Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Registrant Name | ATLANTIC CAPITAL BANCSHARES, INC. | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37615 | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 20-5728270 | |
Entity Address, Address Line One | 945 East Paces Ferry Road NE, Suite 1600 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 995-6050 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ACBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,333,006 | |
Entity Central Index Key | 0001461755 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 32,850 | $ 16,865 |
Interest-bearing deposits in banks | 612,966 | 636,537 |
Cash and cash equivalents | 645,816 | 653,402 |
Investment securities available for sale | 390,701 | 335,423 |
Investment securities held to maturity, net of allowance for credit losses of $14 at March 31, 2021 and December 31, 2020, respectively | 222,535 | 200,156 |
Other investments | 24,709 | 25,892 |
Loans held for sale | 1,847 | |
Loans held for investment | 2,300,814 | 2,249,036 |
Less: Allowance for loan losses | (27,506) | (31,818) |
Loans held for investment, net | 2,273,308 | 2,217,218 |
Premises and equipment, net | 20,633 | 21,589 |
Bank owned life insurance | 73,223 | 72,856 |
Goodwill | 19,925 | 19,925 |
Other intangibles, net | 2,688 | 2,731 |
Other real estate owned | 16 | 16 |
Other assets | 57,267 | 66,409 |
Total assets | 3,732,668 | 3,615,617 |
Deposits: | ||
Noninterest-bearing demand | 1,280,524 | 1,033,765 |
Interest-bearing checking | 485,540 | 760,638 |
Savings | 562 | 625 |
Money market | 1,142,361 | 1,030,753 |
Time | 294,129 | 241,328 |
Brokered deposits | 74,576 | 94,399 |
Total deposits | 3,277,692 | 3,161,508 |
Long-term debt | 73,878 | 73,807 |
Other liabilities | 40,770 | 41,716 |
Total liabilities | 3,392,340 | 3,277,031 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, no par value - 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2021 and December 31, 2020 | ||
Common stock, no par value - 100,000,000 shares authorized; 20,354,077 and 20,394,912 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 207,047 | 209,942 |
Retained earnings | 127,499 | 114,137 |
Accumulated other comprehensive income | 5,782 | 14,507 |
Total shareholders' equity | 340,328 | 338,586 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 3,732,668 | $ 3,615,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Investment securities held to maturity, net of allowance for credit losses | $ 14 | $ 14 |
Preferred stock par value | $ 0 | $ 0 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value | $ 0 | $ 0 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 20,354,077 | 20,394,912 |
Common stock outstanding (in shares) | 20,354,077 | 20,394,912 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
INTEREST INCOME | ||
Loans, including fees | $ 21,769 | $ 22,426 |
Investment securities | 3,374 | 2,732 |
Interest and dividends on other interest-earning assets | 267 | 865 |
Total interest income | 25,410 | 26,023 |
INTEREST EXPENSE | ||
Interest on deposits | 971 | 4,182 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 32 | |
Interest on long-term debt | 1,094 | 829 |
Total interest expense | 2,065 | 5,043 |
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 23,345 | 20,980 |
Provision for credit losses | (4,519) | 8,074 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 27,864 | 12,906 |
NONINTEREST INCOME | ||
Service charges | 1,663 | 1,232 |
Gains on sales of securities | 2 | |
Gains on sales of other assets | 5 | |
Derivatives income | 47 | 246 |
Bank owned life insurance | 391 | 362 |
SBA lending activities | 1,225 | 414 |
Other noninterest income | 234 | 163 |
Total noninterest income | 3,562 | 2,422 |
NONINTEREST EXPENSE | ||
Salaries and employee benefits | 10,421 | 8,476 |
Occupancy | 734 | 794 |
Equipment and software | 774 | 779 |
Professional services | 922 | 705 |
Communications and data processing | 792 | 897 |
Marketing and business development | 108 | 153 |
Travel, meals and entertainment | 10 | 140 |
FDIC premiums | 275 | |
Other noninterest expense | 1,113 | 933 |
Total noninterest expense | 15,149 | 12,877 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 16,277 | 2,451 |
Provision for income taxes | 2,915 | 327 |
NET INCOME | $ 13,362 | $ 2,124 |
Net income per common share - basic | $ 0.66 | $ 0.10 |
Net income per common share - diluted | $ 0.65 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 13,362 | $ 2,124 |
Unrealized (losses) gains on available-for-sale securities: | ||
Unrealized holding (losses) gains arising during the period, net of tax of ($1,857) and $1,077, respectively | (5,653) | 3,317 |
Unrealized (losses) gains on available-for-sale securities, net of tax | (5,653) | 3,317 |
Cash flow hedges: | ||
Net unrealized derivative (losses) gains on cash flow hedges, net of tax of ($1,009) and $2,114, respectively | (3,072) | 6,468 |
Changes from cash flow hedges | (3,072) | 6,468 |
Other comprehensive (loss) income, net of tax | (8,725) | 9,785 |
Comprehensive income | $ 4,637 | $ 11,909 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Comprehensive Income | ||
Tax portion of unrealized holding gains arising during the period | $ (1,857) | $ 1,077 |
Tax portion of net unrealized derivative gains on cash flow hedges | $ (1,009) | $ 2,114 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Total |
Comprehensive (loss) income: | ||||||
Change in accounting principle | $ 230,265 | $ 91,669 | $ 4,561 | $ 326,495 | ||
Beginning balance at Dec. 31, 2019 | $ 230,265 | 91,669 | 4,561 | 326,495 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 21,751,026 | |||||
Comprehensive (loss) income: | ||||||
Net income | 2,124 | 2,124 | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 3,317 | 3,317 | ||||
Change in unrealized gains (losses) on cash flow hedges | 6,468 | 6,468 | ||||
Comprehensive income | 11,909 | |||||
Change in accounting principle | $ 224,233 | $ (72) | 93,721 | 14,346 | $ (72) | 332,300 |
Net issuance of restricted stock (in shares) | 68,067 | |||||
Issuance of common stock for option exercises | $ 535 | 535 | ||||
Issuance of common stock for option exercises (in shares) | 54,486 | |||||
Issuance of common stock for long-term incentive plan | $ 444 | 444 | ||||
Issuance of common stock for long-term incentive plan (in shares) | 25,265 | |||||
Restricted stock activity | $ 421 | 421 | ||||
Performance share activity | (38) | (38) | ||||
Stock-based compensation | 17 | 17 | ||||
Stock repurchases | $ (7,411) | (7,411) | ||||
Stock repurchases (in shares) | (418,858) | |||||
Ending balance at Mar. 31, 2020 | $ 224,233 | (72) | 93,721 | 14,346 | (72) | 332,300 |
Ending balance (in shares) at Mar. 31, 2020 | 21,479,986 | |||||
Comprehensive (loss) income: | ||||||
Change in accounting principle | $ 224,233 | $ (72) | 93,721 | 14,346 | $ (72) | 332,300 |
Change in accounting principle | 209,942 | 114,137 | 14,507 | 338,586 | ||
Beginning balance at Dec. 31, 2020 | $ 209,942 | 114,137 | 14,507 | $ 338,586 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 20,394,912 | 20,394,912 | ||||
Comprehensive (loss) income: | ||||||
Net income | 13,362 | $ 13,362 | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net | (5,653) | (5,653) | ||||
Change in unrealized gains (losses) on cash flow hedges | (3,072) | (3,072) | ||||
Comprehensive income | 4,637 | |||||
Change in accounting principle | $ 207,047 | 127,499 | 5,782 | 338,586 | ||
Net issuance of restricted stock (in shares) | 54,939 | |||||
Issuance of common stock for option exercises | $ 788 | $ 788 | ||||
Issuance of common stock for option exercises (in shares) | 97,499 | 134,850 | ||||
Issuance of common stock for long-term incentive plan (in shares) | 28,920 | |||||
Restricted stock activity | $ 310 | $ 310 | ||||
Performance share activity | 199 | 199 | ||||
Stock repurchases | $ (4,192) | $ (4,192) | ||||
Stock repurchases (in shares) | (222,193) | (222,193) | ||||
Ending balance at Mar. 31, 2021 | $ 207,047 | 127,499 | 5,782 | $ 340,328 | ||
Ending balance (in shares) at Mar. 31, 2021 | 20,354,077 | 20,354,077 | ||||
Comprehensive (loss) income: | ||||||
Change in accounting principle | $ 207,047 | $ 127,499 | $ 5,782 | $ 340,328 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 13,362 | $ 2,124 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for credit losses | (4,519) | 8,074 |
Depreciation, amortization, and accretion | 1,427 | 898 |
Amortization of operating lease right-of-use assets | 445 | 555 |
Amortization of restricted stock and performance share compensation | 753 | 258 |
Stock option compensation | 17 | |
(Gain) loss on sales of available-for-sale securities | (2) | |
Net write downs and (gains) losses on sales of other real estate owned | (5) | |
Net increase in cash value of bank owned life insurance | (367) | (340) |
Origination of servicing assets | (236) | (105) |
Proceeds from sales of SBA loans | 13,139 | 6,399 |
Net (gains) on sale of SBA loans | (988) | (308) |
Changes in operating assets and liabilities - | ||
Net change in loans held for sale | (1,847) | 370 |
Net (increase) decrease in other assets | 8,414 | (7,280) |
Net increase (decrease) in accrued expenses and other liabilities | (702) | 856 |
Net cash provided by operating activities | 28,879 | 11,513 |
Activity in securities available-for-sale: | ||
Prepayments | 11,813 | 6,203 |
Maturities and calls | 1,000 | |
Sales | 750 | |
Purchases | (76,780) | |
Activity in securities held to maturity: | ||
Prepayments | 10 | |
Purchases | (22,498) | (69,141) |
Net change in loans held for investment | (64,167) | (65,909) |
(Purchases) proceeds of Federal Home Loan Bank stock, net | 811 | |
(Purchases) proceeds of Federal Reserve Bank stock, net | (44) | |
Proceeds from sales of other real estate owned | 88 | |
(Purchases) of premises and equipment, net | (98) | (1,039) |
Net cash (used in) investing activities | (149,203) | (129,798) |
FINANCING ACTIVITIES | ||
Net change in deposits | 116,184 | (273,927) |
Net change in fed funds purchased | 75,000 | |
Proceeds from exercise of stock options | 746 | 660 |
Repurchase of common stock | (4,192) | (7,411) |
Net cash provided by (used in) financing activities | 112,738 | (205,678) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (7,586) | (323,963) |
CASH AND CASH EQUIVALENTS - beginning of period | 653,402 | 466,328 |
CASH AND CASH EQUIVALENTS - end of period | 645,816 | 142,365 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | 3,198 | 5,850 |
Income taxes (refunded) paid | $ (11) | $ 344 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies and Basis of Presentation | |
Accounting Policies and Basis of Presentation | NOTE 1 – ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary, Atlantic Capital Bank, N.A. (the “Bank”), conform to GAAP and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Certain prior period amounts have been reclassified to conform to the current year presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s Annual Report on Form 10-K. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. |
Accounting Standards Updates an
Accounting Standards Updates and Recently Adopted Standards | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Updates and Recently Adopted Standards | |
Accounting Standards Updates and Recently Adopted Standards | NOTE 2 – ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuance of LIBOR. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. The Company is in the process of making the necessary adjustments to prepare for the impact that the discontinuance of LIBOR will have on its existing contracts and consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” In October 2020, the FASB issued ASU No. 2020-08, “ Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs |
Balance Sheet Offsetting
Balance Sheet Offsetting | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Offsetting | |
Balance Sheet Offsetting | NOTE 3 – BALANCE SHEET OFFSETTING Atlantic Capital enters into reverse repurchase agreements to invest short-term funds. Atlantic Capital enters into repurchase agreements for short-term financing needs. The following table presents a summary of amounts outstanding in derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements and amounts received or pledged as collateral at March 31, 2021 and December 31, 2020. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral March 31, 2021 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 13,480 $ — $ 13,480 $ — $ (6,070) $ 7,410 Total $ 13,480 $ — $ 13,480 $ — $ (6,070) $ 7,410 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 6,868 $ — $ 6,868 $ (6,868) $ 330 $ (6,538) Total $ 6,868 $ — $ 6,868 $ (6,868) $ 330 $ (6,538) Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2020 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 22,184 $ — $ 22,184 $ — $ — $ 22,184 Total $ 22,184 $ — $ 22,184 $ — $ — $ 22,184 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 11,496 $ — $ 11,496 $ (11,496) $ 330 $ (11,166) Total $ 11,496 $ — $ 11,496 $ (11,496) $ 330 $ (11,166) |
Securities
Securities | 3 Months Ended |
Mar. 31, 2021 | |
Securities | |
Securities | NOTE 4 – SECURITIES The following table presents the amortized cost, fair value, and allowance for credit losses on securities available-for-sale and held-to-maturity at March 31, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) March 31, 2021 Available-For-Sale U.S. states and political divisions $ 77,328 $ 2,080 $ — $ 79,408 Trust preferred securities 4,841 — (33) 4,808 Corporate debt securities 20,519 166 (52) 20,633 Residential mortgage-backed securities 248,823 3,284 (5,563) 246,544 Commercial mortgage-backed securities 37,722 1,781 (195) 39,308 Total available-for-sale 389,233 7,311 (5,843) 390,701 Gross Gross Allowance Net Amortized Unrecognized Unrecognized for Credit Carrying Cost Gains Losses Fair Value Losses Value Held-to-Maturity U.S. states and political divisions 222,549 9,105 (3,232) 228,422 (14) 222,535 Total held-to-maturity 222,549 9,105 (3,232) 228,422 (14) 222,535 Total securities $ 611,782 $ 16,416 $ (9,075) $ 619,123 Gross Gross December 31, 2020 Amortized Unrealized Unrealized Available-For-Sale Cost Gains Losses Fair Value U.S. states and political divisions $ 78,117 $ 2,906 $ (4) $ 81,019 Trust preferred securities 4,835 — (113) 4,722 Corporate debt securities 19,526 295 — 19,821 Residential mortgage-backed securities 190,817 4,023 (242) 194,598 Commercial mortgage-backed securities 33,150 2,123 (10) 35,263 Total available-for-sale 326,445 9,347 (369) 335,423 Gross Gross Allowance Net Amortized Unrecognized Unrecognized for Credit Carrying Cost Gains Losses Fair Value Losses Value Held-to-Maturity U.S. states and political divisions 200,170 14,439 (25) 214,584 (14) 200,156 Total held-to-maturity 200,170 14,439 (25) 214,584 (14) 200,156 Total securities $ 526,615 $ 23,786 $ (394) $ 550,007 The following table presents the activity in the allowance for credit losses on securities held-to-maturity by major security type for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ 10 $ 4 $ 14 Provision for credit losses — — — Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 10 $ 4 $ 14 For the Three Months Ended March 31, 2020 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ — $ — $ — Impact of adopting ASU 2016-13 13 7 20 Provision for credit losses (3) (3) (6) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 10 $ 4 $ 14 Management measures expected credit losses on held-to-maturity debt securities on an individual basis. Accrued interest receivable on held-to-maturity debt securities totaled $1.6 million at March 31, 2021 and $2.1 million at December 31, 2020, is recorded in Other Assets on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on available-for-sale debt securities totaled $1.2 million at both March 31, 2021 and December 31, 2020, is recorded in Other Assets on the Consolidated Balance Sheets and is not included in the estimate of credit losses. Atlantic Capital monitors the credit quality of debt securities held-to-maturity quarterly through the use of credit rating, material event notices, and changes in market value. The following table summarizes the amortized cost of debt securities held-to-maturity at March 31, 2021, aggregated by credit quality indicator. Held-to-Maturity U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total March 31, 2021 (in thousands) Aaa $ 60,808 $ 27,933 $ 88,741 Aa1 41,174 17,957 59,131 Aa2 34,019 22,825 56,844 Aa3 11,590 4,042 15,632 A1 2,201 — 2,201 Total $ 149,792 $ 72,757 $ 222,549 As of March 31, 2021, there were no debt The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at March 31, 2021. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-For-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) Within 1 year $ 8,519 $ 8,685 $ — $ — After 1 year through 5 years 9,608 9,742 — — After 5 years through 10 years 34,247 34,912 312 314 After 10 years 50,314 51,510 222,237 228,108 102,688 104,849 222,549 228,422 Residential mortgage-backed securities 248,823 246,544 — — Commercial mortgage-backed securities 37,722 39,308 — — Total $ 389,233 $ 390,701 $ 222,549 $ 228,422 The following table summarizes available-for-sale and held-to-maturity securities in an unrealized loss position as of March 31, 2021 and December 31, 2020. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2021 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale Trust preferred securities $ — $ — $ 4,808 $ (33) $ 4,808 $ (33) Corporate debt securities 9,948 (52) — — 9,948 (52) Residential mortgage-backed securities 153,169 (5,550) 191 (13) 153,360 (5,563) Commercial mortgage-backed securities 3,563 (195) — — 3,563 (195) Total available-for-sale 166,680 (5,797) 4,999 (46) 171,679 (5,843) Held-to-Maturity U.S. states and political divisions 58,272 (3,232) — — 58,272 (3,232) Total held-to-maturity 58,272 (3,232) — — 58,272 (3,232) Total securities $ 224,952 $ (9,029) $ 4,999 $ (46) $ 229,951 $ (9,075) December 31, 2020 Available-for-Sale U.S. states and political divisions $ — $ — $ 1,987 $ (4) $ 1,987 $ (4) Trust preferred securities — — 4,721 (113) 4,721 (113) Residential mortgage-backed securities 68,042 (231) 205 (11) 68,247 (242) Commercial mortgage-backed securities 3,750 (10) — — 3,750 (10) Total available-for-sale 71,792 (241) 6,913 (128) 78,705 (369) Held-to-Maturity U.S. states and political divisions 2,241 (25) — — 2,241 (25) Total held-to-maturity 2,241 (25) — — 2,241 (25) Total securities $ 74,033 $ (266) $ 6,913 $ (128) $ 80,946 $ (394) At March 31, 2021, there were 28 available-for-sale securities that were in an unrealized loss position. There were also 28 held-to-maturity securities that were in an unrealized loss position at March 31, 2021. At December 31, 2020, there were 13 available-for-sale securities and one held-to-maturity security that were in an unrealized loss position. Atlantic Capital does not intend to sell and does not believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at March 31, 2021 and December 31, 2020 were attributable to changes in market interest rates. No credit impairment was recorded for those securities in an unrealized loss position for the three months ended March 31, 2021 or 2020. Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 Proceeds from sales $ 750 $ — Gross realized gains $ 2 $ — Gross realized losses — — Net gains on sales of securities $ 2 $ — Investment securities with a carrying value of $56.2 million and $43.9 million were pledged to secure public funds and other borrowings at March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021 and December 31, 2020, Atlantic Capital had investments with a carrying value of $5.5 million and $5.4 million, respectively, in SBICs and other investments where Atlantic Capital is the limited partner. These investments are included in other assets on the Consolidated Balance Sheets. During the first three months of 2021 and 2020, the Company did not record any impairment on these investments. There have been no upward adjustments, cumulatively or year-to-date, on these investments. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2021 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio as of March 31, 2021 and December 31, 2020, is summarized below. March 31, 2021 December 31, 2020 (in thousands) Loans held for sale Loans held for sale $ 1,847 $ — Total loans held for sale $ 1,847 $ — Loans held for investment Commercial loans: Commercial and industrial $ 954,053 $ 952,805 Commercial real estate 942,091 909,101 Construction and land 142,796 145,595 Total commercial loans 2,038,940 2,007,501 Residential: Residential mortgages 31,817 33,783 Home equity 26,293 25,443 Total residential loans 58,110 59,226 Consumer 203,176 176,066 Other 7,689 13,897 Total loans 2,307,915 2,256,690 Less net deferred fees and other unearned income (7,101) (7,654) Less allowance for credit losses on loans (27,506) (31,818) Loans held for investment, net $ 2,273,308 $ 2,217,218 At March 31, 2021 and December 31, 2020, loans with a carrying value of $497.2 million and $474.5 million, respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window. The fair value adjustments on purchased loans outside the scope of ASC 310-30 are accreted to interest income over the life of the loans. At March 31, 2021, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $249,000 compared to $262,000 at December 31, 2020. The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of specific allowance for individually assessed loans and a general allowance for loans that are collectively assessed in pools with similar risk characteristics. The allowance is regularly evaluated to maintain a level adequate to absorb expected losses inherent in the loan portfolio. Accrued interest receivable totaled $10.7 million at March 31, 2021 and $10.8 million at December 31, 2020 and was reported in Other Assets on the Consolidated Balance Sheets. Included in the estimate of credit losses for loans at March 31, 2021 and December 31, 2020 was $51,000 and $49,000, respectively, related to accrued interest receivable totaling $4.3 million and $4.4 million, respectively, on loans with payment deferrals. The remaining balance of accrued interest receivable was excluded from the estimate of credit losses for loans. The following table presents the balance and activity in the allowance for credit losses on loans by portfolio segment for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 30,221 $ 699 $ 898 $ 31,818 Provision for loan losses (3,799) (154) (121) (4,074) Loans charged-off (288) — — (288) Recoveries 50 — — 50 Total ending allowance balance $ 26,184 $ 545 $ 777 $ 27,506 For the Three Months Ended March 31, 2020 Commercial Residential Consumer Total Allowance for credit losses on loans (in thousands) Beginning balance $ 18,203 $ 145 $ 187 $ 18,535 Impact of adopting ASC 326 (947) 8 85 (854) Provision for loan losses 6,652 386 371 7,409 Loans charged-off (96) (125) — (221) Recoveries 18 1 8 27 Total ending allowance balance $ 23,830 $ 415 $ 651 $ 24,896 The decrease in the allowance for credit losses at March 31, 2021 compared to December 31, 2020 was due to an improvement in the CECL economic forecast along with credit rating upgrades for criticized and classified loans. A charge-off is recognized when the amount of the loss is quantifiable and timing is known. A collateral based loan charge-off is measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan collateral. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. Atlantic Capital’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal. Troubled Debt Restructurings Atlantic Capital evaluates loans in accordance with ASC 310-40, Troubled Debt Restructurings by Creditors . TDRs are made to provide relief to customers experiencing liquidity challenges or other circumstances that could affect their ability to meet their debt obligations. Typical modifications include short-term deferral of interest or modification of payment terms. Nonperforming TDRs do not accrue interest and are included as NPAs within NPLs. TDRs which are accruing interest based on the restructured terms are considered performing. As of March 31, 2021 and December 31, 2020, the Company had a recorded investment in TDRs of $13.8 million and $14.2 million, respectively. The Company allocated $55,000 in allowance for those loans at March 31, 2021 and had no commitments to lend additional funds on loans modified as TDRs as of March 31, 2021 and December 31, 2020. There were no loans modified as TDRs during the three months ended March 31, 2021. Loans, by portfolio class, modified as TDRs during the three months ended March 31, 2020 are as follows: Number of Loans Outstanding Balance Increase in Allowance (in thousands) Three Months Ended March 31, 2020 Commercial and industrial 1 $ 67 $ 2 Commercial real estate 1 1,945 154 Total 2 $ 2,012 $ 156 The Company did not forgive any principal on TDRs during the three months ended March 31, 2021 and 2020. A TDR is considered to be in default once it becomes 90 days or more contractually past due under the modified terms. The following table presents by class, all loans modified as TDRs that defaulted during the three months ended March 31, 2021 and 2020 and within twelve months of their modification date. Three Months Ended March 31, 2021 Troubled debt restructurings that subsequently defaulted during the period within twelve months of their modification date: Number of Loans Outstanding Balance (in thousands) Commercial real estate 1 $ 12 Total 1 $ 12 Three Months Ended March 31, 2020 Number of Loans Outstanding Balance (in thousands) Commercial 2 $ 320 Total 2 $ 320 Section 4013 “Temporary Relief From Troubled Debt Restructurings,” of the CARES Act, passed by Congress and signed into law on March 27, 2020, allows financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. The relief was extended by the 2021 Consolidated Appropriations Act through January 1, 2022. On April 7, 2020, the Federal Financial Institutions Examination Council provided additional guidance in its Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised). This guidance received concurrence from the FASB and clarified that loan modifications made under the following criteria are generally not considered TDRs if: ● the modification is in response to the national emergency; ● the borrower was current on payments at the time the modification program is implemented; and ● the modification is short-term (e.g., six months). Atlantic Capital individually rates loans based on internal credit risk ratings using numerous factors, including thorough analysis of historical and expected cash flows, consumer credit risk scores (FICO), rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. The likelihood of default of a credit transaction is graded in the Obligor Rating and is determined through credit analysis. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include loans with commitments less than $1 million, well-collateralized term loans and loans to individuals with limited exposure or complexity. Atlantic Capital uses the following definitions for risk ratings: Pass: Special Mention: Substandard: Doubtful: As of March 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized 2021 2020 2019 2018 2017 Prior Cost Basis Total (in thousands) March 31, 2021 Commercial - commercial and industrial: Risk rating Pass $ 105,540 $ 299,781 $ 103,040 $ 80,096 $ 42,897 $ 52,271 $ 189,327 $ 872,952 Special mention — 1,004 15,562 25,119 495 390 24,243 66,813 Substandard 21 — 4,019 6,529 718 1,727 1,274 14,288 Doubtful — — — — — — — — Total commercial - commercial and industrial $ 105,561 $ 300,785 $ 122,621 $ 111,744 $ 44,110 $ 54,388 $ 214,844 $ 954,053 Commercial - commercial real estate: Risk rating Pass $ 28,232 $ 86,992 $ 159,789 $ 147,059 $ 94,317 $ 328,834 $ 24,680 $ 869,903 Special mention — — 22,377 1,492 — 14,612 258 38,739 Substandard — 5,281 6,022 6,381 3,223 12,542 — 33,449 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 28,232 $ 92,273 $ 188,188 $ 154,932 $ 97,540 $ 355,988 $ 24,938 $ 942,091 Commercial - construction and land: Risk rating Pass $ 96 $ 83,921 $ 51,725 $ 107 $ — $ — $ 2,505 $ 138,354 Special mention — — — 2,664 — 1,778 — 4,442 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 96 $ 83,921 $ 51,725 $ 2,771 $ — $ 1,778 $ 2,505 $ 142,796 Residential - mortgages: Risk rating Pass $ 2,188 $ 8,239 $ 3,825 $ 12,089 $ 739 $ 3,100 $ — $ 30,180 Special mention — 532 — 156 744 — — 1,432 Substandard — — — 179 — 26 — 205 Doubtful — — — — — — — — Total residential - mortgage loans $ 2,188 $ 8,771 $ 3,825 $ 12,424 $ 1,483 $ 3,126 $ — $ 31,817 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ 486 $ 25,081 $ 25,567 Special mention — — — — — — 726 726 Substandard — — — — — — — — Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ 486 $ 25,807 $ 26,293 Consumer: Risk rating Pass $ 93,592 $ 98,528 $ 3,903 $ — $ 22 $ 3,705 $ 3,426 $ 203,176 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 93,592 $ 98,528 $ 3,903 $ — $ 22 $ 3,705 $ 3,426 $ 203,176 Consumer - other: Risk rating Pass $ 99 $ — $ — $ 4,299 $ 1,317 $ 582 $ 23 $ 6,320 Special mention — — 914 — — — — 914 Substandard — — — — 455 — — 455 Doubtful — — — — — — — — Total consumer - other loans $ 99 $ — $ 914 $ 4,299 $ 1,772 $ 582 $ 23 $ 7,689 Total: Pass $ 229,747 $ 577,461 $ 322,282 $ 243,650 $ 139,292 $ 388,978 $ 245,042 $ 2,146,452 Special Mention — 1,536 38,853 29,431 1,239 16,780 25,227 113,066 Substandard 21 5,281 10,041 13,089 4,396 14,295 1,274 48,397 Doubtful — — — — — — — — Total $ 229,768 $ 584,278 $ 371,176 $ 286,170 $ 144,927 $ 420,053 $ 271,543 $ 2,307,915 As of December 31, 2020, the risk category of loans by class of loans is as follows. Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized 2020 2019 2018 2017 2016 Prior Cost Basis Total (in thousands) December 31, 2020 Commercial - commercial and industrial: Risk rating Pass $ 358,320 $ 130,466 $ 94,596 $ 44,706 $ 35,098 $ 16,621 $ 179,521 $ 859,328 Special mention 1,260 11,475 26,683 540 684 310 24,844 65,796 Substandard — 4,069 7,917 2,436 997 5,474 6,779 27,672 Doubtful — — 9 — — — — 9 Total commercial - commercial and industrial $ 359,580 $ 146,010 $ 129,205 $ 47,682 $ 36,779 $ 22,405 $ 211,144 $ 952,805 Commercial - commercial real estate: Risk rating Pass $ 88,246 $ 160,205 $ 146,807 $ 93,956 $ 123,959 $ 213,204 $ 9,189 $ 835,566 Special mention — 21,964 1,534 — 865 4,142 175 28,680 Substandard 5,328 6,102 4,323 3,262 9,674 16,166 — 44,855 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 93,574 $ 188,271 $ 152,664 $ 97,218 $ 134,498 $ 233,512 $ 9,364 $ 909,101 Commercial - construction and land: Risk rating Pass $ 71,828 $ 57,807 $ 4,407 $ — $ — $ 720 $ 6,012 $ 140,774 Special mention — — 2,665 — 2,156 — — 4,821 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 71,828 $ 57,807 $ 7,072 $ — $ 2,156 $ 720 $ 6,012 $ 145,595 Residential - mortgages: Risk rating Pass $ 9,848 $ 2,862 $ 14,040 $ 747 $ 2,817 $ 307 $ — $ 30,621 Special mention 1,237 — 857 753 — — — 2,847 Substandard — — 179 — 26 110 — 315 Doubtful — — — — — — — — Total residential - mortgage loans $ 11,085 $ 2,862 $ 15,076 $ 1,500 $ 2,843 $ 417 $ — $ 33,783 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ — $ 24,717 $ 24,717 Special mention — — — — — — 726 726 Substandard — — — — — — — — Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ — $ 25,443 $ 25,443 Consumer: Risk rating Pass $ 162,671 $ 5,429 $ — $ 50 $ 64 $ 4,964 $ 2,888 $ 176,066 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 162,671 $ 5,429 $ — $ 50 $ 64 $ 4,964 $ 2,888 $ 176,066 Consumer - other: Risk rating Pass $ — $ — $ 4,609 $ 1,327 $ — $ 640 $ 5,748 $ 12,324 Special mention — 1,117 — — — — — 1,117 Substandard — — — 456 — — — 456 Doubtful — — — — — — — — Total consumer - other loans $ — $ 1,117 $ 4,609 $ 1,783 $ — $ 640 $ 5,748 $ 13,897 Total: Pass $ 690,913 $ 356,769 $ 264,459 $ 140,786 $ 161,938 $ 236,456 $ 228,075 $ 2,079,396 Special Mention 2,497 34,556 31,739 1,293 3,705 4,452 25,745 103,987 Substandard 5,328 10,171 12,419 6,154 10,697 21,750 6,779 73,298 Doubtful — — 9 — — — — 9 Total $ 698,738 $ 401,496 $ 308,626 $ 148,233 $ 176,340 $ 262,658 $ 260,599 $ 2,256,690 The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of March 31, 2021 and December 31, 2020: As of March 31, 2021 Nonaccrual Nonaccrual Loans Past With No With Due Over Allowance for Allowance for Total 89 Days Credit Losses Credit Losses Nonaccrual Still Accruing Commercial loans: Commercial and industrial $ 111 $ 1,476 $ 1,587 $ — Commercial real estate 13 — 13 — Total commercial loans 124 1,476 1,600 — Residential mortgages 26 179 205 251 Total loans $ 150 $ 1,655 $ 1,805 $ 251 As of December 31, 2020 Nonaccrual Nonaccrual Loans Past With No With Due Over Allowance for Allowance for Total 89 Days Credit Losses Credit Losses Nonaccrual Still Accruing Commercial loans: Commercial and industrial $ 2,597 $ 934 $ 3,531 $ — Commercial real estate 42 — 42 — Total commercial loans 2,639 934 3,573 — Residential mortgages 205 — 205 1,084 Total loans $ 2,844 $ 934 $ 3,778 $ 1,084 The gross additional interest income that would have been earned during the three months ended March 31, 2021 and 2020 had performing TDRs performed in accordance with the original terms is immaterial. Atlantic Capital recognized interest income on nonaccrual loans of $19,000 and $31,000 during the three months ended March 31, 2021 and 2020, respectively. The following table presents the amortized cost basis of collateral dependent impaired loans by class of loans as of March 31, 2021 and December 31, 2020: As of March 31, 2021 Real Business SBA Property Equipment Assets Guaranty Total Commercial and industrial $ 12 $ — $ — $ 112 $ 124 Residential mortgages 26 — — — 26 Total loans $ 38 $ — $ — $ 112 $ 150 As of December 31, 2020 Real Business SBA Property Equipment Assets Guaranty Total Commercial and industrial $ 2,165 $ 262 $ 150 $ 212 $ 2,789 Residential mortgages 205 — — — 205 Total loans $ 2,370 $ 262 $ 150 $ 212 $ 2,994 Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of March 31, 2021 and December 31, 2020 by class of loans. As of March 31, 2021 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 149 $ 3,921 $ 95 $ 1,587 $ 5,752 $ 948,301 $ 954,053 Commercial real estate 2,959 1,354 — 13 4,326 937,765 942,091 Construction and land — — — — — 142,796 142,796 Residential mortgages 638 507 156 205 1,506 30,311 31,817 Home equity — — — — — 26,293 26,293 Consumer 8,472 3,441 — — 11,913 198,952 210,865 Total Loans $ 12,218 $ 9,223 $ 251 $ 1,805 $ 23,497 $ 2,284,418 $ 2,307,915 As of December 31, 2020 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 1,166 $ 1,749 $ 817 $ 3,531 $ 7,263 $ 945,542 $ 952,805 Commercial real estate 4,008 357 — 42 4,407 904,694 909,101 Construction and land — — — — — 145,595 145,595 Residential mortgages 479 925 267 205 1,876 31,907 33,783 Home equity — — — — — 25,443 25,443 Consumer 10,374 5,776 — — 16,150 173,813 189,963 Total Loans $ 16,027 $ 8,807 $ 1,084 $ 3,778 $ 29,696 $ 2,226,994 $ 2,256,690 The following table presents loans repurchased and/or cash proceeds from loans sold during the three months ended March 31, 2021 and March 31, 2020 by portfolio class. Of the loans sold where the Company has continuing involvement, $3.4 million and $8.4 million were past due thirty days or greater at March 31, 2021 and December 31, 2020, respectively. These amounts are included in the past due table above. For the three months ended March 31, 2021 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 659 $ 2,708 $ - $ 3,367 SBA Sales 8,214 4,925 - 13,139 Total Loans $ 8,873 $ 7,633 $ — $ 16,506 For the three months ended March 31, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 691 $ 1,467 $ - $ 2,158 SBA Sales 5,964 158 277 6,399 Total Loans $ 6,655 $ 1,625 $ 277 $ 8,557 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | NOTE 6 – GOODWILL AND INTANGIBLE ASSETS Atlantic Capital tests goodwill for impairment annually in the fourth quarter. In assessing the possibility that the Company's fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, Atlantic Capital considers all available evidence, including (i) downward revisions to internal forecasts or decreases in market multiples (and the magnitude thereof), if any, and (ii) declines in market capitalization below book value (and the magnitude and duration of those declines), if any. The October 1, 2020 annual impairment test indicated that no impairment existed surrounding goodwill. Atlantic Capital continued to consider the market conditions generated by the COVID-19 pandemic during the first three months of 2021 to assess events and circumstances through the date of the filing of this Quarterly Report on Form 10-Q that could potentially indicate goodwill impairment including analyzing the impacts from the COVID-19 pandemic. There were no triggering events requiring an impairment test during the first three months of 2021. The following table presents the balances for goodwill and other intangible assets: March 31, December 31, 2021 2020 (in thousands) Servicing assets, net $ 2,688 $ 2,731 Total intangibles subject to amortization, net 2,688 2,731 Goodwill 19,925 19,925 Total goodwill and other intangible assets, net $ 22,613 $ 22,656 |
Servicing Assets
Servicing Assets | 3 Months Ended |
Mar. 31, 2021 | |
Servicing Assets | |
Servicing Assets | NOTE 7 – SERVICING ASSETS SBA Servicing Assets SBA servicing assets are initially recorded at fair value. Subsequently, Atlantic Capital accounts for SBA servicing assets using the amortization method and they are included in other intangibles, net on the Consolidated Balance Sheets. As of March 31, 2021 and December 31, 2020, the balance of SBA loans sold and serviced by Atlantic Capital totaled $194.9 million and $192.9 million, respectively. Changes in the balance of servicing assets for the three months ended March 31, 2021 and 2020 are presented in the following table . Three Months Ended March 31, SBA Loan Servicing Assets 2021 2020 (in thousands) Beginning carrying value, net $ 2,569 $ 2,731 Additions 235 105 Amortization (247) (313) Ending carrying value $ 2,557 $ 2,523 At March 31, 2021 and December 31, 2020, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Assets March 31, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 2,907 $ 2,907 Weighted average life 3.19 years 3.17 years Prepayment speed: 18.44 % 18.03 % Decline in fair value due to a 10% adverse change $ (143) $ (123) Decline in fair value due to a 20% adverse change $ (274) $ (236) Weighted average discount rate 11.26 % 12.49 % Decline in fair value due to a 100 bps adverse change $ (69) $ (59) Decline in fair value due to a 200 bps adverse change $ (135) $ (115) The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. TriNet Servicing Assets TriNet servicing rights are initially recorded at fair value. Subsequently, Atlantic Capital accounts for TriNet servicing rights using the amortization method and they are included in other intangibles, net. Changes in the balance of TriNet servicing assets for the three months ended March 31, 2021 and 2020 are presented in the following table. Three Months Ended March 31, TriNet Servicing Assets 2021 2020 (in thousands) Beginning carrying value, net $ 162 $ 296 Amortization (31) (34) Ending carrying value $ 131 $ 262 At March 31, 2021 and December 31, 2020, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the TriNet Servicing Assets March 31, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 276 $ 298 Weighted average life 4.36 years 4.58 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (3) $ (3) Decline in fair value due to a 20% adverse change $ (5) $ (6) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (5) $ (5) Decline in fair value due to a 200 bps adverse change $ (9) $ (11) The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | NOTE 8 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) for Atlantic Capital consists of changes in net unrealized gains and losses on investment securities available-for-sale and derivatives. The following tables present a summary of the changes in accumulated other comprehensive income (loss) balances for the applicable periods. For the Three Months Ended March 31, 2021 Income Tax Pre-Tax (Expense) After-Tax Amount Benefit (1) Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 19,289 $ (4,782) $ 14,507 Unrealized net gains (losses) on investment securities available-for-sale (7,508) 1,857 (5,651) Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale (2) (2) — (2) Unrealized net gains (losses) on derivatives (4,081) 1,009 (3,072) Accumulated other comprehensive income (loss) end of period $ 7,698 $ (1,916) $ 5,782 For the Three Months Ended March 31, 2020 Income Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 6,081 $ (1,520) $ 4,561 Unrealized net gains (losses) on investment securities available-for-sale 4,394 (1,077) 3,317 Unrealized net gains (losses) on derivatives 8,582 (2,114) 6,468 Accumulated other comprehensive income (loss) end of period $ 19,057 $ (4,711) $ 14,346 (1) The tax impact of each component of AOCI is calculated using an effective tax rate of approximately 25%. (2) Reclassification amount is recognized in gains on sales of securities in the consolidated statements of income. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Common Share | |
Earnings Per Common Share | NOTE 9 – EARNINGS PER COMMON SHARE Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding and the dilutive effects of the shares awarded under the stock option plan, based on the treasury stock method using an average fair market value of the stock during the respective periods. The following table represents the earnings per share calculations for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (in thousands, except share and per share amounts) Net income available to common shareholders $ 13,362 $ 2,124 Weighted average shares outstanding Basic (1) 20,380,066 21,689,038 Effect of dilutive securities: Stock options and performance share awards 122,118 153,137 Diluted 20,502,184 21,842,175 Net income per common share: Basic $ 0.66 $ 0.10 Diluted $ 0.65 $ 0.10 (1) Unvested restricted shares are participating securities and included in basic share calculations. Stock options outstanding of 109,540 at March 31, 2020 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. These awards were considered anti-dilutive because the exercise price of the award was higher than the market value of the shares. There were no stock options outstanding at March 31, 2021 whose exercise price of the award was higher than the market value of the shares. The Amended and Restated Articles of Incorporation of Atlantic Capital authorize Atlantic Capital to issue 110,000,000 shares of capital stock, of which 10,000,000 shares are designated as preferred stock, no par value per share, and 100,000,000 shares are designated as common stock, no par value per share. Atlantic Capital had 20,354,077 shares of common stock issued and outstanding at . At December 31, 2020, 20,394,912 shares of common stock were issued and outstanding The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. No dividends were paid by the Bank to Atlantic Capital during the three months ended March 31, 2021. For the three months ended March 31, 2020, the Bank paid dividends totaling $12.5 million to Atlantic Capital. Banking laws and other regulations limit the amount of dividends a bank subsidiary may pay without prior regulatory approval. Additionally, Atlantic Capital’s ability to pay dividends to its shareholders will depend on the ability of the Bank to pay dividends to Atlantic Capital. The Bank is subject to regulatory restrictions on the payment of cash dividends, which generally may be paid only from current earnings. During the first quarter of 2020, the Company completed the $85.0 million stock repurchase program authorized by the Board of Directors on November 14, 2018. On March 4, 2020, the Board of Directors authorized a new stock repurchase program pursuant to which the Company may purchase up to $25 million of its issued and outstanding common stock. The repurchase program commenced immediately with respect to $15 million of stock, and the remaining $10 million is subject to regulatory approval of a dividend from the Bank to Atlantic Capital. The timing and amounts of any repurchases will depend on certain factors, including but not limited to market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market purchases, block trades, negotiated private transactions and pursuant to a trading plan that will be adopted in accordance with Rule 10b-18 or Rule 10b5-1 under the Securities Exchange Act of 1934. Any repurchased shares will constitute authorized but unissued shares. During the three months ended March 31, 2021, the Company repurchased 222,193 shares totaling $4.2 million. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2021 | |
Derivatives and Hedging | |
Derivatives and Hedging | NOTE 10 – DERIVATIVES AND HEDGING Risk Management Atlantic Capital’s objectives in using interest rate derivatives are to stabilize net interest revenue and to manage its exposure to interest rate movements. To accomplish these objectives, Atlantic Capital primarily uses interest rate swaps as part of its interest rate risk management strategy. Cash Flow Hedges At March 31, 2021, Atlantic Capital’s interest rate swaps designated as cash flow hedges involve the payment of floating-rate amounts to a counterparty in exchange for receiving fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At March 31, 2021 and December 31, 2020, Atlantic Capital had interest rate swaps designated as cash flow hedges with aggregate notional amounts of $150.0 million and $125.0 million, respectively. Changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Atlantic Capital expects that approximately $1.9 million will be reclassified as an increase to loan interest income over the next twelve months related to these cash flow hedges. Customer Swaps Atlantic Capital also enters into derivative contracts, which consist of interest rate swaps, to facilitate the needs of clients desiring to manage interest rate risk. These swaps are not designated as accounting hedges under ASC 815, Derivatives and Hedging Atlantic Capital’s derivative instruments are recorded at fair value in other assets and accrued interest receivable and other liabilities and accrued interest payable in the Consolidated Balance Sheets. The changes in the fair value of the derivative instruments are recognized in derivatives income in the Consolidated Statements of Income and in net increase/decrease in other assets and accrued expenses and other liabilities in the Consolidated Statements of Cash Flows. At March 31, 2021 and December 31, 2020, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $67.6 million and $68.4 million, respectively. Atlantic Capital acquired a loan level hedging program, which First Security utilized to accommodate clients preferring a fixed rate loan. The loan documents include an addendum with a zero premium collar. The zero premium collar is a cap and a floor at the same interest rate, resulting in a fixed rate to the borrower. To hedge this embedded option, First Security entered into a dealer facing trade exactly mirroring the terms in the loan addendum. At March 31, 2021 and December 31, 2020, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $135.7 million and $137.1 million, respectively. Counterparty Credit Risk As a result of its derivative contracts, Atlantic Capital is exposed to credit risk. Specifically approved counterparties and exposure limits are defined. Quarterly, the customer derivative contracts and related counterparties are evaluated for credit risk and an adjustment is made to the contract’s fair value. This adjustment is recognized in the Consolidated Statements of Income. In accordance with the interest rate agreements with derivatives dealers, Atlantic Capital may be required to post margin to these counterparties. At March 31, 2021 and December 31, 2020, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $9.0 million and $11.8 million, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the Consolidated Balance Sheets. Atlantic Capital has master netting agreements with the derivatives dealers with which it does business, but reflects gross assets and liabilities on the Consolidated Balance Sheets. In conjunction with the FASB’s fair value measurement guidance, management made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis. To accommodate clients, Atlantic Capital occasionally enters into credit risk participation agreements with counterparty banks to accept a portion of the credit risk related to interest rate swaps. This allows clients to execute an interest rate swap with one bank while allowing for distribution of the credit risk among participating members. Credit risk participation agreements arise when Atlantic Capital contracts with other financial institutions, as a guarantor, to share credit risk associated with certain interest rate swaps. These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap. At March 31, 2021 and December 31, 2020, Atlantic Capital had credit risk participation agreements with a notional amount of $5.3 million and $5.8 million, respectively. The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of March 31, 2021 and December 31, 2020: Derivatives designated as hedging instruments under ASC 815 March 31, 2021 December 31, 2020 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 150,000 $ 6,677 $ 125,000 $ 10,799 Cash flow hedge of LIBOR based loans Other liabilities $ — $ — $ — $ — Derivatives not designated as hedging instruments under ASC 815 March 31, 2021 December 31, 2020 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 33,820 $ 1,524 $ 34,224 $ 2,057 Zero premium collar Other assets 67,869 5,280 68,527 9,328 $ 101,689 $ 6,804 $ 102,751 $ 11,385 Dealer offsets to customer swap positions Other liabilities $ 33,820 $ 1,545 $ 34,224 $ 2,087 Dealer offset to zero premium collar Other liabilities 67,869 5,320 68,527 9,398 Credit risk participation Other liabilities 5,313 3 5,782 11 $ 107,002 $ 6,868 $ 108,533 $ 11,496 The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income for the three months ended March 31, 2021 and 2020. Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivatives (in thousands) Income on Derivatives Three Months Ended March 31, 2021 2020 Interest rate products Other income $ 39 $ (254) Other contracts Other income 8 8 Total $ 47 $ (246) The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three months ended March 31, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Three Months Ended March 31, Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified from OCI on Derivatives Accumulated OCI in Income (Effective Portion) (Effective Portion) (in thousands) 2021 2020 Location 2021 2020 Interest rate swaps $ (4,123) $ 5,599 Interest income $ (614) $ (142) |
Other Borrowings and Long Term
Other Borrowings and Long Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Other Borrowings and Long Term Debt | |
Other Borrowings and Long Term Debt | NOTE 11 – OTHER BORROWINGS AND LONG TERM DEBT There were no FHLB borrowings outstanding as of March 31, 2021 and December 31, 2020. There was no interest expense for FHLB borrowings for the three months ended March 31, 2021 or 2020. At March 31, 2021, the Company had available line of credit commitments with the FHLB totaling $1.1 billion, with no outstanding FHLB advances. However, based on actual collateral pledged, $86.2 million was available. At March 31, 2021, the Company had an available line of credit based on the collateral available of $275.8 million with the FRB. There was no interest expense on federal funds purchased for the three months ended March 31, 2021. Interest expense on federal funds purchased for the three months ended March 31, 2020 was $32,000. On August 20, 2020, Atlantic Capital issued 5.50% fixed-to-floating rate subordinated notes (the “Notes”) totaling $75 million in aggregate principal amount and callable at par plus accrued but unpaid interest on September 1, 2025. The Notes are due September 1, 2030 and bear a fixed rate of interest of 5.50% per year until September 1, 2025. From September 1, 2025 to the maturity date, the interest rate will be a floating rate equal to the three-month SOFR plus 536.3 basis points. The Notes were priced at 100% of their par value and qualify as Tier 2 regulatory capital. Subordinated debt is summarized as follows: March 31, 2021 December 31, 2020 (in thousands) Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 5.50% until September 1, 2025 $ 75,000 $ 75,000 Principal amount of subordinated debt 75,000 75,000 Less debt issuance costs 1,122 1,193 Subordinated debt, net $ 73,878 $ 73,807 All subordinated debt outstanding at March 31, 2021 matures after more than five years. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-Based Compensation | |
Share-Based Compensation | NOTE 12 – SHARE-BASED COMPENSATION Atlantic Capital sponsors a stock incentive plan for the benefit of directors and employees. Under the Company’s 2015 Stock Incentive Plan (as amended and restated effective May 16, 2018), there were approximately 4,525,000 shares reserved for issuance to directors, employees, and independent contractors of Atlantic Capital and its affiliates. The Compensation Committee has the authority to grant the following: an incentive or nonqualified option; a SAR, which includes a related SAR or a freestanding SAR; a restricted award (including a restricted stock award or a restricted stock unit award); a performance award (including a performance share award or a performance unit award); a phantom stock award; an other stock-based award; a cash bonus award; a dividend equivalent award; or any other award granted under the plan At March 31, 2021, approximately 2,845,000 additional awards could be granted under the plan. Through , incentive stock options, nonqualified stock options, restricted stock awards, performance share awards, and other stock-based awards have been granted under the plan. Stock options are granted at a price which is no less than the fair market value of a share of Atlantic Capital common stock on the grant date. Stock options generally vest over three years and expire after ten years . The Company accounts for stock options in accordance with FASB ASC 718, Stock Compensation , which requires the Company to recognize the costs of its employee stock option awards in its Consolidated Statements of Operations. According to ASC 718, the total cost of the Company’s share-based awards is equal to their grant date fair value and is recognized as expense on a straight-line basis over the vesting period of the awards. There was no stock-based compensation expense recognized by the Company for stock option grants for the three months ended Stock-based compensation expense for stock option grants was $18,000 for the three months ended . There was no unrecognized stock-based compensation expense related to stock option grants for the three months ended and $42,000 for the three months ended March 31, 2020. At and 2020, the weighted average period over which this unrecognized expense is expected to be recognized was 0 years and 0.6 years, respectively. The weighted average remaining contractual life of options outstanding at was 3.5 years. The Company estimates the fair value of its options awards using the Black-Scholes option pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. No stock options were granted/modified during the three months ended March 31, 2021 or 2020. The following table represents stock option activity for the three months ended March 31, 2021: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2020 214,890 $ 11.90 Granted/modified — — Exercised (134,850) 10.61 Forfeited — — Expired — — Outstanding, March 31, 2021 80,040 $ 14.09 3.52 $ 802 Exercisable, March 31, 2021 80,040 $ 14.09 3.52 $ 802 The total fair value of option shares vested for both the three months ended and 2020 was $0 . In 2020 and 2021, the Company granted performance share awards under Atlantic Capital’s 2015 Stock Incentive Plan to members of executive management to evidence awards granted under the LTIP. The Company also granted restricted stock awards to certain employees in 2021 and 2020 under the 2015 Stock Incentive Plan. Compensation expense for restricted stock is based on the fair value of restricted stock awards at the time of grant, which is equal to the value of Atlantic Capital’s common stock on the date of grant. Compensation expense for performance share awards are based on the fair value of Atlantic Capital’s stock at the grant date adjusted for market conditions, as well as the subsequent achievement of performance conditions over the vesting period. The value of restricted stock awards and performance share awards that are expected to vest is amortized into expense over the vesting period. Restricted stock awards may cliff vest over 1 - 3 years or vest on a pro-rata basis, generally over 3 years . The market value at the date of award is amortized by charges to compensation expense over the vesting period. Compensation expense related to restricted stock and performance shares for the three months ended was $1.0 million and $383,000 for the three months ended . Unrecognized compensation expense associated with restricted stock was $4.0 million and $3.1 million as of March 31, 2021 and 2020, respectively. At March 31, 2021 and March 31, 2020, the weighted average period over which this unrecognized expense is to be recognized was 2.2 years and 2.4 years, respectively. During the three months ended March 31, 2021 and 2020, there were 133,130 and 123,833 restricted stock and performance share awards granted at a weighted average grant price of $18.77 and $19.15 per share, respectively. The Company did not modify any options during the three months ended March 31, 2021 or 2020. The following table represents restricted stock and performance share award activity for the three months ended March 31, 2021: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2020 435,748 $ 16.80 Granted/modified 133,130 18.77 Vested (86,266) 22.01 Forfeited (13,437) 18.59 Outstanding, March 31, 2021 469,175 $ 16.62 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 13 – FAIR VALUE MEASUREMENTS Accounting standards defines fair value as the price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three-level measurement hierarchy: Level 1 – Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts. Level 2 – Assets or liabilities valued based on observable market data for similar instruments. Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market, instruments valued based on the best available data, some of which is internally-developed, and risk premiums that a market participant would require. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at March 31, 2021 and December 31, 2020. Fair Value Measurements at March 31, 2021 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total (in thousands) Securities available-for-sale: U.S. states and political subdivisions $ — $ 79,408 $ — $ 79,408 Trust preferred securities — 4,808 — 4,808 Corporate debt securities — 20,633 — 20,633 Residential mortgage-backed securities — 246,544 — 246,544 Commercial mortgage-backed securities — 39,308 — 39,308 Total securities available-for-sale $ — $ 390,701 $ — $ 390,701 Interest rate derivative assets $ — $ 13,481 $ — $ 13,481 Interest rate derivative liabilities $ — $ 6,868 $ — $ 6,868 Fair Value Measurements at December 31, 2020 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Totals (in thousands) Securities available-for-sale: U.S. states and political subdivisions $ — $ 81,019 $ — $ 81,019 Trust preferred securities — 4,722 — 4,722 Corporate debt securities — 19,821 — 19,821 Residential mortgage-backed securities — 194,598 — 194,598 Commercial mortgage-backed securities — 35,263 — 35,263 Total securities available-for-sale $ — $ 335,423 $ — $ 335,423 Interest rate derivative assets $ — $ 22,184 $ — $ 22,184 Interest rate derivative liabilities $ — $ 11,496 $ — $ 11,496 For Level 3 securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. Atlantic Capital had no Level 3 securities as of March 31, 2021 and December 31, 2020. For the three months ended March 31, 2021 and 2020, there was no change in the methods and significant assumptions used to estimate fair value. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at March 31, 2021 and December 31, 2020. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value March 31, 2021 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 150 $ 150 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2020 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 2,844 $ 2,844 Level 3 loans consist of impaired loans which have been partially charged-off or have specific valuation allowances based on collateral value. The fair value of Level 3 assets is estimated based on the underlying collateral value. For loans which the cash proceeds from the sale of the underlying collateral is the expected source of repayment, the fair value of these loans was derived from internal estimates of the underlying collateral incorporating market data, including third party appraisals or evaluations, when available. Appraised values may be discounted based on management’s assessment of the level of inactivity in the real estate market and other markets for the underlying collateral, changes in market conditions from the time of the valuation, and other information that in management’s judgment may affect the value. Impaired loans are evaluated on at least a quarterly basis and adjusted accordingly. Assets and Liabilities Not Measured at Fair Value For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates the reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For loans held for investment, fair value is measured using the exit price notion. For off-balance sheet derivative instruments, fair value is estimated as the amount that Atlantic Capital would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts. The short maturity of Atlantic Capital’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits in other banks, other short-term investments, FRB stock and FHLB stock. The fair value of securities equals quoted market prices, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities or dealer quotes. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value. 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 the premium or discount on any particular financial instrument that could result from the sale of Atlantic Capital’s entire holdings. Because no ready market exists for a significant portion of Atlantic Capital’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature, involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Off-balance sheet financial instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial. The following table presents the estimated fair values of Atlantic Capital’s financial instruments at March 31, 2021 and December 31, 2020. Fair Value Measurements at March 31, 2021 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 32,850 $ 32,850 $ — $ — Interest-bearing deposits in banks 612,966 612,966 — — Total securities available-for-sale 390,701 — 390,701 — Total securities held-to-maturity 222,535 — 228,422 — FHLB stock 1,808 — — 1,808 FRB stock 10,124 — — 10,124 Loans held for investment, net 2,300,814 — — 2,377,979 Loans held for sale 1,847 — 1,847 — Derivative assets 13,481 — 13,481 — Financial liabilities: Deposits $ 3,277,692 $ — $ 3,281,591 $ — Subordinated debt 73,878 — 75,864 — Derivative financial instruments 6,868 — 6,868 — Fair Value Measurements at December 31, 2020 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 16,865 $ 16,865 $ — $ — Interest-bearing deposits in banks 636,537 636,537 — — Total securities available-for-sale 335,423 — 335,423 — Total securities held-to-maturity 200,156 — 214,584 — FHLB stock 2,619 — — 2,619 FRB stock 10,080 — — 10,080 Loans held for investment, net 2,249,036 — — 2,285,222 Derivative assets 22,184 — 22,184 — Financial liabilities: Deposits $ 3,161,508 $ — $ 3,120,246 $ — Subordinated debt 73,807 — 77,814 — Derivative financial instruments 11,496 — 11,496 — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 14 – COMMITMENTS AND CONTINGENCIES Atlantic Capital 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 financial instruments include commitments to extend credit and letters of credit, most of which are standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amounts of these instruments reflect the extent of involvement Atlantic Capital has in particular classes of financial instruments. Standby letters of credit are written conditional commitments issued by Atlantic Capital to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most letters of credit expire in less than one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Atlantic Capital’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Atlantic Capital uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit as well as a summary of minimum lease payments at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 789,869 $ 813,757 Standby letters of credit 15,133 16,141 $ 805,002 $ 829,898 Minimum lease payments $ 17,483 $ 17,994 The Company also had commitments related to investments in SBICs totaling $1.9 million and $2.0 million at March 31, 2021 and December 31, 2020, respectively. In addition, Atlantic Capital had private equity commitments totaling $1.5 million at both March 31, 2021 and December 31, 2020. From time to time, Atlantic Capital, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on Atlantic Capital’s financial position or results of operations. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition | |
Revenue Recognition | NOTE 15 – REVENUE RECOGNITION Service Charges on Deposit Accounts Service charges represent general service fees for monthly account maintenance and activity, or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed, such as a wire transfer or ATM withdrawal. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. The following table presents service charges by type of service provided for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 (in thousands) Deposit account analysis fees and charges $ 1,406 $ 934 ATM fees 25 20 NSF fees 12 18 Wire fees 28 133 Foreign exchange fees 192 126 Other — 1 Total service charges $ 1,663 $ 1,232 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2021 and December 31, 2020, the Company did not have any significant contract balances. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Leases | NOTE 16 – LEASES Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on the Consolidated Balance Sheets. The Company does not currently have any significant finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent its 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 a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the Consolidated Statements of Income. The Company’s leases relate primarily to office space and bank branches with remaining lease terms of generally 1 5 The Company’s leases include variable lease payments with annual increases based on changes in market rental rates. Rent expense, which was included in occupancy expense in the Consolidated Statements of Income, for the three months ended March 31, 2021 and 2020 was $503,000 and $603,000, respectively. The table below summarizes the Company’s net lease cost: For the Three Months Ended March 31, 2021 2020 (in thousands) Operating lease cost $ 501 $ 594 Short-term lease cost 2 9 Sublease income (92) (90) Net lease cost $ 411 $ 513 The tables below summarize other information related to the Company’s operating leases: For the Three Months Ended March 31, 2021 2020 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 511 $ 560 For the Three Months Ended March 31, 2021 2020 Weighted-average remaining lease term - operating leases 8.1 years 8.8 years Weighted-average discount rate - operating leases 3.03 % 3.05 % The table below summarizes the maturity of remaining lease liabilities: March 31, 2021 (in thousands) Twelve Months Ended: March 31, 2022 $ 2,263 March 31, 2023 2,352 March 31, 2024 1,996 March 31, 2025 1,909 March 31, 2026 1,880 Thereafter 7,083 Total future minimum lease payments 17,483 Less: Interest (3,063) Present value of net future minimum lease payments $ 14,420 |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies and Basis of Presentation | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary, Atlantic Capital Bank, N.A. (the “Bank”), conform to GAAP and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Certain prior period amounts have been reclassified to conform to the current year presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s Annual Report on Form 10-K. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Offsetting | |
Offsetting Assets | The following table presents a summary of amounts outstanding in derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements and amounts received or pledged as collateral at March 31, 2021 and December 31, 2020. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral March 31, 2021 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 13,480 $ — $ 13,480 $ — $ (6,070) $ 7,410 Total $ 13,480 $ — $ 13,480 $ — $ (6,070) $ 7,410 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 6,868 $ — $ 6,868 $ (6,868) $ 330 $ (6,538) Total $ 6,868 $ — $ 6,868 $ (6,868) $ 330 $ (6,538) Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2020 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 22,184 $ — $ 22,184 $ — $ — $ 22,184 Total $ 22,184 $ — $ 22,184 $ — $ — $ 22,184 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 11,496 $ — $ 11,496 $ (11,496) $ 330 $ (11,166) Total $ 11,496 $ — $ 11,496 $ (11,496) $ 330 $ (11,166) |
Offsetting Liabilities | The following table presents a summary of amounts outstanding in derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements and amounts received or pledged as collateral at March 31, 2021 and December 31, 2020. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral March 31, 2021 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 13,480 $ — $ 13,480 $ — $ (6,070) $ 7,410 Total $ 13,480 $ — $ 13,480 $ — $ (6,070) $ 7,410 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 6,868 $ — $ 6,868 $ (6,868) $ 330 $ (6,538) Total $ 6,868 $ — $ 6,868 $ (6,868) $ 330 $ (6,538) Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2020 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 22,184 $ — $ 22,184 $ — $ — $ 22,184 Total $ 22,184 $ — $ 22,184 $ — $ — $ 22,184 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives $ 11,496 $ — $ 11,496 $ (11,496) $ 330 $ (11,166) Total $ 11,496 $ — $ 11,496 $ (11,496) $ 330 $ (11,166) |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Securities | |
Schedule of Securities Available-For-Sale and Held-to-Maturity Reconciliation | The following table presents the amortized cost, fair value, and allowance for credit losses on securities available-for-sale and held-to-maturity at March 31, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) March 31, 2021 Available-For-Sale U.S. states and political divisions $ 77,328 $ 2,080 $ — $ 79,408 Trust preferred securities 4,841 — (33) 4,808 Corporate debt securities 20,519 166 (52) 20,633 Residential mortgage-backed securities 248,823 3,284 (5,563) 246,544 Commercial mortgage-backed securities 37,722 1,781 (195) 39,308 Total available-for-sale 389,233 7,311 (5,843) 390,701 Gross Gross Allowance Net Amortized Unrecognized Unrecognized for Credit Carrying Cost Gains Losses Fair Value Losses Value Held-to-Maturity U.S. states and political divisions 222,549 9,105 (3,232) 228,422 (14) 222,535 Total held-to-maturity 222,549 9,105 (3,232) 228,422 (14) 222,535 Total securities $ 611,782 $ 16,416 $ (9,075) $ 619,123 Gross Gross December 31, 2020 Amortized Unrealized Unrealized Available-For-Sale Cost Gains Losses Fair Value U.S. states and political divisions $ 78,117 $ 2,906 $ (4) $ 81,019 Trust preferred securities 4,835 — (113) 4,722 Corporate debt securities 19,526 295 — 19,821 Residential mortgage-backed securities 190,817 4,023 (242) 194,598 Commercial mortgage-backed securities 33,150 2,123 (10) 35,263 Total available-for-sale 326,445 9,347 (369) 335,423 Gross Gross Allowance Net Amortized Unrecognized Unrecognized for Credit Carrying Cost Gains Losses Fair Value Losses Value Held-to-Maturity U.S. states and political divisions 200,170 14,439 (25) 214,584 (14) 200,156 Total held-to-maturity 200,170 14,439 (25) 214,584 (14) 200,156 Total securities $ 526,615 $ 23,786 $ (394) $ 550,007 |
Schedule of allowance for credit losses | The following table presents the activity in the allowance for credit losses on securities held-to-maturity by major security type for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ 10 $ 4 $ 14 Provision for credit losses — — — Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 10 $ 4 $ 14 For the Three Months Ended March 31, 2020 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ — $ — $ — Impact of adopting ASU 2016-13 13 7 20 Provision for credit losses (3) (3) (6) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 10 $ 4 $ 14 |
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at March 31, 2021. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-For-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) Within 1 year $ 8,519 $ 8,685 $ — $ — After 1 year through 5 years 9,608 9,742 — — After 5 years through 10 years 34,247 34,912 312 314 After 10 years 50,314 51,510 222,237 228,108 102,688 104,849 222,549 228,422 Residential mortgage-backed securities 248,823 246,544 — — Commercial mortgage-backed securities 37,722 39,308 — — Total $ 389,233 $ 390,701 $ 222,549 $ 228,422 |
Schedule of amortized cost of debt securities held-to-maturity | Held-to-Maturity U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total March 31, 2021 (in thousands) Aaa $ 60,808 $ 27,933 $ 88,741 Aa1 41,174 17,957 59,131 Aa2 34,019 22,825 56,844 Aa3 11,590 4,042 15,632 A1 2,201 — 2,201 Total $ 149,792 $ 72,757 $ 222,549 |
Continuous Unrealized Loss Position, Fair Value | The following table summarizes available-for-sale and held-to-maturity securities in an unrealized loss position as of March 31, 2021 and December 31, 2020. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2021 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale Trust preferred securities $ — $ — $ 4,808 $ (33) $ 4,808 $ (33) Corporate debt securities 9,948 (52) — — 9,948 (52) Residential mortgage-backed securities 153,169 (5,550) 191 (13) 153,360 (5,563) Commercial mortgage-backed securities 3,563 (195) — — 3,563 (195) Total available-for-sale 166,680 (5,797) 4,999 (46) 171,679 (5,843) Held-to-Maturity U.S. states and political divisions 58,272 (3,232) — — 58,272 (3,232) Total held-to-maturity 58,272 (3,232) — — 58,272 (3,232) Total securities $ 224,952 $ (9,029) $ 4,999 $ (46) $ 229,951 $ (9,075) December 31, 2020 Available-for-Sale U.S. states and political divisions $ — $ — $ 1,987 $ (4) $ 1,987 $ (4) Trust preferred securities — — 4,721 (113) 4,721 (113) Residential mortgage-backed securities 68,042 (231) 205 (11) 68,247 (242) Commercial mortgage-backed securities 3,750 (10) — — 3,750 (10) Total available-for-sale 71,792 (241) 6,913 (128) 78,705 (369) Held-to-Maturity U.S. states and political divisions 2,241 (25) — — 2,241 (25) Total held-to-maturity 2,241 (25) — — 2,241 (25) Total securities $ 74,033 $ (266) $ 6,913 $ (128) $ 80,946 $ (394) |
Schedule of Realized Gain (Loss) on Securities | Three Months Ended March 31, 2021 2020 Proceeds from sales $ 750 $ — Gross realized gains $ 2 $ — Gross realized losses — — Net gains on sales of securities $ 2 $ — |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans and Allowance for Loan Losses | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio as of March 31, 2021 and December 31, 2020, is summarized below. March 31, 2021 December 31, 2020 (in thousands) Loans held for sale Loans held for sale $ 1,847 $ — Total loans held for sale $ 1,847 $ — Loans held for investment Commercial loans: Commercial and industrial $ 954,053 $ 952,805 Commercial real estate 942,091 909,101 Construction and land 142,796 145,595 Total commercial loans 2,038,940 2,007,501 Residential: Residential mortgages 31,817 33,783 Home equity 26,293 25,443 Total residential loans 58,110 59,226 Consumer 203,176 176,066 Other 7,689 13,897 Total loans 2,307,915 2,256,690 Less net deferred fees and other unearned income (7,101) (7,654) Less allowance for credit losses on loans (27,506) (31,818) Loans held for investment, net $ 2,273,308 $ 2,217,218 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the balance and activity in the allowance for credit losses on loans by portfolio segment for the three months ended March 31, 2021 and 2020. For the Three Months Ended March 31, 2021 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 30,221 $ 699 $ 898 $ 31,818 Provision for loan losses (3,799) (154) (121) (4,074) Loans charged-off (288) — — (288) Recoveries 50 — — 50 Total ending allowance balance $ 26,184 $ 545 $ 777 $ 27,506 For the Three Months Ended March 31, 2020 Commercial Residential Consumer Total Allowance for credit losses on loans (in thousands) Beginning balance $ 18,203 $ 145 $ 187 $ 18,535 Impact of adopting ASC 326 (947) 8 85 (854) Provision for loan losses 6,652 386 371 7,409 Loans charged-off (96) (125) — (221) Recoveries 18 1 8 27 Total ending allowance balance $ 23,830 $ 415 $ 651 $ 24,896 The decrease in the allowance for credit losses at March 31, 2021 compared to December 31, 2020 was due to an improvement in the CECL economic forecast along with credit rating upgrades for criticized and classified loans. |
Schedule of troubled debt restructurings on financing receivables | Number of Loans Outstanding Balance Increase in Allowance (in thousands) Three Months Ended March 31, 2020 Commercial and industrial 1 $ 67 $ 2 Commercial real estate 1 1,945 154 Total 2 $ 2,012 $ 156 |
Schedule of financing receivable modifications subsequent default | Three Months Ended March 31, 2021 Troubled debt restructurings that subsequently defaulted during the period within twelve months of their modification date: Number of Loans Outstanding Balance (in thousands) Commercial real estate 1 $ 12 Total 1 $ 12 Three Months Ended March 31, 2020 Number of Loans Outstanding Balance (in thousands) Commercial 2 $ 320 Total 2 $ 320 |
Schedule of Financing Receivable Credit Quality Indicators | As of March 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized 2021 2020 2019 2018 2017 Prior Cost Basis Total (in thousands) March 31, 2021 Commercial - commercial and industrial: Risk rating Pass $ 105,540 $ 299,781 $ 103,040 $ 80,096 $ 42,897 $ 52,271 $ 189,327 $ 872,952 Special mention — 1,004 15,562 25,119 495 390 24,243 66,813 Substandard 21 — 4,019 6,529 718 1,727 1,274 14,288 Doubtful — — — — — — — — Total commercial - commercial and industrial $ 105,561 $ 300,785 $ 122,621 $ 111,744 $ 44,110 $ 54,388 $ 214,844 $ 954,053 Commercial - commercial real estate: Risk rating Pass $ 28,232 $ 86,992 $ 159,789 $ 147,059 $ 94,317 $ 328,834 $ 24,680 $ 869,903 Special mention — — 22,377 1,492 — 14,612 258 38,739 Substandard — 5,281 6,022 6,381 3,223 12,542 — 33,449 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 28,232 $ 92,273 $ 188,188 $ 154,932 $ 97,540 $ 355,988 $ 24,938 $ 942,091 Commercial - construction and land: Risk rating Pass $ 96 $ 83,921 $ 51,725 $ 107 $ — $ — $ 2,505 $ 138,354 Special mention — — — 2,664 — 1,778 — 4,442 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 96 $ 83,921 $ 51,725 $ 2,771 $ — $ 1,778 $ 2,505 $ 142,796 Residential - mortgages: Risk rating Pass $ 2,188 $ 8,239 $ 3,825 $ 12,089 $ 739 $ 3,100 $ — $ 30,180 Special mention — 532 — 156 744 — — 1,432 Substandard — — — 179 — 26 — 205 Doubtful — — — — — — — — Total residential - mortgage loans $ 2,188 $ 8,771 $ 3,825 $ 12,424 $ 1,483 $ 3,126 $ — $ 31,817 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ 486 $ 25,081 $ 25,567 Special mention — — — — — — 726 726 Substandard — — — — — — — — Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ 486 $ 25,807 $ 26,293 Consumer: Risk rating Pass $ 93,592 $ 98,528 $ 3,903 $ — $ 22 $ 3,705 $ 3,426 $ 203,176 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 93,592 $ 98,528 $ 3,903 $ — $ 22 $ 3,705 $ 3,426 $ 203,176 Consumer - other: Risk rating Pass $ 99 $ — $ — $ 4,299 $ 1,317 $ 582 $ 23 $ 6,320 Special mention — — 914 — — — — 914 Substandard — — — — 455 — — 455 Doubtful — — — — — — — — Total consumer - other loans $ 99 $ — $ 914 $ 4,299 $ 1,772 $ 582 $ 23 $ 7,689 Total: Pass $ 229,747 $ 577,461 $ 322,282 $ 243,650 $ 139,292 $ 388,978 $ 245,042 $ 2,146,452 Special Mention — 1,536 38,853 29,431 1,239 16,780 25,227 113,066 Substandard 21 5,281 10,041 13,089 4,396 14,295 1,274 48,397 Doubtful — — — — — — — — Total $ 229,768 $ 584,278 $ 371,176 $ 286,170 $ 144,927 $ 420,053 $ 271,543 $ 2,307,915 As of December 31, 2020, the risk category of loans by class of loans is as follows. Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized 2020 2019 2018 2017 2016 Prior Cost Basis Total (in thousands) December 31, 2020 Commercial - commercial and industrial: Risk rating Pass $ 358,320 $ 130,466 $ 94,596 $ 44,706 $ 35,098 $ 16,621 $ 179,521 $ 859,328 Special mention 1,260 11,475 26,683 540 684 310 24,844 65,796 Substandard — 4,069 7,917 2,436 997 5,474 6,779 27,672 Doubtful — — 9 — — — — 9 Total commercial - commercial and industrial $ 359,580 $ 146,010 $ 129,205 $ 47,682 $ 36,779 $ 22,405 $ 211,144 $ 952,805 Commercial - commercial real estate: Risk rating Pass $ 88,246 $ 160,205 $ 146,807 $ 93,956 $ 123,959 $ 213,204 $ 9,189 $ 835,566 Special mention — 21,964 1,534 — 865 4,142 175 28,680 Substandard 5,328 6,102 4,323 3,262 9,674 16,166 — 44,855 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 93,574 $ 188,271 $ 152,664 $ 97,218 $ 134,498 $ 233,512 $ 9,364 $ 909,101 Commercial - construction and land: Risk rating Pass $ 71,828 $ 57,807 $ 4,407 $ — $ — $ 720 $ 6,012 $ 140,774 Special mention — — 2,665 — 2,156 — — 4,821 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 71,828 $ 57,807 $ 7,072 $ — $ 2,156 $ 720 $ 6,012 $ 145,595 Residential - mortgages: Risk rating Pass $ 9,848 $ 2,862 $ 14,040 $ 747 $ 2,817 $ 307 $ — $ 30,621 Special mention 1,237 — 857 753 — — — 2,847 Substandard — — 179 — 26 110 — 315 Doubtful — — — — — — — — Total residential - mortgage loans $ 11,085 $ 2,862 $ 15,076 $ 1,500 $ 2,843 $ 417 $ — $ 33,783 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ — $ 24,717 $ 24,717 Special mention — — — — — — 726 726 Substandard — — — — — — — — Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ — $ 25,443 $ 25,443 Consumer: Risk rating Pass $ 162,671 $ 5,429 $ — $ 50 $ 64 $ 4,964 $ 2,888 $ 176,066 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 162,671 $ 5,429 $ — $ 50 $ 64 $ 4,964 $ 2,888 $ 176,066 Consumer - other: Risk rating Pass $ — $ — $ 4,609 $ 1,327 $ — $ 640 $ 5,748 $ 12,324 Special mention — 1,117 — — — — — 1,117 Substandard — — — 456 — — — 456 Doubtful — — — — — — — — Total consumer - other loans $ — $ 1,117 $ 4,609 $ 1,783 $ — $ 640 $ 5,748 $ 13,897 Total: Pass $ 690,913 $ 356,769 $ 264,459 $ 140,786 $ 161,938 $ 236,456 $ 228,075 $ 2,079,396 Special Mention 2,497 34,556 31,739 1,293 3,705 4,452 25,745 103,987 Substandard 5,328 10,171 12,419 6,154 10,697 21,750 6,779 73,298 Doubtful — — 9 — — — — 9 Total $ 698,738 $ 401,496 $ 308,626 $ 148,233 $ 176,340 $ 262,658 $ 260,599 $ 2,256,690 |
Schedule of amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing | As of March 31, 2021 Nonaccrual Nonaccrual Loans Past With No With Due Over Allowance for Allowance for Total 89 Days Credit Losses Credit Losses Nonaccrual Still Accruing Commercial loans: Commercial and industrial $ 111 $ 1,476 $ 1,587 $ — Commercial real estate 13 — 13 — Total commercial loans 124 1,476 1,600 — Residential mortgages 26 179 205 251 Total loans $ 150 $ 1,655 $ 1,805 $ 251 As of December 31, 2020 Nonaccrual Nonaccrual Loans Past With No With Due Over Allowance for Allowance for Total 89 Days Credit Losses Credit Losses Nonaccrual Still Accruing Commercial loans: Commercial and industrial $ 2,597 $ 934 $ 3,531 $ — Commercial real estate 42 — 42 — Total commercial loans 2,639 934 3,573 — Residential mortgages 205 — 205 1,084 Total loans $ 2,844 $ 934 $ 3,778 $ 1,084 |
Schedule of amortized cost basis of collateral dependent impaired loans by class of loans | As of March 31, 2021 Real Business SBA Property Equipment Assets Guaranty Total Commercial and industrial $ 12 $ — $ — $ 112 $ 124 Residential mortgages 26 — — — 26 Total loans $ 38 $ — $ — $ 112 $ 150 As of December 31, 2020 Real Business SBA Property Equipment Assets Guaranty Total Commercial and industrial $ 2,165 $ 262 $ 150 $ 212 $ 2,789 Residential mortgages 205 — — — 205 Total loans $ 2,370 $ 262 $ 150 $ 212 $ 2,994 |
Schedule of past due financing receivables | As of March 31, 2021 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 149 $ 3,921 $ 95 $ 1,587 $ 5,752 $ 948,301 $ 954,053 Commercial real estate 2,959 1,354 — 13 4,326 937,765 942,091 Construction and land — — — — — 142,796 142,796 Residential mortgages 638 507 156 205 1,506 30,311 31,817 Home equity — — — — — 26,293 26,293 Consumer 8,472 3,441 — — 11,913 198,952 210,865 Total Loans $ 12,218 $ 9,223 $ 251 $ 1,805 $ 23,497 $ 2,284,418 $ 2,307,915 As of December 31, 2020 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 1,166 $ 1,749 $ 817 $ 3,531 $ 7,263 $ 945,542 $ 952,805 Commercial real estate 4,008 357 — 42 4,407 904,694 909,101 Construction and land — — — — — 145,595 145,595 Residential mortgages 479 925 267 205 1,876 31,907 33,783 Home equity — — — — — 25,443 25,443 Consumer 10,374 5,776 — — 16,150 173,813 189,963 Total Loans $ 16,027 $ 8,807 $ 1,084 $ 3,778 $ 29,696 $ 2,226,994 $ 2,256,690 |
Schedule of loan purchased and sold of SBA sales | For the three months ended March 31, 2021 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 659 $ 2,708 $ - $ 3,367 SBA Sales 8,214 4,925 - 13,139 Total Loans $ 8,873 $ 7,633 $ — $ 16,506 For the three months ended March 31, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 691 $ 1,467 $ - $ 2,158 SBA Sales 5,964 158 277 6,399 Total Loans $ 6,655 $ 1,625 $ 277 $ 8,557 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets | |
Schedule of Intangible Assets and Goodwill | March 31, December 31, 2021 2020 (in thousands) Servicing assets, net $ 2,688 $ 2,731 Total intangibles subject to amortization, net 2,688 2,731 Goodwill 19,925 19,925 Total goodwill and other intangible assets, net $ 22,613 $ 22,656 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Servicing Assets | |
Changes in the Balance of Servicing Assets | Changes in the balance of servicing assets for the three months ended March 31, 2021 and 2020 are presented in the following table . Three Months Ended March 31, SBA Loan Servicing Assets 2021 2020 (in thousands) Beginning carrying value, net $ 2,569 $ 2,731 Additions 235 105 Amortization (247) (313) Ending carrying value $ 2,557 $ 2,523 Changes in the balance of TriNet servicing assets for the three months ended March 31, 2021 and 2020 are presented in the following table. Three Months Ended March 31, TriNet Servicing Assets 2021 2020 (in thousands) Beginning carrying value, net $ 162 $ 296 Amortization (31) (34) Ending carrying value $ 131 $ 262 |
Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions | At March 31, 2021 and December 31, 2020, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Assets March 31, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 2,907 $ 2,907 Weighted average life 3.19 years 3.17 years Prepayment speed: 18.44 % 18.03 % Decline in fair value due to a 10% adverse change $ (143) $ (123) Decline in fair value due to a 20% adverse change $ (274) $ (236) Weighted average discount rate 11.26 % 12.49 % Decline in fair value due to a 100 bps adverse change $ (69) $ (59) Decline in fair value due to a 200 bps adverse change $ (135) $ (115) At March 31, 2021 and December 31, 2020, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the TriNet Servicing Assets March 31, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 276 $ 298 Weighted average life 4.36 years 4.58 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (3) $ (3) Decline in fair value due to a 20% adverse change $ (5) $ (6) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (5) $ (5) Decline in fair value due to a 200 bps adverse change $ (9) $ (11) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the Three Months Ended March 31, 2021 Income Tax Pre-Tax (Expense) After-Tax Amount Benefit (1) Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 19,289 $ (4,782) $ 14,507 Unrealized net gains (losses) on investment securities available-for-sale (7,508) 1,857 (5,651) Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale (2) (2) — (2) Unrealized net gains (losses) on derivatives (4,081) 1,009 (3,072) Accumulated other comprehensive income (loss) end of period $ 7,698 $ (1,916) $ 5,782 For the Three Months Ended March 31, 2020 Income Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 6,081 $ (1,520) $ 4,561 Unrealized net gains (losses) on investment securities available-for-sale 4,394 (1,077) 3,317 Unrealized net gains (losses) on derivatives 8,582 (2,114) 6,468 Accumulated other comprehensive income (loss) end of period $ 19,057 $ (4,711) $ 14,346 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Common Share | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table represents the earnings per share calculations for the three months ended March 31, 2021 and 2020. Three Months Ended March 31, 2021 2020 (in thousands, except share and per share amounts) Net income available to common shareholders $ 13,362 $ 2,124 Weighted average shares outstanding Basic (1) 20,380,066 21,689,038 Effect of dilutive securities: Stock options and performance share awards 122,118 153,137 Diluted 20,502,184 21,842,175 Net income per common share: Basic $ 0.66 $ 0.10 Diluted $ 0.65 $ 0.10 (1) Unvested restricted shares are participating securities and included in basic share calculations. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivatives and Hedging | |
Schedule of Derivative Instruments | The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of March 31, 2021 and December 31, 2020: Derivatives designated as hedging instruments under ASC 815 March 31, 2021 December 31, 2020 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 150,000 $ 6,677 $ 125,000 $ 10,799 Cash flow hedge of LIBOR based loans Other liabilities $ — $ — $ — $ — Derivatives not designated as hedging instruments under ASC 815 March 31, 2021 December 31, 2020 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 33,820 $ 1,524 $ 34,224 $ 2,057 Zero premium collar Other assets 67,869 5,280 68,527 9,328 $ 101,689 $ 6,804 $ 102,751 $ 11,385 Dealer offsets to customer swap positions Other liabilities $ 33,820 $ 1,545 $ 34,224 $ 2,087 Dealer offset to zero premium collar Other liabilities 67,869 5,320 68,527 9,398 Credit risk participation Other liabilities 5,313 3 5,782 11 $ 107,002 $ 6,868 $ 108,533 $ 11,496 The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income for the three months ended March 31, 2021 and 2020. Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivatives (in thousands) Income on Derivatives Three Months Ended March 31, 2021 2020 Interest rate products Other income $ 39 $ (254) Other contracts Other income 8 8 Total $ 47 $ (246) The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three months ended March 31, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Three Months Ended March 31, Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified from OCI on Derivatives Accumulated OCI in Income (Effective Portion) (Effective Portion) (in thousands) 2021 2020 Location 2021 2020 Interest rate swaps $ (4,123) $ 5,599 Interest income $ (614) $ (142) |
Other Borrowings and Long Ter_2
Other Borrowings and Long Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Borrowings and Long Term Debt | |
Schedule of Long-term Debt Instruments and Borrowings | Subordinated debt is summarized as follows: March 31, 2021 December 31, 2020 (in thousands) Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 5.50% until September 1, 2025 $ 75,000 $ 75,000 Principal amount of subordinated debt 75,000 75,000 Less debt issuance costs 1,122 1,193 Subordinated debt, net $ 73,878 $ 73,807 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-Based Compensation | |
Schedule of Share-based Compensation, Stock Options and Warrants Activity | The following table represents stock option activity for the three months ended March 31, 2021: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2020 214,890 $ 11.90 Granted/modified — — Exercised (134,850) 10.61 Forfeited — — Expired — — Outstanding, March 31, 2021 80,040 $ 14.09 3.52 $ 802 Exercisable, March 31, 2021 80,040 $ 14.09 3.52 $ 802 |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table represents restricted stock and performance share award activity for the three months ended March 31, 2021: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2020 435,748 $ 16.80 Granted/modified 133,130 18.77 Vested (86,266) 22.01 Forfeited (13,437) 18.59 Outstanding, March 31, 2021 469,175 $ 16.62 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Measurements | |
Schedule of Fair Value, Assets and Liabilities, Measured on Recurring Basis | The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at March 31, 2021 and December 31, 2020. Fair Value Measurements at March 31, 2021 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total (in thousands) Securities available-for-sale: U.S. states and political subdivisions $ — $ 79,408 $ — $ 79,408 Trust preferred securities — 4,808 — 4,808 Corporate debt securities — 20,633 — 20,633 Residential mortgage-backed securities — 246,544 — 246,544 Commercial mortgage-backed securities — 39,308 — 39,308 Total securities available-for-sale $ — $ 390,701 $ — $ 390,701 Interest rate derivative assets $ — $ 13,481 $ — $ 13,481 Interest rate derivative liabilities $ — $ 6,868 $ — $ 6,868 Fair Value Measurements at December 31, 2020 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Totals (in thousands) Securities available-for-sale: U.S. states and political subdivisions $ — $ 81,019 $ — $ 81,019 Trust preferred securities — 4,722 — 4,722 Corporate debt securities — 19,821 — 19,821 Residential mortgage-backed securities — 194,598 — 194,598 Commercial mortgage-backed securities — 35,263 — 35,263 Total securities available-for-sale $ — $ 335,423 $ — $ 335,423 Interest rate derivative assets $ — $ 22,184 $ — $ 22,184 Interest rate derivative liabilities $ — $ 11,496 $ — $ 11,496 |
Fair Value Measurements, Nonrecurring | The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at March 31, 2021 and December 31, 2020. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value March 31, 2021 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 150 $ 150 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2020 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 2,844 $ 2,844 |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents the estimated fair values of Atlantic Capital’s financial instruments at March 31, 2021 and December 31, 2020. Fair Value Measurements at March 31, 2021 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 32,850 $ 32,850 $ — $ — Interest-bearing deposits in banks 612,966 612,966 — — Total securities available-for-sale 390,701 — 390,701 — Total securities held-to-maturity 222,535 — 228,422 — FHLB stock 1,808 — — 1,808 FRB stock 10,124 — — 10,124 Loans held for investment, net 2,300,814 — — 2,377,979 Loans held for sale 1,847 — 1,847 — Derivative assets 13,481 — 13,481 — Financial liabilities: Deposits $ 3,277,692 $ — $ 3,281,591 $ — Subordinated debt 73,878 — 75,864 — Derivative financial instruments 6,868 — 6,868 — Fair Value Measurements at December 31, 2020 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 16,865 $ 16,865 $ — $ — Interest-bearing deposits in banks 636,537 636,537 — — Total securities available-for-sale 335,423 — 335,423 — Total securities held-to-maturity 200,156 — 214,584 — FHLB stock 2,619 — — 2,619 FRB stock 10,080 — — 10,080 Loans held for investment, net 2,249,036 — — 2,285,222 Derivative assets 22,184 — 22,184 — Financial liabilities: Deposits $ 3,161,508 $ — $ 3,120,246 $ — Subordinated debt 73,807 — 77,814 — Derivative financial instruments 11,496 — 11,496 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Schedule of Exposure to Credit Risk By Commitment | Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit as well as a summary of minimum lease payments at March 31, 2021 and December 31, 2020 were as follows: March 31, 2021 December 31, 2020 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 789,869 $ 813,757 Standby letters of credit 15,133 16,141 $ 805,002 $ 829,898 Minimum lease payments $ 17,483 $ 17,994 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition | |
Disaggregation of Revenue | The following table presents service charges by type of service provided for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 (in thousands) Deposit account analysis fees and charges $ 1,406 $ 934 ATM fees 25 20 NSF fees 12 18 Wire fees 28 133 Foreign exchange fees 192 126 Other — 1 Total service charges $ 1,663 $ 1,232 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Lease Cost and Other Information Related to Leases | For the Three Months Ended March 31, 2021 2020 (in thousands) Operating lease cost $ 501 $ 594 Short-term lease cost 2 9 Sublease income (92) (90) Net lease cost $ 411 $ 513 The tables below summarize other information related to the Company’s operating leases: For the Three Months Ended March 31, 2021 2020 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 511 $ 560 For the Three Months Ended March 31, 2021 2020 Weighted-average remaining lease term - operating leases 8.1 years 8.8 years Weighted-average discount rate - operating leases 3.03 % 3.05 % |
Schedule of Maturity of Lease Liabilities | March 31, 2021 (in thousands) Twelve Months Ended: March 31, 2022 $ 2,263 March 31, 2023 2,352 March 31, 2024 1,996 March 31, 2025 1,909 March 31, 2026 1,880 Thereafter 7,083 Total future minimum lease payments 17,483 Less: Interest (3,063) Present value of net future minimum lease payments $ 14,420 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Assets | ||
Gross Amounts of Recognized Assets | $ 13,480 | $ 22,184 |
Net Asset Balance | 13,480 | 22,184 |
Cash Collateral Received | (6,070) | |
Net Amount | 7,410 | 22,184 |
Total, Assets | ||
Gross Amounts of Recognized Assets | 13,480 | 22,184 |
Net Asset Balance | 13,480 | 22,184 |
Cash Collateral Received | (6,070) | |
Net Amount | 7,410 | 22,184 |
Derivatives, Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,868 | 11,496 |
Net Liability Balance | 6,868 | 11,496 |
Financial Instruments | (6,868) | (11,496) |
Cash Collateral Pledged | 330 | 330 |
Net Amount | (6,538) | (11,166) |
Total, Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,868 | 11,496 |
Net Liability Balance | 6,868 | 11,496 |
Financial Instruments | (6,868) | (11,496) |
Cash Collateral Pledged | 330 | 330 |
Net Amount | $ (6,538) | $ (11,166) |
Securities - Available-For-Sale
Securities - Available-For-Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Available-For-Sale | ||||
Amortized Cost | $ 389,233 | $ 326,445 | ||
Gross Unrealized Gains | 7,311 | 9,347 | ||
Gross Unrealized Losses | (5,843) | (369) | ||
Fair Value | 390,701 | 335,423 | ||
Held-to-Maturity | ||||
Amortized Cost | 222,549 | 200,170 | ||
Gross Unrealized Gains | 9,105 | 14,439 | ||
Gross Unrealized Losses | (3,232) | (25) | ||
Fair Value | 228,422 | 214,584 | ||
Allowance for credit losses on debt securities held-to-maturity | (14) | (14) | $ (14) | |
Net Carrying Value | 222,535 | 200,156 | ||
Total securities | ||||
Amortized Cost | 611,782 | 526,615 | ||
Gross Unrealized Gains | 16,416 | 23,786 | ||
Gross Unrealized Losses | (9,075) | (394) | ||
Fair Value | 619,123 | 550,007 | ||
U.S. states and political divisions | ||||
Available-For-Sale | ||||
Amortized Cost | 77,328 | 78,117 | ||
Gross Unrealized Gains | 2,080 | 2,906 | ||
Gross Unrealized Losses | (4) | |||
Fair Value | 79,408 | 81,019 | ||
Held-to-Maturity | ||||
Amortized Cost | 222,549 | 200,170 | ||
Gross Unrealized Gains | 9,105 | 14,439 | ||
Gross Unrealized Losses | (3,232) | (25) | ||
Fair Value | 228,422 | 214,584 | ||
Allowance for credit losses on debt securities held-to-maturity | (14) | (14) | ||
Net Carrying Value | 222,535 | 200,156 | ||
Trust preferred securities | ||||
Available-For-Sale | ||||
Amortized Cost | 4,841 | 4,835 | ||
Gross Unrealized Losses | (33) | (113) | ||
Fair Value | 4,808 | 4,722 | ||
Corporate debt securities | ||||
Available-For-Sale | ||||
Amortized Cost | 20,519 | 19,526 | ||
Gross Unrealized Gains | 166 | 295 | ||
Gross Unrealized Losses | (52) | |||
Fair Value | 20,633 | 19,821 | ||
Residential mortgage-backed securities | ||||
Available-For-Sale | ||||
Amortized Cost | 248,823 | 190,817 | ||
Gross Unrealized Gains | 3,284 | 4,023 | ||
Gross Unrealized Losses | (5,563) | (242) | ||
Fair Value | 246,544 | 194,598 | ||
Commercial mortgage-backed securities | ||||
Available-For-Sale | ||||
Amortized Cost | 37,722 | 33,150 | ||
Gross Unrealized Gains | 1,781 | 2,123 | ||
Gross Unrealized Losses | (195) | (10) | ||
Fair Value | $ 39,308 | $ 35,263 |
Securities - Allowance for cred
Securities - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for credit losses: | ||
Beginning Balance | $ 14 | |
Provision for credit losses | (6) | |
Securities charged-off | ||
Recoveries | ||
Total ending allowance balance | 14 | 14 |
U.S. states and political divisions | ||
Allowance for credit losses: | ||
Beginning Balance | 14 | |
Total ending allowance balance | 14 | |
U.S. states and political divisions - tax-exempt | ||
Allowance for credit losses: | ||
Beginning Balance | 10 | |
Provision for credit losses | (3) | |
Securities charged-off | ||
Recoveries | ||
Total ending allowance balance | 10 | 10 |
U.S. states and political divisions - taxable | ||
Allowance for credit losses: | ||
Beginning Balance | 4 | |
Provision for credit losses | (3) | |
Securities charged-off | ||
Recoveries | ||
Total ending allowance balance | $ 4 | 4 |
ASU 2016-13 | ||
Allowance for credit losses: | ||
Beginning Balance | 20 | |
ASU 2016-13 | U.S. states and political divisions - tax-exempt | ||
Allowance for credit losses: | ||
Beginning Balance | 13 | |
ASU 2016-13 | U.S. states and political divisions - taxable | ||
Allowance for credit losses: | ||
Beginning Balance | $ 7 |
Securities - Amortized cost of
Securities - Amortized cost of debt securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | $ 222,549 | $ 200,170 |
Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 88,741 | |
Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 59,131 | |
Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 56,844 | |
Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 15,632 | |
Moody's, A1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 2,201 | |
U.S. states and political divisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 222,549 | $ 200,170 |
U.S. states and political divisions - tax-exempt | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 149,792 | |
U.S. states and political divisions - tax-exempt | Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 60,808 | |
U.S. states and political divisions - tax-exempt | Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 41,174 | |
U.S. states and political divisions - tax-exempt | Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 34,019 | |
U.S. states and political divisions - tax-exempt | Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 11,590 | |
U.S. states and political divisions - tax-exempt | Moody's, A1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 2,201 | |
U.S. states and political divisions - taxable | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 72,757 | |
U.S. states and political divisions - taxable | Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 27,933 | |
U.S. states and political divisions - taxable | Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 17,957 | |
U.S. states and political divisions - taxable | Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 22,825 | |
U.S. states and political divisions - taxable | Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | $ 4,042 |
Securities - Contractual Maturi
Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-For-Sale, Amortized Cost | ||
Within 1 year | $ 8,519 | |
After 1 year through 5 years | 9,608 | |
After 5 years through 10 years | 34,247 | |
After 10 years | 50,314 | |
Amortized cost of securities with single maturity date | 102,688 | |
Amortized Cost | 389,233 | $ 326,445 |
Available-For-Sale, Fair Value | ||
Within 1 year | 8,685 | |
After 1 year through 5 years | 9,742 | |
After 5 years through 10 years | 34,912 | |
After 10 years | 51,510 | |
Fair value of securities with single maturity date | 104,849 | |
Fair Value | 390,701 | 335,423 |
Held-to-Maturity, Amortized Cost | ||
After 5 years through 10 years | 312 | |
After 10 years | 222,237 | |
Amortized cost of securities with single maturity date | 222,549 | |
Amortized Cost | 222,549 | 200,170 |
Held-to-Maturity, Fair Value | ||
After 5 years through 10 years | 314 | |
After 10 years | 228,108 | |
Fair value of securities with single maturity date | 228,422 | |
Fair Value | 228,422 | 214,584 |
Residential mortgage-backed securities | ||
Available-For-Sale, Amortized Cost | ||
Mortgage-backed securities | 248,823 | |
Amortized Cost | 248,823 | 190,817 |
Available-For-Sale, Fair Value | ||
Mortgage-backed securities | 246,544 | |
Fair Value | 246,544 | 194,598 |
Commercial mortgage-backed securities | ||
Available-For-Sale, Amortized Cost | ||
Mortgage-backed securities | 37,722 | |
Amortized Cost | 37,722 | 33,150 |
Available-For-Sale, Fair Value | ||
Mortgage-backed securities | 39,308 | |
Fair Value | $ 39,308 | $ 35,263 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-Sale, Fair Value | ||
Less than 12 months | $ 166,680 | $ 71,792 |
12 months or greater, fair value | 4,999 | 6,913 |
Totals | 171,679 | 78,705 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (5,797) | (241) |
12 months or greater | (46) | (128) |
Totals | (5,843) | (369) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 58,272 | 2,241 |
Totals | 58,272 | 2,241 |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (3,232) | (25) |
Totals | (3,232) | (25) |
Total securities - Fair Value | ||
Less than 12 months | 224,952 | 74,033 |
12 months or greater | 4,999 | 6,913 |
Totals | 229,951 | 80,946 |
Total securities - Unrealized losses | ||
Less than 12 months | (9,029) | (266) |
12 months or greater | (46) | (128) |
Totals | (9,075) | (394) |
U.S. states and political divisions | ||
Available-for-Sale, Fair Value | ||
12 months or greater, fair value | 1,987 | |
Totals | 1,987 | |
Available-for-Sale, Unrealized Losses | ||
12 months or greater | (4) | |
Totals | (4) | |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 58,272 | 2,241 |
Totals | 58,272 | 2,241 |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (3,232) | (25) |
Totals | (3,232) | (25) |
Trust preferred securities | ||
Available-for-Sale, Fair Value | ||
12 months or greater, fair value | 4,808 | 4,721 |
Totals | 4,808 | 4,721 |
Available-for-Sale, Unrealized Losses | ||
12 months or greater | (33) | (113) |
Totals | (33) | (113) |
Corporate debt securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 9,948 | |
Totals | 9,948 | |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (52) | |
Totals | (52) | |
Residential mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 153,169 | 68,042 |
12 months or greater, fair value | 191 | 205 |
Totals | 153,360 | 68,247 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (5,550) | (231) |
12 months or greater | (13) | (11) |
Totals | (5,563) | (242) |
Commercial mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 3,563 | 3,750 |
Totals | 3,563 | 3,750 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (195) | (10) |
Totals | $ (195) | $ (10) |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)security | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Securities | |||
Interest Receivable | $ 1,600,000 | $ 2,100,000 | |
Allowance for credit losses, accrued interest receivable on available for sale securities | 1,200,000 | $ 1,200,000 | |
Debt securities classified as non-accrual | 0 | ||
Debt securities classified as past due over 89 days and still accruing | $ 0 | ||
Number of available-for-sale securities in unrealized loss position | security | 28 | 13 | |
Number of held for maturity securities in unrealized loss position | security | 28 | 1 | |
Impairment of securities in unrealized loss position | $ 0 | $ 0 | |
Carrying value of investment securities pledged to secure public funds and other borrowings | 56,200,000 | $ 43,900,000 | |
Investment securities available for sale | 390,701,000 | 335,423,000 | |
SBIC Investments | |||
Securities | |||
Investment securities available for sale | 5,500,000 | $ 5,400,000 | |
Impairments on SBICs | $ 0 | $ 0 |
Securities - Realized Gains (Lo
Securities - Realized Gains (Losses) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Securities | |
Proceeds from sales | $ 750 |
Gross realized gains | 2 |
Net gains on sales of securities | $ 2 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Allowance for Loan Losses | ||||
Loans held for sale | $ 1,847 | |||
Total loans held for sale | 1,847 | |||
Loans held for investment | 2,307,915 | $ 2,256,690 | ||
Less net deferred fees and other unearned income | (7,101) | (7,654) | ||
Less allowance for credit losses on loans | (27,506) | (31,818) | $ (24,896) | $ (18,535) |
Loans held for investment, net | 2,273,308 | 2,217,218 | ||
Other | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 7,689 | 13,897 | ||
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 2,038,940 | 2,007,501 | ||
Less allowance for credit losses on loans | (26,184) | (30,221) | (23,830) | (18,203) |
Commercial | Commercial and industrial | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 954,053 | 952,805 | ||
Commercial | Commercial real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 942,091 | 909,101 | ||
Commercial | Construction and land | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 142,796 | 145,595 | ||
Residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 58,110 | 59,226 | ||
Less allowance for credit losses on loans | (545) | (699) | (415) | (145) |
Residential | Residential mortgages | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 31,817 | 33,783 | ||
Residential | Home equity | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 26,293 | 25,443 | ||
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | 203,176 | 176,066 | ||
Less allowance for credit losses on loans | (777) | (898) | $ (651) | $ (187) |
Consumer | Other | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment | $ 7,689 | $ 13,897 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | ||
Loans pledged as collateral | $ 497,200,000 | $ 474,500,000 |
Remaining accretable fair value discount | 249,000 | 262,000 |
Accrued interest | 1,600,000 | 2,100,000 |
Credit loss related to accrued interest receivable | 51,000 | 49,000 |
Loans and leases receivable, net | 2,273,308,000 | 2,217,218,000 |
Recorded investment in TDRs | 13,800,000 | 14,200,000 |
Allowance for loans | 55,000 | |
Other assets | ||
Loans and Allowance for Loan Losses | ||
Accrued interest | 10,700,000 | 10,800,000 |
Payment Deferral | ||
Loans and Allowance for Loan Losses | ||
Loans and leases receivable, net | 4,300,000 | 4,400,000 |
Commercial | Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Commitments to lend additional funds | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for credit losses on loans | ||
Beginning balance | $ 31,818 | $ 18,535 |
Provision for credit losses | (4,074) | 7,409 |
Loans charged-off | (288) | (221) |
Recoveries | 50 | 27 |
Total ending allowance balance | 27,506 | 24,896 |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||
Allowance for credit losses on loans | ||
Beginning balance | (854) | |
Commercial | ||
Allowance for credit losses on loans | ||
Beginning balance | 30,221 | 18,203 |
Provision for credit losses | (3,799) | 6,652 |
Loans charged-off | (288) | (96) |
Recoveries | 50 | 18 |
Total ending allowance balance | 26,184 | 23,830 |
Commercial | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||
Allowance for credit losses on loans | ||
Beginning balance | (947) | |
Residential | ||
Allowance for credit losses on loans | ||
Beginning balance | 699 | 145 |
Provision for credit losses | (154) | 386 |
Loans charged-off | (125) | |
Recoveries | 1 | |
Total ending allowance balance | 545 | 415 |
Residential | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||
Allowance for credit losses on loans | ||
Beginning balance | 8 | |
Consumer | ||
Allowance for credit losses on loans | ||
Beginning balance | 898 | 187 |
Provision for credit losses | (121) | 371 |
Recoveries | 8 | |
Total ending allowance balance | $ 777 | 651 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||
Allowance for credit losses on loans | ||
Beginning balance | $ 85 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021loan | Mar. 31, 2020USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 2 |
Outstanding Balance | $ 2,012 | |
Increase in Allowance | $ 156 | |
Commercial | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Outstanding Balance | $ 67 | |
Increase in Allowance | $ 2 | |
Commercial | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Outstanding Balance | $ 1,945 | |
Increase in Allowance | $ 154 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Troubled Debt Restructurings Subsequently Defaulted (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Outstanding Balance | $ | $ 12 | $ 320 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | |
Outstanding Balance | $ | $ 320 | |
Commercial | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Outstanding Balance | $ | $ 12 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Risk Category of Loan by Class of Loan (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Risk category of loans | ||
2021 | $ 229,768 | $ 698,738 |
2020 | 584,278 | 401,496 |
2019 | 371,176 | 308,626 |
2018 | 286,170 | 148,233 |
2017 | 144,927 | 176,340 |
Prior | 420,053 | 262,658 |
Revolving Loans Amortized Cost Basis | 271,543 | 260,599 |
Total | 2,307,915 | 2,256,690 |
Other | ||
Risk category of loans | ||
Total | 7,689 | 13,897 |
Pass | ||
Risk category of loans | ||
2021 | 229,747 | 690,913 |
2020 | 577,461 | 356,769 |
2019 | 322,282 | 264,459 |
2018 | 243,650 | 140,786 |
2017 | 139,292 | 161,938 |
Prior | 388,978 | 236,456 |
Revolving Loans Amortized Cost Basis | 245,042 | 228,075 |
Total | 2,146,452 | 2,079,396 |
Special Mention | ||
Risk category of loans | ||
2021 | 2,497 | |
2020 | 1,536 | 34,556 |
2019 | 38,853 | 31,739 |
2018 | 29,431 | 1,293 |
2017 | 1,239 | 3,705 |
Prior | 16,780 | 4,452 |
Revolving Loans Amortized Cost Basis | 25,227 | 25,745 |
Total | 113,066 | 103,987 |
Substandard | ||
Risk category of loans | ||
2021 | 21 | 5,328 |
2020 | 5,281 | 10,171 |
2019 | 10,041 | 12,419 |
2018 | 13,089 | 6,154 |
2017 | 4,396 | 10,697 |
Prior | 14,295 | 21,750 |
Revolving Loans Amortized Cost Basis | 1,274 | 6,779 |
Total | 48,397 | 73,298 |
Doubtful Nonaccruing | ||
Risk category of loans | ||
2019 | 9 | |
Total | 9 | |
Commercial | ||
Risk category of loans | ||
Total | 2,038,940 | 2,007,501 |
Commercial | Commercial and industrial | ||
Risk category of loans | ||
2021 | 105,561 | 359,580 |
2020 | 300,785 | 146,010 |
2019 | 122,621 | 129,205 |
2018 | 111,744 | 47,682 |
2017 | 44,110 | 36,779 |
Prior | 54,388 | 22,405 |
Revolving Loans Amortized Cost Basis | 214,844 | 211,144 |
Total | 954,053 | 952,805 |
Commercial | Commercial real estate | ||
Risk category of loans | ||
2021 | 28,232 | 93,574 |
2020 | 92,273 | 188,271 |
2019 | 188,188 | 152,664 |
2018 | 154,932 | 97,218 |
2017 | 97,540 | 134,498 |
Prior | 355,988 | 233,512 |
Revolving Loans Amortized Cost Basis | 24,938 | 9,364 |
Total | 942,091 | 909,101 |
Commercial | Construction and land | ||
Risk category of loans | ||
2021 | 96 | 71,828 |
2020 | 83,921 | 57,807 |
2019 | 51,725 | 7,072 |
2018 | 2,771 | |
2017 | 2,156 | |
Prior | 1,778 | 720 |
Revolving Loans Amortized Cost Basis | 2,505 | 6,012 |
Total | 142,796 | 145,595 |
Commercial | Pass | Commercial and industrial | ||
Risk category of loans | ||
2021 | 105,540 | 358,320 |
2020 | 299,781 | 130,466 |
2019 | 103,040 | 94,596 |
2018 | 80,096 | 44,706 |
2017 | 42,897 | 35,098 |
Prior | 52,271 | 16,621 |
Revolving Loans Amortized Cost Basis | 189,327 | 179,521 |
Total | 872,952 | 859,328 |
Commercial | Pass | Commercial real estate | ||
Risk category of loans | ||
2021 | 28,232 | 88,246 |
2020 | 86,992 | 160,205 |
2019 | 159,789 | 146,807 |
2018 | 147,059 | 93,956 |
2017 | 94,317 | 123,959 |
Prior | 328,834 | 213,204 |
Revolving Loans Amortized Cost Basis | 24,680 | 9,189 |
Total | 869,903 | 835,566 |
Commercial | Pass | Construction and land | ||
Risk category of loans | ||
2021 | 96 | 71,828 |
2020 | 83,921 | 57,807 |
2019 | 51,725 | 4,407 |
2018 | 107 | |
Prior | 720 | |
Revolving Loans Amortized Cost Basis | 2,505 | 6,012 |
Total | 138,354 | 140,774 |
Commercial | Special Mention | Commercial and industrial | ||
Risk category of loans | ||
2021 | 1,260 | |
2020 | 1,004 | 11,475 |
2019 | 15,562 | 26,683 |
2018 | 25,119 | 540 |
2017 | 495 | 684 |
Prior | 390 | 310 |
Revolving Loans Amortized Cost Basis | 24,243 | 24,844 |
Total | 66,813 | 65,796 |
Commercial | Special Mention | Commercial real estate | ||
Risk category of loans | ||
2020 | 21,964 | |
2019 | 22,377 | 1,534 |
2018 | 1,492 | |
2017 | 865 | |
Prior | 14,612 | 4,142 |
Revolving Loans Amortized Cost Basis | 258 | 175 |
Total | 38,739 | 28,680 |
Commercial | Special Mention | Construction and land | ||
Risk category of loans | ||
2019 | 2,665 | |
2018 | 2,664 | |
2017 | 2,156 | |
Prior | 1,778 | |
Total | 4,442 | 4,821 |
Commercial | Substandard | Commercial and industrial | ||
Risk category of loans | ||
2021 | 21 | |
2020 | 4,069 | |
2019 | 4,019 | 7,917 |
2018 | 6,529 | 2,436 |
2017 | 718 | 997 |
Prior | 1,727 | 5,474 |
Revolving Loans Amortized Cost Basis | 1,274 | 6,779 |
Total | 14,288 | 27,672 |
Commercial | Substandard | Commercial real estate | ||
Risk category of loans | ||
2021 | 5,328 | |
2020 | 5,281 | 6,102 |
2019 | 6,022 | 4,323 |
2018 | 6,381 | 3,262 |
2017 | 3,223 | 9,674 |
Prior | 12,542 | 16,166 |
Total | 33,449 | 44,855 |
Commercial | Doubtful Nonaccruing | Commercial and industrial | ||
Risk category of loans | ||
2019 | 9 | |
Total | 9 | |
Residential | ||
Risk category of loans | ||
Total | 58,110 | 59,226 |
Residential | Residential mortgages | ||
Risk category of loans | ||
2021 | 2,188 | 11,085 |
2020 | 8,771 | 2,862 |
2019 | 3,825 | 15,076 |
2018 | 12,424 | 1,500 |
2017 | 1,483 | 2,843 |
Prior | 3,126 | 417 |
Total | 31,817 | 33,783 |
Residential | Home equity | ||
Risk category of loans | ||
Prior | 486 | |
Revolving Loans Amortized Cost Basis | 25,807 | 25,443 |
Total | 26,293 | 25,443 |
Residential | Pass | Residential mortgages | ||
Risk category of loans | ||
2021 | 2,188 | 9,848 |
2020 | 8,239 | 2,862 |
2019 | 3,825 | 14,040 |
2018 | 12,089 | 747 |
2017 | 739 | 2,817 |
Prior | 3,100 | 307 |
Total | 30,180 | 30,621 |
Residential | Pass | Home equity | ||
Risk category of loans | ||
Prior | 486 | |
Revolving Loans Amortized Cost Basis | 25,081 | 24,717 |
Total | 25,567 | 24,717 |
Residential | Special Mention | Residential mortgages | ||
Risk category of loans | ||
2021 | 1,237 | |
2020 | 532 | |
2019 | 857 | |
2018 | 156 | 753 |
2017 | 744 | |
Total | 1,432 | 2,847 |
Residential | Special Mention | Home equity | ||
Risk category of loans | ||
Revolving Loans Amortized Cost Basis | 726 | 726 |
Total | 726 | 726 |
Residential | Substandard | Residential mortgages | ||
Risk category of loans | ||
2019 | 179 | |
2018 | 179 | |
2017 | 26 | |
Prior | 26 | 110 |
Total | 205 | 315 |
Consumer | ||
Risk category of loans | ||
2021 | 93,592 | 162,671 |
2020 | 98,528 | 5,429 |
2019 | 3,903 | |
2018 | 50 | |
2017 | 22 | 64 |
Prior | 3,705 | 4,964 |
Revolving Loans Amortized Cost Basis | 3,426 | 2,888 |
Total | 203,176 | 176,066 |
Consumer | Other | ||
Risk category of loans | ||
2021 | 99 | |
2020 | 1,117 | |
2019 | 914 | 4,609 |
2018 | 4,299 | 1,783 |
2017 | 1,772 | |
Prior | 582 | 640 |
Revolving Loans Amortized Cost Basis | 23 | 5,748 |
Total | 7,689 | 13,897 |
Consumer | Pass | ||
Risk category of loans | ||
2021 | 93,592 | 162,671 |
2020 | 98,528 | 5,429 |
2019 | 3,903 | |
2018 | 50 | |
2017 | 22 | 64 |
Prior | 3,705 | 4,964 |
Revolving Loans Amortized Cost Basis | 3,426 | 2,888 |
Total | 203,176 | 176,066 |
Consumer | Pass | Other | ||
Risk category of loans | ||
2021 | 99 | |
2019 | 4,609 | |
2018 | 4,299 | 1,327 |
2017 | 1,317 | |
Prior | 582 | 640 |
Revolving Loans Amortized Cost Basis | 23 | 5,748 |
Total | 6,320 | 12,324 |
Consumer | Special Mention | Other | ||
Risk category of loans | ||
2020 | 1,117 | |
2019 | 914 | |
Total | 914 | 1,117 |
Consumer | Substandard | Other | ||
Risk category of loans | ||
2018 | 456 | |
2017 | 455 | |
Total | $ 455 | $ 456 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Unpaid Principal Balance | |||
Nonaccrual with no Allowance for Credit Losses | $ 150,000 | $ 2,844,000 | |
Nonaccrual With Allowance for Credit Losses | 1,655,000 | 934,000 | |
Total Nonaccrual | 1,805,000 | 3,778,000 | |
Loans Past Due Over 89 Days Still Accruing | 251,000 | 1,084,000 | |
Interest income on nonaccrual loans | 19,000 | $ 31,000 | |
Commercial | |||
Unpaid Principal Balance | |||
Nonaccrual with no Allowance for Credit Losses | 2,639,000 | ||
Nonaccrual With Allowance for Credit Losses | 934,000 | ||
Total Nonaccrual | 3,573,000 | ||
Commercial | Commercial and industrial | |||
Unpaid Principal Balance | |||
Nonaccrual with no Allowance for Credit Losses | 111,000 | 2,597,000 | |
Nonaccrual With Allowance for Credit Losses | 1,476,000 | 934,000 | |
Total Nonaccrual | 1,587,000 | 3,531,000 | |
Commercial | Commercial real estate | |||
Unpaid Principal Balance | |||
Nonaccrual with no Allowance for Credit Losses | 13,000 | 42,000 | |
Total Nonaccrual | 13,000 | 42,000 | |
Commercial | Construction and land | |||
Unpaid Principal Balance | |||
Nonaccrual with no Allowance for Credit Losses | 124,000 | ||
Nonaccrual With Allowance for Credit Losses | 1,476,000 | ||
Total Nonaccrual | 1,600,000 | ||
Residential | Residential mortgages | |||
Unpaid Principal Balance | |||
Nonaccrual with no Allowance for Credit Losses | 26,000 | 205,000 | |
Nonaccrual With Allowance for Credit Losses | 179,000 | ||
Total Nonaccrual | 205,000 | 205,000 | |
Loans Past Due Over 89 Days Still Accruing | $ 251,000 | $ 1,084,000 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Collateral dependent impaired loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | ||
Total | $ 150 | $ 2,994 |
Real property | ||
Loans and Allowance for Loan Losses | ||
Total | 38 | 2,370 |
Equipment | ||
Loans and Allowance for Loan Losses | ||
Total | 262 | |
Business assets | ||
Loans and Allowance for Loan Losses | ||
Total | 150 | |
SBA Guaranty-75% | ||
Loans and Allowance for Loan Losses | ||
Total | 112 | 212 |
Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 124 | 2,789 |
Commercial and industrial | Real property | ||
Loans and Allowance for Loan Losses | ||
Total | 12 | 2,165 |
Commercial and industrial | Equipment | ||
Loans and Allowance for Loan Losses | ||
Total | 262 | |
Commercial and industrial | Business assets | ||
Loans and Allowance for Loan Losses | ||
Total | 150 | |
Commercial and industrial | SBA Guaranty-75% | ||
Loans and Allowance for Loan Losses | ||
Total | 112 | 212 |
Residential mortgages | ||
Loans and Allowance for Loan Losses | ||
Total | 26 | 205 |
Residential mortgages | Real property | ||
Loans and Allowance for Loan Losses | ||
Total | $ 26 | $ 205 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due | ||
Nonaccruing | $ 1,805 | $ 3,778 |
Total Past Due and Nonaccruing | 23,497 | 29,696 |
Not Past Due | 2,284,418 | 2,226,994 |
Total | 2,307,915 | 2,256,690 |
Financial Receivable 30 to 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 12,218 | 16,027 |
Financial Receivable 60 to 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 9,223 | 8,807 |
Financing Receivables Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 251 | 1,084 |
Commercial | ||
Financing Receivable, Past Due | ||
Nonaccruing | 3,573 | |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Nonaccruing | 1,587 | 3,531 |
Total Past Due and Nonaccruing | 5,752 | 7,263 |
Not Past Due | 948,301 | 945,542 |
Total | 954,053 | 952,805 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due | ||
Nonaccruing | 13 | 42 |
Total Past Due and Nonaccruing | 4,326 | 4,407 |
Not Past Due | 937,765 | 904,694 |
Total | 942,091 | 909,101 |
Commercial | Construction and land | ||
Financing Receivable, Past Due | ||
Nonaccruing | 1,600 | |
Total Past Due and Nonaccruing | 0 | |
Not Past Due | 142,796 | 145,595 |
Total | 142,796 | 145,595 |
Commercial | Financial Receivable 30 to 59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Past due | 149 | 1,166 |
Commercial | Financial Receivable 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due | ||
Past due | 2,959 | 4,008 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Past due | 3,921 | 1,749 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due | ||
Past due | 1,354 | 357 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Construction and land | ||
Financing Receivable, Past Due | ||
Past due | 0 | |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Past due | 95 | 817 |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due | ||
Past due | 0 | |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Construction and land | ||
Financing Receivable, Past Due | ||
Past due | 0 | |
Residential | Residential mortgages | ||
Financing Receivable, Past Due | ||
Nonaccruing | 205 | 205 |
Total Past Due and Nonaccruing | 1,506 | 1,876 |
Not Past Due | 30,311 | 31,907 |
Total | 31,817 | 33,783 |
Residential | Home equity | ||
Financing Receivable, Past Due | ||
Total Past Due and Nonaccruing | 0 | |
Not Past Due | 26,293 | 25,443 |
Total | 26,293 | 25,443 |
Residential | Financial Receivable 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due | ||
Past due | 638 | 479 |
Residential | Financial Receivable 60 to 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due | ||
Past due | 507 | 925 |
Residential | Financial Receivable 60 to 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due | ||
Past due | 0 | |
Residential | Financing Receivables Greater Than 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due | ||
Past due | 156 | 267 |
Residential | Financing Receivables Greater Than 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due | ||
Past due | 0 | |
Consumer | ||
Financing Receivable, Past Due | ||
Total Past Due and Nonaccruing | 11,913 | 16,150 |
Not Past Due | 198,952 | 173,813 |
Total | 210,865 | 189,963 |
Consumer | Financial Receivable 30 to 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 8,472 | 10,374 |
Consumer | Financial Receivable 60 to 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | $ 3,441 | 5,776 |
Consumer | Financing Receivables Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Purchase and Sale of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | |||
Repurchases of SBA participations | $ 3,367 | $ 2,158 | |
SBA Sales | 13,139 | 6,399 | |
Total Loans | 16,506 | 8,557 | |
Loans sold, delinquent amount | 3,400 | $ 8,400 | |
Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Repurchases of SBA participations | 659 | 691 | |
SBA Sales | 8,214 | 5,964 | |
Total Loans | 8,873 | 6,655 | |
Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Repurchases of SBA participations | 2,708 | 1,467 | |
SBA Sales | 4,925 | 158 | |
Total Loans | $ 7,633 | 1,625 | |
Residential mortgages | |||
Loans and Allowance for Loan Losses | |||
SBA Sales | 277 | ||
Total Loans | $ 277 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles subject to amortization, net | $ 2,688 | $ 2,731 |
Goodwill | 19,925 | 19,925 |
Total goodwill and other intangible assets, net | 22,613 | 22,656 |
Servicing Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposit intangible | $ 2,688 | $ 2,731 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Servicing Assets | ||
Loans sold and serviced | $ 194.9 | $ 192.9 |
Servicing Assets - Changes in t
Servicing Assets - Changes in the Balance of Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
TriNet Servicing Assets | ||
Loan Servicing Rights | ||
Beginning carrying value, net | $ 162 | $ 296 |
Amortization | (31) | (34) |
Ending carrying value | 131 | 262 |
SBA Loan Servicing Assets | ||
Loan Servicing Rights | ||
Beginning carrying value, net | 2,569 | 2,731 |
Additions | 235 | 105 |
Amortization | (247) | (313) |
Ending carrying value | $ 2,557 | $ 2,523 |
Servicing Assets - Sensitivity
Servicing Assets - Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
TriNet Servicing Assets | ||
Loan Servicing Assets | ||
Fair value of retained servicing assets | $ 276 | $ 298 |
Weighted average life | 4 years 4 months 9 days | 4 years 6 months 29 days |
Prepayment speed (as a percent) | 5.00% | 5.00% |
Decline in fair value due to a 10% adverse change | $ (3) | $ (3) |
Decline in fair value due to a 20% adverse change | $ (5) | $ (6) |
Weighted average discount rate | 8.00% | 8.00% |
Decline in fair value due to a 100 bps adverse change | $ (5) | $ (5) |
Decline in fair value due to a 200 bps adverse change | (9) | (11) |
SBA Loan Servicing Assets | ||
Loan Servicing Assets | ||
Fair value of retained servicing assets | $ 2,907 | $ 2,907 |
Weighted average life | 3 years 2 months 8 days | 3 years 2 months 1 day |
Prepayment speed (as a percent) | 18.44% | 18.03% |
Decline in fair value due to a 10% adverse change | $ (143) | $ (123) |
Decline in fair value due to a 20% adverse change | $ (274) | $ (236) |
Weighted average discount rate | 11.26% | 12.49% |
Decline in fair value due to a 100 bps adverse change | $ (69) | $ (59) |
Decline in fair value due to a 200 bps adverse change | $ (135) | $ (115) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
After-Tax Amount | ||
Beginning balance | $ 338,586 | $ 326,495 |
Other comprehensive (loss) income, net of tax | (8,725) | 9,785 |
Ending balance | $ 340,328 | 332,300 |
Effective tax rate | 25.00% | |
Accumulated Other Comprehensive Income (Loss) | ||
Pre-Tax Amount | ||
Beginning balance | $ 19,289 | 6,081 |
Ending balance | 7,698 | 19,057 |
Income Tax (Expense) Benefit | ||
Beginning balance | (4,782) | (1,520) |
Ending balance | (1,916) | (4,711) |
After-Tax Amount | ||
Beginning balance | 14,507 | 4,561 |
Ending balance | 5,782 | 14,346 |
Accumulated Net Investment Gain (Loss) from Available-for-Sale Securities | ||
Pre-Tax Amount | ||
Unrealized net (losses) gains on investment securities available-for-sale | (7,508) | 4,394 |
Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale | (2) | |
Income Tax (Expense) Benefit | ||
Unrealized net (losses) gains on investment securities available-for-sale | 1,857 | (1,077) |
After-Tax Amount | ||
Unrealized net (losses) gains on investment securities available-for-sale | (5,651) | 3,317 |
Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale | (2) | |
Derivatives | ||
Pre-Tax Amount | ||
Unrealized net (losses) gains on derivatives | (4,081) | 8,582 |
Income Tax (Expense) Benefit | ||
Unrealized net (losses) gains on derivatives | 1,009 | (2,114) |
After-Tax Amount | ||
Other comprehensive (loss) income, net of tax | $ (3,072) | $ 6,468 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Common Share | ||
Net income available to common shareholders | $ 13,362 | $ 2,124 |
Weighted average shares outstanding | ||
Basic (in shares) | 20,380,066 | 21,689,038 |
Effect of dilutive securities: | ||
Stock options and performance share awards (in shares) | 122,118 | 153,137 |
Diluted (in shares) | 20,502,184 | 21,842,175 |
Basic | $ 0.66 | $ 0.10 |
Diluted | $ 0.65 | $ 0.10 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Mar. 04, 2020 | |
Earnings Per Common Share | ||||
Antidilutive securities excluded (in shares) | 0 | 109,540 | ||
Capital shares, authorized (in shares) | 110,000,000 | |||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock outstanding (in shares) | 0 | 0 | ||
Preferred stock par value | $ 0 | $ 0 | ||
Common stock par value | $ 0 | $ 0 | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock issued (in shares) | 20,354,077 | 20,394,912 | ||
Common stock outstanding (in shares) | 20,354,077 | 20,394,912 | ||
Dividends paid | $ 0 | $ 12.5 | ||
Authorized amount under stock repurchase program | $ 85 | $ 25 | ||
Authorized amount available under the stock repurchase program at commencement of the program | 15 | |||
Amount of authorized stock repurchases under the stock repurchase program subject to regulatory approval | $ 10 | |||
Stock repurchased (in shares) | 222,193 | |||
Stock repurchased program | $ 4.2 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives and Hedging | ||
Notional Amount | $ 5.3 | $ 5.8 |
Expected reclassification to loan interest income | 1.9 | |
Collateral posted | 9 | 11.8 |
Customer swap positions | Derivatives designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 135.7 | 137.1 |
Customer swap positions | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 67.6 | 68.4 |
Cash Flow Hedging | Derivatives designated as hedging instruments under ASC 815 | LIBOR | ||
Derivatives and Hedging | ||
Notional Amount | $ 150 | $ 125 |
Derivatives and Hedging (Deriva
Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives and Hedging | ||
Notional Amount | $ 5,300 | $ 5,800 |
Derivatives designated as hedging instruments under ASC 815 | Customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 135,700 | 137,100 |
Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivatives and Hedging | ||
Notional Amount | 150,000 | 125,000 |
Derivatives not designated as hedging instruments under ASC 815 | Customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 67,600 | 68,400 |
Other assets | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivatives and Hedging | ||
Notional Amount | 150,000 | 125,000 |
Fair Value | 6,677 | 10,799 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 101,689 | 102,751 |
Fair Value | 6,804 | 11,385 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 33,820 | 34,224 |
Fair Value | 1,524 | 2,057 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Zero premium collar | ||
Derivatives and Hedging | ||
Notional Amount | 67,869 | 68,527 |
Fair Value | 5,280 | 9,328 |
Other liabilities | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivatives and Hedging | ||
Notional Amount | 0 | 0 |
Fair Value | 0 | 0 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 107,002 | 108,533 |
Fair Value | 6,868 | 11,496 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offsets to customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 33,820 | 34,224 |
Fair Value | 1,545 | 2,087 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offset to zero premium collar | ||
Derivatives and Hedging | ||
Notional Amount | 67,869 | 68,527 |
Fair Value | 5,320 | 9,398 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Credit risk participation | ||
Derivatives and Hedging | ||
Notional Amount | 5,313 | 5,782 |
Fair Value | $ 3 | $ 11 |
Derivatives and Hedging (Impact
Derivatives and Hedging (Impact to Consolidated Statements of Income Related to Derivative Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flow Hedging | Interest rate swaps | ||
Derivatives and Hedging | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (4,123) | $ 5,599 |
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | (614) | (142) |
Derivatives not designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 47 | (246) |
Derivatives not designated as hedging instruments under ASC 815 | Other income | Interest rate products | ||
Derivatives and Hedging | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 39 | (254) |
Derivatives not designated as hedging instruments under ASC 815 | Other income | Other contracts | ||
Derivatives and Hedging | ||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 8 | $ 8 |
Other Borrowings and Long Ter_3
Other Borrowings and Long Term Debt - Narrative (Details) - USD ($) | Aug. 20, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Other Borrowings and Long-Term Debt | ||||
FHLB advances | $ 0 | $ 0 | ||
FHLB Advances | 0 | |||
Available line of credit commitments | 1,100,000,000 | |||
Available line of credit based on collateral available | 86,200,000 | |||
Interest expense, federal funds purchased | 0 | $ 32,000 | ||
Subordinated Debt | ||||
Other Borrowings and Long-Term Debt | ||||
Aggregate principal amount | $ 75,000,000 | $ 75,000,000 | ||
Subordinated Debt | Minimum | ||||
Other Borrowings and Long-Term Debt | ||||
Debt instrument term | 5 years | |||
Subordinated Note After September 1, 2025 Due September 1, 2030 | Subordinated Debt | ||||
Other Borrowings and Long-Term Debt | ||||
Aggregate principal amount | $ 75,000,000 | |||
Fixed rate of interest | 5.50% | |||
Basis spread on variable rate | 5.363% | |||
Debt instrument redemption price (as a percent) | 100.00% | |||
Federal Home Loan Bank of Atlanta | ||||
Other Borrowings and Long-Term Debt | ||||
Available line of credit based on collateral available | $ 275,800,000 |
Other Borrowings and Long Ter_4
Other Borrowings and Long Term Debt - Subordinated Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Other Borrowings and Long-Term Debt | ||
Subordinated debt, net | $ 73,878 | $ 73,807 |
Subordinated Debt | ||
Other Borrowings and Long-Term Debt | ||
Aggregate principal amount | 75,000 | 75,000 |
Less debt issuance costs | 1,122 | 1,193 |
Subordinated debt, net | 73,878 | 73,807 |
Subordinated Debt | Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 5.50% until September 1, 2025 | ||
Other Borrowings and Long-Term Debt | ||
Aggregate principal amount | $ 75,000 | $ 75,000 |
Debt instrument term | 10 years | |
Annual fixed rate | 5.50% |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-Based Compensation | ||
Weighted average remaining contractual term (in years) | 3 years 6 months 7 days | |
Fair value of vested option shares | $ 0 | $ 0 |
Restricted stock and performance share awards | ||
Share-Based Compensation | ||
Compensation expense | 1,000,000 | 383,000 |
Unrecognized compensation cost | $ 4,000,000 | $ 3,100,000 |
Weighted-average period of recognition | 2 years 2 months 12 days | 2 years 4 months 24 days |
Restricted stock awards granted (in shares) | 133,130 | 123,833 |
Granted/modified (dollars per share) | $ 18.77 | $ 19.15 |
Stock options and warrants | ||
Share-Based Compensation | ||
Compensation expense | $ 0 | $ 18,000 |
Unrecognized compensation cost | $ 0 | $ 42,000 |
Weighted-average period of recognition | 0 years | 7 months 6 days |
Restricted stock awards | ||
Share-Based Compensation | ||
Restricted stock awards granted (in shares) | 133,130 | |
Granted/modified (dollars per share) | $ 18.77 | |
Restricted stock awards | Minimum | ||
Share-Based Compensation | ||
Award vesting period | 1 year | |
Restricted stock awards | Maximum | ||
Share-Based Compensation | ||
Award vesting period | 3 years | |
Employee Stock Option | ||
Share-Based Compensation | ||
Weighted average remaining contractual term (in years) | 3 years 6 months | |
Restricted stock awards granted (in shares) | 0 | 0 |
2015 Stock Incentive Plan | ||
Share-Based Compensation | ||
Number of shares reserved for issuance | 4,525,000 | |
Additional awards available to be granted (in shares) | 2,845,000 | |
Award vesting period | 3 years | |
Expiration period | 10 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option and Warrant Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Shares | |
Outstanding, Beginning of period (in shares) | shares | 214,890 |
Granted/modified (in shares) | shares | 0 |
Exercised (in shares) | shares | (134,850) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding, End of period (in shares) | shares | 80,040 |
Exercisable (in shares) | shares | 80,040 |
Weighted Average Exercise Price | |
Outstanding, Beginning of period (dollars per share) | $ / shares | $ 11.90 |
Granted/modified (dollars per share) | $ / shares | 0 |
Exercised (dollars per share) | $ / shares | 10.61 |
Forfeited (dollars per share) | $ / shares | 0 |
Expired (dollars per share) | $ / shares | 0 |
Outstanding, End of period (dollars per share) | $ / shares | 14.09 |
Exercisable (dollars per share) | $ / shares | $ 14.09 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, Weighted average remaining contractual term (in years) | 3 years 6 months 7 days |
Exercisable, Weighted average remaining contractual term (in years) | 3 years 6 months 7 days |
Outstanding, Aggregate intrinsic value | $ | $ 802 |
Exercisable, Aggregate intrinsic value | $ | $ 802 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shares | |
Outstanding, Beginning of period (in shares) | shares | 435,748 |
Granted/modified (in shares) | shares | 133,130 |
Vested (in shares) | shares | (86,266) |
Forfeited (in shares) | shares | (13,437) |
Outstanding, End of period (in shares) | shares | 469,175 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning of period (dollars per share) | $ / shares | $ 16.80 |
Granted/modified (dollars per share) | $ / shares | 18.77 |
Vested (dollars per share) | $ / shares | 22.01 |
Forfeited (dollars per share) | $ / shares | 18.59 |
Outstanding, Ending of period (dollars per share) | $ / shares | $ 16.62 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements Recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Total securities available-for-sale | $ 390,701 | $ 335,423 |
Interest rate derivative assets | 13,480 | 22,184 |
Interest rate derivative liabilities | 6,868 | 11,496 |
Fair Value | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 390,701 | 335,423 |
Interest rate derivative assets | 13,481 | 22,184 |
Interest rate derivative liabilities | 6,868 | 11,496 |
Fair Value | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Interest rate derivative assets | 0 | 0 |
Interest rate derivative liabilities | 0 | 0 |
Fair Value | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 390,701 | 335,423 |
Interest rate derivative assets | 13,481 | 22,184 |
Interest rate derivative liabilities | 6,868 | 11,496 |
Fair Value | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Interest rate derivative assets | 0 | 0 |
Interest rate derivative liabilities | 0 | 0 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 79,408 | 81,019 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 79,408 | 81,019 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 4,808 | 4,722 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 4,808 | 4,722 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 20,633 | 19,821 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 20,633 | 19,821 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Residential mortgage-backed securities | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 246,544 | 194,598 |
Fair Value | Residential mortgage-backed securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Residential mortgage-backed securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 246,544 | 194,598 |
Fair Value | Residential mortgage-backed securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | |
Fair Value | Commercial mortgage-backed securities | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 39,308 | 35,263 |
Fair Value | Commercial mortgage-backed securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Commercial mortgage-backed securities | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Total securities available-for-sale | 39,308 | $ 35,263 |
Fair Value | Commercial mortgage-backed securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Total securities available-for-sale | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurements Nonrecurring (Details) - Impaired Loans - Fair Value - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Assets | $ 150 | $ 2,844 |
Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value Measurements | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Measurements | ||
Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Measurements | ||
Assets | $ 150 | $ 2,844 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets | ||
Cash and due from banks | $ 32,850 | $ 16,865 |
Interest-bearing deposits in banks | 612,966 | 636,537 |
Total securities available-for-sale | 390,701 | 335,423 |
Total securities held-to-maturity | 222,549 | 200,170 |
Loans held for investment, net | 2,273,308 | 2,217,218 |
Derivative assets | 13,480 | 22,184 |
Financial liabilities | ||
Subordinated debt | 73,878 | 73,807 |
Derivative financial instruments | 6,868 | 11,496 |
Fair value, measurements, recurring | Carrying Value | ||
Financial assets | ||
Cash and due from banks | 32,850 | 16,865 |
Interest-bearing deposits in banks | 612,966 | 636,537 |
Total securities available-for-sale | 390,701 | 335,423 |
Total securities held-to-maturity | 222,535 | 200,156 |
FHLB stock | 1,808 | 2,619 |
FRB stock | 10,124 | 10,080 |
Loans held for investment, net | 2,300,814 | 2,249,036 |
Loans held for sale | 1,847 | |
Derivative assets | 13,481 | 22,184 |
Financial liabilities | ||
Deposits | 3,277,692 | 3,161,508 |
Subordinated debt | 73,878 | 73,807 |
Derivative financial instruments | 6,868 | 11,496 |
Fair value, measurements, recurring | Fair Value | ||
Financial assets | ||
Total securities available-for-sale | 390,701 | 335,423 |
Derivative assets | 13,481 | 22,184 |
Financial liabilities | ||
Derivative financial instruments | 6,868 | 11,496 |
Fair value, measurements, recurring | Fair Value | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Financial assets | ||
Cash and due from banks | 32,850 | 16,865 |
Interest-bearing deposits in banks | 612,966 | 636,537 |
Total securities available-for-sale | 0 | 0 |
Total securities held-to-maturity | 0 | 0 |
FHLB stock | 0 | 0 |
FRB stock | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Loans held for sale | 0 | |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Subordinated debt | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair value, measurements, recurring | Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in banks | 0 | 0 |
Total securities available-for-sale | 390,701 | 335,423 |
Total securities held-to-maturity | 228,422 | 214,584 |
FHLB stock | 0 | 0 |
FRB stock | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Loans held for sale | 1,847 | |
Derivative assets | 13,481 | 22,184 |
Financial liabilities | ||
Deposits | 3,281,591 | 3,120,246 |
Subordinated debt | 75,864 | 77,814 |
Derivative financial instruments | 6,868 | 11,496 |
Fair value, measurements, recurring | Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in banks | 0 | 0 |
Total securities available-for-sale | 0 | 0 |
Total securities held-to-maturity | 0 | 0 |
FHLB stock | 1,808 | 2,619 |
FRB stock | 10,124 | 10,080 |
Loans held for investment, net | 2,377,979 | 2,285,222 |
Loans held for sale | 0 | |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Subordinated debt | 0 | 0 |
Derivative financial instruments | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | ||
Financial Instruments whose contract amount represents credit risk | $ 805,002 | $ 829,898 |
Minimum lease payments | 17,483 | 17,994 |
Private equity commitments | 1,500 | |
Commitments to extend credit | ||
Commitments and Contingencies | ||
Financial Instruments whose contract amount represents credit risk | 789,869 | 813,757 |
Standby letters of credit | ||
Commitments and Contingencies | ||
Financial Instruments whose contract amount represents credit risk | 15,133 | 16,141 |
SBIC Investments | ||
Commitments and Contingencies | ||
Commitments related to investments in SBICs | $ 1,900 | $ 2,000 |
Letter of Credit | ||
Commitments and Contingencies | ||
Credit facility, expiration period (less than) | 1 year |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Deposit account analysis fees and charges | ||
Revenue Recognition | ||
Revenue from contract with customer | $ 1,406 | $ 934 |
ATM fees | ||
Revenue Recognition | ||
Revenue from contract with customer | 25 | 20 |
NSF fees | ||
Revenue Recognition | ||
Revenue from contract with customer | 12 | 18 |
Wire fees | ||
Revenue Recognition | ||
Revenue from contract with customer | 28 | 133 |
Foreign exchange fees | ||
Revenue Recognition | ||
Revenue from contract with customer | 192 | 126 |
Other | ||
Revenue Recognition | ||
Revenue from contract with customer | 1 | |
Total service charges | ||
Revenue Recognition | ||
Revenue from contract with customer | $ 1,663 | $ 1,232 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Leases | |||
Operating lease ROU assets | $ 9,500,000 | $ 9,900,000 | |
Operating lease liabilities | 14,420,000 | $ 14,900,000 | |
Rent expense | $ 503,000 | $ 603,000 | |
Minimum | |||
Leases | |||
Contract terms | 1 year | ||
Contract renewal terms | 5 years | ||
Maximum | |||
Leases | |||
Contract terms | 12 years | ||
Contract renewal terms | 10 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases | ||
Operating lease cost | $ 501 | $ 594 |
Short-term lease cost | 2 | 9 |
Sublease income | (92) | (90) |
Net lease cost | $ 411 | $ 513 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases | ||
Operating cash paid for amounts included in the measurement of lease liabilities | $ 511 | $ 560 |
Weighted-average remaining lease term - operating leases | 8 years 1 month 6 days | 8 years 9 months 18 days |
Weighted-average discount rate - operating leases | 3.03% | 3.05% |
Leases - Maturity of Remaining
Leases - Maturity of Remaining Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Maturity of remaining lease liabilities: | ||
March 31, 2022 | $ 2,263 | |
March 31, 2023 | 2,352 | |
March 31, 2024 | 1,996 | |
March 31, 2025 | 1,909 | |
March 31, 2026 | 1,880 | |
Thereafter | 7,083 | |
Total future minimum lease payments | 17,483 | $ 17,994 |
Less: Interest | (3,063) | |
Present value of net future minimum lease payments | $ 14,420 | $ 14,900 |