QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of class | Trading Symbol | Name of exchange on which registered | ||||||
Large Accelerated Filer | ☐ | ☒ | ||||||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Consolidated Balance Sheets – June 30, 2023 and December 31, 2022 | |||||
Consolidated Statements of Income – Three and Six Months Ended June 30, 2023 and 2022 | |||||
Consolidated Statements of Comprehensive Income (Loss) – Three and Six Months Ended June 30, 2023 and 2022 | |||||
Consolidated Statements of Stockholders’ Equity – Three and Six Months Ended June 30, 2023 and 2022 | |||||
Consolidated Statements of Cash Flows – Six Months Ended June 30, 2023 and 2022 | |||||
Acronym | Description | ||||
ACH | Automated clearing house | ||||
ACL | Allowance for credit losses | ||||
AFS | Available-for-sale | ||||
ALCO | Asset/Liability Committee | ||||
ALLL | Allowance for loan and lease losses | ||||
ALM | Asset / liability management | ||||
AOCI | Accumulated other comprehensive income | ||||
ASC | Accounting Standards Codification | ||||
ASU | Accounting Standards Update | ||||
BHC Act | Bank Holding Company Act of 1956 | ||||
BOLI | Bank owned life insurance | ||||
BSA-AML | Bank Secrecy Act - Anti-Money Laundering | ||||
BTFP | Federal Reserve Bank Term Funding Program | ||||
CBCA | Change in Bank Control Act | ||||
CBLR | Community Bank Leverage Ratio | ||||
CDARS | Certificate of Deposit Account Registry Service | ||||
CECL | Current expected credit losses | ||||
CET1 | Common equity tier 1 | ||||
CFPB | Consumer Financial Protection Bureau | ||||
CMO | Collateralized mortgage obligation | ||||
COVID-19 | Coronavirus Disease 2019 | ||||
CRE | Commercial real estate | ||||
DIF | FDIC’s deposit insurance fund | ||||
ECOA | Equal Credit Opportunity Act | ||||
ESOP | Employee Stock Ownership Plan | ||||
FASB | Financial Accounting Standards Board | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
FFIEC | Federal Financial Institutions Examination Council | ||||
FHA | Federal Housing Authority | ||||
FHFA | Federal Housing Finance Agency | ||||
FHLB | Federal Home Loan Bank of Pittsburgh | ||||
FHLMC | Federal Home Loan Mortgage Corporation or Freddie Mac | ||||
FICO | Financing Corporation | ||||
FNMA | Federal National Mortgage Association or Fannie Mae | ||||
FRB | Federal Reserve Bank of Philadelphia | ||||
FTE | Fully taxable equivalent | ||||
GAAP | U.S. generally accepted accounting principles | ||||
GLB Act | Gramm-Leach-Bliley Act | ||||
GNMA | Government National Mortgage Association or Ginnie Mae | ||||
GSE | Government-sponsored entities | ||||
HTM | Held-to-maturity | ||||
ICBA | Independent Community Bankers of America | ||||
JOBS Act | Jumpstart Our Business Startups Act of 2012 | ||||
LBP | Look-back period | ||||
LEP | Loss emergence period |
LGD | Loss given default | ||||
LIBOR | London Inter-bank Offering Rate | ||||
LIHTC | Low-income-housing tax credit | ||||
MBS | Mortgage-backed securities | ||||
MSLP | Main Street Lending Programs | ||||
MSR | Mortgage servicing rights | ||||
OFAC | Office of Foreign Assets Control | ||||
OREO | Other real estate owned | ||||
PCAOB | Public Company Accounting Oversight Board | ||||
PD | Probability of default | ||||
PDBS | Pennsylvania Department of Banking and Securities | ||||
PPP | Paycheck Protection Program | ||||
ROU | Right-of-use | ||||
SBA | Small Business Administration | ||||
SEC | Securities and Exchange Commission | ||||
SERP | Supplemental Executive Retirement Plan | ||||
SNC | Shared national credit | ||||
SOFR | Secure Overnight Financing Rate | ||||
TILA | Truth in Lending Act | ||||
TDR | Troubled debt restructuring | ||||
USDA | U.S. Department of Agriculture | ||||
VA | U.S. Department of Veteran’s Affairs |
(dollars in thousands, except share data) | June 30, 2023 | December 31, 2022 | |||||||||
Assets: | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing deposits at other banks | |||||||||||
Cash and cash equivalents | |||||||||||
Securities available-for-sale, at fair value (amortized cost of $ | |||||||||||
Securities held-to-maturity, at amortized cost (fair value of $ | |||||||||||
Equity investments | |||||||||||
Mortgage loans held for sale | |||||||||||
Loans, net of fees and costs | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Loans and other finance receivables, net of the allowance for credit losses | |||||||||||
Restricted investment in bank stock | |||||||||||
Bank premises and equipment, net | |||||||||||
Bank owned life insurance | |||||||||||
Accrued interest receivable | |||||||||||
Other real estate owned | |||||||||||
Deferred income taxes | |||||||||||
Servicing assets | |||||||||||
Goodwill | |||||||||||
Intangible assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities: | |||||||||||
Deposits: | |||||||||||
Non-interest bearing | $ | $ | |||||||||
Interest bearing | |||||||||||
Total deposits | |||||||||||
Borrowings | |||||||||||
Subordinated debentures | |||||||||||
Accrued interest payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Surplus | |||||||||||
Treasury stock, | ( | ( | |||||||||
Unearned common stock held by employee stock ownership plan | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Loans and other finance receivables, including fees | $ | $ | $ | $ | |||||||||||||||||||
Securities - taxable | |||||||||||||||||||||||
Securities - tax-exempt | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
Non-interest income: | |||||||||||||||||||||||
Mortgage banking income | |||||||||||||||||||||||
Wealth management income | |||||||||||||||||||||||
SBA loan income | |||||||||||||||||||||||
Earnings on investment in life insurance | |||||||||||||||||||||||
Net change in the fair value of derivative instruments | ( | ( | |||||||||||||||||||||
Net change in the fair value of loans held-for-sale | ( | ( | ( | ||||||||||||||||||||
Net change in the fair value of loans held-for-investment | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) gain on hedging activity | ( | ( | |||||||||||||||||||||
Net loss on sale of investment securities available-for-sale | ( | ( | |||||||||||||||||||||
Service charges | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total non-interest income | |||||||||||||||||||||||
Non-interest expense: | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Occupancy and equipment | |||||||||||||||||||||||
Professional fees | |||||||||||||||||||||||
Advertising and promotion | |||||||||||||||||||||||
Data processing and software | |||||||||||||||||||||||
Other | — | ||||||||||||||||||||||
Total non-interest expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Diluted weighted average shares outstanding |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income: | $ | $ | $ | $ | |||||||||||||||||||
Net change in unrealized (losses) gains on investment securities: | |||||||||||||||||||||||
Change in fair value of investment securities, net of tax of $( | ( | ( | ( | ||||||||||||||||||||
Reclassification adjustment for net losses (gains) realized in net income, net of tax effect of $ | ( | ||||||||||||||||||||||
Reclassification adjustment for investment securities transferred to held-to-maturity, net of tax effect of $ | ( | ||||||||||||||||||||||
Unrealized investment gains (losses), net of tax effect of $( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Net change in unrealized gains (losses) on interest rate swaps used in cash flow hedges, net of tax effect of $( | |||||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Total comprehensive income (loss) | $ | $ | $ | $ |
(dollars in thousands, except per share data) | Common Stock | Surplus | Treasury Stock | Unearned ESOP | Retained Earnings | AOCI | Total | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends paid or accrued, $ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net purchase of treasury stock through publicly announced plans ( | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock issued through share-based awards and exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ |
(dollars in thousands, except per share data) | Common Stock | Surplus | Treasury Stock | Unearned ESOP | Retained Earnings | AOCI | Total | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
( | ( | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Dividends paid or accrued, $ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net purchase of treasury stock through publicly announced plans ( | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock issued through share-based awards and exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ |
(dollars in thousands, except per share data) | Common Stock | Surplus | Treasury Stock | Unearned ESOP | Retained Earnings | AOCI | Total | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends paid or accrued, $ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net purchase of treasury stock through publicly announced plans ( | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock issued through share-based awards and exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ |
(dollars in thousands, except per share data) | Common Stock | Surplus | Treasury Stock | Unearned ESOP | Retained Earnings | AOCI | Total | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Dividends declared, $ | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net purchase of treasury stock through publicly announced plans ( | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Common stock issued through share-based awards and exercises | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | ( | $ |
Six months ended June 30, | |||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Loss on sale of investment securities | |||||||||||
Net amortization of investment premiums and discounts and change in fair value of equity securities | |||||||||||
Depreciation and amortization (accretion), net | |||||||||||
Provision for credit losses | |||||||||||
Amortization of issuance costs on subordinated debt | |||||||||||
Stock based compensation | |||||||||||
Net change in fair value of derivative instruments | ( | ||||||||||
Net change in fair value of loans held for sale | |||||||||||
Net change in fair value of loans held for investment | |||||||||||
Amortization and net impairment of servicing rights | |||||||||||
SBA loan income | ( | ( | |||||||||
Proceeds from sale of loans | |||||||||||
Loans originated for sale | ( | ( | |||||||||
Mortgage banking income | ( | ( | |||||||||
Increase in accrued interest receivable | ( | ( | |||||||||
(Increase) decrease increase in other assets | ( | ||||||||||
Earnings from investment in bank owned life insurance | ( | ( | |||||||||
Increase in deferred income tax | ( | ( | |||||||||
Increase in accrued interest payable | |||||||||||
Decrease in other liabilities | ( | ( | |||||||||
Net cash (used in) provided by operating activities | $ | ( | $ | ||||||||
Cash flows from investing activities: | |||||||||||
Activity in available-for-sale securities: | |||||||||||
Maturities, repayments and calls | |||||||||||
Sales | |||||||||||
Purchases | ( | ( | |||||||||
Activity in held-to-maturity securities: | |||||||||||
Maturities, repayments and calls | |||||||||||
Purchases | ( | ||||||||||
(Decrease) increase in restricted stock | ( | ||||||||||
Net increase in loans | ( | ( | |||||||||
Purchases of premises and equipment | ( | ( | |||||||||
Net cash used in investing activities | $ | ( | $ | ( | |||||||
Cash flows from financing activities: | |||||||||||
Net increase in deposits | |||||||||||
Increase (decrease) in short-term borrowings | |||||||||||
Increase in long-term debt | |||||||||||
Repayment of subordinated debt | ( | ||||||||||
Net purchase of treasury stock | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Share based awards and exercises | |||||||||||
Net cash provided by financing activities | $ | $ | |||||||||
Net change in cash and cash equivalents | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Transfers from loans held for sale to loans held for investment | |||||||||||
Net loans sold, not settled | ( | ||||||||||
Transfer of securities from AFS to HTM | |||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Numerator for earnings per share: | |||||||||||||||||||||||
Net income available to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Denominators for earnings per share: | |||||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||
Average unearned ESOP shares | ( | ( | ( | ( | |||||||||||||||||||
Basic weighted averages shares outstanding | |||||||||||||||||||||||
Dilutive effects of assumed exercises of stock options | |||||||||||||||||||||||
Dilutive effects of SERP shares | |||||||||||||||||||||||
Diluted weighted averages shares outstanding | |||||||||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share | $ | $ | $ | $ | |||||||||||||||||||
Antidilutive shares excluded from computation of average dilutive earnings per share |
June 30, 2023 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Allowance for Credit Losses | Fair value | # of Securities in unrealized loss position | |||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||
U.S. asset backed securities | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
U.S. government agency MBS | ( | ||||||||||||||||||||||||||||||||||
U.S. government agency CMO | ( | ||||||||||||||||||||||||||||||||||
State and municipal securities | ( | ||||||||||||||||||||||||||||||||||
U.S. Treasuries | ( | ||||||||||||||||||||||||||||||||||
Non-U.S. government agency CMO | ( | ||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||||||||||||||
Total securities available-for-sale | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
Total securities held-to-maturity | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | # of Securities in unrealized loss position | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||
U.S. asset backed securities | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
U.S. government agency MBS | ( | ||||||||||||||||||||||||||||
U.S. government agency CMO | ( | ||||||||||||||||||||||||||||
State and municipal securities | ( | ||||||||||||||||||||||||||||
U.S. Treasuries | ( | ||||||||||||||||||||||||||||
Non-U.S. government agency CMO | ( | ||||||||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||||||||
Total securities available-for-sale | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||
State and municipal securities | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or more | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||
U.S. asset backed securities | $ | $ | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||
U.S. government agency mortgage-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. government agency collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
State and municipal securities | ( | ( | |||||||||||||||||||||||||||||||||
U.S. Treasuries | ( | ( | |||||||||||||||||||||||||||||||||
Non-U.S. government agency collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total securities available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Total securities held-to-maturity | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or more | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | |||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||
U.S. asset backed securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
U.S. government agency MBS | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. government agency CMO | ( | ( | ( | ||||||||||||||||||||||||||||||||
State and municipal securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. Treasuries | ( | ( | ( | ||||||||||||||||||||||||||||||||
Non-U.S. government agency CMO | ( | ( | ( | ||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total securities available-for-sale | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||
State and municipal securities | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Total securities held-to-maturity | $ | $ | ( | $ | $ | ( | $ | $ | ( |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale | Held-to-maturity | Available-for-sale | Held-to-maturity | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | Amortized cost | Fair value | |||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Due after one year through five years | |||||||||||||||||||||||||||||||||||||||||||||||
Due after five years through ten years | |||||||||||||||||||||||||||||||||||||||||||||||
Due after ten years | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-related securities | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Proceeds from sale of investment securities | $ | $ | $ | $ | |||||||||||||||||||
Gross gain on sale of available for sale investments | |||||||||||||||||||||||
Gross loss on sale of available for sale investments |
(dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Real estate loans: | |||||||||||
Commercial mortgage | $ | $ | |||||||||
Home equity lines and loans | |||||||||||
Residential mortgage | |||||||||||
Construction | |||||||||||
Total real estate loans | |||||||||||
Commercial and industrial | |||||||||||
Small business loans | |||||||||||
Consumer | |||||||||||
Leases, net | |||||||||||
Total loans | $ | $ | |||||||||
Balances included in loans, net of fees and costs: | |||||||||||
Residential mortgage real estate loans accounted under fair value option, at fair value | $ | $ | |||||||||
Residential mortgage real estate loans accounted under fair value option, at amortized cost | |||||||||||
Unearned lease income included in leases, net | ( | ( | |||||||||
Unamortized net deferred loan origination costs |
June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 30-89 days past due | 90+ days past due and still accruing | Total past due | Current | Total Accruing Loans and leases | Nonaccrual loans and leases | Total loans portfolio and leases | % Delinquent | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Leases, net | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | % |
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 30-89 days past due | 90+ days past due and still accruing | Total past due | Current | Total Accruing Loans and leases | Nonaccrual loans and leases | Total loans portfolio and leases | % Delinquent | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | $ | % | |||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Leases, net | % | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | % |
June 30, 2023 | |||||||||||||||||
(dollars in thousands) | Nonaccrual Without ACL | Nonaccrual With ACL | Total Nonaccrual | ||||||||||||||
Home equity lines and loans | $ | $ | $ | ||||||||||||||
Residential mortgage | |||||||||||||||||
Construction | |||||||||||||||||
Commercial and industrial | |||||||||||||||||
Small business loans | |||||||||||||||||
Leases, net | |||||||||||||||||
Total | $ | $ | $ |
June 30, 2023 | |||||||||||||||||
(dollars in thousands) | Real Estate | Equipment and Other | Total | ||||||||||||||
Home equity lines and loans | $ | $ | $ | ||||||||||||||
Residential mortgage | |||||||||||||||||
Construction | |||||||||||||||||
Commercial and industrial | |||||||||||||||||
Small business loans | |||||||||||||||||
Leases, net | |||||||||||||||||
Total | $ | $ | $ |
Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (recovery of provision) for credit losses | Ending balance | ||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Home equity lines and loans | ( | ||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Commercial and industrial | ( | ||||||||||||||||||||||||||||
Small business loans | ( | ||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance, prior to adoption of ASU No. 2016-13 for CECL | Adjustment to initially apply ASU No. 2016-13 for CECL | Charge-offs | Recoveries | Provision (recovery of provision) for credit losses | Ending balance | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Home equity lines and loans | ( | ||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Construction | ( | ( | |||||||||||||||||||||||||||||||||
Commercial and industrial | ( | ( | |||||||||||||||||||||||||||||||||
Small business loans | ( | ||||||||||||||||||||||||||||||||||
Consumer | ( | ( | |||||||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ |
Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (Reversal) | Ending balance | ||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Commercial and industrial | ( | ||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ |
Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provision (Reversal) | Ending balance | ||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Commercial and industrial | ( | ||||||||||||||||||||||||||||
Small business loans | ( | ||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||
Leases | ( | ||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Provision for credit losses - funded | $ | $ | $ | $ | |||||||||||||||||||
Recovery of provision for credit losses - unfunded | ( | ( | |||||||||||||||||||||
Total provision for credit losses | $ | $ | $ | $ |
June 30, 2023 | |||||||||||||||||||||||||||||||||||
Allowance for credit losses | Carrying value of loans and leases | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Individually evaluated | Collectively evaluated | Total | Individually evaluated | Collectively evaluated | Total | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Leases, net | |||||||||||||||||||||||||||||||||||
Total (1) | $ | $ | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Allowance on loans and leases | Carrying value of loans and leases | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Individually evaluated | Collectively evaluated | Total | Individually evaluated | Collectively evaluated | Total | |||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Leases, net | |||||||||||||||||||||||||||||||||||
Total (1) | $ | $ | $ | $ | $ | $ |
June 30, 2023 | Revolving Loans Converted to Term Loans | Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||
Total by risk rating | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass/Watch | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total current period gross charge-offs | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | ( |
June 30, 2023 | Revolving Loans | Total | |||||||||||||||||||||||||||||||||||||||||||||
Term Loans | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | ||||||||||||||||||||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||
Residential mortgage (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Leases, net | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Current period gross charge-offs | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||
Total by Payment Performance | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nonperforming | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Total current period gross charge-offs | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||
(1) Excludes $ |
December 31, 2022 | |||||||||||||||||||||||||||||
(dollars in thousands) | Pass | Special mention | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2022 | ||||||||||||||||||||
(dollars in thousands) | Performing | Non- performing | Total | |||||||||||||||||
Residential mortgage (1) | $ | $ | $ | |||||||||||||||||
Consumer | ||||||||||||||||||||
Leases, net | ||||||||||||||||||||
Total | $ | $ | $ |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Recorded investment | Principal balance | Related allowance | Recorded investment | Principal balance | Related allowance | |||||||||||||||||||||||||||||
Individually evaluated loans with related allowance: | |||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Individually evaluated loans without related allowance: | |||||||||||||||||||||||||||||||||||
Commercial mortgage | $ | $ | $ | — | $ | $ | $ | — | |||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||||||||
Small business loans | — | — | |||||||||||||||||||||||||||||||||
Home equity lines and loans | — | — | |||||||||||||||||||||||||||||||||
Residential mortgage | — | — | |||||||||||||||||||||||||||||||||
Construction | — | — | |||||||||||||||||||||||||||||||||
Leases | — | — | |||||||||||||||||||||||||||||||||
Total | — | — | |||||||||||||||||||||||||||||||||
Grand Total | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | |||||||||||||||||||
Individually evaluated loans with related allowance: | |||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | |||||||||||||||||||
Small business loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Individually evaluated loans without related allowance: | |||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Leases | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Grand Total | $ | $ | $ | $ |
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | |||||||||||||||||||
Individually evaluated loans with related allowance: | |||||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | |||||||||||||||||||
Small business loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Individually evaluated loans without related allowance: | |||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||
Small business loans | |||||||||||||||||||||||
Home equity lines and loans | |||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Leases | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Grand Total | $ | $ | $ | $ |
(dollars in thousands) | December 31, 2022 | ||||
TDRs included in nonperforming loans and leases | $ | ||||
TDRs in compliance with modified terms | |||||
Total TDRs | $ |
Three and Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Number of Loans | Amortized Cost Basis | % of Total Class of Financing Receivable | Related Reserve | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | |||||||||||||||||||||||
Commercial & industrial | $ | $ | |||||||||||||||||||||
Total | $ | $ | |||||||||||||||||||||
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | |||||||||||||||||||||||
Commercial & industrial | $ | $ | |||||||||||||||||||||
Total | $ | $ |
Number of Loans | |||||||||||||||||||||||
Financial Effect | |||||||||||||||||||||||
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | |||||||||||||||||||||||
