Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-51018 | |
Entity Registrant Name | THE BANCORP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-3016517 | |
Entity Address, Address Line One | 409 Silverside Road | |
Entity Address, City or Town | Wilmington | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 19809 | |
City Area Code | 302 | |
Local Phone Number | 385-5000 | |
Title of 12(b) Security | Common Stock, par value $1.00 per share | |
Trading Symbol | TBBK | |
Security Exchange Name | NASDAQ | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 57,590,874 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Entity Central Index Key | 0001295401 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | ||
Cash and due from banks | $ 6,220 | $ 19,928 |
Interest earning deposits at Federal Reserve Bank | 294,758 | 924,544 |
Total cash and cash equivalents | 300,978 | 944,472 |
Investment securities, available-for-sale, at fair value | 1,264,903 | 1,320,692 |
Investment securities, held-to-maturity (fair value $83,002 at December 31, 2019) | 84,387 | |
Commercial loans, at fair value (held-for-sale at December 31, 2019) | 1,849,947 | 1,180,546 |
Loans, net of deferred loan fees and costs | 2,488,760 | 1,824,245 |
Allowance for credit losses | (15,727) | (10,238) |
Loans, net | 2,473,033 | 1,814,007 |
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,368 | 5,342 |
Premises and equipment, net | 15,849 | 17,538 |
Accrued interest receivable | 18,852 | 13,619 |
Intangible assets, net | 2,563 | 2,315 |
Deferred tax asset, net | 7,952 | 12,538 |
Investment in unconsolidated entity, at fair value | 31,783 | 39,154 |
Assets held-for-sale from discontinued operations | 122,253 | 140,657 |
Other assets | 79,821 | 81,696 |
Total assets | 6,169,302 | 5,656,963 |
Deposits | ||
Demand and interest checking | 4,882,834 | 4,402,740 |
Savings and money market | 505,928 | 174,290 |
Time deposits | 475,000 | |
Total deposits | 5,388,762 | 5,052,030 |
Securities sold under agreements to repurchase | 42 | 82 |
Senior debt | 98,222 | |
Subordinated debentures | 13,401 | 13,401 |
Other long-term borrowings | 40,462 | 40,991 |
Other liabilities | 69,954 | 65,962 |
Total liabilities | 5,610,843 | 5,172,466 |
SHAREHOLDERS' EQUITY | ||
Common stock - authorized, 75,000,000 shares of $1.00 par value; 57,590,874 and 56,940,521 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 57,591 | 56,941 |
Treasury stock, at cost (100,000 shares) | (866) | (866) |
Additional paid-in capital | 376,751 | 371,633 |
Retained earnings | 104,282 | 50,742 |
Accumulated other comprehensive income | 20,701 | 6,047 |
Total shareholders' equity | 558,459 | 484,497 |
Total liabilities and shareholders' equity | $ 6,169,302 | $ 5,656,963 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Investment securities, held-to-maturity, fair value | $ 83,002 | |
SHAREHOLDERS' EQUITY | ||
Common stock, authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, issued (in shares) | 57,590,874 | 56,940,521 |
Common stock, outstanding | 57,590,874 | 56,940,521 |
Treasury stock (in shares) | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | ||||
Loans, including fees | $ 44,433 | $ 35,302 | $ 125,326 | $ 95,749 |
Investment securities: | ||||
Taxable interest | 7,911 | 10,485 | 28,594 | 32,649 |
Tax-exempt interest | 28 | 43 | 87 | 133 |
Interest earning deposits | 106 | 2,545 | 1,836 | 7,502 |
Total interest income | 52,478 | 48,375 | 155,843 | 136,033 |
Interest expense | ||||
Deposits | 1,730 | 9,034 | 11,468 | 26,727 |
Short-term borrowings | 1 | 1,595 | 181 | 2,624 |
Senior debt | 633 | 633 | ||
Subordinated debentures | 118 | 186 | 408 | 573 |
Total interest expense | 2,482 | 10,815 | 12,690 | 29,924 |
Net interest income | 49,996 | 37,560 | 143,153 | 106,109 |
Provision for credit losses | 1,297 | 650 | 5,798 | 2,950 |
Net interest income after provision for credit losses | 48,699 | 36,910 | 137,355 | 103,159 |
Non-interest income | ||||
Net realized and unrealized gains (losses) on commercial loans originated for sale | 684 | 13,704 | (5,412) | 24,319 |
Change in value of investment in unconsolidated entity | (45) | |||
Leasing related income | 1,519 | 589 | 2,795 | 2,311 |
Other | 947 | 490 | 1,996 | 1,379 |
Total non-interest income | 24,352 | 33,515 | 61,317 | 83,629 |
Non-interest expense | ||||
Salaries and employee benefits | 26,417 | 24,526 | 74,650 | 70,192 |
Depreciation and amortization | 785 | 885 | 2,457 | 2,825 |
Rent and related occupancy cost | 1,376 | 1,432 | 4,191 | 4,304 |
Data processing expense | 1,192 | 1,192 | 3,538 | 3,684 |
Printing and supplies | 114 | 164 | 440 | 506 |
Audit expense | 397 | 402 | 1,205 | 1,265 |
Legal expense | 994 | 1,466 | 4,136 | 4,324 |
Amortization of intangible assets | 147 | 382 | 441 | 1,148 |
FDIC insurance | 2,180 | 860 | 7,687 | 4,884 |
Software | 3,595 | 3,199 | 10,458 | 9,180 |
Insurance | 741 | 663 | 2,059 | 1,874 |
Telecom and IT network communications | 392 | 417 | 1,186 | 1,060 |
Consulting | 410 | 934 | 1,011 | 2,576 |
SEC Settlement | 1,400 | 1,400 | ||
Lease termination expense | 908 | |||
Other | 3,286 | 4,129 | 9,605 | 10,669 |
Total non-interest expense | 42,026 | 42,051 | 123,064 | 120,799 |
Income from continuing operations before income taxes | 31,025 | 28,374 | 75,608 | 65,989 |
Income tax expense | 7,894 | 7,975 | 19,033 | 17,585 |
Net income from continuing operations | 23,131 | 20,399 | 56,575 | 48,404 |
Discontinued operations | ||||
Income (loss) from discontinued operations before income taxes | (1,671) | 151 | (2,720) | 1,875 |
Income tax expense (benefit) | (1,794) | 125 | (2,058) | 574 |
Income (loss) from discontinued operations, net of tax | 123 | 26 | (662) | 1,301 |
Net income | $ 23,254 | $ 20,425 | $ 55,913 | $ 49,705 |
Net income per share from continuing operations - basic | $ 0.40 | $ 0.36 | $ 0.98 | $ 0.85 |
Net income (loss) per share from discontinued operations - basic | (0.01) | 0.02 | ||
Net income per share - basic | 0.40 | 0.36 | 0.97 | 0.87 |
Net income per share from continuing operations - diluted | 0.40 | 0.36 | 0.97 | 0.85 |
Net income (loss) per share from discontinued operations - diluted | (0.01) | 0.02 | ||
Net income per share - diluted | $ 0.40 | $ 0.36 | $ 0.96 | $ 0.87 |
Service Fees On Deposit Accounts [Member] | ||||
Non-interest income | ||||
Non-interest income | $ 8 | $ 8 | $ 23 | $ 69 |
ACH, Card And Other Payment Processing Fees [Member] | ||||
Non-interest income | ||||
Non-interest income | 1,760 | 2,590 | 5,313 | 7,414 |
Prepaid, Debit Card And Related Fees [Member] | ||||
Non-interest income | ||||
Non-interest income | $ 19,434 | $ 16,134 | $ 56,647 | $ 48,137 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 23,254 | $ 20,425 | $ 55,913 | $ 49,705 |
Other comprehensive income Securities available-for-sale: | ||||
Change in net unrealized gain (loss) during the period | (114) | 5,800 | 20,068 | 31,890 |
Amortization of losses previously held as available-for-sale | 7 | 5 | 22 | |
Other comprehensive income | (114) | 5,807 | 20,073 | 31,912 |
Income tax expense related to items of other comprehensive income Securities available-for-sale: | ||||
Change in net unrealized gain (loss) during the period | (31) | 1,566 | 5,418 | 8,610 |
Amortization of losses previously held as available-for-sale | 2 | 1 | 6 | |
Income tax expense related to items of other comprehensive income | (31) | 1,568 | 5,419 | 8,616 |
Other comprehensive income (loss), net of tax and reclassifications into net income | (83) | 4,239 | 14,654 | 23,296 |
Comprehensive income | $ 23,171 | $ 24,664 | $ 70,567 | $ 73,001 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings/(Accumulated Deficit) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Accumulated Other Comprehensive (Loss)/Income [Member] | Total |
Balance at Dec. 31, 2018 | $ 56,446 | $ (866) | $ 366,181 | $ (817) | $ (14,168) | $ 406,776 | ||
Balance, shares at Dec. 31, 2018 | 56,446,088 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 17,930 | 17,930 | ||||||
Common stock issued from restricted units, net of tax benefits | $ 122 | (122) | ||||||
Common stock issued from restricted units, net of tax benefits, shares | 121,916 | |||||||
Stock-based compensation | 1,424 | 1,424 | ||||||
Other comprehensive income net of reclassification adjustments and tax | 8,650 | 8,650 | ||||||
Balance at Mar. 31, 2019 | $ 56,568 | (866) | 367,483 | 17,113 | (5,518) | 434,780 | ||
Balance (in shares) at Mar. 31, 2019 | 56,568,004 | |||||||
Balance at Dec. 31, 2018 | $ 56,446 | (866) | 366,181 | (817) | (14,168) | 406,776 | ||
Balance, shares at Dec. 31, 2018 | 56,446,088 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 49,705 | |||||||
Other comprehensive income net of reclassification adjustments and tax | 23,296 | |||||||
Balance at Sep. 30, 2019 | $ 56,911 | (866) | 370,113 | 48,888 | 9,128 | 484,174 | ||
Balance (in shares) at Sep. 30, 2019 | 56,910,521 | |||||||
Balance at Mar. 31, 2019 | $ 56,568 | (866) | 367,483 | 17,113 | (5,518) | 434,780 | ||
Balance, shares at Mar. 31, 2019 | 56,568,004 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 11,350 | 11,350 | ||||||
Common stock issued from restricted units, net of tax benefits | $ 307 | (307) | ||||||
Common stock issued from restricted units, net of tax benefits, shares | 306,952 | |||||||
Stock-based compensation | 1,595 | 1,595 | ||||||
Other comprehensive income net of reclassification adjustments and tax | 10,407 | 10,407 | ||||||
Balance at Jun. 30, 2019 | $ 56,875 | (866) | 368,771 | 28,463 | 4,889 | 458,132 | ||
Balance (in shares) at Jun. 30, 2019 | 56,874,956 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 20,425 | 20,425 | ||||||
Common stock issued from restricted units, net of tax benefits | $ 36 | (36) | ||||||
Common stock issued from restricted units, net of tax benefits, shares | 35,565 | |||||||
Stock-based compensation | 1,378 | 1,378 | ||||||
Other comprehensive income net of reclassification adjustments and tax | 4,239 | 4,239 | ||||||
Balance at Sep. 30, 2019 | $ 56,911 | (866) | 370,113 | 48,888 | 9,128 | 484,174 | ||
Balance (in shares) at Sep. 30, 2019 | 56,910,521 | |||||||
Balance at Dec. 31, 2019 | $ (2,373) | $ (2,373) | $ 56,941 | (866) | 371,633 | 50,742 | 6,047 | $ 484,497 |
Balance, shares at Dec. 31, 2019 | 56,940,521 | 56,940,521 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 12,591 | $ 12,591 | ||||||
Common stock issued from option exercises, net of tax benefits | $ 74 | 546 | 620 | |||||
Common stock issued from option exercises, net of tax benefits, shares | 74,000 | |||||||
Common stock issued from restricted units, net of tax benefits | $ 411 | (411) | ||||||
Common stock issued from restricted units, net of tax benefits, shares | 411,035 | |||||||
Stock-based compensation | 1,216 | 1,216 | ||||||
Other comprehensive income net of reclassification adjustments and tax | 1,553 | 1,553 | ||||||
Balance at Mar. 31, 2020 | $ 57,426 | (866) | 372,984 | 60,960 | 7,600 | 498,104 | ||
Balance (in shares) at Mar. 31, 2020 | 57,425,556 | |||||||
Balance at Dec. 31, 2019 | $ (2,373) | $ (2,373) | $ 56,941 | (866) | 371,633 | 50,742 | 6,047 | $ 484,497 |
Balance, shares at Dec. 31, 2019 | 56,940,521 | 56,940,521 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 55,913 | |||||||
Other comprehensive income net of reclassification adjustments and tax | 14,654 | |||||||
Balance at Sep. 30, 2020 | $ 57,591 | (866) | 376,751 | 104,282 | 20,701 | $ 558,459 | ||
Balance (in shares) at Sep. 30, 2020 | 57,590,874 | 57,590,874 | ||||||
Balance at Mar. 31, 2020 | $ 57,426 | (866) | 372,984 | 60,960 | 7,600 | $ 498,104 | ||
Balance, shares at Mar. 31, 2020 | 57,425,556 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 20,068 | 20,068 | ||||||
Common stock issued from option exercises, net of tax benefits | $ 129 | (129) | ||||||
Common stock issued from option exercises, net of tax benefits, shares | 129,752 | |||||||
Stock-based compensation | 1,723 | 1,723 | ||||||
Other comprehensive income net of reclassification adjustments and tax | 13,184 | 13,184 | ||||||
Balance at Jun. 30, 2020 | $ 57,555 | (866) | 374,578 | 81,028 | 20,784 | 533,079 | ||
Balance (in shares) at Jun. 30, 2020 | 57,555,308 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 23,254 | 23,254 | ||||||
Common stock issued from restricted units, net of tax benefits | $ 36 | (36) | ||||||
Common stock issued from restricted units, net of tax benefits, shares | 35,566 | |||||||
Stock-based compensation | 2,209 | 2,209 | ||||||
Other comprehensive income net of reclassification adjustments and tax | (83) | (83) | ||||||
Balance at Sep. 30, 2020 | $ 57,591 | $ (866) | $ 376,751 | $ 104,282 | $ 20,701 | $ 558,459 | ||
Balance (in shares) at Sep. 30, 2020 | 57,590,874 | 57,590,874 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities | ||
Net income from continuing operations | $ 56,575 | $ 48,404 |
Net income (loss) from discontinued operations | (662) | 1,301 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities | ||
Depreciation and amortization | 2,898 | 3,973 |
Provision for credit losses | 5,798 | 2,950 |
Net amortization of investment securities discounts/premiums | 13,929 | 14,270 |
Stock-based compensation expense | 5,149 | 4,396 |
Loans originated for sale | (683,696) | (1,099,719) |
Sales and payments of commercial loans originated for resale | 10,586 | 1,232,041 |
Loss (gain) on commercial loans originated for resale | 126 | (25,228) |
Loss from discontinued operations | 668 | 191 |
Fair value adjustment on investment in unconsolidated entity | 45 | |
Change in fair value of commercial loans, at fair value | 3,054 | (1,562) |
Change in fair value of derivatives | 2,233 | 2,471 |
Increase in accrued interest receivable | (5,233) | (1,145) |
(Increase) decrease in other assets | 8,050 | (22,095) |
Change in fair value of discontinued loans held-for-sale | 123 | |
Increase (decrease) in other liabilities | (2,770) | 2,949 |
Net cash provided by (used in) operating activities | (583,250) | 163,320 |
Investing activities | ||
Purchase of investment securities available-for-sale | (27,658) | (157,480) |
Proceeds from redemptions and prepayments of securities available-for-sale | 173,892 | 122,438 |
Net cash paid due to acquisitions, net of cash acquired | (3,920) | |
Net decrease in repossessed assets | 10,529 | |
Net increase in loans | (672,666) | (179,806) |
Net decrease in discontinued loans held-for-sale | 13,710 | 28,939 |
Purchases of premises and equipment | (999) | (1,824) |
Change in receivable from investment in unconsolidated entity | 45 | 123 |
Return of investment in unconsolidated entity | 7,326 | 9,842 |
Decrease in discontinued assets held-for-sale | 4,026 | 6,671 |
Net cash used in investing activities | (495,715) | (171,097) |
Financing activities | ||
Net increase in deposits | 336,732 | 409,983 |
Net decrease in securities sold under agreements to repurchase | (40) | |
Proceeds of senior debt offering | 98,160 | |
Proceeds from the issuance of common stock | 619 | |
Net cash provided by financing activities | 435,471 | 409,983 |
Net increase (decrease) in cash and cash equivalents | (643,494) | 402,206 |
Cash and cash equivalents, beginning of period | 944,472 | 554,302 |
Cash and cash equivalents, end of period | 300,978 | 956,508 |
Supplemental disclosure: | ||
Interest paid | 11,098 | 28,871 |
Taxes paid | 16,694 | 15,037 |
Non-cash investing and financing activities | ||
Investment securities transferred in securitization transaction | 93,191 | |
Loans settled in acquisition | 3,961 | |
Transfers of discontinued loans to discontinued other real estate owned | 3,780 | $ 5,295 |
Non-cash operating activities | ||
Leased vehicles transferred to repossessed assets | $ 15,318 |
Structure of Company
Structure of Company | 9 Months Ended |
Sep. 30, 2020 | |
Structure of Company [Abstract] | |
Structure of Company | Note 1. Structure of Company The Bancorp, Inc., or the Company, is a Delaware corporation and a registered financial holding company. Its primary subsidiary is The Bancorp Bank, or the Bank, which is wholly owned by the Company. The Bank is a Delaware chartered commercial bank located in Wilmington, Delaware and is a Federal Deposit Insurance Corporation, or the FDIC, insured institution. In its continuing operations, the Bank has four primary lines of specialty lending: securities-backed lines of credit, or SBLOC, and cash value of insurance-backed lines of credit, or IBLOC, leasing (direct lease financing), Small Business Administration, or SBA, loans and loans generated for sale into capital markets primarily through commercial loan securitizations, or CMBS. In the third quarter of 2020, the Company decided to retain the CMBS loans on its balance sheet and no future securitizations are currently planned. Through the Bank, the Company also provides banking services nationally, which include prepaid and debit cards, private label banking, deposit accounts to investment advisors’ customers, card payment and other payment processing. The Company and the Bank are subject to regulation by certain state and federal agencies and, accordingly, they are examined periodically by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s and the Bank’s businesses may be affected by state and federal legislation and regulations. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2. Significant Accounting Policies Basis of Presentation The financial statements of the Company, as of September 30, 2020 and for the three and nine month periods ended September 30, 2020 and 2019, are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. However, in the opinion of management, these interim financial statements include all necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, or the 2019 Form 10-K. The results of operations for the nine month period ended September 30, 2020 may not necessarily be indicative of the results of operations for the full year ending December 31, 2020. Revenue Recognition The Company’s revenue streams that are in the scope of Accounting Standards Codification (ASC) 606 include prepaid and debit card, card payment, ACH and deposit processing and other fees. The Company recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of a contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time. Revenue is recognized as the amount of consideration to which the Company expects to be entitled, in exchange for transferring goods or services to a customer. When consideration includes a variable component, the amount of consideration attributable to variability is included in the transaction price only to the extent it is probable that significant revenue recognized will not be reversed when uncertainty associated with the variable consideration is subsequently resolved. The Company’s contracts generally do not contain terms that require significant judgment to determine the variability impacting the transaction price. A performance obligation is deemed satisfied when the control over goods or services is transferred to the customer. Control is transferred to a customer either at a point in time or over time. To determine when control is transferred at a point in time, the Company considers indicators, including but not limited to the right to payment for the asset, transfer of significant risk and rewards of ownership of the asset and acceptance of the asset by the customer. When control is transferred over a period of time, for different performance obligations, either the input or output method is used to measure progress for the transfer. The measure of progress used to assess completion of the performance obligation varies between performance obligations and may be based on time throughout the period of service or on the value of goods and services transferred to the customer. As each distinct service or activity is performed, the Company transfers control to the customer based on the services performed as the customer simultaneously receives the benefits of those services. This timing of revenue recognition aligns with the resolution of any uncertainty related to variable consideration. Costs incurred to obtain a revenue producing contract generally are expensed when incurred, as a practical expedient, because the contractual period for the majority of contracts is one year or less. The Company’s revenue streams that are in the scope of Accounting Standards Codification (ASC) 606 include prepaid and debit card, card payment, ACH and deposit processing and other fees. The fees on those revenue streams are generally assessed and collected as the transaction occurs, or on a monthly or quarterly basis. The Company has completed its review of the contracts and other agreements that are within the scope of revenue guidance and did not identify any material changes to the timing or amount of revenue recognition. The Company’s accounting policies did not change materially since the principles of revenue recognition in Accounting Standards Update ( ASU) 2014-09, “Revenue from Contracts with Customers” are largely consistent with previous practices already implemented and applied by the Company. The vast majority of the Company’s services related to its revenues are performed, earned and recognized monthly. Prepaid and debit card fees primarily include fees for services related to reconciliation, fraud detection, regulatory compliance and other services which are performed and earned daily or monthly, and are also billed and collected on a monthly basis. Accordingly, there is no significant component of the services the Company performs or related revenues which are deferred. The Company earns transactional and/or interchange fees on prepaid card accounts when transactions occur, and revenue is billed and collected monthly or quarterly. Certain volume or transaction based interchange expenses paid to payment networks such as Visa, reduce revenue which is presented net on the income statement. Card payment and ACH processing fees include transaction fees earned for processing merchant transactions. Revenue is recognized when a cardholder’s transaction is approved and settled, or monthly. ACH processing fees are earned on a per item basis, as the transactions are processed for third-party clients, and are also billed and collected monthly. Service charges on deposit accounts include fees and other charges the Company receives to provide various services, including, but not limited to, account maintenance, check writing, wire transfer and other services normally associated with deposit accounts. Revenue for these services is recognized monthly as the services are performed. The Company’s customer contracts do not typically have performance obligations, and fees are collected and earned when the transaction occurs. The Company may, from time to time, waive certain fees for customers, but generally does not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer. Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (ROU) assets and operating lease liabilities are included in our consolidated financial statements. ROU assets represent our right-of-use of an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments pursuant to our leases. The ROU assets and liabilities are recognized at commencement of the lease based on the present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its incremental borrowing rate. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Current Expected Credit Losses For loans held for investment at amortized cost, the Company, in 2020, began to utilize a current expected credit loss, or CECL, approach to determine the allowance for credit losses. CECL requires loss estimates for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts. Risks and Uncertainties ASC 275 addresses disclosures when it is reasonably possible that estimates in the financial statements may change in future periods. The ultimate severity of the economic impact of Coronavirus is not known, but its negative impact may exceed the effect of current or future government mitigation efforts, which could impact loan performance. Additionally, under regulatory guidance loans may be granted six month payment deferrals without classification as non-accrual, delinquency or troubled debt restructuring, barring other information which would require such classification. The Company has followed the guidance of regulators and is granting such deferrals, but the duration of the crisis is uncertain and government actions after that period are unknown. Accordingly, our future estimates for the provision for credit losses could increase while the estimated values of loans accounted for on the basis of fair value could decrease, either of which would reduce our income. Senior Debt On August 13, 2020, the Company issued $ 100 million of senior debt with a maturity date of August 15, 2025 , and a 4.75 % interest rate, with interest paid semi-annually on March 15 and September 15. The Senior Notes are the Company’s direct, unsecured and unsubordinated obligations and rank equal in priority with all of our existing and future unsecured and unsubordinated indebtedness and senior in right of payment to all of our existing and future subordinated indebtedness. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 3. Stock-based Compensation The Company recognizes compensation expense for stock options in accordance with Financial Accounting Standards Board (FASB) ASC 718, “Stock Based Compensation”. The expense of the option is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is typically the vesting period. For grants subject to a service condition, the Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. In accordance with ASC 718, the Company estimates the number of options for which the requisite service is expected to be rendered . At September 30, 2020, the Company had four active stock-based compensation plans. The 2020 equity compensation plan was approved at the annual meeting in May 2020. Employees and directors of the Company and the Bank and consultants (with restrictions) are eligible to participate in the plan.The option term may not exceed 10 years from the date of the grant. An aggregate of 3,300,000 shares of common stock were reserved for issuance under the plan. Restricted stock units may also be granted under the plan with conditions similar to those for options. The plan is more fully described in the proxy for the May 2020 annual meeting. The Company granted 300,000 stock options with a vesting period of four years during the nine month period ended September 30, 2020. The weighted average grant-date fair value was $ 3.02 . The Company granted 65,104 stock options with a vesting period of four years during the nine month period ended September 30, 2019. The weighted average grant-date fair value was $ 3.84 . There were 74,000 common stock options exercised in the nine month period ended September 30, 2020, and no common stock options exercised in the nine month period ended September 30, 2019. A summary of the Company’s stock options is presented below. Weighted average remaining Weighted average contractual Aggregate Shares exercise price term (years) intrinsic value Outstanding at January 1, 2020 1,311,604 $ 8.24 3.11 $ 6,203,523 Granted 300,000 6.87 3.71 531,000 Exercised ( 74,000 ) 8.38 - 310,280 Expired ( 147,000 ) 7.81 - - Forfeited ( 8,000 ) 9.39 - - Outstanding at September 30, 2020 1,382,604 $ 7.97 4.31 $ 1,372,257 Exercisable at September 30, 2020 1,033,776 $ 8.27 2.58 $ 837,839 The Company granted 1,531,702 restricted stock units (RSUs) in the first nine months of 2020 of which 1,387,602 have a vesting period of two years and nine months and 144,100 have a vesting period of one year . At issuance, the 1,531,702 RSUs granted in the first nine months of 2020 had a fair value of $ 6.87 per unit. In the first nine months of 2019, the Company granted 930,831 RSUs of which 863,331 had a vesting period of three years and 67,500 had a vesting period of one year . The 930,831 RSUs granted in the first nine months of 2019 had a fair value of $ 8.57 per unit. A summary of the status of the Company’s RSUs is presented below. Weighted average Average remaining grant date contractual Shares fair value term (years) Outstanding at January 1, 2020 1,253,927 $ 8.87 1.64 Granted 1,531,702 6.87 2.23 Vested ( 576,356 ) 8.64 - Forfeited ( 12,971 ) 9.10 - Outstanding at September 30, 2020 2,196,302 $ 7.53 1.90 As of September 30, 2020, there was a total of $ 13.4 million of unrecognized compensation cost related to unvested awards under share-based plans. This cost is expected to be recognized over a weighted average period of approximately 2.1 years. Related compensation expense for the nine months ended September 30, 2020 and 2019 was $ 5.1 million and $ 4.4 million, respectively. The total issuance date fair value of RSUs vested and options exercised during the nine months ended September 30, 2020 and 2019 was $ 5.3 million and $ 3.8 million, respectively. The total intrinsic value of the options exercised and stock units vested in those respective periods was $ 6.5 million and $ 4.3 million, respectively. For the periods ended September 30, 2020 and 2019, the Company estimated the fair value of each stock option grant on the date of grant using the Black-Scholes options pricing model with the following weighted average assumptions: September 30, 2020 2019 Risk-free interest rate 0.68 % 2.63 % Expected dividend yield - - Expected volatility 45.20 % 41.83 % Expected lives (years) 1.0 - 6.3 1.0 - 6.3 Expected volatility is based on the historical volatility of the Company’s stock and peer group comparisons over the expected life of the grant. The risk-free rate for periods within the expected life of the option is based on the U.S. Treasury strip rate in effect at the time of the grant. The life of the option is based on historical factors which include the contractual term, vesting period, exercise behavior and employee terminations. In accordance with the ASC 718, Stock Based Compensation, stock based compensation expense for the period ended September 30, 2020 is based on awards that are ultimately expected to vest and has been reduced for estimated forfeitures. The Company estimated forfeitures using historical data based upon the groups identified by management. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 4. Earnings Per Share The Company calculates earnings per share under ASC 260, “Earnings Per Share”. Basic earnings per share exclude dilution and are computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. The following tables show the Company’s earnings per share for the periods presented: For the three months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 23,131 57,588,168 $ 0.40 Effect of dilutive securities Common stock options and restricted stock units - 883,024 - Diluted earnings per share Net earnings available to common shareholders $ 23,131 58,471,192 $ 0.40 For the three months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 123 57,588,168 $ - Effect of dilutive securities Common stock options and restricted stock units - 883,024 - Diluted earnings per share Net earnings available to common shareholders $ 123 58,471,192 $ - For the three months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 23,254 57,588,168 $ 0.40 Effect of dilutive securities Common stock options and restricted stock units - 883,024 - Diluted earnings per share Net earnings available to common shareholders $ 23,254 58,471,192 $ 0.40 Stock options for 1,056,604 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2020, and included in the dilutive earnings per share computation. Stock options for 326,000 were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 56,575 57,433,477 $ 0.98 Effect of dilutive securities Common stock options and restricted stock units - 618,356 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 56,575 58,051,833 $ 0.97 For the nine months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic loss per share from discontinued operations Net loss available to common shareholders $ ( 662 ) 57,433,477 $ ( 0.01 ) Effect of dilutive securities Common stock options and restricted stock units - 618,356 - Diluted loss per share Net loss available to common shareholders $ ( 662 ) 58,051,833 $ ( 0.01 ) For the nine months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 55,913 57,433,477 $ 0.97 Effect of dilutive securities Common stock options and restricted stock units - 618,356 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 55,913 58,051,833 $ 0.96 Stock options for 1,056,604 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2020, and included in the dilutive earnings per share computation. Stock options for 326,000 were anti-dilutive and not included in the earnings per share calculation. For the three months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 20,399 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,399 57,413,297 $ 0.36 For the three months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 26 56,907,815 $ - Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 26 57,413,297 $ - For the three months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 20,425 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,425 57,413,297 $ 0.36 Stock options for 984,104 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2019, and included in the dilutive earnings per shares computation shares because the exercise price per share was less than the average market price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 48,404 56,712,084 $ 0.85 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 48,404 57,152,371 $ 0.85 For the nine months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 1,301 56,712,084 $ 0.02 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 1,301 57,152,371 $ 0.02 For the nine months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 49,705 56,712,084 $ 0.87 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 49,705 57,152,371 $ 0.87 Stock options for 984,104 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2019, and included in dilutive earnings per share computation shares because the exercise price per share was less than the average market price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities [Abstract] | |
