(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
☒ | Smaller reporting company | ||||||||||
Emerging growth company |
Consolidated Statements of Income For the Three and Nine Months Ended September 30, 2023 and 2022 (unaudited) | |||||
September 30, 2023 | December 31, 2022* | ||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and due from banks | $ | $ | |||||||||||||||||||||
Interest-bearing deposits at other financial institutions | |||||||||||||||||||||||
Securities held-to-maturity (fair value of $ | |||||||||||||||||||||||
Securities available-for-sale, at fair value | |||||||||||||||||||||||
Restricted stock, at cost | |||||||||||||||||||||||
Loans, net of allowance for credit losses of $ | |||||||||||||||||||||||
Premises and equipment, net | |||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||
Prepaid expenses | |||||||||||||||||||||||
Deferred tax assets, net | |||||||||||||||||||||||
Goodwill and intangibles, net | |||||||||||||||||||||||
Bank owned life insurance ("BOLI") | |||||||||||||||||||||||
Operating lease right-of-use assets | |||||||||||||||||||||||
Other assets | |||||||||||||||||||||||
Total assets | $ | $ | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Noninterest-bearing | $ | $ | |||||||||||||||||||||
Interest-bearing checking, savings and money market | |||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||
Total deposits | $ | $ | |||||||||||||||||||||
Federal funds purchased | $ | $ | |||||||||||||||||||||
Federal Home Loan Bank ("FHLB") advances | |||||||||||||||||||||||
Subordinated notes, net of issuance costs | |||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||
Operating lease liabilities | |||||||||||||||||||||||
Reserves for unfunded commitments | |||||||||||||||||||||||
Accrued expenses and other liabilities | |||||||||||||||||||||||
Total liabilities | $ | $ | |||||||||||||||||||||
Commitments and Contingent Liabilities | |||||||||||||||||||||||
Stockholders' Equity | 2023 | 2022 | |||||||||||||||||||||
Preferred stock, $ | |||||||||||||||||||||||
Shares authorized | |||||||||||||||||||||||
Shares issued and outstanding | |||||||||||||||||||||||
Common stock, $ | |||||||||||||||||||||||
Shares authorized | |||||||||||||||||||||||
Shares issued and outstanding | |||||||||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||||
Retained earnings | |||||||||||||||||||||||
Accumulated other comprehensive (loss), net | ( | ( | |||||||||||||||||||||
Total stockholders' equity | $ | $ | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | $ |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Interest and Dividend Income | ||||||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | ||||||||||||||||
Interest and dividends on securities held-to-maturity | ||||||||||||||||||||
Interest and dividends on securities available-for-sale | ||||||||||||||||||||
Dividends on restricted stock | ||||||||||||||||||||
Interest on deposits at other financial institutions | ||||||||||||||||||||
Total interest and dividend income | $ | $ | $ | $ | ||||||||||||||||
Interest Expense | ||||||||||||||||||||
Interest on deposits | $ | $ | $ | $ | ||||||||||||||||
Interest on federal funds purchased | ||||||||||||||||||||
Interest on short-term debt | ||||||||||||||||||||
Interest on subordinated notes | ||||||||||||||||||||
Total interest expense | $ | $ | $ | $ | ||||||||||||||||
Net Interest Income | $ | $ | $ | $ | ||||||||||||||||
(Recovery of) Provision for credit losses | ( | |||||||||||||||||||
Net interest income after (recovery of) provision for credit losses | $ | $ | $ | $ | ||||||||||||||||
Noninterest Income | ||||||||||||||||||||
Service charges on deposit accounts | $ | $ | $ | $ | ||||||||||||||||
BOLI income | ||||||||||||||||||||
(Loss) income from minority membership interests | ( | ( | ( | |||||||||||||||||
Loss on sale of securities available-for-sale | ( | |||||||||||||||||||
Other income | ||||||||||||||||||||
Total noninterest (loss) income | $ | $ | $ | ( | $ | |||||||||||||||
Noninterest Expenses | ||||||||||||||||||||
Salaries and employee benefits | $ | $ | $ | $ | ||||||||||||||||
Occupancy expense | ||||||||||||||||||||
Internet banking and software expense | ||||||||||||||||||||
Data processing and network administration | ||||||||||||||||||||
State franchise taxes | ||||||||||||||||||||
Audit, legal and consulting fees | ||||||||||||||||||||
Merger and acquisition expense | ||||||||||||||||||||
Loan related (benefit)/expenses | ( | |||||||||||||||||||
FDIC insurance | ||||||||||||||||||||
Marketing, business development and advertising | ||||||||||||||||||||
Director fees | ||||||||||||||||||||
Postage, courier and telephone | ||||||||||||||||||||
Core deposit intangible amortization | ||||||||||||||||||||
Tax credit amortization | ||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||
Total noninterest expenses | $ | $ | $ | $ | ||||||||||||||||
Net income before income tax expense | $ | $ | $ | $ | ||||||||||||||||
Income tax expense | ||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||
Earnings per share, basic | $ | $ | $ | $ | ||||||||||||||||
Earnings per share, diluted | $ | $ | $ | $ |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Unrealized loss on securities available for sale, net of tax benefit of $ | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gain on interest rate swaps, net of tax expense of $ | |||||||||||||||||||||||
Reclassification adjustment for securities losses realized in income, net of tax expense of $ | |||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Total comprehensive income (loss) | $ | ( | $ | ( | $ | $ | ( |
2023 | 2022 | ||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Provision for credit losses | |||||||||||
Net amortization of premium of securities | |||||||||||
Net accretion of deferred loan costs and fees | ( | ( | |||||||||
Net accretion of acquisition accounting adjustments | ( | ( | |||||||||
Loss on sale of available-for-sale investment securities | |||||||||||
Loss (income) from minority membership interest | ( | ||||||||||
Amortization of subordinated debt issuance costs | |||||||||||
Core deposits intangible amortization | |||||||||||
Tax credits amortization | |||||||||||
Equity-based compensation expense | |||||||||||
BOLI income | ( | ( | |||||||||
Changes in assets and liabilities: | |||||||||||
Increase in accrued interest receivable, prepaid expenses, and other assets | ( | ( | |||||||||
Increase in accrued interest payable, accrued expenses, and other liabilities | |||||||||||
Net cash provided by operating activities | $ | $ | |||||||||
Cash Flows From Investing Activities | |||||||||||
(Increase) decrease in interest-bearing deposits at other financial institutions | $ | ( | $ | ||||||||
Purchases of securities available-for-sale | ( | ||||||||||
Proceeds from sales of securities available-for-sale | |||||||||||
Proceeds from redemptions of securities available-for-sale | |||||||||||
Net redemption (purchase) of restricted stock | ( | ||||||||||
Net increase in loans | ( | ( | |||||||||
Purchase of bank-owned life insurance | ( | ||||||||||
Distribution received from minority owned investment | |||||||||||
Purchases of premises and equipment, net | ( | ( | |||||||||
Net cash provided by (used in) investing activities | $ | $ | ( | ||||||||
Cash Flows From Financing Activities | |||||||||||
Net (decrease) increase in noninterest-bearing, interest-bearing checking, savings, and money market deposits | $ | $ | ( | ||||||||
(Decrease) increase in federal funds purchased | ( | ||||||||||
Net decrease in FHLB advances | ( | ||||||||||
Net increase in time deposits | |||||||||||
Repurchase of shares of common stock | ( | ||||||||||
Taxes from vesting of restricted stock units | ( | ||||||||||
Common stock issuance | |||||||||||
Net cash (used in) provided by financing activities | $ | ( | $ | ||||||||
Net increase (decrease) in cash and cash equivalents | $ | $ | ( | ||||||||
Cash and cash equivalents, beginning of year | |||||||||||
Cash and cash equivalents, end of period | $ | $ |
Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Common stock issuance for options exercised, net | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted stock grants | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Common stock issuance for options exercised, net | — | — | — | ||||||||||||||||||||||||||||||||
Vesting of restricted stock grants | — | — | — | — | — | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
— | — | — | ( | — | ( | ||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Common stock issuance for options exercised, net | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted stock grants | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Vesting of restricted stock grants | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | ( | $ |
September 30, 2023 | ||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Securities of state and local municipalities tax exempt | $ | $ | $ | ( | $ | |||||||||||||||||||||
Total Held-to-maturity Securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | $ | $ | $ | ( | $ | |||||||||||||||||||||
Securities of state and local municipalities tax exempt | ( | |||||||||||||||||||||||||
Securities of state and local municipalities taxable | ( | |||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||
SBA pass-through securities | ( | |||||||||||||||||||||||||
Mortgage-backed securities | ( | |||||||||||||||||||||||||
Collateralized mortgage obligations | ( | |||||||||||||||||||||||||
Total Available-for-sale Securities | $ | $ | $ | ( | $ |
December 31, 2022 | ||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value | ||||||||||||||||||||||
Held-to-maturity | ||||||||||||||||||||||||||
Securities of state and local municipalities tax exempt | $ | $ | $ | ( | $ | |||||||||||||||||||||
Total Held-to-maturity Securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | $ | $ | $ | ( | $ | |||||||||||||||||||||
Securities of state and local municipalities tax exempt | ( | |||||||||||||||||||||||||
Securities of state and local municipalities taxable | ( | |||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||
SBA pass-through securities | ( | |||||||||||||||||||||||||
Mortgage-backed securities | ( | |||||||||||||||||||||||||
Collateralized mortgage obligations | ( | |||||||||||||||||||||||||
Total Available-for-sale Securities | $ | $ | $ | ( | $ |
(In thousands) | Held-to-maturity | |||||||
September 30, 2023 | Securities of state and local municipalities tax exempt | |||||||
Aa3 | $ | |||||||
Total | $ |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||
At September 30, 2023 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Securities of state and local municipalities tax exempt | ( | ( | ||||||||||||||||||||||||||||||||||||
Securities of state and local municipalities taxable | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||||||||
SBA pass-through securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ( | $ | $ | ( |
(In thousands) | Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||||
At December 31, 2022 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||
Securities of state and local municipalities tax exempt | ( | ( | ||||||||||||||||||||||||||||||||||||
Securities of state and local municipalities taxable | ( | ( | ||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ( | |||||||||||||||||||||||||||||||||||
SBA pass-through securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
September 30, 2023 | ||||||||||||||||||||||||||
Held-to-maturity | Available-for-sale | |||||||||||||||||||||||||
(In thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||||
After 1 year through 5 years | $ | $ | $ | $ | ||||||||||||||||||||||
After 5 years through 10 years | ||||||||||||||||||||||||||
After 10 years | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
September 30, 2023 | ||||||||
(In thousands) | Total | |||||||
Commercial real estate | $ | |||||||
Commercial and industrial | ||||||||
Commercial construction | ||||||||
Consumer real estate | ||||||||
Consumer nonresidential | ||||||||
$ | ||||||||
Less: | ||||||||
Allowance for credit losses | ||||||||
Loans, net | $ |
December 31, 2022 | ||||||||||||||||||||
(In thousands) | Originated | Acquired | Total | |||||||||||||||||
Commercial real estate | $ | $ | $ | |||||||||||||||||
Commercial and industrial | ||||||||||||||||||||
Commercial construction | ||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||
Consumer nonresidential | ||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||
Less: | ||||||||||||||||||||
Allowance for credit losses | ||||||||||||||||||||
Unearned income and (unamortized premiums), net | ||||||||||||||||||||
Loans, net | $ | $ | $ |
(In thousands) | December 31, 2022 | |||||||
Purchased credit impaired acquired loans evaluated individually for credit losses | ||||||||
Outstanding principal balance | $ | |||||||
Carrying amount | ||||||||
Other acquired loans | ||||||||
Outstanding principal balance | ||||||||
Carrying amount | ||||||||
Total acquired loans | ||||||||
Outstanding principal balance | ||||||||
Carrying amount |
(In thousands) | ||||||||
Balance at January 1, 2022 | $ | |||||||
Accretion | ( | |||||||
Reclassification of nonaccretable difference due to changes in expected cash flows | ||||||||
Other changes, net | ||||||||
Balance at December 31, 2022 | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Beginning Balance, July 1 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Charge-offs | ||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Provision | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Ending Balance, September 30, | $ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Beginning Balance, Prior to January 1, 2023 Adoption of ASC 326 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Impact of Adoption of ASC 326 | ( | |||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Provision | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Ending Balance, September 30, | $ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Beginning Balance, July 1 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Provision | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Ending Balance September 30 | $ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Beginning Balance, January 1 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Provision | ( | ( | ||||||||||||||||||||||||||||||||||||
Ending Balance September 30 | $ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Beginning Balance, January 1 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||
Provision | ( | ( | ||||||||||||||||||||||||||||||||||||
Ending Balance December 31 | $ | $ | $ | $ | $ | $ |
(In thousands) | Real Estate | Business / Other Assets | ||||||||||||
Collateral-Dependent Loans | ||||||||||||||
Commercial real estate | $ | $ | ||||||||||||
Commercial and industrial | ||||||||||||||
Commercial construction | ||||||||||||||
Consumer real estate | ||||||||||||||
Consumer nonresidential | ||||||||||||||
Total | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Ending Balance | ||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Purchased credit impaired | ||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Financing receivables: | ||||||||||||||||||||||||||||||||||||||
Ending Balance | ||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Purchased credit impaired | ||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Allowance for credit losses: | ||||||||||||||||||||||||||||||||||||||
Ending Balance | ||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Purchased credit impaired | ||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | |||||||||||||||||||||||||||||||||
Financing receivables: | ||||||||||||||||||||||||||||||||||||||
Ending Balance | ||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Purchased credit impaired | ||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
(In thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||
Consumer nonresidential | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||
With no related allowance: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | — | $ | $ | ||||||||||||||||||||||||||
Commercial and industrial | — | |||||||||||||||||||||||||||||||
Commercial construction | — | |||||||||||||||||||||||||||||||
Consumer real estate | — | |||||||||||||||||||||||||||||||
Consumer nonresidential | — | |||||||||||||||||||||||||||||||
$ | $ | $ | — | $ | $ |
(In thousands) | Prior | 2019 | 2020 | 2021 | 2022 | 2023 | Revolving Loans Amort. Cost Basis | Revolving Loans Convert. to Term | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial Construction | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer Nonresidential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Total Recorded Investment | $ | $ | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | Total | |||||||
Grade: | ||||||||
Pass | $ | |||||||
Special mention | ||||||||
Substandard | ||||||||
Doubtful | ||||||||
Loss | ||||||||
Total Recorded Investment | $ |
(In thousands) | Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | ||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(In thousands) | Commercial Real Estate | Commercial and Industrial | Commercial Construction | Consumer Real Estate | Consumer Nonresidential | Total | ||||||||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(In thousands) | 30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due loans | Current | Nonaccruals | Total Recorded Investment in Loans | |||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||||||||||||
Consumer nonresidential | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | 30-59 days past due | 60-89 days past due | 90 or more past due | Total past due | Current | Total loans | 90 days past due and still accruing | Nonaccruals | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer nonresidential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | 30-59 days past due | 60-89 days past due | 90 or more past due | Total past due | Current | Total loans | 90 days past due and still accruing | Nonaccruals | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer nonresidential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Nonaccrual with No Allowance for Credit Losses | Nonaccrual with an Allowance for Credit Losses | Total Nonaccrual Loans | Interest Income Recognized | ||||||||||||||||||||||
Nonaccrual Loans | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Commercial construction | ||||||||||||||||||||||||||
Consumer real estate | ||||||||||||||||||||||||||
Consumer nonresidential | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||
(In thousands) | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
Provision for (reversal of) credit losses - loans | $ | ( | $ | $ | $ | |||||||||||||||||||||
Provision for (reversal of) credit losses - unfunded commitments | ( | ( | ||||||||||||||||||||||||
Total provision for credit losses | $ | ( | $ | $ | $ |
September 30, 2023 | ||||||||||||||
Notional Amount | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||
Interest Rate Swap Agreements | ||||||||||||||
Receive Fixed/Pay Variable Swaps | $ | $ | ||||||||||||
Pay Fixed/Receive Variable Swaps | ( |
December 31, 2022 | ||||||||||||||
Notional Amount | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||
Interest Rate Swap Agreements | ||||||||||||||
Receive Fixed/Pay Variable Swaps | $ | $ | ||||||||||||
Pay Fixed/Receive Variable Swaps | ( |
(In thousands) | September 30, 2023 | December 31, 2022 | ||||||||||||
Notional amount | $ | $ | ||||||||||||
Weighted average pay rate | ||||||||||||||
Weighted average receive rate | ||||||||||||||
Weighted average maturity in years | ||||||||||||||
Unrealized gain relating to interest rate swaps | $ | $ |
(In thousands) | September 30, 2023 | December 31, 2022 | ||||||||||||
Commitments to grant loans | $ | $ | ||||||||||||
Unused commitments to fund loans and lines of credit | ||||||||||||||
Commercial and standby letters of credit |
Options | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Contractual Remaining Term (Years) | Aggregate Intrinsic Value (1) | ||||||||||||||||||||||
Outstanding at January 1, 2023 | $ | |||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Forfeited or expired | ( | |||||||||||||||||||||||||
Outstanding and Exercisable at September 30, 2023 | $ | $ |
Number of Shares | Weighted Average Grant Date Fair Value per share | |||||||||||||
Nonvested at January 1, 2023 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Balance at September 30, 2023 | $ |
Level 1 — | Valuation is based on quoted prices in active markets for identical assets and liabilities. | ||||
Level 2 — | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. | ||||
Level 3 — | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. |
Fair Value Measurements at September 30, 2023 Using | ||||||||||||||||||||||||||
(In thousands) | Balance as of September 30, 2023 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | $ | $ | $ | $ | ||||||||||||||||||||||
Securities of state and local municipalities tax exempt | ||||||||||||||||||||||||||
Securities of state and local municipalities taxable | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
SBA pass-through securities | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Collateralized mortgage obligations | ||||||||||||||||||||||||||
Total Available-for-Sale Securities | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative assets - interest rate swaps | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative assets - cash flow hedge | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps |
Fair Value Measurements at December 31, 2022 Using | ||||||||||||||||||||||||||
(In thousands) | Balance as of December 31, 2022 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Available-for-sale | ||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | $ | $ | $ | $ | ||||||||||||||||||||||
Securities of state and local municipalities tax exempt | ||||||||||||||||||||||||||
Securities of state and local municipalities taxable | ||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||
SBA pass-through securities | ||||||||||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||||||||||
Collateralized mortgage obligations | ||||||||||||||||||||||||||
Total Available-for-Sale Securities | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative assets - interest rate swaps | $ | $ | $ | $ | ||||||||||||||||||||||
Derivative assets - cash flow hedge | ||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps |
Fair Value Measurements Using | ||||||||||||||||||||||||||
(In thousands) | Balance as of September 30, 2023 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Collateral-dependent loans | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Total Collateral-dependent loans | $ | $ | $ | $ |
Fair Value Measurements Using | ||||||||||||||||||||||||||
(In thousands) | Balance as of December 31, 2022 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | ||||||||||||||||||||||
Total Impaired loans | $ | $ | $ | $ |
Quantitative information about Level 3 Fair Value Measurements for September 30, 2023 | ||||||||||||||||||||||||||||||||
(Dollars In thousands) | ||||||||||||||||||||||||||||||||
Assets | Fair Value | Valuation Technique(s) | Unobservable input | Range | (Avg.) | |||||||||||||||||||||||||||
Collateral-dependent loans | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | % |
Quantitative information about Level 3 Fair Value Measurements for December 31, 2022 | ||||||||||||||||||||||||||||||||
(Dollars In thousands) | ||||||||||||||||||||||||||||||||
Assets | Fair Value | Valuation Technique(s) | Unobservable input | Range | (Avg.) | |||||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||||||
Commercial and industrial | $ | % | ||||||||||||||||||||||||||||||
Fair Value Measurements as of September 30, 2023, using | ||||||||||||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | ||||||||||||||||||||||
Interest-bearing deposits at other institutions | ||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||
Restricted stock | ||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||
Bank owned life insurance | ||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||
Derivative assets - interest rate swaps | ||||||||||||||||||||||||||
Derivative assets - cash flow hedge | ||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Checking, savings and money market accounts | $ | $ | $ | $ | ||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||
FHLB advances | ||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps |
Fair Value Measurements as of December 31, 2022, using | ||||||||||||||||||||||||||
Carrying Amount | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | ||||||||||||||||||||||
Interest-bearing deposits at other institutions | ||||||||||||||||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||
Restricted stock | ||||||||||||||||||||||||||
Loans, net | ||||||||||||||||||||||||||
Bank owned life insurance | ||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||
Derivative assets - interest rate swaps | ||||||||||||||||||||||||||
Derivative assets - cash flow hedge | ||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Checking, savings and money market accounts | $ | $ | $ | $ | ||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||
Fed funds purchased | ||||||||||||||||||||||||||
FHLB advances | ||||||||||||||||||||||||||
Subordinated notes | ||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||
Derivative liabilities - interest rate swaps |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average number of shares | ||||||||||||||||||||||||||
Effect of dilutive securities, restricted stock units and options | ||||||||||||||||||||||||||
Weighted average diluted shares | ||||||||||||||||||||||||||
Basic EPS | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted EPS | $ | $ | $ | $ |
(In thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2023 | Available-for-Sale Securities | Cash Flow Hedges | Total | |||||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | ( | |||||||||||||||
Net unrealized (losses) gains during the period | ( | ( | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ||||||||||||||||||
Balance, end of period | $ | ( | $ | $ | ( |
(In thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2023 | Available-for-Sale Securities | Cash Flow Hedges | Total | |||||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | ( | |||||||||||||||
Net unrealized (losses) gains during the period | ( | ( | ||||||||||||||||||
Net reclassification adjustment for losses realized in income | ||||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | |||||||||||||||||||
Balance, end of period | $ | ( | $ | $ | ( |
(In thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2022 | Available-for-Sale Securities | Cash Flow Hedges | Total | |||||||||||||||||
Balance, beginning of period | $ | ( | $ | $ | ( | |||||||||||||||
Net unrealized (losses) gains during the period | ( | ( | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ||||||||||||||||||
Balance, end of period | $ | ( | $ | $ | ( |
(In thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2022 | Available-for-Sale Securities | Cash Flow Hedges | Total | |||||||||||||||||
Balance, beginning of period | $ | ( | $ | ( | $ | ( | ||||||||||||||
Net unrealized (losses) gains during the period | ( | ( | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ||||||||||||||||||
Balance, end of period | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Non-interest Income | ||||||||||||||||||||||||||
In-scope of Topic 606 | ||||||||||||||||||||||||||
Service Charges on Deposit Accounts | $ | $ | $ | $ | ||||||||||||||||||||||
Fees, Exchange, and Other Service Charges | ||||||||||||||||||||||||||
Other income | ||||||||||||||||||||||||||
Non-interest Income (in-scope of Topic 606) | ||||||||||||||||||||||||||
Non-interest Income (out-scope of Topic 606) | ( | ( | ||||||||||||||||||||||||
Total Non-interest Income | $ | $ | $ | ( | $ |
For the Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2023 | 2022 | ||||||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||
Cash paid for: | ||||||||||||||
Interest on deposits and borrowed funds | $ | $ | ||||||||||||
Income taxes | ||||||||||||||
Noncash investing and financing activities: | ||||||||||||||
Unrealized (loss) on securities available-for-sale | ( | ( | ||||||||||||
Unrealized gain on interest rate swaps | ||||||||||||||
Adoption of CECL accounting standard | ( | |||||||||||||
Right-of-use assets obtained in the exchange for lease liabilities during the current period |
For the Three Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Net income (as reported) | $ | 4,039 | $ | 7,043 | |||||||
Add: Merger and acquisition expense | — | — | |||||||||
Add: Loss on sale of available-for-sale investment securities | — | — | |||||||||
(Subtract) Add: (Provision) Benefit for income taxes associated with non-GAAP adjustments | — | — | |||||||||
Non-GAAP Commercial Bank Operating Earnings, excluding above items | $ | 4,039 | $ | 7,043 | |||||||
Earnings per share - basic (GAAP net income) | $ | 0.23 | $ | 0.40 | |||||||
Earnings per share - Non-GAAP expenses including provision for income taxes | — | — | |||||||||
Earnings per share - basic (non-GAAP core bank operating earnings) | $ | 0.23 | $ | 0.40 | |||||||
Earnings per share - diluted (GAAP net income) | $ | 0.22 | $ | 0.38 | |||||||
Earnings per share - Non-GAAP expenses including provision for income taxes | $ | — | — | ||||||||
Earnings per share - diluted (non-GAAP core bank operating earnings) | $ | 0.22 | $ | 0.38 | |||||||
Return on average assets (GAAP net income) | 0.70 | % | 1.32 | % | |||||||
Non-GAAP expenses including provision for income taxes | — | % | — | % | |||||||
Return on average assets (non-GAAP core bank operating earnings) | 0.70 | % | 1.32 | % | |||||||
Return on average equity (GAAP net income) | 7.57 | % | 13.87 | % | |||||||
Non-GAAP expenses including provision for income taxes | — | % | — | % | |||||||
Return on average equity (non-GAAP core bank operating earnings) | 7.57 | % | 13.87 | % | |||||||
For the Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Net income (as reported) | $ | 8,892 | $ | 20,080 | |||||||
Add: Merger and acquisition expense | — | 125 | |||||||||
Add: Loss on sale of available-for-sale investment securities | 4,592 | — | |||||||||
(Subtract) Add: (Provision) Benefit for income taxes associated with non-GAAP adjustments | (1,010) | (28) | |||||||||
Non-GAAP Commercial Bank Operating Earnings, excluding above items | $ | 12,474 | $ | 20,177 | |||||||
Earnings per share - basic (GAAP net income) | $ | 0.50 | $ | 1.15 | |||||||
Earnings per share - Non-GAAP expenses including provision for income taxes | 0.20 | 0.01 | |||||||||
Earnings per share - basic (non-GAAP core bank operating earnings) | $ | 0.70 | $ | 1.16 | |||||||
Earnings per share - diluted (GAAP net income) | $ | 0.49 | $ | 1.09 | |||||||
Earnings per share - Non-GAAP expenses including provision for income taxes | 0.20 | — | |||||||||
Earnings per share - diluted (non-GAAP core bank operating earnings) | $ | 0.69 | $ | 1.09 | |||||||
Return on average assets (GAAP net income) | 0.52 | % | 1.28 | % | |||||||
Non-GAAP expenses including provision for income taxes | 0.21 | % | — | % | |||||||
Return on average assets (non-GAAP core bank operating earnings) | 0.73 | % | 1.28 | % | |||||||
Return on average equity (GAAP net income) | 5.68 | % | 13.14 | % | |||||||
Non-GAAP expenses including provision for income taxes | 2.29 | % | 0.06 | % | |||||||
Return on average equity (non-GAAP core bank operating earnings) | 7.97 | % | 13.20 | % |
2023 | 2022 | |||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | |||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Loans (1): | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,106,429 | $ | $ | 13,586 | 4.91 | % | $ | 1,003,052 | $ | $ | 11,195 | 4.46 | % | ||||||||||||||||||||||||
Commercial and industrial | 235,858 | 4,351 | 7.38 | % | 212,997 | 2,786 | 5.23 | % | ||||||||||||||||||||||||||||||
Commercial construction | 154,569 | 2,780 | 7.19 | % | 156,429 | 2,163 | 5.53 | % | ||||||||||||||||||||||||||||||
Consumer residential | 366,614 | 4,410 | 4.81 | % | 285,588 | 3,021 | 4.23 | % | ||||||||||||||||||||||||||||||
Consumer nonresidential | 5,349 | 116 | 8.67 | % | 9,455 | 179 | 7.57 | % | ||||||||||||||||||||||||||||||
Total loans (1) | $ | 1,868,819 | $ | 25,243 | 5.40 | % | 1,667,521 | 19,344 | 4.64 | % | ||||||||||||||||||||||||||||
Investment securities (2) | $ | 276,002 | $ | 1,220 | 1.77 | % | $ | 341,995 | $ | 1,485 | 1.74 | % | ||||||||||||||||||||||||||
Restricted stock | 5,380 | 89 | 6.63 | % | 7,412 | 93 | 5.02 | % | ||||||||||||||||||||||||||||||
Deposits at other financial institutions and federal funds sold | 64,722 | 876 | 5.37 | % | 40,814 | 171 | 1.66 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets and interest income | $ | 2,214,923 | $ | 27,428 | 4.95 | % | $ | 2,057,742 | $ | 21,093 | 4.10 | % | ||||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 6,721 | $ | 4,958 | ||||||||||||||||||||||||||||||||||
Premises and equipment, net | 1,083 | 1,344 | ||||||||||||||||||||||||||||||||||||
Accrued interest and other assets | 99,576 | 92,985 | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (19,432) | (15,072) | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,302,870 | $ | 2,141,957 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||
Interest - bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest - bearing deposits: | ||||||||||||||||||||||||||||||||||||||
Interest checking | $ | 641,746 | $ | $ | 5,134 | 3.17 | % | $ | 737,907 | $ | $ | 1,320 | 0.71 | % | ||||||||||||||||||||||||
Savings and money markets | 240,504 | 1,544 | 2.55 | % | 314,105 | 727 | 0.92 | % | ||||||||||||||||||||||||||||||
Time deposits | 359,217 | 3,550 | 3.92 | % | 213,845 | 752 | 1.41 | % | ||||||||||||||||||||||||||||||
Wholesale deposits | 366,667 | 3,571 | 3.86 | % | 41,957 | 93 | 0.88 | % | ||||||||||||||||||||||||||||||
Total interest - bearing deposits | $ | 1,608,134 | $ | 13,799 | 3.40 | % | $ | 1,307,814 | $ | 2,892 | 0.88 | % | ||||||||||||||||||||||||||
Other borrowed funds | $ | 9,141 | $ | 35 | 1.53 | % | $ | 81,902 | $ | 415 | 2.01 | % | ||||||||||||||||||||||||||
Subordinated notes, net of issuance costs | 19,597 | 258 | 5.21 | % | 19,542 | 258 | 5.23 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities and interest expense | $ | 1,636,872 | $ | 14,092 | 3.42 | % | $ | 1,409,258 | $ | 3,565 | 1.01 | % | ||||||||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Demand deposits | $ | 425,807 | $ | 506,700 | ||||||||||||||||||||||||||||||||||
Other liabilities | 26,681 | 22,910 | ||||||||||||||||||||||||||||||||||||
Common stockholders' equity | 213,510 | 203,089 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 2,302,870 | $ | 2,141,957 | ||||||||||||||||||||||||||||||||||
Net interest income and net interest margin | $ | 13,336 | 2.39 | % | $ | 17,528 | 3.38 | % |
2023 Compared to 2022 | |||||||||||||||||
Average Volume | Average Rate | Increase (Decrease) | |||||||||||||||
Interest income: | |||||||||||||||||
Loans (1): | |||||||||||||||||
Commercial real estate | $ | 1,154 | $ | 1,237 | $ | 2,391 | |||||||||||
Commercial and industrial | 299 | 1,266 | 1,565 | ||||||||||||||
Commercial construction | (26) | 643 | 617 | ||||||||||||||
Consumer residential | 857 | 532 | 1,389 | ||||||||||||||
Consumer nonresidential | (78) | 15 | (63) | ||||||||||||||
Total loans (1) | 2,206 | 3,693 | 5,899 | ||||||||||||||
Investment securities (2) | (286) | 21 | (265) | ||||||||||||||
Restricted stock | (26) | 22 | (4) | ||||||||||||||
Deposits at other financial institutions and federal funds sold | 117 | 588 | 705 | ||||||||||||||
Total interest income | 2,011 | 4,324 | 6,335 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest - bearing deposits: | |||||||||||||||||
Interest checking | (156) | 3,970 | 3,814 | ||||||||||||||
Savings and money markets | (170) | 987 | 817 | ||||||||||||||
Time deposits | 520 | 2,278 | 2,798 | ||||||||||||||
Wholesale deposits | 720 | 2,758 | 3,478 | ||||||||||||||
Total interest - bearing deposits | 914 | 9,993 | 10,907 | ||||||||||||||
Other borrowed funds | (481) | 101 | (380) | ||||||||||||||
Total interest expense | 433 | 10,094 | 10,527 | ||||||||||||||
Net interest income | $ | 1,578 | $ | (5,770) | $ | (4,192) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
GAAP Financial Measurements: | |||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans | $ | 25,243 | $ | 19,344 | $ | 73,625 | $ | 52,194 | |||||||||||||||
Deposits at other financial institutions and federal funds sold | 876 | 171 | 2,022 | 417 | |||||||||||||||||||
Investment securities available‑for‑sale | 1,217 | 1,481 | 3,852 | 4,471 | |||||||||||||||||||
Investment securities held‑to‑maturity | 2 | 2 | 4 | 5 | |||||||||||||||||||
Dividend on Restricted stock | 89 | 93 | 461 | 253 | |||||||||||||||||||
Total interest income | 27,427 | 21,091 | 79,964 | 57,340 | |||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Interest‑bearing deposits | $ | 13,799 | $ | 2,892 | $ | 34,592 | $ | 6,619 | |||||||||||||||
Other borrowed funds | 293 | 673 | 3,635 | 1,357 | |||||||||||||||||||
Total interest expense | $ | 14,092 | $ | 3,565 | $ | 38,227 | $ | 7,976 | |||||||||||||||
Net interest income | $ | 13,335 | $ | 17,526 | $ | 41,737 | $ | 49,364 | |||||||||||||||
Non‑GAAP Financial Measurements: | |||||||||||||||||||||||
Add: Tax benefit on tax‑exempt interest income - securities | 1 | 2 | 4 | 8 | |||||||||||||||||||
Total tax benefit on tax-exempt interest income | $ | 1 | $ | 2 | $ | 4 | $ | 8 | |||||||||||||||
Tax equivalent net interest income | $ | 13,336 | $ | 17,528 | $ | 41,741 | $ | 49,372 |
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | ||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
Loans (1): | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,107,935 | $ | $ | 39,807 | 4.79 | % | $ | 952,824 | $ | $ | 30,856 | 4.32 | % | |||||||||||||||||||||||||||
Commercial and industrial | 228,189 | 12,400 | 7.25 | % | 207,399 | 7,387 | 4.75 | % | |||||||||||||||||||||||||||||||||
Commercial construction | 154,862 | 8,233 | 7.09 | % | 170,483 | 6,379 | 4.99 | % | |||||||||||||||||||||||||||||||||
Consumer residential | 358,960 | 12,767 | 4.74 | % | 234,959 | 7,050 | 4.00 | % | |||||||||||||||||||||||||||||||||
Consumer nonresidential | 6,062 | 418 | 9.20 | % | 9,373 | 522 | 7.43 | % | |||||||||||||||||||||||||||||||||
Total loans (1) | $ | 1,856,008 | $ | 73,625 | 5.29 | % | % | $ | 1,575,038 | $ | 52,194 | 4.42 | % | % | |||||||||||||||||||||||||||
Investment securities (2) | $ | 289,735 | $ | 3,861 | 1.78 | % | $ | 348,245 | $ | 4,484 | 1.72 | % | |||||||||||||||||||||||||||||
Restricted stock | 9,343 | 460 | 6.56 | % | 6,533 | 253 | 5.16 | % | |||||||||||||||||||||||||||||||||
Deposits at other financial institutions and federal funds sold | 52,711 | 2,022 | 5.13 | % | 87,176 | 417 | 0.64 | % | |||||||||||||||||||||||||||||||||
Total interest-earning assets and interest income | $ | 2,207,797 | $ | 79,968 | 4.83 | % | % | $ | 2,016,992 | $ | 57,348 | 3.79 | % | % | |||||||||||||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 6,159 | $ | 6,811 | |||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 1,147 | 1,452 | |||||||||||||||||||||||||||||||||||||||
Accrued interest and other assets | 96,985 | 88,096 | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | (18,523) | (14,349) | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,293,565 | $ | 2,099,002 | |||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||
Interest - bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest - bearing deposits: | |||||||||||||||||||||||||||||||||||||||||
Interest checking | $ | 564,765 | $ | $ | 11,595 | 2.74 | % | $ | 743,193 | $ | $ | 3,323 | 0.60 | % | |||||||||||||||||||||||||||
Savings and money markets | 259,308 | 4,307 | 2.22 | % | 319,871 | 1,522 | 0.64 | % | |||||||||||||||||||||||||||||||||
Time deposits | 351,762 | 9,292 | 3.53 | % | 192,099 | 1,640 | 1.14 | % | |||||||||||||||||||||||||||||||||
Wholesale deposits | 332,217 | 9,398 | 3.78 | % | 37,344 | 134 | 0.48 | % | |||||||||||||||||||||||||||||||||
Total interest - bearing deposits | $ | 1,508,052 | $ | 34,592 | 3.07 | % | % | $ | 1,292,507 | $ | 6,619 | 0.68 | % | % | |||||||||||||||||||||||||||
Other borrowed funds | 98,378 | 2,862 | 3.89 | % | 44,982 | 584 | 1.73 | % | |||||||||||||||||||||||||||||||||
Subordinated notes, net of issuance costs | 19,583 | 773 | 5.27 | 19,529 | 773 | 5.29 | |||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities and interest expense | $ | 1,626,013 | $ | 38,227 | 3.14 | % | % | $ | 1,357,018 | $ | 7,976 | 0.78 | % | % | |||||||||||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 433,335 | $ | 514,238 | |||||||||||||||||||||||||||||||||||||
Other liabilities | 25,413 | 23,990 | |||||||||||||||||||||||||||||||||||||||
Common stockholders' equity | 208,804 | 203,756 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 2,293,565 | $ | 2,099,002 | |||||||||||||||||||||||||||||||||||||
Net interest income and net interest margin | $ | 41,741 | 2.53 | % | $ | 49,372 | 3.27 | % |
2023 Compared to 2022 | |||||||||||||||||
Average Volume | Average Rate | Increase (Decrease) | |||||||||||||||
Interest income: | |||||||||||||||||
Loans (1): | |||||||||||||||||
Commercial real estate | $ | 5,023 | $ | 3,928 | $ | 8,951 | |||||||||||
Commercial and industrial | 740 | 4,273 | 5,013 | ||||||||||||||
Commercial construction | (584) | 2,438 | 1,854 | ||||||||||||||
Consumer residential | 3,721 | 1,996 | 5,717 | ||||||||||||||
Consumer nonresidential | (185) | 81 | (104) | ||||||||||||||
Total loans (1) | 8,715 | 12,716 | 21,431 | ||||||||||||||
Investment securities (2) | (753) | 130 | (623) | ||||||||||||||
Restricted stock | 113 | 94 | 207 | ||||||||||||||
Deposits at other financial institutions and federal funds sold | (165) | 1,770 | 1,605 | ||||||||||||||
Total interest income | 7,910 | 14,710 | 22,620 | ||||||||||||||
Interest expense: | |||||||||||||||||
Interest - bearing deposits: | |||||||||||||||||
Interest checking | (798) | 9,070 | 8,272 | ||||||||||||||
Savings and money markets | (288) | 3,073 | 2,785 | ||||||||||||||
Time deposits | 1,363 | 6,289 | 7,652 | ||||||||||||||
Wholesale deposits | 1,058 | 8,206 | 9,264 | ||||||||||||||
Total interest - bearing deposits | 1,335 | 26,638 | 27,973 | ||||||||||||||
Other borrowed funds | 1,124 | 1,154 | 2,278 | ||||||||||||||
Total interest expense | 2,459 | 27,792 | 30,251 | ||||||||||||||
Net interest income | $ | 5,451 | $ | (13,082) | $ | (7,631) |
For the Three Months Ended September 30, | Change from Prior Year | |||||||||||||||||||||||||
2023 | 2022 | Amount | Percent | |||||||||||||||||||||||
Service charges on deposit accounts | $ | 284 | $ | 241 | $ | 43 | 17.8 | % | ||||||||||||||||||
Fees on loans | 107 | 32 | 75 | 234.4 | % | |||||||||||||||||||||
BOLI income | 373 | 352 | 21 | 6.0 | % | |||||||||||||||||||||
(Loss) Income from minority membership interest | (650) | (160) | (490) | 306.3 | % | |||||||||||||||||||||
Other fee income | 111 | 110 | 1 | 0.9 | % | |||||||||||||||||||||
Total non‑interest income | $ | 225 | $ | 575 | $ | (350) | (60.9) | % | ||||||||||||||||||
For the Nine Months Ended September 30, | Change from Prior Year | |||||||||||||||||||||||||
2023 | 2022 | Amount | Percent | |||||||||||||||||||||||
Service charges on deposit accounts | $ | 731 | $ | 706 | $ | 25 | 3.5 | % | ||||||||||||||||||
Fees on loans | 352 | 159 | 193 | 121.4 | % | |||||||||||||||||||||
BOLI income | 1,067 | 844 | 223 | 26.4 | % | |||||||||||||||||||||
(Loss) Income from minority membership interest | (1,431) | 754 | (2,185) | (289.8) | % | |||||||||||||||||||||
Loss on sale of available-for-sale securities | (4,592) | — | (4,592) | (100.0) | % | |||||||||||||||||||||
Other fee income | 362 | 381 | (19) | (5.0) | % | |||||||||||||||||||||
Total non‑interest income (loss) | $ | (3,511) | $ | 2,844 | $ | (6,355) | (223.5) | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change from Prior Year | 2023 | 2022 | Change from Prior Year | ||||||||||||||||||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 5,267 | $ | 5,202 | $ | 65 | 1.2 | % | $ | 15,374 | $ | 15,094 | $ | 280 | 1.9 | % | |||||||||||||||||||||||||||||||
Occupancy expense | 547 | 417 | 130 | 31.2 | % | 1,785 | 1,570 | 215 | 13.6 | % | |||||||||||||||||||||||||||||||||||||
Internet banking and software expense | 660 | 432 | 228 | 52.8 | % | 1,804 | 1,231 | 573 | 46.5 | % | |||||||||||||||||||||||||||||||||||||
Data processing and network administration | 601 | 595 | 6 | 1.0 | % | 1,834 | 1,688 | 146 | 8.6 | % | |||||||||||||||||||||||||||||||||||||
State franchise taxes | 584 | 509 | 75 | 14.8 | % | 1,753 | 1,527 | 226 | 14.8 | % | |||||||||||||||||||||||||||||||||||||
Audit, legal and consulting fees | 213 | 235 | (22) | (9.4) | % | 644 | 884 | (240) | (27.0) | % | |||||||||||||||||||||||||||||||||||||
Merger and acquisition expense | — | — | — | — | % | — | 125 | (125) | (100.0) | % | |||||||||||||||||||||||||||||||||||||
Loan related expenses | (189) | 242 | (431) | 178.1 | % | 199 | 230 | (31) | 13.5 | % | |||||||||||||||||||||||||||||||||||||
FDIC insurance | 431 | 155 | 276 | 178.1 | % | 968 | 515 | 453 | 88.0 | % | |||||||||||||||||||||||||||||||||||||
Marketing, business development and advertising | 167 | 93 | 74 | 79.6 | % | 527 | 270 | 257 | 95.2 | % | |||||||||||||||||||||||||||||||||||||
Director fees | 180 | 168 | 12 | 7.1 | % | 540 | 503 | 37 | 7.4 | % | |||||||||||||||||||||||||||||||||||||
Postage, courier and telephone | 39 | 33 | 6 | 18.2 | % | 134 | 124 | 10 | 8.1 | % | |||||||||||||||||||||||||||||||||||||
Core deposit intangible amortization | 50 | 97 | (47) | (48.5) | % | 157 | 298 | (141) | (47.3) | % | |||||||||||||||||||||||||||||||||||||
Tax credit amortization | 32 | — | 32 | 100.0 | % | 95 | — | 95 | 100.0 | % | |||||||||||||||||||||||||||||||||||||
Other operating expenses | 466 | 421 | 45 | 10.7 | % | 1,447 | 1,199 | 248 | 20.7 | % | |||||||||||||||||||||||||||||||||||||
Total non‑interest expense | $ | 9,048 | $ | 8,599 | $ | 449 | 5.2 | % | $ | 27,261 | $ | 25,258 | $ | 2,003 | 7.9 | % |
September 30, 2023 | December 31, 2022 | ||||||||||
Commercial real estate | 1,100,406 | 1,100,261 | |||||||||
Commercial and industrial | 224,264 | 245,220 | |||||||||
Commercial construction | 155,081 | 147,939 | |||||||||
Consumer real estate | 362,345 | 339,591 | |||||||||
Consumer nonresidential | 6,231 | 7,685 | |||||||||
Gross loans | 1,848,327 | 1,840,696 | |||||||||
Less: | |||||||||||
Allowance for credit losses on loans | 18,849 | 16,040 | |||||||||
Unearned income and (unamortized premiums), net | (1,186) | 262 | |||||||||
Loans receivable, net | $ | 1,830,664 | $ | 1,824,394 |
September 30, 2023 | December 31, 2022 | ||||||||||
Nonperforming assets: | |||||||||||
Nonaccrual loans, gross | $ | 1,366 | $ | 3,150 | |||||||
Loans contractually past‑due 90 days or more and still accruing | 144 | 1,343 | |||||||||
Total nonperforming loans (NPLs) | $ | 1,510 | $ | 4,493 | |||||||
Total nonperforming assets (NPAs) | $ | 1,510 | $ | 4,493 | |||||||
NPLs/Total Assets | 0.07 | % | 0.19 | % | |||||||
NPAs/Total Assets | 0.07 | % | 0.19 | % | |||||||
Allowance for credit losses on loans/NPLs | 1,248.28 | % | 357.00 | % | |||||||
Combined allowance for credit losses/NPLs | 1,292.85 | % | 357.00 | % |
Owner Occupied Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Construction | Total CRE | ||||||||||||||||||||||||||||||||
Asset Class | Average Loan-to-Value (1) | Number of Total Loans | Bank Owned Principal (2) | Average Loan-to-Value (1) | Number of Total Loans | Bank Owned Principal (2) | Top 3 Geographic Concentration | Number of Total Loans | Bank Owned Principal (2) | Total Bank Owned Principal (2) | % of Total Loans | ||||||||||||||||||||||||
Office, Class A | 70% | 6 | $7,580 | 48% | 4 | $3,804 | Counties of Fairfax and Loudoun, Virginia and Montgomery County, Maryland | 1 | $2,836 | $14,220 | |||||||||||||||||||||||||
Office, Class B | 47% | 35 | 13,906 | 47% | 31 | 61,660 | — | — | 75,566 | ||||||||||||||||||||||||||
Office, Class C | 49% | 6 | 3,149 | 41% | 8 | 1,974 | 1 | 788 | 5,911 | ||||||||||||||||||||||||||
Subtotal | 47 | $24,635 | 43 | $67,438 | 2 | $3,624 | $95,697 | 5% | |||||||||||||||||||||||||||
Retail- Neighborhood/Community Shop | — | $— | 44% | 31 | $84,997 | Prince George's County, Maryland, Fairfax County, Virginia and Washington, D.C. | 2 | $10,250 | 95,247 | ||||||||||||||||||||||||||
Retail- Restaurant | 58% | 9 | 8,248 | 45% | 17 | 30,733 | — | — | 38,981 | ||||||||||||||||||||||||||
Retail- Single Tenant | 60% | 5 | 2,018 | 40% | 22 | 37,313 | — | — | 39,331 | ||||||||||||||||||||||||||
Retail- Anchored,Other | 71% | 1 | 2,060 | 52% | 11 | 39,041 | 1 | 2,315 | 43,416 | ||||||||||||||||||||||||||
Retail- Grocery-anchored | — | — | 45% | 8 | 49,688 | 1 | 625 | 50,313 | |||||||||||||||||||||||||||
Subtotal | 15 | $12,326 | 89 | $241,772 | 4 | $13,190 | $267,288 | 14% | |||||||||||||||||||||||||||
Multi-family, Class A (Market) (4) | — | $— | 27% | 1 | $— | Washington, D.C., Baltimore City, Maryland and Arlington County, Virginia | 1 | $729 | 729 | ||||||||||||||||||||||||||
Multi-family, Class B (Market) | — | — | 63% | 21 | 78,669 | — | — | 78,669 | |||||||||||||||||||||||||||
Multi-family, Class C (Market) | — | — | 57% | 57 | 72,086 | 2 | 6,800 | 78,886 | |||||||||||||||||||||||||||
Multi-Family-Affordable Housing | — | — | 53% | 10 | 16,605 | 1 | 4,096 | 20,701 | |||||||||||||||||||||||||||
Subtotal | 0 | $— | 89 | $167,360 | 4 | $11,625 | $178,985 | 10% | |||||||||||||||||||||||||||
Industrial | 52% | 44 | $71,761 | 52% | 38 | $133,809 | Prince William County, Virginia, Fairfax County, Virginia and Howard County, Maryland | $— | 205,570 | ||||||||||||||||||||||||||
Warehouse | 52% | 14 | 18,914 | 30% | 11 | 11,589 | — | 30,503 | |||||||||||||||||||||||||||
Flex | 50% | 15 | 16,170 | 54% | 14 | 56,531 | — | 72,701 | |||||||||||||||||||||||||||
Subtotal | 73 | $106,845 | 63 | $201,929 | 2 | $— | $308,774 | 17% | |||||||||||||||||||||||||||
Hotels | 0 | $— | 44% | 9 | $52,956 | 1 | $6,410 | $59,366 | 3% | ||||||||||||||||||||||||||
Mixed Use | 46% | 11 | 6,804 | 61% | 36 | 62,095 | 1 | $6,824 | $75,723 | 4% | |||||||||||||||||||||||||
Other (including net deferred costs) | $62,199 | $91,367 | $112,886 | $266,452 | 14% | ||||||||||||||||||||||||||||||
Total commercial real estate and construction loans, net of fees, at September 30, 2023 | $212,809 | $884,917 | $154,559 | $1,252,285 | 68% | ||||||||||||||||||||||||||||||
1) Loan-to-value is determined at origination date against current bank owned principal. | |||||||||||||||||||||||||||||||||||
2) Minimum debt service coverage policy is 1.30x for Owner Occupied and 1.25x for Non-Owner Occupied at origination. |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net (charge-offs) recoveries | Percentage of net charge-offs (annualized) to average loans outstanding during the year | Net (charge-offs) recoveries | Percentage of net charge-offs (annualized) to average loans outstanding during the year | ||||||||||||||||||||
Commercial real estate | $ | — | — | % | $ | — | — | % | |||||||||||||||
Commercial and industrial | — | 1 | — | % | — | — | % | ||||||||||||||||
Consumer residential | — | — | % | — | — | % | |||||||||||||||||
Consumer nonresidential | 7 | — | % | (9) | — | % | |||||||||||||||||
Total | $ | 7 | — | % | $ | (9) | — | % | |||||||||||||||
Average loans outstanding during the period | $ | 1,868,819 | $ | 1,667,521 | |||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net (charge-offs) recoveries | Percentage of net charge-offs (annualized) to average loans outstanding during the year | Net (charge-offs) recoveries | Percentage of net charge-offs (annualized) to average loans outstanding during the year | ||||||||||||||||||||
Commercial real estate | $ | — | — | % | $ | — | — | % | |||||||||||||||
Commercial and industrial | (347) | (0.02) | % | (396) | (0.03) | % | |||||||||||||||||
Consumer residential | 1 | — | % | 1 | — | % | |||||||||||||||||
Consumer nonresidential | 20 | — | % | (21) | — | % | |||||||||||||||||
Total | $ | (326) | (0.02) | % | $ | (416) | (0.04) | % | |||||||||||||||
Average loans outstanding during the period | $ | 1,856,008 | $ | 1,575,038 | |||||||||||||||||||
September 30, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Allowance for credit losses to loans receivable, net of fees | 1.02 | % | 0.89 | % | |||||||||||||||||||
Combined allowance for credit losses to loans receivable, net of fees | 1.06 | % | 0.89 | % |
September 30, | December 31, | ||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Allocation | % of Total* | Allocation | % of Total* | ||||||||||||||||||||
Commercial real estate | $ | 10,639 | 59.54 | % | $ | 10,777 | 59.77 | % | |||||||||||||||
Commercial and industrial | 2,681 | 12.13 | % | 2,623 | 13.21 | % | |||||||||||||||||
Commercial construction | 1,649 | 8.39 | % | 1,499 | 8.04 | % | |||||||||||||||||
Consumer real estate | 3,807 | 19.60 | % | 1,044 | 18.45 | % | |||||||||||||||||
Consumer nonresidential | 73 | 0.34 | % | 97 | 0.42 | % | |||||||||||||||||
Total allowance for credit losses | $ | 18,849 | 100.00 | % | $ | 16,040 | 99.89 | % |
At September 30, 2023 | ||||||||||||||||||||||||||||||||
Within One Year | One to Five Years | Five to Ten Years | Over Ten Years | Total | ||||||||||||||||||||||||||||
Weighted Average Yield | Weighted Average Yield | Weighted Average Yield | Weighted Average Yield | Weighted Average Yield | ||||||||||||||||||||||||||||
Held‑to‑maturity | ||||||||||||||||||||||||||||||||
Securities of state and local municipalities tax exempt | — | 2.32 | % | — | — | 2.32 | % | |||||||||||||||||||||||||
Total held‑to‑maturity securities | — | 2.32 | % | — | — | 2.32 | % | |||||||||||||||||||||||||
Available‑for‑sale | ||||||||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | — | 1.22 | % | 1.59 | % | — | 1.49 | % | ||||||||||||||||||||||||
Securities of state and local municipalities | — | 2.25 | % | — | 2.92 | % | 2.46 | % | ||||||||||||||||||||||||
Corporate bonds | — | 10.23 | % | 4.09 | % | — | 4.39 | % | ||||||||||||||||||||||||
Mortgaged‑backed securities | — | 2.11 | % | 3.08 | % | 1.56 | % | 1.58 | % | |||||||||||||||||||||||
Total available‑for‑sale securities | — | 3.01 | % | 3.22 | % | 1.56 | % | 1.79 | % | |||||||||||||||||||||||
Total investment securities | — | 2.98 | % | 2.81 | % | 1.56 | % | 1.79 | % |
At December 31, 2022 | ||||||||||||||||||||||||||||||||
Within One Year | One to Five Years | Five to Ten Years | Over Ten Years | Total | ||||||||||||||||||||||||||||
Weighted Average Yield | Weighted Average Yield | Weighted Average Yield | Weighted Average Yield | Weighted Average Yield | ||||||||||||||||||||||||||||
Held‑to‑maturity | ||||||||||||||||||||||||||||||||
Securities of state and local municipalities tax exempt | — | 2.32 | % | — | — | 2.32 | % | |||||||||||||||||||||||||
Total held‑to‑maturity securities | — | 2.32 | % | — | — | 2.32 | % | |||||||||||||||||||||||||
Available‑for‑sale | ||||||||||||||||||||||||||||||||
Securities of U.S. government and federal agencies | — | — | 1.49 | % | — | 1.49 | % | |||||||||||||||||||||||||
Securities of state and local municipalities | — | 2.25 | % | — | 2.92 | % | 2.43 | % | ||||||||||||||||||||||||
Corporate bonds | — | 6.02 | % | 4.09 | % | — | 4.27 | % | ||||||||||||||||||||||||
Mortgaged‑backed securities | — | 2.09 | % | 2.48 | % | 1.57 | % | 1.62 | % | |||||||||||||||||||||||
Total available‑for‑sale securities | — | 3.73 | % | 2.84 | % | 1.57 | % | 1.79 | % | |||||||||||||||||||||||
Total investment securities | — | 3.65 | % | 2.51 | % | 1.57 | % | 1.79 | % |
Average Deposits Balance | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2023 and 2022 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
Noninterest bearing demand | $ | 433,335 | 22.32 | % | $ | 514,238 | 28.46 | % | |||||||||||||||
Interest-bearing deposits | |||||||||||||||||||||||
Interest checking | 564,765 | 29.10 | % | 743,193 | 41.14 | % | |||||||||||||||||
Savings and money markets | 259,308 | 13.36 | % | 319,871 | 17.70 | % | |||||||||||||||||
Certificates of deposits, $100,000 to $249,999 | 86,168 | 4.44 | % | 48,584 | 2.69 | % | |||||||||||||||||
Certificates of deposits, $250,000 or more | 265,594 | 13.68 | % | 143,515 | 7.94 | % | |||||||||||||||||
Other time deposits | 332,217 | 17.11 | % | 37,344 | 2.07 | % | |||||||||||||||||
Total | $ | 1,941,387 | 100.00 | % | $ | 1,806,745 | 100.00 | % |
September 30, 2023 | ||||||||
Three months or less | $ | 51,441 | ||||||
Over three months through six months | 106,347 | |||||||
Over six months through twelve months | 37,945 | |||||||
Over twelve months | 51,667 | |||||||
$ | 247,400 |
Actual | Minimum Capital Requirement (1) | Minimum to be Well Capitalized Under Prompt Corrective Action | |||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
At September 30, 2023 | |||||||||||||||||||||||||||||||||||
Total risk-based capital | $ | 267,572 | 13.93 | % | $ | 201,640 | > | 10.50 | % | $ | 192,038 | > | 10.00 | % | |||||||||||||||||||||
Tier 1 risk-based capital | 248,050 | 12.92 | % | 163,232 | > | 8.50 | % | 153,630 | > | 8.00 | % | ||||||||||||||||||||||||
Common equity tier 1 capital | 248,050 | 12.92 | % | 134,427 | > | 7.00 | % | 124,825 | > | 6.50 | % | ||||||||||||||||||||||||
Leverage capital ratio | 248,050 | 10.62 | % | 91,887 | > | 4.00 | % | 114,858 | > | 5.00 | % | ||||||||||||||||||||||||
At December 31, 2022 | |||||||||||||||||||||||||||||||||||
Total risk-based capital | $ | 256,898 | 13.28 | % | $ | 203,113 | > | 10.50 | % | $ | 193,441 | > | 10.00 | % | |||||||||||||||||||||
Tier 1 risk-based capital | 240,858 | 12.45 | % | 164,425 | > | 8.50 | % | 154,753 | > | 8.00 | % | ||||||||||||||||||||||||
Common equity tier 1 capital | 240,858 | 12.45 | % | 135,409 | > | 7.00 | % | 125,737 | > | 6.50 | % | ||||||||||||||||||||||||
Leverage capital ratio | 240,858 | 10.75 | % | 87,894 | > | 4.00 | % | 109,867 | > | 5.00 | % | ||||||||||||||||||||||||
(1) Includes capital conservation buffer. |
September 30, 2023 | December 31, 2022 | ||||||||||
Total stockholders’ equity (GAAP) | $ | 211,246 | $ | 202,382 | |||||||
Less: goodwill and intangibles, net | (7,632) | (7,790) | |||||||||
Tangible Common Equity (non-GAAP) | $ | 203,614 | $ | 194,592 | |||||||
Book value per common share (GAAP) | $ | 11.87 | $ | 11.58 | |||||||
Less: intangible book value per common share | (0.43) | (0.44) | |||||||||
Tangible book value per common share (non-GAAP) | $ | 11.44 | $ | 11.14 |
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101 | The following materials from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Extensible Business Reporting Language (XBRL), include: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes. | ||||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline Extensible Business Reporting Language (included with Exhibit 101). |
FVCBankcorp, Inc. | |||||
(Registrant) | |||||
Date: November 9, 2023 | /s/ David W. Pijor | ||||
David W. Pijor | |||||
Chairman and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
Date: November 9, 2023 | /s/ Jennifer L. Deacon | ||||
Jennifer L. Deacon | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) |
Date: September 9, 2023 | /s/ David W. Pijor | ||||
David W. Pijor | |||||
Chairman and Chief Executive Officer |
Date: November 9, 2023 | /s/ Jennifer L. Deacon | ||||
Jennifer L. Deacon | |||||
Executive Vice President and Chief Financial Officer |
Date: November 9, 2023 | /s/ David W. Pijor | ||||
David W. Pijor | |||||
Chairman and Chief Executive Officer |
Date: November 9, 2023 | /s/ Jennifer L. Deacon | ||||
Jennifer L. Deacon | |||||
Executive Vice President and Chief Financial Officer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 243 | $ 252 |
Securities held to maturity, allowance for credit losses | 0 | 0 |
Allowance for loan losses | $ 18,849 | $ 16,040 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 17,802,173 | 17,475,109 |
Common stock, shares outstanding (in shares) | 17,802,173 | 17,475,109 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Interest and Dividend Income | ||||
Interest and fees on loans | $ 25,243 | $ 19,344 | $ 73,625 | $ 52,194 |
Interest and dividends on securities held-to-maturity | 2 | 2 | 4 | 5 |
Interest and dividends on securities available-for-sale | 1,217 | 1,481 | 3,852 | 4,471 |
Dividends on restricted stock | 89 | 93 | 461 | 253 |
Interest on deposits at other financial institutions | 876 | 171 | 2,022 | 417 |
Total interest and dividend income | 27,427 | 21,091 | 79,964 | 57,340 |
Interest Expense | ||||
Interest on deposits | 13,799 | 2,892 | 34,592 | 6,619 |
Interest on federal funds purchased | 0 | 237 | 11 | 248 |
Interest on short-term debt | 35 | 178 | 2,851 | 336 |
Interest on subordinated notes | 258 | 258 | 773 | 773 |
Total interest expense | 14,092 | 3,565 | 38,227 | 7,976 |
Net Interest Income | 13,335 | 17,526 | 41,737 | 49,364 |
(Recovery of) Provision for credit losses | (729) | 365 | 132 | 1,900 |
Net interest income after (recovery of) provision for credit losses | 14,064 | 17,161 | 41,605 | 47,464 |
Noninterest Income | ||||
Service charges on deposit accounts | 284 | 241 | 731 | 706 |
BOLI income | 373 | 352 | 1,067 | 844 |
(Loss) income from minority membership interests | (650) | (160) | (1,431) | 754 |
Loss on sale of securities available-for-sale | 0 | 0 | (4,592) | 0 |
Other income | 218 | 142 | 714 | 540 |
Total noninterest (loss) income | 225 | 575 | (3,511) | 2,844 |
Noninterest Expenses | ||||
Salaries and employee benefits | 5,267 | 5,202 | 15,374 | 15,094 |
Occupancy expense | 547 | 417 | 1,785 | 1,570 |
Internet banking and software expense | 660 | 432 | 1,804 | 1,231 |
Data processing and network administration | 601 | 595 | 1,834 | 1,688 |
State franchise taxes | 584 | 509 | 1,753 | 1,527 |
Audit, legal and consulting fees | 213 | 235 | 644 | 884 |
Merger and acquisition expense | 0 | 0 | 0 | 125 |
Loan related (benefit)/expenses | (189) | 242 | 199 | 230 |
FDIC insurance | 431 | 155 | 968 | 515 |
Marketing, business development and advertising | 167 | 93 | 527 | 270 |
Director fees | 180 | 168 | 540 | 503 |
Postage, courier and telephone | 39 | 33 | 134 | 124 |
Core deposit intangible amortization | 50 | 97 | 157 | 298 |
Tax credit amortization | 32 | 0 | 95 | 0 |
Other operating expenses | 466 | 421 | 1,447 | 1,199 |
Total noninterest expenses | 9,048 | 8,599 | 27,261 | 25,258 |
Net income before income tax expense | 5,241 | 9,137 | 10,833 | 25,050 |
Income tax expense | 1,202 | 2,094 | 1,941 | 4,970 |
Net income | $ 4,039 | $ 7,043 | $ 8,892 | $ 20,080 |
Earnings per share, basic (in dollars per share) | $ 0.23 | $ 0.40 | $ 0.50 | $ 1.15 |
Earnings per share, diluted (in dollars per share) | $ 0.22 | $ 0.38 | $ 0.49 | $ 1.09 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,039 | $ 7,043 | $ 8,892 | $ 20,080 |
Other comprehensive income (loss): | ||||
Unrealized loss on securities available for sale, net of tax benefit of $1,987 and $1,979 for the three and nine months ended September 30, 2023, respectively, and net of tax benefit of $3,614 and $11,014 for the three and nine months ended September 30, 2022, respectively. | (7,046) | (13,555) | (7,018) | (41,433) |
Unrealized gain on interest rate swaps, net of tax expense of $839 and $1,458 for the three and nine months ended September 30, 2023, respectively,and net of tax expense of $842 and $1,037 for the three and nine months ended September 30, 2022, respectively. | 2,974 | 3,167 | 5,169 | 3,896 |
Reclassification adjustment for securities losses realized in income, net of tax expense of $0 and $1,010 for the three and nine months ended September 30, 2023, respectively, and $0 for each of the three and nine months ended September 30, 2022, respectively. | 0 | 0 | 3,582 | 0 |
Total other comprehensive income (loss) | (4,072) | (10,388) | 1,733 | (37,537) |
Total comprehensive income (loss) | $ (33) | $ (3,345) | $ 10,625 | $ (17,457) |
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit securities available for sale | $ 1,987 | $ 3,614 | $ 1,979 | $ 11,014 |
Unrealized (loss) gain on interest rate swaps, tax expense | 839 | 842 | 1,458 | 1,037 |
Reclassification adjustment for securities losses realized in income, net of tax expense | $ 0 | $ 0 | $ 1,010 | $ 0 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash Flows From Operating Activities | ||
Net income | $ 8,892 | $ 20,080 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 306 | 317 |
Provision for credit losses | 132 | 1,900 |
Net amortization of premium of securities | 322 | 484 |
Net accretion of deferred loan costs and fees | (1,349) | (1,767) |
Net accretion of acquisition accounting adjustments | (421) | (125) |
Loss on sale of available-for-sale investment securities | 4,592 | 0 |
Loss (income) from minority membership interest | 1,431 | (754) |
Amortization of subordinated debt issuance costs | 41 | 41 |
Core deposits intangible amortization | 157 | 298 |
Tax credits amortization | 95 | 0 |
Equity-based compensation expense | 909 | 799 |
BOLI income | (1,067) | (844) |
Changes in assets and liabilities: | ||
Increase in accrued interest receivable, prepaid expenses, and other assets | (9,626) | (12,368) |
Increase in accrued interest payable, accrued expenses, and other liabilities | 7,326 | 5,833 |
Net cash provided by operating activities | 11,740 | 13,894 |
Cash Flows From Investing Activities | ||
(Increase) decrease in interest-bearing deposits at other financial institutions | (15,140) | 159,823 |
Purchases of securities available-for-sale | 0 | (47,160) |
Proceeds from sales of securities available-for-sale | 35,778 | 0 |
Proceeds from redemptions of securities available-for-sale | 16,814 | 29,564 |
Net redemption (purchase) of restricted stock | 7,867 | (2,689) |
Net increase in loans | (7,571) | (209,141) |
Purchase of bank-owned life insurance | 0 | (15,000) |
Distribution received from minority owned investment | 0 | 1,040 |
Purchases of premises and equipment, net | (133) | (129) |
Net cash provided by (used in) investing activities | 37,615 | (83,692) |
Cash Flows From Financing Activities | ||
Net (decrease) increase in noninterest-bearing, interest-bearing checking, savings, and money market deposits | 9,926 | (66,873) |
(Decrease) increase in federal funds purchased | (30,000) | 72,381 |
Net decrease in FHLB advances | (185,000) | 0 |
Net increase in time deposits | 155,876 | 50,000 |
Repurchase of shares of common stock | (1,448) | 0 |
Taxes from vesting of restricted stock units | (113) | 0 |
Common stock issuance | 1,711 | 1,497 |
Net cash (used in) provided by financing activities | (49,048) | 57,005 |
Net increase (decrease) in cash and cash equivalents | 307 | (12,793) |
Cash and cash equivalents, beginning of year | 7,253 | 24,613 |
Cash and cash equivalents, end of period | $ 7,560 | $ 11,820 |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands |
Total |
Revision of Prior Period, Accounting Standards Update, Adjustment |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Retained Earnings
Revision of Prior Period, Accounting Standards Update, Adjustment
|
Accumulated Other Comprehensive Income (Loss) |
|||
---|---|---|---|---|---|---|---|---|---|---|
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 13,727,000 | |||||||||
Balance at the beginning of the period at Dec. 31, 2021 | $ 209,796 | $ 137 | $ 121,798 | $ 89,904 | $ (2,043) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 20,080 | 20,080 | ||||||||
Other Comprehensive (Loss) Income | (37,537) | (37,537) | ||||||||
Common stock issuance for options exercised, net (in shares) | 219,000 | |||||||||
Common stock issuance for options exercised, net | 1,497 | $ 3 | 1,494 | |||||||
Vesting of restricted stock grants (in shares) | 46,000 | |||||||||
Stock-based compensation expense | 799 | 799 | ||||||||
Balance at the end of the period (in shares) at Sep. 30, 2022 | 13,992,000 | |||||||||
Balance at the end of the period at Sep. 30, 2022 | 194,635 | $ 140 | 124,091 | 109,984 | (39,580) | |||||
Balance at the beginning of the period (in shares) at Dec. 31, 2021 | 13,727,000 | |||||||||
Balance at the beginning of the period at Dec. 31, 2021 | $ 209,796 | $ 137 | 121,798 | 89,904 | (2,043) | |||||
Balance at the end of the period (in shares) at Dec. 31, 2022 | 17,475,109 | 17,475,000 | ||||||||
Balance at the end of the period at Dec. 31, 2022 | $ 202,382 | [1] | $ (2,808) | $ 175 | 123,886 | 114,888 | $ (2,808) | (36,567) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | |||||||||
Balance at the beginning of the period (in shares) at Jun. 30, 2022 | 13,971,000 | |||||||||
Balance at the beginning of the period at Jun. 30, 2022 | $ 197,599 | $ 140 | 123,710 | 102,941 | (29,192) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 7,043 | 7,043 | ||||||||
Other Comprehensive (Loss) Income | (10,388) | (10,388) | ||||||||
Common stock issuance for options exercised, net (in shares) | 3,000 | |||||||||
Common stock issuance for options exercised, net | 33 | 33 | ||||||||
Vesting of restricted stock grants (in shares) | 18,000 | |||||||||
Stock-based compensation expense | 348 | 348 | ||||||||
Balance at the end of the period (in shares) at Sep. 30, 2022 | 13,992,000 | |||||||||
Balance at the end of the period at Sep. 30, 2022 | $ 194,635 | $ 140 | 124,091 | 109,984 | (39,580) | |||||
Balance at the beginning of the period (in shares) at Dec. 31, 2022 | 17,475,109 | 17,475,000 | ||||||||
