending balance: individually evaluated for impairment | 816 | 2,900 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 1,368 | 1,412 | ||||
Ending balance: individually evaluated for impairment | 109 | 109 | ||||
Ending balance | 1,477 | 1,670 | 1,521 | 1,795 | 1,351 | 1,384 |
Owner-occupied commercial real estate | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 82,974 | 81,063 | ||||
Ending balance: individually evaluated for impairment | 3,922 | 5,663 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 846 | 561 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 846 | 645 | 561 | 624 | 847 | 891 |
Investor commercial real estate | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 13,286 | 12,567 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 130 | 109 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 130 | 128 | 109 | 169 | 103 | 61 |
Construction | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 77,591 | 60,274 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 721 | 380 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 721 | 460 | 380 | 302 | 267 | 251 |
Single tenant lease financing | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 975,612 | 991,199 | ||||
Ending balance: individually evaluated for impairment | 4,680 | 4,680 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 9,658 | 9,515 | ||||
Ending balance: individually evaluated for impairment | 1,660 | 1,660 | ||||
Ending balance | 11,318 | 10,755 | 11,175 | 9,661 | 9,368 | 8,827 |
Public finance | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 647,107 | 687,094 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 1,542 | 1,580 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 1,542 | 1,483 | 1,580 | 1,763 | 1,650 | 1,670 |
Healthcare finance | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 380,956 | 300,612 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 4,762 | 3,247 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 4,762 | 4,318 | 3,247 | 2,293 | 1,731 | 1,264 |
Small business lending | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 118,526 | 46,945 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 251 | 54 | ||||
Ending balance | 251 | 265 | 54 | 129 | 93 | 95 |
Residential mortgage | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 207,320 | 312,714 | ||||
Ending balance: individually evaluated for impairment | 1,408 | 1,135 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 539 | 657 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 539 | 500 | 657 | 662 | 1,044 | 1,079 |
Home equity | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 22,640 | 24,306 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 51 | 46 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 51 | 53 | 46 | 48 | 49 | 53 |
Other consumer | ||||||
Loans: | ||||||
Ending balance: collectively evaluated for impairment | 291,518 | 295,266 | ||||
Ending balance: individually evaluated for impairment | 115 | 43 | ||||
Allowance for loan losses: | ||||||
Ending balance: collectively evaluated for impairment | 2,828 | 2,510 | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||||
Ending balance | 2,828 | $ 2,580 | 2,510 | $ 2,530 | $ 2,338 | $ 2,321 |
Commercial Portfolio Segment | ||||||
Loans: | ||||||
Total Loans Receivable | 2,386,342 | 2,286,517 | ||||
Commercial Portfolio Segment | Commercial and industrial | ||||||
Loans: | ||||||
Total Loans Receivable | 81,687 | 96,420 | ||||
Commercial Portfolio Segment | Owner-occupied commercial real estate | ||||||
Loans: | ||||||
Total Loans Receivable | 86,897 | 86,726 | ||||
Commercial Portfolio Segment | Investor commercial real estate | ||||||
Loans: | ||||||
Total Loans Receivable | 13,286 | 12,567 | ||||
Commercial Portfolio Segment | Construction | ||||||
Loans: | ||||||
Total Loans Receivable | 77,591 | 60,274 | ||||
Commercial Portfolio Segment | Single tenant lease financing | ||||||
Loans: | ||||||
Total Loans Receivable | 980,292 | 995,879 | ||||
Commercial Portfolio Segment | Public finance | ||||||
Loans: | ||||||
Total Loans Receivable | 647,107 | 687,094 | ||||
Commercial Portfolio Segment | Healthcare finance | ||||||
Loans: | ||||||
Total Loans Receivable | 380,956 | 300,612 | ||||
Commercial Portfolio Segment | Small business lending | ||||||
Loans: | ||||||
Total Loans Receivable | $ 118,526 | $ 46,945 |
Loans - Nonaccrual Loans (Detai
Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 2,909,342 | $ 2,919,981 |
Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,386,342 | 2,286,517 |
Commercial Portfolio Segment | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,361,027 | 2,260,087 |
Commercial Portfolio Segment | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 15,937 | 15,186 |
Commercial Portfolio Segment | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 9,378 | 11,244 |
Commercial Portfolio Segment | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 81,687 | 96,420 |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 77,447 | 89,818 |
Commercial Portfolio Segment | Commercial and industrial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,465 | 3,973 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 775 | 2,629 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 86,897 | 86,726 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 80,389 | 79,329 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,585 | 3,462 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,923 | 3,935 |
Commercial Portfolio Segment | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 13,286 | 12,567 |
Commercial Portfolio Segment | Investor commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 13,286 | 12,567 |
Commercial Portfolio Segment | Investor commercial real estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Investor commercial real estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 77,591 | 60,274 |
Commercial Portfolio Segment | Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 77,591 | 60,274 |
Commercial Portfolio Segment | Construction | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 980,292 | 995,879 |
Commercial Portfolio Segment | Single tenant lease financing | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 966,782 | 983,448 |
Commercial Portfolio Segment | Single tenant lease financing | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 8,830 | 7,751 |
Commercial Portfolio Segment | Single tenant lease financing | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 4,680 | 4,680 |
Commercial Portfolio Segment | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 647,107 | 687,094 |
Commercial Portfolio Segment | Public finance | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 647,107 | 687,094 |
Commercial Portfolio Segment | Public finance | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Public finance | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 380,956 | 300,612 |
Commercial Portfolio Segment | Healthcare finance | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 379,899 | 300,612 |
Commercial Portfolio Segment | Healthcare finance | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,057 | 0 |
Commercial Portfolio Segment | Healthcare finance | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 118,526 | 46,945 |
Commercial Portfolio Segment | Small business lending | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 118,526 | 46,945 |
Commercial Portfolio Segment | Small business lending | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Small business lending | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Loans Loans - Internal Credit A
Loans Loans - Internal Credit Assessment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 2,909,342 | $ 2,919,981 |
Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 8,195 | 6,164 |
Consumer Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 523,000 | 633,464 |
Consumer Portfolio | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 521,850 | 632,670 |
Consumer Portfolio | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,150 | 794 |
Consumer Portfolio | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 208,728 | 313,849 |
Consumer Portfolio | Residential mortgage | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 207,686 | 313,088 |
Consumer Portfolio | Residential mortgage | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,042 | 761 |
Consumer Portfolio | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 22,640 | 24,306 |
Consumer Portfolio | Home equity | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 22,640 | 24,306 |
Consumer Portfolio | Home equity | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer Portfolio | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 291,632 | 295,309 |
Consumer Portfolio | Other consumer | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 291,524 | 295,276 |
Consumer Portfolio | Other consumer | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 108 | $ 33 |
Loans - Loan Portfolio Aging (D
Loans - Loan Portfolio Aging (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 7,480 | $ 6,955 |
Current | 2,901,862 | 2,913,026 |
Total Loans Receivable | 2,909,342 | 2,919,981 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 416 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 416 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 160 | 309 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 56 | 4,883 |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 7,264 | 1,763 |
Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,386,342 | 2,286,517 |
Commercial Portfolio Segment | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 292 | 233 |
Current | 81,395 | 96,187 |
Total Loans Receivable | 81,687 | 96,420 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,066 | 464 |
Current | 84,831 | 86,262 |
Total Loans Receivable | 86,897 | 86,726 |
Commercial Portfolio Segment | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 13,286 | 12,567 |
Total Loans Receivable | 13,286 | 12,567 |
Commercial Portfolio Segment | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 77,591 | 60,274 |
Total Loans Receivable | 77,591 | 60,274 |
Commercial Portfolio Segment | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,680 | 4,680 |
Current | 975,612 | 991,199 |
Total Loans Receivable | 980,292 | 995,879 |
Commercial Portfolio Segment | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 647,107 | 687,094 |
Total Loans Receivable | 647,107 | 687,094 |
Commercial Portfolio Segment | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 380,956 | 300,612 |
Total Loans Receivable | 380,956 | 300,612 |
Commercial Portfolio Segment | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 54 |
Current | 118,526 | 46,891 |
Total Loans Receivable | 118,526 | 46,945 |
Commercial Portfolio Segment | 30-59 Days Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 80 | 15 |
Commercial Portfolio Segment | 30-59 Days Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 54 |
Commercial Portfolio Segment | 60-89 Days Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 96 |
Commercial Portfolio Segment | 60-89 Days Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 4,680 |
Commercial Portfolio Segment | 60-89 Days Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | |
Commercial Portfolio Segment | 90 Days or More Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 212 | 122 |
Commercial Portfolio Segment | 90 Days or More Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,066 | 464 |
