Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Carrying Amount And Estimated Fair Value Of Assets And Liabilities



	September 30, 2021
					Quoted prices in		Significant other		Significant
					active markets for		observable		unobservable
	Carrying		Estimated		identical assets		inputs		inputs
	amount		fair value		(Level 1)		(Level 2)		(Level 3)
Investment securities, available-for-sale	$	1,054,223	$	1,054,223	$	—	$	984,961	$	69,262
Federal Home Loan Bank and Atlantic Central Bankers Bank stock		1,663		1,663		—		—		1,663
Commercial loans, at fair value		1,550,025		1,550,025		—		—		1,550,025
Loans, net of deferred loan fees and costs		3,136,662		3,129,602		—		—		3,129,602
Assets held-for-sale from discontinued operations		87,904		87,904		—		—		87,904
Interest rate swaps, liability		895		895		—		895		—
Demand and interest checking		4,734,352		4,734,352		—		4,734,352		—
Savings and money market		378,160		378,160		—		378,160		—
Senior debt		98,590		101,433		—		101,433		—
Subordinated debentures		13,401		8,663		—		—		8,663
Securities sold under agreements to repurchase		42		42		42		—		—
Short-term borrowings		300,000		300,000		300,000		—		—



	December 31, 2020
					Quoted prices in		Significant other		Significant
					active markets for		observable		unobservable
	Carrying		Estimated		identical assets		inputs		inputs
	amount		fair value		(Level 1)		(Level 2)		(Level 3)
Investment securities, available-for-sale	$	1,206,164	$	1,206,164	$	—	$	1,027,213	$	178,951
Federal Home Loan Bank and Atlantic Central Bankers Bank stock		1,368		1,368		—		—		1,368
Commercial loans, at fair value		1,810,812		1,810,812		—		—		1,810,812
Loans, net of deferred loan fees and costs		2,652,323		2,650,613		—		—		2,650,613
Investment in unconsolidated entity		31,294		31,294		—		—		31,294
Assets held-for-sale from discontinued operations		113,650		113,650		—		—		113,650
Interest rate swaps, liability		2,223		2,223		—		2,223		—
Demand and interest checking		5,205,010		5,205,010		—		5,205,010		—
Savings and money market		257,050		257,050		—		257,050		—
Senior debt		98,314		104,111		—		104,111		—
Subordinated debentures		13,401		9,102		—		—		9,102
Securities sold under agreements to repurchase		42		42		42		—		—

Changes In Company's Level 3 Assets



	Fair Value Measurements Using
	Significant Unobservable Inputs
	(Level 3)

	Available-for-sale				Commercial loans,
	securities				at fair value
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Beginning balance	$	178,951	$	117,333	$	1,810,812	$	1,180,546
Transfers from investment in unconsolidated entity		—		—		22,926		—
Reclass of held-to-maturity securities to available-for-sale		—		85,151		—		—
Total (losses) or gains (realized/unrealized)
Included in earnings		(676)		—		5,315		(1,883)
Included in other comprehensive loss		(1,096)		(2,121)		—		—
Purchases, issuances, sales and settlements
Issuances		—		—		62,151		721,590
Settlements		(107,917)		(21,412)		(351,179)		(89,441)
Ending balance	$	69,262	$	178,951	$	1,550,025	$	1,810,812

Total losses year to date included
in earnings attributable to the change in
unrealized gains or losses relating to assets still
held at the reporting date as shown above.	$	(879)	$	—	$	(1,953)	$	(3,567)

The Company’s Level 3 asset activity for the categories shown are summarized below (in thousands):


	Fair Value Measurements Using
	Significant Unobservable Inputs
	(Level 3)

	Investment in				Assets held-for-sale
	unconsolidated entity				from discontinued operations
	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Beginning balance	$	31,294	$	39,154	$	113,650	$	140,657
Transfers to commercial loans, at fair value		(22,926)		—		—		—
Transfers to other real estate owned		(2,145)		—		—		—
Total (losses) or gains (realized/unrealized)
Included in earnings		—		(45)		1,115		(3,326)
Purchases, issuances, sales, settlements and charge-offs
Issuances		—		—		3,715		4,942
Sales		—		—		(2,020)		(1,482)
Settlements		(6,223)		(7,815)		(28,556)		(26,846)
Charge-offs		—		—		—		(295)
Ending balance	$	—	$	31,294	$	87,904	$	113,650

Total losses year to date included
in earnings attributable to the change in
unrealized gains or losses relating to assets still
held at the reporting date as shown above.	$	—	$	(45)	$	498	$	(2,664)

