Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 03, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 000-10537 | |
Entity Registrant Name | OLD SECOND BANCORP INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3143493 | |
Entity Address, Address Line One | 37 South River Street | |
Entity Address, City or Town | Aurora | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60507 | |
City Area Code | (630) | |
Local Phone Number | 892-0202 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | OSBC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,707,737 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000357173 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 29,829 | $ 24,306 |
Interest earning deposits with financial institutions | 562,931 | 305,597 |
Cash and cash equivalents | 592,760 | 329,903 |
Securities available-for-sale, at fair value | 579,948 | 496,178 |
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock | 9,917 | 9,917 |
Loans held-for-sale | 6,814 | 12,611 |
Loans | 1,903,366 | 2,034,851 |
Less: allowance for credit losses on loans | 28,639 | 33,855 |
Net loans | 1,874,727 | 2,000,996 |
Premises and equipment, net | 44,544 | 45,477 |
Other real estate owned | 1,877 | 2,474 |
Mortgage servicing rights, at fair value | 5,267 | 4,224 |
Goodwill and core deposit intangible | 20,546 | 20,781 |
Bank-owned life insurance ("BOLI") | 63,859 | 63,102 |
Deferred tax assets, net | 6,696 | 8,121 |
Other assets | 43,679 | 47,053 |
Total assets | 3,250,634 | 3,040,837 |
Deposits: | ||
Noninterest bearing demand | 1,028,558 | 909,505 |
Interest bearing: | ||
Savings, NOW, and money market | 1,305,180 | 1,202,134 |
Time | 348,263 | 425,434 |
Total deposits | 2,682,001 | 2,537,073 |
Securities sold under repurchase agreements | 68,566 | 66,980 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,169 | |
Senior notes | 44,428 | 44,375 |
Notes payable and other borrowings | 21,234 | 23,393 |
Other liabilities | 33,525 | 36,156 |
Total liabilities | 2,934,696 | 2,733,750 |
Stockholders' Equity | ||
Common stock | 34,957 | 34,957 |
Additional paid-in capital | 120,572 | 122,212 |
Retained earnings | 255,536 | 236,579 |
Accumulated other comprehensive income | 14,433 | 14,762 |
Treasury stock | (109,560) | (101,423) |
Total stockholders' equity | 315,938 | 307,087 |
Total liabilities and stockholders' equity | $ 3,250,634 | $ 3,040,837 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Common stock, Par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, Shares authorized | 60,000,000 | 60,000,000 |
Common stock, Shares issued | 34,957,384 | 34,957,384 |
Common stock, Shares outstanding | 28,707,737 | 29,328,723 |
Treasury stock, Shares | 6,249,647 | 5,628,661 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest and dividend income | ||||
Loans, including fees | $ 20,815 | $ 22,347 | $ 43,022 | $ 45,944 |
Loans held-for-sale | 38 | 110 | 93 | 146 |
Securities: | ||||
Taxable | 1,832 | 1,694 | 3,447 | 3,857 |
Tax exempt | 1,259 | 1,396 | 2,566 | 2,851 |
Dividends from FHLBC and FRBC stock | 113 | 123 | 228 | 248 |
Interest bearing deposits with financial institutions | 137 | 42 | 229 | 117 |
Total interest and dividend income | 24,194 | 25,712 | 49,585 | 53,163 |
Interest expense | ||||
Savings, NOW, and money market deposits | 217 | 385 | 458 | 1,020 |
Time deposits | 409 | 1,442 | 909 | 3,208 |
Securities sold under repurchase agreements | 21 | 23 | 52 | 139 |
Other short-term borrowings | 34 | 143 | ||
Junior subordinated debentures | 284 | 283 | 564 | 1,647 |
Subordinated debentures | 517 | 517 | ||
Senior notes | 673 | 673 | 1,346 | 1,346 |
Notes payable and other borrowings | 119 | 165 | 242 | 295 |
Total interest expense | 2,240 | 3,005 | 4,088 | 7,798 |
Net interest and dividend income | 21,954 | 22,707 | 45,497 | 45,365 |
(Release of) provision for credit losses | (3,500) | 2,129 | (6,500) | 10,113 |
Net interest and dividend income after (release of) provision for credit losses | 25,454 | 20,578 | 51,997 | 35,252 |
Noninterest income | ||||
Mortgage servicing rights mark to market (loss) gain | (1,033) | (445) | 80 | (2,579) |
Net gain on sales of mortgage loans | 1,895 | 4,631 | 5,616 | 6,877 |
Securities gains (losses), net | 2 | 2 | (24) | |
Change in cash surrender value of BOLI | 423 | 532 | 757 | 483 |
Death benefit realized on BOLI | 59 | 59 | ||
Card related income | 1,666 | 1,311 | 3,113 | 2,598 |
Other income | 577 | 526 | 1,027 | 1,152 |
Total noninterest income | 7,919 | 10,695 | 19,219 | 17,017 |
Noninterest expense | ||||
Salaries and employee benefits | 12,896 | 11,342 | 26,402 | 24,260 |
Occupancy, furniture and equipment | 2,303 | 1,935 | 4,770 | 4,236 |
Computer and data processing | 1,304 | 1,247 | 2,602 | 2,582 |
FDIC insurance | 192 | 155 | 393 | 212 |
General bank insurance | 277 | 237 | 553 | 483 |
Amortization of core deposit intangible | 115 | 124 | 235 | 252 |
Advertising expense | 95 | 57 | 155 | 166 |
Card related expense | 626 | 514 | 1,219 | 1,046 |
Legal fees | 135 | 176 | 190 | 307 |
Other real estate expense, net | 77 | 143 | 113 | 380 |
Other expense | 3,381 | 2,966 | 6,507 | 5,974 |
Total noninterest expense | 21,401 | 18,896 | 43,139 | 39,898 |
Income before income taxes | 11,972 | 12,377 | 28,077 | 12,371 |
Provision for income taxes | 3,152 | 3,139 | 7,378 | 2,858 |
Net income | $ 8,820 | $ 9,238 | $ 20,699 | $ 9,513 |
Basic earnings per share | $ 0.30 | $ 0.31 | $ 0.71 | $ 0.32 |
Diluted earnings per share | 0.30 | 0.31 | 0.70 | 0.31 |
Dividends declared per share | $ 0.05 | $ 0.01 | $ 0.06 | $ 0.02 |
Deposit Account | ||||
Noninterest income | ||||
Service charges on deposits | $ 1,221 | $ 1,120 | $ 2,416 | $ 2,846 |
Trust Income | ||||
Noninterest income | ||||
Service charges on deposits | 2,389 | 1,998 | 4,540 | 3,904 |
Bank Servicing | ||||
Noninterest income | ||||
Service charges on deposits | 507 | 458 | 1,074 | 926 |
Secondary mortgage fees | ||||
Noninterest income | ||||
Service charges on deposits | $ 272 | $ 505 | $ 594 | $ 775 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidated Statements of Comprehensive Income | ||||
Net Income | $ 8,820 | $ 9,238 | $ 20,699 | $ 9,513 |
Unrealized holding gains (losses) on available-for-sale securities arising during the period | 3,337 | 11,019 | (1,476) | 4,643 |
Related tax (expense) benefit | (935) | (3,096) | 436 | (1,299) |
Holding gains (losses), after tax, on available-for-sale securities | 2,402 | 7,923 | (1,040) | 3,344 |
Less: Reclassification adjustment for the net gains (losses) realized during the period | ||||
Net realized gains (losses) | 2 | 2 | (24) | |
Related tax (expense) benefit | (1) | (1) | 7 | |
Net realized gains (losses) after tax | 1 | 1 | (17) | |
Other comprehensive income (loss) on available-for-sale securities | 2,401 | 7,923 | (1,041) | 3,361 |
Changes in fair value of derivatives used for cash flow hedges | (1,714) | 443 | 989 | (2,087) |
Related tax benefit (expense) | 480 | (125) | (277) | 586 |
Other comprehensive (loss) income on cash flow hedges | (1,234) | 318 | 712 | (1,501) |
Total other comprehensive income (loss) | 1,167 | 8,241 | (329) | 1,860 |
Total comprehensive income | $ 9,987 | $ 17,479 | $ 20,370 | $ 11,373 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | |||
Net Income | $ 8,820 | $ 20,699 | $ 9,513 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net premium / discount from amortization on securities | 1,095 | 1,126 | |
Securities (gains) losses, net | (2) | (2) | 24 |
(Release of) provision for credit losses | (3,500) | (6,500) | 10,113 |
Originations of loans held-for-sale | (140,402) | (183,854) | |
Proceeds from sales of loans held-for-sale | 150,571 | 183,570 | |
Net gains on sales of mortgage loans | (1,895) | (5,616) | (6,877) |
Mortgage servicing rights mark to market (gain) loss | 1,033 | (80) | 2,579 |
Net discount from accretion on loans | (588) | (606) | |
Net change in cash surrender value of BOLI | (423) | (757) | (483) |
Net gains on sale of other real estate owned | (15) | (35) | (23) |
Provision for other real estate owned valuation losses | 61 | 67 | 218 |
Depreciation of fixed assets and amortization of leasehold improvements | 1,528 | 1,357 | |
Amortization of core deposit intangibles | 115 | 235 | 252 |
Change in current income taxes receivable | (1,487) | 1,137 | |
Deferred tax expense (benefit) | 1,585 | (2,503) | |
Change in accrued interest receivable and other assets | 4,186 | (7,338) | |
Change in accrued interest payable and other liabilities | (615) | 11,294 | |
Stock based compensation | 611 | 1,314 | |
Net cash provided by operating activities | 24,495 | 20,813 | |
Cash flows from investing activities | |||
Proceeds from maturities and calls, including pay down of securities available-for-sale | 68,122 | 35,523 | |
Proceeds from sales of securities available-for-sale | 8,202 | 8,202 | 18,006 |
Purchases of securities available-for-sale | (162,663) | (12,800) | |
Net change in loans | 133,357 | (123,645) | |
Proceeds from claims on BOLI, net of claims receivable | 483 | ||
Proceeds from sales of other real estate owned, net of participations and improvements | 565 | 311 | |
Net purchases of premises and equipment | (595) | (1,539) | |
Net cash used in investing activities | 46,988 | (83,661) | |
Cash flows from financing activities | |||
Net change in deposits | 144,928 | 324,568 | |
Net change in securities sold under repurchase agreements | 1,586 | 3,395 | |
Net change in other short-term borrowings | (40,250) | ||
Redemption of junior subordinated debentures | (32,604) | ||
Issuance of subordinated debentures, net of issuance costs | 59,147 | ||
Issuance of term note | 20,000 | ||
Repayment of term note | (2,000) | (1,000) | |
Net change in notes payable and other borrowings, excluding term note | (157) | (152) | |
Dividends paid on common stock | (1,742) | (597) | |
Purchase of treasury stock | (10,388) | (3,655) | |
Net cash provided by financing activities | 191,374 | 269,705 | |
Net change in cash and cash equivalents | 262,857 | 206,857 | |
Cash and cash equivalents at beginning of period | 329,903 | 50,632 | |
Cash and cash equivalents at end of period | $ 592,760 | $ 592,760 | $ 257,489 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Balance at Dec. 31, 2019 | $ 34,854 | $ 120,657 | $ 213,723 | $ 4,562 | $ (95,932) | $ 277,864 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income | 9,513 | 9,513 | ||||||
Other comprehensive income (loss), net of tax | 1,860 | 1,860 | ||||||
Dividends declared and paid | (597) | (597) | ||||||
Vesting of restricted stock | 103 | (534) | 431 | |||||
Stock based compensation | 1,314 | 1,314 | ||||||
Purchase of treasury stock from taxes withheld on stock awards | (423) | (423) | ||||||
Purchase of treasury stock | (3,232) | (3,232) | ||||||
Balance at Jun. 30, 2020 | 34,957 | 121,437 | $ (3,783) | 218,856 | 6,422 | (99,156) | $ (3,783) | 282,516 |
Balance at Mar. 31, 2020 | 34,957 | 121,081 | 209,915 | (1,819) | (98,357) | 265,777 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income | 9,238 | 9,238 | ||||||
Other comprehensive income (loss), net of tax | 8,241 | 8,241 | ||||||
Dividends declared and paid | (297) | (297) | ||||||
Vesting of restricted stock | (229) | 229 | ||||||
Stock based compensation | 585 | 585 | ||||||
Purchase of treasury stock from taxes withheld on stock awards | (12) | (12) | ||||||
Purchase of treasury stock | (1,016) | (1,016) | ||||||
Balance at Jun. 30, 2020 | 34,957 | 121,437 | $ (3,783) | 218,856 | 6,422 | (99,156) | $ (3,783) | 282,516 |
Balance at Dec. 31, 2020 | 34,957 | 122,212 | 236,579 | 14,762 | (101,423) | 307,087 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income | 20,699 | 20,699 | ||||||
Other comprehensive income (loss), net of tax | (329) | (329) | ||||||
Dividends declared and paid | (1,742) | (1,742) | ||||||
Vesting of restricted stock | (2,251) | 2,251 | ||||||
Stock based compensation | 611 | 611 | ||||||
Purchase of treasury stock from taxes withheld on stock awards | (577) | (577) | ||||||
Purchase of treasury stock | (9,811) | (9,811) | ||||||
Balance at Jun. 30, 2021 | 34,957 | 120,572 | 255,536 | 14,433 | (109,560) | 315,938 | ||
Balance at Mar. 31, 2021 | 34,957 | 120,075 | 248,165 | 13,266 | (105,350) | 311,113 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income | 8,820 | 8,820 | ||||||
Other comprehensive income (loss), net of tax | 1,167 | 1,167 | ||||||
Dividends declared and paid | (1,449) | (1,449) | ||||||
Stock based compensation | 497 | 497 | ||||||
Purchase of treasury stock | (4,210) | (4,210) | ||||||
Balance at Jun. 30, 2021 | $ 34,957 | $ 120,572 | $ 255,536 | $ 14,433 | $ (109,560) | $ 315,938 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 311,113 | $ 265,777 | $ 307,087 | $ 277,864 |
Other comprehensive (loss) income, net of tax | 1,167 | 8,241 | (329) | 1,860 |
Balance | $ 315,938 | $ 282,516 | $ 315,938 | $ 282,516 |
Dividend declared and paid (per share) | $ 0.05 | $ 0.01 | $ 0.06 | $ 0.02 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ 13,266 | $ (1,819) | $ 14,762 | $ 4,562 |
Other comprehensive (loss) income, net of tax | 1,167 | 8,241 | (329) | 1,860 |
Balance | 14,433 | 6,422 | 14,433 | 6,422 |
Accumulated Unrealized Gain (Loss) on Securities Available-for-Sale | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | 13,971 | 2,265 | 17,413 | 6,827 |
Other comprehensive (loss) income, net of tax | 2,401 | 7,923 | (1,041) | 3,361 |
Balance | 16,372 | 10,188 | 16,372 | 10,188 |
Accumulated Unrealized Gain (Loss) on Derivative Instruments | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (705) | (4,084) | (2,651) | (2,265) |
Other comprehensive (loss) income, net of tax | (1,234) | 318 | 712 | (1,501) |
Balance | $ (1,939) | $ (3,766) | $ (1,939) | $ (3,766) |
Basis of Presentation and Chang
Basis of Presentation and Changes in Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation and Changes in Significant Accounting Policies | |
Basis of Presentation and Changes in Significant Accounting Policies | Note 1 – Basis of Presentation and Changes in Significant Accounting Policies The accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information. The interim consolidated financial statements reflect all normal and recurring adjustments that are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended June 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These interim consolidated financial statements are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2020. Unless otherwise indicated, dollar amounts in the tables contained in the notes to the consolidated financial statements are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation. The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. Recent Accounting Pronouncements In June 2016, the Financial Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2016-13, “ Financial Instruments – Measurement of Credit Losses on Financial Instruments (Topic 326) Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies Summary of Significant Accounting Policies Change in Significant Accounting Policies Significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. During the second quarter of 2021, the Company had no changes to significant accounting policies. Subsequent Events On July 20, 2021, the Company’s Board of Directors declared a cash dividend of $0.05 per share payable on August 9, 2021, to stockholders of record as of July 30, 2021; dividends of $1.4 million are scheduled to be paid to stockholders on August 9, 2021. On July 26, 2021, the Company and West Suburban Bancorp, Inc. (“West Suburban”) jointly announced the signing of an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) under which the Company will acquire West Suburban in a cash and stock transaction. Under the terms of the Merger Agreement, which was unanimously approved by the boards of directors of both companies, West Suburban will merge into the Company. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each West Suburban shareholder will receive 42.413 shares of the Company’s common stock and $271.15 in cash for each share of West Suburban common stock owned by the shareholder. Subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of both Company stockholders and West Suburban shareholders, the transaction is anticipated to close in the fourth quarter of 2021. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2021 | |
Securities | |
Securities | Note 2 – Securities Investment Portfolio Management Our investment portfolio serves the liquidity needs and income objectives of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. Investments are comprised of debt securities and non-marketable equity investments. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. Federal Home Loan Bank of Chicago (“FHLBC”) and Federal Reserve Bank of Chicago (“FRBC”) stock are considered nonmarketable equity investments. FHLBC stock was recorded at $3.7 million at June 30, 2021, and December 31, 2020. FRBC stock was recorded at $6.2 million at June 30, 2021, and December 31, 2020. The following tables summarize the amortized cost and fair value of the securities portfolio at June 30, 2021, and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair June 30, 2021 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,016 $ 70 $ - $ 4,086 U.S. government agencies 6,160 - (122) 6,038 U.S. government agencies mortgage-backed 18,131 877 (69) 18,939 States and political subdivisions 224,363 19,042 (657) 242,748 Corporate bonds 31,603 174 (62) 31,715 Collateralized mortgage obligations 99,955 2,216 (259) 101,912 Asset-backed securities 143,820 1,671 (135) 145,356 Collateralized loan obligations 29,159 61 (66) 29,154 Total securities available-for-sale $ 557,207 $ 24,111 $ (1,370) $ 579,948 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,014 $ 103 $ - $ 4,117 U.S. government agencies 6,811 - (154) 6,657 U.S. government agencies mortgage-backed 16,098 1,112 (1) 17,209 States and political subdivisions 229,352 21,269 (1,362) 249,259 Collateralized mortgage obligations 53,999 2,866 (280) 56,585 Asset-backed securities 130,959 1,370 (511) 131,818 Collateralized loan obligations 30,728 15 (210) 30,533 Total securities available-for-sale $ 471,961 $ 26,735 $ (2,518) $ 496,178 1 Excludes accrued interest receivable of $2.8 million and $2.7 million at June 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet. The fair value, amortized cost and weighted average yield of debt securities at June 30, 2021, by contractual maturity, are listed in the table below. Securities not due at a single maturity date are shown separately. Weighted Amortized Average Fair Securities available-for-sale Cost Yield Value Due in one year or less $ 4,228 1.87 % $ 4,299 Due after one year through five years 8,001 1.57 8,203 Due after five years through ten years 54,822 1.88 56,269 Due after ten years 199,091 3.01 215,816 266,142 2.72 284,587 Mortgage-backed and collateralized mortgage obligations 118,086 2.05 120,851 Asset-backed securities 143,820 1.28 145,356 Collateralized loan obligations 29,159 1.80 29,154 Total securities available-for-sale $ 557,207 2.16 % $ 579,948 At June 30, 2021, the Company’s investments included $109.3 million of asset-backed securities that are backed by student loans originated under the Federal Family Education Loan program (“FFEL”). Under the FFEL, private lenders made federally guaranteed student loans to parents and students. While the program was modified several times before elimination in 2010, FFEL securities are generally guaranteed by the U.S Department of Education (“DOE”) at not less than 97% of the outstanding principal amount of the loans. The guarantee will reduce to 85% if the DOE receives reimbursement requests in excess of 5% of insured loans; reimbursement will drop to 75% if reimbursement requests exceed 9% of insured loans. In addition to the DOE guarantee, total added credit enhancement in the form of overcollateralization and/or subordination amounted to $10.8 million, or 9.76% of outstanding principal. At June 30, 2021, the Company had invested in securities issued from one originator that individually amounted to over 10% of the Company’s stockholders’ equity. Information regarding this issuer and the value of the securities issued follows: June 30, 2021 Amortized Fair Issuer Cost Value Towd Point Mortgage Trust 32,957 34,661 Securities with unrealized losses with no corresponding allowance for credit losses at June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities): Less than 12 months 12 months or more June 30, 2021 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 122 $ 6,038 4 $ 122 $ 6,038 U.S. government agencies mortgage-backed 6 69 6,257 - - - 6 69 6,257 States and political subdivisions - - - 1 657 4,076 1 657 4,076 Corporate bonds 2 62 12,218 - - - 2 62 12,218 Collateralized mortgage obligations 4 150 38,096 1 109 7,487 5 259 45,583 Asset-backed securities 3 29 14,360 1 106 3,211 4 135 17,571 Collateralized loan obligations - - - 2 66 10,606 2 66 10,606 Total securities available-for-sale 15 $ 310 $ 70,931 9 $ 1,060 $ 31,418 24 $ 1,370 $ 102,349 Less than 12 months 12 months or more December 31, 2020 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 154 $ 6,657 4 $ 154 $ 6,657 U.S. government agencies mortgage-backed 1 1 141 - - - 1 1 141 States and political subdivisions - - - 1 1,362 3,433 1 1,362 3,433 Collateralized mortgage obligations 4 279 8,142 1 1 146 5 280 8,288 Asset-backed securities 1 2 251 3 509 49,572 4 511 49,823 Collateralized loan obligations 1 31 7,468 4 179 21,477 5 210 28,945 Total securities available-for-sale 7 $ 313 $ 16,002 13 $ 2,205 $ 81,285 20 $ 2,518 $ 97,287 Each quarter we perform an analysis to determine if any of the unrealized losses on securities available-for-sale are comprised of credit losses as compared to unrealized losses due to market interest rate adjustments. Our assessment includes a review of the unrealized loss for each security issuance held; the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades; and our ability and intent to hold the security for a period of time sufficient for a recovery in value. We also consider the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. No credit losses were determined to be present as of June 30, 2021, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the second quarter of 2021. The following table presents proceeds from sale and net realized gains (losses) on securities available-for-sale for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, Securities available-for-sale 2021 2020 2021 2020 Proceeds from sales of securities $ 8,202 $ - $ 8,202 $ 18,006 Gross realized gains on securities $ 5 $ - $ 5 $ 17 Gross realized losses on securities (3) - (3) (41) Net realized gains (losses) $ 2 $ - $ 2 $ (24) Income tax (expense) benefit on net realized gains (losses) $ (1) $ - $ (1) $ 7 Effective tax rate applied N/M 0.0 % N/M 29.2 % N/M - Not meaningful As of June 30, 2021, securities valued at $324.1 million were pledged to secure deposits and borrowings, and for other purposes, a decrease from $335.8 million of securities pledged at year-end 2020. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses on Loans | 6 Months Ended |
Jun. 30, 2021 | |
Loans and Allowance for Credit Losses on Loans | |
Loans and Allowance for Credit Losses on Loans | Note 3 – Loans and Allowance for Credit Losses on Loans Major segments of loans were as follows: June 30, 2021 December 31, 2020 Commercial 1 $ 344,084 $ 407,159 Leases 154,512 141,601 Commercial real estate - Investor 569,745 582,042 Commercial real estate - Owner occupied 318,259 333,070 Construction 100,544 98,486 Residential real estate - Investor 50,127 56,137 Residential real estate - Owner occupied 105,419 116,388 Multifamily 161,628 189,040 HELOC 72,475 80,908 HELOC - Purchased 14,436 19,487 Other 2 12,137 10,533 Total loans 1,903,366 2,034,851 Allowance for credit losses on loans (28,639) (33,855) Net loans 3 $ 1,874,727 $ 2,000,996 1 Includes $70.2 million and $74.1 million of Paycheck Protection Program (“PPP”) loans at June 30, 2021 and December 31, 2020, respectively. 2 The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 3 - Loans and Allowance for Credit Losses on Loans. 3 Excludes accrued interest receivable of $6.5 million and $7.0 million at June 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet. It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to assure access to collateral, in the event of borrower default, through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. Although the Bank makes loans primarily within its market area, there are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. The real estate related categories listed above represent 73.2% and 72.5% of the portfolio at June 30, 2021, and December 31, 2020, respectively, and include a mix of owner and non-owner occupied, residential, construction and multifamily loans. The following tables represent the activity in the allowance for credit losses for loans, or the ACL, for the three months and six months ended June 30, 2021 and June 30, 2020: Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2021 Commercial $ 3,276 $ (485) $ 207 $ 17 $ 2,601 Leases 3,382 34 28 - 3,388 Commercial real estate - Investor 7,908 2,509 - 20 10,437 Commercial real estate - Owner occupied 1,722 (615) 31 10 1,086 Construction 3,719 (671) - - 3,048 Residential real estate - Investor 1,803 (838) - 10 975 Residential real estate - Owner occupied 2,528 (723) - 61 1,866 Multifamily 4,265 (999) - - 3,266 HELOC 1,713 (181) 5 77 1,604 HELOC - Purchased 295 (66) - - 229 Other 356 (228) 30 41 139 Ending Balance, June 30, 2021 $ 30,967 $ (2,263) $ 301 $ 236 $ 28,639 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Six months ended June 30, 2021 Commercial $ 2,812 $ (39) $ 209 $ 37 $ 2,601 Leases 3,888 (472) 28 - 3,388 Commercial real estate - Investor 9,205 1,192 - 40 10,437 Commercial real estate - Owner occupied 2,251 (1,349) 34 218 1,086 Construction 4,054 (1,006) - - 3,048 Residential real estate - Investor 1,740 (1,041) - 276 975 Residential real estate - Owner occupied 2,714 (958) - 110 1,866 Multifamily 3,625 (359) - - 3,266 HELOC 1,749 (229) 17 101 1,604 HELOC - Purchased 199 30 - - 229 Other 1,618 (1,502) 55 78 139 Ending Balance, June 30, 2021 $ 33,855 $ (5,733) $ 343 $ 860 $ 28,639 Impact of Provision for Beginning Adopting (Release of) Ending Allowance for credit losses Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2020 Commercial $ 3,177 $ - $ (887) $ 22 $ 24 $ 2,292 Leases 1,890 - 122 - - 2,012 Commercial real estate - Investor 6,021 - 1,690 2 16 7,725 Commercial real estate - Owner occupied 2,051 - 762 292 - 2,521 Construction 4,031 - 400 - - 4,431 Residential real estate - Investor 1,896 - 319 4 6 2,217 Residential real estate - Owner occupied 3,368 - (230) 43 109 3,204 Multifamily 3,850 - (332) - - 3,518 HELOC 2,260 - (58) 2 55 2,255 HELOC - Purchased 850 - (452) - - 398 Other 651 - 61 41 29 700 Ending Balance, June 30, 2020 $ 30,045 $ - $ 1,395 $ 406 $ 239 $ 31,273 Impact of Provision for Allowance for credit losses Beginning Adopting (Release of) Ending Six months ended June 30, 2020 Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Commercial $ 3,015 $ (292) $ (348) $ 119 $ 36 $ 2,292 Leases 1,262 501 249 - - 2,012 Commercial real estate - Investor 6,218 (741) 2,226 15 37 7,725 Commercial real estate - Owner occupied 3,678 (848) 1,091 1,401 1 2,521 Construction 513 1,334 2,584 - - 4,431 Residential real estate - Investor 601 740 854 5 27 2,217 Residential real estate - Owner occupied 1,257 1,320 538 43 132 3,204 Multifamily 1,444 1,732 342 - - 3,518 HELOC 1,161 1,526 (543) 85 196 2,255 HELOC - Purchased - - 398 - - 398 Other 640 607 (497) 139 89 700 Ending Balance, June 30, 2020 $ 19,789 $ 5,879 $ 6,894 $ 1,807 $ 518 $ 31,273 The ACL on loans excludes $2.2 million, $3.0 million and $5.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively. The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of June 30, 2021 and December 31, 2020: Accounts ACL June 30, 2021 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ - $ - $ 427 $ 427 $ 204 Leases - - 2,098 602 2,700 781 Commercial real estate - Investor 8,106 - - - 8,106 2,002 Commercial real estate - Owner occupied 4,547 - - 2,534 7,081 1 Construction 5,601 - - - 5,601 1,135 Residential real estate - Investor 824 - - - 824 - Residential real estate - Owner occupied 3,553 - - - 3,553 3 Multifamily 4,568 - - 109 4,677 404 HELOC 824 - - - 824 18 Other 195 - - 2 197 2 Total $ 28,218 $ - $ 2,098 $ 3,674 $ 33,990 $ 4,550 Accounts ACL December 31, 2020 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 1,070 $ - $ 55 $ 1,125 $ 56 Leases - - 2,377 597 2,974 880 Commercial real estate - Investor 4,179 - - - 4,179 84 Commercial real estate - Owner occupied 9,726 - - - 9,726 195 Construction 1,891 - - - 1,891 952 Residential real estate - Investor 928 - - - 928 - Residential real estate - Owner occupied 3,535 - - - 3,535 10 Multifamily 3,838 - - - 3,838 378 HELOC 1,053 - - - 1,053 78 Other - - - 4 4 4 Total $ 25,150 $ 1,070 $ 2,377 $ 656 $ 29,253 $ 2,637 Aged analysis of past due loans by segments of loans was as follows: 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and June 30, 2021 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 15 $ - $ - $ 15 $ 344,069 $ 344,084 $ - Leases - 41 96 137 154,375 154,512 - Commercial real estate - Investor 272 695 1,213 2,180 567,565 569,745 - Commercial real estate - Owner occupied 3,583 - 2,977 6,560 311,699 318,259 - Construction - - 3,165 3,165 97,379 100,544 - Residential real estate - Investor - 872 289 1,161 48,966 50,127 - Residential real estate - Owner occupied 151 624 419 1,194 104,225 105,419 136 Multifamily 602 3,787 69 4,458 157,170 161,628 - HELOC 546 13 144 703 71,772 72,475 - HELOC - Purchased - 181 - 181 14,255 14,436 - Other 14 1 195 210 11,927 12,137 - Total $ 5,183 $ 6,214 $ 8,567 $ 19,964 $ 1,883,402 $ 1,903,366 $ 136 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2020 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ - $ - $ 52 $ 52 $ 407,107 $ 407,159 $ - Leases 613 59 316 988 140,613 141,601 163 Commercial real estate - Investor 1,439 - 1,108 2,547 579,495 582,042 - Commercial real estate - Owner occupied 1,848 958 7,309 10,115 322,955 333,070 - Construction 1,237 - - 1,237 97,249 98,486 - Residential real estate - Investor 1,022 20 484 1,526 54,611 56,137 157 Residential real estate - Owner occupied 859 286 717 1,862 114,526 116,388 114 Multifamily 3,282 467 - 3,749 185,291 189,040 - HELOC 549 50 206 805 80,103 80,908 - HELOC - Purchased 47 - - 47 19,440 19,487 - Other 20 - - 20 10,513 10,533 - Total $ 10,916 $ 1,840 $ 10,192 $ 22,948 $ 2,011,903 $ 2,034,851 $ 434 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. There were 506 loans which totaled $237.8 million modified under the CARES Act. As of June 30, 2021, 18 loans of the original 506 loans deferred, or $9.1 million, had an active deferral request and were in compliance with modified terms; 488 loans which totaled $228.7 million had resumed payments or paid off. Details of loans in active deferral is below: June 30, 2021 1st Deferral 2nd Deferral 3rd Deferral Total Loans modified under CARES Act, in deferral $ 1,020 $ 4,623 $ 3,411 $ 9,054 Loans modified under CARES Act, in nonaccrual, within deferral above 234 - 2,132 2,366 The table presents all nonaccrual loans as of June 30, 2021, and December 31, 2020: Nonaccrual loan detail June 30, 2021 December 31, 2020 Commercial $ - $ 1,125 Leases 2,526 2,638 Commercial real estate - Investor 1,915 1,632 Commercial real estate - Owner occupied 7,078 9,262 Construction 3,470 - Residential real estate - Investor 840 928 Residential real estate - Owner occupied 3,227 3,206 Multifamily 2,723 2,437 HELOC 810 1,052 HELOC - Purchased - - Other 195 - Total $ 22,784 $ 22,280 The Company recognized $28,000 of interest on nonaccrual loans during the three months ended June 30, 2021. Credit Quality Indicators The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison to industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings: Special Mention. Substandard. Doubtful. Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. Credit quality indicators by loan segment and loan origination date at June 30, 2021, were as follows: Revolving Loans Converted Revolving To Term 2021 2020 2019 2018 2017 Prior Loans Loans Total Commercial Pass $ 87,813 $ 35,182 27,621 12,621 4,678 2,498 $ 170,178 $ - $ 340,591 Special Mention 567 1,189 191 - - - 1,064 - 3,011 Substandard - 247 - 40 - 195 - - 482 Total commercial 88,380 36,618 27,812 12,661 4,678 2,693 171,242 - 344,084 Leases Pass 38,261 51,699 42,759 11,932 3,229 3,452 - - 151,332 Special Mention - 173 - - - - - - 173 Substandard - - 1,413 687 42 865 - - 3,007 Total leases 38,261 51,872 44,172 12,619 3,271 4,317 - - 154,512 Commercial real estate - Investor Pass 58,023 158,457 145,880 80,702 52,065 51,276 1,407 - 547,810 Special Mention - - 10,662 - 6,033 177 - - 16,872 Substandard 2,216 514 1,147 190 - 996 - - 5,063 Total commercial real estate - investor 60,239 158,971 157,689 80,892 58,098 52,449 1,407 - 569,745 Commercial real estate - Owner occupied Pass 41,806 68,003 48,974 54,119 40,946 52,871 2,247 - 308,966 Special Mention - 591 - - - - - - 591 Substandard - 3,743 1,753 80 1,436 1,690 - - 8,702 Total commercial real estate - owner occupied 41,806 72,337 50,727 54,199 42,382 54,561 2,247 - 318,259 Construction Pass 23,941 42,760 17,077 1,633 523 1,248 6,881 - 94,063 Special Mention - - 1,088 - - - - - 1,088 Substandard 179 - 3,291 1,923 - - - - 5,393 Total construction 24,120 42,760 21,456 3,556 523 1,248 6,881 - 100,544 Residential real estate - Investor Pass 1,576 7,676 11,638 7,253 7,430 11,618 1,854 - 49,045 Special Mention - - - - - - - - - Substandard - - - 585 - 497 - - 1,082 Total residential real estate - investor 1,576 7,676 11,638 7,838 7,430 12,115 1,854 - 50,127 Residential real estate - Owner occupied Pass 5,921 17,378 19,929 8,303 11,738 35,651 1,921 - 100,841 Special Mention - - - - - - - - - Substandard 65 47 - 409 181 3,876 - - 4,578 Total residential real estate - owner occupied 5,986 17,425 19,929 8,712 11,919 39,527 1,921 - 105,419 Multifamily Pass 14,999 29,431 28,436 38,226 25,518 8,988 34 - 145,632 Special Mention - - 6,900 619 - - - - 7,519 Substandard - 68 602 3,943 919 2,945 - - 8,477 Total multifamily 14,999 29,499 35,938 42,788 26,437 11,933 34 - 161,628 HELOC Pass 17 2,188 2,060 1,290 1,638 1,187 62,897 - 71,277 Special Mention - - - - - - 108 - 108 Substandard - 29 - 32 34 238 757 - 1,090 Total HELOC 17 2,217 2,060 1,322 1,672 1,425 63,762 - 72,475 HELOC - Purchased Pass - - - - - 14,436 - - 14,436 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total HELOC - purchased - - - - - 14,436 - - 14,436 Other Pass 3,024 1,829 702 249 144 244 5,943 - 12,135 Special Mention - - - - - - - - - Substandard - - - 2 - - - - 2 Total other 3,024 1,829 702 251 144 244 5,943 - 12,137 Total loans Pass 275,381 414,603 345,076 216,328 147,909 183,469 253,362 - 1,836,128 Special Mention 567 1,953 18,841 619 6,033 177 1,172 - 29,362 Substandard 2,460 4,648 8,206 7,891 2,612 11,302 757 - 37,876 Total loans $ 278,408 $ 421,204 $ 372,123 $ 224,838 $ 156,554 $ 194,948 $ 255,291 $ - $ 1,903,366 Credit quality indicators by loan segment and loan origination date at December 31, 2020, were as follows: Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 101,796 $ 42,294 $ 14,519 $ 6,265 $ 1,825 $ 1,691 $ 230,388 $ - $ 398,778 Special Mention 5,130 425 68 - 3 - 76 - 5,702 Substandard 273 52 1,524 - - - 830 - 2,679 Total commercial 107,199 42,771 16,111 6,265 1,828 1,691 231,294 - 407,159 Leases Pass 56,605 52,168 16,830 6,545 5,242 651 - - 138,041 Special Mention 175 163 - - - - - - 338 Substandard - 1,434 798 59 450 481 - - 3,222 Total leases 56,780 53,765 17,628 6,604 5,692 1,132 - - 141,601 Commercial real estate - Investor Pass 173,781 158,677 92,156 66,762 55,963 15,966 1,319 - 564,624 Special Mention 2,394 9,592 220 - 95 - - - 12,301 Substandard 2,709 1,126 71 - 340 871 - - 5,117 Total commercial real estate - investor 178,884 169,395 92,447 66,762 56,398 16,837 1,319 - 582,042 Commercial real estate - Owner occupied Pass 72,605 52,809 73,719 45,315 50,000 25,507 1,324 - 321,279 Special Mention 604 - - - - - - - 604 Substandard 1,564 2,154 1,780 1,664 501 3,524 - - 11,187 Total commercial real estate - owner occupied 74,773 54,963 75,499 46,979 50,501 29,031 1,324 - 333,070 Construction Pass 50,170 24,163 7,203 539 218 1,261 9,702 - 93,256 Special Mention 38 - - - - - - - 38 Substandard - 3,135 2,057 - - - - - 5,192 Total construction 50,208 27,298 9,260 539 218 1,261 9,702 - 98,486 Residential real estate - Investor Pass 9,371 14,194 8,522 7,775 2,431 11,184 1,144 - 54,621 Special Mention - - - - - - - - - Substandard 349 - 610 - 91 466 - - 1,516 Total residential real estate - investor 9,720 14,194 9,132 7,775 2,522 11,650 1,144 - 56,137 Residential real estate - Owner occupied Pass 18,308 23,450 10,808 15,409 10,394 31,325 2,654 - 112,348 Special Mention - - - - - - - - - Substandard 47 - 412 219 526 2,836 - - 4,040 Total residential real estate - owner occupied 18,355 23,450 11,220 15,628 10,920 34,161 2,654 - 116,388 Multifamily Pass 40,671 30,849 44,301 38,133 12,147 7,735 197 - 174,033 Special Mention - 6,901 - 548 - - - - 7,449 Substandard 69 - 4,254 927 118 2,190 - - 7,558 Total multifamily 40,740 37,750 48,555 39,608 12,265 9,925 197 - 189,040 HELOC Pass 2,511 2,174 1,679 2,120 504 803 69,483 - 79,274 Special Mention - - - - - - 94 - 94 Substandard - - 86 37 271 91 1,055 - 1,540 Total HELOC 2,511 2,174 1,765 2,157 775 894 70,632 - 80,908 HELOC - Purchased Pass - - - - - 19,487 - - 19,487 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total HELOC - purchased - - - - - 19,487 - - 19,487 Other Pass 1,555 574 569 229 559 341 6,702 - 10,529 Special Mention - - - - - - - - - Substandard - - 4 - - - - - 4 Total other 1,555 574 573 229 559 341 6,702 - 10,533 Total loans Pass 527,373 401,352 270,306 189,092 139,283 115,951 322,913 - 1,966,270 Special Mention 8,341 17,081 288 548 98 - 170 - 26,526 Substandard 5,011 7,901 11,596 2,906 2,297 10,459 1,885 - 42,055 Total loans $ 540,725 $ 426,334 $ 282,190 $ 192,546 $ 141,678 $ 126,410 $ 324,968 $ - $ 2,034,851 The Company had $632,000 and $546,000 in residential real estate loans in the process of foreclosure as of June 30, 2021, and December 31, 2020, respectively. Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments. Additionally, in accordance with interagency guidance, short-term deferrals granted due to the COVID-19 pandemic are not considered TDRs unless the borrower was experiencing financial difficulty prior to the pandemic. The specific allocation of the allowance for credit losses for TDRs is determined by calculating the present value of the TDR cash flows by discounting the original payment less an assumption for probability of default at the original note’s issue rate, and adding this amount to the present value of collateral less selling costs. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e., specific reserve) as a component of the allowance for credit losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. The allowance for credit losses also includes an allowance based on a loss migration analysis for each loan category on loans and leases that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. There were no TDR activity for the three and six months ended June 30, 2021. TDRs that were modified during the period are as follows: TDR Modifications TDR Modifications Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment balance Troubled debt restructurings Residential real estate - Owner occupied HAMP 1 2 256 253 2 256 253 Total 2 $ 256 $ 253 2 $ 256 $ 253 1 HAMP: Home Affordable Modification Program TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There was no TDR default activity for the periods ended June 30, 2021, and June 30, 2020, for loans that were restructured within the prior 12 month period. |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2021 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 4 – Other Real Estate Owned Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation allowance, for the periods presented are itemized in the following tables: Three Months Ended Six Months Ended June 30, June 30, Other real estate owned 2021 2020 2021 2020 Balance at beginning of period $ 2,163 $ 5,049 $ 2,474 $ 5,004 Property additions, net of acquisition adjustments - 93 - 584 Less: Proceeds from property disposals, net of participation purchase and of gains/losses 225 - 530 288 Period valuation adjustments 61 60 67 218 Balance at end of period $ 1,877 $ 5,082 $ 1,877 $ 5,082 Activity in the valuation allowance was as follows: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance at beginning of period $ 1,649 $ 6,404 $ 1,643 $ 6,712 Provision for unrealized losses 61 60 67 218 Reductions taken on sales (414) - (414) (466) Balance at end of period $ 1,296 $ 6,464 $ 1,296 $ 6,464 Expenses related to OREO, net of lease revenue includes: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Gain on sales, net $ (15) $ - $ (35) $ (23) Provision for unrealized losses 61 60 67 218 Operating expenses 31 105 85 207 Less: Lease revenue - 22 4 22 Net OREO expense $ 77 $ 143 $ 113 $ 380 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits | |
Deposits | Note 5 – Deposits Major classifications of deposits were as follows: June 30, 2021 December 31, 2020 Noninterest bearing demand $ 1,028,558 $ 909,505 Savings 442,805 399,057 NOW accounts 531,231 486,612 Money market accounts 331,144 316,465 Certificates of deposit of less than $100,000 183,444 200,107 Certificates of deposit of $100,000 through $250,000 109,500 164,982 Certificates of deposit of more than $250,000 55,319 60,345 Total deposits $ 2,682,001 $ 2,537,073 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings | |
Borrowings | Note 6 – Borrowings The following table is a summary of borrowings as of June 30, 2021, and December 31, 2020. Junior subordinated debentures are discussed in more detail in Note 7: June 30, 2021 December 31, 2020 Securities sold under repurchase agreements $ 68,566 $ 66,980 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,169 - Senior notes 44,428 44,375 Notes payable and other borrowings 21,234 23,393 Total borrowings $ 219,170 $ 160,521 The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature overnight from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies and collateralized mortgage-backed securities and had a carrying amount of $68.6 million at June 30, 2021, and $67.0 million at December 31, 2020. The fair value of the pledged collateral was $114.8 million at June 30, 2021, and $94.4 million at December 31, 2020. At June 30, 2021, there were no customers with secured balances exceeding 10% of stockholders’ equity. The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of June 30, 2021, and December 31, 2020 the Bank had no short-term advances outstanding under the FHLBC. The Bank also assumed $23.4 million of long-term FHLBC advances with the ABC Bank acquisition in 2018. At June 30, 2021, one advance remains in long-term status, with a total outstanding balance of $6.2 million, at a 2.83% interest rate, and is scheduled to mature on February 2, 2026. FHLBC stock held at June 30, 2021 was valued at $3.7 million, and any potential FHLBC advances were collateralized by loans with a principal balance of $580.0 million, which carried a FHLBC-calculated combined collateral value of $420.9 million. The Company had excess collateral of $288.5 million available to secure borrowings at June 30, 2021. The Company also had $ 44.4 million of senior notes outstanding, net of deferred issuance costs, as of June 30, 2021 and December 31, 2020. The senior notes were issued in December 2016 with a ten year maturity, and terms include interest payable semiannually at 5.75% for five years . Beginning December 2021, the senior debt will pay interest at a floating rate, with interest payable quarterly at three month LIBOR plus 385 basis points. The notes are redeemable, in whole or in part, at the option of the Company, beginning with the interest payment date on December 31, 2021, and on any floating rate interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. As of June 30, 2021, and December 31, 2020, unamortized debt issuance costs related to the senior notes were $572,000 and $625,000 , respectively, and are included as a reduction of the balance of the senior notes on the Consolidated Balance Sheet. These deferred issuance costs will be amortized to interest expense over the ten year term of the notes and are included in the Consolidated Statements of Income. On February 24, 2020, the Company originated a $20.0 million term note, of which $15.0 million is outstanding as of June 30, 2021, with a correspondent bank related to the Company’s redemption of the 7.80% cumulative trust preferred securities issued by Old Second Capital Trust I and related junior subordinated debentures. See the discussion in Note 7 – Junior Subordinated Debentures . The term note was issued for a three year term at one-month LIBOR plus 175 basis points, requires principal and interest payments quarterly, and the balance of this note is included within Notes Payable and Other Borrowings on the Consolidated Balance Sheet. The Company also has an undrawn line of credit of $20.0 million with a correspondent bank to be used for short-term funding needs; advances under this line can be outstanding up to 360 days from the date of issuance. This line of credit has not been utilized since early 2019. On April 6, 2021, we sold and issued $60.0 million in aggregate principal amount of our 3.50% Fixed-to-Floating Rate Subordinated Notes due April 15, 2031 (the “Notes”). The Notes were offered and sold to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended and the provisions of Regulation D promulgated thereunder. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include, without limitation, the redemption of existing senior debt, common stock repurchases and strategic acquisitions. The Notes will bear interest at a fixed annual rate of 3.50% , from and including the date of issuance to but excluding April 15, 2026, payable semi-annually in arrears. From and including April 15, 2026 to, but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to Three-Month Term SOFR (as defined in the Note) plus 273 basis points, payable quarterly in arrears. |
Junior Subordinated Debentures
Junior Subordinated Debentures | 6 Months Ended |
Jun. 30, 2021 | |
Junior Subordinated Debentures. | |
Junior Subordinated Debentures | Note 7 – Junior Subordinated Debentures On March 2, 2020, the Company redeemed the 7.80% cumulative trust preferred securities issued by Old Second Capital Trust I (“OSBCP”) and related junior subordinated debentures, which totaled $32.6 million. These debentures were originally issued in 2003 for a term of 30 years at 7.80% , and subject to regulatory approval, were able to be called in whole or in part by the Company after June 30, 2008. The Company received regulatory approval to redeem the debentures in early 2020, and notified OSBCP stockholders of the redemption in late January 2020. Cash disbursed for the redemption, including accrued interest on the debentures, totaled $33.0 million, or $10.13 per OSBCP share. The OSBCP redemption was funded by cash on hand and the $20 million term note discussed in Note 6 – Borrowings . Upon redemption of the junior subordinated debentures related to OSBCP in March 2020, the Company recognized the remaining unamortized debt issuance costs of $635,000 . The Company issued $25.0 million of cumulative trust preferred securities through a private placement completed by another unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. These trust preferred securities also mature in 30 years , but subject to the aforementioned regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017. The quarterly cash distributions on the securities were fixed at 6.77% through June 15, 2017, and float at 150 basis points over three-month LIBOR thereafter. Upon conversion to a floating rate, a cash flow hedge was initiated which resulted in the total interest rate paid on the debt of 4.41% for the quarter ended June 30, 2021, compared to the rate paid for the quarter ended June 30, 2020, of 4.42% . The Company issued a new $25.8 million subordinated debenture to Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. The junior subordinated debentures issued by the Company are disclosed on the Consolidated Balance Sheet, and the related interest expense for each issuance is included in the Consolidated Statements of Income. As of June 30, 2021, and December 31, 2020, the remaining unamortized debt issuance costs related to the junior subordinated debentures were $1,000 and are included as a reduction to the balance of the junior subordinated debentures on the Consolidated Balance Sheet. The remaining deferred issuance costs on the junior subordinated debentures related to the issuance of Old Second Capital Trust II will be amortized to interest expense over the remainder of the 30 -year term of the notes and are included in the Consolidated Statements of Income. |
Equity Compensation Plans
Equity Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Equity Compensation Plans | |
Equity Compensation Plans | Note 8 – Equity Compensation Plans The Company’s 2019 Equity Incentive Plan, which authorized 600,000 shares for issuance under the plan, was approved at the May 2019 annual stockholders’ meeting. Following approval of such plan, no further awards will be granted under any other prior Company equity compensation plan. At the May 2021 annual stockholders’ meeting, the Company obtained stockholder approval to amend and restate the 2019 Equity Incentive Plan to increase the number of shares of common stock authorized for issuance under the plan by 1,200,000 shares, from 600,000 shares to 1,800,000 shares (the “2019 Plan”). The 2019 Plan authorizes the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights (“SARs”). Awards may be granted to selected directors, officers, employees or eligible service providers under the 2019 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors. As of June 30, 2021, 1,420,020 shares remained available for issuance under the 2019 Plan. Under the 2019 Plan, unless otherwise provided in an award agreement, upon the occurrence of a change in control, all stock options and SARs then held by the participant will become fully exercisable immediately if, and all stock awards and cash incentive awards will become fully earned and vested immediately if, (i) the 2019 Plan is not an obligation of the successor entity following a change in control or (ii) the 2019 Plan is an obligation of the successor entity following a change in control and the participant incurs a termination of service without cause or for good reason following the change in control. Notwithstanding the immediately preceding sentence, if the vesting of an award is conditioned upon the achievement of performance measures, then such vesting will generally be subject to the following: if, at the time of the change in control, the performance measures are less than 50% attained (pro rata based upon the time of the period through the change in control), the award will become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50% ; and if, at the time of the change in control, the performance measures are at least 50% attained (pro rata based upon the time of the period through the change in control), the award will become fully earned and vested immediately upon the change in control. Generally, restricted stock and restricted stock units granted under the Plans vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change some terms including the amount of time until the vest date. Awards of restricted stock under the Plans generally entitle holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Awards of restricted stock units under the Plans are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period, but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units. There were 222,964 and 137,944 restricted stock units issued under the 2019 Plan during the six months ended June 30, 2021 and June 30, 2020, respectively. Compensation expense is recognized over the vesting period of the restricted stock units based on the market value of the award on the issue date. Total compensation cost that has been recorded for the Plan was $644,000 in the first six months of 2021 and $1.3 million for the first six months of 2020. A summary of changes in the Company’s unvested restricted awards for the six months ended June 30, 2021, is as follows: June 30, 2021 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 532,609 $ 13.15 Granted 222,964 11.38 Vested (191,653) 13.95 Forfeited (42,111) 14.15 Unvested at June 30 521,809 $ 12.01 Total unrecognized compensation cost of restricted awards was $3.5 million as of June 30, 2021, which is expected to be recognized over a weighted-average period of 2.08 years. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Earnings Per Share | Note 9 – Earnings Per Share The earnings per share, both basic and diluted, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per share: Weighted-average common shares outstanding 28,849,015 29,637,567 29,036,354 29,783,665 Net income $ 8,820 $ 9,238 $ 20,699 $ 9,513 Basic earnings per share $ 0.30 $ 0.31 $ 0.71 $ 0.32 Diluted earnings per share: Weighted-average common shares outstanding 28,849,015 29,637,567 29,036,354 29,783,665 Dilutive effect of unvested restricted awards 1 518,457 556,440 538,608 558,641 Diluted average common shares outstanding 29,367,472 30,194,007 29,574,962 30,342,306 Net Income $ 8,820 $ 9,238 $ 20,699 $ 9,513 Diluted earnings per share $ 0.30 $ 0.31 $ 0.70 $ 0.31 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters
Regulatory & Capital Matters | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory & Capital Matters | |
Regulatory & Capital Matters | Note 10 Regulatory & Capital Matters The Bank is subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighted Bank assets, developed by the Office of the Comptroller of the Currency (the “OCC”) and the other bank regulatory agencies. In connection with the current risk-based capital regulatory guidelines, the Bank’s Board of Directors has established an internal guideline requiring the Bank to maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%). At June 30, 2021, the Bank exceeded those thresholds. At June 30, 2021, the Bank’s Tier 1 capital leverage ratio was 10.63%, a decrease of 11 basis points from December 31, 2020, but is well above the 8.00% objective. The Bank’s total capital ratio was 16.33%, an increase of 133 basis points from December 31, 2020, and also well above the objective of 12.00%. Bank holding companies are generally required to maintain minimum levels of capital in accordance with capital guidelines implemented by the Board of Governors of the Federal Reserve System. The general bank and holding company capital adequacy guidelines are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of June 30, 2021, and December 31, 2020. In July 2013, the U.S. federal banking authorities issued final rules (the “Basel III Rules”) establishing more stringent regulatory capital requirements for U.S. banking institutions, which went into effect on January 1, 2015. The Basel III Rules are applicable to all banking organizations that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as to bank and savings and loan holding companies, other than “small bank holding companies” generally holding companies with consolidated assets of less than $3.0 billion. The Company is currently considered a “small bank holding company.” As we have total assets in excess of $3.0 billion as of June 30, 2021, we will no longer be considered a small bank holding company in March of 2022. A detailed discussion of the Basel III Rules is included in Part I, Item 1 of the Company’s Form 10-K for the year ended December 31, 2020, under the heading “Supervision and Regulation.” At June 30, 2021, and December 31, 2020, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “well capitalized” under current regulatory defined capital ratios. Capital levels and industry defined regulatory minimum required levels are as follows: Minimum Capital Well Capitalized Adequacy with Capital Under Prompt Corrective Actual Conservation Buffer, if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Common equity tier 1 capital to risk weighted assets Consolidated $ 285,446 12.72 $ 157,085 7.000 % N/A N/A Old Second Bank 341,244 15.23 156,842 7.000 $ 145,639 6.50 % Total capital to risk weighted assets Consolidated 395,111 17.60 235,720 10.500 N/A N/A Old Second Bank 365,910 16.33 235,276 10.500 224,072 10.00 Tier 1 capital to risk weighted assets Consolidated 310,446 13.83 190,802 8.500 N/A N/A Old Second Bank 341,244 15.23 190,451 8.500 179,248 8.00 Tier 1 capital to average assets Consolidated 310,446 9.68 128,283 4.00 N/A N/A Old Second Bank 341,244 10.63 128,408 4.00 160,510 5.00 December 31, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 277,199 11.94 $ 162,512 7.000 % N/A N/A Old Second Bank 318,466 13.75 162,128 7.000 $ 150,548 6.50 % Total capital to risk weighted assets Consolidated 331,178 14.26 243,855 10.500 N/A N/A Old Second Bank 347,408 15.00 243,186 10.500 231,605 10.00 Tier 1 capital to risk weighted assets Consolidated 302,199 13.01 197,440 8.500 N/A N/A Old Second Bank 318,466 13.75 196,870 8.500 185,289 8.00 Tier 1 capital to average assets Consolidated 302,199 10.21 118,393 4.00 N/A N/A Old Second Bank 318,466 10.74 118,609 4.00 148,262 5.00 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. Under the Federal Reserve’s Small Bank Holding Company Policy Statement, the Company is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the Federal Reserve (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to the Company, we calculate these ratios for our own planning and monitoring purposes. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” As part of its response to the impact of the COVID-19 pandemic, in the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provided banking organizations that adopted CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we elected to utilize the five-year CECL transition. The cumulative amount that is not recognized in regulatory capital, in addition to the $3.8 million Day 1 impact of CECL adoption, will be phased in at 25% per year beginning January 1, 2022. As of June 30, 2021, the capital measures of the Company exclude $4.5 million, which is the modified CECL transition adjustment. Dividend Restrictions In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years , subject to the capital requirements described above. Pursuant to the Basel III rules that came into effect January 1, 2015, and were fully phased in as of January 1, 2019, the Bank must keep a capital conservation buffer of 2.50% above the new regulatory minimum capital requirements, which must consist entirely of Common Equity Tier 1 capital in order to avoid additional limitations on capital distributions and certain other payments. Stock Repurchase Program In September 2019, our board of directors authorized the repurchase of up to 1,494,826 shares of our common stock (the “Repurchase Program”). The Repurchase Program expired on September 19, 2020, however, on October 20, 2020, the Company received notice of non-objection from the Federal Reserve Bank of Chicago to extend the Repurchase Program through October 20, 2021. Repurchases by us under the Repurchase Program may be made from time to time through open market purchases, trading plans established in accordance with SEC rules, privately negotiated transactions, or by other means. During the second quarter of 2021, we repurchased 310,900 shares of our common stock at a weighted average price of $13.55 per share, pursuant to the Repurchase Program. As of June 30, 2021, 1,485,307 shares have been repurchased since the program’s inception, and 9,519 shares remain available for repurchase under the Repurchase Program. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 11 Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability. The majority of securities available-for-sale are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: ● Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark spreads, market valuations of like securities, like securities groupings and matrix pricing. ● Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. ● State and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. ● Auction rate securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities are considered Level 2 valuations. ● Asset-backed collateralized loan obligations were priced using data from a pricing matrix supported by our bond accounting service provider and are therefore considered Level 2 valuations. ● Annually every security holding is priced by a pricing service independent of the regular and recurring pricing services used. The independent service provides a measurement to indicate if the price assigned by the regular service is within or outside of a reasonable range. Management reviews this report and applies judgment in adjusting calculations at year end related to securities pricing. ● Residential mortgage loans available for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices. ● Lending related commitments to fund certain residential mortgage loans, e.g., residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors, as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management. ● The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness. ● Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves. ● The fair value of impaired loans with specific allocations of the allowance for credit losses is essentially based on recent real estate appraisals or the fair value of the collateralized asset. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. ● Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification, or an executed pending sales contract. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balance of assets and liabilities at June 30, 2021, and December 31, 2020, respectively, measured by the Company at fair value on a recurring basis: June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,086 $ - $ - $ 4,086 U.S. government agencies - 6,038 - 6,038 U.S. government agencies mortgage-backed - 18,939 - 18,939 States and political subdivisions - 237,757 4,991 242,748 Corporate bonds - 31,715 - 31,715 Collateralized mortgage obligations - 101,912 - 101,912 Asset-backed securities - 145,356 - 145,356 Collateralized loan obligations - 29,154 - 29,154 Loans held-for-sale - 6,814 - 6,814 Mortgage servicing rights - - 5,267 5,267 Interest rate swap agreements - 6,110 - 6,110 Mortgage banking derivatives - 660 - 660 Total $ 4,086 $ 584,455 $ 10,258 $ 598,799 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 8,841 $ - $ 8,841 Total $ - $ 8,841 $ - $ 8,841 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,117 $ - $ - $ 4,117 U.S. government agencies - 6,657 - 6,657 U.S. government agencies mortgage-backed - 17,209 - 17,209 States and political subdivisions - 244,940 4,319 249,259 Collateralized mortgage obligations - 56,585 - 56,585 Asset-backed securities - 131,818 - 131,818 Collateralized loan obligations - 30,533 - 30,533 Loans held-for-sale - 12,611 - 12,611 Mortgage servicing rights - - 4,224 4,224 Interest rate swap agreements - 9,388 - 9,388 Mortgage banking derivatives - 840 - 840 Total $ 4,117 $ 510,581 $ 8,543 $ 523,241 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 13,159 $ - $ 13,159 Total $ - $ 13,159 $ - $ 13,159 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Six Months Ended June 30, 2021 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2021 $ 4,319 $ 4,224 Total gains or losses Included in earnings (6) 734 Included in other comprehensive income 735 - Purchases, issuances, sales, and settlements Purchases 220 - Issuances - 963 Settlements (277) (654) Ending balance June 30, 2021 $ 4,991 $ 5,267 Six Months Ended June 30, 2020 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2020 $ 5,419 $ 5,935 Total gains or losses Included in earnings (12) (2,304) Included in other comprehensive income (363) - Purchases, issuances, sales, and settlements Purchases 12,800 - Issuances - 1,123 Settlements (13,166) (275) Ending balance June 30, 2020 $ 4,678 $ 4,479 The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of June 30, 2021: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 5,267 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 5.1 - 51.8% 15.8 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2020: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 4,224 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 5.5 - 59.1 19.5 % In addition to the above, Level 3 fair value measurement included $5.0 million for state and political subdivisions representing various local municipality securities at June 30, 2021. This was classified as securities available-for-sale, and was valued using a discount based on market spreads of similar assets, but the liquidity premium was an unobservable input. The state and political subdivisions securities balance in Level 3 fair value at June 30, 2020, was $4.7 million. These securities were classified as securities available-for-sale, and were valued using a discount based on market spreads of similar assets, but the liquidity premium was an unobservable input. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis: The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of individually evaluated (formerly, impaired) loans and OREO. For assets measured at fair value on a nonrecurring basis at June 30, 2021, and December 31, 2020, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: June 30, 2021 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 12,463 $ 12,463 Other real estate owned, net 2 - - 1,877 1,877 Total $ - $ - $ 14,340 $ 14,340 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $17.0 million and a valuation allowance of $4.5 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.9 million for the six months ended June 30, 2021. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.9 million at June 30, 2021, which is made up of the outstanding balance of $3.2 million, net of a valuation allowance of $1.3 million. December 31, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 9,675 $ 9,675 Other real estate owned, net 2 - - 2,474 2,474 Total $ - $ - $ 12,149 $ 12,149 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $12.3 million and a valuation allowance of $2.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.4 million for the year ended December 31, 2020. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.5 million at December 31, 2020, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million. The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and impaired loans are generally valued using the fair value of collateral provided by third party appraisals. These valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales. The numerical ranges of unobservable inputs for these valuation assumptions are not meaningful. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note 12 – Fair Values of Financial Instruments The estimated fair values approximate carrying amount for all items except those described in the following table. Securities available-for-sale fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par. FHLBC stock is carried at cost and considered a Level 2 fair value. June 30, 2021 and December 31, 2020, the fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits is estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off balance sheet volume is not considered material. The carrying amount and estimated fair values of financial instruments were as follows: June 30, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 29,829 $ 29,829 $ 29,829 $ - $ - Interest earning deposits with financial institutions 562,931 562,931 562,931 - - Securities available-for-sale 579,948 579,948 4,086 570,871 4,991 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 6,814 6,814 - 6,814 - Net loans 1,874,727 1,871,528 - - 1,871,528 Mortgage servicing rights 5,267 5,267 - - 5,267 Interest rate swap agreements 6,110 6,110 - 6,110 - Interest rate lock commitments and forward contracts 660 660 - 660 - Interest receivable on securities and loans 9,293 9,293 - 9,293 - Financial liabilities: Noninterest bearing deposits $ 1,028,558 $ 1,028,558 $ 1,028,558 $ - $ - Interest bearing deposits 1,653,443 1,655,271 - 1,655,271 - Securities sold under repurchase agreements 68,566 68,566 - 68,566 - Junior subordinated debentures 25,773 19,557 - 19,557 - Subordinated debentures 59,169 59,423 59,423 Senior notes 44,428 45,430 45,430 - - Note payable and other borrowings 21,234 21,723 - 21,723 - Interest rate swap agreements 8,804 8,804 - 8,804 - Interest payable on deposits and borrowings 799 799 - 799 - December 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,306 $ 24,306 $ 24,306 $ - $ - Interest earning deposits with financial institutions 305,597 305,597 305,597 - - Securities available-for-sale 496,178 496,178 4,117 487,742 4,319 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 12,611 12,611 - 12,611 - Net loans 2,000,996 2,009,773 - - 2,009,773 Mortgage servicing rights 4,224 4,224 - - 4,224 Interest rate swap agreements 9,388 9,388 - 9,388 - Interest rate lock commitments and forward contracts 840 840 - 840 - Interest receivable on securities and loans 9,698 9,698 - 9,698 - Financial liabilities: Noninterest bearing deposits $ 909,505 $ 909,505 $ 909,505 $ - $ - Interest bearing deposits 1,627,568 1,630,109 - 1,630,109 - Securities sold under repurchase agreements 66,980 66,980 - 66,980 - Junior subordinated debentures 25,773 14,658 - 14,658 - Senior notes 44,375 44,600 44,600 - - Note payable and other borrowings 23,393 24,043 - 24,043 - Interest rate swap agreements 13,071 13,071 - 13,071 - Interest payable on deposits and borrowings 418 418 - 418 - |
Derivatives, Hedging Activities
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2021 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | Note 13 – Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company 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 Company 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 Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loan portfolio. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In December of 2019, the Company also executed a loan pool hedge of $50 million to convert variable rate loans to a fixed rate index for a five year term. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income/expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are received on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $186,000 will be reclassified as an increase to interest income and an additional $172,000 will be reclassified as an increase to interest expense. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net 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 with financial counterparties are recognized directly in earnings. The Company also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan interest rate lock commitments is managed with contracts for future deliveries of loans as well as selling forward mortgage-backed securities contracts. Loan interest rate lock commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking revenue. Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment. Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The Company entered into a forward starting interest rate swap on August 18, 2015, with an effective date of June 15, 2017. This transaction had a notional amount totaling $25.8 million as of June 30, 2021, was designated as a cash flow hedge of certain junior subordinated debentures and was determined to be fully effective during the period presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other liabilities with changes in fair value recorded in other comprehensive income, net of tax. The amount included in other comprehensive income would be reclassified to current earnings should all or a portion of the hedge no longer be considered effective. The Company expects the hedge to remain fully effective during the remaining term of the swap. The Bank will pay the counterparty a fixed rate and receive a floating rate based on three month LIBOR. The trust preferred securities In December 2019, the Company also executed a loan pool hedge of $50.0 million to convert variable rate loans to a fixed rate index for a five year term. This transaction falls under hedge accounting standards and is paired against a pool of the Bank’s LIBOR-based loans. Overall, the new swap only bolsters income in down rate scenarios by a modest degree. We consider the current level of interest rate risk to be moderate but intend to continue looking for market opportunities to hedge further. The Bank held $1.0 million and $1.4 million of cash collateral related to one correspondent financial institution to cover the loan pool hedge mark to market valuation at June 30, 2021, and December 31, 2020, respectively. The Bank also has interest rate derivative positions to assist with risk management that are not designated as hedging instruments. These derivative positions relate to transactions in which the Bank enters an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. The Bank had $17.2 million of cash collateral held by one correspondent financial institution to support interest rate swap activity and no investment securities were required to be pledged to any correspondent financial institution at June 30, 2021 and December 31, 2020. At June 30, 2021, the notional amount of non-hedging interest rate swaps was $175.5 million with a weighted average maturity of 4.3 years. At December 31, 2020, the notional amount of non-hedging interest rate swaps was $189.1 million with a weighted average maturity of 4.7 years. The Bank offsets derivative assets and liabilities that are subject to a master netting arrangement. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of June 30, 2021 and December 31, 2020. Fair Value of Derivative Instruments June 30, 2021 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 1,742 Other Liabilities 4,436 Total derivatives designated as hedging instruments 1,742 4,436 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 27 175,532 Other Assets 4,368 Other Liabilities 4,368 Interest rate lock commitments and forward contracts 148 52,285 Other Assets 660 Other Liabilities - Other contracts 3 18,735 Other Assets - Other Liabilities 37 Total derivatives not designated as hedging instruments 5,028 4,405 December 31, 2020 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 2,697 Other Liabilities 6,380 Total derivatives designated as hedging instruments 2,697 6,380 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 28 189,126 Other Assets 6,691 Other Liabilities 6,691 Interest rate lock commitments and forward contracts 205 84,472 Other Assets 840 Other Liabilities - Other contracts 4 26,523 Other Assets - Other Liabilities 88 Total derivatives not designated as hedging instruments 7,531 6,779 Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting The fair value and cash flow hedge accounting related to derivatives covered under ASC Subtopic 815-20 impacted Accumulated Other Comprehensive Income (“AOCI”) and the Income Statement. The loss recognized in AOCI on derivatives totaled $1.9 million as of June 30, 2021, and $3.8 million as of June 30, 2020. The amount of the gain or (loss) reclassified from AOCI to interest income or interest expense on the income statement totaled $26,000 and ($90,000) for the six months ended June 30, 2021, and June 30, 2020, respectively. Credit-risk-related Contingent Features For derivative transactions involving counterparties who are lending customers of the Company, the derivative credit exposure is managed through the normal credit review and monitoring process, which may include collateralization, financial covenants and/or financial guarantees of affiliated parties. Agreements with such customers require that losses associated with derivative transactions receive payment priority from any funds recovered should a customer default and ultimate disposition of collateral or guarantees occur. Credit exposure to broker/dealer counterparties is managed through agreements with each derivative counterparty that require collateralization of fair value gains owed by such counterparties. Some small degree of credit exposure exists due to timing differences between when a gain may occur and the subsequent point in time that collateral is delivered to secure that gain. This is monitored by the Company and procedures are in place to minimize this exposure. Such agreements also require the Company to collateralize counterparties in circumstances wherein the fair value of the derivatives result in loss to the Company. Other provisions of such agreements include the definition of certain events that may lead to the declaration of default and/or the early termination of the derivative transaction(s): ● If the Company either defaults or is capable of being declared in default on any of its indebtedness (exclusive of deposit obligations), then the Company could also be declared in default on its derivative obligations. ● If a merger occurs that materially changes the Company's creditworthiness in an adverse manner. ● If certain specified adverse regulatory actions occur, such as the issuance of a Cease and Desist Order, or citations for actions considered Unsafe and Unsound or that may lead to the termination of deposit insurance coverage by the FDIC. The Bank also issues letters of credit, which are conditional commitments that guarantee the performance of a customer to a third party. The credit risk involved and collateral obtained in issuing letters of credit are essentially the same as that involved in extending loan commitments to our customers. In addition to customer related commitments, the Company is responsible for letters of credit commitments that relate to properties held in OREO. The following table represents the Company’s contractual commitments due to letters of credit as of June 30, 2021, and December 31, 2020. The following table is a summary of letter of credit commitments: June 30, 2021 December 31, 2020 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 8,237 $ 8,566 $ 329 $ 9,051 $ 9,380 Commercial standby - - - - - - Performance standby 519 6,432 6,951 356 4,517 4,873 848 14,669 15,517 685 13,568 14,253 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 848 $ 14,736 $ 15,584 $ 685 $ 13,635 $ 14,320 Unused loan commitments: $ 130,851 $ 318,157 $ 449,008 $ 88,883 $ 316,298 $ 405,181 As of June 30, 2021, the Company evaluated current market conditions, including the impacts related to COVID-19 and market interest rates during the second quarter of 2021, and based on that analysis under the CECL methodology, the Company determined credit losses related to unfunded commitments totaled $2.3 million. The decrease in the ACL for unfunded commitments of $1.2 million for the second quarter of 2021, compared to the prior quarter end, is primarily related to a decrease in the commercial unfunded commitments funding rate assumptions based on our analysis of the last 12 months of utilization. The Company will continue to assess the credit risk at least quarterly, and adjust the allowance for unfunded commitments, which is carried within other liabilities on our Consolidated Balance Sheet, as needed, with the appropriate offsetting entry to the provision for credit losses on our Consolidated Statements of Income. |
Basis of Presentation and Cha_2
Basis of Presentation and Changes in Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation and Changes in Significant Accounting Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2016-13, “ Financial Instruments – Measurement of Credit Losses on Financial Instruments (Topic 326) Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies Summary of Significant Accounting Policies |
Subsequent Events | Subsequent Events On July 20, 2021, the Company’s Board of Directors declared a cash dividend of $0.05 per share payable on August 9, 2021, to stockholders of record as of July 30, 2021; dividends of $1.4 million are scheduled to be paid to stockholders on August 9, 2021. On July 26, 2021, the Company and West Suburban Bancorp, Inc. (“West Suburban”) jointly announced the signing of an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) under which the Company will acquire West Suburban in a cash and stock transaction. Under the terms of the Merger Agreement, which was unanimously approved by the boards of directors of both companies, West Suburban will merge into the Company. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each West Suburban shareholder will receive 42.413 shares of the Company’s common stock and $271.15 in cash for each share of West Suburban common stock owned by the shareholder. Subject to receipt of regulatory approvals and satisfaction of other customary closing conditions, including approval of both Company stockholders and West Suburban shareholders, the transaction is anticipated to close in the fourth quarter of 2021. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Securities | |
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss | Gross Gross Amortized Unrealized Unrealized Fair June 30, 2021 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,016 $ 70 $ - $ 4,086 U.S. government agencies 6,160 - (122) 6,038 U.S. government agencies mortgage-backed 18,131 877 (69) 18,939 States and political subdivisions 224,363 19,042 (657) 242,748 Corporate bonds 31,603 174 (62) 31,715 Collateralized mortgage obligations 99,955 2,216 (259) 101,912 Asset-backed securities 143,820 1,671 (135) 145,356 Collateralized loan obligations 29,159 61 (66) 29,154 Total securities available-for-sale $ 557,207 $ 24,111 $ (1,370) $ 579,948 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,014 $ 103 $ - $ 4,117 U.S. government agencies 6,811 - (154) 6,657 U.S. government agencies mortgage-backed 16,098 1,112 (1) 17,209 States and political subdivisions 229,352 21,269 (1,362) 249,259 Collateralized mortgage obligations 53,999 2,866 (280) 56,585 Asset-backed securities 130,959 1,370 (511) 131,818 Collateralized loan obligations 30,728 15 (210) 30,533 Total securities available-for-sale $ 471,961 $ 26,735 $ (2,518) $ 496,178 1 Excludes accrued interest receivable of $2.8 million and $2.7 million at June 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet. |
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized loan obligations | Weighted Amortized Average Fair Securities available-for-sale Cost Yield Value Due in one year or less $ 4,228 1.87 % $ 4,299 Due after one year through five years 8,001 1.57 8,203 Due after five years through ten years 54,822 1.88 56,269 Due after ten years 199,091 3.01 215,816 266,142 2.72 284,587 Mortgage-backed and collateralized mortgage obligations 118,086 2.05 120,851 Asset-backed securities 143,820 1.28 145,356 Collateralized loan obligations 29,159 1.80 29,154 Total securities available-for-sale $ 557,207 2.16 % $ 579,948 |
Schedule of amortized cost and fair value of securities that exceed 10% of stockholders equity | At June 30, 2021, the Company had invested in securities issued from one originator that individually amounted to over 10% of the Company’s stockholders’ equity. Information regarding this issuer and the value of the securities issued follows: June 30, 2021 Amortized Fair Issuer Cost Value Towd Point Mortgage Trust 32,957 34,661 |
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less than 12 months 12 months or more June 30, 2021 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 122 $ 6,038 4 $ 122 $ 6,038 U.S. government agencies mortgage-backed 6 69 6,257 - - - 6 69 6,257 States and political subdivisions - - - 1 657 4,076 1 657 4,076 Corporate bonds 2 62 12,218 - - - 2 62 12,218 Collateralized mortgage obligations 4 150 38,096 1 109 7,487 5 259 45,583 Asset-backed securities 3 29 14,360 1 106 3,211 4 135 17,571 Collateralized loan obligations - - - 2 66 10,606 2 66 10,606 Total securities available-for-sale 15 $ 310 $ 70,931 9 $ 1,060 $ 31,418 24 $ 1,370 $ 102,349 Less than 12 months 12 months or more December 31, 2020 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 154 $ 6,657 4 $ 154 $ 6,657 U.S. government agencies mortgage-backed 1 1 141 - - - 1 1 141 States and political subdivisions - - - 1 1,362 3,433 1 1,362 3,433 Collateralized mortgage obligations 4 279 8,142 1 1 146 5 280 8,288 Asset-backed securities 1 2 251 3 509 49,572 4 511 49,823 Collateralized loan obligations 1 31 7,468 4 179 21,477 5 210 28,945 Total securities available-for-sale 7 $ 313 $ 16,002 13 $ 2,205 $ 81,285 20 $ 2,518 $ 97,287 |
Schedule of proceeds from sale and gross realized gains and losses on sale of securities | Three Months Ended Six Months Ended June 30, June 30, Securities available-for-sale 2021 2020 2021 2020 Proceeds from sales of securities $ 8,202 $ - $ 8,202 $ 18,006 Gross realized gains on securities $ 5 $ - $ 5 $ 17 Gross realized losses on securities (3) - (3) (41) Net realized gains (losses) $ 2 $ - $ 2 $ (24) Income tax (expense) benefit on net realized gains (losses) $ (1) $ - $ (1) $ 7 Effective tax rate applied N/M 0.0 % N/M 29.2 % |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses on Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans and Allowance for Credit Losses on Loans | |
Schedule of major classifications of loans | June 30, 2021 December 31, 2020 Commercial 1 $ 344,084 $ 407,159 Leases 154,512 141,601 Commercial real estate - Investor 569,745 582,042 Commercial real estate - Owner occupied 318,259 333,070 Construction 100,544 98,486 Residential real estate - Investor 50,127 56,137 Residential real estate - Owner occupied 105,419 116,388 Multifamily 161,628 189,040 HELOC 72,475 80,908 HELOC - Purchased 14,436 19,487 Other 2 12,137 10,533 Total loans 1,903,366 2,034,851 Allowance for credit losses on loans (28,639) (33,855) Net loans 3 $ 1,874,727 $ 2,000,996 1 Includes $70.2 million and $74.1 million of Paycheck Protection Program (“PPP”) loans at June 30, 2021 and December 31, 2020, respectively. 2 The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 3 - Loans and Allowance for Credit Losses on Loans. 3 Excludes accrued interest receivable of $6.5 million and $7.0 million at June 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet. |
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment | Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2021 Commercial $ 3,276 $ (485) $ 207 $ 17 $ 2,601 Leases 3,382 34 28 - 3,388 Commercial real estate - Investor 7,908 2,509 - 20 10,437 Commercial real estate - Owner occupied 1,722 (615) 31 10 1,086 Construction 3,719 (671) - - 3,048 Residential real estate - Investor 1,803 (838) - 10 975 Residential real estate - Owner occupied 2,528 (723) - 61 1,866 Multifamily 4,265 (999) - - 3,266 HELOC 1,713 (181) 5 77 1,604 HELOC - Purchased 295 (66) - - 229 Other 356 (228) 30 41 139 Ending Balance, June 30, 2021 $ 30,967 $ (2,263) $ 301 $ 236 $ 28,639 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Six months ended June 30, 2021 Commercial $ 2,812 $ (39) $ 209 $ 37 $ 2,601 Leases 3,888 (472) 28 - 3,388 Commercial real estate - Investor 9,205 1,192 - 40 10,437 Commercial real estate - Owner occupied 2,251 (1,349) 34 218 1,086 Construction 4,054 (1,006) - - 3,048 Residential real estate - Investor 1,740 (1,041) - 276 975 Residential real estate - Owner occupied 2,714 (958) - 110 1,866 Multifamily 3,625 (359) - - 3,266 HELOC 1,749 (229) 17 101 1,604 HELOC - Purchased 199 30 - - 229 Other 1,618 (1,502) 55 78 139 Ending Balance, June 30, 2021 $ 33,855 $ (5,733) $ 343 $ 860 $ 28,639 Impact of Provision for Beginning Adopting (Release of) Ending Allowance for credit losses Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three months ended June 30, 2020 Commercial $ 3,177 $ - $ (887) $ 22 $ 24 $ 2,292 Leases 1,890 - 122 - - 2,012 Commercial real estate - Investor 6,021 - 1,690 2 16 7,725 Commercial real estate - Owner occupied 2,051 - 762 292 - 2,521 Construction 4,031 - 400 - - 4,431 Residential real estate - Investor 1,896 - 319 4 6 2,217 Residential real estate - Owner occupied 3,368 - (230) 43 109 3,204 Multifamily 3,850 - (332) - - 3,518 HELOC 2,260 - (58) 2 55 2,255 HELOC - Purchased 850 - (452) - - 398 Other 651 - 61 41 29 700 Ending Balance, June 30, 2020 $ 30,045 $ - $ 1,395 $ 406 $ 239 $ 31,273 Impact of Provision for Allowance for credit losses Beginning Adopting (Release of) Ending Six months ended June 30, 2020 Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Commercial $ 3,015 $ (292) $ (348) $ 119 $ 36 $ 2,292 Leases 1,262 501 249 - - 2,012 Commercial real estate - Investor 6,218 (741) 2,226 15 37 7,725 Commercial real estate - Owner occupied 3,678 (848) 1,091 1,401 1 2,521 Construction 513 1,334 2,584 - - 4,431 Residential real estate - Investor 601 740 854 5 27 2,217 Residential real estate - Owner occupied 1,257 1,320 538 43 132 3,204 Multifamily 1,444 1,732 342 - - 3,518 HELOC 1,161 1,526 (543) 85 196 2,255 HELOC - Purchased - - 398 - - 398 Other 640 607 (497) 139 89 700 Ending Balance, June 30, 2020 $ 19,789 $ 5,879 $ 6,894 $ 1,807 $ 518 $ 31,273 The ACL on loans excludes $2.2 million, $3.0 million and $5.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively. The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of June 30, 2021 and December 31, 2020: Accounts ACL June 30, 2021 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ - $ - $ 427 $ 427 $ 204 Leases - - 2,098 602 2,700 781 Commercial real estate - Investor 8,106 - - - 8,106 2,002 Commercial real estate - Owner occupied 4,547 - - 2,534 7,081 1 Construction 5,601 - - - 5,601 1,135 Residential real estate - Investor 824 - - - 824 - Residential real estate - Owner occupied 3,553 - - - 3,553 3 Multifamily 4,568 - - 109 4,677 404 HELOC 824 - - - 824 18 Other 195 - - 2 197 2 Total $ 28,218 $ - $ 2,098 $ 3,674 $ 33,990 $ 4,550 Accounts ACL December 31, 2020 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 1,070 $ - $ 55 $ 1,125 $ 56 Leases - - 2,377 597 2,974 880 Commercial real estate - Investor 4,179 - - - 4,179 84 Commercial real estate - Owner occupied 9,726 - - - 9,726 195 Construction 1,891 - - - 1,891 952 Residential real estate - Investor 928 - - - 928 - Residential real estate - Owner occupied 3,535 - - - 3,535 10 Multifamily 3,838 - - - 3,838 378 HELOC 1,053 - - - 1,053 78 Other - - - 4 4 4 Total $ 25,150 $ 1,070 $ 2,377 $ 656 $ 29,253 $ 2,637 |
Schedule of aged analysis of past due loans by class of loans | 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and June 30, 2021 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 15 $ - $ - $ 15 $ 344,069 $ 344,084 $ - Leases - 41 96 137 154,375 154,512 - Commercial real estate - Investor 272 695 1,213 2,180 567,565 569,745 - Commercial real estate - Owner occupied 3,583 - 2,977 6,560 311,699 318,259 - Construction - - 3,165 3,165 97,379 100,544 - Residential real estate - Investor - 872 289 1,161 48,966 50,127 - Residential real estate - Owner occupied 151 624 419 1,194 104,225 105,419 136 Multifamily 602 3,787 69 4,458 157,170 161,628 - HELOC 546 13 144 703 71,772 72,475 - HELOC - Purchased - 181 - 181 14,255 14,436 - Other 14 1 195 210 11,927 12,137 - Total $ 5,183 $ 6,214 $ 8,567 $ 19,964 $ 1,883,402 $ 1,903,366 $ 136 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2020 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ - $ - $ 52 $ 52 $ 407,107 $ 407,159 $ - Leases 613 59 316 988 140,613 141,601 163 Commercial real estate - Investor 1,439 - 1,108 2,547 579,495 582,042 - Commercial real estate - Owner occupied 1,848 958 7,309 10,115 322,955 333,070 - Construction 1,237 - - 1,237 97,249 98,486 - Residential real estate - Investor 1,022 20 484 1,526 54,611 56,137 157 Residential real estate - Owner occupied 859 286 717 1,862 114,526 116,388 114 Multifamily 3,282 467 - 3,749 185,291 189,040 - HELOC 549 50 206 805 80,103 80,908 - HELOC - Purchased 47 - - 47 19,440 19,487 - Other 20 - - 20 10,513 10,533 - Total $ 10,916 $ 1,840 $ 10,192 $ 22,948 $ 2,011,903 $ 2,034,851 $ 434 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. |
Schedule of Loans Inactive Deferral | June 30, 2021 1st Deferral 2nd Deferral 3rd Deferral Total Loans modified under CARES Act, in deferral $ 1,020 $ 4,623 $ 3,411 $ 9,054 Loans modified under CARES Act, in nonaccrual, within deferral above 234 - 2,132 2,366 |
Schedule of loans on nonaccrual for which there was no related allowance | Nonaccrual loan detail June 30, 2021 December 31, 2020 Commercial $ - $ 1,125 Leases 2,526 2,638 Commercial real estate - Investor 1,915 1,632 Commercial real estate - Owner occupied 7,078 9,262 Construction 3,470 - Residential real estate - Investor 840 928 Residential real estate - Owner occupied 3,227 3,206 Multifamily 2,723 2,437 HELOC 810 1,052 HELOC - Purchased - - Other 195 - Total $ 22,784 $ 22,280 |
Schedule of credit quality indicators by class of loans | Revolving Loans Converted Revolving To Term 2021 2020 2019 2018 2017 Prior Loans Loans Total Commercial Pass $ 87,813 $ 35,182 27,621 12,621 4,678 2,498 $ 170,178 $ - $ 340,591 Special Mention 567 1,189 191 - - - 1,064 - 3,011 Substandard - 247 - 40 - 195 - - 482 Total commercial 88,380 36,618 27,812 12,661 4,678 2,693 171,242 - 344,084 Leases Pass 38,261 51,699 42,759 11,932 3,229 3,452 - - 151,332 Special Mention - 173 - - - - - - 173 Substandard - - 1,413 687 42 865 - - 3,007 Total leases 38,261 51,872 44,172 12,619 3,271 4,317 - - 154,512 Commercial real estate - Investor Pass 58,023 158,457 145,880 80,702 52,065 51,276 1,407 - 547,810 Special Mention - - 10,662 - 6,033 177 - - 16,872 Substandard 2,216 514 1,147 190 - 996 - - 5,063 Total commercial real estate - investor 60,239 158,971 157,689 80,892 58,098 52,449 1,407 - 569,745 Commercial real estate - Owner occupied Pass 41,806 68,003 48,974 54,119 40,946 52,871 2,247 - 308,966 Special Mention - 591 - - - - - - 591 Substandard - 3,743 1,753 80 1,436 1,690 - - 8,702 Total commercial real estate - owner occupied 41,806 72,337 50,727 54,199 42,382 54,561 2,247 - 318,259 Construction Pass 23,941 42,760 17,077 1,633 523 1,248 6,881 - 94,063 Special Mention - - 1,088 - - - - - 1,088 Substandard 179 - 3,291 1,923 - - - - 5,393 Total construction 24,120 42,760 21,456 3,556 523 1,248 6,881 - 100,544 Residential real estate - Investor Pass 1,576 7,676 11,638 7,253 7,430 11,618 1,854 - 49,045 Special Mention - - - - - - - - - Substandard - - - 585 - 497 - - 1,082 Total residential real estate - investor 1,576 7,676 11,638 7,838 7,430 12,115 1,854 - 50,127 Residential real estate - Owner occupied Pass 5,921 17,378 19,929 8,303 11,738 35,651 1,921 - 100,841 Special Mention - - - - - - - - - Substandard 65 47 - 409 181 3,876 - - 4,578 Total residential real estate - owner occupied 5,986 17,425 19,929 8,712 11,919 39,527 1,921 - 105,419 Multifamily Pass 14,999 29,431 28,436 38,226 25,518 8,988 34 - 145,632 Special Mention - - 6,900 619 - - - - 7,519 Substandard - 68 602 3,943 919 2,945 - - 8,477 Total multifamily 14,999 29,499 35,938 42,788 26,437 11,933 34 - 161,628 HELOC Pass 17 2,188 2,060 1,290 1,638 1,187 62,897 - 71,277 Special Mention - - - - - - 108 - 108 Substandard - 29 - 32 34 238 757 - 1,090 Total HELOC 17 2,217 2,060 1,322 1,672 1,425 63,762 - 72,475 HELOC - Purchased Pass - - - - - 14,436 - - 14,436 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total HELOC - purchased - - - - - 14,436 - - 14,436 Other Pass 3,024 1,829 702 249 144 244 5,943 - 12,135 Special Mention - - - - - - - - - Substandard - - - 2 - - - - 2 Total other 3,024 1,829 702 251 144 244 5,943 - 12,137 Total loans Pass 275,381 414,603 345,076 216,328 147,909 183,469 253,362 - 1,836,128 Special Mention 567 1,953 18,841 619 6,033 177 1,172 - 29,362 Substandard 2,460 4,648 8,206 7,891 2,612 11,302 757 - 37,876 Total loans $ 278,408 $ 421,204 $ 372,123 $ 224,838 $ 156,554 $ 194,948 $ 255,291 $ - $ 1,903,366 Credit quality indicators by loan segment and loan origination date at December 31, 2020, were as follows: Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 101,796 $ 42,294 $ 14,519 $ 6,265 $ 1,825 $ 1,691 $ 230,388 $ - $ 398,778 Special Mention 5,130 425 68 - 3 - 76 - 5,702 Substandard 273 52 1,524 - - - 830 - 2,679 Total commercial 107,199 42,771 16,111 6,265 1,828 1,691 231,294 - 407,159 Leases Pass 56,605 52,168 16,830 6,545 5,242 651 - - 138,041 Special Mention 175 163 - - - - - - 338 Substandard - 1,434 798 59 450 481 - - 3,222 Total leases 56,780 53,765 17,628 6,604 5,692 1,132 - - 141,601 Commercial real estate - Investor Pass 173,781 158,677 92,156 66,762 55,963 15,966 1,319 - 564,624 Special Mention 2,394 9,592 220 - 95 - - - 12,301 Substandard 2,709 1,126 71 - 340 871 - - 5,117 Total commercial real estate - investor 178,884 169,395 92,447 66,762 56,398 16,837 1,319 - 582,042 Commercial real estate - Owner occupied Pass 72,605 52,809 73,719 45,315 50,000 25,507 1,324 - 321,279 Special Mention 604 - - - - - - - 604 Substandard 1,564 2,154 1,780 1,664 501 3,524 - - 11,187 Total commercial real estate - owner occupied 74,773 54,963 75,499 46,979 50,501 29,031 1,324 - 333,070 Construction Pass 50,170 24,163 7,203 539 218 1,261 9,702 - 93,256 Special Mention 38 - - - - - - - 38 Substandard - 3,135 2,057 - - - - - 5,192 Total construction 50,208 27,298 9,260 539 218 1,261 9,702 - 98,486 Residential real estate - Investor Pass 9,371 14,194 8,522 7,775 2,431 11,184 1,144 - 54,621 Special Mention - - - - - - - - - Substandard 349 - 610 - 91 466 - - 1,516 Total residential real estate - investor 9,720 14,194 9,132 7,775 2,522 11,650 1,144 - 56,137 Residential real estate - Owner occupied Pass 18,308 23,450 10,808 15,409 10,394 31,325 2,654 - 112,348 Special Mention - - - - - - - - - Substandard 47 - 412 219 526 2,836 - - 4,040 Total residential real estate - owner occupied 18,355 23,450 11,220 15,628 10,920 34,161 2,654 - 116,388 Multifamily Pass 40,671 30,849 44,301 38,133 12,147 7,735 197 - 174,033 Special Mention - 6,901 - 548 - - - - 7,449 Substandard 69 - 4,254 927 118 2,190 - - 7,558 Total multifamily 40,740 37,750 48,555 39,608 12,265 9,925 197 - 189,040 HELOC Pass 2,511 2,174 1,679 2,120 504 803 69,483 - 79,274 Special Mention - - - - - - 94 - 94 Substandard - - 86 37 271 91 1,055 - 1,540 Total HELOC 2,511 2,174 1,765 2,157 775 894 70,632 - 80,908 HELOC - Purchased Pass - - - - - 19,487 - - 19,487 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total HELOC - purchased - - - - - 19,487 - - 19,487 Other Pass 1,555 574 569 229 559 341 6,702 - 10,529 Special Mention - - - - - - - - - Substandard - - 4 - - - - - 4 Total other 1,555 574 573 229 559 341 6,702 - 10,533 Total loans Pass 527,373 401,352 270,306 189,092 139,283 115,951 322,913 - 1,966,270 Special Mention 8,341 17,081 288 548 98 - 170 - 26,526 Substandard 5,011 7,901 11,596 2,906 2,297 10,459 1,885 - 42,055 Total loans $ 540,725 $ 426,334 $ 282,190 $ 192,546 $ 141,678 $ 126,410 $ 324,968 $ - $ 2,034,851 |
Schedule of TDRs modified during the period by type of modification | TDR Modifications TDR Modifications Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment balance Troubled debt restructurings Residential real estate - Owner occupied HAMP 1 2 256 253 2 256 253 Total 2 $ 256 $ 253 2 $ 256 $ 253 1 HAMP: Home Affordable Modification Program |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Real Estate Owned | |
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve | Three Months Ended Six Months Ended June 30, June 30, Other real estate owned 2021 2020 2021 2020 Balance at beginning of period $ 2,163 $ 5,049 $ 2,474 $ 5,004 Property additions, net of acquisition adjustments - 93 - 584 Less: Proceeds from property disposals, net of participation purchase and of gains/losses 225 - 530 288 Period valuation adjustments 61 60 67 218 Balance at end of period $ 1,877 $ 5,082 $ 1,877 $ 5,082 |
Schedule of activity in valuation allowance | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance at beginning of period $ 1,649 $ 6,404 $ 1,643 $ 6,712 Provision for unrealized losses 61 60 67 218 Reductions taken on sales (414) - (414) (466) Balance at end of period $ 1,296 $ 6,464 $ 1,296 $ 6,464 |
Schedule of expenses related to foreclosed assets, net of lease revenue | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Gain on sales, net $ (15) $ - $ (35) $ (23) Provision for unrealized losses 61 60 67 218 Operating expenses 31 105 85 207 Less: Lease revenue - 22 4 22 Net OREO expense $ 77 $ 143 $ 113 $ 380 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits | |
Schedule of major classifications of deposits | June 30, 2021 December 31, 2020 Noninterest bearing demand $ 1,028,558 $ 909,505 Savings 442,805 399,057 NOW accounts 531,231 486,612 Money market accounts 331,144 316,465 Certificates of deposit of less than $100,000 183,444 200,107 Certificates of deposit of $100,000 through $250,000 109,500 164,982 Certificates of deposit of more than $250,000 55,319 60,345 Total deposits $ 2,682,001 $ 2,537,073 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Borrowings | |
Summary of borrowings and junior subordinated debentures | June 30, 2021 December 31, 2020 Securities sold under repurchase agreements $ 68,566 $ 66,980 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,169 - Senior notes 44,428 44,375 Notes payable and other borrowings 21,234 23,393 Total borrowings $ 219,170 $ 160,521 |
Equity Compensation Plans (Tabl
Equity Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Compensation Plans | |
Summary of changes in nonvested shares of restricted share rights | June 30, 2021 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 532,609 $ 13.15 Granted 222,964 11.38 Vested (191,653) 13.95 Forfeited (42,111) 14.15 Unvested at June 30 521,809 $ 12.01 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share | |
Schedule of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per share: Weighted-average common shares outstanding 28,849,015 29,637,567 29,036,354 29,783,665 Net income $ 8,820 $ 9,238 $ 20,699 $ 9,513 Basic earnings per share $ 0.30 $ 0.31 $ 0.71 $ 0.32 Diluted earnings per share: Weighted-average common shares outstanding 28,849,015 29,637,567 29,036,354 29,783,665 Dilutive effect of unvested restricted awards 1 518,457 556,440 538,608 558,641 Diluted average common shares outstanding 29,367,472 30,194,007 29,574,962 30,342,306 Net Income $ 8,820 $ 9,238 $ 20,699 $ 9,513 Diluted earnings per share $ 0.30 $ 0.31 $ 0.70 $ 0.31 1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory & Capital Matters (T
Regulatory & Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Regulatory & Capital Matters | |
Schedule of capital levels and industry defined regulatory minimum required levels | Minimum Capital Well Capitalized Adequacy with Capital Under Prompt Corrective Actual Conservation Buffer, if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Common equity tier 1 capital to risk weighted assets Consolidated $ 285,446 12.72 $ 157,085 7.000 % N/A N/A Old Second Bank 341,244 15.23 156,842 7.000 $ 145,639 6.50 % Total capital to risk weighted assets Consolidated 395,111 17.60 235,720 10.500 N/A N/A Old Second Bank 365,910 16.33 235,276 10.500 224,072 10.00 Tier 1 capital to risk weighted assets Consolidated 310,446 13.83 190,802 8.500 N/A N/A Old Second Bank 341,244 15.23 190,451 8.500 179,248 8.00 Tier 1 capital to average assets Consolidated 310,446 9.68 128,283 4.00 N/A N/A Old Second Bank 341,244 10.63 128,408 4.00 160,510 5.00 December 31, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 277,199 11.94 $ 162,512 7.000 % N/A N/A Old Second Bank 318,466 13.75 162,128 7.000 $ 150,548 6.50 % Total capital to risk weighted assets Consolidated 331,178 14.26 243,855 10.500 N/A N/A Old Second Bank 347,408 15.00 243,186 10.500 231,605 10.00 Tier 1 capital to risk weighted assets Consolidated 302,199 13.01 197,440 8.500 N/A N/A Old Second Bank 318,466 13.75 196,870 8.500 185,289 8.00 Tier 1 capital to average assets Consolidated 302,199 10.21 118,393 4.00 N/A N/A Old Second Bank 318,466 10.74 118,609 4.00 148,262 5.00 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. Under the Federal Reserve’s Small Bank Holding Company Policy Statement, the Company is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the Federal Reserve (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to the Company, we calculate these ratios for our own planning and monitoring purposes. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | June 30, 2021 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,086 $ - $ - $ 4,086 U.S. government agencies - 6,038 - 6,038 U.S. government agencies mortgage-backed - 18,939 - 18,939 States and political subdivisions - 237,757 4,991 242,748 Corporate bonds - 31,715 - 31,715 Collateralized mortgage obligations - 101,912 - 101,912 Asset-backed securities - 145,356 - 145,356 Collateralized loan obligations - 29,154 - 29,154 Loans held-for-sale - 6,814 - 6,814 Mortgage servicing rights - - 5,267 5,267 Interest rate swap agreements - 6,110 - 6,110 Mortgage banking derivatives - 660 - 660 Total $ 4,086 $ 584,455 $ 10,258 $ 598,799 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 8,841 $ - $ 8,841 Total $ - $ 8,841 $ - $ 8,841 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,117 $ - $ - $ 4,117 U.S. government agencies - 6,657 - 6,657 U.S. government agencies mortgage-backed - 17,209 - 17,209 States and political subdivisions - 244,940 4,319 249,259 Collateralized mortgage obligations - 56,585 - 56,585 Asset-backed securities - 131,818 - 131,818 Collateralized loan obligations - 30,533 - 30,533 Loans held-for-sale - 12,611 - 12,611 Mortgage servicing rights - - 4,224 4,224 Interest rate swap agreements - 9,388 - 9,388 Mortgage banking derivatives - 840 - 840 Total $ 4,117 $ 510,581 $ 8,543 $ 523,241 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 13,159 $ - $ 13,159 Total $ - $ 13,159 $ - $ 13,159 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | Six Months Ended June 30, 2021 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2021 $ 4,319 $ 4,224 Total gains or losses Included in earnings (6) 734 Included in other comprehensive income 735 - Purchases, issuances, sales, and settlements Purchases 220 - Issuances - 963 Settlements (277) (654) Ending balance June 30, 2021 $ 4,991 $ 5,267 Six Months Ended June 30, 2020 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2020 $ 5,419 $ 5,935 Total gains or losses Included in earnings (12) (2,304) Included in other comprehensive income (363) - Purchases, issuances, sales, and settlements Purchases 12,800 - Issuances - 1,123 Settlements (13,166) (275) Ending balance June 30, 2020 $ 4,678 $ 4,479 |
Schedule of quantitative information about level 3 fair value measurements | The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of June 30, 2021: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 5,267 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 5.1 - 51.8% 15.8 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2020: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 4,224 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 5.5 - 59.1 19.5 % |
Schedule of assets measured at fair value on a nonrecurring basis | June 30, 2021 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 12,463 $ 12,463 Other real estate owned, net 2 - - 1,877 1,877 Total $ - $ - $ 14,340 $ 14,340 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $17.0 million and a valuation allowance of $4.5 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.9 million for the six months ended June 30, 2021. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.9 million at June 30, 2021, which is made up of the outstanding balance of $3.2 million, net of a valuation allowance of $1.3 million. December 31, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 9,675 $ 9,675 Other real estate owned, net 2 - - 2,474 2,474 Total $ - $ - $ 12,149 $ 12,149 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $12.3 million and a valuation allowance of $2.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.4 million for the year ended December 31, 2020. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.5 million at December 31, 2020, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million. |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Values of Financial Instruments | |
Schedule of carrying amount and estimated fair values of financial instruments | June 30, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 29,829 $ 29,829 $ 29,829 $ - $ - Interest earning deposits with financial institutions 562,931 562,931 562,931 - - Securities available-for-sale 579,948 579,948 4,086 570,871 4,991 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 6,814 6,814 - 6,814 - Net loans 1,874,727 1,871,528 - - 1,871,528 Mortgage servicing rights 5,267 5,267 - - 5,267 Interest rate swap agreements 6,110 6,110 - 6,110 - Interest rate lock commitments and forward contracts 660 660 - 660 - Interest receivable on securities and loans 9,293 9,293 - 9,293 - Financial liabilities: Noninterest bearing deposits $ 1,028,558 $ 1,028,558 $ 1,028,558 $ - $ - Interest bearing deposits 1,653,443 1,655,271 - 1,655,271 - Securities sold under repurchase agreements 68,566 68,566 - 68,566 - Junior subordinated debentures 25,773 19,557 - 19,557 - Subordinated debentures 59,169 59,423 59,423 Senior notes 44,428 45,430 45,430 - - Note payable and other borrowings 21,234 21,723 - 21,723 - Interest rate swap agreements 8,804 8,804 - 8,804 - Interest payable on deposits and borrowings 799 799 - 799 - December 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,306 $ 24,306 $ 24,306 $ - $ - Interest earning deposits with financial institutions 305,597 305,597 305,597 - - Securities available-for-sale 496,178 496,178 4,117 487,742 4,319 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 12,611 12,611 - 12,611 - Net loans 2,000,996 2,009,773 - - 2,009,773 Mortgage servicing rights 4,224 4,224 - - 4,224 Interest rate swap agreements 9,388 9,388 - 9,388 - Interest rate lock commitments and forward contracts 840 840 - 840 - Interest receivable on securities and loans 9,698 9,698 - 9,698 - Financial liabilities: Noninterest bearing deposits $ 909,505 $ 909,505 $ 909,505 $ - $ - Interest bearing deposits 1,627,568 1,630,109 - 1,630,109 - Securities sold under repurchase agreements 66,980 66,980 - 66,980 - Junior subordinated debentures 25,773 14,658 - 14,658 - Senior notes 44,375 44,600 44,600 - - Note payable and other borrowings 23,393 24,043 - 24,043 - Interest rate swap agreements 13,071 13,071 - 13,071 - Interest payable on deposits and borrowings 418 418 - 418 - |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | |
Schedule of fair value of derivative financial instruments as well as their classification on the Balance Sheet | June 30, 2021 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 1,742 Other Liabilities 4,436 Total derivatives designated as hedging instruments 1,742 4,436 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 27 175,532 Other Assets 4,368 Other Liabilities 4,368 Interest rate lock commitments and forward contracts 148 52,285 Other Assets 660 Other Liabilities - Other contracts 3 18,735 Other Assets - Other Liabilities 37 Total derivatives not designated as hedging instruments 5,028 4,405 December 31, 2020 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 2,697 Other Liabilities 6,380 Total derivatives designated as hedging instruments 2,697 6,380 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 28 189,126 Other Assets 6,691 Other Liabilities 6,691 Interest rate lock commitments and forward contracts 205 84,472 Other Assets 840 Other Liabilities - Other contracts 4 26,523 Other Assets - Other Liabilities 88 Total derivatives not designated as hedging instruments 7,531 6,779 |
Schedule of financial instrument commitments | June 30, 2021 December 31, 2020 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 8,237 $ 8,566 $ 329 $ 9,051 $ 9,380 Commercial standby - - - - - - Performance standby 519 6,432 6,951 356 4,517 4,873 848 14,669 15,517 685 13,568 14,253 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 848 $ 14,736 $ 15,584 $ 685 $ 13,635 $ 14,320 Unused loan commitments: $ 130,851 $ 318,157 $ 449,008 $ 88,883 $ 316,298 $ 405,181 |
Basis of Presentation and Cha_3
Basis of Presentation and Changes in Significant Accounting Policies - Subsequent Events (Details) - Subsequent Event - USD ($) | Aug. 09, 2021 | Jul. 26, 2021 | Jul. 20, 2021 |
Subsequent Events | |||
Cash dividend declared (per share) | $ 0.05 | ||
Dividends paid | $ 1,400,000 | ||
West Suburban | |||
Subsequent Events | |||
Shares issued or issuable | 42.413 | ||
Cash consideration for each share | $ 271.15 |
Securities - Investment Portfol
Securities - Investment Portfolio (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
FHLB and FRB Stock | ||
FHLBC stock | $ 3.7 | $ 3.7 |
FRB stock | $ 6.2 | $ 6.2 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)item | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Securities Available-for-Sale | ||||
Amortized Cost | $ 557,207 | $ 557,207 | $ 471,961 | |
Gross Unrealized Gains | 24,111 | 24,111 | 26,735 | |
Gross Unrealized Losses | (1,370) | (1,370) | (2,518) | |
Fair Value | 579,948 | 579,948 | 496,178 | |
Accrued interest receivable | 2,800 | 2,800 | 2,700 | |
Other disclosures | ||||
Purchases | 162,663 | $ 12,800 | ||
Proceeds from sales of securities | 8,202 | 8,202 | $ 18,006 | |
Total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal | $ 10,800 | $ 10,800 | ||
Percentage of total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal | 9.76 | |||
Number of originators | item | 1 | 1 | ||
Minimum percentage of securities investment | 10.00% | |||
Securities pledged to secure deposits and for other purposes | $ 324,100 | $ 324,100 | 335,800 | |
Reimbursement requests greater than 5 % | ||||
Other disclosures | ||||
Percentage of outstanding principal amount of loans guaranteed by US Department of Education | 85 | |||
Percent of insured loan | 5 | |||
Reimbursement requests greater than 9 % | ||||
Other disclosures | ||||
Percentage of outstanding principal amount of loans guaranteed by US Department of Education | 75 | |||
Percent of insured loan | 9 | |||
US Treasury Securities [Member] | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 4,016 | $ 4,016 | 4,014 | |
Gross Unrealized Gains | 70 | 70 | 103 | |
Fair Value | 4,086 | 4,086 | 4,117 | |
US Treasury and Government | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 6,160 | 6,160 | 6,811 | |
Gross Unrealized Losses | (122) | (122) | (154) | |
Fair Value | 6,038 | 6,038 | 6,657 | |
U.S. government agencies mortgage-backed | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 16,098 | |||
Gross Unrealized Gains | 1,112 | |||
Gross Unrealized Losses | (1) | |||
Fair Value | 17,209 | |||
US States and Political Subdivisions Debt Securities [Member] | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 224,363 | 224,363 | 229,352 | |
Gross Unrealized Gains | 19,042 | 19,042 | 21,269 | |
Gross Unrealized Losses | (657) | (657) | (1,362) | |
Fair Value | 242,748 | 242,748 | 249,259 | |
Corporate Bond Securities [Member] | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 31,603 | 31,603 | ||
Gross Unrealized Gains | 174 | 174 | ||
Gross Unrealized Losses | (62) | (62) | ||
Fair Value | 31,715 | 31,715 | ||
Collateralized Mortgage Obligations [Member] | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 99,955 | 99,955 | 53,999 | |
Gross Unrealized Gains | 2,216 | 2,216 | 2,866 | |
Gross Unrealized Losses | (259) | (259) | (280) | |
Fair Value | 101,912 | 101,912 | 56,585 | |
Asset-backed Securities [Member] | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 143,820 | 143,820 | 130,959 | |
Gross Unrealized Gains | 1,671 | 1,671 | 1,370 | |
Gross Unrealized Losses | (135) | (135) | (511) | |
Fair Value | 145,356 | 145,356 | 131,818 | |
FFEL | ||||
Securities Available-for-Sale | ||||
Fair Value | 109,300 | $ 109,300 | ||
Other disclosures | ||||
Percentage of outstanding principal amount of loans guaranteed by US Department of Education | 97 | |||
Collateralized loan obligations | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 29,159 | $ 29,159 | 30,728 | |
Gross Unrealized Gains | 61 | 61 | 15 | |
Gross Unrealized Losses | (66) | (66) | (210) | |
Fair Value | 29,154 | 29,154 | $ 30,533 | |
Mortgage Backed Securities, Issued by US Government Agencies [Member] | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 18,131 | 18,131 | ||
Gross Unrealized Gains | 877 | 877 | ||
Gross Unrealized Losses | (69) | (69) | ||
Fair Value | 18,939 | 18,939 | ||
Towd Point Mortgage Trust | ||||
Securities Available-for-Sale | ||||
Amortized Cost | 32,957 | 32,957 | ||
Fair Value | $ 34,661 | $ 34,661 |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 4,228 | |
Due after one year through five years | 8,001 | |
Due after five years through ten years | 54,822 | |
Due after ten years | 199,091 | |
Debt securities excluding securities not due at a single maturity date | 266,142 | |
Total | $ 557,207 | $ 471,961 |
Securities Available-for-Sale, Weighted Average Yield | ||
Due in one year or less (as a percent) | 1.87% | |
Due after one year through five years (as a percent) | 1.57% | |
Due after five years through ten years (as a percent) | 1.88% | |
Due after ten years (as a percent) | 3.01% | |
Debt securities (as a percent) | 2.72% | |
Total (as a percent) | 2.16% | |
Securities Available-for-Sale, Fair Value | ||
Due in one year or less | $ 4,299 | |
Due after one year through five years | 8,203 | |
Due after five years through ten years | 56,269 | |
Due after ten years | 215,816 | |
Debt securities | 284,587 | |
Fair Value | 579,948 | 496,178 |
Collateralized Mortgage Obligations [Member] | ||
Securities Available-for-Sale, Amortized Cost | ||
Total | 99,955 | 53,999 |
Securities Available-for-Sale, Fair Value | ||
Fair Value | 101,912 | 56,585 |
Asset-backed Securities [Member] | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 143,820 | |
Total | $ 143,820 | 130,959 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 1.28% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 145,356 | |
Fair Value | 145,356 | 131,818 |
Collateralized loan obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 29,159 | |
Total | $ 29,159 | 30,728 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 1.80% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 29,154 | |
Fair Value | 29,154 | $ 30,533 |
Mortgage-backed and collateralized mortgage obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | $ 118,086 | |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 2.05% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | $ 120,851 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 3 Months Ended | |
Jun. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 15 | 7 |
Greater than 12 months in an unrealized loss position | security | 9 | 13 |
Total | 24 | 20 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 310,000 | $ 313,000 |
Greater than 12 months in an unrealized loss position | 1,060,000 | 2,205,000 |
Total | 1,370,000 | 2,518,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 70,931,000 | 16,002,000 |
Greater than 12 months in an unrealized loss position | 31,418,000 | 81,285,000 |
Total | 102,349,000 | $ 97,287,000 |
Credit losses were determined | 0 | |
Provision for credit losses on securities | $ 0 | |
US Government Corporations and Agencies Securities [Member] | ||
Securities Available-for-Sale, Number of Securities | ||
Greater than 12 months in an unrealized loss position | security | 4 | 4 |
Total | 4 | 4 |
Securities Available-for-Sale, Unrealized Losses | ||
Greater than 12 months in an unrealized loss position | $ 122,000 | $ 154,000 |
Total | 122,000 | 154,000 |
Securities Available-for-Sale, Fair Value | ||
Greater than 12 months in an unrealized loss position | 6,038,000 | 6,657,000 |
Total | $ 6,038,000 | $ 6,657,000 |
Mortgage Backed Securities, Issued by US Government Agencies [Member] | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 6 | 1 |
Total | 6 | 1 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 69,000 | $ 1,000 |
Total | 69,000 | 1,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 6,257,000 | 141,000 |
Total | $ 6,257,000 | $ 141,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities Available-for-Sale, Number of Securities | ||
Greater than 12 months in an unrealized loss position | security | 1 | 1 |
Total | 1 | 1 |
Securities Available-for-Sale, Unrealized Losses | ||
Greater than 12 months in an unrealized loss position | $ 657,000 | $ 1,362,000 |
Total | 657,000 | 1,362,000 |
Securities Available-for-Sale, Fair Value | ||
Greater than 12 months in an unrealized loss position | 4,076,000 | 3,433,000 |
Total | $ 4,076,000 | $ 3,433,000 |
Corporate Bond Securities [Member] | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 2 | |
Total | security | 2 | |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 62,000 | |
Total | 62,000 | |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 12,218,000 | |
Total | $ 12,218,000 | |
Collateralized Mortgage Obligations [Member] | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 4 | 4 |
Greater than 12 months in an unrealized loss position | security | 1 | 1 |
Total | 5 | 5 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 150,000 | $ 279,000 |
Greater than 12 months in an unrealized loss position | 109,000 | 1,000 |
Total | 259,000 | 280,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 38,096,000 | 8,142,000 |
Greater than 12 months in an unrealized loss position | 7,487,000 | 146,000 |
Total | $ 45,583,000 | $ 8,288,000 |
Asset-backed Securities [Member] | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 3 | 1 |
Greater than 12 months in an unrealized loss position | security | 1 | 3 |
Total | 4 | 4 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 29,000 | $ 2,000 |
Greater than 12 months in an unrealized loss position | 106,000 | 509,000 |
Total | 135,000 | 511,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 14,360,000 | 251,000 |
Greater than 12 months in an unrealized loss position | 3,211,000 | 49,572,000 |
Total | $ 17,571,000 | $ 49,823,000 |
Collateralized loan obligations | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | security | 1 | |
Greater than 12 months in an unrealized loss position | security | 2 | 4 |
Total | 2 | 5 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $ 31,000 | |
Greater than 12 months in an unrealized loss position | $ 66,000 | 179,000 |
Total | 66,000 | 210,000 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 7,468,000 | |
Greater than 12 months in an unrealized loss position | 10,606,000 | 21,477,000 |
Total | $ 10,606,000 | $ 28,945,000 |
Securities - Realized Gain (Los
Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Securities | |||||
Proceeds from sales of securities | $ 8,202 | $ 8,202 | $ 18,006 | ||
Gross realized gains on securities | 5 | 5 | 17 | ||
Gross realized losses on securities | (3) | (3) | (41) | ||
Net realized gains (losses) | 2 | 2 | (24) | ||
Income tax (expense) benefit on net realized gains (losses) | (1) | (1) | $ 7 | ||
Effective tax rate applied (as a percent) | 0.00% | 29.20% | |||
Available-for-sale Securities Pledged as Collateral | $ 324,100 | $ 324,100 | $ 335,800 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loans | ||
Total Loans | $ 1,903,366 | $ 2,034,851 |
Allowance for credit losses | (28,639) | (33,855) |
Net loans | 1,874,727 | 2,000,996 |
Loans and leases receivable, accrued interest receivable | 6,500 | 7,000 |
Paycheck Protection Program (PPP) | ||
Loans | ||
Total Loans | 70,200 | 74,100 |
Collateral | ||
Loans | ||
Allowance for credit losses | (4,550) | (2,637) |
Commercial | ||
Loans | ||
Total Loans | 344,084 | 407,159 |
Commercial | Collateral | ||
Loans | ||
Allowance for credit losses | (204) | (56) |
Leases | ||
Loans | ||
Total Loans | 154,512 | 141,601 |
Leases | Collateral | ||
Loans | ||
Allowance for credit losses | (781) | (880) |
Commercial real estate - Investor | ||
Loans | ||
Total Loans | 569,745 | 582,042 |
Commercial real estate - Investor | Collateral | ||
Loans | ||
Allowance for credit losses | (2,002) | (84) |
Commercial real estate - Owner occupied | ||
Loans | ||
Total Loans | 318,259 | 333,070 |
Commercial real estate - Owner occupied | Collateral | ||
Loans | ||
Allowance for credit losses | (1) | (195) |
Construction | ||
Loans | ||
Total Loans | 100,544 | 98,486 |
Construction | Collateral | ||
Loans | ||
Allowance for credit losses | (1,135) | (952) |
Residential real estate - Investor | ||
Loans | ||
Total Loans | 50,127 | 56,137 |
Residential real estate - Owner occupied | ||
Loans | ||
Total Loans | 105,419 | 116,388 |
Residential real estate - Owner occupied | Collateral | ||
Loans | ||
Allowance for credit losses | (3) | (10) |
Multifamily | ||
Loans | ||
Total loans, excluding deferred loan costs and PCI loans | 161,628 | 189,040 |
Total Loans | 161,628 | 189,040 |
Multifamily | Collateral | ||
Loans | ||
Allowance for credit losses | (404) | (378) |
HELOC | ||
Loans | ||
Total Loans | 72,475 | 80,908 |
HELOC | Collateral | ||
Loans | ||
Allowance for credit losses | (18) | (78) |
HELOC - Purchased | ||
Loans | ||
Total Loans | 14,436 | 19,487 |
Other 2 | ||
Loans | ||
Total Loans | $ 12,137 | $ 10,533 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate Portfolio Segment [Member] | Loan receivables | Customer Concentration Risk [Member] | ||
Loans | ||
Loans receivable as a percentage of total portfolio | 73.20% | 72.50% |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 30,967 | $ 30,045 | $ 33,855 | $ 19,789 |
Provision for (Release of) Credit Losses | (2,263) | 1,395 | (5,733) | 6,894 |
Charge-offs | 301 | 406 | 343 | 1,807 |
Recoveries | 236 | 239 | 860 | 518 |
Ending Balance | 28,639 | 31,273 | 28,639 | 31,273 |
Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 5,879 | |||
Commercial | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,276 | 3,177 | 2,812 | 3,015 |
Provision for (Release of) Credit Losses | (485) | (887) | (39) | (348) |
Charge-offs | 207 | 22 | 209 | 119 |
Recoveries | 17 | 24 | 37 | 36 |
Ending Balance | 2,601 | 2,292 | 2,601 | 2,292 |
Commercial | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | (292) | |||
Leases | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,382 | 1,890 | 3,888 | 1,262 |
Provision for (Release of) Credit Losses | 34 | 122 | (472) | 249 |
Charge-offs | 28 | 28 | ||
Ending Balance | 3,388 | 2,012 | 3,388 | 2,012 |
Leases | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 501 | |||
Commercial real estate - Investor | ||||
Allowance for loan losses: | ||||
Beginning Balance | 7,908 | 6,021 | 9,205 | 6,218 |
Provision for (Release of) Credit Losses | 2,509 | 1,690 | 1,192 | 2,226 |
Charge-offs | 2 | 15 | ||
Recoveries | 20 | 16 | 40 | 37 |
Ending Balance | 10,437 | 7,725 | 10,437 | 7,725 |
Commercial real estate - Investor | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | (741) | |||
Commercial real estate - Owner occupied | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,722 | 2,051 | 2,251 | 3,678 |
Provision for (Release of) Credit Losses | (615) | 762 | (1,349) | 1,091 |
Charge-offs | 31 | 292 | 34 | 1,401 |
Recoveries | 10 | 218 | 1 | |
Ending Balance | 1,086 | 2,521 | 1,086 | 2,521 |
Commercial real estate - Owner occupied | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | (848) | |||
Real estate - construction | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,719 | 4,031 | 4,054 | 513 |
Provision for (Release of) Credit Losses | (671) | 400 | (1,006) | 2,584 |
Ending Balance | 3,048 | 4,431 | 3,048 | 4,431 |
Real estate - construction | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,334 | |||
Residential real estate - Investor | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,803 | 1,896 | 1,740 | 601 |
Provision for (Release of) Credit Losses | (838) | 319 | (1,041) | 854 |
Charge-offs | 4 | 5 | ||
Recoveries | 10 | 6 | 276 | 27 |
Ending Balance | 975 | 2,217 | 975 | 2,217 |
Residential real estate - Investor | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 740 | |||
Residential real estate - Owner occupied | ||||
Allowance for loan losses: | ||||
Beginning Balance | 2,528 | 3,368 | 2,714 | 1,257 |
Provision for (Release of) Credit Losses | (723) | (230) | (958) | 538 |
Charge-offs | 43 | 43 | ||
Recoveries | 61 | 109 | 110 | 132 |
Ending Balance | 1,866 | 3,204 | 1,866 | 3,204 |
Residential real estate - Owner occupied | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,320 | |||
Multifamily | ||||
Allowance for loan losses: | ||||
Beginning Balance | 4,265 | 3,850 | 3,625 | 1,444 |
Provision for (Release of) Credit Losses | (999) | (332) | (359) | 342 |
Ending Balance | 3,266 | 3,518 | 3,266 | 3,518 |
Multifamily | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,732 | |||
HELOC | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,713 | 2,260 | 1,749 | 1,161 |
Provision for (Release of) Credit Losses | (181) | (58) | (229) | (543) |
Charge-offs | 5 | 2 | 17 | 85 |
Recoveries | 77 | 55 | 101 | 196 |
Ending Balance | 1,604 | 2,255 | 1,604 | 2,255 |
HELOC | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,526 | |||
HELOC - Purchased | ||||
Allowance for loan losses: | ||||
Beginning Balance | 295 | 850 | 199 | |
Provision for (Release of) Credit Losses | (66) | (452) | 30 | 398 |
Ending Balance | 229 | 398 | 229 | 398 |
Other | ||||
Allowance for loan losses: | ||||
Beginning Balance | 356 | 651 | 1,618 | 640 |
Provision for (Release of) Credit Losses | (228) | 61 | (1,502) | (497) |
Charge-offs | 30 | 41 | 55 | 139 |
Recoveries | 41 | 29 | 78 | 89 |
Ending Balance | 139 | 700 | 139 | 700 |
Other | Accounting Standards Update 2016-13 | ||||
Allowance for loan losses: | ||||
Beginning Balance | 607 | |||
Unfunded Loan Commitment | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,000 | |||
Ending Balance | $ 2,200 | $ 5,000 | $ 2,200 | $ 5,000 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 33,990 | $ 29,253 |
ACL Allocation | 28,639 | 33,855 |
Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 28,218 | 25,150 |
Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 1,070 | |
Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,098 | 2,377 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 3,674 | 656 |
Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 4,550 | 2,637 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 427 | 1,125 |
Commercial | Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 1,070 | |
Commercial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 427 | 55 |
Commercial | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 204 | 56 |
Leases | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,700 | 2,974 |
Leases | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,098 | 2,377 |
Leases | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 602 | 597 |
Leases | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 781 | 880 |
Commercial real estate - Investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 8,106 | 4,179 |
Commercial real estate - Investor | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 8,106 | 4,179 |
Commercial real estate - Investor | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 2,002 | 84 |
Commercial real estate - Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 7,081 | 9,726 |
Commercial real estate - Owner occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 4,547 | 9,726 |
Commercial real estate - Owner occupied | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2,534 | |
Commercial real estate - Owner occupied | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 1 | 195 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 5,601 | 1,891 |
Construction | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 5,601 | 1,891 |
Construction | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 1,135 | 952 |
Residential real estate - Investor | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 824 | 928 |
Residential real estate - Investor | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 824 | 928 |
Residential real estate - Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 3,553 | 3,535 |
Residential real estate - Owner occupied | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 3,553 | 3,535 |
Residential real estate - Owner occupied | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 3 | 10 |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 4,677 | 3,838 |
Multifamily | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 4,568 | 3,838 |
Multifamily | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 109 | |
Multifamily | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 404 | 378 |
HELOC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 824 | 1,053 |
HELOC | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 824 | 1,053 |
HELOC | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | 18 | 78 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 197 | 4 |
Other | Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 195 | |
Other | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | 2 | 4 |
Other | Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
ACL Allocation | $ 2 | $ 4 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | |
Aged analysis of past due loans | ||
Total Past Due | $ 19,964 | |
Current | 1,883,402 | |
Current including PCI Loans | $ 2,011,903 | |
Non accrual including PCI Loans | 22,784 | 22,280 |
Total Past Due Including PCI loans | 22,948 | |
Total Loans | 1,903,366 | 2,034,851 |
Total loans, including deferred loan loan costs and PCI | 1,874,727 | 2,000,996 |
Recorded Investment 90 days or Greater Past Due and Accruing | $ 136 | |
Total Loans | 434 | |
Number of loan modifications, CARES Act | item | 506 | |
Number of loan modifications with deferral request, CARES Act | item | 18 | |
Number of loan modifications resumed payments, CARES Act | item | 488 | |
Pre-modification, CARES Act | $ 237,800 | |
Post-modification, CARES Act | 9,100 | |
Loan modification CARES Act, resumed payments | 228,700 | |
Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 29,362 | 26,526 |
30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 5,183 | |
Total Past Due Including PCI loans | 10,916 | |
60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 6,214 | |
Total Past Due Including PCI loans | 1,840 | |
90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 8,567 | |
Total Past Due Including PCI loans | 10,192 | |
Commercial | ||
Aged analysis of past due loans | ||
Total Past Due | 15 | 52 |
Current | 344,069 | 407,107 |
Nonaccrual | 1,125 | |
Total Loans | 344,084 | 407,159 |
Commercial | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 3,011 | 5,702 |
Commercial | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 15 | |
Commercial | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 52 | |
Leases | ||
Aged analysis of past due loans | ||
Total Past Due | 137 | 988 |
Current | 154,375 | 140,613 |
Nonaccrual | 2,526 | 2,638 |
Total Loans | 154,512 | 141,601 |
Recorded Investment 90 days or Greater Past Due and Accruing | 163 | |
Leases | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 173 | 338 |
Leases | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 613 | |
Leases | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 41 | 59 |
Leases | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 96 | 316 |
Commercial real estate - Investor | ||
Aged analysis of past due loans | ||
Total Past Due | 2,180 | 2,547 |
Current | 567,565 | 579,495 |
Nonaccrual | 1,915 | 1,632 |
Total Loans | 569,745 | 582,042 |
Commercial real estate - Investor | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 16,872 | 12,301 |
Commercial real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 272 | 1,439 |
Commercial real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 695 | |
Commercial real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 1,213 | 1,108 |
Commercial real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Total Past Due | 6,560 | 10,115 |
Current | 311,699 | 322,955 |
Nonaccrual | 7,078 | 9,262 |
Total Loans | 318,259 | 333,070 |
Commercial real estate - Owner occupied | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 591 | 604 |
Commercial real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 3,583 | 1,848 |
Commercial real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 958 | |
Commercial real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 2,977 | 7,309 |
Real estate - construction | ||
Aged analysis of past due loans | ||
Total Past Due | 3,165 | 1,237 |
Current | 97,379 | 97,249 |
Nonaccrual | 3,470 | |
Total Loans | 100,544 | 98,486 |
Real estate - construction | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 1,237 | |
Real estate - construction | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 3,165 | |
Residential real estate - Investor | ||
Aged analysis of past due loans | ||
Total Past Due | 1,161 | 1,526 |
Current | 48,966 | 54,611 |
Nonaccrual | 840 | 928 |
Total Loans | 50,127 | 56,137 |
Recorded Investment 90 days or Greater Past Due and Accruing | 157 | |
Residential real estate - Investor | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 1,022 | |
Residential real estate - Investor | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 872 | 20 |
Residential real estate - Investor | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 289 | 484 |
Residential real estate - Owner occupied | ||
Aged analysis of past due loans | ||
Total Past Due | 1,194 | 1,862 |
Current | 104,225 | 114,526 |
Nonaccrual | 3,227 | 3,206 |
Total Loans | 105,419 | 116,388 |
Recorded Investment 90 days or Greater Past Due and Accruing | 136 | 114 |
Residential real estate - Owner occupied | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 151 | 859 |
Residential real estate - Owner occupied | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 624 | 286 |
Residential real estate - Owner occupied | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 419 | 717 |
Multifamily | ||
Aged analysis of past due loans | ||
Total Past Due | 4,458 | 3,749 |
Current | 157,170 | 185,291 |
Nonaccrual | 2,723 | 2,437 |
Total Loans | 161,628 | 189,040 |
Multifamily | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 7,519 | 7,449 |
Multifamily | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 602 | 3,282 |
Multifamily | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 3,787 | 467 |
Multifamily | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 69 | |
HELOC | ||
Aged analysis of past due loans | ||
Total Past Due | 703 | 805 |
Current | 71,772 | 80,103 |
Nonaccrual | 810 | 1,052 |
Total Loans | 72,475 | 80,908 |
HELOC | Special Mention [Member] | ||
Aged analysis of past due loans | ||
Total Loans | 108 | 94 |
HELOC | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 546 | 549 |
HELOC | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 13 | 50 |
HELOC | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 144 | 206 |
HELOC - Purchased | ||
Aged analysis of past due loans | ||
Total Past Due | 181 | 47 |
Current | 14,255 | 19,440 |
Total Loans | 14,436 | 19,487 |
HELOC - Purchased | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 47 | |
HELOC - Purchased | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 181 | |
Other | ||
Aged analysis of past due loans | ||
Total Past Due | 210 | 20 |
Current | 11,927 | 10,513 |
Nonaccrual | 195 | |
Total Loans | 12,137 | 10,533 |
Other | 30 to 59 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 14 | $ 20 |
Other | 60 to 89 Days Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | 1 | |
Other | 90 Days or Greater Past Due | ||
Aged analysis of past due loans | ||
Total Past Due | $ 195 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses on Loans - Loans In Active Deferral (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans modified under CARES Act, in deferral | $ 9,054 |
Loans modified under CARES Act, in nonaccrual, within deferral above | 2,366 |
1st Deferral | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans modified under CARES Act, in deferral | 1,020 |
Loans modified under CARES Act, in nonaccrual, within deferral above | 234 |
2nd Deferral | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans modified under CARES Act, in deferral | 4,623 |
3rd Deferral | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loans modified under CARES Act, in deferral | 3,411 |
Loans modified under CARES Act, in nonaccrual, within deferral above | $ 2,132 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non accrual including PCI Loans | $ 22,784,000 | $ 22,280,000 |
Interest on nonaccrual loans | 28,000 | |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,125,000 | |
Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 2,526,000 | 2,638,000 |
Commercial real estate - Investor | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,915,000 | 1,632,000 |
Commercial real estate - Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 7,078,000 | 9,262,000 |
Real estate - construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 3,470,000 | |
Residential real estate - Investor | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 840,000 | 928,000 |
Residential real estate - Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 3,227,000 | 3,206,000 |
Multifamily | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 2,723,000 | 2,437,000 |
HELOC | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 810,000 | $ 1,052,000 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 195,000 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loans by risk rating | ||
2021 | $ 278,408,000 | |
2020 | 421,204,000 | $ 540,725,000 |
2019 | 372,123,000 | 426,334,000 |
2018 | 224,838,000 | 282,190,000 |
2017 | 156,554,000 | 192,546,000 |
2016 | 141,678,000 | |
Prior | 194,948,000 | 126,410,000 |
Revolving Loans | 255,291,000 | 324,968,000 |
Total Loans | 1,903,366,000 | 2,034,851,000 |
Total Loans | 434,000 | |
Minimum [Member] | ||
Loans by risk rating | ||
Loan commitment for inclusion in credit quality analysis | 50,000 | |
Pass [Member] | ||
Loans by risk rating | ||
2021 | 275,381,000 | |
2020 | 414,603,000 | 527,373,000 |
2019 | 345,076,000 | 401,352,000 |
2018 | 216,328,000 | 270,306,000 |
2017 | 147,909,000 | 189,092,000 |
2016 | 139,283,000 | |
Prior | 183,469,000 | 115,951,000 |
Revolving Loans | 253,362,000 | 322,913,000 |
Total Loans | 1,836,128,000 | 1,966,270,000 |
Special Mention [Member] | ||
Loans by risk rating | ||
2021 | 567,000 | |
2020 | 1,953,000 | 8,341,000 |
2019 | 18,841,000 | 17,081,000 |
2018 | 619,000 | 288,000 |
2017 | 6,033,000 | 548,000 |
2016 | 98,000 | |
Prior | 177,000 | |
Revolving Loans | 1,172,000 | 170,000 |
Total Loans | 29,362,000 | 26,526,000 |
Substandard [Member] | ||
Loans by risk rating | ||
2021 | 2,460,000 | |
2020 | 4,648,000 | 5,011,000 |
2019 | 8,206,000 | 7,901,000 |
2018 | 7,891,000 | 11,596,000 |
2017 | 2,612,000 | 2,906,000 |
2016 | 2,297,000 | |
Prior | 11,302,000 | 10,459,000 |
Revolving Loans | 757,000 | 1,885,000 |
Total Loans | 37,876,000 | 42,055,000 |
Commercial | ||
Loans by risk rating | ||
2021 | 88,380,000 | |
2020 | 36,618,000 | 107,199,000 |
2019 | 27,812,000 | 42,771,000 |
2018 | 12,661,000 | 16,111,000 |
2017 | 4,678,000 | 6,265,000 |
2016 | 1,828,000 | |
Prior | 2,693,000 | 1,691,000 |
Revolving Loans | 171,242,000 | 231,294,000 |
Total Loans | 344,084,000 | 407,159,000 |
Commercial | Pass [Member] | ||
Loans by risk rating | ||
2021 | 87,813,000 | |
2020 | 35,182,000 | 101,796,000 |
2019 | 27,621,000 | 42,294,000 |
2018 | 12,621,000 | 14,519,000 |
2017 | 4,678,000 | 6,265,000 |
2016 | 1,825,000 | |
Prior | 2,498,000 | 1,691,000 |
Revolving Loans | 170,178,000 | 230,388,000 |
Total Loans | 340,591,000 | 398,778,000 |
Commercial | Special Mention [Member] | ||
Loans by risk rating | ||
2021 | 567,000 | |
2020 | 1,189,000 | 5,130,000 |
2019 | 191,000 | 425,000 |
2018 | 68,000 | |
2016 | 3,000 | |
Revolving Loans | 1,064,000 | 76,000 |
Total Loans | 3,011,000 | 5,702,000 |
Commercial | Substandard [Member] | ||
Loans by risk rating | ||
2020 | 247,000 | 273,000 |
2019 | 52,000 | |
2018 | 40,000 | 1,524,000 |
Prior | 195,000 | |
Revolving Loans | 830,000 | |
Total Loans | 482,000 | 2,679,000 |
Real estate - residential | ||
Loans by risk rating | ||
Mortgage loans in process of foreclosure | 632,000 | 546,000 |
Leases | ||
Loans by risk rating | ||
2021 | 38,261,000 | |
2020 | 51,872,000 | 56,780,000 |
2019 | 44,172,000 | 53,765,000 |
2018 | 12,619,000 | 17,628,000 |
2017 | 3,271,000 | 6,604,000 |
2016 | 5,692,000 | |
Prior | 4,317,000 | 1,132,000 |
Total Loans | 154,512,000 | 141,601,000 |
Leases | Pass [Member] | ||
Loans by risk rating | ||
2021 | 38,261,000 | |
2020 | 51,699,000 | 56,605,000 |
2019 | 42,759,000 | 52,168,000 |
2018 | 11,932,000 | 16,830,000 |
2017 | 3,229,000 | 6,545,000 |
2016 | 5,242,000 | |
Prior | 3,452,000 | 651,000 |
Total Loans | 151,332,000 | 138,041,000 |
Leases | Special Mention [Member] | ||
Loans by risk rating | ||
2020 | 173,000 | 175,000 |
2019 | 163,000 | |
Total Loans | 173,000 | 338,000 |
Leases | Substandard [Member] | ||
Loans by risk rating | ||
2019 | 1,413,000 | 1,434,000 |
2018 | 687,000 | 798,000 |
2017 | 42,000 | 59,000 |
2016 | 450,000 | |
Prior | 865,000 | 481,000 |
Total Loans | 3,007,000 | 3,222,000 |
Commercial real estate - Investor | ||
Loans by risk rating | ||
2021 | 60,239,000 | |
2020 | 158,971,000 | 178,884,000 |
2019 | 157,689,000 | 169,395,000 |
2018 | 80,892,000 | 92,447,000 |
2017 | 58,098,000 | 66,762,000 |
2016 | 56,398,000 | |
Prior | 52,449,000 | 16,837,000 |
Revolving Loans | 1,407,000 | 1,319,000 |
Total Loans | 569,745,000 | 582,042,000 |
Commercial real estate - Investor | Pass [Member] | ||
Loans by risk rating | ||
2021 | 58,023,000 | |
2020 | 158,457,000 | 173,781,000 |
2019 | 145,880,000 | 158,677,000 |
2018 | 80,702,000 | 92,156,000 |
2017 | 52,065,000 | 66,762,000 |
2016 | 55,963,000 | |
Prior | 51,276,000 | 15,966,000 |
Revolving Loans | 1,407,000 | 1,319,000 |
Total Loans | 547,810,000 | 564,624,000 |
Commercial real estate - Investor | Special Mention [Member] | ||
Loans by risk rating | ||
2020 | 2,394,000 | |
2019 | 10,662,000 | 9,592,000 |
2018 | 220,000 | |
2017 | 6,033,000 | |
2016 | 95,000 | |
Prior | 177,000 | |
Total Loans | 16,872,000 | 12,301,000 |
Commercial real estate - Investor | Substandard [Member] | ||
Loans by risk rating | ||
2021 | 2,216,000 | |
2020 | 514,000 | 2,709,000 |
2019 | 1,147,000 | 1,126,000 |
2018 | 190,000 | 71,000 |
2016 | 340,000 | |
Prior | 996,000 | 871,000 |
Total Loans | 5,063,000 | 5,117,000 |
Commercial real estate - Owner occupied | ||
Loans by risk rating | ||
2021 | 41,806,000 | |
2020 | 72,337,000 | 74,773,000 |
2019 | 50,727,000 | 54,963,000 |
2018 | 54,199,000 | 75,499,000 |
2017 | 42,382,000 | 46,979,000 |
2016 | 50,501,000 | |
Prior | 54,561,000 | 29,031,000 |
Revolving Loans | 2,247,000 | 1,324,000 |
Total Loans | 318,259,000 | 333,070,000 |
Commercial real estate - Owner occupied | Pass [Member] | ||
Loans by risk rating | ||
2021 | 41,806,000 | |
2020 | 68,003,000 | 72,605,000 |
2019 | 48,974,000 | 52,809,000 |
2018 | 54,119,000 | 73,719,000 |
2017 | 40,946,000 | 45,315,000 |
2016 | 50,000,000 | |
Prior | 52,871,000 | 25,507,000 |
Revolving Loans | 2,247,000 | 1,324,000 |
Total Loans | 308,966,000 | 321,279,000 |
Commercial real estate - Owner occupied | Special Mention [Member] | ||
Loans by risk rating | ||
2020 | 591,000 | 604,000 |
Total Loans | 591,000 | 604,000 |
Commercial real estate - Owner occupied | Substandard [Member] | ||
Loans by risk rating | ||
2020 | 3,743,000 | 1,564,000 |
2019 | 1,753,000 | 2,154,000 |
2018 | 80,000 | 1,780,000 |
2017 | 1,436,000 | 1,664,000 |
2016 | 501,000 | |
Prior | 1,690,000 | 3,524,000 |
Total Loans | 8,702,000 | 11,187,000 |
Construction | ||
Loans by risk rating | ||
2021 | 24,120,000 | |
2020 | 42,760,000 | 50,208,000 |
2019 | 21,456,000 | 27,298,000 |
2018 | 3,556,000 | 9,260,000 |
2017 | 523,000 | 539,000 |
2016 | 218,000 | |
Prior | 1,248,000 | 1,261,000 |
Revolving Loans | 6,881,000 | 9,702,000 |
Total Loans | 100,544,000 | 98,486,000 |
Construction | Pass [Member] | ||
Loans by risk rating | ||
2021 | 23,941,000 | |
2020 | 42,760,000 | 50,170,000 |
2019 | 17,077,000 | 24,163,000 |
2018 | 1,633,000 | 7,203,000 |
2017 | 523,000 | 539,000 |
2016 | 218,000 | |
Prior | 1,248,000 | 1,261,000 |
Revolving Loans | 6,881,000 | 9,702,000 |
Total Loans | 94,063,000 | 93,256,000 |
Construction | Special Mention [Member] | ||
Loans by risk rating | ||
2020 | 38,000 | |
2019 | 1,088,000 | |
Total Loans | 1,088,000 | 38,000 |
Construction | Substandard [Member] | ||
Loans by risk rating | ||
2021 | 179,000 | |
2019 | 3,291,000 | 3,135,000 |
2018 | 1,923,000 | 2,057,000 |
Total Loans | 5,393,000 | 5,192,000 |
Residential real estate - Investor | ||
Loans by risk rating | ||
2021 | 1,576,000 | |
2020 | 7,676,000 | 9,720,000 |
2019 | 11,638,000 | 14,194,000 |
2018 | 7,838,000 | 9,132,000 |
2017 | 7,430,000 | 7,775,000 |
2016 | 2,522,000 | |
Prior | 12,115,000 | 11,650,000 |
Revolving Loans | 1,854,000 | 1,144,000 |
Total Loans | 50,127,000 | 56,137,000 |
Residential real estate - Investor | Pass [Member] | ||
Loans by risk rating | ||
2021 | 1,576,000 | |
2020 | 7,676,000 | 9,371,000 |
2019 | 11,638,000 | 14,194,000 |
2018 | 7,253,000 | 8,522,000 |
2017 | 7,430,000 | 7,775,000 |
2016 | 2,431,000 | |
Prior | 11,618,000 | 11,184,000 |
Revolving Loans | 1,854,000 | 1,144,000 |
Total Loans | 49,045,000 | 54,621,000 |
Residential real estate - Investor | Substandard [Member] | ||
Loans by risk rating | ||
2020 | 349,000 | |
2018 | 585,000 | 610,000 |
2016 | 91,000 | |
Prior | 497,000 | 466,000 |
Total Loans | 1,082,000 | 1,516,000 |
Residential real estate - Owner occupied | ||
Loans by risk rating | ||
2021 | 5,986,000 | |
2020 | 17,425,000 | 18,355,000 |
2019 | 19,929,000 | 23,450,000 |
2018 | 8,712,000 | 11,220,000 |
2017 | 11,919,000 | 15,628,000 |
2016 | 10,920,000 | |
Prior | 39,527,000 | 34,161,000 |
Revolving Loans | 1,921,000 | 2,654,000 |
Total Loans | 105,419,000 | 116,388,000 |
Residential real estate - Owner occupied | Pass [Member] | ||
Loans by risk rating | ||
2021 | 5,921,000 | |
2020 | 17,378,000 | 18,308,000 |
2019 | 19,929,000 | 23,450,000 |
2018 | 8,303,000 | 10,808,000 |
2017 | 11,738,000 | 15,409,000 |
2016 | 10,394,000 | |
Prior | 35,651,000 | 31,325,000 |
Revolving Loans | 1,921,000 | 2,654,000 |
Total Loans | 100,841,000 | 112,348,000 |
Residential real estate - Owner occupied | Substandard [Member] | ||
Loans by risk rating | ||
2021 | 65,000 | |
2020 | 47,000 | 47,000 |
2018 | 409,000 | 412,000 |
2017 | 181,000 | 219,000 |
2016 | 526,000 | |
Prior | 3,876,000 | 2,836,000 |
Total Loans | 4,578,000 | 4,040,000 |
Multifamily | ||
Loans by risk rating | ||
2021 | 14,999,000 | |
2020 | 29,499,000 | 40,740,000 |
2019 | 35,938,000 | 37,750,000 |
2018 | 42,788,000 | 48,555,000 |
2017 | 26,437,000 | 39,608,000 |
2016 | 12,265,000 | |
Prior | 11,933,000 | 9,925,000 |
Revolving Loans | 34,000 | 197,000 |
Total Loans | 161,628,000 | 189,040,000 |
Multifamily | Pass [Member] | ||
Loans by risk rating | ||
2021 | 14,999,000 | |
2020 | 29,431,000 | 40,671,000 |
2019 | 28,436,000 | 30,849,000 |
2018 | 38,226,000 | 44,301,000 |
2017 | 25,518,000 | 38,133,000 |
2016 | 12,147,000 | |
Prior | 8,988,000 | 7,735,000 |
Revolving Loans | 34,000 | 197,000 |
Total Loans | 145,632,000 | 174,033,000 |
Multifamily | Special Mention [Member] | ||
Loans by risk rating | ||
2019 | 6,900,000 | 6,901,000 |
2018 | 619,000 | |
2017 | 548,000 | |
Total Loans | 7,519,000 | 7,449,000 |
Multifamily | Substandard [Member] | ||
Loans by risk rating | ||
2020 | 68,000 | 69,000 |
2019 | 602,000 | |
2018 | 3,943,000 | 4,254,000 |
2017 | 919,000 | 927,000 |
2016 | 118,000 | |
Prior | 2,945,000 | 2,190,000 |
Total Loans | 8,477,000 | 7,558,000 |
HELOC | ||
Loans by risk rating | ||
2021 | 17,000 | |
2020 | 2,217,000 | 2,511,000 |
2019 | 2,060,000 | 2,174,000 |
2018 | 1,322,000 | 1,765,000 |
2017 | 1,672,000 | 2,157,000 |
2016 | 775,000 | |
Prior | 1,425,000 | 894,000 |
Revolving Loans | 63,762,000 | 70,632,000 |
Total Loans | 72,475,000 | 80,908,000 |
HELOC | Pass [Member] | ||
Loans by risk rating | ||
2021 | 17,000 | |
2020 | 2,188,000 | 2,511,000 |
2019 | 2,060,000 | 2,174,000 |
2018 | 1,290,000 | 1,679,000 |
2017 | 1,638,000 | 2,120,000 |
2016 | 504,000 | |
Prior | 1,187,000 | 803,000 |
Revolving Loans | 62,897,000 | 69,483,000 |
Total Loans | 71,277,000 | 79,274,000 |
HELOC | Special Mention [Member] | ||
Loans by risk rating | ||
Revolving Loans | 108,000 | 94,000 |
Total Loans | 108,000 | 94,000 |
HELOC | Substandard [Member] | ||
Loans by risk rating | ||
2020 | 29,000 | |
2018 | 32,000 | 86,000 |
2017 | 34,000 | 37,000 |
2016 | 271,000 | |
Prior | 238,000 | 91,000 |
Revolving Loans | 757,000 | 1,055,000 |
Total Loans | 1,090,000 | 1,540,000 |
HELOC - Purchased | ||
Loans by risk rating | ||
Prior | 14,436,000 | 19,487,000 |
Total Loans | 14,436,000 | 19,487,000 |
HELOC - Purchased | Pass [Member] | ||
Loans by risk rating | ||
Prior | 14,436,000 | 19,487,000 |
Total Loans | 14,436,000 | 19,487,000 |
Other | ||
Loans by risk rating | ||
2021 | 3,024,000 | |
2020 | 1,829,000 | 1,555,000 |
2019 | 702,000 | 574,000 |
2018 | 251,000 | 573,000 |
2017 | 144,000 | 229,000 |
2016 | 559,000 | |
Prior | 244,000 | 341,000 |
Revolving Loans | 5,943,000 | 6,702,000 |
Total Loans | 12,137,000 | 10,533,000 |
Other | Pass [Member] | ||
Loans by risk rating | ||
2021 | 3,024,000 | |
2020 | 1,829,000 | 1,555,000 |
2019 | 702,000 | 574,000 |
2018 | 249,000 | 569,000 |
2017 | 144,000 | 229,000 |
2016 | 559,000 | |
Prior | 244,000 | 341,000 |
Revolving Loans | 5,943,000 | 6,702,000 |
Total Loans | 12,135,000 | 10,529,000 |
Other | Substandard [Member] | ||
Loans by risk rating | ||
2018 | 2,000 | 4,000 |
Total Loans | $ 2,000 | $ 4,000 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses on Loans - TDR (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)contract | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)contract | |
Troubled debt restructurings - modified during the period | ||||
# of contracts | contract | 2 | 2 | ||
Pre-modification recorded investment | $ 0 | $ 256,000 | $ 0 | $ 256,000 |
Post-modification recorded investment | $ 253,000 | 253,000 | ||
TDR's defaulted | ||||
Pre-modification outstanding recorded investment during the period | $ 0 | $ 0 | ||
Real estate - residential | Residential Owner Occupied Loan [Member] | Home Affordable Modification Program [Member] | ||||
Troubled debt restructurings - modified during the period | ||||
# of contracts | contract | 2 | 2 | ||
Pre-modification recorded investment | $ 256,000 | $ 256,000 | ||
Post-modification recorded investment | $ 253,000 | $ 253,000 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ||||
Balance at beginning of period | $ 2,163 | $ 5,049 | $ 2,474 | $ 5,004 |
Property additions, net of acquisition adjustments | 93 | 584 | ||
Less: Proceeds from property disposals, net of participation purchase and of gains/losses | 225 | 530 | 288 | |
Less: Period valuation adjustments | 61 | 60 | 67 | 218 |
Balance at end of period | 1,877 | 5,082 | 1,877 | 5,082 |
Activity in the valuation allowance | ||||
Balance at beginning of period | 1,649 | 6,404 | 1,643 | 6,712 |
Provision for unrealized losses | 61 | 60 | 67 | 218 |
Reductions taken on sales | (414) | (414) | (466) | |
Balance at end of period | 1,296 | 6,464 | 1,296 | 6,464 |
Expenses related to foreclosed assets, net of lease revenue | ||||
Gain on sales, net | (15) | (35) | (23) | |
Provision for unrealized losses | 61 | 60 | 67 | 218 |
Operating expenses | 31 | 105 | 85 | 207 |
Less: Lease revenue | 22 | 4 | 22 | |
Net OREO expense | $ 77 | $ 143 | $ 113 | $ 380 |
Deposits - Classifications of D
Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits | ||
Noninterest bearing demand | $ 1,028,558 | $ 909,505 |
Savings | 442,805 | 399,057 |
NOW accounts | 531,231 | 486,612 |
Money market accounts | 331,144 | 316,465 |
Certificates of deposit of less than $100,000 | 183,444 | 200,107 |
Certificates of deposit of $100,000 up to $250,000 | 109,500 | 164,982 |
Certificates of deposit of $250,000 or more | 55,319 | 60,345 |
Total deposits | $ 2,682,001 | $ 2,537,073 |
Borrowings - Summary (Details)
Borrowings - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Borrowings | ||
Total borrowings | $ 219,170 | $ 160,521 |
Securities sold under repurchase agreements | ||
Borrowings | ||
Total borrowings | 68,566 | 66,980 |
Junior Subordinated Debt | ||
Borrowings | ||
Total borrowings | 25,773 | 25,773 |
Subordinated debentures | ||
Borrowings | ||
Total borrowings | 59,169 | |
Senior notes | ||
Borrowings | ||
Total borrowings | 44,428 | 44,375 |
Notes payable and other borrowings. | ||
Borrowings | ||
Total borrowings | $ 21,234 | $ 23,393 |
Borrowings - Additional informa
Borrowings - Additional information (Details) | Apr. 06, 2021USD ($) | Mar. 02, 2020USD ($) | Feb. 24, 2020USD ($) | Dec. 31, 2016 | Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($) | Sep. 30, 2020 | Apr. 20, 2018USD ($) |
Borrowings | ||||||||
Threshold percentage of stockholders' equity | 10.00% | |||||||
Borrowings at FHLBC as percentage of total assets | 35.00% | |||||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60.00% | |||||||
Bank owned FHLBC stock | $ 3,700,000 | $ 3,700,000 | ||||||
Proceeds from term note | $ 20,000,000 | $ 20,000,000 | ||||||
Cash distribution rate of trust preferred securities (as a percent) | 7.80% | |||||||
Senior notes | 44,428,000 | 44,375,000 | ||||||
Basis points added to reference rate (as a percent) | 175.00% | |||||||
Total borrowings | 219,170,000 | 160,521,000 | ||||||
GCFC/ABC Bank | ||||||||
Borrowings | ||||||||
FHLBC advance amount | $ 6,200,000 | |||||||
Debt assumed | $ 23,400,000 | |||||||
GCFC/ABC Bank | Maximum [Member] | ||||||||
Borrowings | ||||||||
Interest rate (as a percent) | 2.83% | |||||||
Three Months Secured Overnight Financing Rate | ||||||||
Borrowings | ||||||||
Basis points added to reference rate (as a percent) | 273.00% | |||||||
Securities sold under repurchase agreements | ||||||||
Borrowings | ||||||||
Carrying amount of securities secured | $ 68,600,000 | 67,000,000 | ||||||
Fair value of the pledged collateral | $ 114,800,000 | 94,400,000 | ||||||
Number of customers having secured balances exceeding specified percentage of stockholders equity | item | 0 | |||||||
Total borrowings | $ 68,566,000 | 66,980,000 | ||||||
Federal Home Loan Bank Advances [Member] | ||||||||
Borrowings | ||||||||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60.00% | |||||||
FHLBC advance amount | $ 0 | 0 | ||||||
Bank owned FHLBC stock | 3,700,000 | |||||||
Principal balance of loans collateralized | 580,000,000 | |||||||
Combined collateral value | 420,900,000 | |||||||
Amount available for additional borrowings | 288,500,000 | |||||||
Subordinated debentures | ||||||||
Borrowings | ||||||||
Total borrowings | 59,169,000 | |||||||
Notes payable and other borrowings. | ||||||||
Borrowings | ||||||||
Total borrowings | 21,234,000 | 23,393,000 | ||||||
Junior Subordinated Debt | ||||||||
Borrowings | ||||||||
Total borrowings | 25,773,000 | 25,773,000 | ||||||
Senior notes | ||||||||
Borrowings | ||||||||
Interest rate (as a percent) | 5.75% | |||||||
Senior notes | 44,400,000 | 44,400,000 | ||||||
Debt Instrument, Term | 10 years | |||||||
Interest rate term | 5 years | |||||||
Debt issuance costs | $ 572,000 | 625,000 | ||||||
Amortization period for deferred financing costs | 10 years | |||||||
Total borrowings | $ 44,428,000 | $ 44,375,000 | ||||||
Senior notes | Debt Instrument, Variable Rate Base LIBOR [Member] | ||||||||
Borrowings | ||||||||
Basis points added to reference rate (as a percent) | 385.00% | |||||||
Term note | ||||||||
Borrowings | ||||||||
Proceeds from term note | $ 20,000,000 | $ 15,000,000 | ||||||
Debt term | 3 years | |||||||
Subordinated Notes Due 2031 | ||||||||
Borrowings | ||||||||
Interest rate (as a percent) | 3.50% | |||||||
Face amount | $ 60,000,000 |
Junior Subordinated Debentures
Junior Subordinated Debentures - Issuance (Details) - USD ($) | Mar. 02, 2020 | Feb. 24, 2020 | Apr. 30, 2007 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2020 |
Junior subordinated debentures | |||||||||
Cash distribution rate of trust preferred securities (as a percent) | 7.80% | ||||||||
Junior subordinated debentures | $ 25,773,000 | $ 25,773,000 | $ 25,773,000 | ||||||
Cash disbursed for redemption | $ 33,000,000 | ||||||||
Redemption price per share | $ 10.13 | ||||||||
Proceeds from term note | $ 20,000,000 | $ 20,000,000 | |||||||
Unamortized debt issuance costs | $ 635,000 | ||||||||
Old Second Capital Trust II [Member] | |||||||||
Junior subordinated debentures | |||||||||
Proceeds from sale of cumulative trust preferred securities | $ 25,000,000 | ||||||||
Maturity Period | 30 years | ||||||||
Cash distribution fixed rate of trust preferred securities (as a percent) | 6.77% | ||||||||
Basis points added to cash distribution floating rate base (as a percent) | 1.50% | ||||||||
Cash distribution, floating rate base | three-month LIBOR | ||||||||
Amortization period | 30 years | ||||||||
Old Second Capital Trust II [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Junior subordinated debentures | |||||||||
Cash distribution rate of trust preferred securities (as a percent) | 4.41% | 4.42% | |||||||
Term note | |||||||||
Junior subordinated debentures | |||||||||
Proceeds from term note | $ 20,000,000 | $ 15,000,000 | |||||||
Junior Subordinated Debt | |||||||||
Junior subordinated debentures | |||||||||
Junior Subordinated Debentures issuance cost | $ 1,000 | 1,000 | $ 1,000 | ||||||
Junior Subordinated Debt | Old Second Capital Trust I | |||||||||
Junior subordinated debentures | |||||||||
Cash distribution rate of trust preferred securities (as a percent) | 7.80% | ||||||||
Junior subordinated debentures | $ 32,600,000 | ||||||||
Amortization period | 30 years | ||||||||
Junior Subordinated Debt | Old Second Capital Trust II [Member] | |||||||||
Junior subordinated debentures | |||||||||
Junior subordinated debentures | $ 25,800,000 | $ 25,800,000 | |||||||
7.8% subordinated debentures | |||||||||
Junior subordinated debentures | |||||||||
Interest rate (as a percent) | 7.80% |
Equity Compensation Plans (Deta
Equity Compensation Plans (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | May 31, 2019 | |
Equity Compensation Plans | ||||
Total compensation cost | $ 644,000 | $ 1,300 | ||
Stock based compensation | $ 611 | $ 1,314 | ||
Vesting Percentage , Fully Vest , Performance measure | 50.00% | |||
Minimum [Member] | ||||
Equity Compensation Plans | ||||
Vesting Percentage , Fully Vest , Performance measure | 50.00% | |||
Maximum [Member] | ||||
Equity Compensation Plans | ||||
Vesting Percentage , Pro rata , Performance measure | 50.00% | |||
2019 Plan | ||||
Equity Compensation Plans | ||||
Number of shares authorized | 1,800,000 | 600,000 | ||
Increase in number of shares authorized | 1,200,000 | |||
Number of shares available for issuance | 1,420,020 | |||
Restricted Stock and Restricted Stock Units [Member] | ||||
Equity Compensation Plans | ||||
Vesting period | 3 years |
Equity Compensation Plans - Res
Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in unvested awards | ||
Nonvested at the beginning of the period (in shares) | 532,609 | |
Granted (in shares) | 222,964 | 137,944 |
Vested (in shares) | (191,653) | |
Forfeited (in shares) | (42,111) | |
Nonvested at the end of the period (in shares) | 521,809 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 13.15 | |
Granted (in dollars per share) | 11.38 | |
Vested (in dollars per share) | 13.95 | |
Forfeited (in dollars per share) | 14.15 | |
Nonvested at the end of the period (in dollars per share) | $ 12.01 | |
Additional information | ||
Total unrecognized compensation cost of restricted awards | $ 3.5 | |
Expected weighted-average period for recognition of unrecognized compensation | 2 years 29 days |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic earnings per share: | ||||
Weighted-average common shares outstanding | 28,849,015 | 29,637,567 | 29,036,354 | 29,783,665 |
Net income | $ 8,820 | $ 9,238 | $ 20,699 | $ 9,513 |
Basic earnings per share | $ 0.30 | $ 0.31 | $ 0.71 | $ 0.32 |
Diluted earnings per share: | ||||
Weighted-average common shares outstanding | 28,849,015 | 29,637,567 | 29,036,354 | 29,783,665 |
Diluted average common shares outstanding | 29,367,472 | 30,194,007 | 29,574,962 | 30,342,306 |
Net earnings available to common stockholders | $ 8,820 | $ 9,238 | $ 20,699 | $ 9,513 |
Diluted earnings per share | $ 0.30 | $ 0.31 | $ 0.70 | $ 0.31 |
Restricted Stock and Restricted Stock Units [Member] | ||||
Diluted earnings per share: | ||||
Dilutive effect of share-based payment awards (in shares) | 518,457 | 556,440 | 538,608 | 558,641 |
Regulatory & Capital Matters (D
Regulatory & Capital Matters (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Dec. 31, 2020 | Jan. 01, 2020USD ($) | |
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 9.68 | 10.21 | |
Risk-based capital ratio (as a percent) | 17.60 | 14.26 | |
Phase out of impact of allowance for credit loss | $ 3.8 | ||
Deferment of impact on retained earnings | $ 4.5 | ||
Subsidiaries [Member] | |||
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 10.63 | 10.74 | |
Risk-based capital ratio (as a percent) | 16.33 | 15 | |
Tier One leverage ratio, basis point decrease (as a percent) | 0.11% | ||
Risk-based capital ratio, basis point increase (as a percent) | 1.33% | ||
Minimum [Member] | Subsidiaries [Member] | |||
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 8 | ||
Risk-based capital ratio (as a percent) | 12 | ||
Tier 1 capital leverage ratio, board-designated threshold | 8.00% | ||
Total Capital Ratio, board-designated threshold (as a percent) | 12.00% |
Regulatory & Capital Matters -
Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 285,446 | $ 277,199 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 157,085 | $ 162,512 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 12.72% | 11.94% |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 7.00% | 7.00% |
Total capital to risk weighted assets, Amount | ||
Actual at period end | $ 395,111 | $ 331,178 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 235,720 | $ 243,855 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 17.60 | 14.26 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 10.500 | 10.500 |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | $ 310,446 | $ 302,199 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 190,802 | $ 197,440 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 13.83 | 13.01 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 8.500 | 8.500 |
Tier 1 capital to average assets, Amount | ||
Actual | $ 310,446 | $ 302,199 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | $ 128,283 | $ 118,393 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 9.68 | 10.21 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 4 | 4 |
Subsidiaries [Member] | ||
Common equity tier 1 capital to risk weighted assets | ||
Actual | $ 341,244 | $ 318,466 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 156,842 | 162,128 |
Minimum Required to Be Well Capitalized | $ 145,639 | $ 150,548 |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 15.23% | 13.75% |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 7.00% | 7.00% |
Minimum Required to Be Well Capitalized (as a percent) | 6.50% | 6.50% |
Total capital to risk weighted assets, Amount | ||
Actual at period end | $ 365,910 | $ 347,408 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 235,276 | 243,186 |
Minimum Required to Be Well Capitalized | $ 224,072 | $ 231,605 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 16.33 | 15 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 10.500 | 10.500 |
Minimum Required to Be Well Capitalized (as a percent) | 10 | 10 |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | $ 341,244 | $ 318,466 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 190,451 | 196,870 |
Minimum Required to Be Well Capitalized | $ 179,248 | $ 185,289 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 15.23 | 13.75 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 8.500 | 8.500 |
Minimum Required to Be Well Capitalized (as a percent) | 8 | 8 |
Tier 1 capital to average assets, Amount | ||
Actual | $ 341,244 | $ 318,466 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable | 128,408 | 118,609 |
Minimum Required to Be Well Capitalized | $ 160,510 | $ 148,262 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 10.63 | 10.74 |
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent) | 4 | 4 |
Minimum Required to Be Well Capitalized (as a percent) | 5 | 5 |
Regulatory & Capital Matters _2
Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2019 | |
Dividend Restrictions and Deferrals | |||
Number of previous years retained profit considered for dividend payment | 2 years | ||
Minimum capital requirements, minimum percentage required | 2.50% | ||
Number of shares authorized | 9,519 | 9,519 | 1,494,826 |
Number of share repurchased | 310,900 | 1,485,307 | |
Repurchase price | $ 13.55 | $ 13.55 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Assets: | |||
Securities available-for-sale | $ 579,948 | $ 496,178 | |
Mortgage servicing rights | 5,267 | 4,224 | |
US Treasury Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 4,086 | 4,117 | |
Mortgage Backed Securities, Issued by US Government Agencies [Member] | |||
Assets: | |||
Securities available-for-sale | 18,939 | ||
US States and Political Subdivisions Debt Securities [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Purchases | 220 | $ 12,800 | |
Assets: | |||
Securities available-for-sale | 242,748 | 249,259 | |
Corporate Bond Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 31,715 | ||
Collateralized Mortgage Obligations [Member] | |||
Assets: | |||
Securities available-for-sale | 101,912 | 56,585 | |
Asset-backed Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 145,356 | 131,818 | |
Collateralized loan obligations | |||
Assets: | |||
Securities available-for-sale | 29,154 | 30,533 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Securities available-for-sale | 4,086 | 4,117 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Securities available-for-sale | 570,871 | 487,742 | |
Loans held-for-sale | 6,814 | 12,611 | |
Other assets | 6,110 | 9,388 | |
Liabilities: | |||
Other liabilities | 8,804 | 13,071 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Securities available-for-sale | 4,991 | 4,319 | |
Mortgage servicing rights | 5,267 | 4,224 | |
Fair Value, Inputs, Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 5,000 | $ 4,700 | |
Recurring | |||
Assets: | |||
Loans held-for-sale | 6,814 | 12,611 | |
Mortgage servicing rights | 5,267 | 4,224 | |
Total financial assets | 598,799 | 523,241 | |
Liabilities: | |||
Total | 8,841 | 13,159 | |
Recurring | Interest Rate Swap [Member] | |||
Assets: | |||
Other assets | 6,110 | 9,388 | |
Liabilities: | |||
Other liabilities | 8,841 | 13,159 | |
Recurring | Forward Contracts [Member] | |||
Assets: | |||
Other assets | 660 | 840 | |
Recurring | US Treasury Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 4,086 | 4,117 | |
Recurring | US Government Corporations and Agencies Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 6,038 | 6,657 | |
Recurring | Mortgage Backed Securities, Issued by US Government Agencies [Member] | |||
Assets: | |||
Securities available-for-sale | 18,939 | 17,209 | |
Recurring | US States and Political Subdivisions Debt Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 242,748 | 249,259 | |
Recurring | Corporate Bond Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 31,715 | ||
Recurring | Collateralized Mortgage Obligations [Member] | |||
Assets: | |||
Securities available-for-sale | 101,912 | 56,585 | |
Recurring | Asset-backed Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 145,356 | 131,818 | |
Recurring | Collateralized loan obligations | |||
Assets: | |||
Securities available-for-sale | 29,154 | 30,533 | |
Recurring | Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Total financial assets | 4,086 | 4,117 | |
Recurring | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 4,086 | 4,117 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Loans held-for-sale | 6,814 | 12,611 | |
Total financial assets | 584,455 | 510,581 | |
Liabilities: | |||
Total | 8,841 | 13,159 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Assets: | |||
Other assets | 6,110 | 9,388 | |
Liabilities: | |||
Other liabilities | 8,841 | 13,159 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | |||
Assets: | |||
Other assets | 660 | 840 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 6,038 | 6,657 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Issued by US Government Agencies [Member] | |||
Assets: | |||
Securities available-for-sale | 18,939 | 17,209 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 237,757 | 244,940 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 31,715 | ||
Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member] | |||
Assets: | |||
Securities available-for-sale | 101,912 | 56,585 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | |||
Assets: | |||
Securities available-for-sale | 145,356 | 131,818 | |
Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations | |||
Assets: | |||
Securities available-for-sale | 29,154 | 30,533 | |
Recurring | Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Mortgage servicing rights | 5,267 | 4,224 | |
Total financial assets | 10,258 | 8,543 | |
Recurring | Fair Value, Inputs, Level 3 [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Assets: | |||
Securities available-for-sale | $ 4,991 | $ 4,319 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Changes in Level 3 | ||
Beginning balance | $ 4,319 | $ 5,419 |
Total gains or losses | ||
Included in earnings (or changes in net assets) | (12) | |
Included in other comprehensive income | 735 | (363) |
Purchases, issuances, sales, and settlements | ||
Purchases | 220 | 12,800 |
Settlements | (277) | (13,166) |
Ending balance | 4,991 | 4,678 |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | (6) | |
Mortgage Servicing Rights [Member] | ||
Changes in Level 3 | ||
Beginning balance | 4,224 | 5,935 |
Total gains or losses | ||
Included in earnings (or changes in net assets) | (2,304) | |
Purchases, issuances, sales, and settlements | ||
Issuances | 963 | 1,123 |
Settlements | (654) | (275) |
Ending balance | 5,267 | $ 4,479 |
Changes in Level 3 (liabilities) | ||
Included in earnings (or changes in net assets) | $ 734 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) |
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | $ 5,267 | $ 4,224 | |
Securities available-for-sale, at fair value | 579,948 | 496,178 | |
Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | 5,267 | 4,224 | |
Securities available-for-sale, at fair value | 4,991 | 4,319 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 242,748 | 249,259 | |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 5,000 | $ 4,700 | |
Collateralized Mortgage Obligations [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 101,912 | 56,585 | |
Recurring | |||
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | 5,267 | 4,224 | |
Recurring | Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Mortgage servicing rights, fair value | 5,267 | 4,224 | |
Recurring | US States and Political Subdivisions Debt Securities [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 242,748 | 249,259 | |
Recurring | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | 4,991 | 4,319 | |
Recurring | Collateralized Mortgage Obligations [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Securities available-for-sale, at fair value | $ 101,912 | $ 56,585 | |
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 11 | 11 | |
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 15 | 15 | |
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 11 | 11 | |
Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 5.1 | 5.5 | |
Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 51.8 | 59.1 | |
Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | |||
Quantitative information about Level 3 fair value measurements | |||
Servicing Asset, Measurement Input | 15.8 | 19.5 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets and liabilities measured at fair value | ||||||
Carrying value of other real estate owned | $ 1,877 | $ 2,474 | $ 2,163 | $ 5,082 | $ 5,049 | $ 5,004 |
OREO Valuation allowance | 1,296 | 1,643 | $ 1,649 | $ 6,464 | $ 6,404 | $ 6,712 |
Impaired Loans [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Valuation allowance | 12,300 | |||||
Impaired Loans [Member] | Reported Value Measurement [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Increase (decrease) of specific allocations within the provision for loan losses | 1,400 | |||||
Fair Value, Measurements, Nonrecurring [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 14,340 | 12,149 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 12,463 | 9,675 | ||||
Valuation allowance | 4,500 | 2,600 | ||||
Increase (decrease) of specific allocations within the provision for loan losses | 1,900 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Reported Value Measurement [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 17,000 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 1,877 | 2,474 | ||||
Carrying value of other real estate owned | 1,900 | 2,500 | ||||
Outstanding balance | 3,200 | 4,100 | ||||
OREO Valuation allowance | 1,300 | 1,600 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 14,340 | 12,149 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | 12,463 | 9,675 | ||||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ||||||
Assets and liabilities measured at fair value | ||||||
Total | $ 1,877 | $ 2,474 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and due from banks | $ 29,829 | $ 24,306 |
Interest earning deposits with financial institutions | 562,931 | 305,597 |
Securities available-for-sale | 579,948 | 496,178 |
FHLBC and FRBC Stock | 9,917 | 9,917 |
Bank-owned life insurance | 63,859 | 63,102 |
Mortgage servicing rights | 5,267 | 4,224 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,028,558 | 909,505 |
Junior subordinated debentures | 25,773 | 25,773 |
Senior notes | 44,428 | 44,375 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Cash and due from banks | 29,829 | 24,306 |
Interest earning deposits with financial institutions | 562,931 | 305,597 |
Securities available-for-sale | 579,948 | 496,178 |
FHLBC and FRBC Stock | 9,917 | 9,917 |
Loans held for sale | 6,814 | 12,611 |
Net loans | 1,874,727 | 2,000,996 |
Mortgage servicing rights | 5,267 | 4,224 |
Interest rate swap agreements | 6,110 | 9,388 |
Interest rate lock commitments and forward contracts | 660 | 840 |
Interest receivable on securities and loans | 9,293 | 9,698 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,028,558 | 909,505 |
Interest bearing deposits | 1,653,443 | 1,627,568 |
Securities sold under repurchase agreements | 68,566 | 66,980 |
Junior subordinated debentures | 25,773 | 25,773 |
Subordinated debentures | 59,169 | |
Senior notes | 44,428 | 44,375 |
Note payable and other borrowings | 21,234 | 23,393 |
Interest rate swap agreements | 8,804 | 13,071 |
Interest payable on deposits and borrowings | 799 | 418 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and due from banks | 29,829 | 24,306 |
Interest earning deposits with financial institutions | 562,931 | 305,597 |
Securities available-for-sale | 579,948 | 496,178 |
FHLBC and FRBC Stock | 9,917 | 9,917 |
Loans held for sale | 6,814 | 12,611 |
Net loans | 1,871,528 | 2,009,773 |
Mortgage servicing rights | 5,267 | 4,224 |
Interest rate swap agreements | 6,110 | 9,388 |
Interest rate lock commitments and forward contracts | 660 | 840 |
Interest receivable on securities and loans | 9,293 | 9,698 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,028,558 | 909,505 |
Interest bearing deposits | 1,655,271 | 1,630,109 |
Securities sold under repurchase agreements | 68,566 | 66,980 |
Junior subordinated debentures | 19,557 | 14,658 |
Subordinated debentures | 59,423 | |
Senior notes | 45,430 | 44,600 |
Note payable and other borrowings | 21,723 | 24,043 |
Interest rate swap agreements | 8,804 | 13,071 |
Interest payable on deposits and borrowings | 799 | 418 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and due from banks | 29,829 | 24,306 |
Interest earning deposits with financial institutions | 562,931 | 305,597 |
Securities available-for-sale | 4,086 | 4,117 |
Financial liabilities: | ||
Noninterest bearing deposits | 1,028,558 | 909,505 |
Senior notes | 45,430 | 44,600 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Securities available-for-sale | 570,871 | 487,742 |
FHLBC and FRBC Stock | 9,917 | 9,917 |
Loans held for sale | 6,814 | 12,611 |
Interest rate swap agreements | 6,110 | 9,388 |
Interest rate lock commitments and forward contracts | 660 | 840 |
Interest receivable on securities and loans | 9,293 | 9,698 |
Financial liabilities: | ||
Interest bearing deposits | 1,655,271 | 1,630,109 |
Securities sold under repurchase agreements | 68,566 | 66,980 |
Junior subordinated debentures | 19,557 | 14,658 |
Subordinated debentures | 59,423 | |
Note payable and other borrowings | 21,723 | 24,043 |
Interest rate swap agreements | 8,804 | 13,071 |
Interest payable on deposits and borrowings | 799 | 418 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Securities available-for-sale | 4,991 | 4,319 |
Net loans | 1,871,528 | 2,009,773 |
Mortgage servicing rights | $ 5,267 | $ 4,224 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Fair Value of Derivatives (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($) | Jun. 30, 2021USD ($)item | Dec. 31, 2020USD ($)item | Dec. 31, 2018USD ($) | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Loan pool hedge | $ 50,000,000 | |||
Term of interest rate risk cash flow hedge | 5 years | |||
Amount of ineffectiveness, included in net income | $ 0 | |||
Weighted average maturity | 4 years 8 months 12 days | |||
Interest Rate Products | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Notional Amount | $ 25,800,000 | |||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative assets designated as hedging instruments, fair value | 1,742,000 | |||
Derivative liabilities designated as hedging instruments, fair value | $ 4,436,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Products | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative assets designated as hedging instruments, classified in other assets | $ 2,697,000 | |||
Derivative liabilities designated as hedging instruments, fair value | $ 6,380,000 | |||
Designated as Hedging Instrument [Member] | Interest Rate Products | OSBC Affiliates | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative, number of transactions | item | 2 | 2 | ||
Notional Amount | $ 75,774,000 | $ 75,774,000 | ||
Derivative assets designated as hedging instruments, classified in other assets | 1,742,000 | |||
Derivative liabilities designated as hedging instruments, classified in other liabilities | 4,436,000 | 6,380,000 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | OSBC Affiliates | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative assets designated as hedging instruments, classified in other assets | $ 2,697,000 | |||
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative assets not designated as hedging instruments, fair value | 5,028,000 | |||
Total Derivative liabilities not designated as hedging instruments, fair value | $ 4,405,000 | |||
Not Designated as Hedging Instrument [Member] | Interest Rate Products | Commercial Loan Customers | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative, number of transactions | item | 27 | 28 | ||
Notional Amount | $ 175,532,000 | $ 189,126,000 | ||
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | 4,368,000 | 6,691,000 | ||
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities | $ 4,368,000 | 6,691,000 | ||
Weighted average maturity | 4 years 3 months 18 days | |||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Cash collateral pledged with financial institutions, dollars | $ 17,200,000 | $ 1,000,000 | 1,400,000 | |
Investment securities pledged with financial institutions, dollars | $ 0 | $ 0 | ||
Number of correspondent financial institutions where investment securities are pledged | item | 1 | 1 | ||
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative, number of transactions | item | 148 | 4 | ||
Notional Amount | $ 52,285,000 | $ 26,523,000 | ||
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | $ 660,000 | |||
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities | $ 88,000 | |||
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts | Commercial Loan Customers | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative, number of transactions | item | 205 | |||
Notional Amount | $ 84,472,000 | |||
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets | 840,000 | |||
Not Designated as Hedging Instrument [Member] | Other Contracts | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Derivative, number of transactions | item | 3 | |||
Notional Amount | $ 18,735,000 | |||
Derivative assets designated as hedging instruments, classified in other assets | 7,531,000 | |||
Derivative liabilities designated as hedging instruments, classified in other liabilities | $ 6,779,000 | |||
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities | 37,000 | |||
Interest Income [Member] | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Amount to be reclassified as a reduction to interest expense during the next twelve months | 186,000 | |||
Interest Expense [Member] | ||||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||||
Amount to be reclassified as a reduction to interest expense during the next twelve months | $ 172,000 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Effect of Fair Value (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||
Amount of Loss Recognized in OCI on Derivative | $ 1,900,000 | $ 3,800,000 |
Interest Income (Expense) | ||
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | $ 26,000 | $ (90,000) |
Derivatives, Hedging Activiti_5
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Company's contractual commitments due to letters of credit | ||
Total letters of credit | $ 15,584 | $ 14,320 |
Allowance for Credit Loss on Unfunded Commitments | 2,300 | |
Decrease In Allowance for Credit Loss on unfunded Commitments | (1,200) | |
Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 848 | 685 |
Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 14,736 | 13,635 |
Commitments to Extend Credit to Borrowers [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 15,517 | 14,253 |
Commitments to Extend Credit to Borrowers [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 848 | 685 |
Commitments to Extend Credit to Borrowers [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 14,669 | 13,568 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 8,566 | 9,380 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 329 | 329 |
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 8,237 | 9,051 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 6,951 | 4,873 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 519 | 356 |
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 6,432 | 4,517 |
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 67 | 67 |
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 67 | 67 |
Letter of Credit [Member] | Unused lines of Credit [Member] | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | 449,008 | 405,181 |
Letter of Credit [Member] | Unused lines of Credit [Member] | Fixed [Member] | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | 130,851 | 88,883 |
Letter of Credit [Member] | Unused lines of Credit [Member] | Variable [Member] | ||
Company's contractual commitments due to letters of credit | ||
Loan commitments | $ 318,157 | $ 316,298 |