Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-33912 | |
Entity Registrant Name | Enterprise Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 04-3308902 | |
Entity Address, Address Line One | 222 Merrimack Street, | |
Entity Address, City or Town | Lowell, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01852 | |
City Area Code | (978) | |
Local Phone Number | 459-9000 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | EBTC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,124,086 | |
Entity Central Index Key | 0001018399 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 45,345 | $ 33,572 |
Interest-earning deposits with banks | 368,343 | 403,004 |
Total cash and cash equivalents | 413,688 | 436,576 |
Investments: | ||
Debt securities at fair value (amortized cost of $950,881 and $950,523, respectively) | 827,215 | 956,430 |
Equity securities at fair value | 3,815 | 1,785 |
Total investment securities at fair value | 831,030 | 958,215 |
Federal Home Loan Bank ("FHLB") stock | 2,343 | 2,164 |
Loans: | ||
Total loans | 3,109,369 | 2,920,684 |
Allowance for credit losses | (51,211) | (47,704) |
Net loans | 3,058,158 | 2,872,980 |
Premises and equipment, net | 44,141 | 44,689 |
Lease right-of-use asset | 24,559 | 24,295 |
Accrued interest receivable | 15,746 | 13,354 |
Deferred income taxes, net | 51,692 | 19,644 |
Bank-owned life insurance | 63,847 | 62,954 |
Prepaid income taxes | 1,205 | 279 |
Prepaid expenses and other assets | 17,755 | 7,013 |
Goodwill | 5,656 | 5,656 |
Total assets | 4,529,820 | 4,447,819 |
Liabilities | ||
Deposits | 4,138,038 | 3,980,239 |
Borrowed funds | 2,934 | 5,479 |
Subordinated debt | 59,102 | 58,979 |
Lease liability | 24,020 | 23,627 |
Accrued expenses and other liabilities | 32,700 | 31,063 |
Accrued interest payable | 833 | 1,537 |
Total liabilities | 4,257,627 | 4,100,924 |
Commitments and Contingencies | ||
Shareholders' Equity | ||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,127,453 and 12,038,382 shares issued and outstanding, respectively | 121 | 120 |
Additional paid-in capital | 103,007 | 100,352 |
Retained earnings | 264,738 | 241,761 |
Accumulated other comprehensive (loss) income | (95,673) | 4,662 |
Total shareholders' equity | 272,193 | 346,895 |
Total liabilities and shareholders' equity | $ 4,529,820 | $ 4,447,819 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Debt securities, amortized cost | $ 950,881 | $ 950,523 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,127,453 | 12,038,382 |
Common stock, outstanding (in shares) | 12,127,453 | 12,038,382 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Interest and dividend income: | ||||
Loans and loans held for sale | $ 35,306 | $ 33,420 | $ 98,149 | $ 100,730 |
Investment securities | 4,728 | 3,893 | 14,097 | 10,715 |
Other interest-earning assets | 2,068 | 262 | 2,642 | 471 |
Total interest and dividend income | 42,102 | 37,575 | 114,888 | 111,916 |
Interest expense: | ||||
Deposits | 1,460 | 862 | 2,731 | 3,295 |
Borrowed funds | 13 | 17 | 39 | 43 |
Subordinated debt | 850 | 817 | 2,485 | 2,677 |
Total interest expense | 2,323 | 1,696 | 5,255 | 6,015 |
Net interest income | 39,779 | 35,879 | 109,633 | 105,901 |
Provision for credit losses | 1,000 | 28 | 3,939 | 747 |
Net interest income after provision for credit losses | 38,779 | 35,851 | 105,694 | 105,154 |
Non-interest income: | ||||
Wealth management fees | 1,626 | 1,768 | 4,965 | 5,018 |
Deposit and interchange fees | 2,045 | 1,813 | 5,847 | 5,070 |
Income on bank-owned life insurance, net | 303 | 250 | 893 | 518 |
Net gains on sales of debt securities | 0 | 0 | 1,062 | 128 |
Net gains on sales of loans | 8 | 177 | 30 | 795 |
Loss on termination of swaps | 0 | (1,847) | 0 | (1,847) |
(Loss) gain on equity securities | (193) | 6 | (688) | 154 |
Other income | 736 | 912 | 2,143 | 2,294 |
Total non-interest income | 4,525 | 3,079 | 14,252 | 12,130 |
Non-interest expense: | ||||
Salaries and employee benefits | 18,915 | 17,224 | 53,450 | 49,377 |
Occupancy and equipment expenses | 2,203 | 2,471 | 6,982 | 7,268 |
Technology and telecommunications expenses | 2,599 | 2,583 | 8,154 | 7,877 |
Advertising and public relations expenses | 510 | 435 | 1,737 | 1,602 |
Audit, legal and other professional fees | 693 | 558 | 2,078 | 1,702 |
Deposit insurance premiums | 391 | 593 | 1,313 | 1,327 |
Supplies and postage expenses | 219 | 200 | 663 | 605 |
Loss on extinguishment of subordinated debt | 0 | 0 | 0 | 713 |
Other operating expenses | 2,007 | 1,705 | 5,770 | 5,138 |
Total non-interest expense | 27,537 | 25,769 | 80,147 | 75,609 |
Income before income taxes | 15,767 | 13,161 | 39,799 | 41,675 |
Provision for income taxes | 3,805 | 3,329 | 9,389 | 10,352 |
Net income | $ 11,962 | $ 9,832 | $ 30,410 | $ 31,323 |
Basic earnings per share (in dollars per share) | $ 0.99 | $ 0.82 | $ 2.51 | $ 2.61 |
Diluted earnings per share (in dollars per share) | $ 0.98 | $ 0.81 | $ 2.50 | $ 2.60 |
Basic weighted average common shares outstanding (in shares) | 12,119,348 | 12,022,610 | 12,094,613 | 11,997,199 |
Diluted weighted average common shares outstanding (in shares) | 12,156,695 | 12,065,100 | 12,143,468 | 12,038,561 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,962 | $ 9,832 | $ 30,410 | $ 31,323 |
Other comprehensive (loss) income, net of tax | ||||
Net change in fair value of debt securities | (23,295) | (2,629) | (100,335) | (10,552) |
Net change in fair value of cash flow hedges | 0 | 1,333 | 0 | 2,023 |
Total other comprehensive loss, net of tax | (23,295) | (1,296) | (100,335) | (8,529) |
Total comprehensive (loss) income, net | $ (11,333) | $ 8,536 | $ (69,925) | $ 22,794 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss)/Income |
Beginning balance (in shares) at Dec. 31, 2020 | 11,937,795 | ||||||
Balance, beginning at Dec. 31, 2020 | $ 334,426 | $ (6,510) | $ 119 | $ 97,137 | $ 214,977 | $ (6,510) | $ 22,193 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 31,323 | 31,323 | |||||
Other comprehensive income (loss), net | (8,529) | (8,529) | |||||
Common stock dividend declared | (6,653) | (6,653) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 28,499 | ||||||
Common stock issued under dividend reinvestment plan | 938 | 938 | |||||
Common stock issued, other (in shares) | 1,322 | ||||||
Common stock issued, other | 42 | 42 | |||||
Stock-based compensation, net (in shares) | 63,684 | ||||||
Stock-based compensation, net | 1,657 | $ 1 | 1,656 | ||||
Net settlement for employee taxes on restricted stock and options (in shares) | (7,803) | ||||||
Net settlement for employee taxes on restricted stock and options | (260) | (260) | |||||
Stock options exercised, net (in shares) | 6,104 | ||||||
Stock options exercised, net | 106 | 106 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 12,029,601 | ||||||
Balance, ending at Sep. 30, 2021 | 346,540 | $ 120 | 99,619 | 233,137 | 13,664 | ||
Beginning balance (in shares) at Jun. 30, 2021 | 12,014,933 | ||||||
Balance, beginning at Jun. 30, 2021 | 339,317 | $ 120 | 98,708 | 225,529 | 14,960 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 9,832 | 9,832 | |||||
Other comprehensive income (loss), net | (1,296) | (1,296) | |||||
Common stock dividend declared | (2,224) | (2,224) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 9,192 | ||||||
Common stock issued under dividend reinvestment plan | 310 | 310 | |||||
Common stock issued, other (in shares) | 461 | ||||||
Common stock issued, other | 15 | 15 | |||||
Stock-based compensation, net (in shares) | (56) | ||||||
Stock-based compensation, net | 503 | 503 | |||||
Net settlement for employee taxes on restricted stock and options (in shares) | 0 | ||||||
Net settlement for employee taxes on restricted stock and options | (8) | (8) | |||||
Stock options exercised, net (in shares) | 5,071 | ||||||
Stock options exercised, net | 91 | 91 | |||||
Ending balance (in shares) at Sep. 30, 2021 | 12,029,601 | ||||||
Balance, ending at Sep. 30, 2021 | $ 346,540 | $ 120 | 99,619 | 233,137 | 13,664 | ||
Beginning balance (in shares) at Dec. 31, 2021 | 12,038,382 | 12,038,382 | |||||
Balance, beginning at Dec. 31, 2021 | $ 346,895 | $ 120 | 100,352 | 241,761 | 4,662 | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 30,410 | 30,410 | |||||
Other comprehensive income (loss), net | (100,335) | (100,335) | |||||
Common stock dividend declared | (7,433) | (7,433) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 30,821 | ||||||
Common stock issued under dividend reinvestment plan | 1,053 | 1,053 | |||||
Common stock issued, other (in shares) | 1,195 | ||||||
Common stock issued, other | 41 | 41 | |||||
Stock-based compensation, net (in shares) | 60,345 | ||||||
Stock-based compensation, net | 1,786 | $ 1 | 1,785 | ||||
Net settlement for employee taxes on restricted stock and options (in shares) | (9,136) | ||||||
Net settlement for employee taxes on restricted stock and options | (332) | (332) | |||||
Stock options exercised, net (in shares) | 5,846 | ||||||
Stock options exercised, net | $ 108 | 108 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 12,127,453 | 12,127,453 | |||||
Balance, ending at Sep. 30, 2022 | $ 272,193 | $ 121 | 103,007 | 264,738 | (95,673) | ||
Beginning balance (in shares) at Jun. 30, 2022 | 12,115,924 | ||||||
Balance, beginning at Jun. 30, 2022 | 285,110 | $ 121 | 102,108 | 255,259 | (72,378) | ||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 11,962 | 11,962 | |||||
Other comprehensive income (loss), net | (23,295) | (23,295) | |||||
Common stock dividend declared | (2,483) | (2,483) | |||||
Common stock issued under dividend reinvestment plan (in shares) | 11,297 | ||||||
Common stock issued under dividend reinvestment plan | 354 | 354 | |||||
Common stock issued, other (in shares) | 344 | ||||||
Common stock issued, other | 11 | 11 | |||||
Stock-based compensation, net (in shares) | 61 | ||||||
Stock-based compensation, net | 553 | 553 | |||||
Net settlement for employee taxes on restricted stock and options (in shares) | (1,408) | ||||||
Net settlement for employee taxes on restricted stock and options | (46) | (46) | |||||
Stock options exercised, net (in shares) | 1,235 | ||||||
Stock options exercised, net | $ 27 | 27 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 12,127,453 | 12,127,453 | |||||
Balance, ending at Sep. 30, 2022 | $ 272,193 | $ 121 | $ 103,007 | $ 264,738 | $ (95,673) |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared (in usd per share) | $ 0.205 | $ 0.185 | $ 0.615 | $ 0.555 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 30,410 | $ 31,323 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 3,939 | 747 |
Depreciation and amortization | 5,292 | 5,894 |
Stock-based compensation expense | 1,724 | 1,550 |
Income on bank-owned life insurance, net | (893) | (518) |
Net gains on sales of debt securities | (1,062) | (128) |
Mortgage loans originated for sale | (1,263) | (28,084) |
Proceeds from mortgage loans sold | 1,293 | 28,837 |
Net gains on sales of loans | (30) | (795) |
Net losses (gains) on equity securities | 688 | (154) |
Loss on termination of swaps | 0 | 1,847 |
Changes in: | ||
Net (increase) decrease in other assets | (16,433) | 1,864 |
Net decrease in other liabilities | (3,249) | (7,563) |
Net cash provided by operating activities | 20,416 | 34,820 |
Cash flows from investing activities: | ||
Proceeds from sales of debt securities | 32,715 | 3,059 |
Purchase of debt securities | (97,789) | (300,660) |
Proceeds from maturities, calls and pay-downs of debt securities | 68,149 | 64,779 |
Net purchases of equity securities | (2,718) | (541) |
Net purchases of FHLB capital stock | (179) | (259) |
Net (increase) decrease in loans | (188,758) | 219,277 |
Additions to premises and equipment, net | (3,415) | (2,665) |
Purchase of bank-owned life insurance | 0 | 30,000 |
Net cash (used in) provided by investing activities | (191,995) | (47,010) |
Cash flows from financing activities: | ||
Net increase in deposits | 157,799 | 419,673 |
Net (decrease) increase in borrowed funds | (2,545) | 3,826 |
Repayment of subordinated debt | 0 | (15,600) |
Loss on extinguishment of subordinated debt | 0 | 713 |
Cash dividends paid, net of dividend reinvestment plan | (6,380) | (5,715) |
Proceeds from issuance of common stock | 41 | 42 |
Net settlement for employee taxes on restricted stock and options | (332) | (260) |
Net proceeds from stock option exercises | 108 | 106 |
Net cash provided by financing activities | 148,691 | 402,785 |
Net (decrease) increase in cash and cash equivalents | (22,888) | 390,595 |
Cash and cash equivalents at beginning of period | 436,576 | 253,782 |
Cash and cash equivalents at end of period | $ 413,688 | $ 644,377 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Organization of the Company and Basis of Presentation The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2021 audited consolidated financial statements and notes thereto contained in the 2021 Annual Report on Form 10-K of Enterprise Bancorp, Inc. (the "Company," "Enterprise," "we," or "our") as filed with the Securities and Exchange Commission (the "SEC") on March 10, 2022 (the "2021 Annual Report on Form 10-K"). The Company has not materially changed its significant accounting policies from those disclosed in its 2021 Annual Report on Form 10-K. See Item (c), " Recent Accounting Pronouncements ," below in this Note 1. The accompanying unaudited consolidated interim financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank (the "Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, both organized under the laws of the State of Delaware, to engage in insurance sales activities and offer non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. The security corporations, which hold various types of qualifying securities, are limited to conducting investment activities that the Bank itself would be allowed to conduct under applicable laws. The services offered through the Bank and its subsidiaries are managed as one strategic unit and represent the Company's only reportable operating segment. The accompanying unaudited consolidated interim financial statements, and notes thereto, in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 (this "Form 10-Q"), have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the SEC instructions for Quarterly Reports on Form 10-Q. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all necessary adjustments, consisting of normal recurring accruals and elimination of intercompany balances, for a fair presentation. Certain previous years' amounts in the unaudited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. Interim results are not necessarily indicative of results to be expected for the entire year, or any future period. (b) Uses of Estimates In preparing the unaudited consolidated interim financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the period then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. As discussed in the Company's 2021 Annual Report on Form 10-K, the most significant areas in which management applies critical assumptions and estimates are: the estimates of the allowance for credit losses ("ACL") for loans and available for sale securities, the reserve for unfunded commitments, and the impairment review of goodwill. Refer to Note 1, "Summary of Significant Accounting Policies," to the Company's audited consolidated financial statements included in the Company's 2021 Annual Report on Form 10-K for accounting policies related to these significant estimates. (c) Recent Accounting Pronouncements Accounting pronouncements not yet adopted by the Company In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. This ASU clarifies the guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets. The ASU amends the guidance in ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, that, among other things, established the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible. ASU 2022-01 renames that method the "portfolio layer" method and addresses feedback from stakeholders regarding its application. For the Company, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently assessing the impact of this ASU and expects that this ASU will not have a material impact to the consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit loss ("CECL") methodology for estimating allowances for credit losses and enhances the disclosure requirements for loan restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross charge-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For the Company, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently assessing the impact of this ASU and expects that implementation will not have a material impact to the consolidated financial statements. Accounting pronouncements adopted by the Company In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946). This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The rules reduce the required reporting periods to align them with the relevant financial statement periods required by SEC rules and requires certain statistical disclosures for annual periods, and interim disclosures if a material change in the information, or trend, has occurred. The amendments in this update are effective upon addition to the FASB Codification and apply to fiscal years ending on or after December 15, 2021. However, voluntary early compliance is permitted upon the effective date, provided that the rules are applied in their entirety. The amended disclosures did not have a material impact on the consolidated financial statements. (d) Subsequent Events The Company has evaluated subsequent events and transactions from September 30, 2022, through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP and determined there were no material subsequent events requiring recognition or disclosure. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Debt Securities All of the Company's debt securities were classified as available-for-sale and carried at fair value as of the dates specified in the tables below. The amortized cost and fair values of debt securities at the dates specified are summarized as follows: September 30, 2022 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value Federal agency obligations $ 5,016 $ — $ 6 $ 5,010 U.S. treasury securities 85,865 — 6,205 79,660 Federal agency collateralized mortgage obligations ("CMO") 446,530 — 66,453 380,077 Federal agency mortgage-baked securities ("MBS") 23,305 — 3,326 19,979 Taxable municipal securities 286,449 — 44,196 242,253 Tax-exempt municipal securities 85,293 15 1,840 83,468 Corporate bonds 6,475 — 195 6,280 Subordinated corporate bonds 11,948 — 1,460 10,488 Total debt securities, at fair value $ 950,881 $ 15 $ 123,681 $ 827,215 December 31, 2021 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value U.S. treasury securities $ 62,850 $ — $ 684 $ 62,166 Federal agency CMO 489,789 5,672 8,748 486,713 Federal agency MBS 22,794 517 417 22,894 Taxable municipal securities 272,507 5,607 2,264 275,850 Tax-exempt municipal securities 87,024 5,648 — 92,672 Corporate bonds 8,559 441 — 9,000 Subordinated corporate bonds 7,000 135 — 7,135 Total debt securities, at fair value $ 950,523 $ 18,020 $ 12,113 $ 956,430 At September 30, 2022, management performed its quarterly analysis of all securities with unrealized losses and determined that the losses were primarily attributable to significant increases in market interest rates experienced during the first nine months of 2022. Management concluded that no ACL for available-for-sale securities was necessary as of September 30, 2022 and anticipates they will mature or be called at par value. Accrued interest receivable on available-for-sale debt securities, included in the "Accrued Interest Receivable" line item on the Company's Consolidated Balance Sheets, amounted to $4.4 million and $3.2 million at September 30, 2022 and December 31, 2021, respectively. The following tables summarize the duration of unrealized losses for debt securities at September 30, 2022 and December 31, 2021: September 30, 2022 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings Federal agency obligations $ 5,011 $ 6 $ — $ — $ 5,011 $ 6 1 U.S. treasury securities 49,643 2,290 30,017 3,915 79,660 6,205 12 Federal agency CMO 193,638 21,696 186,439 44,757 380,077 66,453 101 Federal agency MBS 10,741 911 9,237 2,415 19,978 3,326 11 Taxable municipal securities 160,929 25,059 77,625 19,137 238,554 44,196 269 Tax-exempt municipal securities 78,249 1,840 — — 78,249 1,840 128 Corporate bonds 6,279 195 — — 6,279 195 31 Subordinated corporate bonds 6,875 1,073 3,613 387 10,488 1,460 6 Total $ 511,365 $ 53,070 $ 306,931 $ 70,611 $ 818,296 $ 123,681 559 December 31, 2021 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings U.S. treasury securities $ 62,166 $ 684 $ — $ — $ 62,166 $ 684 9 Federal agency CMO 266,313 6,627 51,281 2,121 317,594 8,748 43 Federal agency MBS 11,447 417 — — 11,447 417 2 Taxable municipal securities 117,388 2,023 6,727 241 124,115 2,264 118 Total $ 457,314 $ 9,751 $ 58,008 $ 2,362 $ 515,322 $ 12,113 172 The contractual maturity distribution at September 30, 2022 of debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 13,464 $ 13,407 Due after one, but within five years 198,843 189,724 Due after five, but within ten years 290,032 248,284 Due after ten years 448,542 375,800 Total debt securities $ 950,881 $ 827,215 Scheduled contractual maturities shown above may not reflect the actual maturities of the investments. The actual MBS/CMO cash flows likely will be faster than presented above due to prepayments and amortization. Similarly, included in the table above are callable securities, comprised of municipal securities and corporate bonds, with a fair value of $159.0 million, which can be redeemed by the issuers prior to the maturity presented above. Management considers these factors when evaluating the interest-rate risk in the Company's asset-liability management program. From time to time, the Company may pledge debt securities as collateral for deposit account balances of municipal customers, and for borrowing capacity with the FHLB and the Federal Reserve Bank of Boston ("FRB"). The fair value of debt securities pledged as collateral for these purposes was $813.0 million and $949.3 million at September 30, 2022 and December 31, 2021, respectively. The Company had no sales of debt securities during the three months ended September 30, 2022 or September 30, 2021. Sales of debt securities for the nine months ended September 30, 2022 and September 30, 2021 are summarized as follows: Nine months ended September 30, (Dollars in thousands) 2022 2021 Amortized cost of debt securities sold (1) $ 31,653 $ 2,931 Gross realized gains on sales 1,062 128 Gross realized losses on sales — — Total proceeds from sales of debt securities $ 32,715 $ 3,059 _________________________________________ (1) Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. Equity Securities The Company held equity securities with a fair value of $3.8 million at September 30, 2022 and $1.8 million at December 31, 2021. At September 30, 2022, the equity portfolio consisted of investments in broad-based equity index funds and common stock of entities in the financial services industry. The equity portfolio also included mutual funds held in conjunction with the Company's supplemental executive retirement and deferred compensation plan. Gains and losses on equity securities for the three and nine months ended September 30, 2022 and September 30, 2021 are summarized as follows: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2022 2021 2022 2021 Net (losses) gains recognized during the period on equity securities $ (193) $ 6 $ (688) $ 154 Less: Net gains recognized on equity securities sold during the period — — — 6 Unrealized (losses) gains recognized during the reporting period on equity securities still held at the end of the period (included in other income) $ (193) $ 6 $ (688) $ 148 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans | Loans Loan Portfolio Classifications Major classifications of loans and their amortized cost as of the dates indicated were as follows: (Dollars in thousands) September 30, December 31, Commercial real estate $ 1,886,365 $ 1,680,792 Commercial and industrial 413,347 412,070 Commercial construction 396,027 410,443 SBA Paycheck Protection Program ("PPP") 2,725 71,502 Total commercial loans 2,698,464 2,574,807 Residential mortgages 321,663 256,940 Home equity loans and lines 80,882 80,467 Consumer 8,360 8,470 Total retail loans 410,905 345,877 Total loans 3,109,369 2,920,684 ACL for loans (51,211) (47,704) Net loans $ 3,058,158 $ 2,872,980 Net deferred loan origination fees, included in the amortized costs of loans reflected in the table above, amounted to $5.2 million at September 30, 2022 and $7.5 million at December 31, 2021. Accrued interest receivable on loans amounted to $11.3 million and $10.2 million at September 30, 2022 and December 31, 2021, respectively, and was included in the "Accrued interest receivable" line item on the Company's Consolidated Balance Sheets. Commercial loans originated by other banks in which the Company is a participating institution are carried at the pro-rata share of ownership and amounted to $90.8 million at September 30, 2022 and $62.6 million at December 31, 2021. See also "Loans serviced for others" below for information related to commercial loans participated out to various other institutions. The Company expects that the remaining principal balance of PPP loans originated by the Company will be forgiven by the Small Business Administration ("SBA") or otherwise repaid as agreed. Management has segmented the PPP loan portfolio as a group of loans with similar risk characteristics in its assessment for credit losses and, as of September 30, 2022, has not recorded an ACL on these loans, but will continue to monitor the PPP loan portfolio. Loans serviced for others At September 30, 2022 and December 31, 2021, the Company was servicing residential mortgage loans owned by investors amounting to $9.3 million and $10.4 million, respectively. Additionally, the Company was servicing commercial loans originated by the Company and participated out to various other institutions amounting to $59.0 million and $66.7 million at September 30, 2022 and December 31, 2021, respectively. Loans serving as collateral Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity as of the dates indicated are summarized below: (Dollars in thousands) September 30, December 31, Commercial real estate $ 117,832 $ 143,056 Residential mortgages 303,189 235,744 Home equity 41,686 5,055 Total loans pledged to FHLB $ 462,707 $ 383,855 |
ACL for Loans
ACL for Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
ACL for Loans | ACL for Loans There have been no material changes to the Company's ACL methodology, underwriting practices, or credit risk management system used to estimate credit loss exposure since December 31, 2021. See Note 4, "ACL for Loans," to the Company's audited consolidated financial statements contained in the 2021 Annual Report on Form 10-K. Risk ratings and adversely classified loans The Company's loan risk rating system classifies loans depending on risk of loss characteristics. Adversely classified ratings for loans determined to be of weaker credit range from "special mention," for loans that may need additional monitoring, to the more severe adverse classifications of "substandard," "doubtful," and "loss" based on criteria established under banking regulations. The following tables present the amortized cost basis of the Company's loan portfolio risk ratings within portfolio classifications, by origination date, or revolving status as of the dates indicated: Balance at September 30, 2022 Term Loans by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate Pass $ 300,077 $ 390,986 $ 197,656 $ 220,986 $ 128,316 $ 612,567 $ 1,403 $ — $ 1,851,991 Special mention — 289 — 510 2,828 17,823 — — 21,450 Substandard — — — 1,440 632 10,852 — — 12,924 Total commercial real estate 300,077 391,275 197,656 222,936 131,776 641,242 1,403 — 1,886,365 Commercial and industrial Pass 34,275 54,762 33,631 31,057 14,587 47,119 189,114 1,537 406,082 Special mention — 20 — 12 661 315 2,044 — 3,052 Substandard — — — 10 134 357 3,674 20 4,195 Loss — — — — — 18 — — 18 Total commercial and industrial 34,275 54,782 33,631 31,079 15,382 47,809 194,832 1,557 413,347 Commercial construction Pass 104,498 161,351 55,471 33,510 8,420 3,504 24,521 989 392,264 Special mention — — — 3,763 — — — — 3,763 Total commercial construction 104,498 161,351 55,471 37,273 8,420 3,504 24,521 989 396,027 SBA PPP (1) — 1,132 1,593 — — — — — 2,725 Residential mortgages Pass 97,484 74,523 50,753 20,965 19,101 56,027 — — 318,853 Special mention — — — — — 328 — — 328 Substandard — — — 1,076 — 1,406 — — 2,482 Total residential mortgages 97,484 74,523 50,753 22,041 19,101 57,761 — — 321,663 Home equity Pass 582 605 469 352 — 1,475 76,032 873 80,388 Substandard — 274 — — — 220 — — 494 Total home equity 582 879 469 352 — 1,695 76,032 873 80,882 Consumer Pass 2,819 1,993 1,160 1,179 689 520 — — 8,360 Total consumer 2,819 1,993 1,160 1,179 689 520 — — 8,360 Total loans $ 539,735 $ 685,935 $ 340,733 $ 314,860 $ 175,368 $ 752,531 $ 296,788 $ 3,419 $ 3,109,369 Balance at December 31, 2021 Term Loans by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate Pass $ 402,838 $ 220,942 $ 239,248 $ 120,286 $ 173,652 $ 479,298 $ 3,019 $ — $ 1,639,283 Special mention — — 989 802 — 7,626 — — 9,417 Substandard — — 2,628 3,111 12,842 13,336 — — 31,917 Doubtful — — — 175 — — — — 175 Total commercial real estate 402,838 220,942 242,865 124,374 186,494 500,260 3,019 — 1,680,792 Commercial and industrial Pass 64,555 40,333 36,177 19,754 14,983 44,835 174,320 1,243 396,200 Special mention — 644 2,173 958 59 1,431 4,053 18 9,336 Substandard — — 15 100 25 3,845 2,440 109 6,534 Total commercial and industrial 64,555 40,977 38,365 20,812 15,067 50,111 180,813 1,370 412,070 Commercial construction Pass 175,069 106,165 54,907 24,343 4,561 19,489 24,864 — 409,398 Substandard — — — — — — — 1,045 1,045 Total commercial construction 175,069 106,165 54,907 24,343 4,561 19,489 24,864 1,045 410,443 SBA PPP (1) 66,232 5,270 — — — — — — 71,502 Residential mortgages Pass 79,130 56,948 27,343 22,743 12,886 55,571 — — 254,621 Special mention — — — — — 590 — — 590 Substandard — — — — — 1,729 — — 1,729 Total residential mortgages 79,130 56,948 27,343 22,743 12,886 57,890 — — 256,940 Home equity Pass 486 478 498 — — 1,727 76,619 414 80,222 Substandard — — — — — 245 — — 245 Total home equity 486 478 498 — — 1,972 76,619 414 80,467 Consumer Pass 2,843 1,498 1,619 1,005 617 390 — 473 8,445 Doubtful 25 — — — — — — — 25 Total consumer 2,868 1,498 1,619 1,005 617 390 — 473 8,470 Total loans $ 791,178 $ 432,278 $ 365,597 $ 193,277 $ 219,625 $ 630,112 $ 285,315 $ 3,302 $ 2,920,684 __________________________________________ (1) All PPP loans were pass-rated at September 30, 2022 and December 31, 2021, as these loans are 100% guaranteed by the SBA. The total amortized cost basis of adversely classified loans amounted to $48.7 million, or 1.57% of total loans, at September 30, 2022, and $61.0 million, or 2.09% of total loans, at December 31, 2021. Past due and non-accrual loans The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: Balance at September 30, 2022 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Due Loans (1) Current Loans (1) Total Commercial real estate $ 1,555 $ — $ 1,615 $ 3,170 $ 1,883,195 $ 1,886,365 Commercial and industrial 808 72 201 1,081 412,266 413,347 Commercial construction 294 — — 294 395,733 396,027 SBA PPP — — — — 2,725 2,725 Residential mortgages 1,122 — 253 1,375 320,288 321,663 Home equity 36 — 73 109 80,773 80,882 Consumer 13 — — 13 8,347 8,360 Total loans $ 3,828 $ 72 $ 2,142 $ 6,042 $ 3,103,327 $ 3,109,369 Balance at December 31, 2021 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Due Loans (1) Current Loans (1) Total Commercial real estate $ 1,917 $ — $ 1,719 $ 3,636 $ 1,677,156 $ 1,680,792 Commercial and industrial 564 678 194 1,436 410,634 412,070 Commercial construction — — — — 410,443 410,443 SBA PPP 162 19 — 181 71,321 71,502 Residential mortgages 182 — 432 614 256,326 256,940 Home equity 45 — — 45 80,422 80,467 Consumer 7 27 — 34 8,436 8,470 Total loans $ 2,877 $ 724 $ 2,345 $ 5,946 $ 2,914,738 $ 2,920,684 _______________________________________ (1) The loan balances in the tables above include loans designated as non-accrual according to their payment due status. At September 30, 2022 and December 31, 2021, all loans past due 90 days or more were carried as non-accrual. In addition, loans that were less than 90 days past due where reasonable doubt existed as to the full and timely collection of interest or principal, have also been designated as non-accrual, despite their payment due status. The following tables present the amortized cost of non-accrual loans by portfolio classification as of the dates indicated: Balance at September 30, 2022 (Dollars in thousands) Total Non-accrual Loans Non-accrual Loans without a Specific Reserve Non-accrual Loans with a Specific Reserve Related Specific Commercial real estate $ 3,255 $ 1,949 $ 1,306 $ 271 Commercial and industrial 675 403 272 272 Commercial construction — — — — SBA PPP — — — — Residential mortgages 1,567 1,567 — — Home equity 220 220 — — Consumer — — — — Total loans $ 5,717 $ 4,139 $ 1,578 $ 543 Balance at December 31, 2021 (Dollars in thousands) Total Non-accrual Loans Non-accrual Loans without a Specific Reserve Non-accrual Loans with a Specific Reserve Related Specific Commercial real estate $ 22,870 $ 7,144 $ 15,726 $ 896 Commercial and industrial 1,542 1,337 205 185 Commercial construction 1,045 1,045 — — SBA PPP — — — — Residential mortgages 794 633 161 161 Home equity 246 246 — — Consumer 25 — 25 25 Total loans $ 26,522 $ 10,405 $ 16,117 $ 1,267 The ratio of non-accrual loans to total loans amounted to 0.18% and 0.91% at September 30, 2022 and December 31, 2021, respectively. The decline in non-accrual loans at September 30, 2022 compared to December 31, 2021 was due primarily to two commercial relationships that were returned to accrual status due to improved financial strength and consistent payment history. Non-accrual loans that were not adversely classified amounted to $3 thousand at both September 30, 2022 and December 31, 2021. These balances primarily represented the guaranteed portions of non-performing SBA loans. At September 30, 2022 and December 31, 2021, additional funding commitments for non-accrual loans were not material. Collateral dependent loans The carrying value of collateral dependent loans amounted to $26.4 million at September 30, 2022 compared to $34.6 million at December 31, 2021. Total accruing collateral dependent loans amounted to $21.0 million while non-accrual collateral dependent loans amounted to $5.4 million as of September 30, 2022. Total accruing collateral dependent loans amounted to $8.4 million while non-accrual collateral dependent loans amounted to $26.2 million as of December 31, 2021. The following tables present the recorded investment in collateral dependent individually evaluated loans and the related specific allowance by portfolio allocation as of the dates indicated: Balance at September 30, 2022 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 26,411 $ 23,552 $ 22,246 $ 1,306 $ 271 Commercial and industrial 3,039 678 616 62 4 Commercial construction — — — — — SBA PPP — — — — — Residential mortgages 2,117 1,953 1,953 — — Home equity 393 220 220 — — Consumer — — — — — Total $ 31,960 $ 26,403 $ 25,035 $ 1,368 $ 275 Balance at December 31, 2021 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 29,562 $ 27,617 $ 11,891 $ 15,726 $ 896 Commercial and industrial 8,880 4,699 4,191 508 128 Commercial construction 1,181 1,045 1,045 — — SBA PPP — — — — — Residential mortgages 1,165 1,033 1,033 — — Home equity 347 246 246 — — Consumer — — — — — Total $ 41,135 $ 34,640 $ 18,406 $ 16,234 $ 1,024 At September 30, 2022 and December 31, 2021, additional funding commitments for collateral dependent loans were not material. Troubled debt restructurings ("TDRs") Total TDR loans as of September 30, 2022 amounted to $8.6 million compared to $16.4 million as of December 31, 2021. At September 30, 2022 and December 31, 2021, TDR loans on accrual status amounted to $5.8 million and $8.6 million, respectively, and TDR loans included in non-accrual loans amounted to $2.8 million and $7.8 million, respectively. The Company continues to work with customers and enter into loan modifications (which may or may not be TDRs) to the extent deemed to be necessary or appropriate while attempting to achieve the best mutual outcome given the individual financial circumstances and future prospects of the borrower. At September 30, 2022 and September 30, 2021, additional funding commitments for TDR loans were not material. The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the three months indicated: Three months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Number of Pre-modification Post-modification Commercial real estate 1 $ 131 $ 131 1 $ 2,690 $ 2,656 Commercial and industrial — — — 1 15 14 Total 1 $ 131 $ 131 2 $ 2,705 $ 2,670 The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the nine months indicated: Nine months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Number of Pre-modification Post-modification Commercial real estate 5 $ 3,319 $ 2,841 3 $ 3,591 $ 3,708 Commercial and industrial — — — 1 15 14 Residential mortgages — — — 1 224 224 Total 5 $ 3,319 $ 2,841 5 $ 3,830 $ 3,946 There were no subsequent charge-offs associated with the new TDRs noted in the table above during the nine months ended