Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | ALTABANCORP | |
Entity Central Index Key | 0001636286 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,794,120 | |
Entity File Number | 001-37416 | |
Entity Tax Identification Number | 87-0622021 | |
Entity Address, Address Line One | 1 East Main Street | |
Entity Address, City or Town | American Fork | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84003 | |
City Area Code | 801 | |
Local Phone Number | 642-3998 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | UT | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ALTA | |
Security Exchange Name | NASDAQ |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 47,088 | $ 38,987 |
Interest-bearing deposits | 275,920 | 171,955 |
Federal funds sold | 829 | 1,039 |
Total cash and cash equivalents | 323,837 | 211,981 |
Investment securities - available for sale, at fair value | 973,457 | 405,995 |
Non-marketable equity securities | 2,890 | 2,623 |
Loans held for sale | 29,264 | 18,669 |
Loans: | ||
Loans held for investment | 1,659,018 | 1,680,918 |
Allowance for credit losses | (42,683) | (31,426) |
Total loans held for investment, net | 1,616,335 | 1,649,492 |
Premises and equipment, net | 38,673 | 39,474 |
Goodwill | 25,673 | 25,673 |
Bank-owned life insurance | 27,330 | 27,037 |
Deferred income tax assets, net | 8,586 | 9,716 |
Accrued interest receivable | 11,682 | 7,904 |
Other intangibles | 2,749 | 2,970 |
Other assets | 5,169 | 4,800 |
Total assets | 3,065,645 | 2,406,334 |
Deposits: | ||
Non-interest bearing deposits | 985,455 | 719,410 |
Interest bearing deposits | 1,627,884 | 1,336,957 |
Total deposits | 2,613,339 | 2,056,367 |
Short-term borrowings | 83,490 | |
Accrued interest payable | 408 | 546 |
Other liabilities | 18,278 | 17,059 |
Total liabilities | 2,715,515 | 2,073,972 |
Shareholders’ equity: | ||
Preferred shares, $0.01 par value: 3,000,000 shares authorized; no shares issued | ||
Common shares, $0.01 par value: 30,000,000 shares authorized; 18,787,810 and 18,870,498 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively | 188 | 189 |
Additional paid-in capital | 86,721 | 87,913 |
Retained earnings | 252,032 | 242,878 |
Accumulated other comprehensive income | 11,189 | 1,382 |
Total shareholders’ equity | 350,130 | 332,362 |
Total liabilities and shareholders’ equity | $ 3,065,645 | $ 2,406,334 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 3,000,000 | 3,000,000 |
Preferred shares, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,793,217 | 18,870,498 |
Common stock, shares outstanding | 18,793,217 | 18,870,498 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income | ||||
Interest and fees on loans | $ 23,649 | $ 27,628 | $ 49,574 | $ 54,608 |
Interest and dividends on investments | 3,753 | 2,422 | 7,212 | 4,594 |
Total interest income | 27,402 | 30,050 | 56,786 | 59,202 |
Interest expense | 1,613 | 2,330 | 3,776 | 4,575 |
Net interest income | 25,789 | 27,720 | 53,010 | 54,627 |
Provision for credit losses | 2,100 | 2,150 | 2,750 | 3,700 |
Net interest income after provision for credit losses | 23,689 | 25,570 | 50,260 | 50,927 |
Non-interest income | ||||
Mortgage banking | 3,036 | 1,621 | 4,746 | 3,038 |
Card processing | 917 | 814 | 1,624 | 1,429 |
Service charges on deposit accounts | 763 | 705 | 1,543 | 1,362 |
Net gain on sale of investment securities | 1,441 | 1,441 | ||
Other | (41) | 458 | 502 | 1,106 |
Total non-interest income | 6,116 | 3,598 | 9,856 | 6,935 |
Non-interest expense | ||||
Salaries and employee benefits | 10,786 | 9,526 | 21,630 | 19,412 |
Occupancy, equipment and depreciation | 831 | 1,558 | 2,370 | 3,014 |
Data processing | 2,383 | 1,018 | 3,519 | 1,982 |
Marketing and advertising | 339 | 226 | 771 | 342 |
FDIC premiums | 165 | 148 | 165 | 238 |
Other | 1,771 | 2,223 | 3,981 | 4,627 |
Total non-interest expense | 16,275 | 14,699 | 32,436 | 29,615 |
Income before income tax expense | 13,530 | 14,469 | 27,680 | 28,247 |
Income tax expense | 3,192 | 3,480 | 6,569 | 6,753 |
Net income | $ 10,338 | $ 10,989 | $ 21,111 | $ 21,494 |
Earnings per common share: | ||||
Basic | $ 0.55 | $ 0.58 | $ 1.12 | $ 1.14 |
Diluted | $ 0.55 | $ 0.58 | $ 1.11 | $ 1.13 |
Weighted average common shares outstanding: | ||||
Basic | 18,789,561 | 18,805,760 | 18,837,209 | 18,793,553 |
Diluted | 18,932,511 | 19,007,297 | 18,985,319 | 18,998,480 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 10,338 | $ 10,989 | $ 21,111 | $ 21,494 |
Other comprehensive income | ||||
Unrealized holding gains on securities available for sale | 3,951 | 3,140 | 14,518 | 5,996 |
Reclassification adjustment for gains on available for sale securities | (1,441) | (1,441) | ||
Net unrealized holding gains on securities available for sale | 2,510 | 3,140 | 13,077 | 5,996 |
Income tax expense | (627) | (785) | (3,270) | (1,498) |
Other comprehensive income, net of tax | 1,883 | 2,355 | 9,807 | 4,498 |
Total comprehensive income | $ 12,221 | $ 13,344 | $ 30,918 | $ 25,992 |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning at Dec. 31, 2018 | $ 290,162 | $ 187 | $ 86,308 | $ 207,779 | $ (4,112) |
Balance, beginning, Shares at Dec. 31, 2018 | 18,728,823 | ||||
Net income | 10,505 | 10,505 | |||
Other comprehensive income | 2,143 | 2,143 | |||
Cash dividends | (2,068) | (2,068) | |||
Share-based compensation | 191 | 191 | |||
Issuance of shares under stock incentive plans | 394 | $ 1 | 393 | ||
Issuance of shares under stock incentive plans, Shares | 68,457 | ||||
Balance, ending at Mar. 31, 2019 | 301,327 | $ 188 | 86,892 | 216,216 | (1,969) |
Balance, ending, Shares at Mar. 31, 2019 | 18,797,280 | ||||
Balance, beginning at Dec. 31, 2018 | 290,162 | $ 187 | 86,308 | 207,779 | (4,112) |
Balance, beginning, Shares at Dec. 31, 2018 | 18,728,823 | ||||
Net income | 21,494 | ||||
Balance, ending at Jun. 30, 2019 | 312,799 | $ 188 | 87,275 | 224,950 | 386 |
Balance, ending, Shares at Jun. 30, 2019 | 18,819,332 | ||||
Balance, beginning at Mar. 31, 2019 | 301,327 | $ 188 | 86,892 | 216,216 | (1,969) |
Balance, beginning, Shares at Mar. 31, 2019 | 18,797,280 | ||||
Net income | 10,989 | 10,989 | |||
Other comprehensive income | 2,355 | 2,355 | |||
Cash dividends | (2,255) | (2,255) | |||
Share-based compensation | 190 | 190 | |||
Issuance of shares under stock incentive plans | 193 | 193 | |||
Issuance of shares under stock incentive plans, Shares | 22,052 | ||||
Balance, ending at Jun. 30, 2019 | 312,799 | $ 188 | 87,275 | 224,950 | 386 |
Balance, ending, Shares at Jun. 30, 2019 | 18,819,332 | ||||
Balance, beginning at Dec. 31, 2019 | $ 332,362 | $ 189 | 87,913 | 242,878 | 1,382 |
Balance, beginning, Shares at Dec. 31, 2019 | 18,870,498 | 18,870,498 | |||
Net income | $ 10,773 | 10,773 | |||
Other comprehensive income | 7,924 | 7,924 | |||
Cash dividends | (2,646) | (2,646) | |||
Reclass related to ASC 326 adoption (CECL) | ASU 2016-13 | (6,680) | (6,680) | |||
Shares repurchased | (2,140) | $ (1) | (2,139) | ||
Shares repurchased, Shares | (120,906) | ||||
Share-based compensation | 385 | 385 | |||
Issuance of shares under stock incentive plans | 159 | 159 | |||
Issuance of shares under stock incentive plans, Shares | 38,218 | ||||
Balance, ending at Mar. 31, 2020 | 340,137 | $ 188 | 86,318 | 244,325 | 9,306 |
Balance, ending, Shares at Mar. 31, 2020 | 18,787,810 | ||||
Balance, beginning at Dec. 31, 2019 | $ 332,362 | $ 189 | 87,913 | 242,878 | 1,382 |
Balance, beginning, Shares at Dec. 31, 2019 | 18,870,498 | 18,870,498 | |||
Net income | $ 21,111 | ||||
Balance, ending at Jun. 30, 2020 | $ 350,130 | $ 188 | 86,721 | 252,032 | 11,189 |
Balance, ending, Shares at Jun. 30, 2020 | 18,793,217 | 18,793,217 | |||
Balance, beginning at Mar. 31, 2020 | $ 340,137 | $ 188 | 86,318 | 244,325 | 9,306 |
Balance, beginning, Shares at Mar. 31, 2020 | 18,787,810 | ||||
Net income | 10,338 | 10,338 | |||
Other comprehensive income | 1,883 | 1,883 | |||
Cash dividends | (2,631) | (2,631) | |||
Share-based compensation | 380 | 380 | |||
Issuance of shares under stock incentive plans | 23 | 23 | |||
Issuance of shares under stock incentive plans, Shares | 5,407 | ||||
Balance, ending at Jun. 30, 2020 | $ 350,130 | $ 188 | $ 86,721 | $ 252,032 | $ 11,189 |
Balance, ending, Shares at Jun. 30, 2020 | 18,793,217 | 18,793,217 |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends per share | $ 0.14 | $ 0.14 | $ 0.12 | $ 0.11 |
UNAUDITED CONSOLIDATED STATEM_5
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 21,111 | $ 21,494 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 2,750 | 3,700 |
Depreciation and amortization | 1,822 | 1,889 |
Loss on sale of OREO | 1 | |
Deferred income taxes | (24) | 837 |
Net amortization of securities discounts and premiums | 1,541 | 1,172 |
Increase in cash surrender value of bank-owned life insurance | (293) | (301) |
Share-based compensation | 765 | 381 |
Gain on sale of loans held for sale | (3,467) | (1,984) |
Originations of loans held for sale | (136,459) | (99,270) |
Proceeds from sale of loans held for sale | 129,331 | 93,075 |
Net changes in: | ||
Accrued interest receivable | (3,778) | (360) |
Other assets | (938) | 3,596 |
Accrued interest payable | (138) | 63 |
Other liabilities | 1,552 | (2,149) |
Net cash provided by operating activities | 13,776 | 22,143 |
Cash flows from investing activities: | ||
Net change in loans held for investment | 22,057 | 5,412 |
Purchase of available for sale securities | (674,709) | (12,831) |
Proceeds from maturities/sales of available for sale securities | 118,783 | 27,949 |
Proceeds from maturities of held to maturity securities | 1,370 | |
Purchase of premises and equipment | (1,354) | (3,464) |
Proceeds from sale of assets | 2,297 | |
Proceeds from sale of other real estate owned, net of improvements | 343 | |
Purchase of non-marketable equity securities | (267) | (4,032) |
Proceeds from sale of non-marketable equity securities | 3,960 | |
Net cash (used in) provided by investing activities | (535,147) | 20,661 |
Cash flows from financing activities: | ||
Net increase in deposits | 556,972 | 104,851 |
Proceeds related to exercise of stock options | 182 | 587 |
Net change in short-term borrowings | 83,490 | |
Net cash used in share repurchase program | (2,140) | |
Cash dividends paid | (5,277) | (4,323) |
Net cash provided by financing activities | 633,227 | 101,115 |
Net change in cash and cash equivalents | 111,856 | 143,919 |
Cash and cash equivalents, beginning of period | 211,981 | 48,547 |
Cash and cash equivalents, end of period | 323,837 | 192,466 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 3,914 | 4,512 |
Income taxes paid | 25 | 6,510 |
Supplemental disclosures of non-cash investing transactions: | ||
Reclassifications from loans to other real estate owned | 344 | |
Unrealized gains on securities available for sale | $ 13,077 | 5,996 |
Transfer of HTM securities to AFS | $ 64,648 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | ALTABANCORP TM NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 1 — Basis of Presentation and Significant Accounting Policies Nature of operations and basis of consolidation — Altabancorp TM (“ALTA” or the “Company”) is a Utah corporation headquartered in American Fork, Utah. The Company operates all business activities through its wholly-owned banking subsidiary, Altabank TM (the “Bank”), which was organized in 1913. Altabank TM is a Utah state-chartered bank. Altabank TM operates under the jurisdiction of the Utah Department of Financial Institutions (“UDFI”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). Altabank TM is not a member of the Federal Reserve System; however, ALTA is operated as a bank holding company under the Federal Bank Holding Company Act of 1956 and is the sole shareholder of Altabank TM . Both ALTA and Altabank TM are subject to periodic examination by all of the applicable federal and state regulatory agencies and file periodic reports and other information with such agencies. The Company considers Altabank TM to be its sole operating segment. Altabank TM TM TM TM TM The accompanying unaudited interim consolidated financial statements include the accounts of the Company together with its subsidiary Bank. All intercompany transactions and balances have been eliminated. These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. Use of estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses (“ACL”), the determination of the fair value of certain financial instruments, the valuation of real estate acquired through foreclosure, deferred income tax assets, and share-based compensation. Reclassifications — Certain reclassifications have been made to the 2019 Consolidated Financial Statements and/or schedules to conform to the 2020 presentation. These reclassifications may have affected certain ratios for the prior periods. The effect of these reclassifications is considered immaterial. Business combinations — Business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged are recorded at fair value on the acquisition date. The excess purchase consideration over fair value of net assets acquired is recorded as goodwill. Expenses incurred in connection with a business combination are expensed as incurred. Changes in deferred tax asset valuation allowances related to acquired tax uncertainties are recognized in net income after the measurement period. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Cash and cash equivalents — Cash and cash equivalents consist of cash on hand, amounts due from banks, interest bearing deposits, and federal funds sold, all of which have original maturities of three months or less. The Company places its cash with high credit quality institutions. The amounts on deposit fluctuate and, at times, exceed the insured limit by the FDIC, which potentially subjects the Company to credit risk. Investment securities — Investment securities are classified as held to maturity (“HTM”) when the Company has the positive intent and ability to hold the securities to maturity. Investment securities are classified as available for sale (“AFS”) when the Company has the intent of holding the security for an indefinite period of time, but not necessarily to maturity. The Company determines the appropriate classification at the time of purchase, and periodically thereafter. Investment securities classified as HTM are carried at amortized cost. Investment securities classified as AFS are reported at fair value. As the fair value of AFS securities changes, the changes are reported (net of tax, if applicable) in comprehensive income and as an element of accumulated other comprehensive income/loss (“AOCI”) in shareholder’s equity. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for callable debt securities. Premiums on callable debt securities are amortized to the earliest call date. When AFS securities, specifically identified, are sold, the unrealized gain or loss is reclassified from AOCI to non-interest income. A debt security is placed on nonaccrual status at the time any principal or interest payments become greater than 90 days delinquent. Delinquent interest accrued but not received for a security placed on nonaccrual is reversed against interest income. The Company did not have any accrued interest reversed against interest income for the six months ended June 30, 2020. Allowance for credit losses – AFS securities —For AFS debt securities in an unrealized loss position, management assesses whether the Company intends to sell or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to the fair value through non-interest income. For AFS debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which the fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in AOCI. Changes in the allowance for credit losses are recorded as a Provision for Credit Losses (“PCL”). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criterion regarding intent or requirement to sell is met. Non-marketable equity securities — Non-marketable equity securities primarily consist of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to the restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Bank’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs is jointly and severally liable for repayment of each other’s debt. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Loans held for sale —Single-family residential mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Loans with best effort delivery commitments are carried at the lower of aggregate cost or estimated fair value. Loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the economic hedges on the loans. Fair values for loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Substantially all of the residential mortgage loans originated are sold to larger financial institutions. Loans held for investment — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at amortized cost, net of the allowance for credit losses. Amortized cost includes the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs. Accrued interest is reported as a separate line item on the unaudited consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the effective interest method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent, unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loan are charged-off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged-off no later than 120 days past due unless the loan is in the process of collection. Past-due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charge-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Troubled debt restructurings (“TDR”) —A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. TDRs are then evaluated to determine if the TDR loan has estimated credit losses using the same methodology used for other individually evaluated loans as described in the next section. With the recent COVID-19 pandemic, the number of loans that have had loan payments deferred has significantly increased. In accordance with regulatory guidance, to the extent that the borrower was not experiencing financial difficulties prior to the pandemic, such modifications have not been classified as TDRs. Individually evaluated loans — The Company considers loans individually evaluated when, based on current information and events, it is probable the Company will be unable to collect all principal and interest payments due according to the contractual terms of the loan agreement. Such loans are generally classified as Substandard or Doubtful loans (see Note 3). Individually evaluated loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral, adjusted for selling costs, if the loan is collateral dependent. Changes in these values are recorded to the ACL through the PCL. Factors considered by management in determining estimated credit losses include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as individually evaluated. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Acquired loans – Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date, including estimates of current expected credit losses. Some acquired loans have experienced more than insignificant credit deterioration since origination. Such loans are defined as Purchased Credit Deteriorated (“PCD”). The Company makes the determination if a loan is PCD by considering past due and/or nonaccrual status, prior designation of a troubled debt restructuring, or other factors that may suggest the Company will not be able to collect all contractual payments due. Subsequent to acquisition, the amount of expected credit losses as of the acquisition date is added to the purchase price of PCD loans with an offsetting entry to ACL. Any difference between the unpaid principal balance and the amortized cost basis of the PCD loan as of the acquisition date is the non-credit discount or premium. The non-credit discount recorded at acquisition is amortized or accreted into interest income over the remaining life of the PCD loan on an effective interest method. To the extent that management changes the Company’s estimate of expected credit losses on PCD loans, the ACL will be increased or decreased with a corresponding entry to PCL. Some acquired loans may not have experienced more than insignificant credit deterioration since origination. Such loans are defined as Purchased non-Credit Deteriorated (“Non-PCD”) loans. Non-PCD loans are also recorded at fair value at the time of acquisition, including estimates of current expected credit losses. However, any current expected credit losses estimated as of the acquisition date are not added to the purchase price with an offsetting entry to ACL, but rather such estimate is included in the difference between the unpaid principal balance and the amortized cost basis of the Non-PCD loan. This credit and non-credit discount is amortized or accreted into interest income over the remaining life of the Non-PCD loan on an effective interest method. In addition, an allowance for credit losses is determined for Non-PCD loans using the same methodology as loans held for investment with an offset recorded to PCL. An acquired loan previously classified by the seller as a TDR is no longer classified as such at the date of acquisition. Past due status is reported based on contractual payment status. Changes to the ACL for acquired loans are recorded through PCL after adoption. Allowance for credit losses – Loans — Credit risk is inherent in the business of extending loans and leases to borrowers. Normally, this credit risk is addressed through a valuation allowance termed allowance for credit losses. The ACL represents management’s estimate of current expected credit losses (“CECL”) inherent in the loan portfolio at each balance sheet date. Netted against the outstanding loan balance, this ACL reduces the balance to the Company’s estimate of what will be collected from borrowers. The ACL is established through charges to current period earnings by recording a PCL. When losses become specifically identifiable and quantifiable, the loan balance is reduced through recording a charge-off against the ACL. Should payments be received on a charged-off loan, the payment is credited to the ACL as a recovery. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience, either internal or peer information, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made, using qualitative factors, when management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. Management must exercise significant judgment when evaluating the effect of qualitative factors on the amount of the ACL because data may not be reasonably available or directly applicable for management to determine the precise impact of a factor on the collectability of the loan portfolio as of the evaluation date. Management considers qualitative or environmental factors that are likely to cause estimated credit losses associated with our existing portfolio to differ from historical loss experience, including but not limited to: i) changes in lending policies and procedures; ii) changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; iii) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; iv) changes in the nature and volume of the portfolio and in the terms of loans; v) changes in the experience, ability, and depth of lending management and other relevant staff; vi) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; vii) changes in the quality of the institution’s loan review system; viii) changes in the value of underlying collateral for collateral-dependent loans; ix) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and, x) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision, as more information becomes available. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued The Company used the weighted average remaining maturity (or “WARM”) approach, adjusted for prepayments, to calculate CECL at June 30, 2020 and segmented its loan portfolio into seventeen loan segments based on similar risk characteristics. Management may change the approach used to calculated current expected credit losses or loan segments from time-to-time as the Company improves credit loss estimation techniques. The Company has elected to exclude accrued interest receivable from its calculation of the ACL. Off-balance sheet credit related financial instruments — In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Allowance for credit losses on off-balance sheet credit exposures — The Company estimates expected credit losses on off-balance sheet credit exposures using the same CECL historical loss rates applied to loans held for investment over the contractual period in which the Company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company, adjusted for funding factors. The allowance for credit losses on off-balance sheet credit exposures is reported in other liabilities on the unaudited consolidated balance sheets with an offset to other non-interest expense. The estimate of CECL includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated life. Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 15 to 40 years Leasehold improvements 3 to 15 years Furniture and equipment 3 to 15 years Computers, software and equipment 3 to 5 years Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Bank-owned life insurance (“BOLI”) — The Bank has purchased life insurance policies. These policies provide protection against the adverse financial effects that could result from the death of a key employee and provide tax-exempt income to offset expenses associated with the plans. It is the Bank’s intent to hold these policies as a long-term investment; however, there may be an income tax impact if the Bank chooses to surrender certain policies. Although the lives of individual current or former management-level employees are insured, the Bank is the owner and sole or partial beneficiary. BOLI is carried at the cash surrender value (“CSV”) of the underlying insurance contract. Changes in the CSV and any death benefits received in excess of the CSV are recognized as non-interest income. Goodwill — Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, or more frequently as current circumstances and conditions warrant, for impairment. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment compares the reporting unit's estimated fair values, including goodwill, to its carrying amount. If the carrying amount exceeds its reporting unit’s fair value, then an impairment loss would be recognized as a charge to earnings but is limited by the amount of goodwill allocated to that reporting unit. Other intangible assets — Other intangible assets consist primarily of core deposit intangibles (“CDI”), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the client relationships associated with the deposits. Core deposit intangibles are amortized over the estimated useful life of such deposits. These assets are reviewed at least annually for events or circumstances that could affect their recoverability. These events could include loss of the underlying core deposits, increased competition or adverse changes in the economy. To the extent other identifiable intangible assets are deemed unrecoverable; impairment losses are recorded in other non-interest expense to reduce the carrying amount of the assets. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Mortgage and other servicing rights — Mortgage and other servicing rights are recognized as separate assets when rights are acquired through purchase of such rights or through the sale of loans. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For loans sold, the fair value of the servicing rights are estimated and capitalized. Fair value is based on market prices for comparable servicing rights contracts. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Other real estate owned — Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the carrying amount of the foreclosed loan or the fair value of the foreclosed asset, less costs to sell, at the date of foreclosure. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value, less selling costs. Revenues and expenses from operations and changes in the valuation allowance are included in other real estate owned expense. Transfers of financial assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Income taxes — Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. Share-based compensation plans — The fair value of incentive share-based awards is recorded as compensation expense over the vesting period of the award. Compensation expense for stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Compensation expense for RSUs is based on the fair value of the Company’s common shares at the date of grant. RSU awards generally vest in thirds over three years from date of grant. Earnings per share — Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method and for all outstanding RSUs. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except share and per share data) 2020 2019 2020 2019 Numerator Net income $ 10,338 $ 10,989 $ 21,111 $ 21,494 Denominator Weighted-average number of common shares outstanding 18,789,561 18,805,760 18,837,209 18,793,553 Incremental shares assumed for stock options and RSUs 142,950 201,537 148,110 204,927 Weighted-average number of dilutive shares outstanding 18,932,511 19,007,297 18,985,319 18,998,480 Basic earnings per common share $ 0.55 $ 0.58 $ 1.12 $ 1.14 Diluted earnings per common share $ 0.55 $ 0.58 $ 1.11 $ 1.13 Comprehensive income — U.S. GAAP generally requires that recognized revenues, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, net of the related income tax effect, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. Impact of recent authoritative accounting guidance — The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard Updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for us as an SEC registrant. All other accounting literature is non-authoritative. In December 2019, FASB issued ASU 2019-12, Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Adoption of ASU 2019-12 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage duri |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 2 — Investment Securities Amortized cost and estimated fair value of investment securities available for sale are summarized as follows: Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2020 U.S. Government-sponsored securities $ 13,480 $ 391 $ - $ - $ 13,871 Municipal securities 45,723 1,210 - - 46,933 Mortgage-backed securities 894,335 14,307 (694 ) (37 ) 907,911 Corporate securities 5,000 1 - (259 ) 4,742 $ 958,538 $ 15,909 $ (694 ) $ (296 ) $ 973,457 As of December 31, 2019 U.S. Government-sponsored securities $ 20,957 $ 235 $ - $ (2 ) $ 21,190 Municipal securities 56,252 670 (1 ) (9 ) 56,912 Mortgage-backed securities 321,944 2,188 (481 ) (543 ) 323,108 Corporate securities 5,000 - - (215 ) 4,785 $ 404,153 $ 3,093 $ (482 ) $ (769 ) $ 405,995 At June 30, 2020 and December 31, 2019, the gross unrealized losses and the fair value for securities available for sale and held to maturity were as follows: As of June 30, 2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ - $ - $ - $ - Municipal securities - - - - - - Mortgage-backed securities 95,605 (694 ) 3,031 (37 ) 98,636 (731 ) Corporate securities - - 2,741 (259 ) 2,741 (259 ) $ 95,605 $ (694 ) $ 5,772 $ (296 ) $ 101,377 $ (990 ) As of December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ 5,998 $ (2 ) $ 5,998 $ (2 ) Municipal securities 3,060 (1 ) 1,338 (9 ) 4,398 (10 ) Mortgage-backed securities 115,243 (481 ) 70,383 (543 ) 185,626 (1,024 ) Corporate securities - - 4,785 (215 ) 4,785 (215 ) $ 118,303 $ (482 ) $ 82,504 $ (769 ) $ 200,807 $ (1,251 ) The Company monitors the credit quality of debt securities AFS through the use of credit ratings from Nationally Recognized Statistical Ration Organizations (“NRSRO”) to assist in the determination of any current expected credit losses. At June 30, 2020, the Company had no allowance for credit losses on AFS securities. The following table summarizes the amortized cost of debt securities AFS at June 30, 2020, aggregated by credit quality indicator. Note 2 — Investment Securities – continued Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2020 U.S. Government-backed securities (1) $ 907,815 $ 14,698 $ (694 ) $ (37 ) $ 921,782 Investment grade rating 42,486 950 - (259 ) 43,177 Below investment grade - - - - - Unrated investment securities 8,237 261 - - 8,498 $ 958,538 $ 15,909 $ (694 ) $ (296 ) $ 973,457 As of December 31, 2019 U.S. Government-sponsored securities (1) $ 342,901 $ 2,423 $ (481 ) $ (545 ) $ 344,298 Investment grade rating 50,793 544 (1 ) (224 ) 51,112 Below investment grade - - - - - Unrated investment securities 10,459 126 - - 10,585 $ 404,153 $ 3,093 $ (482 ) $ (769 ) $ 405,995 (1) The amortized cost and estimated fair value of investment securities that are available for sale and held to maturity at June 30, 2020, by contractual maturity, are as follows: Available For Sale Amortized Fair (Dollars in thousands) Cost Value Securities maturing in: One year or less $ 13,658 $ 13,720 After one year through five years 37,643 38,598 After five years through ten years 40,723 41,720 After ten years 866,514 879,419 $ 958,538 $ 973,457 Actual maturities may differ from contractual maturities because issuers may have the right to call obligations with or without penalties and other securities may experience pre-payments. As of June 30, 2020, the Company held 23 available for sale investment securities with fair value less than amortized cost compared to 146 at December 31, 2019. In addition, the Company had no held to maturity securities at June 30, 2020, and December 31, 2019. Management evaluated these investment securities and determined that the decline in value is temporary and related to the change in market interest rates since purchase. The decline in value is not related to any company or industry specific event. The Company anticipates full recovery of the amortized cost with respect to these securities at maturity, or sooner, in the event of a more favorable market interest rate environment. Note 2 — Investment Securities – continued The Company sold $ During the year ended December 31, 2019, the Company elected to make a one-time transfer of 140 securities from the held to maturity classification of $64.6 million to the available for sale classification, and recorded an unrecognized loss of $19,000, net of taxes, to other comprehensive income. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | Note 3 — Loans and Allowance for Credit Losses Loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Loans held for investment: Commercial real estate loans: Real estate term $ 958,783 $ 948,073 Construction and land development 243,212 273,963 Total commercial real estate loans 1,201,995 1,222,036 Commercial and industrial loans 310,837 284,738 Consumer loans: Residential and home equity 141,174 162,559 Consumer and other 11,548 16,036 Total consumer loans 152,722 178,595 Total gross loans 1,665,554 1,685,369 Net deferred loan fees (6,536 ) (4,451 ) Total loans held for investment 1,659,018 1,680,918 Allowance for credit losses (42,683 ) (31,426 ) Total loans held for investment, net $ 1,616,335 $ 1,649,492 At June 30, 2020, the Company held 333 loans totaling $84.6 million of SBA PPP loans included in commercial and industrial loans above. The SBA guarantees 100% of the outstanding balance, and that guarantee is backed by the full faith and credit of the United States. Note 3 — Loans and Allowance for Credit Losses – Continued Changes in the allowance for credit losses are as follows: Three Months Ended June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 12,997 $ 13,677 $ 11,468 $ 2,553 $ 558 $ 41,253 Provision for credit losses (460 ) 1,452 905 211 (8 ) 2,100 Gross loan charge-offs (99 ) (43 ) (654 ) - (61 ) (857 ) Recoveries 69 35 41 3 39 187 Net loan (charge-offs) / recoveries (30 ) (8 ) (613 ) 3 (22 ) (670 ) Balance at end of period $ 12,507 $ 15,121 $ 11,760 $ 2,767 $ 528 $ 42,683 Three Months Ended June 30, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 10,172 $ 7,182 $ 7,602 $ 804 $ 163 $ 25,923 Provision for credit losses 276 (114 ) 1,965 (42 ) 65 2,150 Gross loan charge-offs - - (497 ) - (110 ) (607 ) Recoveries 24 319 167 10 53 573 Net loan (charge-offs) / recoveries 24 319 (330 ) 10 (57 ) (34 ) Balance at end of period $ 10,472 $ 7,387 $ 9,237 $ 772 $ 171 $ 28,039 Six Months Ended June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Impact of adopting ASC 326 408 6,403 649 1,517 489 9,466 Provision for credit losses (132 ) 1,752 1,092 107 (69 ) 2,750 Gross loan charge-offs (113 ) (73 ) (1,040 ) - (183 ) (1,409 ) Recoveries 69 49 167 25 140 450 Net loan (charge-offs) / recoveries (44 ) (24 ) (873 ) 25 (43 ) (959 ) Balance at end of period $ 12,507 $ 15,121 $ 11,760 $ 2,767 $ 528 $ 42,683 Six Months Ended June 30, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Provision for credit losses 480 19 3,246 30 (75 ) 3,700 Gross loan charge-offs - (5 ) (1,583 ) (19 ) (174 ) (1,781 ) Recoveries 24 351 347 32 121 875 Net loan (charge-offs) / recoveries 24 346 (1,236 ) 13 (53 ) (906 ) Balance at end of period $ 10,472 $ 7,387 $ 9,237 $ 772 $ 171 $ 28,039 Note 3 — Loans and Allowance for Credit Losses – Continued Non-accrual loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Non-accrual loans, not troubled debt restructured: Real estate term $ 131 $ 2,416 Construction and land development 139 60 Commercial and industrial 545 1,550 Residential and home equity 549 45 Consumer and other 2 8 Total non-accrual loans, not troubled debt restructured 1,366 4,079 Troubled debt restructured loans, non-accrual: Real estate term 2,521 2,393 Construction and land development - - Commercial and industrial 2,499 658 Residential and home equity - - Consumer and other - - Total troubled debt restructured loans, non-accrual 5,020 3,051 Total non-accrual loans $ 6,386 $ 7,130 Non-performing assets as of June 30, 2020 and December 31, 2019 have not been reduced by U.S. government guarantees of $1.8 million and $859,000, respectively. Troubled debt restructured loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Accruing troubled debt restructured loans $ 5,480 $ 25,346 Non-accrual troubled debt restructured loans 5,020 3,051 Total troubled debt restructured loans $ 10,500 $ 28,397 As of June 30, 2020, TDRs totaling $15.0 million met the criteria to be delisted for reporting purposes. To be delisted as a TDR, the Company follows established regulatory guidelines. Note 3 — Loans and Allowance for Credit Losses – Continued The below tables summarize TDRs by year of occurrence and type of modification: Six Months Ended June 30, 2020 # of $ of # of Non- $ of Non- # of $ of Accruing Accruing accrual accrual Total Total (Dollars in thousands) TDR TDR TDR TDR TDR TDR TDRs that occurred during the period 4 $ 708 - $ - 4 $ 708 2019 3 4,713 9 3,555 12 8,268 2018 - - 3 1,465 3 1,465 2017 - - - - - - Thereafter 1 59 - - 1 59 Total 8 $ 5,480 12 $ 5,020 20 $ 10,500 Six Months Ended June 30, 2020 # of $ of # of Non- $ of Non- # of $ of Accruing Accruing accrual accrual Total Total (Dollars in thousands) TDR TDR TDR TDR TDR TDR Interest rate reduction 1 $ 59 - $ - 1 $ 59 Loan payment deferment 4 852 4 604 8 1,456 Loan re-amortization 2 4,492 3 1,465 5 5,957 Loan extension 1 77 5 2,951 6 3,028 Total 8 $ 5,480 12 $ 5,020 20 $ 10,500 T he following tables present TDRs that occurred during the periods presented and the TDRs for which the payment default occurred within twelve months of the restructure date. A default on a TDR results in a transfer to nonaccrual status, a charge-off or a combination of both Six Months Ended June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) Number of loans 2 - 2 - - 4 Pre-modification balance $ 583 $ - $ 128 $ - $ - $ 711 Post-modification balance $ 583 $ - $ 128 $ - $ - $ 711 TDRs that subsequently defaulted Number of loans 1 - - - - 1 Recorded balance $ 113 $ - $ - $ - $ - $ 113 Six Months Ended June 30, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) Number of loans 6 - 25 2 - 33 Pre-modification balance $ 5,076 $ - $ 9,848 $ 277 $ - $ 15,201 Post-modification balance $ 5,076 $ - $ 9,848 $ 277 $ - $ 15,201 TDRs that subsequently defaulted Number of loans - - 1 - - 1 Recorded balance $ - $ - $ 18 $ - $ - $ 18 (1) Note 3 — Loans and Allowance for Credit Losses – Continued Current and past due loans held for investment (accruing and non-accruing) are summarized as follows: June 30, 2020 30-89 Days 90+ Days Non- Total Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Loans Commercial real estate: Real estate term $ 955,545 $ 586 $ - $ 2,652 $ 3,238 $ 958,783 Construction and land development 242,808 265 - 139 404 243,212 Total commercial real estate 1,198,353 851 - 2,791 3,642 1,201,995 Commercial and industrial 306,437 1,356 - 3,044 4,400 310,837 Consumer: Residential and home equity 139,888 737 - 549 1,286 141,174 Consumer and other 11,463 81 2 2 85 11,548 Total consumer 151,351 818 2 551 1,371 152,722 Total gross loans $ 1,656,141 $ 3,025 $ 2 $ 6,386 $ 9,413 $ 1,665,554 December 31, 2019 30-89 Purchased Days 90+ Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 942,370 $ 534 $ - $ 4,809 $ 5,343 $ 360 $ 948,073 Construction and land development 273,268 570 - 60 630 65 273,963 Total commercial real estate 1,215,638 1,104 - 4,869 5,973 425 1,222,036 Commercial and industrial 279,072 403 - 2,208 2,611 3,055 284,738 Consumer: Residential and home equity 162,360 154 - 45 199 - 162,559 Consumer and other 15,727 298 3 8 309 - 16,036 Total consumer 178,087 452 3 53 508 - 178,595 Total gross loans $ 1,672,797 $ 1,959 $ 3 $ 7,130 $ 9,092 $ 3,480 $ 1,685,369 Credit Quality Indicators: In addition to past due and non-accrual criteria, the Company also analyzes loans using a grading system. Performance-based grading follows the Company’s definitions of Pass, Special Mention, Substandard and Doubtful, which are consistent with published definitions of regulatory risk classifications. Definitions of Pass, Special Mention, Substandard, and Doubtful are summarized as follows: Pass : A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is considered remote. Special Mention : A Special Mention asset has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Company is currently protected and loss is considered unlikely and not imminent. Substandard : A Substandard asset is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have well defined weaknesses and are characterized by the distinct possibility that the Company may sustain some loss if deficiencies are not corrected. Doubtful : A Doubtful asset has all the weaknesses inherent in a Substandard asset with the added characteristics that the weaknesses make collection or liquidation in full highly questionable. Note 3 — Loans and Allowance for Credit Losses – Continued For consumer loans, the Company generally assigns internal risk grades similar to those described above based on payment performance. Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: June 30, 2020 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans ACL Commercial real estate: Real estate term $ 908,884 $ 22,746 $ 27,153 $ - $ 958,783 $ 12,507 Construction and land development 228,769 11,151 3,292 - 243,212 15,121 Total commercial real estate 1,137,653 33,897 30,445 - 1,201,995 27,628 Commercial and industrial 293,321 6,588 10,928 - 310,837 11,760 Consumer loans: Residential and home equity 137,524 - 3,650 - 141,174 2,767 Consumer and other 11,545 - 3 - 11,548 528 Total consumer 149,069 - 3,653 - 152,722 3,295 Total $ 1,580,043 $ 40,485 $ 45,026 $ - $ 1,665,554 $ 42,683 December 31, 2019 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans ACL Commercial real estate: Real estate term $ 903,910 $ 23,202 $ 20,961 $ - $ 948,073 $ 12,275 Construction and land development 259,245 10,182 4,536 - 273,963 6,990 Total commercial real estate 1,163,155 33,384 25,497 - 1,222,036 19,265 Commercial and industrial 263,588 6,629 14,521 - 284,738 10,892 Consumer loans: Residential and home equity 159,176 204 3,179 - 162,559 1,118 Consumer and other 16,034 - 2 - 16,036 151 Total consumer 175,210 204 3,181 - 178,595 1,269 Total $ 1,601,953 $ 40,217 $ 43,199 $ - $ 1,685,369 $ 31,426 Note 3 — Loans and Allowance for Credit Losses – Continued The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable as of June 30, 2020: June 30, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Amortized Cost Total Loans held for investment: Commercial real estate: Real estate term Risk rating Pass $ 91,900 $ 143,466 $ 100,325 $ 93,752 $ 56,269 $ 201,275 $ 221,897 $ 908,884 Special mention - - 3,668 2,344 2,957 13,162 615 22,746 Substandard 1,265 1,243 195 377 300 5,296 18,477 27,153 Doubtful - - - - - - - - Total real estate term loans $ 93,165 $ 144,709 $ 104,188 $ 96,473 $ 59,526 $ 219,733 $ 240,989 $ 958,783 Construction and land development Risk rating Pass $ 6,996 $ 8,139 $ 10,714 $ 3,492 $ 6,750 $ 8,941 $ 183,737 $ 228,769 Special mention - - - - - - 11,151 11,151 Substandard - - - - - 60 3,232 3,292 Doubtful - - - - - - - - Total construction and land development loans $ 6,996 $ 8,139 $ 10,714 $ 3,492 $ 6,750 $ 9,001 $ 198,120 $ 243,212 Total commercial real estate loans $ 100,161 $ 152,848 $ 114,902 $ 99,965 $ 66,276 $ 228,734 $ 439,109 $ 1,201,995 Commercial and industrial Risk rating Pass $ 96,206 $ 35,106 $ 39,473 $ 19,902 $ 11,832 $ 45,044 $ 45,758 $ 293,321 Special mention - 197 446 - 1,227 4,522 196 6,588 Substandard - 1,973 732 1,467 437 4,691 1,628 10,928 Doubtful - - - - - - - - Total commercial and industrial loans $ 96,206 $ 37,276 $ 40,651 $ 21,369 $ 13,496 $ 54,257 $ 47,582 $ 310,837 Consumer: Residential real estate Risk rating Pass $ 11,250 $ 28,060 $ 23,884 $ 18,786 $ 12,897 $ 35,303 $ 7,344 $ 137,524 Special mention - - - - - - - - Substandard 183 - 85 242 780 2,360 - 3,650 Doubtful - - - - - - - - Total residential real estate loans $ 11,433 $ 28,060 $ 23,969 $ 19,028 $ 13,677 $ 37,663 $ 7,344 $ 141,174 Consumer and other Risk rating Pass $ 4,652 $ 2,610 $ 1,941 $ 957 $ 364 $ 1,018 $ 3 $ 11,545 Special mention - - - - - - - - Substandard 2 - - - 1 - - 3 Doubtful - - - - - - - - Total consumer and other loans $ 4,654 $ 2,610 $ 1,941 $ 957 $ 365 $ 1,018 $ 3 $ 11,548 Total consumer loans $ 16,087 $ 30,670 $ 25,910 $ 19,985 $ 14,042 $ 38,681 $ 7,347 $ 152,722 Total gross loans $ 212,454 $ 220,794 $ 181,463 $ 141,319 $ 93,814 $ 321,672 $ 494,038 $ 1,665,554 Note 3 — Loans and Allowance for Credit Losses – Continued The ACL and outstanding loan balances reviewed according to the Company’s estimated credit loss methods are summarized as follows: June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for credit losses: Individually evaluated for impairment $ 892 $ 1,512 $ 4,402 $ 401 $ - $ 7,207 Collectively evaluated for impairment 11,615 13,609 7,358 2,366 528 35,476 Total $ 12,507 $ 15,121 $ 11,760 $ 2,767 $ 528 $ 42,683 Outstanding loan balances: Individually evaluated for impairment $ 2,423 $ 4,806 $ 10,819 $ 504 $ - $ 18,552 Collectively evaluated for impairment 956,360 238,406 300,018 140,670 11,548 1,647,002 Total gross loans $ 958,783 $ 243,212 $ 310,837 $ 141,174 $ 11,548 $ 1,665,554 December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for credit losses: Individually evaluated for impairment $ 825 $ 1,305 $ 4,901 $ 401 $ - $ 7,432 Collectively evaluated for impairment 11,255 5,669 5,991 717 151 23,783 Purchased credit-impaired loans 195 16 - - - 211 Total $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Outstanding loan balances: Individually evaluated for impairment $ 18,305 $ 4,474 $ 14,467 $ 3,701 $ - $ 40,947 Collectively evaluated for impairment 929,408 269,424 267,216 158,858 16,036 1,640,942 Purchased credit-impaired loans 360 65 3,055 - - 3,480 Total gross loans $ 948,073 $ 273,963 $ 284,738 $ 162,559 $ 16,036 $ 1,685,369 The following table provides amortized cost basis of collateral dependent loans as of June 30, 2020: June 30, 2020 Real Accounts (Dollars in thousands) Estate Receivable Equipment Livestock Auto Total Commercial real estate: Real estate term $ 891 $ - $ - $ - $ - $ 891 Construction and land development 4,806 - - - - 4,806 Total commercial real estate 5,697 - - - - 5,697 Commercial and industrial - 3,794 3,415 70 148 7,427 Consumer: Residential and home equity 399 - - - - 399 Consumer and other - - - - - - Total consumer 399 - - - - 399 Total collateral dependent loans $ 6,096 $ 3,794 $ 3,415 $ 70 $ 148 $ 13,523 Note 3 — Loans and Allowance for Credit Losses – Continued Information on individually evaluated loans is summarized as follows: June 30, 2020 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment ACL Commercial real estate: Real estate term $ 2,779 $ - $ 2,423 $ 2,423 $ 892 Construction and land development 4,808 - 4,806 4,806 1,512 Total commercial real estate 7,587 - 7,229 7,229 2,404 Commercial and industrial 12,229 - 10,819 10,819 4,402 Consumer loans: Residential and home equity 504 - 504 504 401 Consumer and other - - - - - Total consumer 504 - 504 504 401 Total $ 20,320 $ - $ 18,552 $ 18,552 $ 7,207 December 31, 2019 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment ACL Commercial real estate: Real estate term $ 18,305 $ 11,684 $ 6,621 $ 18,305 $ 825 Construction and land development 4,474 121 4,353 4,474 1,305 Total commercial real estate 22,779 11,805 10,974 22,779 2,130 Commercial and industrial 14,467 2,591 11,876 14,467 4,901 Consumer loans: Residential and home equity 3,701 3,194 507 3,701 401 Consumer and other - - - - - Total consumer 3,701 3,194 507 3,701 401 Total $ 40,947 $ 17,590 $ 23,357 $ 40,947 $ 7,432 Interest income recognized on the average recorded investment of individually evaluated loans was as follows: Three Months Ended June 30, 2020 June 30, 2019 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 4,835 $ 25 $ 13,858 $ 182 Construction and land development 2,958 47 3,987 71 Total commercial real estate 7,793 72 17,845 253 Commercial and industrial 10,733 96 12,183 170 Consumer loans: Residential and home equity 828 4 3,096 44 Consumer and other - - - - Total consumer 828 4 3,096 44 Total $ 19,354 $ 172 $ 33,124 $ 467 Note 3 — Loans and Allowance for Credit Losses – Continued Six Months Ended June 30, 2020 June 30, 2019 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 8,806 $ 155 $ 11,998 $ 305 Construction and land development 2,962 99 2,545 88 Total commercial real estate 11,768 254 14,543 393 Commercial and industrial 11,644 261 10,806 325 Consumer loans: Residential and home equity 1,540 32 3,134 91 Consumer and other - - - - Total consumer 1,540 32 3,134 91 Total $ 24,952 $ 547 $ 28,483 $ 809 Purchased credit-deteriorated loans and purchased non-credit-deteriorated loans . Prior to adoption of ASC 326, purchased loans, including loans acquired in business combinations, were recorded at their fair value at the acquisition date. Credit discounts were included in the determination of fair value; therefore, an allowance for loan and lease losses was not recorded at the acquisition date. Acquired loans were evaluated upon acquisition and classified as either PCI or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $6.2 million at December 31, 2019. As of December 31, 2019, the non-accretable difference between the contractually required payments and cash flows expected to be collected were $2.8 million. The carrying balance of PCI loans was $3.5 million at December 31, 2019. On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased through an acquisition or business combination. Loans that were previously classified as PCI and accounted for under ASC 310-30 were reclassified as PCD loans. In accordance with the new standard, management did not reassess whether PCI loans met the criteria of PCD loan as of the date of adoption. On January 1, 2020, the amortized cost basis for PCD loans was increased by $1.5 million to reflect the addition of ACL. The remaining noncredit discount will continue to be accreted into interest income over the remaining life of the portfolio. The outstanding contractual unpaid principal balance of PCD loans was $2.5 million at June 30, 2020. The following table presents the changes in the accretable yield for non-PCD loans for the six months ended June 30, 2020, and 2019: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Balance, beginning of period $ 4,247 $ 5,884 Accretion to interest income (1,192 ) (874 ) Reclassification from non-accretable difference 402 96 Balance, end of period $ 3,457 $ 5,106 Note 3 — Loans and Allowance for Credit Losses – Continued Loans and Deposits to affiliates — The Company has entered into loan transactions with certain directors, affiliated companies and executive officers (“affiliates”). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. Total outstanding loans with affiliates were approximately $7.9 million and $5.4 million as of June 30, 2020, and December 31, 2019, respectively. Available lines of credit for loans and credit cards to affiliates were approximately $3.9 million and $278,000 as of June 30, 2020, and December 31, 2019, respectively. Deposits from affiliates were $8.0 million and $4.5 million as of June 30, 2020 and December 31, 2019, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 4 — Commitments and Contingencies Litigation contingencies — The Company is involved in various claims, legal actions and complaints which arise in the ordinary course of business. In the Company’s opinion, all such matters are adequately covered by insurance, are without merit or are of such kind, or involve such amounts, that unfavorable disposition would not have a material adverse effect on the financial condition or results of operations of the Company. Commitments to extend credit — In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and unused credit card lines, which are not included in the accompanying consolidated financial statements. The Company’s exposure to credit loss in the event of non-performance by other parties to the financial instruments for commitments to extend credit and unused credit card lines is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the consolidated balance sheets. Contractual amounts of off-balance sheet financial instruments were as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Commitments to extend credit, including unsecured commitments of $12,822 and $32,995 as of June 30, 2020 and December 31, 2019, respectively $ 659,794 $ 632,577 Stand-by letters of credit and bond commitments, including unsecured commitments of $403 and $555 as of June 30, 2020 and December 31, 2019, respectively 23,493 23,860 Unused credit card lines, all unsecured 26,860 26,121 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments to extend credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Unused credit card lines are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 5 — Fair Value The Company measures and discloses certain assets and liabilities at fair value. The standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These two types of inputs create the following fair value hierarchy: • Level 1 – Quoted prices in active markets for identical instruments. • Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. The following methods were used to estimate the fair value of each class of financial instruments: Securities : The estimated fair values of investment securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2. Level 3 measurements were determined using discounted cash flow analyses based on the net present value of each security’s projected cash flows using observable market data for similar securities. Non-marketable securities : The fair value is based upon the redemption value of the stock, which equates to its carrying value. Loans held for sale : The carrying value of these items is a reasonable estimate of their fair value. Loans held for investment : The fair value is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types’ fair value approximated carrying value because of their floating rate or expected maturity characteristics. Deposits : The carrying amount of deposits with no stated maturity, such as savings and checking accounts, is a reasonable estimate of their fair value. The market value of certificates of deposit is based upon the discounted value of contractual cash flows. The discount rate is determined using the rates currently offered on comparable instruments. Note 5 — Fair Value - Continued The following table presents estimated fair values of the Company’s financial instruments as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated (Dollars in thousands) Level Value Fair Value Value Fair Value Financial Assets: Cash and cash equivalents 1 $ 323,837 $ 323,837 $ 211,981 $ 211,981 Investment securities available for sale 2 964,959 964,959 395,410 395,410 Investment securities available for sale 3 8,498 8,498 10,585 10,585 Non-marketable securities 2 2,890 2,890 2,623 2,623 Loans held for sale 2 29,264 29,264 18,669 18,669 Loans held for investment 3 1,616,335 1,583,362 1,649,492 1,639,480 Financial Liabilities: Total deposits 2 $ 2,613,339 $ 2,465,845 $ 2,056,367 $ 1,851,954 Assets measured on a recurring and non-recurring basis are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2020 Fair valued on a recurring basis: Investment securities available for sale $ - $ 964,959 $ 8,498 $ 973,457 Fair valued on a non-recurring basis: Individually evaluated loans - - 945 945 As of December 31, 2019 Fair valued on a recurring basis: Investment securities available for sale $ - $ 395,410 $ 10,585 $ 405,995 Fair valued on a non-recurring basis: Individually evaluated loans - - 17,497 17,497 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 — Income Taxes Income tax expense was $3.2 million and $3.5 million for the three months ended June 30, 2020 and 2019, respectively. The Company’s effective tax rate for the second quarter of 2020 was 23.6% compared with 24.1% in the second quarter of 2019. Income tax expense was $6.6 million and $6.8 million for the six months ended June 30, 2020 and 2019, respectively. The Company’s effective tax rate for the six months ended June 30, 2020 was 23.7% compared with 23.9% for the same period in 2019. |
Regulatory Capital Matters
Regulatory Capital Matters | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Matters | Note 7 — Regulatory Capital Matters The Company is subject to various regulatory capital requirements administered by its primary federal regulator, the FDIC. Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and its consolidated financial statements. Under the regulatory capital adequacy guidelines and regulatory framework for prompt corrective action, the Company must meet specific capital guidelines involving quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As of June 30, 2020, the Company was categorized as well capitalized under the regulatory framework. To be categorized as well capitalized, an institution must maintain minimum common Tier 1 (“CET1”), Tier 1 risk-based capital, total risk-based capital, and Tier 1 to average assets (“Tier 1 Leverage”) capital ratios as disclosed in the table below. Note 7 — Regulatory Capital Matters – continued The Company’s actual and required capital amounts and ratios are as follows: June 30, 2020 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 310,678 17.94 % $ 77,941 4.50 % $ 112,581 6.50 % Tier 1 Capital to Risk-Weighted Assets 310,678 17.94 % 103,921 6.00 % 138,561 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 332,608 19.20 % 138,561 8.00 % 173,202 10.00 % Tier 1 Leverage 310,678 11.68 % 106,380 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 305,829 17.66 % $ 77,922 4.50 % $ 112,554 6.50 % Tier 1 Capital to Risk-Weighted Assets 305,829 17.66 % 103,896 6.00 % 138,528 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 327,759 18.93 % 138,528 8.00 % 173,160 10.00 % Tier 1 Leverage 305,829 11.52 % 106,207 4.00 % 132,759 5.00 % December 31, 2019 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 302,291 17.18 % $ 79,193 4.50 % $ 114,390 6.50 % Tier 1 Capital to Risk-Weighted Assets 302,291 17.18 % 105,590 6.00 % 140,787 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 324,415 18.43 % 140,787 8.00 % 175,984 10.00 % Tier 1 Leverage 302,291 12.67 % 95,431 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 297,108 16.88 % $ 79,191 4.50 % $ 114,387 6.50 % Tier 1 Capital to Risk-Weighted Assets 297,108 16.88 % 105,588 6.00 % 140,784 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 319,233 18.14 % 140,784 8.00 % 175,981 10.00 % Tier 1 Leverage 297,108 12.45 % 95,429 4.00 % 119,286 5.00 % Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits. On March 15, 2020, the Board of Governors of the Federal Reserve reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions. The Bank had a reserve requirement of $9.4 million as of December 31, 2019. The Company’s Board of Directors may declare a cash or stock dividend out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations and, therefore, dividend amounts may be correspondingly limited. |
Incentive Share-Based Plan and
Incentive Share-Based Plan and Other Employee Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Share-Based Plan and Other Employee Benefits | Note 8 — Incentive Share-Based Plan and Other Employee Benefits In May 2020, on approval by and at the recommendation of the Board of Directors (“Board”), the shareholders of the Company approved a share-based incentive plan (“the Plan”). The Plan provides for various share-based incentive awards including incentive share-based options, non-qualified share-based options, restricted shares, and stock appreciation rights to be granted to officers, directors and other key employees. The maximum aggregate number of shares that may be issued under the Plan is 1,000,000 common shares. The share-based awards are granted to participants under the Plan at a price not less than the fair value on the date of grant and for terms of up to ten years. The Plan also allows for granting of share-based awards to directors and consultants who are not employees of the Company. During the six months ended June 30, 2020, the Company granted 55,187 restricted stock units (“RSU”) at a weighted-average fair value of $29.02 per unit. All awards granted thru June 30, 2020 were done so under the prior employee incentive plan. Beginning July 1, 2020, any new grants awarded to associates will be under the new Plan. The RSUs generally vest over periods from one to three years. The Company recorded share-based compensation expense of $765,000 and $381,000 for the six months ended June 30, 2020 and 2019, respectively. Additionally, the Company did not grant any options for the purchase of common shares during the six months ended June 30, 2020, and 2019, respectively. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Consolidation | Nature of operations and basis of consolidation — Altabancorp TM (“ALTA” or the “Company”) is a Utah corporation headquartered in American Fork, Utah. The Company operates all business activities through its wholly-owned banking subsidiary, Altabank TM (the “Bank”), which was organized in 1913. Altabank TM is a Utah state-chartered bank. Altabank TM operates under the jurisdiction of the Utah Department of Financial Institutions (“UDFI”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). Altabank TM is not a member of the Federal Reserve System; however, ALTA is operated as a bank holding company under the Federal Bank Holding Company Act of 1956 and is the sole shareholder of Altabank TM . Both ALTA and Altabank TM are subject to periodic examination by all of the applicable federal and state regulatory agencies and file periodic reports and other information with such agencies. The Company considers Altabank TM to be its sole operating segment. Altabank TM TM TM TM TM The accompanying unaudited interim consolidated financial statements include the accounts of the Company together with its subsidiary Bank. All intercompany transactions and balances have been eliminated. These unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC and the accounting standards for interim financial statements. |