Investment Securities | Note 5. Investment Securities In March 2020, the Company transferred the four securities previously comprising its held-to-maturity securities portfolio to available-for-sale. The interest rates for these securities utilize the London Inter-bank Offered Rate (LIBOR) as a benchmark and were permitted to be transferred by a provision of ASU 2020-04, to maximize management and accounting flexibility as a result of the phase-out of LIBOR. The amortized cost, gross unrealized gains and losses, and fair values of the Company’s investment securities classified as available-for-sale and held-to-maturity at September 30, 2020 and December 31, 2019 are summarized as follows (in thousands): Available-for-sale September 30, 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 46,040 $ 2,477 $ ( 140 ) $ 48,377 Asset-backed securities * 239,961 28 ( 1,810 ) 238,179 Tax-exempt obligations of states and political subdivisions 4,041 255 - 4,296 Taxable obligations of states and political subdivisions 49,847 4,315 - 54,162 Residential mortgage-backed securities 275,764 10,043 ( 106 ) 285,701 Collateralized mortgage obligation securities 165,147 4,103 ( 37 ) 169,213 Commercial mortgage-backed securities 370,673 17,648 ( 5,040 ) 383,281 Corporate debt securities 85,074 464 ( 3,844 ) 81,694 $ 1,236,547 $ 39,333 $ ( 10,977 ) $ 1,264,903 September 30, 2020 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 29,238 $ 7 $ ( 365 ) $ 28,880 Collateralized loan obligation securities 210,723 21 ( 1,445 ) 209,299 $ 239,961 $ 28 $ ( 1,810 ) $ 238,179 Available-for-sale December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 52,415 $ 672 $ ( 177 ) $ 52,910 Asset-backed securities * 244,751 132 ( 534 ) 244,349 Tax-exempt obligations of states and political subdivisions 5,174 144 - 5,318 Taxable obligations of states and political subdivisions 58,258 1,992 - 60,250 Residential mortgage-backed securities 335,068 2,629 ( 1,101 ) 336,596 Collateralized mortgage obligation securities 221,109 1,826 ( 208 ) 222,727 Commercial mortgage-backed securities 394,852 3,836 ( 146 ) 398,542 $ 1,311,627 $ 11,231 $ ( 2,166 ) $ 1,320,692 December 31, 2019 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 33,852 $ 10 $ ( 323 ) $ 33,539 Collateralized loan obligation securities 210,899 122 ( 211 ) 210,810 $ 244,751 $ 132 $ ( 534 ) $ 244,349 Held-to-maturity December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,219 $ - $ ( 2,067 ) $ 7,152 Other debt securities - pooled 75,168 682 - 75,850 $ 84,387 $ 682 $ ( 2,067 ) $ 83,002 Investments in Federal Home Loan Bank (FHLB) and Atlantic Central Bankers Bank stock are recorded at cost and amounted to $ 1.4 million and $ 5.3 million, respectively, at September 30, 2020 and December 31, 2019. The amount of FHLB stock required to be held is based on the amount of borrowings, and after such borrowings, the stock may be redeemed. The amortized cost and fair value of the Company’s investment securities at September 30, 2020, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair cost value Due before one year $ 2,186 $ 2,214 Due after one year through five years 153,599 162,951 Due after five years through ten years 224,146 231,236 Due after ten years 856,616 868,502 $ 1,236,547 $ 1,264,903 At September 30, 2020 and December 31, 2019, no investment securities were encumbered through pledging. Fair values of available-for-sale securities are based on the fair market values supplied by a third-party market data provider, or where such third-party market data is not available, fair values are based on discounted cash flows. The third-party market data provider uses a pricing matrix which it creates daily, taking into consideration actual trade data, projected prepayments, and when relevant, projected credit defaults and losses. The table below indicates the length of time individual securities had been in a continuous unrealized loss position at September 30, 2020 (dollars in thousands): Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 4 $ 538 $ ( 2 ) $ 6,043 $ ( 138 ) $ 6,581 $ ( 140 ) Asset-backed securities 34 168,437 ( 1,293 ) 55,437 ( 517 ) 223,874 ( 1,810 ) Residential mortgage-backed securities 11 5,101 ( 42 ) 8,042 ( 64 ) 13,143 ( 106 ) Collateralized mortgage obligation securities 8 7,225 ( 36 ) 3,626 ( 1 ) 10,851 ( 37 ) Commercial mortgage-backed securities 4 61,677 ( 5,023 ) 10,021 ( 17 ) 71,698 ( 5,040 ) Corporate debt securities 1 - - 6,157 ( 3,844 ) 6,157 ( 3,844 ) Total temporarily impaired investment securities 62 $ 242,978 $ ( 6,396 ) $ 89,326 $ ( 4,581 ) $ 332,304 $ ( 10,977 ) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 2019 (dollars in thousands): Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 5 $ 12,214 $ ( 44 ) $ 3,986 $ ( 133 ) $ 16,200 $ ( 177 ) Asset-backed securities 28 115,909 ( 275 ) 56,427 ( 260 ) 172,336 ( 535 ) Residential mortgage-backed securities 64 58,682 ( 114 ) 73,311 ( 987 ) 131,993 ( 1,101 ) Collateralized mortgage obligation securities 22 37,387 ( 85 ) 18,136 ( 123 ) 55,523 ( 208 ) Commercial mortgage-backed securities 4 35,095 ( 129 ) 3,162 ( 16 ) 38,257 ( 145 ) Total temporarily impaired investment securities 123 $ 259,287 $ ( 647 ) $ 155,022 $ ( 1,519 ) $ 414,309 $ ( 2,166 ) Held-to-maturity Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities Corporate and other debt securities: Single issuers 1 $ - $ - $ 7,152 $ ( 2,067 ) $ 7,152 $ ( 2,067 ) Total temporarily impaired investment securities 1 $ - $ - $ 7,152 $ ( 2,067 ) $ 7,152 $ ( 2,067 ) The Company owns one single issuer trust preferred security issued by an insurance company. The security is not rated by any bond rating service. At September 30, 2020, it had a book value of $ 10.0 million and a fair value of $ 6.2 million. The Company has evaluated the securities in the above tables as of September 30, 2020 and has concluded that no ne of these securities required an allowance for credit loss. The Company evaluates whether an allowance for credit loss is required by considering primarily the following factors: (a) the extent to which the fair value is less than the amortized cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on contractually obligated interest and principal payments, (d) changes in the financial condition of the security’s underlying collateral and (e) the payment structure of the security. The Company’s determination of the best estimate of expected future cash flows, which is used to determine the credit loss amount, is a quantitative and qualitative process that incorporates information received from third-party sources along with internal assumptions and judgments regarding the future performance of the security. The Company concluded that the securities that are in an unrealized loss position are in a loss position because of changes in market interest rates after the securities were purchased. The Company’s unrealized loss for other debt securities, which include one single issuer trust preferred security, is primarily related to general market conditions, including a lack of liquidity in the market. The severity of the impact of fair value in relation to the carrying amounts of the individual investments is consistent with market developments. The Company’s analysis of each investment is performed at the security level. As a result of its review, the Company concluded that an allowance was not required to recognize credit losses. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2020 | |
Loans [Abstract] | |
Loans | Note 6. Loans The Company has several lending lines of business including small business comprised primarily of SBA loans, direct lease financing, SBLOC and IBLOC and other specialty and consumer lending. T he Company also originated loans for sale into commercial mortgage-backed securitizations or to secondary government guaranteed loan markets. At origination, the Company elected fair value treatment for these loans as they were originally held-for-sale, to better reflect the economics of the transactions. Currently, the Company intends to hold these loans on its balance sheet, and thus no longer accounts for these loans as held-for-sale. The Company continues to present these loans at fair value. At September 30, 2020, the fair value of these loans was $ 1.85 billion and their amortized cost was $ 1.85 billion. Included in “Net realized and unrealized gains (losses) on commercial loans originated for sale” in the consolidated statements of operations are changes in the estimate in fair value of unsold loans. For the nine months ended September 30, 2020, unrealized losses recognized for such changes in fair value were $ 3.1 million of which $ 490,000 was attributable to credit weaknesses. For the nine months ended September 30, 2019, unrealized gains recognized for such changes in fair value were $ 1.6 million. Interest earned on loans at fair value during the period held is recorded in Interest Income-Loans, including fees, in the consolidated statements of operations. The Bank also pledged the majority of its loans held for investment at amortized cost and commercial loans at fair value to the Federal Home Loan Bank and to the Federal Reserve Bank for lines of credit. The Federal Home Loan Bank line is periodically utilized to manage liquidity, but the Federal Reserve line has not generally been used. However, in light of the impact of the Coronavirus, the Federal Reserve has encouraged banks to utilize their lines to maximize the amount of funding available for credit markets. Accordingly, the Bank has periodically borrowed against its Federal Reserve line on an overnight basis. The amount of loans pledged varies and the collateral may be unpledged at any time to the extent the collateral exceeds advances. The lines are maintained consistent with the Bank’s liquidity policy which maximizes potential liquidity. The Company has periodically sponsored the structuring of commercial mortgage loan securitizations. The Company has sponsored six of these securitizations since 2017 which are described in the 2019 Form 10-K . The loans sold to the commercial mortgage-backed securitizations are transitional commercial mortgage loans which are made to improve and rehabilitate existing properties which are already cash flowing. Servicing rights are not retained. Each of the securitizations is considered a variable interest entity of which the Company is not the primary beneficiary and therefore are not consolidated in its financial statements. Further, true sale accounting has been applicable to each of the securitizations, as supported by a review performed by an independent third-party consultant. In each of the securitizations, the Company has obtained a tranche of certificates which are accounted for as available-for-sale debt securities. The securities are recorded at fair value at acquisition, which is determined by an independent third party based on the discounted cash flow method using unobservable (level 3) inputs. The loans securitized are structured with some prepayment protection and with extension options which are common for rehabilitation loans. It was expected such prepayment protection and extension options would generally offset the impact of prepayments which would therefore not be significant. Accordingly, prepayments on CRE securities were not originally assumed in the first four securitizations. However, as a result of higher than expected prepayments on CRE2 annual prepayments of 15 % on CRE5 were assumed, beginning after the first-year anniversary of the CRE5 securitization. For CRE6, there was no premium or discount associated with the tranche purchased and prepayments were accordingly not estimated. Because of credit enhancements for each security, cash flows were not reduced by expected losses. For each of the securitizations, the Company has recorded a gain which is comprised of (i) the excess of consideration received by the Company in the transaction over the carrying value of the loans at securitization, less related transactions costs incurred; and (ii) the recognition of previously deferred origination and exit fees. There were no securitizations during the nine months ended September 30, 2020. A summary of securitizations and securities obtained from securitizations for the nine month period ended September 30, 2019 is as follows: In the third quarter of 2019, the Company sponsored the The Bancorp Commercial Mortgage 2019-CRE6 Trust, securitizing $ 778.2 million of loans and recording a $ 14.2 gain. The certificates obtained by the Company in the transaction had an acquisition date fair value of $ 51.6 million based upon an initial discount rate of 4.12 %. In the first quarter of 2019, the Company sponsored The Bancorp Commercial Mortgage 2019-CRE5 Trust, securitizing $ 518.3 million of loans and recording an $ 11.2 million gain. The certificates obtained by the Company in the transaction had an acquisition date fair value of $ 41.6 million based upon an initial discount rate of 4.75 %. In the third quarter of 2020, the Company decided to not pursue securitizations and no future securitizations are currently planned. The loans being currently retained total approximately $ 1.6 billion and are mostly comprised of multi-family loans, specifically apartment buildings. The $ 1.6 billion comprises the majority of the commercial loans, at fair value on the balance sheet, with the balance of that category comprised of the government guaranteed portion of SBA loans. The Company analyzes credit risk prior to making loans on an individual loan basis. The Company considers relevant aspects of the borrowers’ financial position and cash flow, past borrower performance, management’s knowledge of market conditions, collateral and the ratio of loan amounts to estimated collateral value in making its credit determinations. Major classifications of loans, excluding commercial loans at fair value, are as follows (in thousands): September 30, December 31, 2020 2019 SBL non-real estate $ 293,488 $ 84,579 SBL commercial mortgage 270,264 218,110 SBL construction 27,169 45,310 Small business loans * 590,921 347,999 Direct lease financing 430,675 434,460 SBLOC / IBLOC ** 1,428,253 1,024,420 Advisor financing *** 26,600 - Other specialty lending 2,194 3,055 Other consumer loans **** 3,809 4,554 2,482,452 1,814,488 Unamortized loan fees and costs 6,308 9,757 Total loans, net of unamortized loan fees and costs $ 2,488,760 $ 1,824,245 September 30, December 31, 2020 2019 SBL loans, net of (deferred fees) and costs of $( 607 ) and $ 4,215 for September 30, 2020 and December 31, 2019, respectively $ 590,314 $ 352,214 SBL loans included in commercial loans at fair value 250,958 220,358 Total small business loans $ 841,272 $ 572,572 * The preceding table shows small business loans, or SBL, and SBL held at fair value at the dates indicated (in thousands). Included in SBL non-real estate loans are $ 207.9 million of Paycheck Protection Program loans with estimated lives of less than one year. While the majority of SBL are comprised of SBA loans, SBL also includes $ 17.8 million of non-SBA loans as of September 30, 2020 and $ 17.0 million at December 31, 2019. ** Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At September 30, 2020 and December 31, 2019, respectively, IBLOC loans amounted to $ 359.4 million and $ 144.6 million. *** In 2020, the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. **** Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $ 151,000 and $ 882,000 at September 30, 2020 and December 31, 2019, respectively. The following table provides information about loans individually evaluated for credit loss at September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 445 $ 3,525 $ - $ 365 $ 2 SBL commercial mortgage 2,036 2,036 - 1,056 - SBL construction - - - - - Direct lease financing 260 260 - 4,116 - Consumer - home equity 567 567 - 554 8 With an allowance recorded SBL non-real estate 2,775 2,775 ( 1,818 ) 3,310 12 SBL commercial mortgage 5,481 5,481 ( 1,010 ) 2,098 - SBL construction 711 711 ( 26 ) 711 - Direct lease financing 544 544 ( 43 ) 782 - Consumer - home equity - - - 30 - Total SBL non-real estate 3,220 6,300 ( 1,818 ) 3,675 14 SBL commercial mortgage 7,517 7,517 ( 1,010 ) 3,154 - SBL construction 711 711 ( 26 ) 711 - Direct lease financing 804 804 ( 43 ) 4,898 - Consumer - home equity 567 567 - 584 8 $ 12,819 $ 15,899 $ ( 2,897 ) $ 13,022 $ 22 December 31, 2019 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 335 $ 2,717 $ - $ 277 $ 5 SBL commercial mortgage 76 76 - 15 - SBL construction - - - 284 - Direct lease financing 286 286 - 362 11 Consumer - home equity 489 489 - 1,161 9 With an allowance recorded SBL non-real estate 3,804 4,371 ( 2,961 ) 3,925 30 SBL commercial mortgage 971 971 ( 136 ) 561 - SBL construction 711 711 ( 36 ) 284 - Direct lease financing - - - 244 - Consumer - home equity 121 121 ( 9 ) 344 - Total SBL non-real estate 4,139 7,088 ( 2,961 ) 4,202 35 SBL commercial mortgage 1,047 1,047 ( 136 ) 576 - SBL construction 711 711 ( 36 ) 568 - Direct lease financing 286 286 - 606 11 Consumer - home equity 610 610 ( 9 ) 1,505 9 $ 6,793 $ 9,742 $ ( 3,142 ) $ 7,457 $ 55 The l oan r eview department recommend s n on-accrual status for loans to the surveillance committee, where interest income appears to be uncollectible or a protracted delay in collection becomes evident. The surveillance committee further vets and approves the non-accrual status. The following table summarizes non-accrual loans with and without an allowance for credit losses as of the periods indicated (in thousands): September 30, 2020 December 31, 2019 Non-accrual loans with a related ACL * Non-accrual loans without a related ACL * Total non-accrual loans Total non-accrual loans SBL non-real estate $ 2,541 $ 394 $ 2,935 $ 3,693 SBL commercial mortgage 5,481 2,036 7,517 1,047 SBL construction 711 - 711 711 Direct leasing 544 260 804 - Consumer - 308 308 345 $ 9,277 $ 2,998 $ 12,275 $ 5,796 * Allowance for credit losses The following tables summarize the Company’s non-accrual loans, loans past due 90 days and still accruing and other real estate owned for the periods indicated (in thousands): September 30, December 31, 2020 2019 Non-accrual loans SBL non-real estate $ 2,935 $ 3,693 SBL commercial mortgage 7,517 1,047 SBL construction 711 711 Direct leasing 804 - Consumer 308 345 Total non-accrual loans 12,275 5,796 Loans past due 90 days or more and still accruing 24 3,264 Total non-performing loans 12,299 9,060 Other real estate owned - - Total non-performing assets $ 12,299 $ 9,060 Interest which would have been earned on loans classified as non-accrual for the nine months ended September 30, 2020 and 2019, was $ 459,000 and $ 356,000 , respectively. No income on non-accrual loans was recognized during the nine months ended September 30, 2020. In the nine months ended September 30, 2020 a total of $ 361,000 was reversed from interest income, which represented interest accrued on loans placed into non-accrual status during the period. The Company’s loans that were modified as of September 30, 2020 and December 31, 2019 and considered troubled debt restructurings are as follows (dollars in thousands): September 30, 2020 December 31, 2019 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 8 $ 927 $ 927 8 $ 1,309 $ 1,309 Direct lease financing 1 260 260 1 286 286 Consumer 2 474 474 2 489 489 Total 11 $ 1,661 $ 1,661 11 $ 2,084 $ 2,084 The balances below provide information as to how the loans were modified as troubled debt restructuring loans as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ - $ 23 $ 904 $ - $ 51 $ 1,258 Direct lease financing - 260 - - 286 - Consumer - - 474 - - 489 Total $ - $ 283 $ 1,378 $ - $ 337 $ 1,747 The Company had one troubled debt restructured loan at March 31, 2020 that had been restructured within the last 12 months that has subsequently defaulted. In February 2020, a single borrower came under financial stress and agreed to an orderly liquidation of vehicles collateralizing their $ 15.3 million loan balance at March 31, 2020, which was reflected in the direct lease financing balance and in troubled debt restructurings at that date. The borrower subsequently filed for bankruptcy and the bankruptcy court gave the Company permission to sell the vehicles which were transferred to other assets as of June 30, 2020. As a result of the sales, substantially all of the balance has been repaid, and the $ 15.3 million balance noted above was reduced to $ 1.7 million as of September 30, 2020. As of October 29, 2020, the balance had been reduced to $ 690,000 . Estimates of the disposition value of the remaining vehicles currently exceed the balance due. The Company had no commitments to extend additional credit to loans classified as troubled debt restructurings as of September 30, 2020 or December 31, 2019. When loans are classified as troubled debt restructurings, the Company estimates the value of underlying collateral and repayment sources. A specific reserve in the allowance for credit losses is established if the collateral valuation, less disposition costs, is lower than the recorded loan value. The amount of the specific reserve serves to increase the provision for credit losses in the quarter the loan is classified as a troubled debt restructuring . As of September 30, 2020, there were 11 troubled debt restructured loans with a balance of $ 1.7 million which had specific reserves of $ 479,000 . Substantially all of these reserves related to the non-guaranteed portion of SBA loans for start-up businesses. Effective January 1, 2020, CECL accounting replaced the prior incurred loss model that recognized losses when it became probable that a credit loss would be incurred, with a new requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Loans are deemed uncollectible based on individual facts and circumstances including the quality of repayment sources, the length of collection efforts and the probability and timing of recoveries. During the first quarter of 2020, upon adoption of the guidance, the allowance for credit losses was increased by $ 2.6 million. Additionally, $ 569,000 was established as an allowance for off-balance sheet credit losses (for unfunded loan commitments) and recorded in other liabilities. These amounts did not impact our Consolidated Statement of Operations, as the guidance required these cumulative differences between the two accounting conventions to flow through retained earnings, net of their income tax benefit. The following table shows the effect of the adoption of CECL as of January 1, 2020 and the September 30, 2020 allowance for credit loss (in thousands). December 31, 2019 January 1, 2020 September 30, 2020 Incurred loss method CECL (day 1 adoption) CECL Amount % of Segment Amount % of Segment Amount % of Segment Allowance for credit losses on loans and leases SBL non real estate $ 4,914 8.33 % $ 4,766 8.08 % $ 4,801 1.64 % SBL commercial mortgage 1,458 0.71 % 2,009 0.98 % 3,552 1.31 % SBL construction 432 0.95 % 571 1.26 % 423 1.56 % Direct lease financing 2,426 0.56 % 4,788 1.10 % 5,847 1.35 % SBLOC 440 0.05 % 440 0.05 % 534 0.00 % IBLOC 113 0.08 % 72 0.05 % 180 0.00 % Advisor financing - 0.00 % - 0.00 % 199 0.75 % Other specialty lending (1) 97 0.39 % 170 0.40 % 148 6.75 % Consumer - other 40 0.88 % 58 1.27 % 43 1.13 % Unallocated 318 - - 0.00 % $ 10,238 0.56 % $ 12,874 0.71 % $ 15,727 0.63 % Liabilities: Allowance for credit losses on off-balance sheet credit exposures - 569 570 Total allowance for credit losses $ 10,238 $ 13,443 $ 16,297 (1) Included in other speciality lending are $ 34.7 million of SBA loans purchased for CRA purposes as of September 30,2020. These loans are classified as SBL in our loan tables . Management estimates the allowance using relevant available internal and external historical loan performance information, current economic conditions and reasonable and supportable forecasts. Historical credit loss experience provides the initial basis for the estimation of expected credit losses over the estimated life of the loans. The methodology used in the estimation of the allowance, which is performed at least quarterly, is designed to be responsive to changes in portfolio credit quality and the impact of current and future economic conditions on loan performance. The review of the appropriateness of the allowance is performed by the Chief Credit Officer and presented to the audit committee for their review. The allowance for credit losses includes reserves on loan pools with similar risk characteristics based on a lifetime loss-rate model, or vintage analysis, as described in the following paragraph. Loans that do not share risk characteristics are evaluated on an individual basis. If foreclosure is believed to be probable or repayment is expected from the sale of the collateral, a reserve for deficiency is established within the allowance. Expected credit losses for such collateral dependent loans are based on the difference between loan principal and the estimated fair value of the collateral, adjusted for disposition costs as appropriate. For purposes of determining the pool-basis reserve, the loans not assigned an individual reserve are segregated by product type, to recognize differing risk characteristics within portfolio segments. A historical loss rate is calculated for each product type, except SBLOC and IBLOC, based upon historical net charge-offs for that product. The loss rate is determined by classifying charge-off losses according to the year the related loans were originated, which is referred to as vintage analysis. The loss rate is then projected over the estimated remaining loan lives unique to each loan pool, to determine estimated lifetime losses. For SBLOC and IBLOC, since losses have not been incurred, probability of loss/loss given default considerations are utilized. Additionally, for all loan pools the Company adds to the allowance a component for each pool based upon qualitative factors such as the Company’s current loan performance statistics as determined by pool. These qualitative factors adjust for asset specific differences between historical loss experience and the current portfolio for each pool. The qualitative factors are intended to address factors that may not be reflected in historical loss rates and otherwise unaccounted for in the quantitative process. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, which are comprised of unfunded loan commitments and letters of credit. That reserve is recorded in other liabilities. In the twelve to eighteen months for which the Company believes it is able to develop reasonable and supportable forecasts, its model includes qualitative factors which may increase or decrease the allowance compared to historical loss rates. For average loan lives which extend beyond that period, expected losses provided for in the allowance are primarily based on applying historical loss rates over the estimated lives of the loans. Even though portions of the allowance may be allocated to loans that have been individually measured for credit deterioration, the entire allowance is available for any credit that, in management’s judgment, should be charged off. The Company ranks its qualitative factors in five levels: minimal risk, low, moderate, moderate-high and high. When the Company adopted CECL as of January 1, 2020, the management assumption was that some degree of economic slowdown should be considered over the next eighteen months. That belief reflected the length of the current economic expansion and the relatively high level of unsustainable deficit spending. Accordingly, certain of the Company’s qualitative factors were set at moderate as of January 1, 2020. Based on the uncertainty as to how the Coronavirus would impact the Company’s loan pools, the Company increased other qualitative factors to moderate in 2020. The economic qualitative factor is based on the estimated impact of economic conditions on the loan pools, as distinguished from the economic factors themselves. The Company’s charge-offs in its lines of business have been non-existent for SBLOC and IBLOC. The charge-off history for SBL and leasing do not correlate with economic conditions. Given the continuing economic weakness, the economic qualitative component for the non-guaranteed portion of SBA 7a loans, was increased to moderate high. While specific or groups of economic factors did not correlate with actual historical losses, multiple economic factors are considered. For the non-guaranteed portion of SBA loans and leasing, the Company’s loss forecasting analysis included a review of industry statistics. However, the Company’s own charge-off history was the primary quantitative element in the forecasts. Below are the portfolio segments used to pool loans with similar risk characteristics and align with our methodology for measuring expected credit losses. These pools have similar risk and collateral characteristics, and certain of these pools are broken down further in determining and applying the vintage loss estimates previously discussed. For instance, within the direct lease financing pool, government and public institution leases are considered separately. Additionally, t he Company evaluates its loans under an internal loan risk rating system as a means of identifying problem loans. The special mention classification indicates weaknesses that may, if not cured, threaten the borrower’s future repayment ability. A substandard classification reflects an existing weakness indicating the possible inadequacy of net worth and other repayment sources. These classifications are used both by regulators and peers, as they have been correlated with an increased probability of credit losses. A summary of our primary portfolio pools and loans accordingly classified, by year of origination, is as follows: hiltyhil As of September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated $ 208,252 $ - $ - $ - $ - $ - $ - $ 208,252 Pass 7,018 9,541 12,557 6,745 7,654 10,916 - 54,431 Special mention - - 1,132 - 520 716 - 2,368 Substandard - 43 20 693 1,324 1,662 - 3,742 Total SBL non-real estate 215,270 9,584 13,709 7,438 9,498 13,294 - 268,793 SBL commercial mortgage Non-rated 9,681 2,938 - - - - - 12,619 Pass 17,611 64,628 48,134 39,773 32,808 36,011 - 238,965 Special mention - - - - - 259 - 259 Substandard - - - - 76 7,441 - 7,517 Total SBL commercial mortgage 27,292 67,566 48,134 39,773 32,884 43,711 - 259,360 SBL construction Non-rated 206 - - - - - - 206 Pass 2,855 14,078 9,595 - - - - 26,528 Special mention - - - - - - - - Substandard - - - - 711 - - 711 Total SBL construction 3,061 14,078 9,595 - 711 - - 27,445 Direct lease financing Non-rated 11,315 3,065 2,437 1,256 587 18 - 18,678 Pass 204,670 98,781 59,875 28,921 11,990 2,086 - 406,323 Special mention - - - - 8 - - 8 Substandard 3,676 46 503 846 556 39 - 5,666 Total direct lease financing 219,661 101,892 62,815 31,023 13,141 2,143 - 430,675 SBLOC Non-rated - - - - - - 7,897 7,897 Pass - - - - - - 1,064,990 1,064,990 Special mention - - - - - - - - Substandard - - - - - - - - Total SBLOC - - - - - - 1,072,887 1,072,887 IBLOC Non-rated - - - - - - 97,017 97,017 Pass - - - - - - 262,340 262,340 Special mention - - - - - - - - Substandard - - - - - - - - Total IBLOC - - - - - - 359,357 359,357 Other specialty Non-rated 2,537 - - - - - - 2,537 Pass 116 3,484 6,368 7,042 7,083 12,817 - 36,910 Special mention - - - - - - - - Substandard - - - - - - - - Total other specialty 2,653 3,484 6,368 7,042 7,083 12,817 - 39,447 Advisor financing Non-rated 11,717 - - - - - - 11,717 Pass 15,269 - - - - - - 15,269 Special mention - - - - - - - - Substandard - - - - - - - - Total advisor financing 26,986 - - - - - - 