Commercial Portfolio Segment | 90 Days or More Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,680 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 523,000 | 633,464 |
Consumer Portfolio | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 281 | 1,177 |
Current | 208,447 | 312,672 |
Total Loans Receivable | 208,728 | 313,849 |
Consumer Portfolio | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 22,640 | 24,306 |
Total Loans Receivable | 22,640 | 24,306 |
Consumer Portfolio | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 161 | 347 |
Current | 291,471 | 294,962 |
Total Loans Receivable | 291,632 | 295,309 |
Consumer Portfolio | 30-59 Days Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio | 30-59 Days Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio | 30-59 Days Past Due | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 80 | 240 |
Consumer Portfolio | 60-89 Days Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio | 60-89 Days Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio | 60-89 Days Past Due | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 56 | 107 |
Consumer Portfolio | 90 Days or More Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 281 | 1,177 |
Consumer Portfolio | 90 Days or More Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio | 90 Days or More Past Due | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 25 | 0 |
Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 8,195 | 6,164 |
Nonaccrual | Commercial Portfolio Segment | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 299 | 226 |
Nonaccrual | Commercial Portfolio Segment | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,066 | 464 |
Nonaccrual | Commercial Portfolio Segment | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 4,680 | 4,680 |
Nonaccrual | Commercial Portfolio Segment | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Nonaccrual | Consumer Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,150 | 794 |
Nonaccrual | Consumer Portfolio | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,042 | 761 |
Nonaccrual | Consumer Portfolio | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Nonaccrual | Consumer Portfolio | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 108 | $ 33 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Recorded Balance | $ 6,058,000 | $ 6,058,000 | $ 9,534,000 | ||
Loans without a specific valuation allowance - Unpaid Principal Balance | 6,310,000 | 6,310,000 | 9,675,000 | ||
Loans without a specific valuation allowance | 0 | 0 | 0 | ||
Impaired loans | 4,883,000 | 4,883,000 | 4,887,000 | ||
Loans with a specific valuation allowance - Unpaid Principal Balance | 4,920,000 | 4,920,000 | 4,924,000 | ||
Loans with a specific valuation allowance | 1,769,000 | 1,769,000 | 1,769,000 | ||
Impaired Financing Receivable, Recorded Investment | 10,941,000 | 10,941,000 | 14,421,000 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 11,230,000 | 11,230,000 | 14,599,000 | ||
Impaired Financing Receivable, Related Allowance | 1,769,000 | 1,769,000 | 1,769,000 | ||
Loans without a specific valuation allowance - Average Balance | 5,944,000 | $ 10,397,000 | 7,276,000 | $ 9,736,000 | |
Loans without a specific valuation allowance - Interest Income | 47,000 | 152,000 | 67,000 | 260,000 | |
Loans with a specific valuation allowance - Average Balance | 4,884,000 | 353,000 | 4,884,000 | 177,000 | |
Loans with a specific valuation allowance - Interest Income | 0 | 0 | 0 | 0 | |
Impaired Financing Receivable, Average Recorded Investment | 10,828,000 | 10,750,000 | 12,160,000 | 9,913,000 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 47,000 | 152,000 | 67,000 | 260,000 | |
Other real estate owned | $ 2,065,000 | $ 2,065,000 | 2,065,000 | ||
Mortgage loans in process of foreclosure, number of loans | loan | 1 | 1 | |||
Mortgage loans in process of foreclosure, amount | $ 100,000 | $ 100,000 | 0 | ||
Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Recorded Balance | 613,000 | 613,000 | 2,693,000 | ||
Loans without a specific valuation allowance - Unpaid Principal Balance | 672,000 | 672,000 | 2,694,000 | ||
Loans without a specific valuation allowance | 0 | 0 | 0 | ||
Impaired loans | 203,000 | 203,000 | 207,000 | ||
Loans with a specific valuation allowance - Unpaid Principal Balance | 240,000 | 240,000 | 244,000 | ||
Loans with a specific valuation allowance | 109,000 | 109,000 | 109,000 | ||
Loans without a specific valuation allowance - Average Balance | 594,000 | 4,053,000 | 1,330,000 | 4,376,000 | |
Loans without a specific valuation allowance - Interest Income | 18,000 | 86,000 | 36,000 | 167,000 | |
Loans with a specific valuation allowance - Average Balance | 204,000 | 353,000 | 204,000 | 177,000 | |
Loans with a specific valuation allowance - Interest Income | 0 | $ 0 | 0 | $ 0 | |
Number of contracts classified as TDRs | loan | 4 | 4 | |||
Financing receivable, troubled debt restructuring | $ 2,000,000 | $ 2,000,000 | |||
Owner-occupied commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Recorded Balance | 3,922,000 | 3,922,000 | 5,663,000 | ||
Loans without a specific valuation allowance - Unpaid Principal Balance | 3,925,000 | 3,925,000 | 5,665,000 | ||
Loans without a specific valuation allowance | 0 | 0 | 0 | ||
Loans without a specific valuation allowance - Average Balance | 3,923,000 | 2,723,000 | 4,573,000 | 2,464,000 | |
Loans without a specific valuation allowance - Interest Income | 29,000 | 66,000 | 31,000 | 93,000 | |
Small business lending | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Average Balance | 0 | 0 | |||
Loans without a specific valuation allowance - Interest Income | 0 | 0 | |||
