Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 8701 East 116th Street | |
Entity Address, City or Town | Fishers | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46038 | |
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 | 9,655,480 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
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 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 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 20,976 | $ 7,492 |
Interest-bearing deposits | 496,573 | 435,468 |
Total cash and cash equivalents | 517,549 | 442,960 |
Total available-for-sale securities | 465,288 | 603,044 |
Securities held-to-maturity, at amortized cost (fair value of $159,971 and $61,468 in 2022 and 2021, respectively) | 163,370 | 59,565 |
Loans held-for-sale (includes $17,364 and $23,233 at fair value in 2022 and 2021, respectively) | 33,991 | 47,745 |
Loans | 2,880,780 | 2,887,662 |
Allowance for loan losses | (28,251) | (27,841) |
Net loans | 2,852,529 | 2,859,821 |
Accrued interest receivable | 15,263 | 16,037 |
Federal Home Loan Bank of Indianapolis stock | 25,219 | 25,650 |
Cash surrender value of bank-owned life insurance | 39,133 | 38,900 |
Premises and equipment, net | 68,632 | 59,842 |
Goodwill | 4,687 | 4,687 |
Servicing asset, at fair value | 5,249 | 4,702 |
Other real estate owned | 0 | 1,188 |
Accrued income and other assets | 34,487 | 46,853 |
Total assets | 4,225,397 | 4,210,994 |
Liabilities and Shareholders’ Equity | ||
Noninterest-bearing deposits | 119,196 | 117,531 |
Interest-bearing deposits | 3,098,783 | 3,061,428 |
Total deposits | 3,217,979 | 3,178,959 |
Advances from Federal Home Loan Bank | 514,923 | 514,922 |
Subordinated debt, net of unamortized debt issuance costs of $2,694 and $2,769 in 2022 and 2021, respectively | 104,306 | 104,231 |
Accrued interest payable | 1,532 | 2,018 |
Accrued expenses and other liabilities | 12,002 | 30,526 |
Total liabilities | 3,850,742 | 3,830,656 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Preferred stock, no par value; 4,913,779 shares authorized; issued and outstanding - none | 0 | 0 |
Retained earnings | 183,043 | 172,431 |
Accumulated other comprehensive loss | (22,861) | (11,039) |
Total shareholders’ equity | 374,655 | 380,338 |
Total liabilities and shareholders’ equity | 4,225,397 | 4,210,994 |
Voting Common Stock | ||
Shareholders’ Equity | ||
Common stock | 214,473 | 218,946 |
Nonvoting Common Stock | ||
Shareholders’ Equity | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized cost | $ 486,632 | $ 606,507 |
Held-to-maturity, at fair value | 159,971 | 61,468 |
Loans held-for-sale, at fair value | 19,181 | 23,233 |
Unamortized discounts and debt issuance costs | $ 2,694 | $ 2,769 |
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) | 9,683,727 | 9,754,455 |
Common stock, shares outstanding (in shares) | 9,683,727 | 9,754,455 |
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 ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest Income | ||
Loans | $ 33,188 | $ 30,885 |
Securities – taxable | 2,221 | 1,779 |
Securities – non-taxable | 249 | 281 |
Other earning assets | 376 | 335 |
Total interest income | 36,034 | 33,280 |
Interest Expense | ||
Deposits | 6,097 | 8,628 |
Other borrowed funds | 4,187 | 4,127 |
Total interest expense | 10,284 | 12,755 |
Net Interest Income | 25,750 | 20,525 |
Provision for Loan Losses | 791 | 1,276 |
Net Interest Income After Provision for Loan Losses | 24,959 | 19,249 |
Noninterest Income | ||
Gain on sale of loans | 3,845 | 1,723 |
Other | 498 | 369 |
Total noninterest income | 6,820 | 8,375 |
Noninterest Expense | ||
Salaries and employee benefits | 9,878 | 9,492 |
Marketing, advertising and promotion | 756 | 680 |
Consulting and professional services | 1,925 | 986 |
Data processing | 449 | 462 |
Loan expenses | 1,582 | 534 |
Premises and equipment | 2,540 | 1,601 |
Deposit insurance premium | 281 | 425 |
Other | 1,369 | 1,137 |
Total noninterest expense | 18,780 | 15,317 |
Income Before Income Taxes | 12,999 | 12,307 |
Income Tax Provision | 1,790 | 1,857 |
Net Income | $ 11,209 | $ 10,450 |
Income Per Share of Common Stock | ||
Basic (in dollars per share) | $ 1.14 | $ 1.06 |
Diluted (in dollars per share) | $ 1.14 | $ 1.05 |
Weighted-Average Number of Common Shares Outstanding | ||
Basic (in shares) | 9,790,122,000 | 9,899,230,000 |
Diluted (in shares) | 9,870,394,000 | 9,963,036,000 |
Dividends Declared Per Share (in dollars per share) | $ 0.06 | $ 0.06 |
Service charges and fees | ||
Noninterest Income | ||
Noninterest income | $ 316 | $ 266 |
Loan servicing revenue | ||
Noninterest Income | ||
Noninterest income | 585 | 422 |
Loan servicing asset revaluation | ||
Noninterest Income | ||
Noninterest income | (297) | (155) |
Mortgage banking activities | ||
Noninterest Income | ||
Noninterest income | $ 1,873 | $ 5,750 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 11,209 | $ 10,450 |
Net unrealized holding losses recorded within other comprehensive income before income tax | (17,881) | (2,195) |
Income tax benefit | (4,077) | (508) |
Reclassification of securities from available-for-sale to held-to-maturity | (5,402) | 0 |
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity | 119 | 0 |
Income tax benefit | (1,249) | 0 |
Net effect on other comprehensive (loss) income | (4,034) | 0 |
Net unrealized holding gains on cash flow hedging derivatives recorded within other comprehensive income before income tax | 9,334 | 6,280 |
Income tax provision | 3,318 | 1,317 |
Net effect on other comprehensive (loss) income | 6,016 | 4,963 |
Total other comprehensive (loss) income | (11,822) | 3,276 |
Comprehensive (loss) income | (613) | 13,726 |
Available-For-Sale Securities | ||
Net effect on other comprehensive (loss) income | $ (13,804) | $ (1,687) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common StockVoting and Nonvoting Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Balance, beginning of period at Dec. 31, 2020 | $ 330,944 | $ 221,408 | $ 126,732 | $ (17,196) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 10,450 | 10,450 | ||
Other comprehensive income (loss) | 3,276 | 3,276 | ||
Dividends declared | (607) | (607) | ||
Recognition of the fair value of share-based compensation | 692 | 692 | ||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 6 | 6 | ||
Common stock redeemed for the net settlement of share-based awards | (195) | (195) | ||
Balance, end of period at Mar. 31, 2021 | 344,566 | 221,911 | 136,575 | (13,920) |
Balance, beginning of period at Dec. 31, 2021 | 380,338 | 218,946 | 172,431 | (11,039) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 11,209 | 11,209 | ||
Other comprehensive income (loss) | (11,822) | (11,822) | ||
Dividends declared | (597) | (597) | ||
Recognition of the fair value of share-based compensation | 640 | 640 | ||
Repurchase of common stock | (5,118) | (5,118) | ||
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units | 5 | 5 | ||
Balance, end of period at Mar. 31, 2022 | $ 374,655 | $ 214,473 | $ 183,043 | $ (22,861) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.06 | $ 0.06 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net income | $ 11,209,000 | $ 10,450,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 7,721,000 | 283,000 |
Increase in cash surrender value of bank-owned life insurance | (233,000) | (233,000) |
Provision for loan losses | 791,000 | 1,276,000 |
Share-based compensation expense | 640,000 | 692,000 |
Loss on sale of available-for-sale securities | 0 | |
Loans originated for sale | (184,067,000) | (223,880,000) |
Proceeds from sale of loans | 202,011,000 | 241,589,000 |
Gain on loans sold | (5,907,000) | (9,222,000) |
Decrease in fair value of loans held-for-sale | 489,000 | 862,000 |
(Gain) loss on derivatives | (2,565,000) | 881,000 |
Loan servicing asset revaluation | 297,000 | (248,000) |
Net change in accrued income and other assets | 10,399,000 | 10,695,000 |
Net change in accrued expenses and other liabilities | (7,999,000) | (2,012,000) |
Net cash provided by operating activities | 32,786,000 | 31,133,000 |
Investing Activities | ||
Net loan activity, excluding purchases | 32,510,000 | 47,653,000 |
Proceeds from sale of other real estate owned | 1,188,000 | 0 |
Maturities and calls of securities available-for-sale | 27,848,000 | 55,901,000 |
Purchase of securities available-for-sale | (16,453,000) | (21,279,000) |
Purchase of securities held-to-maturity | (2,000,000) | 0 |
Redemption of Federal Home Loan Bank of Indianapolis stock | 431,000 | 0 |
Purchase of premises and equipment | (9,808,000) | (5,697,000) |
Loans purchased | (40,059,000) | (47,234,000) |
Net proceeds from sale of portfolio loans | 14,466,000 | 0 |
Other investing activities | 374,000 | 0 |
Net cash provided by investing activities | 8,497,000 | 29,344,000 |
Financing Activities | ||
Net increase (decrease) in deposits | 39,020,000 | (53,282,000) |
Cash dividends paid | (596,000) | (601,000) |
Repayment of subordinated debt | 0 | (10,000,000) |
Repurchase of common stock | (5,118,000) | 0 |
Proceeds from advances from Federal Home Loan Bank | 110,000,000 | 110,000,000 |
Repayment of advances from Federal Home Loan Bank | (110,000,000) | (110,000,000) |
Other, net | 0 | (195,000) |
Net cash provided by (used in) financing activities | 33,306,000 | (64,078,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | 74,589,000 | (3,601,000) |
Cash and Cash Equivalents, Beginning of Period | 442,960,000 | 419,806,000 |
Cash and Cash Equivalents, End of Period | 517,549,000 | 416,205,000 |
Supplemental Disclosures | ||
Cash paid during the period for interest | 10,770,000 | 12,777,000 |
Income Taxes Paid, Net | 50,000 | 10,000 |
Loans transferred to held-for-sale from portfolio | 14,049,000 | 0 |
Cash dividends declared, paid in subsequent period | 581,000 | 592,000 |
Securities purchased during the period, settled in subsequent period | 0 | 2,035,000 |
Transfer of available-for-sale mortgage-backed securities to held-to-maturity mortgage-backed securities | $ 107,168,000 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 are not necessarily indicative of the results expected for the year ending December 31, 2022 or any other period. The March 31, 2022 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, 2021. 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 and 2021. (dollars in thousands, except per share data) Three Months Ended March 31, 2022 2021 Basic earnings per share Net income $ 11,209 $ 10,450 Weighted-average common shares 9,790,122 9,899,230 Basic earnings per common share $ 1.14 $ 1.06 Diluted earnings per share Net income $ 11,209 $ 10,450 Weighted-average common shares 9,790,122 9,899,230 Dilutive effect of equity compensation 80,272 63,806 Weighted-average common and incremental shares 9,870,394 9,963,036 Diluted earnings per common share (1) $ 1.14 $ 1.05 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables summarize securities available-for-sale and securities held-to-maturity as of March 31, 2022 and December 31, 2021. March 31, 2022 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 45,335 $ — $ (1,488) $ 43,847 Municipal securities 72,420 557 (173) 72,804 Agency mortgage-backed securities - residential 276,392 88 (18,798) 257,682 Agency mortgage-backed securities - commercial 24,815 6 (665) 24,156 Private label mortgage-backed securities - residential 15,090 6 (278) 14,818 Asset-backed securities 5,000 — (14) 4,986 Corporate securities 47,580 299 (884) 46,995 Total available-for-sale $ 486,632 $ 956 $ (22,300) $ 465,288 March 31, 2022 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 13,981 $ 157 $ (45) $ 14,093 Mortgage-backed securities - residential 95,982 — (3,043) 92,939 Mortgage-backed securities - commercial 5,847 — (427) 5,420 Corporate securities 47,560 338 (379) 47,519 Total held-to-maturity $ 163,370 $ 495 $ (3,894) $ 159,971 December 31, 2021 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 50,013 $ 164 $ (1,137) $ 49,040 Municipal securities 75,158 1,940 (65) 77,033 Agency mortgage-backed securities - residential 377,928 960 (5,652) 373,236 Agency mortgage-backed securities - commercial 36,024 441 (139) 36,326 Private label mortgage-backed securities - residential 15,902 122 (3) 16,021 Asset-backed securities 5,000 4 — 5,004 Corporate securities 46,482 597 (695) 46,384 Total available-for-sale $ 606,507 $ 4,228 $ (7,691) $ 603,044 December 31, 2021 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 13,992 $ 717 $ — $ 14,709 Corporate securities 45,573 1,186 — 46,759 Total held-to-maturity $ 59,565 $ 1,903 $ — $ 61,468 The carrying value of securities at March 31, 2022 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 One to five years $ 34,545 $ 34,808 Five to ten years 56,269 55,141 After ten years 74,521 73,697 165,335 163,646 Agency mortgage-backed securities - residential 276,392 257,682 Agency mortgage-backed securities - commercial 24,815 24,156 Private label mortgage-backed securities - residential 15,090 14,818 Asset-backed securities 5,000 4,986 Total $ 486,632 $ 465,288 Held-to-Maturity (in thousands) Amortized Fair One to five years $ 11,172 $ 11,149 Five to ten years 39,233 39,553 After ten years 11,136 10,910 61,541 61,612 Agency mortgage-backed securities - residential 95,982 92,939 Agency mortgage-backed securities - commercial 5,847 5,420 Total $ 163,370 $ 159,971 There were no gross gains or losses resulting from the sale of available-for-sale securities during the three months ended March 31, 2022 and March 31, 2021, respectively. 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 March 31, 2022 and December 31, 2021 was $493.4 million and $403.2 million, which was approximately 79% and 61%, respectively, of the Company’s AFS and HTM securities portfolios. As of March 31, 2022, the Company’s security portfolio consisted of 437 securities, of which 326 were in an unrealized loss position. The unrealized losses are related to the categories noted below. 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. In the first quarter 2022, the Company transferred certain available-for-sale mortgage backed securities with a fair value of $96.2 million to held-to-maturity. The transfer occurred at fair value and involved residential mortgage-backed securities that qualify for credit under the Community Reinvestment Act that the Company intends to hold until maturity. The related after-tax unrealized loss of $4.1 million remained in accumulated other comprehensive loss and will be amortized to interest income over the remaining life of the securities using the interest method. There were no gains or losses recognized as a result of this transfer. 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 March 31, 2022. 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 terms 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 March 31, 2022. 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 March 31, 2022 and December 31, 2021. March 31, 2022 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 $ 4,620 $ (64) $ 39,632 $ (1,424) $ 44,252 $ (1,488) Municipal securities 25,045 (173) — — 25,045 (173) Agency mortgage-backed securities- residential 210,766 (15,256) 36,680 (3,542) 247,446 (18,798) Agency mortgage-backed securities- commercial 19,916 (414) 2,653 (251) 22,569 (665) Private label mortgage-backed securities - residential 13,885 (278) — — 13,885 (278) Asset-backed securities 4,986 (14) — — 4,986 (14) Corporate securities 11,770 (230) 9,346 (654) 21,116 (884) Total $ 290,988 $ (16,429) $ 88,311 $ (5,871) $ 379,299 $ (22,300) March 31, 2022 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 4,599 $ (45) $ — $ — $ 4,599 $ (45) Agency mortgage-backed securities - residential 64,135 (2,115) 28,778 (928) 92,913 (3,043) Agency mortgage-backed securities - commercial 5,420 (427) — — 5,420 (427) Corporate securities 11,129 (379) — — 11,129 (379) Total $ 85,283 $ (2,966) $ 28,778 $ (928) $ 114,061 $ (3,894) December 31, 2021 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 $ 2,921 $ (79) $ 40,305 $ (1,058) $ 43,226 $ (1,137) Municipal securities 5,721 (65) — — 5,721 (65) Agency mortgage-backed securities - residential 287,820 (3,694) 40,840 (1,958) 328,660 (5,652) Agency mortgage-backed securities - commercial 3,944 (139) — — 3,944 (139) Private label mortgage-backed securities 374 (3) — — 374 (3) Asset-backed securities — — — — — — Corporate securities 11,813 (187) 9,491 (508) 21,304 (695) Total $ 312,593 $ (4,167) $ 90,636 $ (3,524) $ 403,229 $ (7,691) |
Loans
