FORM |
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 of Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ | |||||||||||
☒ | Smaller Reporting Company | |||||||||||||
Emerging growth company |
Table of Contents | Page | |||||||
(Unaudited) | ||||||||||||||
(dollars in thousands, except per share amounts) | September 30, 2021 | December 31, 2020 | ||||||||||||
Assets | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest-bearing deposits with banks | ||||||||||||||
Securities available for sale ("AFS"), at fair value | ||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||
Non-marketable equity securities held in other financial institutions | ||||||||||||||
Federal Home Loan Bank ("FHLB") stock - at cost | ||||||||||||||
Net U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") Loans | ||||||||||||||
Portfolio Loans Receivable net of allowance for loan losses of $ | ||||||||||||||
Net loans | ||||||||||||||
Goodwill | ||||||||||||||
Premises and equipment, net | ||||||||||||||
Other real estate owned ("OREO") | ||||||||||||||
Accrued interest receivable | ||||||||||||||
Investment in bank owned life insurance | ||||||||||||||
Core deposit intangible | ||||||||||||||
Net deferred tax assets | ||||||||||||||
Right of use assets - operating leases | ||||||||||||||
Other assets | ||||||||||||||
Total Assets | $ | $ | ||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||
Deposits | ||||||||||||||
Non-interest-bearing deposits | $ | $ | ||||||||||||
Interest-bearing deposits | ||||||||||||||
Total deposits | ||||||||||||||
Long-term debt | ||||||||||||||
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPs") | ||||||||||||||
Subordinated notes net of debt issuance costs - | ||||||||||||||
Lease liabilities - operating leases | ||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||
Total Liabilities | ||||||||||||||
Stockholders’ Equity | ||||||||||||||
Common stock - par value $ | ||||||||||||||
Additional paid in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive (loss) income | ( | |||||||||||||
Unearned ESOP shares | ( | ( | ||||||||||||
Total Stockholders’ Equity | ||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Interest and Dividend Income | ||||||||||||||||||||||||||
Loans, including fees | $ | $ | $ | $ | ||||||||||||||||||||||
Interest and dividends on investment securities | ||||||||||||||||||||||||||
Interest on deposits with banks | ||||||||||||||||||||||||||
Total Interest and Dividend Income | ||||||||||||||||||||||||||
Interest Expense | ||||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
Short-term borrowings | ||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||
Total Interest Expense | ||||||||||||||||||||||||||
Net Interest Income | ||||||||||||||||||||||||||
Provision for loan losses | ||||||||||||||||||||||||||
Net Interest Income After Provision For Loan Losses | ||||||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Loan appraisal, credit, and miscellaneous charges | ||||||||||||||||||||||||||
Gain on sale or disposition of assets | ||||||||||||||||||||||||||
Net gains on sale of investment securities | ||||||||||||||||||||||||||
Unrealized (loss) gain on equity securities | ( | ( | ||||||||||||||||||||||||
Provision for loss on premises and equipment held for sale | ( | ( | ||||||||||||||||||||||||
Income from bank owned life insurance | ||||||||||||||||||||||||||
Service charges | ||||||||||||||||||||||||||
Referral fee income | ||||||||||||||||||||||||||
Net gain on sale of loans held for sale | ||||||||||||||||||||||||||
Loss on sale of loans | ( | |||||||||||||||||||||||||
Total Noninterest Income | ||||||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | ||||||||||||||||||||||||||
Occupancy expense | ||||||||||||||||||||||||||
Advertising | ||||||||||||||||||||||||||
Data processing expense | ||||||||||||||||||||||||||
Professional fees | ||||||||||||||||||||||||||
Depreciation of equipment | ||||||||||||||||||||||||||
FDIC Insurance | ||||||||||||||||||||||||||
OREO valuation allowance and expenses | ||||||||||||||||||||||||||
Core deposit intangible amortization | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
Total Noninterest Expense | ||||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Net unrealized holding (loss) gain arising during period, net of tax (benefit) expenses of $( | ( | ( | ||||||||||||||||||||||||
Reclassification adjustment for gains included in net income, net of tax expense of $ | ||||||||||||||||||||||||||
Comprehensive Income | $ | $ | $ | $ |
(dollars in thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned ESOP Shares | Total | ||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net Income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unrealized holding loss on investment securities net of tax $( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividend at $ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividend reinvestment | — | ( | — | — | ||||||||||||||||||||||||||||||||||
Net change in fair market value below cost of leveraged ESOP shares released | — | — | — | — | ||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
(dollars in thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned ESOP Shares | Total | ||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net Income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unrealized holding gain on investment securities net of tax $ | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividend at $ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividend reinvestment | — | ( | — | — | ||||||||||||||||||||||||||||||||||
Net change in fair market value below cost of leveraged ESOP shares released | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ( | $ |
(dollars in thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unearned ESOP Shares | Total | ||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net Income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unrealized holding loss on investment securities net of tax $( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||
Cash dividend at $ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividend reinvestment | — | ( | — | — | — | |||||||||||||||||||||||||||||||||
Net change in fair market value below cost of leveraged ESOP shares released | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ |
(dollars in thousands) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unearned ESOP Shares | Total | ||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net Income | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unrealized holding gain on investment securities net of tax $ | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividend at $ | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||
Dividend reinvestment | — | ( | — | — | — | |||||||||||||||||||||||||||||||||
Net change in fair market value over cost of leveraged ESOP shares released | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | $ | $ | ( | $ |
Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2021 | 2020 | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Provision for loan losses | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Provision for loss on premises held for sale | ||||||||||||||
Loans originated for resale | ( | |||||||||||||
Proceeds from sale of loans originated for sale | ||||||||||||||
Net gains on sale of loans held for sale | ( | |||||||||||||
Loss on sale of loans | ||||||||||||||
Net (gain) loss on the sale of OREO | ( | |||||||||||||
Gains on sales of investment securities | ( | ( | ||||||||||||
Unrealized loss (gain) on equity securities | ( | |||||||||||||
Gain on sale or disposition of assets | ( | ( | ||||||||||||
Net amortization of premium/discount on investment securities | ||||||||||||||
Net accretion of merger accounting adjustments | ( | ( | ||||||||||||
Net amortization of debt issuance costs | ( | |||||||||||||
Amortization of core deposit intangible | ||||||||||||||
Amortization of right of use asset | ||||||||||||||
Net change in right of use assets and lease liabilities | ( | ( | ||||||||||||
Increase in OREO valuation allowance | ||||||||||||||
Increase in cash surrender value of bank owned life insurance | ( | ( | ||||||||||||
Decrease (increase) in deferred income tax benefit | ( | |||||||||||||
Decrease (increase) in accrued interest receivable | ( | |||||||||||||
Stock based compensation | ||||||||||||||
Net change due to deficit of fair market value over cost of leveraged ESOP shares released | ( | ( | ||||||||||||
Decrease (increase) in net deferred loan costs | ||||||||||||||
Increase (decrease) in accrued expenses and other liabilities | ||||||||||||||
(Increase) decrease in other assets | ( | ( | ||||||||||||
Net Cash Provided by Operating Activities | ||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||
Purchase of AFS investment securities | ( | ( | ||||||||||||
Proceeds from redemption or principal payments of AFS investment securities | ||||||||||||||
Proceeds from sale of AFS investment securities | ||||||||||||||
Net decrease (increase) of FHLB stock | ||||||||||||||
Net change in loans | ( | |||||||||||||
Purchase of premises and equipment | ( | ( | ||||||||||||
Proceeds from sale of OREO | ||||||||||||||
Proceeds from sale of loans | ||||||||||||||
Proceeds from disposal of asset | ||||||||||||||
Net Cash Used in Investing Activities | ( | ( |
Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2021 | 2020 | ||||||||||||
Cash Flows from Financing Activities | ||||||||||||||
Net increase in deposits | $ | $ | ||||||||||||
Proceeds from long-term debt | ||||||||||||||
Payments of long-term debt | ( | ( | ||||||||||||
Net increase in short term borrowings | ( | |||||||||||||
Payments of subordinated notes - 6.25% | ( | |||||||||||||
Dividends paid | ( | ( | ||||||||||||
Repurchase of common stock | ( | ( | ||||||||||||
Net Cash Provided by Financing Activities | ||||||||||||||
Increase in Cash and Cash Equivalents | ||||||||||||||
Cash and Cash Equivalents - January 1 | ||||||||||||||
Cash and Cash Equivalents - September 30 | $ | $ | ||||||||||||
Supplemental Disclosures of Cash Flow Information | ||||||||||||||
Cash paid during the period for | ||||||||||||||
Interest | $ | $ | ||||||||||||
Income taxes | $ | $ | ||||||||||||
Supplemental Schedule of Non-Cash Operating Activities | ||||||||||||||
Issuance of common stock for payment of compensation | $ | $ | ||||||||||||
Transfer from loans to OREO | $ | $ | ||||||||||||
September 30, 2021 | ||||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
Available-for-Sale ("AFS") Securities | ||||||||||||||||||||||||||
Asset-backed securities issued by GSEs and U.S. Agencies | ||||||||||||||||||||||||||
Residential Mortgage-Backed Securities ("MBS") | $ | $ | $ | $ | ||||||||||||||||||||||
Residential Collateralized Mortgage Obligations ("CMOs") | ||||||||||||||||||||||||||
U.S. Agency | ||||||||||||||||||||||||||
Asset-backed securities ("ABSs") issued by Others: | ||||||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||
Student Loan Trust ABSs | ||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||
U.S. government obligations | ||||||||||||||||||||||||||
Total AFS Securities | $ | $ | $ | $ | ||||||||||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||||||||||||||
CRA investment fund | $ | $ | — | $ | — | $ | ||||||||||||||||||||
Non-marketable equity securities | ||||||||||||||||||||||||||
Other equity securities | $ | $ | — | $ | — | $ | ||||||||||||||||||||
Total Investment Securities | $ | $ | $ | $ |
December 31, 2020 | ||||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
Available-for-Sale ("AFS") Securities | ||||||||||||||||||||||||||
Asset-backed securities issued by GSEs and U.S. Agencies | ||||||||||||||||||||||||||
Residential MBS | $ | $ | $ | $ | ||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||
ABSs issued by Others: | ||||||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||
Student Loan Trust ABSs | ||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||
U.S. government obligations | ||||||||||||||||||||||||||
Total AFS Securities | $ | $ | $ | $ | ||||||||||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||||||||||||||
CRA investment fund | $ | $ | — | $ | — | $ | ||||||||||||||||||||
Non-marketable equity securities | ||||||||||||||||||||||||||
Other equity securities | $ | $ | — | $ | — | $ | ||||||||||||||||||||
Total Investment Securities | $ | $ | $ | $ |
September 30, 2021 | Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
Asset-backed securities issued by GSEs and U.S. Agencies | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||||||||||||||
Student Loan Trust ABSs | ||||||||||||||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||||||||||||
U.S. government obligations | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
December 31, 2020 | Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
Asset-backed securities issued by GSEs and U.S. Agencies | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||||||||||||||
Student Loan Trust ABSs | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||||||||||||
Within one year | $ | $ | $ | $ | ||||||||||||||||||||||
Over one year through five years | ||||||||||||||||||||||||||
Over five years through ten years | ||||||||||||||||||||||||||
After ten years | ||||||||||||||||||||||||||
Total AFS securities | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(dollars in thousands) | Total | % of Gross Loans | Total | % of Gross Loans | ||||||||||||||||||||||
Portfolio Loans: | ||||||||||||||||||||||||||
Commercial real estate | $ | % | $ | % | ||||||||||||||||||||||
Residential first mortgages | % | % | ||||||||||||||||||||||||
Residential rentals | % | % | ||||||||||||||||||||||||
Construction and land development | % | % | ||||||||||||||||||||||||
Home equity and second mortgages | % | % | ||||||||||||||||||||||||
Commercial loans | % | % | ||||||||||||||||||||||||
Consumer loans | % | % | ||||||||||||||||||||||||
Commercial equipment | % | % | ||||||||||||||||||||||||
Gross portfolio loans | % | % | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Net deferred costs | % | % | ||||||||||||||||||||||||
Allowance for loan losses | ( | ( | % | ( | ( | % | ||||||||||||||||||||
( | ( | |||||||||||||||||||||||||
Net portfolio loans | ||||||||||||||||||||||||||
Gross U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans | ||||||||||||||||||||||||||
Net deferred fees | ( | ( | ||||||||||||||||||||||||
Net U.S. SBA PPP Loans | ||||||||||||||||||||||||||
Total net loans | $ | $ | ||||||||||||||||||||||||
Gross Loans | $ | $ |
September 30, 2021 | ||||||||||||||||||||
(dollars in thousands) | Non-accrual Delinquent Loans | Non-accrual Current Loans | Total Non-accrual Loans | |||||||||||||||||
Commercial real estate | $ | $ | $ | |||||||||||||||||
Residential first mortgages | ||||||||||||||||||||
Residential rentals | ||||||||||||||||||||
Home equity and second mortgages | ||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||
$ | $ | $ |
December 31, 2020 | ||||||||||||||||||||
(dollars in thousands) | Non-accrual Delinquent Loans | Non-accrual Current Loans | Total Non-accrual Loans | |||||||||||||||||
Commercial real estate | $ | $ | $ | |||||||||||||||||
Residential first mortgages | ||||||||||||||||||||
Residential rentals | ||||||||||||||||||||
Home equity and second mortgages | ||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||
$ | $ | $ |
September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 31-60 Days | 61-89 Days | 90 or Greater Days | Total Past Due | PCI Loans | Current | Total Loan Receivables | |||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||||||||||||||
Construction and land dev. | ||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mtg. | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||||||||||||||||||||
Total portfolio loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
U.S. SBA PPP loans | $ | $ | $ | $ | $ | $ | $ |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 31-60 Days | 61-89 Days | 90 or Greater Days | Total Past Due | PCI Loans | Current | Total Loan Receivables | |||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||||||||||||||