Commercial & industrial | Extend maturity date | ||||||||||||||||||||||
Total | |||||||||||||||||||||||
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | |||||||||||||||||||||||
Commercial & industrial | Extend term and allow additional lender funding | ||||||||||||||||||||||
Total |
(dollars in thousands) | Maturity date | Interest rate | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
FHLB Open Repo Plus Weekly | 06/10/2024 | $ | $ | ||||||||||||||||||||
FHLB Mid-term Repo Fixed | 07/14/2023 | ||||||||||||||||||||||
FRB BTFP Advances | 03/29/2024 | ||||||||||||||||||||||
Total Short-Term Borrowings | $ | $ |
Maturity date | Interest rate | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||
FHLB Mid-term Repo Fixed | 12/22/2025 | $ | $ | ||||||||||||||||||||
FHLB Mid-term Repo Fixed | 9/30/2024 | ||||||||||||||||||||||
Total Long-Term Borrowings | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Balance at beginning of the period | $ | $ | $ | $ | |||||||||||||||||||
Servicing rights capitalized | |||||||||||||||||||||||
Amortization of servicing rights | ( | ( | ( | ( | |||||||||||||||||||
Change in valuation allowance | |||||||||||||||||||||||
Balance at end of the period | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Valuation allowance, beginning of period | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Recovery | |||||||||||||||||||||||
Valuation allowance, end of period | $ | $ | ( | $ | $ | ( |
(dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Fair value of residential mortgage servicing rights | $ | $ | |||||||||
Weighted average life (months) | |||||||||||
Prepayment speed | % | % | |||||||||
Impact on fair value: | |||||||||||
10% adverse change | $ | ( | $ | ( | |||||||
20% adverse change | ( | ( | |||||||||
Discount rate | % | % | |||||||||
Impact on fair value: | |||||||||||
10% adverse change | $ | ( | $ | ( | |||||||
20% adverse change | ( | ( |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Balance at beginning of the period | $ | $ | $ | $ | |||||||||||||||||||
Servicing rights capitalized | |||||||||||||||||||||||
Amortization of servicing rights | ( | ( | ( | ( | |||||||||||||||||||
Change in valuation allowance | ( | ( | |||||||||||||||||||||
Balance at end of the period | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Valuation allowance, beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Impairment | ( | ( | |||||||||||||||||||||
Recovery | |||||||||||||||||||||||
Valuation allowance, end of period | $ | ( | $ | ( | $ | ( | $ | ( |
(dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Fair value of SBA loan servicing rights | $ | $ | |||||||||
Weighted average life (years) | |||||||||||
Prepayment speed | % | % | |||||||||
Impact on fair value: | |||||||||||
10% adverse change | $ | ( | $ | ( | |||||||
20% adverse change | ( | ( | |||||||||
Discount rate | % | % | |||||||||
Impact on fair value: | |||||||||||
10% adverse change | $ | ( | $ | ( | |||||||
20% adverse change | ( | ( |
June 30, 2023 | |||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. asset backed securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. government agency MBS | |||||||||||||||||||||||
U.S. government agency CMO |
June 30, 2023 | |||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
U.S. Treasuries | |||||||||||||||||||||||
Non-U.S. government agency CMO | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Equity investments | |||||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||||
Mortgage loans held for investment | |||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Forward commitments | |||||||||||||||||||||||
Customer derivatives - interest rate swaps | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | |||||||||||||||||||
Forward commitments | |||||||||||||||||||||||
Customer derivatives - interest rate swaps | |||||||||||||||||||||||
Risk Participation Agreements | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. asset backed securities | $ | $ | $ | $ | |||||||||||||||||||
U.S. government agency MBS | |||||||||||||||||||||||
U.S. government agency CMO | |||||||||||||||||||||||
State and municipal securities | |||||||||||||||||||||||
U.S. Treasuries | |||||||||||||||||||||||
Non-U.S. government agency CMO | |||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Equity investments | |||||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||||
Mortgage loans held for investment | |||||||||||||||||||||||
Interest rate lock commitments | |||||||||||||||||||||||
Customer derivatives - interest rate swaps | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | |||||||||||||||||||
Customer derivatives - interest rate swaps | |||||||||||||||||||||||
Risk Participation Agreements | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Mortgage servicing rights | $ | $ | |||||||||
SBA loan servicing rights | |||||||||||
Individually evaluated loans (1) | |||||||||||
Commercial and industrial | |||||||||||
Small business loans | |||||||||||
Total | $ | $ |
(dollars in thousands) | Fair Value | Valuation Technique | Significant Unobservable Input | Range of Inputs | |||||||||||||||||||||||||
June 30, 2023 | $ | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | ||||||||||||||||||||||||||
December 31, 2022 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value Hierarchy Level | Carrying amount | Fair value | Carrying amount | Fair value | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | $ | $ | $ | ||||||||||||||||||||||||
Mortgage loans held for sale | Level 2 | ||||||||||||||||||||||||||||
Loans receivable, net of the allowance for credit losses | Level 3 | ||||||||||||||||||||||||||||
Mortgage loans held for investment | Level 2 | ||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits | Level 2 | ||||||||||||||||||||||||||||
Borrowings | Level 2 | ||||||||||||||||||||||||||||
Subordinated debentures | Level 2 | ||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Balance at beginning of the period | $ | $ | $ | $ | |||||||||||||||||||
Decrease in value | ( | ( | |||||||||||||||||||||
Balance at end of the period | $ | $ | $ | $ |
(dollars in thousands) | Fair Value | Valuation Technique | Significant Unobservable Input | Range of Inputs | Weighted Average | ||||||||||||||||||||||||
June 30, 2023 | $ | ||||||||||||||||||||||||||||
December 31, 2022 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
(dollars in thousands) | Balance Sheet Line Item | Notional Amount | Asset (Liability) Fair Value | Notional Amount | Asset (Liability) Fair Value | ||||||||||||||||||||||||
Interest Rate Lock Commitments | |||||||||||||||||||||||||||||
Positive fair values | Other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Negative fair values | Other liabilities | ( | ( | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||
Forward Commitments | |||||||||||||||||||||||||||||
Positive fair values | Other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Negative fair values | Other liabilities | ( | |||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||
Customer Derivatives - Interest Rate Swaps | |||||||||||||||||||||||||||||
Positive fair values | Other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Negative fair values | Other liabilities | ( | ( | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||
Risk Participation Agreements | |||||||||||||||||||||||||||||
Positive fair values | Other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Negative fair values | Other liabilities | ( | ( | ||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||||||||
Positive fair values | Other assets | $ | $ | $ | $ | ||||||||||||||||||||||||
Negative fair values | Other liabilities | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||
Total derivative financial instruments | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest Rate Lock Commitments | $ | $ | $ | $ | ( | ||||||||||||||||||
Forward Commitments | ( | ||||||||||||||||||||||
Customer Derivatives - Interest Rate Swaps | ( | ||||||||||||||||||||||
Risk Participation Agreements | |||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||
Net fair value (losses) gains on derivative financial instruments | $ | $ | ( | $ | $ | ( |
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | $ | ( | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Non-interest Income | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage banking income | |||||||||||||||||||||||||||||||||||||||||||||||
Wealth management income | |||||||||||||||||||||||||||||||||||||||||||||||
SBA loan income | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in fair values | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Net gain on hedging activity | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expense | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | $ |
Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Bank | Wealth | Mortgage | Total | Bank | Wealth | Mortgage | Total | |||||||||||||||||||||||||||||||||||||||
Net interest income | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest Income | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage banking income | |||||||||||||||||||||||||||||||||||||||||||||||
Wealth management income | |||||||||||||||||||||||||||||||||||||||||||||||
SBA loan income | |||||||||||||||||||||||||||||||||||||||||||||||
Net change in fair values | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net gain on hedging activity | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest income | |||||||||||||||||||||||||||||||||||||||||||||||
Non-interest expense | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | $ | $ | ( | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | $ |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Return on average assets, annualized | 0.86 | % | 1.31 | % | 0.82 | % | 1.30 | % | |||||||||||||||
Return on average equity, annualized | 12.08 | % | 15.03 | % | 11.37 | % | 14.61 | % | |||||||||||||||
Net interest margin (tax effected yield) | 3.33 | % | 4.07 | % | 3.46 | % | 3.98 | % | |||||||||||||||
Basic earnings per share | $ | 0.42 | $ | 0.49 | $ | 0.78 | $ | 0.95 | |||||||||||||||
Diluted earnings per share | $ | 0.41 | $ | 0.48 | $ | 0.75 | $ | 0.92 |
(dollars in thousands, except per share amounts) | June 30, 2023 | December 31, 2022 | |||||||||
Book value per common share | $ | 13.77 | $ | 13.37 | |||||||
Tangible book value per common share (1) | $ | 13.42 | $ | 13.01 | |||||||
Allowance as a percentage of loans and leases held for investment | 1.09 | % | 1.08 | % | |||||||
Allowance as a percentage of loans and leases held for investment (excl. loans at fair value and PPP loans) (1) | 1.10 | % | 1.09 | % | |||||||
Tier I capital to risk weighted assets | 8.38 | % | 8.77 | % | |||||||
Tangible common equity to tangible assets ratio (1) | 6.81 | % | 7.25 | % | |||||||
Loans and other finance receivables, net of fees and costs | $ | 1,859,839 | $ | 1,743,682 | |||||||
Total assets | $ | 2,206,877 | $ | 2,062,228 | |||||||
Total stockholders’ equity | $ | 153,962 | $ | 153,280 |
For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yields/ Rates | Average Balance | Interest Income/ Expense | Yields/ Rates | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Due from banks | $ | 21,425 | $ | 275 | 5.15 | % | $ | 26,909 | $ | 49 | 0.73 | % | |||||||||||||||||||||||
Federal funds sold | 222 | 3 | 5.42 | 3,230 | 3 | 0.35 | |||||||||||||||||||||||||||||
Investment securities - taxable (1) | 114,993 | 992 | 3.46 | 104,806 | 525 | 2.01 | |||||||||||||||||||||||||||||
Investment securities - tax exempt (1) | 59,143 | 426 | 2.89 | 64,047 | 416 | 2.61 | |||||||||||||||||||||||||||||
Loans held for sale | 27,121 | 407 | 6.02 | 52,859 | 565 | 4.28 | |||||||||||||||||||||||||||||
Loans held for investment (1) | 1,847,736 | 31,810 | 6.91 | 1,484,696 | 18,558 | 4.98 | |||||||||||||||||||||||||||||
Total loans | 1,874,857 | 32,217 | 6.89 | 1,537,555 | 19,123 | 4.99 | |||||||||||||||||||||||||||||
Total interest-earning assets | 2,070,640 | 33,913 | 6.57 | % | 1,736,547 | 20,116 | 4.65 | % | |||||||||||||||||||||||||||
Noninterest earning assets | 95,935 | 74,788 | |||||||||||||||||||||||||||||||||
Total assets | $ | 2,166,575 | $ | 1,811,335 | |||||||||||||||||||||||||||||||
Liabilities and stockholders' equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 203,605 | $ | 1,840 | 3.62 | % | $ | 237,856 | $ | 248 | 0.42 | % | |||||||||||||||||||||||
Money market and savings deposits | 651,816 | 5,371 | 3.31 | 698,557 | 1,076 | 0.62 | |||||||||||||||||||||||||||||
Time deposits | 653,348 | 6,812 | 4.18 | 334,391 | 494 | 0.59 | |||||||||||||||||||||||||||||
Total deposits | 1,508,769 | 14,023 | 3.73 | 1,270,804 | 1,818 | 0.57 | |||||||||||||||||||||||||||||
Borrowings | 163,177 | 2,129 | 5.23 | 16,560 | 77 | 1.87 | |||||||||||||||||||||||||||||
Subordinated debentures | 40,329 | 586 | 5.83 | 40,548 | 591 | 5.84 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,712,275 | 16,738 | 3.92 | 1,327,912 | 2,486 | 0.75 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 266,675 | 296,521 | |||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 33,442 | 28,482 | |||||||||||||||||||||||||||||||||
Total liabilities | 2,012,392 | 1,652,915 | |||||||||||||||||||||||||||||||||
Total stockholders' equity | 154,183 | 158,420 | |||||||||||||||||||||||||||||||||
Total stockholders' equity and liabilities | $ | 2,166,575 | $ | 1,811,335 | |||||||||||||||||||||||||||||||
Net interest income and spread (1) | $ | 17,175 | 2.65 | $ | 17,630 | 3.90 | |||||||||||||||||||||||||||||
Net interest margin (1) | 3.33 | % | 4.07 | % |
For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | |||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yields/ Rates | Average Balance | Interest Income/ Expense | Yields/ Rates | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Due from banks | $ | 20,376 | $ | 490 | 4.85 | % | $ | 27,645 | $ | 62 | 0.45 | % | |||||||||||||||||||||||
Federal funds sold | 213 | 5 | 4.73 | 2,060 | 3 | 0.29 | |||||||||||||||||||||||||||||
Investment securities - taxable (1) | 114,687 | 1,951 | 3.43 | 104,452 | 951 | 1.84 | |||||||||||||||||||||||||||||
Investment securities - tax exempt (1) | 60,981 | 856 | 2.83 | 63,918 | 789 | 2.49 | |||||||||||||||||||||||||||||
Loans held for sale | 21,294 | 624 | 5.91 | 59,936 | 1,101 | 3.67 | % | ||||||||||||||||||||||||||||
Loans held for investment (1) | 1,815,707 | 61,012 | 6.78 | 1,450,454 | 35,243 | 4.87 | |||||||||||||||||||||||||||||
Total loans | 1,837,001 | 61,636 | 6.77 | 1,510,390 | 36,344 | 4.85 | |||||||||||||||||||||||||||||
Total interest-earning assets | 2,033,258 | 64,938 | 6.44 | % | 1,708,465 | 38,149 | 4.50 | % | |||||||||||||||||||||||||||
Noninterest earning assets | 94,566 | 71,634 | |||||||||||||||||||||||||||||||||
Total assets | $ | 2,127,824 | $ | 1,780,099 | |||||||||||||||||||||||||||||||
Liabilities and stockholders' equity: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 217,768 | $ | 3,695 | 3.42 | % | $ | 253,771 | $ | 385 | 0.31 | % | |||||||||||||||||||||||
Money market and savings deposits | 650,371 | 9,848 | 3.05 | 694,539 | 1,928 | 0.56 | |||||||||||||||||||||||||||||
Time deposits | 618,137 | 11,927 | 3.89 | 298,783 | 794 | 0.54 | |||||||||||||||||||||||||||||
Total deposits | 1,486,276 | 25,470 | 3.46 | 1,247,093 | 3,107 | 0.50 | |||||||||||||||||||||||||||||
Borrowings | 131,790 | 3,365 | 5.15 | 16,136 | 126 | 1.57 | |||||||||||||||||||||||||||||
Subordinated debentures | 40,333 | 1,173 | 5.86 | 40,533 | 1,183 | 5.84 | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,658,399 | 30,008 | 3.65 | 1,303,762 | 4,416 | 0.68 | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | 281,275 | 284,455 | |||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 34,451 | 33,530 | |||||||||||||||||||||||||||||||||
Total liabilities | 1,974,125 | 1,621,747 | |||||||||||||||||||||||||||||||||
Total stockholders' equity | 153,699 | 158,352 | |||||||||||||||||||||||||||||||||
Total stockholders' equity and liabilities | $ | 2,127,824 | $ | 1,780,099 | |||||||||||||||||||||||||||||||
Net interest income and spread (1) | $ | 34,930 | 2.79 | $ | 33,733 | 3.82 | |||||||||||||||||||||||||||||
Net interest margin (1) | 3.46 | % | 3.98 | % |
2023 Compared to 2022 | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Rate | Volume | Total | Rate | Volume | Total | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||||||||
Due from banks | $ | 238 | $ | (12) | $ | 226 | $ | 450 | $ | (22) | $ | 428 | |||||||||||||||||||||||
Federal funds sold | 5 | (5) | — | 9 | (7) | 2 | |||||||||||||||||||||||||||||
Investment securities - taxable (1) | 412 | 55 | 467 | 899 | 101 | 1,000 | |||||||||||||||||||||||||||||
Investment securities - tax exempt (1) | 43 | (33) | 10 | 105 | (38) | 67 | |||||||||||||||||||||||||||||
Loans held for sale | 178 | (336) | (158) | 453 | (930) | (477) | |||||||||||||||||||||||||||||
Loans held for investment (1) | 8,041 | 5,211 | 13,252 | 15,546 | 10,223 | 25,769 | |||||||||||||||||||||||||||||
Total loans | 8,219 | 4,875 | 13,094 | 15,999 | 9,293 | 25,292 | |||||||||||||||||||||||||||||
Total interest income | $ | 8,917 | $ | 4,880 | $ | 13,797 | $ | 17,462 | $ | 9,327 | $ | 26,789 | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,633 | $ | (41) | $ | 1,592 | $ | 3,372 | $ | (62) | $ | 3,310 | |||||||||||||||||||||||
Money market and savings deposits | 4,372 | (77) | 4,295 | 8,050 | (130) | 7,920 | |||||||||||||||||||||||||||||
Time deposits | 5,458 | 860 | 6,318 | 9,510 | 1,623 | 11,133 | |||||||||||||||||||||||||||||
Total deposits | 11,463 | 742 | 12,205 | 20,932 | 1,431 | 22,363 | |||||||||||||||||||||||||||||
Borrowings | 348 | 1,704 | 2,052 | 779 | 2,460 | 3,239 | |||||||||||||||||||||||||||||
Subordinated debentures | (2) | (3) | (5) | (4) | (6) | (10) | |||||||||||||||||||||||||||||
Total interest expense | $ | 11,809 | $ | 2,443 | $ | 14,252 | $ | 21,707 | $ | 3,885 | $ | 25,592 | |||||||||||||||||||||||
Interest differential | $ | (2,892) | $ | 2,437 | $ | (455) | $ | (4,245) | $ | 5,442 | $ | 1,197 |
(dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Non-performing assets: | |||||||||||
Nonaccrual loans: | |||||||||||
Real estate loans: | |||||||||||
Commercial mortgage | $ | — | $ | 140 | |||||||
Home equity lines and loans | 931 | 1,097 | |||||||||
Residential mortgage | 2,272 | 2,085 | |||||||||
Land development | 1,206 | — | |||||||||
Total real estate loans | 4,409 | 3,322 | |||||||||
Commercial and industrial | 15,663 | 12,547 | |||||||||
Small business loans | 6,157 | 4,465 | |||||||||
Leases | 1,135 | 902 | |||||||||
Total nonaccrual loans | 27,364 | 21,236 | |||||||||
Other real estate owned | 1,703 | 1,703 | |||||||||
Total non-performing assets | $ | 29,067 | $ | 22,939 | |||||||
Asset quality ratios: | |||||||||||
Non-performing assets to total assets | 1.32 | % | 1.11 | % | |||||||
Non-performing loans to: | |||||||||||
Total loans and leases | 1.44 | % | 1.20 | % | |||||||
Total loans held-for-investment | 1.47 | % | 1.22 | % | |||||||
Total loans held-for-investment (excluding loans at fair value and PPP loans) (1) | 1.48 | % | 1.23 | % | |||||||
Allowance for credit losses to (2): | |||||||||||
Total loans and leases | 1.07 | % | 1.07 | % | |||||||
Total loans held-for-investment | 1.09 | % | 1.08 | % | |||||||
Total loans held-for-investment (excluding loans at fair value and PPP loans) (1) | 1.10 | % | 1.09 | % | |||||||
Non-performing loans | 73.97 | % | 88.66 | % | |||||||
Total loans and leases | $ | 1,900,261 | $ | 1,765,925 | |||||||
Total loans and leases held-for-investment | $ | 1,859,839 | $ | 1,743,682 | |||||||
Total loans and leases held-for-investment (excluding loans at fair value and PPP loans) | $ | 1,845,249 | $ | 1,724,601 | |||||||
Allowance for credit losses (2) | $ | 20,242 | $ | 18,828 |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, 2023 | June 30, 2022 | $ Change | % Change | |||||||||||||||||||
Mortgage banking income | $ | 5,050 | $ | 6,942 | $ | (1,892) | (27.3) | % | |||||||||||||||
Wealth management income | 1,235 | 1,254 | (19) | (1.5) | % | ||||||||||||||||||
SBA loan income | 1,767 | 437 | 1,330 | 304.3 | % | ||||||||||||||||||
Earnings on investment in life insurance | 193 | 137 | 56 | 40.9 | % | ||||||||||||||||||
Net change in the fair value of derivative instruments | 183 | (674) | 857 | (127.2) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-sale | (199) | 268 | (467) | (174.3) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-investment | (219) | (835) | 616 | (73.8) | % | ||||||||||||||||||
Net (loss) gain on hedging activity | (1) | 1,715 | (1,716) | (100.1) | % | ||||||||||||||||||
Net loss on sale of investment securities available-for-sale | (54) | — | (54) | (100.0) | % | ||||||||||||||||||
Service charges | 37 | 31 | 6 | 19.4 | % | ||||||||||||||||||
Other | 1,132 | 1,128 | 4 | 0.4 | % | ||||||||||||||||||
Total non-interest income | $ | 9,124 | $ | 10,403 | $ | (1,279) | (12.3) | % |
Six Months Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, 2023 | June 30, 2022 | $ Change | % Change | |||||||||||||||||||
Mortgage banking income | $ | 8,322 | $ | 14,038 | $ | (5,716) | (40.7) | % | |||||||||||||||
Wealth management income | 2,431 | 2,558 | (127) | (5.0) | % | ||||||||||||||||||
SBA loan income | 2,480 | 2,957 | (477) | (16.1) | % | ||||||||||||||||||
Earnings on investment in life insurance | 385 | 275 | 110 | 40.0 | % | ||||||||||||||||||
Net change in the fair value of derivative instruments | 114 | (840) | 954 | (113.6) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-sale | (200) | (856) | 656 | (76.6) | % | ||||||||||||||||||
Net change in the fair value of loans held-for-investment | (102) | (1,613) | 1,511 | (93.7) | % | ||||||||||||||||||
Net (loss) gain on hedging activity | (1) | 4,542 | (4,543) | (100.0) | % | ||||||||||||||||||
Net loss on sale of investment securities available-for-sale | (54) | — | (54) | (100.0) | % | ||||||||||||||||||
Service charges | 72 | 58 | 14 | 24.1 | % | ||||||||||||||||||
Other | 2,315 | 2,386 | (71) | (3.0) | % | ||||||||||||||||||
Total non-interest income | $ | 15,762 | $ | 23,505 | $ | (7,743) | (32.9) | % |
Quarter Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, 2023 | June 30, 2022 | $ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 12,152 | $ | 12,926 | $ | (774) | (6.0) | % | |||||||||||||||
Occupancy and equipment | 1,140 | 1,176 | (36) | (3.1) | % | ||||||||||||||||||
Professional fees | 1,004 | 913 | 91 | 10.0 | % | ||||||||||||||||||
Advertising and promotion | 1,091 | 1,189 | (98) | (8.2) | % | ||||||||||||||||||
Data processing and software | 1,681 | 1,308 | 373 | 28.5 | % | ||||||||||||||||||
Other | 2,547 | 2,194 | 353 | 16.1 | % | ||||||||||||||||||
Total non-interest expense | $ | 19,615 | $ | 19,706 | $ | (91) | (0.5) | % |
Six Months Ended | |||||||||||||||||||||||
(Dollars in thousands) | June 30, 2023 | June 30, 2022 | $ Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 23,213 | $ | 28,224 | $ | (5,011) | (17.8) | % | |||||||||||||||
Occupancy and equipment | 2,384 | 2,428 | (44) | (1.8) | % | ||||||||||||||||||
Professional fees | 1,827 | 1,761 | 66 | 3.7 | % | ||||||||||||||||||
Advertising and promotion | 1,952 | 2,175 | (223) | (10.3) | % | ||||||||||||||||||
Data processing and software | 3,113 | 2,497 | 616 | 24.7 | % | ||||||||||||||||||
Other | 4,915 | 4,054 | 861 | 21.2 | % | ||||||||||||||||||
Total non-interest expense | $ | 37,404 | $ | 41,139 | $ | (3,735) | (9.1) | % |
(Dollars in thousands) | June 30, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Mortgage loans held for sale | $ | 40,422 | $ | 22,243 | $ | 18,179 | 81.7 | % | |||||||||||||||
Real estate loans: | |||||||||||||||||||||||
Commercial mortgage | 648,235 | 565,400 | 82,835 | 14.7 | |||||||||||||||||||
Home equity lines and loans | 67,226 | 59,399 | 7,827 | 13.2 | |||||||||||||||||||
Residential mortgage | 247,848 | 221,837 | 26,011 | 11.7 | |||||||||||||||||||
Construction | 286,082 | 271,955 | 14,127 | 5.2 | |||||||||||||||||||
Total real estate loans | 1,249,391 | 1,118,591 | 130,800 | 11.7 | |||||||||||||||||||
Commercial and industrial | 310,280 | 341,378 | (31,098) | (9.1) | |||||||||||||||||||
Small business loans | 147,937 | 136,155 | 11,782 | 8.7 | |||||||||||||||||||
Consumer | 440 | 488 | (48) | (9.8) | |||||||||||||||||||
Leases, net | 150,029 | 138,986 | 11,043 | 7.9 | |||||||||||||||||||
Total portfolio loans and leases | $ | 1,858,077 | $ | 1,735,598 | $ | 122,479 | 7.1 | ||||||||||||||||
Total loans and leases | $ | 1,898,499 | $ | 1,757,841 | $ | 140,658 | 8.0 | % |
(Dollars in thousands) | June 30, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
Noninterest-bearing deposits | $ | 269,174 | $ | 301,727 | $ | (32,553) | (10.8) | % | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Interest-bearing demand deposits | 155,907 | 219,838 | (63,931) | (29.1) | % | ||||||||||||||||||
Money market and savings deposits | 710,546 | 697,564 | 12,982 | 1.9 | % | ||||||||||||||||||
Time deposits | 646,978 | 493,350 | 153,628 | 31.1 | % | ||||||||||||||||||
Total interest-bearing deposits | $ | 1,513,431 | $ | 1,410,752 | $ | 102,679 | 7.3 | % | |||||||||||||||
Total deposits | $ | 1,782,605 | $ | 1,712,479 | $ | 70,126 | 4.1 | % |
Corporation | Bank | Well-capitalized minimum | |||||||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||
Tier 1 leverage ratio | 7.46 | % | 8.13 | % | 9.22 | % | 9.95 | % | 5.00 | % | |||||||||||||||||||
Common tier 1 risk-based capital ratio | 8.38 | % | 8.77 | % | 10.35 | % | 10.73 | % | 6.50 | % | |||||||||||||||||||
Tier 1 risk-based capital ratio | 8.38 | % | 8.77 | % | 10.35 | % | 10.73 | % | 8.00 | % | |||||||||||||||||||
Total risk-based capital ratio | 11.49 | % | 12.05 | % | 11.43 | % | 11.87 | % | 10.00 | % |
(dollars in thousands) | June 30, 2023 | December 31, 2022 | |||||||||
Total stockholders' equity (GAAP) | $ | 153,962 | $ | 153,280 | |||||||
Less: Goodwill and intangible assets | 3,972 | 4,074 | |||||||||
Tangible common equity (non-GAAP) | 149,990 | 149,206 | |||||||||
Total assets (GAAP) | 2,206,877 | 2,062,228 | |||||||||
Less: Goodwill and intangible assets | 3,972 | 4,074 | |||||||||