Loans | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans | Loans Loan balances as of March 31, 2022 and December 31, 2021 are summarized in the table below. Categories of loans include: (in thousands) March 31, 2022 December 31, 2021 Commercial loans Commercial and industrial $ 99,808 $ 96,008 Owner-occupied commercial real estate 56,752 66,732 Investor commercial real estate 34,627 28,019 Construction 149,662 136,619 Single tenant lease financing 852,519 865,854 Public finance 587,817 592,665 Healthcare finance 354,574 387,852 Small business lending 97,040 108,666 Franchise finance 107,246 81,448 Total commercial loans 2,340,045 2,363,863 Consumer loans Residential mortgage 191,153 186,770 Home equity 18,100 17,665 Other consumer loans 270,330 265,478 Tax refund advance loans 9,177 — Total consumer loans 488,760 469,913 Total commercial and consumer loans 2,828,805 2,833,776 Net deferred loan origination fees/costs and premiums/discounts on purchased loans and other (1) 51,975 53,886 Total loans 2,880,780 2,887,662 Allowance for loan losses (28,251) (27,841) Net loans $ 2,852,529 $ 2,859,821 (1) Includes carrying value adjustments of $36.4 million and $37.5 million related to terminated interest rate swaps associated with public finance loans as of March 31, 2022 and December 31, 2021, respectively. 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 the Midwest and Southwest regions of the United States. 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 the Midwest and Southwest regions of the United States 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 Midwest and Southwest regions of the United States. 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 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, and 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 the Midwest and Southwest regions of the United States. 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 on a nationwide basis 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; renewable energy projects; 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. Healthcare Finance: These loans are made on a nationwide basis to healthcare providers, primarily dentists, for practice acquisition financing or 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 and secondarily on the underlying collateral provided by the borrower. Small Business Lending: These loans are made on a nationwide basis 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. Franchise Finance: These loans are made on a nationwide basis through our partnership with ApplePie Capital, which through their deep relationships with franchise brands provides franchisees with financing options for new franchise units, recapitalization, expansion, equipment and working capital. The sources of repayment are either based on identified cash flows from existing operations of the borrower or pro forma cash flow for new franchise locations. 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. Tax Refund Advance Loans: These loans provide short-term tax refund advance loans to eligible individual taxpayers. Due to the nature of tax refund advance loans, it typically takes no more than three weeks from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a tax refund advance loan if there is a balance at the end of the program year, or when collection of principal becomes doubtful. 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 months ended March 31, 2022 and 2021. (in thousands) Three Months Ended March 31, 2022 Allowance for loan losses: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,891 $ 88 $ — $ — $ 1,979 Owner-occupied commercial real estate 742 (116) — — 626 Investor commercial real estate 328 77 — — 405 Construction 1,612 154 — — 1,766 Single tenant lease financing 10,385 (1,645) — 1,231 9,971 Public finance 1,776 7 — — 1,783 Healthcare finance 5,940 (430) — — 5,510 Small business lending 1,387 111 (80) 17 1,435 Franchise finance 1,083 354 — 1,437 Residential mortgage 643 87 — 1 731 Home equity 64 (1) — 2 65 Other consumer loans 1,990 263 (163) 99 2,189 Tax refund advance loans — 1842 (1488) — 354 Total $ 27,841 $ 791 $ (1,731) $ 1,350 $ 28,251 (in thousands) Three Months Ended March 31, 2021 Allowance for loan losses: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,146 $ 434 $ — $ 82 $ 1,662 Owner-occupied commercial real estate 1,082 (53) — — 1,029 Investor commercial real estate 155 14 — — 169 Construction 1,192 228 — — 1,420 Single tenant lease financing 12,990 188 — — 13,178 Public finance 1,732 16 — — 1,748 Healthcare finance 7,485 270 — — 7,755 Small business lending 628 147 (79) 4 700 Residential mortgage 519 77 — 5 601 Home equity 48 58 (51) 2 57 Other consumer loans 2,507 (103) (181) 100 2,323 Total $ 29,484 $ 1,276 $ (311) $ 193 $ 30,642 The following tables present the recorded investment in loans based on portfolio segment and impairment method as of March 31, 2022 and December 31, 2021. (in thousands) Loans Allowance for Loan Losses March 31, 2022 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 99,198 $ 610 $ 99,808 $ 1,529 $ 450 $ 1,979 Owner-occupied commercial real estate 53,485 3,267 56,752 626 — 626 Investor commercial real estate 34,627 — 34,627 405 — 405 Construction 149,662 — 149,662 1,766 — 1,766 Single tenant lease financing 851,427 1,092 852,519 9,876 95 9,971 Public finance 587,817 — 587,817 1,783 — 1,783 Healthcare finance 353,666 908 354,574 4,987 523 5,510 Small business lending (1) 94,525 2,515 97,040 1,042 393 1,435 Franchise finance 107,246 — 107,246 1,437 — 1,437 Residential mortgage 187,528 3,625 191,153 731 — 731 Home equity 18,086 14 18,100 65 — 65 Other consumer 270,317 13 270,330 2,189 — 2,189 Tax refund advance loans 9,177 — 9,177 354 — 354 Total $ 2,816,761 $ 12,044 $ 2,828,805 $ 26,790 $ 1,461 $ 28,251 1 Balance of loans individually evaluated for impairment are guaranteed by the U.S. government. (in thousands) Loans Allowance for Loan Losses December 31, 2021 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 95,364 $ 644 $ 96,008 $ 1,441 $ 450 $ 1,891 Owner-occupied commercial real estate 63,387 3,345 66,732 742 — 742 Investor commercial real estate 28,019 — 28,019 328 — 328 Construction 136,619 — 136,619 1,612 — 1,612 Single tenant lease financing 864,754 1,100 865,854 10,290 95 10,385 Public finance 592,665 — 592,665 1,776 — 1,776 Healthcare finance 386,926 926 387,852 5,417 523 5,940 Small business lending (1) 106,682 1,984 108,666 994 393 1,387 Franchise finance 81,448 — 81,448 1,083 — 1,083 Residential mortgage 183,852 2,918 186,770 643 — 643 Home equity 17,651 14 17,665 64 — 64 Other consumer 265,469 9 265,478 1,990 — 1,990 Total $ 2,822,836 $ 10,940 $ 2,833,776 $ 26,380 $ 1,461 $ 27,841 1 Balance of loans individually evaluated for impairment are guaranteed by the U.S. government. 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 March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 85,340 $ 13,858 $ 610 $ 99,808 Owner-occupied commercial real estate 49,520 3,965 3,267 56,752 Investor commercial real estate 34,627 — — 34,627 Construction 136,466 13,196 — 149,662 Single tenant lease financing 846,543 4,884 1,092 852,519 Public finance 585,387 2,430 — 587,817 Healthcare finance 353,090 576 908 354,574 Small business lending (1) 87,358 7,167 2,515 97,040 Franchise finance 107,246 — — 107,246 Total commercial loans $ 2,285,577 $ 46,076 $ 8,392 $ 2,340,045 1 Balance in “Substandard” is guaranteed by the U.S. government. March 31, 2022 (in thousands) Performing Nonaccrual Total Residential mortgage $ 189,946 $ 1,207 $ 191,153 Home equity 18,086 14 18,100 Other consumer 270,317 13 270,330 Tax refund advance loans 9,177 — 9,177 Total consumer loans $ 487,526 $ 1,234 $ 488,760 December 31, 2021 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 82,412 $ 12,952 $ 644 $ 96,008 Owner-occupied commercial real estate 59,369 4,018 3,345 66,732 Investor commercial real estate 28,019 — — 28,019 Construction 124,578 12,041 — 136,619 Single tenant lease financing 859,612 5,142 1,100 865,854 Public finance 591,630 1,035 — 592,665 Healthcare finance 386,337 589 926 387,852 Small business lending (1) 99,250 7,432 1,983 108,666 Franchise finance 81,448 — — 81,448 Total commercial loans $ 2,312,655 $ 43,209 $ 7,998 $ 2,363,863 1 Balance in “Substandard” is guaranteed by the U.S. government. December 31, 2021 (in thousands) Performing Nonaccrual Total Residential mortgage $ 185,544 $ 1,226 $ 186,770 Home equity 17,651 14 17,665 Other consumer 265,469 9 265,478 Total consumer loans $ 468,664 $ 1,249 $ 469,913 The following tables present the Company’s loan portfolio delinquency analysis as of March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ — $ — $ — $ — $ 99,808 $ 99,808 $ 610 $ — Owner-occupied commercial real estate — — — — 56,752 56,752 — — Investor commercial real estate — — — — 34,627 34,627 3,267 — Construction — — — — 149,662 149,662 — — Single tenant lease financing — — — — 852,519 852,519 1,092 — Public finance — — — — 587,817 587,817 — — Healthcare finance — — — — 354,574 354,574 — — Small business lending (1) 515 — 129 644 96,396 97,040 881 — Franchise finance — — — — 107,246 107,246 — — Residential mortgage — 77 106 183 190,970 191,153 1,207 — Home equity — — — — 18,100 18,100 14 — Other consumer 69 64 — 133 270,197 270,330 13 — Tax refund advance loans — — — — 9,177 9,177 — — Total $ 584 $ 141 $ 235 $ 960 $ 2,827,845 $ 2,828,805 $ 7,084 $ — 1 Balance in “Total Past Due” is guaranteed by the U.S. government. December 31, 2021 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ — $ — $ — $ — $ 96,008 $ 96,008 $ 674 $ — Owner-occupied commercial real estate — — — — 66,732 66,732 — — Investor commercial real estate — — — — 28,019 28,019 3,419 — Construction — — — — 136,619 136,619 — — Single tenant lease financing — — — — 865,854 865,854 1,100 — Public finance — — — — 592,665 592,665 — — Healthcare finance — — — — 387,852 387,852 — — Small business lending (1) — — 657 657 108,009 108,666 959 — Franchising Finance — — — — 81,448 81,448 — — Residential mortgage 51 226 106 383 186,387 186,770 1,226 — Home equity — — — — 17,665 17,665 14 — Other consumer 68 18 — 86 265,392 265,478 9 — Total $ 119 $ 244 $ 763 $ 1,126 $ 2,832,650 $ 2,833,776 $ 7,401 $ — 1 Balance in “Total Past Due” is guaranteed by the U.S. government. 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 March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (in thousands) Recorded Unpaid Specific Recorded Unpaid Specific Loans without a specific valuation allowance Owner-occupied commercial real estate $ 3,267 $ 3,453 $ — $ 3,345 $ 3,466 $ — Small business lending (1) 881 1,079 — 959 1,193 — Residential mortgage 3,625 3,780 — 2,918 3,063 — Home equity 14 15 — 14 15 — Other consumer loans 13 55 — 9 44 — Total 7,800 8,382 — 7,245 7,781 — Loans with a specific valuation allowance Commercial and industrial 610 652 450 644 677 450 Single tenant lease financing 1,092 1,116 95 1,100 1,123 95 Healthcare finance 908 908 523 926 926 523 Small business lending (1) 1,634 1,634 393 1,025 1,025 393 Total 4,244 4,310 1,461 3,695 3,751 1,461 Total impaired loans $ 12,044 $ 12,692 $ 1,461 $ 10,940 $ 11,532 $ 1,461 1 Balance of loans individually evaluated for impairment are guaranteed by the U.S. government. The table below presents average balances and interest income recognized for impaired loans during the three months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Average Interest Average Interest Loans without a specific valuation allowance Commercial and industrial $ — $ — $ 517 $ 9 Owner-occupied commercial real estate 3,307 — 2,440 — Single tenant lease financing — — 151 5 Healthcare finance — — 1,008 — Small business lending (1) 830 — 577 — Residential mortgage 3,273 8 1,736 4 Home equity 14 — 11 — Other consumer 10 — 37 — Total 7,434 8 6,477 18 Loans with a specific valuation allowance Commercial and industrial 627 — 501 — Single tenant lease financing 1,094 — 7,148 — Healthcare finance 918 17 494 12 Small business lending (1) 1,333 — — — Total 3,972 17 8,143 12 Total impaired loans $ 11,406 $ 25 $ 14,620 $ 30 1 Balance is guaranteed by the U.S. government. The Company did not have any other real estate owned (“OREO”) as of March 31, 2022. The Company had $1.2 million in OREO as of December 31, 2021, which consisted of one commercial property. There were two loans totaling $0.2 million and one loan totaling $0.1 million in the process of foreclosure at March 31, 2022 and December 31, 2021, respectively. 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 obtain 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 months ended March 31, 2022 with a pre-modification and post-modification outstanding recorded investment of $0.7 million. The Company did not allocate a specific allowance for that loan as of March 31, 2022. The modifications consisted of interest-only payments for a period of time. There was one residential mortgage loan classified as a new TDR during the three months ended March 31, 2021 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 March 31, 2021. 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 months ended March 31, 2022 and 2021, 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 encouraged 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 were in effect from the period beginning March 1, 2020 until the earlier of January 1, 2022 or 60 days after the date on which the national emergency related to the COVID-19 pandemic formally terminates. As of March 31, 2022, the Company had seven loans totaling $9.8 million in non-TDR loan modifications due to COVID-19. |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table summarizes premises and equipment at March 31, 2022 and December 31, 2021. (in thousands) March 31, December 31, Land $ 5,598 $ — Construction in process — 57,469 Right of use leased asset 160 208 Building and improvements 51,902 1,090 Furniture and equipment 18,666 7,800 Less: accumulated depreciation (7,694) (6,725) Total $ 68,632 $ 59,842 On February 16, 2021, the Company entered into an agreement to sell its then headquarters (the “Prior Headquarters”) and certain equipment located in the Prior Headquarters to a third party. The sale was completed on April 16, 2021, and the Company recorded a gain on sale of $2.5 million. As a part of the sale agreement, the buyer agreed to lease the Prior Headquarters back to the Company through December 31, 2021. The Company vacated the Prior Headquarters at the end of the lease, on or prior to December 31, 2021. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As of March 31, 2022 and December 31, 2021, 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 March 31, 2022. Goodwill is assessed for impairment annually as of August 31, or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment. Goodwill was assessed for impairment using a qualitative test performed as of August 31, 2021. |
Servicing Asset
Servicing Asset | 3 Months Ended |
Mar. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Servicing Asset | Servicing Asset Activity for the servicing asset and the related changes in fair value for the three months ended March 31, 2022 and 2021 are shown in the table below. Three Months Ended (in thousands) March 31, 2022 March 31, 2021 Balance, beginning of period $ 4,702 $ 3,569 Additions: Originated and purchased servicing 844 403 Subtractions Paydowns: (256) (170) Changes in fair value due to changes in valuation inputs or assumptions used in (41) 15 Loan servicing asset revaluation $ (297) $ (155) Balance, end of period $ 5,249 $ 3,817 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 March 31, 2022 and December 31, 2021 are shown in the table below. (in thousands) March 31, 2022 December 31, 2021 Loan portfolios serviced for: SBA guaranteed loans $ 254,545 $ 230,514 Total $ 254,545 $ 230,514 Loan servicing revenue totaled $0.6 million and $0.4 million for the three months ended March 31, 2022 and March 31, 2021, respectively. Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $0.3 million and $0.2 million downward valuation for the three months ended March 31, 2022 and 2021, respectively. 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 11 - Fair Value of Financial Instruments for further details. |
Subordinated Debt
Subordinated Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Subordinated Debt 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 had 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 was payable quarterly. The 2026 Notes were scheduled to mature on September 30, 2026. The 2026 Notes were unsecured subordinated obligations of the Company eligible to be repaid, without penalty, on any interest payment date on or after September 30, 2021. The 2026 Notes were intended to qualify as Tier 2 capital under regulatory guidelines. The Company redeemed the 2026 Notes in full on September 30, 2021. 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 4.11%. 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. In October 2020, the Company entered into a term loan in the principal amount of $10.0 million evidenced by a term note due 2030 (the “2030 Note”). The 2030 Note initially bears a fixed interest rate of 6.0% per year to, but excluding, November 1, 2025 and thereafter at a floating rate equal to the then-current benchmark rate (initially the then current three-month term secured overnight financing rate (“Term SOFR”) plus 5.795%). The 2030 Note is an unsecured subordinated obligation of the Company and may be repaid, without penalty, on any interest payment date on or after November 1, 2025. The 2030 Note is intended to qualify as Tier 2 capital under regulatory guidelines. The Company used the net proceeds from the issuance of the 2030 Note to redeem a subordinated term note that had been entered into in October 2015. In August 2021, the Company issued $60.0 million aggregate principal amount of 3.75% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “2031 Notes”) in a private placement. The 2031 Notes initially bear a fixed interest rate of 3.75% per year to, but excluding, September 1, 2026, and thereafter a floating rate equal to the then-current benchmark rate (initially three-month Term SOFR plus 3.11%). The 2031 Notes are scheduled to mature on September 1, 2031. The 2031 Notes are unsecured subordinated obligations of the Company and may be repaid, without penalty, on any interest payment date on or after September 1, 2026. The 2031 Notes are intended to qualify as Tier 2 capital under regulatory guidelines. The Company used a portion of the net proceeds from the issuance of the 2031 Notes to redeem the 2026 Notes. Pursuant to the terms of a Registration Rights Agreement between the Company and the initial purchasers of the 2031 Notes, the Company offered to exchange the 2031 Notes for subordinated notes that are registered under the Securities Act of 1933, as amended, and have substantially the same terms as the 2031 Notes. On December 30, 2021, we completed an exchange of $59.3 million principal amount of the unregistered 2031 Notes for registered 2031 Notes in satisfaction of our obligations under the registration rights agreement. Holders of $0.7 million of unregistered 2031 Notes did not participate in the exchange. The following table presents the principal balance and unamortized debt issuance costs for the 2029 Notes, the 2030 Notes, and the 2031 Notes as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs 2029 Notes $ 37,000 $ (1,139) $ 37,000 $ (1,178) 2030 Notes 10,000 (201) 10,000 (208) 2031 Notes 60,000 (1,354) 60,000 (1,383) Total $ 107,000 $ (2,694) $ 107,000 $ (2,769) |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
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 $0.6 million of share-based compensation expense for the three months ended March 31, 2022, related to awards made under th e 2013 Plan. The Company recorded $0.7 million of share-based compensation expense for the three months ended March 31, 2021, related to awards made under the 2013 Plan. The following table summarizes the status of the 2013 Plan awards as of March 31, 2022 , and activity for the three months ended March 31, 2022. 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 Unvested at December 31, 2021 112,822 $ 28.18 — $ — — $ — Granted 41,381 46.71 9,954 52.64 1 52.64 Vested (23,256) 24.62 (2,502) 52.64 (1) 52.64 Unvested at March 31, 2022 130,947 $ 34.67 7,452 $ 52.64 — $ — At March 31, 2022, the total unrecognized compensation cost related to unvested awards was $3.8 million with a weighted-average expense recognition period of 2.0 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 three months ended March 31, 2022. Deferred Stock Rights Outstanding, beginning of period 84,536 Granted 107 Exercised — Outstanding, end of period 84,643 |
Commitments and Credit Risk
Commitments and Credit Risk | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021, the Company had outstanding loan commitments totaling approximately $325.7 million and $324.3 million, respectively. Capital Commitments Capital expenditures contracted for at the balance sheet date but not yet recognized in the financial statements are associated with the construction of the building where our corporate headquarters is located, along with an attached parking garage. The Company has entered into construction-related contracts in the amount of $68.7 million. As of March 31, 2022, $8.3 million of such contract commitments had not yet been incurred. These commitments are due within one year. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 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 March 31, 2022 or December 31, 2021. 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 (Level 2). 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 March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 43,847 $ — $ 43,847 $ — Municipal securities 72,804 — 72,804 — Agency mortgage-backed securities - residential 257,682 — 257,682 — Agency mortgage-backed securities - commercial 24,156 — 24,156 — Private label mortgage-backed securities - residential 14,818 — 14,818 — Asset-backed securities 4,986 — 4,986 — Corporate securities 46,995 — 46,995 — Total available-for-sale securities $ 465,288 $ — $ 465,288 $ — Loans held-for-sale (mandatory pricing agreements) 17,364 — 17,364 — Servicing asset 5,249 — — 5,249 Interest rate swap agreements (2,917) — (2,917) — Forward contracts 1,072 1,072 — — IRLCs (88) — — (88) December 31, 2021 (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 49,040 $ — $ 49,040 $ — Municipal securities 77,033 — 77,033 — Agency mortgage-backed securities - residential 373,236 — 373,236 — Agency mortgage-backed securities - commercial 36,326 36,326 Private label mortgage-backed securities - residential 16,021 — 16,021 — Asset-backed securities 5,004 — 5,004 — Corporate securities 46,384 — 46,384 — Total available-for-sale securities $ 603,044 $ — $ 603,044 $ — Loans held-for-sale (mandatory pricing agreements) 23,233 — 23,233 — Servicing asset 4,702 — — 4,702 Interest rate swap agreements (14,271) — (14,271) — Forward contracts (30) (30) — — IRLCs 718 — — 718 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 months ended March 31, 2022 and 2021. Three Months Ended (in thousands) Servicing Asset Interest Rate Lock Balance, January 1, 2022 $ 4,702 $ 718 Total realized gains Additions 844 — Paydowns (256) — Change in fair value (41) (806) Balance, March 31, 2022 $ 5,249 $ (88) Balance as of January 1, 2021 $ 3,569 $ 3,361 Total realized gains Additions 403 — Paydowns (170) — Change in fair value 15 (2,251) Balance, March 31, 2021 $ 3,817 $ 1,110 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 March 31, 2022 and December 31, 2021. December 31, 2021 (in thousands) Fair Value Measurements Using Fair Quoted Prices Significant Significant Impaired loans $ 1,228 $ — $ — $ 1,228 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 Impaired loans $ 2,164 Fair value of collateral Discount for type of property and current market conditions 10% 10% IRLCs (88) Discounted cash flow Loan closing rates 45% - 100% 87% Servicing asset 5,249 Discounted cash flow Prepayment speeds 0% - 25% 10% 13.3% 10% (dollars in thousands) Fair Value at Valuation Significant Unobservable Range Weighted-Average Range Impaired loans $ 1,228 Fair value of collateral Discount for type of property and current market conditions 0% - 35% 10.1% IRLCs 718 Discounted cash flow Loan closing rates 42% - 100% 89% Servicing asset 4,702 Discounted cash flow Prepayment speeds Discount rate 0% - 25% 10% 12.5% 10% 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 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 municipal securities and 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 March 31, 2022 or December 31, 2021. 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 March 31, 2022 and December 31, 2021. The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 517,549 $ 517,549 $ 517,549 $ — $ — Securities held-to-maturity 163,370 159,971 — 159,971 — Loans held-for-sale (best efforts pricing agreements) 16,627 16,627 — 16,627 — Net loans 2,852,529 2,750,399 — — 2,750,399 Accrued interest receivable 15,263 15,263 15,263 — — Federal Home Loan Bank of Indianapolis stock 25,219 25,219 — 25,219 — Deposits 3,217,979 3,164,027 1,996,097 — 1,167,930 Advances from Federal Home Loan Bank 514,923 512,307 — 512,307 — Subordinated debt 104,306 108,320 38,184 70,136 — Accrued interest payable 1,532 1,532 1,532 — — December 31, 2021 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 442,960 $ 442,960 $ 442,960 $ — $ — Securities held-to-maturity 59,565 61,468 — 61,468 — Loans held-for-sale (best efforts pricing agreements) 24,512 24,512 — 24,512 — Net loans 2,859,821 2,880,024 — — 2,880,024 Accrued interest receivable 16,037 16,037 16,037 — — Federal Home Loan Bank of Indianapolis stock 25,650 25,650 — 25,650 — Deposits 3,178,959 3,190,000 1,909,432 — 1,280,568 Advances from Federal Home Loan Bank 514,922 526,143 — 526,143 — Subordinated debt 104,231 108,788 38,643 70,145 — Accrued interest payable 2,018 2,018 2,018 — — |
Mortgage Banking Activities
Mortgage Banking Activities | 3 Months Ended |
Mar. 31, 2022 | |
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 13 for further information on derivative financial instruments. During the three months ended March 31, 2022 and 2021, the Company originated mortgage loans held-for-sale of $152.4 million and $223.9 million, respectively, and sold $162.4 million and $241.6 million of mortgage loans, respectively, into the secondary market. The following table presents the components of income from mortgage banking activities for the three months ended March 31, 2022 and 2021. Three Months Ended March 31, (in thousands) 2022 2021 Gain on loans sold $ 2,062 $ 7,499 Gain (loss) resulting from the change in fair value of loans held-for-sale (489) (862) Gain (loss) resulting from the change in fair value of derivatives 300 (887) Net revenue from mortgage banking activities $ 1,873 $ 5,750 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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, 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 March 31, 2022 and December 31, 2021. (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 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Securities available-for-sale (1) $ 72,416 $ 75,156 $ (292) $ 1,729 (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. The designated hedged items were $50.0 million at both March 31, 2022 and December 31, 2021. 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 March 31 , 2022 and December 31, 2021, identified by the underlying interest rate-sensitive instruments. (dollars in thousands) March 31, 2022 Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio Instruments Associated With Fair Value Receive Pay Securities available-for-sale $ 50,000 2.6 $ 288 3-month LIBOR 2.33 % Total at March 31, 2022 $ 50,000 2.6 $ 288 3-month LIBOR 2.33 % (dollars in thousands) December 31, 2021 Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio Instruments Associated With Fair Value Receive Pay Securities available-for-sale $ 50,000 2.8 $ (1,731) 3-month LIBOR 2.33 % Total at December 31, 2021 $ 50,000 2.8 $ (1,731) 3-month LIBOR 2.33 % In March 2021, the Company terminated the last layer of interest rate swaps associated with available-for-sale agency mortgage-backed securities - residential, which resulted in swap termination payments to counterparties totaling $1.9 million. The corresponding fair value hedging adjustment was allocated pro-rata to the underlying hedged securities and is being amortized over the remaining lives of the designated securities. During the three months ended March 31, 2022, amortization expense totaling $0.1 million was recognized as a reduction to interest income on securities. 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 12.0 years as of March 31, 2022. During the three months ended March 31, 2022 and 2021, amortization expense totaling $1.0 million and $1.1 million, respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans. 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 March 31, 2022 and December 31, 2021. (dollars in thousands) March 31, 2022 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 4.8 $ (2,132) 3-month LIBOR 2.88 % Interest rate swaps 60,000 1.4 (648) 1-month LIBOR 2.88 % Interest rate swaps 40,000 2.2 (425) Fed Funds Effective 2.78 % (dollars in thousands) December 31, 2021 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 5.1 $ (8,560) 3-month LIBOR 2.88 % Interest rate swaps 100,000 2.0 (3,980) 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 $2.7 million and $15.7 million of cash collateral to counterparties as security for its obligations related to these interest rate swap transactions at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (in thousands) Notional Fair Notional Fair Asset Derivatives Derivatives not designated as hedging instruments IRLCs $ — $ — $ 62,789 $ 718 Forward contracts 56,750 1,072 — — Total contracts $ 56,750 $ 1,072 $ 62,789 $ 718 Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with securities available-for-sale $ 50,000 $ 288 $ 50,000 $ (1,731) Interest rate swaps associated with liabilities 210,000 (3,205) 210,000 (12,540) Derivatives not designated as hedging instruments Forward contracts — — 72,750 (30) IRLCs 63,378 (88) — — Total contracts $ 323,378 $ (3,005) $ 332,750 $ (14,301) 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 months ended March 31, 2022 and 2021. Amount of Gain Recognized in Other Comprehensive Income (Loss) in The Three Months Ended (in thousands) March 31, 2022 March 31, 2021 Interest rate swap agreements $ 9,334 $ 6,280 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 months ended March 31, 2022 and 2021. Amount of Gain / (Loss) Recognized in the Three Months Ended (in thousands) March 31, 2022 March 31, 2021 Asset Derivatives Derivatives not designated as hedging instruments Forward contracts 1,102 1,361 Liability Derivatives Derivatives not designated as hedging instruments IRLCs $ (802) $ (2,251) The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of income during the three months ended March 31, 2022 and 2021. (in thousands) Line item in the condensed consolidated statements of income Three Months Ended March 31, 2022 March 31, 2021 Interest income Securities - taxable — (253) Securities - non-taxable (260) (266) Total interest income (260) (519) Interest expense Deposits 670 678 Other borrowed funds 696 730 Total interest expense 1,366 1,408 Net interest income $ (1,626) $ (1,927) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, included in shareholders' equity, for the three months ended March 31, 2022 and 2021, respectively, are presented in the table below. (in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total Balance, January 1, 2022 $ (2,555) $ — $ (8,484) $ (11,039) Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax (17,881) (5,402) 9,334 (13,949) Reclassifications from accumulated other comprehensive (loss) income to earnings before tax — 119 — 119 Other comprehensive (loss) gain before tax (17,881) (5,283) 9,334 (13,830) Income tax (benefit) provision (4,077) (1,249) 3,318 (2,008) Other comprehensive (loss) income - net of tax (13,804) (4,034) 6,016 (11,822) Balance, March 31, 2022 $ (16,359) $ (4,034) $ (2,468) $ (22,861) Balance, January 1, 2021 $ 468 $ — $ (17,664) $ (17,196) Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax (2,195) — 6,280 4,085 Other comprehensive (loss) gain before tax (2,195) — 6,280 4,085 Income tax (benefit) provision (508) — 1,317 809 Other comprehensive (loss) income - net of tax (1,687) — 4,963 3,276 Balance, March 31, 2021 $ (1,219) $ — $ (12,701) $ (13,920) Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Affected Line Item in the Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Reclassifications from accumulated other comprehensive loss to earnings before tax $ (119) — Interest income Total amount reclassified before tax (119) — Income before income taxes Tax benefit (27) — Income tax provision Total reclassifications from accumulated other comprehensive loss $ (92) $ — Net income |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
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 expects to adopt this guidance on January 1, 2023 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. 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 adopted the temporary relief issued under the CARES Act, thereby suspending the guidance in ASC 310-40 on accounting for TDRs to loan modifications related to COVID-19. Section 4013 of the CARES Act specifies 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 January 1, 2022 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 Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information. ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (March 2020) In March 2020, FASB issued ASU 2020-04 to ease the potential burden in accounting for the transition away from the LIBORon financial reporting. The ASU provides optional expedients and exceptions for applying GAAP to contract modification and hedge accounting relationships. The guidance is effective March 12, 2020 through December 31, 2022. The Company believes the adoption of this guidance will not have a material impact on the condensed consolidated financial statements. ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (March 2022) In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the separate recognition and measurement guidance for Troubled Debt Restructurings ("TDRs") by creditors. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. This guidance is effective on January 1, 2023, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn May 1, 2022, First Century Bancorp. (“First Century”) terminated the previously announced Agreement and Plan of Merger dated November 1, 2021 (the “Merger Agreement”), by and among the Company, FC Subsidiary, Inc. and First Century. Under the Merger Agreement, the consummation of the merger was to have occurred on or before April 30, 2022. The Board of Governors of the Federal Reserve approved the merger on April 29, 2022, but the parties were precluded from closing immediately thereafter due to statutory waiting periods. The parties were unable to agree on extension terms, and First Century exercised its option to terminate the Merger Agreement. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 expects to adopt this guidance on January 1, 2023 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. 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 adopted the temporary relief issued under the CARES Act, thereby suspending the guidance in ASC 310-40 on accounting for TDRs to loan modifications related to COVID-19. Section 4013 of the CARES Act specifies 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 January 1, 2022 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 Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information. ASU 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (March 2020) In March 2020, FASB issued ASU 2020-04 to ease the potential burden in accounting for the transition away from the LIBORon financial reporting. The ASU provides optional expedients and exceptions for applying GAAP to contract modification and hedge accounting relationships. The guidance is effective March 12, 2020 through December 31, 2022. The Company believes the adoption of this guidance will not have a material impact on the condensed consolidated financial statements. ASU 2022-02 - Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (March 2022) In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the separate recognition and measurement guidance for Troubled Debt Restructurings ("TDRs") by creditors. The elimination of the TDR guidance may be adopted prospectively for loan modifications after adoption or on a modified retrospective basis, which would also apply to loans previously modified, resulting in a cumulative effect adjustment to retained earnings in the period of adoption for changes in the allowance for credit losses. This guidance is effective on January 1, 2023, with early adoption permitted. The Company is currently assessing the impact of the adoption of this guidance. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 and 2021. (dollars in thousands, except per share data) Three Months Ended March 31, 2022 2021 Basic earnings per share Net income $ 11,209 $ 10,450 Weighted-average common shares 9,790,122 9,899,230 Basic earnings per common share $ 1.14 $ 1.06 Diluted earnings per share Net income $ 11,209 $ 10,450 Weighted-average common shares 9,790,122 9,899,230 Dilutive effect of equity compensation 80,272 63,806 Weighted-average common and incremental shares 9,870,394 9,963,036 Diluted earnings per common share (1) $ 1.14 $ 1.05 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021. March 31, 2022 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 45,335 $ — $ (1,488) $ 43,847 Municipal securities 72,420 557 (173) 72,804 Agency mortgage-backed securities - residential 276,392 88 (18,798) 257,682 Agency mortgage-backed securities - commercial 24,815 6 (665) 24,156 Private label mortgage-backed securities - residential 15,090 6 (278) 14,818 Asset-backed securities 5,000 — (14) 4,986 Corporate securities 47,580 299 (884) 46,995 Total available-for-sale $ 486,632 $ 956 $ (22,300) $ 465,288 December 31, 2021 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities available-for-sale U.S. Government-sponsored agencies $ 50,013 $ 164 $ (1,137) $ 49,040 Municipal securities 75,158 1,940 (65) 77,033 Agency mortgage-backed securities - residential 377,928 960 (5,652) 373,236 Agency mortgage-backed securities - commercial 36,024 441 (139) 36,326 Private label mortgage-backed securities - residential 15,902 122 (3) 16,021 Asset-backed securities 5,000 4 — 5,004 Corporate securities 46,482 597 (695) 46,384 Total available-for-sale $ 606,507 $ 4,228 $ (7,691) $ 603,044 |
Schedule Of Held-To-Maturity Securities Reconciliation | March 31, 2022 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 13,981 $ 157 $ (45) $ 14,093 Mortgage-backed securities - residential 95,982 — (3,043) 92,939 Mortgage-backed securities - commercial 5,847 — (427) 5,420 Corporate securities 47,560 338 (379) 47,519 Total held-to-maturity $ 163,370 $ 495 $ (3,894) $ 159,971 December 31, 2021 Amortized Gross Unrealized Fair (in thousands) Cost Gains Losses Value Securities held-to-maturity Municipal securities $ 13,992 $ 717 $ — $ 14,709 Corporate securities 45,573 1,186 — 46,759 Total held-to-maturity $ 59,565 $ 1,903 $ — $ 61,468 |
Available-for-sale Securities | The carrying value of securities at March 31, 2022 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 One to five years $ 34,545 $ 34,808 Five to ten years 56,269 55,141 After ten years 74,521 73,697 165,335 163,646 Agency mortgage-backed securities - residential 276,392 257,682 Agency mortgage-backed securities - commercial 24,815 24,156 Private label mortgage-backed securities - residential 15,090 14,818 Asset-backed securities 5,000 4,986 Total $ 486,632 $ 465,288 |
Held-to-maturity Securities | Held-to-Maturity (in thousands) Amortized Fair One to five years $ 11,172 $ 11,149 Five to ten years 39,233 39,553 After ten years 11,136 10,910 61,541 61,612 Agency mortgage-backed securities - residential 95,982 92,939 Agency mortgage-backed securities - commercial 5,847 5,420 Total $ 163,370 $ 159,971 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 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 March 31, 2022 and December 31, 2021. March 31, 2022 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 $ 4,620 $ (64) $ 39,632 $ (1,424) $ 44,252 $ (1,488) Municipal securities 25,045 (173) — — 25,045 (173) Agency mortgage-backed securities- residential 210,766 (15,256) 36,680 (3,542) 247,446 (18,798) Agency mortgage-backed securities- commercial 19,916 (414) 2,653 (251) 22,569 (665) Private label mortgage-backed securities - residential 13,885 (278) — — 13,885 (278) Asset-backed securities 4,986 (14) — — 4,986 (14) Corporate securities 11,770 (230) 9,346 (654) 21,116 (884) Total $ 290,988 $ (16,429) $ 88,311 $ (5,871) $ 379,299 $ (22,300) March 31, 2022 Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities held-to-maturity Municipal securities $ 4,599 $ (45) $ — $ — $ 4,599 $ (45) Agency mortgage-backed securities - residential 64,135 (2,115) 28,778 (928) 92,913 (3,043) Agency mortgage-backed securities - commercial 5,420 (427) — — 5,420 (427) Corporate securities 11,129 (379) — — 11,129 (379) Total $ 85,283 $ (2,966) $ 28,778 $ (928) $ 114,061 $ (3,894) December 31, 2021 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 $ 2,921 $ (79) $ 40,305 $ (1,058) $ 43,226 $ (1,137) Municipal securities 5,721 (65) — — 5,721 (65) Agency mortgage-backed securities - residential 287,820 (3,694) 40,840 (1,958) 328,660 (5,652) Agency mortgage-backed securities - commercial 3,944 (139) — — 3,944 (139) Private label mortgage-backed securities 374 (3) — — 374 (3) Asset-backed securities — — — — — — Corporate securities 11,813 (187) 9,491 (508) 21,304 (695) Total $ 312,593 $ (4,167) $ 90,636 $ (3,524) $ 403,229 $ (7,691) |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss, included in shareholders' equity, for the three months ended March 31, 2022 and 2021, respectively, are presented in the table below. (in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total Balance, January 1, 2022 $ (2,555) $ — $ (8,484) $ (11,039) Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax (17,881) (5,402) 9,334 (13,949) Reclassifications from accumulated other comprehensive (loss) income to earnings before tax — 119 — 119 Other comprehensive (loss) gain before tax (17,881) (5,283) 9,334 (13,830) Income tax (benefit) provision (4,077) (1,249) 3,318 (2,008) Other comprehensive (loss) income - net of tax (13,804) (4,034) 6,016 (11,822) Balance, March 31, 2022 $ (16,359) $ (4,034) $ (2,468) $ (22,861) Balance, January 1, 2021 $ 468 $ — $ (17,664) $ (17,196) Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax (2,195) — 6,280 4,085 Other comprehensive (loss) gain before tax (2,195) — 6,280 4,085 Income tax (benefit) provision (508) — 1,317 809 Other comprehensive (loss) income - net of tax (1,687) — 4,963 3,276 Balance, March 31, 2021 $ (1,219) $ — $ (12,701) $ (13,920) Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Affected Line Item in the Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Reclassifications from accumulated other comprehensive loss to earnings before tax $ (119) — Interest income Total amount reclassified before tax (119) — Income before income taxes Tax benefit (27) — Income tax provision Total reclassifications from accumulated other comprehensive loss $ (92) $ — Net income |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loan balances as of March 31, 2022 and December 31, 2021 are summarized in the table below. Categories of loans include: (in thousands) March 31, 2022 December 31, 2021 Commercial loans Commercial and industrial $ 99,808 $ 96,008 Owner-occupied commercial real estate 56,752 66,732 Investor commercial real estate 34,627 28,019 Construction 149,662 136,619 Single tenant lease financing 852,519 865,854 Public finance 587,817 592,665 Healthcare finance 354,574 387,852 Small business lending 97,040 108,666 Franchise finance 107,246 81,448 Total commercial loans 2,340,045 2,363,863 Consumer loans Residential mortgage 191,153 186,770 Home equity 18,100 17,665 Other consumer loans 270,330 265,478 Tax refund advance loans 9,177 — Total consumer loans 488,760 469,913 Total commercial and consumer loans 2,828,805 2,833,776 Net deferred loan origination fees/costs and premiums/discounts on purchased loans and other (1) 51,975 53,886 Total loans 2,880,780 2,887,662 Allowance for loan losses (28,251) (27,841) Net loans $ 2,852,529 $ 2,859,821 |
Allowance for Credit Losses on Financing Receivables | The following tables present changes in the balance of the ALLL during the three months ended March 31, 2022 and 2021. (in thousands) Three Months Ended March 31, 2022 Allowance for loan losses: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,891 $ 88 $ — $ — $ 1,979 Owner-occupied commercial real estate 742 (116) — — 626 Investor commercial real estate 328 77 — — 405 Construction 1,612 154 — — 1,766 Single tenant lease financing 10,385 (1,645) — 1,231 9,971 Public finance 1,776 7 — — 1,783 Healthcare finance 5,940 (430) — — 5,510 Small business lending 1,387 111 (80) 17 1,435 Franchise finance 1,083 354 — 1,437 Residential mortgage 643 87 — 1 731 Home equity 64 (1) — 2 65 Other consumer loans 1,990 263 (163) 99 2,189 Tax refund advance loans — 1842 (1488) — 354 Total $ 27,841 $ 791 $ (1,731) $ 1,350 $ 28,251 (in thousands) Three Months Ended March 31, 2021 Allowance for loan losses: Balance, Beginning of Period (Credit) Provision Charged to Expense Losses Recoveries Balance, Commercial and industrial $ 1,146 $ 434 $ — $ 82 $ 1,662 Owner-occupied commercial real estate 1,082 (53) — — 1,029 Investor commercial real estate 155 14 — — 169 Construction 1,192 228 — — 1,420 Single tenant lease financing 12,990 188 — — 13,178 Public finance 1,732 16 — — 1,748 Healthcare finance 7,485 270 — — 7,755 Small business lending 628 147 (79) 4 700 Residential mortgage 519 77 — 5 601 Home equity 48 58 (51) 2 57 Other consumer loans 2,507 (103) (181) 100 2,323 Total $ 29,484 $ 1,276 $ (311) $ 193 $ 30,642 |
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 March 31, 2022 and December 31, 2021. (in thousands) Loans Allowance for Loan Losses March 31, 2022 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 99,198 $ 610 $ 99,808 $ 1,529 $ 450 $ 1,979 Owner-occupied commercial real estate 53,485 3,267 56,752 626 — 626 Investor commercial real estate 34,627 — 34,627 405 — 405 Construction 149,662 — 149,662 1,766 — 1,766 Single tenant lease financing 851,427 1,092 852,519 9,876 95 9,971 Public finance 587,817 — 587,817 1,783 — 1,783 Healthcare finance 353,666 908 354,574 4,987 523 5,510 Small business lending (1) 94,525 2,515 97,040 1,042 393 1,435 Franchise finance 107,246 — 107,246 1,437 — 1,437 Residential mortgage 187,528 3,625 191,153 731 — 731 Home equity 18,086 14 18,100 65 — 65 Other consumer 270,317 13 270,330 2,189 — 2,189 Tax refund advance loans 9,177 — 9,177 354 — 354 Total $ 2,816,761 $ 12,044 $ 2,828,805 $ 26,790 $ 1,461 $ 28,251 1 Balance of loans individually evaluated for impairment are guaranteed by the U.S. government. (in thousands) Loans Allowance for Loan Losses December 31, 2021 Ending Balance: Ending Balance: Ending Balance Ending Balance: Ending Balance: Ending Balance Commercial and industrial $ 95,364 $ 644 $ 96,008 $ 1,441 $ 450 $ 1,891 Owner-occupied commercial real estate 63,387 3,345 66,732 742 — 742 Investor commercial real estate 28,019 — 28,019 328 — 328 Construction 136,619 — 136,619 1,612 — 1,612 Single tenant lease financing 864,754 1,100 865,854 10,290 95 10,385 Public finance 592,665 — 592,665 1,776 — 1,776 Healthcare finance 386,926 926 387,852 5,417 523 5,940 Small business lending (1) 106,682 1,984 108,666 994 393 1,387 Franchise finance 81,448 — 81,448 1,083 — 1,083 Residential mortgage 183,852 2,918 186,770 643 — 643 Home equity 17,651 14 17,665 64 — 64 Other consumer 265,469 9 265,478 1,990 — 1,990 Total $ 2,822,836 $ 10,940 $ 2,833,776 $ 26,380 $ 1,461 $ 27,841 1 Balance of loans individually evaluated for impairment are guaranteed by the U.S. government. |
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 March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 85,340 $ 13,858 $ 610 $ 99,808 Owner-occupied commercial real estate 49,520 3,965 3,267 56,752 Investor commercial real estate 34,627 — — 34,627 Construction 136,466 13,196 — 149,662 Single tenant lease financing 846,543 4,884 1,092 852,519 Public finance 585,387 2,430 — 587,817 Healthcare finance 353,090 576 908 354,574 Small business lending (1) 87,358 7,167 2,515 97,040 Franchise finance 107,246 — — 107,246 Total commercial loans $ 2,285,577 $ 46,076 $ 8,392 $ 2,340,045 1 Balance in “Substandard” is guaranteed by the U.S. government. March 31, 2022 (in thousands) Performing Nonaccrual Total Residential mortgage $ 189,946 $ 1,207 $ 191,153 Home equity 18,086 14 18,100 Other consumer 270,317 13 270,330 Tax refund advance loans 9,177 — 9,177 Total consumer loans $ 487,526 $ 1,234 $ 488,760 December 31, 2021 (in thousands) Pass Special Mention Substandard Total Commercial and industrial $ 82,412 $ 12,952 $ 644 $ 96,008 Owner-occupied commercial real estate 59,369 4,018 3,345 66,732 Investor commercial real estate 28,019 — — 28,019 Construction 124,578 12,041 — 136,619 Single tenant lease financing 859,612 5,142 1,100 865,854 Public finance 591,630 1,035 — 592,665 Healthcare finance 386,337 589 926 387,852 Small business lending (1) 99,250 7,432 1,983 108,666 Franchise finance 81,448 — — 81,448 Total commercial loans $ 2,312,655 $ 43,209 $ 7,998 $ 2,363,863 1 Balance in “Substandard” is guaranteed by the U.S. government. December 31, 2021 (in thousands) Performing Nonaccrual Total Residential mortgage $ 185,544 $ 1,226 $ 186,770 Home equity 17,651 14 17,665 Other consumer 265,469 9 265,478 Total consumer loans $ 468,664 $ 1,249 $ 469,913 |
Past Due Financing Receivables | The following tables present the Company’s loan portfolio delinquency analysis as of March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ — $ — $ — $ — $ 99,808 $ 99,808 $ 610 $ — Owner-occupied commercial real estate — — — — 56,752 56,752 — — Investor commercial real estate — — — — 34,627 34,627 3,267 — Construction — — — — 149,662 149,662 — — Single tenant lease financing — — — — 852,519 852,519 1,092 — Public finance — — — — 587,817 587,817 — — Healthcare finance — — — — 354,574 354,574 — — Small business lending (1) 515 — 129 644 96,396 97,040 881 — Franchise finance — — — — 107,246 107,246 — — Residential mortgage — 77 106 183 190,970 191,153 1,207 — Home equity — — — — 18,100 18,100 14 — Other consumer 69 64 — 133 270,197 270,330 13 — Tax refund advance loans — — — — 9,177 9,177 — — Total $ 584 $ 141 $ 235 $ 960 $ 2,827,845 $ 2,828,805 $ 7,084 $ — 1 Balance in “Total Past Due” is guaranteed by the U.S. government. December 31, 2021 (in thousands) 30-59 60-89 90 Days Total Current Total Non- Total Loans Commercial and industrial $ — $ — $ — $ — $ 96,008 $ 96,008 $ 674 $ — Owner-occupied commercial real estate — — — — 66,732 66,732 — — Investor commercial real estate — — — — 28,019 28,019 3,419 — Construction — — — — 136,619 136,619 — — Single tenant lease financing — — — — 865,854 865,854 1,100 — Public finance — — — — 592,665 592,665 — — Healthcare finance — — — — 387,852 387,852 — — Small business lending (1) — — 657 657 108,009 108,666 959 — Franchising Finance — — — — 81,448 81,448 — — Residential mortgage 51 226 106 383 186,387 186,770 1,226 — Home equity — — — — 17,665 17,665 14 — Other consumer 68 18 — 86 265,392 265,478 9 — Total $ 119 $ 244 $ 763 $ 1,126 $ 2,832,650 $ 2,833,776 $ 7,401 $ — 1 Balance in “Total Past Due” is guaranteed by the U.S. government. |
Impaired Financing Receivables | The following table presents the Company’s impaired loans as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (in thousands) Recorded Unpaid Specific Recorded Unpaid Specific Loans without a specific valuation allowance Owner-occupied commercial real estate $ 3,267 $ 3,453 $ — $ 3,345 $ 3,466 $ — Small business lending (1) 881 1,079 — 959 1,193 — Residential mortgage 3,625 3,780 — 2,918 3,063 — Home equity 14 15 — 14 15 — Other consumer loans 13 55 — 9 44 — Total 7,800 8,382 — 7,245 7,781 — Loans with a specific valuation allowance Commercial and industrial 610 652 450 644 677 450 Single tenant lease financing 1,092 1,116 95 1,100 1,123 95 Healthcare finance 908 908 523 926 926 523 Small business lending (1) 1,634 1,634 393 1,025 1,025 393 Total 4,244 4,310 1,461 3,695 3,751 1,461 Total impaired loans $ 12,044 $ 12,692 $ 1,461 $ 10,940 $ 11,532 $ 1,461 1 Balance of loans individually evaluated for impairment are guaranteed by the U.S. government. The table below presents average balances and interest income recognized for impaired loans during the three months ended March 31, 2022 and 2021. Three Months Ended March 31, 2022 March 31, 2021 (in thousands) Average Interest Average Interest Loans without a specific valuation allowance Commercial and industrial $ — $ — $ 517 $ 9 Owner-occupied commercial real estate 3,307 — 2,440 — Single tenant lease financing — — 151 5 Healthcare finance — — 1,008 — Small business lending (1) 830 — 577 — Residential mortgage 3,273 8 1,736 4 Home equity 14 — 11 — Other consumer 10 — 37 — Total 7,434 8 6,477 18 Loans with a specific valuation allowance Commercial and industrial 627 — 501 — Single tenant lease financing 1,094 — 7,148 — Healthcare finance 918 17 494 12 Small business lending (1) 1,333 — — — Total 3,972 17 8,143 12 Total impaired loans $ 11,406 $ 25 $ 14,620 $ 30 1 Balance is guaranteed by the U.S. government. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following table summarizes premises and equipment at March 31, 2022 and December 31, 2021. (in thousands) March 31, December 31, Land $ 5,598 $ — Construction in process — 57,469 Right of use leased asset 160 208 Building and improvements 51,902 1,090 Furniture and equipment 18,666 7,800 Less: accumulated depreciation (7,694) (6,725) Total $ 68,632 $ 59,842 |
Servicing Asset (Tables)
Servicing Asset (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022 and 2021 are shown in the table below. Three Months Ended (in thousands) March 31, 2022 March 31, 2021 Balance, beginning of period $ 4,702 $ 3,569 Additions: Originated and purchased servicing 844 403 Subtractions Paydowns: (256) (170) Changes in fair value due to changes in valuation inputs or assumptions used in (41) 15 Loan servicing asset revaluation $ (297) $ (155) Balance, end of period $ 5,249 $ 3,817 |
Schedule Of Unpaid Principal Balances Of Loans Serviced For Others | The unpaid principal balances of these loans serviced for others as of March 31, 2022 and December 31, 2021 are shown in the table below. (in thousands) March 31, 2022 December 31, 2021 Loan portfolios serviced for: SBA guaranteed loans $ 254,545 $ 230,514 Total $ 254,545 $ 230,514 |
Subordinated Debt (Tables)
Subordinated Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Borrowing | March 31, 2022 December 31, 2021 (in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs 2029 Notes $ 37,000 $ (1,139) $ 37,000 $ (1,178) 2030 Notes 10,000 (201) 10,000 (208) 2031 Notes 60,000 (1,354) 60,000 (1,383) Total $ 107,000 $ (2,694) $ 107,000 $ (2,769) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Nonvested Restricted Stock Shares Activity | The following table summarizes the status of the 2013 Plan awards as of March 31, 2022 , and activity for the three months ended March 31, 2022. 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 Unvested at December 31, 2021 112,822 $ 28.18 — $ — — $ — Granted 41,381 46.71 9,954 52.64 1 52.64 Vested (23,256) 24.62 (2,502) 52.64 (1) 52.64 Unvested at March 31, 2022 130,947 $ 34.67 7,452 $ 52.64 — $ — |
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 three months ended March 31, 2022. Deferred Stock Rights Outstanding, beginning of period 84,536 Granted 107 Exercised — Outstanding, end of period 84,643 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 43,847 $ — $ 43,847 $ — Municipal securities 72,804 — 72,804 — Agency mortgage-backed securities - residential 257,682 — 257,682 — Agency mortgage-backed securities - commercial 24,156 — 24,156 — Private label mortgage-backed securities - residential 14,818 — 14,818 — Asset-backed securities 4,986 — 4,986 — Corporate securities 46,995 — 46,995 — Total available-for-sale securities $ 465,288 $ — $ 465,288 $ — Loans held-for-sale (mandatory pricing agreements) 17,364 — 17,364 — Servicing asset 5,249 — — 5,249 Interest rate swap agreements (2,917) — (2,917) — Forward contracts 1,072 1,072 — — IRLCs (88) — — (88) December 31, 2021 (in thousands) Fair Quoted Prices Significant Significant U.S. Government-sponsored agencies $ 49,040 $ — $ 49,040 $ — Municipal securities 77,033 — 77,033 — Agency mortgage-backed securities - residential 373,236 — 373,236 — Agency mortgage-backed securities - commercial 36,326 36,326 Private label mortgage-backed securities - residential 16,021 — 16,021 — Asset-backed securities 5,004 — 5,004 — Corporate securities 46,384 — 46,384 — Total available-for-sale securities $ 603,044 $ — $ 603,044 $ — Loans held-for-sale (mandatory pricing agreements) 23,233 — 23,233 — Servicing asset 4,702 — — 4,702 Interest rate swap agreements (14,271) — (14,271) — Forward contracts (30) (30) — — IRLCs 718 — — 718 |
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 months ended March 31, 2022 and 2021. Three Months Ended (in thousands) Servicing Asset Interest Rate Lock Balance, January 1, 2022 $ 4,702 $ 718 Total realized gains Additions 844 — Paydowns (256) — Change in fair value (41) (806) Balance, March 31, 2022 $ 5,249 $ (88) Balance as of January 1, 2021 $ 3,569 $ 3,361 Total realized gains Additions 403 — Paydowns (170) — Change in fair value 15 (2,251) Balance, March 31, 2021 $ 3,817 $ 1,110 |
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 March 31, 2022 and December 31, 2021. December 31, 2021 (in thousands) Fair Value Measurements Using Fair Quoted Prices Significant Significant Impaired loans $ 1,228 $ — $ — $ 1,228 |
