Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-39215 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 46-5144312 | |
Entity Address, Address Line One | 396 Alhambra Circle, Suite 255 | |
Entity Address, City or Town | Coral Gables | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33134 | |
City Area Code | 786 | |
Local Phone Number | 483-1757 | |
Entity Registrant Name | Professional Holding Corp. | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | PFHD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 13,419,010 | |
Entity Central Index Key | 0001630856 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 29,803 | $ 62,305 |
Interest-bearing deposits | 586,377 | 129,291 |
Federal funds sold | 36,156 | 25,376 |
Cash and cash equivalents | 652,336 | 216,972 |
Securities available for sale, at fair value - taxable | 100,735 | 65,110 |
Securities available for sale, at fair value - tax exempt | 19,761 | 22,398 |
Securities held to maturity (fair value June 30, 2021 - $1,296, December 31, 2020 - $1,561) | 1,285 | 1,547 |
Equity securities | 5,942 | 6,005 |
Loans, net of allowance of $10,418 and $16,259 as of June 30, 2021, and December 31, 2020, respectively | 1,680,168 | 1,643,373 |
Loans held for sale | 2,039 | 1,270 |
Federal Home Loan Bank stock, at cost | 2,341 | 3,229 |
Federal Reserve Bank stock, at cost | 4,954 | 4,762 |
Accrued interest receivable | 5,449 | 6,666 |
Premises and equipment, net | 4,000 | 4,370 |
Bank owned life insurance | 37,923 | 37,360 |
Deferred tax asset | 9,446 | 10,525 |
Goodwill | 24,621 | 24,621 |
Core deposit intangibles | 1,280 | 1,422 |
Other assets | 8,738 | 7,640 |
Total assets | 2,561,018 | 2,057,270 |
Deposits | ||
Demand - non-interest bearing | 854,673 | 475,598 |
Demand - interest bearing | 286,173 | 232,367 |
Money market and savings | 874,637 | 715,003 |
Time deposits | 261,680 | 236,575 |
Total deposits | 2,277,163 | 1,659,543 |
Official checks | 3,289 | 4,447 |
Federal Home Loan Bank advances | 35,000 | 40,000 |
Other borrowings | 114,573 | |
Subordinated debt | 10,062 | 10,153 |
Accrued interest and other liabilities | 12,476 | 12,989 |
Total liabilities | 2,337,990 | 1,841,705 |
Stockholders' equity | ||
Preferred stock, 10,000,000 shares authorized, none issued | ||
Treasury stock, at cost | (13,544) | (9,209) |
Additional paid-in capital | 210,274 | 208,995 |
Retained earnings | 25,872 | 14,756 |
Accumulated other comprehensive income (loss) | 283 | 882 |
Total stockholders' equity | 223,028 | 215,565 |
Total liabilities and stockholders' equity | 2,561,018 | 2,057,270 |
Class A Voting Common Stock | ||
Stockholders' equity | ||
Common stock | $ 143 | $ 141 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Securities, Held to Maturity | $ 1,296 | $ 1,561 |
Loans allowances | $ 10,418 | $ 16,259 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Class A Voting Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock Authorized | 50,000,000 | 50,000,000 |
Common Stock, issued (in shares) | 14,289,480 | 14,100,760 |
Common Stock, outstanding (in shares) | 13,475,781 | 13,534,829 |
Class B Non-Voting Common stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock Authorized | 10,000,000 | 10,000,000 |
Common Stock, issued (in shares) | 0 | 0 |
Common Stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income | ||||
Loans, including fees | $ 18,311 | $ 17,897 | $ 37,544 | $ 27,912 |
Investment securities - taxable | 161 | 232 | 340 | 434 |
Investment securities - tax exempt | 189 | 206 | 392 | 226 |
Dividend income on restricted stock | 99 | 131 | 194 | 210 |
Other | 202 | 56 | 264 | 760 |
Total interest income | 18,962 | 18,522 | 38,734 | 29,542 |
Interest expense | ||||
Deposits | 1,430 | 1,617 | 2,747 | 4,243 |
Federal Home Loan Bank advances | 190 | 287 | 386 | 565 |
Subordinated debt | 77 | 59 | 207 | 189 |
Other borrowings | 63 | 268 | 313 | 193 |
Total interest expense | 1,760 | 2,231 | 3,653 | 5,190 |
Net interest income | 17,202 | 16,291 | 35,081 | 24,352 |
Provision for loan losses | 762 | 1,750 | 1,800 | 2,595 |
Net interest income after provision for loan losses | 16,440 | 14,541 | 33,281 | 21,757 |
Non-interest income | ||||
Service charges on deposit accounts | 1,199 | 307 | 1,594 | 529 |
Income from Bank owned life insurance | 281 | 126 | 563 | 255 |
SBA origination fees | 84 | 145 | 114 | |
SWAP fees | 364 | 210 | 573 | 473 |
Third party loan sales | 226 | 157 | 301 | 267 |
Gain on sale and call of securities | 21 | 11 | 22 | 15 |
Other | 211 | 73 | 223 | 171 |
Total non-interest income | 2,302 | 968 | 3,421 | 1,824 |
Non-interest expense | ||||
Salaries and employee benefits | 7,099 | 6,912 | 13,883 | 12,175 |
Occupancy and equipment | 905 | 1,081 | 2,007 | 1,855 |
Data processing | 276 | 421 | 566 | 597 |
Marketing | 165 | 151 | 318 | 288 |
Professional fees | 770 | 806 | 1,398 | 1,161 |
Acquisition expenses | 560 | 684 | 2,223 | |
Regulatory assessments | 418 | 300 | 767 | 514 |
Other | 1,321 | 1,317 | 3,119 | 2,221 |
Total non-interest expense | 10,954 | 11,548 | 22,742 | 21,034 |
Income before income taxes | 7,788 | 3,961 | 13,960 | 2,547 |
Income tax provision (benefit) | 1,457 | 830 | 2,844 | 733 |
Net income (loss) | $ 6,331 | $ 3,131 | $ 11,116 | $ 1,814 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.23 | $ 0.83 | $ 0.16 |
Diluted (in dollars per share) | $ 0.45 | $ 0.22 | $ 0.80 | $ 0.15 |
Other comprehensive income: | ||||
Unrealized holding gain (loss) on securities available for sale | $ (505) | $ 743 | $ (794) | $ 1,068 |
Tax effect | 124 | (188) | 195 | (271) |
Other comprehensive gain (loss), net of tax | (381) | 555 | (599) | 797 |
Comprehensive income (loss) | $ 5,950 | $ 3,686 | $ 10,517 | $ 2,611 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2019 | $ 60 | $ (4,155) | $ 77,019 | $ 6,451 | $ (73) | $ 79,302 |
Balance (in Shares) at Dec. 31, 2019 | 5,867,446 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost | $ 37 | 60,221 | 60,258 | |||
Issuance of common stock, net of Issuance cost (in Shares) | 3,664,667 | |||||
Marquis Bancorp (MBI) acquisition | $ 42 | 64,657 | 64,699 | |||
Marquis Bancorp (MBI) acquisition (in shares) | 4,227,816 | |||||
Employee stock purchase plan | 58 | 58 | ||||
Stock based compensation | 492 | 492 | ||||
Treasury stock | (4,977) | (9) | (4,986) | |||
Treasury stock (in shares) | (315,294) | |||||
Net income (loss) | 1,814 | 1,814 | ||||
Other comprehensive income | 797 | 797 | ||||
Balance at Jun. 30, 2020 | $ 139 | (9,132) | 202,438 | 8,265 | 724 | 202,434 |
Balance (in Shares) at Jun. 30, 2020 | 13,444,635 | |||||
Balance at Mar. 31, 2020 | $ 138 | (6,257) | 201,670 | 5,134 | 169 | 200,854 |
Balance (in Shares) at Mar. 31, 2020 | 13,537,565 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost | $ 1 | 450 | 451 | |||
Issuance of common stock, net of Issuance cost (in Shares) | 89,167 | |||||
Employee stock purchase plan | 27 | 27 | ||||
Stock based compensation | 296 | 296 | ||||
Treasury stock | (2,875) | (5) | (2,880) | |||
Treasury stock (in shares) | (182,097) | |||||
Net income (loss) | 3,131 | 3,131 | ||||
Other comprehensive income | 555 | 555 | ||||
Balance at Jun. 30, 2020 | $ 139 | (9,132) | 202,438 | 8,265 | 724 | 202,434 |
Balance (in Shares) at Jun. 30, 2020 | 13,444,635 | |||||
Balance at Dec. 31, 2020 | $ 141 | (9,209) | 208,995 | 14,756 | 882 | 215,565 |
Balance (in Shares) at Dec. 31, 2020 | 13,534,829 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost | $ 1 | 543 | 544 | |||
Issuance of common stock, net of Issuance cost (in Shares) | 61,204 | |||||
Employee stock purchase plan | 34 | 34 | ||||
Employee stock purchase plan (in Shares) | 1,851 | |||||
Stock based compensation | $ 1 | 709 | 710 | |||
Stock based compensation (in shares) | 125,665 | |||||
Treasury stock | (4,335) | (7) | (4,342) | |||
Treasury stock (in shares) | (247,768) | |||||
Net income (loss) | 11,116 | 11,116 | ||||
Other comprehensive income | (599) | (599) | ||||
Balance at Jun. 30, 2021 | $ 143 | (13,544) | 210,274 | 25,872 | 283 | 223,028 |
Balance (in Shares) at Jun. 30, 2021 | 13,475,781 | |||||
Balance at Mar. 31, 2021 | $ 143 | (10,087) | 209,770 | 19,541 | 664 | 220,031 |
Balance (in Shares) at Mar. 31, 2021 | 13,661,567 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost | 107 | 107 | ||||
Issuance of common stock, net of Issuance cost (in Shares) | 8,359 | |||||
Employee stock purchase plan | 18 | 18 | ||||
Employee stock purchase plan (in Shares) | 978 | |||||
Stock based compensation | 385 | 385 | ||||
Stock based compensation (in shares) | (1,834) | |||||
Treasury stock | (3,457) | (6) | (3,463) | |||
Treasury stock (in shares) | (193,289) | |||||
Net income (loss) | 6,331 | 6,331 | ||||
Other comprehensive income | (381) | (381) | ||||
Balance at Jun. 30, 2021 | $ 143 | $ (13,544) | $ 210,274 | $ 25,872 | $ 283 | $ 223,028 |
Balance (in Shares) at Jun. 30, 2021 | 13,475,781 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities | |||||
Net income (loss) | $ 11,116 | $ 1,814 | |||
Adjustments to reconcile net income to net cash from operating activities | |||||
Provision for loan losses | $ 762 | $ 1,750 | 1,800 | 2,595 | |
Deferred income tax benefit (expense) | 988 | (499) | |||
Depreciation and amortization | 739 | 739 | |||
Gain on sale of securities | (4) | ||||
Gain on call of securities | (22) | (11) | |||
Equity unrealized change in market value | 63 | (24) | |||
Net amortization of securities | 1,396 | (906) | |||
Net amortization of deferred loan fees | (4,400) | 1,118 | |||
Loans held for sale | (769) | (1,070) | |||
Proceeds from sale of loans | 110 | ||||
Income from bank owned life insurance | (281) | (126) | (563) | (255) | |
Loss on disposal of premises and equipment | 137 | ||||
Employee stock purchase plan | 34 | 58 | |||
Stock compensation | 710 | 492 | |||
Changes in operating assets and liabilities: | |||||
Accrued interest receivable | 1,217 | (1,472) | |||
Other assets | (1,098) | 1,887 | |||
Official checks, accrued interest, interest payable and other liabilities | (1,385) | (3,395) | |||
Net cash provided by operating activities | 9,963 | 1,177 | |||
Cash flows from investing activities | |||||
Proceeds from maturities and paydowns of securities available for sale | 11,123 | 6,256 | |||
Proceeds from calls of securities available for sale | 4,648 | 4,835 | |||
Proceeds from maturities and paydowns of securities held to maturity | 257 | 44 | |||
Purchase of securities available for sale | (50,922) | (60,693) | |||
Proceeds from sale of securities available for sale | 1,739 | $ 1,700 | |||
Loans originations, net of principal repayments | (47,410) | (256,731) | |||
Purchase of Federal Reserve Bank stock | (192) | (2,671) | |||
Proceeds from maturities of Federal Home Loan Bank Stock | 888 | ||||
Purchase of Federal Home Loan Bank Stock | (1,297) | ||||
Purchases of premises and equipment | (455) | (741) | |||
Proceeds from acquisition | 26,860 | ||||
Net cash used in investing activities | (82,063) | (282,399) | |||
Cash flows from financing activities | |||||
Net increase (decrease) in deposits | 617,620 | 126,404 | |||
Proceeds from issuance of stock, net of issuance costs | 544 | 60,258 | |||
Purchase of treasury stock | (4,342) | (4,986) | |||
Proceeds from Federal Home Loan Bank advances | 10,000 | ||||
Repayments of Federal Home Loan advances | (5,000) | (25,000) | |||
Repayment of line of credit | (9,999) | ||||
Proceeds from PPPLF advances | 218,080 | ||||
Repayments of PPPLF advances | (101,358) | ||||
Net cash provided by financing activities | 507,464 | 374,757 | |||
Increase in cash and cash equivalents | 435,364 | 93,535 | |||
Cash and cash equivalents at beginning of period | 216,972 | 198,950 | 198,950 | ||
Cash and cash equivalents at end of period | $ 652,336 | $ 292,485 | 652,336 | 292,485 | $ 216,972 |
Supplemental cash flow information: | |||||
Cash paid during the period for interest | 4,425 | 4,907 | |||
Cash paid during the period for taxes | $ 3,000 | 20 | |||
Supplemental noncash disclosures: | |||||
Lease liabilities arising from obtaining right of use assets | 1,620 | ||||
Total assets acquired | 589,374 | ||||
Total liabilities assumed | $ 539,403 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The accompanying unaudited consolidated financial statements of Professional Holding Corp. and its subsidiary, Professional Bank (the “Bank” and collectively with Professional Holding Corp., the “Company”), have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Adoption of new accounting standards: ASU 2019-12, Income Taxes (Topic 740) In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, FASB issued guidance which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate ("LIBOR") likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022. The Company has established a cross-functional working group to guide the Company’s transition from LIBOR and has begun efforts to transition to alternative rates consistent with industry timelines. The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. New accounting standards that have not yet been adopted: The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company’s financial statements: ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Description In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). Date of Adoption For PBEs that are non-SEC filers and for SEC filers that are considered small reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company's management is in the process of evaluating credit loss estimation models. Updates to business processes and the documentation of accounting policy decisions are ongoing. The company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company's consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 2 — EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding plus the effect of employee stock options during the year. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per share: Net income $ 6,331 $ 3,131 $ 11,116 $ 1,814 Total weighted average common stock outstanding 13,397,747 13,415,525 13,419,929 11,516,756 Net income per share $ 0.47 $ 0.23 $ 0.83 $ 0.16 Diluted earnings per share: Net income $ 6,331 $ 3,131 $ 11,116 $ 1,814 Total weighted average common stock outstanding 13,397,747 13,415,525 13,419,929 11,516,756 Add: Dilutive effect of employee stock options 564,822 518,435 521,900 526,503 Total weighted average diluted stock outstanding 13,962,569 13,933,960 13,941,829 12,043,259 Net income per share $ 0.45 $ 0.22 $ 0.80 $ 0.15 For the three months ended June 30, 2021, there were 270,850 thousand stock options that were anti-dilutive and for the three months ended June 30, 2020, there were 29,350 thousand stock options that were anti-dilutive. For the six months ended June 30, 2021, there were 270,850 thousand stock options that were anti-dilutive and for the six months ended June 30, 2020, there were 29,350 thousand stock options that were anti-dilutive. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES | |
SECURITIES | NOTE 3 — SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at June 30, 2021 and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized June 30, 2021 Cost Gains Losses Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 43,091 $ 78 $ (573) $ 42,596 Mortgage-backed securities 54,517 205 (182) 54,540 United States agency obligations 2,001 88 - 2,089 Corporate bonds 1,500 10 - 1,510 Total available-for-sale - taxable $ 101,109 $ 381 $ (755) $ 100,735 Available-for-sale - tax exempt Community Development District bonds $ 17,954 $ 704 $ - $ 18,658 Municipals 1,057 46 - 1,103 Total available-for-sale - tax exempt $ 19,011 $ 750 $ - $ 19,761 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 285 $ 11 $ — $ 296 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,285 $ 11 $ — $ 1,296 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 - 3,122 Corporate bonds 2,501 9 - 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ - $ 21,299 Municipals 1,064 35 - 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ - $ 22,398 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561 As of June 30, 2021 and December 31, 2020, Corporate bonds were comprised of investments in the financial services industry. During the six months ended June 30, 2021, the net investment portfolio increased by $32.6 million as a result of increases from purchases of $50.9 million in SBA and MBS securities combined with decreases of $17.4 million from paydowns, maturities and calls, as well as the unrealized holding loss on securities available for sale of $0.7 million with related tax effect of $0.2 million. Proceeds from the maturity and redemption of securities during the three and six months ended June 30, 2021, were $3.2 million and $4.7 million, with gross realized gains of $21 thousand and $22 thousand, respectively. Proceeds from the sales of securities during the year ended December 31, 2020, were $1.7 million, with gross realized gains of $4 thousand. Proceeds from redemption of securities for the year ended December 31, 2020, were $9.1 million, with gross realized gains of $33 thousand. Total securities pledged as of June 30, 2021 and December 31, 2020, were $13.3 million and $12.5 million, respectively. Securities pledged for derivative SWAP transactions as of June 30, 2021, were $1.1 million which were included in the total securities pledged, such securities were generally pledged for public funds. There were no securities pledged for derivate SWAP transactions at December 31, 2020. The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. The scheduled maturities of securities as of June 30, 2021, are as follows: June 30, 2021 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 1,038 $ 1,056 Due after one year through five years 21,159 21,975 Due after five years through ten years 315 329 Due after ten years — — Subtotal $ 22,512 $ 23,360 Small Business Administration loan pools $ 43,091 $ 42,596 Mortgage-backed securities 54,517 54,540 Total available-for-sale $ 120,120 $ 120,496 Held-to-maturity Due in one year or less $ 1,000 $ 1,000 Due after one year through five years — — Subtotal $ 1,000 $ 1,000 Mortgage-backed securities $ 285 $ 296 Total held-to-maturity $ 1,285 $ 1,296 At June 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. At June 30, 2021 and December 31, 2020, the number of investment positions that are in an unrealized loss position were 48 and 36, respectively. The tables below indicate the fair value of debt securities with unrealized losses and for the period of time of which these losses were outstanding at June 30, 2021 and December 31, 2020, respectively, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2021 Available-for-sale - taxable Small Business Administration loan pools $ 15,273 $ (427) $ 17,777 $ (146) $ 33,050 $ (573) Mortgage-backed securities 14,648 (181) 1,286 (1) 15,934 (182) United States agency obligations — — — — — — Corporate bonds — — — — — — Total available-for-sale - taxable $ 29,921 $ (608) $ 19,063 $ (147) $ 48,984 $ (755) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — December 31, 2020 Available-for-sale - taxable Small Business Administration loan pools $ 18,849 $ (133) $ 8,945 $ (66) $ 27,794 $ (199) Mortgage-backed securities 5,839 — 2,510 (30) 8,349 (30) United States agency obligations 227 — — — 227 — Corporate bonds — — — — — — Total available-for-sale - taxable $ 24,915 $ (133) $ 11,455 $ (96) $ 36,370 $ (229) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — The unrealized holding losses within the investment portfolio are considered to be temporary and are mainly due to changes in the interest rate cycle. The unrealized loss positions may fluctuate positively or negatively with changes in interest rates or spreads. Since SBA loan pools and mortgage-backed securities are government sponsored entities that are highly rated, the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not have any securities in an Other Than Temporary Impairment (“OTTI”) position. The Company does not intend to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. The Company does not consider these securities to be other-than-temporarily impaired at June 30, 2021. No credit losses were recognized in operations during the six months ended June 30, 2021, or during the year ended December 31, 2020. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
LOANS | NOTE 4 — LOANS Loans at June 30, 2021 and December 31, 2020, were as follows: June 30, 2021 December 31, 2020 Commercial real estate $ 875,453 $ 777,776 Residential real estate 361,946 380,491 Commercial 373,333 396,642 Construction and land development 74,175 99,883 Consumer and other 14,575 11,688 Total loans 1,699,482 1,666,480 Unearned loan origination (fees) costs, net (1,984) (1,323) Unearned PPP loan origination (fees) costs, net (4,855) (4,255) Allowance for loan loss (10,418) (16,259) Loans held for sale (2,039) (1,270) Other (18) — Loans, net $ 1,680,168 $ 1,643,373 The recorded investment in loans excludes accrued interest receivable due to immateriality. At June 30, 2021 and December 31, 2020, there were $209.9 million and $227.8 million, respectively in total loans pledged to the Federal Home Loan Bank (“FHLB”) for liquidity. Loan premiums for loans purchased are amortized over the life of the loan with acceleration upon the increase in principal paydowns or payoffs. At June 30, 2021 and December 31, 2020, loan premiums for purchased loans were $0.5 million and $0.6 million, respectively. There are no loans over 90 days past due and accruing as of June 30, 2021, or December 31, 2020. The following table presents the aging of the recorded investment in past due loans as of June 30, 2021 and December 31, 2020, by class of loans: 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total June 30, 2021 Commercial real estate $ — $ — $ — $ — $ — $ 875,453 $ 875,453 Residential real estate — — — — — 361,946 361,946 Commercial — — — 1,468 1,468 371,865 373,333 Construction and land development — — — — — 74,175 74,175 Consumer and other — 94 — 1,307 1,401 13,174 14,575 Total $ — $ 94 $ — $ 2,775 $ 2,869 $ 1,696,613 $ 1,699,482 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total December 31, 2020 Commercial real estate $ — $ — $ — $ — $ — $ 777,776 $ 777,776 Residential real estate 1,303 — — — 1,303 379,188 380,491 Commercial 278 — — 9,127 9,405 387,237 396,642 Construction and land development — — — — — 99,883 99,883 Consumer and other — — — 1,307 1,307 10,381 11,688 Total $ 1,581 $ — $ — $ 10,434 $ 12,015 $ 1,654,465 $ 1,666,480 At June 30, 2021, there were six impaired loans (consisting of nonaccrual loans, troubled debt restructured loans, loans past due 90 days or more and still accruing interest and other loans based on management’s judgment) with both unpaid principal balance and recorded investments totaling $5.4 million. Three of these loans were impaired loans with a recorded investment of $2.8 million with an allowance of $0.7 million and one substandard accruing loan with a recorded investment of $2.3 million with no allowance. The average net investment on the impaired residential real estate and commercial loans during the three months ended June 30, 2021, were $0.9 million. Residential real estate loans had $2.4 thousand and $5.0 thousand interest income recognized for the three and six months ended June 30, 2021 and 2020, respectively, which was equal to the cash basis interest income. At December 31, 2020, there were six impaired loans with recorded investments totaling $13.1 million, of which there were three impaired loans with a recorded investment of $10.4 million on nonaccrual with an allowance of $8.3 million and one substandard accruing loan with a recorded investment of $2.4 million with no allowance. The average net investment on the impaired residential real estate and commercial loans during the year ended December 31, 2020, was $2.2 million. The residential real estate loans had $12.7 thousand of interest income recognized during the year ended December 31, 2020, which was equal to the cash basis interest income. Troubled Debt Restructurings: The principal carrying balances of loans that met the criteria for consideration as troubled debt restructurings (“TDR”) were $252 thousand and $298 thousand as of June 30, 2021 and December 31, 2020, respectively. The Company has allocated no specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2021 and December 31, 2020. The Company has not committed any additional amounts to customers whose loans are classified as a troubled debt restructuring. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt including: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Generally, all credits greater than $1.0 million are reviewed at least annually to monitor and adjust, if necessary, the credit risk profile. Loans classified as substandard or special mention are reviewed quarterly by the Company for further evaluation to determine if they are appropriately classified and whether there is any impairment. Beyond the annual review, all loans are graded upon initial issuance. In addition, during the renewal process of any loan, as well as if a loan becomes past due, the Company will determine the appropriate loan grade. Loans excluded from the review process above are generally classified as pass credits until: (a) they become past due; (b) management becomes aware of deterioration in the creditworthiness of the borrower; or (c) the customer contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification as to special mention, substandard, doubtful, or even charged-off. The Company uses the following definitions for risk ratings: Pass: Riskless: High Quality Risk: Satisfactory Risk: Moderate Risk: track record of timely loan payments, no material adverse changes to underlying collateral, and no material adverse change to guarantor(s) financial capacity, evidenced by public record searches. Special mention: Substandard: Doubtful: Loss: Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (Dollars in thousands) Pass Mention Substandard Doubtful Total June 30, 2021 Commercial real estate $ 873,127 $ — $ 2,326 $ — $ 875,453 Residential real estate 361,946 — — — 361,946 Commercial 371,400 465 1,468 — 373,333 Construction and land development 74,175 — — — 74,175 Consumer 13,174 94 1,307 — 14,575 Total $ 1,693,822 $ 559 $ 5,101 $ — $ 1,699,482 December 31, 2020 Commercial real estate $ 775,420 $ — $ 2,356 $ — $ 777,776 Residential real estate 380,062 429 — — 380,491 Commercial 387,403 112 9,127 — 396,642 Construction and land development 99,883 — — — 99,883 Consumer 10,381 — 1,307 — 11,688 Total $ 1,653,149 $ 541 $ 12,790 $ — $ 1,666,480 Purchased Credit Impaired Loans: The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows: (Dollars in thousands) June 30, 2021 December 31, 2020 Commercial real estate (1) $ 5,892 $ — Residential real estate 452 405 Commercial 616 746 Construction and development (1) — 3,732 Carrying amount, net of total discounts $ 6,960 $ 4,883 (1) During the three months ended June 30, 2021, construction was completed on a construction loan and recategorized as a non-owner occupied commercial real estate loan. Changes in the carrying amount of the accretable yield for all purchased credit impaired loans were as follows for the six months ended June 30, 2021: (Dollars in thousands) 2021 Balance at beginning of period $ (630) Adjustment of income — Accretion 195 Reclassifications from nonaccretable difference (136) Disposals — Balance at end of period $ (571) For those purchased credit impaired loans disclosed above, no allowances for loan losses were recorded or reversed during the six months ended June 30, 2021. The credit fair value adjustment on purchased credit impairment (“PCI”) loans represents the portion of the loan balances that have been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan. PCI loans purchased on March 26, 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (Dollars in thousands) March 26, 2020 Contractually required principal and interest by loan type Commercial real estate $ 427 Residential real estate 604 Commercial 2,176 Construction and development 5,614 Consumer and other loans - Total $ 8,821 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 80 Residential real estate 138 Commercial 1,123 Construction and development 2,297 Consumer and other loans - Total $ 3,638 Expected cash flows $ 5,183 Interest component of expected cash flows (accretable discount) (545) Fair value of PCI loans accounted for under ASC 310-30 $ 4,638 Non-Performing Assets As of June 30, 2021, the Company had nonperforming assets of $2.8 million, or 0.11% of total assets, compared to nonperforming assets of $10.4 million, or 0.51% of total assets, at December 31, 2020. The Bank’s charge-off policy for impaired loans is similar to its charge-off policy for all loans in that loans are charged-off in the month when a determination of a confirmed loss is made on a loan. In March 2021, the Company charged off $7.6 million of the Coex Coffee International, Inc. (“Coex”) loan, which amount was previously reserved during the third quarter of 2020. Based on a review of the estimated receivables collected by the assignee in the Florida case for the benefit of creditors (the “Assignee”), the remaining book balance of $0.6 million for the Coex loan appears to be collectable by the Company, subject to final accounting by the Assignee. Paycheck Protection Program During the three months ended June 30, 2021, the Company funded 172 loans representing $17.6 million under Round 3 of the Paycheck Protection Program (“PPP.”). As of June 30, 2021, the Company participated in all three rounds of the PPP and funded Liquidity Facility ("PPPLF"). The PPPLF pledged loans are non-recourse to the Company. However, the Company paid off all of the PPPLF advances during the first and second quarter of 2021 and the balance was $0 as of June 30, 2021. Debt Service Relief Requests Related to COVID-19 As a result of the COVID-19 pandemic the Company has reviewed and processed numerous debt service relief requests in accordance with Section 4013 of the CARES Act and interagency guidelines published by federal banking regulators on March 13, 2020. As currently interpreted by the agencies, the guidelines assert that short-term modifications made on good faith for reasons related to the COVID-19 pandemic to borrowers who were current prior to such relief are not considered TDRs. These modifications include deferrals of principal and interest, modification to interest only, and deferrals to escrow requirements. The modifications have varying terms up to six months. As of June 30, 2021, all these loans had returned to normal payment schedules. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2021 | |
ALLOWANCE FOR LOAN LOSSES | |
ALLOWANCE FOR LOAN LOSSES | NOTE 5 — ALLOWANCE FOR LOAN LOSSES The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method for the six months ended June 30, 2021, and the year ended December 31, 2020: Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total June 30, 2021 Allowance for loan losses: Beginning balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Provision for loan losses 1,126 92 602 (27) 7 1,800 Loans charged-off - - (7,641) - - (7,641) Recoveries - - - - - - Total ending allowance balance $ 4,285 $ 2,269 $ 3,423 $ 361 $ 80 $ 10,418 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total December 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 1,314 (731) 9,326 116 (8) 10,017 Loans charged-off — (207) (99) — — (306) Recoveries — — — — — — Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total June 30, 2021 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 658 $ — $ — $ 658 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 4,285 2,269 2,765 361 80 9,760 Total ending allowance balance $ 4,285 $ 2,269 $ 3,423 $ 361 $ 80 $ 10,418 Loans: Loans individually evaluated for impairment $ 2,326 $ 252 $ 1,468 $ — $ 1,307 $ 5,353 Loans collectively evaluated for impairment 873,127 361,694 371,865 74,175 13,268 1,694,129 Total ending loans balance $ 875,453 $ 361,946 $ 373,333 $ 74,175 $ 14,575 $ 1,699,482 December 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 8,309 $ — $ — $ 8,309 Purchased Credit Impaired (PCI) loans — — — — — Collectively evaluated for impairment 3,159 2,177 2,153 388 73 7,950 Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Loans: Loans individually evaluated for impairment $ 2,356 $ 298 $ 9,127 $ — $ 1,307 $ 13,088 Loans collectively evaluated for impairment 775,420 380,193 387,515 99,883 10,381 1,653,392 Total ending loans balance $ 777,776 $ 380,491 $ 396,642 $ 99,883 $ 11,688 $ 1,666,480 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2021 | |
DEPOSITS. | |
Deposits | NOTE 6 — DEPOSITS The Company’s total deposits are comprised of the following at the dates indicated: For the Six Months Ended For the Year Ended June 30, 2021 December 31, 2020 Ending Ending (Dollars in thousands) Balance % of Total Balance % of Total NOW accounts $ 286,173 12.6 % $ 232,367 14.0 % Money market accounts 810,913 35.6 % 679,761 41.0 % Brokered deposits 56,534 2.5 % 30,137 1.8 % Savings accounts 11,814 0.5 % 9,727 0.6 % Certificates of deposit 257,056 11.3 % 231,953 14.0 % Total interest-bearing deposits 1,422,490 62.5 % 1,183,945 71.3 % Noninterest-bearing deposits 854,673 37.5 % 475,598 28.7 % Total deposits $ 2,277,163 100.0 % $ 1,659,543 100.0 % (1) Balance Sheet does not illustrate brokered deposits as presented above . The following table presents the maturities of our time deposits including time deposits that exceed the $250,000 FDIC insurance limit as of June 30, 2021 Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits of $250,000 or less $ 15,852 $ 12,749 $ 43,020 $ 22,047 $ 93,668 Time deposits of more than $250,000 23,302 24,537 85,376 34,797 168,012 Total $ 39,154 $ 37,286 $ 128,396 $ 56,844 $ 261,680 The following tables present the maturities of our time deposits including time deposits that exceed the $250,000 FDIC insurance limit as of December 31, 2020 Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits of $250,000 or less $ 20,767 $ 13,258 $ 24,805 $ 19,240 $ 78,070 Time deposits of more than $250,000 40,189 35,314 42,844 40,158 158,505 Total $ 60,956 $ 48,572 $ 67,649 $ 59,398 $ 236,575 As of June 30, 2021 and December 31, 2020, the Company had time deposits that meet or exceed the $250,000 FDIC insurance limit of $168.0 million and $158.5 million, respectively. Securities, mortgage loans or other financial instruments pledged as collateral for certain deposits were $52.4 million, and $54.7 million at June 30, 2021 and December 31, 2020, respectively. The aggregate amount of demand deposits that have been re-classified as loan balances at June 30, 2021 and December 31, 2020, were $0.3 million, and $0.1 million, respectively. Deposits from principal officers, directors and their affiliates at June 30, 2021 and December 31, 2020, were $17.9 million, and $12.1 million, respectively. For time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years at the dates indicated. June 30, 2021 December 31, 2020 Less than 1 year $ 204,836 $ 177,178 Over 1 through 2 years 55,625 57,034 Over 2 through 3 years 1,179 1,658 Over 3 through 4 years 40 705 Over 4 through 5 years - - Over 5 years - - Total $ 261,680 $ 236,575 Banks are required to maintain cash reserves in the form of vault cash or in an account with the Federal Reserve Bank or in noninterest-earning accounts with other qualified banks. This requirement is based on the Bank’s amount of transaction deposit accounts. Due to the amount of transaction deposit accounts, the Bank was not required to have cash reserve requirements at June 30, 2021 and December 31, 2020. Additionally, the Company had $93.6 million and $98.2 million, in Qualified Public Deposits (“QPD”) that require collateral pledged as of June 30, 2021 and December 31, 2020. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
DEBT | |
DEBT | NOTE 7 — DEBT Subordinated Debt Valley National Line of Credit |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2021 | |
BORROWINGS | |
BORROWINGS | NOTE 8 — BORROWINGS The Company uses short-term and long-term borrowings to supplement deposits to fund lending and investment activities. FHLB Advances. Six Months Ended Year Ended (Dollars in thousands) June 30, 2021 December 31, 2020 Amount outstanding at period-end $ 35,000 $ 40,000 Weighted average interest rate at period-end 2.04 % 1.96 % Maximum month-end balance during period $ 40,000 $ 70,000 Average balance outstanding during period 38,867 58,210 Weighted average interest rate during period 1.98 % 1.63 % Federal Reserve Bank of Atlanta June 30, 2021 PPPLF Advances |
COMMON STOCK AND PREFERRED STOC
COMMON STOCK AND PREFERRED STOCK | 6 Months Ended |
Jun. 30, 2021 | |
COMMON STOCK AND PREFERRED STOCK | |
COMMON STOCK AND PREFERRED STOCK | NOTE 9 — COMMON STOCK AND PREFERRED STOCK Class A Voting Common Stock The Company has Class A voting common stock with a par value of $0.01 per share. As of June 30, 2021, there are 50,000,000 shares authorized as Class A voting common stock of which 13,475,781 are outstanding. During the six months ended June 30, 2021, the Company issued 193,764 shares of Class A voting common stock, inclusive of 127,499 shares of restricted stock grants, 64,414 shares of options exercised, and 1,851 shares pursuant to the employee stock purchase program. During the six months ended June 30, 2021, the Company repurchased 247,768 shares of Class A common stock. Further, during the same six month period, upon the vesting of a portion of restricted stock, employees of the Company elected to have 3,210 shares of Class A common voting stock withheld for tax purposes and had 1,834 in restricted stock cancellations. Class B Non-voting Common Stock The Company has Class B non-voting common stock with a par value of $0.01 per share. As of June 30, 2021, there are 10,000,000 shares authorized as Class B non-voting common stock, none of which are outstanding. Preferred Stock The Company has 10,000,000 shares of undesignated and unissued preferred stock. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE. | |
FAIR VALUE | NOTE 10 — FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Cash and cash equivalents: Securities available for sale: Securities held-to-maturity: Equity securities: The Company values equity securities at readily determinable market values based on the closing price at the end of each period. Changes in fair value are recognized through net income. Loans: Loans held for sale: Federal Home Loan Bank stock: Federal Reserve Bank stock: Accrued interest receivable: Deposits: Federal Home Loan Bank advances: Off-balance-sheet instruments: Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis, are summarized below: There were no securities reclassified into or out of Level 3 during the six months ended June 30, 2021, or for the year ended December 31, 2020. Fair Value Measurements at June 30, 2021 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs June 30, 2021 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 42,596 $ — $ 42,596 $ — Mortgage-backed securities 54,540 — 54,540 — United States agency obligations 2,089 — 2,089 — Corporate bonds 1,510 — 1,510 — Total $ 100,735 $ — $ 100,735 $ — Available-for-sale - tax exempt Community Development District bonds $ 18,658 $ — $ 18,658 $ — Municipals 1,103 — 1,103 — Total $ 19,761 $ — $ 19,761 $ — Equity Mutual funds $ 5,942 $ 5,942 $ — $ — Total $ 5,942 $ 5,942 $ — $ — Fair Value Measurements at December 31, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 30,556 $ — $ 30,556 $ — Mortgage-backed securities 28,922 — 28,922 — United States agency obligations 3,122 — 3,122 — Corporate bonds 2,510 — 2,510 — Total $ 65,110 $ — $ 65,110 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,299 $ — $ 21,299 $ — Municipals 1,099 — 1,099 — Total $ 22,398 $ — $ 22,398 $ — Equity Mutual funds $ 6,005 $ 6,005 $ — $ — Total $ 6,005 $ 6,005 $ — $ — at June 30, 2021 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs June 30, 2021 Value (Level 1) (Level 2) (Level 3) Customer Derivatives: Interest Rate SWAPs Customer Derivatives - Interest Rate SWAPs Asset $ 863 $ — $ 863 $ — Customer Derivatives - Interest Rate SWAPs Liability (863) — (863) — Total $ — $ — $ — $ — As of December 31, 2020, the Company did not hold any interest rate SWAPs. Impaired loans: Specifically, regarding the Coex loan, the carrying amount of the loan for impairment purposes was determined based on the note outstanding balance at June 30, 2021, less the non-recourse amount sold to our participant, yielding a carrying value of $0.6 million. The fair value of the collateral was determined based on a review of information obtained from the Assignee related to the collectability of the collateral adjusted for legal and disposition costs. When netted in the same percentage as the non-recourse portion of the loan, the net fair value of collateral was noted as $0.6 million. The net result of these calculations provides for no specific reserve within the Allowance for Loan and Lease Losses (“ALLL”) associated with the Coex loan or approximately 0% of the carrying value of the loan. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at June 30, 2021 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable June 30, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2021 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 810 — — 810 (658) Construction and land development — — — — — Consumer and other — — — — — Total $ 810 $ — $ — $ 810 $ (658) Fair Value Measurements at December 31, 2020 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2020 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 818 — — 818 (8,309) Construction and land development — — — — — Consumer and other — — — — — Total $ 818 $ — $ — $ 818 $ (8,309) As shown above our impaired loans consist solely of commercial loans considered to be Level 3. These Level 3 loans have significant unobservable inputs such as appraisal adjustments for local market conditions and economic factors that may result in changes in value of an assets over time. The table below presents the approximate carrying amount and estimated fair value of the Company’s financial instruments (in thousands): June 30, 2021 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 616,180 $ 616,180 Level 1 Federal Funds Sold 36,156 36,156 Level 1 Securities, Available for Sale - taxable 101,109 100,735 Level 2 Securities, Available for Sale - tax exempt 19,011 19,761 Level 2 Securities, Held to Maturity 1,285 1,296 Level 2 Securities, Equity 5,942 5,942 Level 1 Loans, net 1,680,168 1,702,726 Level 3 Loans Held For Sale 2,039 2,039 Level 1 Bank Owned Life Insurance 37,923 37,923 Level 2 Accrued Interest Receivable 5,449 5,449 Level 1, 2 & 3 Customer Derivatives - Interest Rate SWAPs 863 863 Level 2 Financial Liabilities: Deposits 2,277,163 2,246,864 Level 2 Federal Home Loan Bank Advances 35,000 33,671 Level 2 Subordinated Debt 10,062 10,062 Level 2 PPPLF Advances — — Level 2 Loan Participations — — Level 2 Customer Derivatives - Interest Rate SWAPs 863 863 Level 2 Accrued Interest Payable 267 267 Level 2 December 31, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 191,597 $ 191,597 Level 1 Federal Funds Sold 25,375 25,375 Level 1 Securities, Available for Sale - taxable 65,110 65,110 Level 2 Securities, Available for Sale - tax exempt 22,398 22,398 Level 2 Securities, Held to Maturity 1,547 1,561 Level 2 Securities, Equity 6,005 6,005 Level 1 Loans, net 1,643,373 1,653,401 Level 3 Loans Held For Sale 1,270 1,270 Level 1 Bank Owned Life Insurance 37,360 37,360 Level 2 Accrued Interest Receivable 6,666 6,666 Level 1, 2 & 3 Financial Liabilities: Deposits 1,659,543 1,693,331 Level 2 Federal Home Loan Bank Advances 40,000 37,927 Level 2 Subordinated Debt 10,153 10,153 Level 2 PPPLF Advances 101,358 101,519 Level 2 Loan Participations 13,215 13,215 Level 2 Accrued Interest Payable 546 546 Level 2 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE INSTRUMENTS | |