Balance at the beginning of the period at Dec. 31, 2022 | $ 202,382 | [1] | $ (2,808) | $ 175 | 123,886 | 114,888 | $ (2,808) | (36,567) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 8,892 | 8,892 | ||||||||
Other Comprehensive (Loss) Income | 1,733 | 1,733 | ||||||||
Repurchase of common stock (in shares) | (116,000) | |||||||||
Repurchase of common stock | (1,460) | $ (1) | (1,447) | (12) | ||||||
Common stock issuance for options exercised, net (in shares) | 360,000 | |||||||||
Common stock issuance for options exercised, net | 1,711 | $ 4 | 1,707 | |||||||
Vesting of restricted stock grants (in shares) | 83,000 | |||||||||
Vesting of restricted stock grants | (113) | (113) | ||||||||
Stock-based compensation expense | $ 909 | 909 | ||||||||
Balance at the end of the period (in shares) at Sep. 30, 2023 | 17,802,173 | 17,802,000 | ||||||||
Balance at the end of the period at Sep. 30, 2023 | $ 211,246 | $ 178 | 124,942 | 120,960 | (34,834) | |||||
Balance at the beginning of the period (in shares) at Jun. 30, 2023 | 17,783,000 | |||||||||
Balance at the beginning of the period at Jun. 30, 2023 | 211,051 | $ 178 | 124,713 | 116,922 | (30,762) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 4,039 | 4,039 | ||||||||
Other Comprehensive (Loss) Income | (4,072) | (4,072) | ||||||||
Repurchase of common stock | (1) | (1) | ||||||||
Vesting of restricted stock grants (in shares) | 19,000 | |||||||||
Vesting of restricted stock grants | (30) | (30) | ||||||||
Stock-based compensation expense | $ 259 | 259 | ||||||||
Balance at the end of the period (in shares) at Sep. 30, 2023 | 17,802,173 | 17,802,000 | ||||||||
Balance at the end of the period at Sep. 30, 2023 | $ 211,246 | $ 178 | $ 124,942 | $ 120,960 | $ (34,834) | |||||
|
Organization and Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization FVCBankcorp, Inc. (the "Company"), a Virginia corporation, was formed in 2015 and is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended. The Company is headquartered in Fairfax, Virginia. The Company conducts its business activities through the branch offices of its wholly owned subsidiary bank, FVCbank (the "Bank"). The Company exists primarily for the purposes of holding the stock of its subsidiary, the Bank. The Bank was organized under the laws of the Commonwealth of Virginia to engage in a general banking business serving the Washington, D.C. and Baltimore metropolitan areas. The Bank commenced operations on November 27, 2007 and is a member of the Federal Reserve System (the "Federal Reserve") and the Federal Deposit Insurance Corporation (the "FDIC"). It is subject to the regulations of the Board of Governors of the Federal Reserve and the State Corporation Commission of Virginia. Consequently, it undergoes periodic examinations by these regulatory authorities. On August 31, 2021, the Bank had made an investment in Atlantic Coast Mortgage, LLC (“ACM”) for $20.4 million. As a result of this investment, the Bank obtained a 28.7% ownership interest in ACM, which is subject to an earnback option of up to 3.7% over a three year period. The investment is accounted for using the equity method of accounting. In addition, the Bank provides a warehouse lending facility to ACM, which includes a construction-to-permanant financing line, and has developed portfolio mortgage products to diversify the Bank's held to investment loan portfolio. On December 15, 2022, the Company announced that the Board of Directors approved a five-for-four split of the Company's common stock in the form of a 25% stock dividend for shareholders of record on January 9, 2023, payable on January 31, 2023. Earnings per share and all other per share information reflected in the Company's consolidated financial statements have been adjusted for the five-for-four split of the Company's common stock for comparative purposes. Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and follow general practice within the banking industry. Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements; however, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s audited financial statements for the year ended December 31, 2022. Certain prior period amounts have been reclassified to conform to current period presentation. Principles of Consolidation The consolidated financial statements include the accounts of the Company. All material intercompany balances and transactions have been eliminated in consolidation. Significant Accounting Policies The accounting and reporting policies of the Company are in accordance with GAAP and conform to general practices within the banking industry. Allowance for Credit Losses The Company adopted the current expected credit loss model ("CECL") under Accounting Standards Update ("ASU") 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2023. The Company recorded a net reduction of retained earnings of $2.8 million upon adoption. The adoption adjustment included an increase in the allowance for credit losses on loans of $2.9 million in addition to an increase of $800 thousand to the reserve for unfunded commitments. Allowance for Credit Losses - Loans and Unfunded Commitments The allowance for credit losses represents an estimate of the expected credit losses in the Company's held for investment loan portfolio as of a valuation date. Accounting Standards Codification ("ASC") 326 replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the held for investment loan portfolio. Loans, or portions thereof, are charged off against the allowance for credit losses when they are deemed uncollectible. Expected recoveries are recorded to the extent they do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Reserves on loans that do not share risk characteristics are evaluated on an individual basis. Nonaccrual loans are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. The remainder of the portfolio, representing all loans not evaluated individually for impairment, is segmented based on call report code and processed through a cash flow valuation model. In particular, loan-level probability of default ("PD") and severity (also referred to as loss given default ("LGD")) is applied to derive a baseline expected loss as of the valuation date. These expected default and severity rates, which are regression-derived and based on peer historical loan-level performance data, are calibrated to incorporate the Company's reasonable and supportable forecast of future losses as well as any necessary qualitative adjustments. Typically, financial institutions use their historical loss experience and trends in losses for each loan segment which are then adjusted for portfolio trends and economic and environmental factors in determining the allowance for credit losses. Since the Bank’s inception in 2007, the Company has experienced minimal loss history within its loan portfolio. Due to the fact that limited internal loss history exists to generate statistical significance, management determined it was most prudent to rely on peer data when deriving its best estimate of PD and LGD. As part of the Company's estimation process, management will continue to assess the reasonableness of the data, assumptions, and model methodology utilized to derive its allowance for credit losses. For each of the modeled loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, PD rates, and LGD rates. The modeling of expected prepayment speeds is based on internal loan-level historical data. The Company utilizes national unemployment for its reasonable and supportable forecasting of expected default within the cash flow model. To further adjust the allowance for credit losses for expected losses not already within the quantitative component of the calculation, the Company may consider qualitative factors as prescribed in ASC 326. Financial instruments include off-balance sheet credit instruments such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records a reserve for unfunded commitments on off-balance sheet credit exposures through a charge to provision for credit loss expense in its Consolidated Statement of Income. The reserve for unfunded commitments is estimated by call report code segmentation as of the valuation date under the CECL model using the same methodologies as portfolio loans taking utilization rates into consideration. The reserve for unfunded commitments is reflected as a liability on the Company's Consolidated Balance Sheet. The Company's methodology utilized in the estimation of the allowance for credit losses, which is performed at least quarterly, is designed to be dynamic and responsive to changes in its loan portfolio credit quality, composition, and forecasted economic conditions. The review of the reasonableness and appropriateness of the allowance for credit losses is reviewed by the CECL Committee for approval as of the valuation date. Additionally, information is provided to the Board of Directors on a quarterly basis along with the Company's consolidated financial statements. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the net present value ("NPV") from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Allowance for Credit Losses - Securities The Company evaluates its available-for-sale and held-to-maturity debt securities portfolios for expected credit losses as of the valuation date under ASC 326. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it would be required to sell, the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income during the current period. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other driving factors. If the Company's assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an ACL is recorded for the credit loss (which represents the difference between the expected cash flows and amortized cost basis), limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. The entire amount of an impairment loss is recognized in earnings only when: (1) the Company intends to sell the security; or (2) it is more likely than not that the Company will have to sell the security before recovery of the Company's amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders' equity as comprehensive income, net of deferred taxes. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance for credit losses when the Company believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a noncredit-related impairment. As part of its estimation process, the Company have made a policy election to exclude accrued interest from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in other assets in the Consolidated Balance Sheet. Available-for-sale debt securities are placed on nonaccrual status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on nonaccrual status. Accordingly, the Company does not recognize an allowance for credit loss against accrued interest receivable. This approach is consistent with the Company's nonaccrual policy implemented for its loan portfolio. The Company separately evaluates its held-to-maturity investment securities for any credit losses. If it determines that a security indicates evidence of deteriorated credit quality, the security is individually-evaluated and a discounted cash flow analysis is performed and compared to the amortized cost basis. As of September 30, 2023, the Company had one security classified as held-to-maturity with an amortized cost basis of $264 thousand with the remainder of the securities portfolio held as available-for-sale. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU 2021-01 "Reference Rate Reform (Topic 848): Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. We have certain loans, interest rate swap agreements, investment securities, and debt obligations with interest rates indexed to LIBOR. The administrator of LIBOR announced that the most commonly used U.S. dollar LIBOR settings would cease to be published or cease to be representative after June 30, 2023. Central banks and regulators around the world have commissioned working groups to find suitable replacements for LIBOR and other benchmark rates and to implement financial benchmark reforms more generally. There continues to be uncertainty regarding the use of alternative reference rates ("ARRs"), which may cause disruptions in a variety of markets, as well as adversely impact its business, operations and financial results. The Adjustable Interest Rate (LIBOR) Act, enacted in March 2022, provides a statutory framework to replace LIBOR with a benchmark rate based on Secured Overnight Funding Rate ("SOFR") for contracts governed by U.S. law that have no or ineffective fallbacks. Although governmental authorities have endeavored to facilitate an orderly discontinuation of LIBOR, no assurance can be provided that this aim will be achieved or that the use, level, and volatility of LIBOR or other interest rates, or the value of LIBOR-based securities will not be adversely affected. To facilitate an orderly transition from interbank offered rates and other benchmark rates to ARRs, the Company has established an enterprise-wide initiative led by senior management. The objective of this initiative is to identify, assess and monitor risks associated with the expected discontinuation or unavailability of benchmarks, including LIBOR, achieve operational readiness and engage impacted clients in connection with the transition to ARRs. The Company is assessing ASU 2020-04 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. In August 2020, the FASB issued ASU 2020-06 "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity." The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, including the Company, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions". ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not expect the adoption of ASU 2022-03 to have a material impact on its consolidated financial statements. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848". ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the LIBOR would would cease being published. In 2021, the administrator of LIBOR delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method”. These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The ASU is effective for public business entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The Company does not expect the adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU, as amended, requires an entity to measure expected credit losses for financial assets carried at amortized cost based on historical experience, current conditions, and reasonable and supportable forecasts. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. This standard is commonly referred to as the current expected credit loss ("CECL") methodology. ASU 2016-13 was effective for the Company on January 1, 2023. The adjustment recorded at adoption to the overall allowance for credit losses, which consisted of adjustments to the allowance for credit losses on loans and reserve for unfunded loan commitments, was $3.7 million. The adjustment, net of tax, recorded to stockholders’ equity totaled $2.8 million at January 1, 2023. In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of troubled debt restructuring ("TDRs"), an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. ASU 2022-02 was effective for the Company on January 1, 2023. ASU 2022-02 resulted in no material impact to the Company's consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815), Fair Value Hedging—Portfolio Layer Method.” ASU 2022-01 clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets and is intended to better align hedge accounting with an organization’s risk management strategies. In 2017, FASB issued ASU 2017-12 to better align the economic results of risk management activities with hedge accounting. One of the major provisions of that standard was the addition of the last-of-layer hedging method. For a closed portfolio of fixed-rate prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, such as mortgages or mortgage-backed securities, the last-of-layer method allows an entity to hedge its exposure to fair value changes due to changes in interest rates for a portion of the portfolio that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flows. ASU 2022-01 renames that method the portfolio layer method. ASU 2022-01 was effective for the Company on January 1, 2023. ASU 2022-01 resulted in no material impact to the Company's consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. ASU 2021-08 was effective for the Company on January 1, 2023. ASU 2021-08 resulted in no material impact to the Company's consolidated financial statements.
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Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities Amortized cost and fair values of securities held-to-maturity and securities available-for-sale as of September 30, 2023 and December 31, 2022, are as follows:
As a result of the adoption of ASC 326, no allowance for credit losses was recognized as of September 30, 2023 related to the Company's investment portfolio. The Company had $2.2 million and $4.1 million in securities pledged with the Federal Reserve Bank of Richmond ("FRB") to collateralize certain municipal deposits at September 30, 2023 and December 31, 2022, respectively. The Company had $121.4 million in securities pledged with the Virginia Department of Treasury to collateralize certain municipal deposits at September 30, 2023. There were $104.6 million securities pledged to the Virginia Department of Treasury at December 31, 2022. The Company monitors the credit quality of held-to-maturity securities through the use of credit rating. The Company monitors credit rating on a periodic basis. The following table summarizes the amortized cost of held-to-maturity securities at September 30, 2023, aggregated by credit quality indicator:
The following table shows fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2023 and December 31, 2022, respectively. One security was held as of September 30, 2023 for which the book value and fair value were equal and therefore neither an unrealized gain nor loss was reflected herein. The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security’s market value exceeded its amortized cost on other days during the past twelve-month period. Available-for-sale securities that have been in a continuous unrealized loss position as of September 30, 2023 are as follows:
Available-for-sale and held-to-maturity securities that have been in a continuous unrealized loss position as of December 31, 2022 are as follows:
Securities of U.S. government and federal agencies: The unrealized losses on three available-for-sale securities were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Securities of state and local municipalities tax-exempt: The unrealized loss on two of the investments in securities of state and local municipalities was caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. These investments carry an S&P investment grade rating of AA+. Securities of state and local municipalities taxable: The unrealized loss on one of the investments in securities of state and local municipalities was caused by interest rate increases. The contractual terms of this investment does not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The investment carries an S&P investment grade rating of AAA. Corporate bonds: The unrealized losses on the investments in corporate bonds were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. One of these investments carries an S&P investment grade rating of BBB. The remaining 13 investments do not carry a rating. SBA pass-through securities: The unrealized losses on one available-for-sale security was caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Mortgage-backed securities: The unrealized losses on the Company’s investment in 57 mortgage-backed securities were caused by interest rate increases. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider those investments to be impaired at September 30, 2023. Collateralized mortgage obligations ("CMOs"): The unrealized loss associated with 12 CMOs was caused by interest rate increases. The contractual cash flows of these investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company’s investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider those investments to be impaired at September 30, 2023. The Company has evaluated its available-for-sale investments securities in an unrealized loss position for credit related impairment at September 30, 2023 and December 31, 2022 and concluded no impairment existed based on several factors which included: (1) the majority of these securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) issuers continue to make timely principal and interest payments, and (4) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. Additionally, the Company’s mortgage-backed investment securities are primarily guaranteed by the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, or the Government National Mortgage Association and do not have credit risk given the implicit and explicit government guarantees associated with these agencies. In the first quarter of 2023, the Company executed a balance sheet repositioning strategy and sold available-for-sale investment securities with a total book value of $40.3 million at a pre-tax loss of $4.6 million and used the net proceeds to reduce existing high cost short-term FHLB advances and to fund higher yielding newly originated commercial loans. The deleverage strategy provides the Company with improved liquidity, enhanced tangible common equity, and additional run rate earnings. The amortized cost and fair value of securities as of September 30, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties.
For the nine months ended September 30, 2023 and 2022, proceeds from principal repayments of securities were $16.6 million and $20.5 million, respectively. During the nine months ended September 30, 2023 and 2022, proceeds from sales, calls and maturities of securities were $35.8 million and zero, respectively. There were $4.6 million gross realized losses during the nine months ended September 30, 2023 and zero for the nine months ended September 30, 2022.
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Loans and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | Loans and Allowance for Credit Losses A summary of loan balances by type follows:
The loan portfolio summary is presented on amortized cost basis as of September 30, 2023. For the year ended December 31, 2022, the loan portfolio is presented at outstanding principal balance. During 2018, as a result of the Company’s acquisition of Colombo Bank ("Colombo"), the loan portfolio was segregated between loans initially accounted for under the amortized cost method (referred to as “originated” loans) and loans acquired (referred to as “acquired” loans). The loans segregated to the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either ASC 310-30 or ASC 310-20. The outstanding principal balance and related carrying amount of acquired loans included in the consolidated balance sheets as of December 31, 2022 is as follows:
The following table presents changes during the year ended December 31, 2022, in the accretable yield on purchased credit impaired loans for which the Company applies ASC 310-30.