Tangible assets (non-GAAP) | $ | 2,202,905 | $ | 2,058,154 | |||||||
Stockholders' equity to total assets (GAAP) | 6.98 | % | 7.43 | % | |||||||
Tangible common equity to tangible assets (non-GAAP) | 6.81 | % | 7.25 | % | |||||||
Shares outstanding | 11,178 | 11,466 | |||||||||
Book value per share (GAAP) | $ | 13.77 | $ | 13.37 | |||||||
Tangible book value per share (non-GAAP) | $ | 13.42 | $ | 13.01 |
June 30, 2023 | December 31, 2022 | ||||||||||
Allowance for credit losses | $ | 20,242 | $ | 18,828 | |||||||
Loans, net of fees and costs (GAAP) | 1,859,839 | 1,743,682 | |||||||||
Less: PPP loans | (187) | (4,579) | |||||||||
Less: Loans fair valued | (14,403) | (14,502) | |||||||||
Loans, net of fees and costs, excluding PPP and fair valued loans (non-GAAP) | $ | 1,845,249 | $ | 1,724,601 | |||||||
Allowance for credit losses, net of fees and costs (GAAP) | 1.09 | % | 1.08 | % | |||||||
Allowance for credit losses, net of fees and costs, excluding PPP and fair valued loans (non-GAAP) | 1.10 | % | 1.09 | % |
June 30, | |||||||||||
Changes in Market Interest Rates | 2023 | 2022 | |||||||||
+300 basis points over next 12 months | (1.92) | % | 1.42 | % | |||||||
+200 basis points over next 12 months | (1.14) | % | 1.18 | % | |||||||
+100 basis points over next 12 months | (0.44) | % | 0.69 | % | |||||||
No Change | |||||||||||
-100 basis points over next 12 months | (1.14) | % | (1.67) | % | |||||||
-200 basis points over next 12 months | (2.29) | % | (3.77) | % |
Changes in Market Interest Rates | June 30, 2023 | June 30, 2022 | |||||||||
+300 basis points | 1 | % | 11 | % | |||||||
+200 basis points | 3 | % | 9 | % | |||||||
+100 basis points | 3 | % | 7 | % | |||||||
No Change | |||||||||||
-100 basis points | (7) | % | (13) | % | |||||||
-200 basis points | (20) | % | (35) | % |
Issuer Purchases of Equity Securities | |||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value that May Yet Be Purchased Under the Plan or Programs (1)($000's) | |||||||||||||||||||
(Dollars in thousands, except shares and per share amounts) | |||||||||||||||||||||||
April 1 to April 30, 2023 | 127,849 | $ | 12.21 | 127,849 | |||||||||||||||||||
Total | 127,849 | $ | 12.21 | $— |
Exhibit Number | Description | |||||||
2.1 | ||||||||
3.1 | ||||||||
3.2 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32 | ||||||||
101.INS | XBRL Instance Document – The instance document does not appear in the interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
Exhibit 104 | Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
Date: | August 9, 2023 | Meridian Corporation | |||||||||
By: | /s/ Christopher J. Annas | ||||||||||
Christopher J. Annas President and Chief Executive Officer (Principal Executive Officer) | |||||||||||
By: | /s/ Denise Lindsay | ||||||||||
Denise Lindsay Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
Date: August 9, 2023 | /s/ Christopher J. Annas | ||||
Christopher J. Annas | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
Date: August 9, 2023 | /s/ Denise Lindsay | ||||
Denise Lindsay | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
/s/ Christopher J. Annas | |||||
Christopher J. Annas | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
/s/ Denise Lindsay | |||||
Denise Lindsay | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) | |||||
Date: August 9, 2023 |
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Securities available-for-sale, amortized cost | $ 139,854 | $ 148,976 |
Securities, held-to-maturity, fair value | $ 32,858 | $ 33,085 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, issued (in shares) | 13,180,934 | 13,156,308 |
Common stock, outstanding (in shares) | 11,177,751 | 11,465,572 |
Treasury stock held (in shares) | 2,003,183 | 1,690,736 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Tax expense (benefit) on unrealized gains arising during the period | $ (371) | $ (1,025) | $ 83 | $ (2,651) |
Tax expense (benefit) on reclassification adjustment for net gains on sales realized in net income | 11 | 0 | 11 | (3) |
Tax expense (benefit) on reclassification adjustment for transfer to held-to-maturity | (6) | (7) | (12) | 301 |
Tax expense (benefit) on unrealized investment gains (losses) | (353) | (1,018) | 107 | (2,955) |
Tax expense (benefit) on unrealized gains (losses) on interest rate swaps used in cash flow hedges | $ (97) | $ 0 | $ (97) | $ 0 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.125 | $ 0.10 | $ 0.25 | $ 0.70 |
Treasury stock (in shares) | 127,849 | 194,770 | 312,447 | 194,770 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Statement of Cash Flows [Abstract] | ||
Net income | $ 8,666 | $ 11,473 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Loss on sale of investment securities | 54 | 0 |
Net amortization of investment premiums and discounts and change in fair value of equity securities | 498 | 239 |
Depreciation and amortization (accretion), net | 145 | 749 |
Provision for credit losses | 2,104 | 1,217 |
Amortization of issuance costs on subordinated debt | 56 | 59 |
Stock based compensation | 578 | 354 |
Net change in fair value of derivative instruments | (604) | 840 |
Net change in fair value of loans held for sale | 200 | 856 |
Net change in fair value of loans held for investment | 102 | 1,613 |
Amortization and net impairment of servicing rights | 879 | 1,327 |
SBA loan income | (2,480) | (2,957) |
Proceeds from sale of loans | 305,304 | 656,565 |
Loans originated for sale | (316,437) | (620,013) |
Mortgage banking income | (8,322) | (14,038) |
Increase in accrued interest receivable | (288) | (99) |
(Increase) decrease increase in other assets | (2,864) | 1,571 |
Earnings from investment in bank owned life insurance | (385) | (275) |
Increase in deferred income tax | (100) | (153) |
Increase in accrued interest payable | 3,223 | 115 |
Decrease in other liabilities | (1,874) | (3,764) |
Net cash (used in) provided by operating activities | (11,545) | 35,679 |
Activity in available-for-sale securities: | ||
Maturities, repayments and calls | 4,590 | 6,327 |
Purchases | (11,571) | (15,707) |
Activity in held-to-maturity securities: | ||
Maturities, repayments and calls | 865 | 362 |
Proceeds from sale of investment securities | 13,514 | 0 |
Purchases | 0 | (4,500) |
(Decrease) increase in restricted stock | (2,226) | 398 |
Net increase in loans | (120,124) | (136,069) |
Purchases of premises and equipment | (601) | (1,028) |
Net cash used in investing activities | (115,553) | (150,217) |
Cash flows from financing activities: | ||
Net increase in deposits | 70,126 | 121,601 |
Increase (decrease) in short-term borrowings | 69,122 | 17,792 |
Increase in long-term debt | 3,432 | 0 |
Repayment of subordinated debt | (54) | 0 |
Net purchase of treasury stock | (4,259) | (3,036) |
Dividends paid | (2,819) | (8,574) |
Share based awards and exercises | 25 | 368 |
Net cash provided by financing activities | 135,573 | 128,151 |
Net change in cash and cash equivalents | 8,475 | 13,613 |
Cash and cash equivalents at beginning of period | 38,391 | 23,480 |
Cash and cash equivalents at end of period | 46,866 | 37,093 |
Supplemental disclosure of cash flow information: | ||
Interest | 26,785 | 4,301 |
Income taxes | 308 | 3,265 |
Supplemental disclosure of cash flow information: | ||
Transfers from loans held for sale to loans held for investment | 351 | 2,848 |
Net loans sold, not settled | 9,205 | (962) |
Transfer of securities from AFS to HTM | $ 0 | $ 23,652 |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Amounts subject to significant estimates are items such as the allowance for credit losses, lending related commitments and the related unfunded commitment reserve, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill, intangible assets, and servicing assets. These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the SEC (including our Annual Report on Form 10-K for the year ended December 31, 2022), subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any. Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or for any other period. Stock Split On February 28, 2023, the Corporation approved and declared a two-for-one stock split in the form of a stock dividend, paid March 20, 2023, to shareholders of record as of March 14, 2023. Under the terms of the stock split, the Corporation’s shareholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Corporation. The par value of the Corporation's stock was not affected by the split and remained at $1.00 per share. All share and per share amounts reported in the consolidated financial statements have been adjusted to reflect the two-for-one stock split. Loans Loans held for investment are recorded at amortized cost, net of ACL. Amortized cost is the amount at which a financial asset is originated or acquired, adjusted for the amortization of premium and discount, net deferred fees or costs, collection of cash, and write-offs. Interest income on loans is recognized using the level yield method. Loan origination fees, commitment fees and direct loan origination costs are deferred and recognized over the life of the related loans using a level yield method over the period to maturity. Allowance for Credit Losses - Loans and Leases On January 1, 2023, the Corporation adopted ASU 2016-13, Financial Instruments-Credit Losses ("Topic 326"), which replaced the incurred loss impairment model with an expected loss methodology that is referred to as the CECL methodology. The Corporation now establishes an ACL in accordance with Topic 326. The ACL includes quantitative and qualitative factors that comprise management's current estimate of expected credit losses, including portfolio mix and segmentation, modeling methodology, historical loss experience, relevant available information from internal and external sources relating to reasonable and supportable forecasts about future economic conditions, prepayment speeds, and qualitative adjustment factors. The Corporation's portfolio segments, established based on similar risk characteristics and loss behaviors, are: • Commercial mortgage, commercial and industrial, construction, SBA loans, and commercial small business leases (commercial loans), and • Residential, equity secured lines and loans, and installment loans (retail loans). Expected credit losses are estimated over the contractual term, adjusted for expected prepayments and recoveries. The contractual term excludes any extensions, renewals and modifications unless the Corporation has reasonable expectations at the reporting date that it will result in a modification, or they are not unconditionally cancellable. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance includes two primary components: (i) an allowance established on loans which share similar risk characteristics collectively evaluated for credit losses (collective basis) and (ii) an allowance established on loans which do not share similar risk characteristics with any loan segment and are individually evaluated for credit losses (individual basis). Loans that share similar risk characteristics are collectively reviewed for credit loss and are evaluated based on historical loss experience, adjusted for current economic conditions and future economic forecasts. Estimated losses are determined differently for commercial and consumer loans, and each portfolio segment is further segmented by internally assessed risk ratings. Management uses a third-party economic forecast to modify the calculated historical loss rates of the portfolio segments. The Corporation's economic forecast extends out 4 quarters (the forecast period) and reverts to the historical loss rates on a straight-line basis over 1 quarter (the reversion period) as we believe this to be reasonable and supportable in the current environment. The economic forecast and reversion periods will be evaluated periodically by management and updated as appropriate. The historical loss rates for commercial loans are estimated by determining the PD and expected LGD. The PD is calculated based on the historical rate of migration to an event of credit loss during the look-back period. The historical loss rates for retail loans is calculated based solely on average net loss rates over the same look-back period. The Corporation's current look-back period is 32 quarters which helps to ensure that historical loss rates are adequately considering losses over a full economic cycle. Loans that do not share similar risk characteristics with any loan segments are evaluated on an individual basis. These loans, which may include borrowers experiencing financial difficulties, are not included in the collective basis evaluation. When it is probable that collection of all principal and interest due according to their contractual terms is not likely, which is assessed based on the credit characteristics of the loan and/or payment status, these loans are individually reviewed and measured for potential credit loss. The amount of the potential credit loss is measured using one of three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the fair value of collateral, if the loan is collateral dependent; or (iii) the loan’s observable market price. If the measured fair value of the loan is less than the amortized cost basis of the loan, an allowance for credit loss is recorded. For collateral dependent loans, the expected credit losses at the individual asset level is the difference between the collateral's fair value (less cost to sell) and the amortized cost. Qualitative adjustment factors consider various internal and external conditions which are allocated among loan segments and take into consideration: • Current underwriting policies, staff and portfolio concentrations, • Risk rating accuracy, credit and administration, • Internal risk emergence (including internal trends of delinquency, portfolio growth, and collateral value), and • , Competitive environment, as it could impact loan structure and underwriting. These factors are based on their relative standing compared to the period in which historical losses are used in quantitative reserve estimates and current directional trends, and reasonable and supportable forecasts. Qualitative factors in the model can add to or subtract from quantitative reserves. Loan officers and risk managers meet at least quarterly to discuss and review the conditions and risks associated with individual problem loans. In addition, various regulatory agencies periodically review our loan ratings and allowance for credit losses and the Bank’s internal loan review department performs loan reviews. Accrued interest receivable on loans is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Balance Sheets. For additional detail regarding the allowance for credit losses and the provision for credit losses, see Note 5. Past Due and Nonaccrual Loans Past due loans and leases are defined as loans contractually past due 30 - 89 days as to principal or interest payments but which remain in accrual status, or loans delinquent 90 days or more but are considered well secured and in the process of collection. Nonaccruing loans and leases are those on which the accrual of interest has ceased. Loans are placed on nonaccrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and the loan is not well secured and in the process of collection. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed and charged against interest income. In addition, the amortization of net deferred loan fees is suspended when a loan is placed on nonaccrual status. Subsequent cash receipts are applied either to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to accrual status when it is determined that the borrower has the ability to make all principal and interest payments in accordance with the terms of the loan (i.e. a consistent repayment record, generally six consecutive payments, has been demonstrated). Unless loans are well-secured and collection is imminent, for loans greater than 90 days past due their respective reserves are generally charged off once the loss has been confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Securities Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Securities classified as available-for-sale are those securities that the Corporation intends to hold for an indefinite period of time but not necessarily to maturity. Securities available-for-sale are carried at fair value. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Corporation’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains and losses are reported as increases or decreases in other comprehensive income. Gains or losses on disposition are based on the net proceeds and cost of the securities sold, adjusted for the amortization of premiums and accretion of discounts, using the specific identification method. Securities classified as held to maturity are those debt securities the Corporation has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed on a level yield basis. Investments in equity securities are recorded in accordance with ASC 321-10, Investments - Equity Securities. Equity securities are carried at fair value, with changes in fair value reported in net income. At June 30, 2023 and December 31, 2022, investments in equity securities consisted of an investment in mutual funds with a fair value of $2.1 million, and $2.1 million, respectively. The Corporation’s accounting policy specifies that (a) if the Corporation does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired, unless there is a credit loss. When the Corporation does not intend to sell the security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The Corporation did not recognize any other-than-temporary impairment charges during the three and six months ended June 30, 2023 and 2022. Allowance for Credit Losses - Held-to-Maturity Debt Securities We follow Accounting Standards Codification (ASC) 326-20, Financial Instruments - Credit Loss - Measured at Amortized Cost, to measure expected credit losses on held-to-maturity debt securities on a collective basis by security investment grade. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation classifies the held-to-maturity debt securities into the following major security types: state and municipal securities. These securities are highly rated with a history of no credit losses, and are assigned ratings based on the most recent data from ratings agencies depending on the availability of data for the security. Credit ratings of held-to-maturity debt securities, which are a significant input in calculating the expected credit loss, are reviewed on a quarterly basis. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses and is included in Accrued interest receivable on the Consolidated Balance Sheets. Allowance for Credit Losses - Available-for-Sale Debt Securities We follow ASC 326-30, Financial Instruments - Credit Loss - Available-for-Sale Debt Securities, which provides guidance related to the recognition of and expanded disclosure requirements for expected credit losses on available-for-sale debt securities. For available-for-sale debt securities in an unrealized loss position, the Corporation first evaluates whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is reduced to fair value and recognized as a reduction to Noninterest income in the Consolidated Statements of Income. For debt securities available-for-sale which the Corporation does not intend to sell, or it is not likely the security would be required to be sold before recovery, we evaluate whether a decline in fair value has resulted from credit losses or other adverse factors, such as a change in the security's credit rating. In assessing whether a credit loss exists, the Corporation compares the present value of cash flows expected to be collected from the security with 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, a credit loss exists and an allowance is recorded, limited to the fair value of the security. Management performs this analysis on a quarterly basis to review the conditions and risks associated with the individual securities. Credit losses on an impaired security shall continue to be measured using the present value of expected future cash flows. Any impairment not recorded through an allowance for credit loss is included in other comprehensive income (loss), net of the tax effect. We are required to use our judgment in determining impairment in certain circumstances. For additional detail regarding debt securities, see Note 3. Unfunded Lending Commitments For unfunded lending commitments, the Corporation estimates expected credit losses over the contractual period in which the Corporation is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. The estimate includes consideration of the probability of default and utilization rate at default to calculate expected credit losses on commitments expected to be funded over its estimated life of one year, based on historical losses, and qualitative adjustment factors. The allowance for credit losses for off-balance sheet exposures is included in Other liabilities on the Consolidated Balance Sheets and the provision for credit losses for off-balance sheet exposure is included in the provision for credit losses on the Consolidated Statements of Income for the periods ended June 30, 2023, and in other non-interest expense for periods prior to the adoption of ASU-2016-13 on January 1, 2023. The allowance for credit losses for off-balance sheet exposures was $1.4 million and $173 thousand as of June 30, 2023 and December 31, 2022, respectively. Pronouncements Adopted in 2023 FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments” The Corporation adopted ASU 2016-13, as amended, on January 1, 2023, which replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans, net of fees and costs, securities HTM, unfunded lending commitments (including loan commitments on loans held for investment, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842. In addition, ASC 326 made changes to the accounting for securities AFS which now requires credit losses to be presented as an allowance rather than as an other-than-temporary impairment on securities AFS management does not intend to sell or believes that it is more likely than not they will be required to sell. We applied the modified retrospective method for all financial assets measured at amortized cost and securities AFS. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Corporation recorded a one-time decrease to retained earnings of $2.2 million on January 1, 2023 for the cumulative effect of adopting ASC 326, net of tax. The transition adjustment includes $1.2 million and $974 thousand post-tax impacts for loans, net of fees and costs and unfunded loan commitments, respectively, due to higher expected credit losses compared to the incurred loss methodology primarily driven by longer duration commercial and consumer real estate loans. FASB ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” Issued in April 2019, ASU 2019-04 clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments (addressed by ASUs 2016-13, 2017-12, and 2016-01, respectively). The amendments to estimating expected credit losses (ASU 2016-13), in particular, how a company considers recoveries and extension options when estimating expected credit losses, are the most relevant to the Corporation. The ASU clarifies that (1) the estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) that contractual extension or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. The Corporation adopted ASU 2019-04 at the same time ASU 2016-13 was adopted. FASB ASU 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by year of origination for financing receivables and net investment in leases in the existing vintage disclosures. The Corporation adopted ASU 2022-02 at the same time ASU 2016-13 was adopted, as of January 1, 2023. The adoption of this ASU resulted in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's financial statements. See Note 5. Pronouncements Not Yet Effective as of June 30, 2023: FASB ASU 2020-04 (Topic 848), “Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Issued in March 2020, ASU 2020-04 contains optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The Corporation does not have a significant concentration of loans, derivative contracts, borrowings or other financial instruments with attributes that are either directly or indirectly dependent on LIBOR. The Corporation expects to adopt the LIBOR transition relief allowed under this standard. FASB ASU 2020-06, “Debt With Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” This ASU clarifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments in this update reduce the number of accounting models for convertible debt instruments and convertible preferred stock by removing the cash conversion model and the beneficial conversion feature models. For public business entities that meet the definition of an SEC filer (excluding smaller reporting entities), the amendments are effective for fiscal years beginning after Dec. 15, 2021, and interim periods within. For all other entities, the amendments are effective for fiscal years beginning after Dec. 15, 2023, and interim periods within. Early adoption is permitted, but no earlier than for fiscal years beginning after Dec. 15, 2020. The Corporation does not expect this to have a material impact on our consolidated financial statements. FASB ASU 2023-02, "Investments Equity Method and Joint Ventures (Topic 323) Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method" In March 2023, the FASB issued ASU 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method to allow reporting entities to consistently account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits. If certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits, instead of only LIHTC structures. This amendment also eliminates certain LIHTC specific guidance aligning the accounting with other equity investments in tax credit structures. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the accounting and disclosure requirements of ASU 2023-02 and do not expect them to have a material effect on our consolidated financial statements.