DERIVATIVE INSTRUMENTS | NOTE 11 — CUSTOMER DERIVATIVES — INTEREST RATE SWAPS During the first quarter of 2021, the Company established a program whereby it originates a variable rate loan and enters into a variable-to-fixed interest rate SWAP with the customer. The Company also enters into an offsetting SWAP with a SWAP dealer. These back-to-back SWAP agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The SWAPs with both the customers and third 815, Derivatives and Hedging earnings; however, there may 820, Fair Value Measurement and Disclosure 820” million. Additionally, we recorded million, which were fully collateralized with pledged securities held with counterparty in excess of the exposure amount at quarter end. |
LOAN COMMITMENTS AND OTHER RELA
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | 6 Months Ended |
Jun. 30, 2021 | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | NOTE 12 — LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at June 30, 2021 and December 31, 2020, were as follows: (Dollars in thousands) June 30, 2021 December 31, 2020 Unfunded lines of credit $ 366,015 $ 356,955 Commitments to extend credit 83,857 40,629 Letters of credit 11,226 13,036 Total credit extension commitments $ 461,098 $ 410,620 |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 6 Months Ended |
Jun. 30, 2021 | |
REGULATORY CAPITAL MATTERS | |
REGULATORY CAPITAL MATTERS | NOTE 13 — REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for United States banks (Basel III rules) became effective for the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for June 30, 2021, is 2.50% and for December 31, 2020, was 2.50%. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of June 30, 2021, the Bank met all capital adequacy requirements to which it was subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At June 30, 2021 and December 31, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. Actual and required capital amounts and ratios are presented below at June 30, 2021 and December 31, 2020. The required amounts for capital adequacy shown below do not include the capital conservation buffer previously discussed. Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Total capital ratio Bank $ 198,836 12.8 % $ 124,003 8.0 % $ 155,004 10.0 % Company 218,325 14.1 % 124,003 8.0 % N/A N/A Tier 1 capital ratio Bank 187,416 12.1 % 93,002 6.0 % 124,003 8.0 % Company 196,844 12.7 % 93,002 6.0 % N/A N/A Tier1 leverage ratio Bank 187,416 7.4 % 101,368 4.0 % 126,710 5.0 % Company 196,844 7.8 % 101,368 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 187,416 12.1 % 69,752 4.5 % 100,753 6.5 % Company 196,844 12.7 % 69,752 4.5 % N/A N/A Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital ratio Bank $ 176,633 12.0 % $ 117,298 8.0 % $ 146,623 10.0 % Company 215,977 14.7 % 117,298 8.0 % N/A N/A Tier 1 capital ratio Bank 159,448 10.9 % 87,974 6.0 % 117,298 8.0 % Company 188,639 12.9 % 87,974 6.0 % N/A N/A Tier1 leverage ratio Bank 159,448 8.4 % 75,723 4.0 % 94,654 5.0 % Company 188,639 10.0 % 75,723 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 159,448 10.9 % 65,980 4.5 % 95,305 6.5 % Company 188,639 12.9 % 65,980 4.5 % N/A N/A |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
STOCK BASED COMPENSATION | |
STOCK BASED COMPENSATION | NOTE 14 — STOCK BASED COMPENSATION Restricted Stock An award of restricted stock involves the immediate transfer by the Company to the participant of a specific number of shares of our Class A voting common stock, which are subject to a risk of forfeiture and a restriction on transferability. This restriction will lapse following a stated period of time. The participant does not pay for the restricted stock and has all of the rights of a holder of a share of our Class A voting common stock (except for the restriction on transferability), including the right to vote and receive dividends unless otherwise determined by the Compensation Committee and set forth in the award agreement. The Company has limited the aggregate number of shares of our Class A voting common stock to be awarded under the 2019 Equity Incentive Plan as restricted stock to 300,000 shares. The Company has 222,009 shares of restricted stock outstanding, at a weighted average exercise price of $16.82, to employees and directors under the 2019 Equity Incentive Plan as of June 30, 2021, for which the Company did not receive, nor will it receive, any monetary consideration. Therefore, there were 77,991 restricted shares available to be issued at June 30, 2021. As of June 30, 2021, there was approximately $2.9 million in unrecognized compensation expense in regard to restricted stock that will be recognized over a three-year period. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | NOTE 15 — LEASES Operating leases in which the Company is the lessee are recorded as right-of-use (“ROU”) assets and operating lease liabilities, including premises and equipment and other liabilities, respectively on the Consolidated Balance Sheets. Currently the Company does not have any lessor leases (formerly known as capital leases) to report on its financials. The Company’s ROU assets are classified under premises and equipment on the Balance Sheet. The ROU liabilities are classified under other liabilities. The Company did not record new ROU during the six months ended June 30, 2021, and recorded $2.0 million during the year ended December 31, 2020. The total amount of ROU was $5.6 and $6.5 million at June 30, 2021 and December 31, 2020, respectively. The majority of the Company’s lessee leases are operating leases and consist of leased real estate for branches and operations centers. The Company elected the short term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. The ROU assets represent the Company’s right to use the underlying assets during the lease term and operating liabilities represent the obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Variable payments generally consist of common area maintenance and taxes. Rent escalations are generally specified by a payment schedule or are subject to a defined formula. The Company also does not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. Lease cost for the three and six months ended June 30, 2021 and 2020 consists of: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating Lease and Interest Cost $ 326 $ 445 $ 794 $ 756 Variable Lease Cost 82 142 199 249 Total Lease Cost $ 408 $ 587 $ 993 $ 1,005 The following table provides supplemental information related to leases for the three and six months ended June 30, 2021 and 2020: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating Lease - Operating Cash Flows (Fixed Payments) $ 326 $ 445 $ 793 $ 756 Operating Lease - Operating Cash Flows (Liability Reduction) $ 296 $ 416 $ 921 $ 669 New ROU Assets - Operating Leases $ — $ — $ — $ 1,620 Weighted Average Lease Term (Years) - Operating Leases 5.25 6.02 Weighted Average Discount Rate - Operating Leases % % 3.13 % 3.02 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of June 30, 2021, is as follows: June 30, 2021 Operating lease payments due: Within one year $ 1,400 After one but within two years 1,421 After two but within three years 1,296 After three but within four years 1,093 After four years but within five years 955 After five years 706 Total undiscounted cash flows 6,871 Discount on cash flows (1,291) Total operating lease liabilities $ 5,580 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | NOTE 16 — SUBSEQUENT EVENTS Loan Production Offices On July 12, 2021, the Company expanded its Florida footprint by opening up two new loan production offices in Tampa/St. Petersburg and Jacksonville. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements of Professional Holding Corp. and its subsidiary, Professional Bank (the “Bank” and collectively with Professional Holding Corp., the “Company”), have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of estimates | Use of Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Adoption of new accounting standards | Adoption of new accounting standards: ASU 2019-12, Income Taxes (Topic 740) In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, FASB issued guidance which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate ("LIBOR") likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020 and December 31, 2022. The Company has established a cross-functional working group to guide the Company’s transition from LIBOR and has begun efforts to transition to alternative rates consistent with industry timelines. The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The Company is evaluating existing platforms and systems and preparing to offer new rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. New accounting standards that have not yet been adopted: The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company’s financial statements: ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Description In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (CECL) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). Date of Adoption For PBEs that are non-SEC filers and for SEC filers that are considered small reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company's management is in the process of evaluating credit loss estimation models. Updates to business processes and the documentation of accounting policy decisions are ongoing. The company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company's consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
Schedule of Basic and Diluted Earnings per share | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per share: Net income $ 6,331 $ 3,131 $ 11,116 $ 1,814 Total weighted average common stock outstanding 13,397,747 13,415,525 13,419,929 11,516,756 Net income per share $ 0.47 $ 0.23 $ 0.83 $ 0.16 Diluted earnings per share: Net income $ 6,331 $ 3,131 $ 11,116 $ 1,814 Total weighted average common stock outstanding 13,397,747 13,415,525 13,419,929 11,516,756 Add: Dilutive effect of employee stock options 564,822 518,435 521,900 526,503 Total weighted average diluted stock outstanding 13,962,569 13,933,960 13,941,829 12,043,259 Net income per share $ 0.45 $ 0.22 $ 0.80 $ 0.15 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES | |
Schedule of amortized cost and fair value of securities available-for-sale and securities held-to-maturity | Gross Gross Amortized Unrealized Unrealized June 30, 2021 Cost Gains Losses Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 43,091 $ 78 $ (573) $ 42,596 Mortgage-backed securities 54,517 205 (182) 54,540 United States agency obligations 2,001 88 - 2,089 Corporate bonds 1,500 10 - 1,510 Total available-for-sale - taxable $ 101,109 $ 381 $ (755) $ 100,735 Available-for-sale - tax exempt Community Development District bonds $ 17,954 $ 704 $ - $ 18,658 Municipals 1,057 46 - 1,103 Total available-for-sale - tax exempt $ 19,011 $ 750 $ - $ 19,761 Gross Gross Amortized Unrecognized Unrecognized Cost Gains Losses Fair Value Held-to-Maturity Mortgage-backed securities $ 285 $ 11 $ — $ 296 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,285 $ 11 $ — $ 1,296 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 - 3,122 Corporate bonds 2,501 9 - 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ - $ 21,299 Municipals 1,064 35 - 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ - $ 22,398 Gross Gross Amortized Unrecognized Unrecognized Fair Cost Gains Losses Value Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561 |
Scheduled maturities of securities | June 30, 2021 Amortized Fair Cost Value Available-for-sale Due in one year or less $ 1,038 $ 1,056 Due after one year through five years 21,159 21,975 Due after five years through ten years 315 329 Due after ten years — — Subtotal $ 22,512 $ 23,360 Small Business Administration loan pools $ 43,091 $ 42,596 Mortgage-backed securities 54,517 54,540 Total available-for-sale $ 120,120 $ 120,496 Held-to-maturity Due in one year or less $ 1,000 $ 1,000 Due after one year through five years — — Subtotal $ 1,000 $ 1,000 Mortgage-backed securities $ 285 $ 296 Total held-to-maturity $ 1,285 $ 1,296 |
Summary of securities with unrealized losses by major security type and length of time in a continuous unrealized loss position | Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses June 30, 2021 Available-for-sale - taxable Small Business Administration loan pools $ 15,273 $ (427) $ 17,777 $ (146) $ 33,050 $ (573) Mortgage-backed securities 14,648 (181) 1,286 (1) 15,934 (182) United States agency obligations — — — — — — Corporate bonds — — — — — — Total available-for-sale - taxable $ 29,921 $ (608) $ 19,063 $ (147) $ 48,984 $ (755) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — December 31, 2020 Available-for-sale - taxable Small Business Administration loan pools $ 18,849 $ (133) $ 8,945 $ (66) $ 27,794 $ (199) Mortgage-backed securities 5,839 — 2,510 (30) 8,349 (30) United States agency obligations 227 — — — 227 — Corporate bonds — — — — — — Total available-for-sale - taxable $ 24,915 $ (133) $ 11,455 $ (96) $ 36,370 $ (229) Available-for-sale - tax exempt Community Development District bonds $ — $ — $ — $ — $ — $ — Municipals — — — — — — Total available-for-sale - tax exempt $ — $ — $ — $ — $ — $ — |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
Summary of loans | Loans at June 30, 2021 and December 31, 2020, were as follows: June 30, 2021 December 31, 2020 Commercial real estate $ 875,453 $ 777,776 Residential real estate 361,946 380,491 Commercial 373,333 396,642 Construction and land development 74,175 99,883 Consumer and other 14,575 11,688 Total loans 1,699,482 1,666,480 Unearned loan origination (fees) costs, net (1,984) (1,323) Unearned PPP loan origination (fees) costs, net (4,855) (4,255) Allowance for loan loss (10,418) (16,259) Loans held for sale (2,039) (1,270) Other (18) — Loans, net $ 1,680,168 $ 1,643,373 |
Schedule of aging of the recorded investment in past due loans | 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total June 30, 2021 Commercial real estate $ — $ — $ — $ — $ — $ 875,453 $ 875,453 Residential real estate — — — — — 361,946 361,946 Commercial — — — 1,468 1,468 371,865 373,333 Construction and land development — — — — — 74,175 74,175 Consumer and other — 94 — 1,307 1,401 13,174 14,575 Total $ — $ 94 $ — $ 2,775 $ 2,869 $ 1,696,613 $ 1,699,482 30 – 59 60 – 89 Greater than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Nonaccrual Past Due Past Due Total December 31, 2020 Commercial real estate $ — $ — $ — $ — $ — $ 777,776 $ 777,776 Residential real estate 1,303 — — — 1,303 379,188 380,491 Commercial 278 — — 9,127 9,405 387,237 396,642 Construction and land development — — — — — 99,883 99,883 Consumer and other — — — 1,307 1,307 10,381 11,688 Total $ 1,581 $ — $ — $ 10,434 $ 12,015 $ 1,654,465 $ 1,666,480 |
Summary of analysis performed, the risk category of loans by class of loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: Special (Dollars in thousands) Pass Mention Substandard Doubtful Total June 30, 2021 Commercial real estate $ 873,127 $ — $ 2,326 $ — $ 875,453 Residential real estate 361,946 — — — 361,946 Commercial 371,400 465 1,468 — 373,333 Construction and land development 74,175 — — — 74,175 Consumer 13,174 94 1,307 — 14,575 Total $ 1,693,822 $ 559 $ 5,101 $ — $ 1,699,482 December 31, 2020 Commercial real estate $ 775,420 $ — $ 2,356 $ — $ 777,776 Residential real estate 380,062 429 — — 380,491 Commercial 387,403 112 9,127 — 396,642 Construction and land development 99,883 — — — 99,883 Consumer 10,381 — 1,307 — 11,688 Total $ 1,653,149 $ 541 $ 12,790 $ — $ 1,666,480 |
Schedule of Purchased Credit Impaired loans at carrying amount | (Dollars in thousands) June 30, 2021 December 31, 2020 Commercial real estate (1) $ 5,892 $ — Residential real estate 452 405 Commercial 616 746 Construction and development (1) — 3,732 Carrying amount, net of total discounts $ 6,960 $ 4,883 |
Rollforward of Accretable yield, or income expected to be collected | Changes in the carrying amount of the accretable yield for all purchased credit impaired loans were as follows for the six months ended June 30, 2021: (Dollars in thousands) 2021 Balance at beginning of period $ (630) Adjustment of income — Accretion 195 Reclassifications from nonaccretable difference (136) Disposals — Balance at end of period $ (571) |
Schedule of purchase credit impaired loans for which it was probable at acquisition that all contractually required payments would not be collected for which it was probable at acquisition that all contractually required payments would not be collected | (Dollars in thousands) March 26, 2020 Contractually required principal and interest by loan type Commercial real estate $ 427 Residential real estate 604 Commercial 2,176 Construction and development 5,614 Consumer and other loans - Total $ 8,821 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 80 Residential real estate 138 Commercial 1,123 Construction and development 2,297 Consumer and other loans - Total $ 3,638 Expected cash flows $ 5,183 Interest component of expected cash flows (accretable discount) (545) Fair value of PCI loans accounted for under ASC 310-30 $ 4,638 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ALLOWANCE FOR LOAN LOSSES | |
Schedule of allowance for loan losses by portfolio segment | Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total June 30, 2021 Allowance for loan losses: Beginning balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Provision for loan losses 1,126 92 602 (27) 7 1,800 Loans charged-off - - (7,641) - - (7,641) Recoveries - - - - - - Total ending allowance balance $ 4,285 $ 2,269 $ 3,423 $ 361 $ 80 $ 10,418 Construction Commercial Residential and land Consumer Real Estate Real Estate Commercial Development and Other Total December 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 1,314 (731) 9,326 116 (8) 10,017 Loans charged-off — (207) (99) — — (306) Recoveries — — — — — — Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 |
Summary of loans by portfolio segment and impairment method | Construction Commercial Residential and Land Consumer Real Estate Real Estate Commercial Development and Other Total June 30, 2021 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 658 $ — $ — $ 658 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 4,285 2,269 2,765 361 80 9,760 Total ending allowance balance $ 4,285 $ 2,269 $ 3,423 $ 361 $ 80 $ 10,418 Loans: Loans individually evaluated for impairment $ 2,326 $ 252 $ 1,468 $ — $ 1,307 $ 5,353 Loans collectively evaluated for impairment 873,127 361,694 371,865 74,175 13,268 1,694,129 Total ending loans balance $ 875,453 $ 361,946 $ 373,333 $ 74,175 $ 14,575 $ 1,699,482 December 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 8,309 $ — $ — $ 8,309 Purchased Credit Impaired (PCI) loans — — — — — Collectively evaluated for impairment 3,159 2,177 2,153 388 73 7,950 Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Loans: Loans individually evaluated for impairment $ 2,356 $ 298 $ 9,127 $ — $ 1,307 $ 13,088 Loans collectively evaluated for impairment 775,420 380,193 387,515 99,883 10,381 1,653,392 Total ending loans balance $ 777,776 $ 380,491 $ 396,642 $ 99,883 $ 11,688 $ 1,666,480 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DEPOSITS. | |
Schedule of deposits | The Company’s total deposits are comprised of the following at the dates indicated: For the Six Months Ended For the Year Ended June 30, 2021 December 31, 2020 Ending Ending (Dollars in thousands) Balance % of Total Balance % of Total NOW accounts $ 286,173 12.6 % $ 232,367 14.0 % Money market accounts 810,913 35.6 % 679,761 41.0 % Brokered deposits 56,534 2.5 % 30,137 1.8 % Savings accounts 11,814 0.5 % 9,727 0.6 % Certificates of deposit 257,056 11.3 % 231,953 14.0 % Total interest-bearing deposits 1,422,490 62.5 % 1,183,945 71.3 % Noninterest-bearing deposits 854,673 37.5 % 475,598 28.7 % Total deposits $ 2,277,163 100.0 % $ 1,659,543 100.0 % |
Schedule of maturities of our time deposits that meet or exceed the $250,000 FDIC insurance limit | The following table presents the maturities of our time deposits including time deposits that exceed the $250,000 FDIC insurance limit as of June 30, 2021 Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits of $250,000 or less $ 15,852 $ 12,749 $ 43,020 $ 22,047 $ 93,668 Time deposits of more than $250,000 23,302 24,537 85,376 34,797 168,012 Total $ 39,154 $ 37,286 $ 128,396 $ 56,844 $ 261,680 The following tables present the maturities of our time deposits including time deposits that exceed the $250,000 FDIC insurance limit as of December 31, 2020 Over Over Six Three Three Months Months or Through Through Over (Dollars in thousands) Less Six Months 12 Months 12 Months Total Time deposits of $250,000 or less $ 20,767 $ 13,258 $ 24,805 $ 19,240 $ 78,070 Time deposits of more than $250,000 40,189 35,314 42,844 40,158 158,505 Total $ 60,956 $ 48,572 $ 67,649 $ 59,398 $ 236,575 |
Scheduled maturities of time deposits | For time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years at the dates indicated. June 30, 2021 December 31, 2020 Less than 1 year $ 204,836 $ 177,178 Over 1 through 2 years 55,625 57,034 Over 2 through 3 years 1,179 1,658 Over 3 through 4 years 40 705 Over 4 through 5 years - - Over 5 years - - Total $ 261,680 $ 236,575 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
BORROWINGS | |
Schedule of Advances from the Federal Home Loan Bank | Six Months Ended Year Ended (Dollars in thousands) June 30, 2021 December 31, 2020 Amount outstanding at period-end $ 35,000 $ 40,000 Weighted average interest rate at period-end 2.04 % 1.96 % Maximum month-end balance during period $ 40,000 $ 70,000 Average balance outstanding during period 38,867 58,210 Weighted average interest rate during period 1.98 % 1.63 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE. | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value Measurements at June 30, 2021 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs June 30, 2021 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 42,596 $ — $ 42,596 $ — Mortgage-backed securities 54,540 — 54,540 — United States agency obligations 2,089 — 2,089 — Corporate bonds 1,510 — 1,510 — Total $ 100,735 $ — $ 100,735 $ — Available-for-sale - tax exempt Community Development District bonds $ 18,658 $ — $ 18,658 $ — Municipals 1,103 — 1,103 — Total $ 19,761 $ — $ 19,761 $ — Equity Mutual funds $ 5,942 $ 5,942 $ — $ — Total $ 5,942 $ 5,942 $ — $ — Fair Value Measurements at December 31, 2020 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs December 31, 2020 Value (Level 1) (Level 2) (Level 3) Available-for-sale - taxable Small Business Administration loan pools $ 30,556 $ — $ 30,556 $ — Mortgage-backed securities 28,922 — 28,922 — United States agency obligations 3,122 — 3,122 — Corporate bonds 2,510 — 2,510 — Total $ 65,110 $ — $ 65,110 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,299 $ — $ 21,299 $ — Municipals 1,099 — 1,099 — Total $ 22,398 $ — $ 22,398 $ — Equity Mutual funds $ 6,005 $ 6,005 $ — $ — Total $ 6,005 $ 6,005 $ — $ — |
Schedule of Assets Measured at Fair Value on a Non-recurring Basis | Fair Value Measurements at June 30, 2021 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable June 30, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2021 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 810 — — 810 (658) Construction and land development — — — — — Consumer and other — — — — — Total $ 810 $ — $ — $ 810 $ (658) Fair Value Measurements at December 31, 2020 Using: Significant Quoted Prices in Other Significant Total at Active Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs Total Gains (Dollars in thousands) 2020 (Level 1) (Level 2) (Level 3) (Losses) Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 818 — — 818 (8,309) Construction and land development — — — — — Consumer and other — — — — — Total $ 818 $ — $ — $ 818 $ (8,309) |
Schedule of carrying amount and estimated fair value of the Bank's financial instruments | June 30, 2021 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 616,180 $ 616,180 Level 1 Federal Funds Sold 36,156 36,156 Level 1 Securities, Available for Sale - taxable 101,109 100,735 Level 2 Securities, Available for Sale - tax exempt 19,011 19,761 Level 2 Securities, Held to Maturity 1,285 1,296 Level 2 Securities, Equity 5,942 5,942 Level 1 Loans, net 1,680,168 1,702,726 Level 3 Loans Held For Sale 2,039 2,039 Level 1 Bank Owned Life Insurance 37,923 37,923 Level 2 Accrued Interest Receivable 5,449 5,449 Level 1, 2 & 3 Customer Derivatives - Interest Rate SWAPs 863 863 Level 2 Financial Liabilities: Deposits 2,277,163 2,246,864 Level 2 Federal Home Loan Bank Advances 35,000 33,671 Level 2 Subordinated Debt 10,062 10,062 Level 2 PPPLF Advances — — Level 2 Loan Participations — — Level 2 Customer Derivatives - Interest Rate SWAPs 863 863 Level 2 Accrued Interest Payable 267 267 Level 2 December 31, 2020 Carrying Fair Fair Value Amount Value Hierarchy Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 191,597 $ 191,597 Level 1 Federal Funds Sold 25,375 25,375 Level 1 Securities, Available for Sale - taxable 65,110 65,110 Level 2 Securities, Available for Sale - tax exempt 22,398 22,398 Level 2 Securities, Held to Maturity 1,547 1,561 Level 2 Securities, Equity 6,005 6,005 Level 1 Loans, net 1,643,373 1,653,401 Level 3 Loans Held For Sale 1,270 1,270 Level 1 Bank Owned Life Insurance 37,360 37,360 Level 2 Accrued Interest Receivable 6,666 6,666 Level 1, 2 & 3 Financial Liabilities: Deposits 1,659,543 1,693,331 Level 2 Federal Home Loan Bank Advances 40,000 37,927 Level 2 Subordinated Debt 10,153 10,153 Level 2 PPPLF Advances 101,358 101,519 Level 2 Loan Participations 13,215 13,215 Level 2 Accrued Interest Payable 546 546 Level 2 |
Schedule of Customer Derivatives - Interest Rate SWAP | at June 30, 2021 Using: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs June 30, 2021 Value (Level 1) (Level 2) (Level 3) Customer Derivatives: Interest Rate SWAPs Customer Derivatives - Interest Rate SWAPs Asset $ 863 $ — $ 863 $ — Customer Derivatives - Interest Rate SWAPs Liability (863) — (863) — Total $ — $ — $ — $ — |
LOAN COMMITMENTS AND OTHER RE_2
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | |
Schedule of contractual amounts of financial instruments with off-balance-sheet risk | (Dollars in thousands) June 30, 2021 December 31, 2020 Unfunded lines of credit $ 366,015 $ 356,955 Commitments to extend credit 83,857 40,629 Letters of credit 11,226 13,036 Total credit extension commitments $ 461,098 $ 410,620 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
REGULATORY CAPITAL MATTERS | |
Schedule of compliance with regulatory capital requirements | Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Total capital ratio Bank $ 198,836 12.8 % $ 124,003 8.0 % $ 155,004 10.0 % Company 218,325 14.1 % 124,003 8.0 % N/A N/A Tier 1 capital ratio Bank 187,416 12.1 % 93,002 6.0 % 124,003 8.0 % Company 196,844 12.7 % 93,002 6.0 % N/A N/A Tier1 leverage ratio Bank 187,416 7.4 % 101,368 4.0 % 126,710 5.0 % Company 196,844 7.8 % 101,368 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 187,416 12.1 % 69,752 4.5 % 100,753 6.5 % Company 196,844 12.7 % 69,752 4.5 % N/A N/A Minimum to be well Actual Minimum for capital adequacy capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital ratio Bank $ 176,633 12.0 % $ 117,298 8.0 % $ 146,623 10.0 % Company 215,977 14.7 % 117,298 8.0 % N/A N/A Tier 1 capital ratio Bank 159,448 10.9 % 87,974 6.0 % 117,298 8.0 % Company 188,639 12.9 % 87,974 6.0 % N/A N/A Tier1 leverage ratio Bank 159,448 8.4 % 75,723 4.0 % 94,654 5.0 % Company 188,639 10.0 % 75,723 4.0 % N/A N/A Common equity tier 1 capital ratio Bank 159,448 10.9 % 65,980 4.5 % 95,305 6.5 % Company 188,639 12.9 % 65,980 4.5 % N/A N/A |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Schedule of lease cost | The majority of the Company’s lessee leases are operating leases and consist of leased real estate for branches and operations centers. The Company elected the short term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. The ROU assets represent the Company’s right to use the underlying assets during the lease term and operating liabilities represent the obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Variable payments generally consist of common area maintenance and taxes. Rent escalations are generally specified by a payment schedule or are subject to a defined formula. The Company also does not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. Lease cost for the three and six months ended June 30, 2021 and 2020 consists of: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating Lease and Interest Cost $ 326 $ 445 $ 794 $ 756 Variable Lease Cost 82 142 199 249 Total Lease Cost $ 408 $ 587 $ 993 $ 1,005 |
Schedule of supplemental information related to leases | The following table provides supplemental information related to leases for the three and six months ended June 30, 2021 and 2020: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Operating Lease - Operating Cash Flows (Fixed Payments) $ 326 $ 445 $ 793 $ 756 Operating Lease - Operating Cash Flows (Liability Reduction) $ 296 $ 416 $ 921 $ 669 New ROU Assets - Operating Leases $ — $ — $ — $ 1,620 Weighted Average Lease Term (Years) - Operating Leases 5.25 6.02 Weighted Average Discount Rate - Operating Leases % % 3.13 % 3.02 % |
Schedule of maturity analysis of operating lease liabilities | June 30, 2021 Operating lease payments due: Within one year $ 1,400 After one but within two years 1,421 After two but within three years 1,296 After three but within four years 1,093 After four years but within five years 955 After five years 706 Total undiscounted cash flows 6,871 Discount on cash flows (1,291) Total operating lease liabilities $ 5,580 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic earnings per share: | ||||
Net Income (loss) | $ 6,331 | $ 3,131 | $ 11,116 | $ 1,814 |
Total weighted average common stock outstanding | 13,397,747 | 13,415,525 | 13,419,929 | 11,516,756 |
Net income (loss) per share | $ 0.47 | $ 0.23 | $ 0.83 | $ 0.16 |
Diluted earnings per share: | ||||
Net Income (loss) | $ 6,331 | $ 3,131 | $ 11,116 | $ 1,814 |
Total weighted average common stock outstanding | 13,397,747 | 13,415,525 | 13,419,929 | 11,516,756 |
Add: Dilutive effect of employee stock options | 564,822 | 518,435 | 521,900 | 526,503 |
Total weighted average diluted stock outstanding | 13,962,569 | 13,933,960 | 13,941,829 | 12,043,259 |
Net income (loss) per share | $ 0.45 | $ 0.22 | $ 0.80 | $ 0.15 |
Stock options | ||||
Diluted earnings per share: | ||||
Anti-dilutive Stock Options | 270,850,000 | 29,350,000 | 270,850,000 | 29,350,000 |
SECURITIES - Unrealized Gains A
SECURITIES - Unrealized Gains And Losses - AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Available-for-sale | ||||
Gross Unrealized Losses, AFS | $ (700) | $ (700) | ||
Held-to-Maturity | ||||
Amortized Cost, HTM | 1,285 | 1,285 | $ 1,547 | |
Gross Unrealized Gains, HTM | 11 | 11 | 14 | |
Fair Value, HTM | 1,296 | 1,296 | 1,561 | |
Increase (decrease) in available for sale securities | 32,600 | |||
Increase (decrease) in net investment portfolio | 50,900 | |||
Decrease from pay downs, maturities and calls | 17,400 | |||
Proceeds from sales of securities | $ 1,739 | 1,700 | ||
Proceeds from calls of securities available for sale | 4,648 | $ 4,835 | ||
Gross realized gains | 4 | |||
Securities pledged | 13,300 | 13,300 | 12,500 | |
securities pledged for public funds | 1,100 | 1,100 | ||
Proceeds from the sales and redemption of held-to-maturity securities | 3,200 | 4,700 | 9,100 | |
Gross realized gains on held-to-maturity securities | 21 | 22 | 33 | |
Small Business Administration loan pools | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 43,091 | 43,091 | 30,678 | |
Gross Unrealized Gains, AFS | 78 | 78 | 77 | |
Gross Unrealized Losses, AFS | (573) | (573) | (199) | |
Fair Value, AFS | 42,596 | 42,596 | 30,556 | |
Mortgage backed securities | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 54,517 | 54,517 | 28,514 | |
Gross Unrealized Gains, AFS | 205 | 205 | 438 | |
Gross Unrealized Losses, AFS | (182) | (182) | (30) | |
Fair Value, AFS | 54,540 | 54,540 | 28,922 | |
Held-to-Maturity | ||||
Amortized Cost, HTM | 285 | 285 | 345 | |
Gross Unrealized Gains, HTM | 11 | 11 | 14 | |
Fair Value, HTM | 296 | 296 | 359 | |
U.S. agency obligations | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 2,001 | 2,001 | 3,000 | |
Gross Unrealized Gains, AFS | 88 | 88 | 122 | |
Fair Value, AFS | 2,089 | 2,089 | 3,122 | |
Community Development District bonds | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 17,954 | 17,954 | 20,582 | |
Gross Unrealized Gains, AFS | 704 | 704 | 717 | |
Fair Value, AFS | 18,658 | 18,658 | 21,299 | |
Municipals | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 1,057 | 1,057 | 1,064 | |
Gross Unrealized Gains, AFS | 46 | 46 | 35 | |
Fair Value, AFS | 1,103 | 1,103 | 1,099 | |
US Treasury | ||||
Held-to-Maturity | ||||
Amortized Cost, HTM | 202 | |||
Fair Value, HTM | 202 | |||
Foreign Bonds | ||||
Held-to-Maturity | ||||
Amortized Cost, HTM | 1,000 | 1,000 | 1,000 | |
Fair Value, HTM | 1,000 | 1,000 | 1,000 | |
Corporate bonds | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 1,500 | 1,500 | 2,501 | |
Gross Unrealized Gains, AFS | 10 | 10 | 9 | |
Fair Value, AFS | 1,510 | 1,510 | 2,510 | |
Available-for-sale - taxable | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 101,109 | 101,109 | 64,693 | |
Gross Unrealized Gains, AFS | 381 | 381 | 646 | |
Gross Unrealized Losses, AFS | (755) | (755) | (229) | |
Fair Value, AFS | 100,735 | 100,735 | 65,110 | |
Available-for-sale - tax exempt | ||||
Available-for-sale | ||||
Amortized Cost, AFS, Total | 19,011 | 19,011 | 21,646 | |
Gross Unrealized Gains, AFS | 750 | 750 | 752 | |
Fair Value, AFS | $ 19,761 | $ 19,761 | $ 22,398 |
SECURITIES - Maturities Of Secu
SECURITIES - Maturities Of Securities (Details) $ in Thousands | Jun. 30, 2021USD ($)loanitem | Dec. 31, 2020itemloan |
Available for sale, Amortized cost | ||
Due in one year or less | $ 1,038 | |
Due after one year through five years | 21,159 | |
Due after five years through ten years | 315 | |
Amortized Cost, AFS | 22,512 | |
Amortized Cost, AFS, One to Five Year Maturity | 120,120 | |
Available for sale, Fair value | ||
Due in one year or less | 1,056 | |
Due after one year through five years | 21,975 | |
Due after five years through ten years | 329 | |
Fair Value, AFS | 23,360 | |
Fair Value, AFS, One to Five Year Maturity | 120,496 | |
Held to maturity, Amortized cost | ||
Due in one year or less | 1,000 | |
Amortized Cost, HTM | 1,000 | |
Held to maturity, Fair value | ||
Due in one year or less | 1,000 | |
Fair Value, HTM | 1,000 | |
Amortized Cost, HTM, without single maturity date | 1,285 | |
Fair Value, HTM, without single maturity date | $ 1,296 | |
Percentage of holding of securities of shareholder's equity | 10.00% | 10.00% |
Number of holdings of securities of any one issuer | item | 0 | 0 |
Number of investment positions that are in an unrealized loss position | loan | 48 | 36 |
Small Business Administration loan pools | ||
Available for sale, Amortized cost | ||
Amortized Cost, AFS, One to Five Year Maturity | $ 43,091 | |
Available for sale, Fair value | ||
Fair Value, AFS, One to Five Year Maturity | 42,596 | |
Mortgage backed securities | ||
Available for sale, Amortized cost | ||
Amortized Cost, AFS, One to Five Year Maturity | 54,517 | |
Available for sale, Fair value | ||
Fair Value, AFS, One to Five Year Maturity | 54,540 | |
Held to maturity, Fair value | ||
Amortized Cost, HTM, without single maturity date | 285 | |
Fair Value, HTM, without single maturity date | $ 296 |
SECURITIES - Unrealized Losses
SECURITIES - Unrealized Losses By Security Type And Time (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Credit losses recognized | $ 0 | $ 0 |
Small Business Administration loan pools | ||
Marketable Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 15,273 | 18,849 |
12 Months or Longer, Fair Value | 17,777 | 8,945 |
Total Fair Value | 33,050 | 27,794 |
Unrealized Losses | ||
Less Than 12 Months, Unrealized Losses | (427) | (133) |
12 Months or Longer, Unrealized Losses | (146) | (66) |
Total Unrealized Losses | (573) | (199) |
Mortgage backed securities | ||
Marketable Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 14,648 | 5,839 |
12 Months or Longer, Fair Value | 1,286 | 2,510 |
Total Fair Value | 15,934 | 8,349 |
Unrealized Losses | ||
Less Than 12 Months, Unrealized Losses | (181) | |
12 Months or Longer, Unrealized Losses | (1) | (30) |
Total Unrealized Losses | (182) | (30) |
U.S. agency obligations | ||
Marketable Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 227 | |
Total Fair Value | 227 | |
Available-for-sale - taxable | ||
Marketable Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 29,921 | 24,915 |
12 Months or Longer, Fair Value | 19,063 | 11,455 |
Total Fair Value | 48,984 | 36,370 |
Unrealized Losses | ||
Less Than 12 Months, Unrealized Losses | (608) | (133) |
12 Months or Longer, Unrealized Losses | (147) | (96) |
Total Unrealized Losses | $ (755) | $ (229) |
LOANS - Major Classifications o
LOANS - Major Classifications of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | $ 1,699,482 | $ 1,666,480 | |
Unearned loan origination (fees) costs, net | (1,984) | (1,323) | |
Unearned PPP loan origination (fees) costs, net | (4,855) | (4,255) | |
Allowance for loan losses | (10,418) | (16,259) | $ (6,548) |
Loans held for sale | 2,039 | 1,270 | |
Other | (18) | ||
Loans, net | 1,680,168 | 1,643,373 | |
Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 74,175 | 99,883 | |
Allowance for loan losses | (361) | (388) | (272) |
Consumer Portfolio Segment | Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 361,946 | 380,491 | |
Allowance for loan losses | (2,269) | (2,177) | (3,115) |
Consumer Portfolio Segment | Consumer and Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 14,575 | 11,688 | |
Allowance for loan losses | (80) | (73) | (81) |
Commercial Portfolio Segment | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 875,453 | 777,776 | |
Allowance for loan losses | (4,285) | (3,159) | (1,845) |
Commercial Portfolio Segment | Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total | 373,333 | 396,642 | |
Allowance for loan losses | $ (3,423) | $ (10,462) | $ (1,235) |
LOANS - Past Due Loans (Details
LOANS - Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Non accrual | $ 2,775 | $ 10,434 |
Total Past Due | 2,869 | 12,015 |
Loans Not Past Due | 1,696,613 | 1,654,465 |
Total | 1,699,482 | 1,666,480 |
30 - 59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,581 | |
60 - 89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 94 | |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Not Past Due | 74,175 | 99,883 |
Total | 74,175 | 99,883 |
Consumer Portfolio Segment | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,303 | |
Loans Not Past Due | 361,946 | 379,188 |
Total | 361,946 | 380,491 |
Consumer Portfolio Segment | Residential real estate | 30 - 59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,303 | |
Consumer Portfolio Segment | Consumer and Other | ||
Financing Receivable, Past Due [Line Items] | ||
Non accrual | 1,307 | 1,307 |
Total Past Due | 1,401 | 1,307 |
Loans Not Past Due | 13,174 | 10,381 |
Total | 14,575 | 11,688 |
Consumer Portfolio Segment | Consumer and Other | 60 - 89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 94 | |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans Not Past Due | 875,453 | 777,776 |
Total | 875,453 | 777,776 |
Commercial Portfolio Segment | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Non accrual | 1,468 | 9,127 |
Total Past Due | 1,468 | 9,405 |
Loans Not Past Due | 371,865 | 387,237 |
Total | $ 373,333 | 396,642 |
Commercial Portfolio Segment | Commercial | 30 - 59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 278 |
LOANS - Risk Category (Details)
LOANS - Risk Category (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1,699,482 | $ 1,666,480 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,693,822 | 1,653,149 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 559 | 541 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,101 | 12,790 |
Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 74,175 | 99,883 |
Construction and land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 74,175 | 99,883 |
Consumer Portfolio Segment | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 361,946 | 380,491 |
Consumer Portfolio Segment | Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 361,946 | 380,062 |
Consumer Portfolio Segment | Residential real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 429 | |
Consumer Portfolio Segment | Consumer and Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 14,575 | 11,688 |
Consumer Portfolio Segment | Consumer and Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 13,174 | 10,381 |
Consumer Portfolio Segment | Consumer and Other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 94 | |
Consumer Portfolio Segment | Consumer and Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,307 | 1,307 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 875,453 | 777,776 |
Commercial Portfolio Segment | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 873,127 | 775,420 |
Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 2,326 | 2,356 |
Commercial Portfolio Segment | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 373,333 | 396,642 |
Commercial Portfolio Segment | Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 371,400 | 387,403 |
Commercial Portfolio Segment | Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 465 | 112 |
Commercial Portfolio Segment | Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 1,468 | $ 9,127 |
LOANS - Narratives (Details)
LOANS - Narratives (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | Mar. 31, 2021USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | |||||||
Total loans pledged to the Federal Home Loan Bank | $ 209,900,000 | $ 209,900,000 | $ 227,800,000 | ||||
Loan premiums on BAC purchased loans | 500,000 | $ 500,000 | $ 600,000 | ||||
Number of loans individually evaluated for impairment with an allowance recorded | loan | 6 | 6 | |||||
Non accrual | $ 2,775,000 | $ 2,775,000 | $ 10,434,000 | ||||
Number of loans past due over 90 days | loan | 0 | 0 | |||||
Number of impaired loans | loan | 3 | 3 | 3 | ||||
Recorded investment with no allowance | $ 5,400,000 | $ 5,400,000 | $ 13,100,000 | ||||
Recorded investment with allowance | 2,800,000 | 2,800,000 | 10,400,000 | ||||
Allowance | 700,000 | 700,000 | 8,300,000 | ||||
Average net investment | 900,000 | 2,200,000 | |||||
Interest income recognized | 2,400 | $ 5,000 | 2,400 | $ 5,000 | 12,700 | ||
Loans that met the criteria for consideration as a troubled debt restructuring | 252,000 | 298,000 | |||||
Specific reserve | 0 | 0 | 0 | ||||
Threshold credit value for annual review | 1,000,000 | 1,000,000 | |||||
Proceeds from financial institutions | $ 218,080,000 | ||||||
Total loans | 1,680,168,000 | 1,680,168,000 | 1,643,373,000 | ||||
Loans allowances | 10,418,000 | $ 10,418,000 | 16,259,000 | $ 6,548,000 | |||
Number of loans processed | loan | 2,287 | ||||||
Loans funded | $ 340,500,000 | $ 340,500,000 | |||||
Repayments of PPPLF advances | $ 101,358,000 | ||||||
Number of loans funded | loan | 172 | 172 | |||||
Number of loans forgiven | loan | 1,362 | ||||||
Amount of loans funded | $ 17,600,000 | ||||||
Amount of loans forgiven | $ 196,900,000 | ||||||
Remaining outstanding | 0 | 0 | |||||
Loans and Leases Receivable, Gross | 1,699,482,000 | 1,699,482,000 | 1,666,480,000 | ||||
Amount of loans been paid off | 0 | ||||||
Non-Performing Assets | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Total loans | $ 2,800,000 | $ 2,800,000 | $ 10,400,000 | ||||
Percentage of non-performing assets to total assets | 0.11% | 0.11% | 0.51% | ||||
Substandard | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Number of impaired loans | loan | 1 | 1 | 1 | ||||
Recorded investment with no allowance | $ 2,300,000 | $ 2,300,000 | $ 2,400,000 | ||||
Loans and Leases Receivable, Gross | 5,101,000 | 5,101,000 | $ 12,790,000 | ||||
Coex Coffee International Inc. | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Aggregate outstanding balance collateral | $ 600,000 | $ 600,000 | |||||
Loans and Leases Receivable, Gross | $ 7,600,000 |
LOANS - Carrying Amount PCI Loa
LOANS - Carrying Amount PCI Loans and Accretable Yield (Details) - PCI loans - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | $ 6,960 | $ 4,883 |
Allowance for loan losses reversed | 0 | |
Accretable yield or income expected to be collected | ||
Balance at beginning of period | (630) | |
Accretion of income | 195 | |
Reclassifications from nonaccretable difference | (136) | |
Balance at end of period | (571) | |
Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | 3,732 | |
Consumer Portfolio Segment | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | 452 | 405 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | 5,892 | |
Commercial Portfolio Segment | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | $ 616 | $ 746 |
LOANS - PCI Loans Deemed Uncoll
LOANS - PCI Loans Deemed Uncollectable (Details) - PCI loans - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 26, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Interest component of expected cash flows (accretable discount) | $ (571) | $ (630) | |
Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | $ 8,821 | ||
Contractual cash flows not expected to be collected | (3,638) | ||
Expected cash flows | 5,183 | ||
Interest component of expected cash flows (accretable discount) | (545) | ||
Fair value of PCI loans accounted for under ASC 310-30 | 4,638 | ||
Construction and land development | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 5,614 | ||
Contractual cash flows not expected to be collected | (2,297) | ||
Consumer Portfolio Segment | Residential real estate | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 604 | ||
Contractual cash flows not expected to be collected | (138) | ||
Commercial Portfolio Segment | Commercial real estate | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 427 | ||
Contractual cash flows not expected to be collected | (80) | ||
Commercial Portfolio Segment | Commercial | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 2,176 | ||
Contractual cash flows not expected to be collected | $ (1,123) |
ALLOWANCE FOR LOAN LOSSES - Bal
ALLOWANCE FOR LOAN LOSSES - Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Allowance for loan losses | ||
Beginning balance | $ 16,259 | $ 6,548 |
Provision for loan losses | 1,800 | 10,017 |
Loans charged-off | (7,641) | (306) |
Total ending allowance balance | 10,418 | 16,259 |
Construction and land development | ||
Allowance for loan losses | ||
Beginning balance | 388 | 272 |
Provision for loan losses | (27) | 116 |
Total ending allowance balance | 361 | 388 |
Consumer Portfolio Segment | Residential real estate | ||
Allowance for loan losses | ||
Beginning balance | 2,177 | 3,115 |
Provision for loan losses | 92 | (731) |
Loans charged-off | (207) | |
Total ending allowance balance | 2,269 | 2,177 |
Consumer Portfolio Segment | Consumer and Other | ||
Allowance for loan losses | ||
Beginning balance | 73 | 81 |
Provision for loan losses | 7 | (8) |
Total ending allowance balance | 80 | 73 |
Commercial Portfolio Segment | Commercial real estate | ||
Allowance for loan losses | ||
Beginning balance | 3,159 | 1,845 |
Provision for loan losses | 1,126 | 1,314 |
Total ending allowance balance | 4,285 | 3,159 |
Commercial Portfolio Segment | Commercial | ||
Allowance for loan losses | ||
Beginning balance | 10,462 | 1,235 |
Provision for loan losses | 602 | 9,326 |
Loans charged-off | (7,641) | (99) |
Total ending allowance balance | $ 3,423 | $ 10,462 |
ALLOWANCE FOR LOAN LOSSES - All
ALLOWANCE FOR LOAN LOSSES - Allowance for Loans Losses and Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses | |||
Ending balance - individually evaluated for impairment | $ 658 | $ 8,309 | |
Ending balance- collectively evaluated for impairment | 9,760 | 7,950 | |
Total ending allowance balance | 10,418 | 16,259 | $ 6,548 |
Loans individually evaluated for impairment | 5,353 | 13,088 | |
Loans collectively evaluated for impairment | 1,694,129 | 1,653,392 | |
Total | 1,699,482 | 1,666,480 | |
Construction and land development | |||
Allowance for loan losses | |||
Ending balance- collectively evaluated for impairment | 361 | 388 | |
Total ending allowance balance | 361 | 388 | 272 |
Loans collectively evaluated for impairment | 74,175 | 99,883 | |
Total | 74,175 | 99,883 | |
Consumer Portfolio Segment | Residential real estate | |||
Allowance for loan losses | |||
Ending balance- collectively evaluated for impairment | 2,269 | 2,177 | |
Total ending allowance balance | 2,269 | 2,177 | 3,115 |
Loans individually evaluated for impairment | 252 | 298 | |
Loans collectively evaluated for impairment | 361,694 | 380,193 | |
Total | 361,946 | 380,491 | |
Consumer Portfolio Segment | Consumer and Other | |||
Allowance for loan losses | |||
Ending balance- collectively evaluated for impairment | 80 | 73 | |
Total ending allowance balance | 80 | 73 | 81 |
Loans individually evaluated for impairment | 1,307 | 1,307 | |
Loans collectively evaluated for impairment | 13,268 | 10,381 | |
Total | 14,575 | 11,688 | |
Commercial Portfolio Segment | Commercial real estate | |||
Allowance for loan losses | |||
Ending balance- collectively evaluated for impairment | 4,285 | 3,159 | |
Total ending allowance balance | 4,285 | 3,159 | 1,845 |
Loans individually evaluated for impairment | 2,326 | 2,356 | |
Loans collectively evaluated for impairment | 873,127 | 775,420 | |
Total | 875,453 | 777,776 | |
Commercial Portfolio Segment | Commercial | |||
Allowance for loan losses | |||
Ending balance - individually evaluated for impairment | 658 | 8,309 | |
Ending balance- collectively evaluated for impairment | 2,765 | 2,153 | |
Total ending allowance balance | 3,423 | 10,462 | $ 1,235 |
Loans individually evaluated for impairment | 1,468 | 9,127 | |
Loans collectively evaluated for impairment | 371,865 | 387,515 | |
Total | $ 373,333 | $ 396,642 |
DEPOSITS - Total deposits (Deta
DEPOSITS - Total deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Ending Balance | ||
NOW accounts | $ 286,173 | $ 232,367 |
Money market accounts | 810,913 | 679,761 |
Brokered deposits | 56,534 | 30,137 |
Savings accounts | 11,814 | 9,727 |
Certificates of deposit | 257,056 | 231,953 |
Total interest-bearing deposits | 1,422,490 | 1,183,945 |
Noninterest-bearing deposits | 854,673 | 475,598 |
Total deposits | $ 2,277,163 | $ 1,659,543 |
% of Total | ||
NOW accounts | 12.60% | 14.00% |
Money market accounts | 35.60% | 41.00% |
Brokered deposits | 2.50% | 1.80% |
Savings accounts | 0.50% | 0.60% |
Certificates of deposit | 11.30% | 14.00% |
Total interest-bearing deposits | 62.50% | 71.30% |
Noninterest-bearing deposits | 37.5 | 28.7 |
Deposits | 100.00% | 100.00% |
DEPOSITS - Maturities of time d
DEPOSITS - Maturities of time deposits that meet or exceed the $250,000 FDIC insurance limit (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
$250,000 or more | ||
Three Months or Less | $ 23,302 | $ 40,189 |
Over Three Through Six Months | 24,537 | 35,314 |
Over Six Months Through Twelve Months | 85,376 | 42,844 |
Over 12 Months | 34,797 | 40,158 |
$250,000 or more | 168,012 | 158,505 |
$250,000 or less | ||
Three Months or Less | 15,852 | |
Over Three Through Six Months | 12,749 | |
Over Six Months Through Twelve Months | 43,020 | |
Over 12 Months | 22,047 | |
Total | 93,668 | |
Total | ||
Three Months or Less | 39,154 | 60,956 |
Over Three Through Six Months | 37,286 | 48,572 |
Over Six Months Through Twelve Months | 128,396 | 67,649 |
Over 12 Months | 56,844 | 59,398 |
Total | $ 261,680 | 236,575 |
Less than $250,000 | ||
Three Months or Less | 20,767 | |
Over Three Through Six Months | 13,258 | |
Over Six Months Through Twelve Months | 24,805 | |
Over 12 Months | 19,240 | |
Less than $250,000 | $ 78,070 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
DEPOSITS. | ||
Deposits that meet or exceed the $250,000 FDIC insurance limit | $ 168,012 | $ 158,505 |
Financial instruments pledged as collateral for certain deposits | 52,400 | 54,700 |
Deposits that have been re-classified as loan balances | 300 | 100 |
Deposits from principal officers, directors and their affiliates | 17,900 | 12,100 |
Qualified Public Deposits ("QPD") that require collateral pledged | $ 93,600 | $ 98,200 |
DEPOSITS - Maturities of Time_2
DEPOSITS - Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Maturities of time deposits | ||
Less than 1 year | $ 204,836 | $ 177,178 |
Over 1 through 2 years | 55,625 | 57,034 |
Over 2 through 3 years | 1,179 | 1,658 |
Over 3 through 4 years | 40 | 705 |
Total | $ 261,680 | $ 236,575 |
DEBT (Details)
DEBT (Details) | Mar. 26, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jan. 07, 2021USD ($) | Dec. 19, 2019USD ($) |
Line of Credit Facility [Line Items] | ||||
Number of loans processed | loan | 2,287 | |||
Loans funded | $ 340,500,000 | |||
Paycheck Protection Program Liquidity Facility Advances, Outstanding | $ 0 | |||
Valley National Bank, N. A. | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit | $ 10,000,000 | |||
Principal amount | $ 0 | |||
Subordinated Debt. | Marquis Bancorp, Inc | ||||
Line of Credit Facility [Line Items] | ||||
Notes payable at fair value | $ 10,300,000 | |||
Principal amount | $ 10,000,000 | |||
Fixed rate | 7.00% | |||
Subordinated debt fair value | $ 300,000 | |||
Subordinated Debt. | Marquis Bancorp, Inc | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate | 5.76% |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BORROWINGS | ||
Amount outstanding at period-end | $ 0 | |
Amount outstanding at period-end | $ 35,000,000 | $ 40,000,000 |
Weighted average interest rate at period-end | 2.04% | 1.96% |
Maximum month-end balance during period | $ 40,000,000 | $ 70,000,000 |
Average balance outstanding during period | $ 38,867,000 | $ 58,210,000 |
Weighted average interest rate during period | 1.98% | 1.63% |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
BORROWINGS | ||
Maximum percentage of assets allowed to borrow | 25.00% | |
Collateral amount | $ 209,900,000 | |
Amount outstanding at period-end | 35,000,000 | $ 40,000,000 |
Outstanding advances | 0 | |
Additional available borrowing capacity | 134,700,000 | |
Repayments of PPPLF advances | 101,358,000 | |
Remaining outstanding | $ 0 |
COMMON STOCK AND PREFERRED ST_2
COMMON STOCK AND PREFERRED STOCK (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Undesignated and unissued preferred stock | 10,000,000 | |
Class A Voting Common Stock | ||
Class of Stock [Line Items] | ||
Common Stock, Par value | $ 0.01 | $ 0.01 |
Common Stock Authorized | 50,000,000 | 50,000,000 |
Common Stock, outstanding (in shares) | 13,475,781 | 13,534,829 |
Common stock issued | 193,764 | |
Number of shares repurchased | 247,768 | |
Restricted stock grants | 127,499 | |
Number of options exercised | 64,414 | |
Restricted stock, shares issued net of shares for tax withholdings | 3,210 | |
Restricted stock cancellations | 1,834 | |
Class A Voting Common Stock | Employee Stock | ||
Class of Stock [Line Items] | ||
Shares issued | 1,851 | |
Class B Non-Voting Common stock | ||
Class of Stock [Line Items] | ||
Common Stock, Par value | $ 0.01 | $ 0.01 |
Common Stock Authorized | 10,000,000 | 10,000,000 |
Common Stock, outstanding (in shares) | 0 | 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value | ||
Securities reclassified into or out of Level 3 | $ 0 | $ 0 |
Fair Value, Recurring | Available-for-sale - taxable | ||
Fair Value | ||
Fair Value | 100,735 | 65,110 |
Fair Value, Recurring | Available-for-sale - tax exempt | ||
Fair Value | ||
Fair Value | 19,761 | 22,398 |
Fair Value, Recurring | Small Business Administration loan pools | ||
Fair Value | ||
Fair Value | 42,596 | 30,556 |
Fair Value, Recurring | Mortgage backed securities | ||
Fair Value | ||
Fair Value | 54,540 | 28,922 |
Fair Value, Recurring | U.S. agency obligations | ||
Fair Value | ||
Fair Value | 2,089 | 3,122 |
Fair Value, Recurring | Community Development District bonds | ||
Fair Value | ||
Fair Value | 18,658 | 21,299 |
Fair Value, Recurring | Municipals | ||
Fair Value | ||
Fair Value | 1,103 | 1,099 |
Fair Value, Recurring | Corporate bonds | ||
Fair Value | ||
Fair Value | 1,510 | 2,510 |
Fair Value, Recurring | Equity securities | ||
Fair Value | ||
Fair Value | 5,942 | 6,005 |
Fair Value, Recurring | Mutual funds | ||
Fair Value | ||
Fair Value | 5,942 | 6,005 |
Fair Value, Recurring | Level 1 | Equity securities | ||
Fair Value | ||
Fair Value | 5,942 | 6,005 |
Fair Value, Recurring | Level 1 | Mutual funds | ||
Fair Value | ||
Fair Value | 5,942 | 6,005 |
Fair Value, Recurring | Level 2 | Available-for-sale - taxable | ||
Fair Value | ||
Fair Value | 100,735 | 65,110 |
Fair Value, Recurring | Level 2 | Available-for-sale - tax exempt | ||
Fair Value | ||
Fair Value | 19,761 | 22,398 |
Fair Value, Recurring | Level 2 | Small Business Administration loan pools | ||
Fair Value | ||
Fair Value | 42,596 | 30,556 |
Fair Value, Recurring | Level 2 | Mortgage backed securities | ||
Fair Value | ||
Fair Value | 54,540 | 28,922 |
Fair Value, Recurring | Level 2 | U.S. agency obligations | ||
Fair Value | ||
Fair Value | 2,089 | 3,122 |
Fair Value, Recurring | Level 2 | Community Development District bonds | ||
Fair Value | ||
Fair Value | 18,658 | 21,299 |
Fair Value, Recurring | Level 2 | Municipals | ||
Fair Value | ||
Fair Value | 1,103 | 1,099 |
Fair Value, Recurring | Level 2 | Corporate bonds | ||
Fair Value | ||
Fair Value | $ 1,510 | $ 2,510 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value | ||
Total Gains (Losses) | $ 600 | |
Net fair value of collateral | 600 | |
Amount of specific reserve within the ALLL associated with the Coex Coffee International loan | $ 0 | |
Percentage of specific reserve amount | 0.00% | |
Fair Value, Nonrecurring | ||
Fair Value | ||
Fair Value | $ 810 | $ 818 |
Total Gains (Losses) | (658) | (8,309) |
Fair Value, Nonrecurring | Commercial | ||
Fair Value | ||
Fair Value | 810 | 818 |
Total Gains (Losses) | (658) | (8,309) |
Fair Value, Nonrecurring | Level 3 | ||
Fair Value | ||
Fair Value | 810 | 818 |
Fair Value, Nonrecurring | Level 3 | Commercial | ||
Fair Value | ||
Fair Value | $ 810 | $ 818 |
FAIR VALUE - Customer Derivativ
FAIR VALUE - Customer Derivatives (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Fair Value | |
Customer Derivatives - Interest Rate SWAPs | $ 863 |
Customer Derivatives - Interest Rate SWAPs Liability | (863) |
Level 2 | |
Fair Value | |
Customer Derivatives - Interest Rate SWAPs | 863 |
Customer Derivatives - Interest Rate SWAPs Liability | $ (863) |
FAIR VALUE - Carrying amount an
FAIR VALUE - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Securities, Available for Sale - taxable | $ 100,735 | $ 65,110 |
Securities, Available for Sale - tax exempt | 19,761 | 22,398 |
Securities, Held to Maturity | 1,296 | 1,561 |
Securities, Equity | 5,942 | 6,005 |
Customer Derivatives - Interest Rate SWAPs | 863 | |
Financial Liabilities: | ||
Subordinated Debt | 10,062 | 10,153 |
Derivative SWAP | 863 | |
Level 1, 2 & 3 | Carrying Amount | ||
Financial Assets: | ||
Accrued Interest Receivable | 5,449 | 6,666 |
Level 1, 2 & 3 | Fair Value | ||
Financial Assets: | ||
Accrued Interest Receivable | 5,449 | 6,666 |
Level 1 | Carrying Amount | ||
Financial Assets: | ||
Cash & Due from Banks, including interest bearing deposits | 616,180 | 191,597 |
Federal Funds Sold | 36,156 | 25,375 |
Securities, Equity | 5,942 | 6,005 |
Loans held for sale | 2,039 | 1,270 |
Level 1 | Fair Value | ||
Financial Assets: | ||
Cash & Due from Banks, including interest bearing deposits | 616,180 | 191,597 |
Federal Funds Sold | 36,156 | 25,375 |
Securities, Equity | 5,942 | 6,005 |
Loans held for sale | 2,039 | 1,270 |
Level 2 | ||
Financial Assets: | ||
Customer Derivatives - Interest Rate SWAPs | 863 | |
Financial Liabilities: | ||
Derivative SWAP | 863 | |
Level 2 | Carrying Amount | ||
Financial Assets: | ||
Securities, Available for Sale - taxable | 101,109 | 65,110 |
Securities, Available for Sale - tax exempt | 19,011 | 22,398 |
Securities, Held to Maturity | 1,285 | 1,547 |
Bank Owned Life Insurance | 37,923 | 37,360 |
Customer Derivatives - Interest Rate SWAPs | 863 | |
Financial Liabilities: | ||
Deposits | 2,277,163 | 1,659,543 |
Federal Home Loan Bank Advances | 35,000 | 40,000 |
Subordinated Debt | 10,062 | 10,153 |
PPPLF Advances | 101,358 | |
Loan Participations | 13,215 | |
Derivative SWAP | 863 | |
Accrued Interest Payable | 267 | 546 |
Level 2 | Fair Value | ||
Financial Assets: | ||
Securities, Available for Sale - taxable | 100,735 | 65,110 |
Securities, Available for Sale - tax exempt | 19,761 | 22,398 |
Securities, Held to Maturity | 1,296 | 1,561 |
Bank Owned Life Insurance | 37,923 | 37,360 |
Customer Derivatives - Interest Rate SWAPs | 863 | |
Financial Liabilities: | ||
Deposits | 2,246,864 | 1,693,331 |
Federal Home Loan Bank Advances | 33,671 | 37,927 |
Subordinated Debt | 10,062 | 10,153 |
PPPLF Advances | 101,519 | |
Loan Participations | 13,215 | |
Derivative SWAP | 863 | |
Accrued Interest Payable | 267 | 546 |
Level 3 | Carrying Amount | ||
Financial Assets: | ||
Loans, net | 1,680,168 | 1,643,373 |
Level 3 | Fair Value | ||
Financial Assets: | ||
Loans, net | $ 1,702,726 | $ 1,653,401 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | |
Derivative [Line Items] | ||||
Derivative notional amount | $ 22,300 | $ 22,300 | ||
Swap transaction | 863 | 863 | ||
Derivative Liability | 863 | 863 | ||
Swap fees | $ 364 | $ 210 | $ 573 | $ 473 |
Swap | ||||
Derivative [Line Items] | ||||
Number of instruments held | item | 5 | 5 | ||
Derivative notional amount | $ 22,300 | $ 22,300 | ||
Swap transaction | (900) | (900) | ||
Derivative Asset | 900 | 900 | ||
Derivative Liability | $ (900) | (900) | ||
Swap fees | $ 500 |
LOAN COMMITMENTS AND OTHER RE_3
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | $ 461,098 | $ 410,620 |
Unfunded Lines Of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | 366,015 | 356,955 |
Commitments to Extend Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | 83,857 | 40,629 |
Letters Of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | $ 11,226 | $ 13,036 |
REGULATORY CAPITAL MATTERS (Det
REGULATORY CAPITAL MATTERS (Details) $ in Thousands | Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital Conversion Buffer - 2015 | 0.00% | |
Capital Conversion Buffer - 2019 | 2.50% | |
Capital Conversion Buffer - 2020 | 2.50% | |
Capital Conversion Buffer - 2021 | 2.50% | |
Number of classifications | item | 5 | |
Bank | ||
Total capital Amount | ||
Total capital | $ 198,836 | $ 176,633 |
Total capital Required for Capital Adequacy | 124,003 | 117,298 |
Total capital Well Capitalized Prompt Corrective Action Regulations | $ 155,004 | $ 146,623 |
Total Capital ratio | ||
Total capital ratio (as percentage) | 12.8 | 12 |
Total capital Required for Capital Adequacy ratio (as percentage) | 8 | 8 |
Total capital Well Capitalized Prompt Corrective Action Regulations ratio (as percentage) | 10 | 10 |
Tier 1 Capital Amount | ||
Tier 1 Capital | $ 187,416 | $ 159,448 |
Tier 1 capital Required for Capital Adequacy | 93,002 | 87,974 |
Tier 1 capital Well Capitalized Prompt Corrective Action Regulations | $ 124,003 | $ 117,298 |
Tier 1 Capital ratio (as percentage) | 12.1 | 10.9 |
Tier 1 capital ratio Required for Capital Adequacy ratio (as percentage) | 6 | 6 |
Tier 1 capital Well Capitalized Prompt Corrective Action Regulations (as percentage) | 8 | 8 |
Tier 1 Leverage capital Amount | ||
Tier 1 Leverage capital | $ 187,416 | $ 159,448 |
Tier 1 Leverage capital Required for Capital Adequacy | 101,368 | 75,723 |
Tier 1 Leverage capital Well Capitalized Prompt Corrective Action Regulations | $ 126,710 | $ 94,654 |
Tier 1 Leverage ratio | ||
Tier 1 Leverage ratio (as percentage) | 7.4 | 8.4 |
Tier 1 Leverage ratio Required for Capital Adequacy (as percentage) | 4 | 4 |
Tier 1 Leverage ratio Well Capitalized Prompt corrective Action Regulations (as percentage) | 5 | 5 |
Common Equity Tier 1 Capital Amount | ||
Common Equity Tier 1 Capital | $ 187,416 | $ 159,448 |
Common Equity Tier 1 capital Required for Capital Adequacy | 69,752 | 65,980 |
Common Equity Tier 1 capital Well Capitalized Prompt Corrective Action Regulations | $ 100,753 | $ 95,305 |
Common Equity Tier 1 Ratio (as percentage) | 12.1 | 10.9 |
Common Equity Tier 1 Ratio Required for Capital Adequacy ratio (as percentage) | 4.50% | 4.50% |
Common Equity Tier 1 Ratio Well Capitalized Prompt corrective Action Regulations ratio (as percentage) | 6.50% | 6.50% |
Corporation | ||
Total capital Amount | ||
Total capital | $ 218,325 | $ 215,977 |
Total capital Required for Capital Adequacy | $ 124,003 | $ 117,298 |
Total Capital ratio | ||
Total capital ratio (as percentage) | 14.1 | 14.7 |
Total capital Required for Capital Adequacy ratio (as percentage) | 8 | 8 |
Tier 1 Capital Amount | ||
Tier 1 Capital | $ 196,844 | $ 188,639 |
Tier 1 capital Required for Capital Adequacy | $ 93,002 | $ 87,974 |
Tier 1 Capital ratio (as percentage) | 12.7 | 12.9 |
Tier 1 capital ratio Required for Capital Adequacy ratio (as percentage) | 6 | 6 |
Tier 1 Leverage capital Amount | ||
Tier 1 Leverage capital | $ 196,844 | $ 188,639 |
Tier 1 Leverage capital Required for Capital Adequacy | $ 101,368 | $ 75,723 |
Tier 1 Leverage ratio | ||
Tier 1 Leverage ratio (as percentage) | 7.8 | 10 |
Tier 1 Leverage ratio Required for Capital Adequacy (as percentage) | 4 | 4 |
Common Equity Tier 1 Capital Amount | ||
Common Equity Tier 1 Capital | $ 196,844 | $ 188,639 |
Common Equity Tier 1 capital Required for Capital Adequacy | $ 69,752 | $ 65,980 |
Common Equity Tier 1 Ratio (as percentage) | 12.7 | 12.9 |
Common Equity Tier 1 Ratio Required for Capital Adequacy ratio (as percentage) | 4.50% | 4.50% |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price | $ / shares | $ 16.82 |
Unrecognized compensation expense | $ | $ 2.9 |
Weighted-average period in which cost is expected to be recognized | 3 years |
2019 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 300,000 |
Number of shares granted | 222,009 |
Available for grant | 77,991 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Jan. 01, 2019 | |
LEASES | |||
Right-of-use assets, Financial position | Premises and equipment, net | Premises and equipment, net | Premises and equipment, net |
Lease liabilities arising from obtaining right of use assets | $ 0 | $ 2,000 | |
Lease liabilities | $ 5,580 | $ 6,500 | |
Lease liability, Financial position | Accrued interest and other liabilities | Accrued interest and other liabilities | Accrued interest and other liabilities |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease cost | ||||
Operating Lease and Interest Cost | $ 326 | $ 445 | $ 794 | $ 756 |
Variable Lease Cost | 82 | 142 | 199 | 249 |
Total Lease Cost | $ 408 | $ 587 | $ 993 | $ 1,005 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
LEASES | ||||
Operating Lease - Operating Cash Flows (Fixed Payments) | $ 326 | $ 445 | $ 793 | $ 756 |
Operating Lease - Operating Cash Flows (Liability Reduction) | $ 296 | $ 416 | $ 921 | 669 |
New ROU Assets - Operating Leases | $ 1,620 | |||
Weighted Average Lease Term (Years) - Operating Leases | 5 years 3 months | 6 years 7 days | 5 years 3 months | 6 years 7 days |
Weighted Average Discount Rate - Operating Leases | 3.13% | 3.02% | 3.13% | 3.02% |
LEASES - Maturity of lease liab
LEASES - Maturity of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating lease payments due: | ||
Within one year | $ 1,400 | |
After one but within two years | 1,421 | |
After two but within three years | 1,296 | |
After three but within four years | 1,093 | |
After four years but within five years | 955 | |
After five years | 706 | |
Total undiscounted cash flows | 6,871 | |
Discount on cash flows | (1,291) | |
Total operating lease liabilities | $ 5,580 | $ 6,500 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Jul. 12, 2021item |
Subsequent Events | |
Subsequent Events | |
Number Of Loan Production Office | 2 |