Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 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 | Sep. 30, 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 | 20,304,722 | |
Entity Central Index Key | 0001461755 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 25,725 | $ 16,865 |
Interest-bearing deposits in banks | 811,168 | 636,537 |
Other short-term investments | 140,848 | |
Cash and cash equivalents | 977,741 | 653,402 |
Investment securities available for sale | 535,158 | 335,423 |
Investment securities held to maturity, net of allowance for credit losses of $13 and $14 at September 30, 2021 and December 31, 2020, respectively | 237,829 | 200,156 |
Other investments | 23,877 | 25,892 |
Loans held for sale | 11,814 | |
Loans held for investment | 2,273,856 | 2,249,036 |
Less: Allowance for loan losses | (23,924) | (31,818) |
Loans held for investment, net | 2,249,932 | 2,217,218 |
Premises and equipment, net | 18,517 | 21,589 |
Bank owned life insurance | 74,000 | 72,856 |
Goodwill | 19,925 | 19,925 |
Other intangibles, net | 2,573 | 2,731 |
Other real estate owned | 16 | |
Other assets | 58,950 | 66,409 |
Total assets | 4,210,316 | 3,615,617 |
Deposits: | ||
Noninterest-bearing demand | 1,691,616 | 1,033,765 |
Interest-bearing checking | 721,525 | 760,638 |
Savings | 800 | 625 |
Money market | 930,929 | 1,030,753 |
Time | 287,865 | 241,328 |
Brokered deposits | 94,586 | 94,399 |
Total deposits | 3,727,321 | 3,161,508 |
Long-term debt | 74,024 | 73,807 |
Other liabilities | 45,046 | 41,716 |
Total liabilities | 3,846,391 | 3,277,031 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, no par value - 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2021 and December 31, 2020 | ||
Common stock, no par value - 100,000,000 shares authorized; 20,305,109 and 20,394,912 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 207,214 | 209,942 |
Retained earnings | 152,619 | 114,137 |
Accumulated other comprehensive income | 4,092 | 14,507 |
Total shareholders' equity | 363,925 | 338,586 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 4,210,316 | $ 3,615,617 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Investment securities held to maturity, net of allowance for credit losses | $ 13 | $ 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) | 20,305,109 | 20,394,912 |
Common stock outstanding (in shares) | 20,305,109 | 20,394,912 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME | ||||
Loans, including fees | $ 22,151 | $ 21,049 | $ 67,272 | $ 63,971 |
Investment securities | 3,920 | 2,910 | 11,194 | 8,683 |
Interest and dividends on other interest-earning assets | 593 | 274 | 1,226 | 1,399 |
Total interest income | 26,664 | 24,233 | 79,692 | 74,053 |
INTEREST EXPENSE | ||||
Interest on deposits | 789 | 1,151 | 2,611 | 6,632 |
Interest on Federal Home Loan Bank advances | 0 | 16 | 0 | 54 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 3 | 41 | ||
Interest on long-term debt | 1,106 | 1,345 | 3,307 | 2,997 |
Total interest expense | 1,895 | 2,515 | 5,918 | 9,724 |
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 24,769 | 21,718 | 73,774 | 64,329 |
Provision for credit losses | (2,405) | 28 | (7,857) | 16,965 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 27,174 | 21,690 | 81,631 | 47,364 |
NONINTEREST INCOME | ||||
Service charges | 1,765 | 1,217 | 5,155 | 3,530 |
Gains on sales of securities | 2 | |||
Gains on sales of other assets | 38 | (145) | 38 | (140) |
Derivatives (loss) income | 21 | 10 | 61 | 246 |
Bank owned life insurance | 391 | 363 | 1,170 | 1,092 |
SBA lending activities | 1,276 | 893 | 3,732 | 2,089 |
Other noninterest income | 1,118 | 166 | 1,597 | 452 |
Total noninterest income | 4,609 | 2,504 | 11,755 | 7,269 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 10,290 | 8,850 | 31,073 | 25,792 |
Employee retention credit | (3,035) | (3,035) | ||
Occupancy | 756 | 739 | 2,268 | 2,416 |
Equipment and software | 857 | 826 | 2,450 | 2,368 |
Professional services | 737 | 562 | 2,382 | 2,059 |
Communications and data processing | 889 | 757 | 2,550 | 2,324 |
Marketing and business development | 142 | 141 | 388 | 373 |
Travel, meals and entertainment | 91 | 39 | 148 | 213 |
FDIC premiums | 478 | 213 | 1,174 | 388 |
Merger and conversion costs | 2,899 | 2,899 | ||
Other noninterest expense | 914 | 1,586 | 3,067 | 3,561 |
Total noninterest expense | 15,018 | 13,713 | 45,364 | 39,494 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 16,765 | 10,481 | 48,022 | 15,139 |
Provision for income taxes | 3,461 | 1,863 | 9,540 | 2,548 |
NET INCOME | $ 13,304 | $ 8,618 | $ 38,482 | $ 12,591 |
Net income per common share basic | $ 0.66 | $ 0.40 | $ 1.89 | $ 0.58 |
Net income per common share diluted | $ 0.65 | $ 0.40 | $ 1.88 | $ 0.58 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 13,304 | $ 8,618 | $ 38,482 | $ 12,591 |
Unrealized (losses) gains on available-for-sale securities: | ||||
Unrealized holding (losses) gains arising during the period, net of tax of ($801), $11, ($2,427) and $1,419, respectively | (2,439) | 35 | (7,388) | 4,352 |
Reclassification adjustment for losses (gains) included in net income net of tax of $0 for all periods presented | (2) | |||
Unrealized (losses) gains on available-for-sale securities, net of tax | (2,439) | 35 | (7,390) | 4,352 |
Cash flow hedges: | ||||
Net unrealized derivative (losses) gains on cash flow hedges, net of tax of ($237), ($146), ($994) and $2,144, respectively | (720) | (447) | (3,025) | 6,565 |
Changes from cash flow hedges | (720) | (447) | (3,025) | 6,565 |
Other comprehensive (loss) income, net of tax | (3,159) | (412) | (10,415) | 10,917 |
Comprehensive income | $ 10,145 | $ 8,206 | $ 28,067 | $ 23,508 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Comprehensive Income | ||||
Tax portion of unrealized holding gains (losses) arising during the period | $ (801) | $ 11 | $ (2,427) | $ 1,419 |
Tax portion of reclassification adjustment for losses (gains) included in net income | 0 | 0 | 0 | 0 |
Tax portion of net unrealized derivative gains (losses) on cash flow hedges | $ (237) | $ (146) | $ (994) | $ 2,144 |
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 | Cumulative Effect, Period of Adoption, Adjustment | Total |
Beginning balance at Dec. 31, 2019 | $ 230,265 | $ (72) | $ 91,669 | $ 4,561 | $ (72) | $ 326,495 |
Beginning balance (in shares) at Dec. 31, 2019 | 21,751,026 | |||||
Comprehensive (loss) income: | ||||||
Net income | 12,591 | 12,591 | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 4,352 | 4,352 | ||||
Change in unrealized gains (losses) on cash flow hedges | 6,565 | 6,565 | ||||
Comprehensive income | 23,508 | |||||
Net issuance of restricted stock (in shares) | 185,901 | |||||
Issuance of common stock for option exercises | $ 660 | 660 | ||||
Issuance of common stock for option exercises (in shares) | 60,940 | |||||
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 | $ 945 | 945 | ||||
Stock-based compensation | 53 | 53 | ||||
Performance share activity | 307 | 307 | ||||
Stock repurchases | $ (12,031) | (12,031) | ||||
Stock repurchases (in shares) | (820,349) | |||||
Ending balance at Sep. 30, 2020 | $ 220,643 | 104,188 | 15,478 | 340,309 | ||
Ending balance (in shares) at Sep. 30, 2020 | 21,202,783 | |||||
Beginning balance at Jun. 30, 2020 | $ 224,520 | 95,570 | 15,890 | 335,980 | ||
Beginning balance (in shares) at Jun. 30, 2020 | 21,477,631 | |||||
Comprehensive (loss) income: | ||||||
Net income | 8,618 | 8,618 | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 35 | 35 | ||||
Change in unrealized gains (losses) on cash flow hedges | (447) | (447) | ||||
Comprehensive income | 8,206 | |||||
Net issuance of restricted stock (in shares) | 126,643 | |||||
Restricted stock activity | $ 448 | 448 | ||||
Stock-based compensation | 18 | 18 | ||||
Performance share activity | 277 | 277 | ||||
Stock repurchases | $ (4,620) | (4,620) | ||||
Stock repurchases (in shares) | (401,491) | |||||
Ending balance at Sep. 30, 2020 | $ 220,643 | 104,188 | 15,478 | 340,309 | ||
Ending balance (in shares) at Sep. 30, 2020 | 21,202,783 | |||||
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 | 38,482 | $ 38,482 | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net | (7,390) | (7,390) | ||||
Change in unrealized gains (losses) on cash flow hedges | (3,025) | (3,025) | ||||
Comprehensive income | 28,067 | |||||
Net issuance of restricted stock (in shares) | 41,370 | |||||
Issuance of common stock for option exercises | $ 962 | $ 962 | ||||
Issuance of common stock for option exercises (in shares) | 112,499 | 149,850 | ||||
Issuance of common stock for long-term incentive plan (in shares) | 28,920 | |||||
Restricted stock activity | $ 913 | $ 913 | ||||
Performance share activity | 884 | 884 | ||||
Stock repurchases | $ (5,487) | $ (5,487) | ||||
Stock repurchases (in shares) | (272,592) | (272,592) | ||||
Ending balance at Sep. 30, 2021 | $ 207,214 | 152,619 | 4,092 | $ 363,925 | ||
Ending balance (in shares) at Sep. 30, 2021 | 20,305,109 | 20,305,109 | ||||
Beginning balance at Jun. 30, 2021 | $ 206,619 | 139,315 | 7,251 | $ 353,185 | ||
Beginning balance (in shares) at Jun. 30, 2021 | 20,319,429 | |||||
Comprehensive (loss) income: | ||||||
Net income | 13,304 | 13,304 | ||||
Change in unrealized gains (losses) on investment securities available-for-sale, net | (2,439) | (2,439) | ||||
Change in unrealized gains (losses) on cash flow hedges | (720) | (720) | ||||
Comprehensive income | 10,145 | |||||
Net issuance of restricted stock (in shares) | (14,320) | |||||
Restricted stock activity | $ 188 | 188 | ||||
Performance share activity | 407 | 407 | ||||
Ending balance at Sep. 30, 2021 | $ 207,214 | $ 152,619 | $ 4,092 | $ 363,925 | ||
Ending balance (in shares) at Sep. 30, 2021 | 20,305,109 | 20,305,109 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net income | $ 38,482 | $ 12,591 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for credit losses | (7,857) | 16,965 |
Depreciation, amortization, and accretion | 4,731 | 3,726 |
Amortization of operating lease right-of-use assets | 1,323 | 1,621 |
Amortization of restricted stock and performance share compensation | 2,550 | 1,282 |
Stock option compensation | 53 | |
(Gain) loss on sales of available-for-sale securities | (2) | |
(Gain) loss on disposition of premises and equipment, net | (3) | 7 |
Net write downs and (gains) losses on sales of other real estate owned | (35) | 213 |
Net increase in cash value of bank owned life insurance | (1,144) | (1,068) |
Origination of servicing assets | (747) | (492) |
Proceeds from sales of SBA loans | 39,088 | 28,968 |
Net (gains) on sale of SBA loans | (3,161) | (1,476) |
Changes in operating assets and liabilities - | ||
Net change in loans held for sale | (11,814) | (489) |
Net change in operating lease right-of-use assets | (62) | |
Net (increase) decrease in other assets | 8,325 | (11,888) |
Net increase (decrease) in accrued expenses and other liabilities | 3,367 | 4,602 |
Net cash provided by operating activities | 73,103 | 54,553 |
Activity in securities available-for-sale: | ||
Prepayments | 51,311 | 24,767 |
Maturities and calls | 6,650 | 1,690 |
Sales | 750 | |
Purchases | (269,915) | |
Activity in securities held to maturity: | ||
Prepayments | 24 | |
Purchases | (38,032) | (69,141) |
Net change in loans held for investment | (61,532) | (344,743) |
(Purchases) proceeds of Federal Home Loan Bank stock, net | 811 | 61 |
(Purchases) proceeds of Federal Reserve Bank stock, net | (43) | (82) |
Proceeds from sales of other real estate owned | 51 | 533 |
(Purchases) of premises and equipment, net | (85) | (3,313) |
Net cash (used in) investing activities | (310,010) | (390,228) |
FINANCING ACTIVITIES | ||
Net change in deposits | 565,813 | (30,324) |
Proceeds from Federal Home Loan Bank advances | 345,000 | |
Repayments of Federal Home Loan Bank advances | (345,000) | |
Proceeds from exercise of stock options | 920 | 660 |
Issuance of subordinated debt | 75,000 | |
Repayment of subordinated debt | (50,000) | |
Repurchase of common stock | (5,487) | (12,031) |
Net cash provided by (used in) financing activities | 561,246 | (16,695) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 324,339 | (352,370) |
CASH AND CASH EQUIVALENTS - beginning of period | 653,402 | 466,328 |
CASH AND CASH EQUIVALENTS - end of period | 977,741 | 113,958 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest paid | 7,057 | 9,990 |
Income taxes paid | $ 6,631 | $ 2,334 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 9 Months Ended |
Sep. 30, 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. Proposed Merger with SouthState Corporation On July 23, 2021, Atlantic Capital and SouthState Corporation, a South Carolina corporation, entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Atlantic Capital will merge with and into SouthState, with SouthState as the surviving corporation, in an all-stock transaction (the “Merger”). Following the Merger, the Bank will merge with and into SouthState Bank, National Association, a wholly owned subsidiary of SouthState (“SouthState Bank”), with SouthState Bank as the surviving entity. The Merger Agreement was unanimously approved by the board of directors of each of Atlantic Capital and SouthState. Completion of the merger is subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of Atlantic Capital. The transaction is expected to close in the first quarter of 2022. Subject to the terms of the Merger Agreement, Atlantic Capital shareholders will receive 0.36 shares of SouthState common stock, par value $2.50 per share (“SouthState common stock”), for each outstanding share of Atlantic Capital common stock. Additionally, two Atlantic Capital directors will join both SouthState's board and the SouthState Bank board. |
Accounting Standards Updates an
Accounting Standards Updates and Recently Adopted Standards | 9 Months Ended |
Sep. 30, 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. The Company does In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Finally, it clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 was effective for interim and annual reporting periods beginning after December 15, 2020 and did not have a material impact on Atlantic Capital’s financial position or results of operations. 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 | 9 Months Ended |
Sep. 30, 2021 | |
Balance Sheet Offsetting | |