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Earnings per Common Share | Earnings per Common Share Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period reduced by unearned ESOP Plan shares and treasury shares. Diluted earnings per common share takes into account the potential dilution computed pursuant to the treasury stock method that could occur if stock options were exercised and converted into common stock and if restricted stock awards were vested, and SERP plan liabilities were satisfied with common shares. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be anti-dilutive.
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Securities The following tables presents the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated:
Although the Corporation’s investment portfolio overall is in a net unrealized loss position at June 30, 2023, the temporary impairment in the above noted securities is primarily the result of changes in market interest rates subsequent to purchase and it is more likely than not that the Corporation will not be required to sell these securities prior to recovery to satisfy liquidity needs, and therefore, no securities are deemed to be other-than-temporarily impaired. ACL on Securities AFS and HTM We use credit ratings quarterly and the most recent financial information of securities' issuers annually to help evaluate the credit quality of our securities AFS and HTM portfolios on a quarterly basis. The securities portfolio consists primarily of U.S. government treasuries and U.S. government agency asset backed securities which have no probability of default. The remaining portfolio consists of highly rated municipal bonds, non-agency CMO, and corporate bonds that have a low probability of default. For the three and six months ended June 30, 2023, we had no significant ACL or provision expense and no charge-offs or recoveries on AFS or HTM securities. The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated:
The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties.
The following table presents the gross loss on sale of investment securities available for sale on the dates indicated:
Pledged Securities As of June 30, 2023 and December 31, 2022, securities having a fair value of $53.5 million and $78.4 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.
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Loans and Other Finance Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Other Finance Receivables | Loans and Other Finance Receivables The following table presents loans and other finance receivables detailed by category at the dates indicated:
Fair Value Option for Residential Mortgage Real Estate Loans Residential mortgage real estate loans that were originated by the Corporation and intended for sale in the secondary market to permanent investors, but were either repurchased or unsalable due to defect, and that the Corporation has the ability and intent to hold for the foreseeable future or until maturity or payoff are carried at fair value pursuant to the Corporation's election of the fair value option for these loans. The remaining loans, net of fees and costs are stated at their outstanding unpaid principal balances, net of deferred fees or costs, since the original intent for these loans was to hold them until payoff or maturity. Nonaccrual and Past Due Loans The following tables present an aging of the Corporation’s loans at the dates indicated:
(1) Includes $14,403 of loans at fair value of which $13,680 are current, $173 are 30-89 days past due and $550 are nonaccrual.
(1) Includes $14,502 of loans at fair value of which $13,760 are current, $184 are 30-89 days past due and $558 are nonaccrual. Foreclosed and Repossessed Assets At June 30, 2023, there were 4 consumer mortgage loans secured by residential real estate properties (included in loans, net of fees and costs on the Consolidated Balance Sheets) totaling $948 thousand for which formal foreclosure proceedings were in process. Risks and Uncertainties We have no particular credit concentration. Our commercial loans have been proactively managed in an effort to achieve a balanced portfolio with no unusual exposure to one industry. Additionally, most of our lending activity occurs within our primary market areas which are concentrated in southeastern Pennsylvania, Delaware, and Maryland as well as other contiguous markets and represents a geographic concentration. Additionally, our loan portfolio is concentrated in commercial loans. Commercial loans are generally viewed as having more inherent risk of default than residential real estate loans or other consumer loans. Also, the commercial loan balance per borrower is typically larger than that for residential real estate loans and consumer loans, implying higher potential losses on an individual loan basis. Past Due and Nonaccrual Status The following table presents the amortized costs basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing, net of fees and costs as of June 30, 2023. As of this date here were no loans 90 days or more past due and still accruing.
Collateral-dependent Loans The following table presents the amortized cost basis of non-accruing collateral-dependent loans by class or loans as of June 30, 2023 under the current expected credit loss model:
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Allowance for Credit Losses |
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Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Allowance for Credit Losses The ACL is maintained at a level considered adequate to provide for estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. Management’s periodic evaluation of the adequacy of the ACL is based on known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is subjective as it requires material estimates that may be susceptible to significant revisions as more information becomes available. Roll-Forward of ACL by Portfolio Segment The following tables provide the activity of our allowance for credit losses for the three and six months ended June 30, 2023 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2023):
The following tables provide the activity of the allowance for loan and lease losses for the three and six months ended June 30, 2022 under the incurred loss model:
Reconciliation of Provision for Credit Losses The following table provides a reconciliation of the provision for credit losses on the consolidated statements of income between the funded and unfunded components at the dates indicated:
Allowance Allocated by Portfolio Segment The following tables detail the allocation of the ACL and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases at the dates indicated:
(1) Excludes deferred fees and loans carried at fair value. The following table details the pre-CECL allocation of the allowance for loan and lease losses and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment at the dates indicated:
(1) Excludes deferred fees and loans carried at fair value. Credit Quality Indicators As part of the process of determining the ACL to the different segments of the loan and lease portfolio, Management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by Management. The results of these reviews are reflected in the risk grade assigned to each loan. These internally assigned grades are as follows: •Pass – Loans considered to be satisfactory with no indications of deterioration. •Special mention – Loans classified as special mention have a potential weakness that deserves Management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. •Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. •Doubtful – Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loan balances classified as doubtful have been reduced by partial charge-offs and are carried at their net realizable values. The following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses at the dates indicated:
The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at June 30, 2023. In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated:
Commercial and industrial loans classified as substandard totaled $32.9 million as of June 30, 2023, a decrease of $6.4 million, from $39.3 million as of December 31, 2022. The majority of commercial and industrial substandard loans is comprised of 14 different loan relationships with no specific industry concentration and an $11.0 million commercial loan relationship in the advertising industry that became a non-performing loan relationship late in 2021.
In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated:
(1) There were four nonperforming residential mortgage loans at June 30, 2023 and four nonperforming residential mortgage loans at December 31, 2022 with a combined outstanding principal balance of $550 thousand and $558 thousand, respectively, which were carried at fair value and not included in the table above. Individually Evaluated Loans The following table details the recorded investment and principal balance of individually evaluated loans by portfolio segment, their related Allowance and interest income recognized at the dates indicated.
The following table details the average recorded investment and interest income recognized on individually evaluated loans by portfolio segment.
Troubled Debt Restructuring As result of the adoption of guidance related to CECL effective as of January 1, 2023, the Corporation had no reportable balances related to TDRs as of and for the three and six months ended June 30, 2023. See Note 1 “Summary of Significant Accounting Policies” for additional information. The following table presents information about TDRs at the dates indicated:
There was 1 new modification on a commercial mortgage for $684 thousand for the year ended December 31, 2022. Total TDRs declined year-over-year, despite the new modification in 2022, as two TDRs from prior to 2021 totaling $563 thousand paid off in 2022. No modifications granted during the twelve months ended December 31, 2022 subsequently defaulted during the same time period. Modifications to Debtors Experiencing Financial Difficulty An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL on loans and leases, a change to the allowance for credit losses is generally not recorded upon modification. However, when principal forgiveness is provided, the amortized cost basis of the asset is written off against the ACL on loans and leases. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses. The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.
The following presents, by class of loans, information regarding the financial effect on accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended June 30, 2023.
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Short-Term Borrowings and Long -Term Debt |
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Short-Term Borrowings and Long-Term Debt | Short-Term Borrowings and Long-Term Debt The Corporation’s short-term borrowings generally consist of federal funds purchased and short-term borrowings extended under agreements with the FHLB or other correspondent banks. The Corporation has two unsecured Federal funds borrowing facilities with correspondent banks: one of $24 million and one of $15 million. Federal funds purchased generally represent one-day borrowings. The Corporation had $0 in Federal funds purchased at June 30, 2023 and December 31, 2022. The Corporation also has a facility with the Federal Reserve Bank discount window of $7.9 million. This facility is fully secured by investment securities. There were no borrowings under this at June 30, 2023 and December 31, 2022. Additionally, the Corporation has a facility with the Federal Reserve’s BTFP of $33 million. This facility was created by the Federal Reserve in March 2023 and is fully secured by United States Treasury Bonds. There were $33 million in borrowings under this facility at June 30, 2023. The following table presents short-term borrowings at the dates indicated:
The following table presents long-term borrowings at the dates indicated:
The FHLB has also issued $120.0 million of letters of credit to the Corporation for the benefit of the Corporation’s public deposit funds and loan customers. These letters of credit expire throughout the remainder of 2023. The Corporation has a maximum borrowing capacity with the FHLB of $620.6 million as of June 30, 2023 and $505.4 million as of December 31, 2022. All advances and letters of credit from the FHLB are secured by a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.
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Servicing Assets |
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Servicing Assets | Servicing Assets The Corporation sells certain residential mortgage loans and the guaranteed portion of certain SBA loans to third parties and retains servicing rights and receives servicing fees. All such transfers are accounted for as sales. When the Corporation sells a residential mortgage loan, it does not retain any portion of that loan and its continuing involvement in such transfers is limited to certain servicing responsibilities. While the Corporation may retain a portion of certain sold SBA loans, its continuing involvement in the portion of the loan that was sold is limited to certain servicing responsibilities. When the contractual servicing fees on loans sold with servicing retained are expected to be more than adequate compensation to a servicer for performing the servicing, a capitalized servicing asset is recognized. Residential Mortgage Loans The related MSR asset is amortized over the period of the estimated future net servicing life of the underlying assets. MSRs are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the MSR. The Corporation serviced $1.0 billion of residential mortgage loans as of June 30, 2023 and December 31, 2022. During the three and six months ended June 30, 2023, the Corporation recognized servicing fee income of $618 thousand and $1.3 million, respectively, compared to $653 thousand and $1.3 million, during the three and six months ended June 30, 2022, respectively. Changes in the MSR balance are summarized as follows:
Activity in the valuation allowance for MSRs was as follows:
The Corporation uses assumptions and estimates in determining the fair value of MSRs. These assumptions include prepayment speeds and discount rates. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At June 30, 2023, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 6.60% and a discount rate equal to 9.50%. At December 31, 2022, the key assumptions used to determine the fair value of the Corporation’s MSRs included a lifetime constant prepayment rate equal to 8.05% and a discount rate equal to 9.50%. Due in part to market volatility as interest rates increased, the prepayment speed assumption has decreased from December 31, 2022 to June 30, 2023. As interest rates have started to increase and the number of mortgage refinancings have started to decline, model inputs have been adjusted to align the MSRs fair value with market conditions. The sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table.
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a articular assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change. SBA Loans SBA loan servicing assets are amortized over the period of the estimated future net servicing life of the underlying assets. SBA loan servicing assets are evaluated quarterly for impairment based upon the fair value of the rights as compared to their amortized cost. Impairment is recognized on the income statement to the extent the fair value is less than the capitalized amount of the SBA loan servicing asset. The Corporation serviced $195.9 million and $166.1 million of SBA loans, as of June 30, 2023 and December 31, 2022, respectively. Changes in the SBA loan servicing asset balance are summarized as follows:
Activity in the valuation allowance for SBA loan servicing assets was as follows:
The Corporation uses assumptions and estimates in determining the fair value of SBA loan servicing rights. These assumptions include prepayment speeds, discount rates, and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. At June 30, 2023, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 12.98% and a discount rate equal to 15.60%. At December 31, 2022, the key assumptions used to determine the fair value of the Corporation’s SBA loan servicing rights included a lifetime constant prepayment rate equal to 12.73% and a discount rate equal to 18.96%. The sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table.
The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of an adverse variation in a particular assumption on the fair value of the SBA servicing rights is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another (for example, increases in market interest rates may result in lower prepayments), which may magnify or counteract the effect of the change.
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Fair Value Measurements and Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Disclosures | Fair Value Measurements and Disclosures The Corporation uses fair value measurements to record fair value adjustments to certain assets and liabilities. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Corporation’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation techniques or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Corporation groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis. Securities The fair value of securities available-for-sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Mortgage Loans Held for Sale The fair value of loans held for sale is based on secondary market prices. Mortgage Loans Held for Investment The fair value of mortgage loans held for investment is based on the price secondary markets are currently offering for similar loans using observable market data. Derivative Financial Instruments The fair values of forward commitments and interest rate swaps are based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The following table presents the fair value of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy at the dates indicated:
The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated:
(1) Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Refer to the following page for further qualitative discussion around individually evaluated loans. The following table details the valuation techniques for Level 3 individually evaluated loans.
Below is management’s estimate of the fair value of all financial instruments, whether carried at cost or fair value on the Corporation’s balance sheet. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair value of the Corporation’s financial instruments: Cash and Cash Equivalents The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. Loans Receivable The fair value of loans receivable is estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value below is reflective of an exit price. Servicing Assets The Corporation estimates the fair value of mortgage servicing rights and SBA loan servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. These servicing rights are classified within Level 3 in the fair value hierarchy based upon management’s assessment of the inputs. The Corporation reviews the servicing rights portfolios on a quarterly basis for impairment. Individually Evaluated Loans Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third‑party appraisals of the properties, or discounted cash flows based upon the expected proceeds. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Individually evaluated loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the Allowance policy. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit Liabilities The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings The carrying amounts of short-term borrowings approximate their fair values. Long-Term Debt Fair values of FHLB advances and the acquisition purchase note payable are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Subordinated Debt Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity. Off-Balance Sheet Financial Instruments Off-balance sheet instruments are primarily comprised of loan commitments, which are generally priced at market at the time of funding. Fees on commitments to extend credit and stand-by letters of credit are deemed to be immaterial and these instruments are expected to be settled at face value or expire unused. It is impractical to assign any fair value to these instruments and as a result they are not included in the table below. Fair values assigned to the notional value of interest rate lock commitments and forward sale contracts are based on market quotes. Derivative Financial Instruments The fair value of forward commitments and interest rate swaps is based on market pricing and therefore are considered Level 2. Derivatives classified as Level 3 consist of interest rate lock commitments related to mortgage loan commitments. The determination of fair value includes assumptions related to the likelihood that a commitment will ultimately result in a closed loan, which is a significant unobservable assumption. A significant increase or decrease in the external market price would result in a significantly higher or lower fair value measurement. The following table presents the estimated fair values of the Corporation’s financial instruments at the dates indicated:
The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the periods indicated.
The following table details the valuation techniques for Level 3 interest rate lock commitments.
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Objective of Using Derivatives The Corporation is exposed to certain risk arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally related to the Corporation’s loan portfolio. Interest Rate Swaps The Corporation uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation’s credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party. In June 2023, the Corporation entered into three interest rate swaps classified as cash flow hedges with notional amounts of $25 million each, to hedge the interest payments received on short term borrowings. Under the terms of the three swap agreements, the Corporation pays average fixed rates of 4.070%, 4.027% and 4.117%, and receives variable rates in return indexed to SOFR. The swaps mature between May, June, and December 2026. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and performs an assessment on a recurring basis and determined that the derivative currently is and is expected to be highly effective in offsetting changes in cash flows of the hedged item. At June 30, 2023, approximately $338 thousand, net of tax, is recorded in accumulated other comprehensive loss. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to June 30, 2023. At June 30, 2023, the combined notional amount of the interest rate swaps was $75 million and the fair value was an asset of $435 thousand. Mortgage Banking Derivatives In connection with its mortgage banking activities, the Corporation enters into commitments to originate certain fixed rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, the Corporation may enter into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans or interest rate locks at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Interest rate lock commitments and forward commitments are recorded within other assets/liabilities on the consolidated balance sheets, with changes in fair values during the period recorded within net change in the fair value of derivative instruments on the consolidated statements of income. Customer Derivatives – Interest Rate Swaps Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers to swap a fixed rate product for a variable rate product, or vice versa. The Corporation executes interest rate derivatives with commercial banking customers to facilitate their respective risk management strategies. Those interest rate derivatives are simultaneously hedged by offsetting derivatives that the Corporation executes with a third party, such that the Corporation minimizes its net interest rate risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The following table presents a summary of notional amounts and fair values of derivative financial instruments at the dates indicated:
Interest rate lock commitments are considered Level 3 in the fair value hierarchy, while the forward commitments and interest rate swaps are considered Level 2 in the fair value hierarchy. The following table presents a summary of the fair value gains and (losses) on derivative financial instruments:
Net realized losses on derivative hedging activities were $1 thousand for the three and six months ended June 30, 2023, and net realized gains on derivative hedging activities were $1.7 million and $4.5 million for the three and six months ended June 30, 2022, respectively, and are included in non-interest income in the consolidated statements of income.
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Segments | Segments ASC Topic 280 – Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Corporation’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Corporation has applied the aggregation criterion set forth in this codification to the results of its operations. Our Banking segment (“Bank”) consists of commercial and retail banking. The Banking segment generates interest income from its lending and investing activities and is dependent on the gathering of lower cost deposits from its branch network or borrowed funds from other sources for funding its loans, resulting in the generation of net interest income. The Banking segment also derives revenues from other sources including gains on the sale of available for sale investment securities, service charges on deposit accounts, cash sweep fees, overdraft fees, BOLI income, title insurance fees, and other less significant non-interest income. Meridian Wealth (“Wealth”), a registered investment advisor and wholly-owned subsidiary of the Bank, provides a comprehensive array of wealth management services and products and the trusted guidance to help its clients and our banking customers prepare for the future. The unit generates non-interest income through advisory fees. Meridian’s mortgage banking segment (“Mortgage”) consists of 11 loan production offices throughout suburban Philadelphia and Maryland. The Mortgage segment originates 1 – 4 family residential mortgages and sells nearly all of its production to third party investors. The unit generates net interest income on the loans it originates and holds temporarily, then earns fee income (primarily gain on sales) at the time of the sale. The unit also recognizes income from document preparation fees, changes in portfolio pipeline fair values and net hedging gains (losses), if any. The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided.
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Schedule of basic and diluted earnings per common share |
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Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortized cost and fair value of securities | The following tables presents the amortized cost, allowance for credit losses, and fair value of securities at the dates indicated:
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Schedule of investment gross unrealized loss in continuous unrealized loss position | The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at the dates indicated:
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Schedule of amortized cost and carrying value of held-to-maturity securities and available-for-sale securities by contractual maturity | The amortized cost and carrying value of securities are shown below by contractual maturities at the dates indicated. Actual maturities may differ from contractual maturities as issuers may have the right to call or repay obligations with or without call or prepayment penalties.
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Gross gain and (loss) on sale of investment securities available for sale | The following table presents the gross loss on sale of investment securities available for sale on the dates indicated:
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Loans and Other Finance Receivables (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loans and leases outstanding | The following table presents loans and other finance receivables detailed by category at the dates indicated:
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Schedule of age analysis of past due loans and leases | The following tables present an aging of the Corporation’s loans at the dates indicated:
(1) Includes $14,403 of loans at fair value of which $13,680 are current, $173 are 30-89 days past due and $550 are nonaccrual.
(1) Includes $14,502 of loans at fair value of which $13,760 are current, $184 are 30-89 days past due and $558 are nonaccrual.
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Schedule of financing receivables, nonaccural | The following table presents the amortized costs basis of loans and leases on nonaccrual status and loans 90 days or more past due and still accruing, net of fees and costs as of June 30, 2023. As of this date here were no loans 90 days or more past due and still accruing.
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Schedule of non-accruing collateral dependent loans by class or loans | The following table presents the amortized cost basis of non-accruing collateral-dependent loans by class or loans as of June 30, 2023 under the current expected credit loss model:
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Allowance for Credit Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of allocation of the allowance for loan and lease losses | The following tables provide the activity of our allowance for credit losses for the three and six months ended June 30, 2023 under the CECL model in accordance with ASC 326 (as adopted on January 1, 2023):
The following tables provide the activity of the allowance for loan and lease losses for the three and six months ended June 30, 2022 under the incurred loss model:
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Reconciliation of provision for credit losses | The following table provides a reconciliation of the provision for credit losses on the consolidated statements of income between the funded and unfunded components at the dates indicated:
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Allowance allocated by portfolio segment | The following tables detail the allocation of the ACL and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases at the dates indicated:
(1) Excludes deferred fees and loans carried at fair value. The following table details the pre-CECL allocation of the allowance for loan and lease losses and the carrying value for loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment at the dates indicated:
(1) Excludes deferred fees and loans carried at fair value.
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Schedule of carrying value of loans and leases by portfolio segment based on the credit quality indicators | he following tables detail the carrying value of loans and leases by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses at the dates indicated:
The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at June 30, 2023. In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated:
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Schedule of allocations based on the credit quality indicators | In addition to credit quality indicators as shown in the above tables, allowance allocations for residential mortgages, consumer loans and leases are also applied based on their performance status at the dates indicated:
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Schedule of recorded investment and principal balance of impaired loans | The following table details the recorded investment and principal balance of individually evaluated loans by portfolio segment, their related Allowance and interest income recognized at the dates indicated.
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Schedule of average recorded investment on impaired loans | The following table details the average recorded investment and interest income recognized on individually evaluated loans by portfolio segment.
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Financing receivable, modified | The following table presents information about TDRs at the dates indicated:
The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023.
The following presents, by class of loans, information regarding the financial effect on accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended June 30, 2023.
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Short-Term Borrowings and Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of short term borrowings | The following table presents short-term borrowings at the dates indicated:
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Schedule of long term debt | The following table presents long-term borrowings at the dates indicated:
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Servicing Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing Assets at Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of servicing assets | Changes in the MSR balance are summarized as follows:
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Schedule of valuation allowance for servicing assets | Activity in the valuation allowance for MSRs was as follows:
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Schedule of sensitivity of fair value of servicing assets | The sensitivity of the current fair value of the residential mortgage servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table.
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SBA Loan Servicing Rights | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing Assets at Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of servicing assets | Changes in the SBA loan servicing asset balance are summarized as follows:
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Schedule of valuation allowance for servicing assets | Activity in the valuation allowance for SBA loan servicing assets was as follows:
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Schedule of sensitivity of fair value of servicing assets | The sensitivity of the current fair value of the SBA loan servicing rights to immediate 10% and 20% favorable and unfavorable changes in key economic assumptions are included in the following table.
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Fair Value Measurements and Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | The following table presents the fair value of financial assets measured at fair value on a recurring basis by level within the fair value hierarchy at the dates indicated:
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Schedule of financial assets measured at fair value on non-recurring basis | The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated:
(1) Individually evaluated loans are those in which the Corporation has measured impairment generally based on the fair value of the loan’s collateral. Refer to the following page for further qualitative discussion around individually evaluated loans.
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Schedule of measurement inputs | The following table details the valuation techniques for Level 3 individually evaluated loans.
The following table details the valuation techniques for Level 3 interest rate lock commitments.
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Schedule of estimated fair values of financial instruments | The following table presents the estimated fair values of the Corporation’s financial instruments at the dates indicated:
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Schedule of level 3 inputs reconciliation | The following table includes a rollforward of interest rate lock commitments for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the periods indicated.
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the notional amounts and fair values of derivative financial instruments | The following table presents a summary of notional amounts and fair values of derivative financial instruments at the dates indicated:
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Summary of the fair value gains and losses on derivative financial instruments | The following table presents a summary of the fair value gains and (losses) on derivative financial instruments:
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Segments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of business segment financial information | The table below summarizes income and expenses, directly attributable to each business line, which have been included in the statement of operations. Total assets for each segment is also provided.
|
Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands |
Feb. 28, 2023
$ / shares
|
Jun. 30, 2023
USD ($)
$ / shares
|
Mar. 31, 2023
USD ($)
|
Jan. 01, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
$ / shares
|
Jun. 30, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|||
---|---|---|---|---|---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Stock split, conversion ratio | 2 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 1.00 | $ 1 | $ 1 | ||||||||
Investment in equity securities | $ 2,097 | $ 2,086 | |||||||||
Off balance sheet, credit losses | 1,400 | 173 | |||||||||
Equity, decrease to retained earnings | 153,962 | $ 153,049 | 153,280 | $ 156,087 | $ 157,684 | $ 165,360 | |||||
Post-tax impacts for loans, net of fees and costs | 1,839,597 | 1,724,854 | |||||||||
Retained Earnings | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Equity, decrease to retained earnings | $ 99,434 | $ 96,180 | 95,815 | $ 87,815 | $ 83,104 | $ 84,916 | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Equity, decrease to retained earnings | [1] | (2,228) | |||||||||
Post-tax impacts for loans, net of fees and costs | $ (1,200) | ||||||||||
Unfunded loan commitments | (974) | ||||||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Equity, decrease to retained earnings | $ (2,200) | $ (2,228) | [1] | ||||||||
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Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Numerator for earnings per share: | ||||
Net income available to common stockholders | $ 4,645 | $ 5,938 | $ 8,666 | $ 11,473 |
Denominators for earnings per share: | ||||
Weighted average shares outstanding (in shares) | 11,240 | 12,202 | 11,348 | 12,230 |
Average unearned ESOP shares (in shares) | (178) | (204) | (181) | (208) |
Basic weighted averages shares outstanding (in shares) | 11,062 | 11,998 | 11,167 | 12,022 |
Dilutive effects of assumed exercises of stock options (in shares) | 72 | 256 | 165 | 298 |
Dilutive effects of SERP shares (in shares) | 170 | 144 | 162 | 138 |
Diluted weighted averages shares outstanding (in shares) | 11,304 | 12,398 | 11,494 | 12,458 |
Basic earnings per share (in USD per share) | $ 0.42 | $ 0.49 | $ 0.78 | $ 0.95 |
Diluted earnings per share (in USD per share) | $ 0.41 | $ 0.48 | $ 0.75 | $ 0.92 |
Antidilutive shares excluded from computation of average dilutive earnings per share (in shares) | 512 | 272 | 507 | 42 |
Securities - Amortized cost and fair value (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
security
|
Dec. 31, 2022
USD ($)
security
|
---|---|---|
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 139,854 | $ 148,976 |
Gross unrealized gains | 111 | 59 |
Gross unrealized losses | (13,297) | (13,689) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 126,668 | $ 135,346 |
# of Securities in unrealized loss position | security | 133 | 135 |
Securities held to maturity: | ||
Amortized cost | $ 36,463 | $ 37,479 |
Gross unrealized gains | 0 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (3,605) | (4,394) |
Fair value | $ 32,858 | 33,085 |
# of Securities in unrealized loss position | security | 24 | |
U.S. asset backed securities | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 12,158 | 15,581 |
Gross unrealized gains | 110 | 14 |
Gross unrealized losses | (235) | (314) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 12,033 | $ 15,281 |
# of Securities in unrealized loss position | security | 9 | 12 |
U.S. government agency MBS | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 10,985 | $ 12,272 |
Gross unrealized gains | 0 | 5 |
Gross unrealized losses | (539) | (538) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 10,446 | $ 11,739 |
# of Securities in unrealized loss position | security | 12 | 12 |
U.S. government agency CMO | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 22,684 | $ 25,520 |
Gross unrealized gains | 0 | 40 |
Gross unrealized losses | (2,387) | (2,242) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 20,297 | $ 23,318 |
# of Securities in unrealized loss position | security | 30 | 29 |
State and municipal securities | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 40,456 | $ 44,700 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (4,877) | (5,862) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 35,579 | $ 38,838 |
# of Securities in unrealized loss position | security | 31 | 34 |
Securities held to maturity: | ||
Amortized cost | $ 36,463 | $ 37,479 |
Gross unrealized gains | 0 | 0 |
Gross unrealized gains | 0 | |
Gross unrealized losses | (3,605) | (4,394) |
Fair value | $ 32,858 | $ 33,085 |
# of Securities in unrealized loss position | security | 24 | 25 |
U.S. Treasuries | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 32,981 | $ 32,980 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3,323) | (3,457) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 29,658 | $ 29,523 |
# of Securities in unrealized loss position | security | 25 | 25 |
Non-U.S. government agency CMO | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 12,390 | $ 9,722 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | (820) | (633) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 11,571 | $ 9,089 |
# of Securities in unrealized loss position | security | 13 | 11 |
Corporate bonds | ||
Securities available-for-sale: | ||
Securities available-for-sale, amortized cost | $ 8,200 | $ 8,201 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,116) | (643) |
Allowance for Credit Losses | 0 | |
Debt securities, fair value | $ 7,084 | $ 7,558 |
# of Securities in unrealized loss position | security | 13 | 12 |
Securities - Additional Information (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
security
|
Dec. 31, 2022
USD ($)
|
|
Securities | ||
Number of securities deemed other-than-temporarily impaired | security | 0 | |
Debt securities, fair value | $ 126,668 | $ 135,346 |
Asset Pledged as Collateral | ||
Securities | ||
Debt securities, fair value | $ 53,500 | $ 78,400 |
Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | $ 12,709 | $ 45,243 |
12 Months or More, Fair Value | 108,674 | 80,226 |
Total Fair Value | 121,382 | 125,469 |
Less than 12 Months, Unrealized Losses | (487) | (2,849) |
12 Months or More, Unrealized Losses | (12,810) | (10,840) |
Total Unrealized Losses | (13,297) | (13,689) |
Debt Securities, Held-to-Maturity, Maturity [Abstract] | ||
Less than 12 Months, Fair Value | 6,740 | 10,130 |
12 Months or More, Fair Value | 25,681 | 22,543 |
Total Fair Value | 32,421 | 32,673 |
Less than 12 Months, Unrecognized Loss | (95) | (364) |
12 Months or More, Unrecognized Loss | (3,510) | (4,030) |
Total securities held-to-maturity | (3,605) | (4,394) |
U.S. asset backed securities | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 0 | 6,531 |
12 Months or More, Fair Value | 7,423 | 4,863 |
Total Fair Value | 7,423 | 11,394 |
Less than 12 Months, Unrealized Losses | 0 | (80) |
12 Months or More, Unrealized Losses | (235) | (234) |
Total Unrealized Losses | (235) | (314) |
U.S. government agency MBS | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 2,151 | 6,022 |
12 Months or More, Fair Value | 8,296 | 4,637 |
Total Fair Value | 10,446 | 10,659 |
Less than 12 Months, Unrealized Losses | (7) | (230) |
12 Months or More, Unrealized Losses | (532) | (308) |
Total Unrealized Losses | (539) | (538) |
U.S. government agency CMO | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 3,676 | 9,859 |
12 Months or More, Fair Value | 16,621 | 9,549 |
Total Fair Value | 20,297 | 19,408 |
Less than 12 Months, Unrealized Losses | (104) | (821) |
12 Months or More, Unrealized Losses | (2,283) | (1,421) |
Total Unrealized Losses | (2,387) | (2,242) |
State and municipal securities | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 0 | 7,487 |
12 Months or More, Fair Value | 35,579 | 31,351 |
Total Fair Value | 35,579 | 38,838 |
Less than 12 Months, Unrealized Losses | 0 | (726) |
12 Months or More, Unrealized Losses | (4,877) | (5,136) |
Total Unrealized Losses | (4,877) | (5,862) |
Debt Securities, Held-to-Maturity, Maturity [Abstract] | ||
Less than 12 Months, Fair Value | 6,740 | 10,130 |
12 Months or More, Fair Value | 25,681 | 22,543 |
Total Fair Value | 32,421 | 32,673 |
Less than 12 Months, Unrecognized Loss | (95) | (364) |
12 Months or More, Unrecognized Loss | (3,510) | (4,030) |
Total securities held-to-maturity | (3,605) | (4,394) |
U.S. Treasuries | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 0 | 1,902 |
12 Months or More, Fair Value | 29,658 | 27,622 |
Total Fair Value | 29,658 | 29,524 |
Less than 12 Months, Unrealized Losses | 0 | (97) |
12 Months or More, Unrealized Losses | (3,323) | (3,360) |
Total Unrealized Losses | (3,323) | (3,457) |
Non-U.S. government agency CMO | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 4,674 | 8,423 |
12 Months or More, Fair Value | 6,221 | 666 |
Total Fair Value | 10,895 | 9,089 |
Less than 12 Months, Unrealized Losses | (84) | (464) |
12 Months or More, Unrealized Losses | (736) | (169) |
Total Unrealized Losses | (820) | (633) |
Corporate bonds | ||
Activity in available-for-sale securities: | ||
Less than 12 Months, Fair Value | 2,208 | 5,019 |
12 Months or More, Fair Value | 4,876 | 1,538 |
Total Fair Value | 7,084 | 6,557 |
Less than 12 Months, Unrealized Losses | (292) | (431) |
12 Months or More, Unrealized Losses | (824) | (212) |
Total Unrealized Losses | $ (1,116) | $ (643) |
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Contractual Maturities, Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due after one year through five years | 26,779 | 18,865 |
Due after five years through ten years | 23,433 | 28,647 |
Due after ten years | 43,583 | 53,950 |
Subtotal | 93,795 | 101,462 |
Mortgage-related securities | 46,059 | 47,514 |
Securities available-for-sale, amortized cost | 139,854 | 148,976 |
Contractual Maturities, Available-for-sale, Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 24,295 | 17,289 |
Due after five years through ten years | 20,894 | 25,459 |
Due after ten years | 39,165 | 48,453 |
Subtotal | 84,354 | 91,201 |
Mortgage-related securities | 42,314 | 44,145 |
Fair value | 126,668 | 135,346 |
Contractual Maturities, Held-to-maturity, Amortized Cost | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 3,370 | 4,275 |
Due after five years through ten years | 3,937 | 2,998 |
Due after ten years | 29,156 | 30,206 |
Subtotal | 36,463 | 37,479 |
Mortgage-related securities | 0 | 0 |
Amortized cost | 36,463 | 37,479 |
Contractual Maturities, Held-to-maturity, Fair Value | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 3,326 | 4,238 |
Due after five years through ten years | 3,457 | 2,683 |
Due after ten years | 26,075 | 26,164 |
Subtotal | 32,858 | 33,085 |
Mortgage-related securities | 0 | 0 |
Total | $ 32,858 | $ 33,085 |
Securities - Sale of Investment Securities, Available for Sale (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sale of investment securities | $ 13,514 | $ 0 | $ 13,514 | $ 0 |
Gross gain on sale of available for sale investments | 0 | 0 | 0 | 0 |
Gross loss on sale of available for sale investments | $ 54 | $ 0 | $ 54 | $ 0 |
Loans and Other Finance Receivables - Loans outstanding by category (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Loans Receivable | ||
Total loans | $ 1,858,077 | $ 1,735,598 |
Residential mortgage real estate loans accounted under fair value option, at fair value | 14,403 | 14,502 |
Residential mortgage real estate loans accounted under fair value option, at amortized cost | 16,976 | 16,930 |
Unearned lease income included in leases, net | (24,698) | (25,715) |
Unamortized net deferred loan origination costs | 1,762 | 8,084 |
Real estate loans: | ||
Loans Receivable | ||
Total loans | 1,249,391 | 1,118,591 |
Real estate loans: | Commercial mortgage | ||
Loans Receivable | ||
Total loans | 648,235 | 565,400 |
Real estate loans: | Home equity lines and loans | ||
Loans Receivable | ||
Total loans | 67,226 | 59,399 |
Real estate loans: | Residential mortgage | ||
Loans Receivable | ||
Total loans | 247,848 | 221,837 |
Real estate loans: | Construction | ||
Loans Receivable | ||
Total loans | 286,082 | 271,955 |
Commercial and industrial | ||
Loans Receivable | ||
Total loans | 310,280 | 341,378 |
Small business loans | ||
Loans Receivable | ||
Total loans | 147,937 | 136,155 |
Consumer | ||
Loans Receivable | ||
Total loans | 440 | 488 |
Leases, net | ||
Loans Receivable | ||
Total loans | $ 150,029 | $ 138,986 |
Loans and Other Finance Receivables - Age analysis of past due loans and leases (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 1,858,077 | $ 1,735,598 |
Total Accruing Loans and leases | 1,830,713 | 1,714,362 |
Nonaccrual loans and leases | $ 27,364 | $ 21,236 |
% Delinquent | 1.67% | 1.67% |
Residential mortgage real estate loans accounted under fair value option, at fair value | $ 14,403 | $ 14,502 |
Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Nonaccrual loans and leases | 931 | |
Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Nonaccrual loans and leases | 2,272 | |
Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Nonaccrual loans and leases | 1,206 | |
Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | $ 14,403 | |
Number of loans in process of foreclosure | loan | 4 | |
Value of loans in process of foreclosure | $ 948 | |
Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 310,280 | 341,378 |
Total Accruing Loans and leases | 294,617 | 328,831 |
Nonaccrual loans and leases | $ 15,663 | $ 12,547 |
% Delinquent | 5.05% | 3.70% |
Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 147,937 | $ 136,155 |
Total Accruing Loans and leases | 141,780 | 131,690 |
Nonaccrual loans and leases | $ 6,157 | $ 4,465 |
% Delinquent | 5.34% | 3.97% |
Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 150,029 | $ 138,986 |
Total Accruing Loans and leases | 148,894 | 138,084 |
Nonaccrual loans and leases | $ 1,135 | $ 902 |
% Delinquent | 1.46% | 1.49% |
Real estate loans: | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 1,249,391 | $ 1,118,591 |
Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 648,235 | 565,400 |
Total Accruing Loans and leases | 648,235 | 565,260 |
Nonaccrual loans and leases | $ 0 | $ 140 |
% Delinquent | 0.00% | 0.02% |
Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 67,226 | $ 59,399 |
Total Accruing Loans and leases | 66,295 | 58,302 |
Nonaccrual loans and leases | $ 931 | $ 1,097 |
% Delinquent | 1.52% | 2.09% |
Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 247,848 | $ 221,837 |
Total Accruing Loans and leases | 245,576 | 219,752 |
Nonaccrual loans and leases | $ 2,272 | $ 2,085 |
% Delinquent | 1.27% | 2.86% |
Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 286,082 | $ 271,955 |
Total Accruing Loans and leases | 284,876 | 271,955 |
Nonaccrual loans and leases | $ 1,206 | $ 0 |
% Delinquent | 0.42% | 0.44% |
Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 440 | $ 488 |
Total Accruing Loans and leases | 440 | 488 |
Nonaccrual loans and leases | $ 0 | $ 0 |
% Delinquent | 0.00% | 0.00% |
30-89 days past due | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | $ 3,750 | $ 7,827 |
30-89 days past due | Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | 173 | 184 |
30-89 days past due | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 101 |
30-89 days past due | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,742 | 939 |
30-89 days past due | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,048 | 1,173 |
30-89 days past due | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
30-89 days past due | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 89 | 146 |
30-89 days past due | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 871 | 4,262 |
30-89 days past due | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 1,206 |
30-89 days past due | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Past Due | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 3,750 | 7,827 |
Financial Asset, Past Due | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 101 |
Financial Asset, Past Due | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,742 | 939 |
Financial Asset, Past Due | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,048 | 1,173 |
Financial Asset, Past Due | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Financial Asset, Past Due | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 89 | 146 |
Financial Asset, Past Due | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 871 | 4,262 |
Financial Asset, Past Due | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 1,206 |
Financial Asset, Past Due | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 0 | 0 |
Current | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 1,826,963 | 1,706,535 |
Current | Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | 13,680 | 13,760 |
Current | Commercial and industrial | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 294,617 | 328,730 |
Current | Small business loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 140,038 | 130,751 |
Current | Leases, net | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 147,846 | 136,911 |
Current | Real estate loans: | Commercial mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 648,235 | 565,260 |
Current | Real estate loans: | Home equity lines and loans | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 66,206 | 58,156 |
Current | Real estate loans: | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 244,705 | 215,490 |
Current | Real estate loans: | Construction | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 284,876 | 270,749 |
Current | Consumer | ||
Age Analysis of Past Due Loans and Leases | ||
Total loans | 440 | 488 |
Nonaccrual | Residential mortgage | Residential mortgage | ||
Age Analysis of Past Due Loans and Leases | ||
Residential mortgage real estate loans accounted under fair value option, at fair value | $ 550 | $ 558 |
Loans and Other Finance Receivables - Schedule of Financing Receivables, Nonaccural (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | $ 9,321 | |
Nonaccrual With ACL | 18,043 | |
Nonaccrual loans and leases | 27,364 | $ 21,236 |
Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 931 | |
Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 2,272 | |
Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,206 | |
Real estate loans: | Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | 931 | |
Nonaccrual With ACL | 0 | |
Nonaccrual loans and leases | 931 | 1,097 |
Real estate loans: | Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | 2,272 | |
Nonaccrual With ACL | 0 | |
Nonaccrual loans and leases | 2,272 | 2,085 |
Real estate loans: | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | 1,206 | |
Nonaccrual With ACL | 0 | |
Nonaccrual loans and leases | 1,206 | 0 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | 3,348 | |
Nonaccrual With ACL | 12,315 | |
Nonaccrual loans and leases | 15,663 | 12,547 |
Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | 1,564 | |
Nonaccrual With ACL | 4,593 | |
Nonaccrual loans and leases | 6,157 | 4,465 |
Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual Without ACL | 0 | |
Nonaccrual With ACL | 1,135 | |
Nonaccrual loans and leases | $ 1,135 | $ 902 |
Loans and Other Finance Receivables - Schedule of Non-Accruing Collateral-Dependent Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | $ 27,364 | $ 21,236 |
Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 931 | |
Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 2,272 | |
Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,206 | |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 15,663 | |
Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 6,157 | |
Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,135 | |
Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 10,876 | |
Real Estate | Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 931 | |
Real Estate | Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 2,272 | |
Real Estate | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,206 | |
Real Estate | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,895 | |
Real Estate | Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 4,572 | |
Real Estate | Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | |
Equipment and Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 16,488 | |
Equipment and Other | Home equity lines and loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | |
Equipment and Other | Residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | |
Equipment and Other | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 0 | |
Equipment and Other | Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 13,768 | |
Equipment and Other | Small business loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | 1,585 | |
Equipment and Other | Leases, net | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual loans and leases | $ 1,135 |
Allowance for Credit Losses - Roll-forward of allowance by portfolio segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 20,442 | $ 18,826 | $ 18,828 | $ 18,758 |
Charge-offs | (1,155) | (696) | (2,652) | (1,263) |
Recoveries | 168 | 73 | 213 | 93 |
Provision (recovery of provision) for credit losses | 787 | 602 | 2,257 | 1,217 |
Balance at end of period | 20,242 | 18,805 | 20,242 | 18,805 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1,596 | |||
Commercial mortgage | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 3,475 | 4,150 | 4,095 | 4,950 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (recovery of provision) for credit losses | (226) | 177 | (320) | (623) |
Balance at end of period | 3,249 | 4,327 | 3,249 | 4,327 |
Commercial mortgage | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (526) | |||
Home equity lines and loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 615 | 208 | 188 | 224 |
Charge-offs | (54) | 0 | (87) | 0 |
Recoveries | 1 | 2 | 3 | 8 |
Provision (recovery of provision) for credit losses | 228 | 30 | 247 | 8 |
Balance at end of period | 790 | 240 | 790 | 240 |
Home equity lines and loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 439 | |||
Residential mortgage | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 868 | 357 | 948 | 283 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 2 |
Provision (recovery of provision) for credit losses | 179 | 132 | 82 | 204 |
Balance at end of period | 1,047 | 489 | 1,047 | 489 |
Residential mortgage | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 17 | |||
Construction | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1,119 | 2,257 | 3,075 | 2,042 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (recovery of provision) for credit losses | 175 | 224 | (18) | 439 |
Balance at end of period | 1,294 | 2,481 | 1,294 | 2,481 |
Construction | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (1,763) | |||
Commercial and industrial | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 2,733 | 7,369 | 4,012 | 6,533 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 17 | 9 | 56 | 20 |
Provision (recovery of provision) for credit losses | (509) | (1,091) | (804) | (266) |
Balance at end of period | 2,241 | 6,287 | 2,241 | 6,287 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (1,023) | |||
Small business loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 6,316 | 3,372 | 4,909 | 3,737 |
Charge-offs | (326) | 0 | (326) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (recovery of provision) for credit losses | 878 | 309 | 1,175 | (56) |
Balance at end of period | 6,868 | 3,681 | 6,868 | 3,681 |
Small business loans | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 1,110 | |||
Consumer | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 0 | 3 | 3 | 3 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 1 | 1 | 2 | 2 |
Provision (recovery of provision) for credit losses | (1) | (1) | (2) | (2) |
Balance at end of period | 0 | 3 | 0 | 3 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | (3) | |||
Leases, net | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 5,316 | 1,110 | 1,598 | 986 |
Charge-offs | (775) | (696) | (2,239) | (1,263) |
Recoveries | 149 | 61 | 152 | 61 |
Provision (recovery of provision) for credit losses | 63 | 822 | 1,897 | 1,513 |
Balance at end of period | $ 4,753 | $ 1,297 | 4,753 | $ 1,297 |
Leases, net | Cumulative Effect, Period of Adoption, Adjustment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 3,345 |
Allowance for Credit Losses - Provision for credit losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Text Block [Abstract] | ||||
Provision (recovery of provision) for credit losses | $ 787 | $ 602 | $ 2,257 | $ 1,217 |
Recovery of provision for credit losses - unfunded | (82) | 0 | (153) | 0 |
Provision (recovery of provision) for credit losses | $ 705 | $ 602 | $ 2,104 | $ 1,217 |
Allowance for Credit Losses - Allowance allocated by portfolio segment (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | $ 2,597 | $ 2,225 | ||||
Allowance on loans and leases collectively evaluated for impairment | 17,645 | 16,603 | ||||
Total allowance on loans and leases | 20,242 | $ 20,442 | 18,828 | $ 18,805 | $ 18,826 | $ 18,758 |
Carrying value of loans and leases individually evaluated for impairment | 26,832 | 24,178 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 1,816,842 | 1,696,918 | ||||
Total on carrying value of loans and leases | 1,843,674 | 1,721,096 | ||||
Commercial mortgage | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases collectively evaluated for impairment | 3,249 | 4,095 | ||||
Total allowance on loans and leases | 3,249 | 3,475 | 4,095 | 4,327 | 4,150 | 4,950 |
Carrying value of loans and leases individually evaluated for impairment | 0 | 2,445 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 648,235 | 562,955 | ||||
Total on carrying value of loans and leases | 648,235 | 565,400 | ||||
Home equity lines and loans | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases collectively evaluated for impairment | 790 | 188 | ||||
Total allowance on loans and leases | 790 | 615 | 188 | 240 | 208 | 224 |
Carrying value of loans and leases individually evaluated for impairment | 931 | 1,097 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 66,295 | 58,302 | ||||
Total on carrying value of loans and leases | 67,226 | 59,399 | ||||
Residential mortgage | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases collectively evaluated for impairment | 1,047 | 948 | ||||
Total allowance on loans and leases | 1,047 | 868 | 948 | 489 | 357 | 283 |
Carrying value of loans and leases individually evaluated for impairment | 1,722 | 1,454 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 231,723 | 205,881 | ||||
Total on carrying value of loans and leases | 233,445 | 207,335 | ||||
Construction | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases collectively evaluated for impairment | 1,294 | 3,075 | ||||
Total allowance on loans and leases | 1,294 | 1,119 | 3,075 | 2,481 | 2,257 | 2,042 |
Carrying value of loans and leases individually evaluated for impairment | 1,206 | 1,206 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 284,876 | 270,749 | ||||
Total on carrying value of loans and leases | 286,082 | 271,955 | ||||
Commercial and industrial | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 998 | 776 | ||||
Allowance on loans and leases collectively evaluated for impairment | 1,243 | 3,236 | ||||
Total allowance on loans and leases | 2,241 | 2,733 | 4,012 | 6,287 | 7,369 | 6,533 |
Carrying value of loans and leases individually evaluated for impairment | 15,681 | 12,547 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 294,599 | 328,831 | ||||
Total on carrying value of loans and leases | 310,280 | 341,378 | ||||
Small business loans | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 1,599 | 1,449 | ||||
Allowance on loans and leases collectively evaluated for impairment | 5,269 | 3,460 | ||||
Total allowance on loans and leases | 6,868 | 6,316 | 4,909 | 3,681 | 3,372 | 3,737 |
Carrying value of loans and leases individually evaluated for impairment | 6,157 | 4,527 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 141,780 | 131,628 | ||||
Total on carrying value of loans and leases | 147,937 | 136,155 | ||||
Consumer | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases collectively evaluated for impairment | 0 | 3 | ||||
Total allowance on loans and leases | 0 | 0 | 3 | 3 | 3 | 3 |
Carrying value of loans and leases individually evaluated for impairment | 0 | 0 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 440 | 488 | ||||
Total on carrying value of loans and leases | 440 | 488 | ||||
Leases, net | ||||||
Impaired Loans | ||||||
Allowance on loans and leases individually evaluated for impairment | 0 | 0 | ||||
Allowance on loans and leases collectively evaluated for impairment | 4,753 | 1,598 | ||||
Total allowance on loans and leases | 4,753 | $ 5,316 | 1,598 | $ 1,297 | $ 1,110 | $ 986 |
Carrying value of loans and leases individually evaluated for impairment | 1,135 | 902 | ||||
Carrying value of loans and leases collectively evaluated for impairment | 148,894 | 138,084 | ||||
Total on carrying value of loans and leases | $ 150,029 | $ 138,986 |
Allowance for Credit Losses - Carrying value based on credit quality indicators (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Loans and Leases by Credit Ratings | |||||
Loans, net of fees and costs | $ 1,859,839 | $ 1,859,839 | $ 1,743,682 | ||
Current period gross charge-offs | (1,155) | $ (696) | (2,652) | $ (1,263) | |
Residential mortgage real estate loans accounted under fair value option, at fair value | 14,403 | 14,403 | 14,502 | ||
Total loans | 1,858,077 | 1,858,077 | 1,735,598 | ||
Decrease in carry value | 6,400 | 6,400 | |||
Evaluated by performance status | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 55,130 | 55,130 | |||
2023, Writeoff | (3) | ||||
2022 | 229,131 | 229,131 | |||
2022, Writeoff | (1,005) | ||||
2021 | 64,696 | 64,696 | |||
2021, Writeoff | (1,095) | ||||
2020 | 21,346 | 21,346 | |||
2020, Writeoff | (190) | ||||
2019 | 2,851 | 2,851 | |||
2019, Writeoff | 0 | ||||
Prior | 17,130 | 17,130 | |||
Prior, Writeoff | (33) | ||||
Revolving Loans | 60,856 | 60,856 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 451,140 | 451,140 | |||
Current period gross charge-offs | (2,326) | ||||
Total loans | 346,809 | ||||
Performing | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 55,130 | 55,130 | |||
2022 | 228,461 | 228,461 | |||
2021 | 64,419 | 64,419 | |||
2020 | 21,158 | 21,158 | |||
2019 | 2,851 | 2,851 | |||
Prior | 15,408 | 15,408 | |||
Revolving Loans | 59,925 | 59,925 | |||
Loans, net of fees and costs | 447,352 | 447,352 | |||
Total loans | 344,453 | ||||
Nonperforming | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 670 | 670 | |||
2021 | 277 | 277 | |||
2020 | 188 | 188 | |||
2019 | 0 | 0 | |||
Prior | 1,722 | 1,722 | |||
Revolving Loans | 931 | 931 | |||
Loans, net of fees and costs | 3,788 | 3,788 | |||
Total loans | 2,356 | ||||
Evaluated based on credit quality indicators | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 134,859 | 134,859 | |||
2023, Writeoff | 0 | ||||
2022 | 309,498 | 309,498 | |||
2022, Writeoff | 0 | ||||
2021 | 284,633 | 284,633 | |||
2021, Writeoff | 0 | ||||
2020 | 172,016 | 172,016 | |||
2020, Writeoff | (161) | ||||
2019 | 83,780 | 83,780 | |||
2019, Writeoff | (165) | ||||
Prior | 221,830 | 221,830 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans Converted to Term Loans | 1,301 | 1,301 | |||
Revolving Loans Converted to Term Loans, Writeoff | 0 | ||||
Revolving Loans | 184,616 | 184,616 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 1,392,535 | 1,392,535 | |||
Current period gross charge-offs | (326) | ||||
Total loans | 1,374,287 | ||||
Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 133,659 | 133,659 | |||
2022 | 299,841 | 299,841 | |||
2021 | 276,062 | 276,062 | |||
2020 | 169,168 | 169,168 | |||
2019 | 71,072 | 71,072 | |||
Prior | 184,782 | 184,782 | |||
Revolving Loans Converted to Term Loans | 634 | 634 | |||
Revolving Loans | 160,111 | 160,111 | |||
Loans, net of fees and costs | 1,295,328 | 1,295,328 | |||
Total loans | 1,281,804 | ||||
Special Mention | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 1,000 | 1,000 | |||
2022 | 9,658 | 9,658 | |||
2021 | 1,084 | 1,084 | |||
2020 | 0 | 0 | |||
2019 | 9,834 | 9,834 | |||
Prior | 24,740 | 24,740 | |||
Revolving Loans Converted to Term Loans | 667 | 667 | |||
Revolving Loans | 5,463 | 5,463 | |||
Loans, net of fees and costs | 52,446 | 52,446 | |||
Total loans | 43,766 | ||||
Substandard | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 200 | 200 | |||
2022 | 0 | 0 | |||
2021 | 7,488 | 7,488 | |||
2020 | 2,849 | 2,849 | |||
2019 | 2,874 | 2,874 | |||
Prior | 12,308 | 12,308 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 19,042 | 19,042 | |||
Loans, net of fees and costs | 44,761 | 44,761 | |||
Total loans | 48,717 | ||||
Doubtful | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 0 | 0 | |||
Total loans | 0 | ||||
Commercial mortgage | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 56,835 | 56,835 | |||
2023, Writeoff | 0 | ||||
2022 | 133,277 | 133,277 | |||
2022, Writeoff | 0 | ||||
2021 | 142,562 | 142,562 | |||
2021, Writeoff | 0 | ||||
2020 | 97,800 | 97,800 | |||
2020, Writeoff | 0 | ||||
2019 | 65,135 | 65,135 | |||
2019, Writeoff | 0 | ||||
Prior | 150,742 | 150,742 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans Converted to Term Loans | 1,178 | 1,178 | |||
Revolving Loans Converted to Term Loans, Writeoff | 0 | ||||
Revolving Loans | 706 | 706 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 648,235 | 648,235 | |||
Current period gross charge-offs | 0 | 0 | 0 | 0 | |
Commercial mortgage | Evaluated based on credit quality indicators | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 565,400 | ||||
Commercial mortgage | Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 56,635 | 56,635 | |||
2022 | 128,590 | 128,590 | |||
2021 | 142,562 | 142,562 | |||
2020 | 97,800 | 97,800 | |||
2019 | 54,142 | 54,142 | |||
Prior | 138,257 | 138,257 | |||
Revolving Loans Converted to Term Loans | 511 | 511 | |||
Revolving Loans | 375 | 375 | |||
Loans, net of fees and costs | 618,872 | 618,872 | |||
Total loans | 536,705 | ||||
Commercial mortgage | Special Mention | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 4,687 | 4,687 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 9,331 | 9,331 | |||
Prior | 10,145 | 10,145 | |||
Revolving Loans Converted to Term Loans | 667 | 667 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 24,830 | 24,830 | |||
Total loans | 25,309 | ||||
Commercial mortgage | Substandard | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 200 | 200 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 1,662 | 1,662 | |||
Prior | 2,340 | 2,340 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 331 | 331 | |||
Loans, net of fees and costs | 4,533 | 4,533 | |||
Total loans | 3,386 | ||||
Commercial mortgage | Doubtful | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 0 | ||||
Construction | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 32,623 | 32,623 | |||
2023, Writeoff | 0 | ||||
2022 | 103,126 | 103,126 | |||
2022, Writeoff | 0 | ||||
2021 | 56,098 | 56,098 | |||
2021, Writeoff | 0 | ||||
2020 | 48,430 | 48,430 | |||
2020, Writeoff | 0 | ||||
2019 | 5,066 | 5,066 | |||
2019, Writeoff | 0 | ||||
Prior | 15,269 | 15,269 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans Converted to Term Loans | 123 | 123 | |||
Revolving Loans Converted to Term Loans, Writeoff | 0 | ||||
Revolving Loans | 25,347 | 25,347 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 286,082 | 286,082 | |||
Current period gross charge-offs | 0 | 0 | 0 | 0 | |
Construction | Evaluated based on credit quality indicators | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 271,955 | ||||
Construction | Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 32,623 | 32,623 | |||
2022 | 103,126 | 103,126 | |||
2021 | 55,014 | 55,014 | |||
2020 | 48,430 | 48,430 | |||
2019 | 4,563 | 4,563 | |||
Prior | 2,147 | 2,147 | |||
Revolving Loans Converted to Term Loans | 123 | 123 | |||
Revolving Loans | 23,654 | 23,654 | |||
Loans, net of fees and costs | 269,680 | 269,680 | |||
Total loans | 260,085 | ||||
Construction | Special Mention | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 1,084 | 1,084 | |||
2020 | 0 | 0 | |||
2019 | 503 | 503 | |||
Prior | 11,916 | 11,916 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 1,693 | 1,693 | |||
Loans, net of fees and costs | 15,196 | 15,196 | |||
Total loans | 11,870 | ||||
Construction | Substandard | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 1,206 | 1,206 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 1,206 | 1,206 | |||
Total loans | 0 | ||||
Construction | Doubtful | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 0 | ||||
Commercial and industrial | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 8,917 | 8,917 | |||
2023, Writeoff | 0 | ||||
2022 | 47,978 | 47,978 | |||
2022, Writeoff | 0 | ||||
2021 | 38,192 | 38,192 | |||
2021, Writeoff | 0 | ||||
2020 | 9,358 | 9,358 | |||
2020, Writeoff | 0 | ||||
2019 | 5,469 | 5,469 | |||
2019, Writeoff | 0 | ||||
Prior | 54,704 | 54,704 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans Converted to Term Loans, Writeoff | 0 | ||||
Revolving Loans | 145,662 | 145,662 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 310,280 | 310,280 | |||
Current period gross charge-offs | 0 | 0 | 0 | 0 | |
Total loans | 310,280 | 310,280 | 341,378 | ||
Commercial and industrial | Evaluated based on credit quality indicators | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 341,378 | ||||
Commercial and industrial | Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 7,917 | 7,917 | |||
2022 | 43,176 | 43,176 | |||
2021 | 33,533 | 33,533 | |||
2020 | 8,425 | 8,425 | |||
2019 | 5,169 | 5,169 | |||
Prior | 43,263 | 43,263 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 123,781 | 123,781 | |||
Loans, net of fees and costs | 265,264 | 265,264 | |||
Total loans | 295,502 | ||||
Commercial and industrial | Special Mention | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 1,000 | 1,000 | |||
2022 | 4,802 | 4,802 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 2,679 | 2,679 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 3,670 | 3,670 | |||
Loans, net of fees and costs | 12,151 | 12,151 | |||
Total loans | 6,587 | ||||
Commercial and industrial | Substandard | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 4,659 | 4,659 | |||
2020 | 933 | 933 | |||
2019 | 300 | 300 | |||
Prior | 8,762 | 8,762 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 18,211 | 18,211 | |||
Loans, net of fees and costs | 32,865 | 32,865 | |||
Total loans | 32,900 | 32,900 | 39,289 | ||
Deferrals that became non performing loans | 11,000 | 11,000 | |||
Commercial and industrial | Doubtful | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 0 | ||||
Small business loans | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 36,484 | 36,484 | |||
2023, Writeoff | 0 | ||||
2022 | 25,118 | 25,118 | |||
2022, Writeoff | 0 | ||||
2021 | 47,781 | 47,781 | |||
2021, Writeoff | 0 | ||||
2020 | 16,428 | 16,428 | |||
2020, Writeoff | (161) | ||||
2019 | 8,110 | 8,110 | |||
2019, Writeoff | (165) | ||||
Prior | 1,115 | 1,115 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans Converted to Term Loans, Writeoff | 0 | ||||
Revolving Loans | 12,901 | 12,901 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 147,937 | 147,937 | |||
Current period gross charge-offs | (326) | 0 | (326) | 0 | |
Total loans | 147,937 | 147,937 | 136,155 | ||
Small business loans | Evaluated based on credit quality indicators | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 136,155 | ||||
Small business loans | Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 36,484 | 36,484 | |||
2022 | 24,949 | 24,949 | |||
2021 | 44,952 | 44,952 | |||
2020 | 14,512 | 14,512 | |||
2019 | 7,198 | 7,198 | |||
Prior | 1,115 | 1,115 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 12,301 | 12,301 | |||
Loans, net of fees and costs | 141,511 | 141,511 | |||
Total loans | 131,690 | ||||
Small business loans | Special Mention | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 169 | 169 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 100 | 100 | |||
Loans, net of fees and costs | 269 | 269 | |||
Total loans | 0 | ||||
Small business loans | Substandard | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 2,829 | 2,829 | |||
2020 | 1,916 | 1,916 | |||
2019 | 912 | 912 | |||
Prior | 0 | 0 | |||
Revolving Loans Converted to Term Loans | 0 | 0 | |||
Revolving Loans | 500 | 500 | |||
Loans, net of fees and costs | 6,157 | 6,157 | |||
Total loans | 4,465 | ||||
Small business loans | Doubtful | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 0 | ||||
Leases, net | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 26,018 | 26,018 | |||
2023, Writeoff | (3) | ||||
2022 | 70,053 | 70,053 | |||
2022, Writeoff | (1,005) | ||||
2021 | 40,469 | 40,469 | |||
2021, Writeoff | (1,095) | ||||
2020 | 13,489 | 13,489 | |||
2020, Writeoff | (136) | ||||
2019 | 0 | 0 | |||
2019, Writeoff | 0 | ||||
Prior | 0 | 0 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans | 0 | 0 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 150,029 | 150,029 | |||
Current period gross charge-offs | (775) | (696) | (2,239) | (1,263) | |
Total loans | 150,029 | 150,029 | 138,986 | ||
Leases, net | Evaluated by performance status | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 138,986 | ||||
Leases, net | Performing | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 138,084 | ||||
Leases, net | Nonperforming | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 902 | ||||
Leases, net | Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 26,018 | 26,018 | |||
2022 | 69,383 | 69,383 | |||
2021 | 40,192 | 40,192 | |||
2020 | 13,301 | 13,301 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 148,894 | 148,894 | |||
Leases, net | Substandard | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 670 | 670 | |||
2021 | 277 | 277 | |||
2020 | 188 | 188 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 1,135 | 1,135 | |||
Home equity lines and loans | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 53 | 53 | |||
2023, Writeoff | 0 | ||||
2022 | 808 | 808 | |||
2022, Writeoff | 0 | ||||
2021 | 400 | 400 | |||
2021, Writeoff | 0 | ||||
2020 | 366 | 366 | |||
2020, Writeoff | (54) | ||||
2019 | 2,348 | 2,348 | |||
2019, Writeoff | 0 | ||||
Prior | 2,456 | 2,456 | |||
Prior, Writeoff | (33) | ||||
Revolving Loans | 60,795 | 60,795 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 67,226 | 67,226 | |||
Current period gross charge-offs | (54) | 0 | (87) | 0 | |
Home equity lines and loans | Performing | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 53 | 53 | |||
2022 | 808 | 808 | |||
2021 | 400 | 400 | |||
2020 | 366 | 366 | |||
2019 | 2,348 | 2,348 | |||
Prior | 2,456 | 2,456 | |||
Revolving Loans | 59,864 | 59,864 | |||
Loans, net of fees and costs | 66,295 | 66,295 | |||
Home equity lines and loans | Nonperforming | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans | 931 | 931 | |||
Loans, net of fees and costs | 931 | 931 | |||
Home equity lines and loans | Evaluated based on credit quality indicators | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 59,399 | ||||
Home equity lines and loans | Pass/Watch | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 57,822 | ||||
Home equity lines and loans | Special Mention | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 0 | ||||
Home equity lines and loans | Substandard | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 1,577 | ||||
Home equity lines and loans | Doubtful | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 0 | ||||
Residential mortgage | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 29,016 | 29,016 | |||
2023, Writeoff | 0 | ||||
2022 | 158,223 | 158,223 | |||
2022, Writeoff | 0 | ||||
2021 | 23,827 | 23,827 | |||
2021, Writeoff | 0 | ||||
2020 | 7,491 | 7,491 | |||
2020, Writeoff | 0 | ||||
2019 | 464 | 464 | |||
2019, Writeoff | 0 | ||||
Prior | 14,424 | 14,424 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans | 0 | 0 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 233,445 | 233,445 | |||
Current period gross charge-offs | 0 | 0 | 0 | 0 | |
Residential mortgage | Evaluated by performance status | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 207,335 | ||||
Residential mortgage | Performing | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 29,016 | 29,016 | |||
2022 | 158,223 | 158,223 | |||
2021 | 23,827 | 23,827 | |||
2020 | 7,491 | 7,491 | |||
2019 | 464 | 464 | |||
Prior | 12,702 | 12,702 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 231,723 | 231,723 | |||
Total loans | 205,881 | ||||
Residential mortgage | Nonperforming | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 1,722 | 1,722 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | 1,722 | 1,722 | |||
Residential mortgage real estate loans accounted under fair value option, at fair value | 550 | 550 | 558 | ||
Total loans | 1,454 | ||||
Consumer | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 43 | 43 | |||
2023, Writeoff | 0 | ||||
2022 | 47 | 47 | |||
2022, Writeoff | 0 | ||||
2021 | 0 | 0 | |||
2021, Writeoff | 0 | ||||
2020 | 0 | 0 | |||
2020, Writeoff | 0 | ||||
2019 | 39 | 39 | |||
2019, Writeoff | 0 | ||||
Prior | 250 | 250 | |||
Prior, Writeoff | 0 | ||||
Revolving Loans | 61 | 61 | |||
Revolving Loans, Writeoff | 0 | ||||
Loans, net of fees and costs | 440 | 440 | |||
Current period gross charge-offs | 0 | $ 0 | 0 | $ 0 | |
Total loans | 440 | 440 | 488 | ||
Consumer | Evaluated by performance status | |||||
Loans and Leases by Credit Ratings | |||||
Total loans | 488 | ||||
Consumer | Performing | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 43 | 43 | |||
2022 | 47 | 47 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 39 | 39 | |||
Prior | 250 | 250 | |||
Revolving Loans | 61 | 61 | |||
Loans, net of fees and costs | 440 | 440 | |||
Total loans | 488 | ||||
Consumer | Nonperforming | |||||
Loans and Leases by Credit Ratings | |||||
2023 | 0 | 0 | |||
2022 | 0 | 0 | |||
2021 | 0 | 0 | |||
2020 | 0 | 0 | |||
2019 | 0 | 0 | |||
Prior | 0 | 0 | |||
Revolving Loans | 0 | 0 | |||
Loans, net of fees and costs | $ 0 | $ 0 | |||
Total loans | $ 0 |
Allowance for Credit Losses - Carrying value based on performance status (Details) $ in Thousands |
Jun. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
loan
|
---|---|---|
Loans and Leases by Credit Ratings | ||
Total loans | $ 1,858,077 | $ 1,735,598 |
Loans at fair value | 14,403 | 14,502 |
Allowance on loans and leases individually evaluated for impairment | 2,597 | 2,225 |
Allowance on loans and leases collectively evaluated for impairment | 17,645 | 16,603 |
Carrying value of loans and leases individually evaluated for impairment | 26,832 | 24,178 |
Carrying value of loans and leases collectively evaluated for impairment | 1,816,842 | 1,696,918 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 1,843,674 | 1,721,096 |
Evaluated by performance status | ||
Loans and Leases by Credit Ratings | ||
Total loans | 346,809 | |
2023 | 55,130 | |
Performing | ||
Loans and Leases by Credit Ratings | ||
Total loans | 344,453 | |
2023 | 55,130 | |
Nonperforming | ||
Loans and Leases by Credit Ratings | ||
Total loans | 2,356 | |
2023 | 0 | |
Evaluated based on credit quality indicators | ||
Loans and Leases by Credit Ratings | ||
Total loans | 1,374,287 | |
2023 | 134,859 | |
Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
Total loans | 1,281,804 | |
2023 | 133,659 | |
Special Mention | ||
Loans and Leases by Credit Ratings | ||
Total loans | 43,766 | |
2023 | 1,000 | |
Substandard | ||
Loans and Leases by Credit Ratings | ||
Total loans | 48,717 | |
2023 | $ 200 | |
Substandard | Commercial and industrial | ||
Loans and Leases by Credit Ratings | ||
Number of loan relationships with no specific industry concentration | loan | 14 | |
Doubtful | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
2023 | $ 0 | |
Commercial mortgage | ||
Loans and Leases by Credit Ratings | ||
2023 | 56,835 | |
Allowance on loans and leases individually evaluated for impairment | 0 | 0 |
Allowance on loans and leases collectively evaluated for impairment | 3,249 | 4,095 |
Carrying value of loans and leases individually evaluated for impairment | 0 | 2,445 |
Carrying value of loans and leases collectively evaluated for impairment | 648,235 | 562,955 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 648,235 | 565,400 |
Commercial mortgage | Evaluated based on credit quality indicators | ||
Loans and Leases by Credit Ratings | ||
Total loans | 565,400 | |
Commercial mortgage | Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
Total loans | 536,705 | |
2023 | 56,635 | |
Commercial mortgage | Special Mention | ||
Loans and Leases by Credit Ratings | ||
Total loans | 25,309 | |
2023 | 0 | |
Commercial mortgage | Substandard | ||
Loans and Leases by Credit Ratings | ||
Total loans | 3,386 | |
2023 | 200 | |
Commercial mortgage | Doubtful | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
Home equity lines and loans | ||
Loans and Leases by Credit Ratings | ||
2023 | 53 | |
Allowance on loans and leases individually evaluated for impairment | 0 | 0 |
Allowance on loans and leases collectively evaluated for impairment | 790 | 188 |
Carrying value of loans and leases individually evaluated for impairment | 931 | 1,097 |
Carrying value of loans and leases collectively evaluated for impairment | 66,295 | 58,302 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 67,226 | 59,399 |
Home equity lines and loans | Performing | ||
Loans and Leases by Credit Ratings | ||
2023 | 53 | |
Home equity lines and loans | Nonperforming | ||
Loans and Leases by Credit Ratings | ||
2023 | 0 | |
Home equity lines and loans | Evaluated based on credit quality indicators | ||
Loans and Leases by Credit Ratings | ||
Total loans | 59,399 | |
Home equity lines and loans | Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
Total loans | 57,822 | |
Home equity lines and loans | Special Mention | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
Home equity lines and loans | Substandard | ||
Loans and Leases by Credit Ratings | ||
Total loans | 1,577 | |
Home equity lines and loans | Doubtful | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
Construction | ||
Loans and Leases by Credit Ratings | ||
2023 | 32,623 | |
Allowance on loans and leases individually evaluated for impairment | 0 | 0 |
Allowance on loans and leases collectively evaluated for impairment | 1,294 | 3,075 |
Carrying value of loans and leases individually evaluated for impairment | 1,206 | 1,206 |
Carrying value of loans and leases collectively evaluated for impairment | 284,876 | 270,749 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 286,082 | 271,955 |
Construction | Evaluated based on credit quality indicators | ||
Loans and Leases by Credit Ratings | ||
Total loans | 271,955 | |
Construction | Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
Total loans | 260,085 | |
2023 | 32,623 | |
Construction | Special Mention | ||
Loans and Leases by Credit Ratings | ||
Total loans | 11,870 | |
2023 | 0 | |
Construction | Substandard | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
2023 | 0 | |
Construction | Doubtful | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
Commercial and industrial | ||
Loans and Leases by Credit Ratings | ||
Total loans | 310,280 | 341,378 |
2023 | 8,917 | |
Allowance on loans and leases individually evaluated for impairment | 998 | 776 |
Allowance on loans and leases collectively evaluated for impairment | 1,243 | 3,236 |
Carrying value of loans and leases individually evaluated for impairment | 15,681 | 12,547 |
Carrying value of loans and leases collectively evaluated for impairment | 294,599 | 328,831 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 310,280 | 341,378 |
Commercial and industrial | Evaluated based on credit quality indicators | ||
Loans and Leases by Credit Ratings | ||
Total loans | 341,378 | |
Commercial and industrial | Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
Total loans | 295,502 | |
2023 | 7,917 | |
Commercial and industrial | Special Mention | ||
Loans and Leases by Credit Ratings | ||
Total loans | 6,587 | |
2023 | 1,000 | |
Commercial and industrial | Substandard | ||
Loans and Leases by Credit Ratings | ||
Total loans | 32,900 | 39,289 |
2023 | 0 | |
Commercial and industrial | Doubtful | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
Small business loans | ||
Loans and Leases by Credit Ratings | ||
Total loans | 147,937 | 136,155 |
2023 | 36,484 | |
Allowance on loans and leases individually evaluated for impairment | 1,599 | 1,449 |
Allowance on loans and leases collectively evaluated for impairment | 5,269 | 3,460 |
Carrying value of loans and leases individually evaluated for impairment | 6,157 | 4,527 |
Carrying value of loans and leases collectively evaluated for impairment | 141,780 | 131,628 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 147,937 | 136,155 |
Small business loans | Evaluated based on credit quality indicators | ||
Loans and Leases by Credit Ratings | ||
Total loans | 136,155 | |
Small business loans | Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
Total loans | 131,690 | |
2023 | 36,484 | |
Small business loans | Special Mention | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
2023 | 0 | |
Small business loans | Substandard | ||
Loans and Leases by Credit Ratings | ||
Total loans | 4,465 | |
2023 | 0 | |
Small business loans | Doubtful | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
Residential mortgage | ||
Loans and Leases by Credit Ratings | ||
2023 | 29,016 | |
Allowance on loans and leases individually evaluated for impairment | 0 | 0 |
Allowance on loans and leases collectively evaluated for impairment | 1,047 | 948 |
Carrying value of loans and leases individually evaluated for impairment | 1,722 | 1,454 |
Carrying value of loans and leases collectively evaluated for impairment | 231,723 | 205,881 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 233,445 | 207,335 |
Residential mortgage | Residential mortgage | ||
Loans and Leases by Credit Ratings | ||
Loans at fair value | 14,403 | |
Residential mortgage | Evaluated by performance status | ||
Loans and Leases by Credit Ratings | ||
Total loans | 207,335 | |
Residential mortgage | Performing | ||
Loans and Leases by Credit Ratings | ||
Total loans | 205,881 | |
2023 | $ 29,016 | |
Residential mortgage | Nonperforming | ||
Loans and Leases by Credit Ratings | ||
Total loans | $ 1,454 | |
Number of loans | loan | 4 | 4 |
Loans at fair value | $ 550 | $ 558 |
2023 | 0 | |
Consumer | ||
Loans and Leases by Credit Ratings | ||
Total loans | 440 | 488 |
2023 | 43 | |
Allowance on loans and leases individually evaluated for impairment | 0 | 0 |
Allowance on loans and leases collectively evaluated for impairment | 0 | 3 |
Carrying value of loans and leases individually evaluated for impairment | 0 | 0 |
Carrying value of loans and leases collectively evaluated for impairment | 440 | 488 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 440 | 488 |
Consumer | Evaluated by performance status | ||
Loans and Leases by Credit Ratings | ||
Total loans | 488 | |
Consumer | Performing | ||
Loans and Leases by Credit Ratings | ||
Total loans | 488 | |
2023 | 43 | |
Consumer | Nonperforming | ||
Loans and Leases by Credit Ratings | ||
Total loans | 0 | |
2023 | 0 | |
Leases, net | ||
Loans and Leases by Credit Ratings | ||
Total loans | 150,029 | 138,986 |
2023 | 26,018 | |
Allowance on loans and leases individually evaluated for impairment | 0 | 0 |
Allowance on loans and leases collectively evaluated for impairment | 4,753 | 1,598 |
Carrying value of loans and leases individually evaluated for impairment | 1,135 | 902 |
Carrying value of loans and leases collectively evaluated for impairment | 148,894 | 138,084 |
Financing Receivable, Excluding Loans And Leases Carried At Fair Value | 150,029 | 138,986 |
Leases, net | Evaluated by performance status | ||
Loans and Leases by Credit Ratings | ||
Total loans | 138,986 | |
Leases, net | Performing | ||
Loans and Leases by Credit Ratings | ||
Total loans | 138,084 | |
Leases, net | Nonperforming | ||
Loans and Leases by Credit Ratings | ||
Total loans | $ 902 | |
Leases, net | Pass/Watch | ||
Loans and Leases by Credit Ratings | ||
2023 | 26,018 | |
Leases, net | Substandard | ||
Loans and Leases by Credit Ratings | ||
2023 | $ 0 |
Allowance for Credit Losses - Impaired loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Individually evaluated loans with related allowance: | |||||
Recorded investment | $ 16,908 | $ 16,908 | $ 14,829 | ||
Principal balance | 18,378 | 18,378 | 15,825 | ||
Related allowance | 2,597 | 2,597 | 2,225 | ||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 9,924 | 9,924 | 9,349 | ||
Principal balance | 10,036 | 10,036 | 9,406 | ||
Grand Total | |||||
Recorded investment | 26,832 | 26,832 | 24,178 | ||
Principal balance | 28,414 | 28,414 | 25,231 | ||
Related allowance | 2,597 | 2,597 | 2,225 | ||
Average recorded investment | 14,714 | $ 17,078 | 14,855 | $ 17,115 | |
Interest income recognized | 18 | 0 | 18 | 0 | |
Average recorded investment | 11,697 | 9,197 | 9,607 | 9,256 | |
Interest income recognized | 8 | 236 | 98 | 275 | |
Impaired Financing Receivable, Average Recorded Investment | 26,411 | 26,275 | 24,462 | 26,371 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 26 | 236 | 116 | 275 | |
Commercial and industrial | |||||
Individually evaluated loans with related allowance: | |||||
Recorded investment | 12,315 | 12,315 | 11,099 | ||
Principal balance | 13,760 | 13,760 | 12,095 | ||
Related allowance | 998 | 998 | 776 | ||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 3,366 | 3,366 | 1,448 | ||
Principal balance | 3,398 | 3,398 | 1,494 | ||
Grand Total | |||||
Related allowance | 998 | 998 | 776 | ||
Average recorded investment | 10,700 | 16,412 | 10,808 | 16,449 | |
Interest income recognized | 18 | 0 | 18 | 0 | |
Average recorded investment | 4,516 | 293 | 3,350 | 297 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Commercial mortgage | |||||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 0 | 0 | 2,445 | ||
Principal balance | 0 | 0 | 2,456 | ||
Grand Total | |||||
Average recorded investment | 0 | 4,241 | 0 | 4,279 | |
Interest income recognized | 0 | 29 | 58 | 48 | |
Small business loans | |||||
Individually evaluated loans with related allowance: | |||||
Recorded investment | 4,593 | 4,593 | 3,730 | ||
Principal balance | 4,618 | 4,618 | 3,730 | ||
Related allowance | 1,599 | 1,599 | 1,449 | ||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 1,564 | 1,564 | 797 | ||
Principal balance | 1,642 | 1,642 | 797 | ||
Grand Total | |||||
Related allowance | 1,599 | 1,599 | 1,449 | ||
Average recorded investment | 4,014 | 666 | 4,047 | 666 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Average recorded investment | 2,166 | 835 | 1,458 | 844 | |
Interest income recognized | 0 | 2 | 2 | 5 | |
Home equity lines and loans | |||||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 931 | 931 | 1,097 | ||
Principal balance | 933 | 933 | 1,097 | ||
Grand Total | |||||
Average recorded investment | 931 | 1,040 | 937 | 1,044 | |
Interest income recognized | 0 | 23 | 0 | 23 | |
Residential mortgage | |||||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 1,722 | 1,722 | 1,454 | ||
Principal balance | 1,722 | 1,722 | 1,454 | ||
Grand Total | |||||
Average recorded investment | 1,725 | 1,480 | 1,585 | 1,483 | |
Interest income recognized | 8 | 166 | 38 | 168 | |
Construction | |||||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 1,206 | 1,206 | 1,206 | ||
Principal balance | 1,206 | 1,206 | 1,206 | ||
Grand Total | |||||
Average recorded investment | 1,206 | 1,206 | 1,120 | 1,206 | |
Interest income recognized | 0 | 16 | 0 | 31 | |
Leases, net | |||||
Individually evaluated loans without related allowance: | |||||
Recorded investment | 1,135 | 1,135 | 902 | ||
Principal balance | 1,135 | 1,135 | $ 902 | ||
Grand Total | |||||
Average recorded investment | 1,153 | 102 | 1,157 | 103 | |
Interest income recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Credit Losses - Impaired loan average recorded investment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Individually evaluated loans with related allowance: | |||||
Average recorded investment | $ 14,714 | $ 17,078 | $ 14,855 | $ 17,115 | |
Interest income recognized | 18 | 0 | 18 | 0 | |
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 11,697 | 9,197 | 9,607 | 9,256 | |
Interest income recognized | 8 | 236 | 98 | 275 | |
Grand Total | |||||
Average recorded investment | 26,411 | 26,275 | 24,462 | 26,371 | |
Interest income recognized | 26 | 236 | 116 | 275 | |
Recorded investment | 16,908 | 16,908 | $ 14,829 | ||
Principal balance | 18,378 | 18,378 | 15,825 | ||
Related allowance | 2,597 | 2,597 | 2,225 | ||
Recorded investment | 9,924 | 9,924 | 9,349 | ||
Principal balance | 10,036 | 10,036 | 9,406 | ||
Impaired Financing Receivable, Recorded Investment | 26,832 | 26,832 | 24,178 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 28,414 | 28,414 | 25,231 | ||
Commercial mortgage | |||||
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 0 | 4,241 | 0 | 4,279 | |
Interest income recognized | 0 | 29 | 58 | 48 | |
Grand Total | |||||
Recorded investment | 0 | 0 | 2,445 | ||
Principal balance | 0 | 0 | 2,456 | ||
Commercial and industrial | |||||
Individually evaluated loans with related allowance: | |||||
Average recorded investment | 10,700 | 16,412 | 10,808 | 16,449 | |
Interest income recognized | 18 | 0 | 18 | 0 | |
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 4,516 | 293 | 3,350 | 297 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Grand Total | |||||
Recorded investment | 12,315 | 12,315 | 11,099 | ||
Principal balance | 13,760 | 13,760 | 12,095 | ||
Related allowance | 998 | 998 | 776 | ||
Recorded investment | 3,366 | 3,366 | 1,448 | ||
Principal balance | 3,398 | 3,398 | 1,494 | ||
Small business loans | |||||
Individually evaluated loans with related allowance: | |||||
Average recorded investment | 4,014 | 666 | 4,047 | 666 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 2,166 | 835 | 1,458 | 844 | |
Interest income recognized | 0 | 2 | 2 | 5 | |
Grand Total | |||||
Recorded investment | 4,593 | 4,593 | 3,730 | ||
Principal balance | 4,618 | 4,618 | 3,730 | ||
Related allowance | 1,599 | 1,599 | 1,449 | ||
Recorded investment | 1,564 | 1,564 | 797 | ||
Principal balance | 1,642 | 1,642 | 797 | ||
Home equity lines and loans | |||||
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 931 | 1,040 | 937 | 1,044 | |
Interest income recognized | 0 | 23 | 0 | 23 | |
Grand Total | |||||
Recorded investment | 931 | 931 | 1,097 | ||
Principal balance | 933 | 933 | 1,097 | ||
Residential mortgage | |||||
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 1,725 | 1,480 | 1,585 | 1,483 | |
Interest income recognized | 8 | 166 | 38 | 168 | |
Grand Total | |||||
Recorded investment | 1,722 | 1,722 | 1,454 | ||
Principal balance | 1,722 | 1,722 | 1,454 | ||
Construction | |||||
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 1,206 | 1,206 | 1,120 | 1,206 | |
Interest income recognized | 0 | 16 | 0 | 31 | |
Grand Total | |||||
Recorded investment | 1,206 | 1,206 | 1,206 | ||
Principal balance | 1,206 | 1,206 | 1,206 | ||
Leases, net | |||||
Individually evaluated loans without related allowance: | |||||
Average recorded investment | 1,153 | 102 | 1,157 | 103 | |
Interest income recognized | 0 | $ 0 | 0 | $ 0 | |
Grand Total | |||||
Recorded investment | 1,135 | 1,135 | 902 | ||
Principal balance | $ 1,135 | $ 1,135 | $ 902 |
Allowance for Credit Losses - Troubled debt restructuring (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
---|---|
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
TDRs included in nonperforming loans and leases | $ 207 |
TDRs in compliance with modified terms | 3,573 |
Total TDRs | $ 3,780 |
Allowance for Credit Losses - Loan modifications granted categorized as TDRs (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2023
loan
|
Jun. 30, 2023
loan
|
Dec. 31, 2022
USD ($)
loan
loans
|
|
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |||
Number of loan modifications | loan | 1 | 1 | 1 |
New loan modifications | $ 684 | ||
Number of loans paid off | loans | 2 | ||
Loan modifications, paid off | $ 563 |
Allowance for Credit Losses - Modifications to debtors experiencing financial difficulty (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2023
USD ($)
loan
|
Jun. 30, 2023
USD ($)
loan
|
Dec. 31, 2022
loan
|
|
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | |||
Number of loan modifications | loan | 1 | 1 | 1 |
Amortized Cost Basis | $ 3,233 | $ 3,233 | |
Related Reserve | $ 0 | $ 0 | |
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | |||
Number of Loans | loan | 1 | 1 | |
Amortized Cost Basis | $ 1,406 | $ 1,406 | |
Related Reserve | 422 | 422 | |
Commitment to lend, value | $ 267 | $ 267 | |
Commercial and industrial | |||
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | |||
Number of loan modifications | loan | 1 | 1 | |
Amortized Cost Basis | $ 3,233 | $ 3,233 | |
Percentage of Total Class of Financing Receivable (as a percent) | 1.00% | 1.00% | |
Related Reserve | $ 0 | $ 0 | |
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | |||
Number of Loans | loan | 1 | 1 | |
Amortized Cost Basis | $ 1,406 | $ 1,406 | |
Percentage of Total Class of Financing Receivable (as a percent) | 0.005 | 0.005 | |
Related Reserve | $ 422 | $ 422 | |
Commercial and industrial | Extend maturity date | |||
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty: | |||
Number of loan modifications | loan | 1 | 1 | |
Commercial and industrial | Extend term and allow additional lender funding | |||
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty: | |||
Number of Loans | loan | 1 | 1 |
Short-Term Borrowings and Long-Term Debt - Additional Information (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2023
USD ($)
item
|
Dec. 31, 2022
USD ($)
|
|
Short-Term Borrowings | ||
Borrowings | $ 182,269,000 | $ 113,147,000 |
Letters of credit | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 620,600,000 | 505,400,000 |
Proceeds from long term debt | $ 120,000,000 | |
Federal funds purchased | ||
Short-Term Borrowings | ||
Number of borrowing facilities | item | 2 | |
Maximum borrowing capacity | $ 0 | 0 |
Federal funds purchased, facility one | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 24,000,000 | |
Federal funds purchased, facility two | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 15,000,000 | |
Federal Reserve discount window | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 7,900,000 | |
Borrowings | 0 | 0 |
BTFP Advances | ||
Short-Term Borrowings | ||
Maximum borrowing capacity | 33,000,000 | |
Borrowings | $ 33,000,000 | $ 0 |
Short-Term Borrowings and Long-Term Debt - Short-term borrowings (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Short-Term Borrowings | ||
Short term borrowings | $ 182,269 | $ 113,147 |
Open Repo Plus Weekly 0.33 Percent Maturing On 6/10/2024 | ||
Short-Term Borrowings | ||
Interest rate | 5.39% | |
Short term borrowings | $ 133,727 | 113,147 |
Mid Term Repo Fixed Maturing On 7/14/2023 | ||
Short-Term Borrowings | ||
Interest rate | 5.37% | |
Short term borrowings | $ 15,542 | 0 |
BTFP Advances | ||
Short-Term Borrowings | ||
Interest rate | 4.76% | |
Short term borrowings | $ 33,000 | $ 0 |
Short-Term Borrowings and Long-Term Debt - Long-term debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Long Term Debt | ||
Long-term debt | $ 12,367 | $ 8,935 |
Mid-term Repo Fixed Maturing On 12/22/2025 | ||
Long Term Debt | ||
Long term debt, interest rate | 4.23% | |
Long-term debt | $ 8,935 | 8,935 |
Mid-term Repo Fixed Maturing On 09/30/2024 | ||
Long Term Debt | ||
Long term debt, interest rate | 4.60% | |
Long-term debt | $ 3,432 | $ 0 |
Servicing Assets - Residential Mortgage Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||||
Balance at beginning of the period | $ 12,346 | ||||
Balance at end of the period | $ 12,193 | 12,193 | |||
Mortgage Servicing Rights | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Loans serviced | 1,000,000 | 1,000,000 | $ 1,000,000 | ||
Servicing fee income | 618 | $ 653 | 1,300 | $ 1,300 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||||
Balance at beginning of the period | 9,573 | 10,888 | 9,942 | 10,756 | |
Servicing rights capitalized | 0 | 51 | 0 | 583 | |
Amortization of servicing rights | (335) | (332) | (706) | (736) | |
Change in valuation allowance | 0 | 3 | 2 | 7 | |
Balance at end of the period | 9,238 | 10,610 | 9,238 | 10,610 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||||
Valuation allowance, beginning of period | 0 | (4) | (2) | (8) | |
Recovery | 0 | 3 | 2 | 7 | |
Valuation allowance, end of the period | 0 | (1) | 0 | (1) | |
SBA Loan Servicing Rights | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Loans serviced | 195,900 | 195,900 | $ 166,100 | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||||
Balance at beginning of the period | 2,552 | 2,508 | 2,404 | 2,009 | |
Servicing rights capitalized | 512 | 247 | 726 | 840 | |
Amortization of servicing rights | (252) | (225) | (447) | (350) | |
Change in valuation allowance | 143 | (280) | 272 | (249) | |
Balance at end of the period | 2,955 | 2,250 | 2,955 | 2,250 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||||
Valuation allowance, beginning of period | (235) | (65) | (364) | (96) | |
Impairment | 0 | (280) | 0 | (249) | |
Recovery | 143 | 0 | 272 | 0 | |
Valuation allowance, end of the period | $ (92) | $ (345) | $ (92) | $ (345) |
Servicing Assets - MSR Sensitivity Analysis (Details) - Mortgage Servicing Rights - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of residential mortgage servicing rights | $ 12,080 | $ 11,567 |
Weighted average life (months) | 28 months | 22 months |
Prepayment speed | 6.60% | 8.05% |
Impact on fair value of a 10% adverse change in prepayment speed | $ (524) | $ (268) |
Impact on fair value of a 20% adverse change in prepayment speed | $ (1,007) | $ (525) |
Discount rate | 9.50% | 9.50% |
Impact on fair value of a 10% adverse change in the discount rate | $ (459) | $ (404) |
Impact on fair value of a 20% adverse change in the discount rate | $ (885) | $ (777) |
Servicing Assets - SBA Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||||
Balance at beginning of the period | $ 12,346 | ||||
Balance at end of the period | $ 12,193 | 12,193 | |||
SBA Loan Servicing Rights | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Loans serviced | 195,900 | 195,900 | $ 166,100 | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||||
Balance at beginning of the period | 2,552 | $ 2,508 | 2,404 | $ 2,009 | |
Servicing rights capitalized | 512 | 247 | 726 | 840 | |
Amortization of servicing rights | (252) | (225) | (447) | (350) | |
Change in valuation allowance | 143 | (280) | 272 | (249) | |
Balance at end of the period | 2,955 | 2,250 | 2,955 | 2,250 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward] | |||||
Valuation allowance, beginning of period | (235) | (65) | (364) | (96) | |
Recovery | 143 | 0 | 272 | 0 | |
Valuation allowance, end of the period | $ (92) | $ (345) | $ (92) | $ (345) |
Servicing Assets - SBA Sensitivity Analysis (Details) - SBA Loan Servicing Rights - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2023 |
Dec. 31, 2022 |
|
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of SBA loan servicing rights | $ 3,056 | $ 2,422 |
Weighted average life (months) | 3 years 9 months 18 days | 3 years 9 months 18 days |
Prepayment speed | 12.98% | 12.73% |
Impact on fair value of a 10% adverse change in prepayment speed | $ (107) | $ (73) |
Impact on fair value of a 20% adverse change in prepayment speed | $ (205) | $ (141) |
Discount rate | 15.60% | 18.96% |
Impact on fair value of a 10% adverse change in the discount rate | $ (71) | $ (53) |
Impact on fair value of a 20% adverse change in the discount rate | $ (138) | $ (104) |
Fair Value Measurements and Disclosures - Financial assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets | ||
Debt securities, fair value | $ 126,668 | $ 135,346 |
Equity investments | 2,097 | 2,086 |
U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 12,033 | 15,281 |
U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 10,446 | 11,739 |
U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 20,297 | 23,318 |
State and municipal securities | ||
Assets | ||
Debt securities, fair value | 35,579 | 38,838 |
Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 11,571 | 9,089 |
Corporate bonds | ||
Assets | ||
Debt securities, fair value | 7,084 | 7,558 |
Recurring | ||
Assets | ||
Equity investments | 2,097 | 2,086 |
Mortgage loans held for sale | 40,422 | 22,243 |
Mortgage loans held for investment | 14,403 | 14,502 |
Total | 188,037 | 178,110 |
Liabilities | ||
Total | 3,861 | 3,895 |
Recurring | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 12,033 | 15,281 |
Recurring | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 10,446 | 11,739 |
Recurring | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 20,297 | 23,318 |
Recurring | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 35,579 | 38,838 |
Recurring | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 29,658 | 29,523 |
Recurring | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 11,571 | 9,089 |
Recurring | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 7,084 | 7,558 |
Recurring | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 261 | 87 |
Liabilities | ||
Derivative Liability | 144 | 79 |
Recurring | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 14 | |
Liabilities | ||
Derivative Liability | 1 | |
Recurring | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 3,737 | 3,846 |
Liabilities | ||
Derivative Liability | 3,704 | 3,799 |
Recurring | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 435 | |
Recurring | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | 12 | 17 |
Recurring | Level 1 | ||
Assets | ||
Equity investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment | 0 | 0 |
Total | 29,658 | 29,523 |
Liabilities | ||
Total | 0 | 0 |
Recurring | Level 1 | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 29,658 | 29,523 |
Recurring | Level 1 | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 1 | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 1 | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Liabilities | ||
Derivative Liability | 0 | |
Recurring | Level 1 | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 1 | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Recurring | Level 1 | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Equity investments | 2,097 | 2,086 |
Mortgage loans held for sale | 40,422 | 22,243 |
Mortgage loans held for investment | 14,403 | 14,502 |
Total | 158,118 | 148,500 |
Liabilities | ||
Total | 3,717 | 3,816 |
Recurring | Level 2 | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 12,033 | 15,281 |
Recurring | Level 2 | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 10,446 | 11,739 |
Recurring | Level 2 | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 20,297 | 23,318 |
Recurring | Level 2 | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 35,579 | 38,838 |
Recurring | Level 2 | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 2 | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 11,571 | 9,089 |
Recurring | Level 2 | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 7,084 | 7,558 |
Recurring | Level 2 | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 2 | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 14 | |
Liabilities | ||
Derivative Liability | 1 | |
Recurring | Level 2 | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 3,737 | 3,846 |
Liabilities | ||
Derivative Liability | 3,704 | 3,799 |
Recurring | Level 2 | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 435 | |
Recurring | Level 2 | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | 12 | 17 |
Recurring | Level 3 | ||
Assets | ||
Equity investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Mortgage loans held for investment | 0 | 0 |
Total | 261 | 87 |
Liabilities | ||
Total | 144 | 79 |
Recurring | Level 3 | U.S. asset backed securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | U.S. government agency MBS | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | State and municipal securities | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | U.S. Treasuries | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | Non-U.S. government agency CMO | ||
Assets | ||
Debt securities, fair value | 0 | |
Recurring | Level 3 | Corporate bonds | ||
Assets | ||
Debt securities, fair value | 0 | 0 |
Recurring | Level 3 | Interest Rate Lock Commitments | ||
Assets | ||
Derivative assets, Fair value | 261 | 87 |
Liabilities | ||
Derivative Liability | 144 | 79 |
Recurring | Level 3 | Forward Commitments | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Liabilities | ||
Derivative Liability | 0 | |
Recurring | Level 3 | Customer derivatives - interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | 0 |
Liabilities | ||
Derivative Liability | 0 | 0 |
Recurring | Level 3 | Interest rate swaps | ||
Assets | ||
Derivative assets, Fair value | 0 | |
Recurring | Level 3 | Risk Participation Agreements | ||
Liabilities | ||
Derivative Liability | $ 0 | $ 0 |
Fair Value Measurements and Disclosures - Financial assets measured at fair value on non-recurring basis (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Nonrecurring | Level 3 | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Mortgage servicing rights | $ 9,238 | $ 9,942 |
SBA loan servicing rights | 2,955 | 2,404 |
Total | 17,641 | 14,627 |
Nonrecurring | Level 3 | Commercial and industrial | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 2,429 | 0 |
Nonrecurring | Level 3 | Small business loans | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 3,019 | 2,281 |
Recurring | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Total | 188,037 | 178,110 |
Recurring | Level 3 | ||
Financial assets measured at fair value on a nonrecurring basis | ||
Total | $ 261 | $ 87 |
Fair Value Measurements and Disclosures - Level 3 valuation (Details) - Level 3 - Valuation, Income Approach - Measurement Input, Appraised Value $ in Thousands |
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 5,448 | $ 2,281 |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input (as a percent) | 0.02 | 0.02 |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input (as a percent) | 0.15 | 0.15 |
Fair Value Measurements and Disclosures - Estimated fair values of financial instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial assets: | ||
Loans at fair value | $ 14,403 | $ 14,502 |
Level 1 | Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 46,866 | 38,391 |
Level 1 | Fair value | ||
Financial assets: | ||
Cash and cash equivalents | 46,866 | 38,391 |
Level 2 | Carrying amount | ||
Financial assets: | ||
Mortgage loans held for sale | 40,422 | 22,243 |
Mortgage loans held for investment | 14,403 | 14,502 |
Financial liabilities: | ||
Deposits | 1,782,605 | 1,712,479 |
Borrowings | 194,636 | 122,082 |
Subordinated debentures | 40,348 | 40,346 |
Level 2 | Fair value | ||
Financial assets: | ||
Mortgage loans held for sale | 40,422 | 22,243 |
Mortgage loans held for investment | 14,403 | 14,502 |
Financial liabilities: | ||
Deposits | 1,688,900 | 1,575,600 |
Borrowings | 194,502 | 122,082 |
Subordinated debentures | 40,631 | 40,020 |
Level 3 | Carrying amount | ||
Financial assets: | ||
Loans at fair value | 1,845,436 | 1,729,180 |
Level 3 | Fair value | ||
Financial assets: | ||
Loans at fair value | $ 1,790,075 | $ 1,679,955 |
Fair Value Measurements and Disclosures - Fair value on a recurring basis (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of the period | $ 139 | $ 587 | $ 87 | $ 1,122 |
Decrease in value | 122 | (213) | 174 | (748) |
Balance at end of the period | $ 261 | $ 374 | $ 261 | $ 374 |
Fair Value Measurements and Disclosures - Valuation techniques for level 3 interest rate lock (Details) - Interest Rate Lock Commitments - Level 3 - Valuation Technique, Consensus Pricing Model $ in Thousands |
Jun. 30, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset | $ 261 | $ 87 |
Valuation technique extensible list | Valuation Technique, Consensus Pricing Model | Valuation Technique, Consensus Pricing Model |
Measurement input extensible list | Loan Origination Success Rate [Member] | Loan Origination Success Rate [Member] |
Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 0.01 | 0.01 |
Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 0.99 | 0.99 |
Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative asset, measurement input | 0.8347 | 0.8405 |
Derivative Financial Instruments - Notional amounts and fair values of derivative financial instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Derivative Financial Instruments | |||||
Notional amount | $ 247,439 | $ 247,439 | $ 127,456 | ||
Net change in unrealized gains (losses) on interest rate swaps used in cash flow hedges, net of tax effect of $(97), $0, $(97), and $0, respectively | 338 | $ 0 | 338 | $ 0 | |
Assets (liabilities) fair value | 586 | 586 | 38 | ||
Interest Rate Swap, One | |||||
Derivative Financial Instruments | |||||
Notional amount | $ 25,000 | $ 25,000 | |||
Fixed interest rate (as a percent) | 4.07% | 4.07% | |||
Interest Rate Swap, Two | |||||
Derivative Financial Instruments | |||||
Notional amount | $ 25,000 | $ 25,000 | |||
Fixed interest rate (as a percent) | 4.027% | 4.027% | |||
Interest Rate Swap, Three | |||||
Derivative Financial Instruments | |||||
Notional amount | $ 25,000 | $ 25,000 | |||
Fixed interest rate (as a percent) | 4.117% | 4.117% | |||
Interest Rate Lock Commitments | |||||
Derivative Financial Instruments | |||||
Notional amount | $ 67,624 | $ 67,624 | 32,698 | ||
Assets (liabilities) fair value | 117 | 117 | 8 | ||
Interest Rate Lock Commitments | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | 46,565 | 46,565 | 16,590 | ||
Assets (liabilities) fair value | 261 | 261 | 87 | ||
Interest Rate Lock Commitments | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 21,059 | 21,059 | 16,108 | ||
Assets (liabilities) fair value | (144) | (144) | (79) | ||
Forward Commitments | |||||
Derivative Financial Instruments | |||||
Notional amount | 5,000 | 5,000 | 0 | ||
Assets (liabilities) fair value | 13 | 13 | 0 | ||
Forward Commitments | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | 4,250 | 4,250 | 0 | ||
Assets (liabilities) fair value | 14 | 14 | 0 | ||
Forward Commitments | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 750 | 750 | 0 | ||
Assets (liabilities) fair value | (1) | (1) | 0 | ||
Customer derivatives - interest rate swaps | |||||
Derivative Financial Instruments | |||||
Notional amount | 92,674 | 92,674 | 87,558 | ||
Assets (liabilities) fair value | 33 | 33 | 47 | ||
Customer derivatives - interest rate swaps | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | 46,337 | 46,337 | 43,779 | ||
Assets (liabilities) fair value | 3,737 | 3,737 | 3,846 | ||
Customer derivatives - interest rate swaps | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 46,337 | 46,337 | 43,779 | ||
Assets (liabilities) fair value | (3,704) | (3,704) | (3,799) | ||
Risk Participation Agreements | |||||
Derivative Financial Instruments | |||||
Notional amount | 7,141 | 7,141 | 7,200 | ||
Assets (liabilities) fair value | (12) | (12) | (17) | ||
Risk Participation Agreements | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | 0 | 0 | 0 | ||
Assets (liabilities) fair value | 0 | 0 | 0 | ||
Risk Participation Agreements | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 7,141 | 7,141 | 7,200 | ||
Assets (liabilities) fair value | (12) | (12) | (17) | ||
Interest rate swaps | |||||
Derivative Financial Instruments | |||||
Notional amount | 75,000 | 75,000 | 0 | ||
Assets (liabilities) fair value | 435 | 435 | 0 | ||
Interest rate swaps | Other assets | |||||
Derivative Financial Instruments | |||||
Notional amount | 75,000 | 75,000 | 0 | ||
Assets (liabilities) fair value | 435 | 435 | 0 | ||
Interest rate swaps | Other liabilities | |||||
Derivative Financial Instruments | |||||
Notional amount | 0 | 0 | 0 | ||
Assets (liabilities) fair value | $ 0 | $ 0 | $ 0 |
Derivative Financial Instruments - Fair value gains and losses on derivative financial instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Summary of the fair value gains and losses on derivative financial instruments | ||||
Net fair value (losses) gains on derivative financial instruments | $ 617 | $ (674) | $ 548 | $ (840) |
Realized gain (losses) on derivatives | (1) | 1,715 | (1) | 4,542 |
Interest Rate Lock Commitments | ||||
Summary of the fair value gains and losses on derivative financial instruments | ||||
Net fair value (losses) gains on derivative financial instruments | 146 | 165 | 109 | (975) |
Forward Commitments | ||||
Summary of the fair value gains and losses on derivative financial instruments | ||||
Net fair value (losses) gains on derivative financial instruments | 13 | (909) | 13 | 31 |
Customer derivatives - interest rate swaps | ||||
Summary of the fair value gains and losses on derivative financial instruments | ||||
Net fair value (losses) gains on derivative financial instruments | 14 | 70 | (14) | 104 |
Risk Participation Agreements | ||||
Summary of the fair value gains and losses on derivative financial instruments | ||||
Net fair value (losses) gains on derivative financial instruments | 9 | 0 | 5 | 0 |
Interest rate swaps | ||||
Summary of the fair value gains and losses on derivative financial instruments | ||||
Net fair value (losses) gains on derivative financial instruments | $ 435 | $ 0 | $ 435 | $ 0 |
Segments - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2023
office
| |
Mortgage | |
Segments | |
Number of loan production offices | 11 |
Segments - Business segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
|
Net-interest Income: | |||||
Net interest income | $ 17,098 | $ 17,551 | $ 34,775 | $ 33,586 | |
Provision (recovery of provision) for credit losses | 705 | 602 | 2,104 | 1,217 | |
Net interest income after provision for credit losses | 16,393 | 16,949 | 32,671 | 32,369 | |
Non-interest Income | |||||
Mortgage banking income | 5,050 | 6,942 | 8,322 | 14,038 | |
SBA loan income | 1,767 | 437 | 2,480 | 2,957 | |
Net change in fair values | (235) | (1,241) | (188) | (3,309) | |
Net gain on hedging activity | (1) | 1,715 | (1) | 4,542 | |
Other | 1,308 | 1,296 | 2,718 | 2,719 | |
Total non-interest income | 9,124 | 10,403 | 15,762 | 23,505 | |
Total non-interest expense | 19,615 | 19,706 | 37,404 | 41,139 | |
Income (loss) before income taxes | 5,902 | 7,646 | 11,029 | 14,735 | |
Total Assets | 2,206,877 | 1,853,019 | 2,206,877 | 1,853,019 | $ 2,062,228 |
Bank | |||||
Net-interest Income: | |||||
Net interest income | 17,102 | 16,923 | 34,721 | 32,533 | |
Provision (recovery of provision) for credit losses | 705 | 602 | 2,104 | 1,217 | |
Net interest income after provision for credit losses | 16,397 | 16,321 | 32,617 | 31,316 | |
Non-interest Income | |||||
Mortgage banking income | 81 | 125 | 139 | 322 | |
SBA loan income | 1,767 | 437 | 2,480 | 2,957 | |
Net change in fair values | 23 | 71 | (8) | 103 | |
Net gain on hedging activity | 0 | 0 | 0 | 0 | |
Other | 637 | 526 | 1,327 | 1,153 | |
Total non-interest income | 2,508 | 1,159 | 3,938 | 4,535 | |
Total non-interest expense | 12,325 | 10,624 | 23,024 | 20,833 | |
Income (loss) before income taxes | 6,580 | 6,856 | 13,531 | 15,018 | |
Total Assets | 2,143,278 | 1,759,129 | 2,143,278 | 1,759,129 | |
Wealth | |||||
Net-interest Income: | |||||
Net interest income | (29) | 317 | 3 | 411 | |
Provision (recovery of provision) for credit losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for credit losses | (29) | 317 | 3 | 411 | |
Non-interest Income | |||||
Mortgage banking income | 0 | 0 | 0 | 0 | |
SBA loan income | 0 | 0 | 0 | 0 | |
Net change in fair values | 0 | 0 | 0 | 0 | |
Net gain on hedging activity | 0 | 0 | 0 | 0 | |
Other | 0 | 0 | 0 | 0 | |
Total non-interest income | 1,235 | 1,254 | 2,431 | 2,558 | |
Total non-interest expense | 889 | 822 | 1,877 | 1,700 | |
Income (loss) before income taxes | 317 | 749 | 557 | 1,269 | |
Total Assets | 8,485 | 7,432 | 8,485 | 7,432 | |
Mortgage | |||||
Net-interest Income: | |||||
Net interest income | 25 | 311 | 51 | 642 | |
Provision (recovery of provision) for credit losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for credit losses | 25 | 311 | 51 | 642 | |
Non-interest Income | |||||
Mortgage banking income | 4,969 | 6,817 | 8,183 | 13,716 | |
SBA loan income | 0 | 0 | 0 | 0 | |
Net change in fair values | (258) | (1,312) | (180) | (3,412) | |
Net gain on hedging activity | (1) | 1,715 | (1) | 4,542 | |
Other | 671 | 770 | 1,391 | 1,566 | |
Total non-interest income | 5,381 | 7,990 | 9,393 | 16,412 | |
Total non-interest expense | 6,401 | 8,260 | 12,503 | 18,606 | |
Income (loss) before income taxes | (995) | 41 | (3,059) | (1,552) | |
Total Assets | 55,114 | 86,458 | 55,114 | 86,458 | |
Wealth management income | |||||
Non-interest Income | |||||
Revenue from contract with customer | 1,235 | 1,254 | 2,431 | 2,558 | |
Wealth management income | Bank | |||||
Non-interest Income | |||||
Revenue from contract with customer | 0 | 0 | 0 | 0 | |
Wealth management income | Wealth | |||||
Non-interest Income | |||||
Revenue from contract with customer | 1,235 | 1,254 | 2,431 | 2,558 | |
Wealth management income | Mortgage | |||||
Non-interest Income | |||||
Revenue from contract with customer | $ 0 | $ 0 | $ 0 | $ 0 |
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