Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 19, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Entity File Number | 001-38412 | ||
Entity Registrant Name | Bridgewater Bancshares Inc | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 26-0113412 | ||
Entity Address, Address Line One | 4450 Excelsior Boulevard, Suite 100 | ||
Entity Address, City or Town | St. Louis Park | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55416 | ||
City Area Code | 952 | ||
Local Phone Number | 893-6868 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | RSM US LLP | ||
Auditor Firm ID | 49 | ||
Auditor Location | Des Moines, Iowa | ||
Entity Shell Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Common Stock, Shares Outstanding | 27,709,819 | ||
Entity Public Float | $ 220,829,455 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001341317 | ||
Amendment Flag | false | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | BWB | ||
Security Exchange Name | NASDAQ | ||
Depositary Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares | ||
Trading Symbol | BWBBP | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and Cash Equivalents | $ 128,562 | $ 87,043 |
Bank-Owned Certificates of Deposit | 1,181 | |
Securities Available for Sale, at Fair Value | 604,104 | 548,613 |
Loans, Net of Allowance for Credit Losses of $50,494 at December 31, 2023, and $47,996 at December 31, 2022 | 3,667,215 | 3,512,157 |
Federal Home Loan Bank (FHLB) Stock, at Cost | 17,097 | 19,606 |
Premises and Equipment, Net | 48,886 | 48,445 |
Accrued Interest | 16,697 | 13,479 |
Goodwill | 2,626 | 2,626 |
Other Intangible Assets, Net | 188 | 288 |
Bank-Owned Life Insurance | 34,477 | 33,485 |
Other Assets | 92,138 | 78,739 |
Total Assets | 4,611,990 | 4,345,662 |
Deposits: | ||
Noninterest Bearing | 756,964 | 884,272 |
Interest Bearing | 2,952,984 | 2,532,271 |
Total Deposits | 3,709,948 | 3,416,543 |
Federal Funds Purchased | 287,000 | |
Notes Payable | 13,750 | 13,750 |
FHLB Advances | 319,500 | 97,000 |
Subordinated Debentures, Net of Issuance Costs | 79,288 | 78,905 |
Accrued Interest Payable | 5,282 | 2,831 |
Other Liabilities | 58,707 | 55,569 |
Total Liabilities | 4,186,475 | 3,951,598 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock- $0.01 par value; Authorized 10,000,000 Preferred Stock - Issued and Outstanding 27,600 Series A shares ($2,500 liquidation preference) at December 31, 2023 and December 31, 2022 | 66,514 | 66,514 |
Common Stock- $0.01 par value; Authorized 75,000,000 Common Stock - Issued and Outstanding 27,748,965 at December 31, 2023 and 27,751,950 at December 31, 2022 | 277 | 278 |
Additional Paid-In Capital | 96,320 | 96,529 |
Retained Earnings | 280,650 | 248,685 |
Accumulated Other Comprehensive Loss | (18,246) | (17,942) |
Total Shareholders' Equity | 425,515 | 394,064 |
Total Liabilities and Equity | $ 4,611,990 | $ 4,345,662 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance of loan loss | $ 50,494 | $ 47,996 |
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 27,748,965 | 27,751,950 |
Common stock, shares outstanding (in shares) | 27,748,965 | 27,751,950 |
Series A Preferred Stock | ||
Preferred stock, shares issued (in shares) | 27,600 | 27,600 |
Preferred stock, shares outstanding (in shares) | 27,600 | 27,600 |
Liquidation preference | $ 2,500 | $ 2,500 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST INCOME | |||
Loans, Including Fees | $ 191,402 | $ 146,256 | $ 118,845 |
Investment Securities | 26,245 | 16,410 | 9,576 |
Other | 4,708 | 1,029 | 458 |
Total Interest Income | 222,355 | 163,695 | 128,879 |
INTEREST EXPENSE | |||
Deposits | 96,045 | 23,379 | 13,842 |
Federal Funds Purchased | 8,521 | 4,507 | 6 |
Notes Payable | 1,143 | 202 | 61 |
FHLB Advances | 7,489 | 1,221 | 831 |
Subordinated Debentures | 3,983 | 4,688 | 4,630 |
Total Interest Expense | 117,181 | 33,997 | 19,370 |
NET INTEREST INCOME | 105,174 | 129,698 | 109,509 |
Provision for (Recovery of) Credit Losses | (175) | 7,700 | 5,150 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 105,349 | 121,998 | 104,359 |
NONINTEREST INCOME | |||
Customer Service Fees | 1,455 | 1,236 | 1,007 |
Net Gain (Loss) on Sales of Available for Sale Securities | (33) | 82 | 750 |
Letters of Credit Fees | 1,746 | 1,592 | 1,676 |
Debit Card Interchange Fees | 595 | 586 | 563 |
Swap Fees | 557 | ||
Bank-Owned Life Insurance | 992 | 762 | 316 |
FHLB Prepayment Income | 792 | ||
Other Income | 946 | 1,517 | 997 |
Total Noninterest Income | 6,493 | 6,332 | 5,309 |
NONINTEREST EXPENSE | |||
Salaries and Employee Benefits | 36,538 | 36,941 | 30,889 |
Occupancy and Equipment | 4,447 | 4,390 | 3,916 |
FDIC Insurance Assessment | 3,690 | 1,365 | 1,305 |
Data Processing | 1,574 | 1,396 | 1,222 |
Professional and Consulting Fees | 3,081 | 2,664 | 2,520 |
Derivative Collateral Fees | 1,900 | 687 | 3 |
Information Technology and Telecommunications | 2,889 | 2,495 | 2,163 |
Marketing and Advertising | 1,129 | 2,032 | 1,487 |
Intangible Asset Amortization | 100 | 191 | 191 |
Amortization of Tax Credit Investments | 408 | 562 | |
Debt Prepayment Fees | 582 | ||
Other Expense | 3,972 | 4,051 | 3,255 |
Total Noninterest Expense | 59,320 | 56,620 | 48,095 |
INCOME BEFORE INCOME TAXES | 52,522 | 71,710 | 61,573 |
Provision for Income Taxes | 12,562 | 18,318 | 15,886 |
NET INCOME | 39,960 | 53,392 | 45,687 |
Preferred Stock Dividends | (4,054) | (4,054) | (1,171) |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 35,906 | $ 49,338 | $ 44,516 |
EARNINGS PER SHARE | |||
Basic (in dollars per share) | $ 1.29 | $ 1.78 | $ 1.59 |
Diluted (in dollars per share) | $ 1.27 | $ 1.72 | $ 1.54 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Net Income (Loss) | $ 39,960 | $ 53,392 | $ 45,687 |
Other Comprehensive Income (Loss): | |||
Unrealized Gains (Losses) on Available for Sale Securities | 3,339 | (56,914) | (1,689) |
Unrealized Gains on Cash Flow Hedges | 2,299 | 20,430 | 3,991 |
Reclassification Adjustment for (Gains) Losses Realized in Income | (6,069) | (90) | 770 |
Income Tax Impact | 127 | 9,626 | (645) |
Total Other Comprehensive Income (Loss), Net of Tax | (304) | (26,948) | 2,427 |
Comprehensive Income | $ 39,656 | $ 26,444 | $ 48,114 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Preferred Stock Adjusted for Change in Accounting Principle | Preferred Stock | Common Stock Adjusted for Change in Accounting Principle | Common Stock | Additional Paid In Capital Adjusted for Change in Accounting Principle | Additional Paid In Capital | Retained Earnings Cumulative Effect of Change | Retained Earnings Adjusted for Change in Accounting Principle | Retained Earnings | Accumulated Other Comprehensive Loss Adjusted for Change in Accounting Principle | Accumulated Other Comprehensive Loss | Cumulative Effect of Change | Adjusted for Change in Accounting Principle | Total |
Balance at the beginning at Dec. 31, 2020 | $ 281,000 | $ 103,714,000 | $ 154,831,000 | $ 6,579,000 | $ 265,405,000 | |||||||||
Balance at the beginning (in shares) at Dec. 31, 2020 | 28,143,493 | |||||||||||||
Stock-based Compensation | 2,426,000 | 2,426,000 | ||||||||||||
Stock-based Compensation (in shares) | 18,920 | |||||||||||||
Comprehensive Income (Loss) | 45,687,000 | 2,427,000 | 48,114,000 | |||||||||||
Preferred Stock Offering, Net of Issuance Costs | $ 66,514,000 | 66,514,000 | ||||||||||||
Stock Options Exercised | $ 2,000 | 722,000 | 724,000 | |||||||||||
Stock Options Exercised (in shares) | 164,405 | |||||||||||||
Stock Repurchases | $ (2,000) | (2,299,000) | (2,301,000) | |||||||||||
Stock Repurchases (in shares) | (146,445) | |||||||||||||
Vested Restricted Stock Units | $ 1,000 | (1,000) | ||||||||||||
Vested Restricted Stock Units (in shares) | 51,146 | |||||||||||||
Restricted Shares Withheld for Taxes | (439,000) | (439,000) | ||||||||||||
Restricted Shares Withheld for Taxes (in shares) | (24,953) | |||||||||||||
Preferred Stock Dividend | (1,171,000) | (1,171,000) | ||||||||||||
Balance at the end at Dec. 31, 2021 | 66,514,000 | $ 282,000 | 104,123,000 | 199,347,000 | 9,006,000 | 379,272,000 | ||||||||
Balance at the end (in shares) at Dec. 31, 2021 | 28,206,566 | |||||||||||||
Stock-based Compensation | 3,340,000 | 3,340,000 | ||||||||||||
Stock-based Compensation (in shares) | 19,024 | |||||||||||||
Comprehensive Income (Loss) | 53,392,000 | (26,948,000) | 26,444,000 | |||||||||||
Stock Options Exercised | $ 1,000 | 576,000 | $ 577,000 | |||||||||||
Stock Options Exercised (in shares) | 133,301 | 133,301 | ||||||||||||
Stock Repurchases | $ (6,000) | (10,772,000) | $ (10,778,000) | |||||||||||
Stock Repurchases (in shares) | (662,765) | |||||||||||||
Forfeiture of Restricted Stock Awards | (2,000) | (2,000) | ||||||||||||
Forfeiture of Restricted Stock Awards (in shares) | (1,000) | |||||||||||||
Vested Restricted Stock Units | $ 1,000 | (1,000) | ||||||||||||
Vested Restricted Stock Units (in shares) | 96,786 | |||||||||||||
Restricted Shares Withheld for Taxes | (735,000) | (735,000) | ||||||||||||
Restricted Shares Withheld for Taxes (in shares) | (39,962) | |||||||||||||
Preferred Stock Dividend | (4,054,000) | (4,054,000) | ||||||||||||
Balance at the end (ASU 2016-13) at Dec. 31, 2022 | $ (3,920,000) | $ (3,920,000) | ||||||||||||
Balance at the end (ASU 2023-02) at Dec. 31, 2022 | $ (21,000) | $ (21,000) | ||||||||||||
Balance at the end at Dec. 31, 2022 | $ 66,514,000 | 66,514,000 | $ 278,000 | $ 278,000 | $ 96,529,000 | 96,529,000 | $ 244,744,000 | 248,685,000 | $ (17,942,000) | (17,942,000) | $ 390,123,000 | 394,064,000 | ||
Balance at the end (in shares) at Dec. 31, 2022 | 27,751,950 | 27,751,950 | ||||||||||||
Stock-based Compensation | 3,954,000 | 3,954,000 | ||||||||||||
Stock-based Compensation (in shares) | 44,753 | |||||||||||||
Comprehensive Income (Loss) | 39,960,000 | (304,000) | 39,656,000 | |||||||||||
Stock Options Exercised | $ 3,000 | 960,000 | $ 963,000 | |||||||||||
Stock Options Exercised (in shares) | 305,950 | 305,950 | ||||||||||||
Stock Repurchases | $ (4,000) | (4,537,000) | $ (4,541,000) | |||||||||||
Stock Repurchases (in shares) | (423,749) | |||||||||||||
Forfeiture of Restricted Stock Awards (in shares) | (250) | |||||||||||||
Vested Restricted Stock Units | $ 1,000 | (1,000) | ||||||||||||
Vested Restricted Stock Units (in shares) | 121,603 | |||||||||||||
Restricted Shares Withheld for Taxes | $ (1,000) | (585,000) | (586,000) | |||||||||||
Restricted Shares Withheld for Taxes (in shares) | (51,292) | |||||||||||||
Preferred Stock Dividend | (4,054,000) | (4,054,000) | ||||||||||||
Balance at the end at Dec. 31, 2023 | $ 66,514,000 | $ 277,000 | $ 96,320,000 | $ 280,650,000 | $ (18,246,000) | $ 425,515,000 | ||||||||
Balance at the end (in shares) at Dec. 31, 2023 | 27,748,965 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 39,960 | $ 53,392 | $ 45,687 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Net Amortization on Securities Available for Sale | 10 | 1,867 | 3,362 |
Net (Gain) Loss on Sales of Securities Available for Sale | 33 | (82) | (750) |
Provision for Credit Losses on Loans | 2,050 | 7,700 | 5,150 |
Credit for Off-Balance Sheet Exposures | (2,225) | ||
Depreciation of Premises and Equipment | 2,509 | 2,565 | 2,369 |
Loss on Disposal of Premises and Equipment | 20 | 18 | |
Amortization of Other Intangible Assets | 100 | 191 | 191 |
Amortization of Right-of Use Asset | 534 | 497 | |
Amortization of Subordinated Debt Issuance Costs | 383 | 416 | 441 |
Stock-based Compensation | 3,954 | 3,340 | 2,426 |
Deferred Income Taxes | 676 | (1,401) | (4,522) |
Changes in Operating Assets and Liabilities: | |||
Accrued Interest Receivable and Other Assets | (21,894) | (14,080) | (4,064) |
Accrued Interest Payable and Other Liabilities | 3,905 | 30,576 | 3,946 |
Net Cash Provided by Operating Activities | 30,015 | 84,999 | 54,236 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Decrease in Bank-Owned Certificates of Deposit | 1,181 | 695 | 984 |
Proceeds from Sales of Securities Available for Sale | 28,756 | 64,439 | 11,877 |
Proceeds from Maturities, Paydowns, Payups and Calls of Securities Available for Sale | 32,747 | 38,226 | 44,235 |
Purchases of Securities Available for Sale | (113,648) | (268,259) | (109,898) |
Net Increase in Loans | (157,874) | (749,940) | (492,631) |
Net (Increase) Decrease in FHLB Stock | 2,509 | (14,364) | (215) |
Purchases of Premises and Equipment | (2,970) | (1,633) | (777) |
Proceeds from Sales of Foreclosed Assets | 116 | ||
Purchase of Bank-Owned Life Insurance | (7,407) | (25,000) | |
Net Cash Used in Investing Activities | (209,183) | (938,243) | (571,425) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net Increase in Deposits | 293,405 | 470,306 | 444,601 |
Net Increase (Decrease) in Federal Funds Purchased | (287,000) | 287,000 | |
Principal Proceeds (Payments) on Notes Payable | 13,750 | (11,000) | |
Proceeds from FHLB Advances | 679,500 | 158,000 | |
Principal Payments on FHLB Advances | (457,000) | (103,500) | (15,000) |
Issuance of Preferred Stock, net of Issuance Costs | 66,514 | ||
Preferred Stock Dividends Paid | (4,054) | (4,054) | (1,171) |
Issuance of Subordinated Debt, net of Issuance Costs | 29,309 | ||
Redemption of Subordinated Debt | (13,750) | (11,250) | |
Stock Options Exercised | 963 | 577 | 724 |
Stock Repurchases | (4,541) | (10,778) | (2,301) |
Forfeiture of Restricted Stock Awards | (2) | ||
Shares Repurchased for Tax Withholdings Upon Vesting of Restricted Stock-Based Awards | (457) | (620) | (439) |
Shares Repurchased for Tax Withholdings Upon Exercise of Stock Options | (129) | (115) | |
Net Cash Provided by Financing Activities | 220,687 | 796,814 | 499,987 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 41,519 | (56,430) | (17,202) |
Cash and Cash Equivalents Beginning | 87,043 | 143,473 | 160,675 |
Cash and Cash Equivalents Ending | 128,562 | 87,043 | 143,473 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Cash Paid for Interest | 114,347 | 32,159 | 19,135 |
Cash Paid for Income Taxes | 10,388 | 20,565 | $ 19,376 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | |||
Net Investment Securities Purchased but Not Settled | $ 2,438 | ||
Loans Transferred to Foreclosed Assets | $ 116 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Description of the Business and Summary of Significant Accounting Policies | |
Description of the Business and Summary of Significant Accounting Policies | Note 1: Description of the Business and Summary of Significant Accounting Policies Organization Bridgewater Bancshares, Inc. (the “Company”) is a financial holding company headquartered in St. Louis Park, Minnesota, whose operations consist of the ownership of its wholly-owned subsidiary: Bridgewater Bank (the “Bank”). The Bank commenced operations in 2005 and provides retail and commercial loan and deposit services, principally to customers within the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area. In 2008, the Bank formed BWB Holdings, LLC, a wholly owned subsidiary of the Bank, for the purpose of holding repossessed property. In 2018, the Bank formed Bridgewater Investment Management, Inc., a wholly owned subsidiary of the Bank, for the purpose of holding certain municipal securities and to engage in municipal lending activities. The Company previously had a second wholly-owned subsidiary, Bridgewater Risk Management, Inc., a Nevada Corporation (the “Captive”). The Captive insured the Company and its subsidiaries against certain risks unique to the operations of the Company and for which insurance was not available or economically feasible in the insurance marketplace. The Captive pooled resources with several other insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. Effective December 15, 2023, the Captive was dissolved and is no longer active. Principles of Consolidation The consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Information available which could affect judgments includes, but is not limited to, changes in interest rates, changes in the performance of the economy, including elevated levels of inflation and possible recession, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for credit losses, calculation of deferred tax assets, fair value of financial instruments, and investment securities impairment. Emerging Growth Company Until December 31, 2023, the Company qualified as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and, accordingly, took advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. The Company elected to take advantage of the benefits of this extended transition period through 2023. As of December 31, 2023, the Company was no longer eligible for emerging growth company status, and the full regulatory reporting requirements became applicable. Cash and Cash Equivalents For purpose of the consolidated statements of cash flows, cash and cash equivalents include cash, both interest bearing and noninterest bearing balances due from banks and federal funds sold, all of which mature within 90 days. Cash flows from loans, deposits, federal funds purchased and notes payable are reported net. Bank-Owned Certificates of Deposit Bank-owned certificates of deposit mature within five years and are carried at cost. Securities Available for Sale Debt securities are classified as available for sale and are carried at fair value with unrealized gains and losses reported in other comprehensive income (loss). Realized gains and losses on securities available for sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income over the estimated life (earliest call date, maturity, or estimated life) using a prospective method that approximates level yield. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid balances adjusted for charge-offs, the allowance for credit losses, any deferred fees or costs on originated loans, and premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. The accrual of interest on all loans is discounted if the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income and amortization of related deferred loan fees or costs is suspended. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. The cash-basis is used when a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments are applied to loan principal. The determination of ultimate collectability is supported by a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment, including consideration of the borrower’s sustained historical repayment performance and other relevant factors. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the borrower has demonstrated a period of sustained performance, and future payments are reasonably assured. A sustained period of repayment performance generally would be a minimum of six months. Allowance for Credit Losses Securities Available for Sale For any securities classified as available for sale that are in an unrealized loss position at the balance sheet date, the Company assesses whether or not it intends to sell the security, or if it is more likely than not it will be required to sell the security, before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance. For securities that do not meet the aforementioned criteria, the Company evaluates whether any portion of the decline in fair value is the result of credit deterioration. In making this assessment, management considers the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security, among other factors. If the assessment indicates that a credit loss exists, an allowance for credit losses, or ACL, is recorded for the amount by which the amortized cost basis of the security exceeds the present value of cash flows expected to be collected, limited by the amount by which the amortized cost exceeds fair value. Any impairment not recognized in the allowance for credit losses is recognized in other comprehensive income. Changes in the ACL on securities are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on securities available for sale is excluded from the estimate of credit losses. Loans The ACL on loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over their contractual life. The contractual term does not consider extensions, renewals or modifications. Loans are charged off against the ACL on loans when management believes the uncollectibility of a loan balance has been confirmed. Recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. Subsequent recoveries, if any, are credited to the ACL on loans. The ACL on loans is measured on a collective or pooled basis when similar risk characteristics exist. The Company’s pooling method is primarily based on loan purpose and collateral type and generally follows the Company’s loan segmentation for regulatory reporting. The Company has identified the following pools of loans with similar risk characteristics for measuring the ACL on loans: Commercial: Commercial loans generally are loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance working capital, capital investment, or for other business related purposes. Collateral generally consists of pledges of business assets or interests, including but not limited to accounts receivable, inventory, plant and equipment, and real estate interests, if applicable. The primary repayment sources for commercial loans are the cash flow of the operating businesses which can be adversely affected by company, industry and economic business cycles. Commercial loans may be secured or unsecured. Paycheck Protection Program (PPP): PPP loans are loans to businesses, sole proprietorships, independent contractors and self-employed individuals who met certain criteria and eligibility requirements through a loan program established by the CARES Act and administered through the Small Business Administration, or SBA. In 2021, the PPP loan program ended and the Company is no longer originating loans under this program. Credit risk in these loans is limited due to a full guarantee by the U.S. Government. Construction and Land Development: Construction and land development loans are generally loans to finance land development or the construction of industrial, commercial, or multifamily buildings. Construction loans can include construction of new structures, additions or alterations to existing structures, or the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules and the reliance on the sale of the completed project as the primary repayment source for the loan. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions. Trends in the commercial and residential construction industries can significantly impact the credit quality of these loans due to supply and demand imbalances. In addition, fluctuations in real estate values can significantly impact the credit quality of these loans, as property values may determine the economic viability of construction projects and adversely impact the value of the collateral securing the loan. 1-4 Family Construction: 1-4 family construction loans are generally loans to finance the construction of new structures, additions or alterations to existing structures, or the demolition of existing structures to make way for new structures. 1-4 family construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of 1-4 family construction may be customer specific or related to changes in general economic conditions. 1-4 Family Mortgage: 1-4 family mortgage loans are generally loans to finance loans on owner occupied and nonowner occupied properties. 1-4 family mortgage loans are secured by first or second liens on the property. The degree of risk in residential mortgage lending involving owner occupied properties depends primarily on the borrower’s ability to repay and the loan amount in relation to collateral value. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrower’s capacity to repay their obligations may be deteriorating. 1-4 family mortgage loans include credits to finance nonowner occupied properties used as rentals. These loans can involve additional risks as the borrower’s ability to repay is based on the net operating income from the property which can be impacted by occupancy levels, rental rates, and operating expenses. Declines in net operating income can negatively impact the value of the property which increases the credit risk in the event of default. Multifamily: Multifamily loans are loans to finance multifamily properties. The primary source of repayment for multifamily loans is the cash flows of the underlying property. The primary risk characteristics include increases in vacancy rates, overbuilt supply, interest rates or changes in general economic conditions. Economic factors such as unemployment, wage growth and home affordability can impact vacancy rates and property cash flow. Commercial Real Estate (CRE) Owner Occupied: Owner occupied commercial real estate loans are properties that are owned and operated by the borrower and the primary source for repayment is the cash flow from the ongoing operations and activities conducted by the borrower’s business. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Also, certain types of businesses also may require specialized facilities that can increase costs and may not be economically feasible to an alternative user, which could adversely impact the market value of the collateral. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. Commercial Real Estate (CRE) Nonowner Occupied: Nonowner occupied commercial real estate loans are investment properties and the primary source for repayment of the loan is derived from rental income associated with the property or proceeds of the sale of the property. Nonowner occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, commercial/retail office space, industrial/warehouse space, hotels, assisted living facilities and other specific use properties. The primary risk characteristics include impacts of overall leasing rates, absorption timelines, levels of vacancy rates and operating expenses, and general economic conditions. Banks that are concentrated in commercial real estate lending are subject to additional regulatory scrutiny and must employ enhanced risk management practices. Consumer and Other: Consumer and other loans generally include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as auto loans, debt consolidation loans, personal expense loans or overdraft protection. The primary risk characteristics associated with consumer and other loans typically include major changes to the borrower’s financial or personal circumstances, including unemployment or other loss of income, significant unexpected expenses, such as major medical expenses, catastrophic events, divorce or death. Management assesses the adequacy of the ACL on loans on a quarterly basis. Management estimates the ACL on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company uses the weighted-average remaining maturity, or WARM, method as the basis for estimating expected credit losses. The WARM method uses a historical average annual charge off rate. This average annual charge off rate contains loss content over a historical lookback period and is used as a foundation for estimating the ACL on loans for the remaining outstanding balances of loans by segment at the balance sheet date. The average annual charge off rate is applied to the contractual term to determine the unadjusted historical charge off rate. The calculation of the unadjusted historical charge off rate is then adjusted for current conditions and for reasonable and supportable forecast periods through qualitative factors prior to being applied to the current balance of the loan segments. Accrued interest receivable on loans available for sale is excluded from the estimate of credit losses. Forecast adjustments to the historical loss rate are based on a forecast of the U.S. national unemployment rate, a forecast of the difference between the 10-year and 3-month treasury rates, and the most recent available BBB rated corporate bond spreads to U.S. Treasury securities, or BBB Spread. The forecast overlay adjustment for the reasonable and supportable forecast assumes an immediate reversion after a one-year forecast period to historical loss rates for the remaining life of the respective loan segment. Qualitative factors are used to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the historic loss factors. Each qualitative loss factor, for each loan segment within the portfolio, incorporates consideration for a minimum to maximum range for loss factors. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses and are applied to each loan segment. The qualitative factors applied to each loan segment include changes in lending policies and procedures, general economic and business conditions, the nature, volume and terms of loans, the experience, depth and ability of lending staff, the quality of the loan review function, the value of underlying collateral, competition, legal and regulatory factors, the volume and severity of watchlist and past due loans, and the level of concentrations. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pooled evaluations and typically represent collateral dependent loans but may also include other nonperforming loans or modifications. The Company has elected to use the practical expedient to measure individually evaluated loans as collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. The credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale of the collateral. Management may also adjust its assumptions to account for differences between expected and actual losses from period to period. The variability of management’s assumptions could alter the ACL on loans materially and impact future results of operations and financial condition. The loss estimation models and methods used to determine the allowance for credit losses are continually refined and enhanced. Off-Balance Sheet Credit Exposures The Company maintains a separate ACL on off-balance sheet credit exposures, including unfunded loan commitments, financial guarantees, and letters of credit, which is included in other liabilities on the consolidated balance sheet, unless the obligation is unconditionally cancellable. The ACL on off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the estimated life of such commitments. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of the loan segment and applied to the amount of commitments expected to fund. Federal Home Loan Bank Stock The Bank is a member of FHLB Des Moines. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery at par value. Both cash and stock dividends are reported as income. Premises and Equipment Land is stated at cost. Premises and equipment are stated at cost less accumulated depreciation on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or lease term for leasehold improvements. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance. Subsequent to foreclosure, valuations are periodically performed by management and the assets held for sale are carried at the lower of the new cost basis or fair value less cost to sell. This evaluation is inherently subjective and requires estimates that are susceptible to significant revisions as more information becomes available. Impairment losses on assets to be held and used are measured at the amount by which the carrying amount of a property exceeds its fair value. Costs relating to holding and improving assets are expensed. Revenues and expenses from operations are included in other noninterest income and expense on the income statement. Goodwill and Intangible Assets Intangible assets attributed to the value of core deposits and favorable lease terms are stated at cost less accumulated amortization and reported in other intangible assets in the consolidated balance sheets. Intangible assets are amortized on a straight-line basis over the estimated lives of the assets. The excess of purchase price over fair value of net assets acquired is recorded as goodwill and is not amortized. The Company evaluates whether goodwill and other intangible assets may be impaired at least annually and whenever events or changes in circumstances indicate it is more likely than not the fair value of the reporting unit or asset is less than its carrying amount. Leases Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease team. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the extension or termination option. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. The Company's ROU asset is included in other assets and its lease liability is included in other liabilities in the accompanying consolidated balance sheets. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company's incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. The Company has elected not to recognize leases with original terms of 12 months or less on the consolidated balance sheet. Bank-Owned Life Insurance The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. Advertising Advertising costs are expensed as incurred. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These calculations are based on many factors including estimates of the timing of reversals of temporary differences, the interpretation of federal and state income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax liabilities. Under GAAP, a valuation allowance is required to be recognized if it is “more likely than not” that the deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. In preparation of the income tax returns, tax positions are taken based on interpretation of federal and state income tax laws. Management periodically reviews and evaluates the status of uncertain tax positions and makes estimates of amounts ultimately due or owed. The Company can recognize in financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. The Company recognizes both interest and penalties as a component of other noninterest expense. The amount of the uncertain tax positions was not deemed to be material. It is not expected that the unrecognized tax benefit will be material within the next 12 months. The Company did not recognize any interest or penalties for the years ended December 31, 2023, 2022 and 2021. The Company is no longer subject to federal or state tax examination by tax authorities for years ending before December 31, 2020. Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. These investments are included in other assets on the balance sheet, with any unfunded commitments included within other liabilities. The qualified affordable housing projects are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is recognized over the period that the Company expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. Prior to 2023, the historic tax credits are accounted for under the equity method, with the expense included within noninterest expense on the consolidated statements of income. Beginning January 1, 2023, with the adoption of ASU 2023-02, the amortization expense for the historic tax credits are accounted for under the proportional amortization method. Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. Comprehensive Income Recognized revenue, expenses, gains, and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale and changes in the fair value of derivative instruments designated as a cash flow hedge, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. Derivative Financial Instruments The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies a |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share | |
Earnings Per Share | Note 2: Earnings Per Share Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares adjusted for the dilutive effect of stock compensation. For the years ended December 31, 2023, 2022 and 2021, 1,096,472, 410,760, and 222,107, respectively, of stock options, restricted stock awards and restricted stock units were excluded from the calculation because they were deemed to be antidilutive. The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, (dollars in thousands, except per share data) 2023 2022 2021 Net Income Available to Common Shareholders $ 35,906 $ 49,338 $ 44,516 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 27,857,420 27,758,336 28,027,454 Dilutive Effect of Stock Compensation 458,167 909,841 940,832 Weighted Average Common Stock Outstanding (Dilutive) 28,315,587 28,668,177 28,968,286 Basic Earnings per Common Share $ 1.29 $ 1.78 $ 1.59 Diluted Earnings per Common Share 1.27 1.72 1.54 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Securities | |
Securities | Note 4: Securities The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2023 and 2022: December 31, 2023 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: Municipal Bonds $ 151,512 $ 47 $ (19,035) $ 132,524 Mortgage-Backed Securities 249,455 2,261 (16,401) 235,315 Corporate Securities 142,098 386 (11,879) 130,605 SBA Securities 18,497 279 (102) 18,674 Asset-Backed Securities 87,054 357 (425) 86,986 Total Securities Available for Sale $ 648,616 $ 3,330 $ (47,842) $ 604,104 December 31, 2022 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 2,621 $ — $ (41) $ 2,580 Municipal Bonds 156,506 62 (25,214) 131,354 Mortgage-Backed Securities 252,919 2,465 (17,600) 237,784 Corporate Securities 116,871 45 (7,089) 109,827 SBA Securities 20,957 79 (159) 20,877 Asset-Backed Securities 46,623 188 (620) 46,191 Total Securities Available for Sale $ 596,497 $ 2,839 $ (50,723) $ 548,613 Securities with a carrying value of $170.7 million at December 31, 2023 were pledged to secure borrowing capacity. The securities portfolio was unencumbered at December 31, 2022. The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022: Less Than 12 Months 12 Months or Greater Total Number of Unrealized Unrealized Unrealized (dollars in thousands, except number of holdings) Holdings Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2023 Municipal Bonds 212 $ 4,052 $ (17) $ 120,527 $ (19,018) $ 124,579 $ (19,035) Mortgage-Backed Securities 128 35,719 (310) 135,829 (16,091) 171,548 (16,401) Corporate Securities 110 14,528 (756) 101,311 (11,123) 115,839 (11,879) SBA Securities 47 1,731 (3) 7,072 (99) 8,803 (102) Asset-Backed Securities 24 39,011 (234) 13,805 (191) 52,816 (425) Total Securities Available for Sale 521 $ 95,041 $ (1,320) $ 378,544 $ (46,522) $ 473,585 $ (47,842) Less Than 12 Months 12 Months or Greater Total Number of Unrealized Unrealized Unrealized (dollars in thousands, except number of holdings) Holdings Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2022 U.S. Treasury Securities 6 $ 2,330 $ (41) $ — $ — $ 2,330 $ (41) Municipal Bonds 225 59,912 (5,321) 69,424 (19,893) 129,336 (25,214) Mortgage-Backed Securities 130 123,224 (5,427) 62,882 (12,173) 186,106 (17,600) Corporate Securities 100 88,486 (5,121) 17,054 (1,968) 105,540 (7,089) SBA Securities 49 2,498 (6) 9,750 (153) 12,248 (159) Asset-Backed Securities 20 21,919 (396) 6,186 (224) 28,105 (620) Total Securities Available for Sale 530 $ 298,369 $ (16,312) $ 165,296 $ (34,411) $ 463,665 $ (50,723) Beginning January 1, 2023, the Company evaluates all securities quarterly to determine if any securities in a loss position require an allowance for credit losses on securities in accordance with ASC 326 - Measurement of Credit Losses on Financial Instruments . At December 31, 2023, 521 debt securities had unrealized losses with aggregate depreciation of approximately 9.2% from the Company’s amortized cost basis. These unrealized losses have not been recognized into income because management does not intend to sell these securities, and it is not more likely than not it will be required to sell the securities before recovery of its amortized cost basis. Furthermore, the unrealized losses are due to changes in interest rates and other market conditions and were not reflective of credit events. To make this determination, consideration is given to such factors as the credit rating of the issuer, level of credit enhancement, changes in credit ratings, market conditions such as current interest rates, any adverse conditions specific to the security, and delinquency status on contractual payments. As of December 31, 2023, there was no allowance for credit losses carried on the Company’s securities portfolio. Accrued interest receivable on securities, which is recorded within accrued interest on the balance sheet, totaled $4.9 million at December 31, 2023 and is excluded from the estimate of credit losses. At December 31, 2022, 530 debt securities had unrealized losses with aggregate depreciation of approximately 9.9% from the Company’s amortized cost basis. For periods prior to the adoption of ASC 326, management conducted a quarterly review and evaluation of its securities for other than temporary impairment. The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of December 31, 2023. Call date is used when a call of the debt security is expected, determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties. (dollars in thousands) Amortized Cost Fair Value December 31, 2023 Due in One Year or Less $ 17,260 $ 17,183 Due After One Year Through Five Years 47,485 45,922 Due After Five Years Through 10 Years 186,291 165,766 Due After 10 Years 42,574 34,258 Subtotal 293,610 263,129 Mortgage-Backed Securities 249,455 235,315 SBA Securities 18,497 18,674 Asset-Backed Securities 87,054 86,986 Totals $ 648,616 $ 604,104 The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Proceeds From Sales of Securities $ 28,756 $ 64,439 $ 11,877 Gross Gains on Sales 247 612 1,200 Gross Losses on Sales (280) (530) (450) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Loans | |
Loans | Note 5: Loans The following table presents the components of the loan portfolio at December 31, 2023 and 2022: December 31, December 31, (dollars in thousands) 2023 2022 Commercial $ 464,061 $ 436,393 Construction and Land Development 232,804 295,554 1-4 Family Construction 65,087 70,242 Real Estate Mortgage: 1-4 Family Mortgage 402,396 355,474 Multifamily 1,388,541 1,306,738 CRE Owner Occupied 175,783 149,905 CRE Nonowner Occupied 987,306 947,008 Total Real Estate Mortgage Loans 2,954,026 2,759,125 Consumer and Other 8,304 8,132 Total Loans, Gross 3,724,282 3,569,446 Allowance for Credit Losses (50,494) (47,996) Net Deferred Loan Fees (6,573) (9,293) Total Loans, Net $ 3,667,215 $ 3,512,157 The following tables present the aging in past due loans and nonaccrual status, with and without an ACL, by loan segment as of December 31, 2023 and 2022: Accruing Interest 30-89 Days 90 Days or Nonaccrual Nonaccrual (dollars in thousands) Current Past Due More Past Due with ACL without ACL Total December 31, 2023 Commercial $ 463,966 $ — $ — $ — $ 95 $ 464,061 Construction and Land Development 232,724 — — — 80 232,804 1-4 Family Construction 64,838 — — — 249 65,087 Real Estate Mortgage: 1-4 Family Mortgage 402,396 — — — — 402,396 Multifamily 1,373,431 15,110 — — — 1,388,541 CRE Owner Occupied 175,289 — — — 494 175,783 CRE Nonowner Occupied 987,306 — — — — 987,306 Consumer and Other 8,303 — — — 1 8,304 Totals $ 3,708,253 $ 15,110 $ — $ — $ 919 $ 3,724,282 Accruing Interest 30-89 Days 90 Days or Nonaccrual Nonaccrual (dollars in thousands) Current Past Due More Past Due with ACL without ACL Total December 31, 2022 Commercial $ 436,323 $ 70 $ — $ — $ — $ 436,393 Construction and Land Development 295,448 — — — 106 295,554 1-4 Family Construction 70,242 — — — — 70,242 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 36,875 — — — — 36,875 1st REM - 1-4 Family 50,945 — — — — 50,945 LOCs and 2nd REM - Rentals 27,985 — — — — 27,985 1st REM - Rentals 239,553 116 — — — 239,669 Multifamily 1,306,738 — — — — 1,306,738 CRE Owner Occupied 149,372 — — — 533 149,905 CRE Nonowner Occupied 947,008 — — — — 947,008 Consumer and Other 8,132 — — — — 8,132 Totals $ 3,568,621 $ 186 $ — $ — $ 639 $ 3,569,446 The Company aggregates loans into credit quality indicators based on relevant information about the ability of borrowers to service their debt by using internal reviews in which management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate, and the fair values of collateral securing the loans. The Company analyzes all loans individually to assign a risk rating, grouped into five major categories defined as follows: Pass Watch Substandard of marketability, inadequate cash flow or collateral support, failure to complete construction on time, or the failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain loss if the deficiencies are not corrected. Doubtful Loss The following table presents loan balances classified by credit quality indicators by year of origination as of December 31, 2023: December 31, 2023 (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total Commercial Pass $ 93,299 $ 121,274 $ 37,056 $ 19,297 $ 18,594 $ 4,507 $ 149,836 $ 443,863 Watch 1,700 318 34 — — — 2,003 4,055 Substandard 3 11,299 — — — 50 4,791 16,143 Total Commercial 95,002 132,891 37,090 19,297 18,594 4,557 156,630 464,061 Current Period Gross Write-offs 72 96 12 — — — — 180 Construction and Land Development Pass 87,402 99,133 34,122 46 — — 12,021 232,724 Substandard — 80 — — — — — 80 Total Construction and Land Development 87,402 99,213 34,122 46 — — 12,021 232,804 Current Period Gross Write-offs — — — — — — — — 1-4 Family Construction Pass 35,172 16,156 941 355 — — 12,214 64,838 Substandard 249 — — — — — — 249 Total 1-4 Family Construction 35,421 16,156 941 355 — — 12,214 65,087 Current Period Gross Write-offs — — — — — — — — Real Estate Mortgage: 1-4 Family Mortgage Pass 74,602 106,085 83,525 52,813 18,789 3,403 62,490 401,707 Substandard — — — — — 659 30 689 Total 1-4 Family Mortgage 74,602 106,085 83,525 52,813 18,789 4,062 62,520 402,396 Current Period Gross Write-offs — — — — — — — — Multifamily Pass 192,078 456,179 444,162 196,784 41,998 45,847 8,577 1,385,625 Watch 2,916 — — — — — — 2,916 Total Multifamily 194,994 456,179 444,162 196,784 41,998 45,847 8,577 1,388,541 Current Period Gross Write-offs — — — — — — — — CRE Owner Occupied Pass 36,255 61,724 40,748 20,610 4,903 8,312 1,672 174,224 Substandard 194 — 494 — — 871 — 1,559 Total CRE Owner Occupied 36,449 61,724 41,242 20,610 4,903 9,183 1,672 175,783 Current Period Gross Write-offs — — — — — — — — CRE Nonowner Occupied Pass 164,226 305,749 253,683 77,618 78,288 66,569 4,521 950,654 Watch 16,301 — 3,213 — — — — 19,514 Substandard 15,183 1,955 — — — — — 17,138 Total CRE Nonowner Occupied 195,710 307,704 256,896 77,618 78,288 66,569 4,521 987,306 Current Period Gross Write-offs — — — — — — — — Total Real Estate Mortgage Loans 501,755 931,692 825,825 347,825 143,978 125,661 77,290 2,954,026 Consumer and Other Pass 2,908 256 9 1,460 6 — 3,665 8,304 Total Consumer and Other 2,908 256 9 1,460 6 — 3,665 8,304 Current Period Gross Write-offs 42 — — — — — 2 44 Total Period Gross Write-offs 114 96 12 — — — 2 224 Total Loans $ 722,488 $ 1,180,208 $ 897,987 $ 368,983 $ 162,578 $ 130,218 $ 261,820 $ 3,724,282 The following table presents the risk category of loans by loan segment as of December 31, 2022: December 31, 2022 (dollars in thousands) Pass Watch Substandard Total Commercial $ 407,241 $ 9,477 $ 19,675 $ 436,393 Construction and Land Development 294,736 712 106 295,554 1-4 Family Construction 70,242 — — 70,242 Real Estate Mortgage: 1-4 Family Mortgage 354,401 681 392 355,474 Multifamily 1,303,468 3,270 — 1,306,738 CRE Owner Occupied 148,268 — 1,637 149,905 CRE Nonowner Occupied 922,657 18,112 6,239 947,008 Consumer and Other 8,132 — — 8,132 Totals $ 3,509,145 $ 32,252 $ 28,049 $ 3,569,446 On January 1, 2023, the Company adopted CECL, which added $650,000 to the total ACL. Under CECL, the Company recorded a $2.1 million provision for credit losses on loans for the year ended December 31, 2023, compared to a $7.7 million and $5.2 million provision for loan losses for the years ended December 31, 2022 and 2021, respectively, under the incurred loss method. Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Allowance for Credit Losses for Loans: Balance at January 1, 2023 $ 6,501 $ 3,911 $ 845 $ 4,325 $ 17,459 $ 1,965 $ 12,576 $ 151 $ 263 $ 47,996 Impact of Adopting CECL (1,158) (1,070) (235) (1,778) 3,318 (943) 2,869 (90) (263) 650 Provision for Credit Losses for Loans 225 (685) (52) 99 1,440 162 780 81 — 2,050 Loans Charged-off (180) — — — — — — (44) — (224) Recoveries of Loans 10 — — 5 — — — 7 — 22 Balance at December 31, 2023 $ 5,398 $ 2,156 $ 558 $ 2,651 $ 22,217 $ 1,184 $ 16,225 $ 105 $ — $ 50,494 The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022 and 2021, prepared using the previous GAAP incurred loss method prior to the adoption of CECL: Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Balance at January 1, 2021 $ 5,773 $ 1,679 $ 812 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 Provision for Loan Losses 488 1,460 (194) (236) 3,093 301 344 (24) (82) 5,150 Loans Charged-off (28) — — (5) — — — (41) — (74) Recoveries of Loans 36 — — 26 — 32 — 9 — 103 Balance at December 31, 2021 $ 6,269 $ 3,139 $ 618 $ 3,757 $ 12,610 $ 1,495 $ 11,335 $ 147 $ 650 $ 40,020 Provision for Loan Losses 235 772 227 280 4,849 470 1,241 13 (387) 7,700 Loans Charged-off (13) — — — — — — (24) — (37) Recoveries of Loans 10 — — 288 — — — 15 — 313 Balance at December 31, 2022 $ 6,501 $ 3,911 $ 845 $ 4,325 $ 17,459 $ 1,965 $ 12,576 $ 151 $ 263 $ 47,996 The following tables present the balance in the allowance for credit losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2023 and 2022: Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamil y Occupied Occupied and Other Unallocated Total ACL at December 31, 2023 Individually Evaluated for Impairment $ 8 $ — $ — $ — $ — $ — $ 95 $ — $ — $ 103 Collectively Evaluated for Impairment 5,390 2,156 558 2,651 22,217 1,184 16,130 105 — 50,391 Totals $ 5,398 $ 2,156 $ 558 $ 2,651 $ 22,217 $ 1,184 $ 16,225 $ 105 $ — $ 50,494 ALL at December 31, 2022 Individually Evaluated for Impairment $ 71 $ — $ — $ — $ — $ — $ — $ — $ — $ 71 Collectively Evaluated for Impairment 6,430 3,911 845 4,325 17,459 1,965 12,576 151 263 47,925 Totals $ 6,501 $ 3,911 $ 845 $ 4,325 $ 17,459 $ 1,965 $ 12,576 $ 151 $ 263 $ 47,996 Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamily Occupied Occupied and Other Total Loans at December 31, 2023 Individually Evaluated for Impairment $ 16,143 $ 80 $ 249 $ 689 $ — $ 1,559 $ 17,138 $ — $ 35,858 Collectively Evaluated for Impairment 447,918 232,724 64,838 401,707 1,388,541 174,224 970,168 8,304 3,688,424 Totals $ 464,061 $ 232,804 $ 65,087 $ 402,396 $ 1,388,541 $ 175,783 $ 987,306 $ 8,304 $ 3,724,282 Loans at December 31, 2022 Individually Evaluated for Impairment $ 19,675 $ 106 $ — $ 392 $ — $ 1,637 $ 6,239 $ — $ 28,049 Collectively Evaluated for Impairment 416,718 295,448 70,242 355,082 1,306,738 148,268 940,769 8,132 3,541,397 Totals $ 436,393 $ 295,554 $ 70,242 $ 355,474 $ 1,306,738 $ 149,905 $ 947,008 $ 8,132 $ 3,569,446 The following table presents the amortized cost basis of collateral dependent loans by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of December 31, 2023: Primary Type of Collateral Business ACL (dollars in thousands) Real Estate Assets Other Total Allocation December 31, 2023 Commercial $ — $ 5,782 $ 10,361 $ 16,143 $ 8 Construction and Land Development 80 — — 80 — 1-4 Family Construction 249 — — 249 — Real Estate Mortgage: 1-4 Family Mortgage 689 — — 689 — CRE Owner Occupied 1,559 — — 1,559 — CRE Nonowner Occupied 17,138 — — 17,138 95 Totals $ 19,715 $ 5,782 $ 10,361 $ 35,858 $ 103 Accrued interest receivable on loans, which is recorded within accrued interest on the balance sheet, totaled $11.8 million at December 31, 2023, and was excluded from the estimate of credit losses. Effective January 1, 2023, the Company adopted the provision of ASU 2022-02, which eliminated the accounting for troubled debt restructurings, while expanding loan modification and vintage disclosure requirements. For the twelve months ended December 31, 2023, the Company modified one CRE nonowner occupied loan, with an outstanding balance of $9.6 million, for a borrower experiencing financial difficulty by granting a 12-month extension at a below market rate. There was no forgiveness of principal and this loan was current with its modified terms as of December 31, 2023. Prior to the adoption of ASU 2022-02, at December 31, 2022, there were two loans classified as TDRs with total aggregate outstanding balances of $188,000 . Pre-ASC 326 Adoption Impaired Loan Disclosures The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of December 31, 2022: December 31, 2022 Recorded Principal Related (dollars in thousands) Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 19,508 $ 19,508 $ — Construction and Land Development 106 713 — Real Estate Mortgage: 1-4 Family Mortgage 392 392 — CRE Owner Occupied 1,637 1,726 — CRE Nonowner Occupied 6,239 6,239 — Totals 27,882 28,578 — Loans With An Allowance for Loan Losses: Commercial 167 167 71 Totals 167 167 71 Grand Totals $ 28,049 $ 28,745 $ 71 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Average Interest Average Interest (dollars in thousands) Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 21,276 $ 782 $ 5,008 $ 268 Construction and Land Development 117 — 141 — Real Estate Mortgage: 1-4 Family Mortgage 402 21 1,401 71 CRE Owner Occupied 1,755 65 2,471 106 CRE Nonowner Occupied 6,390 342 4,247 215 Totals 29,940 1,210 13,268 660 Loans With An Allowance for Loan Losses: Commercial 180 5 13,761 755 Consumer and Other — — — — Totals 180 5 13,761 755 Grand Totals $ 30,120 $ 1,215 $ 27,029 $ 1,415 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Premises and Equipment | Note 6: Premises and Equipment Premises and equipment are summarized as follows for the years ended December 31, 2023 and 2022: Range of December 31, December 31, (dollars in thousands) Useful Lives 2023 2022 Land N/A $ 8,119 $ 5,174 Building 15 - 39 Years 41,266 41,265 Leasehold Improvements 3 ‑ 10 Years 1,951 2,380 Furniture and Equipment 2 ‑ 5 Years 6,544 6,978 Subtotal 57,880 55,797 Accumulated Depreciation (8,994) (7,352) Totals $ 48,886 $ 48,445 Depreciation and amortization expense charged to noninterest expense for the years ended December 31, 2023, 2022 and 2021, totaled $2.5 million, $2.6 million and $2.4 million, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets | |
Intangible Assets | Note 7: Intangible Assets The following table presents a summary of intangible assets at December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Core Deposit Intangible $ 1,093 $ 1,093 Favorable Lease 445 445 Subtotal 1,538 1,538 Accumulated Amortization (1,350) (1,250) Totals $ 188 $ 288 Amortization expense of intangible assets was $100,000 for the year ended December 31, 2023, and $191,000 for the years ended December 31, 2022 and 2021. The following table presents the estimated future amortization of the favorable lease asset for the next five years and thereafter. The projections of amortization expense are based on existing asset balances as of December 31, 2023. Favorable (dollars in thousands) Lease 2024 $ 34 2025 34 2026 34 2027 34 2028 34 Thereafter 18 Totals $ 188 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | Note 8: Leases The Company’s operating leases are real estate leases which are comprised of bank branches and office space with terms extending through 2029. Prior to 2022, these leases were not recognized on the Company's consolidated financial statements. With the adoption of ASU 2016-02, operating lease agreements were required to be recognized on the consolidated balance sheets as an ROU asset and a corresponding lease liability. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Operating lease ROU assets represent the Company’s right to use the underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using the rate implicit in the lease. As the rate implicit in the lease is rarely determinable, the Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments. The Company's incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance, property taxes and other costs associated with the lease. These variable payments are not included in the lease liability and are expensed as incurred. The following table presents the components of lease expense and cash flow information related to operating leases as of the periods indicated: December 31, (dollars in thousands) 2023 2022 Operating Lease Cost $ 557 $ 538 Variable Lease Cost 262 253 Total Lease Cost $ 819 $ 791 Prior to the adoption of ASU 2016-02, rent expense, net of rental income, including common area maintenance pertaining to banking premises totaled $52,000 for the year ended December 31, 2021. The following table presents other information on the Company’s operating leases for the years ended December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Operating Lease Right-of-Use Assets $ 1,938 $ 2,472 Operating Lease Liabilities 1,972 2,496 Weighted Average Remaining Lease Term (in Years) 4.95 6.12 Weighted Average Discount Rate 1.68 % 1.46 % Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 543 $ 513 The following table presents the future expected operating lease payments under the Company's operating lease agreements as of December 31, 2023: December 31, (dollars in thousands) 2023 2024 $ 587 2025 540 2026 354 2027 251 2028 254 Thereafter 53 Total Undiscounted Lease Payments 2,039 Discount for Present Value of Expected Cash Flows (67) Total Lease Liability $ 1,972 The Greenwood location is leased pursuant to the terms of a non‑cancelable lease agreement with Bridgewater Properties Greenwood, LLC, a related party through common ownership, in effect at December 31, 2023. The lease contains one option to extend the lease for a period of five years. Future minimum rent commitments under the operating lease are listed below at December 31, 2023. (dollars in thousands) 2023 2024 $ 178 2025 181 2026 108 Total $ 467 The Company receives rents from the lease of office and retail space in its corporate headquarters building. Rental income is included in noninterest expense as an offset to rental expense. Future minimum rental income under these leases are listed below at December 31, 2023. (dollars in thousands) 2023 2024 $ 514 2025 519 2026 301 2027 263 2028 231 Thereafter 486 Total $ 2,314 Rental income, which is included in occupancy and equipment expense, including common area maintenance pertaining to banking premises for the years ended December 31, 2023, 2022 and 2021, totaled $894,000, $907,000 and $634,000, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits. | |
Deposits | Note 9: Deposits The following table presents the composition of deposits at December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Transaction Deposits $ 1,449,765 $ 1,336,264 Savings and Money Market Deposits 935,091 1,031,873 Time Deposits 300,651 272,253 Brokered Deposits 1,024,441 776,153 Totals $ 3,709,948 $ 3,416,543 Brokered deposits contained brokered transaction and money market accounts of $174.0 million and $184.3 million as of December 31, 2023 and 2022, respectively. The following table presents the scheduled maturities of brokered and customer time deposits at December 31, 2023: December 31, (dollars in thousands) 2023 Less than 1 Year $ 337,988 1 to 2 Years 277,949 2 to 3 Years 288,862 3 to 4 Years 76,411 4 to 5 Years 124,435 Greater than 5 Years 45,465 Totals $ 1,151,110 The aggregate amount of time deposits greater than $250,000 was approximately $138.4 million and $92.3 million at December 31, 2023 and 2022, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | Note 10: Derivative Instruments and Hedging Activities The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative financial instruments are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current earnings. Non-hedge Derivatives The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with large U.S. financial institutions in order to minimize the risk to the Company. These swaps are derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counter party or client owes the Company, and results in credit risk to the Company. When the fair value of a derivative instrument contract is negative, the Company owes the client or counterparty and therefore, the Company has no credit risk. The following table presents a summary of the Company’s interest rate swaps to facilitate customer transactions as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 63,814 $ 6,981 $ 65,315 $ 8,240 Liabilities 63,814 (6,981) 65,315 (8,240) Total $ 127,628 $ — $ 130,630 $ — Cash Flow Hedging Derivatives For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. The Company utilizes cash flow hedges to manage interest rate exposure for the brokered deposit and wholesale borrowing portfolios. During the next 12 months, the Company estimates that $7.5 million will be reclassified to interest expense, as a reduction of the expense. The following table presents a summary of the Company’s interest rate swaps designated as cash flow hedges as of December 31, 2023 and 2022: (dollars in thousands) December 31, 2023 December 31, 2022 Notional Amount $ 183,000 $ 163,000 Weighted Average Pay Rate 2.00 % 1.90 % Weighted Average Receive Rate 5.48 % 3.47 % Weighted Average Maturity (Years) 4.04 5.15 Net Unrealized Gain $ 5,271 $ 9,175 The Company purchases interest rate caps, designated as cash flow hedges, of certain deposit liabilities. The interest rate caps require receipt of variable amounts from the counterparties when interest rates rise above the strike price in the contracts. For the years ended December 31, 2023 and 2022, the Company recognized amortization expense on the interest rate caps of $791,000 and $772,000, respectively, which was recorded as a component of interest expense on brokered deposits and FHLB advances. The following table presents a summary of the Company’s interest rate caps designated as cash flow hedges as of December 31, 2023 and 2022: (dollars in thousands) December 31, 2023 December 31, 2022 Notional Amount $ 125,000 $ 125,000 Unamortized Premium Paid 5,081 5,872 Weighted Average Strike Rate 0.96 % 0.96 % Weighted Average Maturity (Years) 6.34 7.35 The following table presents a summary of the Company’s interest rate contracts as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 135,000 $ 6,891 $ 125,000 $ 10,477 Liabilities 48,000 (1,620) 38,000 (1,302) Interest rate cap agreements: Assets 125,000 18,717 125,000 19,406 The Company is party to collateral support agreements with certain derivative counterparties. These agreements require that the Company maintain collateral based on the fair values of derivative transactions. In the event of default by the Company, the counterparty would be entitled to the collateral. As of both December 31, 2023 and 2022, the Company had pledged cash collateral for the Company’s derivative contracts of $-0-. In addition, as of December 31, 2023 and 2022, the Company's derivative counterparties pledged cash collateral to the Company of $31.8 million and $36.4 million, respectively. The following table summarizes gross and net information about derivative instruments that are eligible for offset in the balance sheet at December 31, 2023 and 2022: Gross Amounts Gross Amounts Assets (Liabilities) of Recognized Offset in the Presented in the Financial Cash Collateral Net Assets (dollars in thousands) Assets (Liabilities) Balance Sheet Balance Sheet Instruments Received (Paid) (Liabilities) December 31, 2023 Assets $ 32,589 $ — $ 32,589 $ — $ 31,783 $ 806 Liabilities (8,601) — (8,601) — — (8,601) December 31, 2022 Assets $ 38,123 $ — $ 38,123 $ — $ 36,353 $ 1,770 Liabilities (9,542) — (9,542) — — (9,542) The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Derivatives in Location of Gain (Loss) Gain (Loss) Cash Flow Hedging Reclassified Reclassified from Relationships from AOCI into Income AOCI into Earnings Interest rate swaps Interest expense $ 5,783 $ 679 $ (1,117) Interest rate caps Interest expense 319 (671) (403) No amounts were reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness for these derivatives during the years ended December 31, 2023, 2022 and 2021, and no amounts are expected to be reclassified from accumulated other comprehensive income into net income related to hedge ineffectiveness over the next twelve months. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Other Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Bank Advances and Other Borrowings | |
Federal Home Loan Bank Advances and Other Borrowings | Note 11: Federal Home Loan Bank Advances and Other Borrowings Federal Home Loan Bank Advances. The Company has entered into an Advances, Pledge, and Security Agreement with the FHLB whereby specific mortgage loans of the Bank’s with principal balances of $1.20 billion at December 31, 2023 and 2022, respectively, were pledged to the FHLB as collateral. FHLB advances are also secured with FHLB stock owned by the Company. Total remaining available capacity under the agreement was $498.7 million and $390.9 million at December 31, 2023 and 2022, respectively. The following table presents FHLB advances, by maturity, at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Average Total Average Total (dollars in thousands) Rate Outstanding Rate Outstanding Less than 1 Year 5.31 % $ 233,000 4.30 % $ 83,000 1 to 2 Years 4.31 25,000 1.05 5,000 2 to 3 Years 3.45 21,500 1.22 5,000 3 to 4 Years 3.94 17,500 0.78 4,000 4 to 5 Years 4.01 22,500 — — Totals $ 319,500 $ 97,000 Federal Reserve Discount Window. At December 31, 2023 and 2022, the Company had the ability to draw additional borrowings of Federal Funds Purchased. Federal funds purchased mature Line of Credit. The following table presents the revolving line of credit at December 31, 2023 and 2022: Total Debt Total Debt Outstanding Outstanding Interest Name Maturity Date December 31, 2023 December 31, 2022 Rate Coupon Structure Revolving Credit Facility (1) September 1, 2024 $ 13,750 13,750 8.50 % Variable with Floor (2) (1) On September 1, 2022, the Company entered into a second amendment to the agreement which increased the maximum principal amount of the Company’s revolving line of credit from $25.0 million to $40.0 million and extended the maturity date from February 28, 2023 to September 1, 2024. (2) The variable interest rate is equal to the greater of the Wall Street Journal Prime Rate in effect or a floor rate of 3.85% . |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debentures | |
Subordinated Debentures | Note 12: Subordinated Debentures The following presents a summary of the Company’s subordinated debentures as of December 31, 2023 and 2022: Total Debt Total Debt Date First Maturity Outstanding Outstanding Interest Name Established Redemption Date Date December 31, 2023 December 31, 2022 Rate Coupon Structure (dollars in thousands) 2030 Notes June 19, 2020 July 1, 2025 July 1, 2030 50,000 50,000 5.25 % Fixed-to-Floating (1) 2031 Notes July 8, 2021 July 15, 2026 July 15, 2031 30,000 30,000 3.25 % Fixed-to-Floating (2) Subordinated Debentures 80,000 80,000 Debt Issuance Costs (712) (1,095) Subordinated Debentures, Net of Issuance Costs $ 79,288 $ 78,905 (1) Migrates to three month term SOFR + 5.13% beginning July 1, 2025 until either the early redemption date or the maturity date. (2) Migrates to three month term SOFR + 2.52% beginning July 15, 2026 until either the early redemption date or the maturity date. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related-Party Transactions | |
Related-Party Transactions | Note 13: Related-Party Transactions In the ordinary course of business, the Company has granted loans to executive officers, directors, principal shareholders, and their affiliates (related parties). The following table presents the activity associated with loans made between related parties for the years ended December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Beginning Balance $ 27,676 $ 49,964 New Loans and Advances 8,587 16,006 Repayments (4,423) (38,294) Totals $ 31,840 $ 27,676 Deposits from related parties held by the Company at December 31, 2023 and 2022 were $17.9 million and $22.2 million, respectively. The Company has a related party lease which is disclosed in “Note 8 – Leases”. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 14: Income Taxes The following table presents the allocation of federal and state income taxes between current and deferred portions as of December 31, 2023, 2022 and 2021: (dollars in thousands) 2023 2022 2021 Current Tax Provision $ 11,886 $ 19,719 $ 20,408 Deferred Tax Expense (Benefit) 676 (1,401) (4,522) Total Income Tax Provision $ 12,562 $ 18,318 $ 15,886 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows as of December 31, 2023, 2022 and 2021: 2023 2022 2021 (dollars in thousands) Amount Percent Amount Percent Amount Percent Amount of Statutory Rate $ 11,030 21.0 % $ 15,059 21.0 % $ 12,930 21.0 % State Income Taxes (Net of Federal Income Tax Benefit) 3,511 6.6 5,349 7.5 4,647 7.6 Interest on Investment Securities and Loans Exempt From Federal Income Tax (1,175) (2.3) (899) (1.3) (657) (1.1) Tax Credits (91) 0.0 (835) (1.2) (540) (0.9) Other Differences (713) (1.4) (356) (0.5) (494) (0.8) Totals $ 12,562 23.9 % $ 18,318 25.5 % $ 15,886 25.8 % The Company’s effective tax rate may fluctuate as it is impacted by the level and timing of the Company’s utilization of historic tax credits, low-income housing tax credits, the level of tax-exempt investments and loans, and the overall level of pre-tax income. The following table presents the components of the net deferred tax asset included in other assets, as of December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Depreciation $ (279) $ (325) Allowance for Credit Losses 14,261 13,639 Unrealized Loss on Securities Available for Sale 12,793 13,759 Unrealized Gain on Cash Flow Hedges (5,434) (6,527) Prepaid Expenses (221) (886) Deferred Compensation — 510 Deferred Loan Fees 1,856 2,745 Reserve for Off-Balance Sheet Credit Exposures 843 — Other 108 2 Totals $ 23,927 $ 22,917 |
Tax Credit Investments
Tax Credit Investments | 12 Months Ended |
Dec. 31, 2023 | |
Tax Credit Investments | |
Tax Credit Investments | Note 15: Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. The Company’s tax credit investments are limited to existing lending relationships with well-known developers and projects within the Company’s market area. The following table presents a summary of the Company’s investments in qualified affordable housing projects and other tax credit investments at December 31, 2023 and 2022: (dollars in thousands) December 31, 2023 December 31, 2022 Investment Accounting Method (1) Investment Unfunded Commitment (2) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 16,897 $ 7,579 $ 4,701 $ — Federal Historic Tax Credit (FHTC) Equity N/A N/A 1,785 323 Federal Historic Tax Credit (FHTC) Proportional Amortization 3,403 2,353 N/A N/A Total $ 20,300 $ 9,932 $ 6,486 $ 323 (1) The Company early adopted ASU 2023-02 applying the modified retrospective method. Effective January 1, 2023, historic tax credits were accounted for under the proportional amortization method. (2) All commitments are expected to be paid by the Company by December 31, 2024. Year Ended December 31, (dollars in thousands) 2023 2022 2021 Amortization Expense (1) LIHTC $ 1,810 $ 271 $ 280 FHTC 668 408 562 Total $ 2,478 $ 679 $ 842 Tax Benefit Recognized (2) LIHTC $ (1,693) $ (330) $ (330) FHTC (912) (607) (625) Total $ (2,605) $ (937) $ (955) (1) The amortization expense for the LIHTC investments are included in income tax expense. Prior to 2023, the amortization for the FHTC tax credits are included in noninterest expense. Beginning January 1, 2023, with the adoption of ASU 2023-02, the amortization expense for the FHTC investments are included in income tax expense. (2) All of the tax benefits recognized are included in income tax expense. Prior to 2023, the tax benefit recognized for the FHTC investments primarily reflected the tax credits generated from the investments, and excluded the net tax expense/benefit of the investments’ income/loss. |
Commitments, Contingencies and
Commitments, Contingencies and Credit Risk | 12 Months Ended |
Dec. 31, 2023 | |
Commitments, Contingencies and Credit Risk | |
Commitments, Contingencies and Credit Risk | Note 16: Commitments, Contingencies and Credit Risk Financial Instruments with Off-Balance Sheet Credit Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual, or notional, amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding at December 31, 2023 and 2022: December 31, December 31, (dollars in thousands) 2023 2022 Unfunded Commitments Under Lines of Credit $ 546,632 $ 848,734 Letters of Credit 103,289 115,769 Totals $ 649,921 $ 964,503 Commitments to extend credit are agreements to lend to a customer at fixed or variable rates as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable; inventory; property, plant, and equipment; real estate; and stocks and bonds. Unfunded commitments under commercial lines of credit, home equity lines of credit, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit may or may not require collateral and may or may not contain a specific maturity date. Standby letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all standby letters of credit issued have expiration dates within two years. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. The Company had outstanding letters of credit with the FHLB in total amounts of $114.4 million and $78.4 million at December 31, 2023 and 2022, respectively, on behalf of customers and to secure public deposits. The ACL for off-balance sheet credit exposures was $3.0 million at December 31, 2023 and is separately classified on the balance sheet within other liabilities. Prior to the adoption of CECL, the Company’s ACL for off-balance sheet credit exposures was not material. The following table presents the balance and activity in the allowance for credit losses for off-balance sheet credit exposures for the year ended December 31, 2023: (dollars in thousands) December 31, 2023 Allowance for Credit Losses: Beginning Balance, Prior to Adoption of CECL $ 360 Impact of Adopting CECL 4,850 Provision for (Recovery of) Off-Balance Sheet Credit Exposures (2,225) Total Ending Balance $ 2,985 Legal Contingencies Various legal claims arise from time to time in the normal course of business. In the opinion of management, any liability resulting from such proceedings would not have a material impact on the consolidated financial statements. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options and Restricted Stock | |
Stock Options and Restricted Stock | Note 17: Stock Options and Restricted Stock In 2012, the Company adopted the Bridgewater Bancshares, Inc. 2012 Combined Incentive and Non-Statutory Stock Option Plan (the “2012 Plan”) under which the Company was able to grant options to its directors, officers, and employees for up to 750,000 shares of common stock. Both incentive stock options and nonqualified stock options were granted under the 2012 Plan. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant, and the maximum term of each outstanding option is ten years. All outstanding options have been granted with vesting periods of four In 2017, the Company adopted the Bridgewater Bancshares, Inc. 2017 Combined Incentive and Non-Statutory Stock Option Plan (the “2017 Plan”). Under the 2017 Plan, the Company may grant options to its directors, officers, employees and consultants for up to 1,500,000 shares of common stock. Both incentive stock options and nonqualified stock options may be granted under the 2017 Plan. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant and the maximum term of each outstanding option is ten years. All outstanding options have been granted with vesting periods of four In 2019, the Company adopted the Bridgewater Bancshares, Inc. 2019 Equity Incentive Plan (the “2019 EIP”). The types of awards which may be granted under the 2019 EIP include incentive and nonqualified stock options, stock appreciation rights, stock awards, restricted stock units, restricted stock and cash incentive awards. The Company may grant these awards to its directors, officers, employees and certain other service providers for up to 1,000,000 shares of common stock. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant and the maximum term of each award is ten years. All outstanding awards have been granted with vesting periods of four years. As of December 31, 2023, and 2022, there were -0- and 231,363 shares, respectively, of the Company’s common stock reserved for future grants under the 2019 EIP. At the 2023 Annual Meeting of Shareholders (the “Annual Meeting”) of the Company, which was held on April 25, 2023, the Company's shareholders approved the Bridgewater Bancshares, Inc. 2023 Equity Incentive Plan (the “2023 EIP”), which the Company's board of directors had adopted on February 28, 2023, subject to shareholder approval at the Annual Meeting. Under the 2023 EIP, the Company may grant incentive and nonqualified stock options, stock appreciation rights, stock awards, restricted stock units, restricted stock and cash incentive awards. The Company may grant these awards to its directors, officers, employees and certain other service providers for up to 1,500,000 shares of common stock. The exercise price of each option equals the fair market value of the Company’s stock on the date of grant and the maximum term of each award is ten years . All outstanding awards have been granted with a vesting period of four years . As of December 31, 2023, there were 1,107,752 shares of the Company’s common stock reserved for future grants under the 2023 EIP. Stock Options The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on an industry index as described below. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. Historically, the Company has not paid a dividend on its common stock and does not expect to do so in the near future. The Company used the S&P 600 CM Bank Index as its historical volatility index. The S&P 600 CM Bank Index is an index of publicly traded small capitalization, regional, commercial banks located throughout the United States. There were 60 banks in the index ranging in market capitalization from $500 million up to $4.0 billion. The weighted average assumptions used in the model for valuing stock option grants in 2023 is as follows: December 31, 2023 Dividend Yield — % Expected Life 7 Years Expected Volatility 36.85 % Risk-Free Interest Rate 4.21 % The following table presents a summary of the status of the Company’s outstanding stock options for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Outstanding at Beginning of Year 1,913,444 $ 9.35 1,768,745 $ 7.67 Granted 421,500 10.84 290,000 17.50 Exercised (305,950) 3.15 (133,301) 4.33 Forfeitures (14,000) 14.63 (12,000) 14.77 Outstanding at Period End 2,014,994 $ 10.57 1,913,444 $ 9.35 Options Exercisable at Period End 1,348,744 $ 9.36 1,492,069 $ 7.51 For the years ended December 31, 2023, 2022 and 2021, the Company recognized compensation expense for stock options of $851,000, $1.1 million and $922,000, respectively. The following table presents information pertaining to options outstanding at December 31, 2023: Options Outstanding Options Exercisable Weighted Average Number of Weighted Average Remaining Contractual Number of Weighted Average Range of Exercise Prices Options Exercise Price Life in Years Options Exercise Price $ 3.00 - 3.99 10,000 $ 3.58 1.0 10,000 $ 3.58 7.00 - 7.99 891,966 7.47 3.8 891,966 7.47 8.00 - 8.99 17,500 8.76 6.3 11,250 8.76 10.00 - 10.99 249,000 10.63 9.5 7,500 10.08 11.00 - 11.99 267,500 11.15 8.5 73,000 11.29 12.00 - 12.99 263,528 12.90 5.6 257,278 12.91 13.00 - 13.99 25,000 13.22 4.4 25,000 13.22 17.00 - 17.99 290,500 17.50 8.1 72,750 17.50 Totals 2,014,994 $ 10.57 6.0 1,348,744 $ 9.36 As of December 31, 2023, there was $2.8 million of total unrecognized compensation cost related to nonvested stock options that is expected to be recognized over a weighted-average period of 3.0 years. The following table presents an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the year ended December 31, 2023: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2022 421,375 $ 4.87 Granted 421,500 5.04 Vested (171,625) 4.40 Forfeited (5,000) 5.74 Nonvested Options at December 31, 2023 666,250 $ 5.09 Restricted Stock Awards In 2019 and 2020, the Company granted restricted stock awards out of the 2019 EIP. These awards vest in equal annual installments on the first four The following table presents an analysis of nonvested restricted stock awards outstanding for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Number of Average Grant Number of Average Grant Shares Date Fair Value Shares Date Fair Value Nonvested at December 31, 2022 38,762 $ 12.50 75,113 $ 12.59 Granted — — — — Vested (35,101) 12.69 (35,351) 12.69 Forfeited (250) 12.92 (1,000) 12.92 Nonvested at December 31, 2023 3,411 $ 10.53 38,762 $ 12.50 Compensation expense associated with the restricted stock awards is recognized on a straight-line basis over the period that the restrictions associated with the awards lapse based on the total cost of the award at the grant date. For the years ended December 31, 2023, 2022 and 2021, the Company recognized compensation expense for restricted stock awards of $417,000, $448,000 and $455,000, respectively. As of December 31, 2023, there was $13,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2019 EIP that is expected to be recognized over a weighted-average period of 0.4 year. In addition, during the year ended December 31, 2023, the Company issued 44,753 shares of common stock to directors as a part of their compensation for their annual services on the Company’s board of directors. The aggregate value of the shares issued to directors of $481,000 was included in stock based compensation expense in the accompanying consolidated statements of shareholders’ equity. Restricted Stock Units The Company has granted restricted stock units out of the 2019 EIP and 2023 EIP. Restricted stock units represent the right to receive one share of Company stock upon vesting and vest in equal annual installments on the first four The following table presents an analysis of nonvested restricted stock units outstanding for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Number of Average Grant Number of Average Grant Shares Date Fair Value Shares Date Fair Value Nonvested at December 31, 2022 351,310 $ 16.30 344,908 $ 15.02 Granted 221,561 12.77 112,760 18.72 Vested (121,603) 15.53 (96,786) 14.65 Forfeited (10,253) 17.79 (9,572) 15.12 Nonvested at December 31, 2023 441,015 $ 14.71 351,310 $ 16.30 Compensation expense associated with the restricted stock units is recognized on a straight-line basis over the period that the restrictions associated with the units lapse based on the total cost of the unit at the grant date. For the years ended December 31, 2023, 2022 and 2021, the Company recognized compensation expense for restricted stock units of $2.2 million, $1.5 million and $731,000, respectively. As of December 31, 2023, there was $6.0 million of total unrecognized compensation cost related to nonvested restricted stock units granted under the 2019 EIP or 2023 EIP that is expected to be recognized over a weighted-average period of 2.8 years. |
Profit Sharing Plan
Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2023 | |
Profit Sharing Plan | |
Profit Sharing Plan | Note 18: Profit Sharing Plan The Company has a combined profit sharing 401(k) plan which provides that an annual contribution up to 100% of each participating employee’s total pay, may be contributed to the plan. Employees are eligible to participate after meeting certain eligibility requirements as defined in the plan and are allowed to make pre-tax contributions up to the maximum amount allowed by the Internal Revenue Service. The terms of the 401(k) plan require employer match contributions equal to 100% of the employee contributions up to 4% of pay. In addition, the terms of the plan allow for discretionary profit sharing contributions as determined by the Company and approved by the Board of Directors. The employer match contributions for the 401(k) plan were $1.0 million, $1.0 million, and $804,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The total employer discretionary profit sharing contributions to the plan were $824,000, $793,000, and $636,000 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Deferred Compensation Plan
Deferred Compensation Plan | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Compensation Plan | |
Deferred Compensation Plan | Note 19: Deferred Compensation Plan In 2013, the Company implemented a deferred compensation plan for certain employees which allows the Company to make a discretionary contribution to the account of any employee designated as a participant in the plan based upon the participant’s performance for the calendar year. Company contributions to the plan vest on the fourth anniversary of the last day of the calendar year for which the contribution was made to the plan and accrue interest at a rate equal to the Bank’s return on average equity for the immediately preceding calendar year, or an alternative rate set by the Company’s board of directors. Distribution of amounts contributed under the plan, including accrued interest, is made in a lump sum cash payment within 75 days following the date such amounts become vested. As of December 31, 2023 and 2022, the Company had a liability of $-0- and $1.8 million, respectively, recorded on the consolidated balance sheets. There were no new contributions made to the plan during the years ended December 31, 2023 and 2022. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Preferred Stock | |
Preferred Stock | Note 20: Preferred Stock In 2021, the Company announced the closing of its underwritten public offering of 2,400,000 depositary shares, each representing a 1/100 th 1/100 th |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Capital | |
Regulatory Capital | Note 21: Regulatory Capital The Company and the Bank are subject to various regulatory requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines, 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 Bank must also meet certain specific capital guidelines under the regulatory framework for prompt corrective action. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets (referred to as the “leverage ratio”), as defined under the applicable regulatory capital rules. The following tables present the capital amounts and ratios for the Company, on a consolidated basis, and the Bank as of December 31, 2023 and 2022: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Company (Consolidated): Total Risk-based Capital $ 570,770 13.97 % $ 326,872 8.00 % $ 429,019 10.50 % N/A N/A Tier 1 Risk-based Capital 440,947 10.79 245,154 6.00 347,301 8.50 N/A N/A Common Equity Tier 1 Capital 374,433 9.16 183,865 4.50 286,013 7.00 N/A N/A Tier 1 Leverage Ratio 440,947 9.57 184,383 4.00 184,383 4.00 N/A N/A Bank: Total Risk-based Capital $ 554,269 13.58 % $ 326,528 8.00 % $ 428,568 10.50 % $ 408,160 10.00 % Tier 1 Risk-based Capital 503,787 12.34 244,896 6.00 346,936 8.50 326,528 8.00 Common Equity Tier 1 Capital 503,787 12.34 183,672 4.50 285,712 7.00 265,304 6.50 Tier 1 Leverage Ratio 503,787 10.95 184,037 4.00 184,037 4.00 230,047 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Company (Consolidated): Total Risk-based Capital $ 536,352 13.15 % $ 326,190 8.00 % $ 428,125 10.50 % N/A N/A Tier 1 Risk-based Capital 409,092 10.03 244,643 6.00 346,577 8.50 N/A N/A Common Equity Tier 1 Capital 342,578 8.40 183,482 4.50 285,417 7.00 N/A N/A Tier 1 Leverage Ratio 409,092 9.55 171,368 4.00 171,368 4.00 N/A N/A Bank: Total Risk-based Capital $ 508,760 12.47 % $ 326,288 8.00 % $ 428,253 10.50 % $ 407,860 10.00 % Tier 1 Risk-based Capital 460,404 11.29 244,716 6.00 346,681 8.50 326,288 8.00 Common Equity Tier 1 Capital 460,404 11.29 183,537 4.50 285,502 7.00 265,109 6.50 Tier 1 Leverage Ratio 460,404 10.76 171,113 4.00 171,113 4.00 213,891 5.00 The Company and the Bank must maintain a capital conservation buffer as defined by Basel III regulatory capital guidelines, in order to avoid limitations on capital distributions, including dividend payments, stock repurchases and certain discretionary bonus payments to executive officers. As of December 31, 2023 and 2022, the capital ratios of the Company and the Bank were in excess of the quantitative capital ratio standards applicable on those dates. However, there can be no assurance that the Company and the Bank will continue to maintain such status in the future. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement | |
Fair Value Measurement | Note 22: Fair Value Measurement The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilized quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instruments. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy to value certain financial instruments at fair value. The Company has not elected to measure any existing financial instruments at fair value; however, it may elect to measure newly acquired financial instruments at fair value in the future. Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. There have been no changes in the methodologies used at December 31, 2023. The following table presents the balances of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: Municipal Bonds $ — $ 132,524 $ — $ 132,524 Mortgage-Backed Securities — 235,315 — 235,315 Corporate Securities — 130,605 — 130,605 SBA Securities — 18,674 — 18,674 Asset-Backed Securities — 86,986 — 86,986 Interest Rate Caps — 18,717 — 18,717 Interest Rate Swaps — 13,872 — 13,872 Total Fair Value of Financial Assets $ — $ 636,693 $ — $ 636,693 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 8,601 $ — $ 8,601 Total Fair Value of Financial Liabilities $ — $ 8,601 $ — $ 8,601 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 2,580 $ — $ — $ 2,580 Municipal Bonds — 131,354 — 131,354 Mortgage-Backed Securities — 237,784 — 237,784 Corporate Securities — 109,827 — 109,827 SBA Securities — 20,877 — 20,877 Asset-Backed Securities — 46,191 — 46,191 Interest Rate Caps — 19,406 — 19,406 Interest Rate Swaps — 18,717 — 18,717 Total Fair Value of Financial Assets $ 2,580 $ 584,156 $ — $ 586,736 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 9,542 $ — $ 9,542 Total Fair Value of Financial Liabilities $ — $ 9,542 $ — $ 9,542 Investment Securities When available, the Company uses quoted market prices to determine the fair value of investment securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s investments, when quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market, and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially, all of these assumptions are observable in the marketplace and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, or cannot be obtained or corroborated, a security is generally classified as Level 3. Interest Rate Caps Interest Rate Swaps Interest rate swaps are traded in over-the-counter markets where quoted market prices are not readily available. For those interest rate swaps, fair value is determined using internally developed models of a third party that uses primarily market observable inputs, such as yield curves and option volatilities, and accordingly are valued using Level 2 inputs. Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present nonrecurring fair value measurements of certain assets for the periods ended December 31, 2023, 2022 and 2021: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Loss Individually Evaluated Loans $ — $ — $ 9,602 $ 199 Totals $ — $ — $ 9,602 $ 199 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 96 $ — $ 71 Totals $ — $ 96 $ — $ 71 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 9,360 $ — $ 625 Totals $ — $ 9,360 $ — $ 625 Individually Evaluated Loans (Impaired Loans prior to January 1, 2023) The Company records certain loans at fair value on a non-recurring basis. Individually evaluated loans for which an allowance is established, or a write-down has occurred during the period, based on the fair value of collateral require classification in the fair value hierarchy. The fair value of the loan’s collateral is determined by appraisals, independent valuation and other techniques. When the fair value of the loan’s collateral is based on an observable market price the Company classifies the fair value of the individually evaluated loans within Level 2 of the valuation hierarchy. For loans in which the valuation has unobservable inputs, the Company classifies these within the Level 3 of the valuation hierarchy. As of December 31, 2023, collateral values were estimated using a combination of observable inputs, including recent appraisals, and unobservable inputs, including internally determined values based on cost adjusted for depreciation and customized discounting criteria on appraisals which ranged from 3-6%. Due to the significance of unobservable inputs, fair values of individually evaluated loans have been classified as Level 3. Fair Value Disclosure of fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases where quoted market prices are not available, fair values are based on estimates using present value of cash flow or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with a fair value that is not practicable to estimate and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented do not necessarily represent the underlying value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the below amounts nor is it recorded as an intangible asset on the balance sheet. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The following tables present the carrying amounts and estimated fair values of financial instruments at December 31, 2023 and 2022: December 31, 2023 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 128,562 $ 128,562 $ — $ — $ 128,562 Securities Available for Sale 604,104 — 604,104 — 604,104 FHLB Stock, at Cost 17,097 — 17,097 — 17,097 Loans, Net 3,667,215 — 3,579,583 9,602 3,589,185 Accrued Interest Receivable 16,697 — 16,697 — 16,697 Interest Rate Caps 18,717 — 18,717 — 18,717 Interest Rate Swaps 13,872 — 13,872 — 13,872 Financial Liabilities: Deposits $ 3,709,948 $ — $ 3,709,086 $ — $ 3,709,086 Notes Payable 13,750 — 13,805 — 13,805 FHLB Advances 319,500 — 319,305 — 319,305 Subordinated Debentures 79,288 — 77,557 — 77,557 Accrued Interest Payable 5,282 — 5,282 — 5,282 Interest Rate Swaps 8,601 — 8,601 — 8,601 December 31, 2022 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 87,043 $ 87,043 $ — $ — $ 87,043 Bank-Owned Certificates of Deposit 1,181 — 1,173 — 1,173 Securities Available for Sale 548,613 2,580 546,033 — 548,613 FHLB Stock, at Cost 19,606 — 19,606 — 19,606 Loans, Net 3,512,157 — 3,314,190 — 3,314,190 Accrued Interest Receivable 13,479 — 13,479 — 13,479 Interest Rate Caps 19,406 — 19,406 — 19,406 Interest Rate Swaps 18,717 — 18,717 — 18,717 Financial Liabilities: Deposits $ 3,416,543 $ — $ 3,390,416 $ — $ 3,390,416 Federal Funds Purchased 287,000 — 287,000 — 287,000 Notes Payable 13,750 — 13,473 — 13,473 FHLB Advances 97,000 — 96,061 — 96,061 Subordinated Debentures 78,905 — 70,931 — 70,931 Accrued Interest Payable 2,831 — 2,831 — 2,831 Interest Rate Swaps 9,542 — 9,542 — 9,542 The following methods and assumptions were used by the Company to estimate fair value of consolidated financial statements not previously discussed. Cash and due from banks Bank-owned certificates of deposit FHLB stock Loans, net Accrued interest receivable Deposits Federal Funds purchased Notes payable and subordinated debentures FHLB advances Accrued interest payable Off-balance sheet instruments Limitations |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | Note 23: Revenue Recognition The Company recognizes revenue from contracts with customers in accordance with ASC Topic 606, Revenue from Contracts with Customers Substantially all of the Company’s revenue is generated from financial instruments, including interest income related to loans and investment securities, letters of credit, and derivatives, which are not within the scope of Topic 606 as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. The following is a summary of revenue-generating activities that are within the scope of Topic 606, which are presented in the Company’s income statements as components of noninterest income: Service charges on deposit accounts Debit card interchange fees Gain on sales of other real estate |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss). | |
Accumulated Other Comprehensive Income (Loss) | Note 24: Accumulated Other Comprehensive Income (Loss) The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021: (dollars in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2023 Net Unrealized Gain on Available for Sale Securities $ 3,339 $ (959) $ 2,380 Less: Reclassification Adjustment for Net Losses Included in Net Income 33 (9) 24 Total Unrealized Gain 3,372 (968) 2,404 Net Unrealized Gain on Cash Flow Hedge 2,299 (660) 1,639 Less: Reclassification Adjustment for Gains Included in Net Income (6,102) 1,755 (4,347) Total Unrealized Loss (3,803) 1,095 (2,708) Other Comprehensive Loss $ (431) $ 127 $ (304) Year Ended December 31, 2022 Net Unrealized Loss on Available for Sale Securities $ (56,914) $ 15,649 $ (41,265) Less: Reclassification Adjustment for Net Gains Included in Net Income (82) 23 (59) Total Unrealized Loss (56,996) 15,672 (41,324) Net Unrealized Gain on Cash Flow Hedge 20,430 (6,048) 14,382 Less: Reclassification Adjustment for Gains Included in Net Income (8) 2 (6) Total Unrealized Gain 20,422 (6,046) 14,376 Other Comprehensive Loss $ (36,574) $ 9,626 $ (26,948) Year Ended December 31, 2021 Net Unrealized Loss on Available for Sale Securities $ (1,689) $ 355 $ (1,334) Less: Reclassification Adjustment for Net Gains Included in Net Income (750) 157 (593) Total Unrealized Loss (2,439) 512 (1,927) Net Unrealized Gain on Cash Flow Hedge 3,991 (838) 3,153 Less: Reclassification Adjustment for Losses Included in Net Income 1,520 (319) 1,201 Total Unrealized Gain 5,511 (1,157) 4,354 Other Comprehensive Gain $ 3,072 $ (645) $ 2,427 The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2023, 2022 and 2021: Accumulated Available For Other Comprehensive (dollars in thousands) Sale Securities Cash Flow Hedge Income (Loss) Year Ended December 31, 2023 Balance at Beginning of Year $ (34,124) $ 16,182 $ (17,942) Other Comprehensive Income Before Reclassifications 2,380 1,639 4,019 Amounts Reclassified from Accumulated Other Comprehensive Income 24 (4,347) (4,323) Net Other Comprehensive Income (Loss) During Period 2,404 (2,708) (304) Balance at End of Year $ (31,720) $ 13,474 $ (18,246) Year Ended December 31, 2022 Balance at Beginning of Year $ 7,200 $ 1,806 $ 9,006 Other Comprehensive Income (Loss) Before Reclassifications (41,265) 14,382 (26,883) Amounts Reclassified from Accumulated Other Comprehensive Income (59) (6) (65) Net Other Comprehensive Income (Loss) During Period (41,324) 14,376 (26,948) Balance at End of Year $ (34,124) $ 16,182 $ (17,942) Year Ended December 31, 2021 Balance at Beginning of Year $ 9,127 $ (2,548) $ 6,579 Other Comprehensive Income (Loss) Before Reclassifications (1,334) 3,153 1,819 Amounts Reclassified from Accumulated Other Comprehensive Income (593) 1,201 608 Net Other Comprehensive Income (Loss) During Period (1,927) 4,354 2,427 Balance at End of Year $ 7,200 $ 1,806 $ 9,006 |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Parent Company Financial Information | |
Parent Company Financial Information | Note 25: Parent Company Financial Information The following information presents the condensed balance sheets of the Company as of December 31, 2023 and 2022, and the condensed statements of income and cash flows of the Company for the years ended December 31, 2023, 2022 and 2021: Condensed Balance Sheets December 31, December 31, (dollars in thousands) 2023 2022 ASSETS Cash and Cash Equivalents $ 27,733 $ 37,414 Investment in Subsidiaries 488,355 447,931 Premises and Equipment, Net 3,760 844 Other Assets 2,772 3,180 Total Assets $ 522,620 $ 489,369 LIABILITIES AND EQUITY LIABILITIES Notes Payable $ 13,750 $ 13,750 Subordinated Debentures, Net of Issuance Costs 79,288 78,905 Accrued Interest Payable 1,765 452 Other Liabilities 2,302 2,198 Total Liabilities 97,105 95,305 SHAREHOLDERS’ EQUITY Preferred Stock—$0.01 par value Preferred Stock—Authorized 10,000,000 66,514 66,514 Common Stock—$0.01 par value Voting Common Stock—Authorized 75,000,000 277 278 Additional Paid‑In Capital 96,320 96,529 Retained Earnings 280,650 248,685 Accumulated Other Comprehensive Income (Loss) (18,246) (17,942) Total Shareholders’ Equity 425,515 394,064 Total Liabilities and Shareholders' Equity $ 522,620 $ 489,369 Condensed Statements of Income December 31, December 31, December 31, (dollars in thousands) 2023 2022 2021 INCOME Dividend Income $ — $ 1,585 $ 1,350 Interest Income 3 — — Other Income 118 129 117 Total Income 121 1,714 1,467 EXPENSE Interest Expense 5,126 4,890 4,691 Other Expenses 1,757 1,570 1,972 Total Interest Expense 6,883 6,460 6,663 LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS (6,762) (4,746) (5,196) Income Tax Benefit 1,894 1,792 1,847 LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS (4,868) (2,954) (3,349) Equity in Undistributed Earnings 44,828 56,346 49,036 NET INCOME $ 39,960 $ 53,392 $ 45,687 Condensed Statements of Cash Flows December 31, December 31, December 31, (dollars in thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 39,960 $ 53,392 $ 45,687 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries (44,828) (56,346) (49,036) Changes in Other Assets and Liabilities (738) (193) 634 Net Cash Used by Operating Activities (5,606) (3,147) (2,715) CASH FLOWS FROM INVESTING ACTIVITIES Investment in Subsidiaries — (25,000) (25,000) Proceeds from Bridgewater Risk Management, Inc. Liquidation 4,143 — — Net Cash Provided (Used) by Investing Activities 4,143 (25,000) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable — — (11,000) Proceeds from Notes Payable — 13,750 — Proceeds from Issuance of Subordinated Debt — — 29,309 Redemption of Subordinated Debt — (13,750) (11,250) Stock Options Exercised 963 577 724 Stock Repurchases and Repurchases for Tax Withholding on Equity Awards (5,127) (11,513) (2,740) Issuance of Preferred Stock — — 66,514 Preferred Stock Dividends Paid (4,054) (4,054) (1,171) Net Cash Provided (Used) by Financing Activities (8,218) (14,990) 70,386 NET CHANGE IN CASH AND CASH EQUIVALENTS (9,681) (43,137) 42,671 Cash and Cash Equivalents Beginning 37,414 80,551 37,880 Cash and Cash Equivalents Ending $ 27,733 $ 37,414 $ 80,551 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | Note 26: Subsequent Events On January 24, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $36.72 per share ($0.3672 per depositary share) on the Series A Preferred Stock, payable on March 1, 2024, to shareholders of record on the Series A Preferred Stock at the close of business on February 15, 2024. |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Description of the Business and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the amounts of the Company, the Bank, with locations in Bloomington, Greenwood, Minneapolis (2), St. Louis Park, Orono, and St. Paul, Minnesota, BWB Holdings, LLC, Bridgewater Investment Management, Inc., and Bridgewater Risk Management, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Information available which could affect judgments includes, but is not limited to, changes in interest rates, changes in the performance of the economy, including elevated levels of inflation and possible recession, and changes in the financial condition of borrowers. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for credit losses, calculation of deferred tax assets, fair value of financial instruments, and investment securities impairment. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purpose of the consolidated statements of cash flows, cash and cash equivalents include cash, both interest bearing and noninterest bearing balances due from banks and federal funds sold, all of which mature within 90 days. Cash flows from loans, deposits, federal funds purchased and notes payable are reported net. |
Bank-Owned Certificates of Deposit | Bank-Owned Certificates of Deposit Bank-owned certificates of deposit mature within five years and are carried at cost. |
Securities Available for Sale | Securities Available for Sale Debt securities are classified as available for sale and are carried at fair value with unrealized gains and losses reported in other comprehensive income (loss). Realized gains and losses on securities available for sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income over the estimated life (earliest call date, maturity, or estimated life) using a prospective method that approximates level yield. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid balances adjusted for charge-offs, the allowance for credit losses, any deferred fees or costs on originated loans, and premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status. The accrual of interest on all loans is discounted if the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income and amortization of related deferred loan fees or costs is suspended. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. The cash-basis is used when a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments are applied to loan principal. The determination of ultimate collectability is supported by a current, well documented credit evaluation of the borrower’s financial condition and prospects for repayment, including consideration of the borrower’s sustained historical repayment performance and other relevant factors. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, the borrower has demonstrated a period of sustained performance, and future payments are reasonably assured. A sustained period of repayment performance generally would be a minimum of six months. |
Allowance for Credit Losses | Allowance for Credit Losses Securities Available for Sale For any securities classified as available for sale that are in an unrealized loss position at the balance sheet date, the Company assesses whether or not it intends to sell the security, or if it is more likely than not it will be required to sell the security, before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through income with the establishment of an allowance. For securities that do not meet the aforementioned criteria, the Company evaluates whether any portion of the decline in fair value is the result of credit deterioration. In making this assessment, management considers the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security, among other factors. If the assessment indicates that a credit loss exists, an allowance for credit losses, or ACL, is recorded for the amount by which the amortized cost basis of the security exceeds the present value of cash flows expected to be collected, limited by the amount by which the amortized cost exceeds fair value. Any impairment not recognized in the allowance for credit losses is recognized in other comprehensive income. Changes in the ACL on securities are recorded as a provision for (or recovery of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on securities available for sale is excluded from the estimate of credit losses. Loans The ACL on loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over their contractual life. The contractual term does not consider extensions, renewals or modifications. Loans are charged off against the ACL on loans when management believes the uncollectibility of a loan balance has been confirmed. Recoveries do not exceed the aggregate of amounts previously charged off or expected to be charged off. Subsequent recoveries, if any, are credited to the ACL on loans. The ACL on loans is measured on a collective or pooled basis when similar risk characteristics exist. The Company’s pooling method is primarily based on loan purpose and collateral type and generally follows the Company’s loan segmentation for regulatory reporting. The Company has identified the following pools of loans with similar risk characteristics for measuring the ACL on loans: Commercial: Commercial loans generally are loans to sole proprietorships, partnerships, corporations, and other business enterprises to finance working capital, capital investment, or for other business related purposes. Collateral generally consists of pledges of business assets or interests, including but not limited to accounts receivable, inventory, plant and equipment, and real estate interests, if applicable. The primary repayment sources for commercial loans are the cash flow of the operating businesses which can be adversely affected by company, industry and economic business cycles. Commercial loans may be secured or unsecured. Paycheck Protection Program (PPP): PPP loans are loans to businesses, sole proprietorships, independent contractors and self-employed individuals who met certain criteria and eligibility requirements through a loan program established by the CARES Act and administered through the Small Business Administration, or SBA. In 2021, the PPP loan program ended and the Company is no longer originating loans under this program. Credit risk in these loans is limited due to a full guarantee by the U.S. Government. Construction and Land Development: Construction and land development loans are generally loans to finance land development or the construction of industrial, commercial, or multifamily buildings. Construction loans can include construction of new structures, additions or alterations to existing structures, or the demolition of existing structures to make way for new structures. Construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules and the reliance on the sale of the completed project as the primary repayment source for the loan. Factors that may influence the completion of construction may be customer specific, such as the quality and depth of property management, or related to changes in general economic conditions. Trends in the commercial and residential construction industries can significantly impact the credit quality of these loans due to supply and demand imbalances. In addition, fluctuations in real estate values can significantly impact the credit quality of these loans, as property values may determine the economic viability of construction projects and adversely impact the value of the collateral securing the loan. 1-4 Family Construction: 1-4 family construction loans are generally loans to finance the construction of new structures, additions or alterations to existing structures, or the demolition of existing structures to make way for new structures. 1-4 family construction loans are generally secured by real estate. The primary risk characteristics are specific to the uncertainty on whether the construction will be completed according to the specifications and schedules. Factors that may influence the completion of 1-4 family construction may be customer specific or related to changes in general economic conditions. 1-4 Family Mortgage: 1-4 family mortgage loans are generally loans to finance loans on owner occupied and nonowner occupied properties. 1-4 family mortgage loans are secured by first or second liens on the property. The degree of risk in residential mortgage lending involving owner occupied properties depends primarily on the borrower’s ability to repay and the loan amount in relation to collateral value. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrower’s capacity to repay their obligations may be deteriorating. 1-4 family mortgage loans include credits to finance nonowner occupied properties used as rentals. These loans can involve additional risks as the borrower’s ability to repay is based on the net operating income from the property which can be impacted by occupancy levels, rental rates, and operating expenses. Declines in net operating income can negatively impact the value of the property which increases the credit risk in the event of default. Multifamily: Multifamily loans are loans to finance multifamily properties. The primary source of repayment for multifamily loans is the cash flows of the underlying property. The primary risk characteristics include increases in vacancy rates, overbuilt supply, interest rates or changes in general economic conditions. Economic factors such as unemployment, wage growth and home affordability can impact vacancy rates and property cash flow. Commercial Real Estate (CRE) Owner Occupied: Owner occupied commercial real estate loans are properties that are owned and operated by the borrower and the primary source for repayment is the cash flow from the ongoing operations and activities conducted by the borrower’s business. The primary risk characteristics are specific to the underlying business and its ability to generate sustainable profitability and positive cash flow. Also, certain types of businesses also may require specialized facilities that can increase costs and may not be economically feasible to an alternative user, which could adversely impact the market value of the collateral. Factors that may influence a borrower's ability to repay their loan include demand for the business’ products or services, the quality and depth of management, the degree of competition, regulatory changes, and general economic conditions. Commercial Real Estate (CRE) Nonowner Occupied: Nonowner occupied commercial real estate loans are investment properties and the primary source for repayment of the loan is derived from rental income associated with the property or proceeds of the sale of the property. Nonowner occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, commercial/retail office space, industrial/warehouse space, hotels, assisted living facilities and other specific use properties. The primary risk characteristics include impacts of overall leasing rates, absorption timelines, levels of vacancy rates and operating expenses, and general economic conditions. Banks that are concentrated in commercial real estate lending are subject to additional regulatory scrutiny and must employ enhanced risk management practices. Consumer and Other: Consumer and other loans generally include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as auto loans, debt consolidation loans, personal expense loans or overdraft protection. The primary risk characteristics associated with consumer and other loans typically include major changes to the borrower’s financial or personal circumstances, including unemployment or other loss of income, significant unexpected expenses, such as major medical expenses, catastrophic events, divorce or death. Management assesses the adequacy of the ACL on loans on a quarterly basis. Management estimates the ACL on loans using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company uses the weighted-average remaining maturity, or WARM, method as the basis for estimating expected credit losses. The WARM method uses a historical average annual charge off rate. This average annual charge off rate contains loss content over a historical lookback period and is used as a foundation for estimating the ACL on loans for the remaining outstanding balances of loans by segment at the balance sheet date. The average annual charge off rate is applied to the contractual term to determine the unadjusted historical charge off rate. The calculation of the unadjusted historical charge off rate is then adjusted for current conditions and for reasonable and supportable forecast periods through qualitative factors prior to being applied to the current balance of the loan segments. Accrued interest receivable on loans available for sale is excluded from the estimate of credit losses. Forecast adjustments to the historical loss rate are based on a forecast of the U.S. national unemployment rate, a forecast of the difference between the 10-year and 3-month treasury rates, and the most recent available BBB rated corporate bond spreads to U.S. Treasury securities, or BBB Spread. The forecast overlay adjustment for the reasonable and supportable forecast assumes an immediate reversion after a one-year forecast period to historical loss rates for the remaining life of the respective loan segment. Qualitative factors are used to cover losses that are expected but, in the Company’s assessment, may not be adequately represented in the quantitative analysis or the forecasts described above. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the historic loss factors. Each qualitative loss factor, for each loan segment within the portfolio, incorporates consideration for a minimum to maximum range for loss factors. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses and are applied to each loan segment. The qualitative factors applied to each loan segment include changes in lending policies and procedures, general economic and business conditions, the nature, volume and terms of loans, the experience, depth and ability of lending staff, the quality of the loan review function, the value of underlying collateral, competition, legal and regulatory factors, the volume and severity of watchlist and past due loans, and the level of concentrations. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the pooled evaluations and typically represent collateral dependent loans but may also include other nonperforming loans or modifications. The Company has elected to use the practical expedient to measure individually evaluated loans as collateral dependent when repayment is expected to be provided substantially through the operation or sale of the collateral. The credit loss is measured as the difference between the amortized cost basis of the loan and the fair value of the underlying collateral. The fair value of the collateral is adjusted for the estimated cost to sell if repayment or satisfaction of a loan is dependent on the sale of the collateral. Management may also adjust its assumptions to account for differences between expected and actual losses from period to period. The variability of management’s assumptions could alter the ACL on loans materially and impact future results of operations and financial condition. The loss estimation models and methods used to determine the allowance for credit losses are continually refined and enhanced. Off-Balance Sheet Credit Exposures The Company maintains a separate ACL on off-balance sheet credit exposures, including unfunded loan commitments, financial guarantees, and letters of credit, which is included in other liabilities on the consolidated balance sheet, unless the obligation is unconditionally cancellable. The ACL on off-balance sheet credit exposures is adjusted as a provision for (or recovery of) credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over the estimated life of such commitments. The allowance is calculated using the same aggregate reserve rates calculated for the funded portion of the loan segment and applied to the amount of commitments expected to fund. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank is a member of FHLB Des Moines. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery at par value. Both cash and stock dividends are reported as income. |
Premises and Equipment | Premises and Equipment Land is stated at cost. Premises and equipment are stated at cost less accumulated depreciation on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful life or lease term for leasehold improvements. Premises and equipment are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. |
Foreclosed Assets | Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated selling cost at the date of foreclosure, establishing a new cost basis. Any write-downs based on the asset’s fair value at the date of acquisition are charged to the allowance. Subsequent to foreclosure, valuations are periodically performed by management and the assets held for sale are carried at the lower of the new cost basis or fair value less cost to sell. This evaluation is inherently subjective and requires estimates that are susceptible to significant revisions as more information becomes available. Impairment losses on assets to be held and used are measured at the amount by which the carrying amount of a property exceeds its fair value. Costs relating to holding and improving assets are expensed. Revenues and expenses from operations are included in other noninterest income and expense on the income statement. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets attributed to the value of core deposits and favorable lease terms are stated at cost less accumulated amortization and reported in other intangible assets in the consolidated balance sheets. Intangible assets are amortized on a straight-line basis over the estimated lives of the assets. The excess of purchase price over fair value of net assets acquired is recorded as goodwill and is not amortized. The Company evaluates whether goodwill and other intangible assets may be impaired at least annually and whenever events or changes in circumstances indicate it is more likely than not the fair value of the reporting unit or asset is less than its carrying amount. |
Leases | Leases Leases are classified as operating or finance leases at the lease commencement date. Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease team. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the extension or termination option. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. The Company's ROU asset is included in other assets and its lease liability is included in other liabilities in the accompanying consolidated balance sheets. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company's incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. The Company has elected not to recognize leases with original terms of 12 months or less on the consolidated balance sheet. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Transfers of Financial Assets and Participating Interests | Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so. |
Advertising | Advertising Advertising costs are expensed as incurred. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. These calculations are based on many factors including estimates of the timing of reversals of temporary differences, the interpretation of federal and state income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax liabilities. Under GAAP, a valuation allowance is required to be recognized if it is “more likely than not” that the deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of the current and future economic and business conditions. In preparation of the income tax returns, tax positions are taken based on interpretation of federal and state income tax laws. Management periodically reviews and evaluates the status of uncertain tax positions and makes estimates of amounts ultimately due or owed. The Company can recognize in financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. The Company recognizes both interest and penalties as a component of other noninterest expense. The amount of the uncertain tax positions was not deemed to be material. It is not expected that the unrecognized tax benefit will be material within the next 12 months. The Company did not recognize any interest or penalties for the years ended December 31, 2023, 2022 and 2021. The Company is no longer subject to federal or state tax examination by tax authorities for years ending before December 31, 2020. |
Tax Credit Investments | Tax Credit Investments The Company invests in qualified affordable housing projects and federal historic projects for the purpose of community reinvestment and obtaining tax credits. These investments are included in other assets on the balance sheet, with any unfunded commitments included within other liabilities. The qualified affordable housing projects are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is recognized over the period that the Company expects to receive the tax credits, with the expense included within income tax expense on the consolidated statements of income. Prior to 2023, the historic tax credits are accounted for under the equity method, with the expense included within noninterest expense on the consolidated statements of income. Beginning January 1, 2023, with the adoption of ASU 2023-02, the amortization expense for the historic tax credits are accounted for under the proportional amortization method. Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. |
Comprehensive Income | Comprehensive Income Recognized revenue, expenses, gains, and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale and changes in the fair value of derivative instruments designated as a cash flow hedge, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments, which consist of interest rate swaps and interest rate caps, to assist in its interest rate risk management. All derivatives are measured and reported at fair value on the Company’s consolidated balance sheet as other assets or other liabilities. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings, specifically in noninterest income. The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with large U.S. and international financial institutions in order to minimize the risk to the Company. These swaps are derivatives, but are not designated as hedging instruments. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. The Company prepares written hedge documentation for all derivatives which are designed as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be highly effective. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. For a cash flow hedge that is effective, the gain or loss on the derivative is reported as a component in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. The changes in the fair value of derivatives that are not highly effective in hedging the changes in expected cash flows of the hedged item are recognized immediately in current earnings. To determine fair value, the Company uses third party pricing models that incorporate assumptions about market conditions and risks that are current at the reporting date. The Company does not use derivative instruments for trading or speculative purposes. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Hedge accounting discontinues on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. |
Stock-based Compensation | Stock-based Compensation The Company’s stock-based compensation plans provide for awards of stock options, restricted stock awards and restricted stock units to the Company’s directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Forfeitures are recognized as they occur. The Company uses the Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards and restricted stock units. |
Earnings per Share | Earnings per Share Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings common per share are calculated by dividing net income by the weighted average number of shares adjusted for the dilutive effect of stock compensation using the treasury stock method. |
Segment Reporting | Segment Reporting The Company’s chief operating decision maker makes company wide resource allocation decisions and assessments of performance based on a collective assessment of the Company’s operations. Substantially all of the Company’s operations involve the delivery of loan and deposit products to clients. Accordingly, all of the Company operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2022 consolidated financial statements to conform to the 2023 classifications. |
Impact of Recent Accounting Standards | Impact of Recently Adopted Accounting Guidance On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13 “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” The Company adopted CECL using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $3.9 million as of January 1, 2023 for the cumulative effect of adopting CECL. The transition adjustment included a $650,000 impact due to the increase in ACL related to loans, a $4.8 million increase in the allowance for off-balance sheet credit exposures, and a $1.6 million impact on deferred taxes. The following table presents the impact of adopting CECL: January 1, 2023 Impact of As Reported (dollars in thousands) Pre-CECL Adoption CECL Adoption Under CECL Assets: Loans Commercial $ 6,500 $ (1,157) $ 5,343 Paycheck Protection Program 1 (1) — Construction and Land Development 3,911 (1,070) 2,841 1-4 Family Construction 845 (235) 610 Real Estate Mortgage: 1-4 Family Mortgage 4,325 (1,778) 2,547 Multifamily 17,459 3,318 20,777 CRE Owner Occupied 1,965 (943) 1,022 CRE Nonowner Occupied 12,576 2,869 15,445 Consumer and Other 151 (90) 61 Unallocated 263 (263) — Allowance for Credit Losses on Loans $ 47,996 $ 650 $ 48,646 Liabilities: Allowance for Credit Losses on Off-balance Sheet Credit Exposures $ 360 $ 4,850 $ 5,210 In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Receivables – Troubled Debt Restructurings by Creditors, In March 2023, the FASB issued ASU No. 2023-02, Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Impact of Recently Issued Accounting Standards The following ASUs have been issued by FASB and may impact the Company’s consolidated financial statements in future reporting periods. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic ASC 740) Income Taxes . The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in ASU 2022-03 will become effective for fiscal years beginning after December 15, 2024. Ea rly adoption is permitted. In October 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements and are not expected to have a material impact on the Company’s consolidated financial statements. |
Subsequent Events | Subsequent Events Subsequent events have been evaluated through March 7, 2024, which is the date the consolidated financial statements were available to be issued. |
Revenue Recognition | Substantially all of the Company’s revenue is generated from financial instruments, including interest income related to loans and investment securities, letters of credit, and derivatives, which are not within the scope of Topic 606 as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. The following is a summary of revenue-generating activities that are within the scope of Topic 606, which are presented in the Company’s income statements as components of noninterest income: Service charges on deposit accounts Debit card interchange fees Gain on sales of other real estate |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Description of the Business and Summary of Significant Accounting Policies | |
Schedule of impact of adopting CECL | The following table presents the impact of adopting CECL: January 1, 2023 Impact of As Reported (dollars in thousands) Pre-CECL Adoption CECL Adoption Under CECL Assets: Loans Commercial $ 6,500 $ (1,157) $ 5,343 Paycheck Protection Program 1 (1) — Construction and Land Development 3,911 (1,070) 2,841 1-4 Family Construction 845 (235) 610 Real Estate Mortgage: 1-4 Family Mortgage 4,325 (1,778) 2,547 Multifamily 17,459 3,318 20,777 CRE Owner Occupied 1,965 (943) 1,022 CRE Nonowner Occupied 12,576 2,869 15,445 Consumer and Other 151 (90) 61 Unallocated 263 (263) — Allowance for Credit Losses on Loans $ 47,996 $ 650 $ 48,646 Liabilities: Allowance for Credit Losses on Off-balance Sheet Credit Exposures $ 360 $ 4,850 $ 5,210 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share | |
Schedule of numerators and denominators for basic and diluted earnings per share computations | The following table presents the numerators and denominators for basic and diluted earnings per share computations for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, (dollars in thousands, except per share data) 2023 2022 2021 Net Income Available to Common Shareholders $ 35,906 $ 49,338 $ 44,516 Weighted Average Common Stock Outstanding: Weighted Average Common Stock Outstanding (Basic) 27,857,420 27,758,336 28,027,454 Dilutive Effect of Stock Compensation 458,167 909,841 940,832 Weighted Average Common Stock Outstanding (Dilutive) 28,315,587 28,668,177 28,968,286 Basic Earnings per Common Share $ 1.29 $ 1.78 $ 1.59 Diluted Earnings per Common Share 1.27 1.72 1.54 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities | |
Summary of the amortized cost and estimated fair value of securities with gross unrealized gains and losses | The following tables present the amortized cost and estimated fair value of securities with gross unrealized gains and losses at December 31, 2023 and 2022: December 31, 2023 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: Municipal Bonds $ 151,512 $ 47 $ (19,035) $ 132,524 Mortgage-Backed Securities 249,455 2,261 (16,401) 235,315 Corporate Securities 142,098 386 (11,879) 130,605 SBA Securities 18,497 279 (102) 18,674 Asset-Backed Securities 87,054 357 (425) 86,986 Total Securities Available for Sale $ 648,616 $ 3,330 $ (47,842) $ 604,104 December 31, 2022 Gross Gross Amortized Unrealized Unrealized (dollars in thousands) Cost Gains Losses Fair Value Securities Available for Sale: U.S. Treasury Securities $ 2,621 $ — $ (41) $ 2,580 Municipal Bonds 156,506 62 (25,214) 131,354 Mortgage-Backed Securities 252,919 2,465 (17,600) 237,784 Corporate Securities 116,871 45 (7,089) 109,827 SBA Securities 20,957 79 (159) 20,877 Asset-Backed Securities 46,623 188 (620) 46,191 Total Securities Available for Sale $ 596,497 $ 2,839 $ (50,723) $ 548,613 |
Summary of fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following tables present the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and 2022: Less Than 12 Months 12 Months or Greater Total Number of Unrealized Unrealized Unrealized (dollars in thousands, except number of holdings) Holdings Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2023 Municipal Bonds 212 $ 4,052 $ (17) $ 120,527 $ (19,018) $ 124,579 $ (19,035) Mortgage-Backed Securities 128 35,719 (310) 135,829 (16,091) 171,548 (16,401) Corporate Securities 110 14,528 (756) 101,311 (11,123) 115,839 (11,879) SBA Securities 47 1,731 (3) 7,072 (99) 8,803 (102) Asset-Backed Securities 24 39,011 (234) 13,805 (191) 52,816 (425) Total Securities Available for Sale 521 $ 95,041 $ (1,320) $ 378,544 $ (46,522) $ 473,585 $ (47,842) Less Than 12 Months 12 Months or Greater Total Number of Unrealized Unrealized Unrealized (dollars in thousands, except number of holdings) Holdings Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2022 U.S. Treasury Securities 6 $ 2,330 $ (41) $ — $ — $ 2,330 $ (41) Municipal Bonds 225 59,912 (5,321) 69,424 (19,893) 129,336 (25,214) Mortgage-Backed Securities 130 123,224 (5,427) 62,882 (12,173) 186,106 (17,600) Corporate Securities 100 88,486 (5,121) 17,054 (1,968) 105,540 (7,089) SBA Securities 49 2,498 (6) 9,750 (153) 12,248 (159) Asset-Backed Securities 20 21,919 (396) 6,186 (224) 28,105 (620) Total Securities Available for Sale 530 $ 298,369 $ (16,312) $ 165,296 $ (34,411) $ 463,665 $ (50,723) |
Schedule of contractual maturities of debt | The following table presents a summary of amortized cost and estimated fair value of debt securities by the lesser of expected call date or contractual maturity as of December 31, 2023. Call date is used when a call of the debt security is expected, determined by the Company when the security has a market value above its amortized cost. Contractual maturities will differ from expected maturities for mortgage-backed, SBA securities and asset-backed securities because borrowers may have the right to call or prepay obligations without penalties. (dollars in thousands) Amortized Cost Fair Value December 31, 2023 Due in One Year or Less $ 17,260 $ 17,183 Due After One Year Through Five Years 47,485 45,922 Due After Five Years Through 10 Years 186,291 165,766 Due After 10 Years 42,574 34,258 Subtotal 293,610 263,129 Mortgage-Backed Securities 249,455 235,315 SBA Securities 18,497 18,674 Asset-Backed Securities 87,054 86,986 Totals $ 648,616 $ 604,104 |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | The following table presents a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Proceeds From Sales of Securities $ 28,756 $ 64,439 $ 11,877 Gross Gains on Sales 247 612 1,200 Gross Losses on Sales (280) (530) (450) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans | |
Summary of components of loans | The following table presents the components of the loan portfolio at December 31, 2023 and 2022: December 31, December 31, (dollars in thousands) 2023 2022 Commercial $ 464,061 $ 436,393 Construction and Land Development 232,804 295,554 1-4 Family Construction 65,087 70,242 Real Estate Mortgage: 1-4 Family Mortgage 402,396 355,474 Multifamily 1,388,541 1,306,738 CRE Owner Occupied 175,783 149,905 CRE Nonowner Occupied 987,306 947,008 Total Real Estate Mortgage Loans 2,954,026 2,759,125 Consumer and Other 8,304 8,132 Total Loans, Gross 3,724,282 3,569,446 Allowance for Credit Losses (50,494) (47,996) Net Deferred Loan Fees (6,573) (9,293) Total Loans, Net $ 3,667,215 $ 3,512,157 |
Summary of aging in past due loans and nonaccrual status, with and without an ACL, by loan segment | The following tables present the aging in past due loans and nonaccrual status, with and without an ACL, by loan segment as of December 31, 2023 and 2022: Accruing Interest 30-89 Days 90 Days or Nonaccrual Nonaccrual (dollars in thousands) Current Past Due More Past Due with ACL without ACL Total December 31, 2023 Commercial $ 463,966 $ — $ — $ — $ 95 $ 464,061 Construction and Land Development 232,724 — — — 80 232,804 1-4 Family Construction 64,838 — — — 249 65,087 Real Estate Mortgage: 1-4 Family Mortgage 402,396 — — — — 402,396 Multifamily 1,373,431 15,110 — — — 1,388,541 CRE Owner Occupied 175,289 — — — 494 175,783 CRE Nonowner Occupied 987,306 — — — — 987,306 Consumer and Other 8,303 — — — 1 8,304 Totals $ 3,708,253 $ 15,110 $ — $ — $ 919 $ 3,724,282 Accruing Interest 30-89 Days 90 Days or Nonaccrual Nonaccrual (dollars in thousands) Current Past Due More Past Due with ACL without ACL Total December 31, 2022 Commercial $ 436,323 $ 70 $ — $ — $ — $ 436,393 Construction and Land Development 295,448 — — — 106 295,554 1-4 Family Construction 70,242 — — — — 70,242 Real Estate Mortgage: HELOC and 1-4 Family Junior Mortgage 36,875 — — — — 36,875 1st REM - 1-4 Family 50,945 — — — — 50,945 LOCs and 2nd REM - Rentals 27,985 — — — — 27,985 1st REM - Rentals 239,553 116 — — — 239,669 Multifamily 1,306,738 — — — — 1,306,738 CRE Owner Occupied 149,372 — — — 533 149,905 CRE Nonowner Occupied 947,008 — — — — 947,008 Consumer and Other 8,132 — — — — 8,132 Totals $ 3,568,621 $ 186 $ — $ — $ 639 $ 3,569,446 |
Summary of loan balances classified by credit quality indicators by year of origination | The following table presents loan balances classified by credit quality indicators by year of origination as of December 31, 2023: December 31, 2023 (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Total Commercial Pass $ 93,299 $ 121,274 $ 37,056 $ 19,297 $ 18,594 $ 4,507 $ 149,836 $ 443,863 Watch 1,700 318 34 — — — 2,003 4,055 Substandard 3 11,299 — — — 50 4,791 16,143 Total Commercial 95,002 132,891 37,090 19,297 18,594 4,557 156,630 464,061 Current Period Gross Write-offs 72 96 12 — — — — 180 Construction and Land Development Pass 87,402 99,133 34,122 46 — — 12,021 232,724 Substandard — 80 — — — — — 80 Total Construction and Land Development 87,402 99,213 34,122 46 — — 12,021 232,804 Current Period Gross Write-offs — — — — — — — — 1-4 Family Construction Pass 35,172 16,156 941 355 — — 12,214 64,838 Substandard 249 — — — — — — 249 Total 1-4 Family Construction 35,421 16,156 941 355 — — 12,214 65,087 Current Period Gross Write-offs — — — — — — — — Real Estate Mortgage: 1-4 Family Mortgage Pass 74,602 106,085 83,525 52,813 18,789 3,403 62,490 401,707 Substandard — — — — — 659 30 689 Total 1-4 Family Mortgage 74,602 106,085 83,525 52,813 18,789 4,062 62,520 402,396 Current Period Gross Write-offs — — — — — — — — Multifamily Pass 192,078 456,179 444,162 196,784 41,998 45,847 8,577 1,385,625 Watch 2,916 — — — — — — 2,916 Total Multifamily 194,994 456,179 444,162 196,784 41,998 45,847 8,577 1,388,541 Current Period Gross Write-offs — — — — — — — — CRE Owner Occupied Pass 36,255 61,724 40,748 20,610 4,903 8,312 1,672 174,224 Substandard 194 — 494 — — 871 — 1,559 Total CRE Owner Occupied 36,449 61,724 41,242 20,610 4,903 9,183 1,672 175,783 Current Period Gross Write-offs — — — — — — — — CRE Nonowner Occupied Pass 164,226 305,749 253,683 77,618 78,288 66,569 4,521 950,654 Watch 16,301 — 3,213 — — — — 19,514 Substandard 15,183 1,955 — — — — — 17,138 Total CRE Nonowner Occupied 195,710 307,704 256,896 77,618 78,288 66,569 4,521 987,306 Current Period Gross Write-offs — — — — — — — — Total Real Estate Mortgage Loans 501,755 931,692 825,825 347,825 143,978 125,661 77,290 2,954,026 Consumer and Other Pass 2,908 256 9 1,460 6 — 3,665 8,304 Total Consumer and Other 2,908 256 9 1,460 6 — 3,665 8,304 Current Period Gross Write-offs 42 — — — — — 2 44 Total Period Gross Write-offs 114 96 12 — — — 2 224 Total Loans $ 722,488 $ 1,180,208 $ 897,987 $ 368,983 $ 162,578 $ 130,218 $ 261,820 $ 3,724,282 The following table presents the risk category of loans by loan segment as of December 31, 2022: December 31, 2022 (dollars in thousands) Pass Watch Substandard Total Commercial $ 407,241 $ 9,477 $ 19,675 $ 436,393 Construction and Land Development 294,736 712 106 295,554 1-4 Family Construction 70,242 — — 70,242 Real Estate Mortgage: 1-4 Family Mortgage 354,401 681 392 355,474 Multifamily 1,303,468 3,270 — 1,306,738 CRE Owner Occupied 148,268 — 1,637 149,905 CRE Nonowner Occupied 922,657 18,112 6,239 947,008 Consumer and Other 8,132 — — 8,132 Totals $ 3,509,145 $ 32,252 $ 28,049 $ 3,569,446 |
Summary of the activity in the allowance for loan losses by segment | On January 1, 2023, the Company adopted CECL, which added $650,000 to the total ACL. Under CECL, the Company recorded a $2.1 million provision for credit losses on loans for the year ended December 31, 2023, compared to a $7.7 million and $5.2 million provision for loan losses for the years ended December 31, 2022 and 2021, respectively, under the incurred loss method. Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Allowance for Credit Losses for Loans: Balance at January 1, 2023 $ 6,501 $ 3,911 $ 845 $ 4,325 $ 17,459 $ 1,965 $ 12,576 $ 151 $ 263 $ 47,996 Impact of Adopting CECL (1,158) (1,070) (235) (1,778) 3,318 (943) 2,869 (90) (263) 650 Provision for Credit Losses for Loans 225 (685) (52) 99 1,440 162 780 81 — 2,050 Loans Charged-off (180) — — — — — — (44) — (224) Recoveries of Loans 10 — — 5 — — — 7 — 22 Balance at December 31, 2023 $ 5,398 $ 2,156 $ 558 $ 2,651 $ 22,217 $ 1,184 $ 16,225 $ 105 $ — $ 50,494 The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2022 and 2021, prepared using the previous GAAP incurred loss method prior to the adoption of CECL: Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamil y Occupied Occupied and Other Unallocated Total Allowance for Loan Losses: Balance at January 1, 2021 $ 5,773 $ 1,679 $ 812 $ 3,972 $ 9,517 $ 1,162 $ 10,991 $ 203 $ 732 $ 34,841 Provision for Loan Losses 488 1,460 (194) (236) 3,093 301 344 (24) (82) 5,150 Loans Charged-off (28) — — (5) — — — (41) — (74) Recoveries of Loans 36 — — 26 — 32 — 9 — 103 Balance at December 31, 2021 $ 6,269 $ 3,139 $ 618 $ 3,757 $ 12,610 $ 1,495 $ 11,335 $ 147 $ 650 $ 40,020 Provision for Loan Losses 235 772 227 280 4,849 470 1,241 13 (387) 7,700 Loans Charged-off (13) — — — — — — (24) — (37) Recoveries of Loans 10 — — 288 — — — 15 — 313 Balance at December 31, 2022 $ 6,501 $ 3,911 $ 845 $ 4,325 $ 17,459 $ 1,965 $ 12,576 $ 151 $ 263 $ 47,996 The following tables present the balance in the allowance for credit losses and the recorded investment in loans, by segment, based on impairment method as of December 31, 2023 and 2022: Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamil y Occupied Occupied and Other Unallocated Total ACL at December 31, 2023 Individually Evaluated for Impairment $ 8 $ — $ — $ — $ — $ — $ 95 $ — $ — $ 103 Collectively Evaluated for Impairment 5,390 2,156 558 2,651 22,217 1,184 16,130 105 — 50,391 Totals $ 5,398 $ 2,156 $ 558 $ 2,651 $ 22,217 $ 1,184 $ 16,225 $ 105 $ — $ 50,494 ALL at December 31, 2022 Individually Evaluated for Impairment $ 71 $ — $ — $ — $ — $ — $ — $ — $ — $ 71 Collectively Evaluated for Impairment 6,430 3,911 845 4,325 17,459 1,965 12,576 151 263 47,925 Totals $ 6,501 $ 3,911 $ 845 $ 4,325 $ 17,459 $ 1,965 $ 12,576 $ 151 $ 263 $ 47,996 Construction CRE CRE and Land 1--4 Family 1--4 Family Owner Non-owner Consumer (dollars in thousands) Commercial Development Construction Mortgage Multifamily Occupied Occupied and Other Total Loans at December 31, 2023 Individually Evaluated for Impairment $ 16,143 $ 80 $ 249 $ 689 $ — $ 1,559 $ 17,138 $ — $ 35,858 Collectively Evaluated for Impairment 447,918 232,724 64,838 401,707 1,388,541 174,224 970,168 8,304 3,688,424 Totals $ 464,061 $ 232,804 $ 65,087 $ 402,396 $ 1,388,541 $ 175,783 $ 987,306 $ 8,304 $ 3,724,282 Loans at December 31, 2022 Individually Evaluated for Impairment $ 19,675 $ 106 $ — $ 392 $ — $ 1,637 $ 6,239 $ — $ 28,049 Collectively Evaluated for Impairment 416,718 295,448 70,242 355,082 1,306,738 148,268 940,769 8,132 3,541,397 Totals $ 436,393 $ 295,554 $ 70,242 $ 355,474 $ 1,306,738 $ 149,905 $ 947,008 $ 8,132 $ 3,569,446 |
Summary of amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated | The following table presents the amortized cost basis of collateral dependent loans by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of December 31, 2023: Primary Type of Collateral Business ACL (dollars in thousands) Real Estate Assets Other Total Allocation December 31, 2023 Commercial $ — $ 5,782 $ 10,361 $ 16,143 $ 8 Construction and Land Development 80 — — 80 — 1-4 Family Construction 249 — — 249 — Real Estate Mortgage: 1-4 Family Mortgage 689 — — 689 — CRE Owner Occupied 1,559 — — 1,559 — CRE Nonowner Occupied 17,138 — — 17,138 95 Totals $ 19,715 $ 5,782 $ 10,361 $ 35,858 $ 103 |
Summary of impaired loans by loan segment | The following table presents information regarding total carrying amounts and total unpaid principal balances of impaired loans by loan segment as of December 31, 2022: December 31, 2022 Recorded Principal Related (dollars in thousands) Investment Balance Allowance Loans With No Related Allowance for Loan Losses: Commercial $ 19,508 $ 19,508 $ — Construction and Land Development 106 713 — Real Estate Mortgage: 1-4 Family Mortgage 392 392 — CRE Owner Occupied 1,637 1,726 — CRE Nonowner Occupied 6,239 6,239 — Totals 27,882 28,578 — Loans With An Allowance for Loan Losses: Commercial 167 167 71 Totals 167 167 71 Grand Totals $ 28,049 $ 28,745 $ 71 The following table presents information regarding the average balances and interest income recognized on impaired loans by loan segment for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Average Interest Average Interest (dollars in thousands) Investment Recognized Investment Recognized Loans With No Related Allowance for Loan Losses: Commercial $ 21,276 $ 782 $ 5,008 $ 268 Construction and Land Development 117 — 141 — Real Estate Mortgage: 1-4 Family Mortgage 402 21 1,401 71 CRE Owner Occupied 1,755 65 2,471 106 CRE Nonowner Occupied 6,390 342 4,247 215 Totals 29,940 1,210 13,268 660 Loans With An Allowance for Loan Losses: Commercial 180 5 13,761 755 Consumer and Other — — — — Totals 180 5 13,761 755 Grand Totals $ 30,120 $ 1,215 $ 27,029 $ 1,415 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Schedule of Premises and equipment | Premises and equipment are summarized as follows for the years ended December 31, 2023 and 2022: Range of December 31, December 31, (dollars in thousands) Useful Lives 2023 2022 Land N/A $ 8,119 $ 5,174 Building 15 - 39 Years 41,266 41,265 Leasehold Improvements 3 ‑ 10 Years 1,951 2,380 Furniture and Equipment 2 ‑ 5 Years 6,544 6,978 Subtotal 57,880 55,797 Accumulated Depreciation (8,994) (7,352) Totals $ 48,886 $ 48,445 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets | |
Summary of analysis of intangible assets | The following table presents a summary of intangible assets at December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Core Deposit Intangible $ 1,093 $ 1,093 Favorable Lease 445 445 Subtotal 1,538 1,538 Accumulated Amortization (1,350) (1,250) Totals $ 188 $ 288 |
Summary of estimated future amortization of the core deposit premium intangible and favorable lease asset | The following table presents the estimated future amortization of the favorable lease asset for the next five years and thereafter. The projections of amortization expense are based on existing asset balances as of December 31, 2023. Favorable (dollars in thousands) Lease 2024 $ 34 2025 34 2026 34 2027 34 2028 34 Thereafter 18 Totals $ 188 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Components of Lease Expense | The following table presents the components of lease expense and cash flow information related to operating leases as of the periods indicated: December 31, (dollars in thousands) 2023 2022 Operating Lease Cost $ 557 $ 538 Variable Lease Cost 262 253 Total Lease Cost $ 819 $ 791 |
Other Information on Operating Leases | The following table presents other information on the Company’s operating leases for the years ended December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Operating Lease Right-of-Use Assets $ 1,938 $ 2,472 Operating Lease Liabilities 1,972 2,496 Weighted Average Remaining Lease Term (in Years) 4.95 6.12 Weighted Average Discount Rate 1.68 % 1.46 % Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 543 $ 513 |
Schedule of future minimum rent commitments | The following table presents the future expected operating lease payments under the Company's operating lease agreements as of December 31, 2023: December 31, (dollars in thousands) 2023 2024 $ 587 2025 540 2026 354 2027 251 2028 254 Thereafter 53 Total Undiscounted Lease Payments 2,039 Discount for Present Value of Expected Cash Flows (67) Total Lease Liability $ 1,972 |
Schedule of future minimum rental income | The Company receives rents from the lease of office and retail space in its corporate headquarters building. Rental income is included in noninterest expense as an offset to rental expense. Future minimum rental income under these leases are listed below at December 31, 2023. (dollars in thousands) 2023 2024 $ 514 2025 519 2026 301 2027 263 2028 231 Thereafter 486 Total $ 2,314 |
Greenwood Location | |
Leases | |
Schedule of future minimum rent commitments | The Greenwood location is leased pursuant to the terms of a non‑cancelable lease agreement with Bridgewater Properties Greenwood, LLC, a related party through common ownership, in effect at December 31, 2023. The lease contains one option to extend the lease for a period of five years. Future minimum rent commitments under the operating lease are listed below at December 31, 2023. (dollars in thousands) 2023 2024 $ 178 2025 181 2026 108 Total $ 467 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits. | |
Schedule of composition of deposits | The following table presents the composition of deposits at December 31, 2023 and 2022: December 31, (dollars in thousands) 2023 2022 Transaction Deposits $ 1,449,765 $ 1,336,264 Savings and Money Market Deposits 935,091 1,031,873 Time Deposits 300,651 272,253 Brokered Deposits 1,024,441 776,153 Totals $ 3,709,948 $ 3,416,543 |
Summary of scheduled maturities of brokered and customer time deposits | The following table presents the scheduled maturities of brokered and customer time deposits at December 31, 2023: December 31, (dollars in thousands) 2023 Less than 1 Year $ 337,988 1 to 2 Years 277,949 2 to 3 Years 288,862 3 to 4 Years 76,411 4 to 5 Years 124,435 Greater than 5 Years 45,465 Totals $ 1,151,110 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities | |
Schedule of derivative instruments eligible for offset | The following table summarizes gross and net information about derivative instruments that are eligible for offset in the balance sheet at December 31, 2023 and 2022: Gross Amounts Gross Amounts Assets (Liabilities) of Recognized Offset in the Presented in the Financial Cash Collateral Net Assets (dollars in thousands) Assets (Liabilities) Balance Sheet Balance Sheet Instruments Received (Paid) (Liabilities) December 31, 2023 Assets $ 32,589 $ — $ 32,589 $ — $ 31,783 $ 806 Liabilities (8,601) — (8,601) — — (8,601) December 31, 2022 Assets $ 38,123 $ — $ 38,123 $ — $ 36,353 $ 1,770 Liabilities (9,542) — (9,542) — — (9,542) |
Effect of derivative instruments in cash flow hedging relationships | The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the years ended December 31, 2023, 2022 and 2021: Year Ended December 31, (dollars in thousands) 2023 2022 2021 Derivatives in Location of Gain (Loss) Gain (Loss) Cash Flow Hedging Reclassified Reclassified from Relationships from AOCI into Income AOCI into Earnings Interest rate swaps Interest expense $ 5,783 $ 679 $ (1,117) Interest rate caps Interest expense 319 (671) (403) |
Cash flow hedge | |
Derivative Instruments and Hedging Activities | |
Summary of interest rate derivatives | The following table presents a summary of the Company’s interest rate contracts as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 135,000 $ 6,891 $ 125,000 $ 10,477 Liabilities 48,000 (1,620) 38,000 (1,302) Interest rate cap agreements: Assets 125,000 18,717 125,000 19,406 |
Interest Rate Swap | |
Derivative Instruments and Hedging Activities | |
Summary of interest rate derivatives | The following table presents a summary of the Company’s interest rate swaps to facilitate customer transactions as of December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Notional Estimated Notional Estimated (dollars in thousands) Amount Fair Value Amount Fair Value Interest rate swap agreements: Assets $ 63,814 $ 6,981 $ 65,315 $ 8,240 Liabilities 63,814 (6,981) 65,315 (8,240) Total $ 127,628 $ — $ 130,630 $ — |
Interest Rate Swap | Cash flow hedge | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | The following table presents a summary of the Company’s interest rate swaps designated as cash flow hedges as of December 31, 2023 and 2022: (dollars in thousands) December 31, 2023 December 31, 2022 Notional Amount $ 183,000 $ 163,000 Weighted Average Pay Rate 2.00 % 1.90 % Weighted Average Receive Rate 5.48 % 3.47 % Weighted Average Maturity (Years) 4.04 5.15 Net Unrealized Gain $ 5,271 $ 9,175 |
Interest Rate Cap | Cash flow hedge | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | The following table presents a summary of the Company’s interest rate caps designated as cash flow hedges as of December 31, 2023 and 2022: (dollars in thousands) December 31, 2023 December 31, 2022 Notional Amount $ 125,000 $ 125,000 Unamortized Premium Paid 5,081 5,872 Weighted Average Strike Rate 0.96 % 0.96 % Weighted Average Maturity (Years) 6.34 7.35 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Federal Home Loan Bank Advances and Other Borrowings | |
Schedule of FHLB advances, by maturity | The following table presents FHLB advances, by maturity, at December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Average Total Average Total (dollars in thousands) Rate Outstanding Rate Outstanding Less than 1 Year 5.31 % $ 233,000 4.30 % $ 83,000 1 to 2 Years 4.31 25,000 1.05 5,000 2 to 3 Years 3.45 21,500 1.22 5,000 3 to 4 Years 3.94 17,500 0.78 4,000 4 to 5 Years 4.01 22,500 — — Totals $ 319,500 $ 97,000 |
Schedule of revolving line of credit | The following table presents the revolving line of credit at December 31, 2023 and 2022: Total Debt Total Debt Outstanding Outstanding Interest Name Maturity Date December 31, 2023 December 31, 2022 Rate Coupon Structure Revolving Credit Facility (1) September 1, 2024 $ 13,750 13,750 8.50 % Variable with Floor (2) (1) On September 1, 2022, the Company entered into a second amendment to the agreement which increased the maximum principal amount of the Company’s revolving line of credit from $25.0 million to $40.0 million and extended the maturity date from February 28, 2023 to September 1, 2024. (2) The variable interest rate is equal to the greater of the Wall Street Journal Prime Rate in effect or a floor rate of 3.85% . |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debentures | |
Schedule of subordinated debentures | The following presents a summary of the Company’s subordinated debentures as of December 31, 2023 and 2022: Total Debt Total Debt Date First Maturity Outstanding Outstanding Interest Name Established Redemption Date Date December 31, 2023 December 31, 2022 Rate Coupon Structure (dollars in thousands) 2030 Notes June 19, 2020 July 1, 2025 July 1, 2030 50,000 50,000 5.25 % Fixed-to-Floating (1) 2031 Notes July 8, 2021 July 15, 2026 July 15, 2031 30,000 30,000 3.25 % Fixed-to-Floating (2) Subordinated Debentures 80,000 80,000 Debt Issuance Costs (712) (1,095) Subordinated Debentures, Net of Issuance Costs $ 79,288 $ 78,905 (1) Migrates to three month term SOFR + 5.13% beginning July 1, 2025 until either the early redemption date or the maturity date. (2) Migrates to three month term SOFR + 2.52% beginning July 15, 2026 until either the early redemption date or the maturity date. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related-Party Transactions | |
Schedule of loans made between related parties | In the ordinary course of business, the Company has granted loans to executive officers, directors, principal shareholders, and their affiliates (related parties). The following table presents the activity associated with loans made between related parties for the years ended December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Beginning Balance $ 27,676 $ 49,964 New Loans and Advances 8,587 16,006 Repayments (4,423) (38,294) Totals $ 31,840 $ 27,676 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Summary of allocation of federal and state income taxes | The following table presents the allocation of federal and state income taxes between current and deferred portions as of December 31, 2023, 2022 and 2021: (dollars in thousands) 2023 2022 2021 Current Tax Provision $ 11,886 $ 19,719 $ 20,408 Deferred Tax Expense (Benefit) 676 (1,401) (4,522) Total Income Tax Provision $ 12,562 $ 18,318 $ 15,886 |
Statutory federal income tax rate and the effective tax rates | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows as of December 31, 2023, 2022 and 2021: 2023 2022 2021 (dollars in thousands) Amount Percent Amount Percent Amount Percent Amount of Statutory Rate $ 11,030 21.0 % $ 15,059 21.0 % $ 12,930 21.0 % State Income Taxes (Net of Federal Income Tax Benefit) 3,511 6.6 5,349 7.5 4,647 7.6 Interest on Investment Securities and Loans Exempt From Federal Income Tax (1,175) (2.3) (899) (1.3) (657) (1.1) Tax Credits (91) 0.0 (835) (1.2) (540) (0.9) Other Differences (713) (1.4) (356) (0.5) (494) (0.8) Totals $ 12,562 23.9 % $ 18,318 25.5 % $ 15,886 25.8 % |
Summary of components of the net deferred tax asset | The following table presents the components of the net deferred tax asset included in other assets, as of December 31, 2023 and 2022: (dollars in thousands) 2023 2022 Depreciation $ (279) $ (325) Allowance for Credit Losses 14,261 13,639 Unrealized Loss on Securities Available for Sale 12,793 13,759 Unrealized Gain on Cash Flow Hedges (5,434) (6,527) Prepaid Expenses (221) (886) Deferred Compensation — 510 Deferred Loan Fees 1,856 2,745 Reserve for Off-Balance Sheet Credit Exposures 843 — Other 108 2 Totals $ 23,927 $ 22,917 |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tax Credit Investments | |
Summary of investments in qualified affordable housing projects and other tax credit investments | The following table presents a summary of the Company’s investments in qualified affordable housing projects and other tax credit investments at December 31, 2023 and 2022: (dollars in thousands) December 31, 2023 December 31, 2022 Investment Accounting Method (1) Investment Unfunded Commitment (2) Investment Unfunded Commitment Low Income Housing Tax Credit (LIHTC) Proportional Amortization $ 16,897 $ 7,579 $ 4,701 $ — Federal Historic Tax Credit (FHTC) Equity N/A N/A 1,785 323 Federal Historic Tax Credit (FHTC) Proportional Amortization 3,403 2,353 N/A N/A Total $ 20,300 $ 9,932 $ 6,486 $ 323 (1) The Company early adopted ASU 2023-02 applying the modified retrospective method. Effective January 1, 2023, historic tax credits were accounted for under the proportional amortization method. (2) All commitments are expected to be paid by the Company by December 31, 2024. |
Schedule of amortization expense and tax benefit for qualified affordable housing projects and other tax credit investments | Year Ended December 31, (dollars in thousands) 2023 2022 2021 Amortization Expense (1) LIHTC $ 1,810 $ 271 $ 280 FHTC 668 408 562 Total $ 2,478 $ 679 $ 842 Tax Benefit Recognized (2) LIHTC $ (1,693) $ (330) $ (330) FHTC (912) (607) (625) Total $ (2,605) $ (937) $ (955) (1) The amortization expense for the LIHTC investments are included in income tax expense. Prior to 2023, the amortization for the FHTC tax credits are included in noninterest expense. Beginning January 1, 2023, with the adoption of ASU 2023-02, the amortization expense for the FHTC investments are included in income tax expense. (2) All of the tax benefits recognized are included in income tax expense. Prior to 2023, the tax benefit recognized for the FHTC investments primarily reflected the tax credits generated from the investments, and excluded the net tax expense/benefit of the investments’ income/loss. |
Commitments, Contingencies an_2
Commitments, Contingencies and Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments, Contingencies and Credit Risk | |
Schedule of commitments outstanding | The following commitments were outstanding at December 31, 2023 and 2022: December 31, December 31, (dollars in thousands) 2023 2022 Unfunded Commitments Under Lines of Credit $ 546,632 $ 848,734 Letters of Credit 103,289 115,769 Totals $ 649,921 $ 964,503 |
Schedule of balance and activity in the allowance for credit losses for off-balance sheet credit exposures | The ACL for off-balance sheet credit exposures was $3.0 million at December 31, 2023 and is separately classified on the balance sheet within other liabilities. Prior to the adoption of CECL, the Company’s ACL for off-balance sheet credit exposures was not material. The following table presents the balance and activity in the allowance for credit losses for off-balance sheet credit exposures for the year ended December 31, 2023: (dollars in thousands) December 31, 2023 Allowance for Credit Losses: Beginning Balance, Prior to Adoption of CECL $ 360 Impact of Adopting CECL 4,850 Provision for (Recovery of) Off-Balance Sheet Credit Exposures (2,225) Total Ending Balance $ 2,985 |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock Options and Restricted Stock | |
Summary of valuation assumptions used to determine the fair value of option award | The weighted average assumptions used in the model for valuing stock option grants in 2023 is as follows: December 31, 2023 Dividend Yield — % Expected Life 7 Years Expected Volatility 36.85 % Risk-Free Interest Rate 4.21 % |
Summary of the status of the Company's outstanding stock options | The following table presents a summary of the status of the Company’s outstanding stock options for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Outstanding at Beginning of Year 1,913,444 $ 9.35 1,768,745 $ 7.67 Granted 421,500 10.84 290,000 17.50 Exercised (305,950) 3.15 (133,301) 4.33 Forfeitures (14,000) 14.63 (12,000) 14.77 Outstanding at Period End 2,014,994 $ 10.57 1,913,444 $ 9.35 Options Exercisable at Period End 1,348,744 $ 9.36 1,492,069 $ 7.51 |
Summary of information pertaining to options outstanding based on range of exercise price | The following table presents information pertaining to options outstanding at December 31, 2023: Options Outstanding Options Exercisable Weighted Average Number of Weighted Average Remaining Contractual Number of Weighted Average Range of Exercise Prices Options Exercise Price Life in Years Options Exercise Price $ 3.00 - 3.99 10,000 $ 3.58 1.0 10,000 $ 3.58 7.00 - 7.99 891,966 7.47 3.8 891,966 7.47 8.00 - 8.99 17,500 8.76 6.3 11,250 8.76 10.00 - 10.99 249,000 10.63 9.5 7,500 10.08 11.00 - 11.99 267,500 11.15 8.5 73,000 11.29 12.00 - 12.99 263,528 12.90 5.6 257,278 12.91 13.00 - 13.99 25,000 13.22 4.4 25,000 13.22 17.00 - 17.99 290,500 17.50 8.1 72,750 17.50 Totals 2,014,994 $ 10.57 6.0 1,348,744 $ 9.36 |
Summary of analysis of nonvested options to purchase shares of the Company's stock issued and outstanding | The following table presents an analysis of nonvested options to purchase shares of the Company’s stock issued and outstanding for the year ended December 31, 2023: Weighted Number of Average Grant Shares Date Fair Value Nonvested Options at December 31, 2022 421,375 $ 4.87 Granted 421,500 5.04 Vested (171,625) 4.40 Forfeited (5,000) 5.74 Nonvested Options at December 31, 2023 666,250 $ 5.09 |
Summary of the status of the Company's outstanding restricted stock awards | The following table presents an analysis of nonvested restricted stock awards outstanding for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Number of Average Grant Number of Average Grant Shares Date Fair Value Shares Date Fair Value Nonvested at December 31, 2022 38,762 $ 12.50 75,113 $ 12.59 Granted — — — — Vested (35,101) 12.69 (35,351) 12.69 Forfeited (250) 12.92 (1,000) 12.92 Nonvested at December 31, 2023 3,411 $ 10.53 38,762 $ 12.50 |
Summary of the status of the Company's outstanding restricted stock units | The following table presents an analysis of nonvested restricted stock units outstanding for the years ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Weighted Weighted Number of Average Grant Number of Average Grant Shares Date Fair Value Shares Date Fair Value Nonvested at December 31, 2022 351,310 $ 16.30 344,908 $ 15.02 Granted 221,561 12.77 112,760 18.72 Vested (121,603) 15.53 (96,786) 14.65 Forfeited (10,253) 17.79 (9,572) 15.12 Nonvested at December 31, 2023 441,015 $ 14.71 351,310 $ 16.30 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulatory Capital | |
Summary of company and the Bank's capital amounts and ratios | The following tables present the capital amounts and ratios for the Company, on a consolidated basis, and the Bank as of December 31, 2023 and 2022: Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Company (Consolidated): Total Risk-based Capital $ 570,770 13.97 % $ 326,872 8.00 % $ 429,019 10.50 % N/A N/A Tier 1 Risk-based Capital 440,947 10.79 245,154 6.00 347,301 8.50 N/A N/A Common Equity Tier 1 Capital 374,433 9.16 183,865 4.50 286,013 7.00 N/A N/A Tier 1 Leverage Ratio 440,947 9.57 184,383 4.00 184,383 4.00 N/A N/A Bank: Total Risk-based Capital $ 554,269 13.58 % $ 326,528 8.00 % $ 428,568 10.50 % $ 408,160 10.00 % Tier 1 Risk-based Capital 503,787 12.34 244,896 6.00 346,936 8.50 326,528 8.00 Common Equity Tier 1 Capital 503,787 12.34 183,672 4.50 285,712 7.00 265,304 6.50 Tier 1 Leverage Ratio 503,787 10.95 184,037 4.00 184,037 4.00 230,047 5.00 Minimum Required For Capital Adequacy To be Well Capitalized For Capital Adequacy Purposes Plus Capital Under Prompt Corrective Actual Purposes Conservation Buffer Action Regulations (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Company (Consolidated): Total Risk-based Capital $ 536,352 13.15 % $ 326,190 8.00 % $ 428,125 10.50 % N/A N/A Tier 1 Risk-based Capital 409,092 10.03 244,643 6.00 346,577 8.50 N/A N/A Common Equity Tier 1 Capital 342,578 8.40 183,482 4.50 285,417 7.00 N/A N/A Tier 1 Leverage Ratio 409,092 9.55 171,368 4.00 171,368 4.00 N/A N/A Bank: Total Risk-based Capital $ 508,760 12.47 % $ 326,288 8.00 % $ 428,253 10.50 % $ 407,860 10.00 % Tier 1 Risk-based Capital 460,404 11.29 244,716 6.00 346,681 8.50 326,288 8.00 Common Equity Tier 1 Capital 460,404 11.29 183,537 4.50 285,502 7.00 265,109 6.50 Tier 1 Leverage Ratio 460,404 10.76 171,113 4.00 171,113 4.00 213,891 5.00 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement | |
Summary of balances of the assets and liabilities measured at fair value on a recurring basis | The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. There have been no changes in the methodologies used at December 31, 2023. The following table presents the balances of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: Municipal Bonds $ — $ 132,524 $ — $ 132,524 Mortgage-Backed Securities — 235,315 — 235,315 Corporate Securities — 130,605 — 130,605 SBA Securities — 18,674 — 18,674 Asset-Backed Securities — 86,986 — 86,986 Interest Rate Caps — 18,717 — 18,717 Interest Rate Swaps — 13,872 — 13,872 Total Fair Value of Financial Assets $ — $ 636,693 $ — $ 636,693 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 8,601 $ — $ 8,601 Total Fair Value of Financial Liabilities $ — $ 8,601 $ — $ 8,601 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Total Fair Value of Financial Assets: Securities Available for Sale: U.S. Treasury Securities $ 2,580 $ — $ — $ 2,580 Municipal Bonds — 131,354 — 131,354 Mortgage-Backed Securities — 237,784 — 237,784 Corporate Securities — 109,827 — 109,827 SBA Securities — 20,877 — 20,877 Asset-Backed Securities — 46,191 — 46,191 Interest Rate Caps — 19,406 — 19,406 Interest Rate Swaps — 18,717 — 18,717 Total Fair Value of Financial Assets $ 2,580 $ 584,156 $ — $ 586,736 Fair Value of Financial Liabilities: Interest Rate Swaps $ — $ 9,542 $ — $ 9,542 Total Fair Value of Financial Liabilities $ — $ 9,542 $ — $ 9,542 |
Summary of net impairment losses related to nonrecurring fair value measurements of certain asset | The following tables present nonrecurring fair value measurements of certain assets for the periods ended December 31, 2023, 2022 and 2021: December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Loss Individually Evaluated Loans $ — $ — $ 9,602 $ 199 Totals $ — $ — $ 9,602 $ 199 December 31, 2022 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 96 $ — $ 71 Totals $ — $ 96 $ — $ 71 December 31, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Loss Impaired Loans $ — $ 9,360 $ — $ 625 Totals $ — $ 9,360 $ — $ 625 |
Summary of carrying amount and estimated fair values of financial instruments | The following tables present the carrying amounts and estimated fair values of financial instruments at December 31, 2023 and 2022: December 31, 2023 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 128,562 $ 128,562 $ — $ — $ 128,562 Securities Available for Sale 604,104 — 604,104 — 604,104 FHLB Stock, at Cost 17,097 — 17,097 — 17,097 Loans, Net 3,667,215 — 3,579,583 9,602 3,589,185 Accrued Interest Receivable 16,697 — 16,697 — 16,697 Interest Rate Caps 18,717 — 18,717 — 18,717 Interest Rate Swaps 13,872 — 13,872 — 13,872 Financial Liabilities: Deposits $ 3,709,948 $ — $ 3,709,086 $ — $ 3,709,086 Notes Payable 13,750 — 13,805 — 13,805 FHLB Advances 319,500 — 319,305 — 319,305 Subordinated Debentures 79,288 — 77,557 — 77,557 Accrued Interest Payable 5,282 — 5,282 — 5,282 Interest Rate Swaps 8,601 — 8,601 — 8,601 December 31, 2022 Fair Value Hierarchy Carrying Estimated (dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial Assets: Cash and Due From Banks $ 87,043 $ 87,043 $ — $ — $ 87,043 Bank-Owned Certificates of Deposit 1,181 — 1,173 — 1,173 Securities Available for Sale 548,613 2,580 546,033 — 548,613 FHLB Stock, at Cost 19,606 — 19,606 — 19,606 Loans, Net 3,512,157 — 3,314,190 — 3,314,190 Accrued Interest Receivable 13,479 — 13,479 — 13,479 Interest Rate Caps 19,406 — 19,406 — 19,406 Interest Rate Swaps 18,717 — 18,717 — 18,717 Financial Liabilities: Deposits $ 3,416,543 $ — $ 3,390,416 $ — $ 3,390,416 Federal Funds Purchased 287,000 — 287,000 — 287,000 Notes Payable 13,750 — 13,473 — 13,473 FHLB Advances 97,000 — 96,061 — 96,061 Subordinated Debentures 78,905 — 70,931 — 70,931 Accrued Interest Payable 2,831 — 2,831 — 2,831 Interest Rate Swaps 9,542 — 9,542 — 9,542 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss). | |
Summary of components of other comprehensive income (loss) | The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021: (dollars in thousands) Before Tax Tax Effect Net of Tax Year Ended December 31, 2023 Net Unrealized Gain on Available for Sale Securities $ 3,339 $ (959) $ 2,380 Less: Reclassification Adjustment for Net Losses Included in Net Income 33 (9) 24 Total Unrealized Gain 3,372 (968) 2,404 Net Unrealized Gain on Cash Flow Hedge 2,299 (660) 1,639 Less: Reclassification Adjustment for Gains Included in Net Income (6,102) 1,755 (4,347) Total Unrealized Loss (3,803) 1,095 (2,708) Other Comprehensive Loss $ (431) $ 127 $ (304) Year Ended December 31, 2022 Net Unrealized Loss on Available for Sale Securities $ (56,914) $ 15,649 $ (41,265) Less: Reclassification Adjustment for Net Gains Included in Net Income (82) 23 (59) Total Unrealized Loss (56,996) 15,672 (41,324) Net Unrealized Gain on Cash Flow Hedge 20,430 (6,048) 14,382 Less: Reclassification Adjustment for Gains Included in Net Income (8) 2 (6) Total Unrealized Gain 20,422 (6,046) 14,376 Other Comprehensive Loss $ (36,574) $ 9,626 $ (26,948) Year Ended December 31, 2021 Net Unrealized Loss on Available for Sale Securities $ (1,689) $ 355 $ (1,334) Less: Reclassification Adjustment for Net Gains Included in Net Income (750) 157 (593) Total Unrealized Loss (2,439) 512 (1,927) Net Unrealized Gain on Cash Flow Hedge 3,991 (838) 3,153 Less: Reclassification Adjustment for Losses Included in Net Income 1,520 (319) 1,201 Total Unrealized Gain 5,511 (1,157) 4,354 Other Comprehensive Gain $ 3,072 $ (645) $ 2,427 |
Summary of changes in each component of accumulated other comprehensive income (loss), net of tax | The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2023, 2022 and 2021: Accumulated Available For Other Comprehensive (dollars in thousands) Sale Securities Cash Flow Hedge Income (Loss) Year Ended December 31, 2023 Balance at Beginning of Year $ (34,124) $ 16,182 $ (17,942) Other Comprehensive Income Before Reclassifications 2,380 1,639 4,019 Amounts Reclassified from Accumulated Other Comprehensive Income 24 (4,347) (4,323) Net Other Comprehensive Income (Loss) During Period 2,404 (2,708) (304) Balance at End of Year $ (31,720) $ 13,474 $ (18,246) Year Ended December 31, 2022 Balance at Beginning of Year $ 7,200 $ 1,806 $ 9,006 Other Comprehensive Income (Loss) Before Reclassifications (41,265) 14,382 (26,883) Amounts Reclassified from Accumulated Other Comprehensive Income (59) (6) (65) Net Other Comprehensive Income (Loss) During Period (41,324) 14,376 (26,948) Balance at End of Year $ (34,124) $ 16,182 $ (17,942) Year Ended December 31, 2021 Balance at Beginning of Year $ 9,127 $ (2,548) $ 6,579 Other Comprehensive Income (Loss) Before Reclassifications (1,334) 3,153 1,819 Amounts Reclassified from Accumulated Other Comprehensive Income (593) 1,201 608 Net Other Comprehensive Income (Loss) During Period (1,927) 4,354 2,427 Balance at End of Year $ 7,200 $ 1,806 $ 9,006 |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Parent Company Financial Information | |
Schedule of Condensed Balance Sheets | December 31, December 31, (dollars in thousands) 2023 2022 ASSETS Cash and Cash Equivalents $ 27,733 $ 37,414 Investment in Subsidiaries 488,355 447,931 Premises and Equipment, Net 3,760 844 Other Assets 2,772 3,180 Total Assets $ 522,620 $ 489,369 LIABILITIES AND EQUITY LIABILITIES Notes Payable $ 13,750 $ 13,750 Subordinated Debentures, Net of Issuance Costs 79,288 78,905 Accrued Interest Payable 1,765 452 Other Liabilities 2,302 2,198 Total Liabilities 97,105 95,305 SHAREHOLDERS’ EQUITY Preferred Stock—$0.01 par value Preferred Stock—Authorized 10,000,000 66,514 66,514 Common Stock—$0.01 par value Voting Common Stock—Authorized 75,000,000 277 278 Additional Paid‑In Capital 96,320 96,529 Retained Earnings 280,650 248,685 Accumulated Other Comprehensive Income (Loss) (18,246) (17,942) Total Shareholders’ Equity 425,515 394,064 Total Liabilities and Shareholders' Equity $ 522,620 $ 489,369 |
Schedule of Condensed Statements of Income | December 31, December 31, December 31, (dollars in thousands) 2023 2022 2021 INCOME Dividend Income $ — $ 1,585 $ 1,350 Interest Income 3 — — Other Income 118 129 117 Total Income 121 1,714 1,467 EXPENSE Interest Expense 5,126 4,890 4,691 Other Expenses 1,757 1,570 1,972 Total Interest Expense 6,883 6,460 6,663 LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS (6,762) (4,746) (5,196) Income Tax Benefit 1,894 1,792 1,847 LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS (4,868) (2,954) (3,349) Equity in Undistributed Earnings 44,828 56,346 49,036 NET INCOME $ 39,960 $ 53,392 $ 45,687 |
Schedule of Condensed Statements of Cash Flows | December 31, December 31, December 31, (dollars in thousands) 2023 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 39,960 $ 53,392 $ 45,687 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: Equity in Undistributed Earnings of Subsidiaries (44,828) (56,346) (49,036) Changes in Other Assets and Liabilities (738) (193) 634 Net Cash Used by Operating Activities (5,606) (3,147) (2,715) CASH FLOWS FROM INVESTING ACTIVITIES Investment in Subsidiaries — (25,000) (25,000) Proceeds from Bridgewater Risk Management, Inc. Liquidation 4,143 — — Net Cash Provided (Used) by Investing Activities 4,143 (25,000) (25,000) CASH FLOWS FROM FINANCING ACTIVITIES Principal Payments on Notes Payable — — (11,000) Proceeds from Notes Payable — 13,750 — Proceeds from Issuance of Subordinated Debt — — 29,309 Redemption of Subordinated Debt — (13,750) (11,250) Stock Options Exercised 963 577 724 Stock Repurchases and Repurchases for Tax Withholding on Equity Awards (5,127) (11,513) (2,740) Issuance of Preferred Stock — — 66,514 Preferred Stock Dividends Paid (4,054) (4,054) (1,171) Net Cash Provided (Used) by Financing Activities (8,218) (14,990) 70,386 NET CHANGE IN CASH AND CASH EQUIVALENTS (9,681) (43,137) 42,671 Cash and Cash Equivalents Beginning 37,414 80,551 37,880 Cash and Cash Equivalents Ending $ 27,733 $ 37,414 $ 80,551 |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Description of the Business and Summary of Significant Accounting Policies | |
Bank-owned certificates of deposit mature | 5 years |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies - Impact of Adoption of CECL (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Impact of Recently Adopted Accounting Guidance | |||||
Retained Earnings | $ 280,650,000 | $ 248,685,000 | |||
Allowance of loan loss | 50,494,000 | $ 48,646,000 | 47,996,000 | $ 40,020,000 | $ 34,841,000 |
Allowance for Credit Losses on Off-balance Sheet Credit Exposures | 2,985,000 | 5,210,000 | 360,000 | ||
Deferred taxes | 23,927,000 | 22,917,000 | |||
Transitional adjustments to retained earnings | 425,515,000 | 394,064,000 | 379,272,000 | 265,405,000 | |
Commercial | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 5,398,000 | 5,343,000 | 6,501,000 | 6,269,000 | 5,773,000 |
Construction and Land Development | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 2,156,000 | 2,841,000 | 3,911,000 | 3,139,000 | 1,679,000 |
1-4 Family Construction | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 558,000 | 610,000 | 845,000 | 618,000 | 812,000 |
1-4 Family Mortgage | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 2,651,000 | 2,547,000 | 4,325,000 | 3,757,000 | 3,972,000 |
Multifamily | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 22,217,000 | 20,777,000 | 17,459,000 | 12,610,000 | 9,517,000 |
CRE Owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 1,184,000 | 1,022,000 | 1,965,000 | 1,495,000 | 1,162,000 |
CRE Non-owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 16,225,000 | 15,445,000 | 12,576,000 | 11,335,000 | 10,991,000 |
Consumer and other | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | $ 105,000 | 61,000 | 151,000 | 147,000 | 203,000 |
Unallocated | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 263,000 | $ 650,000 | $ 732,000 | ||
Before Adoption | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 47,996,000 | ||||
Allowance for Credit Losses on Off-balance Sheet Credit Exposures | 360,000 | ||||
Before Adoption | Commercial | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 6,500,000 | ||||
Before Adoption | Paycheck Protection Program (PPP), CARES Act | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 1,000 | ||||
Before Adoption | Construction and Land Development | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 3,911,000 | ||||
Before Adoption | 1-4 Family Construction | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 845,000 | ||||
Before Adoption | 1-4 Family Mortgage | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 4,325,000 | ||||
Before Adoption | Multifamily | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 17,459,000 | ||||
Before Adoption | CRE Owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 1,965,000 | ||||
Before Adoption | CRE Non-owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 12,576,000 | ||||
Before Adoption | Consumer and other | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 151,000 | ||||
Before Adoption | Unallocated | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 263,000 | ||||
Impact of Adoption | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 650,000 | ||||
Allowance for Credit Losses on Off-balance Sheet Credit Exposures | 4,850,000 | ||||
Impact of Adoption | Commercial | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,157,000) | ||||
Impact of Adoption | Paycheck Protection Program (PPP), CARES Act | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,000) | ||||
Impact of Adoption | Construction and Land Development | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,070,000) | ||||
Impact of Adoption | 1-4 Family Construction | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (235,000) | ||||
Impact of Adoption | 1-4 Family Mortgage | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,778,000) | ||||
Impact of Adoption | Multifamily | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 3,318,000 | ||||
Impact of Adoption | CRE Owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (943,000) | ||||
Impact of Adoption | CRE Non-owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 2,869,000 | ||||
Impact of Adoption | Consumer and other | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (90,000) | ||||
Impact of Adoption | Unallocated | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (263,000) | ||||
Cumulative Effect of Change | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 650,000 | ||||
Allowance for Credit Losses on Off-balance Sheet Credit Exposures | 4,850,000 | ||||
Cumulative Effect of Change | Commercial | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,158,000) | ||||
Cumulative Effect of Change | Construction and Land Development | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,070,000) | ||||
Cumulative Effect of Change | 1-4 Family Construction | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (235,000) | ||||
Cumulative Effect of Change | 1-4 Family Mortgage | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (1,778,000) | ||||
Cumulative Effect of Change | Multifamily | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 3,318,000 | ||||
Cumulative Effect of Change | CRE Owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (943,000) | ||||
Cumulative Effect of Change | CRE Non-owner Occupied | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | 2,869,000 | ||||
Cumulative Effect of Change | Consumer and other | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (90,000) | ||||
Cumulative Effect of Change | Unallocated | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Allowance of loan loss | (263,000) | ||||
ASU 2016-13 | Cumulative Effect of Change | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Retained Earnings | 3,900,000 | ||||
Allowance of loan loss | 650,000 | ||||
Allowance for Credit Losses on Off-balance Sheet Credit Exposures | 4,800,000 | ||||
Deferred taxes | $ 1,600,000 | ||||
Transitional adjustments to retained earnings | (3,920,000) | ||||
ASU 2023-02 | Cumulative Effect of Change | |||||
Impact of Recently Adopted Accounting Guidance | |||||
Transitional adjustments to retained earnings | $ (21,000) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share | |||
Anti dilutive securities excluded from the calculation of EPS | 1,096,472 | 410,760 | 222,107 |
Net Income Available to Common Shareholders | $ 35,906 | $ 49,338 | $ 44,516 |
Weighted Average Common Stock Outstanding: | |||
Weighted Average Common Stock Outstanding (Basic) | 27,857,420 | 27,758,336 | 28,027,454 |
Dilutive Effect of Stock Compensation | 458,167 | 909,841 | 940,832 |
Weighted Average Common Stock Outstanding (Dilutive) | 28,315,587 | 28,668,177 | 28,968,286 |
Basic Earnings per Common Share (in dollars per share) | $ 1.29 | $ 1.78 | $ 1.59 |
Diluted Earnings per Common Share (in dollars per share) | $ 1.27 | $ 1.72 | $ 1.54 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | $ 648,616 | $ 596,497 |
Gross Unrealized Gains | 3,330 | 2,839 |
Gross Unrealized Losses | (47,842) | (50,723) |
Fair value | 604,104 | 548,613 |
Asset Pledged as Collateral | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Fair value | 170,700 | |
U.S. Treasury Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | 2,621 | |
Gross Unrealized Losses | (41) | |
Fair value | 2,580 | |
Municipal Bonds | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | 151,512 | 156,506 |
Gross Unrealized Gains | 47 | 62 |
Gross Unrealized Losses | (19,035) | (25,214) |
Fair value | 132,524 | 131,354 |
Mortgage-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | 249,455 | 252,919 |
Gross Unrealized Gains | 2,261 | 2,465 |
Gross Unrealized Losses | (16,401) | (17,600) |
Fair value | 235,315 | 237,784 |
Corporate Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | 142,098 | 116,871 |
Gross Unrealized Gains | 386 | 45 |
Gross Unrealized Losses | (11,879) | (7,089) |
Fair value | 130,605 | 109,827 |
SBA Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | 18,497 | 20,957 |
Gross Unrealized Gains | 279 | 79 |
Gross Unrealized Losses | (102) | (159) |
Fair value | 18,674 | 20,877 |
Asset-Backed Securities | ||
The amortized cost and estimated fair value of securities with gross unrealized gains and losses | ||
Amortized cost | 87,054 | 46,623 |
Gross Unrealized Gains | 357 | 188 |
Gross Unrealized Losses | (425) | (620) |
Fair value | $ 86,986 | $ 46,191 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | 521 | 530 |
Less Than 12 Months, Fair Value | $ 95,041 | $ 298,369 |
Less Than 12 Months, Unrealized Losses | (1,320) | (16,312) |
12 Months or Greater, Fair Value | 378,544 | 165,296 |
12 Months or Greater, Unrealized Losses | (46,522) | (34,411) |
Fair Value | 473,585 | 463,665 |
Unrealized Losses | $ (47,842) | $ (50,723) |
Percentage debt securities with aggregate depreciation from amortized cost basis | 9.20% | 9.90% |
Allowance for available for sale securities | $ 0 | |
Accrued interest receivable on securities | $ 4,900 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | |
U.S. Treasury Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | security | 6 | |
Less Than 12 Months, Fair Value | $ 2,330 | |
Less Than 12 Months, Unrealized Losses | (41) | |
Fair Value | 2,330 | |
Unrealized Losses | $ (41) | |
Municipal Bonds | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | security | 212 | 225 |
Less Than 12 Months, Fair Value | $ 4,052 | $ 59,912 |
Less Than 12 Months, Unrealized Losses | (17) | (5,321) |
12 Months or Greater, Fair Value | 120,527 | 69,424 |
12 Months or Greater, Unrealized Losses | (19,018) | (19,893) |
Fair Value | 124,579 | 129,336 |
Unrealized Losses | $ (19,035) | $ (25,214) |
Mortgage-Backed Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | security | 128 | 130 |
Less Than 12 Months, Fair Value | $ 35,719 | $ 123,224 |
Less Than 12 Months, Unrealized Losses | (310) | (5,427) |
12 Months or Greater, Fair Value | 135,829 | 62,882 |
12 Months or Greater, Unrealized Losses | (16,091) | (12,173) |
Fair Value | 171,548 | 186,106 |
Unrealized Losses | $ (16,401) | $ (17,600) |
Corporate Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | security | 110 | 100 |
Less Than 12 Months, Fair Value | $ 14,528 | $ 88,486 |
Less Than 12 Months, Unrealized Losses | (756) | (5,121) |
12 Months or Greater, Fair Value | 101,311 | 17,054 |
12 Months or Greater, Unrealized Losses | (11,123) | (1,968) |
Fair Value | 115,839 | 105,540 |
Unrealized Losses | $ (11,879) | $ (7,089) |
SBA Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | security | 47 | 49 |
Less Than 12 Months, Fair Value | $ 1,731 | $ 2,498 |
Less Than 12 Months, Unrealized Losses | (3) | (6) |
12 Months or Greater, Fair Value | 7,072 | 9,750 |
12 Months or Greater, Unrealized Losses | (99) | (153) |
Fair Value | 8,803 | 12,248 |
Unrealized Losses | $ (102) | $ (159) |
Asset-Backed Securities | ||
Fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ||
Number of Holdings with unrealized losses | security | 24 | 20 |
Less Than 12 Months, Fair Value | $ 39,011 | $ 21,919 |
Less Than 12 Months, Unrealized Losses | (234) | (396) |
12 Months or Greater, Fair Value | 13,805 | 6,186 |
12 Months or Greater, Unrealized Losses | (191) | (224) |
Fair Value | 52,816 | 28,105 |
Unrealized Losses | $ (425) | $ (620) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contractual maturities, amortized cost | ||
Due in One Year or Less | $ 17,260 | |
Due After One Year Through Five Years | 47,485 | |
Due After Five Years Through 10 Years | 186,291 | |
Due After 10 Years | 42,574 | |
Subtotal | 293,610 | |
Totals | 648,616 | $ 596,497 |
Contractual maturities, fair value | ||
Due in One Year or Less | 17,183 | |
Due After One Year Through Five Years | 45,922 | |
Due After Five Years Through 10 Years | 165,766 | |
Due After 10 Years | 34,258 | |
Subtotal | 263,129 | |
Totals | 604,104 | 548,613 |
Mortgage-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 249,455 | |
Totals | 249,455 | 252,919 |
Contractual maturities, fair value | ||
Contractual securities | 235,315 | |
Totals | 235,315 | 237,784 |
SBA Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 18,497 | |
Totals | 18,497 | 20,957 |
Contractual maturities, fair value | ||
Contractual securities | 18,674 | |
Totals | 18,674 | 20,877 |
Asset-Backed Securities | ||
Contractual maturities, amortized cost | ||
Contractual securities | 87,054 | |
Totals | 87,054 | 46,623 |
Contractual maturities, fair value | ||
Contractual securities | 86,986 | |
Totals | $ 86,986 | $ 46,191 |
Securities - Available for Sale
Securities - Available for Sale Securities Gross Realized Gain Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of the proceeds from sales of securities available for sale, as well as gross gains and losses | |||
Proceeds From Sales of Securities | $ 28,756 | $ 64,439 | $ 11,877 |
Gross Gains on Sales | 247 | 612 | 1,200 |
Gross Losses on Sales | $ (280) | $ (530) | $ (450) |
Loans - Components of loans (De
Loans - Components of loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Components of loans | |||||
Total Loans, Gross | $ 3,724,282 | $ 3,569,446 | |||
Allowance for Credit Losses | (50,494) | $ (48,646) | (47,996) | $ (40,020) | $ (34,841) |
Net Deferred Loan Fees | (6,573) | (9,293) | |||
Total Loans, Net | 3,667,215 | 3,512,157 | |||
Commercial | |||||
Components of loans | |||||
Total Loans, Gross | 464,061 | 436,393 | |||
Allowance for Credit Losses | (5,398) | (5,343) | (6,501) | (6,269) | (5,773) |
Construction and Land Development | |||||
Components of loans | |||||
Total Loans, Gross | 232,804 | 295,554 | |||
Allowance for Credit Losses | (2,156) | (2,841) | (3,911) | (3,139) | (1,679) |
1-4 Family Construction | |||||
Components of loans | |||||
Total Loans, Gross | 65,087 | 70,242 | |||
Allowance for Credit Losses | (558) | (610) | (845) | (618) | (812) |
Real Estate Mortgage | |||||
Components of loans | |||||
Total Loans, Gross | 2,954,026 | 2,759,125 | |||
1-4 Family Mortgage | |||||
Components of loans | |||||
Total Loans, Gross | 402,396 | 355,474 | |||
Allowance for Credit Losses | (2,651) | (2,547) | (4,325) | (3,757) | (3,972) |
Multifamily | |||||
Components of loans | |||||
Total Loans, Gross | 1,388,541 | 1,306,738 | |||
Allowance for Credit Losses | (22,217) | (20,777) | (17,459) | (12,610) | (9,517) |
CRE Owner Occupied | |||||
Components of loans | |||||
Total Loans, Gross | 175,783 | 149,905 | |||
Allowance for Credit Losses | (1,184) | (1,022) | (1,965) | (1,495) | (1,162) |
CRE Non-owner Occupied | |||||
Components of loans | |||||
Total Loans, Gross | 987,306 | 947,008 | |||
Allowance for Credit Losses | (16,225) | (15,445) | (12,576) | (11,335) | (10,991) |
Consumer and other | |||||
Components of loans | |||||
Total Loans, Gross | 8,304 | 8,132 | |||
Allowance for Credit Losses | $ (105) | $ (61) | $ (151) | $ (147) | $ (203) |
Loans - Aging in past due loans
Loans - Aging in past due loans and nonaccrual status, with and without an ACL, by loan segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual without ACL | $ 919 | $ 639 |
Totals | 3,724,282 | 3,569,446 |
Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 3,708,253 | 3,568,621 |
30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 15,110 | 186 |
Commercial | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual without ACL | 95 | |
Totals | 464,061 | 436,393 |
Commercial | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 463,966 | 436,323 |
Commercial | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 70 | |
Construction and Land Development | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual without ACL | 80 | 106 |
Totals | 232,804 | 295,554 |
Construction and Land Development | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 232,724 | 295,448 |
1-4 Family Construction | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual without ACL | 249 | |
Totals | 65,087 | 70,242 |
1-4 Family Construction | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 64,838 | 70,242 |
HELOC and 1-4 Family Junior Mortgage | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 36,875 | |
HELOC and 1-4 Family Junior Mortgage | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 36,875 | |
1st REM - 1-4 Family | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 50,945 | |
1st REM - 1-4 Family | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 50,945 | |
LOCs and 2nd REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 27,985 | |
LOCs and 2nd REM - Rentals | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 27,985 | |
1st REM - Rentals | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 239,669 | |
1st REM - Rentals | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 239,553 | |
1st REM - Rentals | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 116 | |
1-4 Family Mortgage | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 402,396 | 355,474 |
1-4 Family Mortgage | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 402,396 | |
Multifamily | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 1,388,541 | 1,306,738 |
Multifamily | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 1,373,431 | 1,306,738 |
Multifamily | 30-89 Days Past Due | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 15,110 | |
CRE Owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual without ACL | 494 | 533 |
Totals | 175,783 | 149,905 |
CRE Owner Occupied | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 175,289 | 149,372 |
CRE Non-owner Occupied | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 987,306 | 947,008 |
CRE Non-owner Occupied | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | 987,306 | 947,008 |
Consumer and other | ||
Aging of the recorded investment in past due loans by loan segment | ||
Nonaccrual without ACL | 1 | |
Totals | 8,304 | 8,132 |
Consumer and other | Current | ||
Aging of the recorded investment in past due loans by loan segment | ||
Totals | $ 8,303 | $ 8,132 |
Loans - Risk category of loans
Loans - Risk category of loans by loan segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loan Balances | ||
2023 | $ 722,488 | |
2022 | 1,180,208 | |
2021 | 897,987 | |
2020 | 368,983 | |
2019 | 162,578 | |
Prior | 130,218 | |
Revolving | 261,820 | |
Totals | 3,724,282 | $ 3,569,446 |
Write-offs | ||
2023 | 114 | |
2022 | 96 | |
2021 | 12 | |
Revolving | 2 | |
Total | 224 | |
Pass | ||
Loan Balances | ||
Totals | 3,509,145 | |
Watch | ||
Loan Balances | ||
Totals | 32,252 | |
Substandard | ||
Loan Balances | ||
Totals | 28,049 | |
Commercial | ||
Loan Balances | ||
2023 | 95,002 | |
2022 | 132,891 | |
2021 | 37,090 | |
2020 | 19,297 | |
2019 | 18,594 | |
Prior | 4,557 | |
Revolving | 156,630 | |
Totals | 464,061 | 436,393 |
Write-offs | ||
2023 | 72 | |
2022 | 96 | |
2021 | 12 | |
Total | 180 | |
Commercial | Pass | ||
Loan Balances | ||
2023 | 93,299 | |
2022 | 121,274 | |
2021 | 37,056 | |
2020 | 19,297 | |
2019 | 18,594 | |
Prior | 4,507 | |
Revolving | 149,836 | |
Totals | 443,863 | 407,241 |
Commercial | Watch | ||
Loan Balances | ||
2023 | 1,700 | |
2022 | 318 | |
2021 | 34 | |
Revolving | 2,003 | |
Totals | 4,055 | 9,477 |
Commercial | Substandard | ||
Loan Balances | ||
2023 | 3 | |
2022 | 11,299 | |
Prior | 50 | |
Revolving | 4,791 | |
Totals | 16,143 | 19,675 |
Construction and Land Development | ||
Loan Balances | ||
2023 | 87,402 | |
2022 | 99,213 | |
2021 | 34,122 | |
2020 | 46 | |
Revolving | 12,021 | |
Totals | 232,804 | 295,554 |
Construction and Land Development | Pass | ||
Loan Balances | ||
2023 | 87,402 | |
2022 | 99,133 | |
2021 | 34,122 | |
2020 | 46 | |
Revolving | 12,021 | |
Totals | 232,724 | 294,736 |
Construction and Land Development | Watch | ||
Loan Balances | ||
Totals | 712 | |
Construction and Land Development | Substandard | ||
Loan Balances | ||
2022 | 80 | |
Totals | 80 | 106 |
1-4 Family Construction | ||
Loan Balances | ||
2023 | 35,421 | |
2022 | 16,156 | |
2021 | 941 | |
2020 | 355 | |
Revolving | 12,214 | |
Totals | 65,087 | 70,242 |
1-4 Family Construction | Pass | ||
Loan Balances | ||
2023 | 35,172 | |
2022 | 16,156 | |
2021 | 941 | |
2020 | 355 | |
Revolving | 12,214 | |
Totals | 64,838 | 70,242 |
1-4 Family Construction | Substandard | ||
Loan Balances | ||
2023 | 249 | |
Totals | 249 | |
Real Estate Mortgage | ||
Loan Balances | ||
2023 | 501,755 | |
2022 | 931,692 | |
2021 | 825,825 | |
2020 | 347,825 | |
2019 | 143,978 | |
Prior | 125,661 | |
Revolving | 77,290 | |
Totals | 2,954,026 | 2,759,125 |
1-4 Family Mortgage | ||
Loan Balances | ||
2023 | 74,602 | |
2022 | 106,085 | |
2021 | 83,525 | |
2020 | 52,813 | |
2019 | 18,789 | |
Prior | 4,062 | |
Revolving | 62,520 | |
Totals | 402,396 | 355,474 |
1-4 Family Mortgage | Pass | ||
Loan Balances | ||
2023 | 74,602 | |
2022 | 106,085 | |
2021 | 83,525 | |
2020 | 52,813 | |
2019 | 18,789 | |
Prior | 3,403 | |
Revolving | 62,490 | |
Totals | 401,707 | 354,401 |
1-4 Family Mortgage | Watch | ||
Loan Balances | ||
Totals | 681 | |
1-4 Family Mortgage | Substandard | ||
Loan Balances | ||
Prior | 659 | |
Revolving | 30 | |
Totals | 689 | 392 |
HELOC and 1-4 Family Junior Mortgage | ||
Loan Balances | ||
Totals | 36,875 | |
1st REM - 1-4 Family | ||
Loan Balances | ||
Totals | 50,945 | |
LOCs and 2nd REM - Rentals | ||
Loan Balances | ||
Totals | 27,985 | |
1st REM - Rentals | ||
Loan Balances | ||
Totals | 239,669 | |
Multifamily | ||
Loan Balances | ||
2023 | 194,994 | |
2022 | 456,179 | |
2021 | 444,162 | |
2020 | 196,784 | |
2019 | 41,998 | |
Prior | 45,847 | |
Revolving | 8,577 | |
Totals | 1,388,541 | 1,306,738 |
Multifamily | Pass | ||
Loan Balances | ||
2023 | 192,078 | |
2022 | 456,179 | |
2021 | 444,162 | |
2020 | 196,784 | |
2019 | 41,998 | |
Prior | 45,847 | |
Revolving | 8,577 | |
Totals | 1,385,625 | 1,303,468 |
Multifamily | Watch | ||
Loan Balances | ||
2023 | 2,916 | |
Totals | 2,916 | 3,270 |
CRE Owner Occupied | ||
Loan Balances | ||
2023 | 36,449 | |
2022 | 61,724 | |
2021 | 41,242 | |
2020 | 20,610 | |
2019 | 4,903 | |
Prior | 9,183 | |
Revolving | 1,672 | |
Totals | 175,783 | 149,905 |
CRE Owner Occupied | Pass | ||
Loan Balances | ||
2023 | 36,255 | |
2022 | 61,724 | |
2021 | 40,748 | |
2020 | 20,610 | |
2019 | 4,903 | |
Prior | 8,312 | |
Revolving | 1,672 | |
Totals | 174,224 | 148,268 |
CRE Owner Occupied | Substandard | ||
Loan Balances | ||
2023 | 194 | |
2021 | 494 | |
Prior | 871 | |
Totals | 1,559 | 1,637 |
CRE Non-owner Occupied | ||
Loan Balances | ||
2023 | 195,710 | |
2022 | 307,704 | |
2021 | 256,896 | |
2020 | 77,618 | |
2019 | 78,288 | |
Prior | 66,569 | |
Revolving | 4,521 | |
Totals | 987,306 | 947,008 |
CRE Non-owner Occupied | Pass | ||
Loan Balances | ||
2023 | 164,226 | |
2022 | 305,749 | |
2021 | 253,683 | |
2020 | 77,618 | |
2019 | 78,288 | |
Prior | 66,569 | |
Revolving | 4,521 | |
Totals | 950,654 | 922,657 |
CRE Non-owner Occupied | Watch | ||
Loan Balances | ||
2023 | 16,301 | |
2021 | 3,213 | |
Totals | 19,514 | 18,112 |
CRE Non-owner Occupied | Substandard | ||
Loan Balances | ||
2023 | 15,183 | |
2022 | 1,955 | |
Totals | 17,138 | 6,239 |
Consumer and other | ||
Loan Balances | ||
2023 | 2,908 | |
2022 | 256 | |
2021 | 9 | |
2020 | 1,460 | |
2019 | 6 | |
Revolving | 3,665 | |
Totals | 8,304 | 8,132 |
Write-offs | ||
2023 | 42 | |
Revolving | 2 | |
Total | 44 | |
Consumer and other | Pass | ||
Loan Balances | ||
2023 | 2,908 | |
2022 | 256 | |
2021 | 9 | |
2020 | 1,460 | |
2019 | 6 | |
Revolving | 3,665 | |
Totals | $ 8,304 | $ 8,132 |
Loans - Allowance for loan loss
Loans - Allowance for loan losses by segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2023 | |
Allowance for Loan Losses: | ||||
Beginning Balance | $ 47,996 | $ 40,020 | $ 34,841 | |
Provision for Credit Losses on Loans | 2,050 | 7,700 | 5,150 | |
Loans Charged-off | (224) | (37) | (74) | |
Recoveries of Loans | 22 | 313 | 103 | |
Total Ending Allowance Balance | 50,494 | 47,996 | 40,020 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 103 | 71 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 50,391 | 47,925 | ||
Loans and Leases Receivable, Allowance, Total | 50,494 | 47,996 | 40,020 | $ 48,646 |
Loans, Individually Evaluated for Impairment | 35,858 | 28,049 | ||
Loans, Collectively Evaluated for Impairment | 3,688,424 | 3,541,397 | ||
Totals | 3,724,282 | 3,569,446 | ||
Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 650 | |||
Total Ending Allowance Balance | 650 | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | 650 | |||
Commercial | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 6,501 | 6,269 | 5,773 | |
Provision for Credit Losses on Loans | 225 | 235 | 488 | |
Loans Charged-off | (180) | (13) | (28) | |
Recoveries of Loans | 10 | 10 | 36 | |
Total Ending Allowance Balance | 5,398 | 6,501 | 6,269 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 8 | 71 | ||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 5,390 | 6,430 | ||
Loans and Leases Receivable, Allowance, Total | 5,398 | 6,501 | 6,269 | 5,343 |
Loans, Individually Evaluated for Impairment | 16,143 | 19,675 | ||
Loans, Collectively Evaluated for Impairment | 447,918 | 416,718 | ||
Totals | 464,061 | 436,393 | ||
Commercial | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | (1,158) | |||
Total Ending Allowance Balance | (1,158) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | (1,158) | |||
Construction and Land Development | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 3,911 | 3,139 | 1,679 | |
Provision for Credit Losses on Loans | (685) | 772 | 1,460 | |
Total Ending Allowance Balance | 2,156 | 3,911 | 3,139 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 2,156 | 3,911 | ||
Loans and Leases Receivable, Allowance, Total | 2,156 | 3,911 | 3,139 | 2,841 |
Loans, Individually Evaluated for Impairment | 80 | 106 | ||
Loans, Collectively Evaluated for Impairment | 232,724 | 295,448 | ||
Totals | 232,804 | 295,554 | ||
Construction and Land Development | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | (1,070) | |||
Total Ending Allowance Balance | (1,070) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | (1,070) | |||
1-4 Family Construction | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 845 | 618 | 812 | |
Provision for Credit Losses on Loans | (52) | 227 | (194) | |
Total Ending Allowance Balance | 558 | 845 | 618 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 558 | 845 | ||
Loans and Leases Receivable, Allowance, Total | 558 | 845 | 618 | 610 |
Loans, Individually Evaluated for Impairment | 249 | |||
Loans, Collectively Evaluated for Impairment | 64,838 | 70,242 | ||
Totals | 65,087 | 70,242 | ||
1-4 Family Construction | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | (235) | |||
Total Ending Allowance Balance | (235) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | (235) | |||
1-4 Family Mortgage | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 4,325 | 3,757 | 3,972 | |
Provision for Credit Losses on Loans | 99 | 280 | (236) | |
Loans Charged-off | (5) | |||
Recoveries of Loans | 5 | 288 | 26 | |
Total Ending Allowance Balance | 2,651 | 4,325 | 3,757 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 2,651 | 4,325 | ||
Loans and Leases Receivable, Allowance, Total | 2,651 | 4,325 | 3,757 | 2,547 |
Loans, Individually Evaluated for Impairment | 689 | 392 | ||
Loans, Collectively Evaluated for Impairment | 401,707 | 355,082 | ||
Totals | 402,396 | 355,474 | ||
1-4 Family Mortgage | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | (1,778) | |||
Total Ending Allowance Balance | (1,778) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | (1,778) | |||
Multifamily | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 17,459 | 12,610 | 9,517 | |
Provision for Credit Losses on Loans | 1,440 | 4,849 | 3,093 | |
Total Ending Allowance Balance | 22,217 | 17,459 | 12,610 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 22,217 | 17,459 | ||
Loans and Leases Receivable, Allowance, Total | 22,217 | 17,459 | 12,610 | 20,777 |
Loans, Collectively Evaluated for Impairment | 1,388,541 | 1,306,738 | ||
Totals | 1,388,541 | 1,306,738 | ||
Multifamily | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 3,318 | |||
Total Ending Allowance Balance | 3,318 | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | 3,318 | |||
CRE Owner Occupied | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 1,965 | 1,495 | 1,162 | |
Provision for Credit Losses on Loans | 162 | 470 | 301 | |
Recoveries of Loans | 32 | |||
Total Ending Allowance Balance | 1,184 | 1,965 | 1,495 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 1,184 | 1,965 | ||
Loans and Leases Receivable, Allowance, Total | 1,184 | 1,965 | 1,495 | 1,022 |
Loans, Individually Evaluated for Impairment | 1,559 | 1,637 | ||
Loans, Collectively Evaluated for Impairment | 174,224 | 148,268 | ||
Totals | 175,783 | 149,905 | ||
CRE Owner Occupied | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | (943) | |||
Total Ending Allowance Balance | (943) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | (943) | |||
CRE Non-owner Occupied | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 12,576 | 11,335 | 10,991 | |
Provision for Credit Losses on Loans | 780 | 1,241 | 344 | |
Total Ending Allowance Balance | 16,225 | 12,576 | 11,335 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Individually Evaluated for Impairment | 95 | |||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 16,130 | 12,576 | ||
Loans and Leases Receivable, Allowance, Total | 16,225 | 12,576 | 11,335 | 15,445 |
Loans, Individually Evaluated for Impairment | 17,138 | 6,239 | ||
Loans, Collectively Evaluated for Impairment | 970,168 | 940,769 | ||
Totals | 987,306 | 947,008 | ||
CRE Non-owner Occupied | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 2,869 | |||
Total Ending Allowance Balance | 2,869 | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | 2,869 | |||
Consumer and other | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 151 | 147 | 203 | |
Provision for Credit Losses on Loans | 81 | 13 | (24) | |
Loans Charged-off | (44) | (24) | (41) | |
Recoveries of Loans | 7 | 15 | 9 | |
Total Ending Allowance Balance | 105 | 151 | 147 | |
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 105 | 151 | ||
Loans and Leases Receivable, Allowance, Total | 105 | 151 | 147 | $ 61 |
Loans, Collectively Evaluated for Impairment | 8,304 | 8,132 | ||
Totals | 8,304 | 8,132 | ||
Consumer and other | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | (90) | |||
Total Ending Allowance Balance | (90) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | (90) | |||
Unallocated | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | 263 | 650 | 732 | |
Provision for Credit Losses on Loans | (387) | (82) | ||
Total Ending Allowance Balance | 263 | 650 | ||
Allowance for loan losses and the recorded investment | ||||
Allowance for Loan Losses and Loans, Collectively Evaluated for Impairment | 263 | |||
Loans and Leases Receivable, Allowance, Total | 263 | $ 650 | ||
Unallocated | Cumulative Effect of Change | ||||
Allowance for Loan Losses: | ||||
Beginning Balance | $ (263) | |||
Total Ending Allowance Balance | (263) | |||
Allowance for loan losses and the recorded investment | ||||
Loans and Leases Receivable, Allowance, Total | $ (263) |
Loans - Amortized cost basis of
Loans - Amortized cost basis of collateral dependent loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | $ 35,858 |
ACL Allocation | 103 |
Real Estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 19,715 |
Business Assets | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 5,782 |
Other | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 10,361 |
Commercial | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 16,143 |
ACL Allocation | 8 |
Commercial | Business Assets | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 5,782 |
Commercial | Other | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 10,361 |
Construction and Land Development | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 80 |
Construction and Land Development | Real Estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 80 |
1-4 Family Construction | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 249 |
1-4 Family Construction | Real Estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 249 |
1-4 Family Mortgage | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 689 |
1-4 Family Mortgage | Real Estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 689 |
CRE Owner Occupied | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 1,559 |
CRE Owner Occupied | Real Estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 1,559 |
CRE Non-owner Occupied | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | 17,138 |
ACL Allocation | 95 |
CRE Non-owner Occupied | Real Estate | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Total | $ 17,138 |
Loans - Additional information
Loans - Additional information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Loans | ||
Accrued interest receivable on loans | $ 11,800 | |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Interest Receivable | |
Financing Receivable, Modifications, Number of Contracts | loan | 2 | |
Number of loans modified | loan | 1 | |
Aggregate outstanding balances of troubled debt restructurings | $ 9,600 | $ 188 |
Forgiveness of principal | $ 0 |
Loans - Impaired loans by loan
Loans - Impaired loans by loan segment (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Impaired loans by segment | |
Loans With No Related Allowance for Loan Losses, Recorded Investment | $ 27,882 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 28,578 |
Loans With An Allowance for Loan Losses, Recorded Investment | 167 |
Loans With An Allowance for Loan Losses, Principal Balance | 167 |
Total Recorded Investment | 28,049 |
Total Principal Balance | 28,745 |
Related Allowance | 71 |
Commercial | |
Impaired loans by segment | |
Loans With No Related Allowance for Loan Losses, Recorded Investment | 19,508 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 19,508 |
Loans With An Allowance for Loan Losses, Recorded Investment | 167 |
Loans With An Allowance for Loan Losses, Principal Balance | 167 |
Related Allowance | 71 |
Construction and Land Development | |
Impaired loans by segment | |
Loans With No Related Allowance for Loan Losses, Recorded Investment | 106 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 713 |
1-4 Family Mortgage | |
Impaired loans by segment | |
Loans With No Related Allowance for Loan Losses, Recorded Investment | 392 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 392 |
CRE Owner Occupied | |
Impaired loans by segment | |
Loans With No Related Allowance for Loan Losses, Recorded Investment | 1,637 |
Loans With No Related Allowance for Loan Losses, Principal Balance | 1,726 |
CRE Non-owner Occupied | |
Impaired loans by segment | |
Loans With No Related Allowance for Loan Losses, Recorded Investment | 6,239 |
Loans With No Related Allowance for Loan Losses, Principal Balance | $ 6,239 |
Loans - Average balances and in
Loans - Average balances and interest income recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impaired loans by segment | ||
Loans With No Related Allowance for Loan Losses, Average Investment | $ 29,940 | $ 13,268 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 1,210 | 660 |
Loans with An Allowance for Loan Losses, Average Investment | 180 | 13,761 |
Loans With An Allowance for Loan Losses, Interest Recognized | 5 | 755 |
Total Average Investment | 30,120 | 27,029 |
Total Interest Recognized | 1,215 | 1,415 |
Commercial | ||
Impaired loans by segment | ||
Loans With No Related Allowance for Loan Losses, Average Investment | 21,276 | 5,008 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 782 | 268 |
Loans with An Allowance for Loan Losses, Average Investment | 180 | 13,761 |
Loans With An Allowance for Loan Losses, Interest Recognized | 5 | 755 |
Construction and Land Development | ||
Impaired loans by segment | ||
Loans With No Related Allowance for Loan Losses, Average Investment | 117 | 141 |
HELOC and 1-4 Family Junior Mortgage | ||
Impaired loans by segment | ||
Loans With No Related Allowance for Loan Losses, Average Investment | 402 | 1,401 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 21 | 71 |
CRE Owner Occupied | ||
Impaired loans by segment | ||
Loans With No Related Allowance for Loan Losses, Average Investment | 1,755 | 2,471 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | 65 | 106 |
CRE Non-owner Occupied | ||
Impaired loans by segment | ||
Loans With No Related Allowance for Loan Losses, Average Investment | 6,390 | 4,247 |
Loans With No Related Allowance for Loan Losses, Interest Recognized | $ 342 | $ 215 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premises and Equipment | |||
Subtotal | $ 57,880 | $ 55,797 | |
Accumulated Depreciation | (8,994) | (7,352) | |
Totals | 48,886 | 48,445 | |
Depreciation expense | 2,509 | 2,565 | $ 2,369 |
Land | |||
Premises and Equipment | |||
Subtotal | 8,119 | 5,174 | |
Building | |||
Premises and Equipment | |||
Subtotal | $ 41,266 | 41,265 | |
Building | Minimum | |||
Premises and Equipment | |||
Estimated Useful Life | 15 years | ||
Building | Maximum | |||
Premises and Equipment | |||
Estimated Useful Life | 39 years | ||
Leasehold Improvements | |||
Premises and Equipment | |||
Subtotal | $ 1,951 | 2,380 | |
Leasehold Improvements | Minimum | |||
Premises and Equipment | |||
Estimated Useful Life | 3 years | ||
Leasehold Improvements | Maximum | |||
Premises and Equipment | |||
Estimated Useful Life | 10 years | ||
Furniture and Equipment | |||
Premises and Equipment | |||
Subtotal | $ 6,544 | $ 6,978 | |
Furniture and Equipment | Minimum | |||
Premises and Equipment | |||
Estimated Useful Life | 2 years | ||
Furniture and Equipment | Maximum | |||
Premises and Equipment | |||
Estimated Useful Life | 5 years |
Intangible Assets - (Details)
Intangible Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets | |||
Subtotal | $ 1,538 | $ 1,538 | |
Accumulated Amortization | (1,350) | (1,250) | |
Total | 188 | 288 | |
Amortization of Intangible Assets | 100 | 191 | $ 191 |
Core Deposits | |||
Intangible Assets | |||
Subtotal | 1,093 | 1,093 | |
Favorable Lease | |||
Intangible Assets | |||
Subtotal | $ 445 | $ 445 |
Intangible Assets - Estimated f
Intangible Assets - Estimated future amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets | ||
2024 | $ 34 | |
2025 | 34 | |
2026 | 34 | |
2027 | 34 | |
2028 | 34 | |
Thereafter | 18 | |
Total | $ 188 | $ 288 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 item | Dec. 31, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Rent expense prior to adoption of ASU 2016-02 | $ | $ 52 | |
Greenwood Location | ||
Lessee, Lease, Description [Line Items] | ||
Number of options to extend the lease Term | item | 1 | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Lease Term | 5 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease Cost | ||
Operating Lease Cost | $ 557 | $ 538 |
Variable Lease Cost | 262 | 253 |
Total Lease Cost | $ 819 | $ 791 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Information on Operating Leases | ||
Operating Lease Right-of-Use Assets | $ 1,938 | $ 2,472 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating Lease Liabilities | $ 1,972 | $ 2,496 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Weighted Average Remaining Lease Term (in Years) | 4 years 11 months 12 days | 6 years 1 month 13 days |
Weighted Average Discount Rate | 1.68% | 1.46% |
Operating cash flows from operating leases | $ 543 | $ 513 |
Leases - Future Expected Operat
Leases - Future Expected Operating Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Future expected operating lease payments | ||
2024 | $ 587 | |
2025 | 540 | |
2026 | 354 | |
2027 | 251 | |
2028 | 254 | |
Thereafter | 53 | |
Total Undiscounted Lease Payments | 2,039 | |
Discount for Present Value of Expected Cash Flows | (67) | |
Total Lease Liability | 1,972 | $ 2,496 |
Greenwood Location | ||
Future expected operating lease payments | ||
2024 | 178 | |
2025 | 181 | |
2026 | 108 | |
Total Undiscounted Lease Payments | $ 467 |
Leases - Rental Income (Details
Leases - Rental Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Future Minimum Rental Income | |||
2024 | $ 514 | ||
2025 | 519 | ||
2026 | 301 | ||
2027 | 263 | ||
2028 | 231 | ||
Thereafter | 486 | ||
Total | 2,314 | ||
Rental income | $ 894 | $ 907 | $ 634 |
Deposits - Composition of depos
Deposits - Composition of deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits, by Type [Abstract] | ||
Transaction Deposits | $ 1,449,765 | $ 1,336,264 |
Savings and Money Market Deposits | 935,091 | 1,031,873 |
Time Deposits | 300,651 | 272,253 |
Brokered Deposits | 1,024,441 | 776,153 |
Total Deposits | 3,709,948 | 3,416,543 |
Brokered money market accounts | $ 174,000 | $ 184,300 |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Scheduled Maturities of Time Deposits | ||
Less than 1 Year | $ 337,988 | |
1 to 2 Years | 277,949 | |
2 to 3 Years | 288,862 | |
3 to 4 Years | 76,411 | |
4 to 5 Years | 124,435 | |
Greater than 5 years | 45,465 | |
Totals | 1,151,110 | |
Aggregate time deposits greater | $ 138,400 | $ 92,300 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Non-hedge Derivatives (Details) - Interest Rate Swap - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | $ 63,814 | $ 65,315 |
Notional Amount, Liability | 63,814 | 65,315 |
Notional Amount | 127,628 | 130,630 |
Estimated Fair Value, Asset | 6,981 | 8,240 |
Estimated Fair Value, Liability | $ (6,981) | $ (8,240) |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cash Flow Derivatives (Details) - Cash flow hedge - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flow Hedging Derivatives | ||
Amount expected to be reclassified from AOCI into earnings | $ 7,500 | |
Interest Rate Swap | ||
Cash Flow Hedging Derivatives | ||
Notional Amount | $ 183,000 | $ 163,000 |
Weighted Average Pay Rate | 2% | 1.90% |
Weighted Average Receive Rate | 5.48% | 3.47% |
Weighted average maturity | 4 years 14 days | 5 years 1 month 24 days |
Net Unrealized Gain | $ 5,271 | $ 9,175 |
Interest Rate Cap | ||
Cash Flow Hedging Derivatives | ||
Notional Amount | 125,000 | 125,000 |
Unamortized Premium Paid | $ 5,081 | $ 5,872 |
Weighted Average Strike Rate | 0.96% | 0.96% |
Derivative Weighted Average Maturity | 6 years 4 months 2 days | 7 years 4 months 6 days |
Amortization of interest rate cap premiums | $ 791 | $ 772 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Cash Flow Hedging Reclassification (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Cash collateral posted | $ 0 | $ 0 |
Collateral received | 31,783 | 36,353 |
Cash flow hedge | Interest Rate Swap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 135,000 | 125,000 |
Notional Amount, Liability | 48,000 | 38,000 |
Estimated Fair Value, Asset | 6,891 | 10,477 |
Estimated Fair Value, Liability | (1,620) | (1,302) |
Cash flow hedge | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Asset | 125,000 | 125,000 |
Estimated Fair Value, Asset | $ 18,717 | $ 19,406 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivative instruments eligible for offset (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Asset Derivatives | ||
Gross Amounts of Recognized Assets | $ 32,589 | $ 38,123 |
Net Amounts of Assets Presented in the Balance Sheet | 32,589 | 38,123 |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral Received (Paid) | 31,783 | 36,353 |
Net Assets | 806 | 1,770 |
Liability Derivatives | ||
Gross Amounts of Recognized Liabilities | (8,601) | (9,542) |
Net Amounts of Liabilities Presented in the Balance Sheet | (8,601) | (9,542) |
Gross Amounts Not Offset in the Balance Sheet, Cash Collateral Received (Paid) | 0 | 0 |
Net Liabilities | $ (8,601) | $ (9,542) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from AOCI into earnings | $ 6,069 | $ 90 | $ (770) |
Amounts reclassified from AOCI into earnings related to hedge ineffectiveness | 0 | 0 | 0 |
Amount expected to be reclassified from AOCI into earnings related to hedge ineffectiveness | 0 | ||
Interest Rate Swap | Interest expense | Cash flow hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from AOCI into earnings | 5,783 | 679 | (1,117) |
Interest Rate Cap | Interest expense | Cash flow hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from AOCI into earnings | $ 319 | $ (671) | $ (403) |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances and Other Borrowings (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 01, 2022 USD ($) | Aug. 31, 2022 USD ($) | Dec. 31, 2021 | |
Federal Home Loan Bank Advances and Other Borrowings | |||||
Federal Funds Purchased | $ 287,000,000 | ||||
Loan and Security Agreement | Revolving Line of Credit | |||||
Federal Home Loan Bank Advances and Other Borrowings | |||||
Bank stock (as a percent) | 100% | ||||
Total Debt Outstanding | $ 13,750,000 | 13,750 | |||
Interest rate (as a percent) | 8.50% | ||||
Borrowing capacity | $ 40,000,000 | $ 25,000,000 | |||
Variable spread on debt (as a percent) | 3.85% | ||||
Federal Home Loan Bank Advances | |||||
Federal Home Loan Bank Advances and Other Borrowings | |||||
Principal balances | $ 1,450,000,000 | 1,200,000,000 | |||
Remaining available borrowings | 498,700,000 | 390,900,000 | |||
Federal Reserve Discount Window | |||||
Federal Home Loan Bank Advances and Other Borrowings | |||||
Principal balances | 1,080,000,000 | 225,300,000 | |||
Investment securities collateral pledged with fair value | 170,700,000 | ||||
Outstanding borrowings | 0 | 0 | |||
Remaining available borrowings | $ 979,400,000 | 157,800,000 | |||
Federal Funds Purchased | |||||
Federal Home Loan Bank Advances and Other Borrowings | |||||
Number of business days | 1 | ||||
Federal Funds Purchased | $ 0 | $ 287,000,000 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances and Other Borrowings - Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Weighted Average Rate | ||
Less than 1 Year | 5.31% | 4.30% |
1 to 2 Years | 4.31% | 1.05% |
2 to 3 Years | 3.45% | 1.22% |
3 to 4 Years | 3.94% | 0.78% |
4 to 5 Years | 4.01% | |
Total Outstanding | ||
Less than 1 Year | $ 233,000 | $ 83,000 |
1 to 2 Years | 25,000 | 5,000 |
2 to 3 Years | 21,500 | 5,000 |
3 to 4 Years | 17,500 | 4,000 |
4 to 5 Years | 22,500 | |
Advances from Federal Home Loan Banks, Total | $ 319,500 | $ 97,000 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subordinated Debentures | |||
Total amortization expense | $ 383 | $ 416 | $ 441 |
Subordinated Note Purchase Agreement | |||
Subordinated Debentures | |||
Subordinated Debentures | 80,000 | 80,000 | |
Debt Issuance Costs | (712) | (1,095) | |
Subordinated Debentures, Net of Issuance Costs | 79,288 | 78,905 | |
Subordinated Note Purchase Agreement | 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 | |||
Subordinated Debentures | |||
Subordinated Debentures | $ 50,000 | 50,000 | |
Interest rate (as a percent) | 5.25% | ||
Subordinated Note Purchase Agreement | 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 | SOFR | |||
Subordinated Debentures | |||
Variable spread on debt (as a percent) | 5.13% | ||
Subordinated Note Purchase Agreement | 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 | |||
Subordinated Debentures | |||
Subordinated Debentures | $ 30,000 | $ 30,000 | |
Interest rate (as a percent) | 3.25% | ||
Subordinated Note Purchase Agreement | 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031 | SOFR | |||
Subordinated Debentures | |||
Variable spread on debt (as a percent) | 2.52% |
Related Party Transactions - Lo
Related Party Transactions - Loans and Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related-Party Transactions | ||
Beginning Balance | $ 27,676 | $ 49,964 |
New Loans and Advances | 8,587 | 16,006 |
Repayments | (4,423) | (38,294) |
Totals | 31,840 | 27,676 |
Deposits | 3,709,948 | 3,416,543 |
Related Party | ||
Related-Party Transactions | ||
Deposits | $ 17,900 | $ 22,200 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Current Tax Provision | $ 11,886 | $ 19,719 | $ 20,408 |
Deferred Tax Expense (Benefit) | 676 | (1,401) | (4,522) |
Total Income Tax Provision | $ 12,562 | $ 18,318 | $ 15,886 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amount | |||
Amount of Statutory Rate | $ 11,030 | $ 15,059 | $ 12,930 |
State Income Taxes (Net of Federal Income Tax Benefit) | 3,511 | 5,349 | 4,647 |
Interest on Investment Securities and Loans Exempt From Federal Income Tax | (1,175) | (899) | (657) |
Tax Credits | (91) | (835) | (540) |
Other Differences | (713) | (356) | (494) |
Totals | $ 12,562 | $ 18,318 | $ 15,886 |
Percent | |||
Statutory Rate (as a percent) | 21% | 21% | 21% |
State Income Taxes (Net of Federal Income Tax Benefit) (as a percent) | 6.60% | 7.50% | 7.60% |
Interest on Investment Securities and Loans Exempt From Federal Income Tax (as a percent) | (2.30%) | (1.30%) | (1.10%) |
Tax Credits (as a percent) | (0.00%) | (1.20%) | (0.90%) |
Other Differences (as a percent) | (1.40%) | (0.50%) | (0.80%) |
Total (as a percent) | 23.90% | 25.50% | 25.80% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Net deferred tax asset | ||
Depreciation | $ (279) | $ (325) |
Allowance for Loan Losses | 14,261 | 13,639 |
Unrealized Loss (Gain) on Securities Available for Sale | 12,793 | 13,759 |
Unrealized (Gain) Loss on Cash Flow Hedges | (5,434) | (6,527) |
Prepaid Expenses | (221) | (886) |
Deferred Compensation | 510 | |
Deferred Loan Fees | 1,856 | 2,745 |
Reserve for Off-Balance Sheet Credit Exposures | 843 | |
Other | 108 | 2 |
Totals | $ 23,927 | $ 22,917 |
Tax Credit Investments - Invest
Tax Credit Investments - Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in qualified affordable housing projects and other tax credit investments | |||
Investment | $ 20,300 | $ 6,486 | |
Unfunded Commitment | 9,932 | 323 | |
Amortization Expense | 2,478 | 679 | $ 842 |
Tax Benefit Recognized | (2,605) | (937) | (955) |
Low Income Housing Tax Credit (LIHTC) | |||
Investments in qualified affordable housing projects and other tax credit investments | |||
Investment | 16,897 | 4,701 | |
Unfunded Commitment | 7,579 | ||
Amortization Expense | 1,810 | 271 | 280 |
Tax Benefit Recognized | (1,693) | (330) | (330) |
Federal Historic Tax Credit (FHTC) | |||
Investments in qualified affordable housing projects and other tax credit investments | |||
Investment | 3,403 | 1,785 | |
Unfunded Commitment | 2,353 | 323 | |
Amortization Expense | 668 | 408 | 562 |
Tax Benefit Recognized | $ (912) | $ (607) | $ (625) |
Commitments, Contingencies an_3
Commitments, Contingencies and Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments Outstanding | ||
Unfunded Commitments Under Lines of Credit | $ 546,632 | $ 848,734 |
Letters of Credit | 103,289 | 115,769 |
Totals | 649,921 | 964,503 |
Federal Home Loan Bank Advances | ||
Commitments Outstanding | ||
Outstanding letters of credit | $ 114,400 | $ 78,400 |
Commitments, Contingencies an_4
Commitments, Contingencies and Credit Risk - Allowance for credit losses for off-balance sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Commitments Outstanding | ||
Allowance for off-balance sheet credit exposure | $ 2,985 | $ 5,210 |
Off-balance sheet credit exposure | ||
Beginning Balance | 360 | |
Provision for (Recovery of) Off-Balance Sheet Credit Exposures | (2,225) | |
Total Ending Allowance Balance | 2,985 | |
Cumulative Effect of Change | ||
Commitments Outstanding | ||
Allowance for off-balance sheet credit exposure | ||
Off-balance sheet credit exposure | ||
Beginning Balance | $ 4,850 |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) item shares | Dec. 31, 2022 shares | |
Stock Options and Restricted Stock Awards | ||
Granted | 421,500 | 290,000 |
Number of banks in the index | item | 60 | |
Minimum | ||
Stock Options and Restricted Stock Awards | ||
Market capitalization | $ | $ 500 | |
Maximum | ||
Stock Options and Restricted Stock Awards | ||
Market capitalization | $ | $ 4,000 | |
2012 Plan | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 750,000 | |
Term of award | 10 years | |
2012 Plan | Minimum | ||
Stock Options and Restricted Stock Awards | ||
Vesting period | 4 years | |
2012 Plan | Maximum | ||
Stock Options and Restricted Stock Awards | ||
Vesting period | 5 years | |
2017 Plan | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 1,500,000 | |
Term of award | 10 years | |
Number of unissued shares of the Company's common stock authorized for option grants | 5,000 | 44,700 |
2017 Plan | Minimum | ||
Stock Options and Restricted Stock Awards | ||
Vesting period | 4 years | |
2017 Plan | Maximum | ||
Stock Options and Restricted Stock Awards | ||
Vesting period | 5 years | |
2019 EIP | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 1,000,000 | |
Term of award | 10 years | |
Vesting period | 4 years | |
Number of unissued shares of the Company's common stock authorized for option grants | 0 | 231,363 |
2023 EIP | ||
Stock Options and Restricted Stock Awards | ||
Number of shares authorized for grant options to its directors, officers, and employees | 1,500,000 | |
Term of award | 10 years | |
Vesting period | 4 years | |
Number of unissued shares of the Company's common stock authorized for option grants | 1,107,752 |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Black-Scholes Assumptions (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Black-Scholes Assumptions | |
Expected Life | 7 years |
Expected Volatility | 36.85% |
Risk-Free Interest Rate | 4.21% |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Option Plans | |||
Outstanding at Beginning of Year | 1,913,444 | 1,768,745 | |
Granted | 421,500 | 290,000 | |
Exercised | (305,950) | (133,301) | |
Forfeitures | (14,000) | (12,000) | |
Outstanding at Period End | 2,014,994 | 1,913,444 | 1,768,745 |
Options Exercisable at Period End | 1,348,744 | 1,492,069 | |
Weighted Average Exercise Price | |||
Outstanding at Beginning of Year | $ 9.35 | $ 7.67 | |
Granted | 10.84 | 17.50 | |
Exercised | 3.15 | 4.33 | |
Forfeitures | 14.63 | 14.77 | |
Outstanding at Period End | 10.57 | 9.35 | $ 7.67 |
Options Exercisable at Period End | $ 9.36 | $ 7.51 | |
Employee Stock Option [Member] | |||
Weighted Average Exercise Price | |||
Compensation expense for stock options | $ 851 | $ 1,100 | $ 922 |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Exercise Price (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Exercise Price | |
Options Outstanding, Number Outstanding | shares | 2,014,994 |
Options Outstanding, Weighted Average Exercise Price | $ 10.57 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years |
Options Exercisable, Number Outstanding | shares | 1,348,744 |
Options Exercisable, Weighted Average Exercise Price | $ 9.36 |
Total unrecognized compensation cost | $ | $ 2.8 |
Weighted-average period over which total unrecognized compensation cost is expected to be recognized (in years) | 3 years |
3.00 - 3.99 | |
Exercise Price | |
Exercise Price, lower range | $ 3 |
Exercise Price, upper range | $ 3.99 |
Options Outstanding, Number Outstanding | shares | 10,000 |
Options Outstanding, Weighted Average Exercise Price | $ 3.58 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year |
Options Exercisable, Number Outstanding | shares | 10,000 |
Options Exercisable, Weighted Average Exercise Price | $ 3.58 |
7.00 - 7.99 | |
Exercise Price | |
Exercise Price, lower range | 7 |
Exercise Price, upper range | $ 7.99 |
Options Outstanding, Number Outstanding | shares | 891,966 |
Options Outstanding, Weighted Average Exercise Price | $ 7.47 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 9 months 18 days |
Options Exercisable, Number Outstanding | shares | 891,966 |
Options Exercisable, Weighted Average Exercise Price | $ 7.47 |
8.00 - 8.99 | |
Exercise Price | |
Exercise Price, lower range | 8 |
Exercise Price, upper range | $ 8.99 |
Options Outstanding, Number Outstanding | shares | 17,500 |
Options Outstanding, Weighted Average Exercise Price | $ 8.76 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 3 months 18 days |
Options Exercisable, Number Outstanding | shares | 11,250 |
Options Exercisable, Weighted Average Exercise Price | $ 8.76 |
10.00 - 10.99 | |
Exercise Price | |
Exercise Price, lower range | 10 |
Exercise Price, upper range | $ 10.99 |
Options Outstanding, Number Outstanding | shares | 249,000 |
Options Outstanding, Weighted Average Exercise Price | $ 10.63 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 6 months |
Options Exercisable, Number Outstanding | shares | 7,500 |
Options Exercisable, Weighted Average Exercise Price | $ 10.08 |
11.00 - 11.99 | |
Exercise Price | |
Exercise Price, lower range | 11 |
Exercise Price, upper range | $ 11.99 |
Options Outstanding, Number Outstanding | shares | 267,500 |
Options Outstanding, Weighted Average Exercise Price | $ 11.15 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 6 months |
Options Exercisable, Number Outstanding | shares | 73,000 |
Options Exercisable, Weighted Average Exercise Price | $ 11.29 |
12.00 - 12.99 | |
Exercise Price | |
Exercise Price, lower range | 12 |
Exercise Price, upper range | $ 12.99 |
Options Outstanding, Number Outstanding | shares | 263,528 |
Options Outstanding, Weighted Average Exercise Price | $ 12.90 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 7 months 6 days |
Options Exercisable, Number Outstanding | shares | 257,278 |
Options Exercisable, Weighted Average Exercise Price | $ 12.91 |
13.00 - 13.99 | |
Exercise Price | |
Exercise Price, lower range | 13 |
Exercise Price, upper range | $ 13.99 |
Options Outstanding, Number Outstanding | shares | 25,000 |
Options Outstanding, Weighted Average Exercise Price | $ 13.22 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 4 months 24 days |
Options Exercisable, Number Outstanding | shares | 25,000 |
Options Exercisable, Weighted Average Exercise Price | $ 13.22 |
17.00 - 17.99 | |
Exercise Price | |
Exercise Price, lower range | 17 |
Exercise Price, upper range | $ 17.99 |
Options Outstanding, Number Outstanding | shares | 290,500 |
Options Outstanding, Weighted Average Exercise Price | $ 17.50 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 1 month 6 days |
Options Exercisable, Number Outstanding | shares | 72,750 |
Options Exercisable, Weighted Average Exercise Price | $ 17.50 |
Stock Options and Restricted _7
Stock Options and Restricted Stock - Non-Vested Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Shares | ||
Nonvested Options at beginning of period | 421,375 | |
Granted | 421,500 | 290,000 |
Vested | (171,625) | |
Forfeited | (5,000) | |
Nonvested Options at end of period | 666,250 | 421,375 |
Weighted Average Grant Date Fair Value | ||
Nonvested Options at beginning of period | $ 4.87 | |
Granted | 5.04 | |
Vested | 4.40 | |
Forfeited | 5.74 | |
Nonvested Options at end of period | $ 5.09 | $ 4.87 |
Stock Options and Restricted _8
Stock Options and Restricted Stock - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation expense | |||
Weighted-average period for non vested restricted stock awards | 3 years | ||
Restricted Stock Awards | |||
Number of Shares | |||
Vesting period | 4 years | ||
Nonvested Awards at beginning of period | 38,762 | 75,113 | |
Vested | (35,101) | (35,351) | |
Forfeited | (250) | (1,000) | |
Nonvested Awards at end of period | 3,411 | 38,762 | 75,113 |
Weighted Average Grant Date Fair Value | |||
Nonvested Awards at beginning of period | $ 12.50 | $ 12.59 | |
Vested | 12.69 | 12.69 | |
Forfeited | 12.92 | 12.92 | |
Nonvested Awards at end of period | $ 10.53 | $ 12.50 | $ 12.59 |
Compensation expense | |||
Compensation expense recognized | $ 417 | $ 448 | $ 455 |
Unrecognized compensation cost | $ 13 | ||
Weighted-average period for non vested restricted stock awards | 4 months 24 days | ||
Shares issued for services on board of directors | 44,753 | ||
Value of shares issued for services on board of directors | $ 481 |
Stock Options and Restricted _9
Stock Options and Restricted Stock - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation expense | |||
Weighted-average period for non vested restricted stock awards | 3 years | ||
Restricted Stock Units | |||
Number of Shares | |||
Number of shares of common stock on which each RSU is entitled to to receive upon vesting | 1 | ||
Vesting period | 4 years | ||
Nonvested Awards at beginning of period | 351,310 | 344,908 | |
Granted | 221,561 | 112,760 | |
Vested | (121,603) | (96,786) | |
Forfeited | (10,253) | (9,572) | |
Nonvested Awards at end of period | 441,015 | 351,310 | 344,908 |
Weighted Average Grant Date Fair Value | |||
Nonvested Awards at beginning of period | $ 16.30 | $ 15.02 | |
Granted | 12.77 | 18.72 | |
Vested | 15.53 | 14.65 | |
Forfeited | 17.79 | 15.12 | |
Nonvested Awards at end of period | $ 14.71 | $ 16.30 | $ 15.02 |
Compensation expense | |||
Compensation expense recognized | $ 2,200 | $ 1,500 | $ 731 |
Unrecognized compensation cost | $ 6,000 | ||
Weighted-average period for non vested restricted stock awards | 2 years 9 months 18 days |
Profit Sharing Plan (Details)
Profit Sharing Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit Sharing Plan | |||
Employer match contributions (as a percent) | 100% | ||
Employer contribution on employees' gross pay ( as a percent) | 4% | ||
Employer match contributions | $ 1,000 | $ 1,000 | $ 804 |
Total employer profit sharing contributions | $ 824 | $ 793 | $ 636 |
Deferred Compensation Plan (Det
Deferred Compensation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Compensation Plan | ||
Vesting period | 75 days | |
Deferred compensation liability | $ 0 | $ 1,800 |
New contributions made | $ 0 | $ 0 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | |
Class of Stock [Line Items] | |||
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Net proceeds from issuance of Preferred Stock | $ 66,514 | ||
Depositary Shares | |||
Class of Stock [Line Items] | |||
Number of shares issued | shares | 2,400,000 | ||
Conversion of stock split ratio | 0.01 | ||
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred Stock, dividend rate (as a percent) | 5.875% | ||
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Over-Allotment | Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Number of shares issued | shares | 360,000 | ||
Gross proceeds from offering | $ 69,000 | ||
Ownership conversion to Series A Preferred Stock (as a percent) | 0.01 | ||
Issuance costs | $ 2,500 | ||
Net proceeds from issuance of Preferred Stock | $ 66,500 |
Regulatory Capital - Capital Am
Regulatory Capital - Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 570,770 | $ 536,352 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 326,872 | 326,190 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | $ 429,019 | $ 428,125 |
Total Risk-Based Capital, Actual ratio | 0.1397 | 0.1315 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.1050 | 0.1050 |
Tier 1 Risk-Based Capital | ||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 440,947 | $ 409,092 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 245,154 | 244,643 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 347,301 | $ 346,577 |
Tier 1 Risk-Based Capital, Actual ratio | 0.1079 | 0.1003 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0850 | 0.0850 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Capital, Actual amount | $ 374,433 | $ 342,578 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 183,865 | 183,482 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 286,013 | $ 285,417 |
Common Equity Tier 1 Capital, Actual ratio | 0.0916 | 0.0840 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 7% | 7% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 440,947 | $ 409,092 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 184,383 | 171,368 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | $ 184,383 | $ 171,368 |
Tier 1 Leverage Ratio, Actual ratio | 0.0957 | 0.0955 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0400 | 0.0400 |
Bank | ||
Total Risk-Based Capital | ||
Total Risk-Based Capital, Actual amount | $ 554,269 | $ 508,760 |
Total Risk-Based Capital, For Capital Adequacy Purposes, amount | 326,528 | 326,288 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conversion Buffer, amount | 428,568 | 428,253 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 408,160 | $ 407,860 |
Total Risk-Based Capital, Actual ratio | 0.1358 | 0.1247 |
Total Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Total Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.1050 | 0.1050 |
Total Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.1000 | 0.1000 |
Tier 1 Risk-Based Capital | ||
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 503,787 | $ 460,404 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, amount | 244,896 | 244,716 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 346,936 | 346,681 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 326,528 | $ 326,288 |
Tier 1 Risk-Based Capital, Actual ratio | 0.1234 | 0.1129 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Tier 1 Risk-Based Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0850 | 0.0850 |
Tier 1 Risk-Based Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Capital, Actual amount | $ 503,787 | $ 460,404 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, amount | 183,672 | 183,537 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 285,712 | 285,502 |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 265,304 | $ 265,109 |
Common Equity Tier 1 Capital, Actual ratio | 0.1234 | 0.1129 |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 7% | 7% |
Common Equity Tier 1 Capital, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 6.50% | 6.50% |
Leverage Ratio | ||
Tier 1 Leverage Ratio, Actual amount | $ 503,787 | $ 460,404 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, amount | 184,037 | 171,113 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, amount | 184,037 | 171,113 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, amount | $ 230,047 | $ 213,891 |
Tier 1 Leverage Ratio, Actual ratio | 0.1095 | 0.1076 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Tier 1 Leverage Ratio, For Capital Adequacy Purposes Plus Capital Conservation Buffer, Ratio | 0.0400 | 0.0400 |
Tier 1 Leverage Ratio, To be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 0.0500 | 0.0500 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | $ 604,104 | $ 548,613 |
Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 636,693 | 586,736 |
Total Fair Value of Financial Liabilities | 8,601 | 9,542 |
Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 18,717 | 19,406 |
Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 13,872 | 18,717 |
Interest Rate Swaps | 8,601 | 9,542 |
U.S. Treasury Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 2,580 | |
U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 2,580 | |
Municipal Bonds | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 132,524 | 131,354 |
Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 132,524 | 131,354 |
Mortgage-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 235,315 | 237,784 |
Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 235,315 | 237,784 |
Corporate Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 130,605 | 109,827 |
Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 130,605 | 109,827 |
SBA Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 18,674 | 20,877 |
SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 18,674 | 20,877 |
Asset-Backed Securities | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 86,986 | 46,191 |
Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 86,986 | 46,191 |
Level 1 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 2,580 | |
Level 1 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 2,580 | |
Level 1 | U.S. Treasury Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 2,580 | |
Level 2 | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 604,104 | 546,033 |
Level 2 | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Total Fair Value of Financial Assets | 636,693 | 584,156 |
Total Fair Value of Financial Liabilities | 8,601 | 9,542 |
Level 2 | Interest Rate Cap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 18,717 | 19,406 |
Level 2 | Interest Rate Cap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 18,717 | 19,406 |
Level 2 | Interest Rate Swap | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 13,872 | 18,717 |
Interest Rate Swaps | 8,601 | 9,542 |
Level 2 | Interest Rate Swap | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Interest Rate Derivatives | 13,872 | 18,717 |
Interest Rate Swaps | 8,601 | 9,542 |
Level 2 | Municipal Bonds | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 132,524 | 131,354 |
Level 2 | Mortgage-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 235,315 | 237,784 |
Level 2 | Corporate Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 130,605 | 109,827 |
Level 2 | SBA Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | 18,674 | 20,877 |
Level 2 | Asset-Backed Securities | Recurring | ||
Balances of the assets and liabilities measured at fair value on a recurring basis | ||
Securities Available for Sale, at Fair Value | $ 86,986 | $ 46,191 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Loss | $ 2,050 | $ 7,700 | $ 5,150 |
Nonrecurring | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Loss | 199 | 71 | 625 |
Nonrecurring | Individually Evaluated Loans | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Loss | 199 | ||
Nonrecurring | Impaired Loans | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Loss | 71 | 625 | |
Level 2 | Nonrecurring | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Assets measured at fair value | 96 | 9,360 | |
Level 2 | Nonrecurring | Impaired Loans | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Assets measured at fair value | $ 96 | $ 9,360 | |
Level 3 | Nonrecurring | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Assets measured at fair value | 9,602 | ||
Level 3 | Nonrecurring | Individually Evaluated Loans | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Assets measured at fair value | $ 9,602 | ||
Level 3 | Nonrecurring | Individually Evaluated Loans | Minimum | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Customized discounting criteria on appraisals (as a percent) | 3% | ||
Level 3 | Nonrecurring | Individually Evaluated Loans | Maximum | |||
Balances of the assets and liabilities measured at fair value on a nonrecurring basis | |||
Customized discounting criteria on appraisals (as a percent) | 6% |
Fair Value Measurement - Estima
Fair Value Measurement - Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Bank-Owned Certificates of Deposit | $ 1,181 | |
Securities Available for Sale, at Fair Value | $ 604,104 | 548,613 |
Level 1 | ||
Financial Assets: | ||
Cash and Due From Banks | 128,562 | 87,043 |
Securities Available for Sale, at Fair Value | 2,580 | |
Level 2 | ||
Financial Assets: | ||
Bank-Owned Certificates of Deposit | 1,173 | |
Securities Available for Sale, at Fair Value | 604,104 | 546,033 |
FHLB Stock, at Cost | 17,097 | 19,606 |
Loans, Net | 3,579,583 | 3,314,190 |
Accrued Interest Receivable | 16,697 | 13,479 |
Financial Liabilities: | ||
Deposits | 3,709,086 | 3,390,416 |
Federal Funds Purchased | 287,000 | |
Notes Payable | 13,805 | 13,473 |
FHLB Advances | 319,305 | 96,061 |
Subordinated Debentures | 77,557 | 70,931 |
Accrued Interest Payable | 5,282 | 2,831 |
Level 2 | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 18,717 | 19,406 |
Level 2 | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 13,872 | 18,717 |
Financial Liabilities: | ||
Interest Rate Swaps | 8,601 | 9,542 |
Level 3 | ||
Financial Assets: | ||
Loans, Net | 9,602 | |
Carrying Amount | ||
Financial Assets: | ||
Cash and Due From Banks | 128,562 | 87,043 |
Bank-Owned Certificates of Deposit | 1,181 | |
Securities Available for Sale, at Fair Value | 604,104 | 548,613 |
FHLB Stock, at Cost | 17,097 | 19,606 |
Loans, Net | 3,667,215 | 3,512,157 |
Accrued Interest Receivable | 16,697 | 13,479 |
Financial Liabilities: | ||
Deposits | 3,709,948 | 3,416,543 |
Federal Funds Purchased | 287,000 | |
Notes Payable | 13,750 | 13,750 |
FHLB Advances | 319,500 | 97,000 |
Subordinated Debentures | 79,288 | 78,905 |
Accrued Interest Payable | 5,282 | 2,831 |
Carrying Amount | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 18,717 | 19,406 |
Carrying Amount | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 13,872 | 18,717 |
Financial Liabilities: | ||
Interest Rate Swaps | 8,601 | 9,542 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and Due From Banks | 128,562 | 87,043 |
Bank-Owned Certificates of Deposit | 1,173 | |
Securities Available for Sale, at Fair Value | 604,104 | 548,613 |
FHLB Stock, at Cost | 17,097 | 19,606 |
Loans, Net | 3,589,185 | 3,314,190 |
Accrued Interest Receivable | 16,697 | 13,479 |
Financial Liabilities: | ||
Deposits | 3,709,086 | 3,390,416 |
Federal Funds Purchased | 287,000 | |
Notes Payable | 13,805 | 13,473 |
FHLB Advances | 319,305 | 96,061 |
Subordinated Debentures | 77,557 | 70,931 |
Accrued Interest Payable | 5,282 | 2,831 |
Estimated Fair Value | Interest Rate Cap | ||
Financial Assets: | ||
Interest Rate Derivatives | 18,717 | 19,406 |
Estimated Fair Value | Interest Rate Swap | ||
Financial Assets: | ||
Interest Rate Derivatives | 13,872 | 18,717 |
Financial Liabilities: | ||
Interest Rate Swaps | $ 8,601 | $ 9,542 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of other comprehensive income (loss), Before Tax | |||
Net Unrealized Gain (Loss) on Available for Sale Securities | $ 3,339 | $ (56,914) | $ (1,689) |
Less: Reclassification Adjustment for Net Gains (Losses) Included in Net Income | 33 | (82) | (750) |
Total Unrealized Gain (Loss) | 3,372 | (56,996) | (2,439) |
Net Unrealized Loss (gain) on Cash Flow Hedge | 2,299 | 20,430 | 3,991 |
Less: Reclassification Adjustment for Gains Included in Net Income | (6,102) | (8) | 1,520 |
Total Unrealized Loss (Gain) | (3,803) | 20,422 | 5,511 |
Other Comprehensive Gain (Loss) | (431) | (36,574) | 3,072 |
Components of other comprehensive income (loss), Tax Effect | |||
Net Unrealized Gain (Loss) on Available for Sale Securities | (959) | 15,649 | 355 |
Less: Reclassification Adjustment for Net Losses Included in Net Income, tax effect | (9) | 23 | 157 |
Total Unrealized Gain (Loss) | (968) | 15,672 | 512 |
Net Unrealized Gain (Loss) on Cash Flow Hedge | (660) | (6,048) | (838) |
Less: Reclassification Adjustment for Gains Included in Net Income | 1,755 | 2 | (319) |
Total Unrealized Gain (Loss) | 1,095 | (6,046) | (1,157) |
Other Comprehensive Gain (Loss) | 127 | 9,626 | (645) |
Components of other comprehensive income (loss), Net of Tax | |||
Net Unrealized Gain (Loss) on Available for Sale Securities | 2,380 | (41,265) | (1,334) |
Less: Reclassification Adjustment for Net Gains (Losses) Included in Net Income | 24 | (59) | (593) |
Total Unrealized Gain (Loss) | 2,404 | (41,324) | (1,927) |
Net Unrealized Gain (Loss) on Cash Flow Hedge | 1,639 | 14,382 | 3,153 |
Less: Reclassification Adjustment for Gains Included in Net Income | (4,347) | (6) | 1,201 |
Total Unrealized Gain (Loss) | (2,708) | 14,376 | 4,354 |
Total Other Comprehensive Income (Loss), Net of Tax | $ (304) | $ (26,948) | $ 2,427 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | $ 394,064 | $ 379,272 | $ 265,405 |
Total Other Comprehensive Income (Loss), Net of Tax | (304) | (26,948) | 2,427 |
Balance at the end | 425,515 | 394,064 | 379,272 |
Available For Sale Securities | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | (34,124) | 7,200 | 9,127 |
Other Comprehensive Income (Loss) Before Reclassifications | 2,380 | (41,265) | (1,334) |
Amounts Reclassified from Accumulated Other Comprehensive Income | 24 | (59) | (593) |
Total Other Comprehensive Income (Loss), Net of Tax | 2,404 | (41,324) | (1,927) |
Balance at the end | (31,720) | (34,124) | 7,200 |
Cash Flow Hedge | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | 16,182 | 1,806 | (2,548) |
Other Comprehensive Income (Loss) Before Reclassifications | 1,639 | 14,382 | 3,153 |
Amounts Reclassified from Accumulated Other Comprehensive Income | (4,347) | (6) | 1,201 |
Total Other Comprehensive Income (Loss), Net of Tax | (2,708) | 14,376 | 4,354 |
Balance at the end | 13,474 | 16,182 | 1,806 |
Accumulated Other Comprehensive Income (loss) | |||
Changes in each component of accumulated other comprehensive income (loss), net of tax | |||
Balance at the beginning | (17,942) | 9,006 | 6,579 |
Other Comprehensive Income (Loss) Before Reclassifications | 4,019 | (26,883) | 1,819 |
Amounts Reclassified from Accumulated Other Comprehensive Income | (4,323) | (65) | 608 |
Total Other Comprehensive Income (Loss), Net of Tax | (304) | (26,948) | 2,427 |
Balance at the end | $ (18,246) | $ (17,942) | $ 9,006 |
Parent Company Financial Info_3
Parent Company Financial Information - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash and Cash Equivalents | $ 128,562 | $ 87,043 | ||
Premises and Equipment, Net | 48,886 | 48,445 | ||
Other Assets | 92,138 | 78,739 | ||
Total Assets | 4,611,990 | 4,345,662 | ||
LIABILITIES | ||||
Notes Payable | 13,750 | 13,750 | ||
Subordinated Debentures, Net of Issuance Costs | 79,288 | 78,905 | ||
Accrued Interest Payable | 5,282 | 2,831 | ||
Other Liabilities | 58,707 | 55,569 | ||
Total Liabilities | 4,186,475 | 3,951,598 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred Stock - $0.01 par value | 66,514 | 66,514 | ||
Common Stock - $0.01 par value | 277 | 278 | ||
Additional Paid-In Capital | 96,320 | 96,529 | ||
Retained Earnings | 280,650 | 248,685 | ||
Accumulated Other Comprehensive Loss | (18,246) | (17,942) | ||
Total Shareholders' Equity | 425,515 | 394,064 | $ 379,272 | $ 265,405 |
Total Liabilities and Equity | $ 4,611,990 | $ 4,345,662 | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 | ||
Parent Company | Reportable Legal Entities | ||||
ASSETS | ||||
Cash and Cash Equivalents | $ 27,733 | $ 37,414 | ||
Investment in Subsidiaries | 488,355 | 447,931 | ||
Premises and Equipment, Net | 3,760 | 844 | ||
Other Assets | 2,772 | 3,180 | ||
Total Assets | 522,620 | 489,369 | ||
LIABILITIES | ||||
Notes Payable | 13,750 | 13,750 | ||
Subordinated Debentures, Net of Issuance Costs | 79,288 | 78,905 | ||
Accrued Interest Payable | 1,765 | 452 | ||
Other Liabilities | 2,302 | 2,198 | ||
Total Liabilities | 97,105 | 95,305 | ||
SHAREHOLDERS' EQUITY | ||||
Preferred Stock - $0.01 par value | 66,514 | 66,514 | ||
Common Stock - $0.01 par value | 277 | 278 | ||
Additional Paid-In Capital | 96,320 | 96,529 | ||
Retained Earnings | 280,650 | 248,685 | ||
Accumulated Other Comprehensive Loss | (18,246) | (17,942) | ||
Total Shareholders' Equity | 425,515 | 394,064 | ||
Total Liabilities and Equity | $ 522,620 | $ 489,369 | ||
Preferred shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Parent Company Financial Info_4
Parent Company Financial Information - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME | |||
Other Income | $ 4,708 | $ 1,029 | $ 458 |
Total Interest Income | 222,355 | 163,695 | 128,879 |
EXPENSE | |||
Total Interest Expense | 117,181 | 33,997 | 19,370 |
LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS | 52,522 | 71,710 | 61,573 |
Income Tax Benefit | (12,562) | (18,318) | (15,886) |
NET INCOME | 39,960 | 53,392 | 45,687 |
Parent Company | Reportable Legal Entities | |||
INCOME | |||
Dividend Income | 1,585 | 1,350 | |
Interest Income | 3 | ||
Other Income | 118 | 129 | 117 |
Total Interest Income | 121 | 1,714 | 1,467 |
EXPENSE | |||
Interest Expense | 5,126 | 4,890 | 4,691 |
Other Expenses | 1,757 | 1,570 | 1,972 |
Total Interest Expense | 6,883 | 6,460 | 6,663 |
LOSS BEFORE INCOME TAX BENEFIT AND EQUITY IN UNDISTRIBUTED EARNINGS | (6,762) | (4,746) | (5,196) |
Income Tax Benefit | 1,894 | 1,792 | 1,847 |
LOSS BEFORE EQUITY IN UNDISTRIBUTED EARNINGS | (4,868) | (2,954) | (3,349) |
Equity in Undistributed Earnings | 44,828 | 56,346 | 49,036 |
NET INCOME | $ 39,960 | $ 53,392 | $ 45,687 |
Parent Company Financial Info_5
Parent Company Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $ 39,960 | $ 53,392 | $ 45,687 |
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: | |||
Net Cash Provided by Operating Activities | 30,015 | 84,999 | 54,236 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net Cash Used in Investing Activities | (209,183) | (938,243) | (571,425) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from Issuance of Subordinated Debt | 29,309 | ||
Redemption of Subordinated Debt | (13,750) | (11,250) | |
Stock Options Exercised | 963 | 577 | 724 |
Stock Repurchases and Repurchases for Tax Withholding on Equity Awards | (4,541) | (10,778) | (2,301) |
Issuance of Preferred Stock, net of Issuance Costs | 66,514 | ||
Preferred Stock Dividends Paid | (4,054) | (4,054) | (1,171) |
Net Cash Provided by Financing Activities | 220,687 | 796,814 | 499,987 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 41,519 | (56,430) | (17,202) |
Cash and Cash Equivalents Beginning | 87,043 | 143,473 | 160,675 |
Cash and Cash Equivalents Ending | 128,562 | 87,043 | 143,473 |
Parent Company | Reportable Legal Entities | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | 39,960 | 53,392 | 45,687 |
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities: | |||
Equity in Undistributed Earnings of Subsidiaries | (44,828) | (56,346) | (49,036) |
Changes in Other Assets and Liabilities | (738) | (193) | 634 |
Net Cash Provided by Operating Activities | (5,606) | (3,147) | (2,715) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Investment in Subsidiaries | (25,000) | (25,000) | |
Proceeds from Bridgewater Risk Management, Inc. Liquidation | 4,143 | ||
Net Cash Used in Investing Activities | 4,143 | (25,000) | (25,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Principal Payments on Notes Payable | (11,000) | ||
Proceeds from Notes Payable | 13,750 | ||
Proceeds from Issuance of Subordinated Debt | 29,309 | ||
Redemption of Subordinated Debt | (13,750) | (11,250) | |
Stock Options Exercised | 963 | 577 | 724 |
Stock Repurchases and Repurchases for Tax Withholding on Equity Awards | (5,127) | (11,513) | (2,740) |
Issuance of Preferred Stock, net of Issuance Costs | 66,514 | ||
Preferred Stock Dividends Paid | (4,054) | (4,054) | (1,171) |
Net Cash Provided by Financing Activities | (8,218) | (14,990) | 70,386 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (9,681) | (43,137) | 42,671 |
Cash and Cash Equivalents Beginning | 37,414 | 80,551 | 37,880 |
Cash and Cash Equivalents Ending | $ 27,733 | $ 37,414 | $ 80,551 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 12 Months Ended | |
Jan. 24, 2024 | Dec. 31, 2021 | |
Series A Preferred Stock | ||
Subsequent Events | ||
Preferred Stock, dividend rate (as a percent) | 5.875% | |
Subsequent Event | Series A Preferred Stock | ||
Subsequent Events | ||
Dividend per share | $ 36.72 | |
Subsequent Event | Depositary Shares | ||
Subsequent Events | ||
Dividend per share | $ 0.3672 |
Bank-Owned Certificates of Depo
Bank-Owned Certificates of Deposit | 12 Months Ended |
Dec. 31, 2023 | |
Bank-Owned Certificates of Deposit | |
Bank-Owned Certificates of Deposit | Note 3: Bank-Owned Certificates of Deposit Certificates of deposit in other financial institutions by maturity are as follows: Year Ended December 31, (dollars in thousands) 2023 2022 Certificates of Deposit at Cost Maturing in: One Year or Less $ — $ 936 After One Year Through Five Years — 245 $ — $ 1,181 |
Bank-Owned Certificates of De_2
Bank-Owned Certificates of Deposit (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Bank-Owned Certificates of Deposit | |
Summary of certificates of deposit in other financial institutions by maturity | Certificates of deposit in other financial institutions by maturity are as follows: Year Ended December 31, (dollars in thousands) 2023 2022 Certificates of Deposit at Cost Maturing in: One Year or Less $ — $ 936 After One Year Through Five Years — 245 $ — $ 1,181 |
Bank-Owned Certificates of De_3
Bank-Owned Certificates of Deposit (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Certificates of Deposit at Cost Maturing in: | |
One Year or Less | $ 936 |
After One Year Through Five Years | 245 |
Certificates of deposit at Cost | $ 1,181 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 39,960 | $ 53,392 | $ 45,687 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |