Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 001-39215 | |
Entity Registrant Name | Professional Holding Corp. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 46-5144312 | |
Entity Address, Address Line One | 396 Alhambra Circle | |
Entity Address, Address Line Two | Suite 255 | |
Entity Address, City or Town | Coral Gables | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33134 | |
City Area Code | 786 | |
Local Phone Number | 483-1757 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | PFHD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,426,141 | |
Amendment Flag | false | |
Entity Central Index Key | 0001630856 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 40,074 | $ 62,305 |
Interest-bearing deposits | 680,333 | 129,291 |
Federal funds sold | 23,736 | 25,376 |
Cash and cash equivalents | 744,143 | 216,972 |
Securities available for sale, at fair value - taxable | 94,218 | 65,110 |
Securities available for sale, at fair value - tax exempt | 19,462 | 22,398 |
Securities held to maturity (fair value September 30, 2021 – $269, December 31, 2020 – $1,561) | 259 | 1,547 |
Equity securities | 6,703 | 6,005 |
Loans, net of allowance of $11,478 and $16,259 as of September 30, 2021, and December 31, 2020, respectively | 1,675,773 | 1,641,422 |
Loans held for sale | 284 | 1,270 |
Federal Home Loan Bank stock, at cost | 2,341 | 3,229 |
Federal Reserve Bank stock, at cost | 5,416 | 4,762 |
Accrued interest receivable | 5,336 | 6,666 |
Premises and equipment, net | 3,807 | 4,370 |
Bank owned life insurance | 38,204 | 37,360 |
Deferred tax asset | 9,283 | 10,525 |
Goodwill | 24,621 | 24,621 |
Core deposit intangibles | 1,212 | 1,422 |
Other assets | 15,174 | 9,591 |
Total assets | 2,646,236 | 2,057,270 |
Deposits | ||
Demand – noninterest bearing | 799,389 | 475,598 |
Demand – interest bearing | 328,667 | 232,367 |
Money market and savings | 959,066 | 715,003 |
Time deposits | 267,624 | 236,575 |
Total deposits | 2,354,746 | 1,659,543 |
Official checks | 4,194 | 4,447 |
Federal Home Loan Bank advances | 35,000 | 40,000 |
Other borrowings | 0 | 114,573 |
Subordinated debt | 10,016 | 10,153 |
Accrued interest and other liabilities | 14,259 | 12,989 |
Total liabilities | 2,418,215 | 1,841,705 |
Stockholders’ equity | ||
Preferred stock, 10,000,000 shares authorized, none issued | 0 | 0 |
Treasury stock, at cost | (15,246) | (9,209) |
Additional paid-in capital | 210,898 | 208,995 |
Retained earnings | 32,160 | 14,756 |
Accumulated other comprehensive income | 66 | 882 |
Total stockholders’ equity | 228,021 | 215,565 |
Total liabilities and stockholders' equity | 2,646,236 | 2,057,270 |
Class A Voting Common Stock | ||
Stockholders’ equity | ||
Common stock | 143 | 141 |
Class B Non-Voting Common stock | ||
Stockholders’ equity | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities held to maturity, fair value | $ 269 | $ 1,561 |
Loan allowance | $ 11,478 | $ 16,259 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Class A Voting Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, issued (in shares) | 14,323,965 | 14,100,760 |
Common stock, outstanding (in shares) | 13,416,667 | 13,534,829 |
Class B Non-Voting Common stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common Stock, issued (in shares) | 0 | 0 |
Common stock, outstanding (in shares) | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - 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 | $ 20,209 | $ 18,488 | $ 57,753 | $ 46,400 |
Investment securities - taxable | 186 | 209 | 526 | 663 |
Investment securities - tax exempt | 177 | 224 | 569 | 430 |
Dividend income on restricted stock | 96 | 103 | 290 | 313 |
Other | 222 | 77 | 486 | 837 |
Total interest income | 20,890 | 19,101 | 59,624 | 48,643 |
Interest expense | ||||
Deposits | 1,476 | 1,165 | 4,223 | 5,408 |
Federal Home Loan Bank advances | 182 | 197 | 568 | 762 |
Subordinated debt | 128 | 79 | 335 | 324 |
Other borrowings | 0 | 200 | 313 | 337 |
Total interest expense | 1,786 | 1,641 | 5,439 | 6,831 |
Net interest income | 19,104 | 17,460 | 54,185 | 41,812 |
Provision for loan losses | 1,060 | 5,957 | 2,860 | 8,552 |
Net interest income after provision for loan losses | 18,044 | 11,503 | 51,325 | 33,260 |
Non-interest income | ||||
Service charges on deposit accounts | 643 | 319 | 2,237 | 848 |
Income from Bank owned life insurance | 281 | 123 | 844 | 378 |
SBA origination fees | 21 | 0 | 166 | 114 |
SWAP fee income | 208 | 149 | 781 | 622 |
Third party loan sales | 161 | 252 | 462 | 519 |
Gain on sale and call of securities | 1 | 1 | 23 | 16 |
Other | 161 | 119 | 384 | 290 |
Total non-interest income | 1,476 | 963 | 4,897 | 2,787 |
Non-interest expense | ||||
Salaries and employee benefits | 7,350 | 6,433 | 21,233 | 18,608 |
Occupancy and equipment | 935 | 1,196 | 2,942 | 3,051 |
Data processing | 303 | 374 | 869 | 971 |
Marketing | 420 | 435 | 738 | 723 |
Professional fees | 689 | 562 | 2,087 | 1,723 |
Acquisition expenses | 0 | 1,078 | 684 | 3,301 |
Regulatory assessments | 481 | 250 | 1,248 | 764 |
Other | 1,446 | 1,385 | 4,565 | 3,606 |
Total non-interest expense | 11,624 | 11,713 | 34,366 | 32,747 |
Income before income taxes | 7,896 | 753 | 21,856 | 3,300 |
Income tax provision (benefit) | 1,608 | (197) | 4,452 | 536 |
Net income | $ 6,288 | $ 950 | $ 17,404 | $ 2,764 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.48 | $ 0.07 | $ 1.30 | $ 0.24 |
Diluted (in dollars per share) | $ 0.45 | $ 0.07 | $ 1.25 | $ 0.21 |
Other comprehensive income: | ||||
Unrealized holding gain (loss) on securities available for sale | $ (288) | $ 171 | $ (1,081) | $ 1,240 |
Tax effect | 71 | (43) | 265 | (315) |
Other comprehensive gain (loss), net of tax | (217) | 128 | (816) | 925 |
Comprehensive income | $ 6,071 | $ 1,078 | $ 16,588 | $ 3,689 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2019 | 5,867,446 | |||||
Beginning balance at Dec. 31, 2019 | $ 79,302 | $ 60 | $ (4,155) | $ 77,019 | $ 6,451 | $ (73) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost (in shares) | 3,702,558 | |||||
Issuance of common stock, net of issuance cost | 60,604 | $ 37 | 60,567 | |||
Marquis Bancorp (MBI) acquisition (in shares) | 4,227,816 | |||||
Marquis Bancorp (MBI) acquisition | 64,699 | $ 42 | 64,657 | |||
Employee stock purchase plan | 82 | 82 | ||||
Stock based compensation | 725 | 725 | ||||
Treasury stock (in shares) | (315,294) | |||||
Treasury stock | (4,986) | (4,977) | (9) | |||
Net income | 2,764 | 2,764 | ||||
Other comprehensive income | 925 | 925 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 13,482,526 | |||||
Ending balance at Sep. 30, 2020 | 204,115 | $ 139 | (9,132) | 203,041 | 9,215 | 852 |
Beginning balance (in shares) at Jun. 30, 2020 | 13,444,635 | |||||
Beginning balance at Jun. 30, 2020 | 202,434 | $ 139 | (9,132) | 202,438 | 8,265 | 724 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost (in shares) | 37,891 | |||||
Issuance of common stock, net of issuance cost | 346 | $ 0 | 346 | |||
Employee stock purchase plan | 24 | 24 | ||||
Stock based compensation | 233 | 233 | ||||
Treasury stock (in shares) | 0 | |||||
Treasury stock | 0 | 0 | 0 | |||
Net income | 950 | 950 | ||||
Other comprehensive income | 128 | 128 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 13,482,526 | |||||
Ending balance at Sep. 30, 2020 | 204,115 | $ 139 | (9,132) | 203,041 | 9,215 | 852 |
Beginning balance (in shares) at Dec. 31, 2020 | 13,534,829 | |||||
Beginning balance at Dec. 31, 2020 | 215,565 | $ 141 | (9,209) | 208,995 | 14,756 | 882 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost (in shares) | 89,500 | |||||
Issuance of common stock, net of issuance cost | 812 | $ 1 | 811 | |||
Employee stock purchase plan (in Shares) | 1,851 | |||||
Employee stock purchase plan | 34 | 34 | ||||
Stock based compensation (in shares) | 131,854 | |||||
Stock based compensation | 1,069 | $ 1 | 1,068 | |||
Treasury stock (in shares) | (341,367) | |||||
Treasury stock | (6,047) | (6,037) | (10) | |||
Net income | 17,404 | 17,404 | ||||
Other comprehensive income | (816) | (816) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 13,416,667 | |||||
Ending balance at Sep. 30, 2021 | 228,021 | $ 143 | (15,246) | 210,898 | 32,160 | 66 |
Beginning balance (in shares) at Jun. 30, 2021 | 13,475,781 | |||||
Beginning balance at Jun. 30, 2021 | 223,028 | $ 143 | (13,544) | 210,274 | 25,872 | 283 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net of Issuance cost (in shares) | 28,296 | |||||
Issuance of common stock, net of issuance cost | 268 | 268 | ||||
Employee stock purchase plan (in Shares) | 0 | |||||
Employee stock purchase plan | 0 | 0 | ||||
Stock based compensation (in shares) | 6,189 | |||||
Stock based compensation | 359 | 359 | ||||
Treasury stock (in shares) | (93,599) | |||||
Treasury stock | (1,705) | (1,702) | (3) | |||
Net income | 6,288 | 6,288 | ||||
Other comprehensive income | (217) | (217) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 13,416,667 | |||||
Ending balance at Sep. 30, 2021 | $ 228,021 | $ 143 | $ (15,246) | $ 210,898 | $ 32,160 | $ 66 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - 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 | |
Cash flows from operating activities | |||||
Net income | $ 17,404 | $ 2,764 | |||
Adjustments to reconcile net income to net cash from operating activities | |||||
Provision for loan losses | 2,860 | 8,552 | $ 10,017 | ||
Deferred income tax benefit (expense) | 1,221 | (2,981) | |||
Depreciation and amortization | 1,084 | 1,132 | |||
Gain on sale of securities | 0 | (4) | |||
Gain on call of securities | (23) | (12) | |||
Equity unrealized change in market value | 102 | (24) | |||
Net amortization of securities | 2,137 | (287) | |||
Net amortization of deferred loan fees | (6,589) | (2,371) | |||
Loans held for sale | 986 | 0 | |||
Income from bank owned life insurance | $ (281) | $ (123) | (844) | (378) | |
Loss on disposal of premises and equipment | 140 | 0 | |||
Employee stock purchase plan | 34 | 82 | |||
Stock compensation | 1,069 | 725 | |||
Changes in operating assets and liabilities: | |||||
Accrued interest payable (receivable) | 1,330 | (2,524) | |||
Other assets | (7,534) | 3,110 | |||
Official checks, accrued interest, interest payable and other liabilities | 1,303 | (2,054) | |||
Net cash provided by operating activities | 14,680 | 5,730 | |||
Cash flows from investing activities | |||||
Proceeds from maturities and paydowns of securities available for sale | 16,749 | 10,407 | |||
Proceeds from calls of securities available for sale | 4,812 | 8,500 | |||
Proceeds from maturities and paydowns of securities held to maturity | 1,282 | 84 | |||
Purchase of securities available for sale | (50,922) | (60,693) | |||
Proceeds from sale of securities available for sale | 0 | 1,739 | 1,700 | ||
Purchase of equity securities | (800) | 0 | |||
Loans originations, net of principal repayments | (41,886) | (299,867) | |||
Purchase (redemption) of Federal Reserve Bank stock | (654) | 10,540 | |||
Proceeds from maturities of Federal Home Loan Bank Stock | 888 | (2,688) | |||
Purchase of Federal Home Loan Bank Stock | 0 | (660) | |||
Purchases of premises and equipment | (588) | (486) | |||
Proceeds from acquisition | 0 | 26,860 | |||
Net cash used in investing activities | (71,119) | (306,264) | |||
Cash flows from financing activities | |||||
Net increase (decrease) in deposits | 695,203 | 176,160 | |||
Proceeds from issuance of stock, net of issuance costs | 812 | 60,604 | |||
Purchase of treasury stock | (6,047) | (4,986) | |||
Proceeds from Federal Home Loan Bank advances | 0 | 10,000 | |||
Repayments of Federal Home Loan advances | (5,000) | (40,000) | |||
Repayment of line of credit | 0 | (9,999) | |||
Proceeds from PPPLF advances | 0 | 224,341 | |||
Repayments of PPPLF advances | (101,358) | 0 | |||
Net cash provided by financing activities | 583,610 | 416,120 | |||
Increase in cash and cash equivalents | 527,171 | 115,586 | |||
Cash and cash equivalents at beginning of period | 216,972 | 198,950 | 198,950 | ||
Cash and cash equivalents at end of period | $ 744,143 | $ 314,536 | 744,143 | 314,536 | $ 216,972 |
Supplemental cash flow information: | |||||
Cash paid during the period for interest | 6,192 | 6,233 | |||
Cash paid during the period for taxes | 4,200 | 2,186 | |||
Supplemental noncash disclosures: | |||||
Lease liabilities arising from obtaining right of use assets | 0 | 1,680 | |||
Total assets acquired | 0 | 589,760 | |||
Total liabilities assumed | $ 0 | $ 540,712 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: The accompanying unaudited consolidated financial statements of Professional Holding Corp. and its subsidiary, Professional Bank (the “Bank” and collectively with Professional Holding Corp., the “Company”), have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Use of Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Adoption of new accounting standards: ASU 2019-12, Income Taxes (Topic 740) In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, FASB issued guidance which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate ("LIBOR") likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020, and December 31, 2022. The Company has established a cross-functional working group to guide the Company’s transition from LIBOR and has begun efforts to transition to alternative rates consistent with industry timelines. The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. New accounting standards that have not yet been adopted: The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company’s financial statements: ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Description In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss ("CECL") model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). Date of Adoption For PBEs that are non-SEC filers and for SEC filers that are considered small reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company's management is in the process of evaluating credit loss estimation models. Updates to business processes and the documentation of accounting policy decisions are ongoing. The company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company's consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding plus the effect of employee stock options during the year. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Basic earnings per share: Net income $ 6,288 $ 950 $ 17,404 $ 2,764 Total weighted average common stock outstanding 13,196,025 13,438,652 13,344,470 11,694,764 Net income per share $ 0.48 $ 0.07 $ 1.30 $ 0.24 Diluted earnings per share: Net income $ 6,288 $ 950 $ 17,404 $ 2,764 Total weighted average common stock outstanding 13,196,025 13,438,652 13,344,470 11,694,764 Add: Dilutive effect of employee stock options 659,402 1,117,563 568,613 1,290,819 Total weighted average diluted stock outstanding 13,855,427 14,556,215 13,913,083 12,985,583 Net income per share $ 0.45 $ 0.07 $ 1.25 $ 0.21 For the three months ended September 30, 2021, there were seven thousand stock options that were anti-dilutive and for the three months ended September 30, 2020, there were 326 thousand stock options that were anti-dilutive. For the nine months ended September 30, 2021, there were 278 thousand stock options that were anti-dilutive and for the nine months ended September 30, 2020, there were 133 thousand stock options that were anti-dilutive. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity on September 30, 2021, and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: September 30, 2021 Amortized Gross Gross Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 40,131 $ 62 $ (490) $ 39,703 Mortgage-backed securities 51,105 162 (340) 50,927 United States agency obligations 2,002 77 — 2,079 Corporate bonds 1,500 9 — 1,509 Total available-for-sale - taxable $ 94,738 $ 310 $ (830) $ 94,218 Available-for-sale - tax exempt Community Development District bonds $ 17,800 $ 564 $ — $ 18,364 Municipals 1,054 44 — 1,098 Total available-for-sale - tax exempt $ 18,854 $ 608 $ — $ 19,462 Amortized Gross Gross Fair Value Held-to-Maturity Mortgage-backed securities $ 259 $ 10 $ — $ 269 Total Held-to-Maturity $ 259 $ 10 $ — $ 269 Amortized Gross Gross Fair Value Equity Mutual Funds $ 5,903 $ — $ — $ 5,903 Other equity securities 800 — — 800 Total Equity $ 6,703 $ — $ — $ 6,703 December 31, 2020 Amortized Gross Gross Fair Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 — 3,122 Corporate bonds 2,501 9 — 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ — $ 21,299 Municipals 1,064 35 — 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ — $ 22,398 Amortized Gross Gross Fair Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561 As of September 30, 2021, and December 31, 2020, Corporate bonds were comprised of investments in the financial services industry. During the nine months ended September 30, 2021, the net investment portfolio increased by $25.6 million as a result of increases from purchases of $50.9 million in SBA and MBS securities combined with decreases of $24.9 million from paydowns, maturities and calls, as well as the unrealized holding loss on securities available for sale of $1.2 million with a related tax effect of $0.1 million. Proceeds from the maturity and redemption of securities during the three and nine months ended September 30, 2021, were $1.2 million and $4.8 million, with gross realized gains of $0 and $23 thousand, respectively. Proceeds from the sales of securities during the year ended December 31, 2020, were $1.7 million, with gross realized gains of $4 thousand. Proceeds from redemption of securities for the year ended December 31, 2020, were $9.1 million, with gross realized gains of $33 thousand. Total securities pledged as of September 30, 2021, and December 31, 2020, were $1.9 million and $12.5 million, respectively. Securities pledged for derivative SWAP transactions as of September 30, 2021, were $1.9 million which were included in the total securities pledged, such securities were generally pledged for public funds. There were no securities pledged for derivative SWAP transactions on December 31, 2020. The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. The scheduled maturities of securities as of September 30, 2021, are as follows: September 30, 2021 Amortized Fair Available-for-sale Due in one year or less $ 1,188 $ 1,202 Due after one year through five years 20,853 21,523 Due after five years through ten years 315 325 Due after ten years — — Subtotal $ 22,356 $ 23,050 Small Business Administration loan pools $ 40,131 $ 39,703 Mortgage-backed securities 51,105 50,927 Total available-for-sale $ 113,592 $ 113,680 Mortgage-backed securities $ 259 $ 269 Total held-to-maturity $ 259 $ 269 On September 30, 2021, and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. On September 30, 2021, and December 31, 2020, the number of investment positions that are in an unrealized loss position were 51 and 36, respectively. The tables below indicate the fair value of debt securities with unrealized losses and for the period of time of which these losses were outstanding on September 30, 2021, and December 31, 2020, respectively, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Available-for-sale - taxable Small Business Administration loan pools $ 14,640 $ (359) $ 16,127 $ (131) $ 30,767 $ (490) Mortgage-backed securities 33,019 (340) — — 33,019 (340) Total available-for-sale - taxable $ 47,659 $ (699) $ 16,127 $ (131) $ 63,786 $ (830) December 31, 2020 Available-for-sale - taxable Small Business Administration loan pools $ 18,849 $ (133) $ 8,945 $ (66) $ 27,794 $ (199) Mortgage-backed securities 5,839 — 2,510 (30) 8,349 (30) United States agency obligations 227 — — — 227 — Total available-for-sale - taxable $ 24,915 $ (133) $ 11,455 $ (96) $ 36,370 $ (229) The unrealized holding losses within the investment portfolio are considered to be temporary and are mainly due to changes in the interest rate cycle. The unrealized loss positions may fluctuate positively or negatively with changes in interest rates or spreads. Since SBA loan pools and mortgage-backed securities are government sponsored entities that are highly rated, the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not have any securities in an Other Than Temporary Impairment (“OTTI”) position. The Company does not intend to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. No credit losses were recognized in operations during the nine months ended September 30, 2021, or during the year ended December 31, 2020. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
LOANS | LOANS Loans on September 30, 2021, and December 31, 2020, were as follows: September 30, 2021 December 31, 2020 Loans held for investment: Commercial real estate $ 856,194 $ 777,025 Residential real estate 371,469 379,534 Commercial (Non-PPP) 288,177 206,095 Commercial (PPP) 85,133 185,748 Construction and land development 69,534 99,590 Consumer and other 16,744 9,689 Total loans held for investment, gross 1,687,251 1,657,681 Allowance for loan loss (11,478) (16,259) Loans held for investment, net $ 1,675,773 $ 1,641,422 Loans held for sale: Loans held for sale $ 284 $ 1,270 Total loans held for sale $ 284 $ 1,270 The recorded investment in loans excludes accrued interest receivable due to immateriality. On September 30, 2021, and December 31, 2020, there were $238.7 million and $264.2 million, respectively in total loans pledged to the Federal Home Loan Bank (“FHLB”) for liquidity. Loan premiums for loans purchased are amortized over the life of the loan with acceleration upon the increase in principal paydowns or payoffs. On September 30, 2021, and December 31, 2020, loan premiums for purchased loans were $0.4 million and $0.6 million, respectively. There are no loans over 90 days past due and accruing as of September 30, 2021, or December 31, 2020. 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: 30 – 59 60 – 89 Greater than Nonaccrual Total Loans Not Total September 30, 2021 Commercial real estate $ — $ — $ — $ — $ — $ 856,194 $ 856,194 Residential real estate 22 — — — 22 371,447 371,469 Commercial (Non-PPP) 369 — — 1,468 1,837 286,340 288,177 Commercial (PPP) — — — — — 85,133 85,133 Construction and land development — — — — — 69,534 69,534 Consumer and other 88 — — 1,307 1,395 15,349 16,744 Total $ 479 $ — $ — $ 2,775 $ 3,254 $ 1,683,997 $ 1,687,251 30 – 59 60 – 89 Greater than Nonaccrual Total Loans Not Total December 31, 2020 Commercial real estate $ — $ — $ — $ — $ — $ 777,025 $ 777,025 Residential real estate 1,317 — — — 1,317 378,217 379,534 Commercial (Non-PPP) 278 — — 9,127 278 205,817 206,095 Commercial (PPP) — — — — — 185,748 185,748 Construction and land development — — — — — 99,590 99,590 Consumer and other — — — 1,307 — 9,689 9,689 Total $ 1,595 $ — $ — $ 10,434 $ 1,595 $ 1,656,086 $ 1,657,681 On September 30, 2021, there were five impaired loans (consisting of nonaccrual loans, troubled debt restructured loans, loans past due 90 days or more and still accruing interest and other loans based on management’s judgment) with both unpaid principal balance and recorded investments totaling $3.0 million. Three of these loans were impaired loans with a recorded investment of $2.8 million with an allowance of $1.3 million and one substandard accruing loan with a recorded investment of $2.3 million with no allowance. The average net investment on the impaired residential real estate and commercial loans during the three months ended September 30, 2021, were $0.9 million. Residential real estate loans had $2.2 million and $7 thousand interest income recognized for the three and nine months ended September 30, 2021, and 2020, respectively, which was equal to the cash basis interest income. On December 31, 2020, there were six impaired loans with recorded investments totaling $13.1 million, of which there were three impaired loans with a recorded investment of $10.4 million on nonaccrual with an allowance of $8.3 million and one substandard accruing loan with a recorded investment of $2.4 million with no allowance. The average net investment on the impaired residential real estate and commercial loans during the year ended December 31, 2020, was $2.2 million. The residential real estate loans had $13 thousand of interest income recognized during the year ended December 31, 2020, which was equal to the cash basis interest income. Troubled Debt Restructurings: The principal carrying balances of loans that met the criteria for consideration as troubled debt restructurings (“TDR”) were $227 thousand and $299 thousand as of September 30, 2021, and December 31, 2020, respectively. The Company has allocated no specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2021, and December 31, 2020. The Company has not committed any additional amounts to customers whose loans are classified as a troubled debt restructuring. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt including: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Generally, all credits greater than $1.0 million are reviewed at least annually to monitor and adjust, if necessary, the credit risk profile. Loans classified as substandard or special mention are reviewed quarterly by the Company for further evaluation to determine if they are appropriately classified and whether there is any impairment. Beyond the annual review, all loans are graded upon initial issuance. In addition, during the renewal process of any loan, as well as if a loan becomes past due, the Company will determine the appropriate loan grade. Loans excluded from the review process above are generally classified as pass credits until: (a) they become past due; (b) management becomes aware of deterioration in the creditworthiness of the borrower; or (c) the customer contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification as to special mention, substandard, doubtful, or even charged-off. The Company uses the following definitions for risk ratings: Pass: A Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. The pass category includes the following: Riskless: Loans that are fully secured by liquid, properly margined collateral (listed stock, bonds, or other securities; savings accounts; certificates of deposit; loans or that portion thereof which are guaranteed by the U.S. Government or agencies backed by the “full faith and credit” thereof; loans secured by properly executed letters of credit from prime financial institutions). High Quality Risk: Loans to recognized national companies and well-seasoned companies that enjoy ready access to major capital markets or to a range of financing alternatives. Borrower’s public debt offerings are accorded highest ratings by recognized rating agencies, e.g., Moody’s or Standard & Poor’s. Companies display sound financial conditions and consistent superior income performance. The borrower’s trends and those of the industry to which it belongs are positive. Satisfactory Risk: Loans to borrowers, reasonably well established, that display satisfactory financial conditions, operating results, and excellent future potential. Capacity to service debt is amply demonstrated. Current financial strength, while financially adequate, may be deficient in a number of respects. Normal comfort levels are achieved through a closely monitored collateral position and/or the strength of outside guarantors. Moderate Risk: Loans to borrowers who are in non-compliance with periodic reporting requirements of the loan agreement, and any other credit file documentation deficiencies, which do not otherwise affect the borrower’s credit risk profile. This may include borrowers who fail to supply updated financial information that supports the adequacy of the primary source of repayment to service the Bank’s debt and prevents bank management to evaluate the borrower’s current debt service capacity. Existing loans will include those with consistent track record of timely loan payments, no material adverse changes to underlying collateral, and no material adverse change to guarantor(s) financial capacity, evidenced by public record searches. Special mention: A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard: A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss: A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total September 30, 2021 Commercial real estate $ 853,888 $ — $ 2,306 $ — $ 856,194 Residential real estate 371,469 — — — 371,469 Commercial (Non-PPP) 286,334 375 1,468 — 288,177 Commercial (PPP) 85,133 — — — 85,133 Construction and land development 69,534 — — — 69,534 Consumer 15,349 88 1,307 — 16,744 Total $ 1,681,707 $ 463 $ 5,081 $ — $ 1,687,251 December 31, 2020 Commercial real estate $ 774,674 $ — $ 2,351 $ — $ 777,025 Residential real estate 379,104 430 — — 379,534 Commercial (Non-PPP) 196,856 112 9,127 — 206,095 Commercial (PPP) 185,748 — — — 185,748 Construction and land development 99,590 — — — 99,590 Consumer 8,382 — 1,307 — 9,689 Total $ 1,644,354 $ 542 $ 12,785 $ — $ 1,657,681 Purchased Credit Impaired Loans: The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Commercial real estate (1) $ 5,869 $ — Residential real estate 451 405 Commercial 556 746 Construction and development (1) — 3,732 Carrying amount, net of total discounts $ 6,876 $ 4,883 _________________________________________________________________ (1) During the three months ended September 30, 2021, construction was completed on a construction loan and recategorized as a non-owner occupied commercial real estate loan. Changes in the carrying amount of the accretable yield for all purchased credit impaired loans were as follows for the nine months ended September 30, 2021: (Dollars in thousands) 2021 Balance at beginning of period $ (630) Adjustment of income — Accretion 296 Reclassifications from nonaccretable difference (136) Disposals 16 Balance at end of period $ (454) For those purchased credit impaired loans disclosed above, no allowances for loan losses were recorded or reversed during the nine months ended September 30, 2021. The credit fair value adjustment on purchased credit impairment (“PCI”) loans represents the portion of the loan balances that have been deemed uncollectible based on the Company’s expectations of future cash flows for each respective loan. PCI loans purchased on March 26, 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (Dollars in thousands) March 26, 2020 Contractually required principal and interest by loan type Commercial real estate $ 427 Residential real estate 604 Commercial 2,176 Construction and development 5,614 Consumer and other loans — Total $ 8,821 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 80 Residential real estate 138 Commercial 1,123 Construction and development 2,297 Consumer and other loans — Total $ 3,638 Expected cash flows $ 5,183 Interest component of expected cash flows (accretable discount) (545) Fair value of PCI loans accounted for under ASC 310-30 $ 4,638 Non-Performing Assets As of September 30, 2021, the Company had nonperforming assets of $2.8 million, or 0.10% of total assets, compared to nonperforming assets of $10.4 million, or 0.51% of total assets, on December 31, 2020. The Bank’s charge-off policy for impaired loans is similar to its charge-off policy for all loans in that loans are charged-off in the month when a determination of a confirmed loss is made on a loan. In March 2021, the Company charged-off $7.6 million of the Coex Coffee International, Inc. (“Coex”) loan, which amount was previously reserved during the third quarter of 2020. Based on a review of the estimated receivables collected by the assignee in the Florida case for the benefit of creditors (the “Assignee”), the remaining book balance of $0.6 million for the Coex loan appears to be collectable by the Company, subject to final accounting by the Assignee. Paycheck Protection Program As of September 30, 2021, the Company participated in all three rounds of the Payroll Protection Program ("PPP") and funded 2,287 small business loans representing approximately $340.5 million in relief proceeds, of which 1,745 loans totaling $251.4 million were forgiven by the SBA and the balance was $85.1 million as of September 30, 2021.. Most of the PPP loans were initially pledged to the Federal Reserve as part of the Payroll Protection Program Liquidity Facility ("PPPLF"). The PPPLF pledged loans are non-recourse to the Company. However, the Company paid off all of the PPPLF advances during the first and second quarter of 2021. Debt Service Relief Requests Related to COVID-19 As a result of the COVID-19 pandemic the Company has reviewed and processed numerous debt service relief requests in accordance with Section 4013 of the CARES Act and interagency guidelines published by federal banking regulators on March 13, 2020. As currently interpreted by the agencies, the guidelines assert that short-term modifications made on good faith for |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2021 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method for the nine months ended September 30, 2021, and the year ended December 31, 2020: Commercial Residential Commercial Construction and Land Development Consumer Total September 30, 2021 Allowance for loan losses: Beginning balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Provision for loan losses 920 45 1,276 (55) 674 2,860 Loans charged-off — — (7,641) — — (7,641) Recoveries — — — — — — Total ending allowance balance $ 4,079 $ 2,222 $ 4,097 $ 333 $ 747 $ 11,478 Commercial Residential Commercial Construction Consumer Total December 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 1,314 (731) 9,326 116 (8) 10,017 Loans charged-off — (207) (99) — — (306) Recoveries — — — — — — Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Commercial Residential Commercial Construction Consumer Total September 30, 2021 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 669 $ — $ 653 $ 1,322 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 4,079 2,222 3,428 333 94 10,156 Total ending allowance balance $ 4,079 $ 2,222 $ 4,097 $ 333 $ 747 $ 11,478 Loans: Loans individually evaluated for impairment $ 2,306 $ 227 $ 1,468 $ — $ 1,307 $ 5,308 Loans collectively evaluated for impairment 853,888 371,242 371,842 69,534 15,437 1,681,943 Total ending loans balance $ 856,194 $ 371,469 $ 373,310 $ 69,534 $ 16,744 $ 1,687,251 December 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 8,309 $ — $ — $ 8,309 Purchased Credit Impaired (PCI) loans — — — — — Collectively evaluated for impairment 3,159 2,177 2,153 388 73 7,950 Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Loans: Loans individually evaluated for impairment $ 2,351 $ 299 $ 9,127 $ — $ 1,307 $ 13,084 Loans collectively evaluated for impairment 774,674 379,235 382,716 99,590 8,382 1,644,597 Total ending loans balance $ 777,025 $ 379,534 $ 391,843 $ 99,590 $ 9,689 $ 1,657,681 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The Company’s total deposits are comprised of the following at the dates indicated: For the Nine Months Ended For the Year Ended December 31, 2020 (Dollars in thousands) Ending % of Total Ending % of Total NOW accounts $ 328,667 14.0% $ 232,367 14.0% Money market accounts 893,441 37.9% 679,761 41.0% Brokered deposits 56,418 2.4% 30,137 1.8% Savings accounts 13,833 0.6% 9,727 0.6% Certificates of deposit 262,998 11.2% 231,953 14.0% Total interest-bearing deposits 1,555,357 66.1% 1,183,945 71.3% Noninterest-bearing deposits 799,389 33.9% 475,598 28.7% Total deposits $ 2,354,746 100.0% $ 1,659,543 100.0% _______________________________________________ (1) Balance Sheet does not illustrate brokered deposits as presented above . The following table presents the maturities of our time deposits including time deposits that meet or exceed the $250,000 FDIC insurance limit as of September 30, 2021. (Dollars in thousands) Three Over Over Six Over Total Time deposits of $250,000 or less $ 13,123 $ 18,043 $ 57,678 $ 6,444 $ 95,288 Time deposits of more than $250,000 25,539 30,762 111,204 4,831 172,336 Total $ 38,662 $ 48,805 $ 168,882 $ 11,275 $ 267,624 The following tables present the maturities of our time deposits including time deposits that meet or exceed the $250,000 FDIC insurance limit as of December 31, 2020. (Dollars in thousands) Three Over Over Six Over Total Time deposits of $250,000 or less $ 20,767 $ 13,258 $ 24,805 $ 19,240 $ 78,070 Time deposits of more than $250,000 40,189 35,314 42,845 40,157 158,505 Total $ 60,956 $ 48,572 $ 67,650 $ 59,397 $ 236,575 As of September 30, 2021, and December 31, 2020, the Company had time deposits that exceed the $250,000 FDIC insurance limit of $172.3 million and $158.5 million, respectively. Securities, mortgage loans or other financial instruments pledged as collateral for certain deposits were $28.7 million, and $54.7 million on September 30, 2021, and December 31, 2020, respectively. The aggregate amount of demand deposits that have been re-classified as loan balances on September 30, 2021, and December 31, 2020, were $0.4 million, and $0.1 million, respectively. Deposits from principal officers, directors and their affiliates on September 30, 2021, and December 31, 2020, were $22.4 million, and $12.1 million, respectively. For time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years at the dates indicated. September 30, 2021 December 31, 2020 Less than 1 year $ 256,349 $ 177,178 Over 1 through 2 years 10,153 57,034 Over 2 through 3 years 1,082 1,658 Over 3 through 4 years 40 705 Over 4 through 5 years — — Over 5 years — — Total $ 267,624 $ 236,575 Banks are required to maintain cash reserves in the form of vault cash or in an account with the Federal Reserve Bank or in noninterest-earning accounts with other qualified banks. This requirement is based on the Bank’s amount of transaction deposit accounts. Due to the amount of transaction deposit accounts, the Bank was not required to have cash reserve requirements on September 30, 2021, and December 31, 2020. Additionally, the Company had $77.8 million and $98.2 million, in Qualified Public Deposits (“QPD”) that require a portion of the deposit to be pledged as collateral as of September 30, 2021, and December 31, 2020. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Subordinated Debt . On March 26, 2020, pursuant to terms of the acquisition, the Company assumed the subordinated notes payable of Marquis Bancorp, Inc. (“MBI”) at its fair value of $10.3 million. According to the terms of the subordinated note, the principal amount due is $10.0 million with a 7% fixed rate until October 30, 2021, and a variable rate thereafter at LIBOR plus 576 basis points. The note matures on October 30, 2026, and can be redeemed by the Company anytime on or after October 30, 2021. Pursuant to its contractual terms, the Company redeemed in full, the amount of its subordinated notes payable of $10.0 million on October 30, 2021. The subordinated debt was fair valued at a premium of $0.3 million and is being amortized over the expected life. Valley National Line of Credit . On December 19, 2019, the Company entered into a $10.0 million secured revolving line of credit with Valley National Bank, N.A. Amounts drawn under this line of credit bears interest at the Prime Rate, as announced by The Wall Street Journal from time to time as its prime rate, and its obligations under this line of credit are secured by shares of the capital stock of the Bank, which we have pledged as security. On January 7, 2021, (the “Closing Date”) the Company and Valley National Bank entered an amendment, which among other things, extended the maturity date of the note to March 19, 2021. No other material terms of the note changed. The principal balance outstanding pursuant to the note on the Closing Date was $0. On May 10, 2021, the Company and Valley National Bank entered into an extension agreement, which among other things, extended the maturity date of the note to March 1, 2022. As of September 30, 2021, and December 31, 2020, there were no outstanding borrowings under this line of credit. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
BORROWINGS | BORROWINGS The Company uses short-term and long-term borrowings to supplement deposits to fund lending and investment activities. FHLB Advances. The FHLB allows the Company to borrow up to 25% of its assets on a blanket floating lien status collateralized by certain securities and loans. As of September 30, 2021, approximately $238.7 million in total loans that were pledged as collateral for our FHLB borrowings. We utilize these borrowings to meet liquidity needs and to fund certain fixed rate loans in our portfolio. As of September 30, 2021, we had $35.0 million in outstanding advances and $129.3 million in additional available borrowing capacity from the FHLB based on the collateral that we have currently pledged. The following table sets forth certain information on our FHLB borrowings during the periods presented. (Dollars in thousands) Nine Months Ended Year Ended December 31, 2020 Amount outstanding at period-end $ 35,000 $ 40,000 Weighted average interest rate at period-end 2.04% 1.96% Maximum month-end balance during period $ 40,000 $ 70,000 Average balance outstanding during period 37,564 58,210 Weighted average interest rate during period 2.00% 1.63% Federal Reserve Bank of Atlanta . The Federal Reserve Bank of Atlanta has an available borrower in custody arrangement which allows us to borrow on a collateralized basis. No advances were outstanding under this facility as of September 30, 2021. |
COMMON STOCK AND PREFERRED STOC
COMMON STOCK AND PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK AND PREFERRED STOCK | COMMON STOCK AND PREFERRED STOCK Class A Voting Common Stock The Company has Class A voting common stock with a par value of $0.01 per share. As of September 30, 2021, there are 50,000,000 shares authorized as Class A voting common stock of which 13,416,667 are outstanding. During the nine months ended September 30, 2021, the Company issued 229,417 shares of Class A voting common stock, inclusive of 134,856 shares of restricted stock grants, 92,710 shares of options exercised, and 1,851 shares pursuant to the employee stock purchase program. During the nine months ended September 30, 2021, the Company repurchased 341,367 shares of Class A common stock. Further, during the same nine-month period, upon the vesting of a portion of restricted stock, employees of the Company elected to have 3,210 shares of Class A common voting stock withheld for tax purposes and had 3,002 in restricted stock cancellations. Class B Non-voting Common Stock The Company has Class B non-voting common stock with a par value of $0.01 per share. As of September 30, 2021, there are 10,000,000 shares authorized as Class B non-voting common stock, none of which are outstanding. Preferred Stock The Company has 10,000,000 shares of undesignated and unissued preferred stock. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. Securities available for sale: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations, corporate bonds, municipal bonds and U.S. agency notes. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 might include certain residual interests in securitizations and other less liquid securities. As of September 30, 2021, and December 31, 2020, all securities available for sale were Level 2. Securities held-to-maturity: Reported at fair value utilizing Level 2 inputs. The estimated fair value is determined based on market quotes when available. If not available, quoted market prices of similar securities, discounted cash flow analysis, pricing models and observable market data are used in determining fair market value. Equity securities: The Company values equity securities at readily determinable market values based on the closing price at the end of each period. Changes in fair value are recognized through net income. Loans: Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type, such as commercial or residential mortgage. Each loan category is further segmented into fixed and adjustable rate interest terms as well as performing and non-performing categories. The fair value of loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations and estimated market discount rates that reflect the risks inherent to the loan. The calculation of the fair value considers market driven variables including credit related factors and reflects an exit price as defined in ASC Topic 820. Loans held for sale: The carrying amounts of loans held for sale approximate their fair values. Federal Home Loan Bank stock: It is not practical to determine fair value due to restrictions placed on transferability. Federal Reserve Bank stock: It is not practical to determine fair value due to restrictions placed on transferability. Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values. Deposits: The fair values disclosed for demand, NOW, money-market and savings deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate time deposits are estimated using a current market rates offered for remaining or similar maturities. Federal Home Loan Bank advances: Fair values are estimated using discounted cash flow analysis based on the Bank’s current incremental borrowing rates for similar types of borrowing arrangements. Off-balance-sheet instruments: Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. Assets and Liabilities Measured on a Recurring Basis: Assets and liabilities measured at fair value on a recurring basis, are summarized below: There were no securities reclassified into or out of Level 3 during the nine months ended September 30, 2021, or for the year ended December 31, 2020. Fair Value Measurements on September 30, 2021 Using: September 30, 2021 Fair Quoted Prices in Significant Significant Available-for-sale - taxable Small Business Administration loan pools $ 39,703 $ — $ 39,703 $ — Mortgage-backed securities 50,928 — 50,928 — United States agency obligations 2,078 — 2,078 — Corporate bonds 1,509 — 1,509 — Total $ 94,218 $ — $ 94,218 $ — Available-for-sale - tax exempt Community Development District bonds $ 18,364 $ — $ 18,364 $ — Municipals 1,098 — 1,098 — Total $ 19,462 $ — $ 19,462 $ — Equity Mutual funds $ 5,903 $ 5,903 $ — $ — Other equity securities 800 800 — — Total $ 6,703 $ 6,703 $ — $ — Fair Value Measurements on December 31, 2020 Using: December 31, 2020 Fair Quoted Prices in Significant Significant Available-for-sale - taxable Small Business Administration loan pools $ 30,556 $ — $ 30,556 $ — Mortgage-backed securities 28,922 — 28,922 — United States agency obligations 3,122 — 3,122 — Corporate bonds 2,510 — 2,510 — Total $ 65,110 $ — $ 65,110 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,299 $ — $ 21,299 $ — Municipals 1,099 — 1,099 — Total $ 22,398 $ — $ 22,398 $ — Equity Mutual funds $ 6,005 $ 6,005 $ — $ — Total $ 6,005 $ 6,005 $ — $ — on September 30, 2021 Using: September 30, 2021 Fair Quoted Prices in Significant Significant Customer Derivatives - Interest Rate SWAPs Customer Derivatives - Interest Rate SWAPs Asset $ 1,300 $ — $ 1,300 $ — Customer Derivatives - Interest Rate SWAPs Liability (1,300) — (1,300) — Total $ — $ — $ — $ — As of December 31, 2020, the Company did not hold any interest rate SWAPs. Impaired loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available for similar loans and collateral underlying such loans. Such adjustments result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Specifically, regarding the Coex loan, the carrying amount of the loan for impairment purposes was determined based on the note outstanding balance on September 30, 2021, less the non-recourse amount sold to our participant, yielding a carrying value of $0.6 million. The fair value of the collateral was determined based on a review of information obtained from the Assignee related to the collectability of the collateral adjusted for legal and disposition costs. When netted in the same percentage as the non-recourse portion of the loan, the net fair value of collateral was noted as $0.6 million. The net result of these calculations provides for no specific reserve within the Allowance for Loan and Lease Losses (“ALLL”) associated with the Coex loan or approximately 0% of the carrying value of the loan. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements on September 30, 2021 Using: (Dollars in thousands) Total at September 30, Quoted Prices in Active Markets for Significant Significant Total Gains Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 799 — — 799 (669) Construction and land development — — — — — Consumer and other 654 — — 654 (654) Total $ 1,453 $ — $ — $ 1,453 $ (1,323) Fair Value Measurements on December 31, 2020 Using: (Dollars in thousands) Total at December 31, Quoted Prices in Active Markets for Significant Significant Total Gains Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 818 — — 818 (8,309) Construction and land development — — — — — Consumer and other — — — — — Total $ 818 $ — $ — $ 818 $ (8,309) As shown above our impaired loans consist solely of commercial loans considered to be Level 3. These Level 3 loans have significant unobservable inputs such as appraisal adjustments for local market conditions and economic factors that may result in changes in value of an assets over time. The table below presents the approximate carrying amount and estimated fair value of the Company’s financial instruments (in thousands): September 30, 2021 Carrying Fair Fair Value Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 720,407 $ 720,407 Level 1 Federal Funds Sold 23,736 23,736 Level 1 Securities, Available for Sale - taxable 94,739 94,218 Level 2 Securities, Available for Sale - tax exempt 18,854 19,462 Level 2 Securities, Held to Maturity 259 269 Level 2 Securities, Equity 5,903 5,903 Level 1 Securities, Other Equity 800 800 Level 1 Loans, net 1,675,773 1,691,673 Level 3 Loans Held For Sale 284 284 Level 1 Bank Owned Life Insurance 38,204 38,204 Level 2 Accrued Interest Receivable 5,336 5,336 Level 1, 2 & 3 Customer Derivatives - Interest Rate SWAPs 1,300 1,300 Level 2 Financial Liabilities: Deposits 2,354,746 2,325,899 Level 2 Federal Home Loan Bank Advances 35,000 33,809 Level 2 Subordinated Debt 10,016 10,016 Level 2 Customer Derivatives - Interest Rate SWAPs 1,300 1,300 Level 2 Accrued Interest Payable 266 266 Level 2 December 31, 2020 Carrying Fair Fair Value Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 191,597 $ 191,597 Level 1 Federal Funds Sold 25,375 25,375 Level 1 Securities, Available for Sale - taxable 65,110 65,110 Level 2 Securities, Available for Sale - tax exempt 22,398 22,398 Level 2 Securities, Held to Maturity 1,547 1,561 Level 2 Securities, Equity 6,005 6,005 Level 1 Loans, net 1,641,422 1,653,401 Level 3 Loans Held For Sale 1,270 1,270 Level 1 Bank Owned Life Insurance 37,360 37,360 Level 2 Accrued Interest Receivable 6,666 6,666 Level 1, 2 & 3 Financial Liabilities: Deposits 1,659,543 1,693,331 Level 2 Federal Home Loan Bank Advances 40,000 37,927 Level 2 Subordinated Debt 10,153 10,153 Level 2 PPPLF Advances 101,358 101,519 Level 2 Loan Participations 13,215 13,215 Level 2 Accrued Interest Payable 546 546 Level 2 |