An analysis of the allowance for credit losses for the three and nine months ended September 30, 2023 and 2022, and for the year ended December 31, 2022, follows: Allowance for Credit Losses For the Three Months Ended September 30, 2023 (In thousands)
Allowance for Credit Losses For the Nine Months Ended September 30, 2023 (In thousands)
Allowance for Credit Losses For the Three Months Ended September 30, 2022 (In thousands)
Allowance for Credit Losses For the Nine Months Ended September 30, 2022 (In thousands)
Allowance for Credit Losses For the Year Ended December 31, 2022 (In thousands)
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023:
The following tables present the recorded investment in loans and evaluation method as of September 30, 2022 and at December 31, 2022, by portfolio segment: Allowance for Credit Losses At September 30, 2022 (In thousands)
Loans Receivable At September 30, 2022 (In thousands)
Allowance for Credit Losses At December 31, 2022 (In thousands)
Loans Receivable At December 31, 2022 (In thousands)
Impaired loans by class excluding purchased credit impaired at December 31, 2022, are summarized as follows: Impaired Loans – Originated Loan Portfolio
There were no impaired loans in the acquired loan portfolio at December 31, 2022. No additional funds are committed to be advanced in connection with the impaired loans. There were no nonaccrual loans excluded from the impaired loan disclosure. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass — Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. Special Mention — Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard — Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the enhanced possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful — Loans classified as doubtful include those loans which have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, improbable. Loss — Loans classified as loss include those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted. Even though partial recovery may be achieved in the future, it is neither practical nor desirable to defer writing off these loans. Based on the most recent analysis performed, amortized cost basis of loans by risk category, class and year of origination was as follows as of September 30, 2023:
As of September 30, 2023 – Total Loan Portfolio
Based on the most recent analysis performed, the risk category of loans by class of loans was as follows as of December 31, 2022: As of December 31, 2022 – Originated Loan Portfolio
As of December 31, 2022 – Acquired Loan Portfolio
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes larger non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. At September 30, 2023, the Company had $811 thousand in loans identified as special mention, a decrease from $10.4 million at December 31, 2022. Special mention rated loans are loans that have a potential weakness that deserves management’s close attention; however, the borrower continues to pay in accordance with their contract. Loans rated as special mention do not have a specific reserve and are considered well-secured. At September 30, 2023, the Company had $2.3 million in loans identified as substandard, a decrease of $1.8 million from December 31, 2022. The increase in substandard loans was primarily related to the addition of one loan. Substandard rated loans are loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. For each of these substandard loans, a liquidation analysis is completed. At September 30, 2023, an individually assessed allowance for credit losses totaling $72 thousand has been estimated to supplement any shortfall of collateral. Past due and nonaccrual loans presented by loan class were as follows at September 30, 2023 and December 31, 2022 As of September 30, 2023
As of December 31, 2022 – Originated Loan Portfolio
As of December 31, 2022 – Acquired Loan Portfolio
The following presents nonaccrual loans as of September 30, 2023:
There were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2023 and December 31, 2022, respectively. There were overdrafts of $133 thousand and $1.3 million at September 30, 2023 and December 31, 2022, respectively, which have been reclassified from deposits to loans. At September 30, 2023 and December 31, 2022, loans with a carrying value of $566.9 million and $458.7 million, respectively, were pledged to the FHLB. Modifications with Borrowers Experiencing Financial Difficulty On January 1, 2023, the Company adopted ASU 2022-02, which eliminates the accounting guidance for TDRs and enhances the disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty ("FDMs"). FDMs occur as a result of loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof. FDMs exclude loans held for sale and loans accounted for under the fair value option. Loans with guarantor support, or guaranteed loans are included in the Company's disclosed population of FDMs when those loan modifications are granted to a borrower experiencing financial difficulty. There were 5 loans of $8.1 million modified during the the nine months ended September 30, 2023 with a combination of payment delays and contractual extension to the maturity of the loan. No loans were modified with principal and interest forgiveness or an interest rate reduction. All loans modified during the nine month ended September 30, 2023 are performing according the modified contractual terms. Prior to the adoption of ASC 326, the Company had zero reserves for unfunded commitments as of December 31, 2022. Upon adoption of ASC 326, the Company established a reserve for unfunded commitments of $811 thousand as of January 1, 2023. As of September 30, 2023, the reserve for unfunded commitments increased to $673 thousand. The following table presents a breakdown of the provision for credit losses included in the Consolidated Statements of Income for the applicable periods:
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate swap agreements ("swap agreements") to facilitate the risk management strategies needed to accommodate the needs of its banking customers. The Company mitigates the risk of entering into these loan agreements by entering into equal and offsetting swap agreements with highly-rated third party financial institutions. These back-to-back swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated balance sheets (asset positions are included in other assets and liability positions are included in other liabilities) as of September 30, 2023 and December 31, 2022. The Company is party to master netting arrangements with its financial institution counterparty; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. These payments, commonly referred to as variation margin, are recorded as settlements of the derivatives’ mark-to-market exposure rather than collateral against the exposures, which effectively results in any centrally cleared derivative having a Level 2 fair value that approximates zero on a daily basis, and therefore, these swap agreements were not included in the offsetting table in the Fair Value Measurement section. As of September 30, 2023, the Company had entered into 17 interest rate swap agreements which are collateralized with $30 thousand in cash. There were 15 interest rate swap agreements outstanding as of December 31, 2022 which were collateralized with $30 thousand in cash. The notional amount and fair value of the Company’s derivative financial instruments as of September 30, 2023 and December 31, 2022 were as follows:
Interest Rate Risk Management—Cash Flow Hedging Instruments The Company uses FHLB advances and other wholesale funding from time to time as a source of funds for use in the Company’s lending and investment activities and other general business purposes. This wholesale funding exposes the Company to increased interest rate risk as a result of the variability in cash flows (future interest payments). The Company believes it is prudent to reduce this interest rate risk. To meet this objective, the Company entered into interest rate swap agreements whereby the Company reduces the interest rate risk associated with the Company’s variable rate advances (or other wholesale funding) from the designation date and going through the maturity date. At September 30, 2023 and December 31, 2022, the information pertaining to outstanding interest rate swap agreements used to hedge variability in cash flows was as follows:
These agreements provided for the Company to receive payments determined by a specific index in exchange for making payments at a fixed rate. At September 30, 2023 and December 31, 2022, the unrealized gain relating to interest rate swaps designated as hedging instruments of the variability of cash flows associated with the interest payments on FHLB advances and wholesale deposits are reported in other comprehensive income. These amounts are subsequently reclassified into interest expense as a yield adjustment in the same period in which the related interest on the funding affects earnings. The Company measures cash flow hedging relationships for effectiveness on a monthly basis, and at September 30, 2023 and December 31, 2022, the hedges were highly effective and the amount of ineffectiveness reflected in earnings was de minimus.
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Financial Instruments with Off-Balance Sheet Risk |
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Financial Instruments with Off-Balance Sheet Risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The Company is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. At September 30, 2023 and December 31, 2022, the following financial instruments were outstanding, which contract amounts represent credit risk:
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer. Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Substantially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments, if deemed necessary. The Company enters into rate lock commitments to finance residential mortgage loans with its customers. These commitments offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and closes within the timeframe established by the Company. The Company maintains its cash accounts with the FRB and correspondent banks. The total amount of cash on deposit in correspondent banks exceeding the federally insured limits was $3.1 million and $1.4 million at September 30, 2023 and December 31, 2022, respectively.
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Stock-Based Compensation Plan |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plan | Stock-Based Compensation Plan The Company’s Amended and Restated 2008 Option Plan (the "Plan"), which is stockholder-approved, was adopted to advance the interests of the Company by providing selected key employees of the Company, their affiliates, and directors with the opportunity to acquire shares of common stock in connection with their service to the Company. In May 2022, the stockholders approved an amendment to the Plan to extend the term and increase the number of shares authorized for issuance under the Plan by 200,000 shares. The Company has granted stock options and restricted stock units under the Plan. The maximum number of shares with respect to which awards may be made is 2,929,296 shares of common stock, subject to adjustment for certain corporate events. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant, generally vest annually over four years of continuous service and have a contractual term of ten years. At September 30, 2023, 148,125 shares were available to grant under the Plan. No options were granted during the three months ended September 30, 2023 and 2022, respectively. For the nine months ended September 30, 2023, there were 63,634 shares withheld from issuance upon exercise of options in order to cover the cost of the exercise by the participant. There were 4,772 shares withheld from issuance upon exercise of options in order to cover the cost of the exercise by the participant during the nine months ended September 30, 2022. A summary of option activity under the Plan as of September 30, 2023 and changes during the nine months ended is presented below:
(1) The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2023. This amount changes based on changes in the market value of the Company’s common stock. As of September 30, 2023, all outstanding stock options granted under the Plan are fully vested and amortized. There was $0 thousand in income tax benefit related to stock options exercised and recognized in the income statement for share-based compensation arrangements for the three months ended September 30, 2023. There was $31 thousand in income tax benefit related to stock options exercised and recognized in the income statement for share-based compensation arrangements for the three months ended September 30, 2022. Tax benefits recognized in the income statement for share-based compensation arrangements during the nine months ended September 30, 2023 and 2022 totaled $479 thousand and $235 thousand, respectively. Restricted stock units relating to 9,438 shares were granted during the nine months ended September 30, 2023. There were 119,720 restricted stock units granted during the three months ended September 30, 2022. For the nine months ended September 30, 2023, there were 10,071 shares withheld from issuance upon vesting of restricted stock units in order to cover the cost of the vesting by the participant. There were no shares withheld from issuance upon vesting of restricted stock units in order to cover the cost of the vesting by the participant during the nine months ended September 30, 2022. A summary of the Company’s restricted stock unit grant activity as of September 30, 2023 is shown below.
The compensation cost that has been charged to income for the Plan was $259 thousand and $348 thousand for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, there was $2.2 million of total unrecognized compensation cost related to nonvested restricted stock units granted under the Plan. The cost is expected to be recognized over a weighted-average period of 28 months.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with Fair Value Measurements and Disclosures topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date (exit price). Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available-for-sale: Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that considers observable market data (Level 2). Cash flow hedges: The Company has loan interest rate swap derivatives and interest rate swap derivatives on certain time deposits and borrowings, which the latter are designated as cash flow hedges. These derivatives are recorded at fair value using published yield curve rates from a national valuation service. These observable rates and inputs are applied to a third party industry-wide valuation model, and therefore, the valuations fall into a Level 2 category. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:
Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower of cost or market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: At September 30, 2023, all of the Company's individually evaluated loans were evaluated based upon the fair value of the collateral. In accordance with ASC 820, individually evaluated loans where an allowance is established based on the the fair value of collateral (i.e., those loans that are collateral dependent) require classification in the fair value hierarchy. Fair value is measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, has the value derived by discounting comparable sales due to lack of similar properties, or is discounted by the Company due to marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired Loans (prior to adoption of ASC 326): Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the present value of future cash flows, observable market price of the loan or the fair value of the collateral. Fair value is measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, has the value derived by discounting comparable sales due to lack of similar properties, or is discounted by the Company due to marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the allowance for credit losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022:
The following table displays quantitative information about Level 3 Fair Value Measurements for September 30, 2023 and December 31, 2022:
The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2023 and December 31, 2022. Fair values for September 30, 2023 and December 31, 2022 are estimated under the exit price notion in accordance with ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.”
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of stock which then shared in the earnings of the Company. Holders of the Company’s restricted stock units do not have voting rights during the vesting period and therefore, restricted stock units are not included in the computation of basic earnings per share. Weighted average shares – diluted includes the potential dilution of stock options and restricted stock units as of September 30, 2023 and 2022, respectively. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares of dilutive potential common stock. Dilutive potential common stock has no effect on income available to common stockholders. There were 9,327 restricted stock units excluded from weighted average dilutive shares for the three and nine months ended September 30, 2023 as the shares were anti-dilutive. There were no anti-dilutive shares for three and nine month periods ended September 30, 2022.
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Accumulated Other Comprehensive Income (Loss) |
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Statement of Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) ("AOCI") for the three and nine months ended September 30, 2023 and 2022 are shown in the following table. The Company has two components, which are available-for-sale securities and cash flow hedges, for the periods presented.
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Subordinated Notes |
9 Months Ended |
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Sep. 30, 2023 | |
Subordinated Borrowings [Abstract] | |
Subordinated Notes | Subordinated Notes On June 20, 2016, the Company issued $25.0 million of fixed-to-floating rate subordinated notes due June 30, 2026, in a private placement to accredited investors. Interest was payable at 6.00% per annum, from and including June 20, 2016 to, but excluding, June 30, 2021, semi-annually in arrears. From and including June 30, 2021 to the maturity date or early redemption date, the interest rate was to reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 487 basis points, payable quarterly in arrears. The Company had the option, on any scheduled interest payment date, to redeem the subordinated notes, in whole or in part, upon not fewer than 30 nor greater than 60 days’ notice to holders, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. In August 2021, the Company provided a redemption notice to each holder of the subordinated notes that the notes would be redeemed on September 30, 2021 or such later date as the holder returned its note to the Company. The Company redeemed and paid $23.8 million of principal during the year ended December 31, 2021. The remaining note holders redeemed their notes with a principal balance of $1.2 million in February 2022. The notes stopped accruing interest effective as of the September 30, 2021 redemption date. On October 13, 2020, the Company completed its private placement of $20.0 million of its 4.875% Fixed to Floating Subordinated Notes due 2030 (the "Notes") to certain qualified institutional buyers and accredited investors. The Notes have a maturity date of October 15, 2030 and carry a fixed rate of interest of 4.875% for the first five years. Thereafter, the Notes will pay interest at 3-month SOFR plus 471 basis points, resetting quarterly. The Notes include a right of prepayment without penalty on or after October 15, 2025. The Notes have been structured to qualify as Tier 2 capital for regulatory purposes.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASU 2014-09 ‘‘Revenue from Contracts with Customers’’ ("Topic 606") and all subsequent ASUs that modified Topic 606 in recognizing revenue. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, gain on sale of securities, bank-owned life insurance income, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to non-interest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Non-interest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and personal checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, Exchange and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges and are included in other income on the Company’s consolidated statements of income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. This income is reflected in other income on the Company’s consolidated statements of income. Other Income Other non-interest income consists of loan swap fees, insurance commissions, and other miscellaneous revenue streams not meeting the criteria above. When the Company enters into an interest rate swap agreement, the Company may receive an additional one-time payment fee which is recognized as income when received. The Company receives monthly recurring commissions based on a percentage of premiums issued and revenue is recognized when received. Any residual miscellaneous fees are recognized as they occur, and therefore, the Company determined this consistent practice satisfies the obligation for performance. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months and nine months ended September 30, 2023 and 2022, respectively:
Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s non-interest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2023 and 2022, the Company did not have any significant contract balances. Contract Acquisition Costs Under Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company did not capitalize any contract acquisition cost during the three months ended September 30, 2023 or 2022.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Information | Supplemental Cash Flow Information Below is additional information regarding the Company’s cash flows for the nine months ended September 30, 2023 and 2022.
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Organization and Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and follow general practice within the banking industry. Accordingly, the unaudited consolidated financial statements do not include all the information and footnotes required by GAAP for complete financial statements; however, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of the interim periods presented have been made. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s audited financial statements for the year ended December 31, 2022. Certain prior period amounts have been reclassified to conform to current period presentation.
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Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company. All material intercompany balances and transactions have been eliminated in consolidation.
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Allowance for Credit Losses | Allowance for Credit Losses The Company adopted the current expected credit loss model ("CECL") under Accounting Standards Update ("ASU") 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” on January 1, 2023. The Company recorded a net reduction of retained earnings of $2.8 million upon adoption. The adoption adjustment included an increase in the allowance for credit losses on loans of $2.9 million in addition to an increase of $800 thousand to the reserve for unfunded commitments. Allowance for Credit Losses - Loans and Unfunded Commitments The allowance for credit losses represents an estimate of the expected credit losses in the Company's held for investment loan portfolio as of a valuation date. Accounting Standards Codification ("ASC") 326 replaced the incurred loss impairment model that recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The ACL is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the held for investment loan portfolio. Loans, or portions thereof, are charged off against the allowance for credit losses when they are deemed uncollectible. Expected recoveries are recorded to the extent they do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Reserves on loans that do not share risk characteristics are evaluated on an individual basis. Nonaccrual loans are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. The remainder of the portfolio, representing all loans not evaluated individually for impairment, is segmented based on call report code and processed through a cash flow valuation model. In particular, loan-level probability of default ("PD") and severity (also referred to as loss given default ("LGD")) is applied to derive a baseline expected loss as of the valuation date. These expected default and severity rates, which are regression-derived and based on peer historical loan-level performance data, are calibrated to incorporate the Company's reasonable and supportable forecast of future losses as well as any necessary qualitative adjustments. Typically, financial institutions use their historical loss experience and trends in losses for each loan segment which are then adjusted for portfolio trends and economic and environmental factors in determining the allowance for credit losses. Since the Bank’s inception in 2007, the Company has experienced minimal loss history within its loan portfolio. Due to the fact that limited internal loss history exists to generate statistical significance, management determined it was most prudent to rely on peer data when deriving its best estimate of PD and LGD. As part of the Company's estimation process, management will continue to assess the reasonableness of the data, assumptions, and model methodology utilized to derive its allowance for credit losses. For each of the modeled loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, PD rates, and LGD rates. The modeling of expected prepayment speeds is based on internal loan-level historical data. The Company utilizes national unemployment for its reasonable and supportable forecasting of expected default within the cash flow model. To further adjust the allowance for credit losses for expected losses not already within the quantitative component of the calculation, the Company may consider qualitative factors as prescribed in ASC 326. Financial instruments include off-balance sheet credit instruments such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records a reserve for unfunded commitments on off-balance sheet credit exposures through a charge to provision for credit loss expense in its Consolidated Statement of Income. The reserve for unfunded commitments is estimated by call report code segmentation as of the valuation date under the CECL model using the same methodologies as portfolio loans taking utilization rates into consideration. The reserve for unfunded commitments is reflected as a liability on the Company's Consolidated Balance Sheet. The Company's methodology utilized in the estimation of the allowance for credit losses, which is performed at least quarterly, is designed to be dynamic and responsive to changes in its loan portfolio credit quality, composition, and forecasted economic conditions. The review of the reasonableness and appropriateness of the allowance for credit losses is reviewed by the CECL Committee for approval as of the valuation date. Additionally, information is provided to the Board of Directors on a quarterly basis along with the Company's consolidated financial statements. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the net present value ("NPV") from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Allowance for Credit Losses - Securities The Company evaluates its available-for-sale and held-to-maturity debt securities portfolios for expected credit losses as of the valuation date under ASC 326. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or if it is more likely than not that it would be required to sell, the security before recovery of its amortized cost basis. If either criterion is met, the security’s amortized cost basis is written down to fair value through income during the current period. For available-for-sale debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other driving factors. If the Company's assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an ACL is recorded for the credit loss (which represents the difference between the expected cash flows and amortized cost basis), limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. The entire amount of an impairment loss is recognized in earnings only when: (1) the Company intends to sell the security; or (2) it is more likely than not that the Company will have to sell the security before recovery of the Company's amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders' equity as comprehensive income, net of deferred taxes. Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit losses. Losses are charged against the allowance for credit losses when the Company believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a noncredit-related impairment. As part of its estimation process, the Company have made a policy election to exclude accrued interest from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in other assets in the Consolidated Balance Sheet. Available-for-sale debt securities are placed on nonaccrual status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on nonaccrual status. Accordingly, the Company does not recognize an allowance for credit loss against accrued interest receivable. This approach is consistent with the Company's nonaccrual policy implemented for its loan portfolio. The Company separately evaluates its held-to-maturity investment securities for any credit losses. If it determines that a security indicates evidence of deteriorated credit quality, the security is individually-evaluated and a discounted cash flow analysis is performed and compared to the amortized cost basis. As of September 30, 2023, the Company had one security classified as held-to-maturity with an amortized cost basis of $264 thousand with the remainder of the securities portfolio held as available-for-sale.
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Recent Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU 2021-01 "Reference Rate Reform (Topic 848): Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. We have certain loans, interest rate swap agreements, investment securities, and debt obligations with interest rates indexed to LIBOR. The administrator of LIBOR announced that the most commonly used U.S. dollar LIBOR settings would cease to be published or cease to be representative after June 30, 2023. Central banks and regulators around the world have commissioned working groups to find suitable replacements for LIBOR and other benchmark rates and to implement financial benchmark reforms more generally. There continues to be uncertainty regarding the use of alternative reference rates ("ARRs"), which may cause disruptions in a variety of markets, as well as adversely impact its business, operations and financial results. The Adjustable Interest Rate (LIBOR) Act, enacted in March 2022, provides a statutory framework to replace LIBOR with a benchmark rate based on Secured Overnight Funding Rate ("SOFR") for contracts governed by U.S. law that have no or ineffective fallbacks. Although governmental authorities have endeavored to facilitate an orderly discontinuation of LIBOR, no assurance can be provided that this aim will be achieved or that the use, level, and volatility of LIBOR or other interest rates, or the value of LIBOR-based securities will not be adversely affected. To facilitate an orderly transition from interbank offered rates and other benchmark rates to ARRs, the Company has established an enterprise-wide initiative led by senior management. The objective of this initiative is to identify, assess and monitor risks associated with the expected discontinuation or unavailability of benchmarks, including LIBOR, achieve operational readiness and engage impacted clients in connection with the transition to ARRs. The Company is assessing ASU 2020-04 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. In August 2020, the FASB issued ASU 2020-06 "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity." The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, including the Company, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions". ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not expect the adoption of ASU 2022-03 to have a material impact on its consolidated financial statements. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848". ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the LIBOR would would cease being published. In 2021, the administrator of LIBOR delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method”. These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The ASU is effective for public business entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The Company does not expect the adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU, as amended, requires an entity to measure expected credit losses for financial assets carried at amortized cost based on historical experience, current conditions, and reasonable and supportable forecasts. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. This standard is commonly referred to as the current expected credit loss ("CECL") methodology. ASU 2016-13 was effective for the Company on January 1, 2023. The adjustment recorded at adoption to the overall allowance for credit losses, which consisted of adjustments to the allowance for credit losses on loans and reserve for unfunded loan commitments, was $3.7 million. The adjustment, net of tax, recorded to stockholders’ equity totaled $2.8 million at January 1, 2023. In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of troubled debt restructuring ("TDRs"), an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. ASU 2022-02 was effective for the Company on January 1, 2023. ASU 2022-02 resulted in no material impact to the Company's consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815), Fair Value Hedging—Portfolio Layer Method.” ASU 2022-01 clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets and is intended to better align hedge accounting with an organization’s risk management strategies. In 2017, FASB issued ASU 2017-12 to better align the economic results of risk management activities with hedge accounting. One of the major provisions of that standard was the addition of the last-of-layer hedging method. For a closed portfolio of fixed-rate prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, such as mortgages or mortgage-backed securities, the last-of-layer method allows an entity to hedge its exposure to fair value changes due to changes in interest rates for a portion of the portfolio that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flows. ASU 2022-01 renames that method the portfolio layer method. ASU 2022-01 was effective for the Company on January 1, 2023. ASU 2022-01 resulted in no material impact to the Company's consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. The ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. ASU 2021-08 was effective for the Company on January 1, 2023. ASU 2021-08 resulted in no material impact to the Company's consolidated financial statements.
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and fair values of securities held-to-maturity and securities available-for-sale | Amortized cost and fair values of securities held-to-maturity and securities available-for-sale as of September 30, 2023 and December 31, 2022, are as follows:
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Summary of amortized cost of held-to-maturity securities credit quality indicator | The Company monitors the credit quality of held-to-maturity securities through the use of credit rating. The Company monitors credit rating on a periodic basis. The following table summarizes the amortized cost of held-to-maturity securities at September 30, 2023, aggregated by credit quality indicator:
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Schedule of available-for-sale securities that have been in a continuous unrealized loss position | Available-for-sale securities that have been in a continuous unrealized loss position as of September 30, 2023 are as follows:
Available-for-sale and held-to-maturity securities that have been in a continuous unrealized loss position as of December 31, 2022 are as follows:
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Schedule of amortized cost and fair value of held-to-maturity securities and available-for-sale securities by contractual maturity | The amortized cost and fair value of securities as of September 30, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties.