September 30, 2022 and September 30, 2021. Payment defaults by portfolio classification, during the three months indicated, on loans modified as TDRs within the preceding twelve months are detailed below: Three months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Number of TDRs that Defaulted Post- Commercial and industrial — — 1 14 Total — $ — 1 $ 14 Payment defaults by portfolio classification, during the nine months indicated, on loans modified as TDRs within the preceding twelve months are detailed below: Nine months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Number of TDRs that defaulted Post- Commercial real estate 3 $ 1,325 1 $ 670 Commercial and industrial 1 45 1 14 Total 4 $ 1,370 2 $ 684 The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the nine-month periods indicated: Nine months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of Amount Number of Amount Extended maturity date — $ — 1 $ 382 Temporary payment reduction and payment re-amortization of remaining principal over extended term — — 2 894 Temporary interest only payment plan 3 151 1 14 Deferral of interest 1 1,306 — — Other payment concessions 1 1,384 1 2,656 Total 5 $ 2,841 5 $ 3,946 Amount of ACL for loans associated with TDRs listed above $ 271 $ 14 ACL and provision for credit loss activity The following table presents changes in the provision for credit losses on loans and unfunded commitments during the three and nine-month periods indicated: Three months ended Nine months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Provision for credit losses on loans $ 560 $ (653) $ 3,580 $ 209 Provision for unfunded commitments 440 681 359 538 Total provision for credit losses $ 1,000 $ 28 $ 3,939 $ 747 ACL for loans The ACL for loans amounted to $51.2 million and $47.7 million at September 30, 2022 and December 31, 2021, respectively. The ACL for loans to total loans ratio was 1.65% and 1.63% at September 30, 2022 and December 31, 2021, respectively. The following tables present changes in the ACL for loans by portfolio classification, during the three months indicated: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2022 $ 35,379 $ 8,938 $ 3,667 $ 1,902 $ 554 $ 263 $ 50,703 Provision for credit losses on loans 404 (44) 95 74 11 20 560 Recoveries — 29 — — 2 4 35 Less: Charge-offs — 82 — — — 5 87 Ending Balance at September 30, 2022 $ 35,783 $ 8,841 $ 3,762 $ 1,976 $ 567 $ 282 $ 51,211 (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2021 $ 34,008 $ 10,800 $ 3,777 $ 843 $ 295 $ 318 $ 50,041 Provision for credit losses on loans (1,660) 694 397 (4) (32) (48) (653) Recoveries — 19 — — 57 2 78 Less: Charge-offs — 2,194 — — — 10 2,204 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 The following table presents changes in the ACL for loans by portfolio classification, during the nine months indicated: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2021 $ 31,847 $ 9,574 $ 4,090 $ 1,405 $ 465 $ 323 $ 47,704 Provision for credit losses for loans 3,936 (680) (328) 571 93 (12) 3,580 Recoveries — 139 — — 9 14 162 Less: Charge-offs — 192 — — — 43 235 Ending Balance at September 30, 2022 $ 35,783 $ 8,841 $ 3,762 $ 1,976 $ 567 $ 282 $ 51,211 (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2020 $ 26,755 $ 9,516 $ 6,129 $ 1,530 $ 467 $ 168 $ 44,565 CECL adjustment upon adoption 7,664 1,988 (2,416) (695) (158) 177 6,560 Provision for credit losses for loans (285) 156 461 4 (56) (71) 209 Recoveries 39 102 — — 67 5 213 Less: Charge-offs 1,825 2,443 — — — 17 4,285 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 Reserve for unfunded commitments The Company's reserve for unfunded commitments amounted to $4.1 million at September 30, 2022 and $3.7 million at December 31, 2021. Management believes that the Company's ACL for loans and reserve for unfunded commitments were adequate as of September 30, 2022. Other real estate owned ("OREO") The Company carried no OREO at September 30, 2022 and December 31, 2021. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases As of September 30, 2022, the Company had 16 facilities contracted under various non-cancelable operating leases, most of which provide options to the Company to extend the lease periods and include periodic rent adjustments. Lease expense for the three and nine months ended September 30, 2022 amounted to $397 thousand and $1.2 million, respectively. Lease expense for the three and nine months ended September 30, 2021 amounted to $414 thousand and $1.1 million, respectively. Variable lease costs and short-term lease expenses included in lease expense during these periods were immaterial. The weighted average remaining lease term for operating leases at September 30, 2022 and September 30, 2021 was 29.7 years and 28.8 years, respectively. The weighted average discount rate was 3.44% at September 30, 2022 and 3.61% at September 30, 2021. At September 30, 2022, the remaining undiscounted cash flows by year of these lease liabilities were as follows: (Dollars in thousands) Operating Leases 2022 (three remaining months) $ 359 2023 1,406 2024 1,435 2025 1,441 2026 1,452 Thereafter 32,848 Total lease payments 38,941 Less: Imputed interest 14,921 Total lease liability $ 24,020 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are summarized as follows as of the periods indicated: (Dollars in thousands) September 30, 2022 December 31, 2021 Non-interest checking $ 1,441,104 $ 1,364,258 Interest-bearing checking 719,474 743,587 Savings 351,665 310,244 Money market 1,395,756 1,355,701 CDs $250,000 or less 163,520 154,403 CDs greater than $250,000 66,519 52,046 Deposits $ 4,138,038 $ 3,980,239 All of the Company's deposits outstanding at both September 30, 2022 and December 31, 2021 were customer deposits. Customer deposits include reciprocal balances from checking, money market deposits and CDs received from participating banks in nationwide deposit networks due to our customers electing to participate in Company offered programs which allow for enhanced Federal Deposit Insurance Corporation ("FDIC") deposit insurance. Essentially, the equivalent of the customers' original deposited funds comes back to the Company and are carried within the appropriate category under deposits. The Company's balances in these reciprocal products were $580.6 million and $546.7 million at September 30, 2022 and December 31, 2021, respectively. |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Borrowed Funds and Subordinated Debt | Borrowed Funds and Subordinated Debt The Company's borrowed funds amounted to $2.9 million and $5.5 million at September 30, 2022 and December 31, 2021, respectively, and were comprised of FHLB advances related to specific lending projects under the FHLB's community development programs. Borrowed funds at September 30, 2022 and December 31, 2021 are summarized, as follows: September 30, 2022 December 31, 2021 (Dollars in thousands) Balance Rate Balance Rate Within 12 months $ — — % $ 2,485 0.29 % Over 5 years 2,934 1.71 % 2,994 1.70 % Total borrowed funds $ 2,934 1.71 % $ 5,479 1.06 % The Company also had outstanding subordinated debt (net of deferred issuance costs) of $59.1 million at September 30, 2022 and $59.0 million at December 31, 2021. The outstanding subordinated notes are due on July 15, 2030 and callable at the Company's option on or after July 15, 2025. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities See Note 9, "Derivatives and Hedging," to the Company's audited consolidated financial statements contained in the 2021 Annual Report on Form 10-K. The tables below present a summary of the Company's derivative financial instruments, notional amounts and fair values for the periods presented: As of September 30, 2022 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ — $ — $ 7,838 $ 836 Interest-rate contracts - pay fixed, receive floating 7,838 836 — — Total back-to-back interest-rate swaps $ 7,838 $ 836 $ 7,838 $ 836 December 31, 2021 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 36,263 $ 528 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 36,263 528 Total back-to-back interest-rate swaps $ 36,263 $ 528 $ 36,263 $ 528 __________________________________________ (1) Accrued interest balances related to the Company's interest-rate swaps are not included in the fair values above and are immaterial. The Company had no derivative fair value or cash flow hedges at either September 30, 2022 or December 31, 2021. Each back-to-back interest-rate swap consists of two interest-rate swaps (a customer swap and offsetting counterparty swap) and amounted to a total number of 4 interest-rate swaps outstanding at September 30, 2022 and 10 at December 31, 2021. As a result of this offsetting relationship, there were no net gains or losses recognized in income on back-to-back swaps during the nine months ended September 30, 2022 or September 30, 2021. Interest-rate swaps with counterparties are subject to master netting agreements, while interest-rate swaps with customers are not. At September 30, 2022, all the back-to-back swaps with the counterparty were in asset positions and at December 31, 2021, all the back-to-back swaps with the counterparty were in liability positions, therefore there was no netting reflected in the Company's Consolidated Balance Sheets as of the respective dates. Credit Risk The Company had one interest-rate swap counterparty that was rated A and A2 by Standard & Poor's and Moody's, respectively, at September 30, 2022. When the Company has credit risk exposure, collateral is posted by the counterparty. Collateral posted by counterparties is restricted and not considered an asset of the Company, therefore, it is not carried on the Company's Consolidated Balance Sheets. If the Company posts collateral, the restricted cash is carried on the Company's Consolidated Balance Sheets. The Company had credit risk exposure relating to interest-rate swaps with counterparties of $836 thousand and counterparties posted cash collateral of $712 thousand at September 30, 2022. At December 31, 2021 the Company had no credit risk exposure relating to interest-rate swaps with counterparties and posted restricted cash collateral of $840 thousand. Customer-related credit risk on back-to-back swaps is minimized by the cross collateralization of the loan and the interest-rate swap agreement to the customer's underlying collateral. Credit-risk-related Contingent Features There have been no material changes to the credit-risk-related contingent provisions contained within the Company's interest-rate swaps with counterparties since December 31, 2021. As of September 30, 2022, the fair value of derivatives related to these agreements was at a net asset position of $836 thousand, which excludes any adjustment for nonperformance risk. The Company has minimum collateral posting thresholds with certain of its derivative counterparties and as of September 30, 2022, has not posted collateral related to these agreements. Other Derivative Related Activity At both September 30, 2022 and December 31, 2021, the Company had one participation loan where the originating bank utilizes a back-to-back interest-rate swap structure. At September 30, 2022, management considers the risk of material swap-loss exposure related to this participation loan to be unlikely based on the borrower's financial and collateral strength. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 9 Months Ended |
Sep. 30, 2022 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements Capital Raised and Capital Adequacy Requirements As of September 30, 2022 and December 31, 2021, the Company met the definition of "well-capitalized" under the applicable regulations of the Board of Governors of the Federal Reserve System and the Bank qualified as "well-capitalized" under the prompt corrective action regulations of Basel III and the FDIC. The Company's and the Bank's actual capital amounts and ratios are presented as of September 30, 2022 and December 31, 2021 in the tables below: Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital to be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2022 The Company Total Capital to risk-weighted assets ("RWA") $ 464,515 13.49 % $ 275,536 8.00 % N/A N/A Tier 1 Capital to RWA 362,210 10.52 % 206,652 6.00 % N/A N/A Tier 1 Capital to average assets ("AA") or Leverage Ratio 362,210 7.89 % 183,517 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 362,210 10.52 % 154,989 4.50 % N/A N/A The Bank Total Capital to RWA $ 464,330 13.48 % $ 275,535 8.00 % $ 344,419 10.00 % Tier 1 Capital to RWA 421,127 12.23 % 206,652 6.00 % 275,535 8.00 % Tier 1 Capital to AA, Leverage Ratio 421,127 9.18 % 183,517 4.00 % 229,396 5.00 % Common Equity Tier 1 Capital to RWA 421,127 12.23 % 154,989 4.50 % 223,873 6.50 % Actual Minimum Capital (1) Minimum Capital to be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 The Company Total Capital to RWA $ 435,328 13.73 % $ 253,610 8.00 % N/A N/A Tier 1 Capital to RWA 336,577 10.62 % 190,208 6.00 % N/A N/A Tier 1 Capital to AA, Leverage Ratio 336,577 7.56 % 177,978 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 336,577 10.62 % 142,656 4.50 % N/A N/A The Bank Total Capital to RWA $ 434,430 13.70 % $ 253,610 8.00 % $ 317,013 10.00 % Tier 1 Capital to RWA 394,658 12.45 % 190,208 6.00 % 253,610 8.00 % Tier 1 Capital to AA, Leverage Ratio 394,658 8.87 % 177,978 4.00 % 222,473 5.00 % Common Equity Tier 1 Capital to RWA 394,658 12.45 % 142,656 4.50 % 206,058 6.50 % __________________________________________ (1) Before application of the capital conservation buffer of 2.50% as of September 30, 2022, and December 31, 2021. See discussion below. (2) For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed under the regulatory prompt corrective action framework. This framework does not apply to the Company. The Company is subject to the Basel III capital ratio requirements which include a "capital conservation buffer" of 2.50% above the regulatory minimum risk-based capital adequacy requirements shown above. If a banking organization dips into its capital conservation buffer it may be restricted in its activities, including its ability to pay dividends and discretionary bonus payments to its executive officers. Both the Company's and the Bank's actual ratios, as outlined in the table above, exceeded the Basel III risk-based capital requirement with the capital conservation buffer as of September 30, 2022. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three months ended September 30, 2022 Three months ended September 30, 2021 (Dollars in thousands) Pre-Tax Tax Benefit After Tax Amount Pre-Tax Tax (Expense) After Tax Amount Change in fair value of debt securities $ (30,133) $ 6,838 $ (23,295) $ (3,401) $ 772 $ (2,629) Less: net security gains reclassified into non-interest income — — — — — — Net change in fair value of debt securities (30,133) 6,838 (23,295) (3,401) 772 (2,629) Change in fair value of cash flow hedges — — — (1,061) 299 (762) Less: net cash flow hedges losses reclassified into income — — — (2,915) 820 (2,095) Net change in fair value of cash flow hedges — — — 1,854 (521) 1,333 Total other comprehensive (loss) income, net $ (30,133) $ 6,838 $ (23,295) $ (1,547) $ 251 $ (1,296) Nine months ended September 30, 2022 Nine months ended September 30, 2021 (Dollars in thousands) Pre-Tax Tax Benefit (Expense) After Tax Amount Pre-Tax Tax Benefit (Expense) After Tax Amount Change in fair value of debt securities $ (128,511) $ 29,004 $ (99,507) $ (13,453) $ 3,000 $ (10,453) Less: net security gains reclassified into non-interest income 1,062 (234) 828 128 (29) 99 Net change in fair value of debt securities (129,573) 29,238 (100,335) (13,581) 3,029 (10,552) Change in fair value of cash flow hedges — — — 378 (106) 272 Less: net cash flow hedges losses reclassified into income — — — (2,436) 685 (1,751) Net change in fair value of cash flow hedges — — — 2,814 (791) 2,023 Total other comprehensive income (loss), net $ (129,573) $ 29,238 $ (100,335) $ (10,767) $ 2,238 $ (8,529) Information on the Company's accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the periods indicated: Three months ended September 30, 2022 Three months ended September 30, 2021 (Dollars in thousands) Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Accumulated other comprehensive (loss) income - beginning balance $ (72,378) $ — $ (72,378) $ 16,293 $ (1,333) $ 14,960 Total other comprehensive loss, net (23,295) — (23,295) (2,629) 1,333 (1,296) Accumulated other comprehensive (loss) income - ending balance $ (95,673) $ — $ (95,673) $ 13,664 $ — $ 13,664 Nine months ended September 30, 2022 Nine months ended September 30, 2021 (Dollars in thousands) Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Accumulated other comprehensive (loss) income - beginning balance $ 4,662 $ — $ 4,662 $ 24,216 $ (2,023) $ 22,193 Total other comprehensive loss, net (100,335) — (100,335) (10,552) 2,023 (8,529) Accumulated other comprehensive (loss) income - ending balance $ (95,673) $ — $ (95,673) $ 13,664 $ — $ 13,664 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation There have been no material changes to the Company's Stock-Based Compensation Plan since December 31, 2021. As of September 30, 2022, 437,012 shares of Company common stock remained available for future grants under the 2016 plan. Total stock-based compensation expense was $609 thousand and $1.7 million for the three and nine months ended September 30, 2022, respectively, compared to $559 thousand and $1.6 million for the three and nine months ended September 30, 2021, respectively. Stock Option Awards The table below provides a summary of the options granted, including the weighted average fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the periods indicated: Nine months ended September 30, 2022 2021 Options granted 17,060 17,580 Term in years 10 10 Weighted average assumptions used in the fair value model: Expected volatility 44 % 44 % Expected dividend yield 3.05 % 3.01 % Expected life in years 6.5 6.5 Risk-free interest-rate 2.20 % 1.28 % Weighted average market price on date of grants $ 38.57 $ 32.73 Per share weighted average fair value $ 14.40 $ 11.95 Fair value as a percentage of market value at grant date 37 % 36 % Options granted during the first nine months of 2022 and 2021 generally vest 50% in year two and 50% in year four, on or about the anniversary date of the awards. The Company utilizes the Black-Scholes option valuation model to determine the per share grant date fair value of stock option grants. The Company recognized stock-based compensation expense related to stock option awards of $53 thousand and $153 thousand for the three and nine months ended September 30, 2022, respectively, compared to $48 thousand and $140 thousand for the three and nine months ended September 30, 2021, respectively. Restricted Stock Awards Restricted stock awards are granted at the market price of the Company's common stock on the date of the grant. Employee restricted stock awards generally vest over four years in equal portions beginning on or about the first anniversary date of the restricted stock award or are performance-based restricted stock awards that vest upon the Company achieving certain predefined performance objectives. Non-employee director restricted stock awards generally vest over two years in equal portions beginning on or about the first anniversary date of the restricted stock award. The table below provides a summary of restricted stock awards granted during the periods indicated: Nine months ended September 30, Restricted Stock Awards (number of underlying shares) 2022 2021 Two-year vesting 8,823 8,109 Four-year vesting 22,116 24,307 Performance-based vesting 22,254 21,559 Total restricted stock awards granted 53,193 53,975 Weighted average grant date fair value $ 38.57 $ 32.73 Stock-based compensation expense recognized in association with stock awards, mainly restricted stock awards, amounted to $500 thousand and $1.4 million for the three and nine months ended September 30, 2022, respectively, compared to $455 thousand and $1.2 million for the three and nine months ended September 30, 2021, respectively. Stock in Lieu of Directors' Fees Non-employee members of the Company's Board may opt to receive newly issued shares of the Company's common stock in lieu of cash compensation for attendance at meetings of the Board and committees of the Board. Stock-based compensation expense related to these directors' fees amounted to $56 thousand and $190 thousand for the three and nine months ended September 30, 2022, respectively, compared to $56 thousand and $179 thousand for the three and nine months ended September 30, 2021, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The table below presents basic earnings per share and the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Basic weighted average common shares outstanding 12,119,348 12,022,610 12,094,613 11,997,199 Dilutive shares 37,347 42,490 48,855 41,362 Diluted weighted average common shares outstanding 12,156,695 12,065,100 12,143,468 12,038,561 There were 49,321 and 34,473 stock options outstanding for the three and nine months ended September 30, 2022, respectively, that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for those periods. There were 55,777 and 77,023 stock options outstanding for the three and nine months ended September 30, 2021, respectively, that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for the respective periods. These stock options, which were not dilutive, may potentially dilute earnings per share in the future. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB defines the fair value of an asset or liability to be the price which a seller would receive in an orderly transaction between market participants (an exit price) and also establishes a fair value hierarchy segregating fair value measurements using three levels of inputs: (Level 1) quoted market prices in active markets for identical assets or liabilities; (Level 2) significant other observable inputs, including quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs such as interest rates and yield curves, volatilities, prepayment speeds, credit risks and default rates which provide a reasonable basis for fair value determination or inputs derived principally from observed market data; and (Level 3) significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability. Unobservable inputs must reflect reasonable assumptions that market participants would use in pricing the asset or liability, which are developed based on the best information available under the circumstances. The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: September 30, 2022 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 827,215 $ — $ 827,215 $ — Equity securities 3,815 3,815 — — FHLB stock 2,343 — 2,343 — Interest-rate swaps 836 — 836 — Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) 1,093 — — 1,093 Liabilities measured on a recurring basis: Interest-rate swaps $ 836 $ — $ 836 $ — December 31, 2021 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 956,430 $ — $ 956,430 $ — Equity securities 1,785 1,785 — — FHLB stock 2,164 — 2,164 — Interest-rate swaps 528 — 528 — Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) 15,210 — — 15,210 Liabilities measured on a recurring basis: Interest-rate swaps $ 528 $ — $ 528 $ — The Company utilizes third-party pricing vendors to provide valuations on its debt securities. The Company's equity portfolio fair value is measured based on quoted market prices for the shares; therefore, these securities are categorized as Level 1 within the fair value hierarchy. The Bank is required to purchase FHLB stock at par value in association with advances from the FHLB. The stock is issued, redeemed, repurchased and transferred by the FHLB only at their fixed par value. This stock is classified as a restricted investment and carried at FHLB par value which management believes approximates fair value; therefore, these securities are categorized as Level 2 measures. The fair values for the interest-rate swap assets and liabilities, which is comprised of back-to-back swaps, represent a FASB Level 2 measurement and are based on settlement values adjusted for credit risks and observable market interest-rate curves. Refer also to Note 8, "Derivatives and Hedging Activities," this Form 10-Q, contained above, for additional information on the Company's interest-rate swaps. For loans individually assessed and deemed to be collateral dependent management has estimated the value and the probable credit loss by comparing the loan's amortized cost against the expected realizable fair value of the collateral (appraised value, or internal analysis, less estimated cost to sell, adjusted as necessary for changes in relevant valuation factors subsequent to the measurement date). Certain inputs used in these assessments, and possible subsequent adjustments, are not always observable, and therefore, collateral dependent loans carried at realizable fair value are categorized as Level 3 within the fair value hierarchy. A specific reserve is assigned to the collateral dependent loan for the amount of management's estimated probable credit loss. The specific reserve assigned to individually evaluated loans that are collateral dependent amounted to $275 thousand at September 30, 2022, compared to $1.0 million at December 31, 2021. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of September 30, 2022 and December 31, 2021: Fair Value (Dollars in thousands) September 30, 2022 December 31, 2021 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) $ 1,093 $ 15,210 Appraisal of collateral Appraisal adjustments (1) 15% - 50% __________________________________________ (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Estimated Fair Values of Assets and Liabilities In addition to disclosures regarding the measurement of assets and liabilities carried at fair value on the Consolidated Balance Sheets, the Company is also required to disclose fair value information about financial instruments for which it is practicable to estimate that value, whether or not recognized on the Consolidated Balance Sheets. Financial instruments for which the fair value is disclosed but not recognized on the Consolidated Balance Sheets are summarized below. The table includes the carrying value, estimated fair value and its placement in the fair value hierarchy as follows: September 30, 2022 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans, net $ 3,058,158 $ 2,903,850 $ — $ — $ 2,903,850 Financial liabilities: CDs 230,039 225,366 — 225,366 — Borrowed funds 2,934 1,916 — 1,916 — Subordinated debt 59,102 56,809 — 56,809 — December 31, 2021 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans, net $ 2,872,980 $ 2,922,947 $ — $ — $ 2,922,947 Financial liabilities: CDs 206,449 206,450 — 206,450 — Borrowed funds 5,479 5,121 — 5,121 — Subordinated debt 58,979 58,460 — 58,460 — |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The supplemental cash flow information for the nine months ended September 30, 2022 and September 30, 2021 is as follows: Nine months ended September 30, (Dollars in thousands) 2022 2021 Supplemental financial data: Cash paid for: interest $ 5,960 $ 7,198 Cash paid for: income taxes 13,101 11,074 Cash paid for: lease liability 1,021 912 Supplemental schedule of non-cash activity: Net purchases of investment securities not yet settled 3,700 17,260 Transfer from loans to other real estate owned — 2,400 ROU lease assets: operating leases (1) — 7,932 __________________________________________ (1) Represents net new right of use ("ROU") lease assets added in the periods indicated. . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization of the Company and Basis of Presentation - Principles of Consolidation | Organization of the Company and Basis of Presentation The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2021 audited consolidated financial statements and notes thereto contained in the 2021 Annual Report on Form 10-K of Enterprise Bancorp, Inc. (the "Company," "Enterprise," "we," or "our") as filed with the Securities and Exchange Commission (the "SEC") on March 10, 2022 (the "2021 Annual Report on Form 10-K"). The Company has not materially changed its significant accounting policies from those disclosed in its 2021 Annual Report on Form 10-K. See Item (c), " Recent Accounting Pronouncements ," below in this Note 1. The accompanying unaudited consolidated interim financial statements of the Company include the accounts of the Company and its wholly owned subsidiary, Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank (the "Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, both organized under the laws of the State of Delaware, to engage in insurance sales activities and offer non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. The security corporations, which hold various types of qualifying securities, are limited to conducting investment activities that the Bank itself would be allowed to conduct under applicable laws. The services offered through the Bank and its subsidiaries are managed as one strategic unit and represent the Company's only reportable operating segment. |
Organization of the Company and Basis of Presentation - Basis of Accounting | The accompanying unaudited consolidated interim financial statements, and notes thereto, in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 (this "Form 10-Q"), have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the SEC instructions for Quarterly Reports on Form 10-Q. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all necessary adjustments, consisting of normal recurring accruals and elimination of intercompany balances, for a fair presentation. Interim results are not necessarily indicative of results to be expected for the entire year, or any future period. |
Organization of the Company and Basis of Presentation - Reclassifications | Certain previous years' amounts in the unaudited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. |
Uses of Estimates | Uses of Estimates In preparing the unaudited consolidated interim financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the period then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. As discussed in the Company's 2021 Annual Report on Form 10-K, the most significant areas in which management applies critical assumptions and estimates are: the estimates of the allowance for credit losses ("ACL") for loans and available for sale securities, the reserve for unfunded commitments, and the impairment review of goodwill. Refer to Note 1, "Summary of Significant Accounting Policies," to the Company's audited consolidated financial statements included in the Company's 2021 Annual Report on Form 10-K for accounting policies related to these significant estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting pronouncements not yet adopted by the Company In March 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method. This ASU clarifies the guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets. The ASU amends the guidance in ASU 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, that, among other things, established the "last-of-layer" method for making the fair value hedge accounting for these portfolios more accessible. ASU 2022-01 renames that method the "portfolio layer" method and addresses feedback from stakeholders regarding its application. For the Company, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently assessing the impact of this ASU and expects that this ASU will not have a material impact to the consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the current expected credit loss ("CECL") methodology for estimating allowances for credit losses and enhances the disclosure requirements for loan restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross charge-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. For the Company, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently assessing the impact of this ASU and expects that implementation will not have a material impact to the consolidated financial statements. Accounting pronouncements adopted by the Company In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946). This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. The rules reduce the required reporting periods to align them with the relevant financial statement periods required by SEC rules and requires certain statistical disclosures for annual periods, and interim disclosures if a material change in the information, or trend, has occurred. The amendments in this update are effective upon addition to the FASB Codification and apply to fiscal years ending on or after December 15, 2021. However, voluntary early compliance is permitted upon the effective date, provided that the rules are applied in their entirety. The amended disclosures did not have a material impact on the consolidated financial statements. |
Subsequent events | Subsequent Events The Company has evaluated subsequent events and transactions from September 30, 2022, through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP and determined there were no material subsequent events requiring recognition or disclosure. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-Sale Investments Reconciliation | The amortized cost and fair values of debt securities at the dates specified are summarized as follows: September 30, 2022 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value Federal agency obligations $ 5,016 $ — $ 6 $ 5,010 U.S. treasury securities 85,865 — 6,205 79,660 Federal agency collateralized mortgage obligations ("CMO") 446,530 — 66,453 380,077 Federal agency mortgage-baked securities ("MBS") 23,305 — 3,326 19,979 Taxable municipal securities 286,449 — 44,196 242,253 Tax-exempt municipal securities 85,293 15 1,840 83,468 Corporate bonds 6,475 — 195 6,280 Subordinated corporate bonds 11,948 — 1,460 10,488 Total debt securities, at fair value $ 950,881 $ 15 $ 123,681 $ 827,215 December 31, 2021 (Dollars in thousands) Amortized Unrealized Unrealized Fair Value U.S. treasury securities $ 62,850 $ — $ 684 $ 62,166 Federal agency CMO 489,789 5,672 8,748 486,713 Federal agency MBS 22,794 517 417 22,894 Taxable municipal securities 272,507 5,607 2,264 275,850 Tax-exempt municipal securities 87,024 5,648 — 92,672 Corporate bonds 8,559 441 — 9,000 Subordinated corporate bonds 7,000 135 — 7,135 Total debt securities, at fair value $ 950,523 $ 18,020 $ 12,113 $ 956,430 |
Schedule of Unrealized Loss on Debt Securities, Available-for-Sale Investments | The following tables summarize the duration of unrealized losses for debt securities at September 30, 2022 and December 31, 2021: September 30, 2022 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings Federal agency obligations $ 5,011 $ 6 $ — $ — $ 5,011 $ 6 1 U.S. treasury securities 49,643 2,290 30,017 3,915 79,660 6,205 12 Federal agency CMO 193,638 21,696 186,439 44,757 380,077 66,453 101 Federal agency MBS 10,741 911 9,237 2,415 19,978 3,326 11 Taxable municipal securities 160,929 25,059 77,625 19,137 238,554 44,196 269 Tax-exempt municipal securities 78,249 1,840 — — 78,249 1,840 128 Corporate bonds 6,279 195 — — 6,279 195 31 Subordinated corporate bonds 6,875 1,073 3,613 387 10,488 1,460 6 Total $ 511,365 $ 53,070 $ 306,931 $ 70,611 $ 818,296 $ 123,681 559 December 31, 2021 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized # of Holdings U.S. treasury securities $ 62,166 $ 684 $ — $ — $ 62,166 $ 684 9 Federal agency CMO 266,313 6,627 51,281 2,121 317,594 8,748 43 Federal agency MBS 11,447 417 — — 11,447 417 2 Taxable municipal securities 117,388 2,023 6,727 241 124,115 2,264 118 Total $ 457,314 $ 9,751 $ 58,008 $ 2,362 $ 515,322 $ 12,113 172 |
Debt Securities, Available-for-Sale Investments Classified by Contractual Maturity Date | The contractual maturity distribution at September 30, 2022 of debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 13,464 $ 13,407 Due after one, but within five years 198,843 189,724 Due after five, but within ten years 290,032 248,284 Due after ten years 448,542 375,800 Total debt securities $ 950,881 $ 827,215 |
Schedule of Realized Gain (Loss) on Sales of Debt Securities, Available-for-Sale Investments | Sales of debt securities for the nine months ended September 30, 2022 and September 30, 2021 are summarized as follows: Nine months ended September 30, (Dollars in thousands) 2022 2021 Amortized cost of debt securities sold (1) $ 31,653 $ 2,931 Gross realized gains on sales 1,062 128 Gross realized losses on sales — — Total proceeds from sales of debt securities $ 32,715 $ 3,059 _________________________________________ (1) Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. |
Gain (Loss) on Equity Securities | Gains and losses on equity securities for the three and nine months ended September 30, 2022 and September 30, 2021 are summarized as follows: Three months ended September 30, Nine months ended September 30, (Dollars in thousands) 2022 2021 2022 2021 Net (losses) gains recognized during the period on equity securities $ (193) $ 6 $ (688) $ 154 Less: Net gains recognized on equity securities sold during the period — — — 6 Unrealized (losses) gains recognized during the reporting period on equity securities still held at the end of the period (included in other income) $ (193) $ 6 $ (688) $ 148 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loans by Loan Classification | Major classifications of loans and their amortized cost as of the dates indicated were as follows: (Dollars in thousands) September 30, December 31, Commercial real estate $ 1,886,365 $ 1,680,792 Commercial and industrial 413,347 412,070 Commercial construction 396,027 410,443 SBA Paycheck Protection Program ("PPP") 2,725 71,502 Total commercial loans 2,698,464 2,574,807 Residential mortgages 321,663 256,940 Home equity loans and lines 80,882 80,467 Consumer 8,360 8,470 Total retail loans 410,905 345,877 Total loans 3,109,369 2,920,684 ACL for loans (51,211) (47,704) Net loans $ 3,058,158 $ 2,872,980 |