Residential mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Recorded Balance | 1,408,000 | 1,408,000 | 1,135,000 | ||
Loans without a specific valuation allowance - Unpaid Principal Balance | 1,498,000 | 1,498,000 | 1,209,000 | ||
Loans without a specific valuation allowance | 0 | 0 | 0 | ||
Loans without a specific valuation allowance - Average Balance | 1,352,000 | 3,538,000 | 1,313,000 | 2,796,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 0 | 0 | 0 | |
Other real estate owned | $ 0 | $ 0 | 0 | ||
Number of contracts classified as TDRs | loan | 1 | 1 | |||
Financing receivable, troubled debt restructuring | $ 800,000 | $ 800,000 | |||
Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Average Balance | 0 | 0 | 0 | 21,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 0 | 0 | 0 | |
Other consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans without a specific valuation allowance - Recorded Balance | 115,000 | 115,000 | 43,000 | ||
Loans without a specific valuation allowance - Unpaid Principal Balance | 215,000 | 215,000 | 107,000 | ||
Loans without a specific valuation allowance | 0 | 0 | 0 | ||
Loans without a specific valuation allowance - Average Balance | 75,000 | 83,000 | 60,000 | 79,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 0 | 0 | 0 | |
Single tenant lease financing | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired loans | 4,680,000 | 4,680,000 | 4,680,000 | ||
Loans with a specific valuation allowance - Unpaid Principal Balance | 4,680,000 | 4,680,000 | 4,680,000 | ||
Loans with a specific valuation allowance | 1,660,000 | 1,660,000 | $ 1,660,000 | ||
Loans with a specific valuation allowance - Average Balance | 4,680,000 | 0 | 4,680,000 | 0 | |
Loans with a specific valuation allowance - Interest Income | 0 | $ 0 | 0 | $ 0 | |
COVID-19 | Commercial Portfolio Segment | Healthcare finance | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, troubled debt restructuring | $ 392,400,000 | $ 392,400,000 |
- Summary (Details)
- Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (10,076) | $ (9,165) |
Premises and equipment, net | 23,939 | 14,630 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 2,500 | 2,500 |
Right of use leased asset | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,242 | 1,602 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 19,821 | 10,004 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 10,452 | $ 9,689 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - Land Acquisition - SPF15, Inc. $ in Millions | Oct. 25, 2019USD ($) | Mar. 31, 2019USD ($)parcel | Dec. 31, 2018a |
Property, Plant and Equipment [Line Items] | |||
Area of land | 3.3 | ||
Payments to acquire land | $ | $ 10.2 | ||
Number of additional parcels of land transferred | parcel | 2 | ||
Proceeds from purchase price reimbursement | $ | $ 11.1 | ||
Fishers Town Hall Building Corporation | |||
Property, Plant and Equipment [Line Items] | |||
Area of land | 0.75 | ||
Third Parties | |||
Property, Plant and Equipment [Line Items] | |||
Area of land | 1.65 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)lease | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)lease | Jun. 30, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Number of leases | lease | 3 | 3 | ||
Operating lease cost | $ 251 | $ 187 | $ 466 | $ 368 |
Operating cash flows from operating leases | $ 394 | $ 497 | ||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Remaining term of contract | 2 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Remaining term of contract | 4 years |
Leases - Balance Sheet Amounts
Leases - Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 1,242 | $ 1,602 |
Operating lease liabilities | $ 1,242 | $ 1,602 |
Weighted-average remaining lease term (years) | 2 years 1 month 6 days | 2 years 4 months 24 days |
Weighted-average discount rate | 2.00% | 2.00% |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 691 |
2022 | 290 |
2023 | 232 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total lease payments | 1,213 |
Less: imputed interest | (30) |
Operating lease liabilities | $ 1,183 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,687 | $ 4,687 |
Servicing Asset (Details)
Servicing Asset (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | $ 2,481 | $ 0 |
Additions | 310 | 0 |
Changes in fair value | (269) | 0 |
Ending balance | $ 2,522 | $ 0 |
Servicing Asset - Unpaid princi
Servicing Asset - Unpaid principal balance (Details) - Loan servicing - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | $ 113,927 | $ 103,981 |
SBA guaranteed loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | $ 113,927 | $ 103,981 |
Servicing Asset - Narrative (De
Servicing Asset - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing Assets at Fair Value [Line Items] | ||||
Changes in fair value | $ (269,000) | $ 0 | ||
Loan servicing | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Loan servicing revenue | $ 255,000 | $ 0 | 506,000 | 0 |
Changes in fair value | $ 100,000 | $ 0 | $ (300,000) | $ 0 |
Subordinated Debt (Details Text
Subordinated Debt (Details Textual) - Subordinated Debt - USD ($) | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Oct. 20, 2015 | |
2025 Note | |||
Debt Instrument [Line Items] | |||
Subordinated debenture, principal amount | $ 10,000,000 | ||
Fixed annual interest rate (as a percent) | 6.4375% | ||
2026 Notes | |||
Debt Instrument [Line Items] | |||
Subordinated debenture, principal amount | $ 25,000,000 | ||
Fixed annual interest rate (as a percent) | 6.00% | ||
2029 Notes | |||
Debt Instrument [Line Items] | |||
Subordinated debenture, principal amount | $ 37,000,000 | ||
Fixed annual interest rate (as a percent) | 6.00% | ||
LIBOR | 2026 Notes | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 485.00% | ||