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 Impaired loans $ 2,164 Fair value of collateral Discount for type of property and current market conditions 10% 10% IRLCs (88) Discounted cash flow Loan closing rates 45% - 100% 87% Servicing asset 5,249 Discounted cash flow Prepayment speeds 0% - 25% 10% 13.3% 10% (dollars in thousands) Fair Value at Valuation Significant Unobservable Range Weighted-Average Range Impaired loans $ 1,228 Fair value of collateral Discount for type of property and current market conditions 0% - 35% 10.1% IRLCs 718 Discounted cash flow Loan closing rates 42% - 100% 89% Servicing asset 4,702 Discounted cash flow Prepayment speeds Discount rate 0% - 25% 10% 12.5% 10% |
Fair Value, by Balance Sheet Grouping | The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021. March 31, 2022 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 517,549 $ 517,549 $ 517,549 $ — $ — Securities held-to-maturity 163,370 159,971 — 159,971 — Loans held-for-sale (best efforts pricing agreements) 16,627 16,627 — 16,627 — Net loans 2,852,529 2,750,399 — — 2,750,399 Accrued interest receivable 15,263 15,263 15,263 — — Federal Home Loan Bank of Indianapolis stock 25,219 25,219 — 25,219 — Deposits 3,217,979 3,164,027 1,996,097 — 1,167,930 Advances from Federal Home Loan Bank 514,923 512,307 — 512,307 — Subordinated debt 104,306 108,320 38,184 70,136 — Accrued interest payable 1,532 1,532 1,532 — — December 31, 2021 (in thousands) Carrying Fair Value Quoted Prices Significant Significant Cash and cash equivalents $ 442,960 $ 442,960 $ 442,960 $ — $ — Securities held-to-maturity 59,565 61,468 — 61,468 — Loans held-for-sale (best efforts pricing agreements) 24,512 24,512 — 24,512 — Net loans 2,859,821 2,880,024 — — 2,880,024 Accrued interest receivable 16,037 16,037 16,037 — — Federal Home Loan Bank of Indianapolis stock 25,650 25,650 — 25,650 — Deposits 3,178,959 3,190,000 1,909,432 — 1,280,568 Advances from Federal Home Loan Bank 514,922 526,143 — 526,143 — Subordinated debt 104,231 108,788 38,643 70,145 — Accrued interest payable 2,018 2,018 2,018 — — |
Mortgage Banking Activities (Ta
Mortgage Banking Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Banking [Abstract] | |
Schedule of Participating Mortgage Loans | The following table presents the components of income from mortgage banking activities for the three months ended March 31, 2022 and 2021. Three Months Ended March 31, (in thousands) 2022 2021 Gain on loans sold $ 2,062 $ 7,499 Gain (loss) resulting from the change in fair value of loans held-for-sale (489) (862) Gain (loss) resulting from the change in fair value of derivatives 300 (887) Net revenue from mortgage banking activities $ 1,873 $ 5,750 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021. (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 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Securities available-for-sale (1) $ 72,416 $ 75,156 $ (292) $ 1,729 (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. The designated hedged items were $50.0 million at both March 31, 2022 and December 31, 2021. |
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 March 31 , 2022 and December 31, 2021, identified by the underlying interest rate-sensitive instruments. (dollars in thousands) March 31, 2022 Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio Instruments Associated With Fair Value Receive Pay Securities available-for-sale $ 50,000 2.6 $ 288 3-month LIBOR 2.33 % Total at March 31, 2022 $ 50,000 2.6 $ 288 3-month LIBOR 2.33 % (dollars in thousands) December 31, 2021 Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio Instruments Associated With Fair Value Receive Pay Securities available-for-sale $ 50,000 2.8 $ (1,731) 3-month LIBOR 2.33 % Total at December 31, 2021 $ 50,000 2.8 $ (1,731) 3-month LIBOR 2.33 % |
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 March 31, 2022 and December 31, 2021. (dollars in thousands) March 31, 2022 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 4.8 $ (2,132) 3-month LIBOR 2.88 % Interest rate swaps 60,000 1.4 (648) 1-month LIBOR 2.88 % Interest rate swaps 40,000 2.2 (425) Fed Funds Effective 2.78 % (dollars in thousands) December 31, 2021 Notional Weighted- Average Remaining Maturity Weighted-Average Ratio Cash Flow Hedges Value (years) Fair Value Receive Pay Interest rate swaps $ 110,000 5.1 $ (8,560) 3-month LIBOR 2.88 % Interest rate swaps 100,000 2.0 (3,980) 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 March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (in thousands) Notional Fair Notional Fair Asset Derivatives Derivatives not designated as hedging instruments IRLCs $ — $ — $ 62,789 $ 718 Forward contracts 56,750 1,072 — — Total contracts $ 56,750 $ 1,072 $ 62,789 $ 718 Liability Derivatives Derivatives designated as hedging instruments Interest rate swaps associated with securities available-for-sale $ 50,000 $ 288 $ 50,000 $ (1,731) Interest rate swaps associated with liabilities 210,000 (3,205) 210,000 (12,540) Derivatives not designated as hedging instruments Forward contracts — — 72,750 (30) IRLCs 63,378 (88) — — Total contracts $ 323,378 $ (3,005) $ 332,750 $ (14,301) |
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 months ended March 31, 2022 and 2021. Amount of Gain Recognized in Other Comprehensive Income (Loss) in The Three Months Ended (in thousands) March 31, 2022 March 31, 2021 Interest rate swap agreements $ 9,334 $ 6,280 |
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 months ended March 31, 2022 and 2021. Amount of Gain / (Loss) Recognized in the Three Months Ended (in thousands) March 31, 2022 March 31, 2021 Asset Derivatives Derivatives not designated as hedging instruments Forward contracts 1,102 1,361 Liability Derivatives Derivatives not designated as hedging instruments IRLCs $ (802) $ (2,251) |
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 months ended March 31, 2022 and 2021. (in thousands) Line item in the condensed consolidated statements of income Three Months Ended March 31, 2022 March 31, 2021 Interest income Securities - taxable — (253) Securities - non-taxable (260) (266) Total interest income (260) (519) Interest expense Deposits 670 678 Other borrowed funds 696 730 Total interest expense 1,366 1,408 Net interest income $ (1,626) $ (1,927) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss, included in shareholders' equity, for the three months ended March 31, 2022 and 2021, respectively, are presented in the table below. (in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total Balance, January 1, 2022 $ (2,555) $ — $ (8,484) $ (11,039) Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax (17,881) (5,402) 9,334 (13,949) Reclassifications from accumulated other comprehensive (loss) income to earnings before tax — 119 — 119 Other comprehensive (loss) gain before tax (17,881) (5,283) 9,334 (13,830) Income tax (benefit) provision (4,077) (1,249) 3,318 (2,008) Other comprehensive (loss) income - net of tax (13,804) (4,034) 6,016 (11,822) Balance, March 31, 2022 $ (16,359) $ (4,034) $ (2,468) $ (22,861) Balance, January 1, 2021 $ 468 $ — $ (17,664) $ (17,196) Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax (2,195) — 6,280 4,085 Other comprehensive (loss) gain before tax (2,195) — 6,280 4,085 Income tax (benefit) provision (508) — 1,317 809 Other comprehensive (loss) income - net of tax (1,687) — 4,963 3,276 Balance, March 31, 2021 $ (1,219) $ — $ (12,701) $ (13,920) Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Affected Line Item in the Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Reclassifications from accumulated other comprehensive loss to earnings before tax $ (119) — Interest income Total amount reclassified before tax (119) — Income before income taxes Tax benefit (27) — Income tax provision Total reclassifications from accumulated other comprehensive loss $ (92) $ — Net income |
Basis of Presentation (Details)
Basis of Presentation (Details) | Mar. 31, 2022subsidiary |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic earnings per share | ||
Net income | $ 11,209 | $ 10,450 |
Weighted-average common shares (in shares) | 9,790,122,000 | 9,899,230,000 |
Basic earnings per common share ( in dollars per share) | $ 1.14 | $ 1.06 |
Diluted earnings per share | ||
Net income | $ 11,209 | $ 10,450 |
Weighted-average common shares (in shares) | 9,790,122,000 | 9,899,230,000 |
Dilutive effect of equity compensation (in shares) | 80,272,000 | 63,806,000 |
Weighted-average common and incremental shares (in shares) | 9,870,394,000 | 9,963,036,000 |
Diluted earnings per common share (in dollars per share) | $ 1.14 | $ 1.05 |
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 661 | 0 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Securities [Abstract] | ||
Amortized cost | $ 486,632 | $ 606,507 |
Gross Unrealized Gains | 956 | 4,228 |
Gross Unrealized Losses | (22,300) | (7,691) |
Fair Value | 465,288 | 603,044 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 163,370 | 59,565 |
Held-to-maturity securities, Gross Unrealized Gains | 495 | 1,903 |
Held-to-maturity securities, Gross Unrealized Losses | (3,894) | 0 |
Held-to-maturity, at fair value | 159,971 | 61,468 |
Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 465,288 | 603,044 |
U.S. Government-sponsored agencies | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 45,335 | 50,013 |
Gross Unrealized Gains | 0 | 164 |
Gross Unrealized Losses | (1,488) | (1,137) |
Fair Value | 43,847 | 49,040 |
U.S. Government-sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 43,847 | 49,040 |
Municipal securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 72,420 | 75,158 |
Gross Unrealized Gains | 557 | 1,940 |
Gross Unrealized Losses | (173) | (65) |
Fair Value | 72,804 | 77,033 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 13,981 | 13,992 |
Held-to-maturity securities, Gross Unrealized Gains | 157 | 717 |
Held-to-maturity securities, Gross Unrealized Losses | (45) | 0 |
Held-to-maturity, at fair value | 14,093 | 14,709 |
Municipal securities | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 72,804 | 77,033 |
Agency mortgage-backed securities - residential | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 276,392 | 377,928 |
Gross Unrealized Gains | 88 | 960 |
Gross Unrealized Losses | (18,798) | (5,652) |
Fair Value | 257,682 | 373,236 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 95,982 | |
Held-to-maturity, at fair value | 92,939 | |
Agency mortgage-backed securities - residential | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 373,236 | |
Agency mortgage-backed securities - commercial | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 24,815 | 36,024 |
Gross Unrealized Gains | 6 | 441 |
Gross Unrealized Losses | (665) | (139) |
Fair Value | 24,156 | 36,326 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 5,847 | |
Held-to-maturity securities, Gross Unrealized Gains | 0 | |
Held-to-maturity securities, Gross Unrealized Losses | (427) | |
Held-to-maturity, at fair value | 5,420 | |
Agency mortgage-backed securities - commercial | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 24,156 | 36,326 |
Private label mortgage-backed securities - residential | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 15,090 | 15,902 |
Gross Unrealized Gains | 6 | 122 |
Gross Unrealized Losses | (278) | (3) |
Fair Value | 14,818 | 16,021 |
Asset-backed securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 5,000 | 5,000 |
Gross Unrealized Gains | 0 | 4 |
Gross Unrealized Losses | (14) | 0 |
Fair Value | 4,986 | 5,004 |
Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 4,986 | 5,004 |
Corporate securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized cost | 47,580 | 46,482 |
Gross Unrealized Gains | 299 | 597 |
Gross Unrealized Losses | (884) | (695) |
Fair Value | 46,995 | 46,384 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 47,560 | 45,573 |
Held-to-maturity securities, Gross Unrealized Gains | 338 | 1,186 |
Held-to-maturity securities, Gross Unrealized Losses | (379) | 0 |
Held-to-maturity, at fair value | 47,519 | 46,759 |
Corporate securities | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale Securities [Abstract] | ||
Fair Value | 46,995 | $ 46,384 |
Mortgage-backed securities - residential | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Held-to-maturity securities, amortized cost | 95,982 | |
Held-to-maturity securities, Gross Unrealized Gains | 0 | |
Held-to-maturity securities, Gross Unrealized Losses | (3,043) | |
Held-to-maturity, at fair value | $ 92,939 |
Securities (Details Textual)
Securities (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)security | Dec. 31, 2020 | Dec. 31, 2021USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale securities, gross realized gain (loss) | $ 0 | ||
Continuous unrealized loss position, fair value | $ 493,400,000 | $ 403,200,000 | |
Continuous unrealized loss position, fair value (as a percent) | 79.00% | 61.00% | |
Number of securities in portfolio | security | 437 | ||
Securities in unrealized loss position | security | 326 | ||
Fair value of available for sale mortgage back securities transferred to held to maturity | $ 96,200,000 | ||
Related after-tax unrealized loss | $ 4,100,000 |
Securities - Carrying Value (De
Securities - Carrying Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Amortized Cost | |||
One to five years | $ 34,545 | ||
Five to ten years | 56,269 | ||
After ten years | 74,521 | ||
Amortized Cost | 165,335 | ||
Amortized cost | 486,632 | $ 606,507 | |
Held-to-maturity securities, One to five years | 11,172 | ||
Held-to-maturity securities, Five to ten years | 39,233 | ||
Held-to-maturity securities, After ten years | 11,136 | ||
Held-to-maturity securities, Amortized Cost | $ 61,541 | ||
Debt Securities, Held-to-maturity | 163,370 | 59,565 | |
Fair Value | |||
One to five years | 34,808 | ||
Five to ten years | 55,141 | ||
After ten years | 73,697 | ||
Fair Value | 163,646 | ||
Fair Value | 465,288 | 603,044 | |
Held-to-maturity securities, One to five years | 11,149 | ||
Held-to-maturity securities, Five to ten years | 39,553 | ||
Held-to-maturity securities, After ten years | 10,910 | ||
Held-to-maturity securities, Fair Value | $ 61,612 | ||
Held-to-maturity, at fair value | 159,971 | 61,468 | |
Agency mortgage-backed securities - residential | |||
Amortized Cost | |||
Amortized cost | 276,392 | 377,928 | |
Debt Securities, Held-to-maturity | 95,982 | ||
Fair Value | |||
Fair Value | 257,682 | 373,236 | |
Held-to-maturity, at fair value | 92,939 | ||
Private label mortgage-backed securities - residential | |||
Amortized Cost | |||
Amortized cost | 15,090 | 15,902 | |
Fair Value | |||
Fair Value | 14,818 | 16,021 | |
Asset-backed securities | |||
Amortized Cost | |||
Amortized cost | 5,000 | 5,000 | |
Fair Value | |||
Fair Value | $ 4,986 | $ 5,004 |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Less Than 12 Months, Fair Value | $ 290,988 | $ 312,593 |
Less Than 12 Months, Unrealized Losses | (16,429) | (4,167) |
12 Months or Longer, Fair Value | 88,311 | 90,636 |
12 Months or Longer, Unrealized Losses | (5,871) | (3,524) |
Total, Fair Value | 379,299 | 403,229 |
Total, Unrealized Losses | (22,300) | (7,691) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 85,283 | |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (2,966) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 28,778 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | (928) | |
Held-to-maturity securities, Total, Fair Value | 114,061 | |
Held-to-maturity securities, Total, Unrealized Losses | (3,894) | |
U.S. Government-sponsored agencies | ||
Less Than 12 Months, Fair Value | 4,620 | 2,921 |
Less Than 12 Months, Unrealized Losses | (64) | (79) |
12 Months or Longer, Fair Value | 39,632 | 40,305 |
12 Months or Longer, Unrealized Losses | (1,424) | (1,058) |
Total, Fair Value | 44,252 | 43,226 |
Total, Unrealized Losses | (1,488) | (1,137) |
Municipal securities | ||
Less Than 12 Months, Fair Value | 25,045 | 5,721 |
Less Than 12 Months, Unrealized Losses | (173) | (65) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 25,045 | 5,721 |
Total, Unrealized Losses | (173) | (65) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 4,599 | |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (45) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | 0 | |
Held-to-maturity securities, Total, Fair Value | 4,599 | |
Held-to-maturity securities, Total, Unrealized Losses | (45) | |
Private label mortgage-backed securities - residential | ||
Less Than 12 Months, Fair Value | 13,885 | 374 |
Less Than 12 Months, Unrealized Losses | (278) | (3) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 13,885 | 374 |
Total, Unrealized Losses | (278) | (3) |
Asset-backed securities | ||
Less Than 12 Months, Fair Value | 4,986 | 0 |
Less Than 12 Months, Unrealized Losses | (14) | 0 |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 4,986 | 0 |
Total, Unrealized Losses | (14) | 0 |
Corporate securities | ||
Less Than 12 Months, Fair Value | 11,770 | 11,813 |
Less Than 12 Months, Unrealized Losses | (230) | (187) |
12 Months or Longer, Fair Value | 9,346 | 9,491 |
12 Months or Longer, Unrealized Losses | (654) | (508) |
Total, Fair Value | 21,116 | 21,304 |
Total, Unrealized Losses | (884) | (695) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 11,129 | |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (379) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | 0 | |
Held-to-maturity securities, Total, Fair Value | 11,129 | |
Held-to-maturity securities, Total, Unrealized Losses | (379) | |
Mortgage-backed securities - residential | ||
Less Than 12 Months, Fair Value | 210,766 | 287,820 |
Less Than 12 Months, Unrealized Losses | (15,256) | (3,694) |
12 Months or Longer, Fair Value | 36,680 | 40,840 |
12 Months or Longer, Unrealized Losses | (3,542) | (1,958) |
Total, Fair Value | 247,446 | 328,660 |
Total, Unrealized Losses | (18,798) | (5,652) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 64,135 | |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (2,115) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 28,778 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | (928) | |
Held-to-maturity securities, Total, Fair Value | 92,913 | |
Held-to-maturity securities, Total, Unrealized Losses | (3,043) | |
Agency mortgage-backed securities - commercial | ||
Less Than 12 Months, Fair Value | 19,916 | 3,944 |
Less Than 12 Months, Unrealized Losses | (414) | (139) |
12 Months or Longer, Fair Value | 2,653 | 0 |
12 Months or Longer, Unrealized Losses | (251) | 0 |
Total, Fair Value | 22,569 | 3,944 |
Total, Unrealized Losses | (665) | $ (139) |
Held-to-maturity securities, Less Than 12 Months, Fair Value | 5,420 | |
Held-to-maturity securities, Less Than 12 Months, Unrealized Losses | (427) | |
Held-to-maturity securities, 12 Months or Longer, Fair Value | 0 | |