Schedule of Loans Pledged as Collateral | Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity as of the dates indicated are summarized below: (Dollars in thousands) September 30, December 31, Commercial real estate $ 117,832 $ 143,056 Residential mortgages 303,189 235,744 Home equity 41,686 5,055 Total loans pledged to FHLB $ 462,707 $ 383,855 |
ACL for Loans (Tables)
ACL for Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators | following tables present the amortized cost basis of the Company's loan portfolio risk ratings within portfolio classifications, by origination date, or revolving status as of the dates indicated: Balance at September 30, 2022 Term Loans by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate Pass $ 300,077 $ 390,986 $ 197,656 $ 220,986 $ 128,316 $ 612,567 $ 1,403 $ — $ 1,851,991 Special mention — 289 — 510 2,828 17,823 — — 21,450 Substandard — — — 1,440 632 10,852 — — 12,924 Total commercial real estate 300,077 391,275 197,656 222,936 131,776 641,242 1,403 — 1,886,365 Commercial and industrial Pass 34,275 54,762 33,631 31,057 14,587 47,119 189,114 1,537 406,082 Special mention — 20 — 12 661 315 2,044 — 3,052 Substandard — — — 10 134 357 3,674 20 4,195 Loss — — — — — 18 — — 18 Total commercial and industrial 34,275 54,782 33,631 31,079 15,382 47,809 194,832 1,557 413,347 Commercial construction Pass 104,498 161,351 55,471 33,510 8,420 3,504 24,521 989 392,264 Special mention — — — 3,763 — — — — 3,763 Total commercial construction 104,498 161,351 55,471 37,273 8,420 3,504 24,521 989 396,027 SBA PPP (1) — 1,132 1,593 — — — — — 2,725 Residential mortgages Pass 97,484 74,523 50,753 20,965 19,101 56,027 — — 318,853 Special mention — — — — — 328 — — 328 Substandard — — — 1,076 — 1,406 — — 2,482 Total residential mortgages 97,484 74,523 50,753 22,041 19,101 57,761 — — 321,663 Home equity Pass 582 605 469 352 — 1,475 76,032 873 80,388 Substandard — 274 — — — 220 — — 494 Total home equity 582 879 469 352 — 1,695 76,032 873 80,882 Consumer Pass 2,819 1,993 1,160 1,179 689 520 — — 8,360 Total consumer 2,819 1,993 1,160 1,179 689 520 — — 8,360 Total loans $ 539,735 $ 685,935 $ 340,733 $ 314,860 $ 175,368 $ 752,531 $ 296,788 $ 3,419 $ 3,109,369 Balance at December 31, 2021 Term Loans by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial real estate Pass $ 402,838 $ 220,942 $ 239,248 $ 120,286 $ 173,652 $ 479,298 $ 3,019 $ — $ 1,639,283 Special mention — — 989 802 — 7,626 — — 9,417 Substandard — — 2,628 3,111 12,842 13,336 — — 31,917 Doubtful — — — 175 — — — — 175 Total commercial real estate 402,838 220,942 242,865 124,374 186,494 500,260 3,019 — 1,680,792 Commercial and industrial Pass 64,555 40,333 36,177 19,754 14,983 44,835 174,320 1,243 396,200 Special mention — 644 2,173 958 59 1,431 4,053 18 9,336 Substandard — — 15 100 25 3,845 2,440 109 6,534 Total commercial and industrial 64,555 40,977 38,365 20,812 15,067 50,111 180,813 1,370 412,070 Commercial construction Pass 175,069 106,165 54,907 24,343 4,561 19,489 24,864 — 409,398 Substandard — — — — — — — 1,045 1,045 Total commercial construction 175,069 106,165 54,907 24,343 4,561 19,489 24,864 1,045 410,443 SBA PPP (1) 66,232 5,270 — — — — — — 71,502 Residential mortgages Pass 79,130 56,948 27,343 22,743 12,886 55,571 — — 254,621 Special mention — — — — — 590 — — 590 Substandard — — — — — 1,729 — — 1,729 Total residential mortgages 79,130 56,948 27,343 22,743 12,886 57,890 — — 256,940 Home equity Pass 486 478 498 — — 1,727 76,619 414 80,222 Substandard — — — — — 245 — — 245 Total home equity 486 478 498 — — 1,972 76,619 414 80,467 Consumer Pass 2,843 1,498 1,619 1,005 617 390 — 473 8,445 Doubtful 25 — — — — — — — 25 Total consumer 2,868 1,498 1,619 1,005 617 390 — 473 8,470 Total loans $ 791,178 $ 432,278 $ 365,597 $ 193,277 $ 219,625 $ 630,112 $ 285,315 $ 3,302 $ 2,920,684 __________________________________________ (1) All PPP loans were pass-rated at September 30, 2022 and December 31, 2021, as these loans are 100% guaranteed by the SBA. |
Past Due Financing Receivables | The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: Balance at September 30, 2022 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Due Loans (1) Current Loans (1) Total Commercial real estate $ 1,555 $ — $ 1,615 $ 3,170 $ 1,883,195 $ 1,886,365 Commercial and industrial 808 72 201 1,081 412,266 413,347 Commercial construction 294 — — 294 395,733 396,027 SBA PPP — — — — 2,725 2,725 Residential mortgages 1,122 — 253 1,375 320,288 321,663 Home equity 36 — 73 109 80,773 80,882 Consumer 13 — — 13 8,347 8,360 Total loans $ 3,828 $ 72 $ 2,142 $ 6,042 $ 3,103,327 $ 3,109,369 Balance at December 31, 2021 (Dollars in thousands) 30-59 Days 60-89 Days Past Due 90 days or More Total Past Due Loans (1) Current Loans (1) Total Commercial real estate $ 1,917 $ — $ 1,719 $ 3,636 $ 1,677,156 $ 1,680,792 Commercial and industrial 564 678 194 1,436 410,634 412,070 Commercial construction — — — — 410,443 410,443 SBA PPP 162 19 — 181 71,321 71,502 Residential mortgages 182 — 432 614 256,326 256,940 Home equity 45 — — 45 80,422 80,467 Consumer 7 27 — 34 8,436 8,470 Total loans $ 2,877 $ 724 $ 2,345 $ 5,946 $ 2,914,738 $ 2,920,684 _______________________________________ (1) The loan balances in the tables above include loans designated as non-accrual according to their payment due status. |
Financing Receivable, Nonaccrual | The following tables present the amortized cost of non-accrual loans by portfolio classification as of the dates indicated: Balance at September 30, 2022 (Dollars in thousands) Total Non-accrual Loans Non-accrual Loans without a Specific Reserve Non-accrual Loans with a Specific Reserve Related Specific Commercial real estate $ 3,255 $ 1,949 $ 1,306 $ 271 Commercial and industrial 675 403 272 272 Commercial construction — — — — SBA PPP — — — — Residential mortgages 1,567 1,567 — — Home equity 220 220 — — Consumer — — — — Total loans $ 5,717 $ 4,139 $ 1,578 $ 543 Balance at December 31, 2021 (Dollars in thousands) Total Non-accrual Loans Non-accrual Loans without a Specific Reserve Non-accrual Loans with a Specific Reserve Related Specific Commercial real estate $ 22,870 $ 7,144 $ 15,726 $ 896 Commercial and industrial 1,542 1,337 205 185 Commercial construction 1,045 1,045 — — SBA PPP — — — — Residential mortgages 794 633 161 161 Home equity 246 246 — — Consumer 25 — 25 25 Total loans $ 26,522 $ 10,405 $ 16,117 $ 1,267 |
Impaired Financing Receivables | The following tables present the recorded investment in collateral dependent individually evaluated loans and the related specific allowance by portfolio allocation as of the dates indicated: Balance at September 30, 2022 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 26,411 $ 23,552 $ 22,246 $ 1,306 $ 271 Commercial and industrial 3,039 678 616 62 4 Commercial construction — — — — — SBA PPP — — — — — Residential mortgages 2,117 1,953 1,953 — — Home equity 393 220 220 — — Consumer — — — — — Total $ 31,960 $ 26,403 $ 25,035 $ 1,368 $ 275 Balance at December 31, 2021 (Dollars in thousands) Unpaid Total Recorded Recorded Recorded Related Specific Commercial real estate $ 29,562 $ 27,617 $ 11,891 $ 15,726 $ 896 Commercial and industrial 8,880 4,699 4,191 508 128 Commercial construction 1,181 1,045 1,045 — — SBA PPP — — — — — Residential mortgages 1,165 1,033 1,033 — — Home equity 347 246 246 — — Consumer — — — — — Total $ 41,135 $ 34,640 $ 18,406 $ 16,234 $ 1,024 |
Troubled Debt Restructurings on Financing Receivables | The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the three months indicated: Three months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Number of Pre-modification Post-modification Commercial real estate 1 $ 131 $ 131 1 $ 2,690 $ 2,656 Commercial and industrial — — — 1 15 14 Total 1 $ 131 $ 131 2 $ 2,705 $ 2,670 The following table presents the number and balance of loans modified as TDRs, by portfolio classification, during the nine months indicated: Nine months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of Pre-modification Post-modification Number of Pre-modification Post-modification Commercial real estate 5 $ 3,319 $ 2,841 3 $ 3,591 $ 3,708 Commercial and industrial — — — 1 15 14 Residential mortgages — — — 1 224 224 Total 5 $ 3,319 $ 2,841 5 $ 3,830 $ 3,946 Payment defaults by portfolio classification, during the three months indicated, on loans modified as TDRs within the preceding twelve months are detailed below: Three months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Number of TDRs that Defaulted Post- Commercial and industrial — — 1 14 Total — $ — 1 $ 14 Payment defaults by portfolio classification, during the nine months indicated, on loans modified as TDRs within the preceding twelve months are detailed below: Nine months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of TDRs that Defaulted Post- Number of TDRs that defaulted Post- Commercial real estate 3 $ 1,325 1 $ 670 Commercial and industrial 1 45 1 14 Total 4 $ 1,370 2 $ 684 The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the nine-month periods indicated: Nine months ended September 30, 2022 September 30, 2021 (Dollars in thousands) Number of Amount Number of Amount Extended maturity date — $ — 1 $ 382 Temporary payment reduction and payment re-amortization of remaining principal over extended term — — 2 894 Temporary interest only payment plan 3 151 1 14 Deferral of interest 1 1,306 — — Other payment concessions 1 1,384 1 2,656 Total 5 $ 2,841 5 $ 3,946 Amount of ACL for loans associated with TDRs listed above $ 271 $ 14 |
Change in Provisions for Credit Losses | The following table presents changes in the provision for credit losses on loans and unfunded commitments during the three and nine-month periods indicated: Three months ended Nine months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Provision for credit losses on loans $ 560 $ (653) $ 3,580 $ 209 Provision for unfunded commitments 440 681 359 538 Total provision for credit losses $ 1,000 $ 28 $ 3,939 $ 747 |
Allowance for Credit Losses on Financing Receivables | The following tables present changes in the ACL for loans by portfolio classification, during the three months indicated: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2022 $ 35,379 $ 8,938 $ 3,667 $ 1,902 $ 554 $ 263 $ 50,703 Provision for credit losses on loans 404 (44) 95 74 11 20 560 Recoveries — 29 — — 2 4 35 Less: Charge-offs — 82 — — — 5 87 Ending Balance at September 30, 2022 $ 35,783 $ 8,841 $ 3,762 $ 1,976 $ 567 $ 282 $ 51,211 (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at June 30, 2021 $ 34,008 $ 10,800 $ 3,777 $ 843 $ 295 $ 318 $ 50,041 Provision for credit losses on loans (1,660) 694 397 (4) (32) (48) (653) Recoveries — 19 — — 57 2 78 Less: Charge-offs — 2,194 — — — 10 2,204 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 The following table presents changes in the ACL for loans by portfolio classification, during the nine months indicated: (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2021 $ 31,847 $ 9,574 $ 4,090 $ 1,405 $ 465 $ 323 $ 47,704 Provision for credit losses for loans 3,936 (680) (328) 571 93 (12) 3,580 Recoveries — 139 — — 9 14 162 Less: Charge-offs — 192 — — — 43 235 Ending Balance at September 30, 2022 $ 35,783 $ 8,841 $ 3,762 $ 1,976 $ 567 $ 282 $ 51,211 (Dollars in thousands) Commercial Real Commercial and Commercial Construction Residential Home Consumer Total Beginning Balance at December 31, 2020 $ 26,755 $ 9,516 $ 6,129 $ 1,530 $ 467 $ 168 $ 44,565 CECL adjustment upon adoption 7,664 1,988 (2,416) (695) (158) 177 6,560 Provision for credit losses for loans (285) 156 461 4 (56) (71) 209 Recoveries 39 102 — — 67 5 213 Less: Charge-offs 1,825 2,443 — — — 17 4,285 Ending Balance at September 30, 2021 $ 32,348 $ 9,319 $ 4,174 $ 839 $ 320 $ 262 $ 47,262 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Operating Lease Liability Maturity Table as Lessee | At September 30, 2022, the remaining undiscounted cash flows by year of these lease liabilities were as follows: (Dollars in thousands) Operating Leases 2022 (three remaining months) $ 359 2023 1,406 2024 1,435 2025 1,441 2026 1,452 Thereafter 32,848 Total lease payments 38,941 Less: Imputed interest 14,921 Total lease liability $ 24,020 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Deposit Liabilities | Deposits are summarized as follows as of the periods indicated: (Dollars in thousands) September 30, 2022 December 31, 2021 Non-interest checking $ 1,441,104 $ 1,364,258 Interest-bearing checking 719,474 743,587 Savings 351,665 310,244 Money market 1,395,756 1,355,701 CDs $250,000 or less 163,520 154,403 CDs greater than $250,000 66,519 52,046 Deposits $ 4,138,038 $ 3,980,239 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds Maturity | Borrowed funds at September 30, 2022 and December 31, 2021 are summarized, as follows: September 30, 2022 December 31, 2021 (Dollars in thousands) Balance Rate Balance Rate Within 12 months $ — — % $ 2,485 0.29 % Over 5 years 2,934 1.71 % 2,994 1.70 % Total borrowed funds $ 2,934 1.71 % $ 5,479 1.06 % |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives, Fair Value and Classification | The tables below present a summary of the Company's derivative financial instruments, notional amounts and fair values for the periods presented: As of September 30, 2022 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ — $ — $ 7,838 $ 836 Interest-rate contracts - pay fixed, receive floating 7,838 836 — — Total back-to-back interest-rate swaps $ 7,838 $ 836 $ 7,838 $ 836 December 31, 2021 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 36,263 $ 528 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 36,263 528 Total back-to-back interest-rate swaps $ 36,263 $ 528 $ 36,263 $ 528 __________________________________________ |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company's and the Bank's actual capital amounts and ratios are presented as of September 30, 2022 and December 31, 2021 in the tables below: Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital to be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2022 The Company Total Capital to risk-weighted assets ("RWA") $ 464,515 13.49 % $ 275,536 8.00 % N/A N/A Tier 1 Capital to RWA 362,210 10.52 % 206,652 6.00 % N/A N/A Tier 1 Capital to average assets ("AA") or Leverage Ratio 362,210 7.89 % 183,517 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 362,210 10.52 % 154,989 4.50 % N/A N/A The Bank Total Capital to RWA $ 464,330 13.48 % $ 275,535 8.00 % $ 344,419 10.00 % Tier 1 Capital to RWA 421,127 12.23 % 206,652 6.00 % 275,535 8.00 % Tier 1 Capital to AA, Leverage Ratio 421,127 9.18 % 183,517 4.00 % 229,396 5.00 % Common Equity Tier 1 Capital to RWA 421,127 12.23 % 154,989 4.50 % 223,873 6.50 % Actual Minimum Capital (1) Minimum Capital to be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 The Company Total Capital to RWA $ 435,328 13.73 % $ 253,610 8.00 % N/A N/A Tier 1 Capital to RWA 336,577 10.62 % 190,208 6.00 % N/A N/A Tier 1 Capital to AA, Leverage Ratio 336,577 7.56 % 177,978 4.00 % N/A N/A Common Equity Tier 1 Capital to RWA 336,577 10.62 % 142,656 4.50 % N/A N/A The Bank Total Capital to RWA $ 434,430 13.70 % $ 253,610 8.00 % $ 317,013 10.00 % Tier 1 Capital to RWA 394,658 12.45 % 190,208 6.00 % 253,610 8.00 % Tier 1 Capital to AA, Leverage Ratio 394,658 8.87 % 177,978 4.00 % 222,473 5.00 % Common Equity Tier 1 Capital to RWA 394,658 12.45 % 142,656 4.50 % 206,058 6.50 % __________________________________________ (1) Before application of the capital conservation buffer of 2.50% as of September 30, 2022, and December 31, 2021. See discussion below. (2) For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed under the regulatory prompt corrective action framework. This framework does not apply to the Company. |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Reconciliation of Changes | The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three months ended September 30, 2022 Three months ended September 30, 2021 (Dollars in thousands) Pre-Tax Tax Benefit After Tax Amount Pre-Tax Tax (Expense) After Tax Amount Change in fair value of debt securities $ (30,133) $ 6,838 $ (23,295) $ (3,401) $ 772 $ (2,629) Less: net security gains reclassified into non-interest income — — — — — — Net change in fair value of debt securities (30,133) 6,838 (23,295) (3,401) 772 (2,629) Change in fair value of cash flow hedges — — — (1,061) 299 (762) Less: net cash flow hedges losses reclassified into income — — — (2,915) 820 (2,095) Net change in fair value of cash flow hedges — — — 1,854 (521) 1,333 Total other comprehensive (loss) income, net $ (30,133) $ 6,838 $ (23,295) $ (1,547) $ 251 $ (1,296) Nine months ended September 30, 2022 Nine months ended September 30, 2021 (Dollars in thousands) Pre-Tax Tax Benefit (Expense) After Tax Amount Pre-Tax Tax Benefit (Expense) After Tax Amount Change in fair value of debt securities $ (128,511) $ 29,004 $ (99,507) $ (13,453) $ 3,000 $ (10,453) Less: net security gains reclassified into non-interest income 1,062 (234) 828 128 (29) 99 Net change in fair value of debt securities (129,573) 29,238 (100,335) (13,581) 3,029 (10,552) Change in fair value of cash flow hedges — — — 378 (106) 272 Less: net cash flow hedges losses reclassified into income — — — (2,436) 685 (1,751) Net change in fair value of cash flow hedges — — — 2,814 (791) 2,023 Total other comprehensive income (loss), net $ (129,573) $ 29,238 $ (100,335) $ (10,767) $ 2,238 $ (8,529) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Information on the Company's accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the periods indicated: Three months ended September 30, 2022 Three months ended September 30, 2021 (Dollars in thousands) Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Accumulated other comprehensive (loss) income - beginning balance $ (72,378) $ — $ (72,378) $ 16,293 $ (1,333) $ 14,960 Total other comprehensive loss, net (23,295) — (23,295) (2,629) 1,333 (1,296) Accumulated other comprehensive (loss) income - ending balance $ (95,673) $ — $ (95,673) $ 13,664 $ — $ 13,664 Nine months ended September 30, 2022 Nine months ended September 30, 2021 (Dollars in thousands) Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Unrealized Gains (Losses) on Debt Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Accumulated other comprehensive (loss) income - beginning balance $ 4,662 $ — $ 4,662 $ 24,216 $ (2,023) $ 22,193 Total other comprehensive loss, net (100,335) — (100,335) (10,552) 2,023 (8,529) Accumulated other comprehensive (loss) income - ending balance $ (95,673) $ — $ (95,673) $ 13,664 $ — $ 13,664 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The table below provides a summary of the options granted, including the weighted average fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the periods indicated: Nine months ended September 30, 2022 2021 Options granted 17,060 17,580 Term in years 10 10 Weighted average assumptions used in the fair value model: Expected volatility 44 % 44 % Expected dividend yield 3.05 % 3.01 % Expected life in years 6.5 6.5 Risk-free interest-rate 2.20 % 1.28 % Weighted average market price on date of grants $ 38.57 $ 32.73 Per share weighted average fair value $ 14.40 $ 11.95 Fair value as a percentage of market value at grant date 37 % 36 % |