LIBOR | 2029 Notes | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 411.00% |
Subordinated Debt - Schedule of
Subordinated Debt - Schedule of Subordinated Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Costs | $ (2,319) | $ (2,472) |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Principal | 72,000 | 72,000 |
Unamortized Debt Issuance Costs | (2,319) | (2,472) |
Subordinated Debt | 2025 Note | ||
Debt Instrument [Line Items] | ||
Principal | 10,000 | 10,000 |
Unamortized Debt Issuance Costs | (126) | (138) |
Subordinated Debt | 2026 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 25,000 | 25,000 |
Unamortized Debt Issuance Costs | (777) | (839) |
Subordinated Debt | 2029 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 37,000 | 37,000 |
Unamortized Debt Issuance Costs | $ (1,416) | $ (1,495) |
Benefit Plans - Activity (Detai
Benefit Plans - Activity (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Restricted Stock Awards | |
Awards/Units Outstanding (in shares) | |
Balance at beginning of period | shares | 0 |
Granted | shares | 16,090 |
Vested | shares | (6,808) |
Vested | shares | (1,638) |
Balance at end of period | shares | 7,644 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Balance at beginning of period | $ / shares | $ 0 |
Granted | $ / shares | 25.58 |
Vested | $ / shares | 26.37 |
Vested | $ / shares | 27.56 |
Balance at end of period | $ / shares | $ 24.44 |
Deferred Stock Units | |
Awards/Units Outstanding (in shares) | |
Balance at beginning of period | shares | 0 |
Granted | shares | 6 |
Vested | shares | (6) |
Vested | shares | 0 |
Balance at end of period | shares | 0 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Balance at beginning of period | $ / shares | $ 0 |
Granted | $ / shares | 19.41 |
Vested | $ / shares | 19.41 |
Vested | $ / shares | 0 |
Balance at end of period | $ / shares | $ 0 |
Restricted Stock Units | |
Awards/Units Outstanding (in shares) | |
Balance at beginning of period | shares | 107,244 |
Granted | shares | 66,808 |
Vested | shares | (48,499) |
Vested | shares | 0 |
Balance at end of period | shares | 125,553 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Balance at beginning of period | $ / shares | $ 29.03 |
Granted | $ / shares | 27.56 |
Vested | $ / shares | 30.34 |
Vested | $ / shares | 0 |
Balance at end of period | $ / shares | $ 27.74 |
Benefit Plans - Deferred Stock
Benefit Plans - Deferred Stock Rights (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Deferred Stock Rights | |
Outstanding, beginning of period | 84,505 |
Granted | 428 |
Exercised | 0 |
Outstanding, end of period | 84,933 |
Benefit Plans (Details Textual)
Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Allocated share-based compensation expense | $ 517 | $ 383 | $ 1,073 | $ 862 | |
Compensation cost not yet recognized | 3,100 | $ 3,100 | |||
Period for recognition | 1 year 10 months 24 days | ||||
Percentage of annual retainer received in either common stock or deferred stock rights | 100.00% | ||||
Plan 2013 | |||||
Number of shares authorized (in shares) | 750,000 | ||||
Director | |||||
Common stock shares reserved for future grants (in shares) | 180,000 | ||||
Voting and Nonvoting Common Stock | Voting and Nonvoting Common Stock | |||||
Allocated share-based compensation expense | $ 517 | $ 383 | $ 1,073 | $ 862 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||
Loan commitments | $ 267.4 | $ 254.4 |
Capital committed to Small Business Investment Company fund, not contributed | 1.7 | |
Capital Addition Purchase Commitments | ||
Other Commitments [Line Items] | ||
Construction related contract commitment | 65.1 | |
Construction related contract commitment, not yet incurred | $ 51.6 | |
Construction related contract commitment, term | 2 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Total available-for-sale securities | $ 589,017 | $ 540,852 |
Servicing asset | 2,522 | 2,481 |
Loans held-for-sale (mandatory pricing agreements) | 38,813 | 56,097 |
Derivative, fair value | (34,511) | (37,939) |
Loans held-for-sale (mandatory pricing agreements) | ||
Loans held-for-sale (mandatory pricing agreements) | 2,001 | 56,097 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Servicing asset | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held-for-sale (mandatory pricing agreements) | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 589,017 | 540,852 |
Servicing asset | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Loans held-for-sale (mandatory pricing agreements) | ||
Loans held-for-sale (mandatory pricing agreements) | 2,001 | 56,097 |
Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Servicing asset | 2,522 | 2,481 |
Significant Unobservable Inputs (Level 3) | Loans held-for-sale (mandatory pricing agreements) | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
U.S. Government-sponsored agencies | ||
Total available-for-sale securities | 66,544 | 75,872 |
U.S. Government-sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
U.S. Government-sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 66,544 | 75,872 |
U.S. Government-sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Municipal securities | ||
Total available-for-sale securities | 90,562 | 97,652 |
Municipal securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Municipal securities | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 90,562 | 97,652 |
Municipal securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Agency mortgage-backed securities | ||
Total available-for-sale securities | 278,530 | 261,440 |
Agency mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Agency mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 261,440 | |
Agency mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Private label mortgage-backed securities | ||
Total available-for-sale securities | 101,925 | 63,613 |
Private label mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | |
Private label mortgage-backed securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Asset-backed securities | ||
Total available-for-sale securities | 4,837 | 4,955 |
Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 4,837 | 4,955 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Corporate securities | ||
Total available-for-sale securities | 46,619 | 37,320 |
Corporate securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Corporate securities | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 46,619 | 37,320 |
Corporate securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
IRLCs | ||
Derivative, fair value | 282 | 910 |
IRLCs | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative, fair value | 0 | 0 |
IRLCs | Significant Other Observable Inputs (Level 2) | ||
Derivative, fair value | 0 | 0 |
IRLCs | Significant Unobservable Inputs (Level 3) | ||
Derivative, fair value | 282 | 910 |
Interest rate swaps | Interest rate swaps | ||
Derivative liability, fair value | (34,494) | (37,786) |
Interest rate swaps | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | ||
Derivative liability, fair value | 0 | 0 |
Interest rate swaps | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Derivative liability, fair value | (34,494) | (37,786) |
Interest rate swaps | Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||
Derivative liability, fair value | 0 | 0 |
Forward contracts | Forward contracts | ||
Derivative, fair value | (17) | (153) |
Forward contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward contracts | ||
Derivative, fair value | (17) | (153) |
Forward contracts | Significant Other Observable Inputs (Level 2) | Forward contracts | ||
Derivative, fair value | 0 | 0 |
Forward contracts | Significant Unobservable Inputs (Level 3) | Forward contracts | ||
Derivative, fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Rate Lock Commitments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 2,064 | $ 781 | $ 910 | $ 389 |
Additions | 0 | 0 | ||
Included in net income | (1,782) | 428 | (628) | 820 |
Ending balance | 282 | 1,209 | 282 | 1,209 |
Servicing asset | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 2,415 | 0 | 2,481 | 0 |
Additions | 197 | 310 | ||
Included in net income | (90) | 0 | (269) | 0 |
Ending balance | $ 2,522 | $ 0 | $ 2,522 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantative Information About Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Impaired loans | $ 4,883 | $ 4,887 | |
Impaired loans | 2,065 | 2,065 | |
Servicing asset | 2,522 | 2,481 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Servicing asset | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Servicing asset | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Servicing asset | 2,522 | 2,481 | |
Other Real Estate Owned | Significant Unobservable Inputs (Level 3) | |||
Impaired loans | 3,019 | ||
Other securities Valuation Technique | Fair value of collateral | ||
Other securities Unobservable Inputs | Discount for type of property and current market conditions | ||
IRLCs | Significant Unobservable Inputs (Level 3) | |||
IRLCs Fair Value | $ 282 | 910 | |
Other securities Valuation Technique | Discounted cash flow | Discounted cash flow | |
Other securities Unobservable Inputs | Loan closing rates | Loan closing rates | |
Servicing asset | Significant Unobservable Inputs (Level 3) | |||
Other securities Valuation Technique | Discounted cash flow | Discounted cash flow | |
Other securities Unobservable Inputs | Prepayment speeds | Prepayment speeds | |
Servicing asset | $ 2,522 | $ 2,481 | |
Discount for type of property and current market conditions | Fair value of collateral | Impaired Loans | Significant Unobservable Inputs (Level 3) | |||
Other real estate owned, discount rate | 10.00% | ||
Discount for type of property and current market conditions | Fair value of collateral | Impaired Loans | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | |||
Other real estate owned, discount rate | 10.00% | ||
Loan closing rates | Discounted cash flow | IRLCs | Significant Unobservable Inputs (Level 3) | Minimum | |||
IRLC - Loan closing rates | 50.00% | 36.00% | |
Loan closing rates | Discounted cash flow | IRLCs | Significant Unobservable Inputs (Level 3) | Maximum | |||
IRLC - Loan closing rates | 100.00% | 100.00% | |
Loan closing rates | Discounted cash flow | IRLCs | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | |||
IRLC - Loan closing rates | 84.00% | 73.00% | |
Prepayment speeds | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Minimum | |||
Servicing asset, discount rate | 0.00% | 0.00% | |
Prepayment speeds | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Maximum | |||
Servicing asset, discount rate | 25.00% | 25.00% | |
Prepayment speeds | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | |||
Servicing asset, discount rate | 13.50% | 13.00% | |
Expected weighted-average loan life | Significant Unobservable Inputs (Level 3) | Minimum | |||
Loan life term | 3 years 2 months 12 days | 3 years 7 months 6 days | |
Expected weighted-average loan life | Significant Unobservable Inputs (Level 3) | Maximum | |||
Loan life term | 5 years 8 months 12 days | 5 years 3 months 18 days | |
Expected weighted-average loan life | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | |||
Loan life term | 5 years | 4 years 9 months 18 days |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents, Carrying Amount | $ 498,619 | $ 327,361 |
Debt Securities, Held-to-maturity | 68,295 | 61,878 |
Held-to-maturity, at fair value | 69,152 | 62,560 |
Loans held for sale, Fair Value | 38,813 | 56,097 |
Loans receivable | 2,949,209 | 2,941,707 |
Accrued interest receivable, Carrying Amount | 21,093 | 18,607 |
FHLB stock, Carrying Amount | 25,650 | 25,650 |
Deposits, Carrying Amount | 3,380,789 | 3,153,963 |
Accrued interest payable, Carrying Amount | 1,073 | 3,767 |
Reported Value Measurement | ||
Cash and cash equivalents, Carrying Amount | 498,619 | 327,361 |
Debt Securities, Held-to-maturity | 68,295 | 61,878 |
Loans receivable | 2,949,209 | 2,941,707 |
Accrued interest receivable, Carrying Amount | 21,093 | 18,607 |
FHLB stock, Carrying Amount | 25,650 | 25,650 |
Deposits, Carrying Amount | 3,380,789 | 3,153,963 |
Advances from Federal Home Loan Bank, Fair Value | 514,913 | 514,910 |
Subordinated debt, Carrying Value | 1,073 | 69,528 |
Accrued interest payable, Carrying Amount | 69,681 | |
Fair Value | ||
Cash and cash equivalents, Fair Value | 498,619 | 327,361 |
Held-to-maturity, at fair value | 69,152 | 62,560 |
Loans receivable, fair value | 3,006,369 | 2,876,688 |
Accrued interest receivable, Fair Value | 21,093 | 18,607 |
FHLB stock, Fair Value | 25,650 | 25,650 |
Deposits, Fair Value | 3,428,960 | 3,232,065 |
Advances from Federal Home Loan Bank, Fair Value | 548,015 | 520,950 |
Subordinated debt, Fair Value | 65,349 | 75,206 |
Accrued interest payable, Fair Value | 1,073 | 3,767 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Cash and cash equivalents, Fair Value | 498,619 | 327,361 |
Held-to-maturity, at fair value | 0 | 0 |
Loans receivable, fair value | 0 | 0 |
Accrued interest receivable, Fair Value | 21,093 | 18,607 |
FHLB stock, Fair Value | 0 | 0 |
Deposits, Fair Value | 1,520,495 | 1,002,141 |
Advances from Federal Home Loan Bank, Fair Value | 0 | 0 |
Subordinated debt, Fair Value | 55,154 | 64,996 |
Accrued interest payable, Fair Value | 1,073 | 3,767 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Held-to-maturity, at fair value | 69,152 | 62,560 |
Loans receivable, fair value | 0 | 0 |
Accrued interest receivable, Fair Value | 0 | 0 |
FHLB stock, Fair Value | 25,650 | 25,650 |
Deposits, Fair Value | 0 | 0 |
Advances from Federal Home Loan Bank, Fair Value | 548,015 | 520,950 |
Subordinated debt, Fair Value | 10,195 | 10,210 |
Accrued interest payable, Fair Value | 0 | 0 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Held-to-maturity, at fair value | 0 | 0 |
Loans receivable, fair value | 3,006,369 | 2,876,688 |
Accrued interest receivable, Fair Value | 0 | 0 |
FHLB stock, Fair Value | 0 | 0 |
Deposits, Fair Value | 1,908,465 | 2,229,924 |
Advances from Federal Home Loan Bank, Fair Value | 0 | 0 |
Subordinated debt, Fair Value | 0 | 0 |
Accrued interest payable, Fair Value | $ 0 | $ 0 |
Mortgage Banking Activities (De
Mortgage Banking Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Principal Transaction Revenue [Line Items] | ||||
Loans originated for sale | $ 211,900 | $ 145,000 | $ 427,323 | $ 220,266 |
Proceeds from sale of loans | 229,200 | 130,400 | 454,737 | 211,432 |
Mortgage banking activities | ||||
Principal Transaction Revenue [Line Items] | ||||
Gain on loans sold | 4,164 | 1,825 | 8,507 | 3,298 |
(Loss) gain resulting from the change in fair value of loans held-for-sale | (1,255) | 534 | (939) | 352 |
Gain (loss) resulting from the change in fair value of derivatives | 499 | 305 | (492) | 631 |
Net revenue from mortgage banking activities | $ 3,408 | $ 2,664 | $ 7,076 | $ 4,281 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amount and Adjustment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amortized cost, at fair value | $ 590,046 | $ 546,640 | |
Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amortized cost, at fair value | 88,200 | ||
Loans | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Carrying amount of the hedged assets | 0 | 474,957 | |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | $ 21,440 | 0 | |
Securities available-for-sale | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Carrying amount of the hedged assets | 145,872 | $ 151,538 | |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | $ 2,802 | $ 7,095 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Interest Swap Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 309,910 | $ 309,910 | $ 840,646 | |||
Fair Value | (34,511) | (34,511) | (37,939) | |||
Interest expense | 19,796 | $ 20,739 | 41,022 | $ 39,494 | ||
Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 88,200 | $ 88,200 | $ 515,646 | |||
Weighted Average Remaining Maturity (years) | 5 years 3 months 18 days | 3 years 7 months 6 days | ||||
Fair Value | $ (24,357) | $ (7,097) | ||||
Weighted-Average Rate | 2.54% | 2.54% | 2.80% | |||
Cash collateral received | $ 34,600 | |||||
Cash collateral pledged | 42,300 | |||||
Loans | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fair Value | $ 21,440 | $ 0 | ||||
Loans | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 427,446 | |||||
Weighted Average Remaining Maturity (years) | 5 years 6 months | |||||
Fair Value | $ (21,551) | |||||
Weighted-Average Rate | 2.86% | |||||
Securities available-for-sale | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fair Value | $ 2,802 | 7,095 | ||||
Securities available-for-sale | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 88,200 | $ 88,200 | $ 88,200 | |||
Weighted Average Remaining Maturity (years) | 4 years 1 month 6 days | 3 years 7 months 6 days | ||||
Fair Value | $ (2,806) | $ (7,097) | ||||
Weighted-Average Rate | 2.54% | 2.54% | 2.54% | |||
3-month LIBOR | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 110,000 | $ 110,000 | $ 110,000 | |||
Weighted Average Remaining Maturity (years) | 7 years 1 month 6 days | 6 years 7 months 6 days | ||||