Held-to-maturity securities, 12 Months or Longer, Unrealized Losses | 0 | |
Held-to-maturity securities, Total, Fair Value | 5,420 | |
Held-to-maturity securities, Total, Unrealized Losses | $ (427) |
Loans - Categories (Details)
Loans - Categories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | $ 2,828,805 | $ 2,833,776 | ||
Net deferred loan origination costs and premiums and discounts on purchased loans and other | 51,975 | 53,886 | ||
Total loans | 2,880,780 | 2,887,662 | ||
Allowance for loan losses | (28,251) | (27,841) | $ (30,642) | $ (29,484) |
Net loans | 2,852,529 | 2,859,821 | ||
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (1,979) | (1,891) | (1,662) | (1,146) |
Owner-occupied commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (626) | (742) | (1,029) | (1,082) |
Investor commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (405) | (328) | (169) | (155) |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (1,766) | (1,612) | (1,420) | (1,192) |
Single tenant lease financing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (9,971) | (10,385) | (13,178) | (12,990) |
Public finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (1,783) | (1,776) | (1,748) | (1,732) |
Healthcare finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (5,510) | (5,940) | (7,755) | (7,485) |
Franchise finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (1,437) | (1,083) | ||
Small business lending | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (1,435) | (1,387) | (700) | (628) |
Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (731) | (643) | (601) | (519) |
Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (65) | (64) | (57) | (48) |
Other consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (2,189) | (1,990) | $ (2,323) | $ (2,507) |
Tax Refund Advance Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | (354) | 0 | ||
Commercial Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 2,340,045 | 2,363,863 | ||
Commercial Portfolio Segment | Franchise finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 107,246 | 81,448 | ||
Commercial Portfolio Segment | Small business lending | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 108,666 | |||
Consumer Portfolio | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 488,760 | 469,913 | ||
Consumer Portfolio | Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 191,153 | 186,770 | ||
Consumer Portfolio | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 18,100 | 17,665 | ||
Consumer Portfolio | Other consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 270,330 | 265,478 | ||
Consumer Portfolio | Tax Refund Advance Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | 9,177 | 0 | ||
Interest rate swaps | Commercial Portfolio Segment | Public finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total commercial loans | $ 36,400 | $ 37,500 |
Loans - Change in the Balances
Loans - Change in the Balances of the ALLL (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for loan losses: | ||
Balance, beginning of period | $ 27,841 | $ 29,484 |
Provision (credit) charged to expense | 791 | 1,276 |
Losses charged off | (1,731) | (311) |
Recoveries | 1,350 | 193 |
Balance, end of period | 28,251 | 30,642 |
Commercial and industrial | ||
Allowance for loan losses: | ||
Balance, beginning of period | 1,891 | 1,146 |
Provision (credit) charged to expense | 88 | 434 |
Losses charged off | 0 | 0 |
Recoveries | 0 | 82 |
Balance, end of period | 1,979 | 1,662 |
Owner-occupied commercial real estate | ||
Allowance for loan losses: | ||
Balance, beginning of period | 742 | 1,082 |
Provision (credit) charged to expense | (116) | (53) |
Losses charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 626 | 1,029 |
Investor commercial real estate | ||
Allowance for loan losses: | ||
Balance, beginning of period | 328 | 155 |
Provision (credit) charged to expense | 77 | 14 |
Losses charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 405 | 169 |
Construction | ||
Allowance for loan losses: | ||
Balance, beginning of period | 1,612 | 1,192 |
Provision (credit) charged to expense | 154 | 228 |
Losses charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 1,766 | 1,420 |
Single tenant lease financing | ||
Allowance for loan losses: | ||
Balance, beginning of period | 10,385 | 12,990 |
Provision (credit) charged to expense | (1,645) | 188 |
Losses charged off | 0 | 0 |
Recoveries | 1,231 | 0 |
Balance, end of period | 9,971 | 13,178 |
Public finance | ||
Allowance for loan losses: | ||
Balance, beginning of period | 1,776 | 1,732 |
Provision (credit) charged to expense | 7 | 16 |
Losses charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 1,783 | 1,748 |
Healthcare finance | ||
Allowance for loan losses: | ||
Balance, beginning of period | 5,940 | 7,485 |
Provision (credit) charged to expense | (430) | 270 |
Losses charged off | 0 | 0 |
Recoveries | 0 | 0 |
Balance, end of period | 5,510 | 7,755 |
Small business lending | ||
Allowance for loan losses: | ||
Balance, beginning of period | 1,387 | 628 |
Provision (credit) charged to expense | 111 | 147 |
Losses charged off | (80) | (79) |
Recoveries | 17 | 4 |
Balance, end of period | 1,435 | 700 |
Franchise finance | ||
Allowance for loan losses: | ||
Balance, beginning of period | 1,083 | |
Provision (credit) charged to expense | 354 | |
Losses charged off | 0 | |
Recoveries | ||
Balance, end of period | 1,437 | |
Residential mortgage | ||
Allowance for loan losses: | ||
Balance, beginning of period | 643 | 519 |
Provision (credit) charged to expense | 87 | 77 |
Losses charged off | 0 | 0 |
Recoveries | 1 | 5 |
Balance, end of period | 731 | 601 |
Home equity | ||
Allowance for loan losses: | ||
Balance, beginning of period | 64 | 48 |
Provision (credit) charged to expense | (1) | 58 |
Losses charged off | 0 | (51) |
Recoveries | 2 | 2 |
Balance, end of period | 65 | 57 |
Other consumer loans | ||
Allowance for loan losses: | ||
Balance, beginning of period | 1,990 | 2,507 |
Provision (credit) charged to expense | 263 | (103) |
Losses charged off | (163) | (181) |
Recoveries | 99 | 100 |
Balance, end of period | 2,189 | $ 2,323 |
Tax Refund Advance Loans | ||
Allowance for loan losses: | ||
Balance, beginning of period | 0 | |
Provision (credit) charged to expense | 1,842 | |
Losses charged off | (1,488) | |
Recoveries | 0 | |
Balance, end of period | $ 354 |
Loans - Recorded Investments in
Loans - Recorded Investments in Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans: | ||||
Ending balance: collectively evaluated for impairment | $ 2,816,761 | $ 2,822,836 | ||
Ending balance: individually evaluated for impairment | 12,044 | 10,940 | ||
Total Loans Receivable | 2,828,805 | 2,833,776 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 26,790 | 26,380 | ||
Ending balance: individually evaluated for impairment | 1,461 | 1,461 | ||
Ending balance | 28,251 | 27,841 | $ 30,642 | $ 29,484 |
Commercial and industrial | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 99,198 | 95,364 | ||
Ending balance: individually evaluated for impairment | 610 | 644 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 1,529 | 1,441 | ||
Ending balance: individually evaluated for impairment | 450 | 450 | ||
Ending balance | 1,979 | 1,891 | 1,662 | 1,146 |
Owner-occupied commercial real estate | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 53,485 | 63,387 | ||
Ending balance: individually evaluated for impairment | 3,267 | 3,345 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 626 | 742 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 626 | 742 | 1,029 | 1,082 |
Investor commercial real estate | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 34,627 | 28,019 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 405 | 328 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 405 | 328 | 169 | 155 |
Construction | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 149,662 | 136,619 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 1,766 | 1,612 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 1,766 | 1,612 | 1,420 | 1,192 |
Single tenant lease financing | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 851,427 | 864,754 | ||
Ending balance: individually evaluated for impairment | 1,092 | 1,100 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 9,876 | 10,290 | ||
Ending balance: individually evaluated for impairment | 95 | 95 | ||
Ending balance | 9,971 | 10,385 | 13,178 | 12,990 |
Public finance | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 587,817 | 592,665 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 1,783 | 1,776 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 1,783 | 1,776 | 1,748 | 1,732 |
Healthcare finance | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 353,666 | 386,926 | ||
Ending balance: individually evaluated for impairment | 908 | 926 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 4,987 | 5,417 | ||
Ending balance: individually evaluated for impairment | 523 | 523 | ||
Ending balance | 5,510 | 5,940 | 7,755 | 7,485 |
Small business lending | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 94,525 | 106,682 | ||
Ending balance: individually evaluated for impairment | 2,515 | 1,984 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 1,042 | 994 | ||
Ending balance: individually evaluated for impairment | 393 | 393 | ||
Ending balance | 1,435 | 1,387 | 700 | 628 |
Franchise finance | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 107,246 | 81,448 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 1,437 | 1,083 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 1,437 | 1,083 | ||
Residential mortgage | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 187,528 | 183,852 | ||
Ending balance: individually evaluated for impairment | 3,625 | 2,918 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 731 | 643 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 731 | 643 | 601 | 519 |
Home equity | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 18,086 | 17,651 | ||
Ending balance: individually evaluated for impairment | 14 | 14 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 65 | 64 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 65 | 64 | 57 | 48 |
Other consumer loans | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 270,317 | 265,469 | ||
Ending balance: individually evaluated for impairment | 13 | 9 | ||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 2,189 | 1,990 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance | 2,189 | 1,990 | $ 2,323 | $ 2,507 |
Tax Refund Advance Loans | ||||
Loans: | ||||
Ending balance: collectively evaluated for impairment | 9,177 | |||
Ending balance: individually evaluated for impairment | 0 | |||
Allowance for loan losses: | ||||
Ending balance: collectively evaluated for impairment | 354 | |||
Ending balance: individually evaluated for impairment | 0 | |||
Ending balance | 354 | 0 | ||
Commercial Portfolio Segment | ||||
Loans: | ||||
Total Loans Receivable | 2,340,045 | 2,363,863 | ||
Commercial Portfolio Segment | Small business lending | ||||
Loans: | ||||
Total Loans Receivable | 108,666 | |||
Commercial Portfolio Segment | Franchise finance | ||||
Loans: | ||||
Total Loans Receivable | 107,246 | 81,448 | ||
Consumer Portfolio | ||||
Loans: | ||||
Total Loans Receivable | 488,760 | 469,913 | ||
Consumer Portfolio | Residential mortgage | ||||
Loans: | ||||
Total Loans Receivable | 191,153 | 186,770 | ||
Consumer Portfolio | Home equity | ||||
Loans: | ||||
Total Loans Receivable | 18,100 | 17,665 | ||
Consumer Portfolio | Other consumer loans | ||||
Loans: | ||||
Total Loans Receivable | 270,330 | 265,478 | ||
Consumer Portfolio | Tax Refund Advance Loans | ||||
Loans: | ||||
Total Loans Receivable | $ 9,177 | $ 0 |
Loans - Nonaccrual Loans (Detai
Loans - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | $ 2,828,805 | $ 2,833,776 |
Commercial Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,340,045 | 2,363,863 |
Commercial Portfolio Segment | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,285,577 | 2,312,655 |
Commercial Portfolio Segment | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 46,076 | 43,209 |
Commercial Portfolio Segment | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 8,392 | 7,998 |
Commercial Portfolio Segment | Commercial and industrial | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 85,340 | 82,412 |
Commercial Portfolio Segment | Commercial and industrial | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 13,858 | 12,952 |
Commercial Portfolio Segment | Commercial and industrial | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 610 | 644 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 49,520 | 59,369 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,965 | 4,018 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 3,267 | 3,345 |
Commercial Portfolio Segment | Investor commercial real estate | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 34,627 | 28,019 |
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 | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 136,466 | 124,578 |
Commercial Portfolio Segment | Construction | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 13,196 | 12,041 |
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 | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 846,543 | 859,612 |
Commercial Portfolio Segment | Single tenant lease financing | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 4,884 | 5,142 |
Commercial Portfolio Segment | Single tenant lease financing | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 1,092 | 1,100 |
Commercial Portfolio Segment | Public finance | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 585,387 | 591,630 |
Commercial Portfolio Segment | Public finance | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,430 | 1,035 |
Commercial Portfolio Segment | Public finance | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Healthcare finance | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 353,090 | 386,337 |
Commercial Portfolio Segment | Healthcare finance | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 576 | 589 |
Commercial Portfolio Segment | Healthcare finance | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 908 | 926 |
Commercial Portfolio Segment | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 108,666 | |
Commercial Portfolio Segment | Small business lending | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 87,358 | 99,250 |
Commercial Portfolio Segment | Small business lending | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 7,167 | 7,432 |
Commercial Portfolio Segment | Small business lending | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 2,515 | 1,983 |
Commercial Portfolio Segment | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 107,246 | 81,448 |
Commercial Portfolio Segment | Franchise finance | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 107,246 | 81,448 |
Commercial Portfolio Segment | Franchise finance | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment | Franchise finance | 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 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 2,828,805 | $ 2,833,776 |
Consumer Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 488,760 | 469,913 |
Consumer Portfolio | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 487,526 | 468,664 |
Consumer Portfolio | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,234 | 1,249 |
Consumer Portfolio | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 191,153 | 186,770 |
Consumer Portfolio | Residential mortgage | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 189,946 | 185,544 |
Consumer Portfolio | Residential mortgage | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 1,207 | 1,226 |
Consumer Portfolio | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 18,100 | 17,665 |
Consumer Portfolio | Home equity | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 18,086 | 17,651 |
Consumer Portfolio | Home equity | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 14 | 14 |
Consumer Portfolio | Other consumer loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 270,330 | 265,478 |
Consumer Portfolio | Other consumer loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 270,317 | 265,469 |
Consumer Portfolio | Other consumer loans | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 13 | 9 |
Consumer Portfolio | Tax Refund Advance Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 9,177 | $ 0 |
Consumer Portfolio | Tax Refund Advance Loans | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | 9,177 | |
Consumer Portfolio | Tax Refund Advance Loans | Nonaccrual | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans Receivable | $ 0 |
Loans - Loan Portfolio Aging (D
Loans - Loan Portfolio Aging (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | $ 0 | $ 0 |
Loans serviced for others | 2,833,776 | |
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 |
Franchise finance | ||
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 | 0 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans 90 Days or More Past Due and Accruing | 0 | |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 119 | |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 244 | |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 763 | |
Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 1,126 | |
Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 2,832,650 | |
Commercial Portfolio Segment | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 99,808 | 96,008 |
Commercial Portfolio Segment | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 56,752 | 66,732 |
Commercial Portfolio Segment | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 34,627 | 28,019 |
Commercial Portfolio Segment | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 149,662 | 136,619 |
Commercial Portfolio Segment | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 852,519 | 865,854 |
Commercial Portfolio Segment | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 587,817 | 592,665 |
Commercial Portfolio Segment | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 354,574 | 387,852 |
Commercial Portfolio Segment | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 97,040 | 108,666 |
Commercial Portfolio Segment | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 107,246 | 81,448 |
Commercial Portfolio Segment | 30-59 Days Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 515 | 0 |
Commercial Portfolio Segment | 30-59 Days Past Due | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 60-89 Days Past Due | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | 90 Days or More Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 129 | 657 |