Schedule of Restricted Stock Awards Granted | The table below provides a summary of restricted stock awards granted during the periods indicated: Nine months ended September 30, Restricted Stock Awards (number of underlying shares) 2022 2021 Two-year vesting 8,823 8,109 Four-year vesting 22,116 24,307 Performance-based vesting 22,254 21,559 Total restricted stock awards granted 53,193 53,975 Weighted average grant date fair value $ 38.57 $ 32.73 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below presents basic earnings per share and the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Basic weighted average common shares outstanding 12,119,348 12,022,610 12,094,613 11,997,199 Dilutive shares 37,347 42,490 48,855 41,362 Diluted weighted average common shares outstanding 12,156,695 12,065,100 12,143,468 12,038,561 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: September 30, 2022 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 827,215 $ — $ 827,215 $ — Equity securities 3,815 3,815 — — FHLB stock 2,343 — 2,343 — Interest-rate swaps 836 — 836 — Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) 1,093 — — 1,093 Liabilities measured on a recurring basis: Interest-rate swaps $ 836 $ — $ 836 $ — December 31, 2021 Fair Value Measurements Using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 956,430 $ — $ 956,430 $ — Equity securities 1,785 1,785 — — FHLB stock 2,164 — 2,164 — Interest-rate swaps 528 — 528 — Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) 15,210 — — 15,210 Liabilities measured on a recurring basis: Interest-rate swaps $ 528 $ — $ 528 $ — |
Quantitative Information About Significant Unobservable Inputs for Fair Value Measurements | The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of September 30, 2022 and December 31, 2021: Fair Value (Dollars in thousands) September 30, 2022 December 31, 2021 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a non-recurring basis: Individually evaluated loans (collateral dependent) $ 1,093 $ 15,210 Appraisal of collateral Appraisal adjustments (1) 15% - 50% __________________________________________ (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value, by Balance Sheet Grouping | Financial instruments for which the fair value is disclosed but not recognized on the Consolidated Balance Sheets are summarized below. The table includes the carrying value, estimated fair value and its placement in the fair value hierarchy as follows: September 30, 2022 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans, net $ 3,058,158 $ 2,903,850 $ — $ — $ 2,903,850 Financial liabilities: CDs 230,039 225,366 — 225,366 — Borrowed funds 2,934 1,916 — 1,916 — Subordinated debt 59,102 56,809 — 56,809 — December 31, 2021 Fair Value Measurement (Dollars in thousands) Carrying Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans, net $ 2,872,980 $ 2,922,947 $ — $ — $ 2,922,947 Financial liabilities: CDs 206,449 206,450 — 206,450 — Borrowed funds 5,479 5,121 — 5,121 — Subordinated debt 58,979 58,460 — 58,460 — |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The supplemental cash flow information for the nine months ended September 30, 2022 and September 30, 2021 is as follows: Nine months ended September 30, (Dollars in thousands) 2022 2021 Supplemental financial data: Cash paid for: interest $ 5,960 $ 7,198 Cash paid for: income taxes 13,101 11,074 Cash paid for: lease liability 1,021 912 Supplemental schedule of non-cash activity: Net purchases of investment securities not yet settled 3,700 17,260 Transfer from loans to other real estate owned — 2,400 ROU lease assets: operating leases (1) — 7,932 __________________________________________ (1) Represents net new right of use ("ROU") lease assets added in the periods indicated. . |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Accounting Policies [Abstract] | |
Reportable operating segments | 1 |
Investment Securities - Investm
Investment Securities - Investments Reconciliation (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 950,881 | $ 950,523 |
Unrealized Gains | 15 | 18,020 |
Unrealized Losses | 123,681 | 12,113 |
Fair Value | 827,215 | 956,430 |
Federal agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,016 | |
Unrealized Gains | 0 | |
Unrealized Losses | 6 | |
Fair Value | 5,010 | |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 85,865 | 62,850 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 6,205 | 684 |
Fair Value | 79,660 | 62,166 |
Federal agency CMO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 446,530 | 489,789 |
Unrealized Gains | 0 | 5,672 |
Unrealized Losses | 66,453 | 8,748 |
Fair Value | 380,077 | 486,713 |
Federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 23,305 | 22,794 |
Unrealized Gains | 0 | 517 |
Unrealized Losses | 3,326 | 417 |
Fair Value | 19,979 | 22,894 |
Taxable municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 286,449 | 272,507 |
Unrealized Gains | 0 | 5,607 |
Unrealized Losses | 44,196 | 2,264 |
Fair Value | 242,253 | 275,850 |
Tax-exempt municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 85,293 | 87,024 |
Unrealized Gains | 15 | 5,648 |
Unrealized Losses | 1,840 | 0 |
Fair Value | 83,468 | 92,672 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,475 | 8,559 |
Unrealized Gains | 0 | 441 |
Unrealized Losses | 195 | 0 |
Fair Value | 6,280 | 9,000 |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,948 | 7,000 |
Unrealized Gains | 0 | 135 |
Unrealized Losses | 1,460 | 0 |
Fair Value | $ 10,488 | $ 7,135 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities at fair value | $ 827,215,000 | $ 827,215,000 | $ 956,430,000 | ||
Accrued interest related to AFS debt securities | 4,400,000 | 4,400,000 | 3,200,000 | ||
Callable debt securities, fair value | 159,000,000 | 159,000,000 | |||
Sale of debt securities | 0 | $ 0 | 32,715,000 | $ 3,059,000 | |
Equity securities at fair value | 3,815,000 | 3,815,000 | 1,785,000 | ||
Collateral Pledged | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Debt securities, pledged as collateral | $ 813,000,000 | $ 813,000,000 | $ 949,300,000 |
Investment Securities - Debt Se
Investment Securities - Debt Securities Continuous Loss Position (Details) $ in Thousands | Sep. 30, 2022 USD ($) investment | Dec. 31, 2021 USD ($) investment |
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 511,365 | $ 457,314 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 53,070 | 9,751 |
Temporarily impaired debt securities, 12 months or longer, fair value | 306,931 | 58,008 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 70,611 | 2,362 |
Temporarily impaired debt securities, fair value | 818,296 | 515,322 |
Temporarily impaired debt securities, unrealized loss | $ 123,681 | $ 12,113 |
Number of holdings | investment | 559 | 172 |
Federal agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 5,011 | |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 6 | |
Temporarily impaired debt securities, 12 months or longer, fair value | 0 | |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 0 | |
Temporarily impaired debt securities, fair value | 5,011 | |
Temporarily impaired debt securities, unrealized loss | $ 6 | |
Number of holdings | investment | 1 | |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 49,643 | $ 62,166 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 2,290 | 684 |
Temporarily impaired debt securities, 12 months or longer, fair value | 30,017 | 0 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 3,915 | 0 |
Temporarily impaired debt securities, fair value | 79,660 | 62,166 |
Temporarily impaired debt securities, unrealized loss | $ 6,205 | $ 684 |
Number of holdings | investment | 12 | 9 |
Federal agency CMO | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 193,638 | $ 266,313 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 21,696 | 6,627 |
Temporarily impaired debt securities, 12 months or longer, fair value | 186,439 | 51,281 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 44,757 | 2,121 |
Temporarily impaired debt securities, fair value | 380,077 | 317,594 |
Temporarily impaired debt securities, unrealized loss | $ 66,453 | $ 8,748 |
Number of holdings | investment | 101 | 43 |
Federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 10,741 | $ 11,447 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 911 | 417 |
Temporarily impaired debt securities, 12 months or longer, fair value | 9,237 | 0 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 2,415 | 0 |
Temporarily impaired debt securities, fair value | 19,978 | 11,447 |
Temporarily impaired debt securities, unrealized loss | $ 3,326 | $ 417 |
Number of holdings | investment | 11 | 2 |
Taxable municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 160,929 | $ 117,388 |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 25,059 | 2,023 |
Temporarily impaired debt securities, 12 months or longer, fair value | 77,625 | 6,727 |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 19,137 | 241 |
Temporarily impaired debt securities, fair value | 238,554 | 124,115 |
Temporarily impaired debt securities, unrealized loss | $ 44,196 | $ 2,264 |
Number of holdings | investment | 269 | 118 |
Tax-exempt municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 78,249 | |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 1,840 | |
Temporarily impaired debt securities, 12 months or longer, fair value | 0 | |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 0 | |
Temporarily impaired debt securities, fair value | 78,249 | |
Temporarily impaired debt securities, unrealized loss | $ 1,840 | |
Number of holdings | investment | 128 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 6,279 | |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 195 | |
Temporarily impaired debt securities, 12 months or longer, fair value | 0 | |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 0 | |
Temporarily impaired debt securities, fair value | 6,279 | |
Temporarily impaired debt securities, unrealized loss | $ 195 | |
Number of holdings | investment | 31 | |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Temporarily impaired debt securities, less than 12 months, fair value | $ 6,875 | |
Temporarily impaired debt securities, less than 12 months, unrealized losses | 1,073 | |
Temporarily impaired debt securities, 12 months or longer, fair value | 3,613 | |
Temporarily impaired debt securities, 12 months or longer, unrealized losses | 387 | |
Temporarily impaired debt securities, fair value | 10,488 | |
Temporarily impaired debt securities, unrealized loss | $ 1,460 | |
Number of holdings | investment | 6 |
Investment Securities - Debt _2
Investment Securities - Debt Securities Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 13,464 | |
Due after one, but within five years | 198,843 | |
Due after five, but within ten years | 290,032 | |
Due after ten years | 448,542 | |
Amortized Cost | 950,881 | $ 950,523 |
Fair Value | ||
Due in one year or less | 13,407 | |
Due after one, but within five years | 189,724 | |
Due after five, but within ten years | 248,284 | |
Due after ten years | 375,800 | |
Total debt securities | $ 827,215 | $ 956,430 |
Investment Securities - Debt _3
Investment Securities - Debt Securities Sales (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Amortized cost of debt securities sold | $ 31,653,000 | $ 2,931,000 | ||
Gross realized gains on sales | 1,062,000 | 128,000 | ||
Gross realized losses on sales | 0 | 0 | ||
Total proceeds from sales of debt securities | $ 0 | $ 0 | $ 32,715,000 | $ 3,059,000 |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (losses) gains recognized during the period on equity securities | $ (193) | $ 6 | $ (688) | $ 154 |
Less: Net gains recognized on equity securities sold during the period | 0 | 0 | 0 | 6 |
Unrealized (losses) gains recognized during the reporting period on equity securities still held at the end of the period (included in other income) | $ (193) | $ 6 | $ (688) | $ 148 |
Loans - Balance by Class of Loa
Loans - Balance by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | $ 3,109,369 | $ 2,920,684 |
ACL for loans | (51,211) | (47,704) |
Net loans | 3,058,158 | 2,872,980 |
Commercial | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 2,698,464 | 2,574,807 |
Commercial real estate | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 1,886,365 | 1,680,792 |
Commercial and industrial | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 413,347 | 412,070 |
Commercial construction | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 396,027 | 410,443 |
SBA Paycheck Protection Program ("PPP") | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 2,725 | 71,502 |
Retail | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 410,905 | 345,877 |
Residential mortgages | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 321,663 | 256,940 |
Home equity loans and lines | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | 80,882 | 80,467 |
Consumer | ||
Loan Portfolio Classifications, Adoption of CECL | ||
Total loans | $ 8,360 | $ 8,470 |
Loans - Loan Categories Narrati
Loans - Loan Categories Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Loans by Loan Classification [Line Items] | ||
Loan origination fees | $ 5,200 | $ 7,500 |
Accrued interest receivable on loans | 11,300 | 10,200 |
Financing receivable, average loan size | 3,109,369 | 2,920,684 |
Commercial | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Participation loans amount | 90,800 | 62,600 |
Financing receivable, average loan size | 2,698,464 | 2,574,807 |
Participations loans sold that are still serviced amount | 59,000 | 66,700 |
SBA Paycheck Protection Program ("PPP") | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Financing receivable, average loan size | 2,725 | 71,502 |
Residential mortgages | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Financing receivable, average loan size | 321,663 | 256,940 |
Amount of loans serviced for others | $ 9,300 | $ 10,400 |
Loans - Loans Serving as Collat
Loans - Loans Serving as Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | $ 3,109,369 | $ 2,920,684 |
Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | 462,707 | 383,855 |
Commercial real estate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | 1,886,365 | 1,680,792 |
Commercial real estate | Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | 117,832 | 143,056 |
Residential mortgages | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | 321,663 | 256,940 |
Residential mortgages | Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | 303,189 | 235,744 |
Home equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | 80,882 | 80,467 |
Home equity | Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total loans | $ 41,686 | $ 5,055 |
ACL for Loans - Credit Risk Ind
ACL for Loans - Credit Risk Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | $ 539,735 | $ 791,178 |
Year two | 685,935 | 432,278 |
Year three | 340,733 | 365,597 |
Year four | 314,860 | 193,277 |
Year five | 175,368 | 219,625 |
Prior | 752,531 | 630,112 |
Revolving Loans | 296,788 | 285,315 |
Revolving Loans Converted to Term | 3,419 | 3,302 |
Total loans | 3,109,369 | 2,920,684 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 300,077 | 402,838 |
Year two | 391,275 | 220,942 |
Year three | 197,656 | 242,865 |
Year four | 222,936 | 124,374 |
Year five | 131,776 | 186,494 |
Prior | 641,242 | 500,260 |
Revolving Loans | 1,403 | 3,019 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,886,365 | 1,680,792 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 300,077 | 402,838 |
Year two | 390,986 | 220,942 |
Year three | 197,656 | 239,248 |
Year four | 220,986 | 120,286 |
Year five | 128,316 | 173,652 |
Prior | 612,567 | 479,298 |
Revolving Loans | 1,403 | 3,019 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,851,991 | 1,639,283 |
Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 289 | 0 |
Year three | 0 | 989 |
Year four | 510 | 802 |
Year five | 2,828 | 0 |
Prior | 17,823 | 7,626 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 21,450 | 9,417 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 2,628 |
Year four | 1,440 | 3,111 |
Year five | 632 | 12,842 |
Prior | 10,852 | 13,336 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 12,924 | 31,917 |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 175 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 175 | |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 34,275 | 64,555 |
Year two | 54,782 | 40,977 |
Year three | 33,631 | 38,365 |
Year four | 31,079 | 20,812 |
Year five | 15,382 | 15,067 |
Prior | 47,809 | 50,111 |
Revolving Loans | 194,832 | 180,813 |
Revolving Loans Converted to Term | 1,557 | 1,370 |
Total loans | 413,347 | 412,070 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 34,275 | 64,555 |
Year two | 54,762 | 40,333 |
Year three | 33,631 | 36,177 |
Year four | 31,057 | 19,754 |
Year five | 14,587 | 14,983 |
Prior | 47,119 | 44,835 |
Revolving Loans | 189,114 | 174,320 |
Revolving Loans Converted to Term | 1,537 | 1,243 |
Total loans | 406,082 | 396,200 |
Commercial and industrial | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 20 | 644 |
Year three | 0 | 2,173 |
Year four | 12 | 958 |
Year five | 661 | 59 |
Prior | 315 | 1,431 |
Revolving Loans | 2,044 | 4,053 |
Revolving Loans Converted to Term | 0 | 18 |
Total loans | 3,052 | 9,336 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 15 |
Year four | 10 | 100 |
Year five | 134 | 25 |
Prior | 357 | 3,845 |
Revolving Loans | 3,674 | 2,440 |
Revolving Loans Converted to Term | 20 | 109 |
Total loans | 4,195 | 6,534 |
Commercial and industrial | Loss | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 18 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 18 | |
Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 104,498 | 175,069 |
Year two | 161,351 | 106,165 |
Year three | 55,471 | 54,907 |
Year four | 37,273 | 24,343 |
Year five | 8,420 | 4,561 |
Prior | 3,504 | 19,489 |
Revolving Loans | 24,521 | 24,864 |
Revolving Loans Converted to Term | 989 | 1,045 |
Total loans | 396,027 | 410,443 |
Commercial construction | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 104,498 | 175,069 |
