Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-55983 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 83-1561918 | |
Entity Address, Address Line One | 9 Old Lincoln Highway | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 484 | |
Local Phone Number | 568-5000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | MRBK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,185,515 | |
Entity Registrant Name | Meridian Corp | |
Entity Central Index Key | 0001750735 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and due from banks | $ 8,935 | $ 10,067 |
Interest-bearing deposits at other banks | 14,092 | 46,630 |
Cash and cash equivalents | 23,027 | 56,697 |
Securities available-for-sale, at fair value (amortized cost of $161,865 and $156,492, respectively) | 150,996 | 146,019 |
Securities held-to-maturity, at amortized cost (fair value of $32,003 and $32,730, respectively) | 35,157 | 35,781 |
Equity investments | 2,092 | 2,121 |
Mortgage loans held for sale | 29,124 | 24,816 |
Loans, net of fees and costs | 1,956,315 | 1,895,806 |
Allowance for credit losses | (23,171) | (22,107) |
Loans and other finance receivables, net of the allowance for credit losses | 1,933,144 | 1,873,699 |
Restricted investment in bank stock | 8,560 | 8,072 |
Bank premises and equipment, net | 13,451 | 13,557 |
Bank owned life insurance | 29,051 | 28,844 |
Accrued interest receivable | 9,864 | 9,325 |
Other real estate owned | 1,703 | 1,703 |
Deferred income taxes | 4,339 | 4,201 |
Servicing assets | 11,573 | 11,748 |
Goodwill | 899 | 899 |
Intangible assets | 2,920 | 2,971 |
Other assets | 37,023 | 25,740 |
Total assets | 2,292,923 | 2,246,193 |
Deposits: | ||
Non-interest bearing | 220,581 | 239,289 |
Interest bearing | 1,680,115 | 1,584,173 |
Total deposits | 1,900,696 | 1,823,462 |
Borrowings | 145,803 | 174,896 |
Subordinated debentures | 49,867 | 49,836 |
Accrued interest payable | 8,350 | 10,324 |
Other liabilities | 28,271 | 29,653 |
Total liabilities | 2,132,987 | 2,088,171 |
Stockholders’ equity: | ||
Common stock, $1 par value per share. $25,000,000 shares authorized; $13,188,698 and $13,186,198 shares issued and $11,185,515 and $11,183,015 shares outstanding, respectively | 13,189 | 13,186 |
Surplus | 80,487 | 80,325 |
Treasury stock, 2,003,183 and 2,003,183 shares, respectively, at cost | (26,079) | (26,079) |
Unearned common stock held by employee stock ownership plan | (1,204) | (1,204) |
Retained earnings | 102,492 | 101,216 |
Accumulated other comprehensive loss | (8,949) | (9,422) |
Total stockholders’ equity | 159,936 | 158,022 |
Total liabilities and stockholders’ equity | $ 2,292,923 | $ 2,246,193 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, amortized cost | $ 161,865 | $ 156,492 |
Securities, held-to-maturity, fair value | $ 32,003 | $ 32,730 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, issued (in shares) | 13,188,698 | 13,186,198 |
Common stock, outstanding (in shares) | 11,185,515 | 11,183,015 |
Treasury stock held (in shares) | 2,003,183 | 2,003,183 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Loans and other finance receivables, including fees | $ 35,339 | $ 29,417 |
Securities - taxable | 1,251 | 959 |
Securities - tax-exempt | 325 | 354 |
Cash and cash equivalents | 300 | 217 |
Total interest income | 37,215 | 30,947 |
Interest expense: | ||
Deposits | 17,392 | 11,447 |
Borrowings | 3,214 | 1,823 |
Total interest expense | 20,606 | 13,270 |
Net interest income | 16,609 | 17,677 |
Provision (recovery of provision) for credit losses | 2,866 | 1,399 |
Net interest income after provision for credit losses | 13,743 | 16,278 |
Non-interest income: | ||
Mortgage banking income | $ 3,634 | $ 3,272 |
Type of Revenue, Extensible List | Investment Advice [Member] | Investment Advice [Member] |
Wealth management income | $ 1,317 | $ 1,196 |
SBA loan income | 986 | 713 |
Earnings on investment in life insurance | 207 | 192 |
Net change in the fair value of derivative instruments | 75 | (69) |
Net change in the fair value of loans held-for-sale | (2) | (1) |
Net change in the fair value of loans held-for-investment | (175) | 117 |
Net (loss) gain on hedging activity | (19) | 0 |
Other | 1,961 | 1,218 |
Total non-interest income | 7,984 | 6,638 |
Non-interest expense: | ||
Salaries and employee benefits | 10,573 | 11,061 |
Occupancy and equipment | 1,233 | 1,244 |
Professional fees | 1,498 | 823 |
Advertising and promotion | 748 | 861 |
Data processing and software | 1,532 | 1,432 |
Pennsylvania bank shares tax | 274 | 245 |
Other | 2,316 | 2,123 |
Total non-interest expense | 18,174 | 17,789 |
Income before income taxes | 3,553 | 5,127 |
Income tax expense | 877 | 1,106 |
Net income | $ 2,676 | $ 4,021 |
Basic earnings per common share (in USD per share) | $ 0.24 | $ 0.36 |
Diluted earnings per common share (in USD per share) | $ 0.24 | $ 0.34 |
Basic weighted average shares outstanding (in shares) | 11,088 | 11,272 |
Diluted weighted average shares outstanding (in shares) | 11,201 | 11,656 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income: | $ 2,676 | $ 4,021 |
Net change in unrealized (losses) gains on investment securities available for sale: | ||
Change in fair value of investment securities, net of tax of $(98) and $460, respectively | (298) | 1,670 |
Reclassification adjustment for investment securities transferred to held-to-maturity, net of tax effect of $7 and $0, respectively | 22 | 0 |
Other Comprehensive Income (Loss), Available-for-Sale Securities Adjustment, Net of Tax, Portion Attributable to Parent, Total | (276) | 1,670 |
Net change in unrealized gains on interest rate swaps used in cash flow hedges, net of tax effect of $(247) and $0, respectively | 749 | 0 |
Total other comprehensive income | 473 | 1,670 |
Total comprehensive income | $ 3,149 | $ 5,691 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Tax expense (benefit) on unrealized gains arising during the period | $ (98) | $ 460 |
Tax expense (benefit) on reclassification adjustment for transfer to held-to-maturity | (7) | 0 |
Tax expense (benefit) on unrealized investment gains (losses) | (90) | 460 |
Tax expense (benefit) on unrealized gains (losses) on interest rate swaps used in cash flow hedges | $ (247) | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Surplus | Treasury Stock | Unearned ESOP | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | AOCI |
Balance beginning of the period at Dec. 31, 2022 | $ 153,280 | $ (2,228) | $ 13,156 | $ 79,072 | $ (21,821) | $ (1,403) | $ 95,815 | $ (2,228) | $ (11,539) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 4,021 | 4,021 | |||||||
Other comprehensive income | 1,670 | 1,670 | |||||||
Dividends declared | (1,428) | (1,428) | |||||||
Net purchase of treasury stock through publicly announced plans | (2,691) | (2,691) | |||||||
Common stock issued through share-based awards and exercises | 148 | 24 | 124 | ||||||
Stock based compensation expense | 277 | 277 | |||||||
Balance ending of the period at Mar. 31, 2023 | 153,049 | 13,180 | 79,473 | (24,512) | (1,403) | 96,180 | (9,869) | ||
Balance beginning of the period at Dec. 31, 2023 | 158,022 | 13,186 | 80,325 | (26,079) | (1,204) | 101,216 | (9,422) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 2,676 | 2,676 | |||||||
Other comprehensive income | 473 | 473 | |||||||
Dividends declared | (1,400) | (1,400) | |||||||
Common stock issued through share-based awards and exercises | 23 | 3 | 20 | ||||||
Stock based compensation expense | 142 | 142 | |||||||
Balance ending of the period at Mar. 31, 2024 | $ 159,936 | $ 13,189 | $ 80,487 | $ (26,079) | $ (1,204) | $ 102,492 | $ (8,949) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.125 |
Treasury stock (in shares) | 184,598 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 2,676 | $ 4,021 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Net amortization of investment premiums and discounts and change in fair value of equity securities | 240 | 373 |
Depreciation and amortization (accretion), net | 1,780 | (2) |
Provision for credit losses | 2,866 | 1,399 |
Amortization of issuance costs on subordinated debt | 31 | 27 |
Stock based compensation | 142 | 277 |
Net change in fair value of derivative instruments | (75) | 69 |
Net change in fair value of loans held for sale | 2 | 1 |
Net change in fair value of loans held for investment | 175 | (117) |
Amortization and net impairment of servicing rights | 479 | 435 |
SBA loan income | (986) | (713) |
Proceeds from sale of loans | 143,457 | 136,837 |
Loans originated for sale | (144,437) | (147,238) |
Mortgage banking income | (3,634) | (3,272) |
Increase in accrued interest receivable | (539) | (288) |
Increase in other assets | (353) | (1,607) |
Earnings from investment in bank owned life insurance | (207) | (192) |
Increase in deferred income tax | (251) | (54) |
(Decrease) increase in accrued interest payable | (1,974) | 1,447 |
Decrease in other liabilities | (1,098) | (2,803) |
Net cash used in operating activities | (1,706) | (11,400) |
Activity in available-for-sale securities: | ||
Maturities, repayments and calls | 3,554 | 2,222 |
Purchases | (9,068) | (10,702) |
Activity in held-to-maturity securities: | ||
Maturities, repayments and calls | 554 | 865 |
Increase in restricted stock | (488) | (3,242) |
Net increase in loans | (71,370) | (73,057) |
Purchases of premises and equipment | (1,910) | (284) |
Net cash used in investing activities | (78,728) | (84,198) |
Cash flows from financing activities: | ||
Net increase in deposits | 77,234 | 57,934 |
(Decrease) increase in short-term borrowings | (29,093) | 108,368 |
Increase in long-term debt | 0 | 3,433 |
Repayment of subordinated debt | 0 | (54) |
Net purchase of treasury stock | 0 | (2,691) |
Dividends paid | (1,400) | (1,428) |
Share based awards and exercises | 23 | 148 |
Net cash provided by financing activities | 46,764 | 165,710 |
Net change in cash and cash equivalents | (33,670) | 70,112 |
Cash and cash equivalents at beginning of period | 56,697 | 38,391 |
Cash and cash equivalents at end of period | 23,027 | 108,503 |
Cash paid during the period for: | ||
Interest | 22,580 | 11,823 |
Net loans sold, not settled | $ 10,631 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. 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. Amounts subject to significant estimates are items such as the allowance for credit losses, lending related commitments and the related unfunded commitment reserve, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill, intangible assets, and servicing assets. These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the SEC (including our Annual Report on Form 10-K for the year ended December 31, 2023), subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any. Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results for the year ending December 31, 2024 or for any other period. Stock Split On February 28, 2023, the Corporation approved and declared a two-for-one stock split in the form of a stock dividend, paid March 20, 2023, to shareholders of record as of March 14, 2023. Under the terms of the stock split, the Corporation’s shareholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.00 per share. All share and per share amounts reported in the consolidated financial statements have been adjusted to reflect the two-for-one stock split. Pronouncements Adopted in 2024 FASB ASU 2020-06, “Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” This ASU clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature models. For public business entities that meet the definition of an SEC filer (excluding smaller reporting entities), the amendments are effective for fiscal years beginning after Dec. 15, 2021, and interim periods within. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, and interim periods within. Adoption of this standard did not have a material impact on our consolidated financial statements. FASB ASU 2023-02, "Investments Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method" In March 2023, the FASB issued ASU 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits, instead of only LIHTC structures. This amendment also eliminates certain LIHTC specific guidance aligning the accounting with other equity investments in tax credit structures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Adoption of this standard did not have a material effect on our consolidated financial statements. Pronouncements Not Yet Effective as of March 31, 2024: FASB ASU 2020-04 (Topic 848), “Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Issued in March 2020, ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Corporation does not have a significant concentration of loans, derivative contracts, borrowings or other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The Corporation expects to adopt the LIBOR transition relief allowed under this standard throughout 2024. FASB ASU 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures” The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Corporation is currently evaluating the impact on its results of operation, financial position, liquidity, and disclosures. FASB ASU 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures” The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2024 and are to be applied on a prospective basis. Early adoption is permitted.The Corporation is currently evaluating the impact on its disclosures. FASB ASU 2024-01 Stock Compensation - Scope Application of Profits Interest and Similar Awards The amendments in this update improve the understandability of paragraph 718-10-15-3 apply to all entities that enter into share-based payments transactions. The amendments in this update are effective for fiscal years beginning after December 15, 2024 and are to be applied on a prospective basis. The Corporation is currently evaluating the impact on its disclosures. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period reduced by unearned ESOP Plan shares and treasury shares. Diluted earnings per common share takes into account the potential dilution computed pursuant to the treasury stock method that could occur if stock options were exercised and converted into common stock, if restricted stock awards were vested, and if SERP plan liabilities were satisfied with common shares. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be anti-dilutive. Three months ended (dollars in thousands, except per share data) 2024 2023 Numerator for earnings per share: Net income available to common stockholders $ 2,676 $ 4,021 Denominators for earnings per share: Weighted average shares outstanding 11,245 11,456 Average unearned ESOP shares (157) (184) Basic weighted averages shares outstanding 11,088 11,272 Dilutive effects of assumed exercises of stock options 113 230 Dilutive effects of SERP shares — 154 Diluted weighted averages shares outstanding 11,201 11,656 Basic earnings per share $ 0.24 $ 0.36 Diluted earnings per share $ 0.24 $ 0.34 Antidilutive shares excluded from computation of average dilutive earnings per share 585 463 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables presents the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated: March 31, 2024 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses Fair value # of Securities in unrealized loss position Securities available-for-sale: U.S. asset backed securities $ 19,285 $ 43 $ (175) $ — $ 19,153 10 U.S. government agency MBS 22,539 251 (443) — 22,347 13 U.S. government agency CMO 25,440 — (2,321) — 23,119 31 State and municipal securities 39,911 — (4,180) — 35,731 31 U.S. Treasuries 32,983 — (2,665) — 30,318 25 Non-U.S. government agency CMO 13,507 89 (535) — 13,061 10 Corporate bonds 8,200 — (933) — 7,267 13 Total securities available-for-sale $ 161,865 $ 383 $ (11,252) $ — $ 150,996 133 Amortized cost Gross unrecognized gains Gross unrecognized losses Allowance for credit losses Fair value # of Securities in unrecognized loss position Securities held to maturity: State and municipal securities $ 35,157 $ 20 $ (3,174) $ — $ 32,003 21 Total securities held-to-maturity $ 35,157 $ 20 $ (3,174) $ — $ 32,003 21 December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses Fair value # of Securities in unrealized loss position Securities available-for-sale: U.S. asset backed securities $ 17,012 $ 25 $ (213) $ — $ 16,824 11 U.S. government agency MBS 22,750 364 (480) — 22,634 14 U.S. government agency CMO 21,850 — (2,277) — 19,573 30 State and municipal securities 40,093 — (3,877) — 36,216 31 U.S. Treasuries 32,982 — (2,560) — 30,422 25 Non-U.S. government agency CMO 13,605 102 (552) — 13,155 9 Corporate bonds 8,200 — (1,005) — 7,195 13 Total securities available-for-sale $ 156,492 $ 491 $ (10,964) $ — $ 146,019 133 Amortized cost Gross unrecognized gains Gross unrecognized losses Allowance for credit losses Fair value # of Securities in unrecognized loss position Securities held to maturity: State and municipal securities $ 35,781 $ 52 $ (3,103) $ — $ 32,730 21 Total securities held-to-maturity $ 35,781 $ 52 $ (3,103) $ — $ 32,730 21 Although the Corporation’s investment portfolio overall is in a net unrealized loss position at March 31, 2024, the temporary impairment in the above noted securities is primarily the result of changes in market interest rates subsequent to purchase and it is more likely than not that the Corporation will not be required to sell these securities prior to recovery to satisfy liquidity needs, and therefore, no securities are deemed to be other-than-temporarily impaired. The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated: March 31, 2024 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Securities available-for-sale: U.S. asset backed securities $ 5,729 $ (32) $ 5,207 $ (143) $ 10,936 $ (175) U.S. government agency MBS 3,653 (70) 8,255 (373) 11,908 (443) U.S. government agency CMO 4,837 (57) 18,282 (2,264) 23,119 (2,321) State and municipal securities — — 35,731 (4,180) 35,731 (4,180) U.S. Treasuries — — 30,318 (2,665) 30,318 (2,665) Non-U.S. government agency CMO 2,438 (14) 5,937 (521) 8,375 (535) Corporate bonds 907 (94) 6,360 (839) 7,267 (933) Total securities available-for-sale $ 17,564 $ (267) $ 110,090 $ (10,985) $ 127,654 $ (11,252) Less than 12 Months 12 Months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Securities held-to-maturity: State and municipal securities $ 1,067 $ (2) $ 29,631 $ (3,172) $ 30,698 $ (3,174) Total securities held-to-maturity $ 1,067 $ (2) $ 29,631 $ (3,172) $ 30,698 $ (3,174) December 31, 2023 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Securities available-for-sale: U.S. asset backed securities $ 4,981 $ (25) $ 6,195 $ (188) $ 11,176 $ (213) U.S. government agency MBS 4,864 (35) 8,170 (445) 13,034 (480) U.S. government agency CMO 2,687 (36) 16,886 (2,241) 19,573 (2,277) State and municipal securities — — 36,216 (3,877) 36,216 (3,877) U.S. Treasuries — — 30,422 (2,560) 30,422 (2,560) Non-U.S. government agency CMO 1,127 (4) 6,065 (548) 7,192 (552) Corporate bonds 907 (93) 6,288 (912) 7,195 (1,005) Total securities available-for-sale $ 14,566 $ (193) $ 110,242 $ (10,771) $ 124,808 $ (10,964) Less than 12 Months 12 Months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Securities held-to-maturity: State and municipal securities $ 1,021 $ (6) $ 29,404 $ (3,097) $ 30,425 $ (3,103) Total securities held-to-maturity $ 1,021 $ (6) $ 29,404 $ (3,097) $ 30,425 $ (3,103) The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties. March 31, 2024 Available-for-sale Held-to-maturity (dollars in thousands) Amortized cost Fair value Amortized cost Fair value Due in one year or less $ — $ — $ — $ — Due after one year through five years 32,983 30,318 3,334 3,212 Due after five years through ten years 16,509 15,036 4,337 3,677 Due after ten years 50,887 47,115 27,486 25,114 Subtotal 100,379 92,469 35,157 32,003 Mortgage-related securities 61,486 58,527 — — Total $ 161,865 $ 150,996 $ 35,157 $ 32,003 There were no sales of investment securities available for sale for the three month ended March 31, 2024, or 2023. ACL on Securities AFS and HTM We use credit ratings quarterly and the most recent financial information of securities' issuers annually to help evaluate the credit quality of our securities AFS and HTM portfolios on a quarterly basis. The securities portfolio consists primarily of U.S. government treasuries and U.S. government agency asset backed securities which have no probability of default. The remaining portfolio consists of highly rated municipal bonds, non-agency CMO, and corporate bonds that have a low probability of default. For the three months ended March 31, 2024 and 2023, we had no significant ACL or provision expense and no charge-offs or recoveries on AFS or HTM securities. Pledged Securities As of March 31, 2024 and December 31, 2023, securities having a carrying value of $57.8 million and $60.1 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB. |