Construction and land dev. | ||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mtg. | ||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||||||||||||||||||||
Total portfolio loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
U.S. SBA PPP loans | $ | $ | $ | $ | $ | $ | $ |
September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Quarter Average Recorded Investment | Quarter Interest Income Recognized | YTD Average Recorded Investment | YTD Interest Income Recognized | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mtg. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Quarter Average Recorded Investment | Quarter Interest Income Recognized | YTD Average Recorded Investment | YTD Interest Income Recognized | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mtg. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | YTD Average Recorded Investment | YTD Interest Income Recognized | |||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mtg. | ||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(dollars in thousands) | Dollars | Number of Loans | Dollars | Number of Loans | ||||||||||||||||||||||
Commercial real estate | $ | $ | ||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||
Total TDRs | ||||||||||||||||||||||||||
Less: TDRs included in non-accrual loans | ( | ( | ||||||||||||||||||||||||
Total accrual TDR loans | $ | $ |
Three Months Ended | September 30, 2021 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provisions | Ending Balance | |||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||
Construction and land development | ||||||||||||||||||||||||||||||||
Home equity and second mortgages | ||||||||||||||||||||||||||||||||
Commercial loans | ( | |||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||
Commercial equipment | ||||||||||||||||||||||||||||||||
( | ||||||||||||||||||||||||||||||||
Purchase Credit Impaired | ||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Nine Months Ended | September 30, 2021 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provisions | Ending Balance | |||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Residential first mortgages | ( | ( | ||||||||||||||||||||||||||||||
Residential rentals | ( | |||||||||||||||||||||||||||||||
Construction and land development | ( | |||||||||||||||||||||||||||||||
Home equity and second mortgages | ( | |||||||||||||||||||||||||||||||
Commercial loans | ( | ( | ||||||||||||||||||||||||||||||
Consumer loans | ||||||||||||||||||||||||||||||||
Commercial equipment | ( | ( | ||||||||||||||||||||||||||||||
( | ||||||||||||||||||||||||||||||||
Purchase Credit Impaired | ||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ |
Three Months Ended | September 30, 2020 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provisions | Ending Balance | |||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||
Construction and land development | ||||||||||||||||||||||||||||||||
Home equity and second mortgages | ||||||||||||||||||||||||||||||||
Commercial loans | ( | |||||||||||||||||||||||||||||||
Consumer loans | ( | |||||||||||||||||||||||||||||||
Commercial equipment | ( | |||||||||||||||||||||||||||||||
( | ||||||||||||||||||||||||||||||||
Purchase Credit Impaired | ||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Nine Months Ended | September 30, 2020 | |||||||||||||||||||||||||||||||
(dollars in thousands) | Beginning Balance | Charge-offs | Recoveries | Provisions | Ending Balance | |||||||||||||||||||||||||||
Commercial real estate | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||
Construction and land development | ||||||||||||||||||||||||||||||||
Home equity and second mortgages | ( | |||||||||||||||||||||||||||||||
Commercial loans | ( | |||||||||||||||||||||||||||||||
Consumer loans | ( | |||||||||||||||||||||||||||||||
Commercial equipment | ( | |||||||||||||||||||||||||||||||
( | ||||||||||||||||||||||||||||||||
Purchase Credit Impaired | ||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ |
September 30, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Ending balance: individually evaluated for impairment | Ending balance: collectively evaluated for impairment | Purchase Credit Impaired | Total | Ending balance: individually evaluated for impairment | Ending balance: collectively evaluated for impairment | Purchase Credit Impaired | Total | Ending balance: individually evaluated for impairment | Ending balance: collectively evaluated for impairment | Purchase Credit Impaired | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential first mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mortgages | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential first mortgages | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential rentals | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity and second mortgages | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial equipment | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Commercial Real Estate | Construction and Land Dev. | Residential Rentals | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||||||||||||||||||||||||||||||
Unrated | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Commercial Loans | Commercial Equipment | Total Commercial Portfolios | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||||||||||||||||||||||||||||||
Unrated | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Non-Commercial Portfolios** | U.S. SBA PPP Loans | Total Loans Portfolios | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 9/30/2021 | 12/31/2020 | 6/30/2020 | 12/31/2019 | 9/30/2021 | 12/31/2020 | ||||||||||||||||||||||||||||||||
Unrated | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Pass | ||||||||||||||||||||||||||||||||||||||
Special mention | ||||||||||||||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||||||||||||||
Loss | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Residential First Mortgages | Home Equity and Second Mtg. | Consumer Loans | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | 9/30/2021 | 12/31/2020 | ||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Nonperforming | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Accretable yield, beginning of period | $ | $ | $ | $ | ||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||
Accretion | ( | ( | ( | ( | ||||||||||||||||||||||
Reclassification from nonaccretable difference | ||||||||||||||||||||||||||
Other changes, net | ( | ( | ||||||||||||||||||||||||
Accretable yield, end of period | $ | $ | $ | $ |
BY ACQUIRED AND NON-ACQUIRED | September 30, 2021 | % | December 31, 2020 | % | ||||||||||||||||||||||
Acquired loans - performing | $ | % | $ | % | ||||||||||||||||||||||
Acquired loans - PCI | % | % | ||||||||||||||||||||||||
Total acquired loans | % | % | ||||||||||||||||||||||||
U.S. SBA PPP loans | % | % | ||||||||||||||||||||||||
Non-acquired loans** | % | % | ||||||||||||||||||||||||
Gross loans | ||||||||||||||||||||||||||
Net deferred fees | ( | ( | % | ( | ( | % | ||||||||||||||||||||
Total loans, net of deferred fees | $ | $ |
(dollars in thousands) | As of September 30, 2021 | As of December 31, 2020 | ||||||||||||
Goodwill | $ | $ |
As of September 30, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Intangible Assets | Gross Carrying Amount | Accumulated Amortization | Net Intangible Assets | ||||||||||||||||||||||||||||||||
Core deposit intangible | $ | $ | ( | $ | $ | $ | ( | $ |
(dollars in thousands) | ||||||||
Remainder of 2021 | $ | |||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
$ |
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2020 | |||||||||||||||||
Balance at beginning of year | $ | $ | $ | |||||||||||||||||
Additions of underlying property | ||||||||||||||||||||
Disposals of underlying property | ( | ( | ( | |||||||||||||||||
Valuation allowance | ( | ( | ( | |||||||||||||||||
Balance at end of period | $ | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2021 | 2020 | ||||||||||||
Valuation allowance | $ | $ | ||||||||||||
Losses (gains) on dispositions | ( | |||||||||||||
Operating expenses | ||||||||||||||
$ | $ |
(dollars in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||
Balance | % | Balance | % | |||||||||||||||||||||||
Noninterest-bearing demand | $ | % | $ | % | ||||||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||
Demand | % | % | ||||||||||||||||||||||||
Money market deposits | % | % | ||||||||||||||||||||||||
Savings | % | % | ||||||||||||||||||||||||
Certificates of deposit | % | % | ||||||||||||||||||||||||
Total interest-bearing | % | % | ||||||||||||||||||||||||
Total Deposits | $ | % | $ | % |
(dollars in thousands) | September 30, 2021 | December 31, 2020 | ||||||||||||
Operating Leases | ||||||||||||||
Operating lease right of use asset, net | $ | $ | ||||||||||||
Operating lease liability | $ | $ | ||||||||||||
Weighted average remaining lease term | ||||||||||||||
Weighted average discount rate | % | % | ||||||||||||
Remaining lease term - min | ||||||||||||||
Remaining lease term - max |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Cash paid for lease liability | $ | $ | $ | $ |
(dollars in thousands) | As of September 30, 2021 | |||||||
Lease payments due: | ||||||||
Within one year | $ | |||||||
After one but within two years | ||||||||
After two but within three years | ||||||||
After three but within four years | ||||||||
After four but within five years | ||||||||
After five years | ||||||||
Total undiscounted cash flows | ||||||||
Discount on cash flows | ||||||||
Total lease liability | $ |
Regulatory Capital and Ratios | The Company | The Bank | ||||||||||||||||||||||||||||||
(dollars in thousands) | September 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
Common equity | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Goodwill | ( | ( | ( | ( | ||||||||||||||||||||||||||||
Core deposit intangible (net of deferred tax liability) | ( | ( | ( | ( | ||||||||||||||||||||||||||||
AOCI (gains) losses | ( | ( | ||||||||||||||||||||||||||||||
Common Equity Tier 1 Capital | ||||||||||||||||||||||||||||||||
TRUPs | — | — | ||||||||||||||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||||
Allowable reserve for credit losses and other Tier 2 adjustments | ||||||||||||||||||||||||||||||||
Subordinated notes | — | — | ||||||||||||||||||||||||||||||
Tier 2 Capital | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Risk-Weighted Assets ("RWA") | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Average Assets ("AA") | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Regulatory Min. Ratio + CCB (1) | ||||||||||||||||||||||||||||||||
Common Tier 1 Capital to RWA | % | % | % | % | % | |||||||||||||||||||||||||||
Tier 1 Capital to RWA | ||||||||||||||||||||||||||||||||
Tier 2 Capital to RWA | ||||||||||||||||||||||||||||||||
Tier 1 Capital to AA (Leverage) (2) | n/a |
(dollars in thousands) | September 30, 2021 | |||||||||||||||||||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
AFS securities | ||||||||||||||||||||||||||
Asset-backed securities issued by GSEs and U.S. Agencies | ||||||||||||||||||||||||||
MBS | $ | $ | $ | $ | ||||||||||||||||||||||
CMOs | ||||||||||||||||||||||||||
U.S. Agency | ||||||||||||||||||||||||||
Asset-backed securities issued by Others: | ||||||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||
Student Loan Trust ABSs | ||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||
U.S. government obligations | ||||||||||||||||||||||||||
Total AFS securities | $ | $ | $ | $ | ||||||||||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||||||||||||||
CRA investment fund | $ | $ | $ | $ | ||||||||||||||||||||||
Non-marketable equity securities | ||||||||||||||||||||||||||
Other equity securities | $ | $ | $ | $ |
(dollars in thousands) | December 31, 2020 | |||||||||||||||||||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
AFS securities | ||||||||||||||||||||||||||
Asset-backed securities issued by GSEs and U.S. Agencies | ||||||||||||||||||||||||||
MBS | $ | $ | $ | $ | ||||||||||||||||||||||
CMOs | ||||||||||||||||||||||||||
Asset-backed securities issued by others: | ||||||||||||||||||||||||||
Residential CMOs | ||||||||||||||||||||||||||
Student Loan Trust ABSs | ||||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||
U.S. government obligations | ||||||||||||||||||||||||||
Total AFS securities | $ | $ | $ | $ | ||||||||||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||||||||||||||
CRA investment fund | $ | $ | $ | $ | ||||||||||||||||||||||
Non-marketable equity securities | ||||||||||||||||||||||||||
Other equity securities | $ | $ | $ | $ |
(dollars in thousands) | September 30, 2021 | |||||||||||||||||||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Loans with impairment | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Total loans with impairment | ||||||||||||||||||||||||||
Other real estate owned | $ | $ | $ | $ |
(dollars in thousands) | December 31, 2020 | |||||||||||||||||||||||||
Description of Asset | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Loans with impairment | ||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | ||||||||||||||||||||||
Total loans with impairment | ||||||||||||||||||||||||||
Other real estate owned | $ | $ | $ | $ |
September 30, 2021 | Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Description of Asset | ||||||||||||||||||||||||||
Loans with impairment | $ | Third party appraisals and in-house real estate evaluations of fair value | Management discount for property type, selling costs and current market conditions | |||||||||||||||||||||||
Other real estate owned | $ | Third party appraisals and in-house real estate evaluations of fair value | Management discount for property type and current market conditions |
December 31, 2020 | Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Description of Asset | ||||||||||||||||||||||||||
Loans with impairment | $ | Third party appraisals and in-house real estate evaluations of fair value | Management discount for property type, selling costs and current market conditions | |||||||||||||||||||||||
Other real estate owned | $ | Third party appraisals and in-house real estate evaluations of fair value | Management discount for property type and current market conditions |
September 30, 2021 | Carrying Amount | Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||
Description of Asset (dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investment securities - AFS | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||||||||||||||||||||
Non-marketable equity securities in other financial institutions | ||||||||||||||||||||||||||||||||
FHLB Stock | ||||||||||||||||||||||||||||||||
Net loans receivable | ||||||||||||||||||||||||||||||||
Accrued Interest Receivable | ||||||||||||||||||||||||||||||||
Investment in BOLI | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Savings, NOW and money market accounts | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||
TRUPs | ||||||||||||||||||||||||||||||||
Subordinated notes |
December 31, 2020 | Carrying Amount | Fair Value | Fair Value Measurements | |||||||||||||||||||||||||||||
Description of Asset (dollars in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investment securities - AFS | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Equity securities carried at fair value through income | ||||||||||||||||||||||||||||||||
Non-marketable equity securities in other financial institutions | ||||||||||||||||||||||||||||||||
FHLB Stock | ||||||||||||||||||||||||||||||||
Net loans receivable | ||||||||||||||||||||||||||||||||
Accrued Interest Receivable | ||||||||||||||||||||||||||||||||
Investment in BOLI | ||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Savings, NOW and money market accounts | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Time deposits | ||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||
TRUPs | ||||||||||||||||||||||||||||||||
Subordinated notes |
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
(dollars in thousands) | Net Unrealized Gains And Losses | Net Unrealized Gains And Losses | Net Unrealized Gains And Losses | Net Unrealized Gains And Losses | ||||||||||||||||||||||
Beginning of period | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive (loss) gain, net of tax before reclassifications | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive gain | ||||||||||||||||||||||||||
Net other comprehensive (loss) income | ( | ( | ||||||||||||||||||||||||
End of period | $ | ( | $ | $ | ( | $ |
(dollars in thousands, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||||||||||||
Average number of common shares outstanding | ||||||||||||||||||||||||||
Dilutive effect of common stock equivalents | ||||||||||||||||||||||||||
Average number of shares used to calculate diluted EPS | ||||||||||||||||||||||||||
Anti-dilutive shares | ||||||||||||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ |
(dollars in thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Current income tax expense | $ | $ | $ | $ | ||||||||||||||||||||||
Deferred income tax expense (benefit) | ( | ( | ||||||||||||||||||||||||
Income tax expense as reported | $ | $ | $ | $ | ||||||||||||||||||||||
Effective tax rate | % | % | % | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Deposit account expenses | $ | $ | $ | $ | ||||||||||||||||||||||
Insurance | ||||||||||||||||||||||||||
ATM expenses | ||||||||||||||||||||||||||
Fraud losses | ||||||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||
$ | $ | $ | $ |
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
KEY OPERATING RATIOS | ||||||||||||||||||||||||||
Return on average assets ("ROAA") | 1.17 | % | 0.73 | % | 1.20 | % | 0.68 | % | ||||||||||||||||||
Return on average common equity ("ROACE") | 12.45 | 7.86 | 12.53 | 7.06 | ||||||||||||||||||||||
Return on Average Tangible Common Equity ("ROATCE")** | 13.41 | 8.65 | 13.53 | 7.85 | ||||||||||||||||||||||
Average total equity to average total assets | 9.40 | 9.33 | 9.58 | 9.66 | ||||||||||||||||||||||
Interest rate spread | 3.22 | 3.15 | 3.31 | 3.19 | ||||||||||||||||||||||
Net interest margin | 3.28 | 3.27 | 3.38 | 3.34 | ||||||||||||||||||||||
Cost of funds | 0.21 | 0.46 | 0.23 | 0.63 | ||||||||||||||||||||||
Cost of deposits | 0.12 | 0.37 | 0.15 | 0.55 | ||||||||||||||||||||||
Cost of debt | 3.19 | 1.16 | 2.73 | 1.42 | ||||||||||||||||||||||
Efficiency ratio(1) | 52.46 | 55.48 | 52.52 | 55.95 | ||||||||||||||||||||||
Non-interest expense to average assets | 1.73 | 1.82 | 1.82 | 1.95 | ||||||||||||||||||||||
Net operating expense to average assets(2) | 1.47 | 1.50 | 1.47 | 1.53 | ||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 132.54 | 125.40 | 130.95 | 125.14 | ||||||||||||||||||||||
Net charge-offs to average portfolio loans | (0.02) | — | 0.13 | 0.20 | ||||||||||||||||||||||
COMMON SHARE DATA | ||||||||||||||||||||||||||
Basic net income per common share | $ | 1.12 | $ | 0.64 | $ | 3.29 | $ | 1.70 | ||||||||||||||||||
Diluted net income per common share | 1.12 | 0.64 | 3.29 | 1.70 | ||||||||||||||||||||||
Cash dividends paid per common share | 0.150 | 0.125 | 0.425 | 0.375 | ||||||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 5,709,814 | 5,895,074 | 5,813,704 | 5,892,107 | ||||||||||||||||||||||
Diluted | 5,720,001 | 5,895,074 | 5,823,218 | 5,892,107 |
(Unaudited) | ||||||||||||||
(dollars in thousands, except per share amounts) | September 30, 2021 | December 31, 2020 | ||||||||||||
COMMON SHARE DATA | ||||||||||||||
Book value per common share | $ | 35.66 | $ | 33.54 | ||||||||||
Tangible book value per common share** | 33.57 | 31.45 | ||||||||||||
Common shares outstanding at end of period | 5,724,011 | 5,903,613 | ||||||||||||
OTHER DATA | ||||||||||||||
Full-time equivalent employees | 196 | 189 | ||||||||||||
Branches | 11 | 12 | ||||||||||||
Loan Production Offices | 4 | 4 | ||||||||||||
CAPITAL RATIOS | ||||||||||||||
Tier 1 capital to average assets | 9.41 | % | 9.56 | % | ||||||||||
Tier 1 common capital to risk-weighted assets | 11.89 | 11.47 | ||||||||||||
Tier 1 capital to risk-weighted assets | 12.64 | 12.23 | ||||||||||||
Total risk-based capital to risk-weighted assets | 14.99 | 14.69 | ||||||||||||
Common equity to assets | 8.96 | 9.77 | ||||||||||||
Tangible common equity to tangible assets ** | 8.48 | 9.22 |
(dollars in thousands, except per share amounts) | September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||||
Total assets | $ | 2,278,692 | $ | 2,026,439 | $ | 2,137,437 | ||||||||||||||
Less: intangible assets | ||||||||||||||||||||
Goodwill | 10,835 | 10,835 | 10,835 | |||||||||||||||||
Core deposit intangible | 1,147 | 1,527 | 1,666 | |||||||||||||||||
Total intangible assets | 11,982 | 12,362 | 12,501 | |||||||||||||||||
Tangible assets | $ | 2,266,710 | $ | 2,014,077 | $ | 2,124,936 | ||||||||||||||
Total common equity | $ | 204,128 | $ | 198,013 | $ | 192,850 | ||||||||||||||
Less: intangible assets | 11,982 | 12,362 | 12,501 | |||||||||||||||||
Tangible common equity | $ | 192,146 | $ | 185,651 | $ | 180,349 | ||||||||||||||
Common shares outstanding at end of period | 5,724,011 | 5,903,613 | 5,911,940 | |||||||||||||||||
Common equity to assets | 8.96 | % | 9.77 | % | 9.02 | % | ||||||||||||||
Tangible common equity to tangible assets | 8.48 | % | 9.22 | % | 8.49 | % | ||||||||||||||
Common book value per share | $ | 35.66 | $ | 33.54 | $ | 32.62 | ||||||||||||||
Tangible common book value per share | $ | 33.57 | $ | 31.45 | $ | 30.51 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income (as reported) | $ | 6,404 | $ | 3,799 | $ | 19,135 | $ | 9,997 | ||||||||||||||||||
ROACE | 12.45 | % | 7.86 | % | 12.53 | % | 7.06 | % | ||||||||||||||||||
Average common equity | $ | 205,723 | $ | 193,351 | $ | 203,597 | $ | 188,853 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Net income (as reported) | $ | 6,404 | $ | 3,799 | $ | 19,135 | $ | 9,997 | ||||||||||||||||||
Core deposit intangible amortization (net of tax) | 91 | 108 | 284 | 366 | ||||||||||||||||||||||
Net earnings applicable to common shareholders | $ | 6,495 | $ | 3,907 | $ | 19,419 | $ | 10,363 | ||||||||||||||||||
ROATCE | 13.41 | % | 8.65 | % | 13.53 | % | 7.85 | % | ||||||||||||||||||
Average tangible common equity | $ | 193,662 | $ | 180,755 | $ | 191,411 | $ | 176,108 |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Interest and dividend income | $ | 17,659 | $ | 17,483 | $ | 176 | 1.0 | % | ||||||||||||||||||
Interest expense | 1,050 | 2,115 | (1,065) | (50.4) | % | |||||||||||||||||||||
Net interest income | 16,609 | 15,368 | 1,241 | 8.1 | % | |||||||||||||||||||||
Provision for loan losses | — | 2,500 | (2,500) | (100.0) | % | |||||||||||||||||||||
Noninterest income | 1,400 | 1,666 | (266) | (16.0) | % | |||||||||||||||||||||
Noninterest expense | 9,447 | 9,451 | (4) | — | % | |||||||||||||||||||||
Income before income taxes | 8,562 | 5,083 | 3,479 | 68.4 | % | |||||||||||||||||||||
Income tax expense | 2,158 | 1,284 | 874 | 68.1 | % | |||||||||||||||||||||
Net income | $ | 6,404 | $ | 3,799 | $ | 2,605 | 68.6 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Interest and Dividend Income | ||||||||||||||||||||||||||
Loans, including fees | $ | 16,342 | $ | 16,176 | $ | 166 | 1.0 | % | ||||||||||||||||||
Taxable interest and dividends on investment securities | 1,296 | 1,269 | 27 | 2.1 | % | |||||||||||||||||||||
Interest on deposits with banks | 21 | 38 | (17) | (44.7) | % | |||||||||||||||||||||
Total Interest and Dividend Income | 17,659 | 17,483 | 176 | 1.0 | % | |||||||||||||||||||||
Interest Expenses | ||||||||||||||||||||||||||
Deposits | 594 | 1,534 | (940) | (61.3) | % | |||||||||||||||||||||
Short-term borrowings | — | 14 | (14) | (100.0) | % | |||||||||||||||||||||
Long-term debt | 456 | 567 | (111) | (19.6) | % | |||||||||||||||||||||
Total Interest Expenses | 1,050 | 2,115 | (1,065) | (50.4) | % | |||||||||||||||||||||
Net Interest Income | $ | 16,609 | $ | 15,368 | $ | 1,241 | 8.1 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Avg. Yield/Cost | Average Balance | Interest | Avg. Yield/Cost | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,094,089 | $ | 10,977 | 4.01 | % | $ | 1,006,436 | $ | 10,627 | 4.22 | % | ||||||||||||||||||||||||||
Residential first mortgages | 100,195 | 742 | 2.96 | % | 157,039 | 1,188 | 3.03 | % | ||||||||||||||||||||||||||||||
Residential rentals | 154,481 | 1,565 | 4.05 | % | 132,572 | 1,499 | 4.52 | % | ||||||||||||||||||||||||||||||
Construction and land development | 34,810 | 399 | 4.58 | % | 38,861 | 448 | 4.61 | % | ||||||||||||||||||||||||||||||
Home equity and second mortgages | 27,751 | 246 | 3.55 | % | 32,670 | 295 | 3.61 | % | ||||||||||||||||||||||||||||||
Commercial and equipment loans | 104,845 | 1,161 | 4.43 | % | 116,472 | 1,205 | 4.14 | % | ||||||||||||||||||||||||||||||
U.S. SBA PPP loans | 71,751 | 1,236 | 6.89 | % | 127,092 | 902 | 2.84 | % | ||||||||||||||||||||||||||||||
Consumer loans | 1,742 | 16 | 3.67 | % | 1,102 | 12 | 4.36 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses | (18,852) | — | — | (16,738) | — | — | % | |||||||||||||||||||||||||||||||
Loan portfolio (1) | 1,570,812 | 16,342 | 4.16 | % | 1,595,506 | 16,176 | 4.06 | % | ||||||||||||||||||||||||||||||
Taxable investment securities | 370,498 | 1,212 | 1.31 | % | 218,305 | 1,143 | 2.09 | % | ||||||||||||||||||||||||||||||
Nontaxable investment securities | 16,204 | 84 | 2.07 | % | 23,633 | 126 | 2.13 | % | ||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks | 36,516 | 16 | 0.18 | % | 24,713 | 25 | 0.40 | % | ||||||||||||||||||||||||||||||
Federal funds sold | 30,266 | 5 | 0.07 | % | 20,561 | 13 | 0.25 | % | ||||||||||||||||||||||||||||||
Interest-Earning Assets ("IEAs") | 2,024,296 | 17,659 | 3.49 | % | 1,882,718 | 17,483 | 3.71 | % | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 66,292 | 87,895 | ||||||||||||||||||||||||||||||||||||
Goodwill | 10,835 | 10,835 | ||||||||||||||||||||||||||||||||||||
Core deposit intangible | 1,226 | 1,761 | ||||||||||||||||||||||||||||||||||||
Other assets | 85,340 | 88,278 | ||||||||||||||||||||||||||||||||||||
Total Assets | $ | 2,187,989 | $ | 2,071,487 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 434,316 | $ | — | — | % | $ | 351,951 | $ | — | — | % | ||||||||||||||||||||||||||
Interest-bearing demand deposits | ||||||||||||||||||||||||||||||||||||||
Savings | 110,873 | 14 | 0.05 | % | 89,036 | 20 | 0.09 | % | ||||||||||||||||||||||||||||||
Interest-bearing demand and money market accounts | 1,017,642 | 175 | 0.07 | % | 848,981 | 313 | 0.15 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 341,672 | 405 | 0.47 | % | 363,296 | 1,201 | 1.32 | % | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 1,470,187 | 594 | 0.16 | % | 1,301,313 | 1,534 | 0.47 | % | ||||||||||||||||||||||||||||||
Total Deposits | 1,904,503 | 594 | 0.12 | % | 1,653,264 | 1,534 | 0.37 | % | ||||||||||||||||||||||||||||||
Long-term debt | 25,625 | 131 | 2.04 | % | 63,847 | 380 | 2.38 | % | ||||||||||||||||||||||||||||||
Short-term borrowings | — | — | — | % | 3,159 | 14 | 1.77 | % | ||||||||||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility ("PPPLF") Advance | — | — | — | % | 121,070 | 107 | 0.35 | % | ||||||||||||||||||||||||||||||
Subordinated Notes | 19,487 | 251 | 5.15 | % | — | — | — | % | ||||||||||||||||||||||||||||||
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPs") | 12,000 | 74 | 2.47 | % | 12,000 | 80 | 2.67 | % | ||||||||||||||||||||||||||||||
Total Debt | 57,112 | 456 | 3.19 | % | 200,076 | 581 | 1.16 | % | ||||||||||||||||||||||||||||||
Interest-Bearing Liabilities ("IBLs") | 1,527,299 | 1,050 | 0.27 | % | 1,501,389 | 2,115 | 0.56 | % | ||||||||||||||||||||||||||||||
Total Funds | 1,961,615 | 1,050 | 0.21 | % | 1,853,340 | 2,115 | 0.46 | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Avg. Yield/Cost | Average Balance | Interest | Avg. Yield/Cost | ||||||||||||||||||||||||||||||||
Other liabilities | 20,648 | 24,796 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 205,723 | 193,351 | ||||||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,187,986 | $ | 2,071,487 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 16,609 | $ | 15,368 | ||||||||||||||||||||||||||||||||||
Interest rate spread | 3.22 | % | 3.15 | % | ||||||||||||||||||||||||||||||||||
Net yield on interest-earning assets | 3.28 | % | 3.27 | % | ||||||||||||||||||||||||||||||||||
Average loans to average deposits | 82.48 | % | 96.51 | % | ||||||||||||||||||||||||||||||||||
Average transaction deposits to total average deposits** | 82.06 | % | 78.03 | % | ||||||||||||||||||||||||||||||||||
Ratio of average IEAs to average IBLs | 132.54 | % | 125.40 | % |
For the Three Months Ended September 30, 2021 compared to the Three Months Ended September 30, 2020 | ||||||||||||||||||||
(dollars in thousands) | Volume | Due to Rate | Total | |||||||||||||||||
Interest income: | ||||||||||||||||||||
Loan portfolio | $ | (257) | $ | 423 | $ | 166 | ||||||||||||||
Investment securities, federal funds sold and interest-bearing deposits | 482 | (472) | 10 | |||||||||||||||||
Total interest-earning assets | 225 | (49) | 176 | |||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Savings | 3 | (9) | (6) | |||||||||||||||||
Interest-bearing demand and money market accounts | 29 | (167) | (138) | |||||||||||||||||
Certificates of deposit | (26) | (770) | (796) | |||||||||||||||||
Long-term debt | (195) | (54) | (249) | |||||||||||||||||
Short-term borrowings | — | (14) | (14) | |||||||||||||||||
Paycheck Protection Program Liquidity Facility ("PPPLF") Advance | — | (107) | (107) | |||||||||||||||||
Subordinated Notes | 251 | — | 251 | |||||||||||||||||
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPs") | — | (6) | (6) | |||||||||||||||||
Total interest-bearing liabilities | 62 | (1,127) | (1,065) | |||||||||||||||||
Net change in net interest income | $ | 164 | $ | 1,078 | $ | 1,241 |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Loan appraisal, credit, and miscellaneous charges | $ | 29 | $ | 49 | $ | (20) | (40.8) | % | ||||||||||||||||||
Gain on sale or disposition of assets | — | 6 | (6) | (100.0) | % | |||||||||||||||||||||
Net gains on sale of investment securities | — | 229 | (229) | (100.0) | % | |||||||||||||||||||||
Unrealized gain (losses) on equity securities | (22) | — | (22) | — | % | |||||||||||||||||||||
Provision for loss on premises and equipment held for sale | (20) | — | (20) | — | % | |||||||||||||||||||||
Income from bank owned life insurance | 220 | 222 | (2) | (0.9) | % | |||||||||||||||||||||
Service charges | 987 | 839 | 148 | 17.6 | % | |||||||||||||||||||||
Referral fee income | 176 | 321 | (145) | (45.2) | % | |||||||||||||||||||||
Net gain on sale of loans held for sale | 30 | — | 30 | — | % | |||||||||||||||||||||
Total Noninterest Income | $ | 1,400 | $ | 1,666 | $ | (266) | (16.0) | % |
Three Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | $ | 5,650 | $ | 5,099 | $ | 551 | 10.8 | % | ||||||||||||||||||
OREO valuation allowance and expenses | 20 | 421 | (401) | (95.2) | % | |||||||||||||||||||||
Sub-total | 5,670 | 5,520 | 150 | 2.7 | % | |||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||||
Occupancy expense | 731 | 734 | (3) | (0.4) | % | |||||||||||||||||||||
Advertising | 145 | 129 | 16 | 12.4 | % | |||||||||||||||||||||
Data processing expense | 840 | 990 | (150) | (15.2) | % | |||||||||||||||||||||
Professional fees | 676 | 652 | 24 | 3.7 | % | |||||||||||||||||||||
Depreciation of premises and equipment | 137 | 142 | (5) | (3.5) | % | |||||||||||||||||||||
FDIC Insurance | 120 | 249 | (129) | (51.8) | % | |||||||||||||||||||||
Core deposit intangible amortization | 121 | 144 | (23) | (16.0) | % | |||||||||||||||||||||
Other expenses | 1,007 | 891 | 116 | 13.0 | % | |||||||||||||||||||||
Total Operating Expenses | 3,777 | 3,931 | (154) | (3.9) | % | |||||||||||||||||||||
Total Noninterest Expense | $ | 9,447 | $ | 9,451 | $ | (4) | — | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Interest and dividend income | $ | 52,781 | $ | 53,160 | $ | (379) | (0.7) | % | ||||||||||||||||||
Interest expense | 3,228 | 8,215 | (4,987) | (60.7) | % | |||||||||||||||||||||
Net interest income | 49,553 | 44,945 | 4,608 | 10.3 | % | |||||||||||||||||||||
Provision for loan losses | 586 | 10,100 | (9,514) | (94.2) | % | |||||||||||||||||||||
Noninterest income | 5,616 | 6,046 | (430) | (7.1) | % | |||||||||||||||||||||
Noninterest expense | 28,973 | 28,531 | 442 | 1.5 | % | |||||||||||||||||||||
Income before income taxes | 25,610 | 12,360 | 13,250 | 107.2 | % | |||||||||||||||||||||
Income tax expense | 6,475 | 2,363 | 4,112 | 174.0 | % | |||||||||||||||||||||
Net income | $ | 19,135 | $ | 9,997 | $ | 9,138 | 91.4 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Interest and Dividend Income | ||||||||||||||||||||||||||
Loans, including fees | $ | 49,254 | $ | 48,955 | $ | 299 | 0.6 | % | ||||||||||||||||||
Taxable interest and dividends on investment securities | 3,461 | 4,079 | (618) | (15.2) | % | |||||||||||||||||||||
Interest on deposits with banks | 66 | 126 | (60) | (47.6) | % | |||||||||||||||||||||
Total Interest and Dividend Income | 52,781 | 53,160 | (379) | (0.7) | % | |||||||||||||||||||||
Interest Expenses | ||||||||||||||||||||||||||
Deposits | 2,036 | 6,515 | (4,479) | (68.7) | % | |||||||||||||||||||||
Short-term borrowings | — | 111 | (111) | (100.0) | % | |||||||||||||||||||||
Long-term debt | 1,192 | 1,589 | (397) | (25.0) | % | |||||||||||||||||||||
Total Interest Expenses | 3,228 | 8,215 | (4,987) | (60.7) | % | |||||||||||||||||||||
Net Interest Income | $ | 49,553 | $ | 44,945 | $ | 4,608 | 10.3 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Avg. Yield/Cost | Average Balance | Interest | Avg. Yield/Cost | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,081,350 | $ | 32,625 | 4.02 | % | $ | 981,944 | $ | 32,406 | 4.40 | % | ||||||||||||||||||||||||||
Residential first mortgages | 111,401 | 2,494 | 2.99 | % | 165,632 | 4,098 | 3.30 | % | ||||||||||||||||||||||||||||||
Residential rentals | 144,316 | 4,421 | 4.08 | % | 131,839 | 4,373 | 4.42 | % | ||||||||||||||||||||||||||||||
Construction and land development | 36,401 | 1,226 | 4.49 | % | 38,608 | 1,360 | 4.70 | % | ||||||||||||||||||||||||||||||
Home equity and second mortgages | 28,689 | 745 | 3.46 | % | 34,604 | 1,066 | 4.11 | % | ||||||||||||||||||||||||||||||
Commercial and equipment loans | 104,747 | 3,339 | 4.25 | % | 119,927 | 4,219 | 4.69 | % | ||||||||||||||||||||||||||||||
U.S. SBA PPP loans | 97,231 | 4,356 | 5.97 | % | 76,418 | 1,395 | 2.43 | % | ||||||||||||||||||||||||||||||
Consumer loans | 1,497 | 48 | 4.28 | % | 1,113 | 38 | 4.55 | % | ||||||||||||||||||||||||||||||
Allowance for loan losses | (18,908) | — | — | (14,521) | — | — | % | |||||||||||||||||||||||||||||||
Loan portfolio (1) | 1,586,724 | 49,254 | 4.14 | % | 1,535,564 | 48,955 | 4.25 | % | ||||||||||||||||||||||||||||||
Taxable investment securities | 292,625 | 3,182 | 1.45 | % | 215,223 | 3,854 | 2.39 | % | ||||||||||||||||||||||||||||||
Non-taxable investment securities | 17,517 | 279 | 2.12 | % | 12,144 | 225 | 2.47 | % | ||||||||||||||||||||||||||||||
Interest bearing deposits in other banks | 30,183 | 44 | 0.19 | % | 16,246 | 87 | 0.71 | % | ||||||||||||||||||||||||||||||
Federal funds sold | 27,964 | 22 | 0.10 | % | 13,520 | 39 | 0.38 | % | ||||||||||||||||||||||||||||||
Interest-Earning Assets ("IEAs") | 1,955,013 | 52,781 | 3.60 | % | 1,792,697 | 53,160 | 3.95 | % | ||||||||||||||||||||||||||||||
Cash and cash equivalents | 71,559 | 61,832 | ||||||||||||||||||||||||||||||||||||
Goodwill | 10,835 | 10,835 | ||||||||||||||||||||||||||||||||||||
Core deposit intangible | 1,351 | 1,910 | ||||||||||||||||||||||||||||||||||||
Other assets | 86,838 | 87,973 | ||||||||||||||||||||||||||||||||||||
Total Assets | $ | 2,125,596 | $ | 1,955,247 | ||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 407,375 | $ | — | — | % | $ | 310,451 | $ | — | — | % | ||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||
Savings | 106,190 | 40 | 0.05 | % | 80,412 | 68 | 0.11 | % | ||||||||||||||||||||||||||||||
Interest-bearing demand and money market accounts | 982,704 | 555 | 0.08 | % | 816,975 | 2,118 | 0.35 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 345,821 | 1,441 | 0.56 | % | 375,606 | 4,329 | 1.54 | % | ||||||||||||||||||||||||||||||
Total Interest-bearing deposits | 1,434,715 | 2,036 | 0.19 | % | 1,272,993 | 6,515 | 0.68 | % | ||||||||||||||||||||||||||||||
Total Deposits | 1,842,090 | 2,036 | 0.15 | % | 1,583,444 | 6,515 | 0.55 | % | ||||||||||||||||||||||||||||||
Long-term debt | 26,723 | 213 | 1.06 | % | 62,101 | 916 | 1.97 | % | ||||||||||||||||||||||||||||||
Short-term borrowings | — | — | — | % | 10,895 | 111 | 1.36 | % | ||||||||||||||||||||||||||||||
Paycheck Protection Program Liquidity Facility ("PPPLF") Advance | — | — | — | % | 69,656 | 182 | 0.35 | % | ||||||||||||||||||||||||||||||
Subordinated Notes | 19,483 | 754 | 5.16 | % | 4,953 | 184 | 4.95 | % | ||||||||||||||||||||||||||||||
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPs") | 12,000 | 225 | 2.50 | % | 12,000 | 307 | 3.41 | % | ||||||||||||||||||||||||||||||
Total debt | 58,206 | 1,192 | 2.73 | % | 159,605 | 1,700 | 1.42 | % | ||||||||||||||||||||||||||||||
Total Interest-Bearing Liabilities ("IBLs") | 1,492,921 | 3,228 | 0.29 | % | 1,432,598 | 8,215 | 0.76 | % | ||||||||||||||||||||||||||||||
Total funds | 1,900,296 | 3,228 | 0.23 | % | 1,743,049 | 8,215 | 0.63 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Avg. Yield/Cost | Average Balance | Interest | Avg. Yield/Cost | ||||||||||||||||||||||||||||||||
Other liabilities | 21,703 | 23,345 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 203,597 | 188,853 | ||||||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,125,596 | $ | 1,955,247 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 49,553 | $ | 44,945 | ||||||||||||||||||||||||||||||||||
Interest rate spread | 3.31 | % | 3.19 | % | ||||||||||||||||||||||||||||||||||
Net yield on interest-earning assets | 3.38 | % | 3.34 | % | ||||||||||||||||||||||||||||||||||
Average loans to average deposits | 86.14 | % | 96.98 | % | ||||||||||||||||||||||||||||||||||
Average transaction deposits to total average deposits** | 81.23 | % | 76.28 | % | ||||||||||||||||||||||||||||||||||
Ratio of average IEAs to average IBLs | 130.95 | % | 125.14 | % | ||||||||||||||||||||||||||||||||||
Cost of funds | 0.23 | % | 0.63 | % | ||||||||||||||||||||||||||||||||||
Cost of deposits | 0.15 | % | 0.55 | % | ||||||||||||||||||||||||||||||||||
Cost of debt | 2.73 | % | 1.42 | % |
For the Nine Months Ended September 30, 2021 compared to the Nine Months Ended September 30, 2020 | ||||||||||||||||||||
(dollars in thousands) | Volume | Due to Rate | Total | |||||||||||||||||
Interest income: | ||||||||||||||||||||
Loan portfolio | $ | 1,588 | $ | (1,289) | $ | 299 | ||||||||||||||
Investment securities, federal funds sold and interest-bearing deposits | 1,067 | (1,745) | (678) | |||||||||||||||||
Total interest-earning assets | 2,655 | (3,034) | (379) | |||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Savings | 10 | (38) | (28) | |||||||||||||||||
Interest-bearing demand and money market accounts | 94 | (1,657) | (1,563) | |||||||||||||||||
Certificates of deposit | (124) | (2,764) | (2,888) | |||||||||||||||||
Long-term debt | (282) | (421) | (703) | |||||||||||||||||
Short-term borrowings | — | (111) | (111) | |||||||||||||||||
PPPLF Advance | — | (182) | (182) | |||||||||||||||||
Subordinated notes | 562 | 8 | 570 | |||||||||||||||||
Guaranteed preferred beneficial interest in junior subordinated debentures | — | (82) | (82) | |||||||||||||||||
Total interest-bearing liabilities | 260 | (5,247) | (4,987) | |||||||||||||||||
Net change in net interest income | $ | 2,396 | $ | 2,213 | $ | 4,608 |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Noninterest Income | ||||||||||||||||||||||||||
Loan appraisal, credit, and miscellaneous charges | $ | 271 | $ | 98 | $ | 173 | 176.5 | % | ||||||||||||||||||
Gain on sale or disposition of assets | 68 | 6 | 62 | 1,033.3 | % | |||||||||||||||||||||
Net gains on sale of investment securities | 586 | 670 | (84) | (12.5) | % | |||||||||||||||||||||
Unrealized (loss) gain on equity securities | (94) | 115 | (209) | (182) | % | |||||||||||||||||||||
Provision for loss on premises and equipment held for sale | (20) | — | (20) | — | % | |||||||||||||||||||||
Income from bank owned life insurance | 652 | 661 | (9) | (1.4) | % | |||||||||||||||||||||
Service charges | 3,066 | 2,530 | 536 | 21.2 | % | |||||||||||||||||||||
Referral fee income | 1,248 | 1,966 | (718) | (36.5) | % | |||||||||||||||||||||
Net gain on sale of loans held for sale | 30 | — | 30 | — | % | |||||||||||||||||||||
Loss on sale of loans | (191) | — | (191) | — | % | |||||||||||||||||||||
Total Noninterest Income | $ | 5,616 | $ | 6,046 | $ | (430) | (7.1) | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ Change | % Change | ||||||||||||||||||||||
Noninterest Expense | ||||||||||||||||||||||||||
Compensation and benefits | $ | 15,770 | $ | 15,001 | $ | 769 | 5.1 | % | ||||||||||||||||||
OREO valuation allowance and expenses | 689 | 2,303 | (1,614) | (70.1) | % | |||||||||||||||||||||
Sub-total | 16,459 | 17,304 | (845) | (4.9) | % | |||||||||||||||||||||
Operating Expense | ||||||||||||||||||||||||||
Occupancy expense | 2,180 | 2,204 | (24) | (1.1) | % | |||||||||||||||||||||
Advertising | 372 | 380 | (8) | (2.1) | % | |||||||||||||||||||||
Data processing expense | 2,766 | 2,842 | (76) | (2.7) | % | |||||||||||||||||||||
Professional fees | 1,920 | 1,755 | 165 | 9.4 | % | |||||||||||||||||||||
Depreciation of premises and equipment | 419 | 451 | (32) | (7.1) | % | |||||||||||||||||||||
FDIC Insurance | 512 | 679 | (167) | (24.6) | % | |||||||||||||||||||||
Core deposit intangible amortization | 380 | 452 | (72) | (15.9) | % | |||||||||||||||||||||
Other | 3,965 | 2,464 | 1,501 | 60.9 | % | |||||||||||||||||||||
Total Operating Expense | 12,514 | 11,227 | 1,287 | 11.5 | % | |||||||||||||||||||||
Total Noninterest Expense | $ | 28,973 | $ | 28,531 | $ | 442 | 1.5 | % |
Nine Months Ended September 30, 2020 | ||||||||||||||
(dollars in thousands) | Tax Provision | Effective Tax Rate | ||||||||||||
Income tax apportionment adjustment | $ | (743) | (6.0) | % | ||||||||||
Income taxes before apportionment adjustment | 3,106 | 25.1 | % | |||||||||||
Income tax expense as reported | $ | 2,363 | 19.1 | % | ||||||||||
Income before income taxes | $ | 12,360 |
(dollars in thousands) | September 30, 2021 | December 31, 2020 | $ Change | % Change | ||||||||||||||||||||||
Cash and due from banks | $ | 112,314 | $ | 56,887 | $ | 55,427 | 97.4 | % | ||||||||||||||||||
Interest-bearing deposits with banks | 34,929 | 20,178 | 14,751 | 73.1 | % | |||||||||||||||||||||
Securities available for sale ("AFS"), at fair value | 456,664 | 246,105 | 210,559 | 85.6 | % | |||||||||||||||||||||
Equity securities carried at fair value through income | 4,805 | 4,855 | (50) | (1.0) | % | |||||||||||||||||||||
Non-marketable equity securities held in other financial institutions | 207 | 207 | — | — | % | |||||||||||||||||||||
FHLB stock - at cost | 1,472 | 2,777 | (1,305) | (47.0) | % | |||||||||||||||||||||
Net Loans | 1,569,644 | 1,594,075 | (24,431) | (1.5) | % | |||||||||||||||||||||
Goodwill | 10,835 | 10,835 | — | — | % | |||||||||||||||||||||
Premises and equipment, net | 21,795 | 20,271 | 1,524 | 7.5 | % | |||||||||||||||||||||
Other real estate owned ("OREO") | 1,536 | 3,109 | (1,573) | (50.6) | % | |||||||||||||||||||||
Accrued interest receivable | 6,045 | 8,717 | (2,672) | (30.7) | % | |||||||||||||||||||||
Investment in bank owned life insurance | 38,713 | 38,061 | 652 | 1.7 | % | |||||||||||||||||||||
Core deposit intangible | 1,147 | 1,527 | (380) | (24.9) | % | |||||||||||||||||||||
Net deferred tax assets | 8,790 | 7,909 | 881 | 11.1 | % | |||||||||||||||||||||
Right of use assets, net operating leases | 6,215 | 7,831 | (1,616) | (20.6) | % | |||||||||||||||||||||
Other assets | 3,581 | 3,095 | 486 | 15.7 | % | |||||||||||||||||||||
Total Assets | $ | 2,278,692 | $ | 2,026,439 | $ | 252,253 | 12.4 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||
Credit Rating | Amount | Credit Rating | Amount | |||||||||||||||||
(dollars in thousands) | (dollars in thousands) | |||||||||||||||||||
AAA | $ | 422,682 | AAA | $ | 220,757 | |||||||||||||||
AA | 33,739 | AA | 25,059 | |||||||||||||||||
A | 243 | A | 289 | |||||||||||||||||
Total | $ | 456,664 | Total | $ | 246,105 |
(dollars in thousands) | September 30, 2021 | % | December 31, 2020 | % | $ Change | Annualized % Change | ||||||||||||||||||||||||||||||||
BY LOAN TYPE | ||||||||||||||||||||||||||||||||||||||
Portfolio Loans: | ||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,088,636 | 71.02 | % | $ | 1,049,147 | 69.75 | % | $ | 39,489 | 5.0 | % | ||||||||||||||||||||||||||
Residential first mortgages | 96,835 | 6.32 | % | 133,779 | 8.89 | % | (36,944) | (36.8) | % | |||||||||||||||||||||||||||||
Residential rentals | 172,082 | 11.22 | % | 139,059 | 9.24 | % | 33,023 | 31.7 | % | |||||||||||||||||||||||||||||
Construction and land development | 37,139 | 2.42 | % | 37,520 | 2.49 | % | (381) | (1.4) | % | |||||||||||||||||||||||||||||
Home equity and second mortgages | 26,518 | 1.73 | % | 29,129 | 1.94 | % | (2,611) | (12.0) | % | |||||||||||||||||||||||||||||
Commercial loans | 48,327 | 3.15 | % | 52,921 | 3.52 | % | (4,594) | (11.6) | % | |||||||||||||||||||||||||||||
Consumer loans | 2,168 | 0.14 | % | 1,027 | 0.07 | % | 1,141 | 148.1 | % | |||||||||||||||||||||||||||||
Commercial equipment | 61,346 | 4.00 | % | 61,693 | 4.10 | % | (347) | (0.8) | % | |||||||||||||||||||||||||||||
Gross portfolio loans | 1,533,051 | 100.00 | % | 1,504,275 | 100.00 | % | 28,776 | 2.6 | % | |||||||||||||||||||||||||||||
Net deferred costs | 365 | 0.01 | % | 1,264 | 0.08 | % | (899) | (94.8) | % | |||||||||||||||||||||||||||||
Allowance for loan losses | (18,579) | (1.21) | % | (19,424) | (1.29) | % | 845 | (5.8) | % | |||||||||||||||||||||||||||||
(18,214) | (18,160) | (54) | 0.4 | % | ||||||||||||||||||||||||||||||||||
Net portfolio loans | 1,514,837 | 1,486,115 | 28,722 | 2.6 | % | |||||||||||||||||||||||||||||||||
Gross U.S. Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans | 56,424 | $ | 110,320 | (53,896) | (65.1) | % | ||||||||||||||||||||||||||||||||
Net deferred fees | (1,617) | (2,360) | 743 | (42.0) | % | |||||||||||||||||||||||||||||||||
Net U.S. SBA PPP Loans | 54,807 | 107,960 | (53,153) | (65.7) | % | |||||||||||||||||||||||||||||||||
Total net loans | $ | 1,569,644 | $ | 1,594,075 | $ | (24,431) | (2.0) | % | ||||||||||||||||||||||||||||||
Gross Loans | $ | 1,589,475 | $ | 1,614,595 | $ | (25,120) | (2.1) | % |
(Unaudited) | ||||||||||||||||||||||||||
(dollars in thousands, except per share amounts) | September 30, 2021 | December 31, 2020 | $ Change | % Change | ||||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||
Total assets | $ | 2,278,692 | $ | 2,026,439 | $ | 252,253 | 12.4 | % | ||||||||||||||||||
Gross portfolio loans(1) | 1,533,051 | 1,504,275 | 28,776 | 1.9 | ||||||||||||||||||||||
Classified Assets | 6,663 | 22,358 | (15,695) | (70.2) | ||||||||||||||||||||||
Allowance for loan losses | 18,579 | 19,424 | (845) | (4.4) | ||||||||||||||||||||||
Past due loans - 31 to 89 days | 189 | 179 | 10 | 5.6 | ||||||||||||||||||||||
Past due loans >=90 days | 1,400 | 11,965 | (10,565) | (88.3) | ||||||||||||||||||||||
Total past due (delinquency) loans | 1,589 | 12,144 | (10,555) | (86.9) | ||||||||||||||||||||||
Non-accrual loans(2) | 5,160 | 18,222 | (13,062) | (71.7) | ||||||||||||||||||||||
Accruing troubled debt restructures (TDRs)(3) | 455 | 572 | (117) | (20.5) | ||||||||||||||||||||||
Other real estate owned (OREO) | 1,536 | 3,109 | (1,573) | (50.6) | ||||||||||||||||||||||
Non-accrual loans, OREO and TDRs | $ | 7,151 | $ | 21,903 | $ | (14,752) | (67.4) | % | ||||||||||||||||||
ASSET QUALITY RATIOS(4) | ||||||||||||||||||||||||||
Classified assets to total assets | 0.29 | % | 1.10 | % | ||||||||||||||||||||||
Classified assets to risk-based capital | 2.75 | 9.61 | ||||||||||||||||||||||||
Allowance for loan losses to total loans | 1.21 | 1.29 | ||||||||||||||||||||||||
Allowance for loan losses to non-accrual loans | 360.06 | 106.60 | ||||||||||||||||||||||||
Past due loans - 31 to 89 days to total loans | 0.01 | 0.01 | ||||||||||||||||||||||||
Past due loans >=90 days to total loans | 0.09 | 0.80 | ||||||||||||||||||||||||
Total past due (delinquency) to total loans | 0.10 | 0.81 | ||||||||||||||||||||||||
Non-accrual loans to total loans | 0.34 | 1.21 | ||||||||||||||||||||||||
Non-accrual loans and TDRs to total loans | 0.37 | 1.25 | ||||||||||||||||||||||||
Non-accrual loans and OREO to total assets | 0.29 | 1.05 | ||||||||||||||||||||||||
Non-accrual loans and OREO to total loans and OREO | 0.44 | 1.42 | ||||||||||||||||||||||||
Non-accrual loans, OREO and TDRs to total assets | 0.31 | 1.08 |
Three Months Ended September 30, | Nine Months Ended September 30, | Year Ended | ||||||||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2020 | 2021 | 2020 | December 31, 2020 | |||||||||||||||||||||||||||
Beginning of period | $ | 18,516 | $ | 16,318 | $ | 19,424 | $ | 10,942 | $ | 10,942 | ||||||||||||||||||||||
Charge-offs | (491) | (65) | (2,037) | (2,328) | (2,358) | |||||||||||||||||||||||||||
Recoveries | 554 | 76 | 606 | 115 | 140 | |||||||||||||||||||||||||||
Net charge-offs | 63 | 11 | (1,431) | (2,213) | (2,218) | |||||||||||||||||||||||||||
Provision for loan losses | — | 2,500 | 534 | 10,100 | 10,700 | |||||||||||||||||||||||||||
End of period | $ | 18,579 | $ | 18,829 | $ | 18,527 | $ | 18,829 | $ | 19,424 | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.02 | % | — | % | (0.38) | % | (0.61) | % | (0.61) | % |
September 30, 2021 | December 31, 2020 | |||||||||||||
General allowance | $ | 18,204 | $ | 18,068 | ||||||||||
Specific allowance | 323 | 1,356 | ||||||||||||
Total allowance to non-acquired loans | 18,527 | 19,424 | ||||||||||||
PCI loans | 52 | — | ||||||||||||
Total allowance to gross portfolio loans with PCI loans | $ | 18,579 | $ | 19,424 | ||||||||||
General allowance | 1.19 | % | 1.20 | % | ||||||||||
Specific allowance | 0.02 | % | 0.09 | % | ||||||||||
Total allowance to gross portfolio loans(1) | 1.21 | % | 1.29 | % | ||||||||||
Total allowance to gross portfolio loans with PCI loans(2) | 1.21 | % | — | % | ||||||||||
Allowance to non-acquired gross loans | 1.25 | % | 1.35 | % | ||||||||||
Total acquired loans | $ | 50,486 | $ | 60,977 | ||||||||||
Non-acquired loans(3) | $ | 1,482,565 | $ | 1,443,298 | ||||||||||
Gross portfolio loans | $ | 1,533,051 | $ | 1,504,275 |
COVID-19 Deferred Loans | (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | Accrual Loans | Non-Accrual Loans | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Loan Balances | % of Deferred Loans | % of Gross Portfolio Loans | Loan Balances | Number of Loans | Loan Balances | Number of Loans | |||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 3,422 | 100.00 | % | 0.22 | % | $ | 2,469 | 2 | $ | 954 | 1 | ||||||||||||||||||||||||||||||||
Total | $ | 3,422 | 100.00 | % | 0.22 | % | $ | 2,469 | 2 | $ | 954 | 1 |
COVID-19 Deferred Loans - Next Payment Due by Month | (Unaudited) | |||||||||||||||||||
(dollars in thousands) | Loan Balances | % | Number of Loans | |||||||||||||||||
December-21 | $ | 3,422 | 100.00 | % | 3 | |||||||||||||||
Total | $ | 3,422 | 100.00 | % | 3 |
COVID-19 Deferred Loans by NAICS Industry | (Unaudited) | |||||||||||||
(dollars in thousands) | September 30, 2021 | Number of Loans | ||||||||||||
Arts, Entertainment, and Recreation | $ | 3,422 | 3 | |||||||||||
Total | $ | 3,422 | 3 |
As of | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 12/31/2019 | 12/31/2018 | 12/31/2017 | |||||||||||||||||||||||||||||||||||||
Classified loans | ||||||||||||||||||||||||||||||||||||||||||||
Substandard | $ | 5,127 | $ | 13,382 | $ | 13,816 | $ | 19,249 | $ | 26,863 | $ | 32,226 | $ | 40,306 | ||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Total classified loans | 5,127 | 13,382 | 13,816 | 19,249 | 26,863 | 32,226 | 40,306 | |||||||||||||||||||||||||||||||||||||
Special mention loans | 780 | 4,524 | 7,769 | 7,672 | — | — | 96 | |||||||||||||||||||||||||||||||||||||
Total classified and special mention loans | 5,907 | 17,906 | 21,585 | 26,921 | 26,863 | 32,226 | 40,402 | |||||||||||||||||||||||||||||||||||||
Classified loans | 5,127 | 13,382 | 13,816 | 19,249 | 26,863 | 32,226 | 40,306 | |||||||||||||||||||||||||||||||||||||
Classified securities | — | — | — | — | — | 482 | 651 | |||||||||||||||||||||||||||||||||||||
Other real estate owned | 1,536 | 1,536 | 2,329 | 3,109 | 7,773 | 8,111 | 9,341 | |||||||||||||||||||||||||||||||||||||
Total classified assets | $ | 6,663 | $ | 14,918 | $ | 16,145 | $ | 22,358 | $ | 34,636 | $ | 40,819 | $ | 50,298 | ||||||||||||||||||||||||||||||
Total classified assets as a percentage of total assets | 0.29 | % | 0.68 | % | 0.75 | % | 1.10 | % | 1.93 | % | 2.42 | % | 3.58 | % | ||||||||||||||||||||||||||||||
Total classified assets as a percentage of Risk Based Capital | 2.75 | % | 6.24 | % | 6.81 | % | 9.61 | % | 16.21 | % | 21.54 | % | 32.10 | % |
(dollars in thousands) | September 30, 2021 | December 31, 2020 | $ Change | % Change | ||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||||
Non-interest-bearing deposits | $ | 432,606 | $ | 362,079 | $ | 70,527 | 19.5 | % | ||||||||||||||||||
Interest-bearing deposits | 1,572,001 | 1,383,523 | 188,478 | 13.6 | % | |||||||||||||||||||||
Total deposits | 2,004,607 | 1,745,602 | 259,005 | 14.8 | % | |||||||||||||||||||||
Long-term debt | 12,249 | 27,302 | (15,053) | (55.1) | % | |||||||||||||||||||||
Guaranteed preferred beneficial interest in junior subordinated debentures ("TRUPs") | 12,000 | 12,000 | — | — | % | |||||||||||||||||||||
Subordinated notes net of debt issuance costs - 4.75% | 19,496 | 19,526 | (30) | — | % | |||||||||||||||||||||
Lease liabilities - operating leases | 6,418 | 8,088 | (1,670) | (20.6) | % | |||||||||||||||||||||
Accrued expenses and other liabilities | 19,794 | 15,908 | 3,886 | 24.4 | % | |||||||||||||||||||||
Total Liabilities | $ | 2,074,564 | $ | 1,828,426 | $ | 246,138 | 13.5 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(dollars in thousands) | Balance | % | Balance | % | ||||||||||||||||||||||
Noninterest-bearing demand | $ | 432,606 | 21.58 | % | $ | 362,079 | 20.74 | % | ||||||||||||||||||
Interest-bearing: | ||||||||||||||||||||||||||
Demand | 764,482 | 38.14 | % | 590,159 | 33.81 | % | ||||||||||||||||||||
Money market deposits | 355,582 | 17.74 | % | 340,725 | 19.52 | % | ||||||||||||||||||||
Savings | 112,282 | 5.60 | % | 98,783 | 5.66 | % | ||||||||||||||||||||
Certificates of deposit | 339,655 | 16.94 | % | 353,856 | 20.27 | % | ||||||||||||||||||||
Total interest-bearing | 1,572,001 | 78.42 | % | 1,383,523 | 79.26 | % | ||||||||||||||||||||
Total Deposits | $ | 2,004,607 | 100.00 | % | $ | 1,745,602 | 100.00 | % | ||||||||||||||||||
Transaction accounts | $ | 1,664,952 | 83.06 | % | $ | 1,391,746 | 79.73 | % |
(dollars in thousands) | September 30, 2021 | December 31, 2020 | $ Change | % Change | ||||||||||||||||||||||
Common Stock at par of $0.01 | $ | 57 | $ | 59 | $ | (2) | (3.39) | % | ||||||||||||||||||
Additional paid in capital | 96,649 | 95,965 | 684 | 0.71 | % | |||||||||||||||||||||
Retained earnings | 107,890 | 97,944 | 9,946 | 10.15 | % | |||||||||||||||||||||
Accumulated other comprehensive (loss) income | (9) | 4,504 | (4,513) | (100.20) | % | |||||||||||||||||||||
Unearned ESOP shares | (459) | (459) | — | — | % | |||||||||||||||||||||
Total Stockholders’ Equity | $ | 204,128 | $ | 198,013 | $ | 6,115 | 3.09 | % |
Shock in Basis Points | Net Interest Income | Economic Value of Equity | ||||||||||||
+ - 400 | 25% | 40% | ||||||||||||
+ - 300 | 20% | 30% | ||||||||||||
+ - 200 | 15% | 20% | ||||||||||||
+ - 100 | 10% | 10% |
Estimated Changes in Net Interest Income | ||||||||||||||||||||
Change in Interest Rates: | + 200 bp | + 100 bp | -100 bp | |||||||||||||||||
Policy Limit | (15.00) | % | (10.00) | % | (10.00) | % | ||||||||||||||
September 30, 2021 | (1.28) | % | (0.60) | % | (1.17) | % | ||||||||||||||
June 30, 2021 | 1.69 | % | 0.82 | % | (1.09) | % | ||||||||||||||
March 31, 2021 | (0.89) | % | (0.53) | % | (1.02) | % | ||||||||||||||
December 31, 2020 | (1.28) | % | (0.23) | % | (1.17) | % |
Estimated Changes in Economic Value of Equity | ||||||||||||||||||||
Change in Interest Rates: | + 200 bp | + 100 bp | -100 bp | |||||||||||||||||
Policy Limit | (20.00) | % | (10.00) | % | (10.00) | % | ||||||||||||||
September 30, 2021 | 27.10 | % | 16.77 | % | (29.34) | % | ||||||||||||||
June 30, 2021 | 32.17 | % | 19.50 | % | (32.54) | % | ||||||||||||||
March 31, 2021 | 28.56 | % | 17.31 | % | (28.84) | % | ||||||||||||||
December 31, 2020 | 52.00 | % | 32.00 | % | (47.00) | % |
Period | ( a ) Total Number of Shares Purchased | ( b ) Average Price Paid per Share | ( c ) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | ( d ) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
July 1-31, 2021 | 71,196 | $ | 35.63 | 71,196 | 99,725 | |||||||||||||||||||||
August 1-31, 2021 | 275 | $ | 37.78 | 275 | 99,450 | |||||||||||||||||||||
September 1-30, 2021 | — | $ | — | — | 99,450 | |||||||||||||||||||||
Total | 71,471 | $ | 35.64 | 71,471 | 99,450 |
Number | Description | |||||||
10.1* | ||||||||
31 | ||||||||
32 | ||||||||
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows; and (vi) the Notes to the Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
THE COMMUNITY FINANCIAL CORPORATION | ||||||||
Date: November 8, 2021 | By: | /s/ William J. Pasenelli | ||||||
William J. Pasenelli | ||||||||
Chief Executive Officer | ||||||||
Date: November 8, 2021 | By: | /s/ Todd L. Capitani | ||||||
Todd L. Capitani | ||||||||
Chief Financial Officer |
Date: November 8, 2021 | By: | /s/ William J. Pasenelli | ||||||
William J. Pasenelli Chief Executive Officer |
Date: November 8, 2021 | By: | /s/ Todd L. Capitani | ||||||
Todd L. Capitani Chief Financial Officer |
Date: November 8, 2021 | By: | /s/ William J. Pasenelli | ||||||
William J. Pasenelli Chief Executive Officer | ||||||||
Date: November 8, 2021 | By: | /s/ Todd L. Capitani | ||||||
Todd L. Capitani Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 18,579 | $ 19,424 |
Subordinated notes interest rate | 4.75% | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 5,724,011 | 5,903,613 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 6,404 | $ 3,799 | $ 19,135 | $ 9,997 |
Net unrealized holding (loss) gain arising during period, net of tax (benefit) expenses of $(1,083) and $34, and $(1,744) and $940, respectively. | (3,072) | 94 | (4,946) | 2,781 |
Reclassification adjustment for gains included in net income, net of tax expense of $0 and $59, and $153 and $175, respectively. | 0 | 169 | 433 | 495 |
Comprehensive Income | $ 3,332 | $ 4,062 | $ 14,622 | $ 13,273 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Statement [Abstract] | ||||
Net unrealized holding (loss) gains arising during period, Tax Effect | $ (1,083) | $ 34 | $ (1,744) | $ 940 |
Reclassification adjustment, Tax Effect | $ 0 | $ 59 | $ 153 | $ 175 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Net unrealized holding gains (losses) arising during period, tax effect | $ (1,083) | $ 93 | $ (1,591) | $ 1,115 |
Cash dividend per common share (in dollars per share) | $ 0.150 | $ 0.125 | $ 0.425 | $ 0.375 |
BASIS OF PRESENTATION AND NATURE OF OPERATIONS |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Nature of Operations | BASIS OF PRESENTATION AND NATURE OF OPERATIONS Basis of Presentation The Consolidated Financial Statements of The Community Financial Corporation (the “Company”) and its wholly-owned active subsidiary, Community Bank of the Chesapeake (the “Bank”). The consolidated financial statements reflect all adjustments consisting only of normal recurring accruals that, in the opinion of management, are necessary to present fairly the Company’s financial condition, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to the rules and regulations of the SEC. Management believes that the included disclosures are adequate to make the information presented not misleading. The balances as of December 31, 2020 have been derived from audited consolidated financial statements. Additions to the Company’s accounting policies are disclosed in the 2020 Annual Report as well as the adoption of new accounting standards included in Note 1. The results of operations for the nine months September 30, 2021 are not necessarily indicative of the results of operations to be expected for the remainder of the year or any other period. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2020 Annual Report on Form 10-K. Reclassification Certain items in prior consolidated financial statements have been reclassified to conform to the current presentation. Nature of Operations The Company provides financial services to individuals and businesses through its offices in Southern Maryland, and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. Use of Estimates The preparation of consolidated 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 as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses ("ALLL"), real estate acquired in the settlement of loans ("OREO"), fair value of financial instruments, fair value of assets acquired, and liabilities assumed in a business combination, evaluating other-than-temporary-impairment ("OTTI") of investment securities and valuation of deferred tax assets. COVID-19 The COVID-19 pandemic impacted the Company's customers abilities to fulfill their financial obligations. In response to the likely effects on the economy of the pandemic, the Federal Open Market Committee reduced the federal funds rate from a target range of 1.50% to 1.75% to a target range of 0% to 0.25%. New Accounting Policy See Note 1 – Summary of Significant Accounting Policies included in the Company’s 2020 Annual Report on Form 10-K for a list of policies in effect as of December 31, 2020. COVID-19 Deferrals On March 22, 2020, federal banking regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, ("the agencies") issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The interagency statement impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, "Receivables - Troubled Debt Restructurings by Creditors," ("ASC 310-40"), a restructuring of debt constitutes a troubled debt restructure ("TDR") if the creditor, for economic or legal reasons related to the debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers, who were current prior to any relief, are not to be considered TDRs. Under current law modifications were required to be executed between March 1, 2020, and the earlier of (A) January 1, 2022 or (B) 60 days after the date on which the national COVID-19 emergency terminates. The impacts of the interagency guidance are further described in the consolidated financial statements, notes to consolidated financial statements and Management's Discussion and Analysis of this Form 10Q and the Company’s 2020 Annual Report on Form 10-K. The Company offered payment deferral programs for its customers who were adversely affected by the pandemic. Depending on the need of the client, the Company deferred full or partial loan payments up to 180 days. Interest and fees accrued to income, until the loan is placed in nonaccrual status, at which time interest income and fees accrued would be reversed. As of September 30, 2021 and December 31, 2020, the Company had $3.4 million and $35.4 million of loan deferrals, respectively. Under the Coronavirus Aid, Relief and Economic Security ("CARES") Act, borrowers who were not considered past due prior to becoming affected by COVID-19 and then receive payment accommodations as a result of the effects of COVID-19 would not be reported as past due or nonaccrual for regulatory and financial reporting during the deferral period. If new information during the deferral period indicates that there is evidence of default, the Bank will change the classification rating and accrual status. Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace the current “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The ASU also simplifies the accounting model for purchase credit impaired (“PCI”) debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the Allowance for Credit Losses ("ACL"). In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is planning for CECL adoption. Our CECL model has been substantially developed and our third party model validation is substantially complete. We are conducting parallel runs of the loss estimation models throughout 2021. We are refining the qualitative components and forecasting components of our model. ASU 2016-13 will also require the establishment of an allowance for expected credit losses for certain debt securities and other financial assets. The Company is required to adopt ASU No. 2016-13 for fiscal years beginning after December 15, 2022. Early adoption is permitted, and the Company expects to adopt ASU No. 2016-13 in the first quarter of 2022. Management expects to recognize a one-time cumulative effect adjustment to the allowance for credit losses as of the January 1, 2022. At this time, we expect our implementation of CECL to increase our reserve for credit losses, but cannot reasonably estimate a range of the impact of the adoption. Our fourth quarter refinement of our CECL qualitative framework may impact the cumulative effect adjustment. ASU 2019-05 - Financial Instruments-Credit Losses (Topic 326). In May 2019, the FASB issued ASU No. 2019-05. This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. The Company plans to adopt ASU 2019-05 upon adoption of ASU 2016-13 unless an earlier adoption is permitted in an accounting update. The Company is evaluating the impact of electing the fair value option of ASU 2019-05 on the Company's consolidated financial statements. ASU 2020-04 - Reference Rate Reform (Topic 848). In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. The Company does not expect these amendments to have a material effect on its consolidated financial statements.
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SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | SECURITIES Amortized cost and fair values of investment securities at September 30, 2021 and December 31, 2020 are as follows:
At September 30, 2021 and December 31, 2020 securities with an amortized cost of $49.5 million and $48.2 million were pledged to secure certain customer deposits. The Company recognized net gains of $0.6 million on the sale of AFS securities with aggregate carrying values of $11.9 million for the nine months ended September 30, 2021. During the year ended December 31, 2020, the Company recognized net gains of $1.4 million on the sale of AFS securities with carrying values of $62.5 million. The Company’s investment portfolio includes securities that are in an unrealized loss position as of September 30, 2021. The Company has no intent to sell these securities, and maintains the ability to hold them until all principal of the securities has been recovered. Declines in the fair values of these securities are due to interest rate movements. As of September 30, 2021, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe it will sustain any material realized losses as a result of the current temporary decline in fair value. No charges related to OTTI were made during the three and nine months ended September 30, 2021, and the year ended December 31, 2020. Management believes that the securities will either recover in market value or be paid off as agreed. AFS Securities Gross unrealized losses and estimated fair value by length of time that individual AFS securities have been in a continuous unrealized loss position at September 30, 2021, and December 31, 2020 were as follows:
Maturities The amortized cost and estimated fair value of debt securities at September 30, 2021, and December 31, 2020 by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call premiums or prepayment penalties.
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LOANS |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | LOANS Loans consist of the following:
The Company has segregated its loans into two categories: portfolio loans and U.S. SBA PPP loans. Deferred Costs/Fees Net deferred costs consist of fees paid by customers offset by the estimated costs to produce the loans. U.S. SBA PPP deferred fees consist of fees paid by the SBA offset by estimated costs. Deferred fees and costs are amortized into interest income as loans are repaid or forgiven. Risk Characteristics of Portfolio Segments Concentrations of Credit - Loans are primarily made within the Company’s operating footprint of Southern Maryland and the greater Fredericksburg area of Virginia. Real estate loans can be affected by the condition of the local real estate market. Commercial and industrial loans can be affected by the local economic conditions. The Bank's commercial loan portfolios include business loans secured by real estate, real estate development loans, commercial lines of credit and equipment loans. At September 30, 2021 and December 31, 2020, the Company had no loans outstanding with foreign entities. The Company manages its credit products and exposure to credit losses (credit risk) by the following specific portfolio segments, which are levels at which the Company develops and documents its allowance for loan loss methodology. These segments are: Commercial Real Estate (“CRE”) Commercial real estate loan balances include commercial construction and financing for a variety of commercial properties. Construction balances were 4.8% and 6.9% of the CRE portfolio at September 30, 2021 and December 31, 2020, respectively. The primary security on a commercial real estate loan is the real property and the leases that produce income for the real property. Loans secured by commercial real estate are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from to 20 years. Because payments on loans secured by such properties are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. Residential First Mortgages Residential first mortgage loans are generally long-term (10 to 30 years) amortizing loans. The Bank’s residential portfolio has both fixed-rate and adjustable-rate residential first mortgages. The annual and lifetime limitations on interest rate adjustments may constrain interest rate increases on these loans. As of September 30, 2021 and December 31, 2020, the Bank serviced $18.7 million and $23.9 million, respectively, in residential mortgage loans for others. Residential Rentals Residential rental mortgage loans are amortizing long-term loans. The loans are secured by income-producing 1-4 family units and apartments. Loans secured by residential rental properties are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from to 20 years. Loans secured by residential rental properties involve greater risks than 1-4 family residential mortgage loans. Although, there are similar risk characteristics shared with commercial real estate loans, the balances for the loans secured by residential rental properties are generally smaller. Payments on loans secured by residential rental properties are dependent on the successful operation of the properties; and repayment of these loans may be subject to more volatile conditions in the rental real estate market or the economy than similar owner-occupied properties. Construction and Land Development The Bank offers loans for the construction of residential dwellings. These loans are secured by the real estate under construction as well as by guarantees of the principals involved. In addition, the Bank offers loans to acquire and develop land. Construction and Land Development loans are dependent on the successful completion of the underlying project or the borrowers guarantee to repay the loan. As such, they are subject to the risks of the project including changing prices and interest rates. The repayment of these loans is also dependent on the borrower’s ability to successfully manage the construction and development activities. Home Equity and Second Mortgage Loans The Bank maintains a portfolio of home equity and second mortgage loans. These products contain a higher risk of default than residential first mortgages as in the event of foreclosure, the first mortgage would need to be paid off prior to collection of the second mortgage. Commercial Loans Commercial loans including lines of credit are short-term loans (5 years or less) that are secured by the equipment financed, the guarantees of the borrower, and other collateral. These loans are dependent on the success of the underlying business or the strength of the guarantor. Consumer Loans Consumer loans consist of loans secured by automobiles, boats, recreational vehicles and trucks. The Bank also makes home improvement loans and offers both secured and unsecured personal lines of credit. The repayment of these loans is dependent on the continued stability of the customer. Commercial Equipment Loans These loans consist primarily of fixed-rate, short-term loans collateralized by a commercial customer’s equipment or secured by real property, accounts receivable, or other security. These loans are dependent on the success of the underlying business or the strength of the guarantor. U.S. SBA PPP Loans U.S. SBA PPP loans are fully guaranteed by the Small Business Administration and the Bank's ALLL does not include an allowance for U.S. SBA PPP loans. Management believes all U.S. SBA PPP loans were underwritten in accordance with the program's guidelines. Non-accrual and Aging Analysis of Current and Past Due Loans Non-accrual loans as of September 30, 2021 and December 31, 2020 were as follows:
Non-accrual loans at December 31, 2020 included three TDRs totaling $1.52 million. There were no non-accrual TDR loans at September 30, 2021. Non-accrual loans which did not have a specific allowance for impairment, amounted to $4.4 million and $12.4 million at September 30, 2021 and December 31, 2020, respectively. Interest due but not recognized on these balances at September 30, 2021 and December 31, 2020 were $0.1 million and $0.4 million, respectively. Non-accrual loans with a specific allowance for impairment amounted to $0.8 million and $5.8 million at September 30, 2021 and December 31, 2020, respectively. Interest due but not recognized on these balances at September 30, 2021 and December 31, 2020 were $0.1 million and $0.4 million, respectively. The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are not met by the borrower. Purchase Credit Impaired ("PCI") loans are included as a single category in the table below as management believes there is a lower likelihood of aggregate loss related to these loan pools. Additionally, PCI loans are discounted to allow for the accretion of income on a level yield basis over the life of the loan based on expected cash flows. Regardless of payment status, as long as cash flows can be reasonably estimated, the associated discount on these loan pools results in income recognition. An analysis of past due loans as of September 30, 2021 and December 31, 2020 were as follows: Age Analysis of Past Due Loan Receivables and PCI Loans
There were no loans that were past due 90 days or greater accruing interest at September 30, 2021 and December 31, 2020. Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at September 30, 2021 and 2020 and at December 31, 2020 were as follows:
TDRs included in the impaired loan schedules above, as of September 30, 2021 and December 31, 2020 were as follows:
The Company had specific reserves of $0.4 million on six TDRs totaling $2.1 million at December 31, 2020 and no reserves on TDRs at September 30, 2021. Allowance for Loan Losses ("ALLL") The following tables detail activity in the ALLL at and for the three and nine months ended September 30, 2021 and 2020. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category.
The following tables detail loan receivable and allowance balances at September 30, 2021 and 2020 and December 31, 2020.
Credit Quality Indicators Credit quality indicators as of September 30, 2021 and December 31, 2020 were as follows: Credit Risk Profile by Internally Assigned Grade
_______________________________________ **Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g. non-accrual loans, TDRs). Credit Risk Profile Based on Payment Activity
A risk-grading scale is used to assign grades to commercial relationships, which include commercial real estate, residential rentals, construction and land development, commercial loans and commercial equipment loans. Commercial loan relationships are graded at inception and at a minimum annually. At December 31, 2020 and prior, only commercial loan relationships with an aggregate exposure to the Bank of $1,000,000 or greater were subject to being risk rated. During the quarter ended June 30, 2021, the Bank's policy was amended to risk rate all commercial loan relationships. Home equity, second mortgages, consumer loans, and residential first mortgages are evaluated for creditworthiness in underwriting and are monitored based on borrower payment history. Residential first mortgages, home equity and second mortgages and consumer loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are loans with an Other Assets Especially Mentioned ("OAEM") or higher risk rating. Management regularly reviews credit quality indicators. Loans subject to risk ratings are graded on a scale of one to ten. Ratings 1 thru 6 - Pass – Loans rated pass display none of the characteristics of classified loans. Rating 7 - OAEM (Other Assets Especially Mentioned) – Special Mention loans have potential weaknesses that deserve management’s close attention. If uncorrected these weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified. Rating 8 - Substandard – A substandard loan is inadequately protected by the current net worth and payment capacity of the borrower or of the collateral pledged. Loans classified as substandard have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility of loss if the deficiencies are not corrected. Rating 9 - Doubtful – A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristics that the weaknesses make collection or liquidation in full improbable on the basis of currently existing facts, conditions, and values. Rating 10 – Loss – Once an asset is identified as a definite loss to the Bank, it will receive the classification of “loss.” There may be some future potential recovery; however, it is more practical to write off the loan at the time of classification. Losses will be taken in the period in which they are determined to be non-collectable. PCI Loans and Acquired Loans PCI loans had an unpaid principal balance of $1.4 million and a carrying value of $1.1 million at September 30, 2021. Determining the fair value of the PCI loans at the time of acquisition required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest considering prepayment assumptions. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. A summary of changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2021 and 2020 and the year ended December 31, 2020 follows:
At September 30, 2021 performing acquired loans, which totaled $49.3 million, included a $0.5 million net acquisition accounting fair market value adjustment, representing a 1.09% discount; and PCI loans which totaled $1.1 million, included a $0.3 million adjustment, representing a 20.59% discount. At December 31, 2020 acquired performing loans, which totaled $59.0 million, included an $0.8 million net acquisition accounting fair market value adjustment, representing a 1.25% discount; and PCI loans which totaled $2.0 million, included a $0.3 million adjustment, representing a 14.95% discount. During the three months ended September 30, 2021 and 2020 there was $91,000 and $0.1 million, respectively, of accretion interest. Accounting standards require a periodic recast of the expected cash flows on the PCI loan portfolio. The recast was performed during the second quarter of 2021 and 2020 which resulted in a reclassification of $37,000, net of PCI impairment, and $24,000, respectively, from the credit (nonaccretable) portion of the discount to the liquidity (accretable) portion of the discount. The following is a summary of acquired and non-acquired loans as of September 30, 2021 and December 31, 2020:
______________________________ **Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets are presented in the tables below.
The estimated future amortization expense for intangible assets remaining as of September 30, 2021 is as follows:
As of September 30, 2021, the Company did not have impairment to goodwill or core deposit intangibles ("CDI"). In the third quarter of 2020, management determined that the COVID-19 pandemic and its impact on the banking industry, was deemed a triggering event that required an interim impairment test for goodwill. Management engaged an independent consultant to perform a quantitative goodwill and CDI impairment analysis for the Company's single reporting unit, the Bank, as of September 15, 2020 ("the measurement date"). The impairment analysis used both market and income valuation approaches. The market approach analyzed transaction and control premium information for the Company and a selected peer group. The income approach analyzed discounted cash flows. The results of the methods were weighted to determine an overall value. Significant estimates and assumptions included, but were not limited to, projected profitability ratios, discount rates, cash flows projections selection and evaluation and selection of control premiums in appropriate market transactions and selection of peers. Management performed its annual analysis of goodwill and CDI during the fourth quarter of 2020 and concluded that there was no impairment at December 31, 2020. At September 30, 2021, management's analysis concluded that there were no changes in the Company's financial statements or operations subsequent to the measurement date and the fourth quarter 2020 annual analysis that would indicate that it was more likely than not that goodwill or CDI was impaired.
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OTHER REAL ESTATE OWNED ("OREO") |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned ("OREO") | OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of the valuation allowance. The Company considers OREO as classified assets for regulatory and financial reporting. OREO carrying amounts reflect management’s estimate of the realizable value of these properties. An analysis of OREO activity follows.
Expenses applicable to OREO assets included the following.
There were no impaired loans secured by residential real estate for which formal foreclosure proceedings were in the process as of September 30, 2021 and December 31, 2020.
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DEPOSITS |
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Deposits | DEPOSITS Deposits consist of the following:
The aggregate amount of certificates of deposit that exceed the FDIC insurance limit of $250,000 at September 30, 2021 and December 31, 2020 was $63.2 million and $64.3 million, respectively. The Company monitors all customer deposit concentrations at or above 2% of total deposits. At September 30, 2021, the Bank had three customer deposit relationships that exceeded 2% of total deposits, totaling $383.4 million. At December 31, 2020, the Bank had two customer deposit relationships that exceeded 2% of total deposits, totaling $238.8 million. These concentrations were with local municipal agencies.
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COMMITMENTS & CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments & Contingencies | COMMITMENTS & CONTINGENCIES Operating Leases The Company's operating lease agreements are for branches and office space. The table below details the Company's operating leases:
The table below details the Company's lease cost, which is included in occupancy expense.
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:
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GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) |
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Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) On June 15, 2005, Tri-County Capital Trust II (“Capital Trust II”), a Delaware business trust formed, funded and wholly-owned by the Company, issued $5.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 1.70%. The Trust used the proceeds from this issuance, along with the $0.2 million for Capital Trust II’s common securities, to purchase $5.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These capital securities qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust II and the junior subordinated debentures are scheduled to mature on June 15, 2035, unless called by the Company. On July 22, 2004, Tri-County Capital Trust I (“Capital Trust I”), a Delaware business trust formed, funded and wholly owned by the Company, issued $7.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 2.60%. The Trust used the proceeds from this issuance, along with the Company’s $0.2 million capital contribution for Capital Trust I’s common securities, to purchase $7.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These debentures qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust I and the junior subordinated debentures are scheduled to mature on July 22, 2034, unless called by the Company.
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SUBORDINATED NOTES |
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Sep. 30, 2021 | |
Subordinated Borrowings [Abstract] | |
Subordinated Notes | SUBORDINATED NOTESOn October 14, 2020, the Company issued and sold $20.0 million in aggregate principal amount of its 4.75% Fixed to Floating Rate Subordinated Notes due 2030 (the "Notes"). The Notes were sold by the Company in a private offering. The Notes mature on October 15, 2030 and bear interest at a fixed rate of 4.75% to October 14, 2025. From October 15, 2025 to the maturity date or early redemption date, the interest rate will reset quarterly to the three month Secured Overnight Financing Rate ("SOFR") plus 458 basis points. The Company may redeem the Notes at any time after October 14, 2025, and at any time in whole, but not in part, upon the occurrence of certain events. Any redemption of the Notes will be subject to prior regulatory approval. The Company incurred debt issuance costs for placement fees, legal and other out-of-pocket expenses of approximately $0.6 million, which are being amortized over the life of the Notes. |
REGULATORY CAPITAL |
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Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital | REGULATORY CAPITAL The Bank’s primary regulator is the Federal Deposit Insurance Corporation (“FDIC”). The Bank is subject to regulation, supervision and examination by the Maryland Commissioner of Financial Regulation (the “Commissioner”) and the FDIC. The Company is subject to regulation, examination, and supervision by the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Company and Bank are subject to the Basel III Capital Rules which establish a comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s “Basel III” framework for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules define the components of capital and address other issues affecting banking institutions’ regulatory capital ratios. The rules include a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.50%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, require a minimum ratio (“Min. Ratio”) of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A capital conservation buffer (“CCB”) is also established above the regulatory minimum capital requirements. The rules revised the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. As of September 30, 2021 and December 31, 2020, the Company and Bank were well-capitalized under the regulatory framework for prompt corrective action ("PCA") under the new Basel III Capital Rule and Management believes the Company and the Bank met all capital adequacy requirements. The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table.
____________________________________ (1)The regulatory minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). (2)Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. The PCA well capitalized is defined as 5.00%. Dividends paid by the Company are substantially funded from dividends received from the Bank. Federal and holding company regulations, as well as Maryland law, impose restrictions on capital distributions, including dividend payments and share repurchases. Some of the restrictions generally require advance approval from the Bank's regulator for payment of dividends in excess of the sum of net income for the current calendar year and the retained net income of the prior two calendar years.
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company adopted FASB ASC Topic 820, “Fair Value Measurements” and FASB ASC Topic 825, “The Fair Value Option for Financial Assets and Financial Liabilities”, which provides a framework for measuring and disclosing fair value under U.S. GAAP. FASB ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, AFS investment securities) or on a nonrecurring basis (for example, impaired loans). FASB ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. AFS securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under FASB ASC Topic 820, the Company groups assets and liabilities 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 the fair value. These hierarchy levels are: Level 1 inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s quarterly valuation process. Intra-quarter transfers in and out of level 3 assets and liabilities recorded at fair value on a recurring basis are disclosed. There were no such transfers during the three and six months ended September 30, 2021 or the year ended December 31, 2020. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities Available for Sale AFS investment securities are recorded at fair value on a recurring basis. Standard inputs include quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by GSEs, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Equity Securities Carried at Fair Value Through Income Equity securities carried at fair value through income are recorded at fair value on a recurring basis. Standard inputs include quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 equity securities include those traded on an active exchange, such as the New York Stock Exchange. Level 2 equity securities include mutual funds with asset-backed securities issued by GSEs as the underlying investment supporting the fund. Equity securities classified as Level 3 include mutual funds with asset-backed securities in less liquid markets. Loans Receivable The Company does not record loans at fair value on a recurring basis; however, from time to time, a loan is considered impaired and an allowance for loan loss is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are considered impaired. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, or discounted cash flows. Impaired loans not requiring a specific allowance are those for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. At September 30, 2021 and December 31, 2020, substantially all of the impaired loans were evaluated based on the fair value of the collateral. In accordance with FASB ASC 820, impaired loans where an allowance is established based on the fair value of collateral (loans with impairment) require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price), the Company records the loan as nonrecurring Level 2. When the fair value of the impaired loan is derived from an appraisal, the Company records the loan as nonrecurring Level 3. Fair value is re-assessed at least quarterly or more frequently when circumstances occur that indicate a change in the fair value. The fair values of impaired loans that are not measured based on collateral values are measured using discounted cash flows and considered to be Level 3 inputs. Other Real Estate Owned OREO is adjusted for fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is reported at the lower of carrying value or fair value. Fair value is based on independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price (e.g., contracted sales price), the Company records the foreclosed asset as nonrecurring Level 2. When the fair value is derived from an appraisal, the Company records the foreclosed asset at nonrecurring Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets as of September 30, 2021 and December 31, 2020 measured at fair value on a recurring basis.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020 were included in the tables below.
Loans with impairment had unpaid principal balances of $0.8 million and $5.8 million at September 30, 2021 and December 31, 2020, respectively. The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2021 and December 31, 2020.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the financial instrument fair value disclosure requirements, including the Company’s common stock, OREO, premises and equipment and other assets and liabilities. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Therefore, any aggregate unrealized gains or losses should not be interpreted as a forecast of future earnings or cash flows. Furthermore, the fair values disclosed should not be interpreted as the aggregate current value of the Company. The Company’s estimated fair values of financial instruments are presented in the following tables.
See the Company’s methodologies disclosed in Note 21 of the Company’s 2020 Form 10-K for the fair value methodologies used as of December 31, 2020:
At September 30, 2021 and December 31, 2020, the Company had outstanding loan commitments and standby letters of credit with customers of $80.2 million and $66.5 million, respectively, and $22.3 million and $20.0 million, respectively. Additionally, at September 30, 2021 and December 31, 2020, customers had $237.1 million and $225.5 million, respectively, available and unused on lines of credit, which include lines of credit for commercial customers, home equity loans as well as builder and construction lines. Based on the short-term lives of these instruments, the Company does not believe that the fair values of these instruments differ significantly from their carrying values. The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2021 and December 31, 2020. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.
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ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income ("AOCI") | ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") The following table presents the changes in each component of other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2021 and 2020.
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EARNINGS PER SHARE (“EPS”) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share ("EPS") | EARNINGS PER SHARE (“EPS”) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Common shares that may be issued by the Company related to outstanding unvested restricted stock units and performance stock unit awards were determined using the treasury stock method and are included in the calculation of dilutive common stock equivalents. Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The Company files a consolidated federal income tax return. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. If it is more likely than not that some portion or the entire deferred tax asset will not be realized, deferred tax assets will be reduced by a valuation allowance. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense.
Net deferred tax assets totaled $8.8 million at September 30, 2021 and $7.9 million at December 31, 2020. No valuation allowance for deferred tax assets was recorded at September 30, 2021 as management believes it is more likely than not that deferred tax assets will be realized against deferred tax liabilities and projected future taxable income. The increase in income tax expense for the three and nine months ended September 30, 2021 was primarily due to a higher pretax income and a change in the Company's state tax apportionment approach which was implemented during the first quarter of 2020 and included the impact of amended income tax filings of the Company and Bank. Management determined the change in tax position qualified as a change in estimate under FASB ASC Section 250. The effective tax rate differed from the statutory federal and state income rates during 2021 primarily due to the effect of tax-exempt loans, life insurance policies, the income tax effects associated with stock-based compensation and certain non-deductible expenses for state income taxes. The Company’s consolidated effective tax rate is expected to be between 25.00% and 26.06% in 2021.The effective income tax rates differed from the statutory federal and state income tax rates during 2020 primarily due to an adjustment of $0.7 million related to state apportionment of interest income on loans. In addition, the effective income tax rates differed from the statutory federal and state income tax rates due to the effect of tax-exempt loans, life insurance policies, the income tax effects associated with stock-based compensation and certain non-deductible expenses for state income taxes.
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OTHER EXPENSES |
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Other Expenses | OTHER EXPENSES The Company had the following other noninterest expenses for the three and nine months ended September 30, 2021 and 2020:
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BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation The Consolidated Financial Statements of The Community Financial Corporation (the “Company”) and its wholly-owned active subsidiary, Community Bank of the Chesapeake (the “Bank”). The consolidated financial statements reflect all adjustments consisting only of normal recurring accruals that, in the opinion of management, are necessary to present fairly the Company’s financial condition, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted pursuant to the rules and regulations of the SEC. Management believes that the included disclosures are adequate to make the information presented not misleading. The balances as of December 31, 2020 have been derived from audited consolidated financial statements. Additions to the Company’s accounting policies are disclosed in the 2020 Annual Report as well as the adoption of new accounting standards included in Note 1. The results of operations for the nine months September 30, 2021 are not necessarily indicative of the results of operations to be expected for the remainder of the year or any other period. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2020 Annual Report on Form 10-K.
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Reclassification | ReclassificationCertain items in prior consolidated financial statements have been reclassified to conform to the current presentation. |
Nature of Operations | Nature of Operations The Company provides financial services to individuals and businesses through its offices in Southern Maryland, and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans.
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Use of Estimates | Use of Estimates The preparation of consolidated 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 as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses ("ALLL"), real estate acquired in the settlement of loans ("OREO"), fair value of financial instruments, fair value of assets acquired, and liabilities assumed in a business combination, evaluating other-than-temporary-impairment ("OTTI") of investment securities and valuation of deferred tax assets.
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COVID-19 | COVID-19The COVID-19 pandemic impacted the Company's customers abilities to fulfill their financial obligations. In response to the likely effects on the economy of the pandemic, the Federal Open Market Committee reduced the federal funds rate from a target range of 1.50% to 1.75% to a target range of 0% to 0.25%. |
New Accounting Policy | New Accounting Policy See Note 1 – Summary of Significant Accounting Policies included in the Company’s 2020 Annual Report on Form 10-K for a list of policies in effect as of December 31, 2020. COVID-19 Deferrals On March 22, 2020, federal banking regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, ("the agencies") issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The interagency statement impacted accounting for loan modifications. Under Accounting Standards Codification 310-40, "Receivables - Troubled Debt Restructurings by Creditors," ("ASC 310-40"), a restructuring of debt constitutes a troubled debt restructure ("TDR") if the creditor, for economic or legal reasons related to the debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers, who were current prior to any relief, are not to be considered TDRs. Under current law modifications were required to be executed between March 1, 2020, and the earlier of (A) January 1, 2022 or (B) 60 days after the date on which the national COVID-19 emergency terminates. The impacts of the interagency guidance are further described in the consolidated financial statements, notes to consolidated financial statements and Management's Discussion and Analysis of this Form 10Q and the Company’s 2020 Annual Report on Form 10-K. The Company offered payment deferral programs for its customers who were adversely affected by the pandemic. Depending on the need of the client, the Company deferred full or partial loan payments up to 180 days. Interest and fees accrued to income, until the loan is placed in nonaccrual status, at which time interest income and fees accrued would be reversed. As of September 30, 2021 and December 31, 2020, the Company had $3.4 million and $35.4 million of loan deferrals, respectively. Under the Coronavirus Aid, Relief and Economic Security ("CARES") Act, borrowers who were not considered past due prior to becoming affected by COVID-19 and then receive payment accommodations as a result of the effects of COVID-19 would not be reported as past due or nonaccrual for regulatory and financial reporting during the deferral period. If new information during the deferral period indicates that there is evidence of default, the Bank will change the classification rating and accrual status. Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. ASU No. 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace the current “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The ASU also simplifies the accounting model for purchase credit impaired (“PCI”) debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the Allowance for Credit Losses ("ACL"). In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company is planning for CECL adoption. Our CECL model has been substantially developed and our third party model validation is substantially complete. We are conducting parallel runs of the loss estimation models throughout 2021. We are refining the qualitative components and forecasting components of our model. ASU 2016-13 will also require the establishment of an allowance for expected credit losses for certain debt securities and other financial assets. The Company is required to adopt ASU No. 2016-13 for fiscal years beginning after December 15, 2022. Early adoption is permitted, and the Company expects to adopt ASU No. 2016-13 in the first quarter of 2022. Management expects to recognize a one-time cumulative effect adjustment to the allowance for credit losses as of the January 1, 2022. At this time, we expect our implementation of CECL to increase our reserve for credit losses, but cannot reasonably estimate a range of the impact of the adoption. Our fourth quarter refinement of our CECL qualitative framework may impact the cumulative effect adjustment. ASU 2019-05 - Financial Instruments-Credit Losses (Topic 326). In May 2019, the FASB issued ASU No. 2019-05. This ASU allows entities to irrevocably elect, upon adoption of ASU 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of ASC 326-20 if the instruments are eligible for the fair value option under ASC 825-10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. The Company plans to adopt ASU 2019-05 upon adoption of ASU 2016-13 unless an earlier adoption is permitted in an accounting update. The Company is evaluating the impact of electing the fair value option of ASU 2019-05 on the Company's consolidated financial statements. ASU 2020-04 - Reference Rate Reform (Topic 848). In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. The Company does not expect these amendments to have a material effect on its consolidated financial statements.
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Amortized cost and fair values of investment securities at September 30, 2021 and December 31, 2020 are as follows:
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Debt Securities, Available-for-sale | The amortized cost and estimated fair value of debt securities at September 30, 2021, and December 31, 2020 by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call premiums or prepayment penalties.
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Available-For-Sale Securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss and Estimated Fair Value on Investments | AFS Securities Gross unrealized losses and estimated fair value by length of time that individual AFS securities have been in a continuous unrealized loss position at September 30, 2021, and December 31, 2020 were as follows:
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LOANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable | Loans consist of the following:
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Non-accrual loans | Non-accrual loans as of September 30, 2021 and December 31, 2020 were as follows:
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Past Due Financing Receivables | An analysis of past due loans as of September 30, 2021 and December 31, 2020 were as follows: Age Analysis of Past Due Loan Receivables and PCI Loans
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Impaired Loans, Including TDRs | Impaired loans, including TDRs, at September 30, 2021 and 2020 and at December 31, 2020 were as follows:
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TDRs, Included in Impaired Loans Schedule | TDRs included in the impaired loan schedules above, as of September 30, 2021 and December 31, 2020 were as follows:
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Allowance for Credit Losses on Financing Receivables | The following tables detail activity in the ALLL at and for the three and nine months ended September 30, 2021 and 2020. An allocation of the allowance to one category of loans does not prevent the Company from using that allowance to absorb losses in a different category.
The following tables detail loan receivable and allowance balances at September 30, 2021 and 2020 and December 31, 2020.
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Credit Quality Indicators | Credit quality indicators as of September 30, 2021 and December 31, 2020 were as follows: Credit Risk Profile by Internally Assigned Grade
_______________________________________ **Non-commercial portfolios are generally evaluated based on payment activity but may be risk graded if part of a larger commercial relationship or are credit impaired (e.g. non-accrual loans, TDRs). Credit Risk Profile Based on Payment Activity
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Certain Loans Acquired In Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Table | A summary of changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2021 and 2020 and the year ended December 31, 2020 follows:
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Summary Of Acquired And Non Acquired Loans Table | The following is a summary of acquired and non-acquired loans as of September 30, 2021 and December 31, 2020:
______________________________ **Non-acquired loans include loans transferred from acquired pools following release of acquisition accounting FMV adjustments.
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets are presented in the tables below.
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Schedule of estimated amortization expense | The estimated future amortization expense for intangible assets remaining as of September 30, 2021 is as follows:
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OTHER REAL ESTATE OWNED ("OREO") (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of OREO activity | An analysis of OREO activity follows.
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Expenses applicable to OREO assets | Expenses applicable to OREO assets included the following.
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DEPOSITS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits, by Type [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits | Deposits consist of the following:
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COMMITMENTS & CONTINGENCIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Right of Use asset and maturities of operating lease liabilities | The table below details the Company's operating leases:
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows:
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Schedule of Operating Lease Cost | The table below details the Company's lease cost, which is included in occupancy expense.
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REGULATORY CAPITAL (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory | The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table.
____________________________________ (1)The regulatory minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). (2)Tier 1 Capital to AA (Leverage) has no capital conservation buffer defined. The PCA well capitalized is defined as 5.00%.
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of September 30, 2021 and December 31, 2020 measured at fair value on a recurring basis.
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020 were included in the tables below.
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Schedule of unobservable inputs used in Level 3 fair value measurements | The following tables provide information describing the unobservable inputs used in Level 3 fair value measurements at September 30, 2021 and December 31, 2020.
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The Company’s estimated fair values of financial instruments are presented in the following tables.
See the Company’s methodologies disclosed in Note 21 of the Company’s 2020 Form 10-K for the fair value methodologies used as of December 31, 2020:
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ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2021 and 2020.
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EARNINGS PER SHARE (“EPS”) (Tables) |
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows:
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INCOME TAXES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and deferred income tax expense (benefit) | It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense.
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OTHER EXPENSES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Operating Cost and Expense, by Component | The Company had the following other noninterest expenses for the three and nine months ended September 30, 2021 and 2020:
|
BASIS OF PRESENTATION AND NATURE OF OPERATIONS (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Nonperforming Financial Instruments | U.S. SBA PPP Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loan deferral amount | $ 3.4 | $ 35.4 | |
Payment Deferral | Maximum | Receivables Under CARES, Act. | Executed Modifications, COVID-19 Loan Modification Program, Executed Modifications | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loan deferral, period | 180 days |
SECURITIES (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Debt and Equity Securities, FV-NI [Line Items] | |||
Asset backed securities pledged to secure certain deposits | $ 49,500,000 | $ 49,500,000 | $ 48,200,000 |
Recognized net gains | 600,000 | 1,400,000 | |
Investment securities - AFS | 456,664,000 | 456,664,000 | 246,105,000 |
Other-than temporary impairment charges | 0 | 0 | 0 |
Available for Sale Securities Sold | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Investment securities - AFS | $ 11,900,000 | $ 11,900,000 | $ 62,500,000 |
SECURITIES (Maturities Schedule) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Amortized Cost | ||
Within one year | $ 32,679 | $ 36,165 |
Over one year through five years | 109,422 | 60,669 |
Over five years through ten years | 167,788 | 67,158 |
After ten years | 146,787 | 76,021 |
Amortized Cost | 456,676 | 240,013 |
Estimated Fair Value | ||
Within one year | 32,678 | 37,084 |
Over one year through five years | 109,419 | 62,209 |
Over five years through ten years | 167,784 | 68,862 |
After ten years | 146,783 | 77,950 |
Securities available for sale ("AFS"), at fair value | $ 456,664 | $ 246,105 |
LOANS (Changes in the accretable yield for PCI loans) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Accretable yield, beginning of period | $ 324 | $ 415 | $ 342 | $ 677 |
Additions | 0 | 0 | 0 | 0 |
Accretion | (31) | (46) | (92) | (184) |
Reclassification from nonaccretable difference | 15 | 0 | 29 | 24 |
Other changes, net | (15) | 0 | 14 | (148) |
Accretable yield, end of period | $ 293 | $ 369 | $ 293 | $ 369 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill and Acquired intangible assets subject to amortization) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 10,835 | $ 10,835 |
Net Intangible Assets | 1,147 | |
Core deposit intangible | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,590 | 3,590 |
Accumulated Amortization | (2,443) | (2,063) |
Net Intangible Assets | $ 1,147 | $ 1,527 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated amortization expense) (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Estimated amortization expense | |
Remainder of 2021 | $ 115 |
2022 | 398 |
2023 | 302 |
2024 | 205 |
2025 | 109 |
Thereafter | 18 |
Net Intangible Assets | $ 1,147 |
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Core deposit intangible | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Goodwill and core deposit intangibles | $ 0.0 |
OTHER REAL ESTATE OWNED ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Repossessed Assets Rollforward [Roll Forward] | |||
Balance at beginning of year | $ 3,109 | $ 7,773 | $ 7,773 |
Additions of underlying property | 0 | 1,240 | 1,240 |
Disposals of underlying property | (932) | (2,838) | (2,882) |
Valuation allowance | (641) | (2,177) | (3,022) |
Balance at end of period | $ 1,536 | $ 3,998 | $ 3,109 |
OTHER REAL ESTATE OWNED ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Real Estate [Abstract] | |||||
Valuation allowance | $ 641 | $ 2,177 | $ 3,022 | ||
Losses (gains) on dispositions | (16) | 7 | |||
Operating expenses | 64 | 119 | |||
Expenses applicable to OREO assets | $ 20 | $ 421 | $ 689 | $ 2,303 |
OTHER REAL ESTATE OWNED ("OREO") (Narrative) (Details) - USD ($) |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Real Estate [Abstract] | ||
Impaired loans secured by residential real estate | $ 0 | $ 0 |
DEPOSITS (Schedule Of Deposits) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Deposits, by Type [Abstract] | ||
Noninterest-bearing demand | $ 432,606 | $ 362,079 |
Noninterest-bearing demand, percent | 21.58% | 20.74% |
Interest-bearing deposit, Amount | ||
Demand | $ 764,482 | $ 590,159 |
Money market deposits | 355,582 | 340,725 |
Savings | 112,282 | 98,783 |
Certificates of deposit | 339,655 | 353,856 |
Total interest-bearing | 1,572,001 | 1,383,523 |
Total Deposits | $ 2,004,607 | $ 1,745,602 |
Interest-bearing deposit, percent | ||
Demand | 38.14% | 33.81% |
Money market deposits | 17.74% | 19.52% |
Savings | 5.60% | 5.66% |
Certificates of deposit | 16.94% | 20.27% |
Total interest-bearing | 78.42% | 79.26% |
Total Deposits | 100.00% | 100.00% |
DEPOSITS (Narrative) (Details) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021
USD ($)
customer_relationship
|
Dec. 31, 2020
USD ($)
customer_relationship
|
|
Deposit Liability [Line Items] | ||
Time Deposits 250000 Or More | $ 63,200 | $ 64,300 |
Total Deposits | $ 2,004,607 | $ 1,745,602 |
Customer Concentration Risk | Sales Revenue, Net | Customer Deposits | ||
Deposit Liability [Line Items] | ||
Concentration risk, percentage | 2.00% | 2.00% |
Concentration risk, customer with deposits exceeding threshold | customer_relationship | 3 | 2 |
Total Deposits | $ 383,400 | $ 238,800 |
COMMITMENTS & CONTINGENCIES (Right of Use Assets, Net of Accumulated Amortization) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Operating Leases | ||
Operating lease right of use asset, net | $ 6,215 | $ 7,831 |
Operating lease liability | $ 6,418 | $ 8,088 |
Weighted average remaining lease term | 17 years 2 months 4 days | 18 years 2 months 15 days |
Weighted average discount rate | 3.51% | 3.52% |
Minimum | ||
Operating Leases | ||
Remaining lease term (in years) | 6 years | 8 months 12 days |
Maximum | ||
Operating Leases | ||
Remaining lease term (in years) | 23 years | 24 years |
COMMITMENTS & CONTINGENCIES (Lease Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 146 | $ 198 | $ 489 | $ 594 |
Cash paid for lease liability | $ 150 | $ 175 | $ 485 | $ 521 |
COMMITMENTS & CONTINGENCIES (Maturity analysis of operating lease liabilities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Within one year | $ 527 | |
After one but within two years | 536 | |
After two but within three years | 542 | |
After three but within four years | 568 | |
After four but within five years | 593 | |
After five years | 5,974 | |
Total undiscounted cash flows | 8,740 | |
Discount on cash flows | 2,322 | |
Operating lease liability | $ 6,418 | $ 8,088 |
GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) (Narrative) (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Jun. 15, 2005 |
Jul. 22, 2004 |
Sep. 30, 2021 |
|
Capital Trust I I | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 5,000,000 | ||
Basis spread on variable rate | 1.70% | ||
Additional amount contributed to purchase debt | 200,000 | ||
Junior subordinated notes purchased | $ 5,200,000 | ||
Maturity date | Jun. 15, 2035 | ||
Capital Trust I | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 7,000,000 | ||
Basis spread on variable rate | 2.60% | ||
Additional amount contributed to purchase debt | $ 200,000 | ||
Junior subordinated notes purchased | $ 7,200,000 | ||
Maturity date | Jul. 22, 2034 |
SUBORDINATED NOTES (Details) - USD ($) $ in Thousands |
Oct. 14, 2020 |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Subordinated notes | $ 19,496 | $ 19,526 | |
Fixed 4.75% to Floating Rate Notes, Due 2030 | |||
Debt Instrument [Line Items] | |||
Subordinated notes | $ 20,000 | ||
Interest rate, stated percentage | 4.75% | ||
Fixed 4.75% to Floating Rate Notes, Due 2030 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 600 | ||
Fixed 4.75% to Floating Rate Notes, Due 2030 | Federal Home Loan Bank of New York | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.58% |
REGULATORY CAPITAL (Narrative) (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Time Deposits 250000 Or More | $ 63,200 | $ 64,300 |
Total Deposits | $ 2,004,607 | $ 1,745,602 |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 capital to risk-weighted assets minimum ratio | 4.50% | |
Minimum ratio of Tier 1 capital to risk-weighted assets | 0.060 | |
Total Capital to risk-weighted assets | 0.080 | |
Tier 1 leverage ratio | 0.040 |
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Loans with impairment, unpaid principal | $ 0.8 | $ 5.8 |
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Investments, All Other Investments [Abstract] | ||
Loans commitments outstanding | $ 80.2 | $ 66.5 |
Letters of credit outstanding, amount | 22.3 | 20.0 |
Line of credit facility, remaining borrowing capacity | $ 237.1 | $ 225.5 |
ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 203,962 | $ 189,442 | $ 198,013 | $ 181,494 |
Other comprehensive (loss) gain, net of tax before reclassifications | (3,072) | 94 | (4,946) | 2,781 |
Amounts reclassified from accumulated other comprehensive gain | 0 | 169 | 433 | 495 |
Net other comprehensive (loss) income | (3,072) | 263 | (4,513) | 3,276 |
Ending Balance | 204,128 | 192,850 | 204,128 | 192,850 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 3,063 | 4,517 | 4,504 | 1,504 |
Ending Balance | $ (9) | $ 4,780 | $ (9) | $ 4,780 |
EARNINGS PER SHARE (“EPS”) (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Earnings Per Share [Abstract] | ||||
Net Income | $ 6,404 | $ 3,799 | $ 19,135 | $ 9,997 |
Average number of common shares outstanding (in shares) | 5,709,814 | 5,895,074 | 5,813,704 | 5,892,107 |
Dilutive effect of common stock equivalents (in shares) | 10,187 | 0 | 9,514 | 0 |
Average number of shares used to calculate diluted EPS (in shares) | 5,720,001 | 5,895,074 | 5,823,218 | 5,892,107 |
Shares excluded from diluted net income per share (in shares) | 40 | 0 | 3,355 | 0 |
Basic (in dollars per share) | $ 1.12 | $ 0.64 | $ 3.29 | $ 1.70 |
Diluted (in dollars per share) | $ 1.12 | $ 0.64 | $ 3.29 | $ 1.70 |
INCOME TAXES (Schedule of Current and Deferred Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Current | ||||
Current income tax expense | $ 1,448 | $ 2,119 | $ 6,048 | $ 4,616 |
Deferred | ||||
Deferred income tax expense (benefit) | 710 | (835) | 427 | (2,253) |
Income tax expense as reported | $ 2,158 | $ 1,284 | $ 6,475 | $ 2,363 |
Effective tax rate | 25.20% | 25.30% | 25.30% | 19.10% |
INCOME TAXES (Narrative) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Income Tax Contingency [Line Items] | |||||
Net deferred tax assets | $ 8,800,000 | $ 8,800,000 | $ 7,900,000 | ||
Valuation allowance for deferred tax assets | $ 0 | $ 0 | |||
Effective tax rate | 25.20% | 25.30% | 25.30% | 19.10% | |
Tax rate differential, contingency for apportionment of interest income on loans | $ 700,000 | ||||
Minimum | |||||
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 25.00% | ||||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 26.06% |
OTHER EXPENSES (Schedule of Other Expenses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Other Income and Expenses [Abstract] | ||||
Deposit account expenses | $ 130 | $ 108 | $ 372 | $ 320 |
Insurance | 111 | 46 | 319 | 143 |
ATM expenses | 93 | 79 | 236 | 247 |
Fraud losses | 132 | 32 | 1,243 | 64 |
Other expenses | 541 | 626 | 1,795 | 1,690 |
Other expenses | $ 1,007 | $ 891 | $ 3,965 | $ 2,464 |
OTHER EXPENSES (Narrative) (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Other Income and Expenses [Abstract] | |
Fraud losses included charge related to isolated wire transfer fraud incident | $ 1.3 |
Additional expense is expected to be incurred relating to this fraud incident | 0.0 |
Recovery from other financial institutions | $ 0.2 |
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