26,986 Consumer Non-rated 414 - - 15 - 1,617 - 2,046 Pass - - - - - 1,456 - 1,456 Special mention - - - - - - - - Substandard - - - - - 308 - 308 Total consumer 414 - - 15 - 3,381 - 3,810 Total $ 495,337 $ 196,604 $ 140,621 $ 85,291 $ 63,317 $ 75,346 $ 1,432,244 $ 2,488,760 SBL. Substantially all small business loans consist of SBA loans. The Bank participates in loan programs established by the SBA, including the 7(a) Loan Guarantee Program and the 504 Fixed Asset Financing Program and a temporary program, the Paycheck Protection Program, or PPP, in 2020. The 7(a) Loan Guarantee Program is designed to help small business borrowers start or expand their businesses by providing partial guarantees of loans made by banks and non-bank lending institutions for specific business purposes, including long or short term working capital; funds for the purchase of equipment, machinery, supplies and materials; funds for the purchase, construction or renovation of real estate; and funds to acquire, operate or expand an existing business or refinance existing debt, all under conditions established by the SBA. The 504 Fixed Asset Financing Program includes the financing of real estate and commercial mortgages. In 2020, the Company also participated in PPP, which provides short-term loans to small businesses. PPP loans are fully guaranteed by the U.S. government. This program was a specific response to the Coronavirus, and these loans are expected to be reimbursed by the U.S. government within one year of their origination. The Company segments the SBL portfolio into four pools: non real estate, commercial mortgage and construction to capture the risk characteristics of each pool, and the PPP loans discussed above. In the table above, the PPP loans are included in non-rated SBL non real estate. The qualitative factors for SBL loans focus on pool loan performance, underlying collateral for collateral dependent loans and changes in economic conditions. Additionally, the construction segment adds a qualitative factor for general construction risk, such as construction delays. The U.S. government guaranteed portion of 7a loans and PPP loans, which are fully guaranteed, are not included in the risk pools because they have inherently different risk characteristics because of the U.S. government guarantee. Direct lease financing. The Company provides lease financing for commercial and government vehicle fleets and, to a lesser extent, provides lease financing for other equipment. Leases are either open-end or closed-end. An open-end lease is one in which, at the end of the lease term, the lessee must pay us the difference between the amount at which Company sells the leased asset and the stated termination value. Termination value is a contractual value agreed to by the parties at the inception of a lease as to the value of the leased asset at the end of the lease term. A closed-end lease is one for which no such payment is due on lease termination. In a closed-end lease, the risk that the amount received on a sale of the leased asset will be less than the residual value is assumed by us, as lessor. The qualitative factors for direct lease financing focus on underlying collateral for collateral dependent loans, portfolio loan performance, loan concentrations and changes in economic conditions. SBLOC. SBLOC loans are made to individuals, trusts and entities and are secured by a pledge of marketable securities maintained in one or more accounts with respect to which the Company obtains a securities account control agreement. The securities pledged may be either debt or equity securities or a combination thereof, but all such securities must be listed for trading on a national securities exchange or automated inter-dealer quotation system. SBLOCs are typically payable on demand. Maximum SBLOC line amounts are calculated by applying a standard ‘advance rate’ calculation against the eligible security type depending on asset class: typically up to 50 % for equity securities and mutual fund securities and 80 % for investment grade (Standard & Poor’s rating of BBB- or higher, or Moody’s rating of Baa3 or higher) municipal or corporate debt securities. Substantially all SBLOCs have full recourse to the borrower. The underlying securities collateral for SBLOC loans is monitored on a daily basis to confirm the composition of the client portfolio and its daily market value. The primary qualitative factor in the SBLOC analysis is the ratio of loans outstanding to market value. This factor has been maintained at low levels, which has remained appropriate as losses have not materialized despite the historic declines in the equity markets during 2020, during which there have been no losses. Significant losses have not been incurred since inception of this line of business. Additionally, the advance rates noted above were established to provide the Company with protection from declines in market conditions from the origination date of the lines of credit. IBLOC. IBLOC loans are collateralized by the cash surrender value of insurance policies. Should a loan default, the primary risks for IBLOCs are if the insurance company issuing the policy were to become insolvent, or if that company would fail to recognize the Bank’s assignment of policy proceeds. To mitigate these risks, insurance company ratings are periodically evaluated for compliance with Bank standards. Additionally, the Bank utilizes assignments of cash surrender value which legal counsel has concluded are enforceable. The qualitative factors for IBLOC primarily focus on the concentration risk with insurance companies. Advisor financing. In 2020, the Bank began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. The qualitative factors for advisor financing focus on changes in lending policies and procedures, portfolio performance and economic conditions. Other specialty lending and consumer loans. Other specialty lending loans and consumer loans are categories of loans which the Company generally no longer offers. The loans primarily are consumer loans and home equity loans. The qualitative factors for all other specialty lending and consumer loans focus on changes in the underlying collateral for collateral dependent loans, portfolio loan performance, loan concentrations and changes in economic conditions. Expected credit losses are estimated over the estimated remaining lives of loans. The estimate excludes |
Transactions With Affiliates
Transactions With Affiliates | 9 Months Ended |
Sep. 30, 2020 | |
Transactions With Affiliates [Abstract] | |
Transactions With Affiliates | N ote 7. Transactions with Affiliates The Bank did no t maintain any deposits for various affiliated companies as of September 30, 2020 and December 31, 2019, respectively. The Bank has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons. All loans were made on substantially the same terms, including interest rate and collateral, as those prevailing at the time for comparable loans with persons not related to the lender. At September 30, 2020, these loans were current as to principal and interest payments and did not involve more than normal risk of collectability. Loans to these related parties amounted to $ 3.1 million at September 30, 2020 and $ 2.3 million at December 31, 2019. The Bank periodically purchases securities under agreements to resell, and engaged in other securities transactions through J.V.B. Financial Group, LLC, or JVB, a broker dealer in which the Company’s Chairman is a registered representative and has a minority interest. The Company’s Chairman also serves as the President, a director and the Chief Investment Officer of Cohen & Company Financial Limited (formerly Euro Dekania Management Ltd.), a wholly-owned subsidiary of Cohen & Company Inc. (formerly Institutional Financial Markets Inc.), the parent company of JVB. In the first nine months of 2020, the Company did no t purchase any securities from JVB. In the first nine months of 2019, the Company purchased $ 1.4 million of government guaranteed SBA loans for Community Reinvestment Act purposes from JVB. Prices for these securities are verified to market rates and no separate commissions or fees are paid to that firm. The Company has historically purchased securities under agreements to resell through JVB primarily consisting of Government National Mortgage Association certificates which are full faith and credit obligations of the United States government issued at competitive rates. JVB was in compliance with all of the terms of the agreements at September 30, 2020 and had complied with all terms for all prior repurchase agreements. There were no repurchase agreements with JVB outstanding at September 30, 2020 and December 31, 2019, respectively. Mr. Hersh Kozlov, a director of the Company, is a partner at Duane Morris LLP, an international law firm. The Company paid Duane Morris LLP $ 1.4 million and $ 915,000 for legal services for the nine months ended September 30, 2020 and 2019, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements ASC 825, “Financial Instruments”, requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For the Company, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many such instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. Accordingly, estimated fair values are determined by the Company using the best available data and an estimation methodology it believes to be suitable for each category of financial instruments. Also, it is the Company’s general practice and intent to hold its financial instruments to maturity whether or not categorized as “available-for-sale” and not to engage in trading or sales activities although it has sold loans in the past and may do so in the future. For fair value disclosure purposes, the Company utilized certain value measurement criteria required under ASC 820, “Fair Value Measurements and Disclosures”, as discussed below. Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Also, there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. Cash and cash equivalents, which are comprised of cash and due from banks, the Company’s balance at the Federal Reserve Bank and securities purchased under agreements to resell, had recorded values of $ 301.0 million and $ 944.5 million as of September 30, 2020 and December 31, 2019, respectively, which approximated fair values. The estimated fair values of investment securities are based on quoted market prices, if available, or estimated using a methodology based on management’s inputs. Level 3 investment security fair values are based on the present valuing of cash flows, which discounts expected cash flows from principal and interest using yield to maturity, or yield to call as appropriate, at the measurement date. In the third quarter of 2020, there were no transfers between the three levels. In the third quarter of 2019, there were $ 100.7 million of transfers from level two to level three. The securities were transferred due to the difficulty in obtaining reliable pricing service information related to significant observable inputs. The securities transferred were those which were acquired in the commercial real estate securitizations. FHLB and Atlantic Central Bankers Bank stock is held as required by those respective institutions and is carried at cost. Federal law requires a member institution of the FHLB to hold stock according to predetermined formulas. Atlantic Central Bankers Bank requires its correspondent banking institutions to hold stock as a condition of membership. Commercial loans, at fair value are valued using a discounted cash flow analysis based upon pricing for similar loans where market indications of the sales price of such loans are not available. The net loan portfolio is valued using the present value of discounted cash flow where market prices were not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk. Accrued interest receivable has a carrying value that approximates fair value. On December 30, 2014, the Bank entered into an agreement for, and closed on, the sale of a portion of its discontinued commercial loan portfolio. The purchaser of the loan portfolio was a newly formed entity, 2014-1 LLC (Walnut Street). The price paid to the Bank for the loan portfolio which had a face value of approximately $ 267.6 million, was approximately $ 209.6 million, of which approximately $ 193.6 million was in the form of two notes issued by Walnut Street to the Bank; a senior note in the principal amount of approximately $ 178.2 million bearing interest at 1.5 % per year and maturing in December 2024 and a subordinate note in the principal amount of approximately $ 15.4 million, bearing interest at 10.0 % per year and maturing in December 2024. The balance of these notes comprises the balance of the investment in unconsolidated entity on the consolidated balance sheets, which is measured at fair value at each balance sheet date. The fair value was initially established by the sales price and the investment is marked quarterly to fair value, as determined using a discounted cash flow analysis. The change in value of investment in unconsolidated entity in the consolidated statements of operations reflects changes in estimated fair value. Interest paid to the bank on the notes is credited to principal. Assets held-for-sale from discontinued operations are recorded at the lower of cost basis or market value. For loans, market value was determined using the discounted cash flow approach which converts expected cash flows from the loan portfolio by unit of measurement to a present value estimate. Unit of measurement was determined by loan type and for significant loans on an individual loan basis. Loan fair values are based on “unobservable inputs” that are based on available information. Level 3 fair values are based on the present value of cash flows by unit of measurement. For commercial loans other than SBA loans, a market adjusted rate to discount expected cash flows from outstanding principal and interest to expected maturity at the measurement date was utilized. For SBA loans, market indications for similar loans were utilized on a pooled basis. For other real estate owned, market value is based upon appraisals of the underlying collateral by third-party appraisers, reduced by 7 % to 10 % for estimated selling costs. The estimated fair values of demand deposits (comprised of interest and non-interest bearing checking accounts, savings accounts, and certain types of money market accounts) are equal to the amount payable on demand at the reporting date (generally, their carrying amounts). The fair values of securities sold under agreements to repurchase and short-term borrowings are equal to their carrying amounts as they are short-term borrowings. Time deposits, when outstanding, and subordinated debentures have a fair value estimated using a discounted cash flow calculation that applies current interest rates to discount expected cash flows. The carrying amount of accrued interest payable approximates its fair value. Long term borrowings resulted from sold loans which did not qualify for true sale accounting. They are presented in the amount of the principal of such loans. The fair values of interest rate swaps, recorded as part of other assets, are determined using models that use readily observable market inputs and a market standard methodology applied to the contractual terms of the derivatives, including the period to maturity and interest rate indices. The fair value of commitments to extend credit is estimated based on the amount of unamortized deferred loan commitment fees. The fair value of letters of credit is based on the amount of unearned fees plus the estimated cost to terminate the letters of credit. Fair values of unrecognized financial instruments, including commitments to extend credit, and the fair value of letters of credit are considered immaterial. The following tables provide information regarding carrying amounts and estimated fair values (in thousands) as of the dates indicated: September 30, 2020 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,264,903 $ 1,264,903 $ - $ 1,080,555 $ 184,348 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,368 1,368 - - 1,368 Commercial loans, at fair value 1,849,947 1,849,947 - - 1,849,947 Loans, net of deferred loan fees and costs 2,488,760 2,486,275 - - 2,486,275 Investment in unconsolidated entity 31,783 31,783 - - 31,783 Assets held-for-sale from discontinued operations 122,253 122,253 - - 122,253 Interest rate swaps, liability 2,465 2,465 - 2,465 - Demand and interest checking 4,882,834 4,882,834 - 4,882,834 - Savings and money market 505,928 505,928 - 505,928 - Senior debt 98,222 101,910 - 101,910 - Subordinated debentures 13,401 8,235 - - 8,235 Securities sold under agreements to repurchase 42 42 42 - - December 31, 2019 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,320,692 $ 1,320,692 $ - $ 1,203,359 $ 117,333 Investment securities, held-to-maturity 84,387 83,002 - 75,850 7,152 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 5,342 5,342 - - 5,342 Commercial loans, at fair value 1,180,546 1,180,546 - - 1,180,546 Loans, net of deferred loan fees and costs 1,824,245 1,826,154 - - 1,826,154 Investment in unconsolidated entity 39,154 39,154 - - 39,154 Assets held-for-sale from discontinued operations 140,657 140,657 - - 140,657 Interest rate swaps, liability 232 232 - 232 - Demand and interest checking 4,402,740 4,402,740 - 4,402,740 - Savings and money market 174,290 174,290 - 174,290 - Time deposits 475,000 475,000 - - 475,000 Senior debt - - - - - Subordinated debentures 13,401 9,736 - - 9,736 Securities sold under agreements to repurchase 82 82 82 - - The assets and liabilities measured at fair value on a recurring basis, segregated by fair value hierarchy, are summarized below (in thousands) as of the dates indicated: Fair Value Measurements at Reporting Date Using Quoted prices in Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs September 30, 2020 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 48,377 $ - $ 48,377 $ - Asset-backed securities 238,179 - 238,179 - Obligations of states and political subdivisions 58,458 - 58,458 - Residential mortgage-backed securities 285,701 - 285,701 - Collateralized mortgage obligation securities 169,213 - 169,213 - Commercial mortgage-backed securities 383,281 - 280,627 102,654 Corporate debt securities 81,694 - - 81,694 Total investment securities available-for-sale 1,264,903 - 1,080,555 184,348 Commercial loans, at fair value 1,849,947 - - 1,849,947 Investment in unconsolidated entity 31,783 - - 31,783 Assets held-for-sale from discontinued operations 122,253 - - 122,253 Interest rate swaps, liability 2,465 - 2,465 - $ 3,266,421 $ - $ 1,078,090 $ 2,188,331 Fair Value Measurements at Reporting Date Using Quoted prices in Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 52,910 $ - $ 52,910 $ - Asset-backed securities 244,349 - 244,349 - Obligations of states and political subdivisions 65,568 - 65,568 - Residential mortgage-backed securities 336,596 - 336,596 - Collateralized mortgage obligation securities 222,727 - 222,727 - Commercial mortgage-backed securities 398,542 - 281,209 117,333 Total investment securities available-for-sale 1,320,692 - 1,203,359 117,333 Commercial loans, at fair value 1,180,546 - - 1,180,546 Investment in unconsolidated entity 39,154 - - 39,154 Assets held-for-sale from discontinued operations 140,657 - - 140,657 Interest rate swaps, liability 232 - 232 - $ 2,680,817 $ - $ 1,203,127 $ 1,477,690 In addition, ASC 820 establishes a common definition for fair value to be applied to assets and liabilities. It clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It also establishes a framework for measuring fair value and expands disclosures concerning fair value measurements. ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Level 1 valuation is based on quoted market prices for identical assets or liabilities to which the Company has access at the measurement date. Level 2 valuation is based on other observable inputs for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets in active or inactive markets, inputs other than quoted prices that are observable for the asset or liability such as yield curves, volatilities, prepayment speeds, credit risks, default rates, or inputs that are derived principally from, or corroborated through, observable market data by market-corroborated reports. Level 3 valuation is based on “unobservable inputs” which the Company believes is the best information available in the circumstances. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s Level 3 asset activity for the categories shown for year to date are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Available-for-sale Commercial loans securities at fair value September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Beginning balance $ 117,333 $ 24,390 $ 1,180,546 $ 688,471 Transfers into level 3 - 100,664 - - Transfers out of level 3 - - - - Reclass of held-to-maturity securities to available-for-sale 85,151 - - - Total gains or (losses) (realized/unrealized) Included in earnings - - ( 3,180 ) 25,986 Included in other comprehensive income 2,215 688 - - Purchases, issuances, sales and settlements Purchases - - - - Issuances - - 683,696 1,795,376 Sales - - - ( 1,329,287 ) Settlements ( 20,351 ) ( 8,409 ) ( 11,115 ) - Ending balance $ 184,348 $ 117,333 $ 1,849,947 $ 1,180,546 Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ - $ - $ ( 3,054 ) $ 963 The Company’s Level 3 asset activity for the categories shown for year to date are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Investment in Assets held-for-sale unconsolidated entity from discontinued operations September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Beginning balance $ 39,154 $ 59,273 $ 140,657 $ 197,831 Transfers into level 3 - - - - Transfers out of level 3 - - - - Total gains or (losses) (realized/unrealized) Included in earnings ( 45 ) - ( 2,332 ) ( 487 ) Included in other comprehensive income - - - - Purchases, issuances, sales, settlements and charge-offs Purchases - - - - Issuances - - 2,046 2,125 Sales - - ( 1,252 ) ( 7,136 ) Settlements ( 7,326 ) ( 20,119 ) ( 16,571 ) ( 49,021 ) Charge-offs - - ( 295 ) ( 2,655 ) Ending balance $ 31,783 $ 39,154 $ 122,253 $ 140,657 Total losses year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ ( 45 ) $ - $ ( 1,899 ) $ ( 487 ) Level 3 instruments only Weighted Fair value at Range at average at September 30, 2020 Valuation techniques Unobservable inputs September 30, 2020 September 30, 2020 Commercial mortgage backed investment $ 102,654 Discounted cash flow Discount rate 4.19 % - 8.29 % 4.72 % securities available-for-sale (a) Insurance liquidating trust preferred security, 6,156 Discounted cash flow Discount rate 7.47 % 7.47 % available-for-sale (b) Corporate debt securities (c) 75,538 Traders' pricing Price indications $ 100.55 - $ 101.00 $ 100.90 Federal Home Loan Bank and Atlantic 1,368 Cost N/A N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and costs (d) 2,486,275 Discounted cash flow Discount rate 1.00 % - 7.00 % 2.63 % Commercial - SBA (e) 250,958 Traders' pricing Offered quotes $ 100.00 - $ 117.5 $ 105.60 Commercial - fixed (f) 84,901 Discounted cash flow Discount rate 5.01 % - 7.30 % 5.90 % Commercial - floating (g) 1,514,088 Discounted cash flow Discount rate 3.00 % - 7.80 % 4.81 % Commercial loans, at fair value 1,849,947 Investment in unconsolidated entity (h) 31,783 Discounted cash flow Discount rate 3.93 % 3.93 % Default rate 1.00 % 1.00 % Assets held-for-sale from discontinued operations (i) 122,253 Discounted cash flow Discount rate, 2.73 % - 7.58 % 4.19 % Credit analysis Subordinated debentures (j) 8,235 Discounted cash flow Discount rate 7.47 % 7.47 % Level 3 instruments only Fair value at Range at December 31, 2019 Valuation techniques Unobservable inputs December 31, 2019 Commercial mortgage backed investment $ 117,333 Discounted cash flow Discount rate 4.05 % - 8.18 % securities available-for-sale Insurance liquidating trust preferred security, 7,152 Discounted cash flow Discount rate 8.01 % available-for-sale Federal Home Loan Bank and Atlantic 5,342 Cost N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and costs 1,826,154 Discounted cash flow Discount rate 3.11 % - 6.93 % Commercial - SBA 220,358 Traders' pricing Offered quotes $ 101.6 - $ 107.9 Commercial - fixed 88,986 Discounted cash flow Discount rate 4.33 % - 7.13 % Commercial - floating 871,202 Discounted cash flow Discount rate 4.51 % - 6.81 % Commercial loans, at fair value 1,180,546 Investment in unconsolidated entity 39,154 Discounted cash flow Discount rate 5.84 % Default rate 1.00 % Assets held-for-sale from discontinued operations 140,657 Discounted cash flow Discount rate, 3.49 % -7.58% Credit analysis Subordinated debentures 9,736 Discounted cash flow Discount rate 8.01 % The valuations for each of the instruments above, as of the balance sheet date, is subject to judgments, assumptions and uncertainties, changes in which could have a significant impact on such valuations. All weighted averages were calculated by using the discount rate for each individual security or loan weighted by its market value, except for SBA loans. For SBA loans, traders’ pricing indications for pools determined by date of loan origination were weighted. For commercial loans recorded at fair value, investment in unconsolidated entity and assets held-for-sale from discontinued operations, changes in fair value are reflected in the income statement. Changes in fair value of securities which are unrelated to credit are recorded through equity. Changes in the fair value of loans recorded at amortized cost which are unrelated to credit are a disclosure item, without impact on the financial statements. The notes below refer to the September 30, 2020 table. a) Commercial mortgage backed investment securities, consisting of Bank issued CRE securities, are valued using discounted cash flow analyses. The discount rates applied are based upon market observations for comparable securities and implicitly assume market averages for prepayments, defaults, and loss severities. Each of the securities has some credit enhancement, or protection from other tranches in the issue, which limit their valuation exposure to credit losses. Nonetheless, increases in expected default rates or loss severities on the loans underlying the issue could reduce their value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on these holdings in future periods and impact fair values. b) Insurance liquidating trust preferred is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. c) Corporate debt securities consist of three AAA rated privately placed debt structures backed by investment grade corporate debt each with over 50 % credit enhancement. Each of these securities has a coupon of 3 Month LIBOR + 3.00 %. Price indications are obtained from a broker/dealer with significant experience in trading and evaluating these securities. Changes in either investor yield requirements for relatively illiquid securities, or credit risk could affect the price indications. d) Loans, net of deferred fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. At September 30, 2020, the balance included $ 207.9 million of Paycheck Protection Program loans, which bear interest at 1 %, but also earn fees. e) Commercial-SBL (SBA Loans) are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon dealer pricing indications. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are also impacted by prepayment assumptions resulting from both voluntary payoffs and defaults. f) Commercial-fixed are fixed rate commercial mortgages originated for sale. Discount rates used in applying discounted cash flow analysis are determined by an independent valuation consultant based upon loan terms, the general level of interest rates and the quality of the credit. g) Commercial-floating are floating rate loans, the vast majority of which are secured by multi-family properties. These are bridge loans designed to provide owners time and funding for property improvements and are generally valued internally using discounted cash flow analysis. The discount rate for the vast majority of these loans, which are multi-family, was based upon current origination rates for similar loans. Certain non multi family loans are fair valued by a third party, based upon discounting at market rates for similar loans. h) Investment in unconsolidated entity is in non-accrual status, and changes in its value, determined by discounted cash flows, are recorded in the income statement under “C hange in value of investment in unconsolidated entity”. A constant default rate of 1 %, net of recoveries, on cash flowing loans was utilized. Changes in market interest rates, credit quality or payment experience could result in a change in the current valuation. i) Assets held-for-sale from discontinued operations are valued using discounted cash flow by an independent valuation consultant using loan performance, other credit characteristics and market interest rate comparisons. Changes in those factors could change the valuation. j) Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in the valuation. Assets measured at fair value on a nonrecurring basis, segregated by fair value hierarchy, during the periods shown are summarized below (in thousands): Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs (1) Description September 30, 2020 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 9,922 $ - $ - $ 9,922 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs (1) Description December 31, 2019 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 3,651 $ - $ - $ 3,651 Intangible assets 2,315 - - 2,315 $ 5,966 $ - $ - $ 5,966 (1) The method of valuation approach for the collateral dependent loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7 % to 10 % for estimated selling costs. Intangible assets are valued based upon internal analyses. At September 30, 2020, principal on collateral dependent loans and troubled debt restructurings, which is accounted for on the basis of the value of underlying collateral, is shown at estimated fair value of $ 9.9 million. To arrive at that fair value, related loan principal of $ 12.8 million was reduced by specific reserves of $ 2.9 million within the allowance for credit losses as of that date, representing the deficiency between principal and estimated collateral values, which were reduced by estimated costs to sell. When the deficiency is deemed uncollectible, it is charged off by reducing the specific reserve and decreasing principal. Included in the collateral dependent loans at September 30, 2020 were 11 troubled debt restructured loans with a balance of $ 1.7 million, which had specific reserves of $ 479,000 . Valuation techniques consistent with the market and/or cost approach were used to measure fair value and primarily included observable inputs for the individual collateral dependent loans being evaluated such as recent sales of similar assets or observable market data for operational or carrying costs. In cases where such inputs were unobservable, the loan balance is reflected within the Level 3 hierarchy. There was no other real estate owned in continuing operations at either September 30, 2020 or December 31, 2019. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivatives [Abstract] | |
Derivatives | Note 9. Derivatives The Company utilizes derivative instruments to assist in the management of interest rate sensitivity by modifying the repricing, maturity and option characteristics on commercial real estate loans held at fair value. These instruments are not accounted for as effective hedges. As of September 30, 2020, the Company had entered into six interest rate swap agreements with an aggregate notional amount of $ 37.8 million. These swap agreements provide for the Company to receive an adjustable rate of interest based upon the three-month LIBOR. The Company recorded a loss of $ 2.2 million for the nine months ended September 30, 2020 to recognize the fair value of the derivative instruments which is reported in net realized and unrealized gains (losses) on commercial loans originated for sale in the consolidated statements of operations. The amount payable by the Company under these swap agreements was $ 2.5 million at September 30, 2020, which is reported in other liabilities. The Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted cash collateral of $ 2.8 million as of September 30, 2020. The maturity dates, notional amounts, interest rates paid and received and fair value of the Company’s remaining interest rate swap agreements as of September 30, 2020 are summarized below (dollars in thousands): September 30, 2020 Maturity date Notional amount Interest rate paid Interest rate received Fair value August 4, 2021 10,300 1.12 % 0.25 % ( 78 ) December 23, 2025 6,800 2.16 % 0.22 % ( 636 ) December 24, 2025 8,200 2.17 % 0.22 % ( 775 ) January 28, 2026 3,000 1.87 % 0.25 % ( 239 ) July 20, 2026 6,300 1.44 % 0.27 % ( 377 ) December 12, 2026 3,200 2.26 % 0.25 % ( 360 ) Total $ 37,800 $ ( 2,465 ) |
Other Identifiable Intangible A
Other Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Other Identifiable Intangible Assets [Abstract] | |
Other Identifiable Intangible Assets | Note 10. Other Identifiable Intangible Assets On November 29, 2012 , the Company acquired certain software rights for approximately $ 1.8 million for use in managing prepaid cards in connection with an acquisition. The software is being amortized over eight years , ending in October 2020. Amortization expense is $ 217,000 per year ($ 16,000 over the remainder of the amortization period). The gross carrying amount of the software is $ 1.8 million, and as of September 30, 2020 and December 31, 2019, respectively, the accumulated amortization was $ 1.8 million and $ 1.7 million. In May 2016, the Company purchased approximately $ 60.0 million of lease receivables which resulted in a customer list intangible of $ 3.4 million that is being amortized over a 10 year period. A mortization expense is $ 340,000 per year ($ 1.7 million over the next five years). The gross carrying amount of the customer list intangible is $ 3.4 million, and as of September 30, 2020 and December 31, 2019, respectively, the accumulated amortization was $ 1.5 million and $ 1.2 million. In January 2020, the Company purchased McMahon Leasing and subsidiaries for approximately $ 4.6 million. In the acquisition the Company acquired $ 9.9 million of leases, $ 958,000 in automobile inventory and other assets. The excess of the consideration issued over the book value of the assets acquired was $ 1.5 million, which was allocated as follows. The fair value of the leases was $ 453,000 over their book value and is being amortized over the lives of the leases. A customer list intangible of $ 689,000 is being amortized over a 12 year period. Amortization expense is $ 57,000 per year ($ 285,000 over the next five years). The Company preliminarily allocated the $ 689,000 to the customer list and expects to complete its accounting for this business combination by the fourth quarter of 2020. Until completion, the above allocation of purchase price is considered preliminary. The gross carrying amount of the customer list intangible is $ 689,000 as of September 30, 2020 and the accumulated amortization was $ 43,000 . The remainder of the $ 1.5 million excess of consideration over book value was a trade name valuation of $ 135,000 and an inventory valuation adjustment of $ 100,000 . An outstanding loan by the Bank of approximately $ 4.0 million to the acquired entity, was eliminated as part of the transaction. Approximately $ 4.4 million of liabilities were assumed. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note 11. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases”. The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company adopted this guidance on its effective date using a modified retrospective transition approach, applying the new standard to all leases existing at the date of initial application, January 1, 2019. Consequently, financial information was not required to be updated and the disclosures required under the new standard were provided beginning January 1, 2019. The new standard provides a number of optional practical expedients in transition. The Company has elected the practical expedients option which does not require reassessment of its prior conclusions about lease identification, lease classification and initial direct costs. The Company has not elected the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to it. The effect of this adoption was the recognition at January 1, 2019 of a $ 16.4 million operating lease right-of-use (ROU) asset, which has been adjusted for previously recorded accrued rent of $ 1.7 million, and an $ 18.1 million operating lease obligation. No opening retained earnings adjustments are necessary under the modified retrospective transition approach. The adoption of this guidance did not have an impact on the consolidated results of operations of the Company. The ASU also includes disclosure requirements for lessors which encompass the Company’s direct financing leases. The first disclosure requirement is to discuss significant shifts, if any, in the balance of unguaranteed residual assets and deferred selling profit on direct financing leases. The Company’s direct financing lease portfolio consists primarily of vehicles which are sold at the end of lease terms. The Company does not hold title to the vehicles prior to inception of the lease and, thus, selling profit is not expected or deferred. However, sales of the vehicles may result in income when sales prices exceed residual values. This income is reported in the consolidated statements of operations under non-interest income. Since the majority of the portfolio is comprised of vehicle leases, sales prices may differ from residual values as a result of changes in the used vehicle market for both commercial vehicles, such as trucks, and passenger vehicles. Additionally, the Company is required to disclose the scheduled maturities of its direct financing leases reconciled to the total lease receivables in the consolidated balance sheet, which are as follows (in thousands): Remaining 2020 $ 41,520 2021 120,670 2022 87,382 2023 56,629 2024 27,709 2025 and thereafter 8,026 Total undiscounted cash flows 341,936 Residual value * 134,546 Difference between undiscounted cash flows and discounted cash flows ( 45,807 ) Present value of lease payments recorded as lease receivables $ 430,675 * Of the $ 134,546,000 , $ 30,050,000 is not guaranteed by the lessee or other guarantors. In June 2016, the FASB issued an update ASU 2016-13 – “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. The Update changes the accounting for credit losses on loans and debt securities. For loans and held-to-maturity debt securities, the Update requires a CECL approach to determine the allowance for credit losses. CECL requires loss estimates for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts. Also, the Update eliminates the existing guidance for purchased credit impaired loans, but requires an allowance for purchased financial assets with more than insignificant deterioration since origination. In addition, the Update modifies the OTTI impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on improvements in credit. The guidance was effective in the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. As a result of the Company’s adoption of the guidance in the first quarter of 2020, it recorded a $ 2.4 million charge to retained earnings and an $ 834,000 deferred tax asset, which were offset by $ 2.6 million in the allowance for credit losses and a $ 569,000 credit to other liabilities. The $ 569,000 reflected a reserve on unfunded commitments. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” which eliminates certain fair value disclosures, adds new disclosures and amends another disclosure applicable to the Company as follows. The amendment states that disclosure of measurement uncertainty of the fair values to changes in inputs will be required for the reporting date and not future dates. New fair value disclosures consist of disclosure of: a) total gains and losses in OCI from fair value changes in Level 3 assets and liabilities that are held on the balance sheet date; b) the range and weighted average of inputs and how the weighted average was calculated and c) if weighted average is not meaningful, other quantitative information that better reflects the distribution of inputs. ASU 2018-13 was implemented in first quarter 2020, and the disclosures discussed are included in the financial statements. There was no material impact on the financial statements. In March 2020, the FASB issued ASU 2020-04 which addressed optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, resulting from the phase-out of the LIBOR reference rate. The interest rates on certain of the Company’s securities, the majority of commercial loans held at fair value and its trust preferred securities outstanding (classified as subordinated debenture on the balance sheet), utilize LIBOR as a reference rate. To maximize management and accounting flexibility for holders of instruments using LIBOR as a benchmark, the guidance permitted a one-time transfer of such instruments from held-to-maturity to available-for-sale. The Company made such a transfer of four LIBOR-based securities, which comprised its held-to-maturity portfolio, in the first quarter of 2020. The Company is assessing the potential impact of the phase-out of LIBOR and related accounting guidance. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 12. Regulatory Matters It is the policy of the Federal Reserve that financial holding companies should pay cash dividends on common stock only out of income available over the past year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. The policy provides that a financial holding company should not maintain a level of cash dividends that undermines the financial holding company’s ability to serve as a source of strength to its banking subsidiaries . Various federal and state statutory provisions limit the amount of dividends that subsidiary banks can pay to their holding companies without regulatory approval. Under Delaware banking law, the Bank’s directors may declare dividends on common or preferred stock of so much of its net profits as they judge expedient, but the Bank must, before the declaration of a dividend on common stock from net profits, carry 50 % of its net profits from the preceding period for which the dividend is paid to its surplus fund until its surplus fund amounts to 50 % of its capital stock and thereafter must carry 25 % of its net profits for the preceding period for which the dividend is paid to its surplus fund until its surplus fund amounts to 100 % of its capital stock. In addition to these explicit limitations, federal and state regulatory agencies are authorized to prohibit a banking subsidiary or financial holding company from engaging in an unsafe or unsound practice. Depending upon the circumstances, the agencies could take the position that paying a dividend would constitute an unsafe or unsound banking practice. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Moreover, capital requirements may be modified based upon regulatory rules or by regulatory discretion at any time reflecting a variety of factors including deterioration in asset quality. |
Legal
Legal | 9 Months Ended |
Sep. 30, 2020 | |
Legal [Abstract] | |
Legal | Note 13. Legal On June 12, 2019, the Bank was served with a qui tam lawsuit filed in the Superior Court of the State of Delaware, New Castle County. The Delaware Department of Justice intervened in the litigation. The case is titled The State of Delaware, Plaintiff, Ex rel. Russell S. Rogers, Plaintiff-Relator, v. The Bancorp Bank, Interactive Communications International, Inc., and InComm Financial Services, Inc., Defendants. The lawsuit alleges that the defendants violated the Delaware False Claims Act by not paying balances on certain open-loop “Vanilla” prepaid cards to the State of Delaware as unclaimed property. The complaint seeks actual and treble damages, statutory penalties, and attorneys’ fees. The Bank has filed an answer denying the allegations and continues to vigorously defend the claims. The Bank and other defendants previously filed a motion to dismiss the action, but the motion was denied and the case is in preliminary stages of discovery. At this time, the Company is unable to determine whether the ultimate resolution of the matter will have a material adverse effect on the Company’s financial condition or operations. The Company has received and is responding to two non-public fact-finding inquiries from the SEC, which in each case is seeking to determine if violations of the federal securities laws have occurred. The Company refers to these inquiries collectively as the SEC matters. On October 9, 2019, the Company received a subpoena seeking records related generally to The Bancorp Bank’s debit card issuance activity and gross dollar volume data, among other things. The Company responded to the subpoena and subsequent subpoenas issued to the Company. Unrelated to the first inquiry, on April 10, 2020, the Company received a subpoena in connection with The Bancorp Bank’s CMBS business seeking records related to various offerings as well as CMBS securities held by the Bank. Since inception of these SEC matters to the present, the Company has been cooperating fully with the SEC. The SEC has not made any findings, or alleged any wrongdoings, with respect to the SEC matters. The costs related to responding to and cooperating with the SEC staff may be material, and could continue to be material at least through the completion of the SEC matters. On June 2, 2020, the Bank was served with a complaint filed in the Supreme Court of the State of New York, titled Cascade Funding, LP – Series 6, Plaintiff v. The Bancorp Bank, Defendant. The lawsuit arises from a Purchase and Sale Agreement between Cascade Funding, LP – Series 6 (“Cascade”) and the Bank, pursuant to which Cascade was to purchase certain mortgage loan assets from the Bank for securitization. Cascade improperly attempted to invoke a market disruption clause in the agreement to avoid the purchase. Cascade’s failure to close the transaction constituted a breach of the agreement and, accordingly, the Bank terminated the agreement, effective April 29, 2020. Pursuant to the agreement, the Bank retained Cascade’s deposit of approximately $ 12.5 million. The lawsuit asserts three causes of action: (i) breach of contract; (ii) injunction and specific performance; and (iii) declaratory judgment. Cascade seeks the return of its deposit plus interest and attorneys’ fees and costs. The Bank is vigorously defending this matter and the case is in preliminiary stages of discovery. Given the early stages of this matter, the Company is not yet able to determine whether the ultimate resolution of this matter will have a material adverse effect on the Company’s financial conditions or operations. In addition, the Company is a party to various routine legal proceedings arising out of the ordinary course of business. The Company believes that none of these actions, individually or in the aggregate, will have a material adverse effect on the Company’s financial condition or operations. |
Segment Financials
Segment Financials | 9 Months Ended |
Sep. 30, 2020 | |
Segment Financials [Abstract] | |
Segment Financials | Note 14. Segment Financials The Company performed a strategic evaluation of its businesses in the third quarter of 2014. As a result of the evaluation, the Company decided to discontinue its commercial lending operations, as described in Note 15, Discontinued Operations. The shift from a traditional bank balance sheet led the Company to evaluate its continuing operations. Based on the continuing operations of the Company, it was determined that there would be four segments of the business: specialty finance, payments, corporate and discontinued operations. The chief decision maker for these segments is the Chief Executive Officer. Specialty finance includes commercial loan sales and securitization, or the retention of such loans if not sold or securitized, SBA loans, direct lease financing and security-backed lines of credit, cash value insurance policy-backed lines of credit and deposits generated by those business lines. Payments include prepaid card accounts, card payments, ACH processing and deposits generated by those business lines. Corporate includes the Company’s investment portfolio, corporate overhead and non-allocated expenses. Investment income is reallocated to the payments segment. These operating segments reflect the way the Company views its current operations. The following tables provide segment information for the periods indicated: For the three months ended September 30, 2020 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 44,408 $ - $ 8,070 $ - $ 52,478 Interest allocation - 8,070 ( 8,070 ) - - Interest expense 232 1,234 1,016 - 2,482 Net interest income (loss) 44,176 6,836 ( 1,016 ) - 49,996 Provision for credit losses 1,297 - - - 1,297 Non-interest income 2,395 21,933 24 - 24,352 Non-interest expense 17,236 16,939 7,851 - 42,026 Income (loss) from continuing operations before taxes 28,038 11,830 ( 8,843 ) - 31,025 Income tax expense - - 7,894 - 7,894 Income (loss) from continuing operations 28,038 11,830 ( 16,737 ) - 23,131 Income from discontinued operations - - - 123 123 Net income (loss) $ 28,038 $ 11,830 $ ( 16,737 ) $ 123 $ 23,254 For the three months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 35,210 $ - $ 13,165 $ - $ 48,375 Interest allocation - 13,165 ( 13,165 ) - - Interest expense 353 7,236 3,226 - 10,815 Net interest income (loss) 34,857 5,929 ( 3,226 ) - 37,560 Provision for credit losses 650 - - - 650 Non-interest income 14,719 18,767 29 - 33,515 Non-interest expense 15,791 16,289 9,971 - 42,051 Income (loss) from continuing operations before taxes 33,135 8,407 ( 13,168 ) - 28,374 Income tax expense - - 7,975 - 7,975 Income (loss) from continuing operations 33,135 8,407 ( 21,143 ) - 20,399 Income from discontinued operations - - - 26 26 Net income (loss) $ 33,135 $ 8,407 $ ( 21,143 ) $ 26 $ 20,425 For the nine months ended September 30, 2020 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 125,254 $ - $ 30,589 $ - $ 155,843 Interest allocation - 30,589 ( 30,589 ) - - Interest expense 791 7,381 4,518 - 12,690 Net interest income (loss) 124,463 23,208 ( 4,518 ) - 143,153 Provision for credit losses 5,798 - - - 5,798 Non-interest income ( 1,622 ) 62,770 169 - 61,317 Non-interest expense 51,742 51,345 19,977 - 123,064 Income (loss) from continuing operations before taxes 65,301 34,633 ( 24,326 ) - 75,608 Income tax expense - - 19,033 - 19,033 Income (loss) from continuing operations 65,301 34,633 ( 43,359 ) - 56,575 Loss from discontinued operations - - - ( 662 ) ( 662 ) Net income (loss) $ 65,301 $ 34,633 $ ( 43,359 ) $ ( 662 ) $ 55,913 For the nine months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 95,573 $ - $ 40,460 $ - $ 136,033 Interest allocation - 40,460 ( 40,460 ) - - Interest expense 1,087 23,947 4,890 - 29,924 Net interest income (loss) 94,486 16,513 ( 4,890 ) - 106,109 Provision for credit losses 2,950 - - - 2,950 Non-interest income 27,794 55,733 102 - 83,629 Non-interest expense 47,196 50,211 23,392 - 120,799 Income (loss) from continuing operations before taxes 72,134 22,035 ( 28,180 ) - 65,989 Income tax expense - - 17,585 - 17,585 Income (loss) from continuing operations 72,134 22,035 ( 45,765 ) - 48,404 Income from discontinued operations - - - 1,301 1,301 Net income (loss) $ 72,134 $ 22,035 $ ( 45,765 ) $ 1,301 $ 49,705 September 30, 2020 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 4,378,815 $ 37,547 $ 1,630,687 $ 122,253 $ 6,169,302 Total liabilities $ 286,610 $ 4,752,944 $ 571,289 $ - $ 5,610,843 December 31, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 3,008,304 $ 57,746 $ 2,450,256 $ 140,657 $ 5,656,963 Total liabilities $ 247,485 $ 4,030,921 $ 894,060 $ - $ 5,172,466 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 15. Discontinued Operations The Company performed a strategic evaluation of its businesses in the third quarter of 2014 and decided to discontinue its Philadelphia commercial lending operations to focus on its specialty finance lending. The loans which constitute the commercial loan portfolio are in the process of disposition including transfers to other financial institutions. As such, financial results of the commercial lending operations are presented as separate from continuing operations on the consolidated statements of operations and assets of the commercial lending operations to be disposed are presented as assets held-for-sale on the consolidated balance sheets. The following table presents financial results of the commercial lending business included in net income (loss) from discontinued operations for the three and nine months ended September 30, 2020 and 2019 (in thousands). For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Interest income $ 890 $ 1,609 $ 3,259 $ 5,293 Interest expense - - - - Net interest income 890 1,609 3,259 5,293 Non-interest income 4 9 18 33 Non-interest expense 2,565 1,467 5,997 3,451 Income (loss) before taxes ( 1,671 ) 151 ( 2,720 ) 1,875 Income tax expense (benefit) ( 1,794 ) 125 ( 2,058 ) 574 Net income (loss) $ 123 $ 26 $ ( 662 ) $ 1,301 September 30, December 31, 2020 2019 Loans, net $ 98,388 $ 115,879 Other real estate owned 23,865 24,778 Total assets $ 122,253 $ 140,657 Non-interest expense for the three and nine months ended September 30, 2020 reflected $ 1.4 million and $ 2.3 million, respectively, of fair value and realized losses on loans. Discontinued operations loans are recorded at the lower of their cost or fair value. Fair value is determined using a discontinued cash flow analysis where projections of cash flows are developed in consideration of internal loan review analysis and default/prepayment assumptions for smaller pools of loans. These credit and collateral related assumptions are subject to uncertainty. The results of discontinued operations do not include any future severance payments. Of the approximately $ 1.1 billion in book value of loans in that portfolio as of the September 30, 2014 date of discontinuance of operations, $ 122.3 million of loans and other real estate owned remain in assets held-for- sale on the September 30, 2020 consolidated balance sheet as a result of loan sales, principal paydowns and fair value charges as of September 30, 2020. The Company is attempting to dispose of those remaining loans and other real estate owned. Additionally, the consolidated balance sheet reflects $ 31.8 million in investment in unconsolidated entity, which is comprised of notes owned by the Company as a result of the sale of certain discontinued loans to Walnut Street, see Note 8, Fair Value Measurements. The investment in Walnut Street is classified as continuing operations in the accompanying consolidated financial statements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The Company evaluated its September 30, 2020 consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. On November 5, 2020, the Company announced a common stock repurchase program. Repurchased shares may be reissued for various corporate purposes. The Company currently plans to spend up to $ 10.0 million per quarter for such repurchases depending on the share price, securities laws and stock exchange rules which regulate such repurchases. This plan may be modified or terminated at any time. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation The financial statements of the Company, as of September 30, 2020 and for the three and nine month periods ended September 30, 2020 and 2019, are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. However, in the opinion of management, these interim financial statements include all necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, or the 2019 Form 10-K. The results of operations for the nine month period ended September 30, 2020 may not necessarily be indicative of the results of operations for the full year ending December 31, 2020. |
Revenue Recognition | Revenue Recognition The Company’s revenue streams that are in the scope of Accounting Standards Codification (ASC) 606 include prepaid and debit card, card payment, ACH and deposit processing and other fees. The Company recognizes revenue when the performance obligations related to the transfer of goods or services under the terms of a contract are satisfied. Some obligations are satisfied at a point in time while others are satisfied over a period of time. Revenue is recognized as the amount of consideration to which the Company expects to be entitled, in exchange for transferring goods or services to a customer. When consideration includes a variable component, the amount of consideration attributable to variability is included in the transaction price only to the extent it is probable that significant revenue recognized will not be reversed when uncertainty associated with the variable consideration is subsequently resolved. The Company’s contracts generally do not contain terms that require significant judgment to determine the variability impacting the transaction price. A performance obligation is deemed satisfied when the control over goods or services is transferred to the customer. Control is transferred to a customer either at a point in time or over time. To determine when control is transferred at a point in time, the Company considers indicators, including but not limited to the right to payment for the asset, transfer of significant risk and rewards of ownership of the asset and acceptance of the asset by the customer. When control is transferred over a period of time, for different performance obligations, either the input or output method is used to measure progress for the transfer. The measure of progress used to assess completion of the performance obligation varies between performance obligations and may be based on time throughout the period of service or on the value of goods and services transferred to the customer. As each distinct service or activity is performed, the Company transfers control to the customer based on the services performed as the customer simultaneously receives the benefits of those services. This timing of revenue recognition aligns with the resolution of any uncertainty related to variable consideration. Costs incurred to obtain a revenue producing contract generally are expensed when incurred, as a practical expedient, because the contractual period for the majority of contracts is one year or less. The Company’s revenue streams that are in the scope of Accounting Standards Codification (ASC) 606 include prepaid and debit card, card payment, ACH and deposit processing and other fees. The fees on those revenue streams are generally assessed and collected as the transaction occurs, or on a monthly or quarterly basis. The Company has completed its review of the contracts and other agreements that are within the scope of revenue guidance and did not identify any material changes to the timing or amount of revenue recognition. The Company’s accounting policies did not change materially since the principles of revenue recognition in Accounting Standards Update ( ASU) 2014-09, “Revenue from Contracts with Customers” are largely consistent with previous practices already implemented and applied by the Company. The vast majority of the Company’s services related to its revenues are performed, earned and recognized monthly. Prepaid and debit card fees primarily include fees for services related to reconciliation, fraud detection, regulatory compliance and other services which are performed and earned daily or monthly, and are also billed and collected on a monthly basis. Accordingly, there is no significant component of the services the Company performs or related revenues which are deferred. The Company earns transactional and/or interchange fees on prepaid card accounts when transactions occur, and revenue is billed and collected monthly or quarterly. Certain volume or transaction based interchange expenses paid to payment networks such as Visa, reduce revenue which is presented net on the income statement. Card payment and ACH processing fees include transaction fees earned for processing merchant transactions. Revenue is recognized when a cardholder’s transaction is approved and settled, or monthly. ACH processing fees are earned on a per item basis, as the transactions are processed for third-party clients, and are also billed and collected monthly. Service charges on deposit accounts include fees and other charges the Company receives to provide various services, including, but not limited to, account maintenance, check writing, wire transfer and other services normally associated with deposit accounts. Revenue for these services is recognized monthly as the services are performed. The Company’s customer contracts do not typically have performance obligations, and fees are collected and earned when the transaction occurs. The Company may, from time to time, waive certain fees for customers, but generally does not reduce the transaction price to reflect variability for future reversals due to the insignificance of the amounts. Waiver of fees reduces the revenue in the period the waiver is granted to the customer. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating lease right-of-use (ROU) assets and operating lease liabilities are included in our consolidated financial statements. ROU assets represent our right-of-use of an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments pursuant to our leases. The ROU assets and liabilities are recognized at commencement of the lease based on the present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its incremental borrowing rate. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. |
Current Expected Credit Losses | Current Expected Credit Losses For loans held for investment at amortized cost, the Company, in 2020, began to utilize a current expected credit loss, or CECL, approach to determine the allowance for credit losses. CECL requires loss estimates for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts. |
Risks And Uncertainties | Risks and Uncertainties ASC 275 addresses disclosures when it is reasonably possible that estimates in the financial statements may change in future periods. The ultimate severity of the economic impact of Coronavirus is not known, but its negative impact may exceed the effect of current or future government mitigation efforts, which could impact loan performance. Additionally, under regulatory guidance loans may be granted six month payment deferrals without classification as non-accrual, delinquency or troubled debt restructuring, barring other information which would require such classification. The Company has followed the guidance of regulators and is granting such deferrals, but the duration of the crisis is uncertain and government actions after that period are unknown. Accordingly, our future estimates for the provision for credit losses could increase while the estimated values of loans accounted for on the basis of fair value could decrease, either of which would reduce our income. |
Senior Debt | Senior Debt On August 13, 2020, the Company issued $ 100 million of senior debt with a maturity date of August 15, 2025 , and a 4.75 % interest rate, with interest paid semi-annually on March 15 and September 15. The Senior Notes are the Company’s direct, unsecured and unsubordinated obligations and rank equal in priority with all of our existing and future unsecured and unsubordinated indebtedness and senior in right of payment to all of our existing and future subordinated indebtedness. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Summary Of Status Of Company's Equity Compensations Plans | Weighted average remaining Weighted average contractual Aggregate Shares exercise price term (years) intrinsic value Outstanding at January 1, 2020 1,311,604 $ 8.24 3.11 $ 6,203,523 Granted 300,000 6.87 3.71 531,000 Exercised ( 74,000 ) 8.38 - 310,280 Expired ( 147,000 ) 7.81 - - Forfeited ( 8,000 ) 9.39 - - Outstanding at September 30, 2020 1,382,604 $ 7.97 4.31 $ 1,372,257 Exercisable at September 30, 2020 1,033,776 $ 8.27 2.58 $ 837,839 |
Summary Of Restricted Stock Units | Weighted average Average remaining grant date contractual Shares fair value term (years) Outstanding at January 1, 2020 1,253,927 $ 8.87 1.64 Granted 1,531,702 6.87 2.23 Vested ( 576,356 ) 8.64 - Forfeited ( 12,971 ) 9.10 - Outstanding at September 30, 2020 2,196,302 $ 7.53 1.90 |
Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model | September 30, 2020 2019 Risk-free interest rate 0.68 % 2.63 % Expected dividend yield - - Expected volatility 45.20 % 41.83 % Expected lives (years) 1.0 - 6.3 1.0 - 6.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | For the three months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 23,131 57,588,168 $ 0.40 Effect of dilutive securities Common stock options and restricted stock units - 883,024 - Diluted earnings per share Net earnings available to common shareholders $ 23,131 58,471,192 $ 0.40 For the three months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 123 57,588,168 $ - Effect of dilutive securities Common stock options and restricted stock units - 883,024 - Diluted earnings per share Net earnings available to common shareholders $ 123 58,471,192 $ - For the three months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 23,254 57,588,168 $ 0.40 Effect of dilutive securities Common stock options and restricted stock units - 883,024 - Diluted earnings per share Net earnings available to common shareholders $ 23,254 58,471,192 $ 0.40 Stock options for 1,056,604 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2020, and included in the dilutive earnings per share computation. Stock options for 326,000 were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 56,575 57,433,477 $ 0.98 Effect of dilutive securities Common stock options and restricted stock units - 618,356 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 56,575 58,051,833 $ 0.97 For the nine months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic loss per share from discontinued operations Net loss available to common shareholders $ ( 662 ) 57,433,477 $ ( 0.01 ) Effect of dilutive securities Common stock options and restricted stock units - 618,356 - Diluted loss per share Net loss available to common shareholders $ ( 662 ) 58,051,833 $ ( 0.01 ) For the nine months ended September 30, 2020 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 55,913 57,433,477 $ 0.97 Effect of dilutive securities Common stock options and restricted stock units - 618,356 ( 0.01 ) Diluted earnings per share Net earnings available to common shareholders $ 55,913 58,051,833 $ 0.96 Stock options for 1,056,604 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2020, and included in the dilutive earnings per share computation. Stock options for 326,000 were anti-dilutive and not included in the earnings per share calculation. For the three months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 20,399 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,399 57,413,297 $ 0.36 For the three months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 26 56,907,815 $ - Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 26 57,413,297 $ - For the three months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 20,425 56,907,815 $ 0.36 Effect of dilutive securities Common stock options and restricted stock units - 505,482 - Diluted earnings per share Net earnings available to common shareholders $ 20,425 57,413,297 $ 0.36 Stock options for 984,104 shares, exercisable at prices between $ 6.75 and $ 8.57 per share, were outstanding at September 30, 2019, and included in the dilutive earnings per shares computation shares because the exercise price per share was less than the average market price. Stock options for 357,500 were anti-dilutive and not included in the earnings per share calculation. For the nine months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from continuing operations Net earnings available to common shareholders $ 48,404 56,712,084 $ 0.85 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 48,404 57,152,371 $ 0.85 For the nine months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share from discontinued operations Net earnings available to common shareholders $ 1,301 56,712,084 $ 0.02 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 1,301 57,152,371 $ 0.02 For the nine months ended September 30, 2019 Income Shares Per share (numerator) (denominator) amount (dollars in thousands except share and per share data) Basic earnings per share Net earnings available to common shareholders $ 49,705 56,712,084 $ 0.87 Effect of dilutive securities Common stock options and restricted stock units - 440,287 - Diluted earnings per share Net earnings available to common shareholders $ 49,705 57,152,371 $ 0.87 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investment Securities [Abstract] | |
Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity | Available-for-sale September 30, 2020 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 46,040 $ 2,477 $ ( 140 ) $ 48,377 Asset-backed securities * 239,961 28 ( 1,810 ) 238,179 Tax-exempt obligations of states and political subdivisions 4,041 255 - 4,296 Taxable obligations of states and political subdivisions 49,847 4,315 - 54,162 Residential mortgage-backed securities 275,764 10,043 ( 106 ) 285,701 Collateralized mortgage obligation securities 165,147 4,103 ( 37 ) 169,213 Commercial mortgage-backed securities 370,673 17,648 ( 5,040 ) 383,281 Corporate debt securities 85,074 464 ( 3,844 ) 81,694 $ 1,236,547 $ 39,333 $ ( 10,977 ) $ 1,264,903 September 30, 2020 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 29,238 $ 7 $ ( 365 ) $ 28,880 Collateralized loan obligation securities 210,723 21 ( 1,445 ) 209,299 $ 239,961 $ 28 $ ( 1,810 ) $ 238,179 Available-for-sale December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value U.S. Government agency securities $ 52,415 $ 672 $ ( 177 ) $ 52,910 Asset-backed securities * 244,751 132 ( 534 ) 244,349 Tax-exempt obligations of states and political subdivisions 5,174 144 - 5,318 Taxable obligations of states and political subdivisions 58,258 1,992 - 60,250 Residential mortgage-backed securities 335,068 2,629 ( 1,101 ) 336,596 Collateralized mortgage obligation securities 221,109 1,826 ( 208 ) 222,727 Commercial mortgage-backed securities 394,852 3,836 ( 146 ) 398,542 $ 1,311,627 $ 11,231 $ ( 2,166 ) $ 1,320,692 December 31, 2019 Gross Gross Amortized unrealized unrealized Fair * Asset-backed securities as shown above cost gains losses value Federally insured student loan securities $ 33,852 $ 10 $ ( 323 ) $ 33,539 Collateralized loan obligation securities 210,899 122 ( 211 ) 210,810 $ 244,751 $ 132 $ ( 534 ) $ 244,349 Held-to-maturity December 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value Other debt securities - single issuers $ 9,219 $ - $ ( 2,067 ) $ 7,152 Other debt securities - pooled 75,168 682 - 75,850 $ 84,387 $ 682 $ ( 2,067 ) $ 83,002 |
Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity | Available-for-sale Amortized Fair cost value Due before one year $ 2,186 $ 2,214 Due after one year through five years 153,599 162,951 Due after five years through ten years 224,146 231,236 Due after ten years 856,616 868,502 $ 1,236,547 $ 1,264,903 |
Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position | Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 4 $ 538 $ ( 2 ) $ 6,043 $ ( 138 ) $ 6,581 $ ( 140 ) Asset-backed securities 34 168,437 ( 1,293 ) 55,437 ( 517 ) 223,874 ( 1,810 ) Residential mortgage-backed securities 11 5,101 ( 42 ) 8,042 ( 64 ) 13,143 ( 106 ) Collateralized mortgage obligation securities 8 7,225 ( 36 ) 3,626 ( 1 ) 10,851 ( 37 ) Commercial mortgage-backed securities 4 61,677 ( 5,023 ) 10,021 ( 17 ) 71,698 ( 5,040 ) Corporate debt securities 1 - - 6,157 ( 3,844 ) 6,157 ( 3,844 ) Total temporarily impaired investment securities 62 $ 242,978 $ ( 6,396 ) $ 89,326 $ ( 4,581 ) $ 332,304 $ ( 10,977 ) The table below indicates the length of time individual securities had been in a continuous unrealized loss position at December 31, 2019 (dollars in thousands): Available-for-sale Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities U.S. Government agency securities 5 $ 12,214 $ ( 44 ) $ 3,986 $ ( 133 ) $ 16,200 $ ( 177 ) Asset-backed securities 28 115,909 ( 275 ) 56,427 ( 260 ) 172,336 ( 535 ) Residential mortgage-backed securities 64 58,682 ( 114 ) 73,311 ( 987 ) 131,993 ( 1,101 ) Collateralized mortgage obligation securities 22 37,387 ( 85 ) 18,136 ( 123 ) 55,523 ( 208 ) Commercial mortgage-backed securities 4 35,095 ( 129 ) 3,162 ( 16 ) 38,257 ( 145 ) Total temporarily impaired investment securities 123 $ 259,287 $ ( 647 ) $ 155,022 $ ( 1,519 ) $ 414,309 $ ( 2,166 ) Held-to-maturity Less than 12 months 12 months or longer Total Number of securities Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Description of Securities Corporate and other debt securities: Single issuers 1 $ - $ - $ 7,152 $ ( 2,067 ) $ 7,152 $ ( 2,067 ) Total temporarily impaired investment securities 1 $ - $ - $ 7,152 $ ( 2,067 ) $ 7,152 $ ( 2,067 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans [Abstract] | |
Major Classifications Of Loans | September 30, December 31, 2020 2019 SBL non-real estate $ 293,488 $ 84,579 SBL commercial mortgage 270,264 218,110 SBL construction 27,169 45,310 Small business loans * 590,921 347,999 Direct lease financing 430,675 434,460 SBLOC / IBLOC ** 1,428,253 1,024,420 Advisor financing *** 26,600 - Other specialty lending 2,194 3,055 Other consumer loans **** 3,809 4,554 2,482,452 1,814,488 Unamortized loan fees and costs 6,308 9,757 Total loans, net of unamortized loan fees and costs $ 2,488,760 $ 1,824,245 September 30, December 31, 2020 2019 SBL loans, net of (deferred fees) and costs of $( 607 ) and $ 4,215 for September 30, 2020 and December 31, 2019, respectively $ 590,314 $ 352,214 SBL loans included in commercial loans at fair value 250,958 220,358 Total small business loans $ 841,272 $ 572,572 * The preceding table shows small business loans, or SBL, and SBL held at fair value at the dates indicated (in thousands). Included in SBL non-real estate loans are $ 207.9 million of Paycheck Protection Program loans with estimated lives of less than one year. While the majority of SBL are comprised of SBA loans, SBL also includes $ 17.8 million of non-SBA loans as of September 30, 2020 and $ 17.0 million at December 31, 2019. ** Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At September 30, 2020 and December 31, 2019, respectively, IBLOC loans amounted to $ 359.4 million and $ 144.6 million. *** In 2020, the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. **** Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $ 151,000 and $ 882,000 at September 30, 2020 and December 31, 2019, respectively. |
Impaired Loans | September 30, 2020 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 445 $ 3,525 $ - $ 365 $ 2 SBL commercial mortgage 2,036 2,036 - 1,056 - SBL construction - - - - - Direct lease financing 260 260 - 4,116 - Consumer - home equity 567 567 - 554 8 With an allowance recorded SBL non-real estate 2,775 2,775 ( 1,818 ) 3,310 12 SBL commercial mortgage 5,481 5,481 ( 1,010 ) 2,098 - SBL construction 711 711 ( 26 ) 711 - Direct lease financing 544 544 ( 43 ) 782 - Consumer - home equity - - - 30 - Total SBL non-real estate 3,220 6,300 ( 1,818 ) 3,675 14 SBL commercial mortgage 7,517 7,517 ( 1,010 ) 3,154 - SBL construction 711 711 ( 26 ) 711 - Direct lease financing 804 804 ( 43 ) 4,898 - Consumer - home equity 567 567 - 584 8 $ 12,819 $ 15,899 $ ( 2,897 ) $ 13,022 $ 22 December 31, 2019 Recorded investment Unpaid principal balance Related allowance Average recorded investment Interest income recognized Without an allowance recorded SBL non-real estate $ 335 $ 2,717 $ - $ 277 $ 5 SBL commercial mortgage 76 76 - 15 - SBL construction - - - 284 - Direct lease financing 286 286 - 362 11 Consumer - home equity 489 489 - 1,161 9 With an allowance recorded SBL non-real estate 3,804 4,371 ( 2,961 ) 3,925 30 SBL commercial mortgage 971 971 ( 136 ) 561 - SBL construction 711 711 ( 36 ) 284 - Direct lease financing - - - 244 - Consumer - home equity 121 121 ( 9 ) 344 - Total SBL non-real estate 4,139 7,088 ( 2,961 ) 4,202 35 SBL commercial mortgage 1,047 1,047 ( 136 ) 576 - SBL construction 711 711 ( 36 ) 568 - Direct lease financing 286 286 - 606 11 Consumer - home equity 610 610 ( 9 ) 1,505 9 $ 6,793 $ 9,742 $ ( 3,142 ) $ 7,457 $ 55 |
Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses | September 30, 2020 December 31, 2019 Non-accrual loans with a related ACL * Non-accrual loans without a related ACL * Total non-accrual loans Total non-accrual loans SBL non-real estate $ 2,541 $ 394 $ 2,935 $ 3,693 SBL commercial mortgage 5,481 2,036 7,517 1,047 SBL construction 711 - 711 711 Direct leasing 544 260 804 - Consumer - 308 308 345 $ 9,277 $ 2,998 $ 12,275 $ 5,796 * Allowance for credit losses |
Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category | September 30, December 31, 2020 2019 Non-accrual loans SBL non-real estate $ 2,935 $ 3,693 SBL commercial mortgage 7,517 1,047 SBL construction 711 711 Direct leasing 804 - Consumer 308 345 Total non-accrual loans 12,275 5,796 Loans past due 90 days or more and still accruing 24 3,264 Total non-performing loans 12,299 9,060 Other real estate owned - - Total non-performing assets $ 12,299 $ 9,060 |
Loans Modified And Considered Troubled Debt Restructurings | September 30, 2020 December 31, 2019 Number Pre-modification recorded investment Post-modification recorded investment Number Pre-modification recorded investment Post-modification recorded investment SBL non-real estate 8 $ 927 $ 927 8 $ 1,309 $ 1,309 Direct lease financing 1 260 260 1 286 286 Consumer 2 474 474 2 489 489 Total 11 $ 1,661 $ 1,661 11 $ 2,084 $ 2,084 |
Loans Modified As Troubled Debt Restructurings | September 30, 2020 December 31, 2019 Adjusted interest rate Extended maturity Combined rate and maturity Adjusted interest rate Extended maturity Combined rate and maturity SBL non-real estate $ - $ 23 $ 904 $ - $ 51 $ 1,258 Direct lease financing - 260 - - 286 - Consumer - - 474 - - 489 Total $ - $ 283 $ 1,378 $ - $ 337 $ 1,747 |
Effect Of The Adoption Of CECL | December 31, 2019 January 1, 2020 September 30, 2020 Incurred loss method CECL (day 1 adoption) CECL Amount % of Segment Amount % of Segment Amount % of Segment Allowance for credit losses on loans and leases SBL non real estate $ 4,914 8.33 % $ 4,766 8.08 % $ 4,801 1.64 % SBL commercial mortgage 1,458 0.71 % 2,009 0.98 % 3,552 1.31 % SBL construction 432 0.95 % 571 1.26 % 423 1.56 % Direct lease financing 2,426 0.56 % 4,788 1.10 % 5,847 1.35 % SBLOC 440 0.05 % 440 0.05 % 534 0.00 % IBLOC 113 0.08 % 72 0.05 % 180 0.00 % Advisor financing - 0.00 % - 0.00 % 199 0.75 % Other specialty lending (1) 97 0.39 % 170 0.40 % 148 6.75 % Consumer - other 40 0.88 % 58 1.27 % 43 1.13 % Unallocated 318 - - 0.00 % $ 10,238 0.56 % $ 12,874 0.71 % $ 15,727 0.63 % Liabilities: Allowance for credit losses on off-balance sheet credit exposures - 569 570 Total allowance for credit losses $ 10,238 $ 13,443 $ 16,297 (1) Included in other speciality lending are $ 34.7 million of SBA loans purchased for CRA purposes as of September 30,2020. These loans are classified as SBL in our loan tables . |
Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade | As of September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving loans at amortized cost Total SBL non real estate Non-rated $ 208,252 $ - $ - $ - $ - $ - $ - $ 208,252 Pass 7,018 9,541 12,557 6,745 7,654 10,916 - 54,431 Special mention - - 1,132 - 520 716 - 2,368 Substandard - 43 20 693 1,324 1,662 - 3,742 Total SBL non-real estate 215,270 9,584 13,709 7,438 9,498 13,294 - 268,793 SBL commercial mortgage Non-rated 9,681 2,938 - - - - - 12,619 Pass 17,611 64,628 48,134 39,773 32,808 36,011 - 238,965 Special mention - - - - - 259 - 259 Substandard - - - - 76 7,441 - 7,517 Total SBL commercial mortgage 27,292 67,566 48,134 39,773 32,884 43,711 - 259,360 SBL construction Non-rated 206 - - - - - - 206 Pass 2,855 14,078 9,595 - - - - 26,528 Special mention - - - - - - - - Substandard - - - - 711 - - 711 Total SBL construction 3,061 14,078 9,595 - 711 - - 27,445 Direct lease financing Non-rated 11,315 3,065 2,437 1,256 587 18 - 18,678 Pass 204,670 98,781 59,875 28,921 11,990 2,086 - 406,323 Special mention - - - - 8 - - 8 Substandard 3,676 46 503 846 556 39 - 5,666 Total direct lease financing 219,661 101,892 62,815 31,023 13,141 2,143 - 430,675 SBLOC Non-rated - - - - - - 7,897 7,897 Pass - - - - - - 1,064,990 1,064,990 Special mention - - - - - - - - Substandard - - - - - - - - Total SBLOC - - - - - - 1,072,887 1,072,887 IBLOC Non-rated - - - - - - 97,017 97,017 Pass - - - - - - 262,340 262,340 Special mention - - - - - - - - Substandard - - - - - - - - Total IBLOC - - - - - - 359,357 359,357 Other specialty Non-rated 2,537 - - - - - - 2,537 Pass 116 3,484 6,368 7,042 7,083 12,817 - 36,910 Special mention - - - - - - - - Substandard - - - - - - - - Total other specialty 2,653 3,484 6,368 7,042 7,083 12,817 - 39,447 Advisor financing Non-rated 11,717 - - - - - - 11,717 Pass 15,269 - - - - - - 15,269 Special mention - - - - - - - - Substandard - - - - - - - - Total advisor financing 26,986 - - - - - - 26,986 Consumer Non-rated 414 - - 15 - 1,617 - 2,046 Pass - - - - - 1,456 - 1,456 Special mention - - - - - - - - Substandard - - - - - 308 - 308 Total consumer 414 - - 15 - 3,381 - 3,810 Total $ 495,337 $ 196,604 $ 140,621 $ 85,291 $ 63,317 $ 75,346 $ 1,432,244 $ 2,488,760 |
Changes In Allowance For Loan And Lease Losses By Loan Category | September 30, 2020 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Advisor financing Other specialty lending Other consumer loans Unallocated Total Beginning 12/31/2019 $ 4,985 $ 1,472 $ 432 $ 2,426 $ 553 $ - $ 12 $ 40 $ 318 $ 10,238 1/1 CECL adjustment ( 220 ) 537 139 2,362 ( 41 ) - 158 20 ( 318 ) 2,637 Charge-offs ( 1,350 ) - - ( 2,178 ) - - - - - ( 3,528 ) Recoveries 82 - - 502 - - - - - 584 Provision (credit) 1,304 1,543 ( 148 ) 2,735 202 199 ( 22 ) ( 17 ) - 5,796 Ending balance $ 4,801 $ 3,552 $ 423 $ 5,847 $ 714 $ 199 $ 148 $ 43 $ - $ 15,727 Ending balance: Individually evaluated for expected credit loss $ 1,818 $ 1,010 $ 26 $ 43 $ - $ - $ - $ - $ - $ 2,897 Ending balance: Collectively evaluated for expected credit loss $ 2,983 $ 2,542 $ 397 $ 5,804 $ 714 $ 199 $ 148 $ 43 $ - $ 12,830 Loans: Ending balance $ 293,488 $ 270,264 $ 27,169 $ 430,675 $ 1,428,253 $ 26,600 $ 2,194 $ 3,809 $ 6,308 $ 2,488,760 Ending balance: Individually evaluated for expected credit loss $ 3,220 $ 7,517 $ 711 $ 804 $ - $ - $ - $ 567 $ - $ 12,819 Ending balance: Collectively evaluated for expected credit loss $ 290,268 $ 262,747 $ 26,458 $ 429,871 $ 1,428,253 $ 26,600 $ 2,194 $ 3,242 $ 6,308 $ 2,475,941 December 31, 2019 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC / IBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2019 $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Charge-offs ( 1,362 ) - - ( 528 ) - - ( 1,103 ) - ( 2,993 ) Recoveries 125 - - 51 - - 2 - 178 Provision (credit) 1,586 531 182 878 160 ( 48 ) 1,033 78 4,400 Ending balance $ 4,985 $ 1,472 $ 432 $ 2,426 $ 553 $ 12 $ 40 $ 318 $ 10,238 Ending balance: Individually evaluated for impairment $ 2,961 $ 136 $ 36 $ - $ - $ - $ 9 $ - $ 3,142 Ending balance: Collectively evaluated for impairment $ 2,024 $ 1,336 $ 396 $ 2,426 $ 553 $ 12 $ 31 $ 318 $ 7,096 Loans: Ending balance $ 84,579 $ 218,110 $ 45,310 $ 434,460 $ 1,024,420 $ 3,055 $ 4,554 $ 9,757 $ 1,824,245 Ending balance: Individually evaluated for impairment $ 4,139 $ 1,047 $ 711 $ 286 $ - $ - $ 610 $ - $ 6,793 Ending balance: Collectively evaluated for impairment $ 80,440 $ 217,063 $ 44,599 $ 434,174 $ 1,024,420 $ 3,055 $ 3,944 $ 9,757 $ 1,817,452 September 30, 2019 SBL non-real estate SBL commercial mortgage SBL construction Direct lease financing SBLOC Other specialty lending Other consumer loans Unallocated Total Beginning 1/1/2019 $ 4,636 $ 941 $ 250 $ 2,025 $ 393 $ 60 $ 108 $ 240 $ 8,653 Charge-offs ( 995 ) - - ( 391 ) - - ( 3 ) - ( 1,389 ) Recoveries 94 - - 51 - - 1 - 146 Provision (credit) 1,595 315 141 676 118 ( 48 ) 125 28 2,950 Ending balance $ 5,330 $ 1,256 $ 391 $ 2,361 $ 511 $ 12 $ 231 $ 268 $ 10,360 Ending balance: Individually evaluated for impairment $ 3,037 $ 71 $ 35 $ 136 $ - $ - $ 204 $ - $ 3,483 Ending balance: Collectively evaluated for impairment $ 2,293 $ 1,185 $ 356 $ 2,225 $ 511 $ 12 $ 27 $ 268 $ 6,877 Loans: Ending balance $ 84,181 $ 209,008 $ 38,116 $ 412,755 $ 920,463 $ 3,167 $ 6,388 $ 9,299 $ 1,683,377 Ending balance: Individually evaluated for impairment $ 4,250 $ 458 $ 711 $ 424 $ - $ - $ 1,715 $ - $ 7,558 Ending balance: Collectively evaluated for impairment $ 79,931 $ 208,550 $ 37,405 $ 412,331 $ 920,463 $ 3,167 $ 4,673 $ 9,299 $ 1,675,819 |
Delinquent Loans By Loan Category | September 30, 2020 30-59 Days 60-89 Days 90+ Days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ 2,631 $ 440 - $ 2,935 $ 6,006 $ 287,482 $ 293,488 SBL commercial mortgage 2,087 850 - 7,517 10,454 259,810 270,264 SBL construction - - - 711 711 26,458 27,169 Direct lease financing 946 503 24 804 2,277 428,398 430,675 SBLOC / IBLOC 3,174 362 - - 3,536 1,424,717 1,428,253 Advisor financing - - - - - 26,600 26,600 Other specialty lending - - - - - 2,194 2,194 Consumer - other - - - - - 650 650 Consumer - home equity - - - 308 308 2,851 3,159 Unamortized loan fees and costs - - - - - 6,308 6,308 $ 8,838 $ 2,155 $ 24 $ 12,275 $ 23,292 $ 2,465,468 $ 2,488,760 December 31, 2019 30-59 Days 60-89 Days 90+ Days Total Total past due past due still accruing Non-accrual past due Current loans SBL non-real estate $ 36 $ 125 $ - $ 3,693 $ 3,854 $ 80,725 $ 84,579 SBL commercial mortgage - 1,983 - 1,047 3,030 215,080 218,110 SBL construction - - - 711 711 44,599 45,310 Direct lease financing 2,008 2,692 3,264 - 7,964 426,496 434,460 SBLOC / IBLOC 290 75 - - 365 1,024,055 1,024,420 Other specialty lending - - - - - 3,055 3,055 Consumer - other - - - - - 1,137 1,137 Consumer - home equity - - - 345 345 3,072 3,417 Unamortized loan fees and costs - - - - - 9,757 9,757 $ 2,334 $ 4,875 $ 3,264 $ 5,796 $ 16,269 $ 1,807,976 $ 1,824,245 |
Loans By Categories | Pass Special mention Substandard Doubtful Loss Unrated subject to review * Unrated not subject to review * Total loans SBL non-real estate $ 76,108 $ 3,045 $ 4,430 $ - $ - $ - $ 996 $ 84,579 SBL commercial mortgage 208,809 2,249 5,577 - - - 1,475 218,110 SBL construction 44,599 - 711 - - - - 45,310 Direct lease financing 420,289 - 8,792 - - - 5,379 434,460 SBLOC / IBLOC 942,858 - - - - - 81,562 1,024,420 Other specialty lending 3,055 - - - - - - 3,055 Consumer 2,545 - 345 - - - 1,664 4,554 Unamortized loan fees and costs - - - - - - 9,757 9,757 $ 1,698,263 $ 5,294 $ 19,855 $ - $ - $ - $ 100,833 $ 1,824,245 * For information on targeted loan review thresholds see “Allowance for Loan Losses” in the 2019 Form 10-K in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Carrying Amount And Estimated Fair Value Of Assets And Liabilities | September 30, 2020 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,264,903 $ 1,264,903 $ - $ 1,080,555 $ 184,348 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 1,368 1,368 - - 1,368 Commercial loans, at fair value 1,849,947 1,849,947 - - 1,849,947 Loans, net of deferred loan fees and costs 2,488,760 2,486,275 - - 2,486,275 Investment in unconsolidated entity 31,783 31,783 - - 31,783 Assets held-for-sale from discontinued operations 122,253 122,253 - - 122,253 Interest rate swaps, liability 2,465 2,465 - 2,465 - Demand and interest checking 4,882,834 4,882,834 - 4,882,834 - Savings and money market 505,928 505,928 - 505,928 - Senior debt 98,222 101,910 - 101,910 - Subordinated debentures 13,401 8,235 - - 8,235 Securities sold under agreements to repurchase 42 42 42 - - December 31, 2019 Quoted prices in Significant other Significant active markets for observable unobservable Carrying Estimated identical assets inputs inputs amount fair value (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale $ 1,320,692 $ 1,320,692 $ - $ 1,203,359 $ 117,333 Investment securities, held-to-maturity 84,387 83,002 - 75,850 7,152 Federal Home Loan Bank and Atlantic Central Bankers Bank stock 5,342 5,342 - - 5,342 Commercial loans, at fair value 1,180,546 1,180,546 - - 1,180,546 Loans, net of deferred loan fees and costs 1,824,245 1,826,154 - - 1,826,154 Investment in unconsolidated entity 39,154 39,154 - - 39,154 Assets held-for-sale from discontinued operations 140,657 140,657 - - 140,657 Interest rate swaps, liability 232 232 - 232 - Demand and interest checking 4,402,740 4,402,740 - 4,402,740 - Savings and money market 174,290 174,290 - 174,290 - Time deposits 475,000 475,000 - - 475,000 Senior debt - - - - - Subordinated debentures 13,401 9,736 - - 9,736 Securities sold under agreements to repurchase 82 82 82 - - |
Changes In Company's Level 3 Assets | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Available-for-sale Commercial loans securities at fair value September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Beginning balance $ 117,333 $ 24,390 $ 1,180,546 $ 688,471 Transfers into level 3 - 100,664 - - Transfers out of level 3 - - - - Reclass of held-to-maturity securities to available-for-sale 85,151 - - - Total gains or (losses) (realized/unrealized) Included in earnings - - ( 3,180 ) 25,986 Included in other comprehensive income 2,215 688 - - Purchases, issuances, sales and settlements Purchases - - - - Issuances - - 683,696 1,795,376 Sales - - - ( 1,329,287 ) Settlements ( 20,351 ) ( 8,409 ) ( 11,115 ) - Ending balance $ 184,348 $ 117,333 $ 1,849,947 $ 1,180,546 Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ - $ - $ ( 3,054 ) $ 963 The Company’s Level 3 asset activity for the categories shown for year to date are summarized below (in thousands): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Investment in Assets held-for-sale unconsolidated entity from discontinued operations September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Beginning balance $ 39,154 $ 59,273 $ 140,657 $ 197,831 Transfers into level 3 - - - - Transfers out of level 3 - - - - Total gains or (losses) (realized/unrealized) Included in earnings ( 45 ) - ( 2,332 ) ( 487 ) Included in other comprehensive income - - - - Purchases, issuances, sales, settlements and charge-offs Purchases - - - - Issuances - - 2,046 2,125 Sales - - ( 1,252 ) ( 7,136 ) Settlements ( 7,326 ) ( 20,119 ) ( 16,571 ) ( 49,021 ) Charge-offs - - ( 295 ) ( 2,655 ) Ending balance $ 31,783 $ 39,154 $ 122,253 $ 140,657 Total losses year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above. $ ( 45 ) $ - $ ( 1,899 ) $ ( 487 ) |
Fair Value, Measurements, Recurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Measured At Fair Value On A Recurring And Nonrecurring Basis | Fair Value Measurements at Reporting Date Using Quoted prices in Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs September 30, 2020 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 48,377 $ - $ 48,377 $ - Asset-backed securities 238,179 - 238,179 - Obligations of states and political subdivisions 58,458 - 58,458 - Residential mortgage-backed securities 285,701 - 285,701 - Collateralized mortgage obligation securities 169,213 - 169,213 - Commercial mortgage-backed securities 383,281 - 280,627 102,654 Corporate debt securities 81,694 - - 81,694 Total investment securities available-for-sale 1,264,903 - 1,080,555 184,348 Commercial loans, at fair value 1,849,947 - - 1,849,947 Investment in unconsolidated entity 31,783 - - 31,783 Assets held-for-sale from discontinued operations 122,253 - - 122,253 Interest rate swaps, liability 2,465 - 2,465 - $ 3,266,421 $ - $ 1,078,090 $ 2,188,331 Fair Value Measurements at Reporting Date Using Quoted prices in Significant other Significant active markets for observable unobservable Fair value identical assets inputs inputs December 31, 2019 (Level 1) (Level 2) (Level 3) Investment securities, available-for-sale U.S. Government agency securities $ 52,910 $ - $ 52,910 $ - Asset-backed securities 244,349 - 244,349 - Obligations of states and political subdivisions 65,568 - 65,568 - Residential mortgage-backed securities 336,596 - 336,596 - Collateralized mortgage obligation securities 222,727 - 222,727 - Commercial mortgage-backed securities 398,542 - 281,209 117,333 Total investment securities available-for-sale 1,320,692 - 1,203,359 117,333 Commercial loans, at fair value 1,180,546 - - 1,180,546 Investment in unconsolidated entity 39,154 - - 39,154 Assets held-for-sale from discontinued operations 140,657 - - 140,657 Interest rate swaps, liability 232 - 232 - $ 2,680,817 $ - $ 1,203,127 $ 1,477,690 |
Fair Value Inputs, Assets, Quantitative Information | Level 3 instruments only Weighted Fair value at Range at average at September 30, 2020 Valuation techniques Unobservable inputs September 30, 2020 September 30, 2020 Commercial mortgage backed investment $ 102,654 Discounted cash flow Discount rate 4.19 % - 8.29 % 4.72 % securities available-for-sale (a) Insurance liquidating trust preferred security, 6,156 Discounted cash flow Discount rate 7.47 % 7.47 % available-for-sale (b) Corporate debt securities (c) 75,538 Traders' pricing Price indications $ 100.55 - $ 101.00 $ 100.90 Federal Home Loan Bank and Atlantic 1,368 Cost N/A N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and costs (d) 2,486,275 Discounted cash flow Discount rate 1.00 % - 7.00 % 2.63 % Commercial - SBA (e) 250,958 Traders' pricing Offered quotes $ 100.00 - $ 117.5 $ 105.60 Commercial - fixed (f) 84,901 Discounted cash flow Discount rate 5.01 % - 7.30 % 5.90 % Commercial - floating (g) 1,514,088 Discounted cash flow Discount rate 3.00 % - 7.80 % 4.81 % Commercial loans, at fair value 1,849,947 Investment in unconsolidated entity (h) 31,783 Discounted cash flow Discount rate 3.93 % 3.93 % Default rate 1.00 % 1.00 % Assets held-for-sale from discontinued operations (i) 122,253 Discounted cash flow Discount rate, 2.73 % - 7.58 % 4.19 % Credit analysis Subordinated debentures (j) 8,235 Discounted cash flow Discount rate 7.47 % 7.47 % Level 3 instruments only Fair value at Range at December 31, 2019 Valuation techniques Unobservable inputs December 31, 2019 Commercial mortgage backed investment $ 117,333 Discounted cash flow Discount rate 4.05 % - 8.18 % securities available-for-sale Insurance liquidating trust preferred security, 7,152 Discounted cash flow Discount rate 8.01 % available-for-sale Federal Home Loan Bank and Atlantic 5,342 Cost N/A N/A Central Bankers Bank stock Loans, net of deferred loan fees and costs 1,826,154 Discounted cash flow Discount rate 3.11 % - 6.93 % Commercial - SBA 220,358 Traders' pricing Offered quotes $ 101.6 - $ 107.9 Commercial - fixed 88,986 Discounted cash flow Discount rate 4.33 % - 7.13 % Commercial - floating 871,202 Discounted cash flow Discount rate 4.51 % - 6.81 % Commercial loans, at fair value 1,180,546 Investment in unconsolidated entity 39,154 Discounted cash flow Discount rate 5.84 % Default rate 1.00 % Assets held-for-sale from discontinued operations 140,657 Discounted cash flow Discount rate, 3.49 % -7.58% Credit analysis Subordinated debentures 9,736 Discounted cash flow Discount rate 8.01 % The valuations for each of the instruments above, as of the balance sheet date, is subject to judgments, assumptions and uncertainties, changes in which could have a significant impact on such valuations. All weighted averages were calculated by using the discount rate for each individual security or loan weighted by its market value, except for SBA loans. For SBA loans, traders’ pricing indications for pools determined by date of loan origination were weighted. For commercial loans recorded at fair value, investment in unconsolidated entity and assets held-for-sale from discontinued operations, changes in fair value are reflected in the income statement. Changes in fair value of securities which are unrelated to credit are recorded through equity. Changes in the fair value of loans recorded at amortized cost which are unrelated to credit are a disclosure item, without impact on the financial statements. The notes below refer to the September 30, 2020 table. a) Commercial mortgage backed investment securities, consisting of Bank issued CRE securities, are valued using discounted cash flow analyses. The discount rates applied are based upon market observations for comparable securities and implicitly assume market averages for prepayments, defaults, and loss severities. Each of the securities has some credit enhancement, or protection from other tranches in the issue, which limit their valuation exposure to credit losses. Nonetheless, increases in expected default rates or loss severities on the loans underlying the issue could reduce their value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on these holdings in future periods and impact fair values. b) Insurance liquidating trust preferred is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. c) Corporate debt securities consist of three AAA rated privately placed debt structures backed by investment grade corporate debt each with over 50 % credit enhancement. Each of these securities has a coupon of 3 Month LIBOR + 3.00 %. Price indications are obtained from a broker/dealer with significant experience in trading and evaluating these securities. Changes in either investor yield requirements for relatively illiquid securities, or credit risk could affect the price indications. d) Loans, net of deferred fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. At September 30, 2020, the balance included $ 207.9 million of Paycheck Protection Program loans, which bear interest at 1 %, but also earn fees. e) Commercial-SBL (SBA Loans) are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon dealer pricing indications. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are also impacted by prepayment assumptions resulting from both voluntary payoffs and defaults. f) Commercial-fixed are fixed rate commercial mortgages originated for sale. Discount rates used in applying discounted cash flow analysis are determined by an independent valuation consultant based upon loan terms, the general level of interest rates and the quality of the credit. g) Commercial-floating are floating rate loans, the vast majority of which are secured by multi-family properties. These are bridge loans designed to provide owners time and funding for property improvements and are generally valued internally using discounted cash flow analysis. The discount rate for the vast majority of these loans, which are multi-family, was based upon current origination rates for similar loans. Certain non multi family loans are fair valued by a third party, based upon discounting at market rates for similar loans. h) Investment in unconsolidated entity is in non-accrual status, and changes in its value, determined by discounted cash flows, are recorded in the income statement under “C hange in value of investment in unconsolidated entity”. A constant default rate of 1 %, net of recoveries, on cash flowing loans was utilized. Changes in market interest rates, credit quality or payment experience could result in a change in the current valuation. i) Assets held-for-sale from discontinued operations are valued using discounted cash flow by an independent valuation consultant using loan performance, other credit characteristics and market interest rate comparisons. Changes in those factors could change the valuation. j) Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in the valuation. |
Fair Value, Measurements, Nonrecurring [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Measured At Fair Value On A Recurring And Nonrecurring Basis | Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs (1) Description September 30, 2020 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 9,922 $ - $ - $ 9,922 Fair Value Measurements at Reporting Date Using Quoted prices in active Significant other Significant markets for identical observable unobservable Fair value assets inputs inputs (1) Description December 31, 2019 (Level 1) (Level 2) (Level 3) Collateral dependent loans (1) $ 3,651 $ - $ - $ 3,651 Intangible assets 2,315 - - 2,315 $ 5,966 $ - $ - $ 5,966 (1) The method of valuation approach for the collateral dependent loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7 % to 10 % for estimated selling costs. Intangible assets are valued based upon internal analyses. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivatives [Abstract] | |
Derivatives | September 30, 2020 Maturity date Notional amount Interest rate paid Interest rate received Fair value August 4, 2021 10,300 1.12 % 0.25 % ( 78 ) December 23, 2025 6,800 2.16 % 0.22 % ( 636 ) December 24, 2025 8,200 2.17 % 0.22 % ( 775 ) January 28, 2026 3,000 1.87 % 0.25 % ( 239 ) July 20, 2026 6,300 1.44 % 0.27 % ( 377 ) December 12, 2026 3,200 2.26 % 0.25 % ( 360 ) Total $ 37,800 $ ( 2,465 ) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Scheduled Maturities of Direct Financing Leases | Remaining 2020 $ 41,520 2021 120,670 2022 87,382 2023 56,629 2024 27,709 2025 and thereafter 8,026 Total undiscounted cash flows 341,936 Residual value * 134,546 Difference between undiscounted cash flows and discounted cash flows ( 45,807 ) Present value of lease payments recorded as lease receivables $ 430,675 * Of the $ 134,546,000 , $ 30,050,000 is not guaranteed by the lessee or other guarantors. |
Segment Financials (Tables)
Segment Financials (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Financials [Abstract] | |
Schedule Of Segment Financials | For the three months ended September 30, 2020 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 44,408 $ - $ 8,070 $ - $ 52,478 Interest allocation - 8,070 ( 8,070 ) - - Interest expense 232 1,234 1,016 - 2,482 Net interest income (loss) 44,176 6,836 ( 1,016 ) - 49,996 Provision for credit losses 1,297 - - - 1,297 Non-interest income 2,395 21,933 24 - 24,352 Non-interest expense 17,236 16,939 7,851 - 42,026 Income (loss) from continuing operations before taxes 28,038 11,830 ( 8,843 ) - 31,025 Income tax expense - - 7,894 - 7,894 Income (loss) from continuing operations 28,038 11,830 ( 16,737 ) - 23,131 Income from discontinued operations - - - 123 123 Net income (loss) $ 28,038 $ 11,830 $ ( 16,737 ) $ 123 $ 23,254 For the three months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 35,210 $ - $ 13,165 $ - $ 48,375 Interest allocation - 13,165 ( 13,165 ) - - Interest expense 353 7,236 3,226 - 10,815 Net interest income (loss) 34,857 5,929 ( 3,226 ) - 37,560 Provision for credit losses 650 - - - 650 Non-interest income 14,719 18,767 29 - 33,515 Non-interest expense 15,791 16,289 9,971 - 42,051 Income (loss) from continuing operations before taxes 33,135 8,407 ( 13,168 ) - 28,374 Income tax expense - - 7,975 - 7,975 Income (loss) from continuing operations 33,135 8,407 ( 21,143 ) - 20,399 Income from discontinued operations - - - 26 26 Net income (loss) $ 33,135 $ 8,407 $ ( 21,143 ) $ 26 $ 20,425 For the nine months ended September 30, 2020 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 125,254 $ - $ 30,589 $ - $ 155,843 Interest allocation - 30,589 ( 30,589 ) - - Interest expense 791 7,381 4,518 - 12,690 Net interest income (loss) 124,463 23,208 ( 4,518 ) - 143,153 Provision for credit losses 5,798 - - - 5,798 Non-interest income ( 1,622 ) 62,770 169 - 61,317 Non-interest expense 51,742 51,345 19,977 - 123,064 Income (loss) from continuing operations before taxes 65,301 34,633 ( 24,326 ) - 75,608 Income tax expense - - 19,033 - 19,033 Income (loss) from continuing operations 65,301 34,633 ( 43,359 ) - 56,575 Loss from discontinued operations - - - ( 662 ) ( 662 ) Net income (loss) $ 65,301 $ 34,633 $ ( 43,359 ) $ ( 662 ) $ 55,913 For the nine months ended September 30, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Interest income $ 95,573 $ - $ 40,460 $ - $ 136,033 Interest allocation - 40,460 ( 40,460 ) - - Interest expense 1,087 23,947 4,890 - 29,924 Net interest income (loss) 94,486 16,513 ( 4,890 ) - 106,109 Provision for credit losses 2,950 - - - 2,950 Non-interest income 27,794 55,733 102 - 83,629 Non-interest expense 47,196 50,211 23,392 - 120,799 Income (loss) from continuing operations before taxes 72,134 22,035 ( 28,180 ) - 65,989 Income tax expense - - 17,585 - 17,585 Income (loss) from continuing operations 72,134 22,035 ( 45,765 ) - 48,404 Income from discontinued operations - - - 1,301 1,301 Net income (loss) $ 72,134 $ 22,035 $ ( 45,765 ) $ 1,301 $ 49,705 September 30, 2020 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 4,378,815 $ 37,547 $ 1,630,687 $ 122,253 $ 6,169,302 Total liabilities $ 286,610 $ 4,752,944 $ 571,289 $ - $ 5,610,843 December 31, 2019 Specialty finance Payments Corporate Discontinued operations Total (in thousands) Total assets $ 3,008,304 $ 57,746 $ 2,450,256 $ 140,657 $ 5,656,963 Total liabilities $ 247,485 $ 4,030,921 $ 894,060 $ - $ 5,172,466 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations [Abstract] | |
Financial Results Of The Commercial Lending Business Included In Net Income (Loss) From Discontinued Operations | For the three months ended September 30, For the nine months ended September 30, 2020 2019 2020 2019 Interest income $ 890 $ 1,609 $ 3,259 $ 5,293 Interest expense - - - - Net interest income 890 1,609 3,259 5,293 Non-interest income 4 9 18 33 Non-interest expense 2,565 1,467 5,997 3,451 Income (loss) before taxes ( 1,671 ) 151 ( 2,720 ) 1,875 Income tax expense (benefit) ( 1,794 ) 125 ( 2,058 ) 574 Net income (loss) $ 123 $ 26 $ ( 662 ) $ 1,301 September 30, December 31, 2020 2019 Loans, net $ 98,388 $ 115,879 Other real estate owned 23,865 24,778 Total assets $ 122,253 $ 140,657 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - Senior Notes [Member] - Senior Debt 4.75% [Member] | Aug. 13, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 100,000,000 |
Debt Instrument, Maturity Date | Aug. 15, 2025 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)item$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock-based compensation plans | item | 4 | |
Option expiration period | 10 years | |
Number of common stock reserved for issuance (in shares) | 3,300,000 | |
Unrecognized compensation cost related to unvested awards under share-based plans | $ | $ 13.4 | |
Cost expected to be recognized over a weighted average period | 2 years 1 month 6 days | |
Share-based Payment Arrangement, Expense | $ | $ 5.1 | $ 4.4 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,531,702 | 930,831 |
Granted (in dollars per share) | $ / shares | $ 6.87 | |
Options Granted (in dollars per share) | $ / shares | $ 8.57 | |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years 9 months | 3 years |
Granted (in shares) | 1,387,602 | 863,331 |
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | 1 year |
Granted (in shares) | 144,100 | 67,500 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Granted (in shares) | 300,000 | 65,104 |
Vesting period | 4 years | 4 years |
Stock option exercised (in shares) | 74,000 | 0 |
Options Granted (in dollars per share) | $ / shares | $ 3.02 | $ 3.84 |
Options exercised and vested in period, total intrinsic value | $ | $ 6.5 | $ 4.3 |
Restricted Stock Units And Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 5.3 | $ 3.8 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Status Of Company's Equity Compensations Plans) (Details) - Stock Options [Member] - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 1,311,604 | ||
Options Granted (in shares) | 300,000 | 65,104 | |
Exercised (in shares) | (74,000) | 0 | |
Expired (in shares) | (147,000) | ||
Forfeited (in shares) | (8,000) | ||
Outstanding, end of period (in shares) | 1,382,604 | 1,311,604 | |
Exercisable, end of period (in shares) | 1,033,776 | ||
Weighted average exercise price [Roll Forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 8.24 | ||
Granted (in dollars per share) | 6.87 | ||
Exercised (in dollars per share) | 8.38 | ||
Expired (in dollars per share) | 7.81 | ||
Forfeited (in dollars per share) | 9.39 | ||
Outstanding, end of period (in dollars per share) | 7.97 | $ 8.24 | |
Exercisable, end of period (in dollars per share) | $ 8.27 | ||
Weighted-average remaining contractual term [Abstract] | |||
Granted | 3 years 8 months 15 days | ||
Outstanding | 4 years 3 months 21 days | 3 years 1 month 9 days | |
Exercisable, end of period | 2 years 6 months 29 days | ||
Aggregate intrinsic value [Abstract] | |||
Outstanding, beginning of period | $ 6,203,523 | ||
Granted | 531,000 | ||
Exercised | 310,280 | ||
Expired | |||
Forfeited | |||
Outstanding, end of period | 1,372,257 | $ 6,203,523 | |
Exercisable, end of period | $ 837,839 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Shares [Roll Forward] | |||
Outstanding, beginning of period (in shares) | 1,253,927 | ||
Granted (in shares) | 1,531,702 | 930,831 | |
Vested (in shares) | (576,356) | ||
Forfeited (in shares) | (12,971) | ||
Outstanding, end of period (in shares) | 2,196,302 | 1,253,927 | |
Weighted-average price [Roll forward] | |||
Outstanding, beginning of period (in dollars per share) | $ 8.87 | ||
Granted (in dollars per share) | 6.87 | ||
Vested (in dollars per share) | 8.64 | ||
Forfeited (in dollars per share) | 9.10 | ||
Outstanding, end of period (in dollars per share) | $ 7.53 | $ 8.87 | |
Average remaining contractual term (years) [Abstract] | |||
Granted | 2 years 2 months 23 days | ||
Outstanding | 1 year 10 months 24 days | 1 year 7 months 20 days |
Stock-Based Compensation (Fair
Stock-Based Compensation (Fair Value Of Grant On Date Of Grant Using The Black-Scholes Options Pricing Model) (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Risk-free interest rate (in hundredths) | 0.68% | 2.63% |
Expected dividend yield (in hundredths) | ||
Expected volatility (in hundredths) | 45.20% | 41.83% |
Minimum [Member] | ||
Expected lives (years) | 1 year | 1 year |
Maximum [Member] | ||
Expected lives (years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares not included in earnings per share calculation | 326,000 | 357,500 | 326,000 | 357,500 |
Exercise Price Range One [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options, outstanding, exercisable range | 1,056,604 | 984,104 | 1,056,604 | 984,104 |
Minimum exercisable prices (in dollars per share) | $ 6.75 | $ 6.75 | ||
Maximum exercisable prices (in dollars per share) | $ 8.57 | $ 8.57 | ||
Exercise Price Range Two [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock options, outstanding, exercisable range | 1,056,604 | 984,104 | 1,056,604 | 984,104 |
Minimum exercisable prices (in dollars per share) | $ 6.75 | $ 6.75 | ||
Maximum exercisable prices (in dollars per share) | $ 8.57 | $ 8.57 |
Earnings Per Share (Earnings Pe
Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income (numerator) [Abstract] | ||||
Net earnings (loss) available to common shareholders | $ 23,254 | $ 20,425 | $ 55,913 | $ 49,705 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 23,254 | $ 20,425 | $ 55,913 | $ 49,705 |
Shares (denominator) [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 57,588,168 | 56,907,815 | 57,433,477 | 56,712,084 |
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 883,024 | 505,482 | 618,356 | 440,287 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 58,471,192 | 57,413,297 | 58,051,833 | 57,152,371 |
Per share amount [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in dollars per share) | $ 0.40 | $ 0.36 | $ 0.97 | $ 0.87 |
Effect of dilutive securities, Common stock options and restricted stock units (in dollars per share) | (0.01) | |||
Net income per share - diluted | $ 0.40 | $ 0.36 | $ 0.96 | $ 0.87 |
Continuing Operations [Member] | ||||
Income (numerator) [Abstract] | ||||
Net earnings (loss) available to common shareholders | $ 23,131 | $ 20,399 | $ 56,575 | $ 48,404 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 23,131 | $ 20,399 | $ 56,575 | $ 48,404 |
Shares (denominator) [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 57,588,168 | 56,907,815 | 57,433,477 | 56,712,084 |
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 883,024 | 505,482 | 618,356 | 440,287 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 58,471,192 | 57,413,297 | 58,051,833 | 57,152,371 |
Per share amount [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in dollars per share) | $ 0.40 | $ 0.36 | $ 0.98 | $ 0.85 |
Effect of dilutive securities, Common stock options and restricted stock units (in dollars per share) | (0.01) | |||
Net income per share - diluted | $ 0.40 | $ 0.36 | $ 0.97 | $ 0.85 |
Discontinued Operations [Member] | ||||
Income (numerator) [Abstract] | ||||
Net earnings (loss) available to common shareholders | $ 123 | $ 26 | $ (662) | $ 1,301 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders | $ 123 | $ 26 | $ (662) | $ 1,301 |
Shares (denominator) [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 57,588,168 | 56,907,815 | 57,433,477 | 56,712,084 |
Effect of dilutive securities, Common stock options and restricted stock units (in shares) | 883,024 | 505,482 | 618,356 | 440,287 |
Diluted earnings (loss) per share, Net income (loss) available to common shareholders (in shares) | 58,471,192 | 57,413,297 | 58,051,833 | 57,152,371 |
Per share amount [Abstract] | ||||
Basic earnings (loss) per share, Net income (loss) available to common shareholders (in dollars per share) | $ (0.01) | $ 0.02 | ||
Net income per share - diluted | $ (0.01) | $ 0.02 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2020security | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Number of securities transferred from held-to-maturity to available-for-sale | security | 4 | ||
Investment in Federal Home Loan and Atlantic Central Bankers Bank stock recorded at cost | $ 1,400 | $ 5,300 | |
Investment securities pledged as collateral | $ 0 | 0 | |
Book value | 84,387 | ||
Fair value | 83,002 | ||
Number of securities with impairment that is other-than-temporary | security | 0 | ||
Single Issuers [Member] | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Number of single issuer trust preferred securities | security | 1 | ||
Book value | $ 10,000 | ||
Fair value | $ 6,200 | $ 7,152 |
Investment Securities (Schedule
Investment Securities (Schedule Of Investment Securities Classified As Available-for-sale And Held-to-maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale [Abstract] | ||
Amortized cost | $ 1,236,547 | $ 1,311,627 |
Gross unrealized gains | 39,333 | 11,231 |
Gross unrealized losses | (10,977) | (2,166) |
Fair value | 1,264,903 | 1,320,692 |
Held-to-maturity [Abstract] | ||
Amortized cost | 84,387 | |
Gross unrealized gains | 682 | |
Gross unrealized losses | (2,067) | |
Fair value | 83,002 | |
U.S. Government Agency Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 46,040 | 52,415 |
Gross unrealized gains | 2,477 | 672 |
Gross unrealized losses | (140) | (177) |
Fair value | 48,377 | 52,910 |
Asset-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 239,961 | 244,751 |
Gross unrealized gains | 28 | 132 |
Gross unrealized losses | (1,810) | (534) |
Fair value | 238,179 | 244,349 |
Federally insured student loan securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 29,238 | 33,852 |
Gross unrealized gains | 7 | 10 |
Gross unrealized losses | (365) | (323) |
Fair value | 28,880 | 33,539 |
Collateralized Loan Obligations Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 210,723 | 210,899 |
Gross unrealized gains | 21 | 122 |
Gross unrealized losses | (1,445) | (211) |
Fair value | 209,299 | 210,810 |
Tax-exempt Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 4,041 | 5,174 |
Gross unrealized gains | 255 | 144 |
Fair value | 4,296 | 5,318 |
Taxable Obligations Of States And Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 49,847 | 58,258 |
Gross unrealized gains | 4,315 | 1,992 |
Fair value | 54,162 | 60,250 |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 275,764 | 335,068 |
Gross unrealized gains | 10,043 | 2,629 |
Gross unrealized losses | (106) | (1,101) |
Fair value | 285,701 | 336,596 |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 165,147 | 221,109 |
Gross unrealized gains | 4,103 | 1,826 |
Gross unrealized losses | (37) | (208) |
Fair value | 169,213 | 222,727 |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 370,673 | 394,852 |
Gross unrealized gains | 17,648 | 3,836 |
Gross unrealized losses | (5,040) | (146) |
Fair value | 383,281 | 398,542 |
Corporate Debt Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 85,074 | |
Gross unrealized gains | 464 | |
Gross unrealized losses | (3,844) | |
Fair value | 81,694 | |
Single Issuers [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 9,219 | |
Gross unrealized losses | (2,067) | |
Fair value | $ 6,200 | 7,152 |
Pooled [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 75,168 | |
Gross unrealized gains | 682 | |
Fair value | $ 75,850 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities By Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale, Amortized cost [Abstract] | ||
Due before one year | $ 2,186 | |
Due after one year through five years | 153,599 | |
Due after five years through ten years | 224,146 | |
Due after ten years | 856,616 | |
Total | 1,236,547 | |
Available-for-sale, Fair value [Abstract] | ||
Due before one year | 2,214 | |
Due after one year through five years | 162,951 | |
Due after five years through ten years | 231,236 | |
Due after ten years | 868,502 | |
Fair value | $ 1,264,903 | $ 1,320,692 |
Investment Securities (Availabl
Investment Securities (Available-for-sale And Held-to-maturity Securities, Continuous Unrealized Loss Position) (Details) $ in Thousands | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 62 | 123 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 242,978 | $ 259,287 |
12 months or longer, Fair Value | 89,326 | 155,022 |
Total, Fair Value | 332,304 | 414,309 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (6,396) | (647) |
12 months or longer, Unrealized losses | (4,581) | (1,519) |
Total, Unrealized losses | $ (10,977) | $ (2,166) |
Held-to-maturity, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | |
Held-to-maturity, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 7,152 | |
Total, Fair Value | 7,152 | |
Held-to-maturity, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (2,067) | |
Total, Unrealized losses | $ (2,067) | |
U.S. Government Agency Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 4 | 5 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 538 | $ 12,214 |
12 months or longer, Fair Value | 6,043 | 3,986 |
Total, Fair Value | 6,581 | 16,200 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (2) | (44) |
12 months or longer, Unrealized losses | (138) | (133) |
Total, Unrealized losses | $ (140) | $ (177) |
Asset-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 34 | 28 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 168,437 | $ 115,909 |
12 months or longer, Fair Value | 55,437 | 56,427 |
Total, Fair Value | 223,874 | 172,336 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (1,293) | (275) |
12 months or longer, Unrealized losses | (517) | (260) |
Total, Unrealized losses | $ (1,810) | $ (535) |
Residential Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 11 | 64 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 5,101 | $ 58,682 |
12 months or longer, Fair Value | 8,042 | 73,311 |
Total, Fair Value | 13,143 | 131,993 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (42) | (114) |
12 months or longer, Unrealized losses | (64) | (987) |
Total, Unrealized losses | $ (106) | $ (1,101) |
Collateralized Mortgage Obligation Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 8 | 22 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 7,225 | $ 37,387 |
12 months or longer, Fair Value | 3,626 | 18,136 |
Total, Fair Value | 10,851 | 55,523 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (36) | (85) |
12 months or longer, Unrealized losses | (1) | (123) |
Total, Unrealized losses | $ (37) | $ (208) |
Commercial Mortgage-backed Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 4 | 4 |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
Less than 12 months, Fair Value | $ 61,677 | $ 35,095 |
12 months or longer, Fair Value | 10,021 | 3,162 |
Total, Fair Value | 71,698 | 38,257 |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
Less than 12 months, Unrealized losses | (5,023) | (129) |
12 months or longer, Unrealized losses | (17) | (16) |
Total, Unrealized losses | $ (5,040) | $ (145) |
Corporate Debt Securities [Member] | ||
Available-for-sale, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | |
Available-for-sale, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 6,157 | |
Total, Fair Value | 6,157 | |
Available-for-sale, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (3,844) | |
Total, Unrealized losses | $ (3,844) | |
Single Issuers [Member] | ||
Held-to-maturity, continuous unrealized loss position [Abstract] | ||
Number of securities | security | 1 | |
Held-to-maturity, continuous unrealized loss position, Fair Value [Abstract] | ||
12 months or longer, Fair Value | $ 7,152 | |
Total, Fair Value | 7,152 | |
Held-to-maturity, continuous unrealized loss position, Unrealized losses [Abstract] | ||
12 months or longer, Unrealized losses | (2,067) | |
Total, Unrealized losses | $ (2,067) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020USD ($)security | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Oct. 29, 2020USD ($) | Jan. 01, 2020USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans held for sale | $ 1,850,000 | ||||||||
Loans available for sale, unpaid principal amount | 1,850,000,000 | ||||||||
Gains (losses) recognized from changes in fair value | (3,100,000) | $ 1,600,000 | |||||||
Changes in fair value gain (loss) of loans, credit weaknesses amount | $ 490,000 | ||||||||
Prepayments percentage, loans | 15.00% | ||||||||
Loans Receivable, Gross, Commercial, Mortgage | $ 778,200,000 | $ 518,300,000 | $ 2,488,760,000 | 778,200,000 | |||||
Gain (Loss) on Securitization of Financial Assets | 14,200,000 | 11,200,000 | |||||||
Transfers of Financial Assets Accounted for as Sale, Initial Fair Value of Assets Obtained as Proceeds | $ 51,600,000 | $ 41,600,000 | 51,600,000 | ||||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Discount Rate | 4.12% | 4.75% | |||||||
Interest which would have been earned on loans classified as non-accrual | 459,000 | $ 356,000 | |||||||
Commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings | 0 | $ 0 | |||||||
Non-accrual loans, income | 0 | ||||||||
Nonaccrual loans, Income Reversed | 361,000 | ||||||||
Loans acquired with deteriorated credit quality | 0 | 0 | |||||||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | security | 1 | ||||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,661,000 | 2,084,000 | |||||||
Financing Receivable, Troubled Debt Restructured Loans, Reserves | 479,000 | ||||||||
Total loans, gross | 2,482,452,000 | $ 1,814,488,000 | |||||||
Financing Receivable Allowance For Credit Losses On Off-Balance Sheet Credit | $ 570,000,000 | ||||||||
Equity Securities [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans, advanced rate calculation, percentage | 50 | ||||||||
Mutual Fund [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans, advanced rate calculation, percentage | 50 | ||||||||
Debt Securities [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans, advanced rate calculation, percentage | 80 | ||||||||
ASU 2016-13 [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 2,600,000 | ||||||||
Financing Receivable Allowance For Off-Balance Credit Losses Period Increase | 569,000 | ||||||||
Financing Receivable Allowance For Credit Losses On Off-Balance Sheet Credit | $ 570,000 | $ 569,000 | |||||||
Commercial Mortgage - Securitization [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross, Commercial, Mortgage | 0 | ||||||||
Total loans, gross | 1,600,000,000 | ||||||||
SBLOC [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Gains (losses) recognized from changes in fair value | 0 | ||||||||
Loans Receivable, Gross, Commercial, Mortgage | 1,072,887,000 | ||||||||
Vehicles Loan [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Total loans, gross | $ 15,300,000 | 1,700,000 | |||||||
Vehicles Loan [Member] | Subsequent Event [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Total loans, gross | $ 690,000 | ||||||||
Advisor Financing [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Loans Receivable, Gross, Commercial, Mortgage | 26,986,000 | ||||||||
Total loans, gross | [1] | $ 26,600,000 | |||||||
Loan Amount, Loan-To-Value Ratio | 70 | ||||||||
Paycheck Protection Program Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Total loans, gross | $ 207,900,000 | ||||||||
Government Guaranteed Loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Total loans, gross | $ 334,700,000 | ||||||||
[1] | In 2020, the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. |
Loans (Major Classifications Of
Loans (Major Classifications Of Loans) (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | ||
Major classifications of loans [Abstract] | ||||
Total loans, gross | $ 2,482,452 | $ 1,814,488 | ||
Unamortized loan fees and costs | 6,308 | 9,757 | ||
Total loans, net of unamortized loan fees and costs | 2,488,760 | 1,824,245 | $ 1,683,377 | |
Demand deposit overdrafts reclassified as loan balances | 151 | 882 | ||
SBL Non Real Estate [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 293,488 | 84,579 | ||
Total loans, net of unamortized loan fees and costs | 293,488 | 84,579 | 84,181 | |
SBL Commercial Mortgage [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 270,264 | 218,110 | ||
Total loans, net of unamortized loan fees and costs | 270,264 | 218,110 | 209,008 | |
SBL Construction [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 27,169 | 45,310 | ||
Total loans, net of unamortized loan fees and costs | 27,169 | 45,310 | 38,116 | |
Small Business Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [1] | 590,921 | 347,999 | |
Direct Lease Financing [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 430,675 | 434,460 | ||
Total loans, net of unamortized loan fees and costs | 430,675 | 434,460 | 412,755 | |
SBLOC/IBLOC [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [2] | 1,428,253 | 1,024,420 | |
Total loans, net of unamortized loan fees and costs | 1,428,253 | 1,024,420 | 920,463 | |
Advisor Financing [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [3] | 26,600 | ||
Total loans, net of unamortized loan fees and costs | $ 26,600 | |||
Loan amount, loan-to-value ratio | 70 | |||
Other Specialty Lending [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | $ 2,194 | 3,055 | ||
Total loans, net of unamortized loan fees and costs | 2,194 | 3,055 | $ 3,167 | |
Consumer - Other [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | [4] | 3,809 | 4,554 | |
Total loans, net of unamortized loan fees and costs | 650 | 1,137 | ||
Small Business Loans: Non-SBA Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 17,800 | 17,000 | ||
IBLOC [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | 359,400 | $ 144,600 | ||
SBL: Short Term Paycheck Protection Loans [Member] | ||||
Major classifications of loans [Abstract] | ||||
Total loans, gross | $ 207,900 | |||
[1] | The preceding table shows small business loans, or SBL, and SBL held at fair value at the dates indicated (in thousands). Included in SBL non-real estate loans are $ 207.9 million of Paycheck Protection Program loans with estimated lives of less than one year. While the majority of SBL are comprised of SBA loans, SBL also includes $ 17.8 million of non-SBA loans as of September 30, 2020 and $ 17.0 million at December 31, 2019. | |||
[2] | Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At September 30, 2020 and December 31, 2019, respectively, IBLOC loans amounted to $ 359.4 million and $ 144.6 million. | |||
[3] | In 2020, the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70 %, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate. | |||
[4] | Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $ 151,000 and $ 882,000 at September 30, 2020 and December 31, 2019, respectively. |
Loans (Schedule Of Small Busine
Loans (Schedule Of Small Business Administration Loans and Held For Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loans [Abstract] | ||
SBL loans, including deferred fees and costs of $(607) and $4,215 for June 30, 2020 and December 31, 2019, respectively | $ 590,314 | $ 352,214 |
SBL loans included in commercial loans at fair value | 250,958 | 220,358 |
Total small business loans | 841,272 | 572,572 |
SBL deferred fees and costs | $ (607) | $ 4,215 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
With an allowance recorded [Abstract] | ||
Related allowance | $ (2,900) | |
Total allowance recorded [Abstract] | ||
Recorded investment | 12,819 | $ 6,793 |
Unpaid principal balance | 15,899 | 9,742 |
Related allowance | (2,897) | (3,142) |
Average recorded investment | 13,022 | 7,457 |
Interest income recognized | 22 | 55 |
SBL Non Real Estate [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 445 | 335 |
Unpaid principal balance | 3,525 | 2,717 |
Average recorded investment | 365 | 277 |
Interest income recognized | 2 | 5 |
With an allowance recorded [Abstract] | ||
Recorded investment | 2,775 | 3,804 |
Unpaid principal balance | 2,775 | 4,371 |
Related allowance | (1,818) | (2,961) |
Average recorded investment | 3,310 | 3,925 |
Interest income recognized | 12 | 30 |
Total allowance recorded [Abstract] | ||
Recorded investment | 3,220 | 4,139 |
Unpaid principal balance | 6,300 | 7,088 |
Related allowance | (1,818) | (2,961) |
Average recorded investment | 3,675 | 4,202 |
Interest income recognized | 14 | 35 |
SBL Commercial Mortgage [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 2,036 | 76 |
Unpaid principal balance | 2,036 | 76 |
Average recorded investment | 1,056 | 15 |
With an allowance recorded [Abstract] | ||
Recorded investment | 5,481 | 971 |
Unpaid principal balance | 5,481 | 971 |
Related allowance | (1,010) | (136) |
Average recorded investment | 2,098 | 561 |
Total allowance recorded [Abstract] | ||
Recorded investment | 7,517 | 1,047 |
Unpaid principal balance | 7,517 | 1,047 |
Related allowance | (1,010) | (136) |
Average recorded investment | 3,154 | 576 |
SBL Construction [Member] | ||
Without an allowance recorded [Abstract] | ||
Average recorded investment | 284 | |
With an allowance recorded [Abstract] | ||
Recorded investment | 711 | 711 |
Unpaid principal balance | 711 | 711 |
Related allowance | (26) | (36) |
Average recorded investment | 711 | 284 |
Total allowance recorded [Abstract] | ||
Recorded investment | 711 | 711 |
Unpaid principal balance | 711 | 711 |
Related allowance | (26) | (36) |
Average recorded investment | 711 | 568 |
Direct Lease Financing [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 260 | 286 |
Unpaid principal balance | 260 | 286 |
Average recorded investment | 4,116 | 362 |
Interest income recognized | 11 | |
With an allowance recorded [Abstract] | ||
Recorded investment | 544 | |
Unpaid principal balance | 544 | |
Related allowance | (43) | |
Average recorded investment | 782 | 244 |
Total allowance recorded [Abstract] | ||
Recorded investment | 804 | 286 |
Unpaid principal balance | 804 | 286 |
Related allowance | (43) | |
Average recorded investment | 4,898 | 606 |
Interest income recognized | 11 | |
Consumer - Home Equity [Member] | ||
Without an allowance recorded [Abstract] | ||
Recorded investment | 567 | 489 |
Unpaid principal balance | 567 | 489 |
Average recorded investment | 554 | 1,161 |
Interest income recognized | 8 | 9 |
With an allowance recorded [Abstract] | ||
Recorded investment | 121 | |
Unpaid principal balance | 121 | |
Related allowance | (9) | |
Average recorded investment | 30 | 344 |
Total allowance recorded [Abstract] | ||
Recorded investment | 567 | 610 |
Unpaid principal balance | 567 | 610 |
Related allowance | (9) | |
Average recorded investment | 584 | 1,505 |
Interest income recognized | $ 8 | $ 9 |
Loans (Summary Of Non-Accrual L
Loans (Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | $ 9,277 | |
Non-accrual loans without a related ACL | 2,998 | |
Total non-accrual loans | 12,275 | $ 5,796 |
SBL Non Real Estate [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 2,541 | |
Non-accrual loans without a related ACL | 394 | |
Total non-accrual loans | 2,935 | 3,693 |
SBL Commercial Mortgage [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 5,481 | |
Non-accrual loans without a related ACL | 2,036 | |
Total non-accrual loans | 7,517 | 1,047 |
SBL Construction [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 711 | |
Total non-accrual loans | 711 | 711 |
Direct Lease Financing [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans with a related ACL | 544 | |
Non-accrual loans without a related ACL | 260 | |
Total non-accrual loans | 804 | |
Consumer - Other [Member] | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Non-accrual loans without a related ACL | 308 | |
Total non-accrual loans | $ 308 | $ 345 |
Loans (Non-accrual Loans, Loans
Loans (Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | $ 12,275,000 | $ 5,796,000 |
Loans past due 90 days or more and still accruing | 24,000 | 3,264,000 |
Total non-performing loans | 2,482,452,000 | 1,814,488,000 |
Other real estate owned | 0 | 0 |
Total non-performing assets | 12,299,000 | 9,060,000 |
Non-Accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 12,275,000 | 5,796,000 |
Non-Performing Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-performing loans | 12,299,000 | 9,060,000 |
SBL Non Real Estate [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 2,935,000 | 3,693,000 |
Total non-performing loans | 293,488,000 | 84,579,000 |
SBL Non Real Estate [Member] | Non-Accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 2,935,000 | 3,693,000 |
SBL Commercial Mortgage [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 7,517,000 | 1,047,000 |
Total non-performing loans | 270,264,000 | 218,110,000 |
SBL Commercial Mortgage [Member] | Non-Accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 7,517,000 | 1,047,000 |
SBL Construction [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 711,000 | 711,000 |
Total non-performing loans | 27,169,000 | 45,310,000 |
SBL Construction [Member] | Non-Accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 711,000 | 711,000 |
Direct Lease Financing [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 804,000 | |
Total non-performing loans | 430,675,000 | 434,460,000 |
Direct Lease Financing [Member] | Non-Accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | 804,000 | |
Consumer Loan [Member] | Non-Accrual Loans [Member] | ||
Financing Receivables Past Due and Other Real Estate Owned [Line Items] | ||
Total non-accrual loans | $ 308,000 | $ 345,000 |
Loans (Loans Modified And Consi
Loans (Loans Modified And Considered Troubled Debt Restructurings) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 11 | 11 |
Pre-modification recorded investment | $ 1,661 | $ 2,084 |
Post-modification recorded investment | $ 1,661 | $ 2,084 |
SBL Non Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 8 | 8 |
Pre-modification recorded investment | $ 927 | $ 1,309 |
Post-modification recorded investment | $ 927 | $ 1,309 |
Direct Lease Financing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 1 | 1 |
Pre-modification recorded investment | $ 260 | $ 286 |
Post-modification recorded investment | $ 260 | $ 286 |
Consumer Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number | loan | 2 | 2 |
Pre-modification recorded investment | $ 474 | $ 489 |
Post-modification recorded investment | $ 474 | $ 489 |
Loans (Loans Modified As Troubl
Loans (Loans Modified As Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | $ 283 | $ 337 |
Combined rate and maturity | 1,378 | 1,747 |
SBL Non Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | 23 | 51 |
Combined rate and maturity | 904 | 1,258 |
Direct Lease Financing [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Extended maturity | 260 | 286 |
Consumer Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Combined rate and maturity | $ 474 | $ 489 |
Loans (Effect Of The Adoption O
Loans (Effect Of The Adoption Of CECL) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 15,727 | $ 10,238 | $ 10,360 | $ 8,653 | ||
Allowance for credit losses on off-balance sheet credit | 570,000 | |||||
SBL Non Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 4,801 | 4,985 | 5,330 | 4,636 | ||
SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 3,552 | 1,472 | 1,256 | 941 | ||
SBL Construction [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 423 | 432 | 391 | 250 | ||
Direct Lease Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 5,847 | 2,426 | 2,361 | 2,025 | ||
Advisor Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 199 | |||||
Other Specialty Lending [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 148 | 12 | 12 | 60 | ||
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 43 | 40 | 231 | 108 | ||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 318 | $ 268 | $ 240 | |||
SBA Loans Purchased For CRA Purposes [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 34,700 | |||||
Incurred Loss Method [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 10,238 | |||||
Total allowance for credit losses | $ 10,238 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.56% | |||||
Incurred Loss Method [Member] | SBL Non Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 4,914 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 8.33% | |||||
Incurred Loss Method [Member] | SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 1,458 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.71% | |||||
Incurred Loss Method [Member] | SBL Construction [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 432 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.95% | |||||
Incurred Loss Method [Member] | Direct Lease Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 2,426 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.56% | |||||
Incurred Loss Method [Member] | SBLOC [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 440 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.05% | |||||
Incurred Loss Method [Member] | IBLOC [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 113 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.08% | |||||
Incurred Loss Method [Member] | Advisor Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.00% | |||||
Incurred Loss Method [Member] | Other Specialty Lending [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | [1] | $ 97 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | [1] | 0.39% | ||||
Incurred Loss Method [Member] | Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 40 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.88% | |||||
Incurred Loss Method [Member] | Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 318 | |||||
ASU 2016-13 [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | 15,727 | $ 12,874 | ||||
Allowance for credit losses on off-balance sheet credit | 570 | 569 | ||||
Total allowance for credit losses | $ 16,297 | $ 13,443 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.63% | 0.71% | ||||
ASU 2016-13 [Member] | SBL Non Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 4,801 | $ 4,766 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 1.64% | 8.08% | ||||
ASU 2016-13 [Member] | SBL Commercial Mortgage [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 3,552 | $ 2,009 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 1.31% | 0.98% | ||||
ASU 2016-13 [Member] | SBL Construction [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 423 | $ 571 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 1.56% | 1.26% | ||||
ASU 2016-13 [Member] | Direct Lease Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 5,847 | $ 4,788 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 1.35% | 1.10% | ||||
ASU 2016-13 [Member] | SBLOC [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 534 | $ 440 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.00% | 0.05% | ||||
ASU 2016-13 [Member] | IBLOC [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 180 | $ 72 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.00% | 0.05% | ||||
ASU 2016-13 [Member] | Advisor Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 199 | |||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.75% | 0.00% | ||||
ASU 2016-13 [Member] | Other Specialty Lending [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | [1] | $ 148 | $ 170 | |||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | [1] | 6.75% | 0.40% | |||
ASU 2016-13 [Member] | Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable, Allowance for Credit Losses | $ 43 | $ 58 | ||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 1.13% | 1.27% | ||||
ASU 2016-13 [Member] | Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Financing Receivable Allowance For Credit Losses, Percent Of Segment | 0.00% | |||||
[1] | Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $ 151,000 and $ 882,000 at September 30, 2020 and December 31, 2019, respectively. |
Loans (Summary Of Gross Loans H
Loans (Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | $ 495,337 | ||
2019 | 196,604 | ||
2018 | 140,621 | ||
2017 | 85,291 | ||
2016 | 63,317 | ||
Prior | 75,346 | ||
Revolving loans at amortized cost | 1,432,244 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,488,760 | $ 778,200 | $ 518,300 |
SBL Non Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 215,270 | ||
2019 | 9,584 | ||
2018 | 13,709 | ||
2017 | 7,438 | ||
2016 | 9,498 | ||
Prior | 13,294 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 268,793 | ||
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 27,292 | ||
2019 | 67,566 | ||
2018 | 48,134 | ||
2017 | 39,773 | ||
2016 | 32,884 | ||
Prior | 43,711 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 259,360 | ||
SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 3,061 | ||
2019 | 14,078 | ||
2018 | 9,595 | ||
2016 | 711 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 27,445 | ||
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 219,661 | ||
2019 | 101,892 | ||
2018 | 62,815 | ||
2017 | 31,023 | ||
2016 | 13,141 | ||
Prior | 2,143 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 430,675 | ||
SBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 1,072,887 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,072,887 | ||
IBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 359,357 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 359,357 | ||
Other Specialty Lending [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 2,653 | ||
2019 | 3,484 | ||
2018 | 6,368 | ||
2017 | 7,042 | ||
2016 | 7,083 | ||
Prior | 12,817 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 39,447 | ||
Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 26,986 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 26,986 | ||
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 414 | ||
2017 | 15 | ||
Prior | 3,381 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,810 | ||
Non-Rated [Member] | SBL Non Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 208,252 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 208,252 | ||
Non-Rated [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 9,681 | ||
2019 | 2,938 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 12,619 | ||
Non-Rated [Member] | SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 206 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 206 | ||
Non-Rated [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 11,315 | ||
2019 | 3,065 | ||
2018 | 2,437 | ||
2017 | 1,256 | ||
2016 | 587 | ||
Prior | 18 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 18,678 | ||
Non-Rated [Member] | SBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 7,897 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 7,897 | ||
Non-Rated [Member] | IBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 97,017 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 97,017 | ||
Non-Rated [Member] | Other Specialty Lending [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 2,537 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,537 | ||
Non-Rated [Member] | Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 11,717 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 11,717 | ||
Non-Rated [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 414 | ||
2017 | 15 | ||
Prior | 1,617 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,046 | ||
Pass [Member] | SBL Non Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 7,018 | ||
2019 | 9,541 | ||
2018 | 12,557 | ||
2017 | 6,745 | ||
2016 | 7,654 | ||
Prior | 10,916 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 54,431 | ||
Pass [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 17,611 | ||
2019 | 64,628 | ||
2018 | 48,134 | ||
2017 | 39,773 | ||
2016 | 32,808 | ||
Prior | 36,011 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 238,965 | ||
Pass [Member] | SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 2,855 | ||
2019 | 14,078 | ||
2018 | 9,595 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 26,528 | ||
Pass [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 204,670 | ||
2019 | 98,781 | ||
2018 | 59,875 | ||
2017 | 28,921 | ||
2016 | 11,990 | ||
Prior | 2,086 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 406,323 | ||
Pass [Member] | SBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 1,064,990 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,064,990 | ||
Pass [Member] | IBLOC [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Revolving loans at amortized cost | 262,340 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 262,340 | ||
Pass [Member] | Other Specialty Lending [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 116 | ||
2019 | 3,484 | ||
2018 | 6,368 | ||
2017 | 7,042 | ||
2016 | 7,083 | ||
Prior | 12,817 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 36,910 | ||
Pass [Member] | Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 15,269 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 15,269 | ||
Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Prior | 1,456 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 1,456 | ||
Special Mention [Member] | SBL Non Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2018 | 1,132 | ||
2016 | 520 | ||
Prior | 716 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 2,368 | ||
Special Mention [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Prior | 259 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 259 | ||
Special Mention [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2016 | 8 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 8 | ||
Substandard [Member] | SBL Non Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2019 | 43 | ||
2018 | 20 | ||
2017 | 693 | ||
2016 | 1,324 | ||
Prior | 1,662 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 3,742 | ||
Substandard [Member] | SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2016 | 76 | ||
Prior | 7,441 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 7,517 | ||
Substandard [Member] | SBL Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2016 | 711 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 711 | ||
Substandard [Member] | Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
2020 | 3,676 | ||
2019 | 46 | ||
2018 | 503 | ||
2017 | 846 | ||
2016 | 556 | ||
Prior | 39 | ||
Financing Receivable, before Allowance for Credit Loss, Total | 5,666 | ||
Substandard [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Prior | 308 | ||
Financing Receivable, before Allowance for Credit Loss, Total | $ 308 |
Loans (Changes In Allowance For
Loans (Changes In Allowance For Loan And Lease Losses By Loan Category) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | $ 10,238 | $ 8,653 | $ 8,653 |
CECL adjustment | 2,637 | ||
Charge-offs | (3,528) | (1,389) | (2,993) |
Recoveries | 584 | 146 | 178 |
Provision (credit) | 5,796 | 2,950 | 4,400 |
Ending balance | 15,727 | 10,360 | 10,238 |
Ending balance: Individually evaluated for expected credit loss | 2,897 | 3,483 | 3,142 |
Ending balance: Collectively evaluated for expected credit loss | 12,830 | 6,877 | 7,096 |
Loans [Abstract] | |||
Loans: Ending Balance | 2,488,760 | 1,683,377 | 1,824,245 |
Ending balance: Individually evaluated for impairment | 12,819 | 7,558 | 6,793 |
Ending balance: Collectively evaluated for impairment | 2,475,941 | 1,675,819 | 1,817,452 |
SBL Non Real Estate [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 4,985 | 4,636 | 4,636 |
CECL adjustment | (220) | ||
Charge-offs | (1,350) | (995) | (1,362) |
Recoveries | 82 | 94 | 125 |
Provision (credit) | 1,304 | 1,595 | 1,586 |
Ending balance | 4,801 | 5,330 | 4,985 |
Ending balance: Individually evaluated for expected credit loss | 1,818 | 3,037 | 2,961 |
Ending balance: Collectively evaluated for expected credit loss | 2,983 | 2,293 | 2,024 |
Loans [Abstract] | |||
Loans: Ending Balance | 293,488 | 84,181 | 84,579 |
Ending balance: Individually evaluated for impairment | 3,220 | 4,250 | 4,139 |
Ending balance: Collectively evaluated for impairment | 290,268 | 79,931 | 80,440 |
SBL Commercial Mortgage [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 1,472 | 941 | 941 |
CECL adjustment | 537 | ||
Provision (credit) | 1,543 | 315 | 531 |
Ending balance | 3,552 | 1,256 | 1,472 |
Ending balance: Individually evaluated for expected credit loss | 1,010 | 71 | 136 |
Ending balance: Collectively evaluated for expected credit loss | 2,542 | 1,185 | 1,336 |
Loans [Abstract] | |||
Loans: Ending Balance | 270,264 | 209,008 | 218,110 |
Ending balance: Individually evaluated for impairment | 7,517 | 458 | 1,047 |
Ending balance: Collectively evaluated for impairment | 262,747 | 208,550 | 217,063 |
SBL Construction [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 432 | 250 | 250 |
CECL adjustment | 139 | ||
Provision (credit) | (148) | 141 | 182 |
Ending balance | 423 | 391 | 432 |
Ending balance: Individually evaluated for expected credit loss | 26 | 35 | 36 |
Ending balance: Collectively evaluated for expected credit loss | 397 | 356 | 396 |
Loans [Abstract] | |||
Loans: Ending Balance | 27,169 | 38,116 | 45,310 |
Ending balance: Individually evaluated for impairment | 711 | 711 | 711 |
Ending balance: Collectively evaluated for impairment | 26,458 | 37,405 | 44,599 |
Direct Lease Financing [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 2,426 | 2,025 | 2,025 |
CECL adjustment | 2,362 | ||
Charge-offs | (2,178) | (391) | (528) |
Recoveries | 502 | 51 | 51 |
Provision (credit) | 2,735 | 676 | 878 |
Ending balance | 5,847 | 2,361 | 2,426 |
Ending balance: Individually evaluated for expected credit loss | 43 | 136 | |
Ending balance: Collectively evaluated for expected credit loss | 5,804 | 2,225 | 2,426 |
Loans [Abstract] | |||
Loans: Ending Balance | 430,675 | 412,755 | 434,460 |
Ending balance: Individually evaluated for impairment | 804 | 424 | 286 |
Ending balance: Collectively evaluated for impairment | 429,871 | 412,331 | 434,174 |
SBLOC/IBLOC [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 553 | 393 | 393 |
CECL adjustment | (41) | ||
Provision (credit) | 202 | 118 | 160 |
Ending balance | 714 | 511 | 553 |
Ending balance: Collectively evaluated for expected credit loss | 714 | 511 | 553 |
Loans [Abstract] | |||
Loans: Ending Balance | 1,428,253 | 920,463 | 1,024,420 |
Ending balance: Collectively evaluated for impairment | 1,428,253 | 920,463 | 1,024,420 |
Advisor Financing [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | |||
CECL adjustment | |||
Charge-offs | |||
Recoveries | |||
Provision (credit) | 199 | ||
Ending balance | 199 | ||
Ending balance: Individually evaluated for expected credit loss | |||
Ending balance: Collectively evaluated for expected credit loss | 199 | ||
Loans [Abstract] | |||
Loans: Ending Balance | 26,600 | ||
Ending balance: Individually evaluated for impairment | |||
Ending balance: Collectively evaluated for impairment | 26,600 | ||
Other Specialty Lending [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 12 | 60 | 60 |
CECL adjustment | 158 | ||
Provision (credit) | (22) | (48) | (48) |
Ending balance | 148 | 12 | 12 |
Ending balance: Collectively evaluated for expected credit loss | 148 | 12 | 12 |
Loans [Abstract] | |||
Loans: Ending Balance | 2,194 | 3,167 | 3,055 |
Ending balance: Collectively evaluated for impairment | 2,194 | 3,167 | 3,055 |
Consumer [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 40 | 108 | 108 |
CECL adjustment | 20 | ||
Charge-offs | (3) | (1,103) | |
Recoveries | 1 | 2 | |
Provision (credit) | (17) | 125 | 1,033 |
Ending balance | 43 | 231 | 40 |
Ending balance: Individually evaluated for expected credit loss | 204 | 9 | |
Ending balance: Collectively evaluated for expected credit loss | 43 | 27 | 31 |
Loans [Abstract] | |||
Loans: Ending Balance | 3,809 | 6,388 | 4,554 |
Ending balance: Individually evaluated for impairment | 567 | 1,715 | 610 |
Ending balance: Collectively evaluated for impairment | 3,242 | 4,673 | 3,944 |
Unallocated [Member] | |||
Changes in allowance for loan and lease losses by loan category [Abstract] | |||
Beginning balance | 318 | 240 | 240 |
CECL adjustment | (318) | ||
Provision (credit) | 28 | 78 | |
Ending balance | 268 | 318 | |
Ending balance: Collectively evaluated for expected credit loss | 268 | 318 | |
Loans [Abstract] | |||
Loans: Ending Balance | 6,308 | 9,299 | 9,757 |
Ending balance: Collectively evaluated for impairment | $ 6,308 | $ 9,299 | $ 9,757 |
Loans (Delinquent Loans By Loan
Loans (Delinquent Loans By Loan Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | $ 12,275 | $ 5,796 | |
Total past due | 23,292 | 16,269 | |
Current | 2,465,468 | 1,807,976 | |
Total loans, net of unamortized loan fees and costs | 2,488,760 | 1,824,245 | $ 1,683,377 |
30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 8,838 | 2,334 | |
60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,155 | 4,875 | |
90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 24 | 3,264 | |
SBL Non Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 2,935 | 3,693 | |
Total past due | 6,006 | 3,854 | |
Current | 287,482 | 80,725 | |
Total loans, net of unamortized loan fees and costs | 293,488 | 84,579 | 84,181 |
SBL Non Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,631 | 36 | |
SBL Non Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 440 | 125 | |
SBL Commercial Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 7,517 | 1,047 | |
Total past due | 10,454 | 3,030 | |
Current | 259,810 | 215,080 | |
Total loans, net of unamortized loan fees and costs | 270,264 | 218,110 | 209,008 |
SBL Commercial Mortgage [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,087 | ||
SBL Commercial Mortgage [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 850 | 1,983 | |
SBL Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 711 | 711 | |
Total past due | 711 | 711 | |
Current | 26,458 | 44,599 | |
Total loans, net of unamortized loan fees and costs | 27,169 | 45,310 | 38,116 |
Direct Lease Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 804 | ||
Total past due | 2,277 | 7,964 | |
Current | 428,398 | 426,496 | |
Total loans, net of unamortized loan fees and costs | 430,675 | 434,460 | 412,755 |
Direct Lease Financing [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 946 | 2,008 | |
Direct Lease Financing [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 503 | 2,692 | |
Direct Lease Financing [Member] | 90+ Days Still Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 24 | 3,264 | |
SBLOC/IBLOC [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,536 | 365 | |
Current | 1,424,717 | 1,024,055 | |
Total loans, net of unamortized loan fees and costs | 1,428,253 | 1,024,420 | 920,463 |
SBLOC/IBLOC [Member] | 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,174 | 290 | |
SBLOC/IBLOC [Member] | 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 362 | 75 | |
Advisor Financing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 26,600 | ||
Total loans, net of unamortized loan fees and costs | 26,600 | ||
Other Specialty Lending [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 2,194 | 3,055 | |
Total loans, net of unamortized loan fees and costs | 2,194 | 3,055 | $ 3,167 |
Consumer - Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 308 | 345 | |
Current | 650 | 1,137 | |
Total loans, net of unamortized loan fees and costs | 650 | 1,137 | |
Consumer - Home Equity [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Non-accrual | 308 | 345 | |
Total past due | 308 | 345 | |
Current | 2,851 | 3,072 | |
Total loans, net of unamortized loan fees and costs | 3,159 | 3,417 | |
Unamortized Loan Fees And Costs [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Current | 6,308 | 9,757 | |
Total loans, net of unamortized loan fees and costs | $ 6,308 | $ 9,757 |
Loans (Loans By Categories) (De
Loans (Loans By Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Loans by categories [Abstract] | ||||
Total loans | $ 2,488,760 | $ 1,824,245 | $ 1,683,377 | |
SBL Non Real Estate [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 293,488 | 84,579 | 84,181 | |
SBL Commercial Mortgage [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 270,264 | 218,110 | 209,008 | |
SBL Construction [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 27,169 | 45,310 | 38,116 | |
Direct Lease Financing [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 430,675 | 434,460 | 412,755 | |
SBLOC/IBLOC [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 1,428,253 | 1,024,420 | 920,463 | |
Other Specialty Lending [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 2,194 | 3,055 | $ 3,167 | |
Consumer Loan [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 4,554 | |||
Unamortized Loan Fees And Costs [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | $ 6,308 | 9,757 | ||
Pass [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 1,698,263 | |||
Pass [Member] | SBL Non Real Estate [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 76,108 | |||
Pass [Member] | SBL Commercial Mortgage [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 208,809 | |||
Pass [Member] | SBL Construction [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 44,599 | |||
Pass [Member] | Direct Lease Financing [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 420,289 | |||
Pass [Member] | SBLOC/IBLOC [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 942,858 | |||
Pass [Member] | Other Specialty Lending [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 3,055 | |||
Pass [Member] | Consumer Loan [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 2,545 | |||
Special Mention [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 5,294 | |||
Special Mention [Member] | SBL Non Real Estate [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 3,045 | |||
Special Mention [Member] | SBL Commercial Mortgage [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 2,249 | |||
Substandard [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 19,855 | |||
Substandard [Member] | SBL Non Real Estate [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 4,430 | |||
Substandard [Member] | SBL Commercial Mortgage [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 5,577 | |||
Substandard [Member] | SBL Construction [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 711 | |||
Substandard [Member] | Direct Lease Financing [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 8,792 | |||
Substandard [Member] | Consumer Loan [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | 345 | |||
Unrated Not Subject To Review [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | 100,833 | ||
Unrated Not Subject To Review [Member] | SBL Non Real Estate [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | 996 | ||
Unrated Not Subject To Review [Member] | SBL Commercial Mortgage [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | 1,475 | ||
Unrated Not Subject To Review [Member] | Direct Lease Financing [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | 5,379 | ||
Unrated Not Subject To Review [Member] | SBLOC/IBLOC [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | 81,562 | ||
Unrated Not Subject To Review [Member] | Consumer Loan [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | 1,664 | ||
Unrated Not Subject To Review [Member] | Unamortized Loan Fees And Costs [Member] | ||||
Loans by categories [Abstract] | ||||
Total loans | [1] | $ 9,757 | ||
[1] | For information on targeted loan review thresholds see “Allowance for Loan Losses” in the 2019 Form 10-K in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Transactions With Affiliates (D
Transactions With Affiliates (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Deposits | $ 5,388,762,000 | $ 5,388,762,000 | $ 5,052,030,000 | ||
Legal expense | 994,000 | $ 1,466,000 | 4,136,000 | $ 4,324,000 | |
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Deposits | 0 | 0 | 0 | ||
Directors, Executive Officers, Principal Stockholders and Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 3,100,000 | 3,100,000 | 2,300,000 | ||
J.V.B Financial Group LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amount of purchases from affiliates | 0 | 1,400,000 | |||
Securities under agreements to resell, outstanding amount | $ 0 | 0 | $ 0 | ||
Duane Morris LLP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Legal expense | $ 1,400,000 | $ 915,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | Dec. 30, 2014USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 | ||||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | ||||
Transfers into level 3 | $ 100,700,000 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | |||||
Cash and cash equivalents | 301,000,000 | 301,000,000 | $ 944,500,000 | |||
Collateral dependent loans | 12,800,000 | 12,800,000 | ||||
Specific reserves and other write downs on impaired loans | $ 2,900,000 | $ 2,900,000 | ||||
Number of troubled debt restructured loans | loan | 11 | 11 | ||||
Troubled debt restructured loans balance | $ 1,661,000 | 2,084,000 | ||||
Troubled debt restructured loans, specific reserve | $ 479,000 | 479,000 | ||||
Other real estate owned | 0 | $ 0 | 0 | |||
Minimum [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Estimated selling costs | 7.00% | |||||
Maximum [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Estimated selling costs | 10.00% | |||||
Walnut Street [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Loans, face value | $ 267,600,000 | |||||
Proceeds from Sale of Loans Receivable | 209,600,000 | |||||
Notes Payable | $ 193,600,000 | |||||
Number of notes | loan | 2 | |||||
Walnut Street [Member] | Senior Notes [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior Notes | $ 178,200,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | |||||
Walnut Street [Member] | Junior Subordinated Debt [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Junior Subordinated Notes | $ 15,400,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||
Fair Value, Measurements, Nonrecurring [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Collateral dependent loans | [1] | $ 9,922,000 | $ 9,922,000 | $ 3,651,000 | ||
[1] | The method of valuation approach for the collateral dependent loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7 % to 10 % for estimated selling costs. Intangible assets are valued based upon internal analyses. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount And Estimated Fair Value Of Assets And Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||
Investment securities available-for-sale | $ 1,264,903 | $ 1,320,692 | |
Investment securities, held-to-maturity | 84,387 | ||
Commercial loans, at fair value | 1,850 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | |||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||
Securities sold under agreements to repurchase | 42 | 82 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||
Investment securities available-for-sale | 1,080,555 | 1,203,359 | |
Investment securities, held-to-maturity | 75,850 | ||
Interest rate swaps, liability | 2,465 | 232 | |
Demand and interest checking | 4,882,834 | 4,402,740 | |
Savings and money market | 505,928 | 174,290 | |
Senior debt | 101,910 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||
Investment securities available-for-sale | 184,348 | 117,333 | |
Investment securities, held-to-maturity | 7,152 | ||
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,368 | 5,342 | |
Commercial loans, at fair value | 1,849,947 | 1,180,546 | |
Loans, net of deferred loan fees and costs | 2,486,275 | 1,826,154 | |
Investment in unconsolidated entity | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | [1] | 122,253 | 140,657 |
Time deposits | 475,000 | ||
Subordinated debentures | 8,235 | 9,736 | |
Carrying Amount [Member] | |||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||
Investment securities available-for-sale | 1,264,903 | 1,320,692 | |
Investment securities, held-to-maturity | 84,387 | ||
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,368 | 5,342 | |
Commercial loans, at fair value | 1,849,947 | 1,180,546 | |
Loans, net of deferred loan fees and costs | 2,488,760 | 1,824,245 | |
Investment in unconsolidated entity | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | 122,253 | 140,657 | |
Interest rate swaps, liability | 2,465 | 232 | |
Demand and interest checking | 4,882,834 | 4,402,740 | |
Savings and money market | 505,928 | 174,290 | |
Time deposits | 475,000 | ||
Senior debt | 98,222 | ||
Subordinated debentures | 13,401 | 13,401 | |
Securities sold under agreements to repurchase | 42 | 82 | |
Estimated Fair Value [Member] | |||
Carrying amount and estimated fair value of assets and liabilities [Abstract] | |||
Investment securities available-for-sale | 1,264,903 | 1,320,692 | |
Investment securities, held-to-maturity | 83,002 | ||
Federal Home Loan Bank and Atlantic Central Bankers Bank stock | 1,368 | 5,342 | |
Commercial loans, at fair value | 1,849,947 | 1,180,546 | |
Loans, net of deferred loan fees and costs | 2,486,275 | 1,826,154 | |
Investment in unconsolidated entity | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | 122,253 | 140,657 | |
Interest rate swaps, liability | 2,465 | 232 | |
Demand and interest checking | 4,882,834 | 4,402,740 | |
Savings and money market | 505,928 | 174,290 | |
Time deposits | 475,000 | ||
Senior debt | 101,910 | ||
Subordinated debentures | 8,235 | 9,736 | |
Securities sold under agreements to repurchase | $ 42 | $ 82 | |
[1] | Assets held-for-sale from discontinued operations are valued using discounted cash flow by an independent valuation consultant using loan performance, other credit characteristics and market interest rate comparisons. Changes in those factors could change the valuation. |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured At Fair Value On A Recurring And Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | ||
Assets measured at fair value on a recurring basis [Abstract] | |||
Fair value | $ 1,264,903 | $ 1,320,692 | |
Commercial loans, at fair value | 1,850 | ||
Assets measured on a nonrecurring basis [Abstract] | |||
Collateral dependent loans | 12,800 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
U.S. Government agency securities | 48,377 | 52,910 | |
Asset-backed securities | 238,179 | 244,349 | |
Obligations of states and political subdivisions | 58,458 | 65,568 | |
Residential mortgage-backed securities | 285,701 | 336,596 | |
Collateralized mortgage obligation securities | 169,213 | 222,727 | |
Commercial mortgage-backed securities | 383,281 | 398,542 | |
Corporate debt securities | 81,694 | ||
Fair value | 1,264,903 | 1,320,692 | |
Commercial loans, at fair value | 1,849,947 | 1,180,546 | |
Investment in unconsolidated entity | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | 122,253 | 140,657 | |
Interest rate swaps, liability | 2,465 | 232 | |
Total assets | 3,266,421 | 2,680,817 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Collateral dependent loans | [1] | 9,922 | 3,651 |
Intangible assets | 2,315 | ||
Assets nonrecurring | 5,966 | ||
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Fair value | 1,080,555 | 1,203,359 | |
Interest rate swaps, liability | 2,465 | 232 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
U.S. Government agency securities | 48,377 | 52,910 | |
Asset-backed securities | 238,179 | 244,349 | |
Obligations of states and political subdivisions | 58,458 | 65,568 | |
Residential mortgage-backed securities | 285,701 | 336,596 | |
Collateralized mortgage obligation securities | 169,213 | 222,727 | |
Commercial mortgage-backed securities | 280,627 | 281,209 | |
Fair value | 1,080,555 | 1,203,359 | |
Interest rate swaps, liability | 2,465 | 232 | |
Total assets | 1,078,090 | 1,203,127 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Corporate debt securities | [2] | 75,538 | |
Fair value | 184,348 | 117,333 | |
Commercial loans, at fair value | 1,849,947 | 1,180,546 | |
Investment in unconsolidated entity | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | [3] | 122,253 | 140,657 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets measured at fair value on a recurring basis [Abstract] | |||
Commercial mortgage-backed securities | 102,654 | 117,333 | |
Corporate debt securities | 81,694 | ||
Fair value | 184,348 | 117,333 | |
Commercial loans, at fair value | 1,849,947 | 1,180,546 | |
Investment in unconsolidated entity | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | 122,253 | 140,657 | |
Total assets | 2,188,331 | 1,477,690 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Collateral dependent loans | [1] | $ 9,922 | 3,651 |
Intangible assets | 2,315 | ||
Assets nonrecurring | $ 5,966 | ||
Minimum [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Estimated Selling Costs | 7.00% | ||
Maximum [Member] | |||
Assets measured on a nonrecurring basis [Abstract] | |||
Estimated Selling Costs | 10.00% | ||
[1] | The method of valuation approach for the collateral dependent loans was the market value approach based upon appraisals of the underlying collateral by external appraisers, reduced by 7 % to 10 % for estimated selling costs. Intangible assets are valued based upon internal analyses. | ||
[2] | Corporate debt securities consist of three AAA rated privately placed debt structures backed by investment grade corporate debt each with over 50 % credit enhancement. Each of these securities has a coupon of 3 Month LIBOR + 3.00 %. Price indications are obtained from a broker/dealer with significant experience in trading and evaluating these securities. Changes in either investor yield requirements for relatively illiquid securities, or credit risk could affect the price indications. | ||
[3] | Assets held-for-sale from discontinued operations are valued using discounted cash flow by an independent valuation consultant using loan performance, other credit characteristics and market interest rate comparisons. Changes in those factors could change the valuation. |
Fair Value Measurements (Change
Fair Value Measurements (Changes In Company's Level 3 Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Changes in Company's Level 3 assets [Roll Forward] | |||
Transfers into level 3 | $ 100,700 | ||
Assets Held-For-Sale [Member] | |||
Changes in Company's Level 3 assets [Roll Forward] | |||
Beginning balance | $ 140,657 | $ 197,831 | |
Total gains or (losses) (realized/unrealized) Included in earnings | (2,332) | (487) | |
Purchases, issuances, sales, settlements and charge-ofs | |||
Issuances | 2,046 | 2,125 | |
Sales | (1,252) | (7,136) | |
Settlements | (16,571) | (49,021) | |
Charge-offs | (295) | (2,655) | |
Ending balance | 122,253 | 140,657 | |
Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above | (1,899) | (487) | |
Investment In Unconsolidated Entity [Member] | |||
Changes in Company's Level 3 assets [Roll Forward] | |||
Beginning balance | 39,154 | 59,273 | |
Total gains or (losses) (realized/unrealized) Included in earnings | (45) | ||
Purchases, issuances, sales, settlements and charge-ofs | |||
Settlements | (7,326) | (20,119) | |
Ending balance | 31,783 | 39,154 | |
Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above | (45) | ||
Available For Sale Securities [Member] | |||
Changes in Company's Level 3 assets [Roll Forward] | |||
Beginning balance | 117,333 | 24,390 | |
Transfers into level 3 | 100,664 | ||
Reclass of held-to-maturity securities to available-for-sale | 85,151 | ||
Total gains or (losses) (realized/unrealized) Included in other comprehensive gain (loss) | 2,215 | 688 | |
Purchases, issuances, sales, settlements and charge-ofs | |||
Settlements | (20,351) | (8,409) | |
Ending balance | 184,348 | 117,333 | |
Commercial Loans At Fair Value [Member] | |||
Changes in Company's Level 3 assets [Roll Forward] | |||
Beginning balance | 1,180,546 | 688,471 | |
Total gains or (losses) (realized/unrealized) Included in earnings | (3,180) | 25,986 | |
Purchases, issuances, sales, settlements and charge-ofs | |||
Issuances | 683,696 | 1,795,376 | |
Sales | (1,329,287) | ||
Settlements | (11,115) | ||
Ending balance | 1,849,947 | 1,180,546 | |
Total gains or (losses) year to date included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date as shown above | $ (3,054) | $ 963 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Inputs, Assets, Quantitative Information) (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020USD ($)itemsecurity | Dec. 31, 2019USD ($)item | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale | $ | $ 1,850 | |||
Investment in unconsolidated entity | $ | 31,783 | $ 39,154 | ||
Paycheck Protection Program Loans [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, net of deferred loan fees and costs | $ | $ 207,900 | |||
Loans, interest rate | 1.00% | |||
Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, net of deferred loan fees and costs, measurement input | 0.0311 | |||
Assets held-for-sale from discontinued operations, measurement input | 0.0349 | |||
Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, net of deferred loan fees and costs, measurement input | 0.0693 | |||
Weighted Average [Member] | Measurement Input, Default Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment in unconsolidated entity, measurement input | 0.0100 | 0.0100 | ||
Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, net of deferred loan fees and costs, measurement input | [1] | 0.0263 | ||
Investment in unconsolidated entity, measurement input | 0.0393 | [2] | 0.0584 | |
Assets held-for-sale from discontinued operations, measurement input | [3] | 0.0419 | ||
Subordinated debentures, measurement input | 0.0801 | |||
Commercial Mortgage-backed Securities [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | 0.0419 | [4] | 0.0405 | |
Commercial Mortgage-backed Securities [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | 0.0829 | [4] | 0.0818 | |
Commercial Mortgage-backed Securities [Member] | Weighted Average [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | [4] | 0.0472 | ||
Insurance Liquidating Trust Preferred Security [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | 0.0747 | [5] | 0.0801 | |
Loans, Net Of Deferred Loan Fees And Costs [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, net of deferred loan fees and costs, measurement input | [1] | 0.0100 | ||
Loans, Net Of Deferred Loan Fees And Costs [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, net of deferred loan fees and costs, measurement input | [1] | 0.0700 | ||
Commercial - SBA [Member] | Minimum [Member] | Measurement Input, Offered Price [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | 100 | [6] | 101.6 | |
Commercial - SBA [Member] | Maximum [Member] | Measurement Input, Offered Price [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | 117.5 | [6] | 107.9 | |
Commercial - SBA [Member] | Weighted Average [Member] | Measurement Input, Offered Price [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | [6] | 105.60 | ||
Commercial - Fixed [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | 0.0501 | [7] | 0.0433 | |
Commercial - Fixed [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | 0.0730 | [7] | 0.0713 | |
Commercial - Fixed [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | [7] | 0.0590 | ||
Commercial - Floating [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | 0.0300 | [8] | 0.0451 | |
Commercial - Floating [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | 0.0780 | [8] | 0.0681 | |
Commercial - Floating [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale, measurement input | [8] | 0.0481 | ||
Investment In Unconsolidated Entity [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Constant default rate on cash flowing loans percent | 1.00% | |||
Assets Held-For-Sale [Member] | Minimum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets held-for-sale from discontinued operations, measurement input | [3] | 0.0273 | ||
Assets Held-For-Sale [Member] | Maximum [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets held-for-sale from discontinued operations, measurement input | [3] | 0.0758 | ||
Subordinated Debentures [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Number Of Debt Instruments | 2 | |||
Subordinated Debentures [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | |||
Subordinated Debentures [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Subordinated debentures, measurement input | [9] | 0.0747 | ||
Corporate Debt Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Number Of AAA Rated Privately Placed Debt Structures | security | 3 | |||
Credit Enhancement Percent | 50.00% | |||
Corporate Debt Securities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Securities, Basis Spread on Variable Rate | 0.03% | |||
Corporate Debt Securities [Member] | Minimum [Member] | Measurement Input, Price Indications [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | [10] | 100.55 | ||
Corporate Debt Securities [Member] | Maximum [Member] | Measurement Input, Price Indications [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | [10] | 101 | ||
Corporate Debt Securities [Member] | Weighted Average [Member] | Measurement Input, Price Indications [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale, measurement input | [10] | 100.90 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Corporate debt securities | $ | [10] | $ 75,538 | ||
Federal Home Loan Bank And Atlantic Central Bankers Bank stock | $ | 1,368 | $ 5,342 | ||
Loans, net of deferred loan fees and costs | $ | [1] | 2,486,275 | 1,826,154 | |
Commercial loans held for sale | $ | 1,849,947 | 1,180,546 | ||
Investment in unconsolidated entity | $ | [2] | 31,783 | 39,154 | |
Assets held-for-sale from discontinued operations | $ | [3] | 122,253 | 140,657 | |
Subordinated debentures | $ | [9] | 9,736 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage-backed Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale | $ | [4] | 102,654 | 117,333 | |
Significant Unobservable Inputs (Level 3) [Member] | Insurance Liquidating Trust Preferred Security [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale | $ | [5] | 6,156 | 7,152 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - SBA [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale | $ | [6] | 250,958 | 220,358 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - Fixed [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale | $ | [7] | 84,901 | 88,986 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial - Floating [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial loans held for sale | $ | [8] | 1,514,088 | $ 871,202 | |
Significant Unobservable Inputs (Level 3) [Member] | Subordinated Debentures [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Subordinated debentures | $ | [9] | $ 8,235 | ||
[1] | Loans, net of deferred fees and costs are valued using discounted cash flow analysis. Discount rates are based upon available information for estimated current origination rates for each loan type. Origination rates may fluctuate based upon changes in the risk free (Treasury) rate and credit experience for each loan type. At September 30, 2020, the balance included $ 207.9 million of Paycheck Protection Program loans, which bear interest at 1 %, but also earn fees. | |||
[2] | Investment in unconsolidated entity is in non-accrual status, and changes in its value, determined by discounted cash flows, are recorded in the income statement under “C hange in value of investment in unconsolidated entity”. A constant default rate of 1 %, net of recoveries, on cash flowing loans was utilized. Changes in market interest rates, credit quality or payment experience could result in a change in the current valuation. | |||
[3] | Assets held-for-sale from discontinued operations are valued using discounted cash flow by an independent valuation consultant using loan performance, other credit characteristics and market interest rate comparisons. Changes in those factors could change the valuation. | |||
[4] | Commercial mortgage backed investment securities, consisting of Bank issued CRE securities, are valued using discounted cash flow analyses. The discount rates applied are based upon market observations for comparable securities and implicitly assume market averages for prepayments, defaults, and loss severities. Each of the securities has some credit enhancement, or protection from other tranches in the issue, which limit their valuation exposure to credit losses. Nonetheless, increases in expected default rates or loss severities on the loans underlying the issue could reduce their value. In market environments in which investors demand greater yield compensation for credit risk, the discount rate applied would ordinarily be higher and the valuation lower. Changes in prepayments and loss experience could also change the interest earned on these holdings in future periods and impact fair values. | |||
[5] | Insurance liquidating trust preferred is a single debenture which is valued using discounted cash flow analysis. The discount rate used is based on the market rate on comparable relatively illiquid instruments and credit analysis. A change in the liquidating trust’s ability to repay the note, or an increase in interest rates, particularly for privately placed debentures, would affect the discount rate and thus the valuation. As a single security, the weighted average rate shown is the actual rate applied to the security. | |||
[6] | Commercial-SBL (SBA Loans) are comprised of the government guaranteed portion of SBA insured loans. Their valuation is based upon dealer pricing indications. A limited number of broker/dealers originate the pooled securities for which the loans are purchased and as a result, prices can fluctuate based on such limited market demand, although the government guarantee has resulted in consistent historical demand. Valuations are also impacted by prepayment assumptions resulting from both voluntary payoffs and defaults. | |||
[7] | Commercial-fixed are fixed rate commercial mortgages originated for sale. Discount rates used in applying discounted cash flow analysis are determined by an independent valuation consultant based upon loan terms, the general level of interest rates and the quality of the credit. | |||
[8] | Commercial-floating are floating rate loans, the vast majority of which are secured by multi-family properties. These are bridge loans designed to provide owners time and funding for property improvements and are generally valued internally using discounted cash flow analysis. The discount rate for the vast majority of these loans, which are multi-family, was based upon current origination rates for similar loans. Certain non multi family loans are fair valued by a third party, based upon discounting at market rates for similar loans. | |||
[9] | Subordinated debentures are comprised of two subordinated notes issued by the Company, maturing in 2038 with a floating rate of 3-month LIBOR plus 3.25 %. These notes are valued using discounted cash flow analysis. The discount rate is based on the market rate for comparable relatively illiquid instruments. Changes in those market rates, or the credit of the Company could result in changes in the valuation. | |||
[10] | Corporate debt securities consist of three AAA rated privately placed debt structures backed by investment grade corporate debt each with over 50 % credit enhancement. Each of these securities has a coupon of 3 Month LIBOR + 3.00 %. Price indications are obtained from a broker/dealer with significant experience in trading and evaluating these securities. Changes in either investor yield requirements for relatively illiquid securities, or credit risk could affect the price indications. |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)agreement | |
Derivative [Line Items] | |
Notional Amount | $ 37,800 |
Receivable under agreements | 2,500 |
Cash collateral | $ 2,800 |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Number of interest rate swap agreements | agreement | 6 |
Fair value adjustment on derivatives, loss | $ 2,200 |
Derivatives (Derivatives) (Deta
Derivatives (Derivatives) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 37,800 |
Fair Value | $ (2,465) |
August 4, 2021 [Member] | |
Derivative [Line Items] | |
Maturity Date | Aug. 4, 2021 |
Notional Amount | $ 10,300 |
Interest rate paid (in hundredths) | 1.12% |
Interest rate received (in hundredths) | 0.25% |
Fair Value | $ (78) |
December 23, 2025 [Member] | |
Derivative [Line Items] | |
Maturity Date | Dec. 23, 2025 |
Notional Amount | $ 6,800 |
Interest rate paid (in hundredths) | 2.16% |
Interest rate received (in hundredths) | 0.22% |
Fair Value | $ (636) |
December 24, 2025 [Member] | |
Derivative [Line Items] | |
Maturity Date | Dec. 24, 2025 |
Notional Amount | $ 8,200 |
Interest rate paid (in hundredths) | 2.17% |
Interest rate received (in hundredths) | 0.22% |
Fair Value | $ (775) |
January 28, 2026 [Member] | |
Derivative [Line Items] | |
Maturity Date | Jan. 28, 2026 |
Notional Amount | $ 3,000 |
Interest rate paid (in hundredths) | 1.87% |
Interest rate received (in hundredths) | 0.25% |
Fair Value | $ (239) |
July 20, 2026 [Member] | |
Derivative [Line Items] | |
Maturity Date | Jul. 20, 2026 |
Notional Amount | $ 6,300 |
Interest rate paid (in hundredths) | 1.44% |
Interest rate received (in hundredths) | 0.27% |
Fair Value | $ (377) |
December 12, 2026 [Member] | |
Derivative [Line Items] | |
Maturity Date | Dec. 12, 2026 |
Notional Amount | $ 3,200 |
Interest rate paid (in hundredths) | 2.26% |
Interest rate received (in hundredths) | 0.25% |
Fair Value | $ (360) |
Other Identifiable Intangible_2
Other Identifiable Intangible Assets (Details) - USD ($) | Nov. 29, 2012 | Jan. 31, 2020 | May 31, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | $ 147,000 | $ 382,000 | $ 441,000 | $ 1,148,000 | ||||
McMahon Leasing [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition purchase price | $ 4,600,000 | |||||||
Fair Value Of Leases Acquired, Premium | 453,000 | |||||||
Excess consideration issued over book value | 1,500,000 | |||||||
Finite-Lived Intangible Assets, Net | 285,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 57,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | 57,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 57,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 57,000 | |||||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | $ 57,000 | |||||||
Inventory Adjustments | 100,000 | 100,000 | ||||||
Acquired Loans Outstanding, Eliminated From Transaction | 4,000,000 | 4,000,000 | ||||||
Liabilities acquired | 4,400,000 | 4,400,000 | ||||||
Internal Use Software [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition date | Nov. 29, 2012 | |||||||
Acquisition purchase price | $ 1,800,000 | |||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 8 years | |||||||
Amortization of intangible assets per year | $ 217,000 | |||||||
Amortization of intangible assets over five years | $ 16,000 | |||||||
Gross intangible assets | 1,800,000 | 1,800,000 | ||||||
Accumulated amortization | 1,800,000 | 1,800,000 | $ 1,700,000 | |||||
Customer List Intangibles [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquisition purchase price | $ 60,000,000 | |||||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years | |||||||
Amortization of intangible assets over five years | 1,700,000 | |||||||
Gross intangible assets | $ 3,400,000 | 3,400,000 | 3,400,000 | 3,400,000 | ||||
Accumulated amortization | 1,500,000 | 1,500,000 | $ 1,200,000 | |||||
Amortization of intangible assets | 340,000 | |||||||
Customer List Intangibles [Member] | McMahon Leasing [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Estimated useful life | 12 years | |||||||
Excess consideration issued over book value | $ 1,500,000 | |||||||
Gross intangible assets | 689,000 | 689,000 | 689,000 | |||||
Accumulated amortization | 43,000 | 43,000 | ||||||
Lease Agreements [Member] | McMahon Leasing [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquired finite-lived intangible assets | 9,900,000 | |||||||
Automobile Inventory And Other Assets [Member] | McMahon Leasing [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Acquired finite-lived intangible assets | $ 958,000 | |||||||
Trade Names [Member] | McMahon Leasing [Member] | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Gross intangible assets | $ 135,000 | $ 135,000 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease right-of-use | $ 16,400 | ||||||
Retained Earnings | $ 104,282 | $ 50,742 | |||||
Financing Receivable, Allowance for Credit Losses | 15,727 | 10,238 | $ 10,360 | $ 8,653 | |||
Other liabilities | 69,954 | $ 65,962 | |||||
Restatement Adjustments [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accrued Rent | 1,700 | ||||||
Operating Lease, Liability | $ 18,100 | ||||||
ASU 2016-13 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Losses | $ 15,727 | $ 12,874 | |||||
ASU 2016-13 [Member] | Restatement Adjustments [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Retained Earnings | $ (2,400) | ||||||
Deferred Tax Assets, Gross | (834) | ||||||
Financing Receivable, Allowance for Credit Losses | (2,600) | ||||||
Other liabilities | (569) | ||||||
Reserve On Unfunded Commitments | $ (569) |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements (Scheduled Maturities of Direct Financing Leases) (Details) $ in Thousands | Sep. 30, 2020USD ($) | |
Recent Accounting Pronouncements [Abstract] | ||
Remaining 2020 | $ 41,520 | |
2021 | 120,670 | |
2022 | 87,382 | |
2023 | 56,629 | |
2024 | 27,709 | |
2025 and thereafter | 8,026 | |
Total undiscounted cash flows | 341,936 | |
Residual value | 134,546 | [1] |
Difference between undiscounted cash flows and discounted cash flows | (45,807) | |
Present value of lease payments recorded as lease receivables | 430,675 | |
Direct residual value not guaranteed | $ 30,050 | |
[1] | Of the $ 134,546,000 , $ 30,050,000 is not guaranteed by the lessee or other guarantors. |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020security | |
Regulatory Matters [Abstract] | |
Percentage of net profits from preceding period for which dividend is paid to surplus fund (in hundredths) | 50.00% |
Percentage of capital stock (in hundredths) | 50.00% |
Percentage of net profits from preceding period for which dividend is paid to surplus fund thereafter (in hundredths) | 25.00% |
Percentage of capital stock thereafter (in hundredths) | 100.00% |
Number of securities transferred due to accounting standard updates | 4 |
Legal (Details)
Legal (Details) $ in Millions | Apr. 29, 2020USD ($) |
Cascade Funding, LP – Series 6 v. The Bancorp Bank [Member] | |
Loss Contingency, Damages Sought, Value | $ 12.5 |
Segment Financials (Narrative)
Segment Financials (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Financials [Abstract] | |
Continuing operation segments | 4 |
Segment Financials (Schedule Of
Segment Financials (Schedule Of Segment Financials) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||
Interest income | $ 52,478 | $ 48,375 | $ 155,843 | $ 136,033 | |||||
Interest expense | 2,482 | 10,815 | 12,690 | 29,924 | |||||
Net interest income | 49,996 | 37,560 | 143,153 | 106,109 | |||||
Provision for credit losses | 1,297 | 650 | 5,798 | 2,950 | |||||
Non-interest income | 24,352 | 33,515 | 61,317 | 83,629 | |||||
Non-interest expense | 42,026 | 42,051 | 123,064 | 120,799 | |||||
Income before income tax | 31,025 | 28,374 | 75,608 | 65,989 | |||||
Income tax expense | 7,894 | 7,975 | 19,033 | 17,585 | |||||
Net income from continuing operations | 23,131 | 20,399 | 56,575 | 48,404 | |||||
Income (Loss) from discontinued operations | 123 | 26 | (662) | 1,301 | |||||
Net income | 23,254 | $ 20,068 | $ 12,591 | 20,425 | $ 11,350 | $ 17,930 | 55,913 | 49,705 | |
Total assets | 6,169,302 | 6,169,302 | $ 5,656,963 | ||||||
Total liabilities | 5,610,843 | 5,610,843 | 5,172,466 | ||||||
Specialty Finance [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 44,408 | 35,210 | 125,254 | 95,573 | |||||
Interest expense | 232 | 353 | 791 | 1,087 | |||||
Net interest income | 44,176 | 34,857 | 124,463 | 94,486 | |||||
Provision for credit losses | 1,297 | 650 | 5,798 | 2,950 | |||||
Non-interest income | 2,395 | 14,719 | (1,622) | 27,794 | |||||
Non-interest expense | 17,236 | 15,791 | 51,742 | 47,196 | |||||
Income before income tax | 28,038 | 33,135 | 65,301 | 72,134 | |||||
Net income from continuing operations | 28,038 | 33,135 | 65,301 | 72,134 | |||||
Net income | 28,038 | 33,135 | 65,301 | 72,134 | |||||
Total assets | 4,378,815 | 4,378,815 | 3,008,304 | ||||||
Total liabilities | 286,610 | 286,610 | 247,485 | ||||||
Payments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest allocation | 8,070 | 13,165 | 30,589 | 40,460 | |||||
Interest expense | 1,234 | 7,236 | 7,381 | 23,947 | |||||
Net interest income | 6,836 | 5,929 | 23,208 | 16,513 | |||||
Non-interest income | 21,933 | 18,767 | 62,770 | 55,733 | |||||
Non-interest expense | 16,939 | 16,289 | 51,345 | 50,211 | |||||
Income before income tax | 11,830 | 8,407 | 34,633 | 22,035 | |||||
Net income from continuing operations | 11,830 | 8,407 | 34,633 | 22,035 | |||||
Net income | 11,830 | 8,407 | 34,633 | 22,035 | |||||
Total assets | 37,547 | 37,547 | 57,746 | ||||||
Total liabilities | 4,752,944 | 4,752,944 | 4,030,921 | ||||||
Corporate [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 8,070 | 13,165 | 30,589 | 40,460 | |||||
Interest allocation | (8,070) | (13,165) | (30,589) | (40,460) | |||||
Interest expense | 1,016 | 3,226 | 4,518 | 4,890 | |||||
Net interest income | (1,016) | (3,226) | (4,518) | (4,890) | |||||
Non-interest income | 24 | 29 | 169 | 102 | |||||
Non-interest expense | 7,851 | 9,971 | 19,977 | 23,392 | |||||
Income before income tax | (8,843) | (13,168) | (24,326) | (28,180) | |||||
Income tax expense | 7,894 | 7,975 | 19,033 | 17,585 | |||||
Net income from continuing operations | (16,737) | (21,143) | (43,359) | (45,765) | |||||
Net income | (16,737) | (21,143) | (43,359) | (45,765) | |||||
Total assets | 1,630,687 | 1,630,687 | 2,450,256 | ||||||
Total liabilities | 571,289 | 571,289 | 894,060 | ||||||
Discontinued Operations [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Income (Loss) from discontinued operations | 123 | 26 | (662) | 1,301 | |||||
Net income | 123 | $ 26 | (662) | $ 1,301 | |||||
Total assets | $ 122,253 | $ 122,253 | $ 140,657 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2014 | |
Discontinued Operations [Abstract] | ||||
Fair value adjustments | $ 1,400 | $ 2,300 | ||
Disposal Group, Including Discontinued Operation, Loan Portfolio, Book Value | $ 1,100,000 | |||
Assets held-for-sale from discontinued operations | 122,253 | 122,253 | $ 140,657 | |
Investment in unconsolidated entity | $ 31,783 | $ 31,783 | $ 39,154 |
Discontinued Operations (Financ
Discontinued Operations (Financial Results Of The Commercial Lending Business Included In Net Income (Loss) From Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |||||
Interest income | $ 890 | $ 1,609 | $ 3,259 | $ 5,293 | |
Interest expense | |||||
Net interest income | 890 | 1,609 | 3,259 | 5,293 | |
Non-interest income | 4 | 9 | 18 | 33 | |
Non-interest expense | 2,565 | 1,467 | 5,997 | 3,451 | |
Income (loss) before taxes | (1,671) | 151 | (2,720) | 1,875 | |
Income tax expense (benefit) | (1,794) | 125 | (2,058) | 574 | |
Net income (loss) | 123 | $ 26 | (662) | $ 1,301 | |
Loans, net | 98,388 | 98,388 | $ 115,879 | ||
Other real estate owned | 23,865 | 23,865 | 24,778 | ||
Assets, Total | $ 122,253 | $ 122,253 | $ 140,657 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Nov. 05, 2020USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Amount per quarter planned for stock repurchase | $ 10 |