Schedule Of Other Real Estate Owned


	September 30, 2021		December 31, 2020
Beginning balance	$	—	$	—
Transfers from investment in unconsolidated entity		2,145		—
Ending balance	$	2,145	$	—

Fair Value, Measurements, Recurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets Measured At Fair Value On A Recurring And Nonrecurring Basis



			Fair Value Measurements at Reporting Date Using
			Quoted prices in		Significant other		Significant
				active markets for	observable		unobservable
	Fair value		identical assets		inputs		inputs
		September 30, 2021	(Level 1)		(Level 2)		(Level 3)
Investment securities, available-for-sale
U.S. Government agency securities	$	39,120	$	—	$	39,120	$	—
Asset-backed securities		368,913		—		368,913		—
Obligations of states and political subdivisions		52,797		—		52,797		—
Residential mortgage-backed securities		199,270		—		199,270		—
Collateralized mortgage obligation securities		76,342		—		76,342		—
Commercial mortgage-backed securities		311,276		—		248,519		62,757
Corporate debt securities		6,505		—		—		6,505
Total investment securities, available-for-sale		1,054,223		—		984,961		69,262
Commercial loans, at fair value		1,550,025		—		—		1,550,025
Assets held-for-sale from discontinued operations		87,904		—		—		87,904
Interest rate swaps, liability		895		—		895		—
	$	2,691,257	$	—	$	984,066	$	1,707,191



			Fair Value Measurements at Reporting Date Using
			Quoted prices in		Significant other		Significant
				active markets for	observable		unobservable
	Fair value		identical assets		inputs		inputs
		December 31, 2020	(Level 1)		(Level 2)		(Level 3)
Investment securities, available-for-sale
U.S. Government agency securities	$	47,197	$	—	$	47,197	$	—
Asset-backed securities		238,361		—		238,361		—
Obligations of states and political subdivisions		56,354		—		56,354		—
Residential mortgage-backed securities		266,583		—		266,583		—
Collateralized mortgage obligation securities		148,530		—		148,530		—
Commercial mortgage-backed securities		367,280		—		270,188		97,092
Corporate debt securities		81,859		—		—		81,859
Total investment securities, available-for-sale		1,206,164		—		1,027,213		178,951
Commercial loans, at fair value		1,810,812		—		—		1,810,812
Investment in unconsolidated entity		31,294		—		—		31,294
Assets held-for-sale from discontinued operations		113,650		—		—		113,650
Interest rate swaps, liability		2,223		—		2,223		—
	$	3,159,697	$	—	$	1,024,990	$	2,134,707

Fair Value Inputs, Assets, Quantitative Information

Level 3 instruments only

Weighted

Fair value at

Range at

average at

September 30, 2021

Valuation techniques

Unobservable inputs

September 30, 2021

Commercial mortgage backed investment

securities (a)

62,757

Discounted cash flow

Discount rate

3.11%-7.71%

4.00%

Insurance liquidating trust preferred security (b)

6,505

Discounted cash flow

Discount rate

7.00%

Federal Home Loan Bank and Atlantic

Central Bankers Bank stock

1,663

Cost

N/A

Loans, net of deferred loan fees and costs (c)

3,129,602

Discounted cash flow

Discount rate

1.00% - 7.00%

3.60%

Commercial - SBA (d)

214,301

Traders' pricing

Offered quotes

$100 - $106

$103.5

Non-SBA CRE - fixed (e)

85,075

Discounted cash flow

Discount rate

5.72%-7.44%

5.85%

Non-SBA CRE - floating (f)

1,250,649

Discounted cash flow

Discount rate

3.96%-8.2%

4.86%

Commercial loans, at fair value

1,550,025

Assets held-for-sale from discontinued operations (g)

87,904

Discounted cash flow

Discount rate

3.37%-6.58%

4.69%

Subordinated debentures (h)

8,663

Discounted cash flow

Discount rate

7.00%

Other real estate owned

2,145

Appraised value

N/A


		Level 3 instruments only
						Weighted
	Fair value at				Range at	average at
	December 31, 2020		Valuation techniques	Unobservable inputs	December 31, 2020	December 31, 2020
Commercial mortgage backed investment
securities	$	97,092	Discounted cash flow	Discount rate	3.68%-8.30%	4.62%
Insurance liquidating trust preferred security		6,765	Discounted cash flow	Discount rate	6.61%	6.61%
Corporate debt securities		75,094	Traders' pricing	Price indications	$100.13	$100.13
Federal Home Loan Bank and Atlantic
Central Bankers Bank stock		1,368	Cost	N/A	N/A	N/A
Loans, net of deferred loan fees and costs		2,650,613	Discounted cash flow	Discount rate	1.00% - 6.36%	2.82%

Commercial - SBA		243,562	Traders' pricing	Offered quotes	$100.00 - $117.80	$105.60
Non-SBA CRE - fixed		87,288	Discounted cash flow	Discount rate	5.16%-7.32%	6.03%
Non-SBA CRE - floating		1,479,962	Discounted cash flow	Discount rate	3.96% -9.70%	4.91%
Commercial loans, at fair value		1,810,812

Investment in unconsolidated entity		31,294	Discounted cash flow	Discount rate	3.93%	3.93%
				Default rate	1.00%	1.00%
Assets held-for-sale from discontinued operations		113,650	Discounted cash flow	Discount rate,	2.55%-6.83%	4.15%
				Credit analysis
Subordinated debentures		9,102	Discounted cash flow	Discount rate	6.61%	6.61%

The valuations for each of the instruments above, as of the balance sheet date, are subject to judgments, assumptions and uncertainties, changes in which could have a significant impact on such valuations. Weighted averages were calculated by using the discount rate for each individual security or loan weighted by its market value, except for SBA loans. For SBA loans, traders’ pricing indications for pools determined by date of loan origination were weighted. For commercial loans recorded at fair value and assets held-for-sale from discontinued operations, changes in fair value are reflected in the income statement. Changes in fair value of securities which are unrelated to credit are recorded through equity. Changes in the fair value of loans recorded at amortized cost which are unrelated to credit are a disclosure item, without impact on the financial statements. The notes below refer to the September 30, 2021 table.

a)Commercial mortgage backed investment securities, consisting of Bank sponsored CRE securities, are valued using discounted cash flow analyses. The discount rates applied are based upon market observations for comparable securities and implicitly assume market averages for defaults and loss severities. Each of the securities has some credit enhancement, or protection from other tranches in the issue, which limit their valuation exposure to credit losses. Nonetheless, increases in expected default rates

or loss severities on the loans underlying the issue could reduce their value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on these holdings in future periods and impact fair values.

b)Insurance liquidating trust preferred is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security.

c)Loans, net of deferred loan fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. At September 30, 2021, the balance included $71.3 million of Paycheck Protection Program loans, which bear interest at 1%, but also earn fees.

d)Commercial-SBL (SBA Loans) are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon dealer pricing indications. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are also impacted by prepayment assumptions resulting from both voluntary payoffs and defaults.

e)Non-SBA CRE-fixed are fixed rate non-SBA commercial real estate mortgages. Discount rates used in applying discounted cash flow analysis are based upon loan terms, the current origination rates for similar loans and the quality of the credit.

f)Non-SBA CRE-floating are floating rate non-SBA loans, the vast majority of which are secured by multi-family properties. These are bridge loans designed to provide owners time and funding for property improvements and are generally valued internally using discounted cash flow analysis. The discount rate for the vast majority of these loans, which are multi-family, was based upon current origination rates for similar loans. Certain of these loans are fair valued by a third-party, based upon discounting at market rates for similar loans.

g)Assets held-for-sale from discontinued operations are valued using discounted cash flow by an independent valuation consultant using loan performance, other credit characteristics and market interest rate comparisons. Changes in those factors could change the valuation.

h)Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25%. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in the valuation.

Fair Value, Measurements, Nonrecurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Assets Measured At Fair Value On A Recurring And Nonrecurring Basis



			Fair Value Measurements at Reporting Date Using
			Quoted prices in active		Significant other		Significant
			markets for identical		observable		unobservable
	Fair value		assets		inputs		inputs (1)
Description	September 30, 2021		(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans (1)	$	5,068	$	—	$	—	$	5,068
Other real estate owned		2,145		—		—		2,145
Intangible assets		2,547		—		—		2,547
	$	9,760	$	—	$	—	$	9,760



			Fair Value Measurements at Reporting Date Using
			Quoted prices in active		Significant other		Significant
			markets for identical		observable		unobservable
	Fair value		assets		inputs		inputs (1)
Description	December 31, 2020		(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans (1)	$	9,578	$	—	$	—	$	9,578
Intangible assets		2,845		—		—		2,845
	$	12,423	$	—	$	—	$	12,423

(1)The method of valuation approach for the collateral dependent loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7% to 10% for estimated selling costs. Intangible assets are valued based upon internal analyses.