Commercial Portfolio Segment | 90 Days or More Past Due | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 644 | 657 |
Commercial Portfolio Segment | Financial Asset, Past Due | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 99,808 | 96,008 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 56,752 | 66,732 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 34,627 | 28,019 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 149,662 | 136,619 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 852,519 | 865,854 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 587,817 | 592,665 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 354,574 | 387,852 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 96,396 | 108,009 |
Commercial Portfolio Segment | Financial Asset, Not Past Due | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 107,246 | 81,448 |
Consumer Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 2,828,805 | |
Consumer Portfolio | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 191,153 | 186,770 |
Consumer Portfolio | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 18,100 | 17,665 |
Consumer Portfolio | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 270,330 | 265,478 |
Consumer Portfolio | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 9,177 | |
Consumer Portfolio | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 584 | |
Consumer Portfolio | 30-59 Days Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 51 |
Consumer Portfolio | 30-59 Days Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Consumer Portfolio | 30-59 Days Past Due | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 69 | 68 |
Consumer Portfolio | 30-59 Days Past Due | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | |
Consumer Portfolio | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 141 | |
Consumer Portfolio | 60-89 Days Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 77 | 226 |
Consumer Portfolio | 60-89 Days Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Consumer Portfolio | 60-89 Days Past Due | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 64 | 18 |
Consumer Portfolio | 60-89 Days Past Due | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | |
Consumer Portfolio | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 235 | |
Consumer Portfolio | 90 Days or More Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 106 | 106 |
Consumer Portfolio | 90 Days or More Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Consumer Portfolio | 90 Days or More Past Due | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Consumer Portfolio | 90 Days or More Past Due | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | |
Consumer Portfolio | Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 960 | |
Consumer Portfolio | Financial Asset, Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 183 | 383 |
Consumer Portfolio | Financial Asset, Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | 0 |
Consumer Portfolio | Financial Asset, Past Due | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 133 | 86 |
Consumer Portfolio | Financial Asset, Past Due | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 0 | |
Consumer Portfolio | Financial Asset, Not Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 2,827,845 | |
Consumer Portfolio | Financial Asset, Not Past Due | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 190,970 | 186,387 |
Consumer Portfolio | Financial Asset, Not Past Due | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 18,100 | 17,665 |
Consumer Portfolio | Financial Asset, Not Past Due | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 270,197 | 265,392 |
Consumer Portfolio | Financial Asset, Not Past Due | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 9,177 | |
Nonaccrual | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 7,401 | |
Nonaccrual | Commercial Portfolio Segment | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 610 | 674 |
Nonaccrual | Commercial Portfolio Segment | Owner-occupied commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Investor commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 3,267 | 3,419 |
Nonaccrual | Commercial Portfolio Segment | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Single tenant lease financing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 1,092 | 1,100 |
Nonaccrual | Commercial Portfolio Segment | Public finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Healthcare finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Nonaccrual | Commercial Portfolio Segment | Small business lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 881 | 959 |
Nonaccrual | Commercial Portfolio Segment | Franchise finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Nonaccrual | Consumer Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 7,084 | |
Nonaccrual | Consumer Portfolio | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 1,207 | 1,226 |
Nonaccrual | Consumer Portfolio | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 14 | 14 |
Nonaccrual | Consumer Portfolio | Other consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | 13 | $ 9 |
Nonaccrual | Consumer Portfolio | Tax Refund Advance Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Nonaccrual | $ 0 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)security | Dec. 31, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans without a specific valuation allowance - Recorded Balance | $ 7,800,000 | $ 7,245,000 | |
Loans without a specific valuation allowance - Unpaid Principal Balance | 8,382,000 | 7,781,000 | |
Loans without a specific valuation allowance | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,244,000 | 3,695,000 | |
Loans with a specific valuation allowance - Unpaid Principal Balance | 4,310,000 | 3,751,000 | |
Loans with a specific valuation allowance | 1,461,000 | 1,461,000 | |
Impaired Financing Receivable, Recorded Investment | 12,044,000 | 10,940,000 | |
Impaired Financing Receivable, Unpaid Principal Balance | 12,692,000 | ||
Loans without a specific valuation allowance - Average Balance | 7,434,000 | $ 6,477,000 | |
Loans without a specific valuation allowance - Interest Income | 8,000 | 18,000 | |
Loans with a specific valuation allowance - Average Balance | 3,972,000 | 8,143,000 | |
Loans with a specific valuation allowance - Interest Income | 17,000 | 12,000 | |
Impaired Financing Receivable, Average Recorded Investment | 11,406,000 | 14,620,000 | 11,532,000 |
Impaired Financing Receivable, Interest Income, Accrual Method | 25,000 | $ 30,000 | |
Other real estate owned | $ 0 | 1,188,000 | |
Mortgage loans in process of foreclosure, number of loans | loan | 2 | ||
Mortgage loans in process of foreclosure, amount | $ 200,000 | 1,000,000 | |
Number of contracts classified as TDRs | security | 1 | ||
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 610,000 | 644,000 | |
Loans with a specific valuation allowance - Unpaid Principal Balance | 652,000 | 677,000 | |
Loans with a specific valuation allowance | 450,000 | 450,000 | |
Loans without a specific valuation allowance - Average Balance | 0 | $ 517,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 9,000 | |
Loans with a specific valuation allowance - Average Balance | 627,000 | 501,000 | |
Loans with a specific valuation allowance - Interest Income | 0 | 0 | |
Owner-occupied commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans without a specific valuation allowance - Recorded Balance | 3,267,000 | 3,345,000 | |
Loans without a specific valuation allowance - Unpaid Principal Balance | 3,453,000 | 3,466,000 | |
Loans without a specific valuation allowance | 0 | 0 | |
Loans without a specific valuation allowance - Average Balance | 3,307,000 | 2,440,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 0 | |
Single tenant lease financing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,092,000 | 1,100,000 | |
Loans with a specific valuation allowance - Unpaid Principal Balance | 1,116,000 | 1,123,000 | |
Loans with a specific valuation allowance | 95,000 | 95,000 | |
Loans without a specific valuation allowance - Average Balance | 0 | 151,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 5,000 | |
Loans with a specific valuation allowance - Average Balance | 1,094,000 | 7,148,000 | |
Loans with a specific valuation allowance - Interest Income | 0 | 0 | |
Healthcare finance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 908,000 | 926,000 | |
Loans with a specific valuation allowance - Unpaid Principal Balance | 908,000 | 926,000 | |
Loans with a specific valuation allowance | 523,000 | 523,000 | |
Loans without a specific valuation allowance - Average Balance | 0 | 1,008,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | ||
Loans with a specific valuation allowance - Average Balance | 918,000 | 494,000 | |
Loans with a specific valuation allowance - Interest Income | 17,000 | 12,000 | |
Small business lending | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans without a specific valuation allowance - Recorded Balance | 881,000 | 959,000 | |
Loans without a specific valuation allowance - Unpaid Principal Balance | 1,079,000 | 1,193,000 | |
Loans without a specific valuation allowance | 0 | 0 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,634,000 | 1,025,000 | |
Loans with a specific valuation allowance - Unpaid Principal Balance | 1,634,000 | 1,025,000 | |
Loans with a specific valuation allowance | 393,000 | 393,000 | |
Loans without a specific valuation allowance - Average Balance | 830,000 | 577,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | ||
Loans with a specific valuation allowance - Average Balance | 1,333,000 | 0 | |
Loans with 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 | 3,625,000 | 2,918,000 | |
Loans without a specific valuation allowance - Unpaid Principal Balance | 3,780,000 | 3,063,000 | |
Loans without a specific valuation allowance | 0 | 0 | |
Loans without a specific valuation allowance - Average Balance | 3,273,000 | 1,736,000 | |
Loans without a specific valuation allowance - Interest Income | $ 8,000 | 4,000 | |
Number of contracts classified as TDRs | loan | 1 | ||
Financing receivable, troubled debt restructuring | $ 700,000 | 800,000 | |
Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans without a specific valuation allowance - Recorded Balance | 14,000 | 14,000 | |
Loans without a specific valuation allowance - Unpaid Principal Balance | 15,000 | 15,000 | |
Loans without a specific valuation allowance | 0 | 0 | |
Loans without a specific valuation allowance - Average Balance | 14,000 | 11,000 | |
Loans without a specific valuation allowance - Interest Income | 0 | 0 | |
Other consumer loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans without a specific valuation allowance - Recorded Balance | 13,000 | 9,000 | |
Loans without a specific valuation allowance - Unpaid Principal Balance | 55,000 | 44,000 | |
Loans without a specific valuation allowance | 0 | $ 0 | |
Loans without a specific valuation allowance - Average Balance | 10,000 | 37,000 | |
Loans without a specific valuation allowance - Interest Income | $ 0 | $ 0 |
Loans - Deferrals (Details)
Loans - Deferrals (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021security | Mar. 31, 2022USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of deferrals | security | 1 | |
Payment Deferral | COVID-19 Modification | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-TDR loan modifications due to COVID-19 | $ | $ 9.8 |
Premises and Equipment - Summar
Premises and Equipment - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (7,694) | $ (6,725) |
Premises and equipment, net | 68,632 | 59,842 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,598 | 0 |
Right of use leased asset | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 160 | 208 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 0 | 57,469 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 51,902 | 1,090 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 18,666 | $ 7,800 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) $ in Millions | Apr. 16, 2021USD ($) |
Property, Plant and Equipment [Abstract] | |
Gain on sale of headquarters and certain equipment | $ 2.5 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 4,687 | $ 4,687 |
Servicing Asset (Details)
Servicing Asset (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, beginning of period | $ 4,702 | $ 3,569 |
Originated and purchased servicing | 844 | 403 |
Paydowns: | (256) | (170) |
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model | (41) | 15 |
Loan servicing asset revaluation | (297) | (155) |
Balance, end of period | $ 5,249 | $ 3,817 |
Servicing Asset - Unpaid princi
Servicing Asset - Unpaid principal balance (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | $ 2,833,776 | |
Loan servicing | ||
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | $ 254,545 | 230,514 |
Loan servicing | SBA guaranteed loans | ||
Servicing Assets at Fair Value [Line Items] | ||
Loans serviced for others | $ 254,545 | $ 230,514 |
Servicing Asset - Narrative (De
Servicing Asset - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing Assets at Fair Value [Line Items] | ||
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model | $ (41) | $ 15 |
Loan servicing | ||
Servicing Assets at Fair Value [Line Items] | ||
Loan servicing revenue | 585 | 422 |
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model | $ (300) | $ (200) |
Subordinated Debt (Details Text
Subordinated Debt (Details Textual) - Subordinated Debt - USD ($) | 1 Months Ended | ||||||
Aug. 31, 2021 | Oct. 31, 2020 | Jun. 30, 2019 | Sep. 30, 2016 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | |
2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Subordinated debenture, principal amount | $ 37,000,000 | ||||||
Fixed annual interest rate (as a percent) | 6.00% | ||||||
2030 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Subordinated debenture, principal amount | $ 10,000,000 | ||||||
Fixed annual interest rate (as a percent) | 6.00% | ||||||
2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Subordinated debenture, principal amount | $ 60,000,000 | ||||||
Fixed annual interest rate (as a percent) | 3.75% | ||||||
Unregistered 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Principal Amount Exchanged | $ 59,300,000 | ||||||
Debt Instrument, Principal Amount Remaining | $ 700,000 | ||||||
6.0% Fixed To Floating Rate Subordinated Notes Due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Subordinated debenture, principal amount | $ 25,000,000 | ||||||
Fixed annual interest rate (as a percent) | 6.00% | ||||||
LIBOR | 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 4.11% | ||||||
LIBOR | 6.0% Fixed To Floating Rate Subordinated Notes Due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 4.85% | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2030 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 5.795% | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2031 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.11% |
Subordinated Debt - Schedule of
Subordinated Debt - Schedule of Subordinated Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 514,923 | $ 514,922 |
Unamortized Debt Issuance Costs | (2,694) | (2,769) |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Principal | 107,000 | 107,000 |
Unamortized Debt Issuance Costs | (2,694) | (2,769) |
Subordinated Debt | 2029 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 37,000 | 37,000 |
Unamortized Debt Issuance Costs | (1,139) | (1,178) |
Subordinated Debt | 2030 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 10,000 | 10,000 |
Unamortized Debt Issuance Costs | (201) | (208) |
Subordinated Debt | 2031 Notes | ||
Debt Instrument [Line Items] | ||
Principal | 60,000 | 60,000 |
Unamortized Debt Issuance Costs | $ (1,354) | $ (1,383) |
Benefit Plans - Activity (Detai
Benefit Plans - Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted Stock Awards | |
Awards/Units Outstanding (in shares) | |
Balance at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 9,954,000 |
Vested (in shares) | shares | (2,502,000) |
Balance at end of period (in shares) | shares | 7,452,000 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 52.64 |
Vested (in dollars per share) | $ / shares | 52.64 |
Balance at end of period (in dollars per share) | $ / shares | $ 52.64 |
Deferred Stock Units | |
Awards/Units Outstanding (in shares) | |
Balance at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 1,000 |
Vested (in shares) | shares | (1,000) |
Balance at end of period (in shares) | shares | 0 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 52.64 |
Vested (in dollars per share) | $ / shares | 52.64 |
Balance at end of period (in dollars per share) | $ / shares | $ 0 |
Restricted Stock Units | |
Awards/Units Outstanding (in shares) | |
Balance at beginning of period (in shares) | shares | 112,822,000 |
Granted (in shares) | shares | 41,381,000 |
Vested (in shares) | shares | (23,256,000) |
Balance at end of period (in shares) | shares | 130,947,000 |
Weighted-Average Grant Date Fair Value Per Share (in dollars per share) | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 28.18 |
Granted (in dollars per share) | $ / shares | 46.71 |
Vested (in dollars per share) | $ / shares | 24.62 |
Balance at end of period (in dollars per share) | $ / shares | $ 34.67 |
Benefit Plans - Deferred Stock
Benefit Plans - Deferred Stock Rights (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Deferred Stock Rights | |
Outstanding, beginning of period (in shares) | 84,536,000 |
Granted (in shares) | 107,000 |
Exercised (in shares) | 0 |
Outstanding, end of period (in shares) | 84,643,000 |
Benefit Plans (Details Textual)
Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Allocated share-based compensation expense | $ 640 | $ 692 | |
Compensation cost not yet recognized | $ 3,800 | ||
Period for recognition | 2 years | ||
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 | $ 640 | $ 692 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Other Commitments [Line Items] | ||
Loan commitments | $ 325.7 | $ 324.3 |
Construction related contract commitment, term | 1 year | |
Capital Addition Purchase Commitments | ||
Other Commitments [Line Items] | ||
Other contract commitment | $ 68.7 | |
Construction related contract commitment, not yet incurred | $ 8.3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total available-for-sale securities | $ 465,288 | $ 603,044 |
Loans held-for-sale (mandatory pricing agreements) | 19,181 | 23,233 |
Servicing asset | 5,249 | 4,702 |
Derivative, fair value | (3,005) | (14,301) |
Loans Held For Sale | ||
Loans held-for-sale (mandatory pricing agreements) | 17,364 | 23,233 |
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 | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 465,288 | 603,044 |
Servicing asset | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Loans Held For Sale | ||
Loans held-for-sale (mandatory pricing agreements) | 17,364 | 23,233 |
Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Servicing asset | 5,249 | 4,702 |
Significant Unobservable Inputs (Level 3) | Loans Held For Sale | ||
Loans held-for-sale (mandatory pricing agreements) | 0 | 0 |
U.S. Government-sponsored agencies | ||
Total available-for-sale securities | 43,847 | 49,040 |
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 | 43,847 | 49,040 |
U.S. Government-sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Municipal securities | ||
Total available-for-sale securities | 72,804 | 77,033 |
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 | 72,804 | 77,033 |
Municipal securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Agency mortgage-backed securities - residential | ||
Total available-for-sale securities | 257,682 | 373,236 |
Agency mortgage-backed securities - residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Agency mortgage-backed securities - residential | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 373,236 | |
Agency mortgage-backed securities - residential | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Private label mortgage-backed securities - residential | ||
Total available-for-sale securities | 14,818 | 16,021 |
Private label mortgage-backed securities - residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | 0 |
Private label mortgage-backed securities - residential | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Asset-backed securities | ||
Total available-for-sale securities | 4,986 | 5,004 |
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 | 4,986 | 5,004 |
Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
Corporate securities | ||
Total available-for-sale securities | 46,995 | 46,384 |
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 | 46,995 | 46,384 |
Corporate securities | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | 0 |
IRLCs | ||
Derivative, fair value | (88) | 718 |
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 | (88) | 718 |
Agency mortgage-backed securities - commercial | ||
Total available-for-sale securities | 24,156 | 36,326 |
Agency mortgage-backed securities - commercial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Total available-for-sale securities | 0 | |
Agency mortgage-backed securities - commercial | Significant Other Observable Inputs (Level 2) | ||
Total available-for-sale securities | 24,156 | 36,326 |
Agency mortgage-backed securities - commercial | Significant Unobservable Inputs (Level 3) | ||
Total available-for-sale securities | 0 | |
Interest rate swaps | Interest rate swaps | ||
Derivative liability, fair value | (2,917) | (14,271) |
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 | (2,917) | (14,271) |
Interest rate swaps | Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||
Derivative liability, fair value | 0 | 0 |
Forward contracts | Forward contracts | ||
Derivative, fair value | 1,072 | (30) |
Forward contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward contracts | ||
Derivative, fair value | 1,072 | (30) |
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 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative, fair value | $ 288 | $ (1,731) |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest Rate Lock Commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 718 | $ 3,361 |
Additions | 0 | 0 |
Paydowns | 0 | 0 |
Included in net income | (806) | (2,251) |
Ending balance | (88) | 1,110 |
Servicing asset | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 4,702 | 3,569 |
Additions | 844 | 403 |
Paydowns | (256) | (170) |
Included in net income | (41) | 15 |
Ending balance | $ 5,249 | $ 3,817 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Quantitative Information About Unobservable Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 4,244 | $ 3,695 |
Servicing asset | 5,249 | 4,702 |
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 | 5,249 | 4,702 |
IRLCs | Significant Unobservable Inputs (Level 3) | ||
IRLCs Fair Value | (88) | 718 |
Servicing asset | Significant Unobservable Inputs (Level 3) | ||
Servicing asset | 5,249 | 4,702 |
Impaired Loans | Significant Unobservable Inputs (Level 3) | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 2,164 | $ 1,228 |
Loan closing rates | Discounted cash flow | IRLCs | Significant Unobservable Inputs (Level 3) | Minimum | ||
IRLC - Loan closing rates | 45.00% | 42.00% |
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 | 87.00% | 89.00% |
Measurement Input, Prepayment Rate [Member] | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Minimum | ||
Servicing asset, discount rate | 0.00% | 0.00% |
Measurement Input, Prepayment Rate [Member] | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Maximum | ||
Servicing asset, discount rate | 25.00% | 25.00% |
Measurement Input, Prepayment Rate [Member] | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | ||
Servicing asset, discount rate | 13.30% | 12.50% |
Measurement Input, Discount Rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | ||
Servicing asset, discount rate | 10.00% | 10.00% |
Measurement Input, Discount Rate | Discounted cash flow | Servicing asset | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | ||
Servicing asset, discount rate | 10.00% | 10.00% |
Discount for type of property and current market conditions | Fair value of collateral | Impaired Loans | Significant Unobservable Inputs (Level 3) | ||
Impaired Financing Receivable, Measurement Input | 10.00% | |
Discount for type of property and current market conditions | Fair value of collateral | Impaired Loans | Significant Unobservable Inputs (Level 3) | Minimum | ||
Impaired Financing Receivable, Measurement Input | 0.00% | |
Discount for type of property and current market conditions | Fair value of collateral | Impaired Loans | Significant Unobservable Inputs (Level 3) | Maximum | ||
Impaired Financing Receivable, Measurement Input | 35.00% | |
Discount for type of property and current market conditions | Fair value of collateral | Impaired Loans | Significant Unobservable Inputs (Level 3) | Weighted-Average Range | ||
Impaired Financing Receivable, Measurement Input | 10.00% | 10.10% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents, Carrying Amount | $ 517,549 | $ 442,960 |
Debt Securities, Held-to-maturity | 163,370 | 59,565 |
Held-to-maturity, at fair value | 159,971 | 61,468 |
Loans Held-For-Sale | 16,627 | 24,512 |
Loans held for sale, Fair Value | 19,181 | 23,233 |
Loans receivable | 2,852,529 | 2,859,821 |
Accrued interest receivable, Carrying Amount | 15,263 | 16,037 |
FHLB stock, Carrying Amount | 25,219 | 25,650 |
Deposits, Carrying Amount | 3,217,979 | 3,178,959 |
FHLB Advances, Carrying Amount | 514,923 | 514,922 |
Accrued interest payable | 1,532 | 2,018 |
Subordinated debt, Carrying Value | 104,306 | 104,231 |
Reported Value Measurement | ||
Cash and cash equivalents, Carrying Amount | 517,549 | 442,960 |
Debt Securities, Held-to-maturity | 163,370 | 59,565 |
Loans receivable | 2,852,529 | 2,859,821 |
Accrued interest receivable, Carrying Amount | 15,263 | 16,037 |
FHLB stock, Carrying Amount | 25,219 | 25,650 |
Deposits, Carrying Amount | 3,217,979 | 3,178,959 |
Fair Value | ||
Cash and cash equivalents, Fair Value | 517,549 | 442,960 |
Held-to-maturity, at fair value | 159,971 | 61,468 |
Loans held for sale, Fair Value | 16,627 | 24,512 |
Loans receivable, fair value | 2,750,399 | 2,880,024 |
Accrued interest receivable, Fair Value | 15,263 | 16,037 |
FHLB stock, Fair Value | 25,219 | 25,650 |
Deposits, Fair Value | 3,164,027 | 3,190,000 |
FHLB Advances, Fair Value | 512,307 | 526,143 |
Subordinated debt, Fair Value | 108,320 | 108,788 |
Accrued interest payable, Fair Value | 1,532 | 2,018 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Cash and cash equivalents, Fair Value | 517,549 | 442,960 |
Held-to-maturity, at fair value | 0 | 0 |
Loans held for sale, Fair Value | 0 | 0 |
Loans receivable, fair value | 0 | 0 |
Accrued interest receivable, Fair Value | 15,263 | 16,037 |
FHLB stock, Fair Value | 0 | 0 |
Deposits, Fair Value | 1,996,097 | 1,909,432 |
FHLB Advances, Fair Value | 0 | 0 |
Subordinated debt, Fair Value | 38,184 | 38,643 |
Accrued interest payable, Fair Value | 1,532 | 2,018 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Cash and cash equivalents, Fair Value | 0 | 0 |
Held-to-maturity, at fair value | 159,971 | 61,468 |
Loans held for sale, Fair Value | 16,627 | 24,512 |
Loans receivable, fair value | 0 | 0 |
Accrued interest receivable, Fair Value | 0 | 0 |
FHLB stock, Fair Value | 25,219 | 25,650 |
Deposits, Fair Value | 0 | 0 |
FHLB Advances, Fair Value | 512,307 | 526,143 |
Subordinated debt, Fair Value | 70,136 | 70,145 |
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 held for sale, Fair Value | 0 | 0 |
Loans receivable, fair value | 2,750,399 | 2,880,024 |
Accrued interest receivable, Fair Value | 0 | 0 |
FHLB stock, Fair Value | 0 | 0 |
Deposits, Fair Value | 1,167,930 | 1,280,568 |
FHLB Advances, 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Principal Transaction Revenue [Line Items] | ||
Loans originated for sale | $ 152,400 | $ 223,900 |
Proceeds from sale of loans | 162,400 | 241,600 |
Mortgage banking activities | ||
Principal Transaction Revenue [Line Items] | ||
Gain on loans sold | 2,062 | 7,499 |
Gain (loss) resulting from the change in fair value of loans held-for-sale | (489) | (862) |
Gain (loss) resulting from the change in fair value of derivatives | 300 | (887) |
Net revenue from mortgage banking activities | $ 1,873 | $ 5,750 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Carrying Amount and Adjustment (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amortized cost | $ 486,632 | $ 606,507 | |||
Payments for swap termination payments | $ 46,100 | ||||
Derivatives designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amortized cost | 50,000 | ||||
Securities available-for-sale | Derivatives designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Carrying amount of the hedged assets | 72,416 | 75,156 | |||
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets | (292) | $ 1,729 | |||
Securities available-for-sale | Derivatives designated as hedging instruments | Interest rate swaps | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Payments for swap termination payments | $ 1,900 | ||||
Amortization Expense | 100 | ||||
Loans | Derivatives designated as hedging instruments | Interest rate swaps | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amortization Expense | $ 1,000 | $ 1,100 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Interest Swap Derivatives (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 323,378 | $ 332,750 | ||||
Fair Value | (3,005) | (14,301) | ||||
Interest expense | 10,284 | $ 12,755 | ||||
Payments for swap termination payments | $ 46,100 | |||||
Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 50,000 | 50,000 | ||||
Weighted Average Remaining Maturity (years) | 2 years 7 months 6 days | 2 years 9 months 18 days | ||||
Fair Value | $ 288 | $ (1,731) | ||||
Weighted-Average Rate | 2.33% | 2.33% | ||||
Cash collateral received | $ 2,700 | |||||
Cash collateral pledged | 15,700 | |||||
Loans | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Weighted Average Remaining Maturity (years) | 12 years | |||||
Securities available-for-sale | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Fair value hedging adjustment | $ (292) | 1,729 | ||||
Securities available-for-sale | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 50,000 | 50,000 | ||||
Weighted Average Remaining Maturity (years) | 2 years 7 months 6 days | 2 years 9 months 18 days | ||||
Fair Value | $ 288 | $ (1,731) | ||||
Weighted-Average Rate | 2.33% | 2.33% | ||||
Payments for swap termination payments | $ 1,900 | |||||
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 | ||||
Weighted Average Remaining Maturity (years) | 4 years 9 months 18 days | 5 years 1 month 6 days | ||||
Fair Value | $ (2,132) | $ (8,560) | ||||
Derivative, variable interest rate | 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 | $ 60,000 | $ 100,000 | ||||
Weighted Average Remaining Maturity (years) | 1 year 4 months 24 days | 2 years | ||||
Fair Value | $ (648) | $ (3,980) | ||||
Derivative, variable interest rate | 2.88% | 2.88% | ||||
Fed Funds Effective | Interest rate swaps | Derivatives designated as hedging instruments | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Notional Value | $ 40,000 | |||||
Weighted Average Remaining Maturity (years) | 2 years 2 months 12 days | |||||
Fair Value | $ (425) | |||||
Derivative, variable interest rate | 2.78% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Notional Amounts and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Asset Derivatives | ||
Notional Amount | $ 56,750 | $ 62,789 |
Fair Value | 1,072 | 718 |
Derivative Liability [Abstract] | ||
Notional Amount | 323,378 | 332,750 |
Derivative, fair value | (3,005) | (14,301) |
Interest Rate Lock Commitments | ||
Derivative Liability [Abstract] | ||
Derivative, fair value | (88) | 718 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Liability [Abstract] | ||
Notional Amount | 50,000 | 50,000 |
Derivative, fair value | 288 | (1,731) |
Derivatives not designated as hedging instruments | Interest Rate Lock Commitments | ||
Asset Derivatives | ||
Notional Amount | 0 | 62,789 |
Fair Value | 0 | 718 |
Derivatives not designated as hedging instruments | Forward contracts | ||
Asset Derivatives | ||
Notional Amount | 56,750 | 0 |
Fair Value | 1,072 | 0 |
Derivatives not designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 0 | 72,750 |
Fair Value | 0 | (30) |
Derivatives not designated as hedging instruments | Interest Rate Lock Commitments | ||
Derivative Liability [Abstract] | ||
Notional Amount | 63,378 | 0 |
Fair Value | (88) | 0 |
Securities available-for-sale | Derivatives designated as hedging instruments | Interest rate swaps | ||
Derivative Liability [Abstract] | ||
Notional Amount | 50,000 | 50,000 |
Derivative, fair value | 288 | (1,731) |
Securities available-for-sale | Derivatives designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 50,000 | 50,000 |
Fair Value | 288 | (1,731) |
Liability | Derivatives designated as hedging instruments | Forward contracts | ||
Derivative Liability [Abstract] | ||
Notional Amount | 210,000 | 210,000 |
Fair Value | $ (3,205) | $ (12,540) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gain (Loss) Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Asset Derivatives | Forward contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivatives not designated as hedging instruments | $ 1,102 | $ 1,361 |
Interest Rate Lock Commitments | Liability Derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivatives not designated as hedging instruments | $ (802) | $ (2,251) |
Derivative Financial Instrume_7
Derivative Financial Instruments - Effect Of Derivatives on Income (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in Other Comprehensive Income | $ 9,334 | $ 6,280 |
Securities - taxable | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | 0 | |
Gain (loss) recognized on the condensed consolidated statements of income | (253) | |
Securities - non-taxable | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | (260) | |
Gain (loss) recognized on the condensed consolidated statements of income | (266) | |
Total interest income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | (260) | |
Gain (loss) recognized on the condensed consolidated statements of income | (519) | |
Deposits | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | 670 | |
Gain (loss) recognized on the condensed consolidated statements of income | 678 | |
Other borrowed funds | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | 696 | |
Gain (loss) recognized on the condensed consolidated statements of income | 730 | |
Total interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | 1,366 | |
Gain (loss) recognized on the condensed consolidated statements of income | 1,408 | |
Net interest income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized on the condensed consolidated statements of income | $ (1,626) | |
Gain (loss) recognized on the condensed consolidated statements of income | $ (1,927) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 380,338 | $ 330,944 |
Net change in unrealized gain | (13,949) | 4,085 |
Reclassification of net loss realized and included in earnings | 119 | |
Other comprehensive (loss) gain before tax | (13,830) | 4,085 |
Income tax provision (benefit) | (2,008) | 809 |
Other comprehensive (loss) income - net of tax | (11,822) | 3,276 |
Balance, end of period | 374,655 | 344,566 |
Reclassifications from accumulated other comprehensive loss to earnings before tax | (119) | 0 |
Tax benefit | (27) | 0 |
Total reclassifications from accumulated other comprehensive loss | (92) | 0 |
Available-For-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (2,555) | 468 |
Net change in unrealized gain | (17,881) | (2,195) |
Reclassification of net loss realized and included in earnings | 0 | |
Other comprehensive (loss) gain before tax | (17,881) | (2,195) |
Income tax provision (benefit) | (4,077) | (508) |
Other comprehensive (loss) income - net of tax | (13,804) | (1,687) |
Balance, end of period | (16,359) | (1,219) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (8,484) | (17,664) |
Net change in unrealized gain | 9,334 | 6,280 |
Reclassification of net loss realized and included in earnings | 0 | |
Other comprehensive (loss) gain before tax | 9,334 | 6,280 |
Income tax provision (benefit) | 3,318 | 1,317 |
Other comprehensive (loss) income - net of tax | 6,016 | 4,963 |
Balance, end of period | (2,468) | (12,701) |
Accumulated Other Comprehensive Loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (11,039) | (17,196) |
Other comprehensive (loss) income - net of tax | (11,822) | 3,276 |
Balance, end of period | (22,861) | $ (13,920) |
AOCI, Accumulated Gain (Loss), Debt Securities, Held-To-Maturity, Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 0 | |
Net change in unrealized gain | (5,402) | |
Reclassification of net loss realized and included in earnings | 119 | |
Other comprehensive (loss) gain before tax | (5,283) | |
Income tax provision (benefit) | (1,249) | |
Other comprehensive (loss) income - net of tax | (4,034) | |
Balance, end of period | $ (4,034) |