Loans and Other Finance Receiva
Loans and Other Finance Receivables | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Loans and Other Finance Receivables | Loans and Other Finance Receivables The following table presents loans and other finance receivables detailed by category at the dates indicated: (dollars in thousands) March 31, December 31, Real estate loans: Commercial mortgage $ 763,356 $ 737,863 Home equity lines and loans 76,746 76,287 Residential mortgage 262,837 260,604 Construction 263,072 246,440 Total real estate loans 1,366,011 1,321,194 Commercial and industrial 328,148 302,891 Small business loans 146,604 142,342 Consumer 381 389 Leases, net 108,892 121,632 Total loans $ 1,950,036 $ 1,888,448 Balances included in loans, net of fees and costs: Residential mortgage real estate loans accounted under fair value option, at fair value $ 13,139 $ 13,726 Residential mortgage real estate loans accounted under fair value option, at amortized cost 15,812 16,198 Unearned lease income included in leases, net (16,083) (19,210) Unamortized net deferred loan origination costs $ 6,279 $ 7,358 Fair Value Option for Residential Mortgage Real Estate Loans Residential mortgage real estate loans that were originated by the Corporation and intended for sale in the secondary market to permanent investors, but were either repurchased or unsalable due to defect, and that the Corporation has the ability and intent to hold for the foreseeable future or until maturity or payoff are carried at fair value pursuant to the Corporation's election of the fair value option for these loans. The remaining loans, net of fees and costs are stated at their outstanding unpaid principal balances, net of deferred fees or costs, since the original intent for these loans was to hold them until payoff or maturity. Nonaccrual and Past Due Loans The following tables present an aging of the Corporation’s loans at the dates indicated: March 31, 2024 (dollars in thousands) 30-89 days past due Total past due Current Total accruing loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ — $ — $ 762,785 $ 762,785 $ 571 $ 763,356 0.07 % Home equity lines and loans 417 417 75,148 75,565 1,181 76,746 2.08 Residential mortgage (1) 3,931 3,931 254,234 258,165 4,672 262,837 3.27 Construction 192 192 261,096 261,288 1,784 263,072 0.75 Commercial and industrial — — 312,841 312,841 15,307 328,148 4.66 Small business loans 1,712 1,712 132,146 133,858 12,746 146,604 9.86 Consumer 20 20 361 381 — 381 5.25 Leases, net 1,707 1,707 105,201 106,908 1,984 108,892 3.39 % Total $ 7,979 $ 7,979 $ 1,903,812 $ 1,911,791 $ 38,245 $ 1,950,036 2.37 % (1) Includes $13.1 million of loans at fair value of which $12.4 million are current, $— are 30-89 days past due and $771 thousand are nonaccrual. December 31, 2023 (dollars in thousands) 30-89 days past due Total past due Current Total accruing loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ 571 $ 571 $ 737,292 $ 737,863 $ — $ 737,863 0.08 % Home equity lines and loans 566 566 74,684 75,250 1,037 76,287 2.10 Residential mortgage (1) 1,103 1,103 254,965 256,068 4,536 260,604 2.16 Construction — — 245,234 245,234 1,206 246,440 0.49 Commercial and industrial — — 287,478 287,478 15,413 302,891 5.09 Small business loans 1,499 1,499 131,403 132,902 9,440 142,342 7.69 Consumer — — 389 389 — 389 — Leases, net 2,197 2,197 117,304 119,501 2,131 121,632 3.56 % Total $ 5,936 $ 5,936 $ 1,848,749 $ 1,854,685 $ 33,763 $ 1,888,448 2.10 % (1) Includes $13.7 million of loans at fair value of which $12.9 million are current, $— are 30-89 days past due and $786 thousand are nonaccrual. There were no loans in the tables above as of March 31, 2024 or December 31, 2023 that were 90+days past due and still accruing interest. Foreclosed and Repossessed Assets At both March 31, 2024 and December 31, 2023, there were 4 consumer mortgage loans secured by residential real estate properties (included in loans, net of fees and costs on the Consolidated Balance Sheets) totaling $937 thousand for which formal foreclosure proceedings were in process. Risks and Uncertainties We have no particular credit concentration. Our commercial loans have been proactively managed in an effort to achieve a balanced portfolio with no unusual exposure to one industry. Additionally, most of our lending activity occurs within our primary market areas which are concentrated in southeastern Pennsylvania, Delaware, and Maryland as well as other contiguous markets and represents a geographic concentration. Additionally, our loan portfolio is concentrated in commercial loans. Commercial loans are generally viewed as having more inherent risk of default than residential real estate loans or other consumer loans. Also, the commercial loan balance per borrower is typically larger than that for residential real estate loans and consumer loans, implying higher potential losses on an individual loan basis. Past Due and Nonaccrual Status The following tables presents the amortized costs basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing, net of fees and costs as of March 31, 2024 and December 31, 2023. As of this date here were no loans 90 days or more past due and still accruing. March 31, 2024 December 31, 2023 (dollars in thousands) Nonaccrual without ACL Nonaccrual with ACL Total nonaccrual Nonaccrual without ACL Nonaccrual with ACL Total nonaccrual Commercial mortgage $ 571 $ — $ 571 $ — $ — $ — Home equity lines and loans 1,181 — 1,181 1,037 — 1,037 Residential mortgage 4,672 — 4,672 4,536 — 4,536 Construction 1,784 — 1,784 1,206 — 1,206 Commercial and industrial 3,341 11,966 15,307 3,343 12,070 15,413 Small business loans 2,609 10,137 12,746 3,607 5,833 9,440 Leases, net 1,984 — 1,984 2,131 — 2,131 Total $ 16,142 $ 22,103 $ 38,245 $ 15,860 $ 17,903 $ 33,763 Collateral-dependent Loans The following tables presents the amortized cost basis of non-accruing collateral-dependent loans by class or loans as of March 31, 2024 and December 31, 2023 under the current expected credit loss model: March 31, 2024 December 31, 2023 (dollars in thousands) Real estate Equipment and other Total Real estate Equipment and other Total Commercial mortgage $ 571 $ — $ 571 $ — $ — $ — Home equity lines and loans 1,181 — 1,181 1,037 — 1,037 Residential mortgage 4,672 — 4,672 4,536 — 4,536 Construction 1,784 — 1,784 1,206 — 1,206 Commercial and industrial 1,888 13,419 15,307 1,890 13,523 15,413 Small business loans 8,543 4,203 12,746 6,320 3,120 9,440 Leases, net — 1,984 1,984 — 2,131 2,131 Total $ 18,639 $ 19,606 $ 38,245 $ 14,989 $ 18,774 $ 33,763 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The ACL is maintained at a level considered adequate to provide for estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. Management’s periodic evaluation of the adequacy of the ACL is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is subjective as it requires material estimates that may be susceptible to significant revisions as more information becomes available. Roll-Forward of ACL by Portfolio Segment The following tables provide the activity of our allowance for credit losses for the three months ended March 31, 2024 and March 31, 2023 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2023): Three Months Ended March 31, 2024 (dollars in thousands) Beginning balance Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 4,375 $ — $ — $ (196) $ 4,179 Home equity lines and loans 998 — 2 (42) 958 Residential mortgage 1,020 — — 157 1,177 Construction 485 — — 98 583 Commercial and industrial 4,518 (208) 2 771 5,083 Small business loans 7,005 (87) 3 884 7,805 Consumer — (1) 1 1 1 Leases 3,706 (2,148) 126 1,701 3,385 Total $ 22,107 $ (2,444) $ 134 $ 3,374 $ 23,171 Three Months Ended March 31, 2023 (dollars in thousands) Beginning Balance Adjustment to initially apply ASU No. 2016-13 for CECL Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 4,095 $ (526) $ — $ — $ (94) $ 3,475 Home equity lines and loans 188 439 (33) 2 19 615 Residential mortgage 948 17 — — (97) 868 Construction 3,075 (1,763) — — (193) 1,119 Commercial and industrial 4,012 (1,023) — 39 (295) 2,733 Small business loans 4,909 1,110 — — 297 6,316 Consumer 3 (3) — — — — Leases 1,598 3,345 (1,464) 3 1,834 5,316 Total $ 18,828 $ 1,596 $ (1,497) $ 44 $ 1,471 $ 20,442 Reconciliation of Provision for Credit Losses The following table provides a reconciliation of the provision for credit losses on the consolidated statements of income between the funded and unfunded components at the dates indicated: Three Months Ended (dollars in thousands) 2024 2023 Provision for credit losses - funded $ 3,374 $ 1,471 Recovery of provision for credit losses - unfunded (508) (72) Total provision for credit losses $ 2,866 $ 1,399 Allowance Allocated by Portfolio Segment The following tables detail the allocation of the ACL and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases at the dates indicated: March 31, 2024 Allowance for credit losses Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,179 $ 4,179 $ 571 $ 762,785 $ 763,356 Home equity lines and loans — 958 958 1,181 75,565 76,746 Residential mortgage — 1,177 1,177 3,901 245,797 249,698 Construction — 583 583 1,784 261,288 263,072 Commercial and industrial 4,061 1,022 5,083 15,307 312,841 328,148 Small business loans 4,402 3,403 7,805 12,746 133,858 146,604 Consumer — 1 1 — 381 381 Leases, net — 3,385 3,385 1,984 106,908 108,892 Total (1) $ 8,463 $ 14,708 $ 23,171 $ 37,474 $ 1,899,423 $ 1,936,897 ( 1) Excludes deferred fees and loans carried at fair value. December 31, 2023 Allowance for credit losses Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,375 $ 4,375 $ — $ 737,863 $ 737,863 Home equity lines and loans — 998 998 1,037 75,250 76,287 Residential mortgage — 1,020 1,020 3,750 243,128 246,878 Construction — 485 485 1,206 245,234 246,440 Commercial and industrial 3,691 827 4,518 15,413 287,478 302,891 Small business loans 2,805 4,200 7,005 9,440 132,902 142,342 Consumer — — — — 389 389 Leases, net — 3,706 3,706 2,131 119,501 121,632 Total (1) $ 6,496 $ 15,611 $ 22,107 $ 32,977 $ 1,841,745 $ 1,874,722 ( 1) Excludes deferred fees and loans carried at fair value. Credit Quality Indicators As part of the process of determining the ACL to the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by Management. The results of these reviews are reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: • Pass – Loans considered to be satisfactory with no indications of deterioration. • Special mention – Loans classified as special mention have a potential weakness that deserves Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. • Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. • Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loan balances classified as doubtful have been reduced by partial charge-offs and are carried at their net realizable values. The following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses at the dates indicated: March 31, 2024 Revolving Loans Converted to Term Loans Revolving Loans Total Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Commercial mortgage Pass/Watch $ 28,664 $ 106,084 $ 166,840 $ 152,738 $ 96,579 $ 192,570 $ 511 $ 743 $ 744,729 Special Mention — — — — 4,823 9,873 667 — 15,363 Substandard — 200 — 571 — 2,493 — — 3,264 Total $ 28,664 $ 106,284 $ 166,840 $ 153,309 $ 101,402 $ 204,936 $ 1,178 $ 743 $ 763,356 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass/Watch $ 24,052 $ 74,841 $ 77,792 $ 20,778 $ 24,823 $ 4,353 $ 123 $ 25,066 $ 251,828 Special Mention — — — 1,352 638 4,329 — 3,140 9,459 Substandard — — — 67 — 1,718 — — 1,785 Total $ 24,052 $ 74,841 $ 77,792 $ 22,197 $ 25,461 $ 10,400 $ 123 $ 28,206 $ 263,072 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass/Watch $ 35,892 $ 24,890 $ 28,772 $ 23,569 $ 9,994 $ 35,967 $ — $ 134,590 $ 293,674 Special Mention — — — — — 1,356 — 4,706 6,062 Substandard — — 3,940 2,906 — 6,886 — 14,680 28,412 Total $ 35,892 $ 24,890 $ 32,712 $ 26,475 $ 9,994 $ 44,209 $ — $ 153,976 $ 328,148 Current period gross charge-offs $ — $ (204) $ — $ — $ — $ — $ — $ (4) $ (208) Small business loans Pass/Watch $ 8,549 $ 30,066 $ 28,585 $ 35,029 $ 11,274 $ 7,382 $ — $ 12,552 $ 133,437 Special Mention — — — — — — — — — Substandard — 86 2,482 5,897 2,804 — — 1,898 13,167 Total $ 8,549 $ 30,152 $ 31,067 $ 40,926 $ 14,078 $ 7,382 $ — $ 14,450 $ 146,604 Current period gross charge-offs $ — $ — $ — $ (44) $ — $ — $ — $ (43) $ (87) Total by risk rating Pass/Watch $ 97,157 $ 235,881 $ 301,989 $ 232,114 $ 142,670 $ 240,272 $ 634 $ 172,951 $ 1,423,668 Special Mention — — — 1,352 5,461 15,558 667 7,846 30,884 Substandard — 286 6,422 9,441 2,804 11,097 — 16,578 46,628 Total $ 97,157 $ 236,167 $ 308,411 $ 242,907 $ 150,935 $ 266,927 $ 1,301 $ 197,375 $ 1,501,180 Total current period gross charge-offs $ — $ (204) $ — $ (44) $ — $ — $ — $ (47) $ (295) December 31, 2023 Revolving Loans Converted to Term Loans Revolving Loans Total Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Commercial mortgage Pass/Watch $ 106,341 $ 160,302 $ 158,647 $ 97,535 $ 56,382 $ 133,349 $ 511 $ 423 $ 713,490 Special Mention — — — 4,425 4,341 9,975 667 — 19,408 Substandard 200 — 571 — 1,635 2,233 — 326 4,965 Doubtful — — — — — — — — — Total $ 106,541 $ 160,302 $ 159,218 $ 101,960 $ 62,358 $ 145,557 $ 1,178 $ 749 $ 737,863 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass/Watch $ 67,776 $ 88,737 $ 21,793 $ 27,336 $ 2,307 $ 2,093 $ 123 $ 25,976 $ 236,141 Special Mention — — 1,329 — 511 4,329 — 2,924 9,093 Substandard — — — — — 1,206 — — 1,206 Doubtful — — — — — — — — — Total $ 67,776 $ 88,737 $ 23,122 $ 27,336 $ 2,818 $ 7,628 $ 123 $ 28,900 $ 246,440 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass/Watch $ 26,314 $ 38,748 $ 24,523 $ 8,449 $ 4,148 $ 33,726 $ — $ 131,304 $ 267,212 Special Mention 500 9 — — — 1,361 — 6,440 8,310 Substandard — — 2,906 — 300 9,469 — 14,694 27,369 Doubtful — — — — — — — — — Total $ 26,814 $ 38,757 $ 27,429 $ 8,449 $ 4,448 $ 44,556 $ — $ 152,438 $ 302,891 Current period gross charge-offs $ (209) $ (55) $ — $ (2) $ — $ — $ — $ — $ (266) Small business loans Pass/Watch $ 35,764 $ 26,621 $ 37,278 $ 11,687 $ 6,672 $ 920 $ — $ 12,507 $ 131,449 Special Mention — — — 909 — — — 314 1,223 Substandard 49 1,523 5,090 2,122 — — — 886 9,670 Doubtful — — — — — — — — — Total $ 35,813 $ 28,144 $ 42,368 $ 14,718 $ 6,672 $ 920 $ — $ 13,707 $ 142,342 Current period gross charge-offs $ — $ — $ — $ (11) $ (912) $ — $ — $ (565) $ (1,488) Total by risk rating Pass/Watch $ 236,195 $ 314,408 $ 242,241 $ 145,007 $ 69,509 $ 170,088 $ 634 $ 170,210 $ 1,348,292 Special Mention 500 9 1,329 5,334 4,852 15,665 667 9,678 38,034 Substandard 249 1,523 8,567 2,122 1,935 12,908 — 15,906 43,210 Doubtful — — — — — — — — — Total $ 236,944 $ 315,940 $ 252,137 $ 152,463 $ 76,296 $ 198,661 $ 1,301 $ 195,794 $ 1,429,536 Total current period gross charge-offs $ (209) $ (55) $ — $ (13) $ (912) $ — $ — $ (565) $ (1,754) The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2024 and December 31, 2023. In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated: March 31, 2024 Revolving Loans Total Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Home equity lines and loans Performing $ 122 $ 340 $ 788 $ 311 $ 347 $ 4,152 $ 69,025 $ 75,085 Nonperforming — 1,661 1,661 Total $ 122 $ 340 $ 788 $ 311 $ 347 $ 4,152 $ 70,686 $ 76,746 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgage (1) Performing $ 7,247 $ 49,114 $ 149,606 $ 21,692 $ 6,430 $ 11,708 $ — $ 245,797 Nonperforming — — 1,515 — 1,031 1,355 — 3,901 Total $ 7,247 $ 49,114 $ 151,121 $ 21,692 $ 7,461 $ 13,063 $ — $ 249,698 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ 40 $ 30 $ — $ — $ 259 $ 52 $ 381 Nonperforming — — — — — — — — Total $ — $ 40 $ 30 $ — $ — $ 259 $ 52 $ 381 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ (1) $ (1) Leases, net Performing $ 123 $ 20,621 $ 50,571 $ 27,386 $ 8,207 $ — $ — $ 106,908 Nonperforming — 285 1,081 408 210 — — 1,984 Total $ 123 $ 20,906 $ 51,652 $ 27,794 $ 8,417 $ — $ — $ 108,892 Current period gross charge-offs $ — $ (369) $ (1,429) $ (277) $ (73) $ — $ — $ (2,148) Total by Payment Performance Performing $ 7,492 $ 70,115 $ 200,995 $ 49,389 $ 14,984 $ 16,119 $ 69,077 $ 428,171 Nonperforming — 285 2,596 408 1,241 1,355 1,661 7,546 Total $ 7,492 $ 70,400 $ 203,591 $ 49,797 $ 16,225 $ 17,474 $ 70,738 $ 435,717 Total current period gross charge-offs $ — $ (369) $ (1,429) $ (277) $ (73) $ — $ (1) $ (2,149) (1) Excludes $13.1 million of loans at fair value. December 31, 2023 Revolving Loans Total Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Home equity lines and loans Performing $ 343 $ 795 $ 314 $ 352 $ 2,191 $ 2,295 $ 68,600 $ 74,890 Nonperforming — — — — — — 1,397 1,397 Total $ 343 $ 795 $ 314 $ 352 $ 2,191 $ 2,295 $ 69,997 $ 76,287 Current period gross charge-offs $ — $ — $ — $ — $ (33) $ — $ (54) $ (87) Residential mortgage (1) Performing $ 48,576 $ 154,219 $ 22,237 $ 6,260 $ 456 $ 11,380 $ — $ 243,128 Nonperforming — 1,350 — 1,043 — 1,357 — 3,750 Total $ 48,576 $ 155,569 $ 22,237 $ 7,303 $ 456 $ 12,737 $ — $ 246,878 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ 39 $ 35 $ — $ — $ 32 $ 234 $ 49 $ 389 Nonperforming — — — — — — — — Total $ 39 $ 35 $ — $ — $ 32 $ 234 $ 49 $ 389 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ (2) $ (2) Leases, net Performing $ 23,054 $ 55,940 $ 30,876 $ 9,718 $ — $ — $ — $ 119,588 Nonperforming 263 1,194 368 219 — — — 2,044 Total $ 23,317 $ 57,134 $ 31,244 $ 9,937 $ — $ — $ — $ 121,632 Current period gross charge-offs $ (128) $ (2,165) $ (1,450) $ (290) $ — $ — $ — $ (4,033) Total by Payment Performance Performing $ 72,012 $ 210,989 $ 53,427 $ 16,330 $ 2,679 $ 13,909 $ 68,649 $ 437,995 Nonperforming 263 2,544 368 1,262 — 1,357 1,397 7,191 Total $ 72,275 $ 213,533 $ 53,795 $ 17,592 $ 2,679 $ 15,266 $ 70,046 $ 445,186 Total current period gross charge-offs $ (128) $ (2,165) $ (1,450) $ (290) $ (33) $ — $ (56) $ (4,122) (1) Excludes $13.7 million of fair value loans Modifications to Borrowers Experiencing Financial Difficulty An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans and leases, a change to the allowance for credit losses is generally not recorded upon modification. However, when principal forgiveness is provided, the amortized cost basis of the asset is written off against the ACL on loans and leases. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024. There were no modifications granted to debtors experiencing financial difficulty for the three months ended March 31, 2023. Three Months Ended March 31, 2024 Number of Loans Amortized Cost Basis % of Total Class of Financing Receivable Related Reserve (dollars in thousands) Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 $ 359 0.2 % $ — Commercial & industrial 2 1,097 0.3 % — Total 4 $ 1,456 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 1 $ 895 0.6 % $ 784 Total 1 $ 895 $ 784 The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024. Three Months Ended March 31, 2024 Number of Loans (dollars in thousands) Financial Effect Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 Extend maturity date Commercial & industrial 2 Extend maturity date and allow additional lender funding Total 4 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 1 Total 1 There were 5 and no modifications granted to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and March 31, 2023, respectively. There were no loans that had a payment default during the three months ended March 31, 2024 and March 31, 2023 that were modified in the 12 months before default to borrowers experiencing financial difficulty. There were no commitments to lend additional funds to the borrowers experiencing financial difficulty that had modifications during the three months ended March 31, 2024 and March 31, 2023. |
Short-Term Borrowings and Long
Short-Term Borrowings and Long -Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt The Corporation’s short-term borrowings generally consist of federal funds purchased and short-term borrowings extended under agreements with the FHLB or other correspondent banks. The Corporation has three unsecured Federal funds borrowing facility with a correspondent bank for up to $49 million. Federal funds purchased generally represent one-day borrowings. The Corporation had $0 in Federal funds purchased at March 31, 2024 and December 31, 2023. The Corporation also has a facility with the Federal Reserve Bank discount window of $6.5 million. This facility is fully secured by investment securities. There were no borrowings under this at March 31, 2024 and December 31, 2023. The Corporation's facility with the Federal Reserve’s BTFP in the amount of $33 million expired in March 2024. The following table presents short-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest March 31, December 31, FHLB Open Repo Plus Weekly 06/10/2024 5.68% $ 84,789 $ 104,792 FRB BTFP Advances 03/29/2024 4.76% — 33,000 FHLB Mid-term Repo Fixed 9/30/2024 4.60% 3,432 3,432 FHLB Mid-term Repo Fixed 10/25/2024 5.03% 8,097 — FHLB Mid-term Repo Fixed 1/27/2025 4.85% 8,000 — FHLB Mid-term Repo Fixed 2/24/2025 5.35% 7,813 — Total Short-Term Borrowings $ 112,131 $ 141,224 The following table presents long-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest March 31, December 31, FHLB Mid-term Repo Fixed 12/22/2025 4.23% $ 8,935 $ 8,935 FHLB Mid-term Repo Fixed 10/14/2025 5.16% 9,492 9,492 FHLB Mid-term Repo Fixed 7/14/2026 4.57% 15,245 15,245 Total Long-Term Borrowings $ 33,672 $ 33,672 The FHLB has also issued $156.0 million of letters of credit to the Corporation for the benefit of the Corporation’s public deposit funds and loan customers. These letters of credit expire throughout the remainder of 2024. The Corporation has a maximum borrowing capacity with the FHLB of $656.0 million as of March 31, 2024 and $626.8 million as of December 31, 2023. All advances and letters of credit from the FHLB are secured by a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB. |
Servicing Assets
Servicing Assets | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing [Abstract] | |
Servicing Assets | Servicing Assets The Corporation sells certain residential mortgage loans and the guaranteed portion of certain SBA loans to third parties and retains servicing rights and receives servicing fees. All such transfers are accounted for as sales. When the Corporation sells a residential mortgage loan, it does not retain any portion of that loan and its continuing involvement in such transfers is limited to certain servicing responsibilities. While the Corporation may retain a portion of certain sold SBA loans, its continuing involvement in the portion of the loan that was sold is limited to certain servicing responsibilities. When the contractual servicing fees on loans sold with servicing retained are expected to be more than adequate compensation to a servicer for performing the servicing, a capitalized servicing asset is recognized. Residential Mortgage Loans The related MSR asset is amortized over the period of the estimated future net servicing life of the underlying assets. MSRs are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the MSR. The Corporation serviced $932.5 million and $945.2 million of residential mortgage loans as of March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024, the Corporation recognized servicing fee income of $586 thousand, compared to $636 thousand, during the three months ended March 31, 2023. Changes in the MSR balance are summarized as follows: Three months ended (dollars in thousands) 2024 2023 Balance at beginning of the period $ 8,622 $ 9,942 Servicing rights capitalized 10 — Amortization of servicing rights (318) (371) Change in valuation allowance — 2 Balance at end of the period $ 8,314 $ 9,573 Activity in the valuation allowance for MSRs was as follows: Three months ended (dollars in thousands) 2024 2023 Valuation allowance, beginning of period $ — $ (2) Impairment — — Recovery — 2 Valuation allowance, end of period $ — $ — The Corporation uses assumptions and estimates in determining the fair value of MSRs. These assumptions include prepayment speeds and discount rates. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At March 31, 2024, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 8.29% and a discount rate equal to 9.50%. At December 31, 2023, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 8.57% and a discount rate equal to 9.50%. Due in part to market volatility as interest rates increased, the prepayment speed assumption has decreased from December 31, 2023 to March 31, 2024. As interest rates have started to increase and the number of mortgage refinancings have started to decline, model inputs have been adjusted to align the MSRs fair value with market conditions. The sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) March 31, December 31, Fair value of residential mortgage servicing rights $ 10,973 $ 11,221 Weighted average life (months) 28 28 Prepayment speed 8.29 % 8.57 % Impact on fair value: 10% adverse change $ (253) $ (506) 20% adverse change (496) (973) Discount rate 9.50 % 9.50 % Impact on fair value: 10% adverse change $ (404) $ (415) 20% adverse change (781) (799) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a articular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. SBA Loans SBA loan servicing assets are amortized over the period of the estimated future net servicing life of the underlying assets. SBA loan servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the SBA loan servicing asset. The Corporation serviced $236.6 million and $225.8 million of SBA loans, as of March 31, 2024 and December 31, 2023, respectively. Changes in the SBA loan servicing asset balance are summarized as follows: Three months ended (dollars in thousands) 2024 2023 Balance at beginning of the period $ 3,127 $ 2,404 Servicing rights capitalized 197 214 Amortization of servicing rights (241) (195) Change in valuation allowance 176 129 Balance at end of the period $ 3,259 $ 2,552 Activity in the valuation allowance for SBA loan servicing assets was as follows: Three months ended (dollars in thousands) 2024 2023 Valuation allowance, beginning of period $ (268) $ (364) Impairment — — Recovery 176 129 Valuation allowance, end of period $ (92) $ (235) The Corporation uses assumptions and estimates in determining the fair value of SBA loan servicing rights. These assumptions include prepayment speeds, discount rates, and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At March 31, 2024, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 15.21% and a discount rate equal to 13.93%. At December 31, 2023, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 14.70% and a discount rate equal to 14.66%. The sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) March 31, December 31, Fair value of SBA loan servicing rights $ 3,567 $ 3,376 Weighted average life (years) 3.3 3.8 Prepayment speed 15.21 % 14.70 % Impact on fair value: 10% adverse change $ (143) $ (125) 20% adverse change (275) (241) Discount rate 13.93 % 14.66 % Impact on fair value: 10% adverse change $ (79) $ (74) 20% adverse change (155) (145) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the SBA servicing rights is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures The Corporation uses fair value measurements to record fair value adjustments to certain assets and liabilities. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Corporation’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation techniques or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Corporation groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis. Securities The fair value of securities available-for-sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Mortgage Loans Held for Sale The fair value of loans held for sale is based on secondary market prices. Mortgage Loans Held for Investment The fair value of mortgage loans held for investment is based on the price secondary markets are currently offering for similar loans using observable market data. Derivative Financial Instruments The fair values of forward commitments and interest rate swaps are based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The following table presents the fair value of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy at the dates indicated : March 31, 2024 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 19,153 $ — $ 19,153 $ — U.S. government agency MBS 22,347 — 22,347 — U.S. government agency CMO 23,119 — 23,119 — State and municipal securities 35,731 — 35,731 — U.S. Treasuries 30,318 30,318 — — Non-U.S. government agency CMO 13,061 — 13,061 Corporate bonds 7,267 — 7,267 — Equity investments 2,092 — 2,092 — Mortgage loans held for sale 29,124 — 29,124 — Mortgage loans held for investment 13,139 — 13,139 — Interest rate lock commitments 288 — — 288 Forward commitments — — — — Customer derivatives - interest rate swaps 3,758 — 3,758 — Interest rate swaps 437 — 437 — Total $ 199,834 $ 30,318 $ 169,228 $ 288 Liabilities Interest rate lock commitments $ 84 $ — $ — $ 84 Customer derivatives - interest rate swaps 3,754 — 3,754 — Risk Participation Agreements 5 — 5 — Total $ 3,843 $ — $ 3,759 $ 84 December 31, 2023 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 16,824 $ — $ 16,824 $ — U.S. government agency MBS 22,634 — 22,634 — U.S. government agency CMO 19,573 — 19,573 — State and municipal securities 36,216 — 36,216 — U.S. Treasuries 30,422 30,422 — — Non-U.S. government agency CMO 13,155 — 13,155 — Corporate bonds 7,195 — 7,195 — Equity investments 2,121 — 2,121 — Mortgage loans held for sale 24,816 — 24,816 — Mortgage loans held for investment 13,726 — 13,726 — Interest rate lock commitments 214 — — 214 Customer derivatives - interest rate swaps 3,528 — 3,528 — Total $ 190,424 $ 30,422 $ 159,788 $ 214 Liabilities Interest rate lock commitments $ 17 $ — $ — $ 17 Forward commitments 41 — 41 — Customer derivatives - interest rate swaps 3,544 — 3,544 — Risk Participation Agreements 11 — 11 — Total $ 3,613 $ — $ 3,596 $ 17 The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated: (dollars in thousands) March 31, December 31, Mortgage servicing rights $ 8,314 $ 8,621 SBA loan servicing rights 3,259 3,127 Individually evaluated loans (1) Commercial and industrial 7,905 9,818 Small business loans 5,735 3,134 Total $ 25,213 $ 24,700 (1) Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. The increase in individually evaluated commercial and industrial loans noted above was due to reassessing how we evaluate the impairment on a loan relationship to now be based on the fair value of collateral. The following table details the valuation techniques for Level 3 individually evaluated loans. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs March 31, 2024 $ 13,640 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-33% discount December 31, 2023 12,952 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-33% discount Below is management’s estimate of the fair value of all financial instruments, whether carried at cost or fair value on the Corporation’s balance sheet. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair value of the Corporation’s financial instruments: Cash and Cash Equivalents The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. Loans Receivable The fair value of loans receivable is estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value below is reflective of an exit price. Servicing Assets The Corporation estimates the fair value of mortgage servicing rights and SBA loan servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. These servicing rights are classified within Level 3 in the fair value hierarchy based upon management’s assessment of the inputs. The Corporation reviews the servicing rights portfolios on a quarterly basis for impairment. Individually Evaluated Loans Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third party appraisals of the properties, or discounted cash flows based upon the expected proceeds. Non-real estate 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. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the Allowance policy. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit Liabilities The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings The carrying amounts of short-term borrowings approximate their fair values. Long-Term Debt Fair values of FHLB advances and the acquisition purchase note payable are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Subordinated Debt Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Off-Balance Sheet Financial Instruments Off-balance sheet instruments are primarily comprised of loan commitments, which are generally priced at market at the time of funding. Fees on commitments to extend credit and stand-by letters of credit are deemed to be immaterial and these instruments are expected to be settled at face value or expire unused. It is impractical to assign any fair value to these instruments and as a result they are not included in the table below. Fair values assigned to the notional value of interest rate lock commitments and forward sale contracts are based on market quotes. Derivative Financial Instruments The fair value of forward commitments and interest rate swaps is based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The following table presents the estimated fair values of the Corporation’s financial instruments at the dates indicated: March 31, 2024 December 31, 2023 (dollars in thousands) Fair Value Carrying Fair value Carrying Fair value Financial assets: Cash and cash equivalents Level 1 $ 23,027 $ 23,027 $ 56,697 $ 56,697 Mortgage loans held for sale Level 2 29,124 29,124 24,816 24,816 Loans receivable, net of the allowance for credit losses Level 3 1,943,176 1,889,637 1,882,080 1,832,558 Mortgage loans held for investment Level 2 13,139 13,139 13,726 13,726 Financial liabilities: Deposits Level 2 $ 1,900,696 $ 1,888,300 $ 1,823,462 $ 1,834,700 Borrowings Level 2 145,803 159,800 174,896 176,400 Subordinated debentures Level 2 49,867 49,721 49,836 50,223 The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the periods indicated. Three months ended (dollars in thousands) 2024 2023 Balance at beginning of the period $ 214 $ 87 Increase in value 74 52 Balance at end of the period $ 288 $ 139 The following table details the valuation techniques for Level 3 interest rate lock commitments. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average March 31, 2024 $ 288 Market comparable pricing Pull through 1 - 99% 79.83% December 31, 2023 214 Market comparable pricing Pull through 1 - 99% 79.48 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally related to the Corporation’s loan portfolio. Interest Rate Swaps The Corporation uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation’s credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party. In June 2023, the Corporation entered into three interest rate swaps classified as cash flow hedges with notional amounts of $25 million each, to hedge the interest payments received on short term borrowings. Under the terms of the three swap agreements, the Corporation pays average fixed rates of 4.070%, 4.027% and 4.117%, and receives variable rates in return indexed to SOFR. The swaps mature between May, June, and December 2026. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and performs an assessment on a recurring basis and determined that the derivative currently is and is expected to be highly effective in offsetting changes in cash flows of the hedged item. For the three months ended March 31, 2024 and March 31, 2023, approximately $749 thousand and zero respectively, net of tax, is recorded in total comprehensive income as unrealized gains. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to March 31, 2024. At March 31, 2024 and December 31, 2023, the combined notional amount of the interest rate swaps was $75.0 million and $75.0 million and the fair value was an asset of $437 thousand and a liability of $539 thousand, respectively. Mortgage Banking Derivatives In connection with its mortgage banking activities, the Corporation enters into commitments to originate certain fixed rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, the Corporation may enter into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans or interest rate locks at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Interest rate lock commitments and forward commitments are recorded within other assets/liabilities on the consolidated balance sheets, with changes in fair values during the period recorded within net change in the fair value of derivative instruments on the consolidated statements of income. Customer Derivatives – Interest Rate Swaps Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers to swap a fixed rate product for a variable rate product, or vice versa. The Corporation executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Corporation executes with a third party, such that the Corporation minimizes its net interest rate risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The following table presents a summary of notional amounts and fair values of derivative financial instruments at the dates indicated: March 31, 2024 December 31, 2023 (dollars in thousands) Balance Sheet Line Item Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive fair values Other assets $ 61,882 $ 288 $ 33,735 $ 214 Negative fair values Other liabilities 15,943 (84) 5,399 (17) Total $ 77,825 $ 204 $ 39,134 $ 197 Forward Commitments Positive fair values Other assets $ — $ — $ — $ — Negative fair values Other liabilities — — 4,250 (41) Total $ — $ — $ 4,250 $ (41) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets $ 50,119 $ 3,758 $ 50,593 $ 3,528 Negative fair values Other liabilities 50,119 (3,754) 50,593 (3,544) Total $ 100,238 $ 4 $ 101,186 $ (17) Risk Participation Agreements Positive fair values Other assets $ — $ — $ — $ — Negative fair values Other liabilities 7,051 (5) 7,082 (11) Total $ 7,051 $ (5) $ 7,082 $ (11) Interest Rate Swaps Positive fair values Other assets $ 75,000 $ 437 $ — $ — Negative fair values Other liabilities — — 75,000 (539) Total $ 75,000 $ 437 $ 75,000 $ (539) Total derivative financial instruments $ 260,114 $ 640 $ 226,652 $ (410) Interest rate lock commitments are considered Level 3 in the fair value hierarchy, while the forward commitments and interest rate swaps are considered Level 2 in the fair value hierarchy. The following table presents a summary of the fair value gains and (losses) on derivative financial instruments: Three months ended (dollars in thousands) 2024 2023 Interest Rate Lock Commitments $ 7 $ (37) Forward Commitments 41 — Customer Derivatives - Interest Rate Swaps 21 (28) Risk Participation Agreements 6 (4) Interest Rate Swaps 976 — Net fair value gains (losses) on derivative financial instruments $ 1,051 $ (69) Net realized losses on derivative hedging activities were $19 thousand and $0 for the three months ended March 31, 2024 and 2023, respectively, and are included in non-interest income in the consolidated statements of income. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segments | Segments ASC Topic 280 – Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations. Our Banking segment (“Bank”) consists of commercial and retail banking. The Banking segment generates interest income from its lending and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale of available for sale investment securities, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income, title insurance fees, and other less significant non-interest income. Meridian Wealth (“Wealth”), a registered investment advisor and wholly-owned subsidiary of the Bank, provides a comprehensive array of wealth management services and products and the trusted guidance to help its clients and our banking customers prepare for the future. The unit generates non-interest income through advisory fees. Meridian’s mortgage banking segment (“Mortgage”) consists of 8 loan production offices throughout suburban Philadelphia and Maryland. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale. The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and net hedging gains (losses), if any. The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided. Segment Information Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 16,592 $ (6) $ 23 $ 16,609 $ 17,627 $ 24 $ 26 $ 17,677 Provision for credit losses 2,866 — — 2,866 1,399 — — 1,399 Net interest income after provision 13,726 (6) 23 13,743 16,228 24 26 16,278 Non-interest Income Mortgage banking income 88 — 3,546 3,634 58 — 3,214 3,272 Wealth management income — 1,317 — 1,317 — 1,196 — 1,196 SBA loan income 986 — — 986 713 — — 713 Net change in fair values 28 — (130) (102) (31) — 78 47 Net gain on hedging activity — — (19) (19) — — — — Other 772 — 1,396 2,168 689 — 721 1,410 Non-interest income 1,874 1,317 4,793 7,984 1,429 1,196 4,013 6,638 Non-interest expense 12,060 833 5,281 18,174 10,698 989 6,102 17,789 Income (loss) before income taxes $ 3,540 $ 478 $ (465) $ 3,553 $ 6,959 $ 231 $ (2,063) $ 5,127 Total Assets $ 2,219,626 $ 9,335 $ 63,962 $ 2,292,923 $ 2,171,679 $ 8,090 $ 50,014 $ 2,229,783 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. 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. Amounts subject to significant estimates are items such as the allowance for credit losses, lending related commitments and the related unfunded commitment reserve, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill, intangible assets, and servicing assets. These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the SEC (including our Annual Report on Form 10-K for the year ended December 31, 2023), subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any. Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results for the year ending December 31, 2024 or for any other period. |
Stock Split | Stock Split On February 28, 2023, the Corporation approved and declared a two-for-one stock split in the form of a stock dividend, paid March 20, 2023, to shareholders of record as of March 14, 2023. Under the terms of the stock split, the Corporation’s shareholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.00 per share. All share and per share amounts reported in the consolidated financial statements have been adjusted to reflect the two-for-one stock split. |
Pronouncements Adopted in 2024 and Pronouncements Not Yet Effective As Of March 31, 2024 | Pronouncements Adopted in 2024 FASB ASU 2020-06, “Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” This ASU clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature models. For public business entities that meet the definition of an SEC filer (excluding smaller reporting entities), the amendments are effective for fiscal years beginning after Dec. 15, 2021, and interim periods within. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, and interim periods within. Adoption of this standard did not have a material impact on our consolidated financial statements. FASB ASU 2023-02, "Investments Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method" In March 2023, the FASB issued ASU 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits, instead of only LIHTC structures. This amendment also eliminates certain LIHTC specific guidance aligning the accounting with other equity investments in tax credit structures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Adoption of this standard did not have a material effect on our consolidated financial statements. Pronouncements Not Yet Effective as of March 31, 2024: FASB ASU 2020-04 (Topic 848), “Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Issued in March 2020, ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Corporation does not have a significant concentration of loans, derivative contracts, borrowings or other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The Corporation expects to adopt the LIBOR transition relief allowed under this standard throughout 2024. FASB ASU 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures” The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update also do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Corporation is currently evaluating the impact on its results of operation, financial position, liquidity, and disclosures. FASB ASU 2023-09, “Income Taxes (Topic 740) Improvements to Income Tax Disclosures” The amendments in this update address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2024 and are to be applied on a prospective basis. Early adoption is permitted.The Corporation is currently evaluating the impact on its disclosures. FASB ASU 2024-01 Stock Compensation - Scope Application of Profits Interest and Similar Awards The amendments in this update improve the understandability of paragraph 718-10-15-3 apply to all entities that enter into share-based payments transactions. The amendments in this update are effective for fiscal years beginning after December 15, 2024 and are to be applied on a prospective basis. The Corporation is currently evaluating the impact on its disclosures. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per common share | Three months ended (dollars in thousands, except per share data) 2024 2023 Numerator for earnings per share: Net income available to common stockholders $ 2,676 $ 4,021 Denominators for earnings per share: Weighted average shares outstanding 11,245 11,456 Average unearned ESOP shares (157) (184) Basic weighted averages shares outstanding 11,088 11,272 Dilutive effects of assumed exercises of stock options 113 230 Dilutive effects of SERP shares — 154 Diluted weighted averages shares outstanding 11,201 11,656 Basic earnings per share $ 0.24 $ 0.36 Diluted earnings per share $ 0.24 $ 0.34 Antidilutive shares excluded from computation of average dilutive earnings per share 585 463 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | The following tables presents the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated: March 31, 2024 (dollars in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses Fair value # of Securities in unrealized loss position Securities available-for-sale: U.S. asset backed securities $ 19,285 $ 43 $ (175) $ — $ 19,153 10 U.S. government agency MBS 22,539 251 (443) — 22,347 13 U.S. government agency CMO 25,440 — (2,321) — 23,119 31 State and municipal securities 39,911 — (4,180) — 35,731 31 U.S. Treasuries 32,983 — (2,665) — 30,318 25 Non-U.S. government agency CMO 13,507 89 (535) — 13,061 10 Corporate bonds 8,200 — (933) — 7,267 13 Total securities available-for-sale $ 161,865 $ 383 $ (11,252) $ — $ 150,996 133 Amortized cost Gross unrecognized gains Gross unrecognized losses Allowance for credit losses Fair value # of Securities in unrecognized loss position Securities held to maturity: State and municipal securities $ 35,157 $ 20 $ (3,174) $ — $ 32,003 21 Total securities held-to-maturity $ 35,157 $ 20 $ (3,174) $ — $ 32,003 21 December 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses Fair value # of Securities in unrealized loss position Securities available-for-sale: U.S. asset backed securities $ 17,012 $ 25 $ (213) $ — $ 16,824 11 U.S. government agency MBS 22,750 364 (480) — 22,634 14 U.S. government agency CMO 21,850 — (2,277) — 19,573 30 State and municipal securities 40,093 — (3,877) — 36,216 31 U.S. Treasuries 32,982 — (2,560) — 30,422 25 Non-U.S. government agency CMO 13,605 102 (552) — 13,155 9 Corporate bonds 8,200 — (1,005) — 7,195 13 Total securities available-for-sale $ 156,492 $ 491 $ (10,964) $ — $ 146,019 133 Amortized cost Gross unrecognized gains Gross unrecognized losses Allowance for credit losses Fair value # of Securities in unrecognized loss position Securities held to maturity: State and municipal securities $ 35,781 $ 52 $ (3,103) $ — $ 32,730 21 Total securities held-to-maturity $ 35,781 $ 52 $ (3,103) $ — $ 32,730 21 |
Schedule of investment gross unrealized loss in continuous unrealized loss position | The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated: March 31, 2024 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair Unrealized losses Fair Unrealized losses Fair Unrealized losses Securities available-for-sale: U.S. asset backed securities $ 5,729 $ (32) $ 5,207 $ (143) $ 10,936 $ (175) U.S. government agency MBS 3,653 (70) 8,255 (373) 11,908 (443) U.S. government agency CMO 4,837 (57) 18,282 (2,264) 23,119 (2,321) State and municipal securities — — 35,731 (4,180) 35,731 (4,180) U.S. Treasuries — — 30,318 (2,665) 30,318 (2,665) Non-U.S. government agency CMO 2,438 (14) 5,937 (521) 8,375 (535) Corporate bonds 907 (94) 6,360 (839) 7,267 (933) Total securities available-for-sale $ 17,564 $ (267) $ 110,090 $ (10,985) $ 127,654 $ (11,252) Less than 12 Months 12 Months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Securities held-to-maturity: State and municipal securities $ 1,067 $ (2) $ 29,631 $ (3,172) $ 30,698 $ (3,174) Total securities held-to-maturity $ 1,067 $ (2) $ 29,631 $ (3,172) $ 30,698 $ (3,174) December 31, 2023 Less than 12 Months 12 Months or more Total (dollars in thousands) Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Securities available-for-sale: U.S. asset backed securities $ 4,981 $ (25) $ 6,195 $ (188) $ 11,176 $ (213) U.S. government agency MBS 4,864 (35) 8,170 (445) 13,034 (480) U.S. government agency CMO 2,687 (36) 16,886 (2,241) 19,573 (2,277) State and municipal securities — — 36,216 (3,877) 36,216 (3,877) U.S. Treasuries — — 30,422 (2,560) 30,422 (2,560) Non-U.S. government agency CMO 1,127 (4) 6,065 (548) 7,192 (552) Corporate bonds 907 (93) 6,288 (912) 7,195 (1,005) Total securities available-for-sale $ 14,566 $ (193) $ 110,242 $ (10,771) $ 124,808 $ (10,964) Less than 12 Months 12 Months or more Total Fair Unrecognized Fair Unrecognized Fair Unrecognized Securities held-to-maturity: State and municipal securities $ 1,021 $ (6) $ 29,404 $ (3,097) $ 30,425 $ (3,103) Total securities held-to-maturity $ 1,021 $ (6) $ 29,404 $ (3,097) $ 30,425 $ (3,103) |
Schedule of amortized cost and carrying value of held-to-maturity securities and available-for-sale securities by contractual maturity | The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties. March 31, 2024 Available-for-sale Held-to-maturity (dollars in thousands) Amortized cost Fair value Amortized cost Fair value Due in one year or less $ — $ — $ — $ — Due after one year through five years 32,983 30,318 3,334 3,212 Due after five years through ten years 16,509 15,036 4,337 3,677 Due after ten years 50,887 47,115 27,486 25,114 Subtotal 100,379 92,469 35,157 32,003 Mortgage-related securities 61,486 58,527 — — Total $ 161,865 $ 150,996 $ 35,157 $ 32,003 |
Gross gain and (loss) on sale of investment securities available for sale | There were no sales of investment securities available for sale for the three month ended March 31, 2024, or 2023. |
Loans and Other Finance Recei_2
Loans and Other Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Summary of loans and leases outstanding | The following table presents loans and other finance receivables detailed by category at the dates indicated: (dollars in thousands) March 31, December 31, Real estate loans: Commercial mortgage $ 763,356 $ 737,863 Home equity lines and loans 76,746 76,287 Residential mortgage 262,837 260,604 Construction 263,072 246,440 Total real estate loans 1,366,011 1,321,194 Commercial and industrial 328,148 302,891 Small business loans 146,604 142,342 Consumer 381 389 Leases, net 108,892 121,632 Total loans $ 1,950,036 $ 1,888,448 Balances included in loans, net of fees and costs: Residential mortgage real estate loans accounted under fair value option, at fair value $ 13,139 $ 13,726 Residential mortgage real estate loans accounted under fair value option, at amortized cost 15,812 16,198 Unearned lease income included in leases, net (16,083) (19,210) Unamortized net deferred loan origination costs $ 6,279 $ 7,358 |
Schedule of age analysis of past due loans and leases | The following tables present an aging of the Corporation’s loans at the dates indicated: March 31, 2024 (dollars in thousands) 30-89 days past due Total past due Current Total accruing loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ — $ — $ 762,785 $ 762,785 $ 571 $ 763,356 0.07 % Home equity lines and loans 417 417 75,148 75,565 1,181 76,746 2.08 Residential mortgage (1) 3,931 3,931 254,234 258,165 4,672 262,837 3.27 Construction 192 192 261,096 261,288 1,784 263,072 0.75 Commercial and industrial — — 312,841 312,841 15,307 328,148 4.66 Small business loans 1,712 1,712 132,146 133,858 12,746 146,604 9.86 Consumer 20 20 361 381 — 381 5.25 Leases, net 1,707 1,707 105,201 106,908 1,984 108,892 3.39 % Total $ 7,979 $ 7,979 $ 1,903,812 $ 1,911,791 $ 38,245 $ 1,950,036 2.37 % (1) Includes $13.1 million of loans at fair value of which $12.4 million are current, $— are 30-89 days past due and $771 thousand are nonaccrual. December 31, 2023 (dollars in thousands) 30-89 days past due Total past due Current Total accruing loans and leases Nonaccrual loans and leases Total loans portfolio and leases % Delinquent Commercial mortgage $ 571 $ 571 $ 737,292 $ 737,863 $ — $ 737,863 0.08 % Home equity lines and loans 566 566 74,684 75,250 1,037 76,287 2.10 Residential mortgage (1) 1,103 1,103 254,965 256,068 4,536 260,604 2.16 Construction — — 245,234 245,234 1,206 246,440 0.49 Commercial and industrial — — 287,478 287,478 15,413 302,891 5.09 Small business loans 1,499 1,499 131,403 132,902 9,440 142,342 7.69 Consumer — — 389 389 — 389 — Leases, net 2,197 2,197 117,304 119,501 2,131 121,632 3.56 % Total $ 5,936 $ 5,936 $ 1,848,749 $ 1,854,685 $ 33,763 $ 1,888,448 2.10 % (1) Includes $13.7 million of loans at fair value of which $12.9 million are current, $— are 30-89 days past due and $786 thousand are nonaccrual. |
Schedule of financing receivables, nonaccrual | The following tables presents the amortized costs basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing, net of fees and costs as of March 31, 2024 and December 31, 2023. As of this date here were no loans 90 days or more past due and still accruing. March 31, 2024 December 31, 2023 (dollars in thousands) Nonaccrual without ACL Nonaccrual with ACL Total nonaccrual Nonaccrual without ACL Nonaccrual with ACL Total nonaccrual Commercial mortgage $ 571 $ — $ 571 $ — $ — $ — Home equity lines and loans 1,181 — 1,181 1,037 — 1,037 Residential mortgage 4,672 — 4,672 4,536 — 4,536 Construction 1,784 — 1,784 1,206 — 1,206 Commercial and industrial 3,341 11,966 15,307 3,343 12,070 15,413 Small business loans 2,609 10,137 12,746 3,607 5,833 9,440 Leases, net 1,984 — 1,984 2,131 — 2,131 Total $ 16,142 $ 22,103 $ 38,245 $ 15,860 $ 17,903 $ 33,763 |
Schedule of non-accruing collateral dependent loans by class or loans | The following tables presents the amortized cost basis of non-accruing collateral-dependent loans by class or loans as of March 31, 2024 and December 31, 2023 under the current expected credit loss model: March 31, 2024 December 31, 2023 (dollars in thousands) Real estate Equipment and other Total Real estate Equipment and other Total Commercial mortgage $ 571 $ — $ 571 $ — $ — $ — Home equity lines and loans 1,181 — 1,181 1,037 — 1,037 Residential mortgage 4,672 — 4,672 4,536 — 4,536 Construction 1,784 — 1,784 1,206 — 1,206 Commercial and industrial 1,888 13,419 15,307 1,890 13,523 15,413 Small business loans 8,543 4,203 12,746 6,320 3,120 9,440 Leases, net — 1,984 1,984 — 2,131 2,131 Total $ 18,639 $ 19,606 $ 38,245 $ 14,989 $ 18,774 $ 33,763 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Schedule of allocation of the allowance for loan and lease losses | The following tables provide the activity of our allowance for credit losses for the three months ended March 31, 2024 and March 31, 2023 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2023): Three Months Ended March 31, 2024 (dollars in thousands) Beginning balance Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 4,375 $ — $ — $ (196) $ 4,179 Home equity lines and loans 998 — 2 (42) 958 Residential mortgage 1,020 — — 157 1,177 Construction 485 — — 98 583 Commercial and industrial 4,518 (208) 2 771 5,083 Small business loans 7,005 (87) 3 884 7,805 Consumer — (1) 1 1 1 Leases 3,706 (2,148) 126 1,701 3,385 Total $ 22,107 $ (2,444) $ 134 $ 3,374 $ 23,171 Three Months Ended March 31, 2023 (dollars in thousands) Beginning Balance Adjustment to initially apply ASU No. 2016-13 for CECL Charge-offs Recoveries Provision (recovery of provision) for credit losses Ending balance Commercial mortgage $ 4,095 $ (526) $ — $ — $ (94) $ 3,475 Home equity lines and loans 188 439 (33) 2 19 615 Residential mortgage 948 17 — — (97) 868 Construction 3,075 (1,763) — — (193) 1,119 Commercial and industrial 4,012 (1,023) — 39 (295) 2,733 Small business loans 4,909 1,110 — — 297 6,316 Consumer 3 (3) — — — — Leases 1,598 3,345 (1,464) 3 1,834 5,316 Total $ 18,828 $ 1,596 $ (1,497) $ 44 $ 1,471 $ 20,442 |
Reconciliation of provision for credit losses | The following table provides a reconciliation of the provision for credit losses on the consolidated statements of income between the funded and unfunded components at the dates indicated: Three Months Ended (dollars in thousands) 2024 2023 Provision for credit losses - funded $ 3,374 $ 1,471 Recovery of provision for credit losses - unfunded (508) (72) Total provision for credit losses $ 2,866 $ 1,399 |
Allowance allocated by portfolio segment | The following tables detail the allocation of the ACL and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases at the dates indicated: March 31, 2024 Allowance for credit losses Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,179 $ 4,179 $ 571 $ 762,785 $ 763,356 Home equity lines and loans — 958 958 1,181 75,565 76,746 Residential mortgage — 1,177 1,177 3,901 245,797 249,698 Construction — 583 583 1,784 261,288 263,072 Commercial and industrial 4,061 1,022 5,083 15,307 312,841 328,148 Small business loans 4,402 3,403 7,805 12,746 133,858 146,604 Consumer — 1 1 — 381 381 Leases, net — 3,385 3,385 1,984 106,908 108,892 Total (1) $ 8,463 $ 14,708 $ 23,171 $ 37,474 $ 1,899,423 $ 1,936,897 ( 1) Excludes deferred fees and loans carried at fair value. December 31, 2023 Allowance for credit losses Carrying value of loans and leases (dollars in thousands) Individually evaluated Collectively evaluated Total Individually evaluated Collectively evaluated Total Commercial mortgage $ — $ 4,375 $ 4,375 $ — $ 737,863 $ 737,863 Home equity lines and loans — 998 998 1,037 75,250 76,287 Residential mortgage — 1,020 1,020 3,750 243,128 246,878 Construction — 485 485 1,206 245,234 246,440 Commercial and industrial 3,691 827 4,518 15,413 287,478 302,891 Small business loans 2,805 4,200 7,005 9,440 132,902 142,342 Consumer — — — — 389 389 Leases, net — 3,706 3,706 2,131 119,501 121,632 Total (1) $ 6,496 $ 15,611 $ 22,107 $ 32,977 $ 1,841,745 $ 1,874,722 ( 1) Excludes deferred fees and loans carried at fair value. |
Schedule of carrying value of loans and leases by portfolio segment based on the credit quality indicators | he following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses at the dates indicated: March 31, 2024 Revolving Loans Converted to Term Loans Revolving Loans Total Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Commercial mortgage Pass/Watch $ 28,664 $ 106,084 $ 166,840 $ 152,738 $ 96,579 $ 192,570 $ 511 $ 743 $ 744,729 Special Mention — — — — 4,823 9,873 667 — 15,363 Substandard — 200 — 571 — 2,493 — — 3,264 Total $ 28,664 $ 106,284 $ 166,840 $ 153,309 $ 101,402 $ 204,936 $ 1,178 $ 743 $ 763,356 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass/Watch $ 24,052 $ 74,841 $ 77,792 $ 20,778 $ 24,823 $ 4,353 $ 123 $ 25,066 $ 251,828 Special Mention — — — 1,352 638 4,329 — 3,140 9,459 Substandard — — — 67 — 1,718 — — 1,785 Total $ 24,052 $ 74,841 $ 77,792 $ 22,197 $ 25,461 $ 10,400 $ 123 $ 28,206 $ 263,072 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass/Watch $ 35,892 $ 24,890 $ 28,772 $ 23,569 $ 9,994 $ 35,967 $ — $ 134,590 $ 293,674 Special Mention — — — — — 1,356 — 4,706 6,062 Substandard — — 3,940 2,906 — 6,886 — 14,680 28,412 Total $ 35,892 $ 24,890 $ 32,712 $ 26,475 $ 9,994 $ 44,209 $ — $ 153,976 $ 328,148 Current period gross charge-offs $ — $ (204) $ — $ — $ — $ — $ — $ (4) $ (208) Small business loans Pass/Watch $ 8,549 $ 30,066 $ 28,585 $ 35,029 $ 11,274 $ 7,382 $ — $ 12,552 $ 133,437 Special Mention — — — — — — — — — Substandard — 86 2,482 5,897 2,804 — — 1,898 13,167 Total $ 8,549 $ 30,152 $ 31,067 $ 40,926 $ 14,078 $ 7,382 $ — $ 14,450 $ 146,604 Current period gross charge-offs $ — $ — $ — $ (44) $ — $ — $ — $ (43) $ (87) Total by risk rating Pass/Watch $ 97,157 $ 235,881 $ 301,989 $ 232,114 $ 142,670 $ 240,272 $ 634 $ 172,951 $ 1,423,668 Special Mention — — — 1,352 5,461 15,558 667 7,846 30,884 Substandard — 286 6,422 9,441 2,804 11,097 — 16,578 46,628 Total $ 97,157 $ 236,167 $ 308,411 $ 242,907 $ 150,935 $ 266,927 $ 1,301 $ 197,375 $ 1,501,180 Total current period gross charge-offs $ — $ (204) $ — $ (44) $ — $ — $ — $ (47) $ (295) December 31, 2023 Revolving Loans Converted to Term Loans Revolving Loans Total Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Commercial mortgage Pass/Watch $ 106,341 $ 160,302 $ 158,647 $ 97,535 $ 56,382 $ 133,349 $ 511 $ 423 $ 713,490 Special Mention — — — 4,425 4,341 9,975 667 — 19,408 Substandard 200 — 571 — 1,635 2,233 — 326 4,965 Doubtful — — — — — — — — — Total $ 106,541 $ 160,302 $ 159,218 $ 101,960 $ 62,358 $ 145,557 $ 1,178 $ 749 $ 737,863 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Construction Pass/Watch $ 67,776 $ 88,737 $ 21,793 $ 27,336 $ 2,307 $ 2,093 $ 123 $ 25,976 $ 236,141 Special Mention — — 1,329 — 511 4,329 — 2,924 9,093 Substandard — — — — — 1,206 — — 1,206 Doubtful — — — — — — — — — Total $ 67,776 $ 88,737 $ 23,122 $ 27,336 $ 2,818 $ 7,628 $ 123 $ 28,900 $ 246,440 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial and industrial Pass/Watch $ 26,314 $ 38,748 $ 24,523 $ 8,449 $ 4,148 $ 33,726 $ — $ 131,304 $ 267,212 Special Mention 500 9 — — — 1,361 — 6,440 8,310 Substandard — — 2,906 — 300 9,469 — 14,694 27,369 Doubtful — — — — — — — — — Total $ 26,814 $ 38,757 $ 27,429 $ 8,449 $ 4,448 $ 44,556 $ — $ 152,438 $ 302,891 Current period gross charge-offs $ (209) $ (55) $ — $ (2) $ — $ — $ — $ — $ (266) Small business loans Pass/Watch $ 35,764 $ 26,621 $ 37,278 $ 11,687 $ 6,672 $ 920 $ — $ 12,507 $ 131,449 Special Mention — — — 909 — — — 314 1,223 Substandard 49 1,523 5,090 2,122 — — — 886 9,670 Doubtful — — — — — — — — — Total $ 35,813 $ 28,144 $ 42,368 $ 14,718 $ 6,672 $ 920 $ — $ 13,707 $ 142,342 Current period gross charge-offs $ — $ — $ — $ (11) $ (912) $ — $ — $ (565) $ (1,488) Total by risk rating Pass/Watch $ 236,195 $ 314,408 $ 242,241 $ 145,007 $ 69,509 $ 170,088 $ 634 $ 170,210 $ 1,348,292 Special Mention 500 9 1,329 5,334 4,852 15,665 667 9,678 38,034 Substandard 249 1,523 8,567 2,122 1,935 12,908 — 15,906 43,210 Doubtful — — — — — — — — — Total $ 236,944 $ 315,940 $ 252,137 $ 152,463 $ 76,296 $ 198,661 $ 1,301 $ 195,794 $ 1,429,536 Total current period gross charge-offs $ (209) $ (55) $ — $ (13) $ (912) $ — $ — $ (565) $ (1,754) The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2024 and December 31, 2023. In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated: March 31, 2024 Revolving Loans Total Term Loans (dollars in thousands) 2024 2023 2022 2021 2020 Prior Home equity lines and loans Performing $ 122 $ 340 $ 788 $ 311 $ 347 $ 4,152 $ 69,025 $ 75,085 Nonperforming — 1,661 1,661 Total $ 122 $ 340 $ 788 $ 311 $ 347 $ 4,152 $ 70,686 $ 76,746 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Residential mortgage (1) Performing $ 7,247 $ 49,114 $ 149,606 $ 21,692 $ 6,430 $ 11,708 $ — $ 245,797 Nonperforming — — 1,515 — 1,031 1,355 — 3,901 Total $ 7,247 $ 49,114 $ 151,121 $ 21,692 $ 7,461 $ 13,063 $ — $ 249,698 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ — $ 40 $ 30 $ — $ — $ 259 $ 52 $ 381 Nonperforming — — — — — — — — Total $ — $ 40 $ 30 $ — $ — $ 259 $ 52 $ 381 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ (1) $ (1) Leases, net Performing $ 123 $ 20,621 $ 50,571 $ 27,386 $ 8,207 $ — $ — $ 106,908 Nonperforming — 285 1,081 408 210 — — 1,984 Total $ 123 $ 20,906 $ 51,652 $ 27,794 $ 8,417 $ — $ — $ 108,892 Current period gross charge-offs $ — $ (369) $ (1,429) $ (277) $ (73) $ — $ — $ (2,148) Total by Payment Performance Performing $ 7,492 $ 70,115 $ 200,995 $ 49,389 $ 14,984 $ 16,119 $ 69,077 $ 428,171 Nonperforming — 285 2,596 408 1,241 1,355 1,661 7,546 Total $ 7,492 $ 70,400 $ 203,591 $ 49,797 $ 16,225 $ 17,474 $ 70,738 $ 435,717 Total current period gross charge-offs $ — $ (369) $ (1,429) $ (277) $ (73) $ — $ (1) $ (2,149) (1) Excludes $13.1 million of loans at fair value. December 31, 2023 Revolving Loans Total Term Loans (dollars in thousands) 2023 2022 2021 2020 2019 Prior Home equity lines and loans Performing $ 343 $ 795 $ 314 $ 352 $ 2,191 $ 2,295 $ 68,600 $ 74,890 Nonperforming — — — — — — 1,397 1,397 Total $ 343 $ 795 $ 314 $ 352 $ 2,191 $ 2,295 $ 69,997 $ 76,287 Current period gross charge-offs $ — $ — $ — $ — $ (33) $ — $ (54) $ (87) Residential mortgage (1) Performing $ 48,576 $ 154,219 $ 22,237 $ 6,260 $ 456 $ 11,380 $ — $ 243,128 Nonperforming — 1,350 — 1,043 — 1,357 — 3,750 Total $ 48,576 $ 155,569 $ 22,237 $ 7,303 $ 456 $ 12,737 $ — $ 246,878 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer Performing $ 39 $ 35 $ — $ — $ 32 $ 234 $ 49 $ 389 Nonperforming — — — — — — — — Total $ 39 $ 35 $ — $ — $ 32 $ 234 $ 49 $ 389 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ (2) $ (2) Leases, net Performing $ 23,054 $ 55,940 $ 30,876 $ 9,718 $ — $ — $ — $ 119,588 Nonperforming 263 1,194 368 219 — — — 2,044 Total $ 23,317 $ 57,134 $ 31,244 $ 9,937 $ — $ — $ — $ 121,632 Current period gross charge-offs $ (128) $ (2,165) $ (1,450) $ (290) $ — $ — $ — $ (4,033) Total by Payment Performance Performing $ 72,012 $ 210,989 $ 53,427 $ 16,330 $ 2,679 $ 13,909 $ 68,649 $ 437,995 Nonperforming 263 2,544 368 1,262 — 1,357 1,397 7,191 Total $ 72,275 $ 213,533 $ 53,795 $ 17,592 $ 2,679 $ 15,266 $ 70,046 $ 445,186 Total current period gross charge-offs $ (128) $ (2,165) $ (1,450) $ (290) $ (33) $ — $ (56) $ (4,122) (1) Excludes $13.7 million of fair value loans |
Financing receivable, modified | The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024. There were no modifications granted to debtors experiencing financial difficulty for the three months ended March 31, 2023. Three Months Ended March 31, 2024 Number of Loans Amortized Cost Basis % of Total Class of Financing Receivable Related Reserve (dollars in thousands) Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 $ 359 0.2 % $ — Commercial & industrial 2 1,097 0.3 % — Total 4 $ 1,456 $ — Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 1 $ 895 0.6 % $ 784 Total 1 $ 895 $ 784 The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2024. Three Months Ended March 31, 2024 Number of Loans (dollars in thousands) Financial Effect Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 2 Extend maturity date Commercial & industrial 2 Extend maturity date and allow additional lender funding Total 4 Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: Small business loans 1 Total 1 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of short term borrowings | The following table presents short-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest March 31, December 31, FHLB Open Repo Plus Weekly 06/10/2024 5.68% $ 84,789 $ 104,792 FRB BTFP Advances 03/29/2024 4.76% — 33,000 FHLB Mid-term Repo Fixed 9/30/2024 4.60% 3,432 3,432 FHLB Mid-term Repo Fixed 10/25/2024 5.03% 8,097 — FHLB Mid-term Repo Fixed 1/27/2025 4.85% 8,000 — FHLB Mid-term Repo Fixed 2/24/2025 5.35% 7,813 — Total Short-Term Borrowings $ 112,131 $ 141,224 |
Schedule of long term debt | The following table presents long-term borrowings at the dates indicated: (dollars in thousands) Maturity Interest March 31, December 31, FHLB Mid-term Repo Fixed 12/22/2025 4.23% $ 8,935 $ 8,935 FHLB Mid-term Repo Fixed 10/14/2025 5.16% 9,492 9,492 FHLB Mid-term Repo Fixed 7/14/2026 4.57% 15,245 15,245 Total Long-Term Borrowings $ 33,672 $ 33,672 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Mortgage Servicing Rights | |
Servicing Assets at Fair Value [Line Items] | |
Schedule of servicing assets | Changes in the MSR balance are summarized as follows: Three months ended (dollars in thousands) 2024 2023 Balance at beginning of the period $ 8,622 $ 9,942 Servicing rights capitalized 10 — Amortization of servicing rights (318) (371) Change in valuation allowance — 2 Balance at end of the period $ 8,314 $ 9,573 |
Schedule of valuation allowance for servicing assets | Activity in the valuation allowance for MSRs was as follows: Three months ended (dollars in thousands) 2024 2023 Valuation allowance, beginning of period $ — $ (2) Impairment — — Recovery — 2 Valuation allowance, end of period $ — $ — |
Schedule of sensitivity of fair value of servicing assets | The sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) March 31, December 31, Fair value of residential mortgage servicing rights $ 10,973 $ 11,221 Weighted average life (months) 28 28 Prepayment speed 8.29 % 8.57 % Impact on fair value: 10% adverse change $ (253) $ (506) 20% adverse change (496) (973) Discount rate 9.50 % 9.50 % Impact on fair value: 10% adverse change $ (404) $ (415) 20% adverse change (781) (799) |
SBA Loan Servicing Rights | |
Servicing Assets at Fair Value [Line Items] | |
Schedule of servicing assets | Changes in the SBA loan servicing asset balance are summarized as follows: Three months ended (dollars in thousands) 2024 2023 Balance at beginning of the period $ 3,127 $ 2,404 Servicing rights capitalized 197 214 Amortization of servicing rights (241) (195) Change in valuation allowance 176 129 Balance at end of the period $ 3,259 $ 2,552 |
Schedule of valuation allowance for servicing assets | Activity in the valuation allowance for SBA loan servicing assets was as follows: Three months ended (dollars in thousands) 2024 2023 Valuation allowance, beginning of period $ (268) $ (364) Impairment — — Recovery 176 129 Valuation allowance, end of period $ (92) $ (235) |
Schedule of sensitivity of fair value of servicing assets | The sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table. (dollars in thousands) March 31, December 31, Fair value of SBA loan servicing rights $ 3,567 $ 3,376 Weighted average life (years) 3.3 3.8 Prepayment speed 15.21 % 14.70 % Impact on fair value: 10% adverse change $ (143) $ (125) 20% adverse change (275) (241) Discount rate 13.93 % 14.66 % Impact on fair value: 10% adverse change $ (79) $ (74) 20% adverse change (155) (145) |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following table presents the fair value of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy at the dates indicated : March 31, 2024 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 19,153 $ — $ 19,153 $ — U.S. government agency MBS 22,347 — 22,347 — U.S. government agency CMO 23,119 — 23,119 — State and municipal securities 35,731 — 35,731 — U.S. Treasuries 30,318 30,318 — — Non-U.S. government agency CMO 13,061 — 13,061 Corporate bonds 7,267 — 7,267 — Equity investments 2,092 — 2,092 — Mortgage loans held for sale 29,124 — 29,124 — Mortgage loans held for investment 13,139 — 13,139 — Interest rate lock commitments 288 — — 288 Forward commitments — — — — Customer derivatives - interest rate swaps 3,758 — 3,758 — Interest rate swaps 437 — 437 — Total $ 199,834 $ 30,318 $ 169,228 $ 288 Liabilities Interest rate lock commitments $ 84 $ — $ — $ 84 Customer derivatives - interest rate swaps 3,754 — 3,754 — Risk Participation Agreements 5 — 5 — Total $ 3,843 $ — $ 3,759 $ 84 December 31, 2023 (dollars in thousands) Total Level 1 Level 2 Level 3 Assets Securities available for sale: U.S. asset backed securities $ 16,824 $ — $ 16,824 $ — U.S. government agency MBS 22,634 — 22,634 — U.S. government agency CMO 19,573 — 19,573 — State and municipal securities 36,216 — 36,216 — U.S. Treasuries 30,422 30,422 — — Non-U.S. government agency CMO 13,155 — 13,155 — Corporate bonds 7,195 — 7,195 — Equity investments 2,121 — 2,121 — Mortgage loans held for sale 24,816 — 24,816 — Mortgage loans held for investment 13,726 — 13,726 — Interest rate lock commitments 214 — — 214 Customer derivatives - interest rate swaps 3,528 — 3,528 — Total $ 190,424 $ 30,422 $ 159,788 $ 214 Liabilities Interest rate lock commitments $ 17 $ — $ — $ 17 Forward commitments 41 — 41 — Customer derivatives - interest rate swaps 3,544 — 3,544 — Risk Participation Agreements 11 — 11 — Total $ 3,613 $ — $ 3,596 $ 17 |
Schedule of financial assets measured at fair value on non-recurring basis | The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated: (dollars in thousands) March 31, December 31, Mortgage servicing rights $ 8,314 $ 8,621 SBA loan servicing rights 3,259 3,127 Individually evaluated loans (1) Commercial and industrial 7,905 9,818 Small business loans 5,735 3,134 Total $ 25,213 $ 24,700 |
Schedule of measurement inputs | The following table details the valuation techniques for Level 3 individually evaluated loans. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs March 31, 2024 $ 13,640 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-33% discount December 31, 2023 12,952 Appraisal of collateral Management adjustments on appraisals for property type and recent activity 2%-33% discount The following table details the valuation techniques for Level 3 interest rate lock commitments. (dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average March 31, 2024 $ 288 Market comparable pricing Pull through 1 - 99% 79.83% December 31, 2023 214 Market comparable pricing Pull through 1 - 99% 79.48 |
Schedule of estimated fair values of financial instruments | The following table presents the estimated fair values of the Corporation’s financial instruments at the dates indicated: March 31, 2024 December 31, 2023 (dollars in thousands) Fair Value Carrying Fair value Carrying Fair value Financial assets: Cash and cash equivalents Level 1 $ 23,027 $ 23,027 $ 56,697 $ 56,697 Mortgage loans held for sale Level 2 29,124 29,124 24,816 24,816 Loans receivable, net of the allowance for credit losses Level 3 1,943,176 1,889,637 1,882,080 1,832,558 Mortgage loans held for investment Level 2 13,139 13,139 13,726 13,726 Financial liabilities: Deposits Level 2 $ 1,900,696 $ 1,888,300 $ 1,823,462 $ 1,834,700 Borrowings Level 2 145,803 159,800 174,896 176,400 Subordinated debentures Level 2 49,867 49,721 49,836 50,223 |
Schedule of level 3 inputs reconciliation | The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the periods indicated. Three months ended (dollars in thousands) 2024 2023 Balance at beginning of the period $ 214 $ 87 Increase in value 74 52 Balance at end of the period $ 288 $ 139 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of the notional amounts and fair values of derivative financial instruments | The following table presents a summary of notional amounts and fair values of derivative financial instruments at the dates indicated: March 31, 2024 December 31, 2023 (dollars in thousands) Balance Sheet Line Item Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive fair values Other assets $ 61,882 $ 288 $ 33,735 $ 214 Negative fair values Other liabilities 15,943 (84) 5,399 (17) Total $ 77,825 $ 204 $ 39,134 $ 197 Forward Commitments Positive fair values Other assets $ — $ — $ — $ — Negative fair values Other liabilities — — 4,250 (41) Total $ — $ — $ 4,250 $ (41) Customer Derivatives - Interest Rate Swaps Positive fair values Other assets $ 50,119 $ 3,758 $ 50,593 $ 3,528 Negative fair values Other liabilities 50,119 (3,754) 50,593 (3,544) Total $ 100,238 $ 4 $ 101,186 $ (17) Risk Participation Agreements Positive fair values Other assets $ — $ — $ — $ — Negative fair values Other liabilities 7,051 (5) 7,082 (11) Total $ 7,051 $ (5) $ 7,082 $ (11) Interest Rate Swaps Positive fair values Other assets $ 75,000 $ 437 $ — $ — Negative fair values Other liabilities — — 75,000 (539) Total $ 75,000 $ 437 $ 75,000 $ (539) Total derivative financial instruments $ 260,114 $ 640 $ 226,652 $ (410) |
Summary of the fair value gains and losses on derivative financial instruments | The following table presents a summary of the fair value gains and (losses) on derivative financial instruments: Three months ended (dollars in thousands) 2024 2023 Interest Rate Lock Commitments $ 7 $ (37) Forward Commitments 41 — Customer Derivatives - Interest Rate Swaps 21 (28) Risk Participation Agreements 6 (4) Interest Rate Swaps 976 — Net fair value gains (losses) on derivative financial instruments $ 1,051 $ (69) |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of business segment financial information | The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided. Segment Information Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 (Dollars in thousands) Bank Wealth Mortgage Total Bank Wealth Mortgage Total Net interest income $ 16,592 $ (6) $ 23 $ 16,609 $ 17,627 $ 24 $ 26 $ 17,677 Provision for credit losses 2,866 — — 2,866 1,399 — — 1,399 Net interest income after provision 13,726 (6) 23 13,743 16,228 24 26 16,278 Non-interest Income Mortgage banking income 88 — 3,546 3,634 58 — 3,214 3,272 Wealth management income — 1,317 — 1,317 — 1,196 — 1,196 SBA loan income 986 — — 986 713 — — 713 Net change in fair values 28 — (130) (102) (31) — 78 47 Net gain on hedging activity — — (19) (19) — — — — Other 772 — 1,396 2,168 689 — 721 1,410 Non-interest income 1,874 1,317 4,793 7,984 1,429 1,196 4,013 6,638 Non-interest expense 12,060 833 5,281 18,174 10,698 989 6,102 17,789 Income (loss) before income taxes $ 3,540 $ 478 $ (465) $ 3,553 $ 6,959 $ 231 $ (2,063) $ 5,127 Total Assets $ 2,219,626 $ 9,335 $ 63,962 $ 2,292,923 $ 2,171,679 $ 8,090 $ 50,014 $ 2,229,783 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | Feb. 28, 2023 $ / shares | Mar. 31, 2024 $ / shares | Dec. 31, 2023 $ / shares |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Stock split, conversion ratio | 2 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Stock dividend received for every share held (in shares) | 1 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator for earnings per share: | ||
Net income available to common stockholders | $ 2,676 | $ 4,021 |
Denominators for earnings per share: | ||
Weighted average shares outstanding (in shares) | 11,245 | 11,456 |
Average unearned ESOP shares (in shares) | (157) | (184) |
Basic weighted averages shares outstanding (in shares) | 11,088 | 11,272 |
Dilutive effects of assumed exercises of stock options (in shares) | 113 | 230 |
Dilutive effects of SERP shares (in shares) | 0 | 154 |
Diluted weighted averages shares outstanding (in shares) | 11,201 | 11,656 |
Basic earnings per share (in USD per share) | $ 0.24 | $ 0.36 |
Diluted earnings per share (in USD per share) | $ 0.24 | $ 0.34 |
Antidilutive shares excluded from computation of average dilutive earnings per share (in shares) | 585 | 463 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 161,865 | $ 156,492 |
Gross unrealized gains | 383 | 491 |
Gross unrealized losses | (11,252) | (10,964) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 150,996 | $ 146,019 |
# of Securities in unrealized loss position | security | 133 | 133 |
Securities held to maturity: | ||
Amortized cost | $ 35,157 | $ 35,781 |
Gross unrealized gains | 20 | 52 |
Gross unrealized losses | (3,174) | (3,103) |
Allowance for credit losses | 0 | 0 |
Fair value | $ 32,003 | $ 32,730 |
# of Securities in unrealized loss position | security | 21 | 21 |
U.S. asset backed securities | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 19,285 | $ 17,012 |
Gross unrealized gains | 43 | 25 |
Gross unrealized losses | (175) | (213) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 19,153 | $ 16,824 |
# of Securities in unrealized loss position | security | 10 | 11 |
U.S. government agency MBS | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 22,539 | $ 22,750 |
Gross unrealized gains | 251 | 364 |
Gross unrealized losses | (443) | (480) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 22,347 | $ 22,634 |
# of Securities in unrealized loss position | security | 13 | 14 |
U.S. government agency CMO | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 25,440 | $ 21,850 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2,321) | (2,277) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 23,119 | $ 19,573 |
# of Securities in unrealized loss position | security | 31 | 30 |
State and municipal securities | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 39,911 | $ 40,093 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4,180) | (3,877) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 35,731 | $ 36,216 |
# of Securities in unrealized loss position | security | 31 | 31 |
Securities held to maturity: | ||
Amortized cost | $ 35,781 | |
Gross unrealized gains | 52 | |
Gross unrealized losses | $ (3,174) | (3,103) |
Allowance for credit losses | 0 | |
Fair value | $ 32,730 | |
# of Securities in unrealized loss position | security | 21 | |
U.S. Treasuries | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | 32,983 | $ 32,982 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2,665) | (2,560) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 30,318 | $ 30,422 |
# of Securities in unrealized loss position | security | 25 | 25 |
Non-U.S. government agency CMO | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 13,507 | $ 13,605 |
Gross unrealized gains | 89 | 102 |
Gross unrealized losses | (535) | (552) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 13,061 | $ 13,155 |
# of Securities in unrealized loss position | security | 10 | 9 |
Corporate bonds | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 8,200 | $ 8,200 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (933) | (1,005) |
Allowance for credit losses | 0 | 0 |
Debt securities, fair value | $ 7,267 | $ 7,195 |
# of Securities in unrealized loss position | security | 13 | 13 |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) | |
Securities | ||
Number of securities deemed other-than-temporarily impaired | security | 0 | |
Debt securities, fair value | $ 150,996 | $ 146,019 |
Asset Pledged as Collateral | ||
Securities | ||
Debt securities, fair value | $ 57,800 | $ 60,100 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | $ 17,564 | $ 14,566 |
12 Months or More, Fair Value | 110,090 | 110,242 |
Total Fair Value | 127,654 | 124,808 |
Less than 12 Months, Unrealized Losses | (267) | (193) |
12 Months or More, Unrealized Losses | (10,985) | (10,771) |
Total Unrealized Losses | (11,252) | (10,964) |
Debt Securities, Held-to-Maturity, Maturity [Abstract] | ||
Less than 12 Months, Fair Value | 1,067 | 1,021 |
12 Months or More, Fair Value | 29,631 | 29,404 |
Total Fair Value | 30,698 | 30,425 |
Less than 12 Months, Unrecognized Loss | (2) | (6) |
12 Months or More, Unrecognized Loss | (3,172) | (3,097) |
Total securities held-to-maturity | (3,174) | (3,103) |
U.S. asset backed securities | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 5,729 | 4,981 |
12 Months or More, Fair Value | 5,207 | 6,195 |
Total Fair Value | 10,936 | 11,176 |
Less than 12 Months, Unrealized Losses | (32) | (25) |
12 Months or More, Unrealized Losses | (143) | (188) |
Total Unrealized Losses | (175) | (213) |
U.S. government agency MBS | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 3,653 | 4,864 |
12 Months or More, Fair Value | 8,255 | 8,170 |
Total Fair Value | 11,908 | 13,034 |
Less than 12 Months, Unrealized Losses | (70) | (35) |
12 Months or More, Unrealized Losses | (373) | (445) |
Total Unrealized Losses | (443) | (480) |
U.S. government agency CMO | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 4,837 | 2,687 |
12 Months or More, Fair Value | 18,282 | 16,886 |
Total Fair Value | 23,119 | 19,573 |
Less than 12 Months, Unrealized Losses | (57) | (36) |
12 Months or More, Unrealized Losses | (2,264) | (2,241) |
Total Unrealized Losses | (2,321) | (2,277) |
State and municipal securities | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 0 | 0 |
12 Months or More, Fair Value | 35,731 | 36,216 |
Total Fair Value | 35,731 | 36,216 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Unrealized Losses | (4,180) | (3,877) |
Total Unrealized Losses | (4,180) | (3,877) |
Debt Securities, Held-to-Maturity, Maturity [Abstract] | ||
Less than 12 Months, Fair Value | 1,067 | 1,021 |
12 Months or More, Fair Value | 29,631 | 29,404 |
Total Fair Value | 30,698 | 30,425 |
Less than 12 Months, Unrecognized Loss | (2) | (6) |
12 Months or More, Unrecognized Loss | (3,172) | (3,097) |
Total securities held-to-maturity | (3,174) | (3,103) |
U.S. Treasuries | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 0 | 0 |
12 Months or More, Fair Value | 30,318 | 30,422 |
Total Fair Value | 30,318 | 30,422 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or More, Unrealized Losses | (2,665) | (2,560) |
Total Unrealized Losses | (2,665) | (2,560) |
Non-U.S. government agency CMO | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 2,438 | 1,127 |
12 Months or More, Fair Value | 5,937 | 6,065 |
Total Fair Value | 8,375 | 7,192 |
Less than 12 Months, Unrealized Losses | (14) | (4) |
12 Months or More, Unrealized Losses | (521) | (548) |
Total Unrealized Losses | (535) | (552) |
Corporate bonds | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 907 | 907 |
12 Months or More, Fair Value | 6,360 | 6,288 |
Total Fair Value | 7,267 | 7,195 |
Less than 12 Months, Unrealized Losses | (94) | (93) |
12 Months or More, Unrealized Losses | (839) | (912) |
Total Unrealized Losses | $ (933) | $ (1,005) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Contractual Maturities, Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 32,983 | |
Due after five years through ten years | 16,509 | |
Due after ten years | 50,887 | |
Subtotal | 100,379 | |
Mortgage-related securities | 61,486 | |
Securities available-for-sale, amortized cost | 161,865 | $ 156,492 |
Contractual Maturities, Available-for-sale, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 30,318 | |
Due after five years through ten years | 15,036 | |
Due after ten years | 47,115 | |
Subtotal | 92,469 | |
Mortgage-related securities | 58,527 | |
Fair value | 150,996 | 146,019 |
Contractual Maturities, Held-to-maturity, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 3,334 | |
Due after five years through ten years | 4,337 | |
Due after ten years | 27,486 | |
Subtotal | 35,157 | |
Mortgage-related securities | 0 | |
Amortized cost | 35,157 | 35,781 |
Contractual Maturities, Held-to-maturity, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 3,212 | |
Due after five years through ten years | 3,677 | |
Due after ten years | 25,114 | |
Subtotal | 32,003 | |
Mortgage-related securities | 0 | |
Total | $ 32,003 | $ 32,730 |
Loans and Other Finance Recei_3
Loans and Other Finance Receivables - Loans Outstanding by Category (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans Receivable | ||
Total loans | $ 1,950,036 | $ 1,888,448 |
Residential mortgage real estate loans accounted under fair value option, at fair value | 13,139 | 13,726 |
Residential mortgage real estate loans accounted under fair value option, at amortized cost | 15,812 | 16,198 |
Unearned lease income included in leases, net | (16,083) | (19,210) |
Unamortized net deferred loan origination costs | 6,279 | 7,358 |
Real estate loans: | ||
Loans Receivable | ||
Total loans | 1,366,011 | 1,321,194 |
Real estate loans: | Commercial mortgage | ||
Loans Receivable | ||
Total loans | 763,356 | 737,863 |
Real estate loans: | Home equity lines and loans | ||
Loans Receivable | ||
Total loans | 76,746 | 76,287 |
Real estate loans: | Residential mortgage | ||
Loans Receivable | ||
Total loans | 262,837 | 260,604 |
Real estate loans: | Construction | ||
Loans Receivable | ||
Total loans | 263,072 | 246,440 |
Commercial and industrial | ||
Loans Receivable | ||
Total loans | 328,148 | 302,891 |
Small business loans | ||
Loans Receivable | ||
Total loans | 146,604 | 142,342 |
Consumer | ||
Loans Receivable | ||
Total loans | 381 | 389 |
Leases, net | ||
Loans Receivable | ||
Total loans | $ 108,892 | $ 121,632 |
Loans and Other Finance Recei_4
Loans and Other Finance Receivables - Age Analysis of Past Due Loans and Leases (Details) $ in Thousands | Mar. 31, 2024 USD ($) loan | Dec. 31, 2023 USD ($) loan |
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 1,950,036 | $ 1,888,448 |
Total accruing loans and leases | 1,911,791 | 1,854,685 |
Nonaccrual loans and leases | $ 38,245 | $ 33,763 |
% Delinquent | 2.37% | 2.10% |
Residential mortgage real estate loans accounted under fair value option, at fair value | $ 13,139 | $ 13,726 |
Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Nonaccrual loans and leases | 1,181 | 1,037 |
Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Nonaccrual loans and leases | 4,672 | 4,536 |
Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Nonaccrual loans and leases | 1,784 | 1,206 |
Real estate loans: | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,366,011 | 1,321,194 |
Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 763,356 | 737,863 |
Total accruing loans and leases | 762,785 | 737,863 |
Nonaccrual loans and leases | $ 571 | $ 0 |
% Delinquent | 0.07% | 0.08% |
Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 76,746 | $ 76,287 |
Total accruing loans and leases | 75,565 | 75,250 |
Nonaccrual loans and leases | $ 1,181 | $ 1,037 |
% Delinquent | 2.08% | 2.10% |
Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 262,837 | $ 260,604 |
Total accruing loans and leases | 258,165 | 256,068 |
Nonaccrual loans and leases | $ 4,672 | $ 4,536 |
% Delinquent | 3.27% | 2.16% |
Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 263,072 | $ 246,440 |
Total accruing loans and leases | 261,288 | 245,234 |
Nonaccrual loans and leases | $ 1,784 | $ 1,206 |
% Delinquent | 0.75% | 0.49% |
Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 328,148 | $ 302,891 |
Total accruing loans and leases | 312,841 | 287,478 |
Nonaccrual loans and leases | $ 15,307 | $ 15,413 |
% Delinquent | 4.66% | 5.09% |
Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 146,604 | $ 142,342 |
Total accruing loans and leases | 133,858 | 132,902 |
Nonaccrual loans and leases | $ 12,746 | $ 9,440 |
% Delinquent | 9.86% | 7.69% |
Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 381 | $ 389 |
Total accruing loans and leases | 381 | 389 |
Nonaccrual loans and leases | $ 0 | $ 0 |
% Delinquent | 5.25% | 0% |
Loans in process of foreclosure, number of loans | loan | 4 | 4 |
Loans in process of foreclosure, amount | $ 937 | $ 937 |
Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 108,892 | 121,632 |
Total accruing loans and leases | 106,908 | 119,501 |
Nonaccrual loans and leases | $ 1,984 | $ 2,131 |
% Delinquent | 3.39% | 3.56% |
30-89 days past due | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 7,979 | $ 5,936 |
30-89 days past due | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 571 |
30-89 days past due | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 417 | 566 |
30-89 days past due | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 3,931 | 1,103 |
30-89 days past due | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 192 | 0 |
30-89 days past due | Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | 0 | 0 |
30-89 days past due | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
30-89 days past due | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,712 | 1,499 |
30-89 days past due | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 20 | 0 |
30-89 days past due | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,707 | 2,197 |
Financial Asset, Past Due | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 7,979 | 5,936 |
Financial Asset, Past Due | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 571 |
Financial Asset, Past Due | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 417 | 566 |
Financial Asset, Past Due | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 3,931 | 1,103 |
Financial Asset, Past Due | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 192 | 0 |
Financial Asset, Past Due | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Past Due | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,712 | 1,499 |
Financial Asset, Past Due | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 20 | 0 |
Financial Asset, Past Due | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,707 | 2,197 |
Current | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,903,812 | 1,848,749 |
Current | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 762,785 | 737,292 |
Current | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 75,148 | 74,684 |
Current | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 254,234 | 254,965 |
Current | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 261,096 | 245,234 |
Current | Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | 12,400 | 12,900 |
Current | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 312,841 | 287,478 |
Current | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 132,146 | 131,403 |
Current | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 361 | 389 |
Current | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 105,201 | 117,304 |
Nonaccrual | Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | $ 771 | $ 786 |
Loans and Other Finance Recei_5
Loans and Other Finance Receivables - Schedule of Financing Receivables, Nonaccrual (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | $ 16,142 | $ 15,860 |
Nonaccrual with ACL | 22,103 | 17,903 |
Nonaccrual loans and leases | 38,245 | 33,763 |
Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,181 | 1,037 |
Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 4,672 | 4,536 |
Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,784 | 1,206 |
Commercial mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 571 | 0 |
Real estate loans: | Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 1,181 | 1,037 |
Nonaccrual with ACL | 0 | 0 |
Nonaccrual loans and leases | 1,181 | 1,037 |
Real estate loans: | Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 4,672 | 4,536 |
Nonaccrual with ACL | 0 | 0 |
Nonaccrual loans and leases | 4,672 | 4,536 |
Real estate loans: | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 1,784 | 1,206 |
Nonaccrual with ACL | 0 | 0 |
Nonaccrual loans and leases | 1,784 | 1,206 |
Real estate loans: | Commercial mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 571 | 0 |
Nonaccrual with ACL | 0 | 0 |
Nonaccrual loans and leases | 571 | 0 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 3,341 | 3,343 |
Nonaccrual with ACL | 11,966 | 12,070 |
Nonaccrual loans and leases | 15,307 | 15,413 |
Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 2,609 | 3,607 |
Nonaccrual with ACL | 10,137 | 5,833 |
Nonaccrual loans and leases | 12,746 | 9,440 |
Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual without ACL | 1,984 | 2,131 |
Nonaccrual with ACL | 0 | 0 |
Nonaccrual loans and leases | $ 1,984 | $ 2,131 |
Loans and Other Finance Recei_6
Loans and Other Finance Receivables - Schedule of Non-Accruing Collateral-Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | $ 38,245 | $ 33,763 |
Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,181 | 1,037 |
Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 4,672 | 4,536 |
Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,784 | 1,206 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 15,307 | 15,413 |
Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 12,746 | 9,440 |
Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,984 | 2,131 |
Commercial mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 571 | 0 |
Real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 18,639 | 14,989 |
Real estate | Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,181 | 1,037 |
Real estate | Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 4,672 | 4,536 |
Real estate | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,784 | 1,206 |
Real estate | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,888 | 1,890 |
Real estate | Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 8,543 | 6,320 |
Real estate | Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | 0 |
Real estate | Commercial mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 571 | 0 |
Equipment and other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 19,606 | 18,774 |
Equipment and other | Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | 0 |
Equipment and other | Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | 0 |
Equipment and other | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | 0 |
Equipment and other | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 13,419 | 13,523 |
Equipment and other | Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 4,203 | 3,120 |
Equipment and other | Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,984 | 2,131 |
Equipment and other | Commercial mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | $ 0 | $ 0 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Roll-forward of Allowance by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 22,107 | $ 18,828 | $ 18,828 |
Charge-offs | (2,444) | (1,497) | |
Recoveries | 134 | 44 | |
Provision (recovery of provision) for credit losses | 3,374 | 1,471 | |
Balance at end of period | 23,171 | 20,442 | 22,107 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 1,596 | 1,596 | |
Commercial mortgage | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 4,375 | 4,095 | 4,095 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | |
Provision (recovery of provision) for credit losses | (196) | (94) | |
Balance at end of period | 4,179 | 3,475 | 4,375 |
Commercial mortgage | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (526) | (526) | |
Home equity lines and loans | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 998 | 188 | 188 |
Charge-offs | 0 | (33) | (87) |
Recoveries | 2 | 2 | |
Provision (recovery of provision) for credit losses | (42) | 19 | |
Balance at end of period | 958 | 615 | 998 |
Home equity lines and loans | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 439 | 439 | |
Residential mortgage | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 1,020 | 948 | 948 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | |
Provision (recovery of provision) for credit losses | 157 | (97) | |
Balance at end of period | 1,177 | 868 | 1,020 |
Residential mortgage | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 17 | 17 | |
Construction | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 485 | 3,075 | 3,075 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | |
Provision (recovery of provision) for credit losses | 98 | (193) | |
Balance at end of period | 583 | 1,119 | 485 |
Construction | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (1,763) | (1,763) | |
Commercial and industrial | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 4,518 | 4,012 | 4,012 |
Charge-offs | (208) | 0 | (266) |
Recoveries | 2 | 39 | |
Provision (recovery of provision) for credit losses | 771 | (295) | |
Balance at end of period | 5,083 | 2,733 | 4,518 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (1,023) | (1,023) | |
Small business loans | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 7,005 | 4,909 | 4,909 |
Charge-offs | (87) | 0 | (1,488) |
Recoveries | 3 | 0 | |
Provision (recovery of provision) for credit losses | 884 | 297 | |
Balance at end of period | 7,805 | 6,316 | 7,005 |
Small business loans | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 1,110 | 1,110 | |
Consumer | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 0 | 3 | 3 |
Charge-offs | (1) | 0 | (2) |
Recoveries | 1 | 0 | |
Provision (recovery of provision) for credit losses | 1 | 0 | |
Balance at end of period | 1 | 0 | 0 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | (3) | (3) | |
Leases, net | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 3,706 | 1,598 | 1,598 |
Charge-offs | (2,148) | (1,464) | (4,033) |
Recoveries | 126 | 3 | |
Provision (recovery of provision) for credit losses | 1,701 | 1,834 | |
Balance at end of period | $ 3,385 | 5,316 | 3,706 |
Leases, net | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 3,345 | $ 3,345 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Text Block [Abstract] | ||
Provision (recovery of provision) for credit losses | $ 3,374 | $ 1,471 |
Recovery of provision for credit losses - unfunded | (508) | (72) |
Provision (recovery of provision) for credit losses | $ 2,866 | $ 1,399 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance Allocated by Portfolio Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | $ 8,463 | $ 6,496 | ||
Allowance on loans and leases collectively evaluated for impairment | 14,708 | 15,611 | ||
Total allowance on loans and leases | 23,171 | 22,107 | $ 20,442 | $ 18,828 |
Carrying value of loans and leases individually evaluated for impairment | 37,474 | 32,977 | ||
Carrying value of loans and leases collectively evaluated for impairment | 1,899,423 | 1,841,745 | ||
Total on carrying value of loans and leases | 1,936,897 | 1,874,722 | ||
Commercial mortgage | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||
Allowance on loans and leases collectively evaluated for impairment | 4,179 | 4,375 | ||
Total allowance on loans and leases | 4,179 | 4,375 | 3,475 | 4,095 |
Carrying value of loans and leases individually evaluated for impairment | 571 | 0 | ||
Carrying value of loans and leases collectively evaluated for impairment | 762,785 | 737,863 | ||
Total on carrying value of loans and leases | 763,356 | 737,863 | ||
Home equity lines and loans | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||
Allowance on loans and leases collectively evaluated for impairment | 958 | 998 | ||
Total allowance on loans and leases | 958 | 998 | 615 | 188 |
Carrying value of loans and leases individually evaluated for impairment | 1,181 | 1,037 | ||
Carrying value of loans and leases collectively evaluated for impairment | 75,565 | 75,250 | ||
Total on carrying value of loans and leases | 76,746 | 76,287 | ||
Residential mortgage | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||
Allowance on loans and leases collectively evaluated for impairment | 1,177 | 1,020 | ||
Total allowance on loans and leases | 1,177 | 1,020 | 868 | 948 |
Carrying value of loans and leases individually evaluated for impairment | 3,901 | 3,750 | ||
Carrying value of loans and leases collectively evaluated for impairment | 245,797 | 243,128 | ||
Total on carrying value of loans and leases | 249,698 | 246,878 | ||
Construction | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||
Allowance on loans and leases collectively evaluated for impairment | 583 | 485 | ||
Total allowance on loans and leases | 583 | 485 | 1,119 | 3,075 |
Carrying value of loans and leases individually evaluated for impairment | 1,784 | 1,206 | ||
Carrying value of loans and leases collectively evaluated for impairment | 261,288 | 245,234 | ||
Total on carrying value of loans and leases | 263,072 | 246,440 | ||
Commercial and industrial | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 4,061 | 3,691 | ||
Allowance on loans and leases collectively evaluated for impairment | 1,022 | 827 | ||
Total allowance on loans and leases | 5,083 | 4,518 | 2,733 | 4,012 |
Carrying value of loans and leases individually evaluated for impairment | 15,307 | 15,413 | ||
Carrying value of loans and leases collectively evaluated for impairment | 312,841 | 287,478 | ||
Total on carrying value of loans and leases | 328,148 | 302,891 | ||
Small business loans | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 4,402 | 2,805 | ||
Allowance on loans and leases collectively evaluated for impairment | 3,403 | 4,200 | ||
Total allowance on loans and leases | 7,805 | 7,005 | 6,316 | 4,909 |
Carrying value of loans and leases individually evaluated for impairment | 12,746 | 9,440 | ||
Carrying value of loans and leases collectively evaluated for impairment | 133,858 | 132,902 | ||
Total on carrying value of loans and leases | 146,604 | 142,342 | ||
Consumer | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||
Allowance on loans and leases collectively evaluated for impairment | 1 | 0 | ||
Total allowance on loans and leases | 1 | 0 | 0 | 3 |
Carrying value of loans and leases individually evaluated for impairment | 0 | 0 | ||
Carrying value of loans and leases collectively evaluated for impairment | 381 | 389 | ||
Total on carrying value of loans and leases | 381 | 389 | ||
Leases, net | ||||
Impaired Loans | ||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||
Allowance on loans and leases collectively evaluated for impairment | 3,385 | 3,706 | ||
Total allowance on loans and leases | 3,385 | 3,706 | $ 5,316 | $ 1,598 |
Carrying value of loans and leases individually evaluated for impairment | 1,984 | 2,131 | ||
Carrying value of loans and leases collectively evaluated for impairment | 106,908 | 119,501 | ||
Total on carrying value of loans and leases | $ 108,892 | $ 121,632 |
Allowance for Credit Losses - C
Allowance for Credit Losses - Carrying Value Based on Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Loans and Leases by Credit Ratings | |||
Loans, net of fees and costs | $ 1,956,315 | $ 1,895,806 | |
Current period gross charge-offs | (2,444) | $ (1,497) | |
Residential mortgage real estate loans accounted under fair value option, at fair value | 13,139 | 13,726 | |
Total loans | 1,950,036 | 1,888,448 | |
Evaluated by performance status | |||
Loans and Leases by Credit Ratings | |||
2024 | 7,492 | 72,275 | |
2023, Writeoff | 0 | (128) | |
2023 | 70,400 | 213,533 | |
2022, Writeoff | (369) | (2,165) | |
2022 | 203,591 | 53,795 | |
2021, Writeoff | (1,429) | (1,450) | |
2021 | 49,797 | 17,592 | |
2020, Writeoff | (277) | (290) | |
2020 | 16,225 | 2,679 | |
2019, Writeoff | (73) | (33) | |
Prior | 17,474 | 15,266 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans | 70,738 | 70,046 | |
Revolving Loans, Writeoff | (1) | (56) | |
Loans, net of fees and costs | 435,717 | 445,186 | |
Current period gross charge-offs | (2,149) | (4,122) | |
Performing | |||
Loans and Leases by Credit Ratings | |||
2024 | 7,492 | 72,012 | |
2023 | 70,115 | 210,989 | |
2022 | 200,995 | 53,427 | |
2021 | 49,389 | 16,330 | |
2020 | 14,984 | 2,679 | |
Prior | 16,119 | 13,909 | |
Revolving Loans | 69,077 | 68,649 | |
Loans, net of fees and costs | 428,171 | 437,995 | |
Nonperforming | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 263 | |
2023 | 285 | 2,544 | |
2022 | 2,596 | 368 | |
2021 | 408 | 1,262 | |
2020 | 1,241 | 0 | |
Prior | 1,355 | 1,357 | |
Revolving Loans | 1,661 | 1,397 | |
Loans, net of fees and costs | 7,546 | 7,191 | |
Evaluated based on credit quality indicators | |||
Loans and Leases by Credit Ratings | |||
2024 | 97,157 | 236,944 | |
2023, Writeoff | 0 | (209) | |
2023 | 236,167 | 315,940 | |
2022, Writeoff | (204) | (55) | |
2022 | 308,411 | 252,137 | |
2021, Writeoff | 0 | 0 | |
2021 | 242,907 | 152,463 | |
2020, Writeoff | (44) | (13) | |
2020 | 150,935 | 76,296 | |
2019, Writeoff | 0 | (912) | |
Prior | 266,927 | 198,661 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans Converted to Term Loans | 1,301 | 1,301 | |
Revolving Loans Converted to Term Loans, Writeoff | 0 | 0 | |
Revolving Loans | 197,375 | 195,794 | |
Revolving Loans, Writeoff | (47) | (565) | |
Loans, net of fees and costs | 1,501,180 | 1,429,536 | |
Current period gross charge-offs | (295) | (1,754) | |
Pass/Watch | |||
Loans and Leases by Credit Ratings | |||
2024 | 97,157 | 236,195 | |
2023 | 235,881 | 314,408 | |
2022 | 301,989 | 242,241 | |
2021 | 232,114 | 145,007 | |
2020 | 142,670 | 69,509 | |
Prior | 240,272 | 170,088 | |
Revolving Loans Converted to Term Loans | 634 | 634 | |
Revolving Loans | 172,951 | 170,210 | |
Loans, net of fees and costs | 1,423,668 | 1,348,292 | |
Special Mention | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 500 | |
2023 | 0 | 9 | |
2022 | 0 | 1,329 | |
2021 | 1,352 | 5,334 | |
2020 | 5,461 | 4,852 | |
Prior | 15,558 | 15,665 | |
Revolving Loans Converted to Term Loans | 667 | 667 | |
Revolving Loans | 7,846 | 9,678 | |
Loans, net of fees and costs | 30,884 | 38,034 | |
Substandard | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 249 | |
2023 | 286 | 1,523 | |
2022 | 6,422 | 8,567 | |
2021 | 9,441 | 2,122 | |
2020 | 2,804 | 1,935 | |
Prior | 11,097 | 12,908 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 16,578 | 15,906 | |
Loans, net of fees and costs | 46,628 | 43,210 | |
Doubtful | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Revolving Loans | 0 | ||
Loans, net of fees and costs | 0 | ||
Commercial mortgage | |||
Loans and Leases by Credit Ratings | |||
2024 | 28,664 | 106,541 | |
2023, Writeoff | 0 | 0 | |
2023 | 106,284 | 160,302 | |
2022, Writeoff | 0 | 0 | |
2022 | 166,840 | 159,218 | |
2021, Writeoff | 0 | 0 | |
2021 | 153,309 | 101,960 | |
2020, Writeoff | 0 | 0 | |
2020 | 101,402 | 62,358 | |
2019, Writeoff | 0 | 0 | |
Prior | 204,936 | 145,557 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans Converted to Term Loans | 1,178 | 1,178 | |
Revolving Loans Converted to Term Loans, Writeoff | 0 | 0 | |
Revolving Loans | 743 | 749 | |
Revolving Loans, Writeoff | 0 | 0 | |
Loans, net of fees and costs | 763,356 | 737,863 | |
Current period gross charge-offs | 0 | 0 | 0 |
Commercial mortgage | Pass/Watch | |||
Loans and Leases by Credit Ratings | |||
2024 | 28,664 | 106,341 | |
2023 | 106,084 | 160,302 | |
2022 | 166,840 | 158,647 | |
2021 | 152,738 | 97,535 | |
2020 | 96,579 | 56,382 | |
Prior | 192,570 | 133,349 | |
Revolving Loans Converted to Term Loans | 511 | 511 | |
Revolving Loans | 743 | 423 | |
Loans, net of fees and costs | 744,729 | 713,490 | |
Commercial mortgage | Special Mention | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 4,425 | |
2020 | 4,823 | 4,341 | |
Prior | 9,873 | 9,975 | |
Revolving Loans Converted to Term Loans | 667 | 667 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | 15,363 | 19,408 | |
Commercial mortgage | Substandard | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 200 | |
2023 | 200 | 0 | |
2022 | 0 | 571 | |
2021 | 571 | 0 | |
2020 | 0 | 1,635 | |
Prior | 2,493 | 2,233 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 0 | 326 | |
Loans, net of fees and costs | 3,264 | 4,965 | |
Commercial mortgage | Doubtful | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Revolving Loans | 0 | ||
Loans, net of fees and costs | 0 | ||
Construction | |||
Loans and Leases by Credit Ratings | |||
2024 | 24,052 | 67,776 | |
2023, Writeoff | 0 | 0 | |
2023 | 74,841 | 88,737 | |
2022, Writeoff | 0 | 0 | |
2022 | 77,792 | 23,122 | |
2021, Writeoff | 0 | 0 | |
2021 | 22,197 | 27,336 | |
2020, Writeoff | 0 | 0 | |
2020 | 25,461 | 2,818 | |
2019, Writeoff | 0 | 0 | |
Prior | 10,400 | 7,628 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans Converted to Term Loans | 123 | 123 | |
Revolving Loans Converted to Term Loans, Writeoff | 0 | 0 | |
Revolving Loans | 28,206 | 28,900 | |
Revolving Loans, Writeoff | 0 | 0 | |
Loans, net of fees and costs | 263,072 | 246,440 | |
Current period gross charge-offs | 0 | 0 | 0 |
Construction | Pass/Watch | |||
Loans and Leases by Credit Ratings | |||
2024 | 24,052 | 67,776 | |
2023 | 74,841 | 88,737 | |
2022 | 77,792 | 21,793 | |
2021 | 20,778 | 27,336 | |
2020 | 24,823 | 2,307 | |
Prior | 4,353 | 2,093 | |
Revolving Loans Converted to Term Loans | 123 | 123 | |
Revolving Loans | 25,066 | 25,976 | |
Loans, net of fees and costs | 251,828 | 236,141 | |
Construction | Special Mention | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 1,329 | |
2021 | 1,352 | 0 | |
2020 | 638 | 511 | |
Prior | 4,329 | 4,329 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 3,140 | 2,924 | |
Loans, net of fees and costs | 9,459 | 9,093 | |
Construction | Substandard | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 67 | 0 | |
2020 | 0 | 0 | |
Prior | 1,718 | 1,206 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | 1,785 | 1,206 | |
Construction | Doubtful | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Revolving Loans | 0 | ||
Loans, net of fees and costs | 0 | ||
Commercial and industrial | |||
Loans and Leases by Credit Ratings | |||
2024 | 35,892 | 26,814 | |
2023, Writeoff | 0 | (209) | |
2023 | 24,890 | 38,757 | |
2022, Writeoff | (204) | (55) | |
2022 | 32,712 | 27,429 | |
2021, Writeoff | 0 | 0 | |
2021 | 26,475 | 8,449 | |
2020, Writeoff | 0 | (2) | |
2020 | 9,994 | 4,448 | |
2019, Writeoff | 0 | 0 | |
Prior | 44,209 | 44,556 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans, Writeoff | 0 | 0 | |
Revolving Loans | 153,976 | 152,438 | |
Revolving Loans, Writeoff | (4) | 0 | |
Loans, net of fees and costs | 328,148 | 302,891 | |
Current period gross charge-offs | (208) | 0 | (266) |
Total loans | 328,148 | 302,891 | |
Commercial and industrial | Pass/Watch | |||
Loans and Leases by Credit Ratings | |||
2024 | 35,892 | 26,314 | |
2023 | 24,890 | 38,748 | |
2022 | 28,772 | 24,523 | |
2021 | 23,569 | 8,449 | |
2020 | 9,994 | 4,148 | |
Prior | 35,967 | 33,726 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 134,590 | 131,304 | |
Loans, net of fees and costs | 293,674 | 267,212 | |
Commercial and industrial | Special Mention | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 500 | |
2023 | 0 | 9 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 1,356 | 1,361 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 4,706 | 6,440 | |
Loans, net of fees and costs | 6,062 | 8,310 | |
Commercial and industrial | Substandard | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 3,940 | 2,906 | |
2021 | 2,906 | 0 | |
2020 | 0 | 300 | |
Prior | 6,886 | 9,469 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 14,680 | 14,694 | |
Loans, net of fees and costs | 28,412 | 27,369 | |
Commercial and industrial | Doubtful | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Revolving Loans | 0 | ||
Loans, net of fees and costs | 0 | ||
Small business loans | |||
Loans and Leases by Credit Ratings | |||
2024 | 8,549 | 35,813 | |
2023, Writeoff | 0 | 0 | |
2023 | 30,152 | 28,144 | |
2022, Writeoff | 0 | 0 | |
2022 | 31,067 | 42,368 | |
2021, Writeoff | 0 | 0 | |
2021 | 40,926 | 14,718 | |
2020, Writeoff | (44) | (11) | |
2020 | 14,078 | 6,672 | |
2019, Writeoff | 0 | (912) | |
Prior | 7,382 | 920 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans Converted to Term Loans, Writeoff | 0 | 0 | |
Revolving Loans | 14,450 | 13,707 | |
Revolving Loans, Writeoff | (43) | (565) | |
Loans, net of fees and costs | 146,604 | 142,342 | |
Current period gross charge-offs | (87) | 0 | (1,488) |
Total loans | 146,604 | 142,342 | |
Small business loans | Pass/Watch | |||
Loans and Leases by Credit Ratings | |||
2024 | 8,549 | 35,764 | |
2023 | 30,066 | 26,621 | |
2022 | 28,585 | 37,278 | |
2021 | 35,029 | 11,687 | |
2020 | 11,274 | 6,672 | |
Prior | 7,382 | 920 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 12,552 | 12,507 | |
Loans, net of fees and costs | 133,437 | 131,449 | |
Small business loans | Special Mention | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 909 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 0 | 314 | |
Loans, net of fees and costs | 0 | 1,223 | |
Small business loans | Substandard | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 49 | |
2023 | 86 | 1,523 | |
2022 | 2,482 | 5,090 | |
2021 | 5,897 | 2,122 | |
2020 | 2,804 | 0 | |
Prior | 0 | 0 | |
Revolving Loans Converted to Term Loans | 0 | 0 | |
Revolving Loans | 1,898 | 886 | |
Loans, net of fees and costs | 13,167 | 9,670 | |
Small business loans | Doubtful | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | ||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans Converted to Term Loans | 0 | ||
Revolving Loans | 0 | ||
Loans, net of fees and costs | 0 | ||
Leases, net | |||
Loans and Leases by Credit Ratings | |||
2024 | 123 | 23,317 | |
2023, Writeoff | 0 | (128) | |
2023 | 20,906 | 57,134 | |
2022, Writeoff | (369) | (2,165) | |
2022 | 51,652 | 31,244 | |
2021, Writeoff | (1,429) | (1,450) | |
2021 | 27,794 | 9,937 | |
2020, Writeoff | (277) | (290) | |
2020 | 8,417 | 0 | |
2019, Writeoff | (73) | 0 | |
Prior | 0 | 0 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans, Writeoff | 0 | 0 | |
Loans, net of fees and costs | 108,892 | 121,632 | |
Current period gross charge-offs | (2,148) | (1,464) | (4,033) |
Total loans | 108,892 | 121,632 | |
Leases, net | Performing | |||
Loans and Leases by Credit Ratings | |||
2024 | 123 | 23,054 | |
2023 | 20,621 | 55,940 | |
2022 | 50,571 | 30,876 | |
2021 | 27,386 | 9,718 | |
2020 | 8,207 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | 106,908 | 119,588 | |
Leases, net | Nonperforming | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 263 | |
2023 | 285 | 1,194 | |
2022 | 1,081 | 368 | |
2021 | 408 | 219 | |
2020 | 210 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | 1,984 | 2,044 | |
Home equity lines and loans | |||
Loans and Leases by Credit Ratings | |||
2024 | 122 | 343 | |
2023, Writeoff | 0 | 0 | |
2023 | 340 | 795 | |
2022, Writeoff | 0 | 0 | |
2022 | 788 | 314 | |
2021, Writeoff | 0 | 0 | |
2021 | 311 | 352 | |
2020, Writeoff | 0 | 0 | |
2020 | 347 | 2,191 | |
2019, Writeoff | 0 | (33) | |
Prior | 4,152 | 2,295 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans | 70,686 | 69,997 | |
Revolving Loans, Writeoff | 0 | (54) | |
Loans, net of fees and costs | 76,746 | 76,287 | |
Current period gross charge-offs | 0 | (33) | (87) |
Home equity lines and loans | Performing | |||
Loans and Leases by Credit Ratings | |||
2024 | 122 | 343 | |
2023 | 340 | 795 | |
2022 | 788 | 314 | |
2021 | 311 | 352 | |
2020 | 347 | 2,191 | |
Prior | 4,152 | 2,295 | |
Revolving Loans | 69,025 | 68,600 | |
Loans, net of fees and costs | 75,085 | 74,890 | |
Home equity lines and loans | Nonperforming | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
Prior | 0 | ||
Revolving Loans | 1,661 | 1,397 | |
Loans, net of fees and costs | 1,661 | 1,397 | |
Residential mortgage | |||
Loans and Leases by Credit Ratings | |||
2024 | 7,247 | 48,576 | |
2023, Writeoff | 0 | 0 | |
2023 | 49,114 | 155,569 | |
2022, Writeoff | 0 | 0 | |
2022 | 151,121 | 22,237 | |
2021, Writeoff | 0 | 0 | |
2021 | 21,692 | 7,303 | |
2020, Writeoff | 0 | 0 | |
2020 | 7,461 | 456 | |
2019, Writeoff | 0 | 0 | |
Prior | 13,063 | 12,737 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Revolving Loans, Writeoff | 0 | 0 | |
Loans, net of fees and costs | 249,698 | 246,878 | |
Current period gross charge-offs | 0 | 0 | 0 |
Residential mortgage | Performing | |||
Loans and Leases by Credit Ratings | |||
2024 | 7,247 | 48,576 | |
2023 | 49,114 | 154,219 | |
2022 | 149,606 | 22,237 | |
2021 | 21,692 | 6,260 | |
2020 | 6,430 | 456 | |
Prior | 11,708 | 11,380 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | 245,797 | 243,128 | |
Residential mortgage | Nonperforming | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 1,350 | |
2022 | 1,515 | 0 | |
2021 | 0 | 1,043 | |
2020 | 1,031 | 0 | |
Prior | 1,355 | 1,357 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | 3,901 | 3,750 | |
Consumer | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 39 | |
2023, Writeoff | 0 | 0 | |
2023 | 40 | 35 | |
2022, Writeoff | 0 | 0 | |
2022 | 30 | 0 | |
2021, Writeoff | 0 | 0 | |
2021 | 0 | 0 | |
2020, Writeoff | 0 | 0 | |
2020 | 0 | 32 | |
2019, Writeoff | 0 | 0 | |
Prior | 259 | 234 | |
Prior, Writeoff | 0 | 0 | |
Revolving Loans | 52 | 49 | |
Revolving Loans, Writeoff | (2) | ||
Loans, net of fees and costs | 381 | 389 | |
Current period gross charge-offs | (1) | $ 0 | (2) |
Total loans | 381 | 389 | |
Consumer | Performing | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 39 | |
2023 | 40 | 35 | |
2022 | 30 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 32 | |
Prior | 259 | 234 | |
Revolving Loans | 52 | 49 | |
Loans, net of fees and costs | 381 | 389 | |
Consumer | Nonperforming | |||
Loans and Leases by Credit Ratings | |||
2024 | 0 | 0 | |
2023 | 0 | 0 | |
2022 | 0 | 0 | |
2021 | 0 | 0 | |
2020 | 0 | 0 | |
Prior | 0 | 0 | |
Revolving Loans | 0 | 0 | |
Loans, net of fees and costs | $ 0 | $ 0 |
Allowance for Credit Losses - M
Allowance for Credit Losses - Modifications to Debtors Experiencing Financial Difficulty (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) loan modification | Mar. 31, 2023 modification | |
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of loan modifications | loan | 4 | |
Amortized Cost Basis | $ 1,456 | |
Related Reserve | $ 0 | |
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of Loans | loan | 1 | |
Amortized Cost Basis | $ 895 | |
Related Reserve | $ 784 | |
Modifications granted to borrowers | modification | 5 | 0 |
Extended Maturity [Member] | ||
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of Loans | loan | 1 | |
Small business loans | ||
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of loan modifications | loan | 2 | |
Amortized Cost Basis | $ 359 | |
Percentage of Total Class of Financing Receivable (as a percent) | 0.20% | |
Related Reserve | $ 0 | |
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of Loans | loan | 1 | |
Amortized Cost Basis | $ 895 | |
Percentage of Total Class of Financing Receivable (as a percent) | 0.006 | |
Related Reserve | $ 784 | |
Small business loans | Extended Maturity And Additional Lender Funding [Member] | ||
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of Loans | loan | 1 | |
Commercial and industrial | ||
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | ||
Number of loan modifications | loan | 2 | |
Amortized Cost Basis | $ 1,097 | |
Percentage of Total Class of Financing Receivable (as a percent) | 0.30% | |
Related Reserve | $ 0 |
Short-Term Borrowings and Lon_2
Short-Term Borrowings and Long-Term Debt - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) facility | Dec. 31, 2023 USD ($) | |
Short-Term Borrowings | ||
Borrowings | $ 112,131,000 | $ 141,224,000 |
Letters of credit | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 656,000,000 | 626,800,000 |
Proceeds from long term debt | $ 156,000,000 | |
Federal funds purchased | ||
Short-Term Borrowings | ||
Number of borrowing facilities | facility | 3 | |
Maximum borrowing capacity | $ 0 | 0 |
Federal funds purchased, facility two | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 49,000,000 | |
Federal Reserve discount window | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 6,500,000 | |
Borrowings | 0 | 0 |
BTFP Advances | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 33,000,000 | |
Borrowings | $ 0 | $ 33,000,000 |
Short-Term Borrowings and Lon_3
Short-Term Borrowings and Long-Term Debt - Short-term Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Short-Term Borrowings | ||
Short term borrowings | $ 112,131 | $ 141,224 |
Mid-term Repo Fixed Maturing On 09/30/2024 | ||
Short-Term Borrowings | ||
Long term debt, interest rate | 4.60% | |
Long-term debt | $ 3,432 | 3,432 |
Mid-term Repo Fixed Maturing On 10/25/2024 | ||
Short-Term Borrowings | ||
Long term debt, interest rate | 5.03% | |
Long-term debt | $ 8,097 | 0 |
Mid-term Repo Fixed Maturing On 01/27/2024 | ||