Use of Estimates | Use of estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses (“ACL”), the determination of the fair value of certain financial instruments, the valuation of real estate acquired through foreclosure, deferred income tax assets, and share-based compensation. |
Reclassifications | Reclassifications — Certain reclassifications have been made to the 2019 Consolidated Financial Statements and/or schedules to conform to the 2020 presentation. These reclassifications may have affected certain ratios for the prior periods. The effect of these reclassifications is considered immaterial. |
Business Combinations | Business combinations — Business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged are recorded at fair value on the acquisition date. The excess purchase consideration over fair value of net assets acquired is recorded as goodwill. Expenses incurred in connection with a business combination are expensed as incurred. Changes in deferred tax asset valuation allowances related to acquired tax uncertainties are recognized in net income after the measurement period. |
Cash and Cash Equivalents | Cash and cash equivalents — Cash and cash equivalents consist of cash on hand, amounts due from banks, interest bearing deposits, and federal funds sold, all of which have original maturities of three months or less. The Company places its cash with high credit quality institutions. The amounts on deposit fluctuate and, at times, exceed the insured limit by the FDIC, which potentially subjects the Company to credit risk. |
Investment Securities | Investment securities — Investment securities are classified as held to maturity (“HTM”) when the Company has the positive intent and ability to hold the securities to maturity. Investment securities are classified as available for sale (“AFS”) when the Company has the intent of holding the security for an indefinite period of time, but not necessarily to maturity. The Company determines the appropriate classification at the time of purchase, and periodically thereafter. Investment securities classified as HTM are carried at amortized cost. Investment securities classified as AFS are reported at fair value. As the fair value of AFS securities changes, the changes are reported (net of tax, if applicable) in comprehensive income and as an element of accumulated other comprehensive income/loss (“AOCI”) in shareholder’s equity. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are generally amortized on the level-yield method without anticipating prepayments, except for callable debt securities. Premiums on callable debt securities are amortized to the earliest call date. When AFS securities, specifically identified, are sold, the unrealized gain or loss is reclassified from AOCI to non-interest income. A debt security is placed on nonaccrual status at the time any principal or interest payments become greater than 90 days delinquent. Delinquent interest accrued but not received for a security placed on nonaccrual is reversed against interest income. The Company did not have any accrued interest reversed against interest income for the six months ended June 30, 2020. |
Allowance For Credit Losses - AFS Securities | Allowance for credit losses – AFS securities —For AFS debt securities in an unrealized loss position, management assesses whether the Company intends to sell or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either criterion regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to the fair value through non-interest income. For AFS debt securities that do not meet the aforementioned criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which the fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, which is limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in AOCI. Changes in the allowance for credit losses are recorded as a Provision for Credit Losses (“PCL”). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criterion regarding intent or requirement to sell is met. |
Non-Marketable Equity Securities | Non-marketable equity securities — Non-marketable equity securities primarily consist of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to the restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Bank’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs is jointly and severally liable for repayment of each other’s debt. |
Loans Held for Sale | Loans held for sale —Single-family residential mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Loans with best effort delivery commitments are carried at the lower of aggregate cost or estimated fair value. Loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the economic hedges on the loans. Fair values for loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Substantially all of the residential mortgage loans originated are sold to larger financial institutions. |
Loans Held for Investment | Loans held for investment — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at amortized cost, net of the allowance for credit losses. Amortized cost includes the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs. Accrued interest is reported as a separate line item on the unaudited consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the effective interest method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent, unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loan are charged-off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged-off no later than 120 days past due unless the loan is in the process of collection. Past-due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charge-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Troubled Debt Restructurings ("TDR") | Troubled debt restructurings (“TDR”) —A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. TDRs are then evaluated to determine if the TDR loan has estimated credit losses using the same methodology used for other individually evaluated loans as described in the next section. With the recent COVID-19 pandemic, the number of loans that have had loan payments deferred has significantly increased. In accordance with regulatory guidance, to the extent that the borrower was not experiencing financial difficulties prior to the pandemic, such modifications have not been classified as TDRs. |
Individually Evaluated Loans | Individually evaluated loans — The Company considers loans individually evaluated when, based on current information and events, it is probable the Company will be unable to collect all principal and interest payments due according to the contractual terms of the loan agreement. Such loans are generally classified as Substandard or Doubtful loans (see Note 3). Individually evaluated loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral, adjusted for selling costs, if the loan is collateral dependent. Changes in these values are recorded to the ACL through the PCL. Factors considered by management in determining estimated credit losses include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as individually evaluated. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. |
Acquired Loans | Acquired loans – Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date, including estimates of current expected credit losses. Some acquired loans have experienced more than insignificant credit deterioration since origination. Such loans are defined as Purchased Credit Deteriorated (“PCD”). The Company makes the determination if a loan is PCD by considering past due and/or nonaccrual status, prior designation of a troubled debt restructuring, or other factors that may suggest the Company will not be able to collect all contractual payments due. Subsequent to acquisition, the amount of expected credit losses as of the acquisition date is added to the purchase price of PCD loans with an offsetting entry to ACL. Any difference between the unpaid principal balance and the amortized cost basis of the PCD loan as of the acquisition date is the non-credit discount or premium. The non-credit discount recorded at acquisition is amortized or accreted into interest income over the remaining life of the PCD loan on an effective interest method. To the extent that management changes the Company’s estimate of expected credit losses on PCD loans, the ACL will be increased or decreased with a corresponding entry to PCL. Some acquired loans may not have experienced more than insignificant credit deterioration since origination. Such loans are defined as Purchased non-Credit Deteriorated (“Non-PCD”) loans. Non-PCD loans are also recorded at fair value at the time of acquisition, including estimates of current expected credit losses. However, any current expected credit losses estimated as of the acquisition date are not added to the purchase price with an offsetting entry to ACL, but rather such estimate is included in the difference between the unpaid principal balance and the amortized cost basis of the Non-PCD loan. This credit and non-credit discount is amortized or accreted into interest income over the remaining life of the Non-PCD loan on an effective interest method. In addition, an allowance for credit losses is determined for Non-PCD loans using the same methodology as loans held for investment with an offset recorded to PCL. An acquired loan previously classified by the seller as a TDR is no longer classified as such at the date of acquisition. Past due status is reported based on contractual payment status. Changes to the ACL for acquired loans are recorded through PCL after adoption. |
Allowance for Credit Losses - Loans | Allowance for credit losses – Loans — Credit risk is inherent in the business of extending loans and leases to borrowers. Normally, this credit risk is addressed through a valuation allowance termed allowance for credit losses. The ACL represents management’s estimate of current expected credit losses (“CECL”) inherent in the loan portfolio at each balance sheet date. Netted against the outstanding loan balance, this ACL reduces the balance to the Company’s estimate of what will be collected from borrowers. The ACL is established through charges to current period earnings by recording a PCL. When losses become specifically identifiable and quantifiable, the loan balance is reduced through recording a charge-off against the ACL. Should payments be received on a charged-off loan, the payment is credited to the ACL as a recovery. Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience, either internal or peer information, provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made, using qualitative factors, when management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. Management must exercise significant judgment when evaluating the effect of qualitative factors on the amount of the ACL because data may not be reasonably available or directly applicable for management to determine the precise impact of a factor on the collectability of the loan portfolio as of the evaluation date. Management considers qualitative or environmental factors that are likely to cause estimated credit losses associated with our existing portfolio to differ from historical loss experience, including but not limited to: i) changes in lending policies and procedures; ii) changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; iii) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; iv) changes in the nature and volume of the portfolio and in the terms of loans; v) changes in the experience, ability, and depth of lending management and other relevant staff; vi) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans; vii) changes in the quality of the institution’s loan review system; viii) changes in the value of underlying collateral for collateral-dependent loans; ix) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and, x) the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision, as more information becomes available. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued The Company used the weighted average remaining maturity (or “WARM”) approach, adjusted for prepayments, to calculate CECL at June 30, 2020 and segmented its loan portfolio into seventeen loan segments based on similar risk characteristics. Management may change the approach used to calculated current expected credit losses or loan segments from time-to-time as the Company improves credit loss estimation techniques. The Company has elected to exclude accrued interest receivable from its calculation of the ACL. |
Off-Balance-Sheet Credit Related Financial Instruments | Off-balance sheet credit related financial instruments — In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Allowance For Credit Losses On Off-Balance Sheet Credit Exposures | Allowance for credit losses on off-balance sheet credit exposures — The Company estimates expected credit losses on off-balance sheet credit exposures using the same CECL historical loss rates applied to loans held for investment over the contractual period in which the Company is exposed to credit risk through a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company, adjusted for funding factors. The allowance for credit losses on off-balance sheet credit exposures is reported in other liabilities on the unaudited consolidated balance sheets with an offset to other non-interest expense. The estimate of CECL includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated life. |
Premises and Equipment | Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 15 to 40 years Leasehold improvements 3 to 15 years Furniture and equipment 3 to 15 years Computers, software and equipment 3 to 5 years Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. |
Bank-Owned Life Insurance | Bank-owned life insurance (“BOLI”) — The Bank has purchased life insurance policies. These policies provide protection against the adverse financial effects that could result from the death of a key employee and provide tax-exempt income to offset expenses associated with the plans. It is the Bank’s intent to hold these policies as a long-term investment; however, there may be an income tax impact if the Bank chooses to surrender certain policies. Although the lives of individual current or former management-level employees are insured, the Bank is the owner and sole or partial beneficiary. BOLI is carried at the cash surrender value (“CSV”) of the underlying insurance contract. Changes in the CSV and any death benefits received in excess of the CSV are recognized as non-interest income. |
Goodwill | Goodwill — Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, or more frequently as current circumstances and conditions warrant, for impairment. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment compares the reporting unit's estimated fair values, including goodwill, to its carrying amount. If the carrying amount exceeds its reporting unit’s fair value, then an impairment loss would be recognized as a charge to earnings but is limited by the amount of goodwill allocated to that reporting unit. |
Other Intangible Assets | Other intangible assets — Other intangible assets consist primarily of core deposit intangibles (“CDI”), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the client relationships associated with the deposits. Core deposit intangibles are amortized over the estimated useful life of such deposits. These assets are reviewed at least annually for events or circumstances that could affect their recoverability. These events could include loss of the underlying core deposits, increased competition or adverse changes in the economy. To the extent other identifiable intangible assets are deemed unrecoverable; impairment losses are recorded in other non-interest expense to reduce the carrying amount of the assets. |
Mortgage and Other Servicing Rights | Mortgage and other servicing rights — Mortgage and other servicing rights are recognized as separate assets when rights are acquired through purchase of such rights or through the sale of loans. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For loans sold, the fair value of the servicing rights are estimated and capitalized. Fair value is based on market prices for comparable servicing rights contracts. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. |
Other Real Estate Owned | Other real estate owned — Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the carrying amount of the foreclosed loan or the fair value of the foreclosed asset, less costs to sell, at the date of foreclosure. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value, less selling costs. Revenues and expenses from operations and changes in the valuation allowance are included in other real estate owned expense. |
Transfers of Financial Assets | Transfers of financial assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Income Taxes | Income taxes — Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. |
Share Based Compensation Plans | Share-based compensation plans — The fair value of incentive share-based awards is recorded as compensation expense over the vesting period of the award. Compensation expense for stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Compensation expense for RSUs is based on the fair value of the Company’s common shares at the date of grant. RSU awards generally vest in thirds over three years from date of grant. |
Earnings Per Share | Earnings per share — Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method and for all outstanding RSUs. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except share and per share data) 2020 2019 2020 2019 Numerator Net income $ 10,338 $ 10,989 $ 21,111 $ 21,494 Denominator Weighted-average number of common shares outstanding 18,789,561 18,805,760 18,837,209 18,793,553 Incremental shares assumed for stock options and RSUs 142,950 201,537 148,110 204,927 Weighted-average number of dilutive shares outstanding 18,932,511 19,007,297 18,985,319 18,998,480 Basic earnings per common share $ 0.55 $ 0.58 $ 1.12 $ 1.14 Diluted earnings per common share $ 0.55 $ 0.58 $ 1.11 $ 1.13 |
Comprehensive Income | Comprehensive income — U.S. GAAP generally requires that recognized revenues, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, net of the related income tax effect, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Impact of Recent Authoritative Accounting Guidance | Impact of recent authoritative accounting guidance — The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard Updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for us as an SEC registrant. All other accounting literature is non-authoritative. In December 2019, FASB issued ASU 2019-12, Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Adoption of ASU 2019-12 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. The amendments in this ASU were applied prospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 did not have a material impact on the Company’s Consolidated Financial Statements. In August 2018, FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The ASU removes, modifies and adds disclosure requirements in Topic 820. The following disclosure requirements were removed: 1) the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy for timing of transfers between levels, and 3) the valuation processes for Level 3 fair value measurements. This ASU modified disclosure requirements by requiring that the measurement uncertainty disclosure communicates information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added: 1) changes in unrealized gains and losses for the period included in other comprehensive income for the recurring Level 3 fair value measurements held at the end of the reporting period, and 2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Adoption of ASU 2018-13 did not have a material impact on the Company’s Consolidated Financial Statements. In June 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU significantly changes the accounting for credit loss measurement on loans and debt securities. For loans and held-to-maturity debt securities, the ASU requires a current expected credit loss measurement to estimate the allowance for credit losses for the remaining estimated life of the financial asset (including off-balance sheet credit exposures) using historical experience, current conditions, and reasonable and supportable forecasts. The ASU eliminates the existing guidance for purchased credit impaired (“PCI”) loans but requires an allowance for purchased financial assets with more than an insignificant deterioration since origination, otherwise known as purchased credit deteriorated assets. In addition, the ASU modifies the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on an improvement in credit. This ASU was effective for interim and annual reporting periods beginning after December 15, 2019. On October 16, 2019, the FASB voted to delay the adoption of CECL by two years to January 2023 for private companies, not-for-profit companies, and certain small public companies that meet the definition of a smaller reporting company (“SRC”), as defined by the Securities and Exchange Commission. To meet the requirements of an SRC, an entity must be an issuer as defined by the SEC and have public float of less than $250 million, or public float of less than $700 million and annual revenues of less than $100 million. As of June 30, 2019, our public float was $466 million and annual revenues for 2018 were $130 million. As a result, we are not an SRC and, therefore, were required to adopt the ASU effective January 1, 2020. Note 1 — Basis of Presentation and Significant Accounting Policies – Continued On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2020, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased through an acquisition or business combination. Loans that were previously classified as PCI and accounted for under ASC 310-30 were reclassified as PCD loans. In accordance with the new standard, management did not reassess whether PCI loans met the criteria of PCD loan as of the date of adoption. On January 1, 2020 the amortized cost basis for PCD loans was increased by $1.5 million to reflect the addition of credit discounts to ACL. The remaining noncredit discount will be accreted into interest income over the remaining life of the portfolio. For Non-PCD loans, the Company increased its ACL by $2.6 million using the same methodology used for loans held for investment. The remaining credit and noncredit discount will be accreted into interest income over the remaining life of the portfolio. The Company further increased its ACL by $5.4 million to reflect the change in accounting methodology for CECL. The following table illustrates the impact of the adoption of ASC 326: January 1, 2020 (Dollars in thousands) Reported Under ASC 326 Reported Pre Adoption Impact of ASC 326 Adoption Assets: Allowance for credit losses: Commercial real estate loans: Real estate term $ 12,683 $ 12,275 $ 408 Construction and land development 13,393 6,990 6,403 Total commercial real estate 26,076 19,265 6,811 Commercial and industrial 11,541 10,892 649 Consumer loans: Residential and home equity 2,635 1,118 1,517 Consumer and other 640 151 489 Total consumer 3,275 1,269 2,006 Total allowance for credit losses on loans $ 40,892 $ 31,426 $ 9,466 Liabilities and shareholders’ equity: Reserve for off-balance sheet obligations 1,669 880 789 Shareholders’ equity 325,682 332,362 (6,680 ) The Company expects greater volatility in its earnings and those of other banks after adoption due to the nature and time horizon used to calculate CECL. In addition, the Company expects a potential negative impact to credit availability and reduced loan terms to borrowers as this ASU is adopted by financial institutions. Lastly, the Company expects a lack of comparability with financial performance to many of its peers as it adopts this ASU, due to delayed adoption for public companies with total assets similar in size to us and the recent option to delay implementation. |
Subsequent Events | Subsequent events — The Company has evaluated events occurring subsequent to June 30, 2020 for disclosure in the consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Related Assets | Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 15 to 40 years Leasehold improvements 3 to 15 years Furniture and equipment 3 to 15 years Computers, software and equipment 3 to 5 years |
Schedule of Earnings Per Common Share | Note 1 — Basis of Presentation and Significant Accounting Policies – Continued Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands, except share and per share data) 2020 2019 2020 2019 Numerator Net income $ 10,338 $ 10,989 $ 21,111 $ 21,494 Denominator Weighted-average number of common shares outstanding 18,789,561 18,805,760 18,837,209 18,793,553 Incremental shares assumed for stock options and RSUs 142,950 201,537 148,110 204,927 Weighted-average number of dilutive shares outstanding 18,932,511 19,007,297 18,985,319 18,998,480 Basic earnings per common share $ 0.55 $ 0.58 $ 1.12 $ 1.14 Diluted earnings per common share $ 0.55 $ 0.58 $ 1.11 $ 1.13 |
Schedule of Impact of Adoption of ASC 326 | The following table illustrates the impact of the adoption of ASC 326: January 1, 2020 (Dollars in thousands) Reported Under ASC 326 Reported Pre Adoption Impact of ASC 326 Adoption Assets: Allowance for credit losses: Commercial real estate loans: Real estate term $ 12,683 $ 12,275 $ 408 Construction and land development 13,393 6,990 6,403 Total commercial real estate 26,076 19,265 6,811 Commercial and industrial 11,541 10,892 649 Consumer loans: Residential and home equity 2,635 1,118 1,517 Consumer and other 640 151 489 Total consumer 3,275 1,269 2,006 Total allowance for credit losses on loans $ 40,892 $ 31,426 $ 9,466 Liabilities and shareholders’ equity: Reserve for off-balance sheet obligations 1,669 880 789 Shareholders’ equity 325,682 332,362 (6,680 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale | Amortized cost and estimated fair value of investment securities available for sale are summarized as follows: Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2020 U.S. Government-sponsored securities $ 13,480 $ 391 $ - $ - $ 13,871 Municipal securities 45,723 1,210 - - 46,933 Mortgage-backed securities 894,335 14,307 (694 ) (37 ) 907,911 Corporate securities 5,000 1 - (259 ) 4,742 $ 958,538 $ 15,909 $ (694 ) $ (296 ) $ 973,457 As of December 31, 2019 U.S. Government-sponsored securities $ 20,957 $ 235 $ - $ (2 ) $ 21,190 Municipal securities 56,252 670 (1 ) (9 ) 56,912 Mortgage-backed securities 321,944 2,188 (481 ) (543 ) 323,108 Corporate securities 5,000 - - (215 ) 4,785 $ 404,153 $ 3,093 $ (482 ) $ (769 ) $ 405,995 |
Summary of Gross Unrealized Losses and Fair Value for Securities Available for Sale and Held to Maturity | At June 30, 2020 and December 31, 2019, the gross unrealized losses and the fair value for securities available for sale and held to maturity were as follows: As of June 30, 2020 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ - $ - $ - $ - Municipal securities - - - - - - Mortgage-backed securities 95,605 (694 ) 3,031 (37 ) 98,636 (731 ) Corporate securities - - 2,741 (259 ) 2,741 (259 ) $ 95,605 $ (694 ) $ 5,772 $ (296 ) $ 101,377 $ (990 ) As of December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ 5,998 $ (2 ) $ 5,998 $ (2 ) Municipal securities 3,060 (1 ) 1,338 (9 ) 4,398 (10 ) Mortgage-backed securities 115,243 (481 ) 70,383 (543 ) 185,626 (1,024 ) Corporate securities - - 4,785 (215 ) 4,785 (215 ) $ 118,303 $ (482 ) $ 82,504 $ (769 ) $ 200,807 $ (1,251 ) |
Summary of Amortized Cost of Debt Securities Available for Sale Aggregated by Credit Quality Indicator | The following table summarizes the amortized cost of debt securities AFS at June 30, 2020, aggregated by credit quality indicator. Note 2 — Investment Securities – continued Gross Unrealized Losses Less 12 Gross Than Months Amortized Unrealized 12 or Fair (Dollars in thousands) Cost Gains Months Longer Value As of June 30, 2020 U.S. Government-backed securities (1) $ 907,815 $ 14,698 $ (694 ) $ (37 ) $ 921,782 Investment grade rating 42,486 950 - (259 ) 43,177 Below investment grade - - - - - Unrated investment securities 8,237 261 - - 8,498 $ 958,538 $ 15,909 $ (694 ) $ (296 ) $ 973,457 As of December 31, 2019 U.S. Government-sponsored securities (1) $ 342,901 $ 2,423 $ (481 ) $ (545 ) $ 344,298 Investment grade rating 50,793 544 (1 ) (224 ) 51,112 Below investment grade - - - - - Unrated investment securities 10,459 126 - - 10,585 $ 404,153 $ 3,093 $ (482 ) $ (769 ) $ 405,995 (1) |
Amortized Cost and Estimated Fair Value of Investment Securities that are Available for Sale and Held to Maturity by Contractual Maturity | The amortized cost and estimated fair value of investment securities that are available for sale and held to maturity at June 30, 2020, by contractual maturity, are as follows: Available For Sale Amortized Fair (Dollars in thousands) Cost Value Securities maturing in: One year or less $ 13,658 $ 13,720 After one year through five years 37,643 38,598 After five years through ten years 40,723 41,720 After ten years 866,514 879,419 $ 958,538 $ 973,457 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Summary of Loans | Loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Loans held for investment: Commercial real estate loans: Real estate term $ 958,783 $ 948,073 Construction and land development 243,212 273,963 Total commercial real estate loans 1,201,995 1,222,036 Commercial and industrial loans 310,837 284,738 Consumer loans: Residential and home equity 141,174 162,559 Consumer and other 11,548 16,036 Total consumer loans 152,722 178,595 Total gross loans 1,665,554 1,685,369 Net deferred loan fees (6,536 ) (4,451 ) Total loans held for investment 1,659,018 1,680,918 Allowance for credit losses (42,683 ) (31,426 ) Total loans held for investment, net $ 1,616,335 $ 1,649,492 |
Summary of Changes in Allowance for Credit Losses | Note 3 — Loans and Allowance for Credit Losses – Continued Changes in the allowance for credit losses are as follows: Three Months Ended June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 12,997 $ 13,677 $ 11,468 $ 2,553 $ 558 $ 41,253 Provision for credit losses (460 ) 1,452 905 211 (8 ) 2,100 Gross loan charge-offs (99 ) (43 ) (654 ) - (61 ) (857 ) Recoveries 69 35 41 3 39 187 Net loan (charge-offs) / recoveries (30 ) (8 ) (613 ) 3 (22 ) (670 ) Balance at end of period $ 12,507 $ 15,121 $ 11,760 $ 2,767 $ 528 $ 42,683 Three Months Ended June 30, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 10,172 $ 7,182 $ 7,602 $ 804 $ 163 $ 25,923 Provision for credit losses 276 (114 ) 1,965 (42 ) 65 2,150 Gross loan charge-offs - - (497 ) - (110 ) (607 ) Recoveries 24 319 167 10 53 573 Net loan (charge-offs) / recoveries 24 319 (330 ) 10 (57 ) (34 ) Balance at end of period $ 10,472 $ 7,387 $ 9,237 $ 772 $ 171 $ 28,039 Six Months Ended June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Impact of adopting ASC 326 408 6,403 649 1,517 489 9,466 Provision for credit losses (132 ) 1,752 1,092 107 (69 ) 2,750 Gross loan charge-offs (113 ) (73 ) (1,040 ) - (183 ) (1,409 ) Recoveries 69 49 167 25 140 450 Net loan (charge-offs) / recoveries (44 ) (24 ) (873 ) 25 (43 ) (959 ) Balance at end of period $ 12,507 $ 15,121 $ 11,760 $ 2,767 $ 528 $ 42,683 Six Months Ended June 30, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Balance at beginning of period $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Provision for credit losses 480 19 3,246 30 (75 ) 3,700 Gross loan charge-offs - (5 ) (1,583 ) (19 ) (174 ) (1,781 ) Recoveries 24 351 347 32 121 875 Net loan (charge-offs) / recoveries 24 346 (1,236 ) 13 (53 ) (906 ) Balance at end of period $ 10,472 $ 7,387 $ 9,237 $ 772 $ 171 $ 28,039 |
Summary of Nonaccrual Loans | Non-accrual loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Non-accrual loans, not troubled debt restructured: Real estate term $ 131 $ 2,416 Construction and land development 139 60 Commercial and industrial 545 1,550 Residential and home equity 549 45 Consumer and other 2 8 Total non-accrual loans, not troubled debt restructured 1,366 4,079 Troubled debt restructured loans, non-accrual: Real estate term 2,521 2,393 Construction and land development - - Commercial and industrial 2,499 658 Residential and home equity - - Consumer and other - - Total troubled debt restructured loans, non-accrual 5,020 3,051 Total non-accrual loans $ 6,386 $ 7,130 |
Summary of Troubled Debt Restructured Loans | Troubled debt restructured loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Accruing troubled debt restructured loans $ 5,480 $ 25,346 Non-accrual troubled debt restructured loans 5,020 3,051 Total troubled debt restructured loans $ 10,500 $ 28,397 As of June 30, 2020, TDRs totaling $15.0 million met the criteria to be delisted for reporting purposes. To be delisted as a TDR, the Company follows established regulatory guidelines. Note 3 — Loans and Allowance for Credit Losses – Continued The below tables summarize TDRs by year of occurrence and type of modification: Six Months Ended June 30, 2020 # of $ of # of Non- $ of Non- # of $ of Accruing Accruing accrual accrual Total Total (Dollars in thousands) TDR TDR TDR TDR TDR TDR TDRs that occurred during the period 4 $ 708 - $ - 4 $ 708 2019 3 4,713 9 3,555 12 8,268 2018 - - 3 1,465 3 1,465 2017 - - - - - - Thereafter 1 59 - - 1 59 Total 8 $ 5,480 12 $ 5,020 20 $ 10,500 Six Months Ended June 30, 2020 # of $ of # of Non- $ of Non- # of $ of Accruing Accruing accrual accrual Total Total (Dollars in thousands) TDR TDR TDR TDR TDR TDR Interest rate reduction 1 $ 59 - $ - 1 $ 59 Loan payment deferment 4 852 4 604 8 1,456 Loan re-amortization 2 4,492 3 1,465 5 5,957 Loan extension 1 77 5 2,951 6 3,028 Total 8 $ 5,480 12 $ 5,020 20 $ 10,500 |
Summary of Changes in Troubled Debt Restructured Loans | T he following tables present TDRs that occurred during the periods presented and the TDRs for which the payment default occurred within twelve months of the restructure date. A default on a TDR results in a transfer to nonaccrual status, a charge-off or a combination of both Six Months Ended June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) Number of loans 2 - 2 - - 4 Pre-modification balance $ 583 $ - $ 128 $ - $ - $ 711 Post-modification balance $ 583 $ - $ 128 $ - $ - $ 711 TDRs that subsequently defaulted Number of loans 1 - - - - 1 Recorded balance $ 113 $ - $ - $ - $ - $ 113 Six Months Ended June 30, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) Number of loans 6 - 25 2 - 33 Pre-modification balance $ 5,076 $ - $ 9,848 $ 277 $ - $ 15,201 Post-modification balance $ 5,076 $ - $ 9,848 $ 277 $ - $ 15,201 TDRs that subsequently defaulted Number of loans - - 1 - - 1 Recorded balance $ - $ - $ 18 $ - $ - $ 18 (1) |
Summary of Current and Past Due Loans Held For Investment (Accruing And Non-Accruing) | Note 3 — Loans and Allowance for Credit Losses – Continued Current and past due loans held for investment (accruing and non-accruing) are summarized as follows: June 30, 2020 30-89 Days 90+ Days Non- Total Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Loans Commercial real estate: Real estate term $ 955,545 $ 586 $ - $ 2,652 $ 3,238 $ 958,783 Construction and land development 242,808 265 - 139 404 243,212 Total commercial real estate 1,198,353 851 - 2,791 3,642 1,201,995 Commercial and industrial 306,437 1,356 - 3,044 4,400 310,837 Consumer: Residential and home equity 139,888 737 - 549 1,286 141,174 Consumer and other 11,463 81 2 2 85 11,548 Total consumer 151,351 818 2 551 1,371 152,722 Total gross loans $ 1,656,141 $ 3,025 $ 2 $ 6,386 $ 9,413 $ 1,665,554 December 31, 2019 30-89 Purchased Days 90+ Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 942,370 $ 534 $ - $ 4,809 $ 5,343 $ 360 $ 948,073 Construction and land development 273,268 570 - 60 630 65 273,963 Total commercial real estate 1,215,638 1,104 - 4,869 5,973 425 1,222,036 Commercial and industrial 279,072 403 - 2,208 2,611 3,055 284,738 Consumer: Residential and home equity 162,360 154 - 45 199 - 162,559 Consumer and other 15,727 298 3 8 309 - 16,036 Total consumer 178,087 452 3 53 508 - 178,595 Total gross loans $ 1,672,797 $ 1,959 $ 3 $ 7,130 $ 9,092 $ 3,480 $ 1,685,369 |
Summary of Outstanding Loan Balances Categorized by Credit Quality Indicators | Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: June 30, 2020 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans ACL Commercial real estate: Real estate term $ 908,884 $ 22,746 $ 27,153 $ - $ 958,783 $ 12,507 Construction and land development 228,769 11,151 3,292 - 243,212 15,121 Total commercial real estate 1,137,653 33,897 30,445 - 1,201,995 27,628 Commercial and industrial 293,321 6,588 10,928 - 310,837 11,760 Consumer loans: Residential and home equity 137,524 - 3,650 - 141,174 2,767 Consumer and other 11,545 - 3 - 11,548 528 Total consumer 149,069 - 3,653 - 152,722 3,295 Total $ 1,580,043 $ 40,485 $ 45,026 $ - $ 1,665,554 $ 42,683 December 31, 2019 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans ACL Commercial real estate: Real estate term $ 903,910 $ 23,202 $ 20,961 $ - $ 948,073 $ 12,275 Construction and land development 259,245 10,182 4,536 - 273,963 6,990 Total commercial real estate 1,163,155 33,384 25,497 - 1,222,036 19,265 Commercial and industrial 263,588 6,629 14,521 - 284,738 10,892 Consumer loans: Residential and home equity 159,176 204 3,179 - 162,559 1,118 Consumer and other 16,034 - 2 - 16,036 151 Total consumer 175,210 204 3,181 - 178,595 1,269 Total $ 1,601,953 $ 40,217 $ 43,199 $ - $ 1,685,369 $ 31,426 The following table represents outstanding loan balances by credit quality indicators and vintage year by class of financing receivable as of June 30, 2020: June 30, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Amortized Cost Total Loans held for investment: Commercial real estate: Real estate term Risk rating Pass $ 91,900 $ 143,466 $ 100,325 $ 93,752 $ 56,269 $ 201,275 $ 221,897 $ 908,884 Special mention - - 3,668 2,344 2,957 13,162 615 22,746 Substandard 1,265 1,243 195 377 300 5,296 18,477 27,153 Doubtful - - - - - - - - Total real estate term loans $ 93,165 $ 144,709 $ 104,188 $ 96,473 $ 59,526 $ 219,733 $ 240,989 $ 958,783 Construction and land development Risk rating Pass $ 6,996 $ 8,139 $ 10,714 $ 3,492 $ 6,750 $ 8,941 $ 183,737 $ 228,769 Special mention - - - - - - 11,151 11,151 Substandard - - - - - 60 3,232 3,292 Doubtful - - - - - - - - Total construction and land development loans $ 6,996 $ 8,139 $ 10,714 $ 3,492 $ 6,750 $ 9,001 $ 198,120 $ 243,212 Total commercial real estate loans $ 100,161 $ 152,848 $ 114,902 $ 99,965 $ 66,276 $ 228,734 $ 439,109 $ 1,201,995 Commercial and industrial Risk rating Pass $ 96,206 $ 35,106 $ 39,473 $ 19,902 $ 11,832 $ 45,044 $ 45,758 $ 293,321 Special mention - 197 446 - 1,227 4,522 196 6,588 Substandard - 1,973 732 1,467 437 4,691 1,628 10,928 Doubtful - - - - - - - - Total commercial and industrial loans $ 96,206 $ 37,276 $ 40,651 $ 21,369 $ 13,496 $ 54,257 $ 47,582 $ 310,837 Consumer: Residential real estate Risk rating Pass $ 11,250 $ 28,060 $ 23,884 $ 18,786 $ 12,897 $ 35,303 $ 7,344 $ 137,524 Special mention - - - - - - - - Substandard 183 - 85 242 780 2,360 - 3,650 Doubtful - - - - - - - - Total residential real estate loans $ 11,433 $ 28,060 $ 23,969 $ 19,028 $ 13,677 $ 37,663 $ 7,344 $ 141,174 Consumer and other Risk rating Pass $ 4,652 $ 2,610 $ 1,941 $ 957 $ 364 $ 1,018 $ 3 $ 11,545 Special mention - - - - - - - - Substandard 2 - - - 1 - - 3 Doubtful - - - - - - - - Total consumer and other loans $ 4,654 $ 2,610 $ 1,941 $ 957 $ 365 $ 1,018 $ 3 $ 11,548 Total consumer loans $ 16,087 $ 30,670 $ 25,910 $ 19,985 $ 14,042 $ 38,681 $ 7,347 $ 152,722 Total gross loans $ 212,454 $ 220,794 $ 181,463 $ 141,319 $ 93,814 $ 321,672 $ 494,038 $ 1,665,554 |
Summary of Information on Individually Evaluated Loans | Note 3 — Loans and Allowance for Credit Losses – Continued The ACL and outstanding loan balances reviewed according to the Company’s estimated credit loss methods are summarized as follows: June 30, 2020 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for credit losses: Individually evaluated for impairment $ 892 $ 1,512 $ 4,402 $ 401 $ - $ 7,207 Collectively evaluated for impairment 11,615 13,609 7,358 2,366 528 35,476 Total $ 12,507 $ 15,121 $ 11,760 $ 2,767 $ 528 $ 42,683 Outstanding loan balances: Individually evaluated for impairment $ 2,423 $ 4,806 $ 10,819 $ 504 $ - $ 18,552 Collectively evaluated for impairment 956,360 238,406 300,018 140,670 11,548 1,647,002 Total gross loans $ 958,783 $ 243,212 $ 310,837 $ 141,174 $ 11,548 $ 1,665,554 December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for credit losses: Individually evaluated for impairment $ 825 $ 1,305 $ 4,901 $ 401 $ - $ 7,432 Collectively evaluated for impairment 11,255 5,669 5,991 717 151 23,783 Purchased credit-impaired loans 195 16 - - - 211 Total $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Outstanding loan balances: Individually evaluated for impairment $ 18,305 $ 4,474 $ 14,467 $ 3,701 $ - $ 40,947 Collectively evaluated for impairment 929,408 269,424 267,216 158,858 16,036 1,640,942 Purchased credit-impaired loans 360 65 3,055 - - 3,480 Total gross loans $ 948,073 $ 273,963 $ 284,738 $ 162,559 $ 16,036 $ 1,685,369 Information on individually evaluated loans is summarized as follows: June 30, 2020 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment ACL Commercial real estate: Real estate term $ 2,779 $ - $ 2,423 $ 2,423 $ 892 Construction and land development 4,808 - 4,806 4,806 1,512 Total commercial real estate 7,587 - 7,229 7,229 2,404 Commercial and industrial 12,229 - 10,819 10,819 4,402 Consumer loans: Residential and home equity 504 - 504 504 401 Consumer and other - - - - - Total consumer 504 - 504 504 401 Total $ 20,320 $ - $ 18,552 $ 18,552 $ 7,207 December 31, 2019 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment ACL Commercial real estate: Real estate term $ 18,305 $ 11,684 $ 6,621 $ 18,305 $ 825 Construction and land development 4,474 121 4,353 4,474 1,305 Total commercial real estate 22,779 11,805 10,974 22,779 2,130 Commercial and industrial 14,467 2,591 11,876 14,467 4,901 Consumer loans: Residential and home equity 3,701 3,194 507 3,701 401 Consumer and other - - - - - Total consumer 3,701 3,194 507 3,701 401 Total $ 40,947 $ 17,590 $ 23,357 $ 40,947 $ 7,432 Interest income recognized on the average recorded investment of individually evaluated loans was as follows: Three Months Ended June 30, 2020 June 30, 2019 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 4,835 $ 25 $ 13,858 $ 182 Construction and land development 2,958 47 3,987 71 Total commercial real estate 7,793 72 17,845 253 Commercial and industrial 10,733 96 12,183 170 Consumer loans: Residential and home equity 828 4 3,096 44 Consumer and other - - - - Total consumer 828 4 3,096 44 Total $ 19,354 $ 172 $ 33,124 $ 467 Note 3 — Loans and Allowance for Credit Losses – Continued Six Months Ended June 30, 2020 June 30, 2019 Average Interest Average Interest Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 8,806 $ 155 $ 11,998 $ 305 Construction and land development 2,962 99 2,545 88 Total commercial real estate 11,768 254 14,543 393 Commercial and industrial 11,644 261 10,806 325 Consumer loans: Residential and home equity 1,540 32 3,134 91 Consumer and other - - - - Total consumer 1,540 32 3,134 91 Total $ 24,952 $ 547 $ 28,483 $ 809 |
Summary of Amortized Cost Basis of Collateral Dependent Loans | The following table provides amortized cost basis of collateral dependent loans as of June 30, 2020: June 30, 2020 Real Accounts (Dollars in thousands) Estate Receivable Equipment Livestock Auto Total Commercial real estate: Real estate term $ 891 $ - $ - $ - $ - $ 891 Construction and land development 4,806 - - - - 4,806 Total commercial real estate 5,697 - - - - 5,697 Commercial and industrial - 3,794 3,415 70 148 7,427 Consumer: Residential and home equity 399 - - - - 399 Consumer and other - - - - - - Total consumer 399 - - - - 399 Total collateral dependent loans $ 6,096 $ 3,794 $ 3,415 $ 70 $ 148 $ 13,523 |
Summary of Changes In Accretable Yield for Non-PCD Loans | The following table presents the changes in the accretable yield for non-PCD loans for the six months ended June 30, 2020, and 2019: Six Months Ended June 30, (Dollars in thousands) 2020 2019 Balance, beginning of period $ 4,247 $ 5,884 Accretion to interest income (1,192 ) (874 ) Reclassification from non-accretable difference 402 96 Balance, end of period $ 3,457 $ 5,106 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Contractual Amounts of Off-balance Sheet Financial Instruments | Contractual amounts of off-balance sheet financial instruments were as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Commitments to extend credit, including unsecured commitments of $12,822 and $32,995 as of June 30, 2020 and December 31, 2019, respectively $ 659,794 $ 632,577 Stand-by letters of credit and bond commitments, including unsecured commitments of $403 and $555 as of June 30, 2020 and December 31, 2019, respectively 23,493 23,860 Unused credit card lines, all unsecured 26,860 26,121 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Company’s financial instruments as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated (Dollars in thousands) Level Value Fair Value Value Fair Value Financial Assets: Cash and cash equivalents 1 $ 323,837 $ 323,837 $ 211,981 $ 211,981 Investment securities available for sale 2 964,959 964,959 395,410 395,410 Investment securities available for sale 3 8,498 8,498 10,585 10,585 Non-marketable securities 2 2,890 2,890 2,623 2,623 Loans held for sale 2 29,264 29,264 18,669 18,669 Loans held for investment 3 1,616,335 1,583,362 1,649,492 1,639,480 Financial Liabilities: Total deposits 2 $ 2,613,339 $ 2,465,845 $ 2,056,367 $ 1,851,954 |
Summary of Asset Measured on Recurring and Non-recurring Basic at Fair Value | Assets measured on a recurring and non-recurring basis are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total As of June 30, 2020 Fair valued on a recurring basis: Investment securities available for sale $ - $ 964,959 $ 8,498 $ 973,457 Fair valued on a non-recurring basis: Individually evaluated loans - - 945 945 As of December 31, 2019 Fair valued on a recurring basis: Investment securities available for sale $ - $ 395,410 $ 10,585 $ 405,995 Fair valued on a non-recurring basis: Individually evaluated loans - - 17,497 17,497 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Actual and Required Capital Amounts and Ratios | The Company’s actual and required capital amounts and ratios are as follows: June 30, 2020 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 310,678 17.94 % $ 77,941 4.50 % $ 112,581 6.50 % Tier 1 Capital to Risk-Weighted Assets 310,678 17.94 % 103,921 6.00 % 138,561 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 332,608 19.20 % 138,561 8.00 % 173,202 10.00 % Tier 1 Leverage 310,678 11.68 % 106,380 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 305,829 17.66 % $ 77,922 4.50 % $ 112,554 6.50 % Tier 1 Capital to Risk-Weighted Assets 305,829 17.66 % 103,896 6.00 % 138,528 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 327,759 18.93 % 138,528 8.00 % 173,160 10.00 % Tier 1 Leverage 305,829 11.52 % 106,207 4.00 % 132,759 5.00 % December 31, 2019 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 302,291 17.18 % $ 79,193 4.50 % $ 114,390 6.50 % Tier 1 Capital to Risk-Weighted Assets 302,291 17.18 % 105,590 6.00 % 140,787 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 324,415 18.43 % 140,787 8.00 % 175,984 10.00 % Tier 1 Leverage 302,291 12.67 % 95,431 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 297,108 16.88 % $ 79,191 4.50 % $ 114,387 6.50 % Tier 1 Capital to Risk-Weighted Assets 297,108 16.88 % 105,588 6.00 % 140,784 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 319,233 18.14 % 140,784 8.00 % 175,981 10.00 % Tier 1 Leverage 297,108 12.45 % 95,429 4.00 % 119,286 5.00 % |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) | Jan. 01, 2020USD ($) | Jun. 30, 2020USD ($)BranchLoanSegment | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Accrued interest reversed against interest income | $ 0 | |||
Threshold period past due for loans placed on nonaccrual status | 90 days | |||
Number of loan segments | LoanSegment | 17 | |||
Public float | $ 466,000,000 | |||
Annual revenues | $ 130,000,000 | |||
ASU 2016-13 | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Increase in amortized cost basis for PCD loans | $ 1,500,000 | |||
Increase in allowance for credit losses for Non-PCD loans | 2,600,000 | |||
Increase in allowance for credit losses to reflect change in accounting methodology | $ 5,400,000 | |||
Restricted Stock Units | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Vesting period, description | RSU awards generally vest in thirds over three years from date of grant. | |||
Mortgage Loans | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Threshold period past due for loans placed on nonaccrual status | 180 days | |||
Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Debt securities, held to maturity, threshold period past due for loans placed on non-accrual status | 90 days | |||
Minimum | Restricted Stock Units | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting period | 1 year | |||
Maximum | Restricted Stock Units | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting period | 3 years | |||
Maximum | Consumer And Credit Card Loans | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Threshold period past due for loans placed on nonaccrual status | 120 days | |||
People's Intermountain Bank | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Number of retail branches | Branch | 26 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Building and Building Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Building and Building Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 40 years |
Leasehold Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Furniture and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Computers Software and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computers Software and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator | ||||||
Net income | $ 10,338 | $ 10,773 | $ 10,989 | $ 10,505 | $ 21,111 | $ 21,494 |
Denominator | ||||||
Weighted-average number of common shares outstanding | 18,789,561 | 18,805,760 | 18,837,209 | 18,793,553 | ||
Incremental shares assumed for stock options and RSUs | 142,950 | 201,537 | 148,110 | 204,927 | ||
Weighted-average number of dilutive shares outstanding | 18,932,511 | 19,007,297 | 18,985,319 | 18,998,480 | ||
Basic earnings per common share | $ 0.55 | $ 0.58 | $ 1.12 | $ 1.14 | ||
Diluted earnings per common share | $ 0.55 | $ 0.58 | $ 1.11 | $ 1.13 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Impact of Adoption of ASC 326 (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||||||
Allowance for credit losses | $ 42,683 | $ 31,426 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Shareholders’ equity | $ 350,130 | $ 340,137 | $ 332,362 | $ 312,799 | $ 301,327 | $ 290,162 | |
ASU 2016-13 | |||||||
ASSETS | |||||||
Allowance for credit losses | $ 40,892 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Reserve for off-balance sheet obligations | 1,669 | ||||||
Shareholders’ equity | 325,682 | ||||||
ASU 2016-13 | Reported Pre Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 31,426 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Reserve for off-balance sheet obligations | 880 | ||||||
Shareholders’ equity | 332,362 | ||||||
ASU 2016-13 | Impact of ASC 326 Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 9,466 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Reserve for off-balance sheet obligations | 789 | ||||||
Shareholders’ equity | (6,680) | ||||||
Commercial Real Estate | ASU 2016-13 | |||||||
ASSETS | |||||||
Allowance for credit losses | 26,076 | ||||||
Commercial Real Estate | ASU 2016-13 | Real Estate Term | |||||||
ASSETS | |||||||
Allowance for credit losses | 12,683 | ||||||
Commercial Real Estate | ASU 2016-13 | Construction and Land Development | |||||||
ASSETS | |||||||
Allowance for credit losses | 13,393 | ||||||
Commercial Real Estate | ASU 2016-13 | Reported Pre Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 19,265 | ||||||
Commercial Real Estate | ASU 2016-13 | Reported Pre Adoption | Real Estate Term | |||||||
ASSETS | |||||||
Allowance for credit losses | 12,275 | ||||||
Commercial Real Estate | ASU 2016-13 | Reported Pre Adoption | Construction and Land Development | |||||||
ASSETS | |||||||
Allowance for credit losses | 6,990 | ||||||
Commercial Real Estate | ASU 2016-13 | Impact of ASC 326 Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 6,811 | ||||||
Commercial Real Estate | ASU 2016-13 | Impact of ASC 326 Adoption | Real Estate Term | |||||||
ASSETS | |||||||
Allowance for credit losses | 408 | ||||||
Commercial Real Estate | ASU 2016-13 | Impact of ASC 326 Adoption | Construction and Land Development | |||||||
ASSETS | |||||||
Allowance for credit losses | 6,403 | ||||||
Commercial and Industrial | ASU 2016-13 | |||||||
ASSETS | |||||||
Allowance for credit losses | 11,541 | ||||||
Commercial and Industrial | ASU 2016-13 | Reported Pre Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 10,892 | ||||||
Commercial and Industrial | ASU 2016-13 | Impact of ASC 326 Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 649 | ||||||
Consumer | ASU 2016-13 | |||||||
ASSETS | |||||||
Allowance for credit losses | 3,275 | ||||||
Consumer | ASU 2016-13 | Residential and Home Equity | |||||||
ASSETS | |||||||
Allowance for credit losses | 2,635 | ||||||
Consumer | ASU 2016-13 | Consumer and Other | |||||||
ASSETS | |||||||
Allowance for credit losses | 640 | ||||||
Consumer | ASU 2016-13 | Reported Pre Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 1,269 | ||||||
Consumer | ASU 2016-13 | Reported Pre Adoption | Residential and Home Equity | |||||||
ASSETS | |||||||
Allowance for credit losses | 1,118 | ||||||
Consumer | ASU 2016-13 | Reported Pre Adoption | Consumer and Other | |||||||
ASSETS | |||||||
Allowance for credit losses | 151 | ||||||
Consumer | ASU 2016-13 | Impact of ASC 326 Adoption | |||||||
ASSETS | |||||||
Allowance for credit losses | 2,006 | ||||||
Consumer | ASU 2016-13 | Impact of ASC 326 Adoption | Residential and Home Equity | |||||||
ASSETS | |||||||
Allowance for credit losses | 1,517 | ||||||
Consumer | ASU 2016-13 | Impact of ASC 326 Adoption | Consumer and Other | |||||||
ASSETS | |||||||
Allowance for credit losses | $ 489 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | $ 958,538 | $ 404,153 |
Available for Sale, Gross Unrealized Gains | 15,909 | 3,093 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (694) | (482) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (296) | (769) |
Available for Sale, Fair Value | 973,457 | 405,995 |
U.S. Government Sponsored Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 13,480 | 20,957 |
Available for Sale, Gross Unrealized Gains | 391 | 235 |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (2) | |
Available for Sale, Fair Value | 13,871 | 21,190 |
Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 894,335 | 321,944 |
Available for Sale, Gross Unrealized Gains | 14,307 | 2,188 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (694) | (481) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (37) | (543) |
Available for Sale, Fair Value | 907,911 | 323,108 |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 45,723 | 56,252 |
Available for Sale, Gross Unrealized Gains | 1,210 | 670 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (1) | |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (9) | |
Available for Sale, Fair Value | 46,933 | 56,912 |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 5,000 | 5,000 |
Available for Sale, Gross Unrealized Gains | 1 | |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (259) | (215) |
Available for Sale, Fair Value | $ 4,742 | $ 4,785 |
Investment Securities - Summa_2
Investment Securities - Summary of Gross Unrealized Losses and Fair Value for Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | $ 95,605 | $ 118,303 |
Available for Sale, 12 Months or More, Fair Value | 5,772 | 82,504 |
Available for Sale, Fair Value, Total | 101,377 | 200,807 |
Available for Sale, Less Than 12 Months, Unrealized Losses | (694) | (482) |
Available for Sale, 12 Months or More, Unrealized Losses | (296) | (769) |
Available for Sale, Unrealized Losses, Total | (990) | (1,251) |
Municipal Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | 3,060 | |
Available for Sale, 12 Months or More, Fair Value | 1,338 | |
Available for Sale, Fair Value, Total | 4,398 | |
Available for Sale, Less Than 12 Months, Unrealized Losses | (1) | |
Available for Sale, 12 Months or More, Unrealized Losses | (9) | |
Available for Sale, Unrealized Losses, Total | (10) | |
Corporate Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, 12 Months or More, Fair Value | 2,741 | 4,785 |
Available for Sale, Fair Value, Total | 2,741 | 4,785 |
Available for Sale, 12 Months or More, Unrealized Losses | (259) | (215) |
Available for Sale, Unrealized Losses, Total | (259) | (215) |
U.S. Government Sponsored Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, 12 Months or More, Fair Value | 5,998 | |
Available for Sale, Fair Value, Total | 5,998 | |
Available for Sale, 12 Months or More, Unrealized Losses | (2) | |
Available for Sale, Unrealized Losses, Total | (2) | |
Mortgage-backed Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | 95,605 | 115,243 |
Available for Sale, 12 Months or More, Fair Value | 3,031 | 70,383 |
Available for Sale, Fair Value, Total | 98,636 | 185,626 |
Available for Sale, Less Than 12 Months, Unrealized Losses | (694) | (481) |
Available for Sale, 12 Months or More, Unrealized Losses | (37) | (543) |
Available for Sale, Unrealized Losses, Total | $ (731) | $ (1,024) |
Investment Securities - Summa_3
Investment Securities - Summary of Amortized Cost of Debt Securities Available for Sale Aggregated by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | $ 958,538 | $ 404,153 |
Available for Sale, Gross Unrealized Gains | 15,909 | 3,093 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (694) | (482) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (296) | (769) |
Available for Sale, Fair Value | 973,457 | 405,995 |
U.S. Government Sponsored Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 13,480 | 20,957 |
Available for Sale, Gross Unrealized Gains | 391 | 235 |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (2) | |
Available for Sale, Fair Value | 13,871 | 21,190 |
U.S. Government Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 907,815 | 342,901 |
Available for Sale, Gross Unrealized Gains | 14,698 | 2,423 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (694) | (481) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (37) | (545) |
Available for Sale, Fair Value | 921,782 | 344,298 |
Investment Grade Rating | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 42,486 | 50,793 |
Available for Sale, Gross Unrealized Gains | 950 | 544 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (1) | |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (259) | (224) |
Available for Sale, Fair Value | 43,177 | 51,112 |
Unrated Investment Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 8,237 | 10,459 |
Available for Sale, Gross Unrealized Gains | 261 | 126 |
Available for Sale, Fair Value | $ 8,498 | $ 10,585 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities that are Available for Sale and Held to Maturity by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available For Sale Securities by Maturity, Amortized Cost | ||
Available for Sale, Securities maturing in one year or less, Amortized cost | $ 13,658 | |
Available for Sale, Securities maturing in After one year through five years, Amortized cost | 37,643 | |
Available for Sale, Securities maturing in After five years through ten years, Amortized cost | 40,723 | |
Available for Sale, Securities maturing in After ten years, Amortized cost | 866,514 | |
Available for Sale, Amortized Cost | 958,538 | $ 404,153 |
Available For Sale Securities by Maturity, Fair Value | ||
Available for Sale, Securities maturing in one year or less, Fair Value | 13,720 | |
Available for Sale, Securities maturing in After one year through five years, Fair Value | 38,598 | |
Available for Sale, Securities maturing in After five years through ten years, Fair Value | 41,720 | |
Available for Sale, Securities maturing in After ten years, Fair Value | 879,419 | |
Available for Sale, Fair Value | $ 973,457 | $ 405,995 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($)Securities | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)Securities | |
Investments Debt And Equity Securities [Abstract] | |||
Number of available for sale investment securities with fair value less than amortized cost | Securities | 23 | 146 | |
Number of maturity securities with fair values less than amortized cost | Securities | 0 | 0 | |
Sales of available for sale securities | $ | $ 48,200,000 | $ 0 | |
Available for sale securities in a nonaccrual status | Securities | 0 | 0 | |
Available-for-sale, gain on sale of investment securities | $ | $ 1,400,000 | ||
Held to maturity to available for sale transfer, number of securities | Securities | 140 | ||
Held to maturity to available for sale transfer amount | $ | $ 64,600,000 | ||
Held to maturity to available for sale transfer, unrecognized loss | $ | $ 19,000 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | $ 1,665,554 | $ 1,685,369 | ||||
Net deferred loan fees | (6,536) | (4,451) | ||||
Total loans held for investment | 1,659,018 | 1,680,918 | ||||
Allowance for credit losses | (42,683) | $ (41,253) | (31,426) | $ (28,039) | $ (25,923) | $ (25,245) |
Total loans held for investment, net | 1,616,335 | 1,649,492 | ||||
Real Estate Term | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 958,783 | 948,073 | ||||
Allowance for credit losses | (12,507) | (12,997) | (12,275) | (10,472) | (10,172) | (9,968) |
Construction and Land Development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 243,212 | 273,963 | ||||
Allowance for credit losses | (15,121) | (13,677) | (6,990) | (7,387) | (7,182) | (7,022) |
Residential and Home Equity | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 141,174 | 162,559 | ||||
Allowance for credit losses | (2,767) | (2,553) | (1,118) | (772) | (804) | (729) |
Consumer and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 11,548 | 16,036 | ||||
Allowance for credit losses | (528) | (558) | (151) | (171) | (163) | (299) |
Commercial Real Estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 1,201,995 | 1,222,036 | ||||
Allowance for credit losses | (27,628) | (19,265) | ||||
Commercial Real Estate | Real Estate Term | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 958,783 | 948,073 | ||||
Allowance for credit losses | (12,507) | (12,275) | ||||
Commercial Real Estate | Construction and Land Development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 243,212 | 273,963 | ||||
Allowance for credit losses | (15,121) | (6,990) | ||||
Commercial and Industrial | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 310,837 | 284,738 | ||||
Allowance for credit losses | (11,760) | $ (11,468) | (10,892) | $ (9,237) | $ (7,602) | $ (7,227) |
Consumer | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 152,722 | 178,595 | ||||
Allowance for credit losses | (3,295) | (1,269) | ||||
Consumer | Residential and Home Equity | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 141,174 | 162,559 | ||||
Allowance for credit losses | (2,767) | (1,118) | ||||
Consumer | Consumer and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 11,548 | 16,036 | ||||
Allowance for credit losses | $ (528) | $ (151) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) | Jan. 01, 2020USD ($) | Jun. 30, 2020USD ($)LoanSegmentLoan | Dec. 31, 2019USD ($) |
Financing Receivable Impaired [Line Items] | |||
Total gross loans | $ 1,665,554,000 | $ 1,685,369,000 | |
Number of loan segments | LoanSegment | 17 | ||
Non-accrual loans | $ 6,386,000 | 7,130,000 | |
Total trouble debt restructurings met criteria to be delisted for reporting purposes | 10,500,000 | 28,397,000 | |
Carrying balance/ outstanding balance | 2,500,000 | ||
Amortized cost basis for PCD loans increased | $ 1,500,000 | ||
Available lines of credit for loans and credit cards to affiliates | 3,900,000 | 278,000 | |
Deposits from affiliates | 8,000,000 | 4,500,000 | |
Affiliates | |||
Financing Receivable Impaired [Line Items] | |||
Outstanding loans with affiliates | 7,900,000 | 5,400,000 | |
PCI Loans | |||
Financing Receivable Impaired [Line Items] | |||
Outstanding contractual unpaid principal balance, excluding acquisition accounting adjustments | 6,200,000 | ||
Non-accretable difference between the contractually required payments and cash flows expected to be collected | 2,800,000 | ||
Carrying balance/ outstanding balance | 3,500,000 | ||
Non-performing Assets | U.S. Government Guarantees | |||
Financing Receivable Impaired [Line Items] | |||
Non-accrual loans | 1,800,000 | 859,000 | |
Troubled Debt Restructured Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Total trouble debt restructurings met criteria to be delisted for reporting purposes | 15,000,000 | ||
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Total gross loans | 310,837,000 | 284,738,000 | |
Non-accrual loans | 3,044,000 | $ 2,208,000 | |
Commercial and Industrial | SBA PPP Loans | |||
Financing Receivable Impaired [Line Items] | |||
Total gross loans | $ 84,600,000 | ||
Number of loan segments | Loan | 333 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | $ 41,253 | $ 25,923 | $ 31,426 | $ 25,245 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||
Provision for credit losses | 2,100 | 2,150 | $ 2,750 | 3,700 |
Gross loan charge-offs | (857) | (607) | (1,409) | (1,781) |
Recoveries | 187 | 573 | 450 | 875 |
Net loan (charge-offs) / recoveries | (670) | (34) | (959) | (906) |
Balance at end of period | 42,683 | 28,039 | 42,683 | 28,039 |
Impact of ASC 326 Adoption | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 9,466 | |||
Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 12,997 | 10,172 | 12,275 | 9,968 |
Provision for credit losses | (460) | 276 | (132) | 480 |
Gross loan charge-offs | (99) | (113) | ||
Recoveries | 69 | 24 | 69 | 24 |
Net loan (charge-offs) / recoveries | (30) | 24 | (44) | 24 |
Balance at end of period | 12,507 | 10,472 | 12,507 | 10,472 |
Real Estate Term | Impact of ASC 326 Adoption | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 408 | |||
Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 13,677 | 7,182 | 6,990 | 7,022 |
Provision for credit losses | 1,452 | (114) | 1,752 | 19 |
Gross loan charge-offs | (43) | (73) | (5) | |
Recoveries | 35 | 319 | 49 | 351 |
Net loan (charge-offs) / recoveries | (8) | 319 | (24) | 346 |
Balance at end of period | 15,121 | 7,387 | 15,121 | 7,387 |
Construction and Land Development | Impact of ASC 326 Adoption | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 6,403 | |||
Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 2,553 | 804 | 1,118 | 729 |
Provision for credit losses | 211 | (42) | 107 | 30 |
Gross loan charge-offs | (19) | |||
Recoveries | 3 | 10 | 25 | 32 |
Net loan (charge-offs) / recoveries | 3 | 10 | 25 | 13 |
Balance at end of period | 2,767 | 772 | 2,767 | 772 |
Residential and Home Equity | Impact of ASC 326 Adoption | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 1,517 | |||
Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 558 | 163 | 151 | 299 |
Provision for credit losses | (8) | 65 | (69) | (75) |
Gross loan charge-offs | (61) | (110) | (183) | (174) |
Recoveries | 39 | 53 | 140 | 121 |
Net loan (charge-offs) / recoveries | (22) | (57) | (43) | (53) |
Balance at end of period | 528 | 171 | 528 | 171 |
Consumer and Other | Impact of ASC 326 Adoption | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 489 | |||
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | 11,468 | 7,602 | 10,892 | 7,227 |
Provision for credit losses | 905 | 1,965 | 1,092 | 3,246 |
Gross loan charge-offs | (654) | (497) | (1,040) | (1,583) |
Recoveries | 41 | 167 | 167 | 347 |
Net loan (charge-offs) / recoveries | (613) | (330) | (873) | (1,236) |
Balance at end of period | $ 11,760 | $ 9,237 | 11,760 | $ 9,237 |
Commercial and Industrial | Impact of ASC 326 Adoption | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Balance at beginning of period | $ 649 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Summary of Non Accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Non-accrual loans, not troubled debt restructured | $ 1,366 | $ 4,079 |
Troubled debt restructured loans, non-accrual | 5,020 | 3,051 |
Total non-accrual loans | 6,386 | 7,130 |
Real Estate Term | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 131 | 2,416 |
Troubled debt restructured loans, non-accrual | 2,521 | 2,393 |
Construction and Land Development | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 139 | 60 |
Commercial and Industrial Loans | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 545 | 1,550 |
Troubled debt restructured loans, non-accrual | 2,499 | 658 |
Residential and Home Equity | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 549 | 45 |
Consumer and Other | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Non-accrual loans, not troubled debt restructured | $ 2 | $ 8 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Summary of Troubled Debt Restructured Loans (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 5,480 | $ 25,346 |
Non-accrual troubled debt restructured loans | $ | 5,020 | 3,051 |
Total troubled debt restructured loans | $ | $ 10,500 | $ 28,397 |
# of Accruing TDR | Loan | 8 | |
# of Non-accrual TDR | Loan | 12 | |
# of Total TDR | Loan | 20 | |
2020 | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 708 | |
Total troubled debt restructured loans | $ | $ 708 | |
# of Accruing TDR | Loan | 4 | |
# of Total TDR | Loan | 4 | |
2019 | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 4,713 | |
Non-accrual troubled debt restructured loans | $ | 3,555 | |
Total troubled debt restructured loans | $ | $ 8,268 | |
# of Accruing TDR | Loan | 3 | |
# of Non-accrual TDR | Loan | 9 | |
# of Total TDR | Loan | 12 | |
2018 | ||
Financing Receivable Modifications [Line Items] | ||
Non-accrual troubled debt restructured loans | $ | $ 1,465 | |
Total troubled debt restructured loans | $ | $ 1,465 | |
# of Non-accrual TDR | Loan | 3 | |
# of Total TDR | Loan | 3 | |
Thereafter | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 59 | |
Total troubled debt restructured loans | $ | $ 59 | |
# of Accruing TDR | Loan | 1 | |
# of Total TDR | Loan | 1 | |
Interest Rate Reduction | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 59 | |
Total troubled debt restructured loans | $ | $ 59 | |
# of Accruing TDR | Loan | 1 | |
# of Total TDR | Loan | 1 | |
Loan Payment Deferment | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 852 | |
Non-accrual troubled debt restructured loans | $ | 604 | |
Total troubled debt restructured loans | $ | $ 1,456 | |
# of Accruing TDR | Loan | 4 | |
# of Non-accrual TDR | Loan | 4 | |
# of Total TDR | Loan | 8 | |
Loan Re-amortization | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 4,492 | |
Non-accrual troubled debt restructured loans | $ | 1,465 | |
Total troubled debt restructured loans | $ | $ 5,957 | |
# of Accruing TDR | Loan | 2 | |
# of Non-accrual TDR | Loan | 3 | |
# of Total TDR | Loan | 5 | |
Loan Extension | ||
Financing Receivable Modifications [Line Items] | ||
Accruing troubled debt restructured loans | $ | $ 77 | |
Non-accrual troubled debt restructured loans | $ | 2,951 | |
Total troubled debt restructured loans | $ | $ 3,028 | |
# of Accruing TDR | Loan | 1 | |
# of Non-accrual TDR | Loan | 5 | |
# of Total TDR | Loan | 6 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Summary of Changes in Troubled Debt Restructured Loans (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)Loan | Jun. 30, 2019USD ($)Loan | |
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 4 | 33 |
Pre-modification balance | $ 711 | $ 15,201 |
Post-modification balance | $ 711 | $ 15,201 |
Number of loans, subsequently defaulted | Loan | 1 | 1 |
Recorded balance, subsequently defaulted | $ 113 | $ 18 |
Real Estate Term | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 2 | 6 |
Pre-modification balance | $ 583 | $ 5,076 |
Post-modification balance | $ 583 | $ 5,076 |
Number of loans, subsequently defaulted | Loan | 1 | |
Recorded balance, subsequently defaulted | $ 113 | |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 2 | 25 |
Pre-modification balance | $ 128 | $ 9,848 |
Post-modification balance | $ 128 | $ 9,848 |
Number of loans, subsequently defaulted | Loan | 1 | |
Recorded balance, subsequently defaulted | $ 18 | |
Residential and Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 2 | |
Pre-modification balance | $ 277 | |
Post-modification balance | $ 277 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Summary of Current and Past Due Loans Held For Investment (Accruing And Non-Accruing) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | $ 1,656,141 | $ 1,672,797 |
30-89 Days Past Due | 3,025 | 1,959 |
90+ Days Past Due | 2 | 3 |
Non-accrual | 6,386 | 7,130 |
Total Past-Due | 9,413 | 9,092 |
Purchased Credit Impaired | 3,480 | |
Total Loans | 1,665,554 | 1,685,369 |
Real Estate Term | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Purchased Credit Impaired | 360 | |
Total Loans | 958,783 | 948,073 |
Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Purchased Credit Impaired | 65 | |
Total Loans | 243,212 | 273,963 |
Residential and Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 141,174 | 162,559 |
Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Loans | 11,548 | 16,036 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 1,198,353 | 1,215,638 |
30-89 Days Past Due | 851 | 1,104 |
Non-accrual | 2,791 | 4,869 |
Total Past-Due | 3,642 | 5,973 |
Purchased Credit Impaired | 425 | |
Total Loans | 1,201,995 | 1,222,036 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 955,545 | 942,370 |
30-89 Days Past Due | 586 | 534 |
Non-accrual | 2,652 | 4,809 |
Total Past-Due | 3,238 | 5,343 |
Purchased Credit Impaired | 360 | |
Total Loans | 958,783 | 948,073 |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 242,808 | 273,268 |
30-89 Days Past Due | 265 | 570 |
Non-accrual | 139 | 60 |
Total Past-Due | 404 | 630 |
Purchased Credit Impaired | 65 | |
Total Loans | 243,212 | 273,963 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 306,437 | 279,072 |
30-89 Days Past Due | 1,356 | 403 |
Non-accrual | 3,044 | 2,208 |
Total Past-Due | 4,400 | 2,611 |
Purchased Credit Impaired | 3,055 | |
Total Loans | 310,837 | 284,738 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 151,351 | 178,087 |
30-89 Days Past Due | 818 | 452 |
90+ Days Past Due | 2 | 3 |
Non-accrual | 551 | 53 |
Total Past-Due | 1,371 | 508 |
Total Loans | 152,722 | 178,595 |
Consumer | Residential and Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 139,888 | 162,360 |
30-89 Days Past Due | 737 | 154 |
Non-accrual | 549 | 45 |
Total Past-Due | 1,286 | 199 |
Total Loans | 141,174 | 162,559 |
Consumer | Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 11,463 | 15,727 |
30-89 Days Past Due | 81 | 298 |
90+ Days Past Due | 2 | 3 |
Non-accrual | 2 | 8 |
Total Past-Due | 85 | 309 |
Total Loans | $ 11,548 | $ 16,036 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Summary of Outstanding Loan Balances (Accruing and Non - Accruing) Categorized by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | $ 1,665,554 | $ 1,685,369 | ||||
Total Allowance | 42,683 | $ 41,253 | 31,426 | $ 28,039 | $ 25,923 | $ 25,245 |
Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 958,783 | 948,073 | ||||
Total Allowance | 12,507 | 12,997 | 12,275 | 10,472 | 10,172 | 9,968 |
Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 243,212 | 273,963 | ||||
Total Allowance | 15,121 | 13,677 | 6,990 | 7,387 | 7,182 | 7,022 |
Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 141,174 | 162,559 | ||||
Total Allowance | 2,767 | 2,553 | 1,118 | 772 | 804 | 729 |
Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 11,548 | 16,036 | ||||
Total Allowance | 528 | 558 | 151 | 171 | 163 | 299 |
Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,201,995 | 1,222,036 | ||||
Total Allowance | 27,628 | 19,265 | ||||
Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 958,783 | 948,073 | ||||
Total Allowance | 12,507 | 12,275 | ||||
Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 243,212 | 273,963 | ||||
Total Allowance | 15,121 | 6,990 | ||||
Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 310,837 | 284,738 | ||||
Total Allowance | 11,760 | $ 11,468 | 10,892 | $ 9,237 | $ 7,602 | $ 7,227 |
Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 152,722 | 178,595 | ||||
Total Allowance | 3,295 | 1,269 | ||||
Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 141,174 | 162,559 | ||||
Total Allowance | 2,767 | 1,118 | ||||
Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 11,548 | 16,036 | ||||
Total Allowance | 528 | 151 | ||||
Pass | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,580,043 | 1,601,953 | ||||
Pass | Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 1,137,653 | 1,163,155 | ||||
Pass | Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 908,884 | 903,910 | ||||
Pass | Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 228,769 | 259,245 | ||||
Pass | Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 293,321 | 263,588 | ||||
Pass | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 149,069 | 175,210 | ||||
Pass | Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 137,524 | 159,176 | ||||
Pass | Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 11,545 | 16,034 | ||||
Special Mention | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 40,485 | 40,217 | ||||
Special Mention | Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 33,897 | 33,384 | ||||
Special Mention | Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 22,746 | 23,202 | ||||
Special Mention | Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 11,151 | 10,182 | ||||
Special Mention | Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 6,588 | 6,629 | ||||
Special Mention | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 204 | |||||
Special Mention | Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 204 | |||||
Substandard | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 45,026 | 43,199 | ||||
Substandard | Commercial Real Estate | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 30,445 | 25,497 | ||||
Substandard | Commercial Real Estate | Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 27,153 | 20,961 | ||||
Substandard | Commercial Real Estate | Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 3,292 | 4,536 | ||||
Substandard | Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 10,928 | 14,521 | ||||
Substandard | Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 3,653 | 3,181 | ||||
Substandard | Consumer | Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | 3,650 | 3,179 | ||||
Substandard | Consumer | Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Total Loans | $ 3 | $ 2 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Summary of Outstanding Loan Balances By Credit Quality Indicators And Vintage Year By Class Of Financing Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | $ 212,454 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 220,794 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 181,463 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 141,319 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 93,814 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 321,672 | |
Revolving Loans Amortized Cost | 494,038 | |
Total Loans | 1,665,554 | $ 1,685,369 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 1,580,043 | 1,601,953 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 40,485 | 40,217 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 45,026 | 43,199 |
Real Estate Term | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 958,783 | 948,073 |
Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 243,212 | 273,963 |
Consumer and Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 11,548 | 16,036 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 100,161 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 152,848 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 114,902 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 99,965 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 66,276 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 228,734 | |
Revolving Loans Amortized Cost | 439,109 | |
Total Loans | 1,201,995 | 1,222,036 |
Commercial Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 1,137,653 | 1,163,155 |
Commercial Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 33,897 | 33,384 |
Commercial Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 30,445 | 25,497 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 93,165 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 144,709 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 104,188 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 96,473 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 59,526 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 219,733 | |
Revolving Loans Amortized Cost | 240,989 | |
Total Loans | 958,783 | 948,073 |
Commercial Real Estate | Real Estate Term | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 91,900 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 143,466 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 100,325 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 93,752 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 56,269 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 201,275 | |
Revolving Loans Amortized Cost | 221,897 | |
Total Loans | 908,884 | 903,910 |
Commercial Real Estate | Real Estate Term | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2018 | 3,668 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 2,344 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 2,957 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 13,162 | |
Revolving Loans Amortized Cost | 615 | |
Total Loans | 22,746 | 23,202 |
Commercial Real Estate | Real Estate Term | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,265 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,243 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 195 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 377 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 300 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 5,296 | |
Revolving Loans Amortized Cost | 18,477 | |
Total Loans | 27,153 | 20,961 |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 6,996 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 8,139 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 10,714 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 3,492 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 6,750 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 9,001 | |
Revolving Loans Amortized Cost | 198,120 | |
Total Loans | 243,212 | 273,963 |
Commercial Real Estate | Construction and Land Development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 6,996 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 8,139 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 10,714 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 3,492 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 6,750 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 8,941 | |
Revolving Loans Amortized Cost | 183,737 | |
Total Loans | 228,769 | 259,245 |
Commercial Real Estate | Construction and Land Development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Revolving Loans Amortized Cost | 11,151 | |
Total Loans | 11,151 | 10,182 |
Commercial Real Estate | Construction and Land Development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 60 | |
Revolving Loans Amortized Cost | 3,232 | |
Total Loans | 3,292 | 4,536 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 96,206 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 37,276 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 40,651 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 21,369 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 13,496 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 54,257 | |
Revolving Loans Amortized Cost | 47,582 | |
Total Loans | 310,837 | 284,738 |
Commercial and Industrial | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 96,206 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 35,106 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 39,473 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 19,902 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 11,832 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 45,044 | |
Revolving Loans Amortized Cost | 45,758 | |
Total Loans | 293,321 | 263,588 |
Commercial and Industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2019 | 197 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 446 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 1,227 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 4,522 | |
Revolving Loans Amortized Cost | 196 | |
Total Loans | 6,588 | 6,629 |
Commercial and Industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,973 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 732 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 1,467 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 437 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 4,691 | |
Revolving Loans Amortized Cost | 1,628 | |
Total Loans | 10,928 | 14,521 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 16,087 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 30,670 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 25,910 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 19,985 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 14,042 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 38,681 | |
Revolving Loans Amortized Cost | 7,347 | |
Total Loans | 152,722 | 178,595 |
Consumer | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 149,069 | 175,210 |
Consumer | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 204 | |
Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total Loans | 3,653 | 3,181 |
Consumer | Residential Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 11,433 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 28,060 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 23,969 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 19,028 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 13,677 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 37,663 | |
Revolving Loans Amortized Cost | 7,344 | |
Total Loans | 141,174 | |
Consumer | Residential Real Estate [Member] | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 11,250 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 28,060 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 23,884 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 18,786 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 12,897 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 35,303 | |
Revolving Loans Amortized Cost | 7,344 | |
Total Loans | 137,524 | |
Consumer | Residential Real Estate [Member] | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 183 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 85 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 242 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 780 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,360 | |
Total Loans | 3,650 | |
Consumer | Consumer and Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,654 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,610 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,941 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 957 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 365 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,018 | |
Revolving Loans Amortized Cost | 3 | |
Total Loans | 11,548 | 16,036 |
Consumer | Consumer and Other | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,652 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,610 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,941 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 957 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 364 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,018 | |
Revolving Loans Amortized Cost | 3 | |
Total Loans | 11,545 | 16,034 |
Consumer | Consumer and Other | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 1 | |
Total Loans | $ 3 | $ 2 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of ACL And Outstanding Loan Balances According To The Company's Estimated Credit Loss Method (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | $ 7,207 | $ 7,432 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 35,476 | 23,783 | ||||
Allowance for loan losses, Purchased credit-impaired loans | 211 | |||||
Allowance for loan losses, Total | 42,683 | $ 41,253 | 31,426 | $ 28,039 | $ 25,923 | $ 25,245 |
Outstanding loan balances, Individually evaluated for impairment | 18,552 | 40,947 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 1,647,002 | 1,640,942 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 3,480 | |||||
Total Loans | 1,665,554 | 1,685,369 | ||||
Real Estate Term | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 892 | 825 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 11,615 | 11,255 | ||||
Allowance for loan losses, Purchased credit-impaired loans | 195 | |||||
Allowance for loan losses, Total | 12,507 | 12,997 | 12,275 | 10,472 | 10,172 | 9,968 |
Outstanding loan balances, Individually evaluated for impairment | 2,423 | 18,305 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 956,360 | 929,408 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 360 | |||||
Total Loans | 958,783 | 948,073 | ||||
Construction and Land Development | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 1,512 | 1,305 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 13,609 | 5,669 | ||||
Allowance for loan losses, Purchased credit-impaired loans | 16 | |||||
Allowance for loan losses, Total | 15,121 | 13,677 | 6,990 | 7,387 | 7,182 | 7,022 |
Outstanding loan balances, Individually evaluated for impairment | 4,806 | 4,474 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 238,406 | 269,424 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 65 | |||||
Total Loans | 243,212 | 273,963 | ||||
Residential and Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 401 | 401 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 2,366 | 717 | ||||
Allowance for loan losses, Total | 2,767 | 2,553 | 1,118 | 772 | 804 | 729 |
Outstanding loan balances, Individually evaluated for impairment | 504 | 3,701 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 140,670 | 158,858 | ||||
Total Loans | 141,174 | 162,559 | ||||
Consumer and Other | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Collectively evaluated for impairment | 528 | 151 | ||||
Allowance for loan losses, Total | 528 | 558 | 151 | 171 | 163 | 299 |
Outstanding loan balances, Collectively evaluated for impairment | 11,548 | 16,036 | ||||
Total Loans | 11,548 | 16,036 | ||||
Commercial and Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Allowance for loan losses, Individually evaluated for impairment | 4,402 | 4,901 | ||||
Allowance for loan losses, Collectively evaluated for impairment | 7,358 | 5,991 | ||||
Allowance for loan losses, Total | 11,760 | $ 11,468 | 10,892 | $ 9,237 | $ 7,602 | $ 7,227 |
Outstanding loan balances, Individually evaluated for impairment | 10,819 | 14,467 | ||||
Outstanding loan balances, Collectively evaluated for impairment | 300,018 | 267,216 | ||||
Outstanding loan balances, Purchased credit-impaired loans | 3,055 | |||||
Total Loans | $ 310,837 | $ 284,738 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Summary of Amortized Cost Basis of Collateral Dependent Loans (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | $ 13,523 |
Real Estate | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 6,096 |
Accounts Receivable | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 3,794 |
Equipment | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 3,415 |
Livestock | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 70 |
Auto | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 148 |
Commercial Real Estate | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 5,697 |
Commercial Real Estate | Real Estate Term | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 891 |
Commercial Real Estate | Construction and Land Development | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 4,806 |
Commercial Real Estate | Real Estate | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 5,697 |
Commercial Real Estate | Real Estate | Real Estate Term | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 891 |
Commercial Real Estate | Real Estate | Construction and Land Development | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 4,806 |
Commercial and Industrial | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 7,427 |
Commercial and Industrial | Accounts Receivable | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 3,794 |
Commercial and Industrial | Equipment | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 3,415 |
Commercial and Industrial | Livestock | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 70 |
Commercial and Industrial | Auto | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 148 |
Consumer | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 399 |
Consumer | Residential and Home Equity | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 399 |
Consumer | Real Estate | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | 399 |
Consumer | Real Estate | Residential and Home Equity | |
Loans And Leases Receivable Disclosure [Line Items] | |
Total collateral dependent loans | $ 399 |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Summary of Information On Individually Evaluated Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | $ 20,320 | $ 40,947 |
Recorded investment With No Allowance | 17,590 | |
Recorded investment With Allowance | 18,552 | 23,357 |
Total Recorded Investment | 18,552 | 40,947 |
Related ACL | 7,207 | 7,432 |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 7,587 | 22,779 |
Recorded investment With No Allowance | 11,805 | |
Recorded investment With Allowance | 7,229 | 10,974 |
Total Recorded Investment | 7,229 | 22,779 |
Related ACL | 2,404 | 2,130 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 2,779 | 18,305 |
Recorded investment With No Allowance | 11,684 | |
Recorded investment With Allowance | 2,423 | 6,621 |
Total Recorded Investment | 2,423 | 18,305 |
Related ACL | 892 | 825 |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 4,808 | 4,474 |
Recorded investment With No Allowance | 121 | |
Recorded investment With Allowance | 4,806 | 4,353 |
Total Recorded Investment | 4,806 | 4,474 |
Related ACL | 1,512 | 1,305 |
Commercial and Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 12,229 | 14,467 |
Recorded investment With No Allowance | 2,591 | |
Recorded investment With Allowance | 10,819 | 11,876 |
Total Recorded Investment | 10,819 | 14,467 |
Related ACL | 4,402 | 4,901 |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 504 | 3,701 |
Recorded investment With No Allowance | 3,194 | |
Recorded investment With Allowance | 504 | 507 |
Total Recorded Investment | 504 | 3,701 |
Related ACL | 401 | 401 |
Consumer | Residential and Home Equity | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 504 | 3,701 |
Recorded investment With No Allowance | 3,194 | |
Recorded investment With Allowance | 504 | 507 |
Total Recorded Investment | 504 | 3,701 |
Related ACL | $ 401 | $ 401 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Summary of Interest Income Recognized on Individually Evaluated Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | $ 19,354 | $ 33,124 | $ 24,952 | $ 28,483 |
Interest Income Recognition | 172 | 467 | 547 | 809 |
Commercial Real Estate | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 7,793 | 17,845 | 11,768 | 14,543 |
Interest Income Recognition | 72 | 253 | 254 | 393 |
Commercial Real Estate | Real Estate Term | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 4,835 | 13,858 | 8,806 | 11,998 |
Interest Income Recognition | 25 | 182 | 155 | 305 |
Commercial Real Estate | Construction and Land Development | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 2,958 | 3,987 | 2,962 | 2,545 |
Interest Income Recognition | 47 | 71 | 99 | 88 |
Commercial and Industrial | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 10,733 | 12,183 | 11,644 | 10,806 |
Interest Income Recognition | 96 | 170 | 261 | 325 |
Consumer | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 828 | 3,096 | 1,540 | 3,134 |
Interest Income Recognition | 4 | 44 | 32 | 91 |
Consumer | Residential and Home Equity | ||||
Financing Receivable Impaired [Line Items] | ||||
Average Recorded Investment | 828 | 3,096 | 1,540 | 3,134 |
Interest Income Recognition | $ 4 | $ 44 | $ 32 | $ 91 |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses - Summary of Changes in Accretable Yield for Non-PCD Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 4,247 | $ 5,884 |
Accretion to interest income | (1,192) | (874) |
Reclassification from non-accretable difference | 402 | 96 |
Balance, end of period | $ 3,457 | $ 5,106 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments to Extend Credit | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 659,794 | $ 632,577 |
Stand-by Letters of Credit and Bond Commitments | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | 23,493 | 23,860 |
Unused Credit Card Lines, All Unsecured | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 26,860 | $ 26,121 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Financial Instruments (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Unsecured Commitments Included in Commitments to Extend Credit | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 12,822 | $ 32,995 |
Unsecured Commitments Included in Stand-by Letters of Credit and Bond Commitments | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 403 | $ 555 |
Fair Value - Summary of Estimat
Fair Value - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Investment securities available for sale | $ 973,457 | $ 405,995 |
Carrying Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 323,837 | 211,981 |
Carrying Value | Level 2 | ||
Financial Assets: | ||
Investment securities available for sale | 964,959 | 395,410 |
Non-marketable securities | 2,890 | 2,623 |
Loans held for sale | 29,264 | 18,669 |
Financial Liabilities: | ||
Total deposits | 2,613,339 | 2,056,367 |
Carrying Value | Level 3 | ||
Financial Assets: | ||
Investment securities available for sale | 8,498 | 10,585 |
Loans held for investment | 1,616,335 | 1,649,492 |
Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 323,837 | 211,981 |
Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Investment securities available for sale | 964,959 | 395,410 |
Non-marketable securities | 2,890 | 2,623 |
Loans held for sale | 29,264 | 18,669 |
Financial Liabilities: | ||
Total deposits | 2,465,845 | 1,851,954 |
Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Investment securities available for sale | 8,498 | 10,585 |
Loans held for investment | $ 1,583,362 | $ 1,639,480 |
Fair Value - Summary of Asset M
Fair Value - Summary of Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 973,457 | $ 405,995 |
Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 973,457 | 405,995 |
Fair Valued on a Non-Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | 945 | 17,497 |
Level 2 | Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 964,959 | 395,410 |
Level 3 | Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 8,498 | 10,585 |
Level 3 | Fair Valued on a Non-Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Individually evaluated loans | $ 945 | $ 17,497 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,192 | $ 3,480 | $ 6,569 | $ 6,753 |
Effective tax rate | 23.60% | 24.10% | 23.70% | 23.90% |
Regulatory Capital Matters - Su
Regulatory Capital Matters - Summary of Actual and Required Capital Amounts and Ratios (Details) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 Capital to Risk-Weighted Assets, Actual Amount | $ 310,678,000 | $ 302,291,000 |
Tier 1 Capital to Risk-Weighted Assets, Actual Amount | 310,678,000 | 302,291,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Amount | 332,608,000 | 324,415,000 |
Tier 1 Leverage, Actual Amount | 310,678,000 | 302,291,000 |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 77,941,000 | 79,193,000 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 103,921,000 | 105,590,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 138,561,000 | 140,787,000 |
Tier 1 Leverage, Minimum Capital Requirement Amount | 106,380,000 | 95,431,000 |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 112,581,000 | 114,390,000 |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 138,561,000 | 140,787,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | $ 173,202,000 | $ 175,984,000 |
CET1 Capital to Risk-Weighted Assets, Actual Ratio | 17.94 | 17.18 |
Tier 1 Capital to Risk-Weighted Assets, Actual Ratio | 17.94 | 17.18 |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Ratio | 19.20 | 18.43 |
Tier 1 Leverage, Actual Ratio | 11.68 | 12.67 |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 4.50 | 4.50 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 6 | 6 |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 8 | 8 |
Tier 1 Leverage, Minimum Capital Requirement Ratio | 4 | 4 |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 6.50 | 6.50 |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 8 | 8 |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 10 | 10 |
Altabank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 Capital to Risk-Weighted Assets, Actual Amount | $ 305,829,000 | $ 297,108,000 |
Tier 1 Capital to Risk-Weighted Assets, Actual Amount | 305,829,000 | 297,108,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Amount | 327,759,000 | 319,233,000 |
Tier 1 Leverage, Actual Amount | 305,829,000 | 297,108,000 |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 77,922,000 | 79,191,000 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 103,896,000 | 105,588,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 138,528,000 | 140,784,000 |
Tier 1 Leverage, Minimum Capital Requirement Amount | 106,207,000 | 95,429,000 |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 112,554,000 | 114,387,000 |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 138,528,000 | 140,784,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 173,160,000 | 175,981,000 |
Tier 1 Leverage, Well Capitalized Requirement Amount | $ 132,759,000 | $ 119,286,000 |
CET1 Capital to Risk-Weighted Assets, Actual Ratio | 17.66 | 16.88 |
Tier 1 Capital to Risk-Weighted Assets, Actual Ratio | 17.66 | 16.88 |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Ratio | 18.93 | 18.14 |
Tier 1 Leverage, Actual Ratio | 11.52 | 12.45 |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 4.50 | 4.50 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 6 | 6 |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 8 | 8 |
Tier 1 Leverage, Minimum Capital Requirement Ratio | 4 | 4 |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 6.50 | 6.50 |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 8 | 8 |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 10 | 10 |
Tier 1 Leverage, Well Capitalized Requirement Ratio | 5 | 5 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) - USD ($) $ in Millions | Mar. 26, 2020 | Dec. 31, 2019 |
Regulatory Capital Requirements [Abstract] | ||
Minimum reserve balances on average deposits | $ 9.4 | |
Reduced reserve requirement ratio | 0.00% |
Incentive Share-Based Plan an_2
Incentive Share-Based Plan and Other Employee Benefits - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
May 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options issued to purchase common shares | 0 | 0 | |
Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 765 | $ 381 | |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock units granted | 55,187 | ||
Fair value of restricted stock units | $ 29.02 | ||
Vesting period | 3 years | ||
Share-Based Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum number of shares available for issuance under the plan | 1,000,000 | ||
Maximum | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum | Share-Based Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based awards granted term | 10 years | ||
Minimum | Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 1 year |