CUSTOMER DERIVATIVES - INTEREST
CUSTOMER DERIVATIVES - INTEREST RATE SWAPS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
CUSTOMER DERIVATIVES - INTEREST RATE SWAPS | CUSTOMER DERIVATIVES — INTEREST RATE SWAPS During the first quarter of 2021, the Company established a program whereby it originates a variable rate loan and enters into a variable-to-fixed interest rate SWAP with the customer. The Company also enters into an offsetting SWAP with a SWAP dealer. These back-to-back SWAP agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The SWAPs with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging , and are marked to market through earnings. As the SWAPs are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurement and Disclosure (“ASC 820” |
LOAN COMMITMENTS AND OTHER RELA
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk on September 30, 2021, and December 31, 2020, were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Unfunded lines of credit $ 368,117 $ 356,955 Commitments to extend credit 97,251 40,629 Letters of credit 11,308 13,036 Total credit extension commitments $ 476,676 $ 410,620 |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for United States banks (Basel III rules) became effective for the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, the Bank must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for September 30, 2021, is 2.50% and for December 31, 2020, was 2.50% The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of September 30, 2021, the Bank met all capital adequacy requirements to which it was subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. On September 30, 2021, and December 31, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Based on changes to the Federal Reserve’s definition of a “Small Bank Holding Company” that increased the threshold to $3 billion in assets in August 2018, the Company is not currently subject to separate minimum capital measurements. At such time as the Company reaches the $3 billion asset level, it will again be subject to capital measurements independent of the Bank. For comparison purposes, the Company’s ratios are included in following discussion as well, all of which would have exceeded the “well-capitalized” level had the Company been subject to separate capital minimums. Actual and required capital amounts and ratios are presented below on September 30, 2021, and December 31, 2020. The required amounts for capital adequacy shown below do not include the capital conservation buffer previously discussed. Actual Minimum for capital adequacy Minimum to be well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2021 Total capital ratio Bank $ 206,776 12.9% $ 127,860 8.0% $ 159,824 10.0% Company 224,537 14.0% 127,860 8.0% N/A N/A Tier 1 capital ratio Bank 194,377 12.2% 95,895 6.0% 127,860 8.0% Company 202,122 12.6% 95,895 6.0% N/A N/A Tier1 leverage ratio Bank 194,377 7.7% 101,353 4.0% 126,691 5.0% Company 202,122 8.0% 101,353 4.0% N/A N/A Common equity tier 1 capital ratio Bank 194,377 12.2% 71,921 4.5% 103,886 6.5% Company 202,122 12.6% 71,921 4.5% N/A N/A Actual Minimum for capital adequacy Minimum to be well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital ratio Bank $ 176,633 12.0% $ 117,298 8.0% $ 146,623 10.0% Company 215,977 14.7% 117,298 8.0% N/A N/A Tier 1 capital ratio Bank 159,448 10.9% 87,974 6.0% 117,298 8.0% Company 188,639 12.9% 87,974 6.0% N/A N/A Tier1 leverage ratio Bank 159,448 8.4% 75,723 4.0% 94,654 5.0% Company 188,639 10.0% 75,723 4.0% N/A N/A Common equity tier 1 capital ratio Bank 159,448 10.9% 65,980 4.5% 95,305 6.5% Company 188,639 12.9% 65,980 4.5% N/A N/A |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Restricted Stock An award of restricted stock involves the immediate transfer by the Company to the participant of a specific number of shares of our Class A voting common stock, which are subject to a risk of forfeiture and a restriction on transferability. This restriction will lapse following a stated period of time. The participant does not pay for the restricted stock and has all of the rights of a holder of a share of our Class A voting common stock (except for the restriction on transferability), including the right to vote and receive dividends unless otherwise determined by the Compensation Committee and set forth in the award agreement. The Company initially limited the aggregate number of shares of our Class A voting common stock to be awarded under the 2019 Equity Incentive Plan (the "2019 Plan") as restricted stock to 682,955 shares. However, the 2019 Plan provides for the automatic increase (but not decrease) on the first day of each fiscal year. Thus, for 2021 the total share reserve is 682,955. The Company has 227,590 shares of restricted stock outstanding, at a weighted average exercise price of $16.87, to employees and directors under the 2019 Equity Incentive Plan as of September 30, 2021, for which the Company did not receive, nor will it receive, any monetary consideration. Therefore, there were 455,365 restricted shares available to be issued on September 30, 2021. As of September 30, 2021, there was approximately $2.7 million in unrecognized compensation expense in regard to restricted stock that will be recognized over a three-year period. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Operating leases in which the Company is the lessee are recorded as right-of-use (“ROU”) assets and operating lease liabilities, including premises and equipment and other liabilities, respectively on the Consolidated Balance Sheets. Currently the Company does not have any lessor leases (formerly known as capital leases) to report on its financials. The Company’s ROU assets are classified under premises and equipment other liabilities The majority of the Company’s lessee leases are operating leases and consist of leased real estate for branches and operations centers. The Company elected the short term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. The ROU assets represent the Company’s right to use the underlying assets during the lease term and operating liabilities represent the obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Variable payments generally consist of common area maintenance and taxes. Rent escalations are generally specified by a payment schedule or are subject to a defined formula. The Company also does not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. Lease cost for the three and nine months ended September 30, 2021, and 2020 consists of: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Operating Lease and Interest Cost $ 335 $ 507 $ 1,128 $ 1,264 Variable Lease Cost 106 120 305 369 Total Lease Cost $ 441 $ 627 $ 1,433 $ 1,633 The following table provides supplemental information related to leases for the three and nine months ended September 30, 2021, and 2020: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Operating Lease - Operating Cash Flows (Fixed Payments) $ 335 $ 508 $ 1,129 $ 1,264 Operating Lease - Operating Cash Flows (Liability Reduction) $ 123 $ 612 $ 1,044 $ 1,281 New ROU Assets - Operating Leases $ 165 $ 60 $ 165 $ 1,680 Weighted Average Lease Term (Years) - Operating Leases 5.01 5.85 Weighted Average Discount Rate - Operating Leases 3.13 % 3.05 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of September 30, 2021, is as follows: September 30, 2021 Operating lease payments due: Within one year $ 1,443 After one but within two years 1,426 After two but within three years 1,212 After three but within four years 1,097 After four years but within five years 766 After five years 620 Total undiscounted cash flows 6,564 Discount on cash flows (1,107) Total operating lease liabilities $ 5,457 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSRedemption of Subordinated DebtOn October 30 2021, the Company redeemed in full, the amount of its subordinated notes payable of $10.0 million, in accordance with its contractual terms. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited consolidated financial statements of Professional Holding Corp. and its subsidiary, Professional Bank (the “Bank” and collectively with Professional Holding Corp., the “Company”), have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the nine months ended September 30, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any other period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | Use of Estimates: The preparation of these financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Adoption of new accounting standards | Adoption of new accounting standards: ASU 2019-12, Income Taxes (Topic 740) In December 2019, FASB issued guidance which simplifies the accounting for income taxes by removing multiple exceptions to the general principals in Topic 740. The standard is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. ASU 2020-04, Reference Rate Reform (Topic 848) In March 2020, FASB issued guidance which provides optional guidance to ease the accounting burden in accounting for, or recognizing the effects from, reference rate reform on financial reporting. The new standard is a result of the London Interbank Offered Rate ("LIBOR") likely being discontinued as an available benchmark rate. The standard is elective and provides optional expedients and exceptions for applying U.S. Generally Accepted Accounting Principles (“GAAP”) to contracts, hedging relationships, or other transactions that reference LIBOR, or another reference rate expected to be discontinued. The amendments in the update are effective for all entities between March 12, 2020, and December 31, 2022. The Company has established a cross-functional working group to guide the Company’s transition from LIBOR and has begun efforts to transition to alternative rates consistent with industry timelines. The Company has identified its products that utilize LIBOR and has implemented enhanced fallback language to facilitate the transition to alternative reference rates. The new guidance did not materially impact the Company’s Consolidated Financial Statements or disclosures. New accounting standards that have not yet been adopted: The following provides a brief description of accounting standards that have been issued but are not yet adopted that could have a material effect on the Company’s financial statements: ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) Description In June 2016, FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss ("CECL") model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held to maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (i.e. loan commitments, standby letters of credit, financial guarantees and other similar instruments). Date of Adoption For PBEs that are non-SEC filers and for SEC filers that are considered small reporting companies, it is effective for January 1, 2023. Early adoption is still permitted. Effect on the Consolidated Financial Statements The Company's management is in the process of evaluating credit loss estimation models. Updates to business processes and the documentation of accounting policy decisions are ongoing. The company may recognize an increase in the allowance for credit losses upon adoption, recorded as a one-time cumulative adjustment to retained earnings. However, the magnitude of the impact on the Company's consolidated financial statements has not yet been determined. The Company will adopt this accounting standard effective January 1, 2023. |
Fair Value | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. Securities available for sale: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations, corporate bonds, municipal bonds and U.S. agency notes. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 might include certain residual interests in securitizations and other less liquid securities. As of September 30, 2021, and December 31, 2020, all securities available for sale were Level 2. Securities held-to-maturity: Reported at fair value utilizing Level 2 inputs. The estimated fair value is determined based on market quotes when available. If not available, quoted market prices of similar securities, discounted cash flow analysis, pricing models and observable market data are used in determining fair market value. Equity securities: The Company values equity securities at readily determinable market values based on the closing price at the end of each period. Changes in fair value are recognized through net income. Loans: Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type, such as commercial or residential mortgage. Each loan category is further segmented into fixed and adjustable rate interest terms as well as performing and non-performing categories. The fair value of loans is calculated by discounting scheduled cash flows through the estimated life including prepayment considerations and estimated market discount rates that reflect the risks inherent to the loan. The calculation of the fair value considers market driven variables including credit related factors and reflects an exit price as defined in ASC Topic 820. Loans held for sale: The carrying amounts of loans held for sale approximate their fair values. Federal Home Loan Bank stock: It is not practical to determine fair value due to restrictions placed on transferability. Federal Reserve Bank stock: It is not practical to determine fair value due to restrictions placed on transferability. Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values. Deposits: The fair values disclosed for demand, NOW, money-market and savings deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate time deposits are estimated using a current market rates offered for remaining or similar maturities. Federal Home Loan Bank advances: Fair values are estimated using discounted cash flow analysis based on the Bank’s current incremental borrowing rates for similar types of borrowing arrangements. Off-balance-sheet instruments: Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per share | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Basic earnings per share: Net income $ 6,288 $ 950 $ 17,404 $ 2,764 Total weighted average common stock outstanding 13,196,025 13,438,652 13,344,470 11,694,764 Net income per share $ 0.48 $ 0.07 $ 1.30 $ 0.24 Diluted earnings per share: Net income $ 6,288 $ 950 $ 17,404 $ 2,764 Total weighted average common stock outstanding 13,196,025 13,438,652 13,344,470 11,694,764 Add: Dilutive effect of employee stock options 659,402 1,117,563 568,613 1,290,819 Total weighted average diluted stock outstanding 13,855,427 14,556,215 13,913,083 12,985,583 Net income per share $ 0.45 $ 0.07 $ 1.25 $ 0.21 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Debt Securities Available for Sale | The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity on September 30, 2021, and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: September 30, 2021 Amortized Gross Gross Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 40,131 $ 62 $ (490) $ 39,703 Mortgage-backed securities 51,105 162 (340) 50,927 United States agency obligations 2,002 77 — 2,079 Corporate bonds 1,500 9 — 1,509 Total available-for-sale - taxable $ 94,738 $ 310 $ (830) $ 94,218 Available-for-sale - tax exempt Community Development District bonds $ 17,800 $ 564 $ — $ 18,364 Municipals 1,054 44 — 1,098 Total available-for-sale - tax exempt $ 18,854 $ 608 $ — $ 19,462 Amortized Gross Gross Fair Value Held-to-Maturity Mortgage-backed securities $ 259 $ 10 $ — $ 269 Total Held-to-Maturity $ 259 $ 10 $ — $ 269 Amortized Gross Gross Fair Value Equity Mutual Funds $ 5,903 $ — $ — $ 5,903 Other equity securities 800 — — 800 Total Equity $ 6,703 $ — $ — $ 6,703 December 31, 2020 Amortized Gross Gross Fair Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 — 3,122 Corporate bonds 2,501 9 — 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ — $ 21,299 Municipals 1,064 35 — 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ — $ 22,398 Amortized Gross Gross Fair Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561 |
Summary of Debt Securities Held to Maturity | The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity on September 30, 2021, and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss and gross unrecognized gains and losses: September 30, 2021 Amortized Gross Gross Fair Value Available-for-sale - taxable Small Business Administration loan pools $ 40,131 $ 62 $ (490) $ 39,703 Mortgage-backed securities 51,105 162 (340) 50,927 United States agency obligations 2,002 77 — 2,079 Corporate bonds 1,500 9 — 1,509 Total available-for-sale - taxable $ 94,738 $ 310 $ (830) $ 94,218 Available-for-sale - tax exempt Community Development District bonds $ 17,800 $ 564 $ — $ 18,364 Municipals 1,054 44 — 1,098 Total available-for-sale - tax exempt $ 18,854 $ 608 $ — $ 19,462 Amortized Gross Gross Fair Value Held-to-Maturity Mortgage-backed securities $ 259 $ 10 $ — $ 269 Total Held-to-Maturity $ 259 $ 10 $ — $ 269 Amortized Gross Gross Fair Value Equity Mutual Funds $ 5,903 $ — $ — $ 5,903 Other equity securities 800 — — 800 Total Equity $ 6,703 $ — $ — $ 6,703 December 31, 2020 Amortized Gross Gross Fair Available-for-sale - taxable Small Business Administration loan pools $ 30,678 $ 77 $ (199) $ 30,556 Mortgage-backed securities 28,514 438 (30) 28,922 United States agency obligations 3,000 122 — 3,122 Corporate bonds 2,501 9 — 2,510 Total available-for-sale - taxable $ 64,693 $ 646 $ (229) $ 65,110 Available-for-sale - tax exempt Community Development District bonds $ 20,582 $ 717 $ — $ 21,299 Municipals 1,064 35 — 1,099 Total available-for-sale - tax exempt $ 21,646 $ 752 $ — $ 22,398 Amortized Gross Gross Fair Held-to-Maturity Mortgage-backed securities $ 345 $ 14 $ — $ 359 United States Treasury 202 — — 202 Foreign Bonds 1,000 — — 1,000 Total Held-to-Maturity $ 1,547 $ 14 $ — $ 1,561 |
Schedule of Maturities of Securities | The scheduled maturities of securities as of September 30, 2021, are as follows: September 30, 2021 Amortized Fair Available-for-sale Due in one year or less $ 1,188 $ 1,202 Due after one year through five years 20,853 21,523 Due after five years through ten years 315 325 Due after ten years — — Subtotal $ 22,356 $ 23,050 Small Business Administration loan pools $ 40,131 $ 39,703 Mortgage-backed securities 51,105 50,927 Total available-for-sale $ 113,592 $ 113,680 Mortgage-backed securities $ 259 $ 269 Total held-to-maturity $ 259 $ 269 |
Summary of Fair Value of Debt Securities | The tables below indicate the fair value of debt securities with unrealized losses and for the period of time of which these losses were outstanding on September 30, 2021, and December 31, 2020, respectively, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Available-for-sale - taxable Small Business Administration loan pools $ 14,640 $ (359) $ 16,127 $ (131) $ 30,767 $ (490) Mortgage-backed securities 33,019 (340) — — 33,019 (340) Total available-for-sale - taxable $ 47,659 $ (699) $ 16,127 $ (131) $ 63,786 $ (830) December 31, 2020 Available-for-sale - taxable Small Business Administration loan pools $ 18,849 $ (133) $ 8,945 $ (66) $ 27,794 $ (199) Mortgage-backed securities 5,839 — 2,510 (30) 8,349 (30) United States agency obligations 227 — — — 227 — Total available-for-sale - taxable $ 24,915 $ (133) $ 11,455 $ (96) $ 36,370 $ (229) |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Summary of Loans | Loans on September 30, 2021, and December 31, 2020, were as follows: September 30, 2021 December 31, 2020 Loans held for investment: Commercial real estate $ 856,194 $ 777,025 Residential real estate 371,469 379,534 Commercial (Non-PPP) 288,177 206,095 Commercial (PPP) 85,133 185,748 Construction and land development 69,534 99,590 Consumer and other 16,744 9,689 Total loans held for investment, gross 1,687,251 1,657,681 Allowance for loan loss (11,478) (16,259) Loans held for investment, net $ 1,675,773 $ 1,641,422 Loans held for sale: Loans held for sale $ 284 $ 1,270 Total loans held for sale $ 284 $ 1,270 |
Summary of the Aging of Past Due Loans | 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: 30 – 59 60 – 89 Greater than Nonaccrual Total Loans Not Total September 30, 2021 Commercial real estate $ — $ — $ — $ — $ — $ 856,194 $ 856,194 Residential real estate 22 — — — 22 371,447 371,469 Commercial (Non-PPP) 369 — — 1,468 1,837 286,340 288,177 Commercial (PPP) — — — — — 85,133 85,133 Construction and land development — — — — — 69,534 69,534 Consumer and other 88 — — 1,307 1,395 15,349 16,744 Total $ 479 $ — $ — $ 2,775 $ 3,254 $ 1,683,997 $ 1,687,251 30 – 59 60 – 89 Greater than Nonaccrual Total Loans Not Total December 31, 2020 Commercial real estate $ — $ — $ — $ — $ — $ 777,025 $ 777,025 Residential real estate 1,317 — — — 1,317 378,217 379,534 Commercial (Non-PPP) 278 — — 9,127 278 205,817 206,095 Commercial (PPP) — — — — — 185,748 185,748 Construction and land development — — — — — 99,590 99,590 Consumer and other — — — 1,307 — 9,689 9,689 Total $ 1,595 $ — $ — $ 10,434 $ 1,595 $ 1,656,086 $ 1,657,681 |
Summary of Risk Category of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total September 30, 2021 Commercial real estate $ 853,888 $ — $ 2,306 $ — $ 856,194 Residential real estate 371,469 — — — 371,469 Commercial (Non-PPP) 286,334 375 1,468 — 288,177 Commercial (PPP) 85,133 — — — 85,133 Construction and land development 69,534 — — — 69,534 Consumer 15,349 88 1,307 — 16,744 Total $ 1,681,707 $ 463 $ 5,081 $ — $ 1,687,251 December 31, 2020 Commercial real estate $ 774,674 $ — $ 2,351 $ — $ 777,025 Residential real estate 379,104 430 — — 379,534 Commercial (Non-PPP) 196,856 112 9,127 — 206,095 Commercial (PPP) 185,748 — — — 185,748 Construction and land development 99,590 — — — 99,590 Consumer 8,382 — 1,307 — 9,689 Total $ 1,644,354 $ 542 $ 12,785 $ — $ 1,657,681 |
Summary of Purchased Credit Impaired Loans | The carrying amount of those loans is as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Commercial real estate (1) $ 5,869 $ — Residential real estate 451 405 Commercial 556 746 Construction and development (1) — 3,732 Carrying amount, net of total discounts $ 6,876 $ 4,883 _________________________________________________________________ (1) During the three months ended September 30, 2021, construction was completed on a construction loan and recategorized as a non-owner occupied commercial real estate loan. |
Summary of Changes in Carrying Amount of Accretable Yield | Changes in the carrying amount of the accretable yield for all purchased credit impaired loans were as follows for the nine months ended September 30, 2021: (Dollars in thousands) 2021 Balance at beginning of period $ (630) Adjustment of income — Accretion 296 Reclassifications from nonaccretable difference (136) Disposals 16 Balance at end of period $ (454) |
Summary of Fair Value of PCI Loans | PCI loans purchased on March 26, 2020, for which it was probable at acquisition that all contractually required payments would not be collected are as follows: (Dollars in thousands) March 26, 2020 Contractually required principal and interest by loan type Commercial real estate $ 427 Residential real estate 604 Commercial 2,176 Construction and development 5,614 Consumer and other loans — Total $ 8,821 Contractual cash flows not expected to be collected (nonaccretable discount) Commercial real estate $ 80 Residential real estate 138 Commercial 1,123 Construction and development 2,297 Consumer and other loans — Total $ 3,638 Expected cash flows $ 5,183 Interest component of expected cash flows (accretable discount) (545) Fair value of PCI loans accounted for under ASC 310-30 $ 4,638 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financing Receivable, before Allowance for Credit Loss [Abstract] | |
Schedule of Allowance for Loan Losses by Portfolio Segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method for the nine months ended September 30, 2021, and the year ended December 31, 2020: Commercial Residential Commercial Construction and Land Development Consumer Total September 30, 2021 Allowance for loan losses: Beginning balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Provision for loan losses 920 45 1,276 (55) 674 2,860 Loans charged-off — — (7,641) — — (7,641) Recoveries — — — — — — Total ending allowance balance $ 4,079 $ 2,222 $ 4,097 $ 333 $ 747 $ 11,478 Commercial Residential Commercial Construction Consumer Total December 31, 2020 Allowance for loan losses: Beginning balance $ 1,845 $ 3,115 $ 1,235 $ 272 $ 81 $ 6,548 Provision for loan losses 1,314 (731) 9,326 116 (8) 10,017 Loans charged-off — (207) (99) — — (306) Recoveries — — — — — — Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 |
Summary of Loans by Portfolio Segment and Impairment Method | Commercial Residential Commercial Construction Consumer Total September 30, 2021 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 669 $ — $ 653 $ 1,322 Purchased Credit Impaired (PCI) loans — — — — — — Collectively evaluated for impairment 4,079 2,222 3,428 333 94 10,156 Total ending allowance balance $ 4,079 $ 2,222 $ 4,097 $ 333 $ 747 $ 11,478 Loans: Loans individually evaluated for impairment $ 2,306 $ 227 $ 1,468 $ — $ 1,307 $ 5,308 Loans collectively evaluated for impairment 853,888 371,242 371,842 69,534 15,437 1,681,943 Total ending loans balance $ 856,194 $ 371,469 $ 373,310 $ 69,534 $ 16,744 $ 1,687,251 December 31, 2020 Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ — $ — $ 8,309 $ — $ — $ 8,309 Purchased Credit Impaired (PCI) loans — — — — — Collectively evaluated for impairment 3,159 2,177 2,153 388 73 7,950 Total ending allowance balance $ 3,159 $ 2,177 $ 10,462 $ 388 $ 73 $ 16,259 Loans: Loans individually evaluated for impairment $ 2,351 $ 299 $ 9,127 $ — $ 1,307 $ 13,084 Loans collectively evaluated for impairment 774,674 379,235 382,716 99,590 8,382 1,644,597 Total ending loans balance $ 777,025 $ 379,534 $ 391,843 $ 99,590 $ 9,689 $ 1,657,681 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposits [Abstract] | |
Schedule of Deposits | The Company’s total deposits are comprised of the following at the dates indicated: For the Nine Months Ended For the Year Ended December 31, 2020 (Dollars in thousands) Ending % of Total Ending % of Total NOW accounts $ 328,667 14.0% $ 232,367 14.0% Money market accounts 893,441 37.9% 679,761 41.0% Brokered deposits 56,418 2.4% 30,137 1.8% Savings accounts 13,833 0.6% 9,727 0.6% Certificates of deposit 262,998 11.2% 231,953 14.0% Total interest-bearing deposits 1,555,357 66.1% 1,183,945 71.3% Noninterest-bearing deposits 799,389 33.9% 475,598 28.7% Total deposits $ 2,354,746 100.0% $ 1,659,543 100.0% _______________________________________________ (1) Balance Sheet does not illustrate brokered deposits as presented above . |
Schedule of Maturities of Our Time Deposits that Meet or Exceed the $250,000 FDIC Insurance Limit | The following table presents the maturities of our time deposits including time deposits that meet or exceed the $250,000 FDIC insurance limit as of September 30, 2021. (Dollars in thousands) Three Over Over Six Over Total Time deposits of $250,000 or less $ 13,123 $ 18,043 $ 57,678 $ 6,444 $ 95,288 Time deposits of more than $250,000 25,539 30,762 111,204 4,831 172,336 Total $ 38,662 $ 48,805 $ 168,882 $ 11,275 $ 267,624 The following tables present the maturities of our time deposits including time deposits that meet or exceed the $250,000 FDIC insurance limit as of December 31, 2020. (Dollars in thousands) Three Over Over Six Over Total Time deposits of $250,000 or less $ 20,767 $ 13,258 $ 24,805 $ 19,240 $ 78,070 Time deposits of more than $250,000 40,189 35,314 42,845 40,157 158,505 Total $ 60,956 $ 48,572 $ 67,650 $ 59,397 $ 236,575 |
Scheduled Maturities of Time Deposits | For time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years at the dates indicated. September 30, 2021 December 31, 2020 Less than 1 year $ 256,349 $ 177,178 Over 1 through 2 years 10,153 57,034 Over 2 through 3 years 1,082 1,658 Over 3 through 4 years 40 705 Over 4 through 5 years — — Over 5 years — — Total $ 267,624 $ 236,575 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Advances from the Federal Home Loan Bank | The following table sets forth certain information on our FHLB borrowings during the periods presented. (Dollars in thousands) Nine Months Ended Year Ended December 31, 2020 Amount outstanding at period-end $ 35,000 $ 40,000 Weighted average interest rate at period-end 2.04% 1.96% Maximum month-end balance during period $ 40,000 $ 70,000 Average balance outstanding during period 37,564 58,210 Weighted average interest rate during period 2.00% 1.63% |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | Fair Value Measurements on September 30, 2021 Using: September 30, 2021 Fair Quoted Prices in Significant Significant Available-for-sale - taxable Small Business Administration loan pools $ 39,703 $ — $ 39,703 $ — Mortgage-backed securities 50,928 — 50,928 — United States agency obligations 2,078 — 2,078 — Corporate bonds 1,509 — 1,509 — Total $ 94,218 $ — $ 94,218 $ — Available-for-sale - tax exempt Community Development District bonds $ 18,364 $ — $ 18,364 $ — Municipals 1,098 — 1,098 — Total $ 19,462 $ — $ 19,462 $ — Equity Mutual funds $ 5,903 $ 5,903 $ — $ — Other equity securities 800 800 — — Total $ 6,703 $ 6,703 $ — $ — Fair Value Measurements on December 31, 2020 Using: December 31, 2020 Fair Quoted Prices in Significant Significant Available-for-sale - taxable Small Business Administration loan pools $ 30,556 $ — $ 30,556 $ — Mortgage-backed securities 28,922 — 28,922 — United States agency obligations 3,122 — 3,122 — Corporate bonds 2,510 — 2,510 — Total $ 65,110 $ — $ 65,110 $ — Available-for-sale - tax exempt Community Development District bonds $ 21,299 $ — $ 21,299 $ — Municipals 1,099 — 1,099 — Total $ 22,398 $ — $ 22,398 $ — Equity Mutual funds $ 6,005 $ 6,005 $ — $ — Total $ 6,005 $ 6,005 $ — $ — |
Schedule of Customer Derivatives - Interest Rate SWAP | on September 30, 2021 Using: September 30, 2021 Fair Quoted Prices in Significant Significant Customer Derivatives - Interest Rate SWAPs Customer Derivatives - Interest Rate SWAPs Asset $ 1,300 $ — $ 1,300 $ — Customer Derivatives - Interest Rate SWAPs Liability (1,300) — (1,300) — Total $ — $ — $ — $ — |
Schedule of Assets Measured at Fair Value on a Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements on September 30, 2021 Using: (Dollars in thousands) Total at September 30, Quoted Prices in Active Markets for Significant Significant Total Gains Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 799 — — 799 (669) Construction and land development — — — — — Consumer and other 654 — — 654 (654) Total $ 1,453 $ — $ — $ 1,453 $ (1,323) Fair Value Measurements on December 31, 2020 Using: (Dollars in thousands) Total at December 31, Quoted Prices in Active Markets for Significant Significant Total Gains Impaired Loans: Commercial real estate $ — $ — $ — $ — $ — Residential real estate — — — — — Commercial 818 — — 818 (8,309) Construction and land development — — — — — Consumer and other — — — — — Total $ 818 $ — $ — $ 818 $ (8,309) |
Schedule of Carrying Amount and Estimated Fair Value of the Bank's Financial Instruments | The table below presents the approximate carrying amount and estimated fair value of the Company’s financial instruments (in thousands): September 30, 2021 Carrying Fair Fair Value Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 720,407 $ 720,407 Level 1 Federal Funds Sold 23,736 23,736 Level 1 Securities, Available for Sale - taxable 94,739 94,218 Level 2 Securities, Available for Sale - tax exempt 18,854 19,462 Level 2 Securities, Held to Maturity 259 269 Level 2 Securities, Equity 5,903 5,903 Level 1 Securities, Other Equity 800 800 Level 1 Loans, net 1,675,773 1,691,673 Level 3 Loans Held For Sale 284 284 Level 1 Bank Owned Life Insurance 38,204 38,204 Level 2 Accrued Interest Receivable 5,336 5,336 Level 1, 2 & 3 Customer Derivatives - Interest Rate SWAPs 1,300 1,300 Level 2 Financial Liabilities: Deposits 2,354,746 2,325,899 Level 2 Federal Home Loan Bank Advances 35,000 33,809 Level 2 Subordinated Debt 10,016 10,016 Level 2 Customer Derivatives - Interest Rate SWAPs 1,300 1,300 Level 2 Accrued Interest Payable 266 266 Level 2 December 31, 2020 Carrying Fair Fair Value Financial Assets: Cash & Due from Banks, including interest bearing deposits $ 191,597 $ 191,597 Level 1 Federal Funds Sold 25,375 25,375 Level 1 Securities, Available for Sale - taxable 65,110 65,110 Level 2 Securities, Available for Sale - tax exempt 22,398 22,398 Level 2 Securities, Held to Maturity 1,547 1,561 Level 2 Securities, Equity 6,005 6,005 Level 1 Loans, net 1,641,422 1,653,401 Level 3 Loans Held For Sale 1,270 1,270 Level 1 Bank Owned Life Insurance 37,360 37,360 Level 2 Accrued Interest Receivable 6,666 6,666 Level 1, 2 & 3 Financial Liabilities: Deposits 1,659,543 1,693,331 Level 2 Federal Home Loan Bank Advances 40,000 37,927 Level 2 Subordinated Debt 10,153 10,153 Level 2 PPPLF Advances 101,358 101,519 Level 2 Loan Participations 13,215 13,215 Level 2 Accrued Interest Payable 546 546 Level 2 |
LOAN COMMITMENTS AND OTHER RE_2
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Schedule of Contractual Amounts of Financial Instruments With Off-Balance-Sheet Risk | The contractual amounts of financial instruments with off-balance-sheet risk on September 30, 2021, and December 31, 2020, were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Unfunded lines of credit $ 368,117 $ 356,955 Commitments to extend credit 97,251 40,629 Letters of credit 11,308 13,036 Total credit extension commitments $ 476,676 $ 410,620 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of compliance with regulatory capital requirements | The required amounts for capital adequacy shown below do not include the capital conservation buffer previously discussed. Actual Minimum for capital adequacy Minimum to be well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2021 Total capital ratio Bank $ 206,776 12.9% $ 127,860 8.0% $ 159,824 10.0% Company 224,537 14.0% 127,860 8.0% N/A N/A Tier 1 capital ratio Bank 194,377 12.2% 95,895 6.0% 127,860 8.0% Company 202,122 12.6% 95,895 6.0% N/A N/A Tier1 leverage ratio Bank 194,377 7.7% 101,353 4.0% 126,691 5.0% Company 202,122 8.0% 101,353 4.0% N/A N/A Common equity tier 1 capital ratio Bank 194,377 12.2% 71,921 4.5% 103,886 6.5% Company 202,122 12.6% 71,921 4.5% N/A N/A Actual Minimum for capital adequacy Minimum to be well (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total capital ratio Bank $ 176,633 12.0% $ 117,298 8.0% $ 146,623 10.0% Company 215,977 14.7% 117,298 8.0% N/A N/A Tier 1 capital ratio Bank 159,448 10.9% 87,974 6.0% 117,298 8.0% Company 188,639 12.9% 87,974 6.0% N/A N/A Tier1 leverage ratio Bank 159,448 8.4% 75,723 4.0% 94,654 5.0% Company 188,639 10.0% 75,723 4.0% N/A N/A Common equity tier 1 capital ratio Bank 159,448 10.9% 65,980 4.5% 95,305 6.5% Company 188,639 12.9% 65,980 4.5% N/A N/A |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | Lease cost for the three and nine months ended September 30, 2021, and 2020 consists of: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Operating Lease and Interest Cost $ 335 $ 507 $ 1,128 $ 1,264 Variable Lease Cost 106 120 305 369 Total Lease Cost $ 441 $ 627 $ 1,433 $ 1,633 |
Schedule of Supplemental Information Related to Leases | The following table provides supplemental information related to leases for the three and nine months ended September 30, 2021, and 2020: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Operating Lease - Operating Cash Flows (Fixed Payments) $ 335 $ 508 $ 1,129 $ 1,264 Operating Lease - Operating Cash Flows (Liability Reduction) $ 123 $ 612 $ 1,044 $ 1,281 New ROU Assets - Operating Leases $ 165 $ 60 $ 165 $ 1,680 Weighted Average Lease Term (Years) - Operating Leases 5.01 5.85 Weighted Average Discount Rate - Operating Leases 3.13 % 3.05 % |
Schedule of Maturity Analysis of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities as of September 30, 2021, is as follows: September 30, 2021 Operating lease payments due: Within one year $ 1,443 After one but within two years 1,426 After two but within three years 1,212 After three but within four years 1,097 After four years but within five years 766 After five years 620 Total undiscounted cash flows 6,564 Discount on cash flows (1,107) Total operating lease liabilities $ 5,457 |
EARNINGS PER SHARE (Details)
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 | |
Basic earnings per share: | ||||
Net income | $ 6,288 | $ 950 | $ 17,404 | $ 2,764 |
Total weighted average common stock outstanding (in shares) | 13,196,025 | 13,438,652 | 13,344,470 | 11,694,764 |
Net income per share (in dollars per share) | $ 0.48 | $ 0.07 | $ 1.30 | $ 0.24 |
Diluted earnings per share: | ||||
Net income | $ 6,288 | $ 950 | $ 17,404 | $ 2,764 |
Total weighted average common stock outstanding (in shares) | 13,196,025 | 13,438,652 | 13,344,470 | 11,694,764 |
Add: Dilutive effect of employee stock options (in shares) | 659,402 | 1,117,563 | 568,613 | 1,290,819 |
Total weighted average diluted stock outstanding (in shares) | 13,855,427 | 14,556,215 | 13,913,083 | 12,985,583 |
Net income per share (in dollars per share) | $ 0.45 | $ 0.07 | $ 1.25 | $ 0.21 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded (in shares) | 7,000 | 326 | 278 | 133 |
SECURITIES - Summary of Debt Se
SECURITIES - Summary of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 113,592 | |
Gross Unrealized Losses | (1,200) | |
Fair Value | 113,680 | |
Available-for-sale - taxable | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94,738 | $ 64,693 |
Gross Unrealized Gains | 310 | 646 |
Gross Unrealized Losses | (830) | (229) |
Fair Value | 94,218 | 65,110 |
Small Business Administration loan pools | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 40,131 | 30,678 |
Gross Unrealized Gains | 62 | 77 |
Gross Unrealized Losses | (490) | (199) |
Fair Value | 39,703 | 30,556 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 51,105 | 28,514 |
Gross Unrealized Gains | 162 | 438 |
Gross Unrealized Losses | (340) | (30) |
Fair Value | 50,927 | 28,922 |
United States agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,002 | 3,000 |
Gross Unrealized Gains | 77 | 122 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,079 | 3,122 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,500 | 2,501 |
Gross Unrealized Gains | 9 | 9 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,509 | 2,510 |
Available-for-sale - tax exempt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,854 | 21,646 |
Gross Unrealized Gains | 608 | 752 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 19,462 | 22,398 |
Community Development District bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,800 | 20,582 |
Gross Unrealized Gains | 564 | 717 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18,364 | 21,299 |
Municipals | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,054 | 1,064 |
Gross Unrealized Gains | 44 | 35 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1,098 | $ 1,099 |
SECURITIES - Summary of Debt _2
SECURITIES - Summary of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 259 | $ 1,547 |
Gross Unrecognized Gains | 10 | 14 |
Gross Unrecognized Losses | 0 | 0 |
Fair Value | 269 | 1,561 |
Mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 259 | 345 |
Gross Unrecognized Gains | 10 | 14 |
Gross Unrecognized Losses | 0 | 0 |
Fair Value | $ 269 | 359 |
United States Treasury | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 202 | |
Gross Unrecognized Gains | 0 | |
Gross Unrecognized Losses | 0 | |
Fair Value | 202 | |
Foreign Bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,000 | |
Gross Unrecognized Gains | 0 | |
Gross Unrecognized Losses | 0 | |
Fair Value | $ 1,000 |
SECURITIES - Summary of Equity
SECURITIES - Summary of Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,703 | |
Equity securities | 6,703 | $ 6,005 |
Mutual Funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,903 | |
Equity securities | 5,903 | |
Other equity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 800 | |
Equity securities | $ 800 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Investments, Debt and Equity Securities [Abstract] | ||||
Increase in available for sale securities | $ 25,600,000 | |||
Increase in net investment portfolio | 50,900,000 | |||
Decrease from pay downs, maturities and calls | 24,900,000 | |||
Unrealized loss | $ 1,200,000 | 1,200,000 | ||
Tax effect | 100,000 | |||
Proceeds from sale and maturity of held-to-maturity securities | 1,200,000 | 4,800,000 | $ 9,100,000 | |
Gross realized gains on held-to-maturity securities | 0 | 23,000 | 33,000 | |
Proceeds from sale of securities available for sale | 0 | $ 1,739,000 | 1,700,000 | |
Gross realized gains | 4,000 | |||
Securities pledged | 1,900,000 | 1,900,000 | 12,500,000 | |
Securities pledged for public funds | $ 1,900,000 | $ 1,900,000 | $ 0 | |
Number of investment positions that are in an unrealized loss position | loan | 51 | 51 | 36 | |
Credit losses recognized | $ 0 | $ 0 | $ 0 |
SECURITIES - Maturities of Secu
SECURITIES - Maturities of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 1,188 | |
Due after one year through five years | 20,853 | |
Due after five years through ten years | 315 | |
Due after ten years | 0 | |
Subtotal | 22,356 | |
Amortized Cost | 113,592 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 1,202 | |
Due after one year through five years | 21,523 | |
Due after five years through ten years | 325 | |
Due after ten years | 0 | |
Subtotal | 23,050 | |
Fair Value | 113,680 | |
Held to maturity, Amortized cost | ||
Amortized Cost | 259 | $ 1,547 |
Held-to-maturity, Fair value | ||
Fair Value | 269 | 1,561 |
Small Business Administration loan pools | ||
Available-for-sale, Amortized Cost | ||
Amortized cost, without single maturity date | 40,131 | |
Amortized Cost | 40,131 | 30,678 |
Available-for-sale, Fair Value | ||
Fair value, without single maturity date | 39,703 | |
Fair Value | 39,703 | 30,556 |
Mortgage-backed securities | ||
Available-for-sale, Amortized Cost | ||
Amortized cost, without single maturity date | 51,105 | |
Amortized Cost | 51,105 | 28,514 |
Available-for-sale, Fair Value | ||
Fair value, without single maturity date | 50,927 | |
Fair Value | 50,927 | 28,922 |
Held to maturity, Amortized cost | ||
Amortized cost, without single maturity date | 259 | |
Amortized Cost | 259 | 345 |
Held-to-maturity, Fair value | ||
Fair value, without single maturity date | 269 | |
Fair Value | $ 269 | $ 359 |
SECURITIES - Unrealized Losses
SECURITIES - Unrealized Losses By Security Type And Time (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-sale - taxable | ||
Marketable Securities [Line Items] | ||
Available for sale, Less than 12 months, Fair value | $ 47,659 | $ 24,915 |
Available for sale, Less than 12 months, Unrealized losses | (699) | (133) |
Available for sale, 12 months or longer, Fair value | 16,127 | 11,455 |
Available for sale, 12 months or longer, Unrealized losses | (131) | (96) |
Fair Value | 63,786 | 36,370 |
Unrealized Losses | (830) | (229) |
Small Business Administration loan pools | ||
Marketable Securities [Line Items] | ||
Available for sale, Less than 12 months, Fair value | 14,640 | 18,849 |
Available for sale, Less than 12 months, Unrealized losses | (359) | (133) |
Available for sale, 12 months or longer, Fair value | 16,127 | 8,945 |
Available for sale, 12 months or longer, Unrealized losses | (131) | (66) |
Fair Value | 30,767 | 27,794 |
Unrealized Losses | (490) | (199) |
Mortgage-backed securities | ||
Marketable Securities [Line Items] | ||
Available for sale, Less than 12 months, Fair value | 33,019 | 5,839 |
Available for sale, Less than 12 months, Unrealized losses | (340) | 0 |
Available for sale, 12 months or longer, Fair value | 0 | 2,510 |
Available for sale, 12 months or longer, Unrealized losses | 0 | (30) |
Fair Value | 33,019 | 8,349 |
Unrealized Losses | $ (340) | (30) |
United States agency obligations | ||
Marketable Securities [Line Items] | ||
Available for sale, Less than 12 months, Fair value | 227 | |
Available for sale, Less than 12 months, Unrealized losses | 0 | |
Available for sale, 12 months or longer, Fair value | 0 | |
Available for sale, 12 months or longer, Unrealized losses | 0 | |
Fair Value | 227 | |
Unrealized Losses | $ 0 |
LOANS - Major Classifications o
LOANS - Major Classifications of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | $ 1,687,251 | $ 1,657,681 | |
Allowance for loan loss | (11,478) | (16,259) | $ (6,548) |
Loans held for investment, net | 1,675,773 | 1,641,422 | |
Loans held for sale | 284 | 1,270 | |
Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 69,534 | 99,590 | |
Allowance for loan loss | (333) | (388) | (272) |
Commercial Portfolio Segment | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 856,194 | 777,025 | |
Allowance for loan loss | (4,079) | (3,159) | (1,845) |
Commercial Portfolio Segment | Commercial (Non-PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 288,177 | 206,095 | |
Commercial Portfolio Segment | Commercial (PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 85,133 | 185,748 | |
Consumer Portfolio Segment | Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 371,469 | 379,534 | |
Allowance for loan loss | (2,222) | (2,177) | (3,115) |
Consumer Portfolio Segment | Consumer and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment, gross | 16,744 | 9,689 | |
Allowance for loan loss | $ (747) | $ (73) | $ (81) |
LOANS - Narratives (Details)
LOANS - Narratives (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | Sep. 30, 2021loan | Sep. 30, 2021item | Sep. 30, 2021 | Mar. 31, 2021USD ($) | |
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans pledged to the Federal Home Loan Bank | $ 238,700,000 | $ 238,700,000 | $ 264,200,000 | ||||||
Loan premiums on BAC purchased loans | 400,000 | $ 400,000 | $ 600,000 | ||||||
Number of loans past due over 90 days | loan | 0 | 0 | |||||||
Number of loans individually evaluated for impairment with an allowance recorded | loan | 5 | 3 | |||||||
Recorded investment with no allowance | 3,000,000 | $ 3,000,000 | $ 13,100,000 | ||||||
Number of impaired loans | 3 | 6 | |||||||
Recorded investment with allowance | 2,800,000 | 2,800,000 | 10,400,000 | ||||||
Allowance | 1,300,000 | 1,300,000 | 8,300,000 | ||||||
Average net investment | 900,000 | 2,200,000 | |||||||
Interest income recognized | 2,200,000 | $ 7,000 | 2,200,000 | $ 7,000 | 13,000 | ||||
Loans that met the criteria for consideration as a troubled debt restructuring | 227,000 | 299,000 | |||||||
Specific reserve | 0 | 0 | 0 | ||||||
Threshold credit value for annual review | 1,000,000 | $ 1,000,000 | |||||||
Number of loans processed | loan | 2,287 | ||||||||
Loans funded | 340,500,000 | $ 340,500,000 | |||||||
Number of loans forgiven | loan | 1,745 | ||||||||
Amount of loans forgiven | $ 251,400,000 | ||||||||
Amount of loans been paid off | 85,100,000 | ||||||||
PCI loans | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Allowance for loan losses reversed | 0 | ||||||||
Non-Performing Assets | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans | 2,800,000 | 2,800,000 | $ 10,400,000 | ||||||
Percentage of non-performing assets to total assets | 0.51% | 0.10% | |||||||
Substandard | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Recorded investment with no allowance | 2,300,000 | 2,300,000 | $ 2,400,000 | ||||||
Number of impaired loans | loan | 1 | 1 | |||||||
Coex Coffee International Inc. | |||||||||
Financing Receivable, Impaired [Line Items] | |||||||||
Total loans held for investment, gross | $ 7,600,000 | ||||||||
Aggregate outstanding balance collateral | $ 600,000 | $ 600,000 |
LOANS - Past Due Loans (Details
LOANS - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 2,775 | $ 10,434 |
Total Past Due | 3,254 | 1,595 |
Loans Not Past Due | 1,683,997 | 1,656,086 |
Total | 1,687,251 | 1,657,681 |
30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 479 | 1,595 |
60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Total Past Due | 0 | 0 |
Loans Not Past Due | 69,534 | 99,590 |
Total | 69,534 | 99,590 |
Construction and land development | 30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land development | 60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land development | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Total Past Due | 0 | 0 |
Loans Not Past Due | 856,194 | 777,025 |
Total | 856,194 | 777,025 |
Commercial Portfolio Segment | Commercial real estate | 30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | 60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial (Non-PPP) | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 1,468 | 9,127 |
Total Past Due | 1,837 | 278 |
Loans Not Past Due | 286,340 | 205,817 |
Total | 288,177 | 206,095 |
Commercial Portfolio Segment | Commercial (Non-PPP) | 30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 369 | 278 |
Commercial Portfolio Segment | Commercial (Non-PPP) | 60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial (Non-PPP) | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial (PPP) | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Total Past Due | 0 | 0 |
Loans Not Past Due | 85,133 | 185,748 |
Total | 85,133 | 185,748 |
Commercial Portfolio Segment | Commercial (PPP) | 30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial (PPP) | 60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Commercial (PPP) | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Total Past Due | 22 | 1,317 |
Loans Not Past Due | 371,447 | 378,217 |
Total | 371,469 | 379,534 |
Consumer Portfolio Segment | Residential real estate | 30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 22 | 1,317 |
Consumer Portfolio Segment | Residential real estate | 60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment | Residential real estate | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment | Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 1,307 | 1,307 |
Total Past Due | 1,395 | 0 |
Loans Not Past Due | 15,349 | 9,689 |
Total | 16,744 | 9,689 |
Consumer Portfolio Segment | Consumer and other | 30 – 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 88 | 0 |
Consumer Portfolio Segment | Consumer and other | 60 – 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment | Consumer and other | Greater than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
LOANS - Risk Category (Details)
LOANS - Risk Category (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | $ 1,687,251 | $ 1,657,681 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 1,681,707 | 1,644,354 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 463 | 542 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 5,081 | 12,785 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 69,534 | 99,590 |
Construction and land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 69,534 | 99,590 |
Construction and land development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Construction and land development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Construction and land development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Consumer Portfolio Segment | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 371,469 | 379,534 |
Consumer Portfolio Segment | Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 371,469 | 379,104 |
Consumer Portfolio Segment | Residential real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 430 |
Consumer Portfolio Segment | Residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Consumer Portfolio Segment | Residential real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Consumer Portfolio Segment | Consumer and other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 16,744 | 9,689 |
Consumer Portfolio Segment | Consumer and other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 15,349 | 8,382 |
Consumer Portfolio Segment | Consumer and other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 88 | 0 |
Consumer Portfolio Segment | Consumer and other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 1,307 | 1,307 |
Consumer Portfolio Segment | Consumer and other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 856,194 | 777,025 |
Commercial Portfolio Segment | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 853,888 | 774,674 |
Commercial Portfolio Segment | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Commercial Portfolio Segment | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 2,306 | 2,351 |
Commercial Portfolio Segment | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Commercial Portfolio Segment | Commercial (Non-PPP) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 288,177 | 206,095 |
Commercial Portfolio Segment | Commercial (Non-PPP) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 286,334 | 196,856 |
Commercial Portfolio Segment | Commercial (Non-PPP) | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 375 | 112 |
Commercial Portfolio Segment | Commercial (Non-PPP) | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 1,468 | 9,127 |
Commercial Portfolio Segment | Commercial (Non-PPP) | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Commercial Portfolio Segment | Commercial (PPP) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 85,133 | 185,748 |
Commercial Portfolio Segment | Commercial (PPP) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 85,133 | 185,748 |
Commercial Portfolio Segment | Commercial (PPP) | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Commercial Portfolio Segment | Commercial (PPP) | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Commercial Portfolio Segment | Commercial (PPP) | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, gross | $ 0 | $ 0 |
LOANS - Carrying Amount PCI Loa
LOANS - Carrying Amount PCI Loans and Accretable Yield (Details) - PCI loans - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | $ 6,876 | $ 4,883 |
Accretable yield or income expected to be collected | ||
Balance at beginning of period | (630) | |
Adjustment of income | 0 | |
Accretion | 296 | |
Reclassifications from nonaccretable difference | (136) | |
Disposals | 16 | |
Balance at end of period | (454) | |
Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | 0 | 3,732 |
Commercial Portfolio Segment | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | 5,869 | 0 |
Commercial Portfolio Segment | Commercial Loan | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | 556 | 746 |
Consumer Portfolio Segment | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Carrying amount | $ 451 | $ 405 |
LOANS - PCI Loans Deemed Uncoll
LOANS - PCI Loans Deemed Uncollectable (Details) - PCI loans - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Mar. 26, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Interest component of expected cash flows (accretable discount) | $ (454) | $ (630) | |
Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | $ 8,821 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | 3,638 | ||
Expected cash flows | 5,183 | ||
Interest component of expected cash flows (accretable discount) | (545) | ||
Fair value of PCI loans accounted for under ASC 310-30 | 4,638 | ||
Construction and land development | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 5,614 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | 2,297 | ||
Consumer and other | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 0 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | 0 | ||
Consumer Portfolio Segment | Residential real estate | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 604 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | 138 | ||
Commercial Portfolio Segment | Commercial real estate | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 427 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | 80 | ||
Commercial Portfolio Segment | Commercial Loan | Marquis Bancorp, Inc | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Contractually required principal and interest by loan type | 2,176 | ||
Contractual cash flows not expected to be collected (nonaccretable discount) | $ 1,123 |
ALLOWANCE FOR LOAN LOSSES - Bal
ALLOWANCE FOR LOAN LOSSES - Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Allowance for loan losses | |||
Beginning balance | $ 16,259 | $ 6,548 | $ 6,548 |
Provision for loan losses | 2,860 | 8,552 | 10,017 |
Loans charged-off | (7,641) | (306) | |
Recoveries | 0 | 0 | |
Ending balance | 11,478 | 16,259 | |
Construction and land development | |||
Allowance for loan losses | |||
Beginning balance | 388 | 272 | 272 |
Provision for loan losses | (55) | 116 | |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 333 | 388 | |
Commercial Portfolio Segment | Commercial real estate | |||
Allowance for loan losses | |||
Beginning balance | 3,159 | 1,845 | 1,845 |
Provision for loan losses | 920 | 1,314 | |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 4,079 | 3,159 | |
Commercial Portfolio Segment | Commercial Loan | |||
Allowance for loan losses | |||
Beginning balance | 10,462 | 1,235 | 1,235 |
Provision for loan losses | 1,276 | 9,326 | |
Loans charged-off | (7,641) | (99) | |
Recoveries | 0 | 0 | |
Ending balance | 4,097 | 10,462 | |
Consumer Portfolio Segment | Residential real estate | |||
Allowance for loan losses | |||
Beginning balance | 2,177 | 3,115 | 3,115 |
Provision for loan losses | 45 | (731) | |
Loans charged-off | 0 | (207) | |
Recoveries | 0 | 0 | |
Ending balance | 2,222 | 2,177 | |
Consumer Portfolio Segment | Consumer and other | |||
Allowance for loan losses | |||
Beginning balance | 73 | $ 81 | 81 |
Provision for loan losses | 674 | (8) | |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | $ 747 | $ 73 |
ALLOWANCE FOR LOAN LOSSES - All
ALLOWANCE FOR LOAN LOSSES - Allowance for Loans Losses and Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses | |||
Individually evaluated for impairment | $ 1,322 | $ 8,309 | |
Purchased Credit Impaired (PCI) loans | 0 | ||
Collectively evaluated for impairment | 10,156 | 7,950 | |
Total ending allowance balance | 11,478 | 16,259 | $ 6,548 |
Loans individually evaluated for impairment | 5,308 | 13,084 | |
Loans collectively evaluated for impairment | 1,681,943 | 1,644,597 | |
Total | 1,687,251 | 1,657,681 | |
Construction and land development | |||
Allowance for loan losses | |||
Individually evaluated for impairment | 0 | 0 | |
Purchased Credit Impaired (PCI) loans | 0 | 0 | |
Collectively evaluated for impairment | 333 | 388 | |
Total ending allowance balance | 333 | 388 | 272 |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 69,534 | 99,590 | |
Total | 69,534 | 99,590 | |
Commercial Portfolio Segment | Commercial real estate | |||
Allowance for loan losses | |||
Individually evaluated for impairment | 0 | 0 | |
Purchased Credit Impaired (PCI) loans | 0 | 0 | |
Collectively evaluated for impairment | 4,079 | 3,159 | |
Total ending allowance balance | 4,079 | 3,159 | 1,845 |
Loans individually evaluated for impairment | 2,306 | 2,351 | |
Loans collectively evaluated for impairment | 853,888 | 774,674 | |
Total | 856,194 | 777,025 | |
Commercial Portfolio Segment | Commercial Loan | |||
Allowance for loan losses | |||
Individually evaluated for impairment | 669 | 8,309 | |
Purchased Credit Impaired (PCI) loans | 0 | 0 | |
Collectively evaluated for impairment | 3,428 | 2,153 | |
Total ending allowance balance | 4,097 | 10,462 | 1,235 |
Loans individually evaluated for impairment | 1,468 | 9,127 | |
Loans collectively evaluated for impairment | 371,842 | 382,716 | |
Total | 373,310 | 391,843 | |
Consumer Portfolio Segment | Residential real estate | |||
Allowance for loan losses | |||
Individually evaluated for impairment | 0 | 0 | |
Purchased Credit Impaired (PCI) loans | 0 | 0 | |
Collectively evaluated for impairment | 2,222 | 2,177 | |
Total ending allowance balance | 2,222 | 2,177 | 3,115 |
Loans individually evaluated for impairment | 227 | 299 | |
Loans collectively evaluated for impairment | 371,242 | 379,235 | |
Total | 371,469 | 379,534 | |
Consumer Portfolio Segment | Consumer and other | |||
Allowance for loan losses | |||
Individually evaluated for impairment | 653 | 0 | |
Purchased Credit Impaired (PCI) loans | 0 | 0 | |
Collectively evaluated for impairment | 94 | 73 | |
Total ending allowance balance | 747 | 73 | $ 81 |
Loans individually evaluated for impairment | 1,307 | 1,307 | |
Loans collectively evaluated for impairment | 15,437 | 8,382 | |
Total | $ 16,744 | $ 9,689 |
DEPOSITS - Total Deposits (Deta
DEPOSITS - Total Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Ending Balance | ||
NOW accounts | $ 328,667 | $ 232,367 |
Money market accounts | 893,441 | 679,761 |
Brokered deposits | 56,418 | 30,137 |
Savings accounts | 13,833 | 9,727 |
Certificates of deposit | 262,998 | 231,953 |
Total interest-bearing deposits | 1,555,357 | 1,183,945 |
Noninterest-bearing deposits | 799,389 | 475,598 |
Total deposits | $ 2,354,746 | $ 1,659,543 |
% of Total | ||
NOW accounts | 14.00% | 14.00% |
Money market accounts | 37.90% | 41.00% |
Brokered deposits | 2.40% | 1.80% |
Savings accounts | 0.60% | 0.60% |
Certificates of deposit | 11.20% | 14.00% |
Total interest-bearing deposits | 66.10% | 71.30% |
Noninterest-bearing deposits | 0.339 | 0.287 |
Total deposits | 100.00% | 100.00% |
DEPOSITS - Maturities Exceeding
DEPOSITS - Maturities Exceeding the $250,000 FDIC Insurance Limit (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Time deposits of $250,000 or less | ||
Three Months or Less | $ 13,123 | $ 20,767 |
Over Three Through Six Months | 18,043 | 13,258 |
Over Six Months Through 12 Months | 57,678 | 24,805 |
Over 12 Months | 6,444 | 19,240 |
Total | 95,288 | 78,070 |
Time deposits of more than $250,000 | ||
Three Months or Less | 25,539 | 40,189 |
Over Three Through Six Months | 30,762 | 35,314 |
Over Six Months Through 12 Months | 111,204 | 42,845 |
Over 12 Months | 4,831 | 40,157 |
Total | 172,336 | 158,505 |
Total | ||
Three Months or Less | 38,662 | 60,956 |
Over Three Through Six Months | 48,805 | 48,572 |
Over Six Months Through 12 Months | 168,882 | 67,650 |
Over 12 Months | 11,275 | 59,397 |
Total | $ 267,624 | $ 236,575 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Deposits that meet or exceed the $250,000 FDIC insurance limit | $ 172,336 | $ 158,505 |
Financial instruments pledged as collateral for certain deposits | 28,700 | 54,700 |
Deposits that have been re-classified as loan balances | 400 | 100 |
Deposits from principal officers, directors and their affiliates | 22,400 | 12,100 |
Qualified Public Deposits ("QPD") that require collateral pledged | $ 77,800 | $ 98,200 |
DEPOSITS - Maturities of Time D
DEPOSITS - Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Less than 1 year | $ 256,349 | $ 177,178 |
Over 1 through 2 years | 10,153 | 57,034 |
Over 2 through 3 years | 1,082 | 1,658 |
Over 3 through 4 years | 40 | 705 |
Over 4 through 5 years | 0 | 0 |
Over 5 years | 0 | 0 |
Total | $ 267,624 | $ 236,575 |
DEBT (Details)
DEBT (Details) - USD ($) | Oct. 30, 2021 | Mar. 26, 2020 | Sep. 30, 2021 | Jan. 07, 2021 | Dec. 31, 2020 | Dec. 19, 2019 |
Valley National Bank, N. A. | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Principal amount | $ 0 | |||||
Line of credit maximum | $ 10,000,000 | |||||
Line of credit | $ 0 | $ 0 | ||||
Subordinated Debt. | Marquis Bancorp, Inc | ||||||
Line of Credit Facility [Line Items] | ||||||
Notes payable at fair value | $ 10,300,000 | |||||
Principal amount | $ 10,000,000 | |||||
Fixed rate | 7.00% | |||||
Subordinated debt fair value | $ 300,000 | |||||
Subordinated Debt. | Marquis Bancorp, Inc | Subsequent Events | ||||||
Line of Credit Facility [Line Items] | ||||||
Proceeds from notes payable | $ 10,000,000 | |||||
Subordinated Debt. | Marquis Bancorp, Inc | London Interbank Offered Rate (LIBOR) | ||||||
Line of Credit Facility [Line Items] | ||||||
Variable rate | 5.76% |
BORROWINGS - Certain Informatio
BORROWINGS - Certain Information on FHLB Borrowings (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | ||
Amount outstanding at period-end | $ 35,000 | $ 40,000 |
Weighted average interest rate at period-end | 2.04% | 1.96% |
Maximum month-end balance during period | $ 40,000 | $ 70,000 |
Average balance outstanding during period | $ 37,564 | $ 58,210 |
Weighted average interest rate during period | 2.00% | 1.63% |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Federal Home Loan Banks [Abstract] | ||
Maximum percentage of assets allowed to borrow | 25.00% | |
Collateral amount | $ 238,700,000 | $ 264,200,000 |
Amount outstanding at period-end | 35,000,000 | $ 40,000,000 |
Additional available borrowing capacity | 129,300,000 | |
Outstanding advances | 0 | |
Remaining outstanding | $ 0 |
COMMON STOCK AND PREFERRED ST_2
COMMON STOCK AND PREFERRED STOCK (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Undesignated and unissued preferred stock (in shares) | 10,000,000 | |
Class A Voting Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, outstanding (in shares) | 13,416,667 | 13,534,829 |
Common stock issued (in shared) | 229,417 | |
Restricted stock grants (in shares) | 134,856 | |
Number of options exercised (in shares) | 92,710 | |
Number of shares repurchased (in shares) | 341,367 | |
Restricted stock, shares issued net of shares for tax withholdings (in shares) | 3,210 | |
Restricted stock cancellations (in shares) | 3,002 | |
Class A Voting Common Stock | Employee Stock | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 1,851 | |
Class B Non-Voting Common stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, outstanding (in shares) | 0 | 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Fair Value Disclosures [Abstract] | |
Carrying value | $ 0.6 |
Net fair value of collateral | $ 0.6 |
Percentage of specific reserve amount | 0.00% |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Securities available for sale | $ 113,680 | |
Equity securities | 6,703 | $ 6,005 |
Mortgage-backed securities | ||
Fair Value | ||
Securities available for sale | 50,927 | 28,922 |
United States agency obligations | ||
Fair Value | ||
Securities available for sale | 2,079 | 3,122 |
Corporate bonds | ||
Fair Value | ||
Securities available for sale | 1,509 | 2,510 |
Community Development District bonds | ||
Fair Value | ||
Securities available for sale | 18,364 | 21,299 |
Municipals | ||
Fair Value | ||
Securities available for sale | 1,098 | 1,099 |
Mutual Funds | ||
Fair Value | ||
Equity securities | 5,903 | |
Other equity securities | ||
Fair Value | ||
Equity securities | 800 | |
Fair Value, Recurring | ||
Fair Value | ||
Equity securities | 6,703 | 6,005 |
Fair Value, Recurring | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 94,218 | 65,110 |
Fair Value, Recurring | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 19,462 | 22,398 |
Fair Value, Recurring | Small Business Administration loan pools | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 39,703 | 30,556 |
Fair Value, Recurring | Mortgage-backed securities | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 50,928 | 28,922 |
Fair Value, Recurring | United States agency obligations | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 2,078 | 3,122 |
Fair Value, Recurring | Corporate bonds | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 1,509 | 2,510 |
Fair Value, Recurring | Community Development District bonds | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 18,364 | 21,299 |
Fair Value, Recurring | Municipals | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 1,098 | 1,099 |
Fair Value, Recurring | Mutual Funds | ||
Fair Value | ||
Equity securities | 5,903 | 6,005 |
Fair Value, Recurring | Other equity securities | ||
Fair Value | ||
Equity securities | 800 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value | ||
Equity securities | 6,703 | 6,005 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Small Business Administration loan pools | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | United States agency obligations | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Community Development District bonds | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | ||
Fair Value | ||
Equity securities | 5,903 | 6,005 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other equity securities | ||
Fair Value | ||
Equity securities | 800 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value | ||
Equity securities | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 94,218 | 65,110 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 19,462 | 22,398 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Small Business Administration loan pools | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 39,703 | 30,556 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 50,928 | 28,922 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | United States agency obligations | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 2,078 | 3,122 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 1,509 | 2,510 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Community Development District bonds | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 18,364 | 21,299 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Municipals | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 1,098 | 1,099 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Mutual Funds | ||
Fair Value | ||
Equity securities | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Other equity securities | ||
Fair Value | ||
Equity securities | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value | ||
Equity securities | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Small Business Administration loan pools | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | United States agency obligations | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds | Available-for-sale - taxable | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Community Development District bonds | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Municipals | Available-for-sale - tax exempt | ||
Fair Value | ||
Securities available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Mutual Funds | ||
Fair Value | ||
Equity securities | 0 | $ 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Other equity securities | ||
Fair Value | ||
Equity securities | $ 0 |
FAIR VALUE - Customer Derivativ
FAIR VALUE - Customer Derivatives (Details) - Fair Value, Recurring $ in Thousands | Sep. 30, 2021USD ($) |
Fair Value | |
Customer Derivatives - Interest Rate SWAPs Asset | $ 1,300 |
Customer Derivatives - Interest Rate SWAPs Liability | (1,300) |
Total | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value | |
Customer Derivatives - Interest Rate SWAPs Asset | 0 |
Customer Derivatives - Interest Rate SWAPs Liability | 0 |
Total | 0 |
Significant Other Observable Inputs (Level 2) | |
Fair Value | |
Customer Derivatives - Interest Rate SWAPs Asset | 1,300 |
Customer Derivatives - Interest Rate SWAPs Liability | (1,300) |
Total | 0 |
Significant Unobservable Inputs (Level 3) | |
Fair Value | |
Customer Derivatives - Interest Rate SWAPs Asset | 0 |
Customer Derivatives - Interest Rate SWAPs Liability | 0 |
Total | $ 0 |
FAIR VALUE - Assets Measured _2
FAIR VALUE - Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value | ||
Total Gains (Losses) | $ 600 | |
Fair Value, Nonrecurring | ||
Fair Value | ||
Assets, fair value | 1,453 | $ 818 |
Total Gains (Losses) | (1,323) | (8,309) |
Fair Value, Nonrecurring | Commercial real estate | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Total Gains (Losses) | 0 | 0 |
Fair Value, Nonrecurring | Residential real estate | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Total Gains (Losses) | 0 | 0 |
Fair Value, Nonrecurring | Commercial Loan | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 799 | 818 |
Total Gains (Losses) | (669) | (8,309) |
Fair Value, Nonrecurring | Construction and land development | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Total Gains (Losses) | 0 | 0 |
Fair Value, Nonrecurring | Consumer and other | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 654 | 0 |
Total Gains (Losses) | (654) | 0 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Loan | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Construction and land development | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer and other | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Commercial real estate | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Residential real estate | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Commercial Loan | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Construction and land development | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | Consumer and other | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value | ||
Assets, fair value | 1,453 | 818 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial real estate | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Residential real estate | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial Loan | Commercial Portfolio Segment | ||
Fair Value | ||
Assets, fair value | 799 | 818 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Construction and land development | ||
Fair Value | ||
Assets, fair value | 0 | 0 |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | Consumer and other | Consumer Portfolio Segment | ||
Fair Value | ||
Assets, fair value | $ 654 | $ 0 |
FAIR VALUE - Carrying Amount an
FAIR VALUE - Carrying Amount and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Securities, Available for Sale - taxable | $ 94,218 | $ 65,110 |
Securities, Available for Sale - tax exempt | 19,462 | 22,398 |
Securities held to maturity, fair value | 269 | 1,561 |
Securities, Equity | 6,703 | 6,005 |
Financial Liabilities: | ||
Subordinated Debt | 10,016 | 10,153 |
Other equity securities | ||
Financial Assets: | ||
Securities, Equity | 800 | |
Level 1, 2 & 3 | Carrying Amount | ||
Financial Assets: | ||
Accrued Interest Receivable | 5,336 | 6,666 |
Level 1, 2 & 3 | Fair Value | ||
Financial Assets: | ||
Accrued Interest Receivable | 5,336 | 6,666 |
Level 1 | Carrying Amount | ||
Financial Assets: | ||
Cash & Due from Banks, including interest bearing deposits | 720,407 | 191,597 |
Federal Funds Sold | 23,736 | 25,375 |
Securities, Equity | 5,903 | 6,005 |
Loans Held For Sale | 284 | 1,270 |
Level 1 | Carrying Amount | Other equity securities | ||
Financial Assets: | ||
Securities, Equity | 800 | |
Level 1 | Fair Value | ||
Financial Assets: | ||
Cash & Due from Banks, including interest bearing deposits | 720,407 | 191,597 |
Federal Funds Sold | 23,736 | 25,375 |
Securities, Equity | 5,903 | 6,005 |
Loans Held For Sale | 284 | 1,270 |
Level 1 | Fair Value | Other equity securities | ||
Financial Assets: | ||
Securities, Equity | 800 | |
Level 2 | Carrying Amount | ||
Financial Assets: | ||
Securities, Available for Sale - taxable | 94,739 | 65,110 |
Securities, Available for Sale - tax exempt | 18,854 | 22,398 |
Securities held to maturity, fair value | 259 | 1,547 |
Bank Owned Life Insurance | 38,204 | 37,360 |
Customer Derivatives - Interest Rate SWAPs | 1,300 | |
Financial Liabilities: | ||
Deposits | 2,354,746 | 1,659,543 |
Federal Home Loan Bank Advances | 35,000 | 40,000 |
Subordinated Debt | 10,016 | 10,153 |
PPPLF Advances | 101,358 | |
Loan Participations | 13,215 | |
Customer Derivatives - Interest Rate SWAPs | 1,300 | |
Accrued Interest Payable | 266 | 546 |
Level 2 | Fair Value | ||
Financial Assets: | ||
Securities, Available for Sale - taxable | 94,218 | 65,110 |
Securities, Available for Sale - tax exempt | 19,462 | 22,398 |
Securities held to maturity, fair value | 269 | 1,561 |
Bank Owned Life Insurance | 38,204 | 37,360 |
Customer Derivatives - Interest Rate SWAPs | 1,300 | |
Financial Liabilities: | ||
Deposits | 2,325,899 | 1,693,331 |
Federal Home Loan Bank Advances | 33,809 | 37,927 |
Subordinated Debt | 10,016 | 10,153 |
PPPLF Advances | 101,519 | |
Loan Participations | 13,215 | |
Customer Derivatives - Interest Rate SWAPs | 1,300 | |
Accrued Interest Payable | 266 | 546 |
Level 3 | Carrying Amount | ||
Financial Assets: | ||
Loans, net | 1,675,773 | 1,641,422 |
Level 3 | Fair Value | ||
Financial Assets: | ||
Loans, net | $ 1,691,673 | $ 1,653,401 |
CUSTOMER DERIVATIVES - INTERE_2
CUSTOMER DERIVATIVES - INTEREST RATE SWAPS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | |
Derivative [Line Items] | ||||
Derivative notional amount | $ 69,700 | $ 69,700 | ||
Swap fees | $ 208 | $ 149 | $ 781 | $ 622 |
Swap | ||||
Derivative [Line Items] | ||||
Number of instruments held | item | 8 | 8 | ||
Derivative notional amount | $ 69,700 | $ 69,700 | ||
Swap fees | 500 | |||
Derivative asset | 1,300 | 1,300 | ||
Derivative liability | $ 1,300 | $ 1,300 |
LOAN COMMITMENTS AND OTHER RE_3
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit extension commitments | $ 476,676 | $ 410,620 |
Unfunded lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit extension commitments | 368,117 | 356,955 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit extension commitments | 97,251 | 40,629 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit extension commitments | $ 11,308 | $ 13,036 |
REGULATORY CAPITAL MATTERS - Na
REGULATORY CAPITAL MATTERS - Narrative (Details) | Sep. 30, 2021item |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Capital Conversion Buffer - 2015 | 0.00% |
Capital Conversion Buffer - 2019 | 2.50% |
Capital Conversion Buffer - 2021 | 2.50% |
Capital Conversion Buffer - 2020 | 2.50% |
Number of classifications | 5 |
REGULATORY CAPITAL MATTERS - Re
REGULATORY CAPITAL MATTERS - Required Amounts for Capital Adequacy (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Bank | ||
Total Capital Amount | ||
Actual amount | $ 206,776 | $ 176,633 |
Minimum for capital adequacy amount | 127,860 | 117,298 |
Minimum to be well capitalized amount | $ 159,824 | $ 146,623 |
Total Capital Ratio | ||
Actual ratio | 12.9 | 12 |
Minimum for capital adequacy ratio | 8 | 8 |
Minimum to be well capitalized ratio | 10 | 10 |
Tier 1 Capital Amount | ||
Actual amount | $ 194,377 | $ 159,448 |
Minimum for capital adequacy amount | 95,895 | 87,974 |
Minimum to be well capitalized amount | $ 127,860 | $ 117,298 |
Tier 1 Capital Ratio | ||
Actual ratio | 12.2 | 10.9 |
Minimum for capital adequacy ratio | 6 | 6 |
Minimum to be well capitalized ratio | 8 | 8 |
Tier 1 Leverage Amount | ||
Actual amount | $ 194,377 | $ 159,448 |
Minimum for capital adequacy amount | 101,353 | 75,723 |
Minimum to be well capitalized amount | $ 126,691 | $ 94,654 |
Tier 1 Leverage Ratio | ||
Actual ratio | 7.7 | 8.4 |
Minimum for capital adequacy ratio | 4 | 4 |
Minimum to be well capitalized ratio | 5 | 5 |
Common Equity Tier 1 Amount | ||
Actual amount | $ 194,377 | $ 159,448 |
Minimum for capital adequacy amount | 71,921 | 65,980 |
Minimum to be well capitalized amount | $ 103,886 | $ 95,305 |
Common Equity Tier 1 Ratio | ||
Actual ratio | 12.2 | 10.9 |
Minimum for capital adequacy ratio | 4.5 | 4.5 |
Minimum to be well capitalized ratio | 6.5 | 6.5 |
Company | ||
Total Capital Amount | ||
Actual amount | $ 224,537 | $ 215,977 |
Minimum for capital adequacy amount | $ 127,860 | $ 117,298 |
Total Capital Ratio | ||
Actual ratio | 14 | 14.7 |
Minimum for capital adequacy ratio | 8 | 8 |
Tier 1 Capital Amount | ||
Actual amount | $ 202,122 | $ 188,639 |
Minimum for capital adequacy amount | $ 95,895 | $ 87,974 |
Tier 1 Capital Ratio | ||
Actual ratio | 12.6 | 12.9 |
Minimum for capital adequacy ratio | 6 | 6 |
Tier 1 Leverage Amount | ||
Actual amount | $ 202,122 | $ 188,639 |
Minimum for capital adequacy amount | $ 101,353 | $ 75,723 |
Tier 1 Leverage Ratio | ||
Actual ratio | 8 | 10 |
Minimum for capital adequacy ratio | 4 | 4 |
Common Equity Tier 1 Amount | ||
Actual amount | $ 202,122 | $ 188,639 |
Minimum for capital adequacy amount | $ 71,921 | $ 65,980 |
Common Equity Tier 1 Ratio | ||
Actual ratio | 12.6 | 12.9 |
Minimum for capital adequacy ratio | 4.5 | 4.5 |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ / shares | $ 16.87 |
Unrecognized compensation expense | $ | $ 2.7 |
Weighted-average period in which cost is expected to be recognized | 3 years |
2019 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 682,955 |
Number of shares granted (in shares) | 227,590 |
Number of shares in reserve (in shares) | 682,955 |
Available for grant (in shares) | 455,365 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Premises and equipment, net | Premises and equipment, net |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued interest and other liabilities | Accrued interest and other liabilities |
Lease liabilities arising from obtaining right of use assets | $ 200 | $ 2,000 |
Lease liabilities | $ 5,457 | $ 6,500 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease cost | ||||
Operating Lease and Interest Cost | $ 335 | $ 507 | $ 1,128 | $ 1,264 |
Variable Lease Cost | 106 | 120 | 305 | 369 |
Total Lease Cost | $ 441 | $ 627 | $ 1,433 | $ 1,633 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | ||||
Operating Lease - Operating Cash Flows (Fixed Payments) | $ 335 | $ 508 | $ 1,129 | $ 1,264 |
Operating Lease - Operating Cash Flows (Liability Reduction) | 123 | 612 | 1,044 | 1,281 |
New ROU Assets - Operating Leases | $ 165 | $ 60 | $ 165 | $ 1,680 |
Weighted Average Lease Term (Years) - Operating Leases | 5 years 3 days | 5 years 10 months 6 days | 5 years 3 days | 5 years 10 months 6 days |
Weighted Average Discount Rate - Operating Leases | 3.13% | 3.05% | 3.13% | 3.05% |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating lease payments due: | ||
Within one year | $ 1,443 | |
After one but within two years | 1,426 | |
After two but within three years | 1,212 | |
After three but within four years | 1,097 | |
After four years but within five years | 766 | |
After five years | 620 | |
Total undiscounted cash flows | 6,564 | |
Discount on cash flows | (1,107) | |
Total operating lease liabilities | $ 5,457 | $ 6,500 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Oct. 30, 2021USD ($) |
Subsequent Events | Marquis Bancorp, Inc | Subordinated Debt. | |
Subsequent Events | |
Proceeds from notes payable | $ 10 |