Fair Value | $ (17,993) | $ (17,993) | $ (8,390) | |||
Derivative, variable interest rate | 2.88% | 2.88% | 2.88% | |||
1-month LIBOR | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 100,000 | $ 100,000 | $ 100,000 | |||
Weighted Average Remaining Maturity (years) | 4 years | 3 years 6 months | ||||
Fair Value | $ (9,404) | $ (9,404) | $ (5,040) | |||
Derivative, variable interest rate | 2.88% | 2.88% | 2.88% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Notional Amounts and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Asset Derivatives | ||
Notional Amount | $ 14,527 | $ 56,256 |
Fair Value | 282 | 910 |
Derivative Liability [Abstract] | ||
Notional Amount | 309,910 | 840,646 |
Derivative, fair value | (34,511) | (37,939) |
Interest Rate Lock Commitments | ||
Derivative Liability [Abstract] | ||
Derivative, fair value | 282 | 910 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Liability [Abstract] | ||
Notional Amount | 88,200 | 515,646 |
Derivatives not designated as hedging instruments | Interest Rate Lock Commitments | ||
Asset Derivatives | ||
Notional Amount | 14,527 | 56,256 |
Fair Value | 282 | 910 |
Derivatives not designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 11,710 | 115,000 |
Fair Value | (17) | (153) |
Loans | Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Liability [Abstract] | ||
Notional Amount | 427,446 | |
Loans | Derivatives designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 0 | 427,446 |
Fair Value | 0 | (21,551) |
Securities available-for-sale | Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Liability [Abstract] | ||
Notional Amount | 88,200 | 88,200 |
Securities available-for-sale | Derivatives designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 88,200 | 88,200 |
Fair Value | (7,097) | (2,806) |
Liability | Derivatives designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 210,000 | 210,000 |
Fair Value | $ (27,397) | $ (13,429) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gain (Loss) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Asset Derivatives | Interest Rate Lock Commitments | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (1,781) | $ 428 | $ (628) | $ 820 |
Forward contracts | Liability Derivatives | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 2,281 | $ (122) | $ 136 | $ (189) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Effect Of Derivatives on Income (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Loss Recognized in Other Comprehensive Income | $ (509) | $ (13,967) | ||
Amount of Loss Recognized in Other Comprehensive Income | $ (5,892) | $ (9,464) | ||
Loans | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | (1,221) | (2,445) | ||
Gain (loss) recognized on the condensed consolidated statements of income | (285) | (264) | ||
Securities - taxable | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | (159) | (250) | ||
Gain (loss) recognized on the condensed consolidated statements of income | (10) | (17) | ||
Securities - non-taxable | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | (164) | (230) | ||
Gain (loss) recognized on the condensed consolidated statements of income | 27 | 72 | ||
Total interest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | (1,544) | (2,925) | ||
Gain (loss) recognized on the condensed consolidated statements of income | (268) | (209) | ||
Deposits | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | 593 | 899 | ||
Gain (loss) recognized on the condensed consolidated statements of income | 104 | 194 | ||
Other borrowed funds | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | 589 | 911 | ||
Gain (loss) recognized on the condensed consolidated statements of income | 79 | 113 | ||
Total interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | 1,182 | 1,810 | ||
Gain (loss) recognized on the condensed consolidated statements of income | 183 | 307 | ||
Net interest income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized on the condensed consolidated statements of income | $ (2,726) | $ (4,735) | ||
Gain (loss) recognized on the condensed consolidated statements of income | $ (451) | $ (516) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 305,127 | $ 294,013 | $ 304,913 | $ 288,735 |
Net change in unrealized gain | (2,007) | (2,225) | (9,166) | 1,113 |
Reclassification of net loss realized and included in earnings | 458 | (41) | 458 | |
Accumulated other comprehensive loss before income tax | (21,873) | (15,935) | (23,398) | (14,970) |
Income tax provision (benefit) | (735) | (357) | (2,260) | 608 |
Balance, end of period | 307,711 | 296,120 | 307,711 | 296,120 |
Available-For-Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (239) | (8,380) | (4,388) | (13,360) |
Net change in unrealized gain | (1,498) | 3,667 | 4,801 | 10,577 |
Reclassification of net loss realized and included in earnings | 458 | (41) | 458 | |
Accumulated other comprehensive loss before income tax | (1,737) | (4,255) | 372 | (2,325) |
Income tax provision (benefit) | (349) | 1,233 | 1,760 | 3,163 |
Balance, end of period | (1,388) | (5,488) | (1,388) | (5,488) |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (19,627) | (5,788) | (9,803) | (3,181) |
Net change in unrealized gain | (509) | (5,892) | (13,967) | (9,464) |
Reclassification of net loss realized and included in earnings | 0 | 0 | 0 | |
Accumulated other comprehensive loss before income tax | (20,136) | (11,680) | (23,770) | (12,645) |
Income tax provision (benefit) | (386) | (1,590) | (4,020) | (2,555) |
Balance, end of period | (19,750) | (10,090) | (19,750) | (10,090) |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (19,866) | (14,168) | (14,191) | (16,541) |
Balance, end of period | $ (21,138) | $ (15,578) | $ (21,138) | $ (15,578) |