Balance Sheet Offsetting | NOTE 3 – BALANCE SHEET OFFSETTING Atlantic Capital enters into reverse repurchase agreements to invest short-term funds. The Company 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 September 30, 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 September 30, 2021 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 140,848 $ — $ 140,848 $ (140,848) $ — — — Derivatives $ 13,424 $ — $ 13,424 $ — $ (5,240) $ 8,184 Total $ 154,272 $ — $ 154,272 $ (140,848) $ (5,240) $ 8,184 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 Repurchase agreements $ — $ — $ — $ — $ — $ — Derivatives $ 6,825 $ — $ 6,825 $ (6,825) $ 330 $ (6,495) Total $ 6,825 $ — $ 6,825 $ (6,825) $ 330 $ (6,495) 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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) September 30, 2021 Available-For-Sale U.S. states and political divisions $ 74,608 $ 2,094 $ — $ 76,702 Trust preferred securities 4,855 16 — 4,871 Corporate debt securities 24,006 368 — 24,374 Residential mortgage-backed securities 406,147 2,502 (6,347) 402,302 Commercial mortgage-backed securities 26,381 657 (129) 26,909 Total available-for-sale 535,997 5,637 (6,476) 535,158 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 237,842 10,593 (2,506) 245,929 (13) 237,829 Total held-to-maturity 237,842 10,593 (2,506) 245,929 (13) 237,829 Total securities $ 773,839 $ 16,230 $ (8,982) $ 781,087 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 and nine months ended September 30, 2021 and 2020. For the Three Months Ended September 30, 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 $ 11 $ 2 $ 13 Provision for credit losses (2) 2 — Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 For the Nine Months Ended September 30, 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 (1) — (1) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 For the Three Months Ended September 30, 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 $ 9 $ 4 $ 13 Provision for credit losses 2 — 2 Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 11 $ 4 $ 15 For the Nine Months Ended September 30, 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 (2) (3) (5) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 11 $ 4 $ 15 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 $1.7 million at September 30, 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 $1.4 million and $1.2 million at September 30, 2021 and December 31, 2020, respectively, 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 September 30, 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 September 30, 2021 (in thousands) Aaa $ 58,171 $ 37,375 $ 95,546 Aa1 42,772 16,916 59,688 Aa2 37,922 28,927 66,849 Aa3 11,586 1,981 13,567 A1 2,191 1 2,192 Total $ 152,642 $ 85,200 $ 237,842 As of September 30, 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 September 30, 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 $ 4,505 $ 4,554 $ — $ — After 1 year through 5 years 12,538 12,772 — — After 5 years through 10 years 40,674 41,663 309 312 After 10 years 45,752 46,958 237,533 245,617 103,469 105,947 237,842 245,929 Residential mortgage-backed securities 406,147 402,302 — — Commercial mortgage-backed securities 26,381 26,909 — — Total $ 535,997 $ 535,158 $ 237,842 $ 245,929 The following table summarizes available-for-sale and held-to-maturity securities in an unrealized loss position as of September 30, 2021 and December 31, 2020. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale Residential mortgage-backed securities $ 332,099 $ (6,337) $ 160 $ (10) $ 332,259 $ (6,347) Commercial mortgage-backed securities 3,623 (129) — — 3,623 (129) Total available-for-sale 335,722 (6,466) 160 (10) 335,882 (6,476) Held-to-Maturity U.S. states and political divisions 51,775 (2,506) — — 51,775 (2,506) Total held-to-maturity 51,775 (2,506) — — 51,775 (2,506) Total securities $ 387,497 $ (8,972) $ 160 $ (10) $ 387,657 $ (8,982) 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 September 30, 2021, there were 50 available-for-sale securities that were in an unrealized loss position. There were also 26 held-to-maturity securities that were in an unrealized loss position at September 30, 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 September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) 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 $43.3 million and $43.9 million were pledged to secure public funds and other borrowings at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, Atlantic Capital had investments with a carrying value of $5.3 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 three and nine months ended September 30, 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 Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Allowance for Credit Losses | |
Loans and Allowance for Credit Losses | NOTE 5 – LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio as of September 30, 2021 and December 31, 2020, is summarized below. September 30, 2021 December 31, 2020 (in thousands) Loans held for sale Loans held for sale $ 11,814 $ — Total loans held for sale $ 11,814 $ — Loans held for investment Commercial loans: Commercial and industrial $ 838,741 $ 952,805 Commercial real estate 960,319 909,101 Construction and land 205,148 145,595 Total commercial loans 2,004,208 2,007,501 Residential: Residential mortgages 47,076 33,783 Home equity 28,943 25,443 Total residential loans 76,019 59,226 Consumer 192,462 176,066 Other 4,921 13,897 Total loans 2,277,610 2,256,690 Less net deferred fees and other unearned income (3,754) (7,654) Less allowance for credit losses on loans (23,924) (31,818) Loans held for investment, net $ 2,249,932 $ 2,217,218 At September 30, 2021 and December 31, 2020, loans with a carrying value of $525.4 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 September 30, 2021, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $180,000 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 $9.4 million at September 30, 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 September 30, 2021 and December 31, 2020 was $31,000 and $49,000, respectively, related to accrued interest receivable totaling $3.6 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 and nine months ended September 30, 2021 and 2020. For the Three Months Ended September 30, 2021 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 25,070 $ 519 $ 534 $ 26,123 Provision for loan losses (2,071) (58) (92) (2,221) Loans charged-off (131) — — (131) Recoveries 151 — 2 153 Total ending allowance balance $ 23,019 $ 461 $ 444 $ 23,924 For the Three Months Ended September 30, 2020 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 30,834 $ 517 $ 254 $ 31,605 Provision for loan losses (83) 149 570 636 Loans charged-off (404) — — (404) Recoveries 56 — 1 57 Total ending allowance balance $ 30,403 $ 666 $ 825 $ 31,894 For the Nine Months Ended September 30, 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 (6,604) (47) (458) (7,109) Loans charged-off (805) (223) — (1,028) Recoveries 207 32 4 243 Total ending allowance balance $ 23,019 $ 461 $ 444 $ 23,924 For the Nine Months Ended September 30, 2020 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 18,203 $ 145 $ 187 $ 18,535 Impact of adopting ASC 326 (947) 8 85 (854) Provision for loan losses 15,051 673 543 16,267 Loans charged-off (1,979) (161) — (2,140) Recoveries 75 1 10 86 Total ending allowance balance $ 30,403 $ 666 $ 825 $ 31,894 The decrease in the allowance for credit losses at September 30, 2021 compared to December 31, 2020 was due to an improvement in the CECL economic forecast partially offset by growth in commercial real estate loans and in construction 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 September 30, 2021 and December 31, 2020, the Company had a recorded investment in TDRs of $13.2 million and $14.2 million, respectively. The Company allocated $502,000 in allowance for those loans at September 30, 2021 and had no commitments to lend additional funds on loans modified as TDRs as of September 30, 2021 and December 31, 2020. There were no loans modified as TDRs during the three and nine months ended September 30, 2021, nor during the three months ended September 30, 2020. Loans, by portfolio class, modified as TDRs during the nine months ended September 30, 2020 are as follows: Number of Loans Outstanding Balance Increase in Allowance (in thousands) Nine Months Ended September 30, 2020 Commercial and industrial 1 $ 65 $ 3 Commercial real estate 1 1,920 188 Total 2 $ 1,985 $ 191 The Company did not forgive any principal on TDRs during the three and nine months ended September 30, 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 and nine months ended September 30, 2020, and within twelve months of their modification date. There were no loans modified as TDRs that defaulted during the three and nine months ended September 30, 2021, and within twelve months of their modification date. Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Number of Loans Outstanding Balance Number of Loans Outstanding Balance (in thousands) Commercial - $ - 2 $ 310 Total - $ - 2 $ 310 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 September 30, 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) September 30, 2021 Commercial - commercial and industrial: Risk rating Pass $ 261,015 $ 102,552 $ 70,930 $ 54,530 $ 38,707 $ 47,740 $ 223,244 $ 798,718 Special mention 425 500 4,807 6,585 430 834 5,067 18,648 Substandard — 650 5,690 10,918 — 702 3,043 21,003 Doubtful — — — 372 — — — 372 Total commercial - commercial and industrial $ 261,440 $ 103,702 $ 81,427 $ 72,405 $ 39,137 $ 49,276 $ 231,354 $ 838,741 Commercial - commercial real estate: Risk rating Pass $ 150,774 $ 89,754 $ 153,456 $ 128,454 $ 59,061 $ 318,772 $ 18,110 $ 918,381 Special mention — 2,899 10,157 1,401 256 7,016 1,212 22,941 Substandard — — — 5,711 2,959 10,327 — 18,997 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 150,774 $ 92,653 $ 163,613 $ 135,566 $ 62,276 $ 336,115 $ 19,322 $ 960,319 Commercial - construction and land: Risk rating Pass $ 54,177 $ 90,936 $ 34,842 $ 88 $ — $ — $ 25,105 $ 205,148 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 54,177 $ 90,936 $ 34,842 $ 88 $ — $ — $ 25,105 $ 205,148 Residential - mortgages: Risk rating Pass $ 6,858 $ 9,002 $ 2,871 $ 14,538 $ 4,548 $ 8,189 $ — $ 46,006 Special mention — — — 160 728 — — 888 Substandard — — — 156 — 26 — 182 Doubtful — — — — — — — — Total residential - mortgage loans $ 6,858 $ 9,002 $ 2,871 $ 14,854 $ 5,276 $ 8,215 $ — $ 47,076 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ — $ 28,018 $ 28,018 Special mention — — — — — — 726 726 Substandard — — — — — — 199 199 Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ — $ 28,943 $ 28,943 Consumer: Risk rating Pass $ 153,819 $ 31,763 $ 2,152 $ — $ 22 $ 3,700 $ 1,006 $ 192,462 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 153,819 $ 31,763 $ 2,152 $ — $ 22 $ 3,700 $ 1,006 $ 192,462 Other: Risk rating Pass $ 64 $ — $ — $ 1,551 $ 1,164 $ 549 $ — $ 3,328 Special mention — — — — — — — — Substandard — — — — 1,593 — — 1,593 Doubtful — — — — — — — — Total other loans $ 64 $ — $ — $ 1,551 $ 2,757 $ 549 $ — $ 4,921 Total: Pass $ 626,707 $ 324,007 $ 264,251 $ 199,161 $ 103,502 $ 378,950 $ 295,483 $ 2,192,061 Special Mention 425 3,399 14,964 8,146 1,414 7,850 7,005 43,203 Substandard — 650 5,690 16,785 4,552 11,055 3,242 41,974 Doubtful — — — 372 — — — 372 Total $ 627,132 $ 328,056 $ 284,905 $ 224,464 $ 109,468 $ 397,855 $ 305,730 $ 2,277,610 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 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 September 30, 2021 and December 31, 2020: As of September 30, 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 $ — $ 2,445 $ 2,445 $ — Commercial real estate 13 — 13 — Total commercial loans 13 2,445 2,458 — Residential mortgages 1,619 — 1,619 — Total loans $ 1,632 $ 2,445 $ 4,077 $ — 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 and nine months ended September 30, 2021 and 2020 had performing TDRs performed in accordance with the original terms is immaterial. Atlantic Capital recognized interest income on nonaccrual loans of $58,000 and $103,000 during the three and nine months ended September 30, 2021, respectively. During the three and nine months ended September 30, 2020, Atlantic Capital recognized interest income on nonaccrual loans of $41,000 and $123,000, respectively. The following table presents the amortized cost basis of collateral dependent impaired loans by class of loans as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Real SBA Property Equipment Guaranty Total Commercial and industrial $ 13 $ — $ 1,022 $ 1,035 Residential mortgages 1,024 27 568 1,619 Total loans $ 1,037 $ 27 $ 1,590 $ 2,654 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 September 30, 2021 and December 31, 2020 by class of loans. As of September 30, 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 $ 1,145 $ 848 $ — $ 2,445 $ 4,438 $ 834,303 $ 838,741 Commercial real estate 4,738 — — 13 4,751 955,568 960,319 Construction and land — — — — — 205,148 205,148 Residential mortgages 1,369 — — 1,619 2,988 44,088 47,076 Home equity 199 — — — 199 28,744 28,943 Consumer 12,069 5,471 — — 17,540 179,843 197,383 Total Loans $ 19,520 $ 6,319 $ — $ 4,077 $ 29,916 $ 2,247,694 $ 2,277,610 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 and nine months ended September 30, 2021 and 2020 by portfolio class. Of the loans sold where the Company has continuing involvement, $4.9 million and $8.4 million were past due thirty days or greater at September 30, 2021 and December 31, 2020, respectively. These amounts are included in the past due table above. For the three months ended September 30, 2021 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 279 $ - $ - $ 279 SBA Sales 10,615 3,036 - 13,651 Total Loans $ 10,894 $ 3,036 $ - $ 13,930 For the nine months ended September 30, 2021 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 1,349 $ 2,708 $ 1,362 $ 5,419 SBA Sales 26,881 11,543 664 39,088 Total Loans $ 28,230 $ 14,251 $ 2,026 $ 44,507 For the three months ended September 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 1,015 $ - $ - $ 1,015 SBA Sales 10,258 772 - 11,030 Total Loans $ 11,273 $ 772 $ - $ 12,045 For the nine months ended September 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 2,338 $ 1,467 $ - $ 3,805 SBA Sales 26,427 2,264 277 28,968 Total Loans $ 28,765 $ 3,731 $ 277 $ 32,773 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 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 nine 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 nine months of 2021. The following table presents the balances for goodwill and other intangible assets: September 30, December 31, 2021 2020 (in thousands) Servicing assets, net $ 2,573 $ 2,731 Total intangibles subject to amortization, net 2,573 2,731 Goodwill 19,925 19,925 Total goodwill and other intangible assets, net $ 22,498 $ 22,656 |
Servicing Assets
Servicing Assets | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020, the balance of SBA loans sold and serviced by Atlantic Capital totaled $195.7 million and $192.9 million, respectively. Changes in the balance of servicing assets for the three and nine months ended September 30, 2021 and 2020 are presented in the following table . Three Months Ended September 30, Nine Months Ended September 30, SBA Loan Servicing Assets 2021 2020 2021 2020 (in thousands) (in thousands) Beginning carrying value, net $ 2,537 $ 2,503 $ 2,569 $ 2,731 Additions 262 190 746 492 Amortization (296) (202) (812) (732) Ending carrying value $ 2,503 $ 2,491 $ 2,503 $ 2,491 At September 30, 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 September 30, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 2,782 $ 2,907 Weighted average life 3.27 years 3.17 years Prepayment speed: 17.40 % 18.03 % Decline in fair value due to a 10% adverse change $ (135) $ (123) Decline in fair value due to a 20% adverse change $ (258) $ (236) Weighted average discount rate 12.37 % 12.49 % Decline in fair value due to a 100 bps adverse change $ (68) $ (59) Decline in fair value due to a 200 bps adverse change $ (133) $ (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 and nine months ended September 30, 2021 and 2020 are presented in the following table. Three Months Ended September 30, Nine Months Ended September 30, TriNet Servicing Assets 2021 2020 2021 2020 (in thousands) (in thousands) Beginning carrying value, net $ 100 $ 228 $ 162 $ 296 Amortization (30) (33) (92) (101) Ending carrying value $ 70 $ 195 $ 70 $ 195 At September 30, 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 September 30, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 212 $ 298 Weighted average life 3.78 years 4.58 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (2) $ (3) Decline in fair value due to a 20% adverse change $ (3) $ (6) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (3) $ (5) Decline in fair value due to a 200 bps adverse change $ (6) $ (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) | 9 Months Ended |
Sep. 30, 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 For the Nine Months Ended September 30, 2021 September 30, 2021 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit (1) Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 9,650 $ (2,399) $ 7,251 $ 19,289 $ (4,782) $ 14,507 Unrealized net (losses) gains on investment securities available-for-sale (3,240) 801 (2,439) (9,817) 2,427 (7,390) Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale (2) — — — (2) — (2) Unrealized net (losses) gains on derivatives (957) 237 (720) (4,017) 994 (3,023) Accumulated other comprehensive income (loss) end of period $ 5,453 $ (1,361) $ 4,092 $ 5,453 $ (1,361) $ 4,092 For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2020 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 21,108 $ (5,218) $ 15,890 $ 6,081 $ (1,520) $ 4,561 Unrealized net gains (losses) on investment securities available-for-sale 46 (11) 35 5,771 (1,419) 4,352 Unrealized net gains (losses) on derivatives (593) 146 (447) 8,709 (2,144) 6,565 Accumulated other comprehensive income (loss) end of period $ 20,561 $ (5,083) $ 15,478 $ 20,561 $ (5,083) $ 15,478 (1) The tax impact of each component of accumulated other comprehensive income (loss) 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 | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2021 and 2020. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands, except share and per share amounts) Net income available to common shareholders $ 13,304 $ 8,618 $ 38,482 $ 12,591 Weighted average shares outstanding Basic (1) 20,308,761 21,500,735 20,340,182 21,553,953 Effect of dilutive securities: Stock options and performance share awards 198,843 43,070 168,593 86,104 Diluted 20,507,604 21,543,805 20,508,775 21,640,057 Net income per common share: Basic $ 0.66 $ 0.40 $ 1.89 $ 0.58 Diluted 0.65 0.40 $ 1.88 $ 0.58 (1) Unvested restricted shares are participating securities and included in basic share calculations. Stock options outstanding of 109,446 at September 30, 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 September 30, 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 20,305,109 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 and nine months ended September 30, 2021. No dividends were paid by the Bank to Atlantic Capital during the three months ended September 30, 2020. For the nine months ended September 30, 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 first nine months of 2021, the Company repurchased 272,592 shares totaling $5.5 million. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 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 $2.0 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 minimizes its net risk exposure resulting from such transactions. The derivative contracts are structured such that the notional amounts reduce over time to generally match the expected amortization of the underlying loans. These derivatives are not speculative and arise from a service provided to clients. 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 September 30, 2021 and December 31, 2020, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $58.5 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 September 30, 2021 and December 31, 2020, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $122.7 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 September 30, 2021 and December 31, 2020, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $9.6 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 September 30, 2021 and December 31, 2020, Atlantic Capital had credit risk participation agreements with a notional amount of $2.5 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 September 30, 2021 and December 31, 2020: Derivatives designated as hedging instruments under ASC 815 September 30, 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 $ 6,655 $ 125,000 $ 10,799 Cash flow hedge of LIBOR based loans Other liabilities $ — $ — $ — $ — Derivatives not designated as hedging instruments under ASC 815 September 30, 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 $ 29,239 $ 1,246 $ 34,224 $ 2,057 Zero premium collar Other assets 61,354 5,522 68,527 9,328 $ 90,593 $ 6,768 $ 102,751 $ 11,385 Dealer offsets to customer swap positions Other liabilities $ 29,239 $ 1,264 $ 34,224 $ 2,087 Dealer offset to zero premium collar Other liabilities 61,354 5,560 68,527 9,398 Credit risk participation Other liabilities 2,501 — 5,782 11 $ 93,094 $ 6,824 $ 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 and nine months ended September 30, 2021 and 2020. Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivative Recognized in Income on Derivatives (in thousands) Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest rate products Other income $ 19 $ 7 $ 51 $ 249 Other contracts Other income 2 3 10 (3) Total $ 21 $ 10 $ 61 $ 246 The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and nine months ended September 30, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, Amount of Gain or Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified from (Loss) Recognized in Gain or (Loss) Reclassified from OCI on Derivatives Accumulated OCI in Income OCI on Derivatives Accumulated OCI in Income (Effective Portion) (Effective Portion) (Effective Portion) (Effective Portion) (in thousands) 2021 2020 Location 2021 2020 2021 2020 Location 2021 2020 Interest rate swaps $ (869) $ (611) Interest income $ (637) $ (619) $ (4,444) $ 8,657 Interest income $ (1,878) $ (1,271) |
Other Borrowings and Long Term
Other Borrowings and Long Term Debt | 9 Months Ended |
Sep. 30, 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 September 30, 2021, and December 31, 2020. There was no interest expense for FHLB borrowings for the three and nine months ended September 30, 2021. For the three and nine months ended September 30, 2020, interest expense for FHLB borrowings totaled $16,000 and $54,000, respectively. At September 30, 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, $84.3 million was available. At September 30, 2021, the Company had an available line of credit based on the collateral available of $298.7 million with the FRB. There was no interest expense on federal funds purchased for the three and nine months ended September 30, 2021. Interest expense on federal funds purchased for the three and nine months ended September 30, 2020, was $3,000 and $41,000, respectively. 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: September 30, 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 976 1,193 Subordinated debt, net $ 74,024 $ 73,807 All subordinated debt outstanding at September 30, 2021 matures after more than five years. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 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; an 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 September 30, 2021, approximately 2,838,000 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 and nine months ended For the three and nine months ended tock-based compensation expense for stock option grants was $18,000 and $53,000 , respectively. There was no unrecognized stock-based compensation expense related to stock option grants at $6,000 . At and 2020, the weighted average period over which this unrecognized expense is expected to be recognized was 0 years and 0.1 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 nine months ended September 30, 2021 or 2020. The following table represents stock option activity for the nine months ended September 30, 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 (1) — — Exercised (149,850) 10.71 Forfeited (1) — — Expired — — Outstanding, September 30, 2021 65,040 $ 14.66 3.47 $ 769 Exercisable, September 30, 2021 65,040 $ 14.66 3.47 $ 769 (1) During the nine months ended September 30, 2021, the Company did not modify any options. The total fair value of option shares vested for both the nine 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 and nine months ended September was $973,000 and $2.8 million, respectively, and $620,000 and $1.6 million for the three and nine months ended . Unrecognized compensation expense associated with restricted stock was $3.1 million and $3.8 million as of September 30, 2021 and 2020, respectively. At September 30, 2021 and September 30, 2020, the weighted average period over which this unrecognized expense is to be recognized was 1.9 years and 2.3 years, respectively. During the three and nine months ended September 30, 2021, there were 3,137 and 153,739 restricted stock and performance share awards granted at a weighted average grant price of $24.24 and $19.51 per share, respectively. During the three and nine months ended September 30, 2020, there were 136,155 and 278,705 restricted stock and performance share awards granted at a weighted average grant price of $11.05 and $14.67 per share, respectively. The Company did not modify any options during the nine months ended September 30, 2021 or 2020. The following table represents restricted stock and performance share award activity for the nine months ended September 30, 2021: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2020 435,748 $ 16.80 Granted/modified 153,739 19.51 Vested (175,209) 17.60 Forfeited (18,997) 17.54 Outstanding, September 30, 2021 395,281 $ 17.75 ● . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 13 – FAIR VALUE MEASUREMENTS Accounting standards define 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 September 30, 2021 and December 31, 2020. Fair Value Measurements at September 30, 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 $ — $ 76,702 $ — $ 76,702 Trust preferred securities — 4,871 — 4,871 Corporate debt securities — 24,374 — 24,374 Residential mortgage-backed securities — 402,302 — 402,302 Commercial mortgage-backed securities — 26,909 — 26,909 Total securities available-for-sale $ — $ 535,158 $ — $ 535,158 Interest rate derivative assets $ — $ 13,423 $ — $ 13,423 Interest rate derivative liabilities $ — $ 6,824 $ — $ 6,824 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 September 30, 2021 and December 31, 2020. For the nine months ended September 30, 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 September 30, 2021 and December 31, 2020. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value September 30, 2021 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 2,403 $ 2,403 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 September 30, 2021 and December 31, 2020. Fair Value Measurements at September 30, 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 $ 25,725 $ 25,725 $ — $ — Interest-bearing deposits in banks 811,168 811,168 — — Other short-term investments 140,848 140,848 — — Total securities available-for-sale 535,158 — 535,158 — Total securities held-to-maturity 237,829 — 245,929 — FHLB stock 1,808 — — 1,808 FRB stock 10,124 — — 10,124 Loans held for investment, net 2,273,856 — — 2,357,246 Loans held for sale 11,814 — 11,814 — Derivative assets 13,423 — 13,423 — Financial liabilities: Deposits $ 3,727,321 $ — $ 3,726,074 $ — Subordinated debt 74,024 — 78,030 — Derivative financial instruments 6,824 — 6,824 — 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 850,016 $ 813,757 Standby letters of credit 21,668 16,141 $ 871,684 $ 829,898 Minimum lease payments $ 16,412 $ 17,994 The Company also had commitments related to investments in SBICs totaling $1.5 million and $2.0 million at September 30, 2021 and December 31, 2020, respectively. In addition, Atlantic Capital had private equity commitments totaling $1.2 million and $1.5 million at September 30, 2021 and December 31, 2020, respectively. 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 | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2021 and 2020: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Deposit account analysis fees and charges $ 1,630 $ 1,080 $ 4,546 $ 3,012 ATM fees 31 10 82 46 NSF fees 9 5 30 30 Wire fees 22 18 73 166 Foreign exchange fees 73 104 423 272 Other — — 1 4 Total service charges $ 1,765 $ 1,217 $ 5,155 $ 3,530 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 September 30, 2021 and December 31, 2020, the Company did not have any significant contract balances. |
Leases
Leases | 9 Months Ended |
Sep. 30, 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 for the three and nine months ended September 30, 2021, was $478,000 and $1.5 million, respectively. For the three and nine months ended September 30, 2020, rent expense was $520,000 and $1.7 million, respectively, which was included in occupancy expense in the Consolidated Statements of Income. The table below summarizes the Company’s net lease cost: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Operating lease cost $ 478 $ 510 $ 1,509 $ 1,696 Short-term lease cost — 10 2 25 Sublease income (126) (91) (312) (273) Net lease cost $ 352 $ 429 $ 1,199 $ 1,448 The tables below summarize other information related to the Company’s operating leases: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 554 $ 530 $ 1,581 $ 1,655 Right-of-use assets obtained in exchange for new finance lease liabilities — 62 — 62 As of September 30, 2021 2020 Weighted-average remaining lease term - operating leases 7.7 years 8.5 years Weighted-average discount rate - operating leases 3.03 % 3.04 % The table below summarizes the maturity of remaining lease liabilities: September 30, 2021 (in thousands) Twelve Months Ended: September 30, 2022 $ 2,403 September 30, 2023 2,136 September 30, 2024 1,966 September 30, 2025 1,905 September 30, 2026 1,831 Thereafter 6,171 Total future minimum lease payments 16,412 Less: Interest (2,984) Present value of net future minimum lease payments $ 13,428 |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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. |
Proposed Merger with SouthState Corporation | Proposed Merger with SouthState Corporation On July 23, 2021, Atlantic Capital and SouthState Corporation, a South Carolina corporation, entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Atlantic Capital will merge with and into SouthState, with SouthState as the surviving corporation, in an all-stock transaction (the “Merger”). Following the Merger, the Bank will merge with and into SouthState Bank, National Association, a wholly owned subsidiary of SouthState (“SouthState Bank”), with SouthState Bank as the surviving entity. The Merger Agreement was unanimously approved by the board of directors of each of Atlantic Capital and SouthState. Completion of the merger is subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of Atlantic Capital. The transaction is expected to close in the first quarter of 2022. Subject to the terms of the Merger Agreement, Atlantic Capital shareholders will receive 0.36 shares of SouthState common stock, par value $2.50 per share (“SouthState common stock”), for each outstanding share of Atlantic Capital common stock. Additionally, two Atlantic Capital directors will join both SouthState's board and the SouthState Bank board. |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2021 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 140,848 $ — $ 140,848 $ (140,848) $ — — — Derivatives $ 13,424 $ — $ 13,424 $ — $ (5,240) $ 8,184 Total $ 154,272 $ — $ 154,272 $ (140,848) $ (5,240) $ 8,184 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 Repurchase agreements $ — $ — $ — $ — $ — $ — Derivatives $ 6,825 $ — $ 6,825 $ (6,825) $ 330 $ (6,495) Total $ 6,825 $ — $ 6,825 $ (6,825) $ 330 $ (6,495) 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 September 30, 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 September 30, 2021 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 140,848 $ — $ 140,848 $ (140,848) $ — — — Derivatives $ 13,424 $ — $ 13,424 $ — $ (5,240) $ 8,184 Total $ 154,272 $ — $ 154,272 $ (140,848) $ (5,240) $ 8,184 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 Repurchase agreements $ — $ — $ — $ — $ — $ — Derivatives $ 6,825 $ — $ 6,825 $ (6,825) $ 330 $ (6,495) Total $ 6,825 $ — $ 6,825 $ (6,825) $ 330 $ (6,495) 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) | 9 Months Ended |
Sep. 30, 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 September 30, 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) September 30, 2021 Available-For-Sale U.S. states and political divisions $ 74,608 $ 2,094 $ — $ 76,702 Trust preferred securities 4,855 16 — 4,871 Corporate debt securities 24,006 368 — 24,374 Residential mortgage-backed securities 406,147 2,502 (6,347) 402,302 Commercial mortgage-backed securities 26,381 657 (129) 26,909 Total available-for-sale 535,997 5,637 (6,476) 535,158 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 237,842 10,593 (2,506) 245,929 (13) 237,829 Total held-to-maturity 237,842 10,593 (2,506) 245,929 (13) 237,829 Total securities $ 773,839 $ 16,230 $ (8,982) $ 781,087 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 and nine months ended September 30, 2021 and 2020. For the Three Months Ended September 30, 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 $ 11 $ 2 $ 13 Provision for credit losses (2) 2 — Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 For the Nine Months Ended September 30, 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 (1) — (1) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 For the Three Months Ended September 30, 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 $ 9 $ 4 $ 13 Provision for credit losses 2 — 2 Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 11 $ 4 $ 15 For the Nine Months Ended September 30, 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 (2) (3) (5) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 11 $ 4 $ 15 |
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 September 30, 2021 (in thousands) Aaa $ 58,171 $ 37,375 $ 95,546 Aa1 42,772 16,916 59,688 Aa2 37,922 28,927 66,849 Aa3 11,586 1,981 13,567 A1 2,191 1 2,192 Total $ 152,642 $ 85,200 $ 237,842 |
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 September 30, 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 $ 4,505 $ 4,554 $ — $ — After 1 year through 5 years 12,538 12,772 — — After 5 years through 10 years 40,674 41,663 309 312 After 10 years 45,752 46,958 237,533 245,617 103,469 105,947 237,842 245,929 Residential mortgage-backed securities 406,147 402,302 — — Commercial mortgage-backed securities 26,381 26,909 — — Total $ 535,997 $ 535,158 $ 237,842 $ 245,929 |
Continuous Unrealized Loss Position, Fair Value | Available-For-Sale Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) Within 1 year $ 4,505 $ 4,554 $ — $ — After 1 year through 5 years 12,538 12,772 — — After 5 years through 10 years 40,674 41,663 309 312 After 10 years 45,752 46,958 237,533 245,617 103,469 105,947 237,842 245,929 Residential mortgage-backed securities 406,147 402,302 — — Commercial mortgage-backed securities 26,381 26,909 — — Total $ 535,997 $ 535,158 $ 237,842 $ 245,929 |
Schedule of Realized Gain (Loss) on Securities | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Proceeds from sales $ — $ — $ 750 $ — Gross realized gains — $ — $ 2 $ — Gross realized losses — — — — Net gains on sales of securities $ — $ — $ 2 $ — |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and Allowance for Credit Losses | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio as of September 30, 2021 and December 31, 2020, is summarized below. September 30, 2021 December 31, 2020 (in thousands) Loans held for sale Loans held for sale $ 11,814 $ — Total loans held for sale $ 11,814 $ — Loans held for investment Commercial loans: Commercial and industrial $ 838,741 $ 952,805 Commercial real estate 960,319 909,101 Construction and land 205,148 145,595 Total commercial loans 2,004,208 2,007,501 Residential: Residential mortgages 47,076 33,783 Home equity 28,943 25,443 Total residential loans 76,019 59,226 Consumer 192,462 176,066 Other 4,921 13,897 Total loans 2,277,610 2,256,690 Less net deferred fees and other unearned income (3,754) (7,654) Less allowance for credit losses on loans (23,924) (31,818) Loans held for investment, net $ 2,249,932 $ 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 and nine months ended September 30, 2021 and 2020. For the Three Months Ended September 30, 2021 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 25,070 $ 519 $ 534 $ 26,123 Provision for loan losses (2,071) (58) (92) (2,221) Loans charged-off (131) — — (131) Recoveries 151 — 2 153 Total ending allowance balance $ 23,019 $ 461 $ 444 $ 23,924 For the Three Months Ended September 30, 2020 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 30,834 $ 517 $ 254 $ 31,605 Provision for loan losses (83) 149 570 636 Loans charged-off (404) — — (404) Recoveries 56 — 1 57 Total ending allowance balance $ 30,403 $ 666 $ 825 $ 31,894 For the Nine Months Ended September 30, 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 (6,604) (47) (458) (7,109) Loans charged-off (805) (223) — (1,028) Recoveries 207 32 4 243 Total ending allowance balance $ 23,019 $ 461 $ 444 $ 23,924 For the Nine Months Ended September 30, 2020 Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance $ 18,203 $ 145 $ 187 $ 18,535 Impact of adopting ASC 326 (947) 8 85 (854) Provision for loan losses 15,051 673 543 16,267 Loans charged-off (1,979) (161) — (2,140) Recoveries 75 1 10 86 Total ending allowance balance $ 30,403 $ 666 $ 825 $ 31,894 |
Schedule of troubled debt restructurings on financing receivables | Number of Loans Outstanding Balance Increase in Allowance (in thousands) Nine Months Ended September 30, 2020 Commercial and industrial 1 $ 65 $ 3 Commercial real estate 1 1,920 188 Total 2 $ 1,985 $ 191 |
Schedule of financing receivable modifications subsequent default | Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Number of Loans Outstanding Balance Number of Loans Outstanding Balance (in thousands) Commercial - $ - 2 $ 310 Total - $ - 2 $ 310 |
Schedule of Financing Receivable Credit Quality Indicators | As of September 30, 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) September 30, 2021 Commercial - commercial and industrial: Risk rating Pass $ 261,015 $ 102,552 $ 70,930 $ 54,530 $ 38,707 $ 47,740 $ 223,244 $ 798,718 Special mention 425 500 4,807 6,585 430 834 5,067 18,648 Substandard — 650 5,690 10,918 — 702 3,043 21,003 Doubtful — — — 372 — — — 372 Total commercial - commercial and industrial $ 261,440 $ 103,702 $ 81,427 $ 72,405 $ 39,137 $ 49,276 $ 231,354 $ 838,741 Commercial - commercial real estate: Risk rating Pass $ 150,774 $ 89,754 $ 153,456 $ 128,454 $ 59,061 $ 318,772 $ 18,110 $ 918,381 Special mention — 2,899 10,157 1,401 256 7,016 1,212 22,941 Substandard — — — 5,711 2,959 10,327 — 18,997 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 150,774 $ 92,653 $ 163,613 $ 135,566 $ 62,276 $ 336,115 $ 19,322 $ 960,319 Commercial - construction and land: Risk rating Pass $ 54,177 $ 90,936 $ 34,842 $ 88 $ — $ — $ 25,105 $ 205,148 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 54,177 $ 90,936 $ 34,842 $ 88 $ — $ — $ 25,105 $ 205,148 Residential - mortgages: Risk rating Pass $ 6,858 $ 9,002 $ 2,871 $ 14,538 $ 4,548 $ 8,189 $ — $ 46,006 Special mention — — — 160 728 — — 888 Substandard — — — 156 — 26 — 182 Doubtful — — — — — — — — Total residential - mortgage loans $ 6,858 $ 9,002 $ 2,871 $ 14,854 $ 5,276 $ 8,215 $ — $ 47,076 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ — $ 28,018 $ 28,018 Special mention — — — — — — 726 726 Substandard — — — — — — 199 199 Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ — $ 28,943 $ 28,943 Consumer: Risk rating Pass $ 153,819 $ 31,763 $ 2,152 $ — $ 22 $ 3,700 $ 1,006 $ 192,462 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 153,819 $ 31,763 $ 2,152 $ — $ 22 $ 3,700 $ 1,006 $ 192,462 Other: Risk rating Pass $ 64 $ — $ — $ 1,551 $ 1,164 $ 549 $ — $ 3,328 Special mention — — — — — — — — Substandard — — — — 1,593 — — 1,593 Doubtful — — — — — — — — Total other loans $ 64 $ — $ — $ 1,551 $ 2,757 $ 549 $ — $ 4,921 Total: Pass $ 626,707 $ 324,007 $ 264,251 $ 199,161 $ 103,502 $ 378,950 $ 295,483 $ 2,192,061 Special Mention 425 3,399 14,964 8,146 1,414 7,850 7,005 43,203 Substandard — 650 5,690 16,785 4,552 11,055 3,242 41,974 Doubtful — — — 372 — — — 372 Total $ 627,132 $ 328,056 $ 284,905 $ 224,464 $ 109,468 $ 397,855 $ 305,730 $ 2,277,610 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 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 September 30, 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 $ — $ 2,445 $ 2,445 $ — Commercial real estate 13 — 13 — Total commercial loans 13 2,445 2,458 — Residential mortgages 1,619 — 1,619 — Total loans $ 1,632 $ 2,445 $ 4,077 $ — 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 September 30, 2021 Real SBA Property Equipment Guaranty Total Commercial and industrial $ 13 $ — $ 1,022 $ 1,035 Residential mortgages 1,024 27 568 1,619 Total loans $ 1,037 $ 27 $ 1,590 $ 2,654 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 September 30, 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 $ 1,145 $ 848 $ — $ 2,445 $ 4,438 $ 834,303 $ 838,741 Commercial real estate 4,738 — — 13 4,751 955,568 960,319 Construction and land — — — — — 205,148 205,148 Residential mortgages 1,369 — — 1,619 2,988 44,088 47,076 Home equity 199 — — — 199 28,744 28,943 Consumer 12,069 5,471 — — 17,540 179,843 197,383 Total Loans $ 19,520 $ 6,319 $ — $ 4,077 $ 29,916 $ 2,247,694 $ 2,277,610 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 September 30, 2021 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 279 $ - $ - $ 279 SBA Sales 10,615 3,036 - 13,651 Total Loans $ 10,894 $ 3,036 $ - $ 13,930 For the nine months ended September 30, 2021 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 1,349 $ 2,708 $ 1,362 $ 5,419 SBA Sales 26,881 11,543 664 39,088 Total Loans $ 28,230 $ 14,251 $ 2,026 $ 44,507 For the three months ended September 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 1,015 $ - $ - $ 1,015 SBA Sales 10,258 772 - 11,030 Total Loans $ 11,273 $ 772 $ - $ 12,045 For the nine months ended September 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ 2,338 $ 1,467 $ - $ 3,805 SBA Sales 26,427 2,264 277 28,968 Total Loans $ 28,765 $ 3,731 $ 277 $ 32,773 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets | |
Schedule of Intangible Assets and Goodwill | September 30, December 31, 2021 2020 (in thousands) Servicing assets, net $ 2,573 $ 2,731 Total intangibles subject to amortization, net 2,573 2,731 Goodwill 19,925 19,925 Total goodwill and other intangible assets, net $ 22,498 $ 22,656 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Servicing Assets | |
Changes in the Balance of Servicing Assets | Changes in the balance of servicing assets for the three and nine months ended September 30, 2021 and 2020 are presented in the following table . Three Months Ended September 30, Nine Months Ended September 30, SBA Loan Servicing Assets 2021 2020 2021 2020 (in thousands) (in thousands) Beginning carrying value, net $ 2,537 $ 2,503 $ 2,569 $ 2,731 Additions 262 190 746 492 Amortization (296) (202) (812) (732) Ending carrying value $ 2,503 $ 2,491 $ 2,503 $ 2,491 Changes in the balance of TriNet servicing assets for the three and nine months ended September 30, 2021 and 2020 are presented in the following table. Three Months Ended September 30, Nine Months Ended September 30, TriNet Servicing Assets 2021 2020 2021 2020 (in thousands) (in thousands) Beginning carrying value, net $ 100 $ 228 $ 162 $ 296 Amortization (30) (33) (92) (101) Ending carrying value $ 70 $ 195 $ 70 $ 195 |
Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions | At September 30, 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 September 30, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 2,782 $ 2,907 Weighted average life 3.27 years 3.17 years Prepayment speed: 17.40 % 18.03 % Decline in fair value due to a 10% adverse change $ (135) $ (123) Decline in fair value due to a 20% adverse change $ (258) $ (236) Weighted average discount rate 12.37 % 12.49 % Decline in fair value due to a 100 bps adverse change $ (68) $ (59) Decline in fair value due to a 200 bps adverse change $ (133) $ (115) At September 30, 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 September 30, 2021 December 31, 2020 (dollars in thousands) Fair value of retained servicing assets $ 212 $ 298 Weighted average life 3.78 years 4.58 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (2) $ (3) Decline in fair value due to a 20% adverse change $ (3) $ (6) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (3) $ (5) Decline in fair value due to a 200 bps adverse change $ (6) $ (11) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the Three Months Ended For the Nine Months Ended September 30, 2021 September 30, 2021 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit (1) Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 9,650 $ (2,399) $ 7,251 $ 19,289 $ (4,782) $ 14,507 Unrealized net (losses) gains on investment securities available-for-sale (3,240) 801 (2,439) (9,817) 2,427 (7,390) Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale (2) — — — (2) — (2) Unrealized net (losses) gains on derivatives (957) 237 (720) (4,017) 994 (3,023) Accumulated other comprehensive income (loss) end of period $ 5,453 $ (1,361) $ 4,092 $ 5,453 $ (1,361) $ 4,092 For the Three Months Ended For the Nine Months Ended September 30, 2020 September 30, 2020 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 21,108 $ (5,218) $ 15,890 $ 6,081 $ (1,520) $ 4,561 Unrealized net gains (losses) on investment securities available-for-sale 46 (11) 35 5,771 (1,419) 4,352 Unrealized net gains (losses) on derivatives (593) 146 (447) 8,709 (2,144) 6,565 Accumulated other comprehensive income (loss) end of period $ 20,561 $ (5,083) $ 15,478 $ 20,561 $ (5,083) $ 15,478 (1) The tax impact of each component of accumulated other comprehensive income (loss) 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 (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2021 and 2020. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (in thousands, except share and per share amounts) Net income available to common shareholders $ 13,304 $ 8,618 $ 38,482 $ 12,591 Weighted average shares outstanding Basic (1) 20,308,761 21,500,735 20,340,182 21,553,953 Effect of dilutive securities: Stock options and performance share awards 198,843 43,070 168,593 86,104 Diluted 20,507,604 21,543,805 20,508,775 21,640,057 Net income per common share: Basic $ 0.66 $ 0.40 $ 1.89 $ 0.58 Diluted 0.65 0.40 $ 1.88 $ 0.58 (1) Unvested restricted shares are participating securities and included in basic share calculations. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020: Derivatives designated as hedging instruments under ASC 815 September 30, 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 $ 6,655 $ 125,000 $ 10,799 Cash flow hedge of LIBOR based loans Other liabilities $ — $ — $ — $ — Derivatives not designated as hedging instruments under ASC 815 September 30, 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 $ 29,239 $ 1,246 $ 34,224 $ 2,057 Zero premium collar Other assets 61,354 5,522 68,527 9,328 $ 90,593 $ 6,768 $ 102,751 $ 11,385 Dealer offsets to customer swap positions Other liabilities $ 29,239 $ 1,264 $ 34,224 $ 2,087 Dealer offset to zero premium collar Other liabilities 61,354 5,560 68,527 9,398 Credit risk participation Other liabilities 2,501 — 5,782 11 $ 93,094 $ 6,824 $ 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 and nine months ended September 30, 2021 and 2020. Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivative Recognized in Income on Derivatives (in thousands) Income on Derivatives Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Interest rate products Other income $ 19 $ 7 $ 51 $ 249 Other contracts Other income 2 3 10 (3) Total $ 21 $ 10 $ 61 $ 246 The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and nine months ended September 30, 2021 and 2020: Derivatives in Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, Amount of Gain or Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified from (Loss) Recognized in Gain or (Loss) Reclassified from OCI on Derivatives Accumulated OCI in Income OCI on Derivatives Accumulated OCI in Income (Effective Portion) (Effective Portion) (Effective Portion) (Effective Portion) (in thousands) 2021 2020 Location 2021 2020 2021 2020 Location 2021 2020 Interest rate swaps $ (869) $ (611) Interest income $ (637) $ (619) $ (4,444) $ 8,657 Interest income $ (1,878) $ (1,271) |
Other Borrowings and Long Ter_2
Other Borrowings and Long Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Other Borrowings and Long Term Debt | |
Schedule of Long-term Debt Instruments and Borrowings | Subordinated debt is summarized as follows: September 30, 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 976 1,193 Subordinated debt, net $ 74,024 $ 73,807 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-Based Compensation | |
Schedule of Share-based Compensation, Stock Options and Warrants Activity | The following table represents stock option activity for the nine months ended September 30, 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 (1) — — Exercised (149,850) 10.71 Forfeited (1) — — Expired — — Outstanding, September 30, 2021 65,040 $ 14.66 3.47 $ 769 Exercisable, September 30, 2021 65,040 $ 14.66 3.47 $ 769 (1) During the nine months ended September 30, 2021, the Company did not modify any options. |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table represents restricted stock and performance share award activity for the nine months ended September 30, 2021: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2020 435,748 $ 16.80 Granted/modified 153,739 19.51 Vested (175,209) 17.60 Forfeited (18,997) 17.54 Outstanding, September 30, 2021 395,281 $ 17.75 ● . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020. Fair Value Measurements at September 30, 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 $ — $ 76,702 $ — $ 76,702 Trust preferred securities — 4,871 — 4,871 Corporate debt securities — 24,374 — 24,374 Residential mortgage-backed securities — 402,302 — 402,302 Commercial mortgage-backed securities — 26,909 — 26,909 Total securities available-for-sale $ — $ 535,158 $ — $ 535,158 Interest rate derivative assets $ — $ 13,423 $ — $ 13,423 Interest rate derivative liabilities $ — $ 6,824 $ — $ 6,824 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 September 30, 2021 and December 31, 2020. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value September 30, 2021 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 2,403 $ 2,403 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 September 30, 2021 and December 31, 2020. Fair Value Measurements at September 30, 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 $ 25,725 $ 25,725 $ — $ — Interest-bearing deposits in banks 811,168 811,168 — — Other short-term investments 140,848 140,848 — — Total securities available-for-sale 535,158 — 535,158 — Total securities held-to-maturity 237,829 — 245,929 — FHLB stock 1,808 — — 1,808 FRB stock 10,124 — — 10,124 Loans held for investment, net 2,273,856 — — 2,357,246 Loans held for sale 11,814 — 11,814 — Derivative assets 13,423 — 13,423 — Financial liabilities: Deposits $ 3,727,321 $ — $ 3,726,074 $ — Subordinated debt 74,024 — 78,030 — Derivative financial instruments 6,824 — 6,824 — 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) | 9 Months Ended |
Sep. 30, 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 September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 850,016 $ 813,757 Standby letters of credit 21,668 16,141 $ 871,684 $ 829,898 Minimum lease payments $ 16,412 $ 17,994 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue Recognition | |
Disaggregation of Revenue | The following table presents service charges by type of service provided for the three and nine months ended September 30, 2021 and 2020: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Deposit account analysis fees and charges $ 1,630 $ 1,080 $ 4,546 $ 3,012 ATM fees 31 10 82 46 NSF fees 9 5 30 30 Wire fees 22 18 73 166 Foreign exchange fees 73 104 423 272 Other — — 1 4 Total service charges $ 1,765 $ 1,217 $ 5,155 $ 3,530 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Lease Cost and Other Information Related to Leases | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Operating lease cost $ 478 $ 510 $ 1,509 $ 1,696 Short-term lease cost — 10 2 25 Sublease income (126) (91) (312) (273) Net lease cost $ 352 $ 429 $ 1,199 $ 1,448 The tables below summarize other information related to the Company’s operating leases: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 554 $ 530 $ 1,581 $ 1,655 Right-of-use assets obtained in exchange for new finance lease liabilities — 62 — 62 As of September 30, 2021 2020 Weighted-average remaining lease term - operating leases 7.7 years 8.5 years Weighted-average discount rate - operating leases 3.03 % 3.04 % |
Schedule of Maturity of Lease Liabilities | September 30, 2021 (in thousands) Twelve Months Ended: September 30, 2022 $ 2,403 September 30, 2023 2,136 September 30, 2024 1,966 September 30, 2025 1,905 September 30, 2026 1,831 Thereafter 6,171 Total future minimum lease payments 16,412 Less: Interest (2,984) Present value of net future minimum lease payments $ 13,428 |
Accounting Policies and Basis_3
Accounting Policies and Basis of Presentation - Narrative (Details) | Jul. 23, 2021director$ / shares |
Proposed Merger | |
Number of directors from the Company that will join both SouthState's board and the SouthState Bank board per the Merger Agreement | director | 2 |
SouthState | |
Proposed Merger | |
Number of shares to be received per each outstanding share of Atlantic Capital common stock, per the Merger Agreement | 0.36 |
Common stock par value (in dollars per share) | $ / shares | $ 2.50 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Reverse repurchase agreements, Assets | ||
Gross Amounts of Recognized Assets | $ 140,848 | |
Net Asset Balance | 140,848 | |
Financial Instruments | (140,848) | |
Derivatives, Assets | ||
Gross Amounts of Recognized Assets | 13,424 | $ 22,184 |
Net Asset Balance | 13,424 | 22,184 |
Cash Collateral Received | (5,240) | |
Net Amount | 8,184 | 22,184 |
Total, Assets | ||
Gross Amounts of Recognized Assets | 154,272 | 22,184 |
Net Asset Balance | 154,272 | 22,184 |
Financial Instruments | (140,848) | |
Cash Collateral Received | (5,240) | |
Net Amount | 8,184 | 22,184 |
Derivatives, Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,825 | 11,496 |
Net Liability Balance | 6,825 | 11,496 |
Financial Instruments | (6,825) | (11,496) |
Cash Collateral Pledged | 330 | 330 |
Net Amount | (6,495) | (11,166) |
Total, Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,825 | 11,496 |
Net Liability Balance | 6,825 | 11,496 |
Financial Instruments | (6,825) | (11,496) |
Cash Collateral Pledged | 330 | 330 |
Net Amount | $ (6,495) | $ (11,166) |
Securities - Available-For-Sale
Securities - Available-For-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
Available-For-Sale | |||||
Amortized Cost | $ 535,997 | $ 326,445 | |||
Gross Unrealized Gains | 5,637 | 9,347 | |||
Gross Unrealized Losses | (6,476) | (369) | |||
Fair Value | 535,158 | 335,423 | |||
Held-to-Maturity | |||||
Amortized Cost | 237,842 | 200,170 | |||
Gross Unrealized Gains | 10,593 | 14,439 | |||
Gross Unrealized Losses | (2,506) | (25) | |||
Fair Value | 245,929 | 214,584 | |||
Allowance for credit losses on debt securities held-to-maturity | (13) | $ (13) | (14) | $ (15) | $ (13) |
Net Carrying Value | 237,829 | 200,156 | |||
Total securities | |||||
Amortized Cost | 773,839 | 526,615 | |||
Gross Unrealized Gains | 16,230 | 23,786 | |||
Gross Unrealized Losses | (8,982) | (394) | |||
Fair Value | 781,087 | 550,007 | |||
U.S. states and political divisions | |||||
Available-For-Sale | |||||
Amortized Cost | 74,608 | 78,117 | |||
Gross Unrealized Gains | 2,094 | 2,906 | |||
Gross Unrealized Losses | (4) | ||||
Fair Value | 76,702 | 81,019 | |||
Held-to-Maturity | |||||
Amortized Cost | 237,842 | 200,170 | |||
Gross Unrealized Gains | 10,593 | 14,439 | |||
Gross Unrealized Losses | (2,506) | (25) | |||
Fair Value | 245,929 | 214,584 | |||
Allowance for credit losses on debt securities held-to-maturity | (13) | (14) | |||
Net Carrying Value | 237,829 | 200,156 | |||
Trust preferred securities | |||||
Available-For-Sale | |||||
Amortized Cost | 4,855 | 4,835 | |||
Gross Unrealized Gains | 16 | ||||
Gross Unrealized Losses | (113) | ||||
Fair Value | 4,871 | 4,722 | |||
Corporate debt securities | |||||
Available-For-Sale | |||||
Amortized Cost | 24,006 | 19,526 | |||
Gross Unrealized Gains | 368 | 295 | |||
Fair Value | 24,374 | 19,821 | |||
Residential mortgage-backed securities | |||||
Available-For-Sale | |||||
Amortized Cost | 406,147 | 190,817 | |||
Gross Unrealized Gains | 2,502 | 4,023 | |||
Gross Unrealized Losses | (6,347) | (242) | |||
Fair Value | 402,302 | 194,598 | |||
Commercial mortgage-backed securities | |||||
Available-For-Sale | |||||
Amortized Cost | 26,381 | 33,150 | |||
Gross Unrealized Gains | 657 | 2,123 | |||
Gross Unrealized Losses | (129) | (10) | |||
Fair Value | $ 26,909 | $ 35,263 |
Securities - Allowance for cred
Securities - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for credit losses: | ||||
Beginning Balance | $ 13 | $ 13 | $ 14 | |
Provision for credit losses | 2 | (1) | $ (5) | |
Securities charged-off | ||||
Recoveries | ||||
Total ending allowance balance | 13 | 15 | 13 | 15 |
U.S. states and political divisions | ||||
Allowance for credit losses: | ||||
Beginning Balance | 14 | |||
Total ending allowance balance | 13 | 13 | ||
U.S. states and political divisions - tax-exempt | ||||
Allowance for credit losses: | ||||
Beginning Balance | 11 | 9 | 10 | |
Provision for credit losses | (2) | 2 | (1) | (2) |
Securities charged-off | ||||
Recoveries | ||||
Total ending allowance balance | 9 | 11 | 9 | 11 |
U.S. states and political divisions - taxable | ||||
Allowance for credit losses: | ||||
Beginning Balance | 2 | 4 | 4 | |
Provision for credit losses | 2 | (3) | ||
Securities charged-off | ||||
Recoveries | ||||
Total ending allowance balance | $ 4 | $ 4 | $ 4 | 4 |
ASU 2016-13 | ||||
Allowance for credit losses: | ||||
Impact of adopting ASU 2016-13 | 20 | |||
ASU 2016-13 | U.S. states and political divisions - tax-exempt | ||||
Allowance for credit losses: | ||||
Impact of adopting ASU 2016-13 | 13 | |||
ASU 2016-13 | U.S. states and political divisions - taxable | ||||
Allowance for credit losses: | ||||
Impact of adopting ASU 2016-13 | $ 7 |
Securities - Amortized cost of
Securities - Amortized cost of debt securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | $ 237,842 | $ 200,170 |
Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 95,546 | |
Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 59,688 | |
Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 66,849 | |
Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 13,567 | |
Moody's, A1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 2,192 | |
U.S. states and political divisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 237,842 | $ 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 | 152,642 | |
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 | 58,171 | |
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 | 42,772 | |
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 | 37,922 | |
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 | 11,586 | |
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 | 2,191 | |
U.S. states and political divisions - taxable | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | 85,200 | |
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 | 37,375 | |
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 | 16,916 | |
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 | 28,927 | |
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 | 1,981 | |
U.S. states and political divisions - taxable | Moody's, A1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held-to-maturity | $ 1 |
Securities - Contractual Maturi
Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-For-Sale, Amortized Cost | ||
Within 1 year | $ 4,505 | |
After 1 year through 5 years | 12,538 | |
After 5 years through 10 years | 40,674 | |
After 10 years | 45,752 | |
Amortized cost of securities with single maturity date | 103,469 | |
Amortized Cost | 535,997 | $ 326,445 |
Available-For-Sale, Fair Value | ||
Within 1 year | 4,554 | |
After 1 year through 5 years | 12,772 | |
After 5 years through 10 years | 41,663 | |
After 10 years | 46,958 | |
Fair value of securities with single maturity date | 105,947 | |
Fair Value | 535,158 | 335,423 |
Held-to-Maturity, Amortized Cost | ||
After 5 years through 10 years | 309 | |
After 10 years | 237,533 | |
Amortized cost of securities with single maturity date | 237,842 | |
Amortized Cost | 237,842 | 200,170 |
Held-to-Maturity, Fair Value | ||
After 5 years through 10 years | 312 | |
After 10 years | 245,617 | |
Fair value of securities with single maturity date | 245,929 | |
Fair Value | 245,929 | 214,584 |
Residential mortgage-backed securities | ||
Available-For-Sale, Amortized Cost | ||
Mortgage-backed securities | 406,147 | |
Amortized Cost | 406,147 | 190,817 |
Available-For-Sale, Fair Value | ||
Mortgage-backed securities | 402,302 | |
Fair Value | 402,302 | 194,598 |
Commercial mortgage-backed securities | ||
Available-For-Sale, Amortized Cost | ||
Mortgage-backed securities | 26,381 | |
Amortized Cost | 26,381 | 33,150 |
Available-For-Sale, Fair Value | ||
Mortgage-backed securities | 26,909 | |
Fair Value | $ 26,909 | $ 35,263 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale, Fair Value | ||
Less than 12 months | $ 335,722 | $ 71,792 |
12 months or greater, fair value | 160 | 6,913 |
Totals | 335,882 | 78,705 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (6,466) | (241) |
12 months or greater | (10) | (128) |
Totals | (6,476) | (369) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 51,775 | 2,241 |
Totals | 51,775 | 2,241 |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (2,506) | (25) |
Totals | (2,506) | (25) |
Total securities - Fair Value | ||
Less than 12 months | 387,497 | 74,033 |
12 months or greater | 160 | 6,913 |
Totals | 387,657 | 80,946 |
Total securities - Unrealized losses | ||
Less than 12 months | (8,972) | (266) |
12 months or greater | (10) | (128) |
Totals | (8,982) | (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 | 51,775 | 2,241 |
Totals | 51,775 | 2,241 |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (2,506) | (25) |
Totals | (2,506) | (25) |
Trust preferred securities | ||
Available-for-Sale, Fair Value | ||
12 months or greater, fair value | 4,721 | |
Totals | 4,721 | |
Available-for-Sale, Unrealized Losses | ||
12 months or greater | (113) | |
Totals | (113) | |
Residential mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 332,099 | 68,042 |
12 months or greater, fair value | 160 | 205 |
Totals | 332,259 | 68,247 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (6,337) | (231) |
12 months or greater | (10) | (11) |
Totals | (6,347) | (242) |
Commercial mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 3,623 | 3,750 |
Totals | 3,623 | 3,750 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (129) | (10) |
Totals | $ (129) | $ (10) |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)security | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)security | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Securities | |||||
Interest Receivable | $ 1,700,000 | $ 1,700,000 | $ 2,100,000 | ||
Allowance for credit losses, accrued interest receivable on available for sale securities | 1,400,000 | 1,400,000 | $ 1,200,000 | ||
Debt securities classified as non-accrual | 0 | 0 | |||
Debt securities classified as past due over 89 days and still accruing | $ 0 | $ 0 | |||
Number of available-for-sale securities in unrealized loss position | security | 50 | 50 | 13 | ||
Number of held for maturity securities in unrealized loss position | security | 26 | 26 | 1 | ||
Impairment of securities in unrealized loss position | $ 0 | $ 0 | $ 0 | $ 0 | |
Carrying value of investment securities pledged to secure public funds and other borrowings | 43,300,000 | 43,300,000 | $ 43,900,000 | ||
Investment securities available for sale | 535,158,000 | 535,158,000 | 335,423,000 | ||
SBIC Investments | |||||
Securities | |||||
Investment securities available for sale | 5,300,000 | 5,300,000 | $ 5,400,000 | ||
Impairments on SBICs | $ 0 | $ 0 | $ 0 | $ 0 |
Securities - Realized Gains (Lo
Securities - Realized Gains (Losses) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Securities | |
Proceeds from sales | $ 750 |
Gross realized gains | 2 |
Net gains on sales of securities | $ 2 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Loans and Allowance for Loan Losses | ||||||
Loans held for sale | $ 11,814 | |||||
Loans held for investment | 2,277,610 | $ 2,256,690 | ||||
Less net deferred fees and other unearned income | (3,754) | (7,654) | ||||
Less allowance for credit losses on loans | (23,924) | $ (26,123) | (31,818) | $ (31,894) | $ (31,605) | $ (18,535) |
Loans held for investment, net | 2,249,932 | 2,217,218 | ||||
Other | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 4,921 | 13,897 | ||||
Commercial | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 2,004,208 | 2,007,501 | ||||
Less allowance for credit losses on loans | (23,019) | (25,070) | (30,221) | (30,403) | (30,834) | (18,203) |
Commercial | Commercial and industrial | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 838,741 | 952,805 | ||||
Commercial | Commercial real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 960,319 | 909,101 | ||||
Commercial | Construction and land | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 205,148 | 145,595 | ||||
Residential | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 76,019 | 59,226 | ||||
Less allowance for credit losses on loans | (461) | (519) | (699) | (666) | (517) | (145) |
Residential | Residential mortgages | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 47,076 | 33,783 | ||||
Residential | Home equity | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 28,943 | 25,443 | ||||
Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Loans held for investment | 192,462 | 176,066 | ||||
Less allowance for credit losses on loans | $ (444) | $ (534) | $ (898) | $ (825) | $ (254) | $ (187) |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | ||
Loans pledged as collateral | $ 525,400,000 | $ 474,500,000 |
Remaining accretable fair value discount | 180,000 | 262,000 |
Accrued interest | 1,700,000 | 2,100,000 |
Credit loss related to accrued interest receivable | 31,000 | 49,000 |
Loans and leases receivable, net | 2,249,932,000 | 2,217,218,000 |
Recorded investment in TDRs | 13,200,000 | 14,200,000 |
Allowance for loans | 502,000 | |
Other assets | ||
Loans and Allowance for Loan Losses | ||
Accrued interest | 9,400,000 | 10,800,000 |
Payment Deferral | ||
Loans and Allowance for Loan Losses | ||
Loans and leases receivable, net | 3,600,000 | 4,400,000 |
Commercial | Commercial real estate | ||
Loans and Allowance for Loan Losses | ||
Commitments to lend additional funds | $ 0 | $ 0 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Allowance Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for credit losses on loans | ||||
Beginning balance | $ 26,123 | $ 31,605 | $ 31,818 | $ 18,535 |
Provision for credit losses | (2,221) | 636 | (7,109) | 16,267 |
Loans charged-off | (131) | (404) | (1,028) | (2,140) |
Recoveries | 153 | 57 | 243 | 86 |
Total ending allowance balance | 23,924 | 31,894 | 23,924 | 31,894 |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for credit losses on loans | ||||
Total ending allowance balance | (854) | (854) | ||
Commercial | ||||
Allowance for credit losses on loans | ||||
Beginning balance | 25,070 | 30,834 | 30,221 | 18,203 |
Provision for credit losses | (2,071) | (83) | (6,604) | 15,051 |
Loans charged-off | (131) | (404) | (805) | (1,979) |
Recoveries | 151 | 56 | 207 | 75 |
Total ending allowance balance | 23,019 | 30,403 | 23,019 | 30,403 |
Commercial | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for credit losses on loans | ||||
Total ending allowance balance | (947) | (947) | ||
Residential | ||||
Allowance for credit losses on loans | ||||
Beginning balance | 519 | 517 | 699 | 145 |
Provision for credit losses | (58) | 149 | (47) | 673 |
Loans charged-off | (223) | (161) | ||
Recoveries | 32 | 1 | ||
Total ending allowance balance | 461 | 666 | 461 | 666 |
Residential | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for credit losses on loans | ||||
Total ending allowance balance | 8 | 8 | ||
Consumer | ||||
Allowance for credit losses on loans | ||||
Beginning balance | 534 | 254 | 898 | 187 |
Provision for credit losses | (92) | 570 | (458) | 543 |
Recoveries | 2 | 1 | 4 | 10 |
Total ending allowance balance | $ 444 | 825 | $ 444 | 825 |
Consumer | Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for credit losses on loans | ||||
Total ending allowance balance | $ 85 | $ 85 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021loan | Sep. 30, 2021loan | Sep. 30, 2020USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | 2 |
Outstanding Balance | $ 1,985 | ||
Increase in Allowance | $ 191 | ||
Commercial | Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | ||
Outstanding Balance | $ 65 | ||
Increase in Allowance | $ 3 | ||
Commercial | Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | ||
Outstanding Balance | $ 1,920 | ||
Increase in Allowance | $ 188 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Troubled Debt Restructurings Subsequently Defaulted (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021loan | Sep. 30, 2021loan | Sep. 30, 2020USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | 2 |
Outstanding Balance | $ | $ 310 | ||
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 2 | ||
Outstanding Balance | $ | $ 310 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Risk Category of Loan by Class of Loan (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Risk category of loans | ||
2021 | $ 627,132 | $ 698,738 |
2020 | 328,056 | 401,496 |
2019 | 284,905 | 308,626 |
2018 | 224,464 | 148,233 |
2017 | 109,468 | 176,340 |
Prior | 397,855 | 262,658 |
Revolving Loans Amortized Cost Basis | 305,730 | 260,599 |
Total | 2,277,610 | 2,256,690 |
Other | ||
Risk category of loans | ||
2021 | 64 | |
2020 | 1,117 | |
2019 | 4,609 | |
2018 | 1,551 | 1,783 |
2017 | 2,757 | |
Prior | 549 | 640 |
Revolving Loans Amortized Cost Basis | 5,748 | |
Total | 4,921 | 13,897 |
Pass | ||
Risk category of loans | ||
2021 | 626,707 | 690,913 |
2020 | 324,007 | 356,769 |
2019 | 264,251 | 264,459 |
2018 | 199,161 | 140,786 |
2017 | 103,502 | 161,938 |
Prior | 378,950 | 236,456 |
Revolving Loans Amortized Cost Basis | 295,483 | 228,075 |
Total | 2,192,061 | 2,079,396 |
Pass | Other | ||
Risk category of loans | ||
2021 | 64 | |
2019 | 4,609 | |
2018 | 1,551 | 1,327 |
2017 | 1,164 | |
Prior | 549 | 640 |
Revolving Loans Amortized Cost Basis | 5,748 | |
Total | 3,328 | 12,324 |
Special Mention | ||
Risk category of loans | ||
2021 | 425 | 2,497 |
2020 | 3,399 | 34,556 |
2019 | 14,964 | 31,739 |
2018 | 8,146 | 1,293 |
2017 | 1,414 | 3,705 |
Prior | 7,850 | 4,452 |
Revolving Loans Amortized Cost Basis | 7,005 | 25,745 |
Total | 43,203 | 103,987 |
Special Mention | Other | ||
Risk category of loans | ||
2020 | 1,117 | |
Total | 1,117 | |
Substandard | ||
Risk category of loans | ||
2021 | 5,328 | |
2020 | 650 | 10,171 |
2019 | 5,690 | 12,419 |
2018 | 16,785 | 6,154 |
2017 | 4,552 | 10,697 |
Prior | 11,055 | 21,750 |
Revolving Loans Amortized Cost Basis | 3,242 | 6,779 |
Total | 41,974 | 73,298 |
Substandard | Other | ||
Risk category of loans | ||
2018 | 456 | |
2017 | 1,593 | |
Total | 1,593 | 456 |
Doubtful Nonaccruing | ||
Risk category of loans | ||
2019 | 9 | |
2018 | 372 | |
Total | 372 | 9 |
Commercial | ||
Risk category of loans | ||
Total | 2,004,208 | 2,007,501 |
Commercial | Commercial and industrial | ||
Risk category of loans | ||
2021 | 261,440 | 359,580 |
2020 | 103,702 | 146,010 |
2019 | 81,427 | 129,205 |
2018 | 72,405 | 47,682 |
2017 | 39,137 | 36,779 |
Prior | 49,276 | 22,405 |
Revolving Loans Amortized Cost Basis | 231,354 | 211,144 |
Total | 838,741 | 952,805 |
Commercial | Commercial real estate | ||
Risk category of loans | ||
2021 | 150,774 | 93,574 |
2020 | 92,653 | 188,271 |
2019 | 163,613 | 152,664 |
2018 | 135,566 | 97,218 |
2017 | 62,276 | 134,498 |
Prior | 336,115 | 233,512 |
Revolving Loans Amortized Cost Basis | 19,322 | 9,364 |
Total | 960,319 | 909,101 |
Commercial | Construction and land | ||
Risk category of loans | ||
2021 | 54,177 | 71,828 |
2020 | 90,936 | 57,807 |
2019 | 34,842 | 7,072 |
2018 | 88 | |
2017 | 2,156 | |
Prior | 720 | |
Revolving Loans Amortized Cost Basis | 25,105 | 6,012 |
Total | 205,148 | 145,595 |
Commercial | Pass | Commercial and industrial | ||
Risk category of loans | ||
2021 | 261,015 | 358,320 |
2020 | 102,552 | 130,466 |
2019 | 70,930 | 94,596 |
2018 | 54,530 | 44,706 |
2017 | 38,707 | 35,098 |
Prior | 47,740 | 16,621 |
Revolving Loans Amortized Cost Basis | 223,244 | 179,521 |
Total | 798,718 | 859,328 |
Commercial | Pass | Commercial real estate | ||
Risk category of loans | ||
2021 | 150,774 | 88,246 |
2020 | 89,754 | 160,205 |
2019 | 153,456 | 146,807 |
2018 | 128,454 | 93,956 |
2017 | 59,061 | 123,959 |
Prior | 318,772 | 213,204 |
Revolving Loans Amortized Cost Basis | 18,110 | 9,189 |
Total | 918,381 | 835,566 |
Commercial | Pass | Construction and land | ||
Risk category of loans | ||
2021 | 54,177 | 71,828 |
2020 | 90,936 | 57,807 |
2019 | 34,842 | 4,407 |
2018 | 88 | |
Prior | 720 | |
Revolving Loans Amortized Cost Basis | 25,105 | 6,012 |
Total | 205,148 | 140,774 |
Commercial | Special Mention | Commercial and industrial | ||
Risk category of loans | ||
2021 | 425 | 1,260 |
2020 | 500 | 11,475 |
2019 | 4,807 | 26,683 |
2018 | 6,585 | 540 |
2017 | 430 | 684 |
Prior | 834 | 310 |
Revolving Loans Amortized Cost Basis | 5,067 | 24,844 |
Total | 18,648 | 65,796 |
Commercial | Special Mention | Commercial real estate | ||
Risk category of loans | ||
2020 | 2,899 | 21,964 |
2019 | 10,157 | 1,534 |
2018 | 1,401 | |
2017 | 256 | 865 |
Prior | 7,016 | 4,142 |
Revolving Loans Amortized Cost Basis | 1,212 | 175 |
Total | 22,941 | 28,680 |
Commercial | Special Mention | Construction and land | ||
Risk category of loans | ||
2019 | 2,665 | |
2017 | 2,156 | |
Total | 4,821 | |
Commercial | Substandard | Commercial and industrial | ||
Risk category of loans | ||
2020 | 650 | 4,069 |
2019 | 5,690 | 7,917 |
2018 | 10,918 | 2,436 |
2017 | 997 | |
Prior | 702 | 5,474 |
Revolving Loans Amortized Cost Basis | 3,043 | 6,779 |
Total | 21,003 | 27,672 |
Commercial | Substandard | Commercial real estate | ||
Risk category of loans | ||
2021 | 5,328 | |
2020 | 6,102 | |
2019 | 4,323 | |
2018 | 5,711 | 3,262 |
2017 | 2,959 | 9,674 |
Prior | 10,327 | 16,166 |
Total | 18,997 | 44,855 |
Commercial | Doubtful Nonaccruing | Commercial and industrial | ||
Risk category of loans | ||
2019 | 9 | |
2018 | 372 | |
Total | 372 | 9 |
Residential | ||
Risk category of loans | ||
Total | 76,019 | 59,226 |
Residential | Residential mortgages | ||
Risk category of loans | ||
2021 | 6,858 | 11,085 |
2020 | 9,002 | 2,862 |
2019 | 2,871 | 15,076 |
2018 | 14,854 | 1,500 |
2017 | 5,276 | 2,843 |
Prior | 8,215 | 417 |
Total | 47,076 | 33,783 |
Residential | Home equity | ||
Risk category of loans | ||
Revolving Loans Amortized Cost Basis | 28,943 | 25,443 |
Total | 28,943 | 25,443 |
Residential | Pass | Residential mortgages | ||
Risk category of loans | ||
2021 | 6,858 | 9,848 |
2020 | 9,002 | 2,862 |
2019 | 2,871 | 14,040 |
2018 | 14,538 | 747 |
2017 | 4,548 | 2,817 |
Prior | 8,189 | 307 |
Total | 46,006 | 30,621 |
Residential | Pass | Home equity | ||
Risk category of loans | ||
Revolving Loans Amortized Cost Basis | 28,018 | 24,717 |
Total | 28,018 | 24,717 |
Residential | Special Mention | Residential mortgages | ||
Risk category of loans | ||
2021 | 1,237 | |
2019 | 857 | |
2018 | 160 | 753 |
2017 | 728 | |
Total | 888 | 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 | 156 | |
2017 | 26 | |
Prior | 26 | 110 |
Total | 182 | 315 |
Residential | Substandard | Home equity | ||
Risk category of loans | ||
Revolving Loans Amortized Cost Basis | 199 | |
Total | 199 | |
Consumer | ||
Risk category of loans | ||
2021 | 153,819 | 162,671 |
2020 | 31,763 | 5,429 |
2019 | 2,152 | |
2018 | 50 | |
2017 | 22 | 64 |
Prior | 3,700 | 4,964 |
Revolving Loans Amortized Cost Basis | 1,006 | 2,888 |
Total | 192,462 | 176,066 |
Consumer | Pass | ||
Risk category of loans | ||
2021 | 153,819 | 162,671 |
2020 | 31,763 | 5,429 |
2019 | 2,152 | |
2018 | 50 | |
2017 | 22 | 64 |
Prior | 3,700 | 4,964 |
Revolving Loans Amortized Cost Basis | 1,006 | 2,888 |
Total | $ 192,462 | $ 176,066 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Unpaid Principal Balance | |||||
Nonaccrual with no Allowance for Credit Losses | $ 1,632 | $ 1,632 | $ 2,844 | ||
Nonaccrual With Allowance for Credit Losses | 2,445 | 934 | |||
Total Nonaccrual | 4,077 | 4,077 | 3,778 | ||
Loans Past Due Over 89 Days Still Accruing | 1,084 | ||||
Interest income on nonaccrual loans | 58,000 | $ 41,000 | 103,000 | $ 123,000 | |
Commercial | |||||
Unpaid Principal Balance | |||||
Nonaccrual with no Allowance for Credit Losses | 13 | 13 | 2,639 | ||
Nonaccrual With Allowance for Credit Losses | 2,445 | 934 | |||
Total Nonaccrual | 2,458 | 2,458 | 3,573 | ||
Commercial | Commercial and industrial | |||||
Unpaid Principal Balance | |||||
Nonaccrual with no Allowance for Credit Losses | 2,597 | ||||
Nonaccrual With Allowance for Credit Losses | 2,445 | 934 | |||
Total Nonaccrual | 2,445 | 2,445 | 3,531 | ||
Commercial | Commercial real estate | |||||
Unpaid Principal Balance | |||||
Nonaccrual with no Allowance for Credit Losses | 13 | 13 | 42 | ||
Total Nonaccrual | 13 | 13 | 42 | ||
Residential | Residential mortgages | |||||
Unpaid Principal Balance | |||||
Nonaccrual with no Allowance for Credit Losses | 1,619 | 1,619 | 205 | ||
Total Nonaccrual | $ 1,619 | $ 1,619 | 205 | ||
Loans Past Due Over 89 Days Still Accruing | $ 1,084 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Collateral dependent impaired loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | ||
Total | $ 2,994 | |
Real property | ||
Loans and Allowance for Loan Losses | ||
Total | $ 1,037 | 2,370 |
Equipment | ||
Loans and Allowance for Loan Losses | ||
Total | 27 | 262 |
Business assets | ||
Loans and Allowance for Loan Losses | ||
Total | 1,590 | 150 |
SBA Guaranty-75% | ||
Loans and Allowance for Loan Losses | ||
Total | 2,654 | 212 |
Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Total | 2,789 | |
Commercial and industrial | Real property | ||
Loans and Allowance for Loan Losses | ||
Total | 13 | 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 | 1,022 | 150 |
Commercial and industrial | SBA Guaranty-75% | ||
Loans and Allowance for Loan Losses | ||
Total | 1,035 | 212 |
Residential mortgages | ||
Loans and Allowance for Loan Losses | ||
Total | 205 | |
Residential mortgages | Real property | ||
Loans and Allowance for Loan Losses | ||
Total | 1,024 | $ 205 |
Residential mortgages | Equipment | ||
Loans and Allowance for Loan Losses | ||
Total | 27 | |
Residential mortgages | Business assets | ||
Loans and Allowance for Loan Losses | ||
Total | 568 | |
Residential mortgages | SBA Guaranty-75% | ||
Loans and Allowance for Loan Losses | ||
Total | $ 1,619 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due | ||
Nonaccruing | $ 4,077 | $ 3,778 |
Total Past Due and Nonaccruing | 29,916 | 29,696 |
Not Past Due | 2,247,694 | 2,226,994 |
Total | 2,277,610 | 2,256,690 |
Financial Receivable 30 to 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 19,520 | 16,027 |
Financial Receivable 60 to 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 6,319 | 8,807 |
Financing Receivables Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 1,084 | |
Commercial | ||
Financing Receivable, Past Due | ||
Nonaccruing | 2,458 | 3,573 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Nonaccruing | 2,445 | 3,531 |
Total Past Due and Nonaccruing | 4,438 | 7,263 |
Not Past Due | 834,303 | 945,542 |
Total | 838,741 | 952,805 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due | ||
Nonaccruing | 13 | 42 |
Total Past Due and Nonaccruing | 4,751 | 4,407 |
Not Past Due | 955,568 | 904,694 |
Total | 960,319 | 909,101 |
Commercial | Construction and land | ||
Financing Receivable, Past Due | ||
Total Past Due and Nonaccruing | 0 | |
Not Past Due | 205,148 | 145,595 |
Total | 205,148 | 145,595 |
Commercial | Financial Receivable 30 to 59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Past due | 1,145 | 1,166 |
Commercial | Financial Receivable 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due | ||
Past due | 4,738 | 4,008 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due | ||
Past due | 848 | 1,749 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due | ||
Past due | 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 | 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 | 1,619 | 205 |
Total Past Due and Nonaccruing | 2,988 | 1,876 |
Not Past Due | 44,088 | 31,907 |
Total | 47,076 | 33,783 |
Residential | Home equity | ||
Financing Receivable, Past Due | ||
Total Past Due and Nonaccruing | 199 | 0 |
Not Past Due | 28,744 | 25,443 |
Total | 28,943 | 25,443 |
Residential | Financial Receivable 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due | ||
Past due | 1,369 | 479 |
Residential | Financial Receivable 30 to 59 Days Past Due | Home equity | ||
Financing Receivable, Past Due | ||
Past due | 199 | |
Residential | Financial Receivable 60 to 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due | ||
Past due | 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 | 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 | 17,540 | 16,150 |
Not Past Due | 179,843 | 173,813 |
Total | 197,383 | 189,963 |
Consumer | Financial Receivable 30 to 59 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | 12,069 | 10,374 |
Consumer | Financial Receivable 60 to 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | $ 5,471 | 5,776 |
Consumer | Financing Receivables Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due | ||
Past due | $ 0 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Purchase and Sale of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | |||||
Repurchases of SBA participations | $ 279 | $ 1,015 | $ 5,419 | $ 3,805 | |
SBA Sales | 13,651 | 11,030 | 39,088 | 28,968 | |
Total Loans | 13,930 | 12,045 | 44,507 | 32,773 | |
Loans sold, delinquent amount | 4,900 | 4,900 | $ 8,400 | ||
Commercial and industrial | |||||
Loans and Allowance for Loan Losses | |||||
Repurchases of SBA participations | 279 | 1,015 | 1,349 | 2,338 | |
SBA Sales | 10,615 | 10,258 | 26,881 | 26,427 | |
Total Loans | 10,894 | 11,273 | 28,230 | 28,765 | |
Commercial real estate | |||||
Loans and Allowance for Loan Losses | |||||
Repurchases of SBA participations | 2,708 | 1,467 | |||
SBA Sales | 3,036 | 772 | 11,543 | 2,264 | |
Total Loans | $ 3,036 | $ 772 | 14,251 | 3,731 | |
Residential mortgages | |||||
Loans and Allowance for Loan Losses | |||||
Repurchases of SBA participations | 1,362 | ||||
SBA Sales | 664 | 277 | |||
Total Loans | $ 2,026 | $ 277 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles subject to amortization, net | $ 2,573 | $ 2,731 |
Goodwill | 19,925 | 19,925 |
Total goodwill and other intangible assets, net | 22,498 | 22,656 |
Servicing Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Core deposit intangible | $ 2,573 | $ 2,731 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Servicing Assets | ||
Loans sold and serviced | $ 195.7 | $ 192.9 |
Servicing Assets - Changes in t
Servicing Assets - Changes in the Balance of Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
TriNet Servicing Assets | ||||
Loan Servicing Rights | ||||
Beginning carrying value, net | $ 100 | $ 228 | $ 162 | $ 296 |
Amortization | (30) | (33) | (92) | (101) |
Ending carrying value | 70 | 195 | 70 | 195 |
SBA Loan Servicing Assets | ||||
Loan Servicing Rights | ||||
Beginning carrying value, net | 2,537 | 2,503 | 2,569 | 2,731 |
Additions | 262 | 190 | 746 | 492 |
Amortization | (296) | (202) | (812) | (732) |
Ending carrying value | $ 2,503 | $ 2,491 | $ 2,503 | $ 2,491 |
Servicing Assets - Sensitivity
Servicing Assets - Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
SBA Servicing Assets | ||
Loan Servicing Assets | ||
Fair value of retained servicing assets | $ 2,782 | $ 2,907 |
Weighted average life | 3 years 3 months 7 days | 3 years 2 months 1 day |
Prepayment speed (as a percent) | 17.40% | 18.03% |
Decline in fair value due to a 10% adverse change | $ (135) | $ (123) |
Decline in fair value due to a 20% adverse change | $ (258) | $ (236) |
Weighted average discount rate | 12.37% | 12.49% |
Decline in fair value due to a 100 bps adverse change | $ (68) | $ (59) |
Decline in fair value due to a 200 bps adverse change | (133) | (115) |
TriNet Servicing Assets | ||
Loan Servicing Assets | ||
Fair value of retained servicing assets | $ 212 | $ 298 |
Weighted average life | 3 years 9 months 10 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 | $ (2) | $ (3) |
Decline in fair value due to a 20% adverse change | $ (3) | $ (6) |
Weighted average discount rate | 8.00% | 8.00% |
Decline in fair value due to a 100 bps adverse change | $ (3) | $ (5) |
Decline in fair value due to a 200 bps adverse change | $ (6) | $ (11) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
After-Tax Amount | ||||
Beginning balance | $ 353,185 | $ 335,980 | $ 338,586 | $ 326,495 |
Other comprehensive (loss) income, net of tax | (3,159) | (412) | (10,415) | 10,917 |
Ending balance | 363,925 | 340,309 | $ 363,925 | 340,309 |
Effective tax rate | 25.00% | |||
Accumulated Other Comprehensive Income | ||||
Pre-Tax Amount | ||||
Beginning balance | 9,650 | 21,108 | $ 19,289 | 6,081 |
Ending balance | 5,453 | 20,561 | 5,453 | 20,561 |
Income Tax (Expense) Benefit | ||||
Beginning balance | (2,399) | (5,218) | (4,782) | (1,520) |
Ending balance | (1,361) | (5,083) | (1,361) | (5,083) |
After-Tax Amount | ||||
Beginning balance | 7,251 | 15,890 | 14,507 | 4,561 |
Ending balance | 4,092 | 15,478 | 4,092 | 15,478 |
Accumulated Net Investment Gain (Loss) from Available-for-Sale Securities | ||||
Pre-Tax Amount | ||||
Unrealized net (losses) gains on investment securities available-for-sale | (3,240) | 46 | (9,817) | 5,771 |
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 | 801 | (11) | 2,427 | (1,419) |
After-Tax Amount | ||||
Unrealized net (losses) gains on investment securities available-for-sale | (2,439) | 35 | (7,390) | 4,352 |
Reclassification adjustment for net realized (gains)/losses on investment securities available-for-sale | (2) | |||
Derivatives | ||||
Pre-Tax Amount | ||||
Unrealized net (losses) gains on derivatives | (957) | (593) | (4,017) | 8,709 |
Income Tax (Expense) Benefit | ||||
Unrealized net (losses) gains on derivatives | 237 | 146 | 994 | (2,144) |
After-Tax Amount | ||||
Other comprehensive (loss) income, net of tax | $ (720) | $ (447) | $ (3,023) | $ 6,565 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Common Share | ||||
Net income available to common shareholders | $ 13,304 | $ 8,618 | $ 38,482 | $ 12,591 |
Weighted average shares outstanding | ||||
Basic (in shares) | 20,308,761 | 21,500,735 | 20,340,182 | 21,553,953 |
Effect of dilutive securities: | ||||
Stock options and performance share awards (in shares) | 198,843 | 43,070 | 168,593 | 86,104 |
Diluted (in shares) | 20,507,604 | 21,543,805 | 20,508,775 | 21,640,057 |
Basic | $ 0.66 | $ 0.40 | $ 1.89 | $ 0.58 |
Diluted | $ 0.65 | $ 0.40 | $ 1.88 | $ 0.58 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 04, 2020 | |
Earnings Per Common Share | |||||||
Antidilutive securities excluded (in shares) | 0 | 109,446 | |||||
Capital shares, authorized (in shares) | 110,000,000 | 110,000,000 | |||||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | ||||
Preferred stock par value | $ 0 | $ 0 | $ 0 | ||||
Common stock par value | $ 0 | $ 0 | $ 0 | ||||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common stock issued (in shares) | 20,305,109 | 20,305,109 | 20,394,912 | ||||
Common stock outstanding (in shares) | 20,305,109 | 20,305,109 | 20,394,912 | ||||
Dividends paid | $ 0 | $ 0 | $ 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) | 272,592 | ||||||
Stock repurchased program | $ 5.5 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives and Hedging | ||
Notional Amount | $ 2.5 | $ 5.8 |
Expected reclassification to loan interest income | 2 | |
Collateral posted | 9.6 | 11.8 |
Customer swap positions | Derivatives designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 122.7 | 137.1 |
Customer swap positions | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 58.5 | 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives and Hedging | ||
Notional Amount | $ 2,500 | $ 5,800 |
Derivatives designated as hedging instruments under ASC 815 | Customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 122,700 | 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 | 58,500 | 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 | 6,655 | 10,799 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivatives and Hedging | ||
Notional Amount | 90,593 | 102,751 |
Fair Value | 6,768 | 11,385 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 29,239 | 34,224 |
Fair Value | 1,246 | 2,057 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Zero premium collar | ||
Derivatives and Hedging | ||
Notional Amount | 61,354 | 68,527 |
Fair Value | 5,522 | 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 | 93,094 | 108,533 |
Fair Value | 6,824 | 11,496 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offsets to customer swap positions | ||
Derivatives and Hedging | ||
Notional Amount | 29,239 | 34,224 |
Fair Value | 1,264 | 2,087 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offset to zero premium collar | ||
Derivatives and Hedging | ||
Notional Amount | 61,354 | 68,527 |
Fair Value | 5,560 | 9,398 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Credit risk participation | ||
Derivatives and Hedging | ||
Notional Amount | $ 2,501 | 5,782 |
Fair Value | $ 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flow Hedging | Interest rate swaps | ||||
Derivatives and Hedging | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (869) | $ (611) | $ (4,444) | $ 8,657 |
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | (637) | (619) | (1,878) | (1,271) |
Derivatives not designated as hedging instruments under ASC 815 | ||||
Derivatives and Hedging | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 21 | 10 | 61 | 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) | 19 | 7 | 51 | 249 |
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) | $ 2 | $ 3 | $ 10 | $ (3) |
Other Borrowings and Long Ter_3
Other Borrowings and Long Term Debt - Narrative (Details) - USD ($) | Aug. 20, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Other Borrowings and Long-Term Debt | ||||||
FHLB advances | $ 0 | $ 0 | $ 0 | |||
Interest expense for FHLB borrowings | 0 | $ 16,000 | 0 | $ 54,000 | ||
FHLB Advances | 0 | 0 | ||||
Available line of credit commitments | 1,100,000,000 | 1,100,000,000 | ||||
Available line of credit based on collateral available | 84,300,000 | 84,300,000 | ||||
Interest expense, federal funds purchased | 0 | $ 3,000 | 0 | $ 41,000 | ||
Subordinated Debt | ||||||
Other Borrowings and Long-Term Debt | ||||||
Aggregate principal amount | 75,000,000 | $ 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 | $ 298,700,000 | $ 298,700,000 |
Other Borrowings and Long Ter_4
Other Borrowings and Long Term Debt - Subordinated Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Other Borrowings and Long-Term Debt | ||
Subordinated debt, net | $ 74,024 | $ 73,807 |
Subordinated Debt | ||
Other Borrowings and Long-Term Debt | ||
Aggregate principal amount | 75,000 | 75,000 |
Less debt issuance costs | 976 | 1,193 |
Subordinated debt, net | 74,024 | 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-Based Compensation | ||||
Weighted average remaining contractual term (in years) | 3 years 5 months 19 days | |||
Fair value of vested option shares | $ 0 | $ 0 | ||
Restricted stock and performance share awards | ||||
Share-Based Compensation | ||||
Compensation expense | $ 973,000 | $ 620,000 | 2,800,000 | 1,600,000 |
Unrecognized compensation cost | $ 3,100,000 | $ 3,800,000 | $ 3,100,000 | $ 3,800,000 |
Weighted-average period of recognition | 1 year 10 months 24 days | 2 years 3 months 18 days | ||
Restricted stock awards granted (in shares) | 3,137 | 136,155 | 153,739 | 278,705 |
Granted/modified (dollars per share) | $ 24.24 | $ 11.05 | $ 19.51 | $ 14.67 |
Stock options and warrants | ||||
Share-Based Compensation | ||||
Compensation expense | $ 0 | $ 18,000 | $ 0 | $ 53,000 |
Unrecognized compensation cost | $ 0 | $ 6,000 | $ 0 | $ 6,000 |
Weighted-average period of recognition | 0 years | 1 month 6 days | ||
Restricted stock awards | ||||
Share-Based Compensation | ||||
Restricted stock awards granted (in shares) | 153,739 | |||
Granted/modified (dollars per share) | $ 19.51 | |||
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 | 4,525,000 | ||
Additional awards available to be granted (in shares) | 2,838,000 | |||
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 | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Shares | |
Outstanding, Beginning of period (in shares) | shares | 214,890 |
Granted/modified (in shares) | shares | 0 |
Exercised (in shares) | shares | (149,850) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding, End of period (in shares) | shares | 65,040 |
Exercisable (in shares) | shares | 65,040 |
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 | 10.71 |
Forfeited (dollars per share) | $ / shares | 0 |
Expired (dollars per share) | $ / shares | 0 |
Outstanding, End of period (dollars per share) | $ / shares | 14.66 |
Exercisable (dollars per share) | $ / shares | $ 14.66 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, Weighted average remaining contractual term (in years) | 3 years 5 months 19 days |
Exercisable, Weighted average remaining contractual term (in years) | 3 years 5 months 19 days |
Outstanding, Aggregate intrinsic value | $ | $ 769 |
Exercisable, Aggregate intrinsic value | $ | $ 769 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Shares | |
Outstanding, Beginning of period (in shares) | shares | 435,748 |
Granted/modified (in shares) | shares | 153,739 |
Vested (in shares) | shares | (175,209) |
Forfeited (in shares) | shares | (18,997) |
Outstanding, End of period (in shares) | shares | 395,281 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning of period (dollars per share) | $ / shares | $ 16.80 |
Granted/modified (dollars per share) | $ / shares | 19.51 |
Vested (dollars per share) | $ / shares | 17.60 |
Forfeited (dollars per share) | $ / shares | 17.54 |
Outstanding, Ending of period (dollars per share) | $ / shares | $ 17.75 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Total securities available-for-sale | $ 535,158 | $ 335,423 |
Interest rate derivative assets | 13,424 | 22,184 |
Interest rate derivative liabilities | 6,825 | 11,496 |
Fair Value | Fair value, measurements, recurring | ||
Fair Value Measurements | ||
Total securities available-for-sale | 535,158 | 335,423 |
Interest rate derivative assets | 13,423 | 22,184 |
Interest rate derivative liabilities | 6,824 | 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 | 535,158 | 335,423 |
Interest rate derivative assets | 13,423 | 22,184 |
Interest rate derivative liabilities | 6,824 | 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 | 76,702 | 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 | 76,702 | 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 | 4,871 | 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 | 4,871 | 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 | 24,374 | 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 | 24,374 | 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 | 402,302 | 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 | 402,302 | 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 | 26,909 | 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 | 26,909 | $ 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Measurements | ||
Assets | $ 2,403 | $ 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 | $ 2,403 | $ 2,844 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets | ||
Cash and due from banks | $ 25,725 | $ 16,865 |
Interest-bearing deposits in banks | 811,168 | 636,537 |
Total securities available-for-sale | 535,158 | 335,423 |
Total securities held-to-maturity | 237,842 | 200,170 |
Loans held for investment, net | 2,249,932 | 2,217,218 |
Derivative assets | 13,424 | 22,184 |
Financial liabilities | ||
Subordinated debt | 74,024 | 73,807 |
Derivative financial instruments | 6,825 | 11,496 |
Fair value, measurements, recurring | Carrying Value | ||
Financial assets | ||
Cash and due from banks | 25,725 | 16,865 |
Interest-bearing deposits in banks | 811,168 | 636,537 |
Other short-term investments | 140,848 | |
Total securities available-for-sale | 535,158 | 335,423 |
Total securities held-to-maturity | 237,829 | 200,156 |
FHLB stock | 1,808 | 2,619 |
FRB stock | 10,124 | 10,080 |
Loans held for investment, net | 2,273,856 | 2,249,036 |
Loans held for sale | 11,814 | |
Derivative assets | 13,423 | 22,184 |
Financial liabilities | ||
Deposits | 3,727,321 | 3,161,508 |
Subordinated debt | 74,024 | 73,807 |
Derivative financial instruments | 6,824 | 11,496 |
Fair value, measurements, recurring | Fair Value | ||
Financial assets | ||
Total securities available-for-sale | 535,158 | 335,423 |
Derivative assets | 13,423 | 22,184 |
Financial liabilities | ||
Derivative financial instruments | 6,824 | 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 | 25,725 | 16,865 |
Interest-bearing deposits in banks | 811,168 | 636,537 |
Other short-term investments | 140,848 | |
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 |
Other short-term investments | 0 | |
Total securities available-for-sale | 535,158 | 335,423 |
Total securities held-to-maturity | 245,929 | 214,584 |
FHLB stock | 0 | 0 |
FRB stock | 0 | 0 |
Loans held for investment, net | 0 | 0 |
Loans held for sale | 11,814 | |
Derivative assets | 13,423 | 22,184 |
Financial liabilities | ||
Deposits | 3,726,074 | 3,120,246 |
Subordinated debt | 78,030 | 77,814 |
Derivative financial instruments | 6,824 | 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 |
Other short-term investments | 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 | 2,357,246 | 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 | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | ||
Financial Instruments whose contract amount represents credit risk | $ 871,684 | $ 829,898 |
Minimum lease payments | 16,412 | 17,994 |
Private equity commitments | 1,200 | 1,500 |
Commitments to extend credit | ||
Commitments and Contingencies | ||
Financial Instruments whose contract amount represents credit risk | 850,016 | 813,757 |
Standby letters of credit | ||
Commitments and Contingencies | ||
Financial Instruments whose contract amount represents credit risk | 21,668 | 16,141 |
SBIC Investments | ||
Commitments and Contingencies | ||
Commitments related to investments in SBICs | $ 1,500 | $ 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Deposit account analysis fees and charges | ||||
Revenue Recognition | ||||
Revenue from contract with customer | $ 1,630 | $ 1,080 | $ 4,546 | $ 3,012 |
ATM fees | ||||
Revenue Recognition | ||||
Revenue from contract with customer | 31 | 10 | 82 | 46 |
NSF fees | ||||
Revenue Recognition | ||||
Revenue from contract with customer | 9 | 5 | 30 | 30 |
Wire fees | ||||
Revenue Recognition | ||||
Revenue from contract with customer | 22 | 18 | 73 | 166 |
Foreign exchange fees | ||||
Revenue Recognition | ||||
Revenue from contract with customer | 73 | 104 | 423 | 272 |
Other | ||||
Revenue Recognition | ||||
Revenue from contract with customer | 1 | 4 | ||
Total service charges | ||||
Revenue Recognition | ||||
Revenue from contract with customer | $ 1,765 | $ 1,217 | $ 5,155 | $ 3,530 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Leases | |||||
Operating lease ROU assets | $ 8,600,000 | $ 8,600,000 | $ 9,900,000 | ||
Operating lease liabilities | 13,428,000 | 13,428,000 | $ 14,900,000 | ||
Rent expense | $ 478,000 | $ 520,000 | $ 1,500,000 | $ 1,700,000 | |
Minimum | |||||
Leases | |||||
Contract terms | 1 year | 1 year | |||
Contract renewal terms | 5 years | 5 years | |||
Maximum | |||||
Leases | |||||
Contract terms | 12 years | 12 years | |||
Contract renewal terms | 10 years | 10 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | ||||
Operating lease cost | $ 478 | $ 510 | $ 1,509 | $ 1,696 |
Short-term lease cost | 10 | 2 | 25 | |
Sublease income | (126) | (91) | (312) | (273) |
Net lease cost | $ 352 | $ 429 | $ 1,199 | $ 1,448 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | ||||
Operating cash paid for amounts included in the measurement of lease liabilities | $ 554 | $ 530 | $ 1,581 | $ 1,655 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 62 | $ 62 | ||
Weighted-average remaining lease term - operating leases | 7 years 8 months 12 days | 8 years 6 months | 7 years 8 months 12 days | 8 years 6 months |
Weighted-average discount rate - operating leases | 3.03% | 3.04% | 3.03% | 3.04% |
Leases - Maturity of Remaining
Leases - Maturity of Remaining Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Maturity of remaining lease liabilities: | ||
September 30, 2022 | $ 2,403 | |
September 30, 2023 | 2,136 | |
September 30, 2024 | 1,966 | |
September 30, 2025 | 1,905 | |
September 30, 2026 | 1,831 | |
Thereafter | 6,171 | |
Total future minimum lease payments | 16,412 | $ 17,994 |
Less: Interest | (2,984) | |
Present value of net future minimum lease payments | $ 13,428 | $ 14,900 |