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Loans and Allowance for Credit Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loan balances | A summary of loan balances by type follows:
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Schedule of acquired loans | The loans segregated to the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either ASC 310-30 or ASC 310-20. The outstanding principal balance and related carrying amount of acquired loans included in the consolidated balance sheets as of December 31, 2022 is as follows:
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Schedule of accretable yield on purchased credit impaired loans | The following table presents changes during the year ended December 31, 2022, in the accretable yield on purchased credit impaired loans for which the Company applies ASC 310-30.
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Schedule of allowance for credit losses | An analysis of the allowance for credit losses for the three and nine months ended September 30, 2023 and 2022, and for the year ended December 31, 2022, follows: Allowance for Credit Losses For the Three Months Ended September 30, 2023 (In thousands)
Allowance for Credit Losses For the Nine Months Ended September 30, 2023 (In thousands)
Allowance for Credit Losses For the Three Months Ended September 30, 2022 (In thousands)
Allowance for Credit Losses For the Nine Months Ended September 30, 2022 (In thousands)
Allowance for Credit Losses For the Year Ended December 31, 2022 (In thousands)
The following table presents a breakdown of the provision for credit losses included in the Consolidated Statements of Income for the applicable periods:
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Schedule of amortized cost basis of loans by class of loans | The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2023:
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Schedule of recorded investment in loans and evaluation by portfolio segment | The following tables present the recorded investment in loans and evaluation method as of September 30, 2022 and at December 31, 2022, by portfolio segment: Allowance for Credit Losses At September 30, 2022 (In thousands)
Loans Receivable At September 30, 2022 (In thousands)
Allowance for Credit Losses At December 31, 2022 (In thousands)
Loans Receivable At December 31, 2022 (In thousands)
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Schedule of impaired loans | Impaired loans by class excluding purchased credit impaired at December 31, 2022, are summarized as follows: Impaired Loans – Originated Loan Portfolio
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Schedule of risk category of loans | Based on the most recent analysis performed, amortized cost basis of loans by risk category, class and year of origination was as follows as of September 30, 2023:
As of September 30, 2023 – Total Loan Portfolio
Based on the most recent analysis performed, the risk category of loans by class of loans was as follows as of December 31, 2022: As of December 31, 2022 – Originated Loan Portfolio
As of December 31, 2022 – Acquired Loan Portfolio
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Schedule of past due and nonaccrual loans | Past due and nonaccrual loans presented by loan class were as follows at September 30, 2023 and December 31, 2022 As of September 30, 2023
As of December 31, 2022 – Originated Loan Portfolio
As of December 31, 2022 – Acquired Loan Portfolio
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Schedule of nonaccrual loans | The following presents nonaccrual loans as of September 30, 2023:
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Derivative Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of notional amount and fair value of derivative financial instruments | The notional amount and fair value of the Company’s derivative financial instruments as of September 30, 2023 and December 31, 2022 were as follows:
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Financial Instruments with Off-Balance Sheet Risk (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial instruments outstanding which contract amounts represent credit risk | At September 30, 2023 and December 31, 2022, the following financial instruments were outstanding, which contract amounts represent credit risk:
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Stock-Based Compensation Plan (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of option activity | A summary of option activity under the Plan as of September 30, 2023 and changes during the nine months ended is presented below:
(1) The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2023. This amount changes based on changes in the market value of the Company’s common stock.
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Schedule of restricted stock grant activity | A summary of the Company’s restricted stock unit grant activity as of September 30, 2023 is shown below.
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022:
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Schedule of the Company's assets that were measured at fair value on a nonrecurring basis | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022:
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Schedule of quantitative information about Level 3 Fair Value Measurements | The following table displays quantitative information about Level 3 Fair Value Measurements for September 30, 2023 and December 31, 2022:
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Schedule of carrying amount, fair value and placement in the fair value hierarchy of the Company's financial instruments | The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2023 and December 31, 2022. Fair values for September 30, 2023 and December 31, 2022 are estimated under the exit price notion in accordance with ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.”
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earning per share | The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares of dilutive potential common stock. Dilutive potential common stock has no effect on income available to common stockholders. There were 9,327 restricted stock units excluded from weighted average dilutive shares for the three and nine months ended September 30, 2023 as the shares were anti-dilutive. There were no anti-dilutive shares for three and nine month periods ended September 30, 2022.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Statement of Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) (AOCI) | Changes in accumulated other comprehensive income (loss) ("AOCI") for the three and nine months ended September 30, 2023 and 2022 are shown in the following table. The Company has two components, which are available-for-sale securities and cash flow hedges, for the periods presented.
|
Revenue Recognition (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of noninterest income | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months and nine months ended September 30, 2023 and 2022, respectively:
|
Supplemental Cash Flow Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow information | Below is additional information regarding the Company’s cash flows for the nine months ended September 30, 2023 and 2022.
|
Organization and Summary of Significant Accounting Policies (Details) |
1 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 15, 2022 |
Aug. 31, 2021
USD ($)
|
Sep. 30, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
Jan. 01, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Earn back option period | 3 years | |||||||||||
Stock split, conversion ratio | 1.25 | |||||||||||
Common stock, dividend, paid-in-kind, percentage | 25.00% | |||||||||||
Reduction of retained earnings | $ (120,960,000) | $ (114,888,000) | [1] | |||||||||
Allowance for loan losses | 18,849,000 | $ 19,442,000 | 16,040,000 | $ 15,313,000 | $ 14,957,000 | $ 13,829,000 | ||||||
Reserves for unfunded commitments | 673,000 | $ 811,000 | 0 | [1] | ||||||||
Securities held-to-maturity | 264,000 | 264,000 | [1] | |||||||||
Stockholders' equity | $ (211,246,000) | $ (211,051,000) | (202,382,000) | [1] | $ (194,635,000) | $ (197,599,000) | $ (209,796,000) | |||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Allowance for loan losses | $ 2,864,000 | |||||||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Reduction of retained earnings | 2,800,000 | |||||||||||
Allowance for loan losses | 2,900,000 | |||||||||||
Reserves for unfunded commitments | 800,000 | |||||||||||
Allowance for loan losses and unfunded loan commitments | 3,700,000 | |||||||||||
Stockholders' equity | $ 2,800,000 | |||||||||||
Atlantic Coast Mortgage, LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Investment amount | $ 20,400,000 | |||||||||||
Ownership percentage | 28.70% | |||||||||||
Earn back percentage | 3.70% | |||||||||||
|
Securities (Details) |
Sep. 30, 2023
USD ($)
security
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|||
---|---|---|---|---|---|---|
Held-to-maturity | ||||||
Total | $ 264,000 | $ 264,000 | [1] | |||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (21,000) | (12,000) | ||||
Fair Value | 243,000 | 252,000 | ||||
Available-for-sale | ||||||
Total | 272,075,000 | 329,592,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (55,929,000) | (51,523,000) | ||||
Fair Value | 216,146,000 | $ 40,300,000 | 278,069,000 | [1] | ||
Allowance for credit losses | $ 0 | |||||
Number of securities held with book value and fair value equal | security | 1 | |||||
Securities of state and local municipalities tax exempt | ||||||
Held-to-maturity | ||||||
Total | $ 264,000 | 264,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (21,000) | (12,000) | ||||
Fair Value | 243,000 | 252,000 | ||||
Available-for-sale | ||||||
Total | 1,001,000 | 1,385,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (18,000) | (9,000) | ||||
Fair Value | 983,000 | 1,376,000 | ||||
Securities of U.S. government and federal agencies | ||||||
Available-for-sale | ||||||
Total | 13,559,000 | 13,559,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (2,586,000) | (2,555,000) | ||||
Fair Value | 10,973,000 | 11,004,000 | ||||
Securities of state and local municipalities taxable | ||||||
Available-for-sale | ||||||
Total | 469,000 | 506,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (62,000) | (62,000) | ||||
Fair Value | 407,000 | 444,000 | ||||
Corporate bonds | ||||||
Available-for-sale | ||||||
Total | 20,206,000 | 21,212,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (3,316,000) | (2,154,000) | ||||
Fair Value | 16,890,000 | 19,058,000 | ||||
SBA pass-through securities | ||||||
Available-for-sale | ||||||
Total | 62,000 | 74,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (6,000) | (7,000) | ||||
Fair Value | 56,000 | 67,000 | ||||
Mortgage-backed securities | ||||||
Available-for-sale | ||||||
Total | 232,724,000 | 282,858,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (49,046,000) | (45,424,000) | ||||
Fair Value | 183,678,000 | 237,434,000 | ||||
Collateralized mortgage obligations | ||||||
Available-for-sale | ||||||
Total | 4,054,000 | 9,998,000 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized (Losses) | (895,000) | (1,312,000) | ||||
Fair Value | 3,159,000 | 8,686,000 | ||||
Federal Reserve Bank | Asset Pledged as Collateral | ||||||
Available-for-sale | ||||||
Pledged securities | 2,200,000 | 4,100,000 | ||||
Virginia Department Of Treasury | Asset Pledged as Collateral | ||||||
Available-for-sale | ||||||
Pledged securities | $ 121,400,000 | $ 104,600,000 | ||||
|
Securities - Summary of Amortized Cost of Held-to-maturity Securities Credit Quality Indicator (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Securities held-to-maturity | $ 264 | $ 264 | [1] | ||
Securities of state and local municipalities tax exempt | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Securities held-to-maturity | 264 | $ 264 | |||
Aa3 | Securities of state and local municipalities tax exempt | |||||
Schedule of Held-to-Maturity Securities [Line Items] | |||||
Securities held-to-maturity | $ 264 | ||||
|
Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | $ 0 | $ 43,059 |
Fair Value, 12 Months or Longer | 215,396 | 234,512 |
Fair Value, Total | 215,396 | 277,571 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (3,209) |
Unrealized Losses, 12 Months or Longer | (55,929) | (48,326) |
Unrealized Losses, Total | (55,929) | (51,535) |
Securities of U.S. government and federal agencies | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or Longer | 10,974 | 11,004 |
Fair Value, Total | 10,974 | 11,004 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | 0 |
Unrealized Losses, 12 Months or Longer | (2,586) | (2,555) |
Unrealized Losses, Total | (2,586) | (2,555) |
Securities of state and local municipalities tax exempt | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 1,628 |
Fair Value, 12 Months or Longer | 983 | 0 |
Fair Value, Total | 983 | 1,628 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (21) |
Unrealized Losses, 12 Months or Longer | (18) | 0 |
Unrealized Losses, Total | (18) | (21) |
Securities of state and local municipalities taxable | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or Longer | 407 | 444 |
Fair Value, Total | 407 | 444 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | 0 |
Unrealized Losses, 12 Months or Longer | (62) | (62) |
Unrealized Losses, Total | (62) | (62) |
Corporate bonds | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 12,344 |
Fair Value, 12 Months or Longer | 16,141 | 5,964 |
Fair Value, Total | 16,141 | 18,308 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (1,119) |
Unrealized Losses, 12 Months or Longer | (3,316) | (1,035) |
Unrealized Losses, Total | (3,316) | (2,154) |
SBA pass-through securities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 0 |
Fair Value, 12 Months or Longer | 55 | 67 |
Fair Value, Total | 55 | 67 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | 0 |
Unrealized Losses, 12 Months or Longer | (6) | (7) |
Unrealized Losses, Total | (6) | (7) |
Mortgage-backed securities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 26,486 |
Fair Value, 12 Months or Longer | 183,678 | 210,948 |
Fair Value, Total | 183,678 | 237,434 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (1,831) |
Unrealized Losses, 12 Months or Longer | (49,046) | (43,593) |
Unrealized Losses, Total | (49,046) | (45,424) |
Collateralized mortgage obligations | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 2,601 |
Fair Value, 12 Months or Longer | 3,158 | 6,085 |
Fair Value, Total | 3,158 | 8,686 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (238) |
Unrealized Losses, 12 Months or Longer | (895) | (1,074) |
Unrealized Losses, Total | $ (895) | $ (1,312) |
Securities - Continuous Unrealized Loss Position - Additional information (Details) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2023
USD ($)
|
Sep. 30, 2023
security
|
|
Debt Securities, Available-for-sale | ||
Available-for-sale investment securities sold at book value | $ | $ 40.3 | |
Available-for-sale investment securities sold, pre tax loss | $ | $ 4.6 | |
BBB | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 1 | |
Securities of U.S. government and federal agencies | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 3 | |
Securities of state and local municipalities tax exempt | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 2 | |
Securities of state and local municipalities taxable | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 1 | |
Corporate bonds | No rating | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 13 | |
SBA pass-through securities | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 1 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 57 | |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale | ||
Number of investment securities | 12 |
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|---|
Held-to-maturity, Amortized Cost | ||||||
After 1 year through 5 years | $ 264 | |||||
After 5 years through 10 years | 0 | |||||
After 10 years | 0 | |||||
Total | 264 | |||||
Held-to-maturity, Fair Value | ||||||
After 1 year through 5 years | 243 | |||||
After 5 years through 10 years | 0 | |||||
After 10 years | 0 | |||||
Total | 243 | $ 252 | ||||
Available-for-sale, Amortized Cost | ||||||
After 1 year through 5 years | 5,687 | |||||
After 5 years through 10 years | 31,589 | |||||
After 10 years | 234,799 | |||||
Total | 272,075 | |||||
Available-for-sale, Fair Value | ||||||
After 1 year through 5 years | 5,068 | |||||
After 5 years through 10 years | 26,052 | |||||
After 10 years | 185,026 | |||||
Total | $ 216,146 | $ 40,300 | $ 278,069 | [1] | ||
|
Securities - Contractual Maturities - Additional Information (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from maturities, calls and principal repayments of securities | $ 16,600,000 | $ 20,500,000 |
Proceeds from calls and maturities of securities | 35,800,000 | 0 |
Gross realized loss on securities | $ 4,600,000 | $ 0 |
Loans and Allowance for Credit Losses - Summary of loan balances by type (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Loans and Allowance for Loan Losses | ||||||
Loans, gross | $ 1,849,513 | $ 1,840,696 | $ 1,715,451 | |||
Allowance for credit losses | 18,849 | $ 19,442 | 16,040 | 15,313 | $ 14,957 | $ 13,829 |
Unearned income and (unamortized premiums), net | 262 | |||||
Loans, net | 1,830,664 | 1,824,394 | ||||
Originated loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 1,849,513 | 1,805,496 | ||||
Allowance for credit losses | 16,040 | |||||
Unearned income and (unamortized premiums), net | 262 | |||||
Loans, net | 1,789,194 | |||||
Acquired loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 35,200 | |||||
Allowance for credit losses | 0 | |||||
Unearned income and (unamortized premiums), net | 0 | |||||
Loans, net | 35,200 | |||||
Commercial | Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 1,097,726 | 1,100,261 | 1,030,326 | |||
Allowance for credit losses | 10,639 | 11,122 | 10,777 | 10,429 | 10,067 | 8,995 |
Commercial | Commercial real estate | Originated loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 1,097,726 | 1,085,513 | ||||
Commercial | Commercial real estate | Acquired loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 1,849,513 | 14,748 | ||||
Commercial | Commercial and Industrial | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 223,651 | 245,220 | 211,396 | |||
Allowance for credit losses | 2,681 | 2,865 | 2,623 | 2,132 | 2,256 | 1,827 |
Commercial | Commercial and Industrial | Originated loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 223,651 | 242,307 | ||||
Commercial | Commercial and Industrial | Acquired loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 2,913 | |||||
Commercial | Commercial Construction | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 154,559 | 147,939 | 151,497 | |||
Allowance for credit losses | 1,649 | 1,702 | 1,499 | 1,600 | 1,765 | 2,009 |
Commercial | Commercial Construction | Originated loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 154,559 | 147,436 | ||||
Commercial | Commercial Construction | Acquired loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 503 | |||||
Consumer | Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 367,345 | 339,591 | 313,078 | |||
Allowance for credit losses | 3,807 | 3,683 | 1,044 | 1,038 | 728 | 781 |
Consumer | Commercial real estate | Originated loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 367,345 | 322,579 | ||||
Consumer | Commercial real estate | Acquired loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 17,012 | |||||
Consumer | Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | 6,232 | 7,685 | 9,154 | |||
Allowance for credit losses | 73 | $ 70 | 97 | $ 114 | $ 141 | $ 217 |
Consumer | Commercial real estate | Originated loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | $ 6,232 | 7,661 | ||||
Consumer | Commercial real estate | Acquired loan portfolio | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans, gross | $ 24 |
Loans and Allowance for Credit Losses - Outstanding principal balance and related carrying amount of acquired loans (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Sep. 30, 2022 |
|
Loans and Allowance for Loan Losses | ||
Carrying amount | $ 4,063 | $ 16,199 |
Changes in the accretable yield on purchased credit impaired loans | ||
Balance at the beginning of the period | 3 | |
Accretion | (197) | |
Reclassification of nonaccretable difference due to changes in expected cash flows | 33 | |
Other changes, net | 161 | |
Balance at the end of the period | 0 | |
Purchased credit impaired acquired loans evaluated individually for credit losses | ||
Loans and Allowance for Loan Losses | ||
Outstanding principal balance | 24 | |
Carrying amount | 0 | |
Other acquired loans | ||
Loans and Allowance for Loan Losses | ||
Outstanding principal balance | 35,604 | |
Carrying amount | 35,200 | |
Total acquired loans | ||
Loans and Allowance for Loan Losses | ||
Outstanding principal balance | 35,628 | |
Carrying amount | $ 35,200 |
Loans and Allowance for Credit Losses - Allowance for credit losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | $ 19,442 | $ 14,957 | $ 16,040 | $ 13,829 | $ 13,829 |
Charge-offs | 0 | (28) | (365) | (478) | (497) |
Recoveries | 7 | 19 | 39 | 62 | 79 |
Provision | (600) | 365 | 271 | 1,900 | 2,629 |
Loans and leases receivable, allowance, ending balance | 18,849 | 15,313 | 18,849 | 15,313 | 16,040 |
Individually evaluated for impairment | 164 | 164 | 86 | ||
Collectively evaluated for impairment | 15,149 | 15,149 | 15,954 | ||
Total allowance for loans and leases receivables | 18,849 | 15,313 | 18,849 | 15,313 | 16,040 |
Financing receivables: | |||||
Individually evaluated for impairment | 16,199 | 16,199 | 4,063 | ||
Collectively evaluated for impairment | 1,699,252 | 1,699,252 | 1,836,633 | ||
Total | 1,849,513 | 1,715,451 | 1,849,513 | 1,715,451 | 1,840,696 |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 2,864 | ||||
Loans and leases receivable, allowance, ending balance | 2,864 | ||||
Total allowance for loans and leases receivables | 2,864 | ||||
Purchased credit impaired | |||||
Allowance for loan losses | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Financing receivables: | |||||
Individually evaluated for impairment | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||
Commercial | Commercial real estate | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 11,122 | 10,067 | 10,777 | 8,995 | 8,995 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (483) | 362 | (636) | 1,434 | 1,782 |
Loans and leases receivable, allowance, ending balance | 10,639 | 10,429 | 10,639 | 10,429 | 10,777 |
Individually evaluated for impairment | 71 | 71 | 0 | ||
Collectively evaluated for impairment | 10,358 | 10,358 | 10,777 | ||
Total allowance for loans and leases receivables | 10,639 | 10,429 | 10,639 | 10,429 | 10,777 |
Financing receivables: | |||||
Individually evaluated for impairment | 11,357 | 11,357 | 1,703 | ||
Collectively evaluated for impairment | 1,018,969 | 1,018,969 | 1,098,558 | ||
Total | 1,097,726 | 1,030,326 | 1,097,726 | 1,030,326 | 1,100,261 |
Commercial | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 498 | ||||
Loans and leases receivable, allowance, ending balance | 498 | ||||
Total allowance for loans and leases receivables | 498 | ||||
Commercial | Commercial real estate | Purchased credit impaired | |||||
Allowance for loan losses | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Financing receivables: | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Commercial | Commercial and Industrial | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 2,865 | 2,256 | 2,623 | 1,827 | 1,827 |
Charge-offs | 0 | 0 | (350) | (396) | (396) |
Recoveries | 0 | 0 | 3 | 0 | 0 |
Provision | (184) | (124) | (47) | 701 | 1,192 |
Loans and leases receivable, allowance, ending balance | 2,681 | 2,132 | 2,681 | 2,132 | 2,623 |
Individually evaluated for impairment | 92 | 92 | 86 | ||
Collectively evaluated for impairment | 2,040 | 2,040 | 2,537 | ||
Total allowance for loans and leases receivables | 2,681 | 2,132 | 2,681 | 2,132 | 2,623 |
Financing receivables: | |||||
Individually evaluated for impairment | 4,753 | 4,753 | 1,319 | ||
Collectively evaluated for impairment | 206,643 | 206,643 | 243,901 | ||
Total | 223,651 | 211,396 | 223,651 | 211,396 | 245,220 |
Commercial | Commercial and Industrial | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 452 | ||||
Loans and leases receivable, allowance, ending balance | 452 | ||||
Total allowance for loans and leases receivables | 452 | ||||
Commercial | Commercial and Industrial | Purchased credit impaired | |||||
Allowance for loan losses | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Financing receivables: | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Commercial | Commercial Construction | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 1,702 | 1,765 | 1,499 | 2,009 | 2,009 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | (53) | (165) | 80 | (409) | (510) |
Loans and leases receivable, allowance, ending balance | 1,649 | 1,600 | 1,649 | 1,600 | 1,499 |
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 1,600 | 1,600 | 1,499 | ||
Total allowance for loans and leases receivables | 1,649 | 1,600 | 1,649 | 1,600 | 1,499 |
Financing receivables: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 151,497 | 151,497 | 147,939 | ||
Total | 154,559 | 151,497 | 154,559 | 151,497 | 147,939 |
Commercial | Commercial Construction | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 70 | ||||
Loans and leases receivable, allowance, ending balance | 70 | ||||
Total allowance for loans and leases receivables | 70 | ||||
Commercial | Commercial Construction | Purchased credit impaired | |||||
Allowance for loan losses | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Financing receivables: | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Consumer | Commercial real estate | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 3,683 | 728 | 1,044 | 781 | 781 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 1 | 1 | 1 |
Provision | 124 | 310 | 906 | 256 | 262 |
Loans and leases receivable, allowance, ending balance | 3,807 | 1,038 | 3,807 | 1,038 | 1,044 |
Individually evaluated for impairment | 1 | 1 | 0 | ||
Collectively evaluated for impairment | 1,037 | 1,037 | 1,044 | ||
Total allowance for loans and leases receivables | 3,807 | 1,038 | 3,807 | 1,038 | 1,044 |
Financing receivables: | |||||
Individually evaluated for impairment | 89 | 89 | 1,041 | ||
Collectively evaluated for impairment | 312,989 | 312,989 | 338,550 | ||
Total | 367,345 | 313,078 | 367,345 | 313,078 | 339,591 |
Consumer | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 1,856 | ||||
Loans and leases receivable, allowance, ending balance | 1,856 | ||||
Total allowance for loans and leases receivables | 1,856 | ||||
Consumer | Commercial real estate | Purchased credit impaired | |||||
Allowance for loan losses | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Financing receivables: | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Consumer | Commercial real estate | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | 70 | 141 | 97 | 217 | 217 |
Charge-offs | 0 | (28) | (15) | (82) | (101) |
Recoveries | 7 | 19 | 35 | 61 | 78 |
Provision | (4) | (18) | (32) | (82) | (97) |
Loans and leases receivable, allowance, ending balance | 73 | 114 | 73 | 114 | 97 |
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 114 | 114 | 97 | ||
Total allowance for loans and leases receivables | 73 | 114 | 73 | 114 | 97 |
Financing receivables: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 9,154 | 9,154 | 7,685 | ||
Total | $ 6,232 | 9,154 | 6,232 | 9,154 | 7,685 |
Consumer | Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | |||||
Allowance for loan losses | |||||
Loans and leases receivable, allowance, beginning balance | $ (12) | ||||
Loans and leases receivable, allowance, ending balance | (12) | ||||
Total allowance for loans and leases receivables | (12) | ||||
Consumer | Commercial real estate | Purchased credit impaired | |||||
Allowance for loan losses | |||||
Purchased credit impaired | 0 | 0 | 0 | ||
Financing receivables: | |||||
Purchased credit impaired | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Credit Losses - Amortized cost basis of loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | $ 1,830,664 | $ 1,824,394 |
Real Estate | Commercial | Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Real Estate | Commercial | Commercial and Industrial | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Real Estate | Commercial | Commercial Construction | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Real Estate | Consumer | Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 2,292 | |
Real Estate | Consumer | Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Real Estate | Collateral-Dependent Loans | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 2,292 | |
Business / Other Assets | Commercial | Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Business / Other Assets | Commercial | Commercial and Industrial | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Business / Other Assets | Commercial | Commercial Construction | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Business / Other Assets | Consumer | Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Business / Other Assets | Consumer | Commercial real estate | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | 0 | |
Business / Other Assets | Collateral-Dependent Loans | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||
Amortized cost basis of collateral-dependent loans by class of loans | $ 0 |
Loans and Allowance for Credit Losses - Impaired Loans (Details) - Originated loan portfolio $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
Recorded Investment | |
With an allowance recorded: | $ 1,319 |
With no related allowance: | 2,744 |
Unpaid Principal Balance | |
With an allowance recorded: | 1,329 |
With no related allowance: | 2,747 |
Related Allowance | 86 |
Average Recorded Investment | |
With an allowance recorded: | 1,604 |
With no related allowance: | 2,752 |
Interest Income Recognized | |
With an allowance recorded: | 107 |
With no related allowance: | 169 |
Commercial | Commercial real estate | |
Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 1,703 |
Unpaid Principal Balance | |
With an allowance recorded: | 0 |
With no related allowance: | 1,703 |
Related Allowance | 0 |
Average Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 1,704 |
Interest Income Recognized | |
With an allowance recorded: | 0 |
With no related allowance: | 135 |
Commercial | Commercial and Industrial | |
Recorded Investment | |
With an allowance recorded: | 1,319 |
With no related allowance: | 0 |
Unpaid Principal Balance | |
With an allowance recorded: | 1,329 |
With no related allowance: | 0 |
Related Allowance | 86 |
Average Recorded Investment | |
With an allowance recorded: | 1,604 |
With no related allowance: | 0 |
Interest Income Recognized | |
With an allowance recorded: | 107 |
With no related allowance: | 0 |
Commercial | Commercial Construction | |
Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Unpaid Principal Balance | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Related Allowance | 0 |
Average Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Interest Income Recognized | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Consumer | Commercial real estate | |
Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 1,041 |
Unpaid Principal Balance | |
With an allowance recorded: | 0 |
With no related allowance: | 1,044 |
Related Allowance | 0 |
Average Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 1,048 |
Interest Income Recognized | |
With an allowance recorded: | 0 |
With no related allowance: | 34 |
Consumer | Commercial real estate | |
Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Unpaid Principal Balance | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Related Allowance | 0 |
Average Recorded Investment | |
With an allowance recorded: | 0 |
With no related allowance: | 0 |
Interest Income Recognized | |
With an allowance recorded: | 0 |
With no related allowance: | $ 0 |
Loans and Allowance for Credit Losses - Risk category (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
|
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | $ 423,908 | ||
2019 | 96,185 | ||
2020 | 92,028 | ||
2021 | 201,547 | ||
2022 | 484,600 | ||
2023 | 168,033 | ||
Revolving Loans Amort. Cost Basis | 383,212 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 1,849,513 | $ 1,840,696 | $ 1,715,451 |
Total | 1,849,513 | 1,840,696 | 1,715,451 |
Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 72 | ||
Total | 72 | ||
Commercial | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 351,621 | ||
2019 | 84,975 | ||
2020 | 72,431 | ||
2021 | 148,332 | ||
2022 | 212,269 | ||
2023 | 73,825 | ||
Revolving Loans Amort. Cost Basis | 154,273 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 1,097,726 | 1,100,261 | 1,030,326 |
Total | 1,097,726 | 1,100,261 | 1,030,326 |
Commercial | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 351,621 | ||
2019 | 84,975 | ||
2020 | 72,431 | ||
2021 | 148,332 | ||
2022 | 212,269 | ||
2023 | 73,825 | ||
Revolving Loans Amort. Cost Basis | 154,273 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 1,097,726 | ||
Total | 1,097,726 | ||
Commercial | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial and Industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 14,879 | ||
2019 | 2,615 | ||
2020 | 7,862 | ||
2021 | 14,845 | ||
2022 | 72,131 | ||
2023 | 47,834 | ||
Revolving Loans Amort. Cost Basis | 63,485 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 223,651 | 245,220 | 211,396 |
Total | 223,651 | 245,220 | 211,396 |
Commercial | Commercial and Industrial | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 14,879 | ||
2019 | 2,615 | ||
2020 | 7,862 | ||
2021 | 14,845 | ||
2022 | 72,131 | ||
2023 | 47,834 | ||
Revolving Loans Amort. Cost Basis | 63,485 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 223,651 | ||
Total | 223,651 | ||
Commercial | Commercial and Industrial | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial and Industrial | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial and Industrial | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial and Industrial | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 18,183 | ||
2019 | 344 | ||
2020 | 0 | ||
2021 | 10,441 | ||
2022 | 0 | ||
2023 | 709 | ||
Revolving Loans Amort. Cost Basis | 124,882 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 154,559 | 147,939 | 151,497 |
Total | 154,559 | 147,939 | 151,497 |
Commercial | Commercial Construction | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 18,183 | ||
2019 | 344 | ||
2020 | 0 | ||
2021 | 10,441 | ||
2022 | 0 | ||
2023 | 709 | ||
Revolving Loans Amort. Cost Basis | 124,882 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 154,559 | ||
Total | 154,559 | ||
Commercial | Commercial Construction | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial Construction | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial Construction | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Commercial | Commercial Construction | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Consumer | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 38,523 | ||
2019 | 8,251 | ||
2020 | 11,726 | ||
2021 | 27,925 | ||
2022 | 200,145 | ||
2023 | 45,501 | ||
Revolving Loans Amort. Cost Basis | 35,274 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 367,345 | 339,591 | 313,078 |
Total | 367,345 | 339,591 | 313,078 |
Consumer | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 37,660 | ||
2019 | 8,251 | ||
2020 | 11,726 | ||
2021 | 27,925 | ||
2022 | 198,562 | ||
2023 | 45,501 | ||
Revolving Loans Amort. Cost Basis | 34,660 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 364,285 | ||
Total | 364,285 | ||
Consumer | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 753 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 58 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 811 | ||
Total | 811 | ||
Consumer | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 863 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 830 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 556 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 2,249 | ||
Total | 2,249 | ||
Consumer | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Consumer | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Consumer | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 702 | ||
2019 | 0 | ||
2020 | 9 | ||
2021 | 4 | ||
2022 | 55 | ||
2023 | 164 | ||
Revolving Loans Amort. Cost Basis | 5,298 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 6,232 | 7,685 | 9,154 |
Total | 6,232 | 7,685 | $ 9,154 |
Consumer | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 702 | ||
2019 | 0 | ||
2020 | 9 | ||
2021 | 4 | ||
2022 | 55 | ||
2023 | 164 | ||
Revolving Loans Amort. Cost Basis | 5,298 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 6,232 | ||
Total | 6,232 | ||
Consumer | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Consumer | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Consumer | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Consumer | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Prior | 0 | ||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
Revolving Loans Amort. Cost Basis | 0 | ||
Revolving Loans Convert. to Term | 0 | ||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,849,513 | 1,805,496 | |
Total | 1,849,513 | 1,805,496 | |
Originated loan portfolio | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,790,996 | ||
Total | 1,790,996 | ||
Originated loan portfolio | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 811 | 10,437 | |
Total | 811 | 10,437 | |
Originated loan portfolio | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 2,300 | 4,063 | |
Total | 2,300 | 4,063 | |
Decrease in related to loans | 1,800 | ||
Originated loan portfolio | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,097,726 | 1,085,513 | |
Total | 1,097,726 | 1,085,513 | |
Originated loan portfolio | Commercial | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,077,526 | ||
Total | 1,077,526 | ||
Originated loan portfolio | Commercial | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 6,284 | ||
Total | 6,284 | ||
Originated loan portfolio | Commercial | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,703 | ||
Total | 1,703 | ||
Originated loan portfolio | Commercial | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial and Industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 223,651 | 242,307 | |
Total | 223,651 | 242,307 | |
Originated loan portfolio | Commercial | Commercial and Industrial | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 237,638 | ||
Total | 237,638 | ||
Originated loan portfolio | Commercial | Commercial and Industrial | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 3,350 | ||
Total | 3,350 | ||
Originated loan portfolio | Commercial | Commercial and Industrial | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,319 | ||
Total | 1,319 | ||
Originated loan portfolio | Commercial | Commercial and Industrial | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial and Industrial | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 154,559 | 147,436 | |
Total | 154,559 | 147,436 | |
Originated loan portfolio | Commercial | Commercial Construction | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 147,436 | ||
Total | 147,436 | ||
Originated loan portfolio | Commercial | Commercial Construction | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial Construction | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial Construction | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Commercial | Commercial Construction | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Consumer | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 367,345 | 322,579 | |
Total | 367,345 | 322,579 | |
Originated loan portfolio | Consumer | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 320,735 | ||
Total | 320,735 | ||
Originated loan portfolio | Consumer | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 803 | ||
Total | 803 | ||
Originated loan portfolio | Consumer | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,041 | ||
Total | 1,041 | ||
Originated loan portfolio | Consumer | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Consumer | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Consumer | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 6,232 | 7,661 | |
Total | 6,232 | 7,661 | |
Originated loan portfolio | Consumer | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 7,661 | ||
Total | 7,661 | ||
Originated loan portfolio | Consumer | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Consumer | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Consumer | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Originated loan portfolio | Consumer | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 35,200 | ||
Total | 35,200 | ||
Acquired loan portfolio | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 35,200 | ||
Total | 35,200 | ||
Acquired loan portfolio | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,849,513 | 14,748 | |
Total | 1,849,513 | 14,748 | |
Acquired loan portfolio | Commercial | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 1,846,453 | 14,748 | |
Total | 1,846,453 | 14,748 | |
Acquired loan portfolio | Commercial | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 811 | 0 | |
Total | 811 | 0 | |
Acquired loan portfolio | Commercial | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 2,249 | 0 | |
Total | 2,249 | 0 | |
Acquired loan portfolio | Commercial | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | 0 | |
Total | 0 | 0 | |
Acquired loan portfolio | Commercial | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | 0 | |
Total | $ 0 | 0 | |
Acquired loan portfolio | Commercial | Commercial and Industrial | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 2,913 | ||
Total | 2,913 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 2,913 | ||
Total | 2,913 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 503 | ||
Total | 503 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 503 | ||
Total | 503 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 17,012 | ||
Total | 17,012 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 17,012 | ||
Total | 17,012 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 24 | ||
Total | 24 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Pass | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 24 | ||
Total | 24 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Special mention | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Substandard | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Doubtful | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Loss | |||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | |||
Total | 0 | ||
Total | $ 0 |
Loans and Allowance for Credit Losses - Past due and Non accrual of loans (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|---|
Loans and Allowance for Loan Losses | |||
Total | $ 1,849,513,000 | $ 1,840,696,000 | $ 1,715,451,000 |
Loans for which formal foreclosure proceedings are in process | 0 | 0 | |
Loans, net | 1,830,664,000 | 1,824,394,000 | |
Federal Home Loan Bank of Atlanta | Asset Pledged as Collateral | |||
Loans and Allowance for Loan Losses | |||
Loans, net | 566,900,000 | 458,700,000 | |
Adjustment | |||
Loans and Allowance for Loan Losses | |||
Loans, net | 133,000 | 1,300,000 | |
Commercial | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 1,097,726,000 | 1,100,261,000 | 1,030,326,000 |
Commercial | Commercial and Industrial | |||
Loans and Allowance for Loan Losses | |||
Total | 223,651,000 | 245,220,000 | 211,396,000 |
Commercial | Commercial Construction | |||
Loans and Allowance for Loan Losses | |||
Total | 154,559,000 | 147,939,000 | 151,497,000 |
Consumer | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 367,345,000 | 339,591,000 | 313,078,000 |
Consumer | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 6,232,000 | 7,685,000 | $ 9,154,000 |
Originated loan portfolio | |||
Loans and Allowance for Loan Losses | |||
Total | 1,849,513,000 | 1,805,496,000 | |
90 days past due and still accruing | 1,343,000 | ||
Nonaccruals | 1,386,000 | 3,150,000 | |
Loans, net | 1,789,194,000 | ||
Originated loan portfolio | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 1,703,000 | 1,863,000 | |
Originated loan portfolio | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 63,000 | |
Originated loan portfolio | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 144,000 | 4,493,000 | |
Originated loan portfolio | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 1,847,000 | 6,419,000 | |
Originated loan portfolio | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 1,846,280,000 | 1,799,077,000 | |
Originated loan portfolio | Commercial | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 1,097,726,000 | 1,085,513,000 | |
90 days past due and still accruing | 393,000 | ||
Nonaccruals | 0 | 1,703,000 | |
Originated loan portfolio | Commercial | Commercial real estate | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 499,000 | 546,000 | |
Originated loan portfolio | Commercial | Commercial real estate | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Commercial | Commercial real estate | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 2,096,000 | |
Originated loan portfolio | Commercial | Commercial real estate | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 499,000 | 2,642,000 | |
Originated loan portfolio | Commercial | Commercial real estate | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 1,097,227,000 | 1,082,871,000 | |
Originated loan portfolio | Commercial | Commercial and Industrial | |||
Loans and Allowance for Loan Losses | |||
Total | 223,651,000 | 242,307,000 | |
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | 1,319,000 | |
Originated loan portfolio | Commercial | Commercial and Industrial | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 518,000 | 512,000 | |
Originated loan portfolio | Commercial | Commercial and Industrial | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Commercial | Commercial and Industrial | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 1,319,000 | |
Originated loan portfolio | Commercial | Commercial and Industrial | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 518,000 | 1,831,000 | |
Originated loan portfolio | Commercial | Commercial and Industrial | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 223,133,000 | 240,476,000 | |
Originated loan portfolio | Commercial | Commercial Construction | |||
Loans and Allowance for Loan Losses | |||
Total | 154,559,000 | 147,436,000 | |
90 days past due and still accruing | 125,000 | ||
Nonaccruals | 0 | 0 | |
Originated loan portfolio | Commercial | Commercial Construction | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Commercial | Commercial Construction | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Commercial | Commercial Construction | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 125,000 | |
Originated loan portfolio | Commercial | Commercial Construction | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 125,000 | |
Originated loan portfolio | Commercial | Commercial Construction | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 154,559,000 | 147,311,000 | |
Originated loan portfolio | Consumer | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 367,345,000 | 322,579,000 | |
90 days past due and still accruing | 825,000 | ||
Nonaccruals | 1,386,000 | 128,000 | |
Originated loan portfolio | Consumer | Commercial real estate | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 686,000 | 805,000 | |
Originated loan portfolio | Consumer | Commercial real estate | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Consumer | Commercial real estate | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 144,000 | 953,000 | |
Originated loan portfolio | Consumer | Commercial real estate | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 830,000 | 1,758,000 | |
Originated loan portfolio | Consumer | Commercial real estate | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 365,129,000 | 320,821,000 | |
Originated loan portfolio | Consumer | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 6,232,000 | 7,661,000 | |
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | 0 | |
Originated loan portfolio | Consumer | Commercial real estate | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Consumer | Commercial real estate | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 63,000 | |
Originated loan portfolio | Consumer | Commercial real estate | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 0 | |
Originated loan portfolio | Consumer | Commercial real estate | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | 63,000 | |
Originated loan portfolio | Consumer | Commercial real estate | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 6,232,000 | 7,598,000 | |
Acquired loan portfolio | |||
Loans and Allowance for Loan Losses | |||
Total | 35,200,000 | ||
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | ||
Loans, net | 35,200,000 | ||
Acquired loan portfolio | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 35,200,000 | ||
Acquired loan portfolio | Commercial | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | $ 1,849,513,000 | 14,748,000 | |
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | ||
Acquired loan portfolio | Commercial | Commercial real estate | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial real estate | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial real estate | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial real estate | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial real estate | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 14,748,000 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | |||
Loans and Allowance for Loan Losses | |||
Total | 2,913,000 | ||
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial and Industrial | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 2,913,000 | ||
Acquired loan portfolio | Commercial | Commercial Construction | |||
Loans and Allowance for Loan Losses | |||
Total | 503,000 | ||
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Commercial | Commercial Construction | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 503,000 | ||
Acquired loan portfolio | Consumer | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 17,012,000 | ||
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Current | |||
Loans and Allowance for Loan Losses | |||
Total | 17,012,000 | ||
Acquired loan portfolio | Consumer | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total | 24,000 | ||
90 days past due and still accruing | 0 | ||
Nonaccruals | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | 30-59 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | 60-89 days past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | 90 days or more past due | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Total past due loans | |||
Loans and Allowance for Loan Losses | |||
Total | 0 | ||
Acquired loan portfolio | Consumer | Commercial real estate | Current | |||
Loans and Allowance for Loan Losses | |||
Total | $ 24,000 |
Loans and Allowance for Credit Losses - Non accrual of loans (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Loans and Allowance for Loan Losses | |
Nonaccrual with No Allowance for Credit Losses | $ 1,386 |
Nonaccrual with an Allowance for Credit Losses | 0 |
Total Nonaccrual Loans | 1,386 |
Interest Income Recognized | 58 |
Commercial | Commercial real estate | |
Loans and Allowance for Loan Losses | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Nonaccrual with an Allowance for Credit Losses | 0 |
Total Nonaccrual Loans | 0 |
Interest Income Recognized | 0 |
Commercial | Commercial and Industrial | |
Loans and Allowance for Loan Losses | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Nonaccrual with an Allowance for Credit Losses | 0 |
Total Nonaccrual Loans | 0 |
Interest Income Recognized | 0 |
Commercial | Commercial Construction | |
Loans and Allowance for Loan Losses | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Nonaccrual with an Allowance for Credit Losses | 0 |
Total Nonaccrual Loans | 0 |
Interest Income Recognized | 0 |
Consumer | Commercial real estate | |
Loans and Allowance for Loan Losses | |
Nonaccrual with No Allowance for Credit Losses | 1,386 |
Nonaccrual with an Allowance for Credit Losses | 0 |
Total Nonaccrual Loans | 1,386 |
Interest Income Recognized | 58 |
Consumer | Commercial real estate | |
Loans and Allowance for Loan Losses | |
Nonaccrual with No Allowance for Credit Losses | 0 |
Nonaccrual with an Allowance for Credit Losses | 0 |
Total Nonaccrual Loans | 0 |
Interest Income Recognized | $ 0 |
Loans and Allowance for Credit Losses - Narrative (Details) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
loan
|
Jan. 01, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
[1] | |||
Receivables [Abstract] | ||||||
Number of loans modified | loan | 5 | |||||
Financing receivable, troubled debt restructuring, postmodification | $ 8,100,000 | |||||
Reserves for unfunded commitments | $ 673,000 | $ 811,000 | $ 0 | |||
|
Loans and Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total provision for credit losses | $ (729) | $ 365 | $ 132 | $ 1,900 |
Provision for (reversal of) credit losses - loans | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total provision for credit losses | (600) | 365 | 271 | 1,900 |
Provision for (reversal of) credit losses - unfunded commitments | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total provision for credit losses | $ (129) | $ 0 | $ (139) | $ 0 |
Derivative Financial Instruments (Details) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
agreement
|
Dec. 31, 2022
USD ($)
agreement
|
|
Interest rate swap | ||
Derivative Financial Instruments | ||
Number of swap agreements outstanding not included in the offsetting | agreement | 17 | 15 |
Collateralized amount | $ 30 | $ 30 |
Receive Fixed/Pay Variable Swaps | ||
Derivative Financial Instruments | ||
Notional amount | 82,965 | 74,178 |
Derivative liability, Fair Value | 5,758 | 4,260 |
Pay Fixed/Receive Variable Swaps | ||
Derivative Financial Instruments | ||
Notional amount | 82,965 | 74,178 |
Derivative asset, Fair Value | $ (5,758) | $ (4,260) |
Derivative Financial Instruments - Interest Rate Risk Management-Cash Flow Hedging Instruments (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Derivative Financial Instruments | |||
Unrealized gain relating to interest rate swaps | $ 6,627 | $ 4,932 | |
Cash flow hedge | |||
Derivative Financial Instruments | |||
Notional amount | $ 250,000 | $ 145,000 | |
Weighted average pay rate | 3.25% | 2.12% | |
Weighted average receive rate | 5.31% | 4.74% | |
Weighted average maturity in years | 4 years 3 months 10 days | 3 years 5 months 26 days | |
Unrealized gain relating to interest rate swaps | $ 10,879 | $ 4,251 |
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Financial Instruments with Off-Balance Sheet Risk | ||
Letters of credit expiration period (in years) | 1 year | |
Cash on deposit in correspondent banks exceeding the federally insured limits | $ 3,100 | $ 1,400 |
Commitments to grant loans | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | 8,580 | 135,441 |
Unused commitments to fund loans and lines of credit | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | 217,363 | 235,617 |
Commercial and standby letters of credit | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | $ 6,197 | $ 6,503 |
Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
May 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Stock-Based Compensation Plan | |||||
Number of shares withheld to cover the cost of the exercise | 63,634 | 4,772 | |||
Stock option | |||||
Stock-Based Compensation Plan | |||||
Total income tax benefits related to stock options exercised | $ 0 | $ 31 | $ 479 | $ 235 | |
Compensation cost | 259 | $ 348 | |||
Restricted stock | |||||
Stock-Based Compensation Plan | |||||
Number of shares withheld to cover the cost of the exercise | 10,071 | 0 | |||
Unamortized compensation cost | $ 2,200 | $ 2,200 | |||
Period for recognition for cost not yet recognized | 28 months | ||||
Amended and Restated 2008 Option Plan | Stock option | |||||
Stock-Based Compensation Plan | |||||
Additional shares authorized for issuance (in shares) | 200,000 | ||||
Maximum shares authorized (in shares) | 2,929,296 | 2,929,296 | |||
Vesting period (in years) | 4 years | ||||
Contractual term (in years) | 10 years | ||||
Shares available for grant (in shares) | 148,125 | 148,125 | |||
Options granted (in shares) | 0 | 0 | 0 | ||
Amended and Restated 2008 Option Plan | Restricted stock | |||||
Stock-Based Compensation Plan | |||||
Granted (in shares) | 119,720 | 9,438 |
Stock-Based Compensation Plan - Options (Details) - Amended and Restated 2008 Option Plan - Stock option - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Number of Shares | ||||
Outstanding at the beginning of the year (in shares) | 1,621,920 | |||
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | (423,380) | |||
Forfeited or expired (in shares) | (20,437) | |||
Outstanding at the end of the year (in shares) | 1,178,103 | 1,178,103 | 1,621,920 | |
Exercisable at the end of the year (in shares) | 1,178,103 | 1,178,103 | ||
Weighted- Average Exercise Price | ||||
Outstanding at the beginning of the year (in dollars per share) | $ 6.82 | |||
Granted (in dollars per share) | ||||
Exercised (in dollars per share) | 5.97 | |||
Forfeited or expired (in dollars per share) | 5.73 | |||
Outstanding at the end of the year (in dollars per share) | $ 7.15 | 7.15 | $ 6.82 | |
Exercisable at the end of the year (in dollars per share) | $ 7.15 | $ 7.15 | ||
Additional disclosures | ||||
Outstanding weighted-average remaining contractual term (in years) | 1 year 9 months 21 days | |||
Exercisable weighted-average remaining contractual term (in years) | 1 year 6 months 21 days | |||
Exercisable aggregate intrinsic value | $ 6,671,990 |
Stock-Based Compensation Plan - Restricted stock (Details) - Amended and Restated 2008 Option Plan - Restricted stock - $ / shares |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2023 |
|
Number of Shares | ||
Balance at the beginning of the year (in shares) | 278,245 | |
Granted (in shares) | 119,720 | 9,438 |
Vested (in shares) | (92,360) | |
Forfeited (in shares) | (12,262) | |
Balance at the end of the year (in shares) | 183,061 | |
Weighted Average Grant Date Fair Value | ||
Outstanding at the beginning of the year (in dollars per share) | $ 14.63 | |
Granted (in dollars per share) | 10.55 | |
Vested (in dollars per share) | 14.69 | |
Forfeited (in dollars per share) | 15.42 | |
Outstanding at the end of the year (in dollars per share) | $ 14.34 |
Fair Value Measurements - Financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|---|
Assets | ||||||
Securities available-for-sale, at fair value | $ 216,146 | $ 40,300 | $ 278,069 | [1] | ||
Carrying Amount | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 216,146 | 278,069 | ||||
Carrying Amount | Cash flow hedge | ||||||
Assets | ||||||
Derivative assets | 10,879 | 4,251 | ||||
Interest rate swap | Carrying Amount | ||||||
Assets | ||||||
Derivative assets | 5,758 | 4,260 | ||||
Liabilities | ||||||
Derivative liabilities | 5,758 | 4,260 | ||||
Securities of U.S. government and federal agencies | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 10,973 | 11,004 | ||||
Corporate bonds | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 16,890 | 19,058 | ||||
SBA pass-through securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 56 | 67 | ||||
Mortgage-backed securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 183,678 | 237,434 | ||||
Collateralized mortgage obligations | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 3,159 | 8,686 | ||||
Level 1 | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Level 1 | Cash flow hedge | ||||||
Assets | ||||||
Derivative assets | 0 | 0 | ||||
Level 1 | Interest rate swap | ||||||
Assets | ||||||
Derivative assets | 0 | 0 | ||||
Liabilities | ||||||
Derivative liabilities | 0 | 0 | ||||
Level 2 | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 216,146 | 278,069 | ||||
Level 2 | Cash flow hedge | ||||||
Assets | ||||||
Derivative assets | 10,879 | 4,251 | ||||
Level 2 | Interest rate swap | ||||||
Assets | ||||||
Derivative assets | 5,758 | 4,260 | ||||
Liabilities | ||||||
Derivative liabilities | 5,758 | 4,260 | ||||
Level 3 | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Level 3 | Cash flow hedge | ||||||
Assets | ||||||
Derivative assets | 0 | 0 | ||||
Level 3 | Interest rate swap | ||||||
Assets | ||||||
Derivative assets | 0 | 0 | ||||
Liabilities | ||||||
Derivative liabilities | 0 | 0 | ||||
Recurring | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 216,146 | 278,069 | ||||
Recurring | Securities of U.S. government and federal agencies | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 10,973 | 11,004 | ||||
Recurring | Securities of state and local municipalities tax exempt | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 983 | 1,376 | ||||
Recurring | Securities of state and local municipalities taxable | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 407 | 444 | ||||
Recurring | Corporate bonds | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 16,890 | 19,058 | ||||
Recurring | SBA pass-through securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 56 | 67 | ||||
Recurring | Mortgage-backed securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 183,678 | 237,434 | ||||
Recurring | Collateralized mortgage obligations | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 3,159 | 8,686 | ||||
Recurring | Level 1 | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | Securities of U.S. government and federal agencies | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | Securities of state and local municipalities tax exempt | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | Securities of state and local municipalities taxable | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | Corporate bonds | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | SBA pass-through securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | Mortgage-backed securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 1 | Collateralized mortgage obligations | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 2 | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 216,146 | 278,069 | ||||
Recurring | Level 2 | Securities of U.S. government and federal agencies | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 10,973 | 11,004 | ||||
Recurring | Level 2 | Securities of state and local municipalities tax exempt | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 983 | 1,376 | ||||
Recurring | Level 2 | Securities of state and local municipalities taxable | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 407 | 444 | ||||
Recurring | Level 2 | Corporate bonds | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 16,890 | 19,058 | ||||
Recurring | Level 2 | SBA pass-through securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 56 | 67 | ||||
Recurring | Level 2 | Mortgage-backed securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 183,678 | 237,434 | ||||
Recurring | Level 2 | Collateralized mortgage obligations | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 3,159 | 8,686 | ||||
Recurring | Level 3 | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | Securities of U.S. government and federal agencies | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | Securities of state and local municipalities tax exempt | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | Securities of state and local municipalities taxable | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | Corporate bonds | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | SBA pass-through securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | Mortgage-backed securities | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | 0 | 0 | ||||
Recurring | Level 3 | Collateralized mortgage obligations | ||||||
Assets | ||||||
Securities available-for-sale, at fair value | $ 0 | $ 0 | ||||
|
Fair Value Measurements - Assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets | ||
Impaired loans | $ 708 | $ 1,233 |
Commercial real estate | ||
Assets | ||
Impaired loans | 708 | |
Commercial and Industrial | ||
Assets | ||
Impaired loans | 1,233 | |
Level 1 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 1 | Commercial real estate | ||
Assets | ||
Impaired loans | 0 | |
Level 1 | Commercial and Industrial | ||
Assets | ||
Impaired loans | 0 | |
Level 2 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 2 | Commercial real estate | ||
Assets | ||
Impaired loans | 0 | |
Level 2 | Commercial and Industrial | ||
Assets | ||
Impaired loans | 0 | |
Level 3 | ||
Assets | ||
Impaired loans | 708 | 1,233 |
Level 3 | Commercial real estate | ||
Assets | ||
Impaired loans | $ 708 | |
Level 3 | Commercial and Industrial | ||
Assets | ||
Impaired loans | $ 1,233 |
Fair Value Measurements - Quantitative information about Level 3 fair value measurements (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Nonrecurring | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 708 | $ 1,233 |
Nonrecurring | Commercial real estate | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 708 | |
Nonrecurring | Commercial and Industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 1,233 | |
Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, valuation technique | Valuation Technique Discounted Appraised Value [Member] | Valuation Technique Discounted Appraised Value [Member] |
Impaired loans, measurement input | Measurement Input, Cost to Sell [Member] | Measurement Input, Cost to Sell [Member] |
Level 3 | Minimum | Commercial real estate | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, range | 0.0800 | |
Level 3 | Minimum | Commercial and Industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, range | 0.08 | |
Level 3 | Maximum | Commercial real estate | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, range | 0.0942 | |
Level 3 | Maximum | Commercial and Industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, range | 0.08 | |
Level 3 | Avg | Commercial real estate | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, range | 0.0942 | |
Level 3 | Avg | Commercial and Industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, range | 0.0800 | |
Level 3 | Nonrecurring | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 708 | $ 1,233 |
Level 3 | Nonrecurring | Commercial real estate | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 708 | |
Level 3 | Nonrecurring | Commercial and Industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 1,233 |
Fair Value Measurements - Carrying amount, fair value and placement in the fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
|||
---|---|---|---|---|---|---|
Financial assets: | ||||||
Cash and due from banks | $ 7,560 | $ 7,253 | [1] | |||
Interest-bearing deposits at other institutions | 89,440 | 74,300 | [1] | |||
Securities available-for-sale | 216,146 | $ 40,300 | 278,069 | [1] | ||
Restricted stock | 7,745 | 15,612 | [1] | |||
Loans, net | 1,830,664 | 1,824,394 | ||||
Bank owned life insurance | 56,438 | 55,371 | [1] | |||
Accrued interest receivable | 10,151 | 9,435 | [1] | |||
Liabilities | ||||||
Time deposits | 664,296 | 508,413 | [1] | |||
Federal funds purchased | 0 | 30,000 | [1] | |||
Subordinated notes | 19,606 | 19,565 | [1] | |||
Accrued interest payable | 3,033 | 1,269 | [1] | |||
Carrying Amount | ||||||
Financial assets: | ||||||
Cash and due from banks | 7,560 | 7,253 | ||||
Interest-bearing deposits at other institutions | 89,440 | 74,300 | ||||
Securities held-to-maturity | 264 | 264 | ||||
Securities available-for-sale | 216,146 | 278,069 | ||||
Restricted stock | 7,745 | 15,612 | ||||
Loans, net | 1,830,664 | 1,824,394 | ||||
Bank owned life insurance | 56,438 | 55,371 | ||||
Accrued interest receivable | 10,151 | 9,435 | ||||
Liabilities | ||||||
Checking, savings and money market accounts | 1,331,675 | 1,321,749 | ||||
Time deposits | 664,296 | 508,413 | ||||
Federal funds purchased | 30,000 | |||||
FHLB advances | 50,000 | 235,000 | ||||
Subordinated notes | 19,606 | 19,565 | ||||
Accrued interest payable | 3,033 | 1,269 | ||||
Carrying Amount | Cash flow hedge | ||||||
Financial assets: | ||||||
Derivative assets | 10,879 | 4,251 | ||||
Carrying Amount | Interest rate swap | ||||||
Financial assets: | ||||||
Derivative assets | 5,758 | 4,260 | ||||
Liabilities | ||||||
Derivative liabilities | 5,758 | 4,260 | ||||
Level 1 | ||||||
Financial assets: | ||||||
Cash and due from banks | 7,560 | 7,253 | ||||
Interest-bearing deposits at other institutions | 89,440 | 74,300 | ||||
Securities held-to-maturity | 0 | 0 | ||||
Securities available-for-sale | 0 | 0 | ||||
Restricted stock | 0 | 0 | ||||
Loans, net | 0 | 0 | ||||
Bank owned life insurance | 0 | 0 | ||||
Accrued interest receivable | 0 | 0 | ||||
Liabilities | ||||||
Checking, savings and money market accounts | 0 | 0 | ||||
Time deposits | 0 | 0 | ||||
Federal funds purchased | 0 | |||||
FHLB advances | 0 | 0 | ||||
Subordinated notes | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Level 1 | Cash flow hedge | ||||||
Financial assets: | ||||||
Derivative assets | 0 | 0 | ||||
Level 1 | Interest rate swap | ||||||
Financial assets: | ||||||
Derivative assets | 0 | 0 | ||||
Liabilities | ||||||
Derivative liabilities | 0 | 0 | ||||
Level 2 | ||||||
Financial assets: | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest-bearing deposits at other institutions | 0 | 0 | ||||
Securities held-to-maturity | 243 | 252 | ||||
Securities available-for-sale | 216,146 | 278,069 | ||||
Restricted stock | 7,745 | 15,612 | ||||
Loans, net | 0 | 0 | ||||
Bank owned life insurance | 56,438 | 55,371 | ||||
Accrued interest receivable | 10,151 | 9,435 | ||||
Liabilities | ||||||
Checking, savings and money market accounts | 1,331,675 | 1,321,749 | ||||
Time deposits | 663,207 | 510,754 | ||||
Federal funds purchased | 30,000 | |||||
FHLB advances | 50,000 | 235,000 | ||||
Subordinated notes | 18,763 | 18,856 | ||||
Accrued interest payable | 3,033 | 1,269 | ||||
Level 2 | Cash flow hedge | ||||||
Financial assets: | ||||||
Derivative assets | 10,879 | 4,251 | ||||
Level 2 | Interest rate swap | ||||||
Financial assets: | ||||||
Derivative assets | 5,758 | 4,260 | ||||
Liabilities | ||||||
Derivative liabilities | 5,758 | 4,260 | ||||
Level 3 | ||||||
Financial assets: | ||||||
Cash and due from banks | 0 | 0 | ||||
Interest-bearing deposits at other institutions | 0 | 0 | ||||
Securities held-to-maturity | 0 | 0 | ||||
Securities available-for-sale | 0 | 0 | ||||
Restricted stock | 0 | 0 | ||||
Loans, net | 1,725,171 | 1,756,984 | ||||
Bank owned life insurance | 0 | 0 | ||||
Accrued interest receivable | 0 | 0 | ||||
Liabilities | ||||||
Checking, savings and money market accounts | 0 | 0 | ||||
Time deposits | 0 | 0 | ||||
Federal funds purchased | 0 | |||||
FHLB advances | 0 | 0 | ||||
Subordinated notes | 0 | 0 | ||||
Accrued interest payable | 0 | 0 | ||||
Level 3 | Cash flow hedge | ||||||
Financial assets: | ||||||
Derivative assets | 0 | 0 | ||||
Level 3 | Interest rate swap | ||||||
Financial assets: | ||||||
Derivative assets | 0 | 0 | ||||
Liabilities | ||||||
Derivative liabilities | $ 0 | $ 0 | ||||
|
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Number of anti-dilutive shares excluded from the calculation (in shares) | 0 | 0 | ||
Net income | $ 4,039 | $ 7,043 | $ 8,892 | $ 20,080 |
Weighted average number of shares (in shares) | 17,800,000 | 17,485,000 | 17,696,000 | 17,413,000 |
Effect of dilutive securities, restricted stock units and options (in shares) | 474,000 | 980,000 | 514,000 | 1,069,000 |
Weighted average diluted shares (in shares) | 18,274,000 | 18,465,000 | 18,210,000 | 18,482,000 |
Basic EPS (in dollars per share) | $ 0.23 | $ 0.40 | $ 0.50 | $ 1.15 |
Diluted EPS (in dollars per share) | $ 0.22 | $ 0.38 | $ 0.49 | $ 1.09 |
Restricted Stock Units (RSUs) | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Number of anti-dilutive shares excluded from the calculation (in shares) | 9,327 | 9,327 |
Accumulated Other Comprehensive Income (Loss) (Details) |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
component
|
Mar. 31, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
component
|
Sep. 30, 2023
USD ($)
component
|
Sep. 30, 2022
USD ($)
component
|
Dec. 31, 2022
USD ($)
|
[1] | |||||
Changes in accumulated other comprehensive income | |||||||||||
Balance at the beginning of the period | $ 211,051,000 | $ 202,382,000 | [1] | $ 197,599,000 | $ 202,382,000 | [1] | $ 209,796,000 | ||||
Net unrealized (losses) gains during the period | (4,072,000) | (10,388,000) | (1,849,000) | (37,537,000) | |||||||
Net reclassification adjustment for losses realized in income | 0 | 0 | 3,582,000 | 0 | |||||||
Total other comprehensive income (loss) | (4,072,000) | (10,388,000) | 1,733,000 | (37,537,000) | |||||||
Balance at the end of the period | 211,246,000 | $ 194,635,000 | 211,246,000 | $ 194,635,000 | |||||||
Securities available-for-sale, at fair value | $ 216,146,000 | $ 40,300,000 | $ 216,146,000 | $ 278,069,000 | |||||||
Investment portfolio percentage sold | 12.00% | ||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Number of securities component of AOCI | component | 2 | 2 | 2 | 2 | |||||||
Changes in accumulated other comprehensive income | |||||||||||
Balance at the beginning of the period | $ (30,762,000) | $ (36,567,000) | $ (29,192,000) | $ (36,567,000) | $ (2,043,000) | ||||||
Balance at the end of the period | (34,834,000) | (39,580,000) | (34,834,000) | (39,580,000) | |||||||
Available-for-Sale Securities | |||||||||||
Changes in accumulated other comprehensive income | |||||||||||
Balance at the beginning of the period | (36,316,000) | (39,926,000) | (29,861,000) | (39,926,000) | (1,983,000) | ||||||
Net unrealized (losses) gains during the period | (7,046,000) | (13,555,000) | (7,018,000) | (41,433,000) | |||||||
Net reclassification adjustment for losses realized in income | 3,582,000 | ||||||||||
Total other comprehensive income (loss) | (7,046,000) | (3,600,000) | (13,555,000) | (3,436,000) | (41,433,000) | ||||||
Balance at the end of the period | (43,362,000) | (43,416,000) | (43,362,000) | (43,416,000) | |||||||
Cash Flow Hedges | |||||||||||
Changes in accumulated other comprehensive income | |||||||||||
Balance at the beginning of the period | 5,554,000 | $ 3,359,000 | 669,000 | 3,359,000 | (60,000) | ||||||
Net unrealized (losses) gains during the period | 2,974,000 | 3,167,000 | 5,169,000 | 3,896,000 | |||||||
Net reclassification adjustment for losses realized in income | 0 | ||||||||||
Total other comprehensive income (loss) | 2,974,000 | 3,167,000 | 5,169,000 | 3,896,000 | |||||||
Balance at the end of the period | $ 8,528,000 | $ 3,836,000 | $ 8,528,000 | $ 3,836,000 | |||||||
|
Subordinated Notes (Details) - USD ($) |
1 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Oct. 13, 2020 |
Feb. 28, 2022 |
Sep. 30, 2023 |
Dec. 31, 2021 |
Jun. 20, 2016 |
|
Subordinated Notes | |||||
Subordinated Notes | |||||
Face amount | $ 25,000,000 | ||||
Interest rate (as a percent) | 6.00% | ||||
Redemption price percentage of outstanding principal amount | 100.00% | ||||
Principal amount redeemed | $ 1,200,000 | $ 23,800,000 | |||
Subordinated Notes | Minimum | |||||
Subordinated Notes | |||||
Notice period for redeem the subordinated notes | 30 days | ||||
Subordinated Notes | Maximum | |||||
Subordinated Notes | |||||
Notice period for redeem the subordinated notes | 60 days | ||||
Subordinated Notes | LIBOR | |||||
Subordinated Notes | |||||
Variable interest rate (as a percent) | 4.87% | ||||
Subordinated Notes due 2030 | |||||
Subordinated Notes | |||||
Face amount | $ 20,000,000 | ||||
Interest rate (as a percent) | 4.875% | ||||
Term for fixed interest rate (as a percent) | 5 years | ||||
Subordinated Notes due 2030 | SOFR | |||||
Subordinated Notes | |||||
Variable interest rate (as a percent) | 4.71% |
Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue Recognition | ||||
Non-interest Income (in-scope of Topic 606) | $ 395 | $ 350 | $ 1,090 | $ 1,085 |
Non-interest Income (out-scope of Topic 606) | (170) | 225 | (4,601) | 1,759 |
Total noninterest (loss) income | 225 | 575 | (3,511) | 2,844 |
Other income | ||||
Revenue Recognition | ||||
Non-interest Income (in-scope of Topic 606) | 13 | 8 | 90 | 97 |
Service Charges on Deposit Accounts | ||||
Revenue Recognition | ||||
Non-interest Income (in-scope of Topic 606) | 284 | 241 | 731 | 706 |
Fees, Exchange, and Other Service Charges | ||||
Revenue Recognition | ||||
Non-interest Income (in-scope of Topic 606) | $ 98 | $ 101 | $ 269 | $ 282 |
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Supplemental Disclosure of Cash Flow Information: | ||
Interest on deposits and borrowed funds | $ 36,421 | $ 8,158 |
Income taxes | 2,360 | 6,283 |
Noncash investing and financing activities: | ||
Unrealized (loss) on securities available-for-sale | (4,406) | (52,447) |
Unrealized gain on interest rate swaps | 6,627 | 4,932 |
Adoption of CECL accounting standard | (2,808) | 0 |
Right-of-use assets obtained in the exchange for lease liabilities during the current period | $ 397 | $ 522 |
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