Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | CAPSTAR FINANCIAL HOLDINGS, INC. | |
Entity Central Index Key | 0001676479 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 22,066,073 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37886 | |
Entity Tax Identification Number | 81-1527911 | |
Entity Address, Address Line One | 1201 Demonbreun Street | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
City Area Code | 615 | |
Local Phone Number | 732-6400 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | TN | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | CSTR | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 53,291 | $ 48,202 |
Interest-bearing deposits in financial institutions | 282,790 | 347,023 |
Federal funds sold | 19,900 | 19,900 |
Total cash and cash equivalents | 355,981 | 415,125 |
Securities available-for-sale, at fair value | 460,558 | 459,396 |
Securities held-to-maturity, fair value of $1,791 and $1,830 at March 31, 2022 and December 31, 2021, respectively | 1,775 | 1,782 |
Loans held for sale, includes $38,502 and $37,306 measured at fair value at March 31, 2022 and December 31, 2021, respectively | 106,895 | 83,715 |
Loans held for investment | 2,047,555 | 1,965,769 |
Less allowance for loan losses | (20,857) | (21,698) |
Loans, net | 2,026,698 | 1,944,071 |
Premises and equipment, net | 25,464 | 25,727 |
Restricted equity securities | 14,465 | 14,453 |
Accrued interest receivable | 7,679 | 7,376 |
Goodwill | 41,068 | 41,068 |
Core deposit intangible, net | 6,245 | 6,691 |
Other real estate owned, net | 178 | 266 |
Other assets | 143,743 | 133,376 |
Total assets | 3,190,749 | 3,133,046 |
Deposits: | ||
Noninterest-bearing | 702,172 | 725,171 |
Interest-bearing | 1,025,858 | 944,605 |
Savings and money market accounts | 673,314 | 641,456 |
Time | 354,651 | 373,049 |
Total deposits | 2,755,995 | 2,684,281 |
Subordinated notes | 29,566 | 29,532 |
Other liabilities | 36,271 | 39,139 |
Total liabilities | 2,821,832 | 2,752,952 |
Shareholders’ equity: | ||
Additional paid-in capital | 248,214 | 248,709 |
Retained earnings | 119,842 | 110,489 |
Accumulated other comprehensive loss, net of tax | (21,334) | (1,270) |
Total shareholders’ equity | 368,917 | 380,094 |
Total liabilities and shareholders’ equity | 3,190,749 | 3,133,046 |
Voting | ||
Shareholders’ equity: | ||
Common stock | $ 22,195 | $ 22,166 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities held to maturity, fair value | $ 1,791 | $ 1,830 |
Loans held for sale carried at fair value | $ 38,502 | $ 37,306 |
Voting | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 22,195,071 | 22,166,129 |
Common stock, shares outstanding | 22,195,071 | 22,166,129 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income: | ||
Loans, including fees | $ 20,367 | $ 22,014 |
Securities: | ||
Taxable | 1,754 | 1,596 |
Tax-exempt | 325 | 373 |
Federal funds sold | 10 | 0 |
Restricted equity securities | 156 | 161 |
Interest-bearing deposits in financial institutions | 172 | 134 |
Total interest income | 22,784 | 24,278 |
Interest expense: | ||
Interest-bearing deposits | 436 | 446 |
Savings and money market accounts | 331 | 313 |
Time deposits | 484 | 931 |
Federal Home Loan Bank advances | 0 | 12 |
Subordinated notes | 393 | 394 |
Total interest expense | 1,644 | 2,096 |
Net interest income | 21,140 | 22,182 |
Provision for loan losses | (784) | 650 |
Net interest income after provision for loan losses | 21,924 | 21,532 |
Noninterest income: | ||
Deposit service charges | 1,142 | 1,102 |
Interchange and debit card transaction fees | 1,222 | 1,092 |
Mortgage banking | 1,966 | 4,716 |
Tri-Net | 2,171 | 1,143 |
Wealth management | 440 | 459 |
SBA lending | 222 | 492 |
Net gain on sale of securities | 0 | 26 |
Other noninterest income | 1,926 | 984 |
Total noninterest income | 9,089 | 10,014 |
Noninterest expense: | ||
Salaries and employee benefits | 10,269 | 9,427 |
Data processing and software | 2,647 | 2,827 |
Occupancy | 1,099 | 1,108 |
Equipment | 709 | 899 |
Professional services | 679 | 704 |
Regulatory fees | 280 | 257 |
Acquisition related expenses | 0 | 67 |
Amortization of intangibles | 446 | 508 |
Other noninterest expense | 1,607 | 1,616 |
Total noninterest expense | 17,736 | 17,413 |
Income before income taxes | 13,277 | 14,133 |
Income tax expense | 2,604 | 3,103 |
Net income | $ 10,673 | $ 11,030 |
Per share information: | ||
Basic net income per share of common stock | $ 0.48 | $ 0.50 |
Diluted net income per share of common stock | $ 0.48 | $ 0.50 |
Weighted average shares outstanding: | ||
Basic | 22,198,339 | 22,045,501 |
Diluted | 22,254,644 | 22,076,600 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 10,673 | $ 11,030 |
Unrealized gains on securities available-for-sale: | ||
Unrealized losses arising during the period | (27,081) | (12,708) |
Reclassification adjustment for gains included in net income | 0 | (26) |
Tax Effect | 7,017 | 3,309 |
Unrealized losses on cash flow hedges: | ||
Other comprehensive income (loss), net of tax | (20,064) | (9,425) |
Comprehensive Income (Loss) | $ (9,391) | $ 1,605 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock, Voting | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2020 | $ 343,486 | $ 21,989 | $ 246,890 | $ 66,879 | $ 7,728 |
Beginning balance, shares at Dec. 31, 2020 | 21,988,803 | ||||
Net issuance of restricted common stock | (98) | $ 118 | (216) | ||
Net issuance of restricted common stock, shares | 117,962 | ||||
Stock-based compensation expense | 349 | 349 | |||
Net exercise of common stock options | $ 1 | (1) | |||
Net exercise of common stock options, shares | 1,039 | ||||
Repurchase of common stock | (305) | $ (18) | (287) | ||
Repurchase of common stock, shares | (17,931) | ||||
Common stock dividends declared | (1,093) | (1,093) | |||
Net income | 11,030 | 11,030 | |||
Other comprehensive loss | (9,425) | (9,425) | |||
Ending balance at Mar. 31, 2021 | 343,944 | $ 22,090 | 246,735 | 76,816 | (1,697) |
Ending balance, shares at Mar. 31, 2021 | 22,089,873 | ||||
Beginning balance at Dec. 31, 2021 | 380,094 | $ 22,166 | 248,709 | 110,489 | (1,270) |
Beginning balance, shares at Dec. 31, 2021 | 22,166,129 | ||||
Net issuance of restricted common stock | (87) | $ 66 | (153) | ||
Net issuance of restricted common stock, shares | 65,550 | ||||
Stock-based compensation expense | $ 388 | 388 | |||
Net exercise of common stock options, shares | 0 | ||||
Repurchase of common stock | $ (767) | $ (37) | (730) | ||
Repurchase of common stock, shares | (36,608) | ||||
Common stock dividends declared | (1,320) | (1,320) | |||
Net income | 10,673 | 10,673 | |||
Other comprehensive loss | (20,064) | (20,064) | |||
Ending balance at Mar. 31, 2022 | $ 368,917 | $ 22,195 | $ 248,214 | $ 119,842 | $ (21,334) |
Ending balance, shares at Mar. 31, 2022 | 22,195,071 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividends per share | $ 0.06 | $ 0.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 10,673 | $ 11,030 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | (784) | 650 |
Accretion of discounts on acquired loans and deferred fees | 364 | (1,703) |
Depreciation and amortization | 819 | 867 |
Net amortization of premiums on investment securities | 527 | 580 |
Net gain on sale of securities | 0 | (26) |
Mortgage banking | $ (1,966) | $ (4,716) |
Type Of Revenue Extensible List | Mortgage Banking | Mortgage Banking |
Tri-Net | $ (2,171) | $ (1,143) |
SBA lending | (222) | (492) |
Net gain on disposal of premises and equipment | (7) | 0 |
Net gain on sale of other real estate owned | (10) | (29) |
Stock-based compensation | 388 | 349 |
Deferred income tax expense | (58) | 3 |
Origination of loans held for sale | (265,400) | (315,112) |
Proceeds from loans held for sale | 246,580 | 336,309 |
Cash payments arising from operating leases | (532) | (521) |
Amortization of debt issuance expense | 34 | 32 |
Net (increase) decrease in accrued interest receivable and other assets | (2,630) | 3,744 |
Net increase in accrued interest payable and other liabilities | (3,438) | (10,239) |
Net cash provided by (used in) operating activities | (17,833) | 19,583 |
Cash flows from investing activities: | ||
Purchases | (49,616) | (25,301) |
Maturities, prepayments and calls | 20,853 | 23,446 |
Redemption (purchase) of restricted equity securities | (12) | 569 |
Net increase in loans | (82,207) | (47,676) |
Purchase of premises and equipment | (91) | (84) |
Proceeds from sale of other real estate | 97 | 1,886 |
Purchases of bank owned life insurance | 0 | (31,000) |
Proceeds from bank owned life insurance | 125 | 0 |
Net cash used in investing activities | (110,851) | (78,160) |
Cash flows from financing activities: | ||
Net increase in deposits | 71,714 | 183,200 |
Payments on Federal Home Loan Bank advances | 0 | (10,000) |
Repurchase of common stock | (767) | (305) |
Exercise of common stock options, net of repurchase of restricted shares | (87) | (98) |
Common stock dividends paid | (1,320) | (1,093) |
Net cash provided by financing activities | 69,540 | 171,704 |
Net increase (decrease) in cash and cash equivalents | (59,144) | 113,127 |
Cash and cash equivalents at beginning of period | 415,125 | 277,439 |
Cash and cash equivalents at end of period | 355,981 | 390,566 |
Supplemental disclosures of cash paid: | ||
Interest paid | 1,207 | 1,808 |
Income taxes paid | 0 | 248 |
Supplemental disclosures of noncash transactions: | ||
Transfer of loans to other real estate | 0 | 1,857 |
Loans charged off to the allowance for loan losses | 119 | 62 |
Lease liabilities arising from obtaining right-of-use assets | 570 | 0 |
Unrealized losses on securities available for sale, net of tax | (20,064) | (9,425) |
Loans transferred from held for sale to held for investment | $ 0 | $ 2,306 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the period ended March 31, 2022 include CapStar Financial Holdings, Inc. and its wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all information and notes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. These unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes appearing in the 2021 Form 10-K. Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. The Company typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of shares of common stock issued is determined based upon the market price of the stock as of the closing of the acquisition. Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders' equity or net income. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio, deferred tax assets and estimated liabilities. There have been no significant changes to the Company’s critical accounting policies and estimates as disclosed in the 2021 Form 10-K. Subsequent Events Accounting Standards Codification (“ASC”) 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all significant events or transactions that occurred after March 31, 2022 through the date of filing this Quarterly Report on Form 10-Q and determined that there were no events that required disclosure. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | NOTE 2 – SECURITIES The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2022 and December 31, 2021 are summarized as follows (in thousands): March 31, 2022 December 31, 2021 Amortized Gross Gross Estimated Amortized Gross Gross Estimated Securities available-for-sale: U. S. government agency securities $ 16,617 $ — $ ( 765 ) $ 15,852 $ 11,550 $ 47 $ ( 94 ) $ 11,503 State and municipal securities 79,352 782 ( 5,087 ) 75,047 81,158 2,107 ( 705 ) 82,560 Mortgage-backed securities 326,297 156 ( 26,210 ) 300,243 300,398 2,008 ( 8,799 ) 293,607 Asset-backed securities 3,326 14 — 3,340 3,326 13 — 3,339 Other debt securities 66,187 659 ( 770 ) 66,076 67,104 1,514 ( 231 ) 68,387 Total $ 491,779 $ 1,611 $ ( 32,832 ) $ 460,558 $ 463,536 $ 5,689 $ ( 9,829 ) $ 459,396 Securities held-to-maturity: State and municipal securities $ 1,775 $ 16 $ — $ 1,791 $ 1,782 $ 48 $ — $ 1,830 Total $ 1,775 $ 16 $ — $ 1,791 $ 1,782 $ 48 $ — $ 1,830 Security fair values are established by an independent pricing service as of the dates indicated. The difference between amortized cost and fair value reflects current interest rates and represents the potential gain (loss) had the portfolio been liquidated on those dates. Security gains (losses) are realized only in the event of dispositions prior to maturity or other-than-temporary impairment. Securities with unrealized losses as of March 31, 2022 and December 31, 2021, and the length of time they were in continuous loss positions as of such dates are as follows (in thousands): Less than 12 months 12 months or more Total March 31, 2022 Estimated Gross Estimated Gross Estimated Gross U. S. government agency securities $ 10,311 $ ( 545 ) $ 2,519 $ ( 220 ) $ 12,830 $ ( 765 ) State and municipal securities 36,417 ( 3,246 ) 12,839 ( 1,841 ) 49,256 ( 5,087 ) Mortgage-backed securities 132,254 ( 7,024 ) 153,731 ( 19,186 ) 285,985 ( 26,210 ) Asset-backed securities — — — — — — Other debt securities 35,431 ( 770 ) — — 35,431 ( 770 ) Total temporarily impaired securities $ 214,413 $ ( 11,585 ) $ 169,089 $ ( 21,247 ) $ 383,502 $ ( 32,832 ) December 31, 2021 U. S. government agency securities $ 2,560 $ ( 20 ) $ 2,737 $ ( 74 ) $ 5,297 $ ( 94 ) State and municipal securities 15,309 ( 279 ) 12,768 ( 426 ) 28,077 ( 705 ) Mortgage-backed securities 155,805 ( 5,291 ) 75,934 ( 3,508 ) 231,739 ( 8,799 ) Asset-backed securities — — — — — Other debt securities 30,375 ( 231 ) — — 30,375 ( 231 ) Total temporarily impaired securities $ 204,049 $ ( 5,821 ) $ 91,439 $ ( 4,008 ) $ 295,488 $ ( 9,829 ) As noted in the table above, as of March 31, 2022 , the Company had gross unrealized losses of $ 32.8 million in its investment securities portfolio. The unrealized losses associated with these investment securities are driven by changes in interest rates and are recorded as a component of equity. These investment securities will continue to be monitored as a part of our ongoing impairment analysis. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. If an expected shortfall in future cash flows is identified, a credit loss will be deemed to have occurred and will be recognized as a charge to earnings and a new cost basis for the security will be established. Since the Company currently does not intend to sell any investment securities that have an unrealized loss at March 31, 2022, and it is not likely that we will be required to sell these investment securities before recovery of their amortized cost bases, which may be at maturity, we do not consider these securities to be other-than-temporarily impaired at March 31, 2022. Securities with a market value of $ 197.6 million at March 31, 2022 were pledged to collateralize public deposits, derivative positions and Federal Home Loan Bank advances. Results from sales, maturities, prepayments and calls of securities available for sale were as follows (in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Proceeds $ 20,853 $ 23,446 Gross gains — 26 Gross losses — — The amortized cost and fair value of securities at March 31, 2022, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized Estimated Amortized Estimated Due in less than one year $ 14,000 $ 14,048 $ 514 $ 516 Due one to five years 68,801 68,643 1,261 1,275 Due five to ten years 63,159 60,140 — — Due beyond ten years 16,196 14,144 — — Mortgage-backed securities 326,297 300,243 — — Asset-backed securities 3,326 3,340 — — Total $ 491,779 $ 460,558 $ 1,775 $ 1,791 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES A summary of the loans held for investment portfolio as of March 31, 2022 and December 31, 2021 follows (in thousands): March 31, 2022 December 31, 2021 Commercial real estate $ 884,869 $ 825,284 Consumer real estate 327,416 326,412 Construction and land development 208,513 214,310 Commercial and industrial 499,719 497,615 Consumer 48,790 46,811 Other 78,248 55,337 Total 2,047,555 1,965,769 Allowance for loan losses ( 20,857 ) ( 21,698 ) Total loans, net $ 2,026,698 $ 1,944,071 Payroll Protection Program Loans In 2020, the CARES Act created a new guaranteed, unsecured loan program under the SBA called the Payroll Protection Program (“PPP”), which the Company participated in, to fund operational costs of eligible businesses, organizations and self-employed persons during the pandemic period. The SBA has guaranteed 100% of the amounts loaned under the PPP by lenders to eligible small businesses. One of the notable features of the PPP is that borrowers are eligible for loan forgiveness if certain conditions are met related to retaining staff and if loan amounts are used to cover eligible expenses, such as payroll, mortgage interest, rents and utilities payments. These loans have a two to five year term and will earn interest at a rate of 1 %. As of March 31, 2022 , the outstanding balance of loans originated under the PPP totaled $ 6.5 million compared with $ 26.5 million as of December 31, 2021 and was included in commercial and industrial loans. Additionally, PPP borrowers are not required to pay any fees to the government or the lender and the loans may be repaid by the borrower at any time. The SBA, however, will pay lenders a processing fee based on the size of the PPP loan, ranging from 1 % to 5 % of the loan. Unamortized fees associated with PPP loans included in total loans were $ 0.2 million as of March 31, 2022 compared to $ 0.6 million as of December 31, 2021. These fees are deferred and amortized over the life of the loan. PPP fees recognized as income totaled $ 0.5 million for the three months ended March 31, 2022 , compared to $ 1.8 million for the same period in 2021. Allowance for Loan Losses The adequacy of the allowance for loan losses (“ALL”) is assessed at the end of each quarter. The ALL includes a specific component related to loans that are individually evaluated for impairment and a general component related to loans that are segregated into homogenous pools and collectively evaluated for impairment. The ALL factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics, which are adjusted by management to reflect current events, trends, and conditions. The adjustments include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. The Company’s evaluation of other external factors included consideration of continuing developments regarding the novel coronavirus (“COVID-19”) global pandemic (including the effects of COVID-19 variants) and the resulting impact on the Company’s loan portfolio as of March 31, 2022, which is uncertain due to evolving conditions and unforeseen new variants. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes all commercial loans individually and assigns each loan a risk rating. This analysis is performed at origination by the relationship manager and credit department personnel. On at least an annual basis, an independent party performs a formal credit risk review of a sample of the loan portfolio. Among other things, this review assesses the appropriateness of the loan’s risk rating. The Company uses the following definitions for risk ratings: Special Mention – A special mention asset possesses deficiencies or potential weaknesses deserving of management’s attention. If uncorrected, such weaknesses or deficiencies may expose the Company to an increased risk of loss in the future. 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 must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Doubtful – A doubtful asset has all weaknesses inherent in one classified substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but certain important and reasonable specific pending factors which may work to the advantage and strengthening of the asset exist, therefore, its classification as an estimated loss is deferred until a more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Loans not falling into the criteria above are considered to be pass-rated loans. The Company utilizes six loan grades within the pass risk rating. The following tables provides the risk category of loans by applicable class of loans as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 Pass Special Substandard Doubtful Total Impaired Total Commercial real estate $ 862,430 $ 12,835 $ 4,683 $ — $ 1,144 $ 881,092 Consumer real estate 314,983 626 536 — 856 317,001 Construction and land development 208,413 — — — 10 208,423 Commercial and industrial 471,407 4,642 21,149 70 248 497,516 Consumer 47,806 — 67 26 10 47,909 Other 77,877 — 79 — — 77,956 Purchased credit impaired 13,675 1,026 2,648 309 — 17,658 Total $ 1,996,591 $ 19,129 $ 29,162 $ 405 $ 2,268 $ 2,047,555 December 31, 2021 Commercial real estate $ 802,562 $ 12,921 $ 4,721 $ — $ 1,151 $ 821,355 Consumer real estate 312,662 475 712 — 909 314,758 Construction and land development 214,209 — — — 10 214,219 Commercial and industrial 468,278 9,811 16,952 73 250 495,364 Consumer 45,695 — 56 3 23 45,777 Other 54,959 — 76 — — 55,035 Purchased credit impaired 15,416 — 3,585 260 — 19,261 Total $ 1,913,781 $ 23,207 $ 26,102 $ 336 $ 2,343 $ 1,965,769 The following table details the changes in the ALL for the three month periods ended March 31, 2022 and 2021 (in thousands): Commercial Consumer Construction Commercial Consumer Other Total Three Months Ended March 31, 2022 Balance, beginning of period $ 7,124 $ 2,412 $ 3,769 $ 7,441 $ 397 $ 555 $ 21,698 Charged-off loans — — — — ( 81 ) ( 38 ) ( 119 ) Recoveries — — — — 57 5 62 Provision for loan losses ( 137 ) ( 198 ) ( 461 ) ( 235 ) 8 239 ( 784 ) Balance, end of period $ 6,987 $ 2,214 $ 3,308 $ 7,206 $ 381 $ 761 $ 20,857 Three Months Ended March 31, 2021 Balance, beginning of period $ 7,349 $ 1,831 $ 3,476 $ 9,708 $ 305 $ 576 $ 23,245 Charged-off loans — — — — ( 26 ) ( 36 ) ( 62 ) Recoveries 10 3 — 1 19 11 44 Provision for loan losses 329 ( 155 ) ( 113 ) 503 35 51 650 Balance, end of period $ 7,688 $ 1,679 $ 3,363 $ 10,212 $ 333 $ 602 $ 23,877 A breakdown of the ALL and the loan portfolio by loan category at March 31, 2022 and December 31, 2021 follows (in thousands): Commercial Consumer Construction Commercial Consumer Other Total March 31, 2022 Allowance for Loan Losses: Collectively evaluated for impairment $ 6,938 $ 2,213 $ 3,308 $ 7,141 $ 304 $ 761 $ 20,665 Individually evaluated for impairment — — — — — — — Purchased credit impaired 49 1 — 65 77 — 192 Balances, end of period $ 6,987 $ 2,214 $ 3,308 $ 7,206 $ 381 $ 761 $ 20,857 Loans: Collectively evaluated for impairment $ 879,948 $ 316,145 $ 208,413 $ 497,268 $ 47,899 $ 77,956 $ 2,027,629 Individually evaluated for impairment 1,144 856 10 248 10 — 2,268 Purchased credit impaired 3,777 10,415 90 2,203 881 292 17,658 Balances, end of period $ 884,869 $ 327,416 $ 208,513 $ 499,719 $ 48,790 $ 78,248 $ 2,047,555 December 31, 2021 Allowance for Loan Losses: Collectively evaluated for impairment $ 7,075 $ 2,211 $ 3,769 $ 7,376 $ 321 $ 555 $ 21,307 Individually evaluated for impairment — 200 — — — — 200 Purchased credit impaired 49 1 — 65 76 — 191 Balances, end of period $ 7,124 $ 2,412 $ 3,769 $ 7,441 $ 397 $ 555 $ 21,698 Loans: Collectively evaluated for impairment $ 820,204 $ 313,849 $ 214,209 $ 495,114 $ 45,754 $ 55,035 $ 1,944,165 Individually evaluated for impairment 1,151 909 10 250 23 — 2,343 Purchased credit impaired 3,929 11,654 91 2,251 1,034 302 19,261 Balances, end of period $ 825,284 $ 326,412 $ 214,310 $ 497,615 $ 46,811 $ 55,337 $ 1,965,769 The following table presents the allocation of the ALL for each respective loan category with the corresponding percentage of the ALL in each category to total loans, net of deferred fees as of March 31, 2022 and December 31, 2021 (in thousands). PPP loans included in commercial and industrial loans in the below table do not have a corresponding ALL as they are fully guaranteed by the SBA: March 31, 2022 December 31, 2021 Amount Percent of total Amount Percent of total Commercial real estate $ 6,987 0.34 % $ 7,124 0.36 % Consumer real estate 2,214 0.11 2,412 0.12 Construction and land development 3,308 0.16 3,769 0.19 Commercial and industrial 7,206 0.35 7,441 0.38 Consumer 381 0.02 397 0.02 Other 761 0.04 555 0.03 Total allowance for loan losses $ 20,857 1.02 % $ 21,698 1.10 % The following table presents the Company’s impaired loans that were evaluated for specific loss allowance, excluding purchased credit impaired (“PCI”) loans, as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Recorded Unpaid Related Recorded Unpaid Related With no related allowance recorded: Commercial real estate $ 1,144 $ 1,138 $ — $ 1,151 $ 1,115 $ — Consumer real estate 856 882 — 255 281 — Construction and land development 10 10 — 10 11 — Commercial and industrial 248 293 — 250 298 — Consumer 10 10 — 23 23 — Other — — — — — — Subtotal 2,268 2,333 — 1,689 1,728 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — 654 654 200 Construction and land development — — — — — — Commercial and industrial — — — — — — Consumer — — — — — — Other — — — — — — Subtotal — — — 654 654 200 Total $ 2,268 $ 2,333 $ — $ 2,343 $ 2,382 $ 200 The following table presents information related to the average recorded investment and interest income recognized on impaired loans, excluding PCI loans, for the three month periods ended March 31, 2022 and 2021 (in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Average Interest Average Interest With no related allowance recorded: Commercial real estate $ 1,148 $ 16 $ 1,185 $ 16 Consumer real estate 861 — 1,946 1 Construction and land development 10 — — — Commercial and industrial 249 — 65 — Consumer 11 — 7 — Other — — — — Subtotal 2,279 16 3,203 17 With an allowance recorded: Commercial real estate — — — — Consumer real estate — — — — Construction and land development — — 100 — Commercial and industrial — — 101 — Consumer — — — — Other — — — — Subtotal — — 201 — Total $ 2,279 $ 16 $ 3,404 $ 17 There was no interest income recognized on a cash basis for impaired loans during the three month periods ended March 31, 2022 or 2021. The following table presents the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total March 31, 2022 Commercial real estate $ 24 $ — $ — $ 24 $ 881,068 $ 881,092 Consumer real estate 532 16 110 658 316,343 317,001 Construction and land development 334 — 10 344 208,079 208,423 Commercial and industrial 604 74 301 979 496,537 497,516 Consumer 195 31 84 310 47,599 47,909 Other 50 — — 50 77,906 77,956 Purchased credit impaired 585 30 571 1,186 16,472 17,658 Total $ 2,324 $ 151 $ 1,076 $ 3,551 $ 2,044,004 $ 2,047,555 December 31, 2021 Commercial real estate $ — $ — $ 1,115 $ 1,115 $ 820,240 $ 821,355 Consumer real estate 1,806 — 241 2,047 312,711 314,758 Construction and land development — — 11 11 214,208 214,219 Commercial and industrial 57 48 268 373 494,991 495,364 Consumer 164 170 26 360 45,417 45,777 Other — — — — 55,035 55,035 Purchased credit impaired 302 153 459 914 18,347 19,261 Total $ 2,329 $ 371 $ 2,120 $ 4,820 $ 1,960,949 $ 1,965,769 The following table presents the recorded investment in non-accrual loans, past due loans over 90 days and accruing and troubled debt restructurings (“TDR”) by class of loans as of March 31, 2022 and December 31, 2021 (in thousands): Non-Accrual Past Due Over 90 Days and Accruing Troubled Debt Restructurings March 31, 2022 Commercial real estate $ — $ — $ 1,138 Consumer real estate 1,033 47 647 Construction and land development 10 — — Commercial and industrial 463 — 62 Consumer 39 56 — Other — — — Purchased credit impaired 1,957 133 — Total $ 3,502 $ 236 $ 1,847 December 31, 2021 Commercial real estate $ — $ 1,115 $ 1,115 Consumer real estate 1,086 54 654 Construction and land development 11 — — Commercial and industrial 324 112 63 Consumer 31 10 — Other — — — Purchased credit impaired 1,806 89 — Total $ 3,258 $ 1,380 $ 1,832 As of March 31, 2022 and December 31, 2021, all loans classified as nonperforming were deemed to be impaired. As of March 31, 2022 and December 31, 2021 , the Company had a recorded investment in TDR of $ 1.8 million. The Company had no specific allowance for those loans at March 31, 2022 or December 31, 2021 and there were no commitments to lend additional amounts. Loans accounted for as TDR include modifications from original terms such as those due to bankruptcy proceedings, certain modifications of amortization periods or extended suspension of principal payments due to customer financial difficulties. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Bank’s loan policy. Loans accounted for as TDR are individually evaluated for impairment. In accordance with interagency guidance, short term deferrals granted due to the COVID-19 pandemic are not considered TDR unless the borrower was experiencing financial difficulty prior to the pandemic. There were no new TDR identified during the three months ended March 31, 2022 or 2021. There were no TDR for which there was a payment default within twelve months following the modification during the three months ended March 31, 2022 or 2021. A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. Purchased Credit Impaired Loans The following table presents changes in the carrying value of PCI loans (in thousands) for the periods indicated: Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 19,261 $ 28,392 Change due to payments received and accretion ( 1,411 ) ( 1,317 ) Reclassification of discount to allowance for loan losses ( 192 ) — Balance at end of period $ 17,658 $ 27,075 The following table presents changes in the accretable yield for PCI loans (in thousands) for the periods indicated: Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 5,763 $ 4,068 Accretion ( 437 ) ( 392 ) Balance at end of period $ 5,326 $ 3,676 PCI loans had no impact on the ALL for the three months ended March 31, 2022 . |
Premises and Equipment
Premises and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | NOTE 4 – PREMISES AND EQUIPMENT The Company leases certain premises and equipment under operating leases. At March 31, 2022 , the Company had lease liabilities totaling $ 12.1 million and right-of-use assets totaling $ 11.2 million related to these leases. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. At March 31, 2022 , the weighted average remaining lease term for operating leases was 8.7 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.36 %. Lease costs were as follows (in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Operating lease cost $ 533 $ 563 Short-term lease cost — — Variable lease cost — — Total lease cost $ 533 $ 563 There were no sale and leaseback transactions, leveraged leases, or lease transactions with related parties during the three months ended March 31, 2022 or 2021. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows (in thousands): March 31, 2022 Lease payments due: 2022 $ 1,404 2023 1,834 2024 1,543 2025 1,549 2026 1,537 2027 and thereafter 6,252 Total undiscounted cash flows 14,119 Discount on cash flows ( 2,014 ) Total lease liability $ 12,105 |
Short Term Borrowings And Long-
Short Term Borrowings And Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Short Term Borrowings And Long-Term Debt | NOTE 5 – SHORT TERM BORROWINGS AND LONG-TERM DEBT Short-Term Borrowings The Company had no outstanding advances as of March 31, 2022 and December 31, 2021. Advances from the FHLB are collateralized by investment securities with a market value of $ 2.2 million and certain commercial and residential real estate mortgage loans totaling $ 214.9 million under a blanket mortgage collateral agreement. At March 31, 2022, the amount of available credit from the FHLB totaled $ 154.4 million. Subordinated Notes The Company issued $ 30.0 million of fixed-to-floating rate subordinated notes during the third quarter of 2020, which were recorded net of issuance costs of $ 0.6 million, that mature June 30, 2030 . Beginning on or after June 30, 2025 , the Company may redeem the notes, in whole or in part, at their principal amount plus any accrued and unpaid interest. The notes have a fixed interest rate of 5.25 % per annum for the first five years. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 513 basis points. The carrying value of subordinated notes was $ 29.6 million at March 31, 2022 and $ 29.5 million at December 31, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 6– ACCUMULATED OTHER COMPREHENSIVE LOSS The following were changes in accumulated other comprehensive loss by component, net of tax, for the periods ended March 31, 2022 and 2021 (in thousands): Unrealized Gains and Losses on Available for Sale Securities Three Months Ended March 31, 2022 Beginning balance $ ( 1,270 ) Other comprehensive loss before ( 20,064 ) Amounts reclassified from accumulated other — Net current period other comprehensive loss ( 20,064 ) Ending Balance $ ( 21,334 ) Three Months Ended March 31, 2021 Beginning balance $ 7,728 Other comprehensive loss before ( 9,406 ) Amounts reclassified from accumulated other ( 19 ) Net current period other comprehensive loss ( 9,425 ) Ending Balance $ ( 1,697 ) The following amounts were reclassified out of each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021 (in thousands): Affected Line Item Details about Accumulated Other Three Months Ended March 31, in the Statement Where Comprehensive Income (Loss) Components 2022 2021 Net Income is Presented Realized gains on available- $ — $ 26 Net gain on sale of securities — ( 7 ) Income tax expense $ — $ 19 Net of tax |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7– INCOME TAXES The Company’s effective tax rate for the three month period ended March 31, 2022 was 19.6 % compared to 22.0 % for the three months ended March 31, 2021. The effective tax rate for the three month period ended March 31, 2022 compared favorably to the statutory federal rate of 21 % and Tennessee excise tax rate of 6.5 % primarily due to investments in qualified municipal securities, company owned life insurance, tax benefits of CapStar Bank’s real estate investment trust subsidiary, community investment tax credits, and tax benefits associated with share-based compensation, net of the effect of certain non-deductible expenses. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit 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 balance sheet. The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of March 31, 2022 and December 31, 2021 (in thousands): Contract or notional amount March 31, 2022 December 31, 2021 Financial instruments whose contract amounts represent Unused commitments to extend credit $ 883,987 $ 831,075 Standby letters of credit 10,502 10,623 Total $ 894,489 $ 841,698 The Company is party to litigation and claims arising in the normal course of business. Management believes that the liabilities, if any, arising from such litigation and claims as of March 31, 2022 , will not have a material impact on the financial statements of the Company. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 9 – DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest Rate Swaps The Company enters into swaps to facilitate customer transactions and meet their financing needs. Upon entering into these transactions the Company enters into offsetting positions with large U.S. financial institutions in order to minimize market risk to the Company. A summary of the Company’s customer related interest rate swaps was as follows (in thousands): March 31, 2022 December 31, 2021 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 50,911 $ 1,131 $ 54,055 $ ( 1,594 ) Pay variable/receive fixed swaps 50,911 ( 1,131 ) 54,055 1,594 Total $ 101,822 $ — $ 108,110 $ — Mortgage Banking Derivatives The Company enters into various derivative agreements with customers in the form of interest-rate lock commitments, which are commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. The derivatives are valued using a model that utilizes market interest rates and other unobservable inputs. Changes in the fair value of these commitments due to fluctuations in interest rates that are to be originated to our loans held for sale portfolio are economically hedged through the use of forward sale commitments of mortgage-backed securities. The gains and losses arising from this derivative activity are reflected in current period earnings under mortgage banking income. Interest rate lock commitments are valued using a model with significant unobservable market parameters. Forward sale commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable. The net (losses) gains relating to mortgage banking derivative instruments included in mortgage banking income were as follows (in thousands): Three Months Ended March 31, 2022 Mortgage loan interest rate lock commitments $ ( 471 ) Mortgage-backed securities forward sales commitments 415 Total $ ( 56 ) The amount and fair value of mortgage banking derivatives included in the consolidated balance sheets were as follows (in thousands): March 31, 2022 December 31, 2021 Notional Estimated Notional Estimated amount fair value amount fair value Included in other assets: Mortgage loan interest rate lock commitments $ 69,454 $ 225 $ 50,281 $ 696 Mortgage-backed securities forward sales commitments 68,500 255 — — Included in other liabilities: Mortgage-backed securities forward sales commitments $ — $ — $ 43,000 $ ( 160 ) |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Options and Restricted Shares | NOTE 10 – STOCK OPTIONS AND RESTRICTED SHARES On April 23, 2021, the shareholders of CapStar Financial Holdings, Inc. approved the 2021 Stock Incentive Plan (the "Plan"). The Plan provides for the grant of stock-based incentives, including stock options, restricted stock units, performance awards and restricted stock, to employees, directors and service providers that are subject to forfeiture until vesting conditions have been satisfied by the award recipient under the terms of the award. The Plan is intended to help align the interests of employees and our shareholders and reward our employees for improved Company performance. A total of 1,168,543 shares of stock were reserved for issuance under the Plan. Stock incentives include both restricted share and stock option grants. Total shares issuable under the plan were 1,098,499 as of March 31, 2022. The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (in thousands): Three Months Ended March 31, 2022 2021 Stock-based compensation expense before income taxes $ 388 $ 349 Less: deferred tax benefit ( 101 ) ( 91 ) Reduction of net income $ 287 $ 258 Restricted Shares, Restricted Stock Units, and Performance Stock Units We grant time-vested restricted stock units and performance stock units to certain key employees and directors under our stock award plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the issue date. Awards vest ratably over a two or three-year vesting period depending on the specific award. Performance stock units vest based upon the attainment of certain performance metrics over a three -year cumulative performance period. Certain of these awards are eligible to receive dividend equivalent shares. The grant date fair value of these awards was estimated using a Monte Carlo simulation. For awards based upon the achievement of the performance goals, the awards are earned ratably from 0 % to 188 %. If the performance goals are met at the end of the performance period, the award is adjusted to reflect the Company’s three-year total shareholder return (TSR) performance relative to a capital market peer group. This TSR modifier cannot cause the award to exceed the maximum of 188 %. The recipients have the right to vote and receive dividends but cannot sell, transfer, assign, pledge, hypothecate, or otherwise encumber the restricted stock until the shares have vested. A summary of the changes in the Company’s nonvested restricted shares for the three months ended March 31, 2022 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 177,020 $ 14.00 Granted 76,539 21.41 Vested ( 27,836 ) 16.10 Forfeited ( 6,864 ) 13.43 Nonvested at end of period 218,859 $ 16.34 As of March 31, 2022 , there was $ 2.6 million of unrecognized compensation cost related to nonvested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.2 years. The total fair value of shares vested during the three months ended March 31, 2022 was $ 0.6 million. Stock Options Option awards are generally granted with an exercise price equal to the fair value of the Company’s common stock at the date of grant. Option awards generally have a three year vesting period and a ten year contractual term. The fair value of each option grant is estimated on the date of grant using the Black Scholes option pricing model. There were no options granted in 2022 or 2021. A summary of the activity in stock options for the three months ended March 31, 2022 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 130,245 $ 11.96 Granted — — Exercised — — Forfeited or expired — — Outstanding at end of period 130,245 $ 11.96 4.7 Fully vested and expected to vest 130,245 $ 11.96 4.7 Exercisable at end of period 113,578 $ 11.54 4.3 Information related to stock options during each year follows: 2022 2021 Intrinsic value of options exercised $ — $ 34,700 Cash received from option exercises — — Tax benefit realized from option exercises — — Weighted average fair value of options granted — — As of March 31, 2022 , there was $ 0.1 million of unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 0.1 years. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Regulatory Capital Requirements | NOTE 11 – REGULATORY CAPITAL REQUIREMENTS The Company and the Bank are subject to regulatory capital requirements administered by the Federal Reserve and the Bank is also subject to the regulatory capital requirements of the Tennessee Department of Financial Institutions. Failure to meet capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that could, in that event, have a material adverse effect on the institutions’ financial statements. The relevant regulations require the Company and the Bank to meet specific capital adequacy guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting principles. The capital classifications of the Company and the Bank are also subject to qualitative judgments by their regulators about components, risk weightings, and other factors. Those qualitative judgments could also affect the capital status of the Company and the Bank and the amount of dividends the Company and the Bank may distribute. The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of March 31, 2022, the Company and the Bank met all regulatory capital adequacy requirements to which they are subject. The Company’s and the Bank’s capital amounts and ratios as of March 31, 2022 and December 31, 2021 are presented in the following table (dollars in thousands). Actual Minimum capital Minimum to be Amount Ratio Amount Ratio Amount Ratio At March 31, 2022: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 392,629 15.60 % $ 201,333 8.0 % N/A N/A CapStar Bank 380,561 15.13 201,205 8.0 $ 251,507 10 % Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 341,887 13.58 151,000 6.0 N/A N/A CapStar Bank 359,385 14.29 150,904 6.0 201,205 8.00 Common equity Tier 1 capital to risk weighted CapStar Financial Holdings, Inc. 341,887 13.58 113,250 4.5 N/A N/A CapStar Bank 342,885 13.63 113,178 4.5 163,479 6.50 Tier I capital to average assets: CapStar Financial Holdings, Inc. 341,887 10.99 124,484 4.0 N/A N/A CapStar Bank 359,385 11.56 124,336 4.0 155,420 5.00 At December 31, 2021: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 384,116 16.29 % $ 188,610 8.0 % N/A N/A CapStar Bank 370,919 15.74 188,471 8.0 $ 235,589 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 332,567 14.11 141,458 6.0 N/A N/A CapStar Bank 348,902 14.81 141,354 6.0 188,471 8.0 Common equity Tier 1 capital to risk weighted CapStar Financial Holdings, Inc. 332,567 14.11 106,093 4.5 N/A N/A CapStar Bank 332,402 14.11 106,015 4.5 153,133 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 332,567 10.69 124,437 4.0 N/A N/A CapStar Bank 348,902 11.23 124,246 4.0 155,308 5.0 (1) For the calendar year 2022, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5 % to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 – EARNINGS PER SHARE The following is a summary of the basic and diluted earnings per share calculation for the three and three month periods ended March 31, 2022 and 2021 (in thousands except share and per share data): Three Months Ended March 31, 2022 2021 Basic net income per share calculation: Numerator – Net income $ 10,673 $ 11,030 Denominator – Average common shares outstanding 22,198,339 22,045,501 Basic net income per share $ 0.48 $ 0.50 Diluted net income per share calculation: Numerator – Net income $ 10,673 $ 11,030 Denominator – Average common shares outstanding 22,198,339 22,045,501 Dilutive shares contingently issuable 56,305 31,099 Average diluted common shares outstanding 22,254,644 22,076,600 Diluted net income per share $ 0.48 $ 0.50 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 13 – FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Bank used the following methods and significant assumptions to estimate fair value: Investment Securities : The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded and values debt securities by relying on quoted prices for the specific securities and the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). See below for additional discussion of Level 3 valuation methodologies and significant inputs. The fair values of all securities are determined from third party pricing services without adjustment. Derivatives-Interest Rate Swaps : The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Bank’s derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rates, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. The fair values of all interest rate swaps are determined from third party pricing services without adjustment. Impaired Loans : The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on at least a quarterly basis for additional impairment and adjusted in accordance with the loan policy. Other Real Estate Owned : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach with data from comparable properties. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Appraisals may be adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and/or management’s expertise and knowledge of the collateral. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. The Company had no other real estate owned carried at fair value at March 31, 2022 or December 31, 2021. Loans Held For Sale : Loans held for sale are carried at either fair value, if elected, or the lower of cost or fair value on a pool-level basis. Origination fees and costs for loans held for sale recorded at lower of cost or market are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for loans held for sale that are recorded at fair value. Fair value is determined using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors (Level 2). Derivatives-Mortgage Loan Interest Rate Lock Commitments : Interest rate lock commitments that relate to the origination of mortgage loans that will be held for sale are recorded at fair value, determined as the amount that would be required to settle each derivative instrument at the balance sheet date. The fair value of the interest rate lock commitment is derived from the fair value of related mortgage loans, which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. In estimating the fair value of an interest rate lock commitment, the Company assigns a probability to the interest rate lock commitment based on an expectation that it will be exercised and the loan will be funded (a “pull through” rate). The expected pull through rates are applied to the fair value of the unclosed mortgage pipeline, resulting in a Level 3 fair value classification. The pull through rate is a statistical analysis of our actual rate lock fallout history to determine the sensitivity of the residential mortgage loan pipeline compared to interest rate changes and other deterministic values. New market prices are applied based on updated loan characteristics and new fallout ratios (i.e., the inverse of the pull through rate) are applied accordingly. Significant increases (decreases) in the pull through rate in isolation result in a significantly higher (lower) fair value measurement. Changes to the fair value of interest rate lock commitments are recognized based on interest rate changes, changes in the probability that the commitment will be exercised, and the passage of time. Derivatives-Mortgage-Backed Securities Forward Sales Commitments : The Company utilizes mortgage-backed securities forward sales commitments to hedge mortgage loan interest rate lock commitments. Mortgage-backed securities forward sales commitments are recorded at fair value based on quoted prices for similar assets in an active market with inputs that are observable, resulting in a Level 2 fair value classification. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair value measurements at March 31, 2022 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U. S. government agency securities $ 15,852 $ — $ 15,852 $ — State and municipal securities 75,047 — 75,047 — Mortgage-backed securities 300,243 — 300,243 — Asset-backed securities 3,340 — 3,340 — Other debt securities 66,076 — 66,076 — Loans held for sale 38,502 — 38,502 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 1,131 — 1,131 — Mortgage loan interest rate lock commitments 225 — — 225 Mortgage-backed securities forward sales commitments 255 — 255 — Liabilities: Derivative liabilities: Non-hedging derivatives: Derivative Liabilities - customer related ( 1,131 ) — ( 1,131 ) — Fair value measurements at December 31, 2021 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U. S. government agency securities $ 11,503 $ — $ 11,503 $ — State and municipal securities 82,560 — 82,560 — Mortgage-backed securities 293,607 — 293,607 — Asset-backed securities 3,339 — 3,339 — Other debt securities 68,387 — 68,387 — Loans held for sale 37,306 — 37,306 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 1,594 — 1,594 — Mortgage loan interest rate lock commitments 696 — — 696 Liabilities: Derivative liabilities: Non-hedging derivatives: Interest rate swaps - customer related ( 1,594 ) — ( 1,594 ) — Mortgage-backed securities forward sales commitments ( 160 ) — ( 160 ) — The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 and 2021 (in thousands): Mortgage Loan Interest Rate Lock Commitments 2022 2021 Balance of recurring Level 3 assets at January 1st $ 696 $ 2,607 Total gains or losses for the period: Included in mortgage banking income ( 471 ) ( 1,805 ) Balance of recurring Level 3 assets at March 31st $ 225 $ 802 The following table presents quantitative information about recurring Level 3 fair value measurements (dollars in thousands): Range Fair Valuation (Weighted- March 31, 2022 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 225 Consensus pricing Origination pull-through rate 77 % - 100 % ( 93 %) Range Fair Valuation (Weighted- December 31, 2021 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 696 Consensus pricing Origination pull-through rate 60 % - 98 % ( 80 %) There were no assets measured at fair value on a nonrecurring basis as of March 31, 2022. Assets measured at fair value on a nonrecurring basis as of December 31, 2021 are summarized below (in thousands). Fair value measurements at December 31, 2021 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Consumer real estate $ 454 $ — $ — $ 454 The following table presents quantitative information about December 31, 2021 Level 3 fair value measurements for assets measured at fair value on a non-recurring basis (dollars in thousands): Range Fair Valuation (Weighted- December 31, 2021 Value Technique(s) Unobservable Input(s) Average) Impaired loans: Consumer real estate $ 454 Sales comparison approach Appraisal discounts 10 % Fair Value of Financial Instruments The carrying value and estimated fair values of the Bank’s financial instruments at March 31, 2022 and December 31, 2021 were as follows (in thousands): March 31, 2022 December 31, 2021 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in $ 336,081 $ 336,081 $ 395,225 $ 395,225 Level 1 Federal funds sold 19,900 19,900 19,900 19,900 Level 1 Securities available-for-sale 460,558 460,558 459,396 459,396 Level 2 Securities held-to-maturity 1,775 1,791 1,782 1,830 Level 2 Loans held for sale 106,895 108,724 83,715 84,934 Level 2 Restricted equity securities 14,465 N/A 14,453 N/A N/A Loans held for investment 2,047,555 2,027,079 1,965,769 1,963,803 Level 3 Accrued interest receivable 7,679 7,679 7,376 7,376 Level 2 Other assets 90,407 90,407 91,064 91,064 Level 2 / Level 3 Financial liabilities: Deposits 2,755,995 2,521,735 2,684,281 2,517,856 Level 3 Subordinated notes and Federal Home Loan bank advances 29,566 29,890 29,532 30,477 Level 2 Other liabilities 1,816 1,816 1,842 1,842 Level 3 The methods and assumptions, not previously presented, used to estimate fair values are described as follows: (a) Cash and Due from Banks, Interest-Bearing Deposits in Financial Institutions For these short‑term instruments, the carrying amount is a reasonable estimate of fair value. (b) Restricted Equity Securities It is not practical to determine the fair value of restricted securities due to restrictions placed on their transferability. (c) Loans The fair value of loans was measured using an exit price notion. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. (d) Accrued Interest Receivable The carrying amounts of accrued interest approximate fair value. (e) Other Assets Included in other assets are bank owned life insurance and certain interest rate swap agreements. The fair values of interest rate swap agreements are based on independent pricing services that utilize pricing models with observable market inputs. For bank owned life insurance, the carrying amount is based on the cash surrender value and is a reasonable estimate of fair value. (f) Deposits The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounted cash flow models, using current market interest rates offered on certificates with similar remaining maturities. (g) Federal Home Loan Bank Advances and Subordinated Debt The fair value of fixed rate Federal Home Loan Bank Advances and subordinated notes is estimated using discounted cash flow models, using current market interest rates offered on certificates, advances and other borrowings with similar remaining maturities. (h) Other Liabilities Included in other liabilities are accrued interest payable and certain interest rate swap agreements. The fair values of interest rate swap agreements are based on independent pricing services that utilize pricing models with observable market inputs. The carrying amounts of accrued interest approximate fair value. (i) Off-Balance Sheet Instruments Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. (j) Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on estimating on and off‑balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, fixed assets are not considered financial instruments and their value has not been incorporated into the fair value estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements as of and for the period ended March 31, 2022 include CapStar Financial Holdings, Inc. and its wholly owned subsidiary, CapStar Bank (the “Bank”, together referred to as the “Company”). Significant intercompany transactions and accounts are eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and do not include all information and notes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. These unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes appearing in the 2021 Form 10-K. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting. The accounts of an acquired entity are included as of the date of acquisition, and any excess of purchase price over the fair value of the net assets acquired is capitalized as goodwill. Under this method, all identifiable assets acquired, including purchased loans, and liabilities assumed are recorded at fair value. The Company typically issues common stock and/or pays cash for an acquisition, depending on the terms of the acquisition agreement. The value of shares of common stock issued is determined based upon the market price of the stock as of the closing of the acquisition. |
Reclassifications | Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders' equity or net income. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, determination of impairment of intangible assets, including goodwill, the valuation of our investment portfolio, deferred tax assets and estimated liabilities. There have been no significant changes to the Company’s critical accounting policies and estimates as disclosed in the 2021 Form 10-K. |
Subsequent Events | Subsequent Events Accounting Standards Codification (“ASC”) 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all significant events or transactions that occurred after March 31, 2022 through the date of filing this Quarterly Report on Form 10-Q and determined that there were no events that required disclosure. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2022 and December 31, 2021 are summarized as follows (in thousands): March 31, 2022 December 31, 2021 Amortized Gross Gross Estimated Amortized Gross Gross Estimated Securities available-for-sale: U. S. government agency securities $ 16,617 $ — $ ( 765 ) $ 15,852 $ 11,550 $ 47 $ ( 94 ) $ 11,503 State and municipal securities 79,352 782 ( 5,087 ) 75,047 81,158 2,107 ( 705 ) 82,560 Mortgage-backed securities 326,297 156 ( 26,210 ) 300,243 300,398 2,008 ( 8,799 ) 293,607 Asset-backed securities 3,326 14 — 3,340 3,326 13 — 3,339 Other debt securities 66,187 659 ( 770 ) 66,076 67,104 1,514 ( 231 ) 68,387 Total $ 491,779 $ 1,611 $ ( 32,832 ) $ 460,558 $ 463,536 $ 5,689 $ ( 9,829 ) $ 459,396 Securities held-to-maturity: State and municipal securities $ 1,775 $ 16 $ — $ 1,791 $ 1,782 $ 48 $ — $ 1,830 Total $ 1,775 $ 16 $ — $ 1,791 $ 1,782 $ 48 $ — $ 1,830 |
Summary of Securities with Unrealized Losses and Length of Time Continuous Loss Positions | Securities with unrealized losses as of March 31, 2022 and December 31, 2021, and the length of time they were in continuous loss positions as of such dates are as follows (in thousands): Less than 12 months 12 months or more Total March 31, 2022 Estimated Gross Estimated Gross Estimated Gross U. S. government agency securities $ 10,311 $ ( 545 ) $ 2,519 $ ( 220 ) $ 12,830 $ ( 765 ) State and municipal securities 36,417 ( 3,246 ) 12,839 ( 1,841 ) 49,256 ( 5,087 ) Mortgage-backed securities 132,254 ( 7,024 ) 153,731 ( 19,186 ) 285,985 ( 26,210 ) Asset-backed securities — — — — — — Other debt securities 35,431 ( 770 ) — — 35,431 ( 770 ) Total temporarily impaired securities $ 214,413 $ ( 11,585 ) $ 169,089 $ ( 21,247 ) $ 383,502 $ ( 32,832 ) December 31, 2021 U. S. government agency securities $ 2,560 $ ( 20 ) $ 2,737 $ ( 74 ) $ 5,297 $ ( 94 ) State and municipal securities 15,309 ( 279 ) 12,768 ( 426 ) 28,077 ( 705 ) Mortgage-backed securities 155,805 ( 5,291 ) 75,934 ( 3,508 ) 231,739 ( 8,799 ) Asset-backed securities — — — — — Other debt securities 30,375 ( 231 ) — — 30,375 ( 231 ) Total temporarily impaired securities $ 204,049 $ ( 5,821 ) $ 91,439 $ ( 4,008 ) $ 295,488 $ ( 9,829 ) |
Summary of Sales, Maturities, Prepayments and Calls of Securities | Results from sales, maturities, prepayments and calls of securities available for sale were as follows (in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Proceeds $ 20,853 $ 23,446 Gross gains — 26 Gross losses — — |
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of securities at March 31, 2022, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Held-to-maturity Amortized Estimated Amortized Estimated Due in less than one year $ 14,000 $ 14,048 $ 514 $ 516 Due one to five years 68,801 68,643 1,261 1,275 Due five to ten years 63,159 60,140 — — Due beyond ten years 16,196 14,144 — — Mortgage-backed securities 326,297 300,243 — — Asset-backed securities 3,326 3,340 — — Total $ 491,779 $ 460,558 $ 1,775 $ 1,791 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Summary of Loans Held for Investment Portfolio | A summary of the loans held for investment portfolio as of March 31, 2022 and December 31, 2021 follows (in thousands): March 31, 2022 December 31, 2021 Commercial real estate $ 884,869 $ 825,284 Consumer real estate 327,416 326,412 Construction and land development 208,513 214,310 Commercial and industrial 499,719 497,615 Consumer 48,790 46,811 Other 78,248 55,337 Total 2,047,555 1,965,769 Allowance for loan losses ( 20,857 ) ( 21,698 ) Total loans, net $ 2,026,698 $ 1,944,071 |
Summary of Risk Category of Loans by Applicable Class of Loans | The following tables provides the risk category of loans by applicable class of loans as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 Pass Special Substandard Doubtful Total Impaired Total Commercial real estate $ 862,430 $ 12,835 $ 4,683 $ — $ 1,144 $ 881,092 Consumer real estate 314,983 626 536 — 856 317,001 Construction and land development 208,413 — — — 10 208,423 Commercial and industrial 471,407 4,642 21,149 70 248 497,516 Consumer 47,806 — 67 26 10 47,909 Other 77,877 — 79 — — 77,956 Purchased credit impaired 13,675 1,026 2,648 309 — 17,658 Total $ 1,996,591 $ 19,129 $ 29,162 $ 405 $ 2,268 $ 2,047,555 December 31, 2021 Commercial real estate $ 802,562 $ 12,921 $ 4,721 $ — $ 1,151 $ 821,355 Consumer real estate 312,662 475 712 — 909 314,758 Construction and land development 214,209 — — — 10 214,219 Commercial and industrial 468,278 9,811 16,952 73 250 495,364 Consumer 45,695 — 56 3 23 45,777 Other 54,959 — 76 — — 55,035 Purchased credit impaired 15,416 — 3,585 260 — 19,261 Total $ 1,913,781 $ 23,207 $ 26,102 $ 336 $ 2,343 $ 1,965,769 |
Summary of Changes and Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category | The following table details the changes in the ALL for the three month periods ended March 31, 2022 and 2021 (in thousands): Commercial Consumer Construction Commercial Consumer Other Total Three Months Ended March 31, 2022 Balance, beginning of period $ 7,124 $ 2,412 $ 3,769 $ 7,441 $ 397 $ 555 $ 21,698 Charged-off loans — — — — ( 81 ) ( 38 ) ( 119 ) Recoveries — — — — 57 5 62 Provision for loan losses ( 137 ) ( 198 ) ( 461 ) ( 235 ) 8 239 ( 784 ) Balance, end of period $ 6,987 $ 2,214 $ 3,308 $ 7,206 $ 381 $ 761 $ 20,857 Three Months Ended March 31, 2021 Balance, beginning of period $ 7,349 $ 1,831 $ 3,476 $ 9,708 $ 305 $ 576 $ 23,245 Charged-off loans — — — — ( 26 ) ( 36 ) ( 62 ) Recoveries 10 3 — 1 19 11 44 Provision for loan losses 329 ( 155 ) ( 113 ) 503 35 51 650 Balance, end of period $ 7,688 $ 1,679 $ 3,363 $ 10,212 $ 333 $ 602 $ 23,877 A breakdown of the ALL and the loan portfolio by loan category at March 31, 2022 and December 31, 2021 follows (in thousands): Commercial Consumer Construction Commercial Consumer Other Total March 31, 2022 Allowance for Loan Losses: Collectively evaluated for impairment $ 6,938 $ 2,213 $ 3,308 $ 7,141 $ 304 $ 761 $ 20,665 Individually evaluated for impairment — — — — — — — Purchased credit impaired 49 1 — 65 77 — 192 Balances, end of period $ 6,987 $ 2,214 $ 3,308 $ 7,206 $ 381 $ 761 $ 20,857 Loans: Collectively evaluated for impairment $ 879,948 $ 316,145 $ 208,413 $ 497,268 $ 47,899 $ 77,956 $ 2,027,629 Individually evaluated for impairment 1,144 856 10 248 10 — 2,268 Purchased credit impaired 3,777 10,415 90 2,203 881 292 17,658 Balances, end of period $ 884,869 $ 327,416 $ 208,513 $ 499,719 $ 48,790 $ 78,248 $ 2,047,555 December 31, 2021 Allowance for Loan Losses: Collectively evaluated for impairment $ 7,075 $ 2,211 $ 3,769 $ 7,376 $ 321 $ 555 $ 21,307 Individually evaluated for impairment — 200 — — — — 200 Purchased credit impaired 49 1 — 65 76 — 191 Balances, end of period $ 7,124 $ 2,412 $ 3,769 $ 7,441 $ 397 $ 555 $ 21,698 Loans: Collectively evaluated for impairment $ 820,204 $ 313,849 $ 214,209 $ 495,114 $ 45,754 $ 55,035 $ 1,944,165 Individually evaluated for impairment 1,151 909 10 250 23 — 2,343 Purchased credit impaired 3,929 11,654 91 2,251 1,034 302 19,261 Balances, end of period $ 825,284 $ 326,412 $ 214,310 $ 497,615 $ 46,811 $ 55,337 $ 1,965,769 |
Allocation of ALL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee | The following table presents the allocation of the ALL for each respective loan category with the corresponding percentage of the ALL in each category to total loans, net of deferred fees as of March 31, 2022 and December 31, 2021 (in thousands). PPP loans included in commercial and industrial loans in the below table do not have a corresponding ALL as they are fully guaranteed by the SBA: March 31, 2022 December 31, 2021 Amount Percent of total Amount Percent of total Commercial real estate $ 6,987 0.34 % $ 7,124 0.36 % Consumer real estate 2,214 0.11 2,412 0.12 Construction and land development 3,308 0.16 3,769 0.19 Commercial and industrial 7,206 0.35 7,441 0.38 Consumer 381 0.02 397 0.02 Other 761 0.04 555 0.03 Total allowance for loan losses $ 20,857 1.02 % $ 21,698 1.10 % |
Summary of Information Related to Impaired Loans Excluding Purchased Credit Impaired (PCI) Loans | The following table presents the Company’s impaired loans that were evaluated for specific loss allowance, excluding purchased credit impaired (“PCI”) loans, as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Recorded Unpaid Related Recorded Unpaid Related With no related allowance recorded: Commercial real estate $ 1,144 $ 1,138 $ — $ 1,151 $ 1,115 $ — Consumer real estate 856 882 — 255 281 — Construction and land development 10 10 — 10 11 — Commercial and industrial 248 293 — 250 298 — Consumer 10 10 — 23 23 — Other — — — — — — Subtotal 2,268 2,333 — 1,689 1,728 — With an allowance recorded: Commercial real estate — — — — — — Consumer real estate — — — 654 654 200 Construction and land development — — — — — — Commercial and industrial — — — — — — Consumer — — — — — — Other — — — — — — Subtotal — — — 654 654 200 Total $ 2,268 $ 2,333 $ — $ 2,343 $ 2,382 $ 200 The following table presents information related to the average recorded investment and interest income recognized on impaired loans, excluding PCI loans, for the three month periods ended March 31, 2022 and 2021 (in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Average Interest Average Interest With no related allowance recorded: Commercial real estate $ 1,148 $ 16 $ 1,185 $ 16 Consumer real estate 861 — 1,946 1 Construction and land development 10 — — — Commercial and industrial 249 — 65 — Consumer 11 — 7 — Other — — — — Subtotal 2,279 16 3,203 17 With an allowance recorded: Commercial real estate — — — — Consumer real estate — — — — Construction and land development — — 100 — Commercial and industrial — — 101 — Consumer — — — — Other — — — — Subtotal — — 201 — Total $ 2,279 $ 16 $ 3,404 $ 17 |
Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans | The following table presents the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021 by class of loans (in thousands): 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Loans Not Past Due Past Due Past Due Past Due Past Due Total March 31, 2022 Commercial real estate $ 24 $ — $ — $ 24 $ 881,068 $ 881,092 Consumer real estate 532 16 110 658 316,343 317,001 Construction and land development 334 — 10 344 208,079 208,423 Commercial and industrial 604 74 301 979 496,537 497,516 Consumer 195 31 84 310 47,599 47,909 Other 50 — — 50 77,906 77,956 Purchased credit impaired 585 30 571 1,186 16,472 17,658 Total $ 2,324 $ 151 $ 1,076 $ 3,551 $ 2,044,004 $ 2,047,555 December 31, 2021 Commercial real estate $ — $ — $ 1,115 $ 1,115 $ 820,240 $ 821,355 Consumer real estate 1,806 — 241 2,047 312,711 314,758 Construction and land development — — 11 11 214,208 214,219 Commercial and industrial 57 48 268 373 494,991 495,364 Consumer 164 170 26 360 45,417 45,777 Other — — — — 55,035 55,035 Purchased credit impaired 302 153 459 914 18,347 19,261 Total $ 2,329 $ 371 $ 2,120 $ 4,820 $ 1,960,949 $ 1,965,769 |
Schedule of Non-Accrual Loans, Past Due Loans over 89 Days and Accruing and Troubled Debt Restructurings (TDR) by Class of Loans | The following table presents the recorded investment in non-accrual loans, past due loans over 90 days and accruing and troubled debt restructurings (“TDR”) by class of loans as of March 31, 2022 and December 31, 2021 (in thousands): Non-Accrual Past Due Over 90 Days and Accruing Troubled Debt Restructurings March 31, 2022 Commercial real estate $ — $ — $ 1,138 Consumer real estate 1,033 47 647 Construction and land development 10 — — Commercial and industrial 463 — 62 Consumer 39 56 — Other — — — Purchased credit impaired 1,957 133 — Total $ 3,502 $ 236 $ 1,847 December 31, 2021 Commercial real estate $ — $ 1,115 $ 1,115 Consumer real estate 1,086 54 654 Construction and land development 11 — — Commercial and industrial 324 112 63 Consumer 31 10 — Other — — — Purchased credit impaired 1,806 89 — Total $ 3,258 $ 1,380 $ 1,832 |
Schedule of Activity in Purchased Credit Impaired Loans | The following table presents changes in the carrying value of PCI loans (in thousands) for the periods indicated: Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 19,261 $ 28,392 Change due to payments received and accretion ( 1,411 ) ( 1,317 ) Reclassification of discount to allowance for loan losses ( 192 ) — Balance at end of period $ 17,658 $ 27,075 The following table presents changes in the accretable yield for PCI loans (in thousands) for the periods indicated: Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 5,763 $ 4,068 Accretion ( 437 ) ( 392 ) Balance at end of period $ 5,326 $ 3,676 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Lease Costs | Lease costs were as follows (in thousands): Three Months Ended Three Months Ended March 31, 2022 March 31, 2021 Operating lease cost $ 533 $ 563 Short-term lease cost — — Variable lease cost — — Total lease cost $ 533 $ 563 |
Maturity Analysis of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows (in thousands): March 31, 2022 Lease payments due: 2022 $ 1,404 2023 1,834 2024 1,543 2025 1,549 2026 1,537 2027 and thereafter 6,252 Total undiscounted cash flows 14,119 Discount on cash flows ( 2,014 ) Total lease liability $ 12,105 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | The following were changes in accumulated other comprehensive loss by component, net of tax, for the periods ended March 31, 2022 and 2021 (in thousands): Unrealized Gains and Losses on Available for Sale Securities Three Months Ended March 31, 2022 Beginning balance $ ( 1,270 ) Other comprehensive loss before ( 20,064 ) Amounts reclassified from accumulated other — Net current period other comprehensive loss ( 20,064 ) Ending Balance $ ( 21,334 ) Three Months Ended March 31, 2021 Beginning balance $ 7,728 Other comprehensive loss before ( 9,406 ) Amounts reclassified from accumulated other ( 19 ) Net current period other comprehensive loss ( 9,425 ) Ending Balance $ ( 1,697 ) |
Summary of Amounts Reclassified out off Accumulated Other Comprehensive Income (Loss) | The following amounts were reclassified out of each component of accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021 (in thousands): Affected Line Item Details about Accumulated Other Three Months Ended March 31, in the Statement Where Comprehensive Income (Loss) Components 2022 2021 Net Income is Presented Realized gains on available- $ — $ 26 Net gain on sale of securities — ( 7 ) Income tax expense $ — $ 19 Net of tax |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Representing Credit Risk | The following table sets forth outstanding financial instruments whose contract amounts represent credit risk as of March 31, 2022 and December 31, 2021 (in thousands): Contract or notional amount March 31, 2022 December 31, 2021 Financial instruments whose contract amounts represent Unused commitments to extend credit $ 883,987 $ 831,075 Standby letters of credit 10,502 10,623 Total $ 894,489 $ 841,698 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Customer Related Interest Rate Swaps | A summary of the Company’s customer related interest rate swaps was as follows (in thousands): March 31, 2022 December 31, 2021 Notional Estimated Notional Estimated amount fair value amount fair value Interest rate swap agreements: Pay fixed/receive variable swaps $ 50,911 $ 1,131 $ 54,055 $ ( 1,594 ) Pay variable/receive fixed swaps 50,911 ( 1,131 ) 54,055 1,594 Total $ 101,822 $ — $ 108,110 $ — |
Summary of Net (Losses) Gains Relating to Mortgage Banking Derivative Instruments Included in Mortgage Banking Income | The net (losses) gains relating to mortgage banking derivative instruments included in mortgage banking income were as follows (in thousands): Three Months Ended March 31, 2022 Mortgage loan interest rate lock commitments $ ( 471 ) Mortgage-backed securities forward sales commitments 415 Total $ ( 56 ) |
Summary of Amount and Fair Value of Mortgage Banking Derivative Instruments Included in Consolidated Balance Sheets | The amount and fair value of mortgage banking derivatives included in the consolidated balance sheets were as follows (in thousands): March 31, 2022 December 31, 2021 Notional Estimated Notional Estimated amount fair value amount fair value Included in other assets: Mortgage loan interest rate lock commitments $ 69,454 $ 225 $ 50,281 $ 696 Mortgage-backed securities forward sales commitments 68,500 255 — — Included in other liabilities: Mortgage-backed securities forward sales commitments $ — $ — $ 43,000 $ ( 160 ) |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Company Recognized Stock-Based Compensation Expense | The Company has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows (in thousands): Three Months Ended March 31, 2022 2021 Stock-based compensation expense before income taxes $ 388 $ 349 Less: deferred tax benefit ( 101 ) ( 91 ) Reduction of net income $ 287 $ 258 |
Summary of Changes in Company's Nonvested Restricted Shares | A summary of the changes in the Company’s nonvested restricted shares for the three months ended March 31, 2022 follows: Weighted Average Restricted Grant Date Nonvested Shares Shares Fair Value Nonvested at beginning of period 177,020 $ 14.00 Granted 76,539 21.41 Vested ( 27,836 ) 16.10 Forfeited ( 6,864 ) 13.43 Nonvested at end of period 218,859 $ 16.34 |
Summary of Activity in Stock Options | A summary of the activity in stock options for the three months ended March 31, 2022 follows: Weighted Weighted Average Average Remaining Exercise Contractual Shares Price Term (years) Outstanding at beginning of period 130,245 $ 11.96 Granted — — Exercised — — Forfeited or expired — — Outstanding at end of period 130,245 $ 11.96 4.7 Fully vested and expected to vest 130,245 $ 11.96 4.7 Exercisable at end of period 113,578 $ 11.54 4.3 |
Information Related to Stock Options | Information related to stock options during each year follows: 2022 2021 Intrinsic value of options exercised $ — $ 34,700 Cash received from option exercises — — Tax benefit realized from option exercises — — Weighted average fair value of options granted — — |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Capital Amounts and Ratios | The Company’s and the Bank’s capital amounts and ratios as of March 31, 2022 and December 31, 2021 are presented in the following table (dollars in thousands). Actual Minimum capital Minimum to be Amount Ratio Amount Ratio Amount Ratio At March 31, 2022: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 392,629 15.60 % $ 201,333 8.0 % N/A N/A CapStar Bank 380,561 15.13 201,205 8.0 $ 251,507 10 % Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 341,887 13.58 151,000 6.0 N/A N/A CapStar Bank 359,385 14.29 150,904 6.0 201,205 8.00 Common equity Tier 1 capital to risk weighted CapStar Financial Holdings, Inc. 341,887 13.58 113,250 4.5 N/A N/A CapStar Bank 342,885 13.63 113,178 4.5 163,479 6.50 Tier I capital to average assets: CapStar Financial Holdings, Inc. 341,887 10.99 124,484 4.0 N/A N/A CapStar Bank 359,385 11.56 124,336 4.0 155,420 5.00 At December 31, 2021: Total capital to risk-weighted assets: CapStar Financial Holdings, Inc. $ 384,116 16.29 % $ 188,610 8.0 % N/A N/A CapStar Bank 370,919 15.74 188,471 8.0 $ 235,589 10.0 Tier I capital to risk-weighted assets: CapStar Financial Holdings, Inc. 332,567 14.11 141,458 6.0 N/A N/A CapStar Bank 348,902 14.81 141,354 6.0 188,471 8.0 Common equity Tier 1 capital to risk weighted CapStar Financial Holdings, Inc. 332,567 14.11 106,093 4.5 N/A N/A CapStar Bank 332,402 14.11 106,015 4.5 153,133 6.5 Tier I capital to average assets: CapStar Financial Holdings, Inc. 332,567 10.69 124,437 4.0 N/A N/A CapStar Bank 348,902 11.23 124,246 4.0 155,308 5.0 (1) For the calendar year 2022, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5 % to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. (2) For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | The following is a summary of the basic and diluted earnings per share calculation for the three and three month periods ended March 31, 2022 and 2021 (in thousands except share and per share data): Three Months Ended March 31, 2022 2021 Basic net income per share calculation: Numerator – Net income $ 10,673 $ 11,030 Denominator – Average common shares outstanding 22,198,339 22,045,501 Basic net income per share $ 0.48 $ 0.50 Diluted net income per share calculation: Numerator – Net income $ 10,673 $ 11,030 Denominator – Average common shares outstanding 22,198,339 22,045,501 Dilutive shares contingently issuable 56,305 31,099 Average diluted common shares outstanding 22,254,644 22,076,600 Diluted net income per share $ 0.48 $ 0.50 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair value measurements at March 31, 2022 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U. S. government agency securities $ 15,852 $ — $ 15,852 $ — State and municipal securities 75,047 — 75,047 — Mortgage-backed securities 300,243 — 300,243 — Asset-backed securities 3,340 — 3,340 — Other debt securities 66,076 — 66,076 — Loans held for sale 38,502 — 38,502 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 1,131 — 1,131 — Mortgage loan interest rate lock commitments 225 — — 225 Mortgage-backed securities forward sales commitments 255 — 255 — Liabilities: Derivative liabilities: Non-hedging derivatives: Derivative Liabilities - customer related ( 1,131 ) — ( 1,131 ) — Fair value measurements at December 31, 2021 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (Level 1) (Level 2) (Level 3) Assets: Securities available-for-sale: U. S. government agency securities $ 11,503 $ — $ 11,503 $ — State and municipal securities 82,560 — 82,560 — Mortgage-backed securities 293,607 — 293,607 — Asset-backed securities 3,339 — 3,339 — Other debt securities 68,387 — 68,387 — Loans held for sale 37,306 — 37,306 — Derivative assets: Non-hedging derivatives: Interest rate swaps - customer related 1,594 — 1,594 — Mortgage loan interest rate lock commitments 696 — — 696 Liabilities: Derivative liabilities: Non-hedging derivatives: Interest rate swaps - customer related ( 1,594 ) — ( 1,594 ) — Mortgage-backed securities forward sales commitments ( 160 ) — ( 160 ) — |
Reconciliation of Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 and 2021 (in thousands): Mortgage Loan Interest Rate Lock Commitments 2022 2021 Balance of recurring Level 3 assets at January 1st $ 696 $ 2,607 Total gains or losses for the period: Included in mortgage banking income ( 471 ) ( 1,805 ) Balance of recurring Level 3 assets at March 31st $ 225 $ 802 |
Summary of Quantitative Information About Level 3 Fair Value Measurements for Assets Measured at Fair Value on Recurring and Non-recurring Basis | The following table presents quantitative information about recurring Level 3 fair value measurements (dollars in thousands): Range Fair Valuation (Weighted- March 31, 2022 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 225 Consensus pricing Origination pull-through rate 77 % - 100 % ( 93 %) Range Fair Valuation (Weighted- December 31, 2021 Value Technique(s) Unobservable Input(s) Average) Assets: Non-hedging derivatives: Mortgage loan interest rate lock commitments $ 696 Consensus pricing Origination pull-through rate 60 % - 98 % ( 80 %) The following table presents quantitative information about December 31, 2021 Level 3 fair value measurements for assets measured at fair value on a non-recurring basis (dollars in thousands): Range Fair Valuation (Weighted- December 31, 2021 Value Technique(s) Unobservable Input(s) Average) Impaired loans: Consumer real estate $ 454 Sales comparison approach Appraisal discounts 10 % |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | There were no assets measured at fair value on a nonrecurring basis as of March 31, 2022. Assets measured at fair value on a nonrecurring basis as of December 31, 2021 are summarized below (in thousands). Fair value measurements at December 31, 2021 Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying assets inputs inputs Value (level 1) (level 2) (level 3) Assets: Impaired loans: Consumer real estate $ 454 $ — $ — $ 454 |
Summary of Carrying Value and Fair Values of the Bank's Financial Instruments | Fair Value of Financial Instruments The carrying value and estimated fair values of the Bank’s financial instruments at March 31, 2022 and December 31, 2021 were as follows (in thousands): March 31, 2022 December 31, 2021 Carrying Carrying Fair value amount Fair value amount Fair value level of input Financial assets: Cash and due from banks, interest-bearing deposits in $ 336,081 $ 336,081 $ 395,225 $ 395,225 Level 1 Federal funds sold 19,900 19,900 19,900 19,900 Level 1 Securities available-for-sale 460,558 460,558 459,396 459,396 Level 2 Securities held-to-maturity 1,775 1,791 1,782 1,830 Level 2 Loans held for sale 106,895 108,724 83,715 84,934 Level 2 Restricted equity securities 14,465 N/A 14,453 N/A N/A Loans held for investment 2,047,555 2,027,079 1,965,769 1,963,803 Level 3 Accrued interest receivable 7,679 7,679 7,376 7,376 Level 2 Other assets 90,407 90,407 91,064 91,064 Level 2 / Level 3 Financial liabilities: Deposits 2,755,995 2,521,735 2,684,281 2,517,856 Level 3 Subordinated notes and Federal Home Loan bank advances 29,566 29,890 29,532 30,477 Level 2 Other liabilities 1,816 1,816 1,842 1,842 Level 3 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Acquisition related expenses | $ 0 | $ 67 | |
Goodwill | $ 41,068 | $ 41,068 |
Acquisition - Schedule of Consi
Acquisition - Schedule of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total cost of acquisition | ||
Goodwill recorded related to acquisition | $ 41,068 | $ 41,068 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities available for sale [Abstract] | ||
Amortized Cost | $ 491,779 | $ 463,536 |
Gross unrealized gains | 1,611 | 5,689 |
Gross unrealized (losses) | (32,832) | (9,829) |
Estimated fair value | 460,558 | 459,396 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 1,775 | 1,782 |
Gross unrealized gains | 16 | 48 |
Estimated fair value | 1,791 | 1,830 |
U. S. government agency securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 16,617 | 11,550 |
Gross unrealized gains | 0 | 47 |
Gross unrealized (losses) | (765) | (94) |
Estimated fair value | 15,852 | 11,503 |
State and municipal securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 79,352 | 81,158 |
Gross unrealized gains | 782 | 2,107 |
Gross unrealized (losses) | (5,087) | (705) |
Estimated fair value | 75,047 | 82,560 |
Securities held to maturity [Abstract] | ||
Amortized Cost | 1,775 | 1,782 |
Gross unrealized gains | 16 | 48 |
Estimated fair value | 1,791 | 1,830 |
Mortgage-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 326,297 | 300,398 |
Gross unrealized gains | 156 | 2,008 |
Gross unrealized (losses) | (26,210) | (8,799) |
Estimated fair value | 300,243 | 293,607 |
Asset-backed securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 3,326 | 3,326 |
Gross unrealized gains | 14 | |
Gross unrealized (losses) | 0 | |
Estimated fair value | 3,340 | 3,339 |
Other debt securities | ||
Securities available for sale [Abstract] | ||
Amortized Cost | 66,187 | 67,104 |
Gross unrealized gains | 659 | 1,514 |
Gross unrealized (losses) | (770) | (231) |
Estimated fair value | $ 66,076 | $ 68,387 |
Securities - Summary of Securit
Securities - Summary of Securities with Unrealized Losses and Length of Time Continuous Loss Positions (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Estimated fair value | $ 214,413 | $ 204,049 |
Less than 12 months, Gross unrealized losses | (11,585) | (5,821) |
12 months or more, Estimated fair value | 169,089 | 91,439 |
12 months or more, Gross unrealized losses | (21,247) | (4,008) |
Total, Estimated fair value | 383,502 | 295,488 |
Total, Gross unrealized losses | (32,832) | (9,829) |
U. S. government agency securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Estimated fair value | 10,311 | 2,560 |
Less than 12 months, Gross unrealized losses | (545) | (20) |
12 months or more, Estimated fair value | 2,519 | 2,737 |
12 months or more, Gross unrealized losses | (220) | (74) |
Total, Estimated fair value | 12,830 | 5,297 |
Total, Gross unrealized losses | (765) | (94) |
State and municipal securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Estimated fair value | 36,417 | 15,309 |
Less than 12 months, Gross unrealized losses | (3,246) | (279) |
12 months or more, Estimated fair value | 12,839 | 12,768 |
12 months or more, Gross unrealized losses | (1,841) | (426) |
Total, Estimated fair value | 49,256 | 28,077 |
Total, Gross unrealized losses | (5,087) | (705) |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Estimated fair value | 132,254 | 155,805 |
Less than 12 months, Gross unrealized losses | (7,024) | (5,291) |
12 months or more, Estimated fair value | 153,731 | 75,934 |
12 months or more, Gross unrealized losses | (19,186) | (3,508) |
Total, Estimated fair value | 285,985 | 231,739 |
Total, Gross unrealized losses | (26,210) | (8,799) |
Other debt securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Estimated fair value | 35,431 | 30,375 |
Less than 12 months, Gross unrealized losses | (770) | (231) |
Total, Estimated fair value | 35,431 | 30,375 |
Total, Gross unrealized losses | $ (770) | $ (231) |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Millions | Mar. 31, 2022USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Gross unrealized losses in investment securities portfolio | $ 32.8 |
Public Deposits, Derivative Positions and Federal Home Loan Bank Advances | |
Schedule Of Available For Sale Securities [Line Items] | |
Market value of securities | $ 197.6 |
Securities - Summary of Sales,
Securities - Summary of Sales, Maturities, Prepayments and Calls of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 20,853 | $ 23,446 |
Gross gains | 0 | 26 |
Gross losses | $ 0 | $ 0 |
Securities - Summary of Amort_2
Securities - Summary of Amortized Cost and Fair Value of Debt and Equity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale, Amortized cost [Abstract] | ||
Due in less than one year | $ 14,000 | |
Due one to five years | 68,801 | |
Due five to ten years | 63,159 | |
Due beyond ten years | 16,196 | |
Amortized Cost | 491,779 | $ 463,536 |
Available-for-sale, Estimated fair value [Abstract] | ||
Due in less than one year | 14,048 | |
Due one to five years | 68,643 | |
Due five to ten years | 60,140 | |
Due beyond ten years | 14,144 | |
Estimated fair value | 460,558 | 459,396 |
Held-to-maturity, Amortized cost [Abstract] | ||
Due in less than one year | 514 | |
Due one to five years | 1,261 | |
Amortized Cost | 1,775 | 1,782 |
Securities held to maturity [Abstract] | ||
Due in less than one year | 516 | |
Due one to five years | 1,275 | |
Estimated fair value | 1,791 | 1,830 |
Mortgage-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized cost | 326,297 | |
Amortized Cost | 326,297 | 300,398 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | 300,243 | |
Estimated fair value | 300,243 | 293,607 |
Asset-backed securities | ||
Available-for-sale, Amortized cost [Abstract] | ||
Amortized Cost | 3,326 | 3,326 |
Available-for-sale, Estimated fair value [Abstract] | ||
Estimated fair value | $ 3,340 | $ 3,339 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans Held for Investment Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 2,047,555 | $ 1,965,769 |
Allowance for loan losses | (20,857) | (21,698) |
Loans, net | 2,026,698 | 1,944,071 |
Commercial real estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | 884,869 | 825,284 |
Consumer real estate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | 327,416 | 326,412 |
Construction and land development | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | 208,513 | 214,310 |
Commercial and industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | 499,719 | 497,615 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | 48,790 | 46,811 |
Other | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 78,248 | $ 55,337 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)Contract | Mar. 31, 2021USD ($)Contract | Dec. 31, 2021USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | |||
Outstanding balance of loans originated under PPP | $ 2,026,698,000 | $ 1,944,071,000 | |
Interest income recognized on a cash basis for impaired loans | 0 | $ 0 | |
Investment in TDR | 1,800,000 | 1,800,000 | |
Specific allowance related to loans | 0 | 200,000 | |
Additional commitments related to TDR | $ 0 | 0 | |
New TDR identified during the period | Contract | 0 | 0 | |
TDR, payment default within twelve months | Contract | 0 | 0 | |
Loan period considered as payment default | 30 days | ||
Impact of PCI loans on ALL | $ 0 | ||
Troubled Debt Restructurings | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Specific allowance related to loans | 0 | 0 | |
Commercial and industrial | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Specific allowance related to loans | $ 0 | ||
Payroll Protection Program | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Debt instrument, interest rate | 1.00% | ||
Unamortized fees | $ 200,000 | 600 | |
Fees recognized as income | $ 500 | $ 1,800,000 | |
Payroll Protection Program | Minimum | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Debt instrument, term | 2 years | ||
Percentage of loan processing fee | 1.00% | ||
Payroll Protection Program | Maximum | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Debt instrument, term | 5 years | ||
Percentage of loan processing fee | 5.00% | ||
Payroll Protection Program | Commercial and industrial | |||
Loans And Leases Receivable Disclosure [Line Items] | |||
Outstanding balance of loans originated under PPP | $ 6,500,000 | $ 26,500,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Applicable Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Purchased credit impaired | $ 17,658 | $ 19,261 |
Total loans | 2,047,555 | 1,965,769 |
Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 881,092 | 821,355 |
Purchased credit impaired | 3,777 | 3,929 |
Total loans | 884,869 | 825,284 |
Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 317,001 | 314,758 |
Purchased credit impaired | 10,415 | 11,654 |
Total loans | 327,416 | 326,412 |
Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 208,423 | 214,219 |
Purchased credit impaired | 90 | 91 |
Total loans | 208,513 | 214,310 |
Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 497,516 | 495,364 |
Purchased credit impaired | 2,203 | 2,251 |
Total loans | 499,719 | 497,615 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 47,909 | 45,777 |
Purchased credit impaired | 881 | 1,034 |
Total loans | 48,790 | 46,811 |
Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 77,956 | 55,035 |
Purchased credit impaired | 292 | 302 |
Total loans | 78,248 | 55,337 |
Purchased credit impaired | ||
Financing Receivable Recorded Investment [Line Items] | ||
Purchased credit impaired | 17,658 | 19,261 |
Total Impaired Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,268 | 2,343 |
Total Impaired Loans | Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 1,144 | 1,151 |
Total Impaired Loans | Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 856 | 909 |
Total Impaired Loans | Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 10 | 10 |
Total Impaired Loans | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 248 | 250 |
Total Impaired Loans | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 10 | 23 |
Performing Financial Instruments | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,996,591 | 1,913,781 |
Performing Financial Instruments | Pass | Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 862,430 | 802,562 |
Performing Financial Instruments | Pass | Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 314,983 | 312,662 |
Performing Financial Instruments | Pass | Construction and land development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 208,413 | 214,209 |
Performing Financial Instruments | Pass | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 471,407 | 468,278 |
Performing Financial Instruments | Pass | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 47,806 | 45,695 |
Performing Financial Instruments | Pass | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 77,877 | 54,959 |
Performing Financial Instruments | Pass | Purchased credit impaired | ||
Financing Receivable Recorded Investment [Line Items] | ||
Purchased credit impaired | 13,675 | 15,416 |
Performing Financial Instruments | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 19,129 | 23,207 |
Performing Financial Instruments | Special Mention | Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 12,835 | 12,921 |
Performing Financial Instruments | Special Mention | Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 626 | 475 |
Performing Financial Instruments | Special Mention | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 4,642 | 9,811 |
Performing Financial Instruments | Special Mention | Purchased credit impaired | ||
Financing Receivable Recorded Investment [Line Items] | ||
Purchased credit impaired | 1,026 | |
Performing Financial Instruments | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 29,162 | 26,102 |
Performing Financial Instruments | Substandard | Commercial real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 4,683 | 4,721 |
Performing Financial Instruments | Substandard | Consumer real estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 536 | 712 |
Performing Financial Instruments | Substandard | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 21,149 | 16,952 |
Performing Financial Instruments | Substandard | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 67 | 56 |
Performing Financial Instruments | Substandard | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 79 | 76 |
Performing Financial Instruments | Substandard | Purchased credit impaired | ||
Financing Receivable Recorded Investment [Line Items] | ||
Purchased credit impaired | 2,648 | 3,585 |
Performing Financial Instruments | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 405 | 336 |
Performing Financial Instruments | Doubtful | Commercial and industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 70 | 73 |
Performing Financial Instruments | Doubtful | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans excluding purchased credit impaired | 26 | 3 |
Performing Financial Instruments | Doubtful | Purchased credit impaired | ||
Financing Receivable Recorded Investment [Line Items] | ||
Purchased credit impaired | $ 309 | $ 260 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | $ 21,698 | $ 23,245 |
Charged-off loans | (119) | (62) |
Recoveries | 62 | 44 |
Provision for loan losses | (784) | 650 |
Ending Balance | 20,857 | 23,877 |
Commercial real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | 7,124 | 7,349 |
Recoveries | 10 | |
Provision for loan losses | (137) | 329 |
Ending Balance | 6,987 | 7,688 |
Consumer real estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | 2,412 | 1,831 |
Recoveries | 3 | |
Provision for loan losses | (198) | (155) |
Ending Balance | 2,214 | 1,679 |
Construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | 3,769 | 3,476 |
Provision for loan losses | (461) | (113) |
Ending Balance | 3,308 | 3,363 |
Commercial and industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | 7,441 | 9,708 |
Recoveries | 1 | |
Provision for loan losses | (235) | 503 |
Ending Balance | 7,206 | 10,212 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | 397 | 305 |
Charged-off loans | (81) | (26) |
Recoveries | 57 | 19 |
Provision for loan losses | 8 | 35 |
Ending Balance | 381 | 333 |
Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Beginning Balance | 555 | 576 |
Charged-off loans | (38) | (36) |
Recoveries | 5 | 11 |
Provision for loan losses | 239 | 51 |
Ending Balance | $ 761 | $ 602 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Breakdown of Allowance for Loan Losses and Loan Portfolio by Loan Category (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | $ 20,665 | $ 21,307 | ||
Individually evaluated for impairment | 200 | |||
Purchased credit impaired | 192 | 191 | ||
Allowance for Loan Losses, Ending Balance | 20,857 | 21,698 | $ 23,877 | $ 23,245 |
Loans: | ||||
Collectively evaluated for impairment | 2,027,629 | 1,944,165 | ||
Individually evaluated for impairment | 2,268 | 2,343 | ||
Purchased credit impaired | 17,658 | 19,261 | ||
Total | 2,047,555 | 1,965,769 | ||
Commercial real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 6,938 | 7,075 | ||
Purchased credit impaired | 49 | 49 | ||
Allowance for Loan Losses, Ending Balance | 6,987 | 7,124 | 7,688 | 7,349 |
Loans: | ||||
Collectively evaluated for impairment | 879,948 | 820,204 | ||
Individually evaluated for impairment | 1,144 | 1,151 | ||
Purchased credit impaired | 3,777 | 3,929 | ||
Total | 884,869 | 825,284 | ||
Consumer real estate | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 2,213 | 2,211 | ||
Individually evaluated for impairment | 200 | |||
Purchased credit impaired | 1 | 1 | ||
Allowance for Loan Losses, Ending Balance | 2,214 | 2,412 | 1,679 | 1,831 |
Loans: | ||||
Collectively evaluated for impairment | 316,145 | 313,849 | ||
Individually evaluated for impairment | 856 | 909 | ||
Purchased credit impaired | 10,415 | 11,654 | ||
Total | 327,416 | 326,412 | ||
Construction and land development | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 3,308 | 3,769 | ||
Allowance for Loan Losses, Ending Balance | 3,308 | 3,769 | 3,363 | 3,476 |
Loans: | ||||
Collectively evaluated for impairment | 208,413 | 214,209 | ||
Individually evaluated for impairment | 10 | 10 | ||
Purchased credit impaired | 90 | 91 | ||
Total | 208,513 | 214,310 | ||
Commercial and industrial | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 7,141 | 7,376 | ||
Purchased credit impaired | 65 | 65 | ||
Allowance for Loan Losses, Ending Balance | 7,206 | 7,441 | 10,212 | 9,708 |
Loans: | ||||
Collectively evaluated for impairment | 497,268 | 495,114 | ||
Individually evaluated for impairment | 248 | 250 | ||
Purchased credit impaired | 2,203 | 2,251 | ||
Total | 499,719 | 497,615 | ||
Consumer | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 304 | 321 | ||
Purchased credit impaired | 77 | 76 | ||
Allowance for Loan Losses, Ending Balance | 381 | 397 | 333 | 305 |
Loans: | ||||
Collectively evaluated for impairment | 47,899 | 45,754 | ||
Individually evaluated for impairment | 10 | 23 | ||
Purchased credit impaired | 881 | 1,034 | ||
Total | 48,790 | 46,811 | ||
Other | ||||
Allowance for Loan Losses: | ||||
Collectively evaluated for impairment | 761 | 555 | ||
Allowance for Loan Losses, Ending Balance | 761 | 555 | $ 602 | $ 576 |
Loans: | ||||
Collectively evaluated for impairment | 77,956 | 55,035 | ||
Purchased credit impaired | 292 | 302 | ||
Total | $ 78,248 | $ 55,337 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Allocation of ALL with Corresponding Percentage of Loans in Each Category to Total Loans, Net of Deferred Fee (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 20,857 | $ 21,698 | $ 23,877 | $ 23,245 |
Allowance for loan and lease losses, Percentage of total loans | 1.02% | 1.10% | ||
Commercial real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 6,987 | $ 7,124 | 7,688 | 7,349 |
Allowance for loan and lease losses, Percentage of total loans | 0.34% | 0.36% | ||
Consumer real estate | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 2,214 | $ 2,412 | 1,679 | 1,831 |
Allowance for loan and lease losses, Percentage of total loans | 0.11% | 0.12% | ||
Construction and land development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 3,308 | $ 3,769 | 3,363 | 3,476 |
Allowance for loan and lease losses, Percentage of total loans | 0.16% | 0.19% | ||
Commercial and industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 7,206 | $ 7,441 | 10,212 | 9,708 |
Allowance for loan and lease losses, Percentage of total loans | 0.35% | 0.38% | ||
Consumer | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 381 | $ 397 | 333 | 305 |
Allowance for loan and lease losses, Percentage of total loans | 0.02% | 0.02% | ||
Other | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Allowance for loan and leases losses, Amount | $ 761 | $ 555 | $ 602 | $ 576 |
Allowance for loan and lease losses, Percentage of total loans | 0.04% | 0.03% |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Information Related to Impaired Loans, Excluding Purchased Credit Impaired (PCI) Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | $ 2,268 | $ 1,689 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 2,333 | 1,728 |
Impaired loans with an allowance recorded, Recorded investment | 0 | 654 |
Impaired loans with an allowance recorded, Unpaid principal balance | 0 | 654 |
Impaired loans with an allowance recorded, Related allowance | 0 | 200 |
Recorded investment | 2,268 | 2,343 |
Unpaid principal balance | 2,333 | 2,382 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 1,144 | 1,151 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 1,138 | 1,115 |
Consumer real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 856 | 255 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 882 | 281 |
Impaired loans with an allowance recorded, Recorded investment | 654 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 654 | |
Impaired loans with an allowance recorded, Related allowance | 200 | |
Construction and land development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 10 | 10 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 10 | 11 |
Commercial and industrial | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 248 | 250 |
Impaired loans with no related allowance recorded, Unpaid principal balance | 293 | 298 |
Impaired loans with an allowance recorded, Recorded investment | 0 | |
Impaired loans with an allowance recorded, Unpaid principal balance | 0 | |
Impaired loans with an allowance recorded, Related allowance | 0 | |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Recorded investment | 10 | 23 |
Impaired loans with no related allowance recorded, Unpaid principal balance | $ 10 | $ 23 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Average Recorded Investment and Interest Income Recognized on Impaired Loans, Excluding PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Average recorded investment | $ 2,279 | $ 3,203 |
Impaired loans with no related allowance recorded, Interest income recognized | 16 | 17 |
Impaired loans with an allowance recorded, Average recorded investment | 201 | |
Average recorded investment | 2,279 | 3,404 |
Interest income recognized | 16 | 17 |
Commercial real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Average recorded investment | 1,148 | 1,185 |
Impaired loans with no related allowance recorded, Interest income recognized | 16 | 16 |
Consumer real estate | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Average recorded investment | 861 | 1,946 |
Impaired loans with no related allowance recorded, Interest income recognized | 1 | |
Construction and land development | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Average recorded investment | 10 | |
Impaired loans with an allowance recorded, Average recorded investment | 100 | |
Commercial and industrial | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Average recorded investment | 249 | 65 |
Impaired loans with an allowance recorded, Average recorded investment | 101 | |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance recorded, Average recorded investment | $ 11 | $ 7 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Schedule of Aging of Recorded Investment in Past-due Loans, by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 3,551 | $ 4,820 |
Loans Not Past Due | 2,044,004 | 1,960,949 |
Total purchased credit impaired | 17,658 | 19,261 |
Total | 2,047,555 | 1,965,769 |
Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 24 | 1,115 |
Loans Not Past Due | 881,068 | 820,240 |
Total loans excluding purchased credit impaired | 881,092 | 821,355 |
Total purchased credit impaired | 3,777 | 3,929 |
Total | 884,869 | 825,284 |
Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 658 | 2,047 |
Loans Not Past Due | 316,343 | 312,711 |
Total loans excluding purchased credit impaired | 317,001 | 314,758 |
Total purchased credit impaired | 10,415 | 11,654 |
Total | 327,416 | 326,412 |
Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 344 | 11 |
Loans Not Past Due | 208,079 | 214,208 |
Total loans excluding purchased credit impaired | 208,423 | 214,219 |
Total purchased credit impaired | 90 | 91 |
Total | 208,513 | 214,310 |
Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 979 | 373 |
Loans Not Past Due | 496,537 | 494,991 |
Total loans excluding purchased credit impaired | 497,516 | 495,364 |
Total purchased credit impaired | 2,203 | 2,251 |
Total | 499,719 | 497,615 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 310 | 360 |
Loans Not Past Due | 47,599 | 45,417 |
Total loans excluding purchased credit impaired | 47,909 | 45,777 |
Total purchased credit impaired | 881 | 1,034 |
Total | 48,790 | 46,811 |
Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 50 | |
Loans Not Past Due | 77,906 | 55,035 |
Total loans excluding purchased credit impaired | 77,956 | 55,035 |
Total purchased credit impaired | 292 | 302 |
Total | 78,248 | 55,337 |
Purchased credit impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,186 | 914 |
Loans Not Past Due | 16,472 | 18,347 |
Total purchased credit impaired | 17,658 | 19,261 |
30 - 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,324 | 2,329 |
30 - 59 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 24 | |
30 - 59 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 532 | 1,806 |
30 - 59 Days Past Due | Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 334 | |
30 - 59 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 604 | 57 |
30 - 59 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 195 | 164 |
30 - 59 Days Past Due | Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 50 | |
30 - 59 Days Past Due | Purchased credit impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 585 | 302 |
60 - 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 151 | 371 |
60 - 89 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 16 | |
60 - 89 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 74 | 48 |
60 - 89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 31 | 170 |
60 - 89 Days Past Due | Purchased credit impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 30 | 153 |
Greater than 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,076 | 2,120 |
Greater than 89 Days Past Due | Commercial real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,115 | |
Greater than 89 Days Past Due | Consumer real estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 110 | 241 |
Greater than 89 Days Past Due | Construction and land development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 10 | 11 |
Greater than 89 Days Past Due | Commercial and industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 301 | 268 |
Greater than 89 Days Past Due | Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 84 | 26 |
Greater than 89 Days Past Due | Purchased credit impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 571 | $ 459 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans, Past Due Loans over 89 Days and Accruing and Troubled Debt Restructurings (TDR) by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | $ 3,502 | $ 3,258 |
Past Due Over 89 Days and Accruing | 236 | 1,380 |
Troubled Debt Restructurings | 1,847 | 1,832 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 0 | |
Past Due Over 89 Days and Accruing | 0 | 1,115 |
Troubled Debt Restructurings | 1,138 | 1,115 |
Consumer real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 1,033 | 1,086 |
Past Due Over 89 Days and Accruing | 47 | 54 |
Troubled Debt Restructurings | 647 | 654 |
Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 10 | 11 |
Past Due Over 89 Days and Accruing | 0 | |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 463 | 324 |
Past Due Over 89 Days and Accruing | 112 | |
Troubled Debt Restructurings | 62 | 63 |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 39 | 31 |
Past Due Over 89 Days and Accruing | 56 | 10 |
Purchased credit impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non-Accrual | 1,957 | 1,806 |
Past Due Over 89 Days and Accruing | $ 133 | $ 89 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Schedule of Activity in Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | ||
Balance, beginning , carrying value | $ 19,261 | $ 28,392 |
Change due to payments received and accretion | (1,411) | (1,317) |
Reclassification of discount to allowance for loan losses | (192) | |
Balance, ending, carrying value | 17,658 | 27,075 |
Accretable Yield For PCI Loans | ||
Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement Schedule [Line Items] | ||
Balance, beginning , carrying value | 5,763 | 4,068 |
Accretion | (437) | (392) |
Balance, ending, carrying value | $ 5,326 | $ 3,676 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Operating lease, liability | $ 12,105,000 | |
Operating lease, right-of-use asset | $ 11,200,000 | |
Operating lease, weighted average remaining lease term | 8 years 8 months 12 days | |
Operating lease, weighted average discount rate, percent | 3.36% | |
Sale and leaseback transaction | $ 0 | $ 0 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Operating lease cost | $ 533 | $ 563 |
Short-term lease cost | 0 | 0 |
Variable lease cost | 0 | 0 |
Total lease cost | $ 533 | $ 563 |
Premises and Equipment - Maturi
Premises and Equipment - Maturity Analysis of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Lease payments due: | |
2022 | $ 1,404 |
2023 | 1,834 |
2024 | 1,543 |
2025 | 1,549 |
2026 | 1,537 |
2027 and thereafter | 6,252 |
Total undiscounted cash flows | 14,119 |
Discount on cash flows | (2,014) |
Operating lease, liability | $ 12,105 |
Short Term Borrowings And Lon_2
Short Term Borrowings And Long-Term Debt - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)BasisPoint | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Outstanding advances | $ 0 | $ 0 |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Proceeds from issuance of subordinated notes, net of debt issuance expense | 30 | |
Debt issuance costs | $ 0.6 | |
Maturity date | Jun. 30, 2030 | |
Redemption date | Jun. 30, 2025 | |
Fixed interest rate | 5.25% | |
Debt instrument, frequency of periodic interest payment | quarterly | |
Debt instrument, description of variable rate basis | The notes have a fixed interest rate of 5.25% per annum for the first five years. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 513 basis points. | |
Carrying value of subordinated notes | $ 29.6 | $ 29.5 |
Subordinated Notes | SOFR | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate plus basis point | BasisPoint | 513 | |
Investment securities, FHLB stock and commercial and residential real estate mortgage loans | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank Advances Collateralized Investment Securities Value | $ 2.2 | |
Mortgage loans collateralized amount | 214.9 | |
Amount of available credit | $ 154.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes In Accumulated Other Comprehensive Income (Loss) By Component, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | $ 380,094 | $ 343,486 |
Other comprehensive loss | (20,064) | (9,425) |
Ending balance | 368,917 | 343,944 |
Unrealized Gains and Losses on Available for Sale Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (1,270) | 7,728 |
Other comprehensive loss before reclassification, net of tax | (20,064) | (9,406) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | (19) |
Other comprehensive loss | (20,064) | (9,425) |
Ending balance | (21,334) | (1,697) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning balance | (1,270) | 7,728 |
Other comprehensive loss | (20,064) | (9,425) |
Ending balance | $ (21,334) | $ (1,697) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||
Net gain on sale of securities | $ 0 | $ 26 |
Interest expense - Federal Home Loan Bank advances | 0 | (12) |
Income tax expense | 2,604 | 3,103 |
Net income | 10,673 | 11,030 |
Reclassification out of Accumulated Other Comprehensive Income | Realized Gains on Available for Sale Securities | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | ||
Net gain on sale of securities | 0 | 26 |
Income tax expense | 0 | (7) |
Net income | $ 0 | $ 19 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes [Line Items] | ||
Effective tax rate | 19.60% | 22.00% |
Federal statutory income tax rate | 21.00% | |
Tennessee | State and Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Excise tax rate | 6.50% |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Financial Instruments Representing Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unused commitments to extend credit | $ 883,987 | $ 831,075 |
Standby letters of credit | 10,502 | 10,623 |
Total | $ 894,489 | $ 841,698 |
Derivatives - Summary of Custom
Derivatives - Summary of Customer Related Interest Rate Swaps (Details) - Interest Rate Swap [Member] - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments [Line Items] | ||
Notional | $ 101,822,000 | $ 108,110,000 |
Estimated | 0 | 0 |
Pay Fixed And Receive Variable Swaps [Member] | ||
Derivative Instruments [Line Items] | ||
Notional | 50,911,000 | 54,055,000 |
Estimated | 1,131,000 | (1,594,000) |
Pay Variable And Receive Fixed Swaps [Member] | ||
Derivative Instruments [Line Items] | ||
Notional | 50,911,000 | 54,055,000 |
Estimated | $ (1,131,000) | $ 1,594,000 |
Derivatives - Summary of Net (L
Derivatives - Summary of Net (Losses) Gains Relating to Mortgage Banking Derivative Instruments Included in Mortgage Banking Income (Details) - Mortgage Banking Derivative Instrument [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivative Instruments [Line Items] | |
Net (losses) gains relating to mortgage banking derivative instruments | $ (56) |
Mortgage Loan Interest Rate Lock Commitments [Member] | |
Derivative Instruments [Line Items] | |
Net (losses) gains relating to mortgage banking derivative instruments | (471) |
Mortgage Backed Securities Forward Sales Commitments [Member] | |
Derivative Instruments [Line Items] | |
Net (losses) gains relating to mortgage banking derivative instruments | $ 415 |
Derivatives - Summary of Amount
Derivatives - Summary of Amount and Fair Value of Mortgage Banking Derivative Instruments Included in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Assets | Mortgage Loan Interest Rate Lock Commitments | ||
Derivative Instruments [Line Items] | ||
Notional amount, assets | $ 69,454 | $ 50,281 |
Estimated fair value, asset | 225 | 696 |
Other Assets | Mortgage-Backed Securities Forward Sales Commitments | ||
Derivative Instruments [Line Items] | ||
Notional amount, assets | 68,500 | |
Estimated fair value, asset | 255 | |
Other Liabilities | Mortgage-Backed Securities Forward Sales Commitments | ||
Derivative Instruments [Line Items] | ||
Notional amount, liabilities | 0 | 43,000 |
Estimated fair value, liabilities | $ 0 | $ (160) |
Stock Options and Restricted _3
Stock Options and Restricted Shares - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options granted | 0 | 0 |
Performance Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total unrecognized compensation cost | $ 2.6 | |
Cost expected to be recognized over a weighted-average period | 2 years 2 months 12 days | |
Total fair value of shares vested | $ 0.6 | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Cost expected to be recognized over a weighted-average period | 1 month 6 days | |
Contractual term | 10 years | |
Total unrecognized compensation cost | $ 0.1 | |
Minimum | Time-Vested Restricted Stock Units and Performance Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Minimum | Performance Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards earning percentage | 0.00% | |
Maximum | Time-Vested Restricted Stock Units and Performance Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Maximum | Performance Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Awards earning percentage | 188.00% | |
CapStar Bank 2008 Stock Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares of stock reserved for issuance of stock incentives | 1,168,543 | |
Shares issuable under both restricted share and stock option grants | 1,098,499 |
Stock Options and Restricted _4
Stock Options and Restricted Shares - Summary of Company Recognized Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense before income taxes | $ 388 | $ 349 |
Less: deferred tax benefit | (101) | (91) |
Reduction of net income | $ 287 | $ 258 |
Stock Options and Restricted _5
Stock Options and Restricted Shares - Summary of Changes in Company's Nonvested Restricted Shares (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted Shares, Abstract | |
Restricted Shares, Nonvested Beginning Balance | shares | 177,020 |
Restricted Shares, Granted | shares | 76,539 |
Restricted Shares, Vested | shares | (27,836) |
Restricted Shares, Forfeited | shares | (6,864) |
Restricted Shares, Nonvested Ending Balance | shares | 218,859 |
Weighted Average Grant Date Fair Value, Abstract | |
Weighted Average Grant Date Fair Value, Nonvested Beginning Balance | $ / shares | $ 14 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 21.41 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 16.10 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 13.43 |
Weighted Average Grant Date Fair Value, Nonvested Ending Balance | $ / shares | $ 16.34 |
Stock Options and Restricted _6
Stock Options and Restricted Shares - Summary of Activity in Stock Options (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares, Abstract | ||
Shares Outstanding, Beginning Balance | 130,245 | |
Shares Outstanding, Granted | 0 | 0 |
Shares Outstanding, Exercised | 0 | |
Shares Outstanding, Forfeited or Expired | 0 | |
Shares Outstanding, Ending Balance | 130,245 | |
Shares, Fully Vested and Expected to Vest | 130,245 | |
Shares, Exercisable at End of Period | 113,578 | |
Weighted Average Exercise Price, Abstract | ||
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 11.96 | |
Weighted Average Exercise Price Outstanding, Granted | 0 | |
Weighted Average Exercise Price Outstanding, Exercised | 0 | |
Weighted Average Exercise Price Outstanding, Forfeited or expired | 0 | |
Weighted Average Exercise Price Outstanding, Ending Balance | 11.96 | |
Weighted Average Exercise Price, Fully vested and expected to vest | 11.96 | |
Weighted Average Exercise Price, Exercisable at End of Period | $ 11.54 | |
Weighted Average Remaining Contractual Term (year), Abstract | ||
Weighted Average Remaining Contractual Term Outstanding | 4 years 8 months 12 days | |
Weighted Average Remaining Contractual Term, Fully Vested and Expected to Vest | 4 years 8 months 12 days | |
Weighted Average Remaining Contractual Term, Exercisable at End of Period | 4 years 3 months 18 days |
Stock Options and Restricted _7
Stock Options and Restricted Shares - Information Related to Stock Options (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | ||
Intrinsic value of options exercised | $ 0 | $ 34,700 |
Cash received from option exercises | 0 | 0 |
Tax benefit realized from option exercises | $ 0 | $ 0 |
Weighted average fair value of options granted | $ 0 | $ 0 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Capital Amounts and Ratios (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
CapStar Financial Holdings, Inc. | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 392,629 | $ 384,116 | |
Tier I capital to risk-weighted assets, actual amount | 341,887 | 332,567 | |
Tier I capital to average assets, actual amount | $ 341,887 | $ 332,567 | |
Total capital to risk-weighted assets, actual ratio | 15.60 | 16.29 | |
Tier I capital to risk-weighted assets, actual ratio | 13.58 | 14.11 | |
Tier I capital to average assets, actual ratio | 10.99 | 10.69 | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 201,333 | $ 188,610 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 151,000 | 141,458 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 124,484 | $ 124,437 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8 | 8 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6 | 6 |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4 | 4 |
CapStar Financial Holdings, Inc. | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier I capital to risk-weighted assets, actual amount | $ 341,887 | $ 332,567 | |
Tier I capital to risk-weighted assets, actual ratio | 13.58 | 14.11 | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 113,250 | $ 106,093 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.5 | 4.5 |
CapStar Bank | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital to risk-weighted assets, actual amount | $ 380,561 | $ 370,919 | |
Tier I capital to risk-weighted assets, actual amount | 359,385 | 348,902 | |
Tier I capital to average assets, actual amount | $ 359,385 | $ 348,902 | |
Total capital to risk-weighted assets, actual ratio | 15.13 | 15.74 | |
Tier I capital to risk-weighted assets, actual ratio | 14.29 | 14.81 | |
Tier I capital to average assets, actual ratio | 11.56 | 11.23 | |
Total capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 201,205 | $ 188,471 |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | 150,904 | 141,354 |
Tier I capital to average assets, minimum capital requirement amount | [1] | $ 124,336 | $ 124,246 |
Total capital to risk-weighted assets, minimum capital requirement ratio | [1] | 8 | 8 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 6 | 6 |
Tier I capital to average assets, minimum capital requirement ratio | [1] | 4 | 4 |
Total capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 251,507 | $ 235,589 |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | 201,205 | 188,471 |
Tier I capital to average assets, minimum to be well capitalized amount | [2] | $ 155,420 | $ 155,308 |
Total capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 10 | 10 |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 8 | 8 |
Tier I capital to average assets, minimum to be well capitalized ratio | [2] | 5 | 5 |
CapStar Bank | Common Stock | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Tier I capital to risk-weighted assets, actual amount | $ 342,885 | $ 332,402 | |
Tier I capital to risk-weighted assets, actual ratio | 13.63 | 14.11 | |
Tier I capital to risk-weighted assets, minimum capital requirement amount | [1] | $ 113,178 | $ 106,015 |
Tier I capital to risk-weighted assets, minimum capital requirement ratio | [1] | 4.5 | 4.5 |
Tier I capital to risk-weighted assets, minimum to be well capitalized amount | [2] | $ 163,479 | $ 153,133 |
Tier I capital to risk-weighted assets, minimum to be well capitalized ratio | [2] | 6.50 | 6.5 |
[1] | For the calendar year 2022, the Company must maintain a capital conservation buffer of Tier 1 common equity capital in excess of minimum risk-based capital ratios by at least 2.5 % to avoid limits on capital distributions and certain discretionary bonus payments to executive officers and similar employees. | ||
[2] | For the Company to be well-capitalized, the Bank must be well-capitalized and the Company must not be subject to any written agreement, order, capital directive, or prompt corrective action directive issued by the Federal Reserve to meet and maintain a specific capital level for any capital measure. |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Schedule of Capital Amounts and Ratios (Parenthetical) (Details) | Mar. 31, 2022 |
Banking and Thrift, Interest [Abstract] | |
Minimum risk based capital ratios | 2.5 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic net income per share calculation: | ||
Numerator – Net income | $ 10,673 | $ 11,030 |
Denominator – Average common shares outstanding | 22,198,339 | 22,045,501 |
Basic net income per share | $ 0.48 | $ 0.50 |
Diluted net income per share calculation: | ||
Numerator – Net income | $ 10,673 | $ 11,030 |
Denominator – Average common shares outstanding | 22,198,339 | 22,045,501 |
Dilutive shares contingently issuable | 56,305 | 31,099 |
Average diluted common shares outstanding | 22,254,644 | 22,076,600 |
Diluted net income per share | $ 0.48 | $ 0.50 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Other real estate owned | $ 0 | $ 0 |
Fair Value - Summary of Assets
Fair Value - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Securities available-for-sale, at fair value | $ 460,558 | $ 459,396 |
Loans held for sale carried at fair value | 38,502 | 37,306 |
U. S. government agency securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 15,852 | 11,503 |
State and municipal securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 75,047 | 82,560 |
Asset-backed securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 3,340 | 3,339 |
Other debt securities | ||
Assets: | ||
Securities available-for-sale, at fair value | 66,076 | 68,387 |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non designated | ||
Derivative assets: | ||
Mortgages Held-for-sale, Fair Value Disclosure | 225 | 696 |
Fair Value Measurements Recurring Basis | ||
Assets: | ||
Loans held for sale carried at fair value | 38,502 | 37,306 |
Fair Value Measurements Recurring Basis | U. S. government agency securities | ||
Assets: | ||
Loans held for sale carried at fair value | 15,852 | 11,503 |
Fair Value Measurements Recurring Basis | State and municipal securities | ||
Assets: | ||
Loans held for sale carried at fair value | 75,047 | 82,560 |
Fair Value Measurements Recurring Basis | Mortgage-backed Securities-residential | ||
Assets: | ||
Loans held for sale carried at fair value | 300,243 | 293,607 |
Fair Value Measurements Recurring Basis | Asset-backed securities | ||
Assets: | ||
Loans held for sale carried at fair value | 3,340 | 3,339 |
Fair Value Measurements Recurring Basis | Other debt securities | ||
Assets: | ||
Loans held for sale carried at fair value | 66,076 | 68,387 |
Fair Value Measurements Recurring Basis | Mortgage Loan Interest Rate Lock Commitments | Non designated | ||
Derivative assets: | ||
Mortgages Held-for-sale, Fair Value Disclosure | 225 | 696 |
Fair Value Measurements Recurring Basis | Forward Sales Commitments | Non designated | ||
Derivative assets: | ||
Mortgage-backed securities forward sales commitments, asset | 255 | |
Derivative liabilities: | ||
Derivative Liabilities - customer related | (1,131) | |
Mortgage-backed securities forward sales commitments, liability | (160) | |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U. S. government agency securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed Securities-residential | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other debt securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage Loan Interest Rate Lock Commitments | Non designated | ||
Derivative assets: | ||
Mortgages Held-for-sale, Fair Value Disclosure | 0 | |
Fair Value Measurements Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward Sales Commitments | Non designated | ||
Derivative liabilities: | ||
Derivative Liabilities - customer related | 0 | |
Mortgage-backed securities forward sales commitments, liability | 0 | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Loans held for sale carried at fair value | 38,502 | 37,306 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | U. S. government agency securities | ||
Assets: | ||
Loans held for sale carried at fair value | 15,852 | 11,503 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | State and municipal securities | ||
Assets: | ||
Loans held for sale carried at fair value | 75,047 | 82,560 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities-residential | ||
Assets: | ||
Loans held for sale carried at fair value | 300,243 | 293,607 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Assets: | ||
Loans held for sale carried at fair value | 3,340 | 3,339 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Other debt securities | ||
Assets: | ||
Loans held for sale carried at fair value | 66,076 | 68,387 |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Mortgage Loan Interest Rate Lock Commitments | Non designated | ||
Derivative assets: | ||
Mortgages Held-for-sale, Fair Value Disclosure | 0 | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Forward Sales Commitments | ||
Derivative assets: | ||
Mortgage-backed securities forward sales commitments, asset | 255 | |
Fair Value Measurements Recurring Basis | Significant Other Observable Inputs (Level 2) | Forward Sales Commitments | Non designated | ||
Derivative liabilities: | ||
Derivative Liabilities - customer related | (1,131) | |
Mortgage-backed securities forward sales commitments, liability | (160) | |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | U. S. government agency securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | State and municipal securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed Securities-residential | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Other debt securities | ||
Assets: | ||
Loans held for sale carried at fair value | 0 | 0 |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non designated | ||
Derivative assets: | ||
Mortgages Held-for-sale, Fair Value Disclosure | 696 | |
Fair Value Measurements Recurring Basis | Significant Unobservable Inputs (Level 3) | Forward Sales Commitments | Non designated | ||
Derivative liabilities: | ||
Derivative Liabilities - customer related | 0 | |
Mortgage-backed securities forward sales commitments, liability | 0 | |
Fair Value Measurements Recurring Basis | Customer Related | Non designated | ||
Derivative assets: | ||
Interest rate swaps - customer related, asset | $ 1,131 | 1,594 |
Derivative liabilities: | ||
Interest rate swaps - customer related, liability | (1,594) | |
Fair Value Measurements Recurring Basis | Customer Related | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non designated | ||
Derivative assets: | ||
Interest rate swaps - customer related, asset | 0 | |
Derivative liabilities: | ||
Interest rate swaps - customer related, liability | 0 | |
Fair Value Measurements Recurring Basis | Customer Related | Significant Other Observable Inputs (Level 2) | Non designated | ||
Derivative assets: | ||
Interest rate swaps - customer related, asset | 1,594 | |
Derivative liabilities: | ||
Interest rate swaps - customer related, liability | (1,594) | |
Fair Value Measurements Recurring Basis | Customer Related | Significant Unobservable Inputs (Level 3) | Non designated | ||
Derivative assets: | ||
Interest rate swaps - customer related, asset | 0 | |
Derivative liabilities: | ||
Interest rate swaps - customer related, liability | $ 0 |
Fair Value - Reconciliation of
Fair Value - Reconciliation of Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) (Details) - Mortgage Loan Interest Rate Lock Commitments - Significant Unobservable Inputs (Level 3) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Balance of recurring Level 3 assets at January 1st | $ 696 | $ 2,607 |
Included in mortgage banking income | (471) | (1,805) |
Balance of recurring Level 3 assets at March 31st | $ 225 | $ 802 |
Fair Value - Summary of Quantit
Fair Value - Summary of Quantitative Information About Level 3 Fair Value Measurements on Recurring and Non-recurring Basis (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Consumer real estate | Fair Value, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 454 | |
Significant Unobservable Inputs (Level 3) | Consumer real estate | Fair Value, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Valuation Technique(s) | Sales comparison approach | |
Unobservable Input(s) | Appraisal discounts | |
Impaired loans | $ 454 | |
Significant Unobservable Inputs (Level 3) | Weighted Average | Consumer real estate | Fair Value, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unobservable inputs range | 0.10 | |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non designated | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loan interest rate lock commitments | $ 225 | $ 696 |
Valuation Technique(s) | Consensus pricing | Consensus pricing |
Unobservable Input(s) | Origination pull-through rate | Origination pull-through rate |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non designated | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unobservable inputs range | 0.77 | 0.60 |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non designated | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unobservable inputs range | 1 | 0.98 |
Significant Unobservable Inputs (Level 3) | Mortgage Loan Interest Rate Lock Commitments | Non designated | Weighted Average | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unobservable inputs range | 0.93 | 0.80 |
Fair Value - Summary of Asset_2
Fair Value - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring - Consumer real estate $ in Thousands | Dec. 31, 2021USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | $ 454 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 0 |
Significant Other Observable Inputs (Level 2) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 0 |
Significant Unobservable Inputs (Level 3) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | $ 454 |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying Value and Fair Values of the Bank's Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | |||
Securities available-for-sale, at fair value | $ 460,558 | $ 459,396 | |
Securities held to maturity, fair value | 1,791 | 1,830 | |
Loans held for sale carried at fair value | 38,502 | 37,306 | |
Carrying amount | |||
Financial assets: | |||
Cash and due from banks, interest-bearing deposits in financial institutions | 336,081 | 395,225 | |
Federal funds sold | 19,900 | 19,900 | |
Securities available-for-sale, at fair value | 460,558 | 459,396 | |
Securities held to maturity, fair value | 1,775 | 1,782 | |
Loans held for sale carried at fair value | 106,895 | 83,715 | |
Restricted equity securities | 14,465 | 14,453 | |
Loans held for investment | 2,047,555 | 1,965,769 | |
Accrued interest receivable | 7,679 | 7,376 | |
Other assets | 90,407 | 91,064 | |
Financial liabilities: | |||
Deposits | 2,755,995 | 2,684,281 | |
Subordinated notes and Federal Home Loan bank advances | 29,566 | 29,532 | |
Other liabilities | 1,816 | $ 1,842 | |
Fair value | Level 1 | |||
Financial assets: | |||
Cash and due from banks, interest-bearing deposits in financial institutions | 336,081 | 395,225 | |
Federal funds sold | 19,900 | 19,900 | |
Fair value | Level 2 | |||
Financial assets: | |||
Securities available-for-sale, at fair value | 460,558 | 459,396 | |
Securities held to maturity, fair value | 1,791 | 1,830 | |
Loans held for sale carried at fair value | 108,724 | 84,934 | |
Accrued interest receivable | 7,679 | 7,376 | |
Financial liabilities: | |||
Subordinated notes and Federal Home Loan bank advances | 29,890 | 30,477 | |
Fair value | Level 3 | |||
Financial assets: | |||
Loans held for investment | 2,027,079 | 1,963,803 | |
Financial liabilities: | |||
Deposits | 2,521,735 | 2,517,856 | |
Other liabilities | 1,816 | $ 1,842 | |
Fair value | Level 2 / Level 3 | |||
Financial assets: | |||
Other assets | $ 90,407 | $ 91,064 |