Year two | 161,351 | 106,165 |
Year three | 55,471 | 54,907 |
Year four | 33,510 | 24,343 |
Year five | 8,420 | 4,561 |
Prior | 3,504 | 19,489 |
Revolving Loans | 24,521 | 24,864 |
Revolving Loans Converted to Term | 989 | 0 |
Total loans | 392,264 | 409,398 |
Commercial construction | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 3,763 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | 3,763 | |
Commercial construction | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 1,045 | |
Total loans | 1,045 | |
SBA Paycheck Protection Program ("PPP") | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Total loans | 2,725 | 71,502 |
SBA Paycheck Protection Program ("PPP") | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 66,232 |
Year two | 1,132 | 5,270 |
Year three | 1,593 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 2,725 | 71,502 |
Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 97,484 | 79,130 |
Year two | 74,523 | 56,948 |
Year three | 50,753 | 27,343 |
Year four | 22,041 | 22,743 |
Year five | 19,101 | 12,886 |
Prior | 57,761 | 57,890 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 321,663 | 256,940 |
Residential mortgages | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 97,484 | 79,130 |
Year two | 74,523 | 56,948 |
Year three | 50,753 | 27,343 |
Year four | 20,965 | 22,743 |
Year five | 19,101 | 12,886 |
Prior | 56,027 | 55,571 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 318,853 | 254,621 |
Residential mortgages | Special mention | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 328 | 590 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 328 | 590 |
Residential mortgages | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 1,076 | 0 |
Year five | 0 | 0 |
Prior | 1,406 | 1,729 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 2,482 | 1,729 |
Home equity loans and lines | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 582 | 486 |
Year two | 879 | 478 |
Year three | 469 | 498 |
Year four | 352 | 0 |
Year five | 0 | 0 |
Prior | 1,695 | 1,972 |
Revolving Loans | 76,032 | 76,619 |
Revolving Loans Converted to Term | 873 | 414 |
Total loans | 80,882 | 80,467 |
Home equity loans and lines | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 582 | 486 |
Year two | 605 | 478 |
Year three | 469 | 498 |
Year four | 352 | 0 |
Year five | 0 | 0 |
Prior | 1,475 | 1,727 |
Revolving Loans | 76,032 | 76,619 |
Revolving Loans Converted to Term | 873 | 414 |
Total loans | 80,388 | 80,222 |
Home equity loans and lines | Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 0 | 0 |
Year two | 274 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Prior | 220 | 245 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 494 | 245 |
Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 2,819 | 2,868 |
Year two | 1,993 | 1,498 |
Year three | 1,160 | 1,619 |
Year four | 1,179 | 1,005 |
Year five | 689 | 617 |
Prior | 520 | 390 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 473 |
Total loans | 8,360 | 8,470 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 2,819 | 2,843 |
Year two | 1,993 | 1,498 |
Year three | 1,160 | 1,619 |
Year four | 1,179 | 1,005 |
Year five | 689 | 617 |
Prior | 520 | 390 |
Revolving Loans | 0 | 0 |
Revolving Loans Converted to Term | 0 | 473 |
Total loans | $ 8,360 | 8,445 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Year one | 25 | |
Year two | 0 | |
Year three | 0 | |
Year four | 0 | |
Year five | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term | 0 | |
Total loans | $ 25 |
ACL for Loans - Additional Info
ACL for Loans - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) commercialCredit | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | $ 3,109,369 | $ 3,109,369 | $ 2,920,684 | ||
Adversely classified loans to all loans, ratio | 1.57% | 1.57% | 2.09% | ||
The ratio of non-accrual loans to total loans | 0.18% | 0.18% | 0.91% | ||
Number of loans returned to accrual status | commercialCredit | 2 | ||||
Non-accrual loans | $ 5,717 | $ 5,717 | $ 26,522 | ||
Total accruing impaired loans | 21,000 | 21,000 | 8,400 | ||
Total non accruing impaired loans | 5,400 | 5,400 | 26,200 | ||
Total troubled debt restructure loans | 8,600 | 8,600 | 16,400 | ||
TDR loans on accrual status | 5,800 | 5,800 | 8,600 | ||
TDR loans included in non-performing loans | 2,800 | 2,800 | 7,800 | ||
Allowance for credit losses | 51,211 | 51,211 | $ 47,704 | ||
Provision for credit losses on loans | $ 1,000 | $ 28 | $ 3,939 | $ 747 | |
Allowance for credit losses to total loans ratio | 1.65% | 1.65% | 1.63% | ||
Provision for credit losses | $ 1,000 | $ 28 | $ 3,939 | $ 747 | |
Unfunded Loan Commitment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for credit losses | 4,100 | 4,100 | $ 3,700 | ||
Collateral Pledged | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | 26,400 | 26,400 | 34,600 | ||
Pass | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Non-accrual loans | 3 | 3 | 3 | ||
Criticized | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Total loans | $ 48,700 | $ 48,700 | $ 61,000 |
ACL for Loans - Past Due and No
ACL for Loans - Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Aging of Financing Receivables | ||
Total loans | $ 3,109,369 | $ 2,920,684 |
Total Non-accrual Loans | 5,717 | 26,522 |
Non-accrual Loans without a Specific Reserve | 4,139 | 10,405 |
Non-accrual Loans with a Specific Reserve | 1,578 | 16,117 |
Related Specific Reserve | 543 | 1,267 |
Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 6,042 | 5,946 |
30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 3,828 | 2,877 |
60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 72 | 724 |
Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,142 | 2,345 |
Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 3,103,327 | 2,914,738 |
Commercial real estate | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,886,365 | 1,680,792 |
Total Non-accrual Loans | 3,255 | 22,870 |
Non-accrual Loans without a Specific Reserve | 1,949 | 7,144 |
Non-accrual Loans with a Specific Reserve | 1,306 | 15,726 |
Related Specific Reserve | 271 | 896 |
Commercial real estate | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 3,170 | 3,636 |
Commercial real estate | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,555 | 1,917 |
Commercial real estate | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
Commercial real estate | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,615 | 1,719 |
Commercial real estate | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,883,195 | 1,677,156 |
Commercial and industrial | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 413,347 | 412,070 |
Total Non-accrual Loans | 675 | 1,542 |
Non-accrual Loans without a Specific Reserve | 403 | 1,337 |
Non-accrual Loans with a Specific Reserve | 272 | 205 |
Related Specific Reserve | 272 | 185 |
Commercial and industrial | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,081 | 1,436 |
Commercial and industrial | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 808 | 564 |
Commercial and industrial | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 72 | 678 |
Commercial and industrial | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 201 | 194 |
Commercial and industrial | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 412,266 | 410,634 |
Commercial construction | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 396,027 | 410,443 |
Total Non-accrual Loans | 0 | 1,045 |
Non-accrual Loans without a Specific Reserve | 0 | 1,045 |
Non-accrual Loans with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Commercial construction | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 294 | 0 |
Commercial construction | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 294 | 0 |
Commercial construction | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
Commercial construction | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
Commercial construction | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 395,733 | 410,443 |
SBA Paycheck Protection Program ("PPP") | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,725 | 71,502 |
Total Non-accrual Loans | 0 | 0 |
Non-accrual Loans without a Specific Reserve | 0 | 0 |
Non-accrual Loans with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
SBA Paycheck Protection Program ("PPP") | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 181 |
SBA Paycheck Protection Program ("PPP") | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 162 |
SBA Paycheck Protection Program ("PPP") | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 19 |
SBA Paycheck Protection Program ("PPP") | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
SBA Paycheck Protection Program ("PPP") | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 2,725 | 71,321 |
Residential mortgages | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 321,663 | 256,940 |
Total Non-accrual Loans | 1,567 | 794 |
Non-accrual Loans without a Specific Reserve | 1,567 | 633 |
Non-accrual Loans with a Specific Reserve | 0 | 161 |
Related Specific Reserve | 0 | 161 |
Residential mortgages | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,375 | 614 |
Residential mortgages | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 1,122 | 182 |
Residential mortgages | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
Residential mortgages | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 253 | 432 |
Residential mortgages | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 320,288 | 256,326 |
Home equity loans and lines | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 80,882 | 80,467 |
Total Non-accrual Loans | 220 | 246 |
Non-accrual Loans without a Specific Reserve | 220 | 246 |
Non-accrual Loans with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Home equity loans and lines | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 109 | 45 |
Home equity loans and lines | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 36 | 45 |
Home equity loans and lines | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
Home equity loans and lines | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 73 | 0 |
Home equity loans and lines | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 80,773 | 80,422 |
Consumer | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 8,360 | 8,470 |
Total Non-accrual Loans | 0 | 25 |
Non-accrual Loans without a Specific Reserve | 0 | 0 |
Non-accrual Loans with a Specific Reserve | 0 | 25 |
Related Specific Reserve | 0 | 25 |
Consumer | Total Past Due Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 13 | 34 |
Consumer | 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 13 | 7 |
Consumer | 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 27 |
Consumer | Past Due 90 days or More | ||
Schedule of Aging of Financing Receivables | ||
Total loans | 0 | 0 |
Consumer | Current Loans | ||
Schedule of Aging of Financing Receivables | ||
Total loans | $ 8,347 | $ 8,436 |
ACL for Loans - Impaired Loans
ACL for Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 31,960 | $ 41,135 |
Total Recorded Investment in Collateral Dependent Loans | 26,403 | 34,640 |
Recorded Investment without a Specific Reserve | 25,035 | 18,406 |
Recorded Investment with a Specific Reserve | 1,368 | 16,234 |
Related Specific Reserve | 275 | 1,024 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 26,411 | 29,562 |
Total Recorded Investment in Collateral Dependent Loans | 23,552 | 27,617 |
Recorded Investment without a Specific Reserve | 22,246 | 11,891 |
Recorded Investment with a Specific Reserve | 1,306 | 15,726 |
Related Specific Reserve | 271 | 896 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 3,039 | 8,880 |
Total Recorded Investment in Collateral Dependent Loans | 678 | 4,699 |
Recorded Investment without a Specific Reserve | 616 | 4,191 |
Recorded Investment with a Specific Reserve | 62 | 508 |
Related Specific Reserve | 4 | 128 |
Commercial construction | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | 1,181 |
Total Recorded Investment in Collateral Dependent Loans | 0 | 1,045 |
Recorded Investment without a Specific Reserve | 0 | 1,045 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
SBA Paycheck Protection Program ("PPP") | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Total Recorded Investment in Collateral Dependent Loans | 0 | 0 |
Recorded Investment without a Specific Reserve | 0 | 0 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 2,117 | 1,165 |
Total Recorded Investment in Collateral Dependent Loans | 1,953 | 1,033 |
Recorded Investment without a Specific Reserve | 1,953 | 1,033 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Home equity loans and lines | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 393 | 347 |
Total Recorded Investment in Collateral Dependent Loans | 220 | 246 |
Recorded Investment without a Specific Reserve | 220 | 246 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | 0 | 0 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Total Recorded Investment in Collateral Dependent Loans | 0 | 0 |
Recorded Investment without a Specific Reserve | 0 | 0 |
Recorded Investment with a Specific Reserve | 0 | 0 |
Related Specific Reserve | $ 0 | $ 0 |
ACL for Loans - Troubled Debt R
ACL for Loans - Troubled Debt Restructures and Prior Period Trouble Debt Restructures (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 USD ($) restructuring loan | Sep. 30, 2021 USD ($) restructuring loan | Sep. 30, 2022 USD ($) restructuring | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2021 USD ($) restructuring | Sep. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | 1 | 2 | 5 | 5 | 5 | 5 | ||
Pre-modification Outstanding Recorded Investment | $ 131 | $ 2,705 | $ 3,319 | $ 3,830 | ||||
Post-modification Outstanding Recorded Investment | $ 131 | $ 2,670 | 2,841 | 3,946 | ||||
Number of TDRs that Defaulted | loan | 0 | 1 | 4 | 2 | ||||
Post- modification Outstanding Recorded Investment | $ 0 | $ 14 | 1,370 | 684 | ||||
Amount of ACL for loans associated with TDRs listed above | $ 271 | $ 14 | $ 271 | 271 | $ 271 | $ 14 | 14 | $ 14 |
Extended maturity date | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | loan | 0 | 1 | ||||||
Post-modification Outstanding Recorded Investment | 0 | 382 | ||||||
Temporary payment reduction and payment re-amortization of remaining principal over extended term | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | loan | 0 | 2 | ||||||
Post-modification Outstanding Recorded Investment | 0 | 894 | ||||||
Temporary interest only payment plan | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | loan | 3 | 1 | ||||||
Post-modification Outstanding Recorded Investment | 151 | 14 | ||||||
Deferral of interest | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | loan | 1 | 0 | ||||||
Post-modification Outstanding Recorded Investment | 1,306 | 0 | ||||||
Other payment concessions | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | loan | 1 | 1 | ||||||
Post-modification Outstanding Recorded Investment | 1,384 | 2,656 | ||||||
Commercial real estate | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | restructuring | 1 | 1 | 5 | 3 | ||||
Pre-modification Outstanding Recorded Investment | $ 131 | $ 2,690 | 3,319 | 3,591 | ||||
Post-modification Outstanding Recorded Investment | $ 131 | $ 2,656 | 2,841 | 3,708 | ||||
Number of TDRs that Defaulted | loan | 3 | 1 | ||||||
Post- modification Outstanding Recorded Investment | 1,325 | 670 | ||||||
Commercial and industrial | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | restructuring | 0 | 1 | 0 | 1 | ||||
Pre-modification Outstanding Recorded Investment | $ 0 | $ 15 | 0 | 15 | ||||
Post-modification Outstanding Recorded Investment | $ 0 | $ 14 | 0 | 14 | ||||
Number of TDRs that Defaulted | loan | 0 | 1 | 1 | 1 | ||||
Post- modification Outstanding Recorded Investment | $ 0 | $ 14 | 45 | 14 | ||||
Residential mortgages | ||||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||||
Number of Restructurings | restructuring | 0 | 1 | ||||||
Pre-modification Outstanding Recorded Investment | 0 | 224 | ||||||
Post-modification Outstanding Recorded Investment | $ 0 | $ 224 |
ACL for Loans - Change In Provi
ACL for Loans - Change In Provisions For Credits Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | $ 1,000 | $ 28 | $ 3,939 | $ 747 |
Provision for credit losses on loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | 560 | (653) | 3,580 | 209 |
Provision for unfunded commitments | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses | $ 440 | $ 681 | $ 359 | $ 538 |
ACL for Loans - ACL Activity (D
ACL for Loans - ACL Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | $ 47,704 | |||
Provision for credit losses on loans | $ 1,000 | $ 28 | 3,939 | $ 747 |
Allowance for credit losses, ending balance | 51,211 | 51,211 | ||
Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 50,703 | 50,041 | 47,704 | 44,565 |
Provision for credit losses on loans | 560 | (653) | 3,580 | 209 |
Recoveries | 35 | 78 | 162 | 213 |
Less: Charge-offs | 87 | 2,204 | 235 | 4,285 |
Allowance for credit losses, ending balance | 51,211 | 47,262 | 51,211 | 47,262 |
Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | 6,560 | |||
Commercial real estate | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 35,379 | 34,008 | 31,847 | 26,755 |
Provision for credit losses on loans | 404 | (1,660) | 3,936 | (285) |
Recoveries | 0 | 0 | 0 | 39 |
Less: Charge-offs | 0 | 0 | 0 | 1,825 |
Allowance for credit losses, ending balance | 35,783 | 32,348 | 35,783 | 32,348 |
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | 7,664 | |||
Commercial and industrial | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 8,938 | 10,800 | 9,574 | 9,516 |
Provision for credit losses on loans | (44) | 694 | (680) | 156 |
Recoveries | 29 | 19 | 139 | 102 |
Less: Charge-offs | 82 | 2,194 | 192 | 2,443 |
Allowance for credit losses, ending balance | 8,841 | 9,319 | 8,841 | 9,319 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | 1,988 | |||
Commercial construction | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 3,667 | 3,777 | 4,090 | 6,129 |
Provision for credit losses on loans | 95 | 397 | (328) | 461 |
Recoveries | 0 | 0 | 0 | 0 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 3,762 | 4,174 | 3,762 | 4,174 |
Commercial construction | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | (2,416) | |||
Residential mortgages | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 1,902 | 843 | 1,405 | 1,530 |
Provision for credit losses on loans | 74 | (4) | 571 | 4 |
Recoveries | 0 | 0 | 0 | 0 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 1,976 | 839 | 1,976 | 839 |
Residential mortgages | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | (695) | |||
Home equity loans and lines | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 554 | 295 | 465 | 467 |
Provision for credit losses on loans | 11 | (32) | 93 | (56) |
Recoveries | 2 | 57 | 9 | 67 |
Less: Charge-offs | 0 | 0 | 0 | 0 |
Allowance for credit losses, ending balance | 567 | 320 | 567 | 320 |
Home equity loans and lines | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | (158) | |||
Consumer | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for credit losses, beginning balance | 263 | 318 | 323 | 168 |
Provision for credit losses on loans | 20 | (48) | (12) | (71) |
Recoveries | 4 | 2 | 14 | 5 |
Less: Charge-offs | 5 | 10 | 43 | 17 |
Allowance for credit losses, ending balance | $ 282 | $ 262 | $ 282 | 262 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | Loans Excluding Unfunded Commitments [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Provision for credit losses on loans | $ 177 |
ACL for Loans - Other Real Esta
ACL for Loans - Other Real Estate Owned (Details) | Sep. 30, 2022 property loan | Dec. 31, 2021 loan property |
Receivables [Abstract] | ||
OREO, Number of properties owned | property | 0 | 0 |
Number of consumer mortgage loans in process of foreclosure | loan | 0 | 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) lease | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) lease | Sep. 30, 2021 USD ($) | |
Leases [Abstract] | ||||
Number of operating leases | lease | 16 | 16 | ||
Operating lease expense | $ | $ 397 | $ 414 | $ 1,200 | $ 1,100 |
Weighted average remaining lease term on operating leases | 29 years 8 months 12 days | 28 years 9 months 18 days | 29 years 8 months 12 days | 28 years 9 months 18 days |
Weighted average discount rate for operating leases | 3.44% | 3.61% | 3.44% | 3.61% |
Leases - Leases Maturities (Det
Leases - Leases Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 (three remaining months) | $ 359 | |
2023 | 1,406 | |
2024 | 1,435 | |
2025 | 1,441 | |
2026 | 1,452 | |
Thereafter | 32,848 | |
Total lease payments | 38,941 | |
Less: Imputed interest | 14,921 | |
Total lease liability | $ 24,020 | $ 23,627 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Banking and Thrift, Interest [Abstract] | ||
Non-interest checking | $ 1,441,104 | $ 1,364,258 |
Interest-bearing checking | 719,474 | 743,587 |
Savings | 351,665 | 310,244 |
Money market | 1,395,756 | 1,355,701 |
CDs $250,000 or less | 163,520 | 154,403 |
CDs greater than $250,000 | 66,519 | 52,046 |
Deposits | 4,138,038 | 3,980,239 |
Reciprocal deposits | $ 580,600 | $ 546,700 |
Borrowed Funds and Subordinat_2
Borrowed Funds and Subordinated Debt - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Borrowed funds | $ 2,934 | $ 5,479 |
Subordinated debt | $ 59,102 | $ 58,979 |
Borrowed Funds and Subordinat_3
Borrowed Funds and Subordinated Debt - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Balance | ||
Within 12 months | $ 0 | $ 2,485 |
Over 5 years | 2,934 | 2,994 |
Total borrowed funds | $ 2,934 | $ 5,479 |
Rate | ||
Within 12 months | 0% | 0.29% |
Over 5 years | 1.71% | 1.70% |
Total borrowed funds | 1.71% | 1.06% |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities - Fair Value Classification (Details) - Interest-rate swaps - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | $ 7,838 | $ 36,263 |
Asset Derivatives | 836 | 528 |
Liability Notional Amount | 7,838 | 36,263 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 836 | 528 |
Pay Fixed, Receive Floating | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | 7,838 | 0 |
Asset Derivatives | 836 | 0 |
Liability Notional Amount | 0 | 36,263 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 0 | 528 |
Pay Floating, Receive Fixed | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Asset Notional Amount | 0 | 36,263 |
Asset Derivatives | 0 | 528 |
Liability Notional Amount | 7,838 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 836 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) derivativeInstrument loan | Mar. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) counterparty derivativeInstrument loan | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan derivativeInstrument | |
Derivative [Line Items] | |||||
Number of counterparties | counterparty | 1 | ||||
Fair value of swaps in a net asset position | $ 836,000 | $ 836,000 | |||
Number of participation loans with swap contingent liabilities | loan | 1 | 1 | 1 | ||
Interest-rate swaps | |||||
Derivative [Line Items] | |||||
Number of instruments held in back to back swaps | derivativeInstrument | 2 | 2 | |||
Number of interest rate swaps | derivativeInstrument | 4 | 4 | 10 | ||
Gain (loss) on interest rate swaps | $ 0 | $ 0 | |||
Counterparty credit risk exposure on interest rate swaps | $ 836,000 | $ 0 | |||
Collateral posted for interest-rate swaps | $ 712,000 | $ 712,000 | $ 840,000 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Schedule of Regulatory Capital Requirements (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to RWA, actual, amount | $ 464,515 | $ 435,328 |
Total capital to RWA, actual, ratio | 0.1349 | 0.1373 |
Total capital to RWA, minimum capital for capital adequacy purposes, amount | $ 275,536 | $ 253,610 |
Total capital to RWA, minimum capacity for adequacy purposes | 0.0800 | 0.0800 |
Tier 1 Capital to RWA, actual, amount | $ 362,210 | $ 336,577 |
Tier 1 capital to RWA, actual, ratio | 0.1052 | 0.1062 |
Tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 206,652 | $ 190,208 |
Tier 1 capital to RWA, minimum capacity for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 capital to AA leverage ratio, actual, amount | $ 362,210 | $ 336,577 |
Tier 1 capital to AA leverage ratio, actual, ratio | 0.0789 | 0.0756 |
Tier 1 capital to AA leverage ratio, minimum capital for capital adequacy purposes, amount | $ 183,517 | $ 177,978 |
Tier 1 capital to AA leverage ratio, minimum capacity for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Common equity tier 1 capital to RWA, actual, amount | $ 362,210 | $ 336,577 |
Common equity tier 1 capital to RWA, actual, ratio | 10.52% | 10.62% |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 154,989 | $ 142,656 |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, ratio | 4.50% | 4.50% |
Basel III additional capital conservation buffer at full phase-in | 2.50% | 2.50% |
The Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital to RWA, actual, amount | $ 464,330 | $ 434,430 |
Total capital to RWA, actual, ratio | 0.1348 | 0.1370 |
Total capital to RWA, minimum capital for capital adequacy purposes, amount | $ 275,535 | $ 253,610 |
Total capital to RWA, minimum capacity for adequacy purposes | 0.0800 | 0.0800 |
Total capital to RWA, minimum capital to be well capitalized, amount | $ 344,419 | $ 317,013 |
Total Capital to RWA, minimum capital to be well capitalized, ratio | 0.1000 | 0.1000 |
Tier 1 Capital to RWA, actual, amount | $ 421,127 | $ 394,658 |
Tier 1 capital to RWA, actual, ratio | 0.1223 | 0.1245 |
Tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 206,652 | $ 190,208 |
Tier 1 capital to RWA, minimum capacity for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 capital to RWA, minimum capital to be well capitalized, amount | $ 275,535 | $ 253,610 |
Tier 1 capital to RWA, minimum capital to be well capitalized, ratio | 0.0800 | 0.0800 |
Tier 1 capital to AA leverage ratio, actual, amount | $ 421,127 | $ 394,658 |
Tier 1 capital to AA leverage ratio, actual, ratio | 0.0918 | 0.0887 |
Tier 1 capital to AA leverage ratio, minimum capital for capital adequacy purposes, amount | $ 183,517 | $ 177,978 |
Tier 1 capital to AA leverage ratio, minimum capacity for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 capital to AA leverage ratio, minimum capital to be well capitalized, amount | $ 229,396 | $ 222,473 |
Tier 1 capital to AA leverage ratio, minimum capital to be well capitalized, ratio | 0.0500 | 0.0500 |
Common equity tier 1 capital to RWA, actual, amount | $ 421,127 | $ 394,658 |
Common equity tier 1 capital to RWA, actual, ratio | 12.23% | 12.45% |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, amount | $ 154,989 | $ 142,656 |
Common equity tier 1 capital to RWA, minimum capital for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common equity tier 1 capital to RWA, minimum capital to be well capitalized, amount | $ 223,873 | $ 206,058 |
Common equity tier 1 capital to RWA, minimum capital to be well capitalized, ratio | 6.50% | 6.50% |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Narrative (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Abstract] | ||
Basel III additional capital conservation buffer at full phase-in | 2.50% | 2.50% |
Comprehensive Income (Loss) - R
Comprehensive Income (Loss) - Reconciliation of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net change in fair value, after reclassifications, pre tax | $ (30,133) | $ (1,547) | $ (129,573) | $ (10,767) |
Net change in fair value , after reclassification, tax benefit (expense) | 6,838 | 251 | 29,238 | 2,238 |
Total other comprehensive loss, net of tax | (23,295) | (1,296) | (100,335) | (8,529) |
Unrealized Gains (Losses) on Debt Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in fair value, before reclassifications, pre tax | (30,133) | (3,401) | (128,511) | (13,453) |
Change in fair value, before reclassifications, tax benefit (expense) | 6,838 | 772 | 29,004 | 3,000 |
Change in fair value, before reclassifications, after tax amount | (23,295) | (2,629) | (99,507) | (10,453) |
Reclassifications, pre tax | 0 | 0 | 1,062 | 128 |
Reclassifications, tax benefit (expense) | 0 | 0 | (234) | (29) |
Reclassifications, after tax amount | 0 | 0 | 828 | 99 |
Net change in fair value, after reclassifications, pre tax | (30,133) | (3,401) | (129,573) | (13,581) |
Net change in fair value , after reclassification, tax benefit (expense) | 6,838 | 772 | 29,238 | 3,029 |
Total other comprehensive loss, net of tax | (23,295) | (2,629) | (100,335) | (10,552) |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Change in fair value, before reclassifications, pre tax | 0 | (1,061) | 0 | 378 |
Change in fair value, before reclassifications, tax benefit (expense) | 0 | 299 | 0 | (106) |
Change in fair value, before reclassifications, after tax amount | 0 | (762) | 0 | 272 |
Reclassifications, pre tax | 0 | (2,915) | 0 | (2,436) |
Reclassifications, tax benefit (expense) | 0 | 820 | 0 | 685 |
Reclassifications, after tax amount | 0 | (2,095) | 0 | (1,751) |
Net change in fair value, after reclassifications, pre tax | 0 | 1,854 | 0 | 2,814 |
Net change in fair value , after reclassification, tax benefit (expense) | 0 | (521) | 0 | (791) |
Total other comprehensive loss, net of tax | $ 0 | $ 1,333 | $ 0 | $ 2,023 |
Comprehensive Income (Loss) - A
Comprehensive Income (Loss) - AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | $ 285,110 | $ 339,317 | $ 346,895 | $ 334,426 |
Total other comprehensive loss, net | (23,295) | (1,296) | (100,335) | (8,529) |
Balance, ending | 272,193 | 346,540 | 272,193 | 346,540 |
Unrealized Gains (Losses) on Debt Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | (72,378) | 16,293 | 4,662 | 24,216 |
Total other comprehensive loss, net | (23,295) | (2,629) | (100,335) | (10,552) |
Balance, ending | (95,673) | 13,664 | (95,673) | 13,664 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | 0 | (1,333) | 0 | (2,023) |
Total other comprehensive loss, net | 0 | 1,333 | 0 | 2,023 |
Balance, ending | 0 | 0 | 0 | 0 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning | (72,378) | 14,960 | 4,662 | 22,193 |
Balance, ending | $ (95,673) | $ 13,664 | $ (95,673) | $ 13,664 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares remain available for future grants (in shares) | 437,012 | 437,012 | ||
Stock-based compensation expense | $ 609 | $ 559 | $ 1,724 | $ 1,550 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 53 | 48 | $ 153 | 140 |
Restricted stock | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Restricted stock | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Restricted stock and common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 500 | 455 | $ 1,400 | 1,200 |
Common stock in lieu of cash | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 56 | $ 56 | $ 190 | $ 179 |
Vesting, Year Two | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting percentage | 50% | 50% | ||
Vesting, Year Four | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting percentage | 50% | 50% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Information for Options Granted (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 17,060 | 17,580 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term in years | 10 years | 10 years |
Weighted average assumptions used in the fair value model: | ||
Expected volatility | 44% | 44% |
Weighted average market price on date of grants (in usd per share) | $ 38.57 | $ 32.73 |
Per share weighted average fair value (in usd per share) | $ 14.40 | $ 11.95 |
Weighted Average | Stock options | ||
Weighted average assumptions used in the fair value model: | ||
Expected dividend yield | 3.05% | 3.01% |
Expected life in years | 6 years 6 months | 6 years 6 months |
Risk-free interest-rate | 2.20% | 1.28% |
Fair value as a percentage of market value at grant date | 37% | 36% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Grants (Details) - Restricted stock - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 53,193 | 53,975 |
Weighted average grant date fair value, stock awards (in usd per share) | $ 38.57 | $ 32.73 |
Non-Employee Director | Two-year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 8,823 | 8,109 |
Employee | Four-year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 22,116 | 24,307 |
Employee | Performance-based vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted (in shares) | 22,254 | 21,559 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding (in shares) | 12,119,348 | 12,022,610 | 12,094,613 | 11,997,199 |
Dilutive shares (in shares) | 37,347 | 42,490 | 48,855 | 41,362 |
Diluted weighted average common shares outstanding (in shares) | 12,156,695 | 12,065,100 | 12,143,468 | 12,038,561 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Antidilutive shares excluded from EPS (in shares) | 49,321 | 55,777 | 34,473 | 77,023 | |
Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested participating restricted stock awards (in shares) | 120,728 | 120,728 | 113,871 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Liabilities measured on a recurring basis: | ||
Specific reserve for individually evaluated collateral dependent loans | $ 275 | $ 1,000 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 836 | 528 |
Fair Value, Measurements, Recurring | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 827,215 | 956,430 |
Fair Value, Measurements, Recurring | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 3,815 | 1,785 |
Fair Value, Measurements, Recurring | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 2,343 | 2,164 |
Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 836 | 528 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 3,815 | 1,785 |
Fair Value, Measurements, Recurring | Level 1 Inputs | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 Inputs | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 836 | 528 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 827,215 | 956,430 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 Inputs | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 2,343 | 2,164 |
Fair Value, Measurements, Recurring | Level 2 Inputs | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 836 | 528 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Interest-rate swaps | ||
Liabilities measured on a recurring basis: | ||
Fair value of liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Debt securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Equity securities | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | FHLB stock | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 Inputs | Interest-rate swaps | ||
Assets measured on a recurring and non-recurring basis: | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 1,093 | 15,210 |
Fair Value, Measurements, Nonrecurring | Level 1 Inputs | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 Inputs | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 Inputs | ||
Assets measured on a recurring and non-recurring basis: | ||
Individually evaluated loans (collateral dependent) | $ 1,093 | $ 15,210 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent) | $ 1,093 | $ 15,210 |
Level 3 Inputs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent) | $ 1,093 | 15,210 |
Level 3 Inputs | Individually evaluated loans (collateral dependent) | Appraisal adjustments | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent), unobservable input value or range | 15% | |
Level 3 Inputs | Individually evaluated loans (collateral dependent) | Appraisal adjustments | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent), unobservable input value or range | 50% | |
Level 3 Inputs | Individually evaluated loans (collateral dependent) | Appraisal of collateral | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Individually evaluated loans (collateral dependent) | $ 1,093 | $ 15,210 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Financial assets: | ||
Loans, net | $ 3,058,158 | $ 2,872,980 |
Financial liabilities: | ||
Borrowed funds | 2,934 | 5,479 |
Subordinated debt | 59,102 | 58,979 |
Carrying Value | CDs | ||
Financial liabilities: | ||
Deposits | 230,039 | 206,449 |
Fair Value | ||
Financial assets: | ||
Loans, net | 2,903,850 | 2,922,947 |
Financial liabilities: | ||
Borrowed funds | 1,916 | 5,121 |
Subordinated debt | 56,809 | 58,460 |
Fair Value | CDs | ||
Financial liabilities: | ||
Deposits | 225,366 | 206,450 |
Level 1 Inputs | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Level 1 Inputs | CDs | ||
Financial liabilities: | ||
Deposits | 0 | 0 |
Level 2 Inputs | ||
Financial assets: | ||
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 1,916 | 5,121 |
Subordinated debt | 56,809 | 58,460 |
Level 2 Inputs | CDs | ||
Financial liabilities: | ||
Deposits | 225,366 | 206,450 |
Level 3 Inputs | ||
Financial assets: | ||
Loans, net | 2,903,850 | 2,922,947 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Level 3 Inputs | CDs | ||
Financial liabilities: | ||
Deposits | $ 0 | $ 0 |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental financial data: | ||
Cash paid for: interest | $ 5,960 | $ 7,198 |
Cash paid for: income taxes | 13,101 | 11,074 |
Cash paid for: lease liability | 1,021 | 912 |
Supplemental schedule of non-cash activity: | ||
Net purchases of investment securities not yet settled | 3,700 | 17,260 |
Transfer from loans to other real estate owned | 0 | 2,400 |
ROU lease assets: operating leases | $ 0 | $ 7,932 |
Uncategorized Items - ebtc-2022
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |