Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-12431 | |
Entity Registrant Name | Unity Bancorp, Inc. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-3282551 | |
Entity Address, Address Line One | 64 Old Highway 22 | |
Entity Address, City or Town | Clinton | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08809 | |
City Area Code | 800 | |
Local Phone Number | 618-2265 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | UNTY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,135,366 | |
Entity Central Index Key | 0000920427 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 22,552 | $ 19,699 |
Interest-bearing deposits | 128,682 | 95,094 |
Cash and cash equivalents | 151,234 | 114,793 |
Securities: | ||
Debt securities available for sale | 92,966 | |
Debt securities available for sale | 95,393 | |
Debt securities held to maturity | 35,890 | |
Debt securities held to maturity | 35,760 | |
Equity securities with readily determinable fair values | 8,205 | 9,793 |
Total securities | 137,061 | 140,946 |
Loans: | ||
Total loans | 2,167,367 | |
Allowance for credit losses | (25,988) | |
Net loans | 2,141,379 | |
Loans: | ||
Total loans | 2,106,559 | |
Allowance for credit losses | (25,196) | |
Net loans | 2,081,363 | |
Premises and equipment, net | 19,923 | 20,002 |
Bank owned life insurance ("BOLI") | 26,940 | 26,776 |
Deferred tax assets, net | 12,891 | 12,345 |
Federal Home Loan Bank ("FHLB") stock | 21,430 | 19,064 |
Accrued interest receivable | 14,858 | 13,403 |
Goodwill | 1,516 | 1,516 |
Prepaid expenses and other assets | 25,069 | 14,740 |
Total assets | 2,552,301 | 2,444,948 |
Deposits: | ||
Noninterest-bearing demand | 439,220 | 494,184 |
Interest-bearing demand | 300,710 | 276,218 |
Savings | 546,116 | 591,826 |
Brokered time deposits | 192,043 | 189,644 |
Time deposits | 371,439 | 235,656 |
Total deposits | 1,849,528 | 1,787,528 |
Borrowed funds | 423,000 | 383,000 |
Subordinated debentures | 10,310 | 10,310 |
Accrued interest payable | 715 | 691 |
Accrued expenses and other liabilities | 24,675 | 24,192 |
Total liabilities | 2,308,228 | 2,205,721 |
Shareholders' equity: | ||
Common stock | 98,910 | 97,204 |
Retained earnings | 173,823 | 156,958 |
Treasury stock | (25,037) | (11,675) |
Accumulated other comprehensive loss | (3,623) | (3,260) |
Total shareholders' equity | 244,073 | 239,227 |
Total liabilities and shareholders' equity | 2,552,301 | 2,444,948 |
SBA loans held for sale | ||
Loans: | ||
Total loans | 20,074 | |
Loans: | ||
Total loans | 27,928 | |
SBA loans held for investment | ||
Loans: | ||
Total loans | 39,878 | |
Allowance for credit losses | (1,556) | |
Loans: | ||
Total loans | 38,468 | |
Allowance for credit losses | (875) | |
SBA PPP loans | ||
Loans: | ||
Total loans | 2,555 | |
Loans: | ||
Total loans | 5,908 | |
Commercial loans | ||
Loans: | ||
Total loans | 1,256,032 | |
Allowance for credit losses | (15,516) | |
Loans: | ||
Total loans | 1,187,543 | |
Allowance for credit losses | (15,254) | |
Residential mortgage loans | ||
Loans: | ||
Total loans | 633,414 | |
Allowance for credit losses | (6,437) | |
Loans: | ||
Total loans | 605,091 | |
Allowance for credit losses | (5,450) | |
Consumer loans | ||
Loans: | ||
Total loans | 75,990 | |
Allowance for credit losses | (845) | |
Loans: | ||
Total loans | 78,164 | |
Allowance for credit losses | (990) | |
Residential construction loans | ||
Loans: | ||
Total loans | 139,424 | |
Allowance for credit losses | $ (1,634) | |
Loans: | ||
Total loans | 163,457 | |
Allowance for credit losses | $ (2,627) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position | ||
Common stock, shares issued (in shares) | 11,387 | 11,289 |
Common stock, shares outstanding (in shares) | 10,119 | 10,584 |
Treasury shares | 1,268 | 705 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
INTEREST INCOME | ||||
Interest-bearing deposits | $ 441 | $ 152 | $ 775 | $ 248 |
FHLB stock | 343 | 50 | 674 | 83 |
Securities: | ||||
Taxable | 1,798 | 1,115 | 3,537 | 1,768 |
Tax-exempt | 19 | 10 | 38 | 16 |
Total securities | 1,817 | 1,125 | 3,575 | 1,784 |
Loans: | ||||
SBA loans | 1,403 | 926 | 2,807 | 1,849 |
SBA PPP loans | 27 | 492 | 104 | 1,269 |
Commercial loans | 18,621 | 12,414 | 36,022 | 23,910 |
Residential mortgage loans | 8,532 | 4,982 | 16,641 | 9,372 |
Consumer loans | 1,471 | 919 | 2,825 | 1,840 |
Residential construction loans | 2,737 | 2,011 | 5,323 | 3,835 |
Total loans | 32,791 | 21,744 | 63,722 | 42,075 |
Total interest income | 35,392 | 23,071 | 68,746 | 44,190 |
INTEREST EXPENSE | ||||
Interest-bearing demand deposits | 1,349 | 198 | 2,331 | 362 |
Savings deposits | 2,501 | 412 | 4,454 | 757 |
Time deposits | 3,895 | 419 | 6,604 | 899 |
Borrowed funds and subordinated debentures | 4,125 | 285 | 7,924 | 511 |
Total interest expense | 11,870 | 1,314 | 21,313 | 2,529 |
Net interest income | 23,522 | 21,757 | 47,433 | 41,661 |
Provision for credit losses | 777 | 1,188 | 885 | 1,009 |
Net interest income after provision for credit losses | 22,745 | 20,569 | 46,548 | 40,652 |
NONINTEREST INCOME | ||||
Gain on sale of SBA loans held for sale, net | 586 | 896 | 852 | |
Gain on sale of mortgage loans, net | 463 | 431 | 707 | 952 |
BOLI income | 84 | 161 | 164 | 324 |
Net security losses | (164) | (498) | (487) | (1,055) |
Other income | 427 | 1,686 | 796 | 2,088 |
Total noninterest income | 2,115 | 2,749 | 3,532 | 4,989 |
NONINTEREST EXPENSE | ||||
Compensation and benefits | 7,271 | 6,811 | 14,361 | 13,319 |
Processing and communications | 663 | 706 | 1,467 | 1,458 |
Occupancy | 779 | 727 | 1,549 | 1,502 |
Furniture and equipment | 690 | 618 | 1,379 | 1,194 |
Professional services | 296 | 392 | 723 | 565 |
Advertising | 443 | 340 | 703 | 130 |
Other loan expenses (income) | 45 | (5) | 173 | 839 |
Deposit insurance | 617 | 250 | 965 | 519 |
Director fees | 203 | 225 | 420 | 459 |
Loan collection expenses | 85 | 36 | 132 | 93 |
Other expenses | 659 | 610 | 1,307 | 1,044 |
Total noninterest expense | 11,751 | 10,710 | 23,179 | 21,122 |
Income before provision for income taxes | 13,109 | 12,608 | 26,901 | 24,519 |
Provision for income taxes | 3,409 | 3,157 | 6,914 | 5,960 |
Net income | $ 9,700 | $ 9,451 | $ 19,987 | $ 18,559 |
Net income per common share - Basic | $ 0.96 | $ 0.90 | $ 1.94 | $ 1.77 |
Net income per common share - Diluted | $ 0.95 | $ 0.88 | $ 1.91 | $ 1.74 |
Weighted average common shares outstanding - Basic | 10,103 | 10,504 | 10,319 | 10,475 |
Weighted average common shares outstanding - Diluted | 10,203 | 10,706 | 10,444 | 10,685 |
Branch fee income | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 228 | $ 281 | $ 463 | $ 556 |
Service and loan fee income | ||||
NONINTEREST INCOME | ||||
Noninterest income | $ 491 | $ 688 | $ 993 | $ 1,272 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income | ||||
Net income, before tax amount | $ 13,109 | $ 12,608 | $ 26,901 | $ 24,519 |
Income tax expense (benefit) | 3,409 | 3,157 | 6,914 | 5,960 |
Net income | 9,700 | 9,451 | 19,987 | 18,559 |
Debt securities available for sale: | ||||
Unrealized holding losses on securities arising during the period, before tax | (683) | (4,010) | (324) | (5,637) |
Unrealized holding losses on securities arising during the period, tax | (166) | (956) | (74) | (1,331) |
Unrealized holding losses on securities arising during the period, net | (517) | (3,054) | (250) | (4,306) |
Less: reclassification adjustment for losses on securities included in net income, before tax | (498) | (1,055) | ||
Less: reclassification adjustment for losses on securities included in net income, tax | (104) | (222) | ||
Less: reclassification adjustment for losses on securities included in net income, net of tax | (394) | (833) | ||
Total unrealized losses on securities available for sale, before tax | (683) | (3,512) | (324) | (4,582) |
Total unrealized losses on securities available for sale, tax | (166) | (852) | (74) | (1,109) |
Total unrealized losses on securities available for sale, net of tax | (517) | (2,660) | (250) | (3,473) |
Net unrealized gains (losses) from cash flow hedges: | ||||
Unrealized holding gains (losses) on cash flow hedges arising during the period, before tax | 319 | (795) | (552) | 738 |
Unrealized holding gains (losses) on cash flow hedges arising during the period, tax | 90 | (225) | (140) | 209 |
Unrealized holding gains (losses) on cash flow hedges arising during the period, net of tax | 229 | (570) | (412) | 529 |
Less: reclassification adjustment for gains on cash flow hedges included in net income, before tax | 219 | 418 | ||
Less: reclassification adjustment for gains on cash flow hedges included in net income, tax | 63 | 119 | ||
Less: reclassification adjustment for gains on cash flow hedges included in net income, net of tax | 156 | 299 | ||
Total unrealized gains (losses) on cash flow hedges, before tax | 100 | (795) | (134) | 738 |
Total unrealized gains (losses) on cash flow hedges, tax | 27 | (225) | (21) | 209 |
Total unrealized gains (losses) on cash flow hedges, net of tax | 73 | (570) | (113) | 529 |
Total other comprehensive loss, before tax | (583) | (4,307) | (458) | (3,844) |
Total other comprehensive loss, tax | (139) | (1,077) | (95) | (900) |
Total other comprehensive loss, net of tax | (444) | (3,230) | (363) | (2,944) |
Total comprehensive income, before tax | 12,526 | 8,301 | 26,443 | 20,675 |
Total comprehensive income, tax | 3,270 | 2,080 | 6,819 | 5,060 |
Total comprehensive income, net of tax | $ 9,256 | $ 6,221 | $ 19,624 | $ 15,615 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common stock | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Retained earnings | Treasury stock | Accumulated other comprehensive income (loss) | Cumulative Effect, Period of Adoption, Adjustment | Total | |
Beginning Balance (in shares) at Dec. 31, 2021 | 10,391 | |||||||
Beginning balance at Dec. 31, 2021 | $ 94,003 | $ 322 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Dividends on common stock | $ 37 | |||||||
Common stock issued & related tax effects (in shares) | [1] | 102 | ||||||
Common stock issued & related tax effects | [1] | $ 813 | ||||||
Ending Balance (in shares) at Mar. 31, 2022 | 10,493 | |||||||
Ending balance at Mar. 31, 2022 | $ 94,853 | 608 | ||||||
Beginning Balance (in shares) at Dec. 31, 2021 | 10,391 | |||||||
Beginning balance at Dec. 31, 2021 | $ 94,003 | 322 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | $ 18,559 | |||||||
Other comprehensive income, net of tax | (2,944) | (2,944) | ||||||
Ending Balance (in shares) at Jun. 30, 2022 | 10,511 | |||||||
Ending balance at Jun. 30, 2022 | $ 95,650 | (2,622) | ||||||
Beginning Balance (in shares) at Mar. 31, 2022 | 10,493 | |||||||
Beginning balance at Mar. 31, 2022 | $ 94,853 | 608 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 9,451 | |||||||
Other comprehensive income, net of tax | (3,230) | (3,230) | ||||||
Dividends on common stock | $ 43 | |||||||
Common stock issued & related tax effects (in shares) | [1] | 18 | ||||||
Common stock issued & related tax effects | [1] | $ 754 | ||||||
Ending Balance (in shares) at Jun. 30, 2022 | 10,511 | |||||||
Ending balance at Jun. 30, 2022 | $ 95,650 | (2,622) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Effect of adopting Accounting Standards Update ("ASU") No. 2016-13 ("CECL") | $ (156,958) | |||||||
Beginning Balance (in shares) at Dec. 31, 2022 | 10,584 | 10,584 | ||||||
Beginning balance at Dec. 31, 2022 | $ 97,204 | $ 649 | $ 156,958 | $ (11,675) | (3,260) | $ 649 | $ 239,227 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 10,287 | 10,287 | ||||||
Other comprehensive income, net of tax | 81 | 81 | ||||||
Dividends on common stock (in shares) | 2 | |||||||
Dividends on common stock | $ 46 | (1,261) | (1,215) | |||||
Common stock issued & related tax effects (in shares) | [1] | 44 | ||||||
Common stock issued & related tax effects | [1] | $ 947 | 947 | |||||
Treasury stock purchased, at cost (in shares) | (338) | |||||||
Treasury stock purchased, at cost | (8,219) | (8,219) | ||||||
Ending Balance (in shares) at Mar. 31, 2023 | 10,292 | |||||||
Ending balance at Mar. 31, 2023 | $ 98,197 | 165,335 | (19,894) | (3,179) | $ 240,459 | |||
Beginning Balance (in shares) at Dec. 31, 2022 | 10,584 | 10,584 | ||||||
Beginning balance at Dec. 31, 2022 | $ 97,204 | $ 649 | 156,958 | (11,675) | (3,260) | $ 649 | $ 239,227 | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 19,987 | |||||||
Other comprehensive income, net of tax | (363) | $ (363) | ||||||
Ending Balance (in shares) at Jun. 30, 2023 | 10,119 | 10,119 | ||||||
Ending balance at Jun. 30, 2023 | $ 98,910 | 173,823 | (25,037) | (3,623) | $ 244,073 | |||
Beginning Balance (in shares) at Mar. 31, 2023 | 10,292 | |||||||
Beginning balance at Mar. 31, 2023 | $ 98,197 | 165,335 | (19,894) | (3,179) | 240,459 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 9,700 | 9,700 | ||||||
Other comprehensive income, net of tax | (444) | (444) | ||||||
Dividends on common stock (in shares) | 2 | |||||||
Dividends on common stock | $ 47 | (1,212) | (1,165) | |||||
Common stock issued & related tax effects (in shares) | [1] | 50 | ||||||
Common stock issued & related tax effects | [1] | $ 666 | 666 | |||||
Treasury stock purchased, at cost (in shares) | (225) | |||||||
Treasury stock purchased, at cost | (5,143) | $ (5,143) | ||||||
Ending Balance (in shares) at Jun. 30, 2023 | 10,119 | 10,119 | ||||||
Ending balance at Jun. 30, 2023 | $ 98,910 | $ 173,823 | $ (25,037) | $ (3,623) | $ 244,073 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Effect of adopting Accounting Standards Update ("ASU") No. 2016-13 ("CECL") | $ (173,823) | |||||||
[1] Includes the issuance of common stock under employee benefit plans, which includes nonqualified stock options and restricted stock expense related entries, employee option exercises and the tax benefit of options exercised. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity | ||||
Common stock, dividends, per share, cash paid (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.09 | $ 0.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
OPERATING ACTIVITIES: | ||
Net income | $ 19,987,000 | $ 18,559,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 885,000 | 1,009,000 |
Net amortization of purchase premiums and discounts on securities | (29,000) | 44,000 |
Depreciation and amortization | 659,000 | 1,412,000 |
PPP deferred fees and costs | (73,000) | (1,120,000) |
Deferred income tax benefit | (301,000) | (1,118,000) |
Net realized security gains | (222,000) | |
Stock compensation expense | 840,000 | 833,000 |
Gain on sale of mortgage loans, net | (707,000) | (952,000) |
Gain on sale of SBA loans held for sale, net | (896,000) | (852,000) |
BOLI income | (164,000) | (324,000) |
Net change in other assets and liabilities | (11,309,000) | (5,651,000) |
Net cash provided by operating activities | 8,670,000 | 11,840,000 |
INVESTING ACTIVITIES | ||
Purchases of securities held to maturity | (26,748,000) | |
Purchases of equity securities | (168,000) | (1,539,000) |
Purchases of securities available for sale | (44,904,000) | |
Purchases of FHLB stock, at cost | (2,365,000) | (10,407,000) |
Maturities and principal payments on securities held to maturity | 101,000 | 4,244,000 |
Maturities, calls and principal payments on securities available for sale | 2,103,000 | 2,752,000 |
Proceeds from sales of equity securities | 1,269,000 | |
Proceeds from redemption of FHLB stock | 4,734,000 | |
Net increase (decrease) in SBA PPP loans | 3,425,000 | 33,356,000 |
Net increase in loans | (63,046,000) | (172,173,000) |
Proceeds from BOLI | 468,000 | |
Purchases of premises and equipment | (580,000) | (97,000) |
Net cash used in investing activities | (59,261,000) | (210,314,000) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 62,000,000 | (60,913,000) |
Net changes from borrowings | 125,000,000 | |
Proceeds from borrowings | 40,000,000 | |
Proceeds from exercise of stock options | 998,885 | 953,537 |
Fair market value of shares withheld to cover employee tax liability | (226,000) | (220,000) |
Dividends on common stock | (2,381,000) | (2,122,000) |
Purchase of treasury stock | (13,360,000) | |
Net cash provided by financing activities | 87,032,000 | 62,699,000 |
Increase (decrease) in cash and cash equivalents | 36,441,000 | (135,775,000) |
Cash and cash equivalents, beginning of year | 114,793,000 | 244,818,000 |
Cash and cash equivalents, end of period | 151,234,000 | 109,043,000 |
SUPPLEMENTAL DISCLOSURES | ||
Interest paid | 21,289,000 | 2,531,000 |
Income taxes paid | 3,557,000 | 4,687,000 |
Noncash investing activities: | ||
Establishment of lease liability and right-of-use asset | 582,000 | |
Capitalization of servicing rights | 429,000 | $ 131,000 |
Transfer of loans to OREO | $ 251,000 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies | |
Significant Accounting Policies | NOTE 1. Significant Accounting Policies The accompanying Consolidated Financial Statements include the accounts of Unity Bancorp, Inc. (the "Parent Company") and its wholly-owned subsidiary, Unity Bank (the "Bank" or when consolidated with the Parent Company, the "Company"). The Bank has multiple subsidiaries used to hold part of its investment and loan portfolios. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation, with no impact on current earnings or shareholders’ equity. The financial information has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has not been audited. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Amounts requiring the use of significant estimates include the allowance for credit losses, valuation of deferred tax and servicing assets, the valuation of securities and the determination of impairment for securities and fair value disclosures. Management believes that the allowance for credit losses is adequate. While management uses available information to recognize credit losses, future additions to the allowance for credit losses may be necessary based on changes in economic conditions and the general credit quality of the loan portfolio. The interim unaudited Consolidated Financial Statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the Securities and Exchange Commission (“SEC”) and consist of normal recurring adjustments, that in the opinion of management, are necessary for the fair presentation of interim results. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of the results which may be expected for the entire year. As used in this Form 10-Q, “we” and “us” and “our” refer to Unity Bancorp, Inc., and its consolidated subsidiary, Unity Bank, depending on the context. Certain information and financial disclosures required by U.S. GAAP have been condensed or omitted from interim reporting pursuant to SEC rules. Interim financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Risks and Uncertainties Overall, the markets and customers serviced by the Company may be significantly impacted by ongoing macro-economic trends, such as inflation and recessionary pressures created by a higher interest rate environment. The Company assesses the impact of inflation on an ongoing basis. Recent industry events transpired, including the failures of Silicon Valley Bank (“SVB”) headquartered in Santa Clara, California and Signature Bank headquartered in New York, New York in March 2023, have led to uncertainty and concerns regarding the liquidity positions of the banking sector. SVB was placed into receivership on March 10, 2023, marking the second largest bank failure in U.S. history. Signature Bank was placed into receivership on March 12, 2023, marking the third largest bank failure in U.S. history. Both banks appear to have had high ratios of uninsured deposits to total deposits, when compared to industry average, as well as significant unrealized losses in their investment and loan portfolios. These failures underscore the importance of maintaining access to diverse sources of funding. The Company’s deposit base includes a combination of consumer, commercial and public funds deposits, without a high level of industry concentration. In addition, the Company has a relative small investment securities portfolio, constituting 5.4% of total assets. Market conditions and external factors may unpredictably impact the competitive landscape for deposits in the banking industry. Additionally, the rising interest rate environment has increased competition for liquidity and the premium at which liquidity is available to meet funding needs. The Company believes the sources of liquidity presented in the Unaudited Consolidated Financial Statements and the Notes to the Unaudited Consolidated Financial Statements are sufficient to meet its needs on the balance sheet date. An unexpected influx of withdrawals of deposits could adversely impact the Company's ability to rely on organic deposits to primarily fund its operations, potentially requiring greater reliance on secondary sources of liquidity to meet withdrawal demands or to fund continuing operations. These sources may include proceeds from Federal Home Loan Bank advances, sales of investment securities and loans, federal funds lines of credit from correspondent banks and out-of-market time deposits. Such reliance on secondary funding sources could increase the Company's overall cost of funding and thereby reduce net income. While the Company believes its current sources of liquidity are adequate to fund operations, there is no guarantee they will suffice to meet future liquidity demands. This may necessitate slowing or discontinuing loan growth, capital expenditures or other investments, or liquidating assets. New Accounting Guidance adopted in the First Quarter 2023 Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” amends the accounting guidance on the impairment of financial instruments. The Financial Accounting Standards Board (“FASB”) issued an amendment to replace the incurred loss impairment methodology under prior accounting guidance with a new current expected credit loss (“CECL”) model. Under the new guidance, the Company is required to measure expected credit losses by utilizing forward-looking information to assess its allowance for credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The measurement of expected credit losses under CECL methodology is applicable to financial assets measured at amortized cost, including loans and held to maturity debt securities. CECL also applies to certain off-balance sheet exposures. The Company adopted ASU 2016-13 on January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The Company established a governance structure to implement the CECL accounting guidance and has developed a methodology and set of models to be used upon adoption. At adoption, the Company recorded an $0.8 million increase to its allowance for credit losses, entirely related to loans. Further the Company increased its reserve for unfunded credit commitments by $0.1 million. The reserve for unfunded credit commitments is recorded in Accrued expenses and other liabilities on the consolidated balance sheet. These increases in reserves were recorded through retained earnings and was $0.6 million, net of tax. For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. For other assets within the scope of the new CECL accounting guidance, such as held to maturity debt securities and other receivables, management noted the impact from adoption to be inconsequential. Additionally, the Company noted the adoption of CECL had no significant impact on regulatory capital ratios of the Company and/or the Bank. ASU 2022-01, “Derivatives and Hedging (Topic 815)”: ASU 2022-01 was issued to clarify the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible and renamed that method the “portfolio layer” method. ASU 2022-01 is effective January 1, 2023. The Company adopted the guidance effective January 1, 2023, noting no material impact. ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326)”: ASU 2022-02 eliminates the guidance on troubled debt restructurings (“TDRs”) and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 requires that entities disclose if the modifications result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. The Company adopted ASU 2022-02 effective January 1, 2023, noting no material impact. New Accounting Guidance issued in the Second Quarter 2023 There were no ASUs issued in the second quarter of 2023 which were material to the Company or its financial statements. |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2023 | |
Litigation | |
Litigation | NOTE 2. Litigation The Company may, in the ordinary course of business, become a party to litigation involving collection matters, contract claims and other legal proceedings relating to the conduct of its business. In the best judgment of management, based upon consultation with counsel, the consolidated financial position and results of operations of the Company will not be affected materially by the final outcome of any pending legal proceedings or other contingent liabilities and commitments. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jun. 30, 2023 | |
Net Income per Share | |
Net Income per Share | NOTE 3. Net Income per Share Basic net income per common share is calculated as net income divided by the weighted average common shares outstanding during the reporting period. Common shares include vested and unvested restricted shares. Diluted net income per common share is computed similarly to that of basic net income per common share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares, principally stock options, were issued during the reporting period utilizing the treasury stock method. The following is a reconciliation of the calculation of basic and diluted income per share: For the three months ended June 30, For the six months ended June 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Net income $ 9,700 $ 9,451 $ 19,987 $ 18,559 Weighted average common shares outstanding - Basic 10,103 10,504 10,319 10,475 Plus: Potential dilutive common stock equivalents 100 202 125 210 Weighted average common shares outstanding - Diluted 10,203 10,706 10,444 10,685 Net income per common share - Basic $ 0.96 $ 0.90 $ 1.94 $ 1.77 Net income per common share - Diluted 0.95 0.88 1.91 1.74 Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive 50 — — — |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2023 | |
Other Comprehensive Income (Loss) | |
Other Comprehensive Income (Loss) | NOTE 4. Other Comprehensive Income (Loss) The following tables show the changes in other comprehensive (loss) income for the three and six months ended June 30, 2023 and 2022, net of tax: For the three months ended June 30, 2023 Accumulated Net unrealized Net unrealized other (losses) gains on gains (losses) from comprehensive (In thousands) securities cash flow hedges income (loss) Balance, beginning of period $ (4,115) $ 936 $ (3,179) Other comprehensive (loss) income before reclassifications (516) 228 (288) Less amounts reclassified from accumulated other comprehensive loss — 156 156 Period change (516) 72 (444) Balance, end of period $ (4,631) $ 1,008 $ (3,623) For the three months ended June 30, 2022 Net unrealized Accumulated Net unrealized gains other gains (losses) on from cash flow comprehensive (In thousands) securities hedges income (loss) Balance, beginning of period $ (784) $ 1,392 $ 608 Other comprehensive (loss) income before reclassifications (3,054) (570) (3,624) Less amounts reclassified from accumulated other comprehensive loss (394) — (394) Period change (2,660) (570) (3,230) Balance, end of period $ (3,444) $ 822 $ (2,622) For the six months ended June 30, 2023 Net unrealized Accumulated Net unrealized gains other gains (losses) on from cash flow comprehensive (In thousands) securities hedges income (loss) Balance, beginning of period $ (4,381) $ 1,121 $ (3,260) Other comprehensive (loss) income before reclassifications (250) (412) (662) Less amounts reclassified from accumulated other comprehensive loss — (299) (299) Period change (250) (113) (363) Balance, end of period $ (4,631) $ 1,008 $ (3,623) For the six months ended June 30, 2022 Net unrealized Accumulated Net unrealized (losses) gains other (losses) gains on from cash flow comprehensive (In thousands) securities hedges (loss) income Balance, beginning of period $ 29 $ 293 $ 322 Other comprehensive income before reclassifications (4,306) 529 (3,777) Less amounts reclassified from accumulated other comprehensive income (loss) (833) — (833) Period change (3,473) 529 (2,944) Balance, end of period $ (3,444) $ 822 $ (2,622) |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value | |
Fair Value | NOTE 5. Fair Value Fair Value Measurement The Company follows FASB ASC Topic 820, “Fair Value Measurement and Disclosures,” Level 1 Inputs ● Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Generally, this includes debt and equity securities and derivative contracts that are traded in an active exchange market (i.e. New York Stock Exchange), as well as certain U.S. Treasury, U.S. Government and sponsored entity agency mortgage-backed securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Inputs ● Quoted prices for similar assets or liabilities in active markets. ● Quoted prices for identical or similar assets or liabilities in inactive markets. ● Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (i.e. interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.” ● Generally, this includes U.S. Government and sponsored entity mortgage-backed securities, corporate debt securities and derivative contracts. Level 3 Inputs ● Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities. ● These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair Value on a Recurring Basis The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis: Debt Securities Available for Sale The fair value of available for sale ("AFS") debt securities is the market value based on quoted market prices, when available, or market prices provided by recognized broker dealers (Level 1). If listed prices or quotes are not available, fair value is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). As of June 30, 2023, the fair value of the Company’s AFS debt securities portfolio was $93.0 million. Most of the Company’s AFS debt securities were classified as Level 2 assets at June 30, 2023. The valuation of AFS debt securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar assets or liabilities in active markets and all other relevant information. It includes model pricing, defined as valuing securities based upon their relationship with other benchmark securities. Included in the Company’s AFS debt securities are two corporate bonds which are classified as Level 3 assets at June 30, 2023. The valuation of these corporate bonds is determined using broker quotes or third-party vendor prices that are not adjusted by management. Market inputs used in the other valuation techniques or underlying third-party vendor prices or broker quotes include benchmark and government bond yield curves, credit spreads and trade execution data. Equity Securities with Readily Determinable Fair Values The fair value of equity securities is the market value based on quoted market prices, when available, or market prices provided by recognized broker dealers (Level 1). If listed prices or quotes are not available, fair value is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). As of June 30, 2023, the fair value of the Company’s equity securities portfolio was $8.2 million. All of the Company’s equity securities were classified as Level 1 assets at June 30, 2023. Interest Rate Swap Agreements The fair value of interest rate swap agreements is the market value based on quoted market prices, when available, or market prices provided by recognized broker dealers (Level 1). If listed prices or quotes are not available, fair value is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). The Company’s derivative instruments are classified as Level 2 assets, as the readily observable market inputs to these models are validated to external sources, such as industry pricing services, or are corroborated through recent trades, dealer quotes, yield curves, implied volatility or other market-related data. There were no changes in the inputs or methodologies used to determine fair value during the period ended June 30, 2023, as compared to the periods ended December 31, 2022 and June 30, 2022. The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022: Fair Value Measurements at June 30, 2023 Quoted Prices in Assets/Liabilities Active Markets Significant Other Significant Measured at Fair for Identical Observable Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: Assets: Debt securities available for sale: U.S. Government sponsored entities $ 16,248 $ — $ 16,248 $ — State and political subdivisions 586 — 586 — Residential mortgage-backed securities 14,676 — 14,676 — Corporate and other securities 61,456 — 57,125 4,331 Total debt securities available for sale $ 92,966 $ — $ 88,635 $ 4,331 Equity securities with readily determinable fair values 8,205 8,205 — Total equity securities $ 8,205 $ 8,205 $ — $ — Interest rate swap agreements 1,402 — 1,402 — Total swap agreements $ 1,402 $ — $ 1,402 $ — Fair value Measurements at December 31, 2022 Quoted Prices in Assets/Liabilities Active Markets Significant Other Significant Measured at Fair for Identical Observable Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: Assets: Debt securities available for sale: U.S. Government sponsored entities $ 16,305 $ — $ 16,305 $ — State and political subdivisions 613 — 613 — Residential mortgage-backed securities 15,475 — 15,475 — Corporate and other securities 63,000 — 58,325 4,675 Total debt securities available for sale $ 95,393 $ — $ 90,718 $ 4,675 Equity securities with readily determinable fair values 9,793 — 9,793 — Total equity securities $ 9,793 $ — $ 9,793 $ — Interest rate swap agreements 1,537 — 1,537 — Total swap agreements $ 1,537 $ — $ 1,537 $ — Fair Value on a Nonrecurring Basis The following tables present the assets and liabilities subject to fair value adjustments on a non-recurring basis carried on the balance sheet by caption and by level within the hierarchy (as described above): Fair Value Measurements at June 30, 2023 Quoted Prices Significant in Active Other Significant Assets/Liabilities Markets for Observable Unobservable Measured at Fair Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Measured on a non-recurring basis: Financial assets: OREO $ 251 $ 251 Collateral-dependent loans $ 11,558 $ — $ — $ 11,558 Fair Value Measurements at December 31, 2022 Quoted Prices Significant in Active Other Significant Assets/Liabilities Markets for Observable Unobservable Measured at Fair Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Measured on a non-recurring basis: Financial assets: Collateral-dependent loans 8,803 — — 8,803 Certain assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following is a description of the valuation methodologies used for instruments measured at fair value on a nonrecurring basis: Collateral-Dependent Loans & OREO Fair value is determined based on the fair value of the collateral. Partially charged-off loans are measured for impairment based upon a third-party appraisal for collateral-dependent loans. When an updated appraisal is received for a nonperforming loan, the value on the appraisal may be discounted. If there is a deficiency in the value after the Company applies these discounts, management applies a specific reserve, and the loan remains in nonaccrual status. The receipt of an updated appraisal would not qualify as a reason to put a loan back into accruing status. The Company removes loans from nonaccrual status generally when the borrower makes six months of contractual payments and demonstrates the ability to service the debt going forward. Charge-offs are determined based upon the loss that management believes the Company will incur after evaluating collateral for impairment based upon the valuation methods described above and the ability of the borrower to pay any deficiency. The valuation allowance for individually evaluated loans is included in the allowance for credit losses in the consolidated balance sheets. At June 30, 2023, the valuation allowance for impaired loans was $1.0 million, compared to $1.8 million at December 31, 2022. Fair Value of Financial Instruments FASB ASC Topic 825, “Financial Instruments,” have had a material effect on these estimates of fair value. The methodology for estimating the fair value of financial assets and liabilities that are measured on a recurring or nonrecurring basis are discussed above. The following methods and assumptions were used to estimate the fair value of other financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents For these short-term instruments, the carrying value is a reasonable estimate of fair value. Securities The fair value of securities is based upon quoted market prices for similar or identical assets or other observable inputs (Level 2) or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). SBA Loans Held for Sale The fair value of SBA loans held for sale is estimated by using a market approach that includes significant other observable inputs. Loans The fair value of loans is estimated by discounting the future cash flows using current market rates that reflect the interest rate risk inherent in the loan, except for previously discussed impaired loans. Deposit Liabilities The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date (i.e. carrying value). The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using current market rates. Accrued Interest The carrying amounts of accrued interest approximate fair value. Borrowed Funds and Subordinated Debentures The fair value of borrowings is estimated by discounting the projected future cash flows using current market rates. Standby Letters of Credit As a part of standard credit arrangements, the bank offers standby letters of credits and other loan commitments. The fair value of these commitments is nominal. The table below presents the carrying amount and estimated fair values of the Company’s financial instruments presented as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Fair value Carrying Estimated Carrying Estimated (In thousands) level amount fair value amount fair value Financial assets: Securities (1) Level 2 137,061 130,435 140,946 133,764 SBA loans held for sale Level 2 20,074 25,031 27,928 30,141 Loans, net of allowance for credit losses (2) Level 2 2,121,305 2,032,930 2,053,435 1,990,010 Financial liabilities: Deposits Level 2 1,849,528 1,719,293 1,787,528 1,772,270 Borrowed funds and subordinated debentures Level 2 433,310 431,459 393,310 391,312 (1) Includes corporate securities that are considered Level 3 and reported separately in the table under the “Fair Value on a Recurring Basis” heading. These securities had book values of $5.3 million and market values of $4.3 million. Additionally, includes equity securities with readily determinable fair values of $8.2 million. (2) Includes collateral-dependent loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading. Collateral-dependent loans, net of specific reserves totaled $11.8 million and $8.8 million at June 30, 2023 and December 31, 2022, respectively. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2023 | |
Securities | |
Securities | NOTE 6. Securities This table provides the major components of debt securities available for sale ("AFS") and held to maturity (“HTM”) at amortized cost and estimated fair value at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated (In thousands) cost gains losses fair value cost gains losses fair value Available for sale: U.S. Government sponsored entities $ 16,978 $ — $ (730) $ 16,248 $ 16,961 $ — $ (656) $ 16,305 State and political subdivisions 631 — (45) 586 635 — (22) 613 Residential mortgage-backed securities 16,270 29 (1,623) 14,676 17,097 32 (1,654) 15,475 Corporate and other securities 65,206 212 (3,962) 61,456 66,495 106 (3,601) 63,000 Total debt securities available for sale $ 99,085 $ 241 $ (6,360) $ 92,966 $ 101,188 $ 138 $ (5,933) $ 95,393 Held to maturity: U.S. Government sponsored entities $ 28,000 $ — $ (4,614) $ 23,386 $ 28,000 $ — $ (5,310) $ 22,690 State and political subdivisions 1,143 55 — 1,198 1,115 67 — 1,182 Residential mortgage-backed securities 6,747 — (2,067) 4,680 6,645 — (1,939) 4,706 Total securities held to maturity $ 35,890 $ 55 $ (6,681) $ 29,264 $ 35,760 $ 67 $ (7,249) $ 28,578 This table provides the remaining contractual maturities within the investment portfolios. The carrying value of securities at June 30, 2023 is distributed by contractual maturity. Mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity. Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls. After one through After five through Total carrying Within one year five years ten years After ten years value (In thousands) Available for sale at fair value: U.S. Government sponsored entities $ 1,949 $ 14,299 $ — $ — $ 16,248 State and political subdivisions 200 160 — 226 586 Residential mortgage-backed securities — 513 765 13,398 14,676 Corporate and other securities — 13,079 11,583 36,794 61,456 Total debt securities available for sale $ 2,149 $ 28,051 $ 12,348 $ 50,418 $ 92,966 Held to maturity at cost: U.S. Government sponsored entities $ — $ — $ 3,000 $ 25,000 $ 28,000 State and political subdivisions — — — 1,143 1,143 Residential mortgage-backed securities — — — 6,747 6,747 Total securities held to maturity $ — $ — $ 3,000 $ 32,890 $ 35,890 The fair value of debt securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2023 and December 31, 2022 are as follows: June 30, 2023 Less than 12 months 12 months and greater Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) fair value loss fair value loss fair value loss Available for sale: U.S. Government sponsored entities $ 339 $ (5) $ 15,909 $ (725) $ 16,248 $ (730) State and political subdivisions — — 386 (45) 386 (45) Residential mortgage-backed securities 4,628 (221) 9,990 (1,402) 14,618 (1,623) Corporate and other securities 7,686 (434) 52,027 (3,528) 59,713 (3,962) Total $ 12,653 $ (660) $ 78,312 $ (5,700) $ 90,965 $ (6,360) Held to maturity: U.S. Government sponsored entities $ — $ — $ 23,386 $ (4,614) $ 23,386 $ (4,614) Residential mortgage-backed securities — $ — 4,680 (2,067) 4,680 (2,067) Total $ — $ — $ 28,066 $ (6,681) $ 28,066 $ (6,681) December 31, 2022 Less than 12 months 12 months and greater Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) fair value loss fair value loss fair value loss Available for sale: U.S. Government sponsored entities $ 15,817 $ (622) $ 1,432 $ (34) $ 17,249 $ (656) State and political subdivisions 160 (5) 253 (17) 413 (22) Residential mortgage-backed securities 14,023 (1,448) 1,311 (206) 15,334 (1,654) Corporate and other securities 23,445 (966) 31,948 (2,635) 55,393 (3,601) Total temporarily impaired AFS securities $ 53,445 $ (3,041) $ 34,944 $ (2,892) $ 88,389 $ (5,933) Held to maturity: U.S. Government sponsored entities $ 15,659 $ (2,341) $ 7,031 $ (2,969) $ 22,690 $ (5,310) Residential mortgage-backed securities 4,707 (1,939) — — 4,707 (1,939) Total temporarily impaired HTM securities $ 20,366 $ (4,280) $ 7,031 $ (2,969) $ 27,397 $ (7,249) Unrealized losses in each of the categories presented in the tables above were primarily driven by market interest rate fluctuations. Residential mortgage-backed securities are guaranteed by either Ginnie Mae, Freddie Mac or Fannie Mae. Allowance for Credit Losses The Company has zero-loss expectation for certain securities within the held to maturity and available for sale portfolios, and therefore is not required to estimate an allowance for credit losses related to these securities under the CECL standard. The Company does not provide credit quality indicators for held to maturity securities that have zero-loss expectation. After an evaluation of various factors, the following security types are believed to qualify for this exclusion: U.S Government sponsored entities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae or Freddie Mac. Management recognized no impairment for held to maturity debt securities during the three and six months ended June 30, 2023 and 2022. There was no allowance for credit losses for held to maturity debt securities at June 30, 2023 and 2022. Available for sale debt securities in unrealized loss positions are evaluated for impairment on a quarterly basis. The Company has evaluated available for sale securities that are in an unrealized loss position and has determined that the declines in fair value are attributable to market volatility, not credit quality or other factors. Management recognized no impairment during the three and six months ended June 30, 2023 and 2022. There was no allowance for credit losses for available for sale debt securities at June 30, 2023 and 2022. Realized Gains and Losses on Debt Securities Net realized gains are included in noninterest income in the Consolidated Statements of Income as net security gains. There were no realized gains or losses on available for sale securities during the three and six months ended June 30, 2023 and June 30, 2022. There was no gross realized gain or loss for held for maturity debt securities during the three and six months ended June 30, 2023 and 2022. Equity Securities Included in this category are Community Reinvestment Act ("CRA") investments and the Company’s current other equity holdings of financial institutions. Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interests in entities at fixed or determinable prices. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2023 and 2022: For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Net unrealized losses occurring during the period on equity securities $ (164) $ (498) $ (709) $ (1,055) Net realized gains recognized during the period on equity securities sold during the period — — 222 — Net losses recognized during the reporting period on equity securities $ (164) $ (498) $ (487) $ (1,055) |
Loans
Loans | 6 Months Ended |
Jun. 30, 2023 | |
Loans | |
Loans | NOTE 7. Loans The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses as of June 30, 2023 and December 31, 2022: (In thousands) June 30, 2023 December 31, 2022 SBA loans held for investment $ 39,878 $ 38,468 SBA PPP loans 2,555 5,908 Commercial loans SBA 504 loans 31,657 35,077 Commercial other 130,737 117,566 Commercial real estate 931,756 903,126 Commercial real estate construction 161,882 131,774 Residential mortgage loans 633,414 605,091 Consumer loans Home equity 68,379 68,310 Consumer other 7,611 9,854 Residential construction loans 139,424 163,457 Total loans held for investment $ 2,147,293 $ 2,078,631 SBA loans held for sale 20,074 27,928 Total loans $ 2,167,367 $ 2,106,559 Loans held for investment are stated at the unpaid principal balance, net of unearned discounts and deferred loan origination fees and costs. In accordance with the level yield method, loan origination fees, net of direct loan origination costs, are deferred and recognized over the estimated life of the related loans as an adjustment to the loan yield. Interest is credited to operations primarily based upon the principal balance outstanding. Loans are reported as past due when either interest or principal is unpaid in the following circumstances: fixed payment loans when the borrower is in arrears for two or more monthly payments; open end credit for two or more billing cycles; and single payment notes if interest or principal remains unpaid for 30 days or more. Loans are charged off when collection is sufficiently questionable and when the Company can no longer justify maintaining the loan as an asset on the balance sheet. Loans qualify for charge-off when, after thorough analysis, all possible sources of repayment are insufficient. These include: 1) potential future cash flows, 2) value of collateral, and/or 3) strength of co-makers and guarantors. All unsecured loans are charged off upon the establishment of the loan’s nonaccrual status. Additionally, all loans classified as a loss or that portion of the loan classified as a loss is charged off. Loans are made to individuals as well as commercial entities. Specific loan terms vary as to interest rate, repayment and collateral requirements based on the type of loan requested and the credit worthiness of the prospective borrower. Credit risk tends to be geographically concentrated in that a majority of the loan customers are located in the markets serviced by the Bank. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. A description of the Company’s different loan segments follows: Small Business Administration (“SBA”) Loans: Loans held for sale represent the guaranteed portion of SBA loans and are reflected at the lower of aggregate cost or market value. The net amount of loan origination fees on loans sold is included in the carrying value and in the gain or loss on the sale. When sales of SBA loans do occur, the premium received on the sale and the present value of future cash flows of the servicing assets are recognized in income. All criteria for sale accounting must be met in order for the loan sales to occur. Servicing assets represent the estimated fair value of retained servicing rights, net of servicing costs, at the time loans are sold. Servicing assets are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on stratifying the underlying financial assets by date of origination and term. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Serviced loans sold to others are not included in the accompanying Consolidated Balance Sheets. Income and fees collected for loan servicing are credited to noninterest income when earned, net of amortization on the related servicing assets. Commercial Loans: Residential Mortgage, Consumer and Residential Construction Loans: Inherent in the lending function is credit risk, which is the possibility a borrower may not perform in accordance with the contractual terms of their loan. A borrower’s inability to pay their obligations according to the contractual terms can create the risk of past due loans and, ultimately, credit losses, especially on collateral deficient loans. The Company minimizes its credit risk by loan diversification and adhering to credit administration policies and procedures. Due diligence on loans begins when the Company initiates contact regarding a loan with a borrower. Documentation, including a borrower’s credit history, materials establishing the value and liquidity of potential collateral, the purpose of the loan, the source of funds for repayment of the loan, and other factors, are analyzed before a loan is submitted for approval. The commercial loan portfolio is then subject to on-going internal reviews for credit quality which in part is derived from ongoing collection and review of borrowers’ financial information, as well as independent credit reviews by an outside firm. The Company’s extension of credit is governed by the Credit Risk Policy which was established to control the quality of the Company’s loans. This policy and the underlying procedures are reviewed and approved by the Board of Directors on a regular basis. Credit Ratings The Company places all SBA and commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy. The Company uses the following regulatory definitions for criticized and classified risk ratings: Pass: Special Mention: Substandard: Loss: These loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, based on currently existing facts, conditions and values. Once a borrower is deemed incapable of repayment of unsecured debt, the loan is termed a “Loss”, and charged off immediately. For residential mortgage, consumer and residential construction loans, management uses performing versus nonperforming as the best indicator of credit quality. Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt. These credit quality indicators are updated on an ongoing basis, as a loan is placed on nonaccrual status as soon as management believes there is sufficient doubt as to the ultimate ability to collect interest on a loan. At June 30, 2023, the Company owned $0.3 million in commercial properties that were included in OREO in the Consolidated Balance Sheets, compared to none at December 31, 2022. Additionally, there were $13.7 million in the process of foreclosure at June 30, 2023, compared to $2.1 million at December 31, 2022. At June 30, 2023, foreclosures in process included loans in the Commercial, SBA, Residential mortgage loans, Consumer Construction and Home Equity categories. Nonperforming and Past Due Loans Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to the contractual terms is in doubt. When a loan is classified as nonaccrual, interest accruals are discontinued and all past due interest previously recognized as income is reversed and charged against current period earnings. Generally, until the loan becomes current, any payments received from the borrower are applied to outstanding principal until such time as management determines that the financial condition of the borrower and other factors merit recognition of a portion of such payments as interest income. Loans may be returned to an accrual status when the ability to collect is reasonably assured and when the loan is brought current as to principal and interest. The risk of loss is difficult to quantify and is subject to fluctuations in collateral values, general economic conditions and other factors. The Company values its collateral through the use of appraisals, broker price opinions and knowledge of its local market. The following tables set forth an aging analysis of past due and nonaccrual loans as of June 30, 2023 and December 31, 2022: June 30, 2023 90+ days 30 ‑ 59 days 60 ‑ 89 days and still Total past (In thousands) past due past due accruing Nonaccrual due Current Total loans SBA loans held for investment $ — $ 192 $ — $ 3,591 $ 3,783 $ 36,095 $ 39,878 Commercial loans SBA 504 loans — — — — — 31,657 31,657 Commercial other — — — 630 630 130,107 130,737 Commercial real estate — — — 205 205 931,551 931,756 Commercial real estate construction — — — — — 161,882 161,882 Residential mortgage loans — 5,444 — 8,607 14,051 619,363 633,414 Consumer loans Home equity — — — — — 68,379 68,379 Consumer other 86 35 — — 121 7,490 7,611 Residential construction loans — — — 3,182 3,182 136,242 139,424 Total loans held for investment, excluding SBA PPP 86 5,671 — 16,215 21,972 2,122,766 2,144,738 SBA loans held for sale — — — — — 20,074 20,074 Total loans, excluding SBA PPP $ 86 $ 5,671 $ — $ 16,215 $ 21,972 $ 2,142,840 $ 2,164,812 December 31, 2022 90+ days 30 ‑ 59 days 60 ‑ 89 days and still Total past (In thousands) past due past due accruing Nonaccrual due Current Total loans SBA loans held for investment $ — $ 576 $ — $ 690 $ 1,266 $ 37,202 $ 38,468 Commercial loans SBA 504 loans — — — — — 35,077 35,077 Commercial other 198 300 — 777 1,275 116,291 117,566 Commercial real estate 22 188 — 805 1,015 902,111 903,126 Commercial real estate construction — — — — — 131,774 131,774 Residential mortgage loans — 982 — 3,361 4,343 600,748 605,091 Consumer loans Home equity — — — — — 68,310 68,310 Consumer other 18 7 — — 25 9,829 9,854 Residential construction loans — — — 3,432 3,432 160,025 163,457 Total loans held for investment, excluding SBA PPP 238 2,053 — 9,065 11,356 2,061,367 2,072,723 SBA loans held for sale 2,195 — — — 2,195 25,733 27,928 Total loans, excluding SBA PPP $ 2,433 $ 2,053 $ — $ 9,065 $ 13,551 $ 2,087,100 $ 2,100,651 The company is using the practical expedient The following table shows the internal loan classification risk by loan portfolio classification by origination year as of June 30, 2023: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 2018 and Earlier Revolving Loans Amortized Cost Basis Total SBA loans held for investment Risk Rating: Pass $ 979 $ 7,339 $ 5,132 $ 6,247 $ 2,704 $ 11,627 $ - $ 34,028 Special Mention - - - 702 - 758 - 1,460 Substandard - 1,361 2,237 - - 792 - 4,390 Total SBA loans held for investment $ 979 $ 8,700 $ 7,369 $ 6,949 $ 2,704 $ 13,177 $ - $ 39,878 SBA loans held for investment Current-period gross writeoffs $ - $ - $ - $ - $ 113 $ - $ - $ 113 SBA PPP loans Risk Rating: Pass $ - $ - $ 2,555 $ - $ - $ - $ - $ 2,555 Special Mention - - - - - - - - Substandard - - - - - - - - Total SBA PPP loans $ - $ - $ 2,555 $ - $ - $ - $ - $ 2,555 Commercial loans Risk Rating: Pass $ 84,290 $ 345,498 $ 185,728 $ 138,087 $ 103,348 $ 286,754 $ 93,312 $ 1,237,017 Special Mention - 86 2,100 - 2,251 11,386 395 16,218 Substandard - - - 220 - 2,577 - 2,797 Total commercial loans $ 84,290 $ 345,584 $ 187,828 $ 138,307 $ 105,599 $ 300,717 $ 93,707 $ 1,256,032 Residential mortgage loans Risk Rating: Performing $ 69,505 $ 266,630 $ 77,180 $ 54,857 $ 34,294 $ 122,341 $ - $ 624,807 Nonperforming 1,711 2,331 2,413 795 276 1,081 - 8,607 Total residential mortgage loans $ 71,216 $ 268,961 $ 79,593 $ 55,652 $ 34,570 $ 123,422 $ - $ 633,414 Consumer loans Risk Rating: Performing $ 1,562 $ 5,438 $ 5,650 $ 724 $ 3,399 $ 8,321 $ 50,626 $ 75,720 Nonperforming - - - - - - 270 270 Total consumer loans $ 1,562 $ 5,438 $ 5,650 $ 724 $ 3,399 $ 8,321 $ 50,896 $ 75,990 Consumer loans Current-period gross writeoffs $ - $ - $ 345 $ - $ - $ - $ - $ 345 Residential construction Risk Rating: Performing $ 13,093 $ 76,151 $ 37,515 $ 7,751 $ 500 $ 1,232 $ - $ 136,242 Nonperforming - - 352 - - 1,795 1,035 3,182 Total residential construction loans $ 13,093 $ 76,151 $ 37,867 $ 7,751 $ 500 $ 3,027 $ 1,035 $ 139,424 Residential construction Current-period gross writeoffs $ - $ - $ - $ - $ - $ 500 $ 400 $ 900 Total loans held for investment $ 171,140 $ 704,834 $ 320,862 $ 209,383 $ 146,772 $ 448,664 $ 145,638 $ 2,147,293 The tables below detail the Company’s loan portfolio by class according to their credit quality indicators discussed in the paragraphs above as of December 31, 2022: December 31, 2022 SBA & Commercial loans - Internal risk ratings (In thousands) Pass Special mention Substandard Total SBA loans held for investment $ 37,163 $ 558 $ 747 $ 38,468 SBA PPP loans 5,908 — — 5,908 Commercial loans SBA 504 loans 35,077 — — 35,077 Commercial other 110,107 6,220 1,239 117,566 Commercial real estate 894,110 6,228 2,788 903,126 Commercial real estate construction 131,774 — — 131,774 Total commercial loans 1,171,068 12,448 4,027 1,187,543 Total SBA and commercial loans $ 1,214,139 $ 13,006 $ 4,774 $ 1,231,919 Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming (In thousands) Performing Nonperforming Total Residential mortgage loans $ 601,730 $ 3,361 $ 605,091 Consumer loans Home equity 68,310 — 68,310 Consumer other 9,854 — 9,854 Total consumer loans 78,164 — 78,164 Residential construction loans 160,025 3,432 163,457 Total residential mortgage, consumer and residential construction loans $ 839,919 $ 6,793 $ 846,712 Modifications The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of gross loans and type of concession granted (numbers in thousands) during the six months ended June 30, 2023: Term Extension Amortized Cost Basis % of Total Class of June 30, 2023 Gross Loans Commercial $ 954 0.08 % Modifications for the year made to borrowers experiencing financial difficulty added a weighted average of 7.3 years to the life of the modified loans, which reduced monthly payment amounts for the borrowers. Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. No loans that were modified during the three and six months ended June 30, 2023 had a payment default during the period and all loans were current as of June 30, 2023. |
Allowance for Credit Losses and
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | 6 Months Ended |
Jun. 30, 2023 | |
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | |
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | NOTE 8. Allowance for Credit Losses and Reserve for Unfunded Loan Commitments Allowance for Credit Losses The Company has an established methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses inherent in the loan portfolio. At a minimum, the adequacy of the allowance for credit losses is reviewed by management on a quarterly basis. The standardized methodology used to assess the adequacy of the allowance includes the allocation of specific and general reserves. The same standard methodology is used, regardless of loan type. Specific reserves are evaluated for individually evaluated loans. The general reserve is set based upon a representative average historical net charge-off rate adjusted for the following environmental factors: delinquency and impairment trends, charge-off and recovery trends, volume and loan term trends, changes in risk and underwriting policy trends, staffing and experience changes, national and local economic trends, industry conditions and credit concentration changes. Within the historical net charge-off rate, the Company weights the data dating back to 2015 on a straight line basis and projects the losses on a weighted average remaining maturity basis for each segment. All of the environmental factors are ranked and assigned a basis points value based on the following scale: low, low moderate, moderate, high moderate and high risk. Each environmental factor is evaluated separately for each class of loans and risk weighted based on its individual characteristics. ● For SBA and commercial loans, the estimate of loss based on pools of loans with similar characteristics is made through the use of a standardized loan grading system that is applied on an individual loan level and updated on a continuous basis. The loan grading system incorporates reviews of the financial performance of the borrower, including cash flow, debt-service coverage ratio, earnings power, debt level and equity position, in conjunction with an assessment of the borrower’s industry and future prospects. It also incorporates analysis of the type of collateral and the relative loan to value ratio. ● For residential mortgage, consumer and residential construction loans, the estimate of loss is based on pools of loans with similar characteristics. Factors such as credit score, delinquency status and type of collateral are evaluated. Factors are updated frequently to capture the recent behavioral characteristics of the subject portfolios, as well as any changes in loss mitigation or credit origination strategies, and adjustments to the reserve factors are made as needed. According to the Company’s policy, a loss (“charge-off”) is to be recognized and charged to the allowance for credit losses as soon as a loan is recognized as uncollectable. All credits which are 90 days past due must be analyzed for the Company’s ability to collect on the credit. Once a loss is known to exist, the charge-off approval process is immediately expedited. This charge-off policy is followed for all loan types. The following tables detail the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2023 and 2022: For the three months ended June 30, 2023 Residential (In thousands) SBA Commercial Residential Consumer construction Total Balance, beginning of period $ 1,103 $ 15,299 $ 6,135 $ 1,022 $ 2,642 $ 26,201 Charge-offs — — — (225) (900) (1,125) Recoveries 15 96 — 24 — 135 Net (charge-offs) recoveries 15 96 — (201) (900) (990) Provision for (credit to) credit losses charged to expense 438 121 302 24 (108) 777 Balance, end of period $ 1,556 $ 15,516 $ 6,437 $ 845 $ 1,634 $ 25,988 For the three months ended June 30, 2022 Residential (In thousands) SBA Commercial Residential Consumer construction Total Balance, beginning of period $ 941 $ 14,705 $ 4,284 $ 642 $ 1,596 $ 22,168 Charge-offs — (501) — (40) — a (541) Recoveries 6 32 1 4 — 43 Net recoveries (charge-offs) 6 (469) 1 (36) — (498) Provision for (credit to) credit losses charged to expense (189) 672 501 197 7 1,188 Balance, end of period $ 758 $ 14,908 $ 4,786 $ 803 $ 1,603 $ 22,858 For the six months ended June 30, 2023 Residential (In thousands) SBA Commercial Residential Consumer construction Total Balance, beginning of period $ 875 $ 15,254 $ 5,450 $ 990 $ 2,627 $ 25,196 Effect of adopting Accounting Standards Update ("ASU") No. 2016-13 ("CECL") 163 171 376 101 36 847 Charge-offs (113) — — (345) (900) (1,358) Recoveries 15 367 — 36 — 418 Net (charge-offs) recoveries (98) 367 — (309) (900) (940) Provision for (credit to) loan losses charged to expense 616 (276) 611 63 (129) 885 Balance, end of period $ 1,556 $ 15,516 $ 6,437 $ 845 $ 1,634 $ 25,988 For the six months ended June 30, 2022 SBA held for Residential (In thousands) investment Commercial Residential Consumer construction Total Balance, beginning of period $ 1,074 $ 15,053 $ 4,114 $ 671 $ 1,390 $ 22,302 Charge-offs — (501) — (46) — (547) Recoveries 28 61 1 4 — 94 Net (charge-offs) recoveries 28 (440) 1 (42) — (453) Provision (credit) for loan losses charged to expense (344) 295 671 174 213 1,009 Balance, end of period $ 758 $ 14,908 $ 4,786 $ 803 $ 1,603 $ 22,858 The following tables present loans and their related allowance for credit losses, by portfolio segment, as of June 30, 2023 and December 31, 2022: June 30, 2023 Residential (In thousands) SBA Commercial Residential Consumer construction Unallocated Total Allowance for credit losses ending balance: Individually evaluated $ 530 $ — $ 147 $ — $ 274 a $ — $ 951 Collectively evaluated 1,026 15,516 6,290 845 1,360 — 25,037 Total $ 1,556 $ 15,516 $ 6,437 $ 845 $ 1,634 $ — $ 25,988 Loan ending balances: Individually evaluated $ 357 $ 449 $ 7,787 $ — $ 3,916 $ — $ 12,509 Collectively evaluated 62,150 1,255,583 625,627 75,990 135,508 — 2,154,858 Total $ 62,507 $ 1,256,032 $ 633,414 $ 75,990 $ 139,424 $ — $ 2,167,367 December 31, 2022 Residential (In thousands) SBA Commercial Residential Consumer construction Unallocated Total Allowance for credit losses ending balance: Individually evaluated for impairment $ 115 $ 516 $ 36 $ — $ 1,112 a $ — $ 1,779 Collectively evaluated for impairment 760 14,738 5,414 990 1,515 — 23,417 Total $ 875 $ 15,254 $ 5,450 $ 990 $ 2,627 $ — $ 25,196 Loan ending balances: Individually evaluated for impairment $ 690 $ 3,101 $ 3,361 $ — $ 3,432 $ — $ 10,584 Collectively evaluated for impairment 71,614 1,184,442 601,730 78,164 160,025 — 2,095,975 Total $ 72,304 $ 1,187,543 $ 605,091 $ 78,164 $ 163,457 $ — $ 2,106,559 Reserve for Unfunded Loan Commitments In addition to the allowance for credit losses, the Company maintains a reserve for unfunded loan commitments at a level that management believes is adequate to absorb estimated probable losses. At June 30, 2023, a $0.5 million commitment reserve was reported on the balance sheet as “Accrued expenses and other liabilities”, as well as a $0.5 million commitment reserve at December 31, 2022. For the three and six months ended June 30, 2023, the release for unfunded loan commitments reserves was million, respectively. The reserve for unfunded credit commitments is recorded in accrued expenses and other liabilities on the consolidated balance sheet and the related provision is recorded in Other expenses on the income statement. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Financial Instruments and Hedging Activities | |
Derivative Financial Instruments and Hedging Activities | NOTE 9. Derivative Financial Instruments and Hedging Activities Derivative Financial Instruments The Company has derivative financial instruments in the form of interest rate swap agreements, which derive their value from underlying interest rates. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments and the value of the derivatives are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such difference, which represents the fair value of the derivative instrument, is reflected on the Company’s balance sheet as “Prepaid expenses and other assets” or “Accrued expenses and other liabilities”. The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to any derivative agreement. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their obligations. The Company deals only with primary dealers. Derivative instruments are generally either negotiated via over the counter (“OTC”) contracts or standardized contracts executed on a recognized exchange. Negotiated OTC derivative contracts are generally entered into between two counterparties that negotiate specific agreement terms, including the underlying instrument, amount, exercise prices and maturity. Risk Management Policies – Hedging Instruments The primary focus of the Company’s asset/liability management program is to monitor the sensitivity of the Company’s net portfolio value and net income under varying interest rate scenarios to take steps to control its risks. On a quarterly basis, the Company evaluates the effectiveness of entering into any derivative agreement by measuring the cost of such an agreement in relation to the reduction in net portfolio value and net income volatility within an assumed range of interest rates. Interest Rate Risk Management – Cash Flow Hedging Instruments The Company has variable rate debt as a source of funds for use in the Company’s lending and investment activities and for other general business purposes. These debt obligations expose the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense decreases. Management believes it is prudent to limit the variability of a portion of its interest payments and, therefore hedges its variable-rate interest payments. To meet this objective, management enters into interest rate swap agreements whereby the Company receives variable interest rate payments and makes fixed interest rate payments during the contract period. A summary of the Company’s outstanding interest rate swap agreements used to hedge variable rate debt at June 30, 2023 and December 31, 2022, respectively is as follows: (In thousands, except percentages and years) June 30, 2023 December 31, 2022 Notional amount $ 20,000 $ 20,000 Fair value $ 1,402 $ 1,537 Weighted average pay rate 0.83 % 0.83 % Weighted average receive rate 5.14 % 1.50 % Weighted average maturity in years 1.70 2.57 Number of contracts 1 1 During the three and six months ended June 30, 2023, the Company received variable rate London Interbank Offered Rate ("LIBOR") payments from and paid fixed rates in accordance with its interest rate swap agreements. At June 30, 2023, the unrealized gain relating to interest rate swaps was recorded as a derivative asset and is included in “Prepaid expenses and other assets” on the Company’s Balance Sheet. Changes in the fair value of the interest rate swaps designated as hedging instruments of the variability of cash flows associated with long-term debt are reported in other comprehensive income. The following table presents the net gains and losses recorded in other comprehensive income and the consolidated financial statements relating to the cash flow derivative instruments at June 30, 2023 and 2022, respectively: For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Gain (Loss) recognized in OCI $ 100 $ (735) $ (135) $ 738 Gain reclassified from AOCI into net income $ 219 $ — $ 418 $ — |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | NOTE 10. Employee Benefit Plans Stock Option Plans The Company has maintained option plans and maintains an equity incentive plan, which allow for the grant of options to officers, employees and members of the Board of Directors. Grants of options under the Company’s plans generally vest over 3 years and must be exercised within 10 years of the date of grant. Transactions under the Company’s plans for the six months ended June 30, 2023 are summarized in the following table: Weighted Weighted average average remaining Aggregate exercise contractual intrinsic Shares price life in years value Outstanding at December 31, 2022 559,499 $ 18.09 5.9 $ 5,168,740 Options granted — — Options exercised (50,935) 19.61 Options forfeited (666) 18.64 Options expired — — Outstanding at June 30, 2023 507,898 $ 17.94 5.4 $ 2,870,246 Exercisable at June 30, 2023 468,074 $ 17.84 5.2 $ 2,689,947 On May 5, 2023, the Company adopted the 2023 Equity Compensation Plan providing for grants of up to 500,000 shares to be allocated between incentive and non-qualified stock options, restricted stock awards, performance units and deferred stock. The Plan, along with the 2019 Equity Compensation Plan adopted on April 25, 2019, replaced all previously approved and established equity plans then currently in effect. As of June 30, 2023, 281,500 options and 264,900 shares of restricted stock have been awarded from the plans. In addition, 16,162 unvested options and 15,250 unvested shares of restricted stock were cancelled and returned to the plan leaving 485,012 shares available for future grants. The fair values of the options granted are estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during the six months ended June 30, 2023 or 2022. Upon exercise, the Company issues shares from its authorized but unissued common stock to satisfy the options. The following table presents information about options exercised during the three and six months ended June 30, 2023 and 2022: For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Number of options exercised 13,734 15,335 50,935 62,709 Total intrinsic value of options exercised $ 74,099 $ 120,065 $ 316,003 $ 866,357 Cash received from options exercised $ 244,991 $ 314,323 $ 998,885 $ 953,537 Tax deduction realized from options $ 22,292 $ 36,121 $ 95,069 $ 260,643 The following table summarizes information about stock options outstanding and exercisable at June 30, 2023: Options outstanding Options exercisable Weighted average Weighted Weighted Options remaining contractual average Options average Range of exercise prices outstanding life (in years) exercise price exercisable exercise price $7.25 - 16.51 136,233 3.6 $ 11.97 136,233 $ 11.97 16.52 - 19.26 121,165 6.2 18.03 97,674 18.04 19.27 - 20.88 132,300 6.1 20.34 115,967 20.31 20.89 - 22.57 118,200 5.9 22.03 118,200 22.03 Total 507,898 5.4 $ 17.94 468,074 $ 17.84 Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") Topic 718, “Compensation - Stock Compensation,” For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Compensation expense $ 79 $ 138 $ 164 $ 302 Income tax benefit $ 23 $ 40 $ 47 $ 87 As of June 30, 2023, unrecognized compensation costs related to nonvested share-based stock option compensation arrangements granted under the Company’s plans totaled approximately $181 thousand. That cost is expected to be recognized over a weighted average period of 0.6 years. Restricted Stock Awards Restricted stock is issued under the Company’s active Equity Compensation Plans to reward employees and directors and to retain them by distributing stock over a period of time. Restricted stock awards granted to date vest over a period of 4 years and are recognized as compensation to the recipient over the vesting period. The awards are recorded at fair market value at the time of grant and amortized into salary expense on a straight line basis over the vesting period. The following table summarizes nonvested restricted stock activity for the six months ended June 30, 2023: Average grant Shares date fair value Nonvested restricted stock at December 31, 2022 164,570 $ 24.77 Granted 55,500 22.81 Cancelled (2,850) 26.70 Vested (37,723) 23.26 Nonvested restricted stock at June 30, 2023 179,497 $ 24.45 Restricted stock awards granted during the three and six months ended June 30, 2023 and 2022 were as follows: For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Number of shares granted 37,500 1,000 55,500 71,000 Average grant date fair value $ 20.64 $ 28.20 $ 22.81 $ 27.53 Compensation expense related to restricted stock for the three and six months ended June 30, 2023 and 2022 is detailed in the following table: For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Compensation expense $ 344 $ 301 $ 676 $ 532 Income tax benefit $ 100 $ 87 $ 195 $ 154 As of June 30, 2023, there was approximately $3.8 million of unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s equity plans. That cost is expected to be recognized over a weighted average period of 2.9 years. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Capital | |
Regulatory Capital | NOTE 11. Regulatory Capital Under the Economic Growth, Regulatory Relief and Consumer Protection Act, the Bank is considered a qualifying community banking organization, which allows the Bank to elect to opt into the community bank leverage ratio (“CBLR”) in its regulatory filings. The Bank has opted into the CBLR, and is therefore not required to comply with the Basel III capital requirements. The following table shows the CBLR ratio for the Company and the Bank as of June 30, 2023 and December 31, 2022: At June 30, 2023 At December 31, 2022 Company Bank Company Bank CBLR 10.49 % 10.07 % 10.88 % 10.34 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events | |
Subsequent Events | NOTE 12. Subsequent Events The Company has evaluated all events or transactions that occurred through the date the Company issued these financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Significant Accounting Policies | |
Overview | The accompanying Consolidated Financial Statements include the accounts of Unity Bancorp, Inc. (the "Parent Company") and its wholly-owned subsidiary, Unity Bank (the "Bank" or when consolidated with the Parent Company, the "Company"). The Bank has multiple subsidiaries used to hold part of its investment and loan portfolios. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation, with no impact on current earnings or shareholders’ equity. The financial information has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and has not been audited. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenues and expenses during the reporting periods. Actual results could differ from those estimates. Amounts requiring the use of significant estimates include the allowance for credit losses, valuation of deferred tax and servicing assets, the valuation of securities and the determination of impairment for securities and fair value disclosures. Management believes that the allowance for credit losses is adequate. While management uses available information to recognize credit losses, future additions to the allowance for credit losses may be necessary based on changes in economic conditions and the general credit quality of the loan portfolio. The interim unaudited Consolidated Financial Statements included herein have been prepared in accordance with instructions for Form 10-Q and the rules and regulations of the Securities and Exchange Commission (“SEC”) and consist of normal recurring adjustments, that in the opinion of management, are necessary for the fair presentation of interim results. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of the results which may be expected for the entire year. As used in this Form 10-Q, “we” and “us” and “our” refer to Unity Bancorp, Inc., and its consolidated subsidiary, Unity Bank, depending on the context. Certain information and financial disclosures required by U.S. GAAP have been condensed or omitted from interim reporting pursuant to SEC rules. Interim financial statements should be read in conjunction with the Company’s Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Risks and Uncertainties | Risks and Uncertainties Overall, the markets and customers serviced by the Company may be significantly impacted by ongoing macro-economic trends, such as inflation and recessionary pressures created by a higher interest rate environment. The Company assesses the impact of inflation on an ongoing basis. Recent industry events transpired, including the failures of Silicon Valley Bank (“SVB”) headquartered in Santa Clara, California and Signature Bank headquartered in New York, New York in March 2023, have led to uncertainty and concerns regarding the liquidity positions of the banking sector. SVB was placed into receivership on March 10, 2023, marking the second largest bank failure in U.S. history. Signature Bank was placed into receivership on March 12, 2023, marking the third largest bank failure in U.S. history. Both banks appear to have had high ratios of uninsured deposits to total deposits, when compared to industry average, as well as significant unrealized losses in their investment and loan portfolios. These failures underscore the importance of maintaining access to diverse sources of funding. The Company’s deposit base includes a combination of consumer, commercial and public funds deposits, without a high level of industry concentration. In addition, the Company has a relative small investment securities portfolio, constituting 5.4% of total assets. Market conditions and external factors may unpredictably impact the competitive landscape for deposits in the banking industry. Additionally, the rising interest rate environment has increased competition for liquidity and the premium at which liquidity is available to meet funding needs. The Company believes the sources of liquidity presented in the Unaudited Consolidated Financial Statements and the Notes to the Unaudited Consolidated Financial Statements are sufficient to meet its needs on the balance sheet date. An unexpected influx of withdrawals of deposits could adversely impact the Company's ability to rely on organic deposits to primarily fund its operations, potentially requiring greater reliance on secondary sources of liquidity to meet withdrawal demands or to fund continuing operations. These sources may include proceeds from Federal Home Loan Bank advances, sales of investment securities and loans, federal funds lines of credit from correspondent banks and out-of-market time deposits. Such reliance on secondary funding sources could increase the Company's overall cost of funding and thereby reduce net income. While the Company believes its current sources of liquidity are adequate to fund operations, there is no guarantee they will suffice to meet future liquidity demands. This may necessitate slowing or discontinuing loan growth, capital expenditures or other investments, or liquidating assets. |
New Accounting Guidance adopted in the First Quarter 2023 and issued in the Second Quarter 2023 | New Accounting Guidance adopted in the First Quarter 2023 Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” amends the accounting guidance on the impairment of financial instruments. The Financial Accounting Standards Board (“FASB”) issued an amendment to replace the incurred loss impairment methodology under prior accounting guidance with a new current expected credit loss (“CECL”) model. Under the new guidance, the Company is required to measure expected credit losses by utilizing forward-looking information to assess its allowance for credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The measurement of expected credit losses under CECL methodology is applicable to financial assets measured at amortized cost, including loans and held to maturity debt securities. CECL also applies to certain off-balance sheet exposures. The Company adopted ASU 2016-13 on January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The Company established a governance structure to implement the CECL accounting guidance and has developed a methodology and set of models to be used upon adoption. At adoption, the Company recorded an $0.8 million increase to its allowance for credit losses, entirely related to loans. Further the Company increased its reserve for unfunded credit commitments by $0.1 million. The reserve for unfunded credit commitments is recorded in Accrued expenses and other liabilities on the consolidated balance sheet. These increases in reserves were recorded through retained earnings and was $0.6 million, net of tax. For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet the above criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost and adverse conditions related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of tax. The Company elected the practical expedient of zero loss estimates for securities issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major agencies and have a long history of no credit losses. For other assets within the scope of the new CECL accounting guidance, such as held to maturity debt securities and other receivables, management noted the impact from adoption to be inconsequential. Additionally, the Company noted the adoption of CECL had no significant impact on regulatory capital ratios of the Company and/or the Bank. ASU 2022-01, “Derivatives and Hedging (Topic 815)”: ASU 2022-01 was issued to clarify the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios and financial assets. Among other things, the amended guidance established the “last-of-layer” method for making the fair value hedge accounting for these portfolios more accessible and renamed that method the “portfolio layer” method. ASU 2022-01 is effective January 1, 2023. The Company adopted the guidance effective January 1, 2023, noting no material impact. ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326)”: ASU 2022-02 eliminates the guidance on troubled debt restructurings (“TDRs”) and requires entities to evaluate all loan modifications to determine if they result in a new loan or a continuation of the existing loan. ASU 2022-02 requires that entities disclose if the modifications result in a new loan or a continuation of the existing loan. ASU 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. The Company adopted ASU 2022-02 effective January 1, 2023, noting no material impact. New Accounting Guidance issued in the Second Quarter 2023 There were no ASUs issued in the second quarter of 2023 which were material to the Company or its financial statements. |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Net Income per Share | |
Reconciliation of Calculation of Basic and Diluted Income Per Share | The following is a reconciliation of the calculation of basic and diluted income per share: For the three months ended June 30, For the six months ended June 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Net income $ 9,700 $ 9,451 $ 19,987 $ 18,559 Weighted average common shares outstanding - Basic 10,103 10,504 10,319 10,475 Plus: Potential dilutive common stock equivalents 100 202 125 210 Weighted average common shares outstanding - Diluted 10,203 10,706 10,444 10,685 Net income per common share - Basic $ 0.96 $ 0.90 $ 1.94 $ 1.77 Net income per common share - Diluted 0.95 0.88 1.91 1.74 Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive 50 — — — |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Comprehensive Income (Loss) | |
Changes in Other Comprehensive (Loss) Income | The following tables show the changes in other comprehensive (loss) income for the three and six months ended June 30, 2023 and 2022, net of tax: For the three months ended June 30, 2023 Accumulated Net unrealized Net unrealized other (losses) gains on gains (losses) from comprehensive (In thousands) securities cash flow hedges income (loss) Balance, beginning of period $ (4,115) $ 936 $ (3,179) Other comprehensive (loss) income before reclassifications (516) 228 (288) Less amounts reclassified from accumulated other comprehensive loss — 156 156 Period change (516) 72 (444) Balance, end of period $ (4,631) $ 1,008 $ (3,623) For the three months ended June 30, 2022 Net unrealized Accumulated Net unrealized gains other gains (losses) on from cash flow comprehensive (In thousands) securities hedges income (loss) Balance, beginning of period $ (784) $ 1,392 $ 608 Other comprehensive (loss) income before reclassifications (3,054) (570) (3,624) Less amounts reclassified from accumulated other comprehensive loss (394) — (394) Period change (2,660) (570) (3,230) Balance, end of period $ (3,444) $ 822 $ (2,622) For the six months ended June 30, 2023 Net unrealized Accumulated Net unrealized gains other gains (losses) on from cash flow comprehensive (In thousands) securities hedges income (loss) Balance, beginning of period $ (4,381) $ 1,121 $ (3,260) Other comprehensive (loss) income before reclassifications (250) (412) (662) Less amounts reclassified from accumulated other comprehensive loss — (299) (299) Period change (250) (113) (363) Balance, end of period $ (4,631) $ 1,008 $ (3,623) For the six months ended June 30, 2022 Net unrealized Accumulated Net unrealized (losses) gains other (losses) gains on from cash flow comprehensive (In thousands) securities hedges (loss) income Balance, beginning of period $ 29 $ 293 $ 322 Other comprehensive income before reclassifications (4,306) 529 (3,777) Less amounts reclassified from accumulated other comprehensive income (loss) (833) — (833) Period change (3,473) 529 (2,944) Balance, end of period $ (3,444) $ 822 $ (2,622) |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value | |
Balances of Assets And Liabilities Measured at Fair Value on Recurring Basis | The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022: Fair Value Measurements at June 30, 2023 Quoted Prices in Assets/Liabilities Active Markets Significant Other Significant Measured at Fair for Identical Observable Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: Assets: Debt securities available for sale: U.S. Government sponsored entities $ 16,248 $ — $ 16,248 $ — State and political subdivisions 586 — 586 — Residential mortgage-backed securities 14,676 — 14,676 — Corporate and other securities 61,456 — 57,125 4,331 Total debt securities available for sale $ 92,966 $ — $ 88,635 $ 4,331 Equity securities with readily determinable fair values 8,205 8,205 — Total equity securities $ 8,205 $ 8,205 $ — $ — Interest rate swap agreements 1,402 — 1,402 — Total swap agreements $ 1,402 $ — $ 1,402 $ — Fair value Measurements at December 31, 2022 Quoted Prices in Assets/Liabilities Active Markets Significant Other Significant Measured at Fair for Identical Observable Unobservable (In thousands) Value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Measured on a recurring basis: Assets: Debt securities available for sale: U.S. Government sponsored entities $ 16,305 $ — $ 16,305 $ — State and political subdivisions 613 — 613 — Residential mortgage-backed securities 15,475 — 15,475 — Corporate and other securities 63,000 — 58,325 4,675 Total debt securities available for sale $ 95,393 $ — $ 90,718 $ 4,675 Equity securities with readily determinable fair values 9,793 — 9,793 — Total equity securities $ 9,793 $ — $ 9,793 $ — Interest rate swap agreements 1,537 — 1,537 — Total swap agreements $ 1,537 $ — $ 1,537 $ — |
Assets and Liabilities Carried on the Balance Sheet by Caption And By Level Within The Hierarchy | The following tables present the assets and liabilities subject to fair value adjustments on a non-recurring basis carried on the balance sheet by caption and by level within the hierarchy (as described above): Fair Value Measurements at June 30, 2023 Quoted Prices Significant in Active Other Significant Assets/Liabilities Markets for Observable Unobservable Measured at Fair Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Measured on a non-recurring basis: Financial assets: OREO $ 251 $ 251 Collateral-dependent loans $ 11,558 $ — $ — $ 11,558 Fair Value Measurements at December 31, 2022 Quoted Prices Significant in Active Other Significant Assets/Liabilities Markets for Observable Unobservable Measured at Fair Identical Assets Inputs Inputs (In thousands) Value (Level 1) (Level 2) (Level 3) Measured on a non-recurring basis: Financial assets: Collateral-dependent loans 8,803 — — 8,803 |
Carrying Amount and Estimated Fair Values of Financial Instruments | The table below presents the carrying amount and estimated fair values of the Company’s financial instruments presented as of June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Fair value Carrying Estimated Carrying Estimated (In thousands) level amount fair value amount fair value Financial assets: Securities (1) Level 2 137,061 130,435 140,946 133,764 SBA loans held for sale Level 2 20,074 25,031 27,928 30,141 Loans, net of allowance for credit losses (2) Level 2 2,121,305 2,032,930 2,053,435 1,990,010 Financial liabilities: Deposits Level 2 1,849,528 1,719,293 1,787,528 1,772,270 Borrowed funds and subordinated debentures Level 2 433,310 431,459 393,310 391,312 (1) Includes corporate securities that are considered Level 3 and reported separately in the table under the “Fair Value on a Recurring Basis” heading. These securities had book values of $5.3 million and market values of $4.3 million. Additionally, includes equity securities with readily determinable fair values of $8.2 million. (2) Includes collateral-dependent loans that are considered Level 3 and reported separately in the tables under the “Fair Value on a Nonrecurring Basis” heading. Collateral-dependent loans, net of specific reserves totaled $11.8 million and $8.8 million at June 30, 2023 and December 31, 2022, respectively. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Securities | |
Reconciliation From Amortized Cost to Estimated Fair Value of Marketable Securities | This table provides the major components of debt securities available for sale ("AFS") and held to maturity (“HTM”) at amortized cost and estimated fair value at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Gross Gross Gross Gross Amortized unrealized unrealized Estimated Amortized unrealized unrealized Estimated (In thousands) cost gains losses fair value cost gains losses fair value Available for sale: U.S. Government sponsored entities $ 16,978 $ — $ (730) $ 16,248 $ 16,961 $ — $ (656) $ 16,305 State and political subdivisions 631 — (45) 586 635 — (22) 613 Residential mortgage-backed securities 16,270 29 (1,623) 14,676 17,097 32 (1,654) 15,475 Corporate and other securities 65,206 212 (3,962) 61,456 66,495 106 (3,601) 63,000 Total debt securities available for sale $ 99,085 $ 241 $ (6,360) $ 92,966 $ 101,188 $ 138 $ (5,933) $ 95,393 Held to maturity: U.S. Government sponsored entities $ 28,000 $ — $ (4,614) $ 23,386 $ 28,000 $ — $ (5,310) $ 22,690 State and political subdivisions 1,143 55 — 1,198 1,115 67 — 1,182 Residential mortgage-backed securities 6,747 — (2,067) 4,680 6,645 — (1,939) 4,706 Total securities held to maturity $ 35,890 $ 55 $ (6,681) $ 29,264 $ 35,760 $ 67 $ (7,249) $ 28,578 |
Schedule of Marketable Securities By Contractual Maturity | This table provides the remaining contractual maturities within the investment portfolios. The carrying value of securities at June 30, 2023 is distributed by contractual maturity. Mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity. Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls. After one through After five through Total carrying Within one year five years ten years After ten years value (In thousands) Available for sale at fair value: U.S. Government sponsored entities $ 1,949 $ 14,299 $ — $ — $ 16,248 State and political subdivisions 200 160 — 226 586 Residential mortgage-backed securities — 513 765 13,398 14,676 Corporate and other securities — 13,079 11,583 36,794 61,456 Total debt securities available for sale $ 2,149 $ 28,051 $ 12,348 $ 50,418 $ 92,966 Held to maturity at cost: U.S. Government sponsored entities $ — $ — $ 3,000 $ 25,000 $ 28,000 State and political subdivisions — — — 1,143 1,143 Residential mortgage-backed securities — — — 6,747 6,747 Total securities held to maturity $ — $ — $ 3,000 $ 32,890 $ 35,890 |
Schedule of Marketable Securities In Unrealized Loss Position | The fair value of debt securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2023 and December 31, 2022 are as follows: June 30, 2023 Less than 12 months 12 months and greater Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) fair value loss fair value loss fair value loss Available for sale: U.S. Government sponsored entities $ 339 $ (5) $ 15,909 $ (725) $ 16,248 $ (730) State and political subdivisions — — 386 (45) 386 (45) Residential mortgage-backed securities 4,628 (221) 9,990 (1,402) 14,618 (1,623) Corporate and other securities 7,686 (434) 52,027 (3,528) 59,713 (3,962) Total $ 12,653 $ (660) $ 78,312 $ (5,700) $ 90,965 $ (6,360) Held to maturity: U.S. Government sponsored entities $ — $ — $ 23,386 $ (4,614) $ 23,386 $ (4,614) Residential mortgage-backed securities — $ — 4,680 (2,067) 4,680 (2,067) Total $ — $ — $ 28,066 $ (6,681) $ 28,066 $ (6,681) December 31, 2022 Less than 12 months 12 months and greater Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (In thousands) fair value loss fair value loss fair value loss Available for sale: U.S. Government sponsored entities $ 15,817 $ (622) $ 1,432 $ (34) $ 17,249 $ (656) State and political subdivisions 160 (5) 253 (17) 413 (22) Residential mortgage-backed securities 14,023 (1,448) 1,311 (206) 15,334 (1,654) Corporate and other securities 23,445 (966) 31,948 (2,635) 55,393 (3,601) Total temporarily impaired AFS securities $ 53,445 $ (3,041) $ 34,944 $ (2,892) $ 88,389 $ (5,933) Held to maturity: U.S. Government sponsored entities $ 15,659 $ (2,341) $ 7,031 $ (2,969) $ 22,690 $ (5,310) Residential mortgage-backed securities 4,707 (1,939) — — 4,707 (1,939) Total temporarily impaired HTM securities $ 20,366 $ (4,280) $ 7,031 $ (2,969) $ 27,397 $ (7,249) |
Equity Securities, Gains and Losses | The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2023 and 2022: For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Net unrealized losses occurring during the period on equity securities $ (164) $ (498) $ (709) $ (1,055) Net realized gains recognized during the period on equity securities sold during the period — — 222 — Net losses recognized during the reporting period on equity securities $ (164) $ (498) $ (487) $ (1,055) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans | |
Classification of Loans By Class | The following table sets forth the classification of loans by class, including unearned fees, deferred costs and excluding the allowance for loan losses as of June 30, 2023 and December 31, 2022: (In thousands) June 30, 2023 December 31, 2022 SBA loans held for investment $ 39,878 $ 38,468 SBA PPP loans 2,555 5,908 Commercial loans SBA 504 loans 31,657 35,077 Commercial other 130,737 117,566 Commercial real estate 931,756 903,126 Commercial real estate construction 161,882 131,774 Residential mortgage loans 633,414 605,091 Consumer loans Home equity 68,379 68,310 Consumer other 7,611 9,854 Residential construction loans 139,424 163,457 Total loans held for investment $ 2,147,293 $ 2,078,631 SBA loans held for sale 20,074 27,928 Total loans $ 2,167,367 $ 2,106,559 |
Aging Analysis of Past Due And Nonaccrual Loans by Loan Class | The following tables set forth an aging analysis of past due and nonaccrual loans as of June 30, 2023 and December 31, 2022: June 30, 2023 90+ days 30 ‑ 59 days 60 ‑ 89 days and still Total past (In thousands) past due past due accruing Nonaccrual due Current Total loans SBA loans held for investment $ — $ 192 $ — $ 3,591 $ 3,783 $ 36,095 $ 39,878 Commercial loans SBA 504 loans — — — — — 31,657 31,657 Commercial other — — — 630 630 130,107 130,737 Commercial real estate — — — 205 205 931,551 931,756 Commercial real estate construction — — — — — 161,882 161,882 Residential mortgage loans — 5,444 — 8,607 14,051 619,363 633,414 Consumer loans Home equity — — — — — 68,379 68,379 Consumer other 86 35 — — 121 7,490 7,611 Residential construction loans — — — 3,182 3,182 136,242 139,424 Total loans held for investment, excluding SBA PPP 86 5,671 — 16,215 21,972 2,122,766 2,144,738 SBA loans held for sale — — — — — 20,074 20,074 Total loans, excluding SBA PPP $ 86 $ 5,671 $ — $ 16,215 $ 21,972 $ 2,142,840 $ 2,164,812 December 31, 2022 90+ days 30 ‑ 59 days 60 ‑ 89 days and still Total past (In thousands) past due past due accruing Nonaccrual due Current Total loans SBA loans held for investment $ — $ 576 $ — $ 690 $ 1,266 $ 37,202 $ 38,468 Commercial loans SBA 504 loans — — — — — 35,077 35,077 Commercial other 198 300 — 777 1,275 116,291 117,566 Commercial real estate 22 188 — 805 1,015 902,111 903,126 Commercial real estate construction — — — — — 131,774 131,774 Residential mortgage loans — 982 — 3,361 4,343 600,748 605,091 Consumer loans Home equity — — — — — 68,310 68,310 Consumer other 18 7 — — 25 9,829 9,854 Residential construction loans — — — 3,432 3,432 160,025 163,457 Total loans held for investment, excluding SBA PPP 238 2,053 — 9,065 11,356 2,061,367 2,072,723 SBA loans held for sale 2,195 — — — 2,195 25,733 27,928 Total loans, excluding SBA PPP $ 2,433 $ 2,053 $ — $ 9,065 $ 13,551 $ 2,087,100 $ 2,100,651 |
Schedule of Loan Classification Risk by Loan Portfolio Classification by Origination Year | Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 2018 and Earlier Revolving Loans Amortized Cost Basis Total SBA loans held for investment Risk Rating: Pass $ 979 $ 7,339 $ 5,132 $ 6,247 $ 2,704 $ 11,627 $ - $ 34,028 Special Mention - - - 702 - 758 - 1,460 Substandard - 1,361 2,237 - - 792 - 4,390 Total SBA loans held for investment $ 979 $ 8,700 $ 7,369 $ 6,949 $ 2,704 $ 13,177 $ - $ 39,878 SBA loans held for investment Current-period gross writeoffs $ - $ - $ - $ - $ 113 $ - $ - $ 113 SBA PPP loans Risk Rating: Pass $ - $ - $ 2,555 $ - $ - $ - $ - $ 2,555 Special Mention - - - - - - - - Substandard - - - - - - - - Total SBA PPP loans $ - $ - $ 2,555 $ - $ - $ - $ - $ 2,555 Commercial loans Risk Rating: Pass $ 84,290 $ 345,498 $ 185,728 $ 138,087 $ 103,348 $ 286,754 $ 93,312 $ 1,237,017 Special Mention - 86 2,100 - 2,251 11,386 395 16,218 Substandard - - - 220 - 2,577 - 2,797 Total commercial loans $ 84,290 $ 345,584 $ 187,828 $ 138,307 $ 105,599 $ 300,717 $ 93,707 $ 1,256,032 Residential mortgage loans Risk Rating: Performing $ 69,505 $ 266,630 $ 77,180 $ 54,857 $ 34,294 $ 122,341 $ - $ 624,807 Nonperforming 1,711 2,331 2,413 795 276 1,081 - 8,607 Total residential mortgage loans $ 71,216 $ 268,961 $ 79,593 $ 55,652 $ 34,570 $ 123,422 $ - $ 633,414 Consumer loans Risk Rating: Performing $ 1,562 $ 5,438 $ 5,650 $ 724 $ 3,399 $ 8,321 $ 50,626 $ 75,720 Nonperforming - - - - - - 270 270 Total consumer loans $ 1,562 $ 5,438 $ 5,650 $ 724 $ 3,399 $ 8,321 $ 50,896 $ 75,990 Consumer loans Current-period gross writeoffs $ - $ - $ 345 $ - $ - $ - $ - $ 345 Residential construction Risk Rating: Performing $ 13,093 $ 76,151 $ 37,515 $ 7,751 $ 500 $ 1,232 $ - $ 136,242 Nonperforming - - 352 - - 1,795 1,035 3,182 Total residential construction loans $ 13,093 $ 76,151 $ 37,867 $ 7,751 $ 500 $ 3,027 $ 1,035 $ 139,424 Residential construction Current-period gross writeoffs $ - $ - $ - $ - $ - $ 500 $ 400 $ 900 Total loans held for investment $ 171,140 $ 704,834 $ 320,862 $ 209,383 $ 146,772 $ 448,664 $ 145,638 $ 2,147,293 |
Loan Portfolio by Class According to Their Credit Quality Indicators | December 31, 2022 SBA & Commercial loans - Internal risk ratings (In thousands) Pass Special mention Substandard Total SBA loans held for investment $ 37,163 $ 558 $ 747 $ 38,468 SBA PPP loans 5,908 — — 5,908 Commercial loans SBA 504 loans 35,077 — — 35,077 Commercial other 110,107 6,220 1,239 117,566 Commercial real estate 894,110 6,228 2,788 903,126 Commercial real estate construction 131,774 — — 131,774 Total commercial loans 1,171,068 12,448 4,027 1,187,543 Total SBA and commercial loans $ 1,214,139 $ 13,006 $ 4,774 $ 1,231,919 Residential mortgage, Consumer & Residential construction loans - Performing/Nonperforming (In thousands) Performing Nonperforming Total Residential mortgage loans $ 601,730 $ 3,361 $ 605,091 Consumer loans Home equity 68,310 — 68,310 Consumer other 9,854 — 9,854 Total consumer loans 78,164 — 78,164 Residential construction loans 160,025 3,432 163,457 Total residential mortgage, consumer and residential construction loans $ 839,919 $ 6,793 $ 846,712 |
Schedule of Amortized Cost Basis of Loans Modified, Disaggregated by Class of Gross Loans and Type of Concession Granted | The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of gross loans and type of concession granted (numbers in thousands) during the six months ended June 30, 2023: Term Extension Amortized Cost Basis % of Total Class of June 30, 2023 Gross Loans Commercial $ 954 0.08 % |
Allowance for Credit Losses a_2
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments | |
Activity in the Allowance for Loan Losses by Portfolio Segment | The following tables detail the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2023 and 2022: For the three months ended June 30, 2023 Residential (In thousands) SBA Commercial Residential Consumer construction Total Balance, beginning of period $ 1,103 $ 15,299 $ 6,135 $ 1,022 $ 2,642 $ 26,201 Charge-offs — — — (225) (900) (1,125) Recoveries 15 96 — 24 — 135 Net (charge-offs) recoveries 15 96 — (201) (900) (990) Provision for (credit to) credit losses charged to expense 438 121 302 24 (108) 777 Balance, end of period $ 1,556 $ 15,516 $ 6,437 $ 845 $ 1,634 $ 25,988 For the three months ended June 30, 2022 Residential (In thousands) SBA Commercial Residential Consumer construction Total Balance, beginning of period $ 941 $ 14,705 $ 4,284 $ 642 $ 1,596 $ 22,168 Charge-offs — (501) — (40) — a (541) Recoveries 6 32 1 4 — 43 Net recoveries (charge-offs) 6 (469) 1 (36) — (498) Provision for (credit to) credit losses charged to expense (189) 672 501 197 7 1,188 Balance, end of period $ 758 $ 14,908 $ 4,786 $ 803 $ 1,603 $ 22,858 For the six months ended June 30, 2023 Residential (In thousands) SBA Commercial Residential Consumer construction Total Balance, beginning of period $ 875 $ 15,254 $ 5,450 $ 990 $ 2,627 $ 25,196 Effect of adopting Accounting Standards Update ("ASU") No. 2016-13 ("CECL") 163 171 376 101 36 847 Charge-offs (113) — — (345) (900) (1,358) Recoveries 15 367 — 36 — 418 Net (charge-offs) recoveries (98) 367 — (309) (900) (940) Provision for (credit to) loan losses charged to expense 616 (276) 611 63 (129) 885 Balance, end of period $ 1,556 $ 15,516 $ 6,437 $ 845 $ 1,634 $ 25,988 For the six months ended June 30, 2022 SBA held for Residential (In thousands) investment Commercial Residential Consumer construction Total Balance, beginning of period $ 1,074 $ 15,053 $ 4,114 $ 671 $ 1,390 $ 22,302 Charge-offs — (501) — (46) — (547) Recoveries 28 61 1 4 — 94 Net (charge-offs) recoveries 28 (440) 1 (42) — (453) Provision (credit) for loan losses charged to expense (344) 295 671 174 213 1,009 Balance, end of period $ 758 $ 14,908 $ 4,786 $ 803 $ 1,603 $ 22,858 |
Allowance for Credit Losses on Financing Receivables | The following tables present loans and their related allowance for credit losses, by portfolio segment, as of June 30, 2023 and December 31, 2022: June 30, 2023 Residential (In thousands) SBA Commercial Residential Consumer construction Unallocated Total Allowance for credit losses ending balance: Individually evaluated $ 530 $ — $ 147 $ — $ 274 a $ — $ 951 Collectively evaluated 1,026 15,516 6,290 845 1,360 — 25,037 Total $ 1,556 $ 15,516 $ 6,437 $ 845 $ 1,634 $ — $ 25,988 Loan ending balances: Individually evaluated $ 357 $ 449 $ 7,787 $ — $ 3,916 $ — $ 12,509 Collectively evaluated 62,150 1,255,583 625,627 75,990 135,508 — 2,154,858 Total $ 62,507 $ 1,256,032 $ 633,414 $ 75,990 $ 139,424 $ — $ 2,167,367 December 31, 2022 Residential (In thousands) SBA Commercial Residential Consumer construction Unallocated Total Allowance for credit losses ending balance: Individually evaluated for impairment $ 115 $ 516 $ 36 $ — $ 1,112 a $ — $ 1,779 Collectively evaluated for impairment 760 14,738 5,414 990 1,515 — 23,417 Total $ 875 $ 15,254 $ 5,450 $ 990 $ 2,627 $ — $ 25,196 Loan ending balances: Individually evaluated for impairment $ 690 $ 3,101 $ 3,361 $ — $ 3,432 $ — $ 10,584 Collectively evaluated for impairment 71,614 1,184,442 601,730 78,164 160,025 — 2,095,975 Total $ 72,304 $ 1,187,543 $ 605,091 $ 78,164 $ 163,457 $ — $ 2,106,559 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Financial Instruments and Hedging Activities | |
Summary of Interest Rate Swaps | A summary of the Company’s outstanding interest rate swap agreements used to hedge variable rate debt at June 30, 2023 and December 31, 2022, respectively is as follows: (In thousands, except percentages and years) June 30, 2023 December 31, 2022 Notional amount $ 20,000 $ 20,000 Fair value $ 1,402 $ 1,537 Weighted average pay rate 0.83 % 0.83 % Weighted average receive rate 5.14 % 1.50 % Weighted average maturity in years 1.70 2.57 Number of contracts 1 1 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Gain (Loss) recognized in OCI $ 100 $ (735) $ (135) $ 738 Gain reclassified from AOCI into net income $ 219 $ — $ 418 $ — |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Transactions under the Company's stock option plans | Weighted Weighted average average remaining Aggregate exercise contractual intrinsic Shares price life in years value Outstanding at December 31, 2022 559,499 $ 18.09 5.9 $ 5,168,740 Options granted — — Options exercised (50,935) 19.61 Options forfeited (666) 18.64 Options expired — — Outstanding at June 30, 2023 507,898 $ 17.94 5.4 $ 2,870,246 Exercisable at June 30, 2023 468,074 $ 17.84 5.2 $ 2,689,947 |
Schedule of Information About Options Exercised | For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Number of options exercised 13,734 15,335 50,935 62,709 Total intrinsic value of options exercised $ 74,099 $ 120,065 $ 316,003 $ 866,357 Cash received from options exercised $ 244,991 $ 314,323 $ 998,885 $ 953,537 Tax deduction realized from options $ 22,292 $ 36,121 $ 95,069 $ 260,643 |
Schedule of Stock Options, by Exercise Price Range | Options outstanding Options exercisable Weighted average Weighted Weighted Options remaining contractual average Options average Range of exercise prices outstanding life (in years) exercise price exercisable exercise price $7.25 - 16.51 136,233 3.6 $ 11.97 136,233 $ 11.97 16.52 - 19.26 121,165 6.2 18.03 97,674 18.04 19.27 - 20.88 132,300 6.1 20.34 115,967 20.31 20.89 - 22.57 118,200 5.9 22.03 118,200 22.03 Total 507,898 5.4 $ 17.94 468,074 $ 17.84 |
Schedule of Nonvested Share Activity | Average grant Shares date fair value Nonvested restricted stock at December 31, 2022 164,570 $ 24.77 Granted 55,500 22.81 Cancelled (2,850) 26.70 Vested (37,723) 23.26 Nonvested restricted stock at June 30, 2023 179,497 $ 24.45 |
Restricted Stock Grants | For the three months ended June 30, For the six months ended June 30, 2023 2022 2023 2022 Number of shares granted 37,500 1,000 55,500 71,000 Average grant date fair value $ 20.64 $ 28.20 $ 22.81 $ 27.53 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Allocation of Share-based Compensation Costs | For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Compensation expense $ 79 $ 138 $ 164 $ 302 Income tax benefit $ 23 $ 40 $ 47 $ 87 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Allocation of Share-based Compensation Costs | For the three months ended June 30, For the six months ended June 30, (In thousands) 2023 2022 2023 2022 Compensation expense $ 344 $ 301 $ 676 $ 532 Income tax benefit $ 100 $ 87 $ 195 $ 154 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Regulatory Capital | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | At June 30, 2023 At December 31, 2022 Company Bank Company Bank CBLR 10.49 % 10.07 % 10.88 % 10.34 % |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | ||
Investment securities portfolio as percentage of total assets | 5.40% | |
Increase to allowance for credit losses | $ 25,988 | |
Reserve for unfunded credit commitments | 24,675 | $ 24,192 |
Retained earnings | $ 173,823 | 156,958 |
Accounting Standards Update No. 2016-13 | Cumulative effect, period of adjustment | ||
Property, Plant and Equipment | ||
Increase to allowance for credit losses | 800 | |
Reserve for unfunded credit commitments | 100 | |
Retained earnings | $ (600) |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Income per Share | |||||
Net income | $ 9,700 | $ 10,287 | $ 9,451 | $ 19,987 | $ 18,559 |
Weighted average common shares outstanding - Basic | 10,103 | 10,504 | 10,319 | 10,475 | |
Plus: Potential dilutive common stock equivalents (in shares) | 100 | 202 | 125 | 210 | |
Weighted average common shares outstanding - Diluted (in shares) | 10,203 | 10,706 | 10,444 | 10,685 | |
Net income per common share - Basic | $ 0.96 | $ 0.90 | $ 1.94 | $ 1.77 | |
Net income per common share - Diluted | $ 0.95 | $ 0.88 | $ 1.91 | $ 1.74 | |
Stock options and common stock excluded from the income per share calculation as their effect would have been anti-dilutive (in shares) | 50 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 240,459 | $ 239,227 | $ 239,227 | ||
Period change | (444) | 81 | $ (3,230) | (363) | $ (2,944) |
Ending balance | 244,073 | 240,459 | 244,073 | ||
Net unrealized (losses) gains on securities | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (4,115) | (4,381) | (784) | (4,381) | 29 |
Other comprehensive (loss) income before reclassifications | (516) | (3,054) | (250) | (4,306) | |
Less amounts reclassified from accumulated other comprehensive loss | (394) | (833) | |||
Period change | (516) | (2,660) | (250) | (3,473) | |
Ending balance | (4,631) | (4,115) | (3,444) | (4,631) | (3,444) |
Net unrealized gains (losses) from cash flow hedges | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | 936 | 1,121 | 1,392 | 1,121 | 293 |
Other comprehensive (loss) income before reclassifications | 228 | (570) | (412) | 529 | |
Less amounts reclassified from accumulated other comprehensive loss | 156 | (299) | |||
Period change | 72 | (570) | (113) | 529 | |
Ending balance | 1,008 | 936 | 822 | 1,008 | 822 |
Accumulated other comprehensive income (loss) | |||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||
Beginning balance | (3,179) | (3,260) | 608 | (3,260) | 322 |
Other comprehensive (loss) income before reclassifications | (288) | (3,624) | (662) | (3,777) | |
Less amounts reclassified from accumulated other comprehensive loss | 156 | (394) | (299) | (833) | |
Period change | (444) | 81 | (3,230) | (363) | (2,944) |
Ending balance | $ (3,623) | $ (3,179) | $ (2,622) | $ (3,623) | $ (2,622) |
Fair Value - Fair Value on Recu
Fair Value - Fair Value on Recurring Basis - Narrative (Details) $ in Thousands | Jun. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Securities available for sale | $ 92,966 | |
Equity securities | $ 8,205 | $ 9,793 |
Corporate Bond Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities classified as Level 3 assets | security | 2 |
Fair Value - Assets And Liabili
Fair Value - Assets And Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | $ 95,393 | |
Debt securities available-for-sale | $ 92,966 | |
Equity securities | 8,205 | 9,793 |
U.S. Government sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 16,305 | |
Debt securities available-for-sale | 16,248 | |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 613 | |
Debt securities available-for-sale | 586 | |
Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 15,475 | |
Debt securities available-for-sale | 14,676 | |
Corporate and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 63,000 | |
Debt securities available-for-sale | 61,456 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 95,393 | |
Debt securities available-for-sale | 92,966 | |
Equity securities | 8,205 | 9,793 |
Swap agreements | 1,402 | 1,537 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Equity securities | 8,205 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 90,718 | |
Debt securities available-for-sale | 88,635 | |
Equity securities | 9,793 | |
Swap agreements | 1,402 | 1,537 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 4,675 | |
Debt securities available-for-sale | 4,331 | |
Recurring | U.S. Government sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 16,305 | |
Debt securities available-for-sale | 16,248 | |
Recurring | U.S. Government sponsored entities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 16,305 | |
Debt securities available-for-sale | 16,248 | |
Recurring | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 613 | |
Debt securities available-for-sale | 586 | |
Recurring | State and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 613 | |
Debt securities available-for-sale | 586 | |
Recurring | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 15,475 | |
Debt securities available-for-sale | 14,676 | |
Recurring | Residential mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 15,475 | |
Debt securities available-for-sale | 14,676 | |
Recurring | Corporate and other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 63,000 | |
Debt securities available-for-sale | 61,456 | |
Recurring | Corporate and other securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 58,325 | |
Debt securities available-for-sale | 57,125 | |
Recurring | Corporate and other securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities available-for-sale | 4,675 | |
Debt securities available-for-sale | 4,331 | |
Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Swap agreements | 1,402 | 1,537 |
Recurring | Interest Rate Swap | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Swap agreements | $ 1,402 | $ 1,537 |
Fair Value - Assets and Liabi_2
Fair Value - Assets and Liabilities Subject to Fair Value Adjustments on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Collateral-dependent loans | $ 11,800 | $ 8,800 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
OREO | 251 | |
Collateral-dependent loans | 11,558 | 8,803 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
OREO | 251 | |
Collateral-dependent loans | $ 11,558 | $ 8,803 |
Fair Value - Fair Value on a No
Fair Value - Fair Value on a Nonrecurring Basis Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value | ||
Valuation allowance | $ 1 | $ 1.8 |
Fair Value - Carrying Amount an
Fair Value - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Significant Unobservable Inputs (Level 3) | ||
Financial liabilities: | ||
Collateral-dependent loans | $ 11,800 | $ 8,800 |
Carrying amount | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities | 137,061 | 140,946 |
SBA loans held for sale | 20,074 | 27,928 |
Loans, net of allowance for loan losses | 2,121,305 | 2,053,435 |
Financial liabilities: | ||
Deposits | 1,849,528 | 1,787,528 |
Borrowed funds and subordinated debentures | 433,310 | 393,310 |
Carrying amount | Significant Unobservable Inputs (Level 3) | Recurring | Corporate and other securities | ||
Financial assets: | ||
Securities | 5,300 | |
Estimated fair value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Securities | 130,435 | 133,764 |
SBA loans held for sale | 25,031 | 30,141 |
Loans, net of allowance for loan losses | 2,032,930 | 1,990,010 |
Financial liabilities: | ||
Deposits | 1,719,293 | 1,772,270 |
Borrowed funds and subordinated debentures | 431,459 | $ 391,312 |
Estimated fair value | Significant Unobservable Inputs (Level 3) | Recurring | Corporate and other securities | ||
Financial assets: | ||
Securities | $ 4,300 |
Securities - Amortized Cost to
Securities - Amortized Cost to Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale: | ||
Amortized cost | $ 99,085 | |
Amortized cost | $ 101,188 | |
Gross unrealized gains | 241 | 138 |
Gross unrealized losses | (6,360) | (5,933) |
Securities available for sale | 95,393 | |
Securities available for sale | 92,966 | |
Held to maturity: | ||
Amortized cost | 35,890 | |
Amortized cost | 35,760 | |
Gross unrealized gains | 55 | 67 |
Gross unrealized losses | (6,681) | (7,249) |
Estimated fair value | 29,264 | 28,578 |
U.S. Government sponsored entities | ||
Available for sale: | ||
Amortized cost | 16,978 | |
Amortized cost | 16,961 | |
Gross unrealized losses | (730) | (656) |
Securities available for sale | 16,305 | |
Securities available for sale | 16,248 | |
Held to maturity: | ||
Amortized cost | 28,000 | |
Amortized cost | 28,000 | |
Gross unrealized losses | (4,614) | (5,310) |
Estimated fair value | 23,386 | 22,690 |
State and political subdivisions | ||
Available for sale: | ||
Amortized cost | 631 | |
Amortized cost | 635 | |
Gross unrealized losses | (45) | (22) |
Securities available for sale | 613 | |
Securities available for sale | 586 | |
Held to maturity: | ||
Amortized cost | 1,143 | |
Amortized cost | 1,115 | |
Gross unrealized gains | 55 | 67 |
Estimated fair value | 1,198 | 1,182 |
Residential mortgage-backed securities | ||
Available for sale: | ||
Amortized cost | 16,270 | |
Amortized cost | 17,097 | |
Gross unrealized gains | 29 | 32 |
Gross unrealized losses | (1,623) | (1,654) |
Securities available for sale | 15,475 | |
Securities available for sale | 14,676 | |
Held to maturity: | ||
Amortized cost | 6,747 | |
Amortized cost | 6,645 | |
Gross unrealized losses | (2,067) | (1,939) |
Estimated fair value | 4,680 | 4,706 |
Corporate and other securities | ||
Available for sale: | ||
Amortized cost | 65,206 | |
Amortized cost | 66,495 | |
Gross unrealized gains | 212 | 106 |
Gross unrealized losses | (3,962) | (3,601) |
Securities available for sale | $ 63,000 | |
Securities available for sale | $ 61,456 |
Securities - Securities By Cont
Securities - Securities By Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale at fair value: | ||
Within one year, Amount | $ 2,149 | |
After one through five years, Amount | 28,051 | |
After five through ten years, Amount | 12,348 | |
After ten years, Amount | 50,418 | |
Securities available for sale | $ 95,393 | |
Securities available for sale | 92,966 | |
Held to maturity at cost | ||
After five through ten years, Amount | 3,000 | |
After ten years, Amount | 32,890 | |
Securities held to maturity | 35,890 | |
U.S. Government sponsored entities | ||
Available for sale at fair value: | ||
Within one year, Amount | 1,949 | |
After one through five years, Amount | 14,299 | |
Securities available for sale | 16,305 | |
Securities available for sale | 16,248 | |
Held to maturity at cost | ||
After five through ten years, Amount | 3,000 | |
After ten years, Amount | 25,000 | |
Securities held to maturity | 28,000 | |
State and political subdivisions | ||
Available for sale at fair value: | ||
Within one year, Amount | 200 | |
After one through five years, Amount | 160 | |
After ten years, Amount | 226 | |
Securities available for sale | 613 | |
Securities available for sale | 586 | |
Held to maturity at cost | ||
After ten years, Amount | 1,143 | |
Securities held to maturity | 1,143 | |
Residential mortgage-backed securities | ||
Available for sale at fair value: | ||
After one through five years, Amount | 513 | |
After five through ten years, Amount | 765 | |
After ten years, Amount | 13,398 | |
Securities available for sale | 15,475 | |
Securities available for sale | 14,676 | |
Held to maturity at cost | ||
After ten years, Amount | 6,747 | |
Securities held to maturity | 6,747 | |
Corporate and other securities | ||
Available for sale at fair value: | ||
After one through five years, Amount | 13,079 | |
After five through ten years, Amount | 11,583 | |
After ten years, Amount | 36,794 | |
Securities available for sale | $ 63,000 | |
Securities available for sale | $ 61,456 |
Securities - Securities in Unre
Securities - Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Available for sale: | ||
Available for sale, Less than 12 months, Estimated fair value | $ 12,653 | $ 53,445 |
Available for sale, Less than 12 months, Unrealized loss | (660) | (3,041) |
Available for sale, 12 months and greater, Estimated fair value | 78,312 | 34,944 |
Available for sale, 12 Months and greater Unrealized loss | (5,700) | (2,892) |
Available for sale, Estimated fair value | 90,965 | 88,389 |
Available for sale, Unrealized loss | (6,360) | (5,933) |
Held to maturity: | ||
Held to maturity, Less than 12 months Estimated fair value | 20,366 | |
Held to maturity, Less than 12 months Unrealized loss | (4,280) | |
Held to maturity, 12 months and greater, Estimated fair value | 28,066 | 7,031 |
Held to maturity, 12 months and greater, Unrealized loss | (6,681) | (2,969) |
Held to maturity, Total Estimated fair value | 28,066 | 27,397 |
Held to maturity, Total Unrealized loss | (6,681) | (7,249) |
U.S. Government sponsored entities | ||
Available for sale: | ||
Available for sale, Less than 12 months, Estimated fair value | 339 | 15,817 |
Available for sale, Less than 12 months, Unrealized loss | (5) | (622) |
Available for sale, 12 months and greater, Estimated fair value | 15,909 | 1,432 |
Available for sale, 12 Months and greater Unrealized loss | (725) | (34) |
Available for sale, Estimated fair value | 16,248 | 17,249 |
Available for sale, Unrealized loss | (730) | (656) |
Held to maturity: | ||
Held to maturity, Less than 12 months Estimated fair value | 15,659 | |
Held to maturity, Less than 12 months Unrealized loss | (2,341) | |
Held to maturity, 12 months and greater, Estimated fair value | 23,386 | 7,031 |
Held to maturity, 12 months and greater, Unrealized loss | (4,614) | (2,969) |
Held to maturity, Total Estimated fair value | 23,386 | 22,690 |
Held to maturity, Total Unrealized loss | (4,614) | (5,310) |
State and political subdivisions | ||
Available for sale: | ||
Available for sale, Less than 12 months, Estimated fair value | 160 | |
Available for sale, Less than 12 months, Unrealized loss | (5) | |
Available for sale, 12 months and greater, Estimated fair value | 386 | 253 |
Available for sale, 12 Months and greater Unrealized loss | (45) | (17) |
Available for sale, Estimated fair value | 386 | 413 |
Available for sale, Unrealized loss | (45) | (22) |
Residential mortgage-backed securities | ||
Available for sale: | ||
Available for sale, Less than 12 months, Estimated fair value | 4,628 | 14,023 |
Available for sale, Less than 12 months, Unrealized loss | (221) | (1,448) |
Available for sale, 12 months and greater, Estimated fair value | 9,990 | 1,311 |
Available for sale, 12 Months and greater Unrealized loss | (1,402) | (206) |
Available for sale, Estimated fair value | 14,618 | 15,334 |
Available for sale, Unrealized loss | (1,623) | (1,654) |
Held to maturity: | ||
Held to maturity, Less than 12 months Estimated fair value | 4,707 | |
Held to maturity, Less than 12 months Unrealized loss | (1,939) | |
Held to maturity, 12 months and greater, Estimated fair value | 4,680 | |
Held to maturity, 12 months and greater, Unrealized loss | (2,067) | |
Held to maturity, Total Estimated fair value | 4,680 | 4,707 |
Held to maturity, Total Unrealized loss | (2,067) | (1,939) |
Corporate and other securities | ||
Available for sale: | ||
Available for sale, Less than 12 months, Estimated fair value | 7,686 | 23,445 |
Available for sale, Less than 12 months, Unrealized loss | (434) | (966) |
Available for sale, 12 months and greater, Estimated fair value | 52,027 | 31,948 |
Available for sale, 12 Months and greater Unrealized loss | (3,528) | (2,635) |
Available for sale, Estimated fair value | 59,713 | 55,393 |
Available for sale, Unrealized loss | $ (3,962) | $ (3,601) |
Securities - Realized Gains (Lo
Securities - Realized Gains (Losses) on Debt Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Available for sale: | ||||
Impairment for available for sale | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for credit losses for available for sale | 0 | 0 | 0 | 0 |
Realized gains or losses | 0 | 0 | 0 | 0 |
Held to maturity: | ||||
Realized gains | 0 | 0 | 0 | 0 |
Realized losses | 0 | 0 | 0 | 0 |
Impairment for held to maturity | 0 | 0 | 0 | 0 |
Allowance for credit losses for held to maturity | $ 0 | $ 0 | $ 0 | $ 0 |
Securities - Realized Gains (_2
Securities - Realized Gains (Losses) for Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Securities | ||||
Net unrealized losses occurring during the period on equity securities | $ (164) | $ (498) | $ (709) | $ (1,055) |
Net realized gains recognized during the period on equity securities sold during the period | 222 | |||
Net losses recognized during the reporting period on equity securities | $ (164) | $ (498) | $ (487) | $ (1,055) |
Loans - Classification of Loans
Loans - Classification of Loans By Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 2,106,559 | |
Total Loans | $ 2,167,367 | |
SBA 504 loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 35,077 | |
Total Loans | 31,657 | |
SBA loans held for investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 38,468 | |
Total Loans | 39,878 | |
SBA PPP loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 5,908 | |
Total Loans | 2,555 | |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,187,543 | |
Total Loans | 1,256,032 | |
Commercial loans | SBA 504 loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 35,077 | |
Commercial loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 903,126 | |
Total Loans | 931,756 | |
Commercial loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 131,774 | |
Total Loans | 161,882 | |
Commercial loans | Consumer other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 117,566 | |
Total Loans | 130,737 | |
Residential mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 605,091 | |
Total Loans | 633,414 | |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 78,164 | |
Total Loans | 75,990 | |
Consumer loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 68,310 | |
Total Loans | 68,379 | |
Consumer loans | Consumer other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 9,854 | |
Total Loans | 7,611 | |
Residential construction loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 163,457 | |
Total Loans | 139,424 | |
Total | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 2,078,631 | |
Total Loans | 2,147,293 | |
SBA loans held for sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 27,928 | |
Total Loans | $ 20,074 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Residential loans in process of foreclosure | $ 13.7 | $ 2.1 |
Financing Receivable, Practical Expedient, Accrued Interest Exclusion [true false] | true | |
Accrued interest on securities | $ 1.3 | |
Accrued interest on loans | $ 12.6 | |
Maximum | ||
Guarantee percentage of SBA Loan | 90% | |
Commercial properties | ||
Other real estate owned | $ 0.3 | $ 0 |
Loans - Aging Analysis of Past
Loans - Aging Analysis of Past Due and Nonaccrual Loans by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | $ 2,164,812 | $ 2,100,651 |
Total loans | 2,106,559 | |
Total loans | 2,167,367 | |
SBA 504 loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 35,077 | |
Total loans | 31,657 | |
30-59 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 86 | 2,433 |
60-89 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 5,671 | 2,053 |
Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 16,215 | 9,065 |
Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 21,972 | 13,551 |
Current | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 2,142,840 | 2,087,100 |
SBA loans held for investment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 39,878 | 38,468 |
Total loans | 38,468 | |
Total loans | 39,878 | |
SBA loans held for investment | 60-89 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 192 | 576 |
SBA loans held for investment | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 3,591 | 690 |
SBA loans held for investment | Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 3,783 | 1,266 |
SBA loans held for investment | Current | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 36,095 | 37,202 |
SBA PPP loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,908 | |
Total loans | 2,555 | |
Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,187,543 | |
Total loans | 1,256,032 | |
Commercial loans | SBA 504 loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 31,657 | 35,077 |
Total loans | 35,077 | |
Commercial loans | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 931,756 | 903,126 |
Total loans | 903,126 | |
Total loans | 931,756 | |
Commercial loans | Commercial real estate construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 161,882 | 131,774 |
Total loans | 131,774 | |
Total loans | 161,882 | |
Commercial loans | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 130,737 | 117,566 |
Total loans | 117,566 | |
Total loans | 130,737 | |
Commercial loans | 30-59 days past due | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 22 | |
Commercial loans | 30-59 days past due | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 198 | |
Commercial loans | 60-89 days past due | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 188 | |
Commercial loans | 60-89 days past due | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 300 | |
Commercial loans | Nonaccrual | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 205 | 805 |
Commercial loans | Nonaccrual | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 630 | 777 |
Commercial loans | Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 205 | 1,015 |
Commercial loans | Past Due | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 630 | 1,275 |
Commercial loans | Current | SBA 504 loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 31,657 | 35,077 |
Commercial loans | Current | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 931,551 | 902,111 |
Commercial loans | Current | Commercial real estate construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 161,882 | 131,774 |
Commercial loans | Current | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 130,107 | 116,291 |
Residential mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 633,414 | 605,091 |
Total loans | 605,091 | |
Total loans | 633,414 | |
Residential mortgage loans | 60-89 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 5,444 | 982 |
Residential mortgage loans | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 8,607 | 3,361 |
Residential mortgage loans | Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 14,051 | 4,343 |
Residential mortgage loans | Current | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 619,363 | 600,748 |
Consumer loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 78,164 | |
Total loans | 75,990 | |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 68,379 | 68,310 |
Total loans | 68,310 | |
Total loans | 68,379 | |
Consumer loans | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 7,611 | 9,854 |
Total loans | 9,854 | |
Total loans | 7,611 | |
Consumer loans | 30-59 days past due | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 86 | 18 |
Consumer loans | 60-89 days past due | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 35 | 7 |
Consumer loans | Past Due | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 121 | 25 |
Consumer loans | Current | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 68,379 | 68,310 |
Consumer loans | Current | Consumer other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 7,490 | 9,829 |
Residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 139,424 | 163,457 |
Total loans | 163,457 | |
Total loans | 139,424 | |
Residential construction loans | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 3,182 | 3,432 |
Residential construction loans | Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 3,182 | 3,432 |
Residential construction loans | Current | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 136,242 | 160,025 |
Residential mortgage, consumer and residential construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 846,712 | |
Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 2,144,738 | 2,072,723 |
Total loans | 2,078,631 | |
Total loans | 2,147,293 | |
Total | 30-59 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 86 | 238 |
Total | 60-89 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 5,671 | 2,053 |
Total | Nonaccrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 16,215 | 9,065 |
Total | Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 21,972 | 11,356 |
Total | Current | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 2,122,766 | 2,061,367 |
SBA loans held for sale | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 27,928 | |
Total loans | 20,074 | |
SBA loans held for sale | 30-59 days past due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 2,195 | |
SBA loans held for sale | Past Due | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | 2,195 | |
SBA loans held for sale | Current | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans, excluding SBA PPP | $ 20,074 | $ 25,733 |
Loans - Risk by loan portfolio
Loans - Risk by loan portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 2,106,559 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | $ 2,167,367 | $ 2,167,367 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
Total loans | 1,125 | ||
SBA 504 loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35,077 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | 31,657 | 31,657 | |
SBA loans held for investment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 38,468 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 979 | 979 | |
2022 | 8,700 | 8,700 | |
2021 | 7,369 | 7,369 | |
2020 | 6,949 | 6,949 | |
2019 | 2,704 | 2,704 | |
2018 and Earlier | 13,177 | 13,177 | |
Total Loans | 39,878 | 39,878 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2019 | 113 | ||
Total loans | 113 | ||
SBA and commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,231,919 | ||
SBA PPP loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,908 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2021 | 2,555 | 2,555 | |
Total Loans | 2,555 | 2,555 | |
Commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,187,543 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 84,290 | 84,290 | |
2022 | 345,584 | 345,584 | |
2021 | 187,828 | 187,828 | |
2020 | 138,307 | 138,307 | |
2019 | 105,599 | 105,599 | |
2018 and Earlier | 300,717 | 300,717 | |
Revolving Loans Amortized Cost Basis | 93,707 | 93,707 | |
Total Loans | 1,256,032 | 1,256,032 | |
Commercial loans | SBA 504 loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35,077 | ||
Commercial loans | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 903,126 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | 931,756 | 931,756 | |
Commercial loans | Commercial real estate construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 131,774 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | 161,882 | 161,882 | |
Commercial loans | Consumer other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 117,566 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | 130,737 | 130,737 | |
Residential mortgage loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 605,091 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 71,216 | 71,216 | |
2022 | 268,961 | 268,961 | |
2021 | 79,593 | 79,593 | |
2020 | 55,652 | 55,652 | |
2019 | 34,570 | 34,570 | |
2018 and Earlier | 123,422 | 123,422 | |
Total Loans | 633,414 | 633,414 | |
Consumer loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 78,164 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 1,562 | 1,562 | |
2022 | 5,438 | 5,438 | |
2021 | 5,650 | 5,650 | |
2020 | 724 | 724 | |
2019 | 3,399 | 3,399 | |
2018 and Earlier | 8,321 | 8,321 | |
Revolving Loans Amortized Cost Basis | 50,896 | 50,896 | |
Total Loans | 75,990 | 75,990 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2021 | 345 | ||
Total loans | 225 | 345 | |
Consumer loans | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 68,310 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | 68,379 | 68,379 | |
Consumer loans | Consumer other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 9,854 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total Loans | 7,611 | 7,611 | |
Residential construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 163,457 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 13,093 | 13,093 | |
2022 | 76,151 | 76,151 | |
2021 | 37,867 | 37,867 | |
2020 | 7,751 | 7,751 | |
2019 | 500 | 500 | |
2018 and Earlier | 3,027 | 3,027 | |
Revolving Loans Amortized Cost Basis | 1,035 | 1,035 | |
Total Loans | 139,424 | 139,424 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | |||
2018 and Earlier | 500 | ||
Revolving Loans Amortized Cost Basis | 400 | ||
Total loans | 900 | 900 | |
Total | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,078,631 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 171,140 | 171,140 | |
2022 | 704,834 | 704,834 | |
2021 | 320,862 | 320,862 | |
2020 | 209,383 | 209,383 | |
2019 | 146,772 | 146,772 | |
2018 and Earlier | 448,664 | 448,664 | |
Revolving Loans Amortized Cost Basis | 145,638 | 145,638 | |
Total Loans | 2,147,293 | 2,147,293 | |
Residential mortgage, consumer and residential construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 846,712 | ||
Performing | Residential mortgage loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 601,730 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 69,505 | 69,505 | |
2022 | 266,630 | 266,630 | |
2021 | 77,180 | 77,180 | |
2020 | 54,857 | 54,857 | |
2019 | 34,294 | 34,294 | |
2018 and Earlier | 122,341 | 122,341 | |
Total Loans | 624,807 | 624,807 | |
Performing | Consumer loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 78,164 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 1,562 | 1,562 | |
2022 | 5,438 | 5,438 | |
2021 | 5,650 | 5,650 | |
2020 | 724 | 724 | |
2019 | 3,399 | 3,399 | |
2018 and Earlier | 8,321 | 8,321 | |
Revolving Loans Amortized Cost Basis | 50,626 | 50,626 | |
Total Loans | 75,720 | 75,720 | |
Performing | Consumer loans | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 68,310 | ||
Performing | Consumer loans | Consumer other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 9,854 | ||
Performing | Residential construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 160,025 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 13,093 | 13,093 | |
2022 | 76,151 | 76,151 | |
2021 | 37,515 | 37,515 | |
2020 | 7,751 | 7,751 | |
2019 | 500 | 500 | |
2018 and Earlier | 1,232 | 1,232 | |
Total Loans | 136,242 | 136,242 | |
Performing | Residential mortgage, consumer and residential construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 839,919 | ||
Nonperforming | Residential mortgage loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,361 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 1,711 | 1,711 | |
2022 | 2,331 | 2,331 | |
2021 | 2,413 | 2,413 | |
2020 | 795 | 795 | |
2019 | 276 | 276 | |
2018 and Earlier | 1,081 | 1,081 | |
Total Loans | 8,607 | 8,607 | |
Nonperforming | Consumer loans | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Revolving Loans Amortized Cost Basis | 270 | 270 | |
Total Loans | 270 | 270 | |
Nonperforming | Residential construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,432 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2021 | 352 | 352 | |
2018 and Earlier | 1,795 | 1,795 | |
Revolving Loans Amortized Cost Basis | 1,035 | 1,035 | |
Total Loans | 3,182 | 3,182 | |
Nonperforming | Residential mortgage, consumer and residential construction loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,793 | ||
Pass | SBA loans held for investment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 37,163 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 979 | 979 | |
2022 | 7,339 | 7,339 | |
2021 | 5,132 | 5,132 | |
2020 | 6,247 | 6,247 | |
2019 | 2,704 | 2,704 | |
2018 and Earlier | 11,627 | 11,627 | |
Total Loans | 34,028 | 34,028 | |
Pass | SBA and commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,214,139 | ||
Pass | SBA PPP loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,908 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2021 | 2,555 | 2,555 | |
Total Loans | 2,555 | 2,555 | |
Pass | Commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,171,068 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2023 | 84,290 | 84,290 | |
2022 | 345,498 | 345,498 | |
2021 | 185,728 | 185,728 | |
2020 | 138,087 | 138,087 | |
2019 | 103,348 | 103,348 | |
2018 and Earlier | 286,754 | 286,754 | |
Revolving Loans Amortized Cost Basis | 93,312 | 93,312 | |
Total Loans | 1,237,017 | 1,237,017 | |
Pass | Commercial loans | SBA 504 loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 35,077 | ||
Pass | Commercial loans | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 894,110 | ||
Pass | Commercial loans | Commercial real estate construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 131,774 | ||
Pass | Commercial loans | Consumer other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 110,107 | ||
Special mention | SBA loans held for investment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 558 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2020 | 702 | 702 | |
2018 and Earlier | 758 | 758 | |
Total Loans | 1,460 | 1,460 | |
Special mention | SBA and commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 13,006 | ||
Special mention | Commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 12,448 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2022 | 86 | 86 | |
2021 | 2,100 | 2,100 | |
2019 | 2,251 | 2,251 | |
2018 and Earlier | 11,386 | 11,386 | |
Revolving Loans Amortized Cost Basis | 395 | 395 | |
Total Loans | 16,218 | 16,218 | |
Special mention | Commercial loans | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,228 | ||
Special mention | Commercial loans | Consumer other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 6,220 | ||
Substandard | SBA loans held for investment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 747 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2022 | 1,361 | 1,361 | |
2021 | 2,237 | 2,237 | |
2018 and Earlier | 792 | 792 | |
Total Loans | 4,390 | 4,390 | |
Substandard | SBA and commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,774 | ||
Substandard | Commercial loans | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 4,027 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
2020 | 220 | 220 | |
2018 and Earlier | 2,577 | 2,577 | |
Total Loans | $ 2,797 | $ 2,797 | |
Substandard | Commercial loans | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,788 | ||
Substandard | Commercial loans | Consumer other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 1,239 |
Loans - Disaggregated by class
Loans - Disaggregated by class of gross loans and type of concession granted (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amortized Cost Basis | $ 954 | $ 954 |
Total Class of Gross Loans | 0.08% | |
Weighted Average of years | 7 years 3 months 18 days |
Allowance for Credit Losses a_3
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - Activity in the Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | $ (1,125) | |||
Recoveries | 135 | |||
Net recoveries (charge-offs) | (990) | |||
Provision for loan losses charged to expense | 777 | |||
Balance, end of period | 25,988 | $ 25,988 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 26,201 | $ 22,168 | 25,196 | $ 22,302 |
Charge-offs | (541) | (547) | ||
Recoveries | 43 | 94 | ||
Net recoveries (charge-offs) | (498) | (453) | ||
Provision for (credit to) loan losses charged to expense | 1,188 | 1,009 | ||
Balance, end of period | 22,858 | 22,858 | ||
SBA loans held for investment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (113) | |||
Recoveries | 15 | 15 | ||
Net recoveries (charge-offs) | 15 | (98) | ||
Provision for loan losses charged to expense | 438 | 616 | ||
Balance, end of period | 1,556 | 1,556 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 1,103 | 941 | 875 | 1,074 |
Recoveries | 6 | 28 | ||
Net recoveries (charge-offs) | 6 | 28 | ||
Provision for (credit to) loan losses charged to expense | (189) | (344) | ||
Balance, end of period | 758 | 758 | ||
SBA loans held for investment | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance, end of period | 163 | 163 | ||
Commercial loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Recoveries | 96 | 367 | ||
Net recoveries (charge-offs) | 96 | 367 | ||
Provision for loan losses charged to expense | 121 | |||
(Credit to) loan losses charged to expense | (276) | |||
Balance, end of period | 15,516 | 15,516 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 15,299 | 14,705 | 15,254 | 15,053 |
Charge-offs | (501) | (501) | ||
Recoveries | 32 | 61 | ||
Net recoveries (charge-offs) | (469) | (440) | ||
Provision for (credit to) loan losses charged to expense | 672 | 295 | ||
Balance, end of period | 14,908 | 14,908 | ||
Commercial loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance, end of period | 171 | 171 | ||
Residential mortgage loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Provision for loan losses charged to expense | 302 | 611 | ||
Balance, end of period | 6,437 | 6,437 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 6,135 | 4,284 | 5,450 | 4,114 |
Recoveries | 1 | 1 | ||
Net recoveries (charge-offs) | 1 | 1 | ||
Provision for (credit to) loan losses charged to expense | 501 | 671 | ||
Balance, end of period | 4,786 | 4,786 | ||
Residential mortgage loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance, end of period | 376 | 376 | ||
Consumer loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (225) | (345) | ||
Recoveries | 24 | 36 | ||
Net recoveries (charge-offs) | (201) | (309) | ||
Provision for loan losses charged to expense | 24 | 63 | ||
Balance, end of period | 845 | 845 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 1,022 | 642 | 990 | 671 |
Charge-offs | (40) | (46) | ||
Recoveries | 4 | 4 | ||
Net recoveries (charge-offs) | (36) | (42) | ||
Provision for (credit to) loan losses charged to expense | 197 | 174 | ||
Balance, end of period | 803 | 803 | ||
Consumer loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance, end of period | 101 | 101 | ||
Residential construction loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Charge-offs | (900) | (900) | ||
Net recoveries (charge-offs) | (900) | (900) | ||
(Credit to) loan losses charged to expense | (108) | (129) | ||
Balance, end of period | 1,634 | 1,634 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of period | 2,642 | 1,596 | 2,627 | 1,390 |
Provision for (credit to) loan losses charged to expense | 7 | 213 | ||
Balance, end of period | $ 1,603 | $ 1,603 | ||
Residential construction loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance, end of period | $ 36 | $ 36 |
Allowance for Credit Losses a_4
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - Allowance for Credit Losses on Basis of Impairment Method (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | $ 1,779 | |||||
Collectively evaluated for impairment | 23,417 | |||||
Individually evaluated | $ 951 | |||||
Collectively evaluated | 25,037 | |||||
Total | $ 26,201 | 25,196 | $ 22,858 | $ 22,168 | $ 22,302 | |
Total | 25,988 | |||||
Individually evaluated for impairment | 12,509 | 10,584 | ||||
Collectively evaluated for impairment | 2,154,858 | 2,095,975 | ||||
Total loans | 2,106,559 | |||||
Total Loans | 2,167,367 | |||||
SBA held for investment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 115 | |||||
Collectively evaluated for impairment | 760 | |||||
Individually evaluated | 530 | |||||
Collectively evaluated | 1,026 | |||||
Total | 875 | |||||
Total | 1,556 | |||||
Individually evaluated for impairment | 357 | 690 | ||||
Collectively evaluated for impairment | 62,150 | 71,614 | ||||
Total loans | 72,304 | |||||
Total Loans | 62,507 | |||||
Commercial loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 516 | |||||
Collectively evaluated for impairment | 14,738 | |||||
Collectively evaluated | 15,516 | |||||
Total | 15,299 | 15,254 | 14,908 | 14,705 | 15,053 | |
Total | 15,516 | |||||
Individually evaluated for impairment | 449 | 3,101 | ||||
Collectively evaluated for impairment | 1,255,583 | 1,184,442 | ||||
Total loans | 1,187,543 | |||||
Total Loans | 1,256,032 | |||||
Residential mortgage loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 36 | |||||
Collectively evaluated for impairment | 5,414 | |||||
Individually evaluated | 147 | |||||
Collectively evaluated | 6,290 | |||||
Total | 6,135 | 5,450 | 4,786 | 4,284 | 4,114 | |
Total | 6,437 | |||||
Individually evaluated for impairment | 7,787 | 3,361 | ||||
Collectively evaluated for impairment | 625,627 | 601,730 | ||||
Total loans | 605,091 | |||||
Total Loans | 633,414 | |||||
Consumer loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 990 | |||||
Collectively evaluated | 845 | |||||
Total | 1,022 | 990 | 803 | 642 | 671 | |
Total | 845 | |||||
Collectively evaluated for impairment | 75,990 | 78,164 | ||||
Total loans | 78,164 | |||||
Total Loans | 75,990 | |||||
Residential construction loans | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment | 1,112 | |||||
Collectively evaluated for impairment | 1,515 | |||||
Individually evaluated | 274 | |||||
Collectively evaluated | 1,360 | |||||
Total | $ 2,642 | 2,627 | $ 1,603 | $ 1,596 | $ 1,390 | |
Total | 1,634 | |||||
Individually evaluated for impairment | 3,916 | 3,432 | ||||
Collectively evaluated for impairment | 135,508 | 160,025 | ||||
Total loans | 163,457 | |||||
Total Loans | 139,424 | |||||
Total | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Total loans | $ 2,078,631 | |||||
Total Loans | $ 2,147,293 |
Allowance for Credit Losses a_5
Allowance for Credit Losses and Reserve for Unfunded Loan Commitments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Provision for unfunded loan commitments reserves | $ 1,188 | $ 1,009 | |||
Unfunded loan commitment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Reserve for commitments | $ 500 | $ 500 | $ 500 | ||
Unfunded loan commitments reserves | $ (100) | $ (47) | $ (100) | $ (100) |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - Interest Rate Swap - Designated as hedging instrument $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) contract | Dec. 31, 2022 USD ($) contract | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 20,000 | $ 20,000 |
Fair value | $ 1,402 | $ 1,537 |
Weighted average pay rate | 0.83% | 0.83% |
Weighted average receive rate | 5.14% | 1.50% |
Weighted average maturity in years | 1 year 8 months 12 days | 2 years 6 months 25 days |
Number of contracts | contract | 1 | 1 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Gain (Loss) in AOCI (Details) - AOCI (loss) gain on cash flow derivative instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (Loss) recognized in OCI | $ 100 | $ (735) | $ (135) | $ 738 |
Gain reclassified from AOCI into net income | $ 219 | $ 418 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | May 05, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Options granted (in shares) | 0 | 0 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 3 years | ||
Award expiration period | 10 years | ||
Compensation cost not yet recognized | $ 181 | ||
Compensation cost recognition weighted average period | 7 months 6 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting period | 4 years | ||
Compensation cost recognition weighted average period | 2 years 10 months 24 days | ||
Nonvested awards, compensation not yet recognized, awards other than options | $ 3,800 | ||
2023 Equity Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (in shares) | 500,000 | ||
Number of shares available for grant (in shares) | 485,012 | ||
2023 Equity Compensation Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Options granted (in shares) | 281,500 | ||
Unvested options cancelled and returned | 16,162 | ||
2023 Equity Compensation Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Options granted (in shares) | 264,900 | ||
Unvested options cancelled and returned | 15,250 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Transactions - Stock Option Plans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Shares | |||||
Options Outstanding, beginning shares (in shares) | 559,499 | ||||
Options granted (in shares) | 0 | 0 | |||
Options exercised (in shares) | (13,734) | (15,335) | (50,935) | (62,709) | |
Options forfeited, shares | (666) | ||||
Options Outstanding, ending shares (in shares) | 507,898 | 507,898 | 559,499 | ||
Shares Exercisable | 468,074 | 468,074 | |||
Weighted average exercise price | |||||
Weighted Average exercise Price: Options Outstanding, beginning (in usd per share) | $ 18.09 | ||||
Weighted Average Exercise Price: Options exercised (in usd per share) | 19.61 | ||||
Weighted Average Exercise Price: Options forfeited (in usd per share) | 18.64 | ||||
Weighted Average exercise Price: Options Outstanding, ending (in usd per share) | $ 17.94 | 17.94 | $ 18.09 | ||
Weighted average exercise price, Options Exercisable (in dollars per share) | $ 17.84 | $ 17.84 | |||
Weighted Average Remaining Contractual Life (in years): Options Outstanding | 5 years 4 months 24 days | 5 years 10 months 24 days | |||
Weighted Average Remaining Contractual Life (in years): Options Exercisable | 5 years 2 months 12 days | ||||
Aggregate Intrinsic Value: Options Outstanding | $ 2,870,246 | $ 2,870,246 | $ 5,168,740 | ||
Aggregate Intrinsic Value: Options Exercisable | $ 2,689,947 | $ 2,689,947 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Information About Options Exercised (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Benefit Plans | ||||
Number of options exercised | 13,734 | 15,335 | 50,935 | 62,709 |
Total intrinsic value of options exercised | $ 74,099 | $ 120,065 | $ 316,003 | $ 866,357 |
Cash received from options exercised | 244,991 | 314,323 | 998,885 | 953,537 |
Tax deduction realized from options | $ 22,292 | $ 36,121 | $ 95,069 | $ 260,643 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Transactions - Stock Options Outstanding And Exercisable (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Options outstanding (in shares) | shares | 507,898 |
Options outstanding, Weighted average remaining contractual life (in years) | 5 years 4 months 24 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 17.94 |
Options exercisable (in shares) | shares | 468,074 |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 17.84 |
$7.25 - $16.51 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of exercise prices, lower | 7.25 |
Range of exercise prices, upper | $ 16.51 |
Options outstanding (in shares) | shares | 136,233 |
Options outstanding, Weighted average remaining contractual life (in years) | 3 years 7 months 6 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 11.97 |
Options exercisable (in shares) | shares | 136,233 |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 11.97 |
$16.52 - $19.26 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of exercise prices, lower | 16.52 |
Range of exercise prices, upper | $ 19.26 |
Options outstanding (in shares) | shares | 121,165 |
Options outstanding, Weighted average remaining contractual life (in years) | 6 years 2 months 12 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 18.03 |
Options exercisable (in shares) | shares | 97,674 |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 18.04 |
$19.27 - $20.88 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of exercise prices, lower | 19.27 |
Range of exercise prices, upper | $ 20.88 |
Options outstanding (in shares) | shares | 132,300 |
Options outstanding, Weighted average remaining contractual life (in years) | 6 years 1 month 6 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 20.34 |
Options exercisable (in shares) | shares | 115,967 |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 20.31 |
$20.89 - $22.57 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range | |
Range of exercise prices, lower | 20.89 |
Range of exercise prices, upper | $ 22.57 |
Options outstanding (in shares) | shares | 118,200 |
Options outstanding, Weighted average remaining contractual life (in years) | 5 years 10 months 24 days |
Options outstanding, Weighted average exercise price (in dollars per share) | $ 22.03 |
Options exercisable (in shares) | shares | 118,200 |
Options exercisable, Weighted average exercise price (in dollars per share) | $ 22.03 |
Employee Benefit Plans - Compen
Employee Benefit Plans - Compensation Expense Related To Stock Options (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | $ 79 | $ 138 | $ 164 | $ 302 |
Income tax benefit | 23 | 40 | 47 | 87 |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | 344 | 301 | 676 | 532 |
Income tax benefit | $ 100 | $ 87 | $ 195 | $ 154 |
Employee Benefit Plans - Restri
Employee Benefit Plans - Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Shares | ||||
Nonvested restricted stock, beginning balance (in shares) | 164,570 | |||
Granted (in shares) | 37,500 | 1,000 | 55,500 | 71,000 |
Cancelled (in shares) | (2,850) | |||
Vested (in shares) | (37,723) | |||
Nonvested restricted stock, ending balance (in shares) | 179,497 | 179,497 | ||
Average grant date fair value | ||||
Nonvested restricted stock, beginning balance (in dollars per share) | $ 24.77 | |||
Granted (in dollars per share) | $ 20.64 | $ 28.20 | 22.81 | $ 27.53 |
Cancelled (in dollars per share) | 26.70 | |||
Vested (in dollars per share) | 23.26 | |||
Nonvested restricted stock, ending balance (in dollars per share) | $ 24.45 | $ 24.45 |
Employee Benefit Plans - Stoc_3
Employee Benefit Plans - Stock Transactions - Restricted Stock Awards (Details) - Restricted Stock - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares granted (in shares) | 37,500 | 1,000 | 55,500 | 71,000 |
Average grant date fair value (in usd per share) | $ 20.64 | $ 28.20 | $ 22.81 | $ 27.53 |
Regulatory Capital (Details)
Regulatory Capital (Details) | Jun. 30, 2023 | Dec. 31, 2022 |
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Leverage ratio | 0.1049 | 0.1088 |
Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations | ||
Leverage ratio | 0.1007 | 0.1034 |