Short-Term Borrowings | ||
Long term debt, interest rate | 4.85% | |
Long-term debt | $ 8,000 | 0 |
Mid-term Repo Fixed Maturing On 02/24/2024 | ||
Short-Term Borrowings | ||
Long term debt, interest rate | 5.35% | |
Long-term debt | $ 7,813 | 0 |
Open Repo Plus Weekly 0.33 Percent Maturing On 6/10/2024 | ||
Short-Term Borrowings | ||
Interest rate | 5.68% | |
Short term borrowings | $ 84,789 | 104,792 |
BTFP Advances | ||
Short-Term Borrowings | ||
Interest rate | 4.76% | |
Short term borrowings | $ 0 | $ 33,000 |
Short-Term Borrowings and Lon_4
Short-Term Borrowings and Long-Term Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Mid-term Repo Fixed | ||
Long Term Debt | ||
Long-term debt | $ 33,672 | $ 33,672 |
Mid-term Repo Fixed Maturing On 12/22/2025 | ||
Long Term Debt | ||
Long term debt, interest rate | 4.23% | |
Long-term debt | $ 8,935 | 8,935 |
Mid-term Repo Fixed Maturing On 10/14/2025 | ||
Long Term Debt | ||
Long term debt, interest rate | 5.16% | |
Long-term debt | $ 9,492 | 9,492 |
Mid Term Repo Fixed Maturing On 7/14/2026 | ||
Long Term Debt | ||
Long term debt, interest rate | 4.57% | |
Long-term debt | $ 15,245 | $ 15,245 |
Servicing Assets - Residential
Servicing Assets - Residential Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | $ 11,748 | ||
Balance at end of the period | 11,573 | ||
Mortgage Servicing Rights | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans serviced | 932,500 | $ 945,200 | |
Servicing fee income | 586 | $ 636 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | 8,622 | 9,942 | |
Servicing rights capitalized | 10 | 0 | |
Amortization of servicing rights | (318) | (371) | |
Change in valuation allowance | 0 | 2 | |
Balance at end of the period | 8,314 | 9,573 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Valuation allowance, beginning of period | 0 | (2) | |
Impairment | 0 | 0 | |
Recovery | 0 | 2 | |
Valuation allowance, end of the period | 0 | 0 | |
SBA Loan Servicing Rights | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans serviced | 236,600 | $ 225,800 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | 3,127 | 2,404 | |
Servicing rights capitalized | 197 | 214 | |
Amortization of servicing rights | (241) | (195) | |
Change in valuation allowance | 176 | 129 | |
Balance at end of the period | 3,259 | 2,552 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Valuation allowance, beginning of period | (268) | (364) | |
Impairment | 0 | 0 | |
Recovery | 176 | 129 | |
Valuation allowance, end of the period | $ (92) | $ (235) |
Servicing Assets - MSR Sensitiv
Servicing Assets - MSR Sensitivity Analysis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
SBA Loan Servicing Rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of residential mortgage servicing rights | $ 3,567 | $ 3,376 |
Prepayment speed | 15.21% | 14.70% |
Impact on fair value of a 10% adverse change in prepayment speed | $ (143) | $ (125) |
Impact on fair value of a 20% adverse change in prepayment speed | $ (275) | $ (241) |
Discount rate | 13.93% | 14.66% |
Impact on fair value of a 10% adverse change in the discount rate | $ (79) | $ (74) |
Impact on fair value of a 20% adverse change in the discount rate | (155) | (145) |
Mortgage Servicing Rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of residential mortgage servicing rights | $ 10,973 | $ 11,221 |
Weighted average life (months) | 28 months | 28 months |
Prepayment speed | 8.29% | 8.57% |
Impact on fair value of a 10% adverse change in prepayment speed | $ (253) | $ (506) |
Impact on fair value of a 20% adverse change in prepayment speed | $ (496) | $ (973) |
Discount rate | 9.50% | 9.50% |
Impact on fair value of a 10% adverse change in the discount rate | $ (404) | $ (415) |
Impact on fair value of a 20% adverse change in the discount rate | $ (781) | $ (799) |
Servicing Assets - SBA Loans (D
Servicing Assets - SBA Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | $ 11,748 | ||
Balance at end of the period | 11,573 | ||
SBA Loan Servicing Rights | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans serviced | 236,600 | $ 225,800 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of the period | 3,127 | $ 2,404 | |
Servicing rights capitalized | 197 | 214 | |
Amortization of servicing rights | (241) | (195) | |
Change in valuation allowance | 176 | 129 | |
Balance at end of the period | 3,259 | 2,552 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||
Valuation allowance, beginning of period | (268) | (364) | |
Impairment | 0 | 0 | |
Recovery | 176 | 129 | |
Valuation allowance, end of the period | $ (92) | $ (235) |
Servicing Assets - SBA Sensitiv
Servicing Assets - SBA Sensitivity Analysis (Details) - SBA Loan Servicing Rights - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of SBA loan servicing rights | $ 3,567 | $ 3,376 |
Prepayment speed | 15.21% | 14.70% |
Impact on fair value of a 10% adverse change in prepayment speed | $ (143) | $ (125) |
Impact on fair value of a 20% adverse change in prepayment speed | $ (275) | $ (241) |
Discount rate | 13.93% | 14.66% |
Impact on fair value of a 10% adverse change in the discount rate | $ (79) | $ (74) |
Impact on fair value of a 20% adverse change in the discount rate | $ (155) | $ (145) |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Debt securities, fair value | $ 150,996 | $ 146,019 |
Equity investments | 2,092 | 2,121 |
U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 19,153 | 16,824 |
U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 22,347 | 22,634 |
U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 23,119 | 19,573 |
State and municipal securities | ||
Assets | ||
Debt securities, fair value | 35,731 | 36,216 |
Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 13,061 | 13,155 |
Corporate bonds | ||
Assets | ||
Debt securities, fair value | 7,267 | 7,195 |
Recurring | ||
Assets | ||
Equity investments | 2,092 | 2,121 |
Mortgage loans held for sale | 29,124 | 24,816 |
Mortgage loans held for investment | 13,139 | 13,726 |
Total | 199,834 | 190,424 |
Liabilities | ||
Total | 3,843 | 3,613 |
Recurring | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 19,153 | 16,824 |
Recurring | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 22,347 | 22,634 |
Recurring | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 23,119 | 19,573 |
Recurring | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 35,731 | 36,216 |
Recurring | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 30,318 | 30,422 |
Recurring | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 13,061 | 13,155 |
Recurring | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 7,267 | 7,195 |
Recurring | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 288 | 214 |
Liabilities | ||
Derivative Liability | 84 | 17 |
Recurring | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Liabilities | ||
Derivative Liability | 41 | |
Recurring | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 3,758 | 3,528 |
Liabilities | ||
Derivative Liability | 3,754 | 3,544 |
Recurring | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 437 | |
Recurring | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | 5 | 11 |
Recurring | Level 1 | ||
Assets | ||
Equity investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment | 0 | 0 |
Total | 30,318 | 30,422 |
Liabilities | ||
Total | 0 | 0 |
Recurring | Level 1 | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 30,318 | 30,422 |
Recurring | Level 1 | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 1 | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Liabilities | ||
Derivative Liability | 0 | |
Recurring | Level 1 | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 1 | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Recurring | Level 1 | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Equity investments | 2,092 | 2,121 |
Mortgage loans held for sale | 29,124 | 24,816 |
Mortgage loans held for investment | 13,139 | 13,726 |
Total | 169,228 | 159,788 |
Liabilities | ||
Total | 3,759 | 3,596 |
Recurring | Level 2 | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 19,153 | 16,824 |
Recurring | Level 2 | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 22,347 | 22,634 |
Recurring | Level 2 | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 23,119 | 19,573 |
Recurring | Level 2 | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 35,731 | 36,216 |
Recurring | Level 2 | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 2 | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 13,061 | 13,155 |
Recurring | Level 2 | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 7,267 | 7,195 |
Recurring | Level 2 | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 2 | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Liabilities | ||
Derivative Liability | 41 | |
Recurring | Level 2 | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 3,758 | 3,528 |
Liabilities | ||
Derivative Liability | 3,754 | 3,544 |
Recurring | Level 2 | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 437 | |
Recurring | Level 2 | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | 5 | 11 |
Recurring | Level 3 | ||
Assets | ||
Equity investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment | 0 | 0 |
Total | 288 | 214 |
Liabilities | ||
Total | 84 | 17 |
Recurring | Level 3 | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | |
Recurring | Level 3 | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 288 | 214 |
Liabilities | ||
Derivative Liability | 84 | 17 |
Recurring | Level 3 | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Liabilities | ||
Derivative Liability | 0 | |
Recurring | Level 3 | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 3 | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Recurring | Level 3 | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | $ 0 | $ 0 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Financial Assets Measured at Fair Value on Non-recurring Basis (Details) - Nonrecurring - Level 3 - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets measured at fair value on a nonrecurring basis | ||
Mortgage servicing rights | $ 8,314 | $ 8,621 |
SBA loan servicing rights | 3,259 | 3,127 |
Total | 25,213 | 24,700 |
Commercial and industrial | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 7,905 | 9,818 |
Small business loans | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Impaired loans | $ 5,735 | $ 3,134 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Level 3 Valuation (Details) - Level 3 - Valuation, Income Approach - Measurement Input, Appraised Value $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 13,640 | $ 12,952 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input (as a percent) | 0.02 | 0.02 |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input (as a percent) | 0.33 | 0.33 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Loans at fair value | $ 13,139 | $ 13,726 |
Level 1 | Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 23,027 | 56,697 |
Level 1 | Fair value | ||
Financial assets: | ||
Cash and cash equivalents | 23,027 | 56,697 |
Level 2 | Carrying amount | ||
Financial assets: | ||
Mortgage loans held for sale | 29,124 | 24,816 |
Mortgage loans held for investment | 13,139 | 13,726 |
Financial liabilities: | ||
Deposits | 1,900,696 | 1,823,462 |
Borrowings | 145,803 | 174,896 |
Subordinated debentures | 49,867 | 49,836 |
Level 2 | Fair value | ||
Financial assets: | ||
Mortgage loans held for sale | 29,124 | 24,816 |
Mortgage loans held for investment | 13,139 | 13,726 |
Financial liabilities: | ||
Deposits | 1,888,300 | 1,834,700 |
Borrowings | 159,800 | 176,400 |
Subordinated debentures | 49,721 | 50,223 |
Level 3 | Carrying amount | ||
Financial assets: | ||
Loans at fair value | 1,943,176 | 1,882,080 |
Level 3 | Fair value | ||
Financial assets: | ||
Loans at fair value | $ 1,889,637 | $ 1,832,558 |
Fair Value Measurements and D_7
Fair Value Measurements and Disclosures - Fair Value on a Recurring Basis (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of the period | $ 214 | $ 87 |
Increase in value | 74 | 52 |
Balance at end of the period | $ 288 | $ 139 |
Fair Value Measurements and D_8
Fair Value Measurements and Disclosures - Valuation Techniques for Level 3 Interest Rate Lock (Details) - Interest Rate Lock Commitments - Level 3 - Valuation Technique, Consensus Pricing Model $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset | $ 288 | $ 214 |
Valuation technique extensible list | Valuation Technique, Consensus Pricing Model | Valuation Technique, Consensus Pricing Model |
Measurement input extensible list | Loan Origination Success Rate [Member] | Loan Origination Success Rate [Member] |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input (as a percent) | 0.01 | 0.01 |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input (as a percent) | 0.99 | 0.99 |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input (as a percent) | 0.7983 | 0.7948 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Amounts and Fair Values of Derivative Financial Instruments (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2023 USD ($) derivative_instrument | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative Financial Instruments | ||||
Number of interest rate swaps entered into | derivative_instrument | 3 | |||
Notional amount | $ 260,114 | $ 226,652 | ||
Unrealized gains, net of tax recorded in total comprehensive income | 749 | $ 0 | ||
Assets (liabilities) fair value | 640 | (410) | ||
Interest Rate Swap, One | ||||
Derivative Financial Instruments | ||||
Notional amount | $ 25,000 | |||
Fixed interest rate (as a percent) | 4.07% | |||
Interest Rate Swap, Two | ||||
Derivative Financial Instruments | ||||
Notional amount | $ 25,000 | |||
Fixed interest rate (as a percent) | 4.027% | |||
Interest Rate Swap, Three | ||||
Derivative Financial Instruments | ||||
Notional amount | $ 25,000 | |||
Fixed interest rate (as a percent) | 4.117% | |||
Interest Rate Lock Commitments | ||||
Derivative Financial Instruments | ||||
Notional amount | 77,825 | 39,134 | ||
Assets (liabilities) fair value | 204 | 197 | ||
Interest Rate Lock Commitments | Other assets | ||||
Derivative Financial Instruments | ||||
Notional amount | 61,882 | 33,735 | ||
Assets (liabilities) fair value | 288 | 214 | ||
Interest Rate Lock Commitments | Other liabilities | ||||
Derivative Financial Instruments | ||||
Notional amount | 15,943 | 5,399 | ||
Assets (liabilities) fair value | (84) | (17) | ||
Forward Commitments | ||||
Derivative Financial Instruments | ||||
Notional amount | 0 | 4,250 | ||
Assets (liabilities) fair value | 0 | (41) | ||
Forward Commitments | Other assets | ||||
Derivative Financial Instruments | ||||
Notional amount | 0 | 0 | ||
Assets (liabilities) fair value | 0 | 0 | ||
Forward Commitments | Other liabilities | ||||
Derivative Financial Instruments | ||||
Notional amount | 0 | 4,250 | ||
Assets (liabilities) fair value | 0 | (41) | ||
Customer derivatives - interest rate swaps | ||||
Derivative Financial Instruments | ||||
Notional amount | 100,238 | 101,186 | ||
Assets (liabilities) fair value | 4 | (17) | ||
Customer derivatives - interest rate swaps | Other assets | ||||
Derivative Financial Instruments | ||||
Notional amount | 50,119 | 50,593 | ||
Assets (liabilities) fair value | 3,758 | 3,528 | ||
Customer derivatives - interest rate swaps | Other liabilities | ||||
Derivative Financial Instruments | ||||
Notional amount | 50,119 | 50,593 | ||
Assets (liabilities) fair value | (3,754) | (3,544) | ||
Risk Participation Agreements | ||||
Derivative Financial Instruments | ||||
Notional amount | 7,051 | 7,082 | ||
Assets (liabilities) fair value | (5) | (11) | ||
Risk Participation Agreements | Other assets | ||||
Derivative Financial Instruments | ||||
Notional amount | 0 | 0 | ||
Assets (liabilities) fair value | 0 | 0 | ||
Risk Participation Agreements | Other liabilities | ||||
Derivative Financial Instruments | ||||
Notional amount | 7,051 | 7,082 | ||
Assets (liabilities) fair value | (5) | (11) | ||
Interest rate swaps | ||||
Derivative Financial Instruments | ||||
Notional amount | 75,000 | 75,000 | ||
Assets (liabilities) fair value | 437 | (539) | ||
Interest rate swaps | Other assets | ||||
Derivative Financial Instruments | ||||
Notional amount | 75,000 | 0 | ||
Assets (liabilities) fair value | 437 | 0 | ||
Interest rate swaps | Other liabilities | ||||
Derivative Financial Instruments | ||||
Notional amount | 0 | 75,000 | ||
Assets (liabilities) fair value | $ 0 | $ (539) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value Gains and Losses on Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Summary of the fair value gains and losses on derivative financial instruments | ||
Net fair value (losses) gains on derivative financial instruments | $ 1,051 | $ (69) |
Realized losses on derivatives | 19 | 0 |
Interest Rate Lock Commitments | ||
Summary of the fair value gains and losses on derivative financial instruments | ||
Net fair value (losses) gains on derivative financial instruments | 7 | (37) |
Forward Commitments | ||
Summary of the fair value gains and losses on derivative financial instruments | ||
Net fair value (losses) gains on derivative financial instruments | 41 | 0 |
Customer derivatives - interest rate swaps | ||
Summary of the fair value gains and losses on derivative financial instruments | ||
Net fair value (losses) gains on derivative financial instruments | 21 | (28) |
Risk Participation Agreements | ||
Summary of the fair value gains and losses on derivative financial instruments | ||
Net fair value (losses) gains on derivative financial instruments | 6 | (4) |
Interest rate swaps | ||
Summary of the fair value gains and losses on derivative financial instruments | ||
Net fair value (losses) gains on derivative financial instruments | $ 976 | $ 0 |
Segments - Business segment (De
Segments - Business segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Net-interest Income: | |||
Net interest income | $ 16,609 | $ 17,677 | |
Provision (recovery of provision) for credit losses | 2,866 | 1,399 | |
Net interest income after provision for credit losses | 13,743 | 16,278 | |
Non-interest Income | |||
Mortgage banking income | 3,634 | 3,272 | |
Wealth management income | 1,317 | 1,196 | |
SBA loan income | 986 | 713 | |
Net change in fair values | (102) | 47 | |
Net gain on hedging activity | (19) | 0 | |
Other | 2,168 | 1,410 | |
Total non-interest income | 7,984 | 6,638 | |
Total non-interest expense | 18,174 | 17,789 | |
Income (loss) before income taxes | 3,553 | 5,127 | |
Total Assets | 2,292,923 | 2,229,783 | $ 2,246,193 |
Bank | |||
Net-interest Income: | |||
Net interest income | 16,592 | 17,627 | |
Provision (recovery of provision) for credit losses | 2,866 | 1,399 | |
Net interest income after provision for credit losses | 13,726 | 16,228 | |
Non-interest Income | |||
Mortgage banking income | 88 | 58 | |
Wealth management income | 0 | 0 | |
SBA loan income | 986 | 713 | |
Net change in fair values | 28 | (31) | |
Net gain on hedging activity | 0 | 0 | |
Other | 772 | 689 | |
Total non-interest income | 1,874 | 1,429 | |
Total non-interest expense | 12,060 | 10,698 | |
Income (loss) before income taxes | 3,540 | 6,959 | |
Total Assets | 2,219,626 | 2,171,679 | |
Wealth | |||
Net-interest Income: | |||
Net interest income | (6) | 24 | |
Provision (recovery of provision) for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | (6) | 24 | |
Non-interest Income | |||
Mortgage banking income | 0 | 0 | |
Wealth management income | 1,317 | 1,196 | |
SBA loan income | 0 | 0 | |
Net change in fair values | 0 | 0 | |
Net gain on hedging activity | 0 | 0 | |
Other | 0 | 0 | |
Total non-interest income | 1,317 | 1,196 | |
Total non-interest expense | 833 | 989 | |
Income (loss) before income taxes | 478 | 231 | |
Total Assets | 9,335 | 8,090 | |
Mortgage | |||
Net-interest Income: | |||
Net interest income | 23 | 26 | |
Provision (recovery of provision) for credit losses | 0 | 0 | |
Net interest income after provision for credit losses | 23 | 26 | |
Non-interest Income | |||
Mortgage banking income | 3,546 | 3,214 | |
Wealth management income | 0 | 0 | |
SBA loan income | 0 | 0 | |
Net change in fair values | (130) | 78 | |
Net gain on hedging activity | (19) | 0 | |
Other | 1,396 | 721 | |
Total non-interest income | 4,793 | 4,013 | |
Total non-interest expense | 5,281 | 6,102 | |
Income (loss) before income taxes | (465) | (2,063) | |
Total Assets | $ 63,962 | $ 50,014 |
Uncategorized Items - mrbk-2024
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |