Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report. | false | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 001-38290 | |
Entity Registrant Name | Sterling Bancorp, Inc. | |
Entity Incorporation, State or Country Code | MI | |
Entity Tax Identification Number | 38-3163775 | |
Entity Address, Address Line One | One Towne Square | |
Entity Address, Address Line Two | Suite 1900 | |
Entity Address, City or Town | Southfield | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48076 | |
City Area Code | 248 | |
Local Phone Number | 355-2400 | |
Title of 12(b) Security | Common stock | |
Trading Symbol | SBT | |
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 | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,651,466 | |
Entity Central Index Key | 0001680379 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 486,743 | $ 411,676 |
Interest-bearing time deposits with other banks | 1,183 | 1,183 |
Investment securities | 364,361 | 313,879 |
Loans held for sale | 12,230 | 64,987 |
Loans, net of allowance for loan losses of $52,455 and 56,548 | 1,822,186 | 1,956,266 |
Accrued interest receivable | 6,655 | 7,696 |
Mortgage servicing rights, net | 2,888 | 2,722 |
Leasehold improvements and equipment, net | 7,144 | 7,421 |
Operating lease right-of-use assets | 17,210 | 18,184 |
Federal Home Loan Bank stock, at cost | 20,288 | 22,950 |
Cash surrender value of bank-owned life insurance | 33,163 | 33,033 |
Deferred tax asset, net | 20,865 | 21,426 |
Other assets | 14,213 | 15,407 |
Total assets | 2,809,129 | 2,876,830 |
Liabilities: | ||
Noninterest-bearing deposits | 64,944 | 63,760 |
Interest-bearing deposits | 2,135,228 | 2,197,975 |
Total deposits | 2,200,172 | 2,261,735 |
Federal Home Loan Bank borrowings | 150,000 | 150,000 |
Subordinated notes, net | 65,326 | 65,343 |
Operating lease liabilities | 18,421 | 19,400 |
Accrued expenses and other liabilities | 33,804 | 36,725 |
Total liabilities | 2,467,723 | 2,533,203 |
Shareholders' equity: | ||
Preferred stock, authorized 10,000,000 shares; no shares issued and outstanding | ||
Common stock, no par value, authorized 500,000,000 shares; issued and outstanding 50,496,833 shares and 50,460,932 shares at March 31, 2022 and December 31, 2021, respectively | 82,157 | 82,157 |
Additional paid-in capital | 14,186 | 14,124 |
Retained earnings | 253,503 | 248,243 |
Accumulated other comprehensive loss | (8,440) | (897) |
Total shareholders' equity | 341,406 | 343,627 |
Total liabilities and shareholders' equity | $ 2,809,129 | $ 2,876,830 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Allowance for loan losses | $ 52,455 | $ 56,548 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 50,496,833 | 50,460,932 |
Common stock, outstanding (in shares) | 50,496,833 | 50,460,932 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Interest and fees on loans | $ 23,868 | $ 31,294 |
Interest and dividends on investment securities and restricted stock | 835 | 390 |
Other interest | 215 | 263 |
Total interest income | 24,918 | 31,947 |
Interest expense | ||
Interest on deposits | 2,330 | 6,702 |
Interest on Federal Home Loan Bank borrowings | 352 | 838 |
Interest on subordinated notes | 964 | 1,180 |
Total interest expense | 3,646 | 8,720 |
Net interest income | 21,272 | 23,227 |
Provision (recovery) for loan losses | (4,289) | (737) |
Net interest income after provision (recovery) for loan losses | 25,561 | 23,964 |
Non-interest income | ||
Service charges and fees | $ 122 | $ 159 |
Revenue, Product and Service [Extensible List] | sbt:ServiceChargesAndFeesMember | sbt:ServiceChargesAndFeesMember |
Gain on sale of mortgage loans held for sale | $ 197 | $ 398 |
Unrealized losses on equity securities | (236) | (90) |
Net servicing income (loss) | 443 | (430) |
Income on cash surrender value of bank-owned life insurance | 328 | 313 |
Other | 557 | 103 |
Total non-interest income | 1,411 | 453 |
Non-interest expense | ||
Salaries and employee benefits | 9,617 | 7,848 |
Occupancy and equipment | 2,142 | 2,196 |
Professional fees | 5,157 | 8,755 |
FDIC assessments | 369 | 719 |
Data processing | 805 | 346 |
Net recovery of mortgage repurchase liability | (213) | (153) |
Other | 1,546 | 1,623 |
Total non-interest expense | 19,423 | 21,334 |
Income before income taxes | 7,549 | 3,083 |
Income tax expense | 2,289 | 758 |
Net income | $ 5,260 | $ 2,325 |
Income per share, basic | $ 0.10 | $ 0.05 |
Income per share, diluted | $ 0.10 | $ 0.05 |
Weighted average common shares outstanding: | ||
Basic | 50,191,288 | 49,851,202 |
Diluted | 50,406,123 | 49,912,860 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Net income | $ 5,260 | $ 2,325 |
Other comprehensive income (loss), net of tax: | ||
Unrealized losses on investment securities, arising during the period, net of tax effect of $(2,933) and $(23), respectively | (7,543) | (59) |
Comprehensive income (loss) | $ (2,283) | $ 2,266 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Unrealized gains (losses) on investment securities, arising during the period, tax effect | $ (2,933) | $ (23) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balance at beginning of the period at Dec. 31, 2020 | $ 80,807 | $ 13,544 | $ 224,853 | $ 387 | $ 319,591 |
Balance at beginning of the period (in shares) at Dec. 31, 2020 | 49,981,861 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,325 | 2,325 | |||
Repurchase of restricted shares to pay employee tax liability | (46) | (46) | |||
Repurchase of restricted shares to pay employee tax liability (in shares) | (8,536) | ||||
Stock-based compensation | 105 | 105 | |||
Stock-based compensation (in shares) | 36,082 | ||||
Other comprehensive income (loss) | (59) | (59) | |||
Balance at end of the period at Mar. 31, 2021 | $ 80,807 | 13,603 | 227,178 | 328 | 321,916 |
Balance at end of the period (in shares) at Mar. 31, 2021 | 50,009,407 | ||||
Balance at beginning of the period at Dec. 31, 2021 | $ 82,157 | 14,124 | 248,243 | (897) | 343,627 |
Balance at beginning of the period (in shares) at Dec. 31, 2021 | 50,460,932 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 5,260 | 5,260 | |||
Repurchase of restricted shares to pay employee tax liability | (84) | (84) | |||
Repurchase of restricted shares to pay employee tax liability (in shares) | (13,383) | ||||
Stock-based compensation | 146 | 146 | |||
Stock-based compensation (in shares) | 49,284 | ||||
Other comprehensive income (loss) | (7,543) | (7,543) | |||
Balance at end of the period at Mar. 31, 2022 | $ 82,157 | $ 14,186 | $ 253,503 | $ (8,440) | $ 341,406 |
Balance at end of the period (in shares) at Mar. 31, 2022 | 50,496,833 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities | ||
Net income | $ 5,260 | $ 2,325 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (recovery) for loan losses | (4,289) | (737) |
Deferred income taxes | 3,494 | 245 |
Unrealized losses on equity securities | 236 | 90 |
Amortization, net on investment securities | (86) | (576) |
Depreciation and amortization on leasehold improvements and equipment | 391 | 408 |
Originations, net of principal payments, of loans held for sale | (698) | (7,980) |
Proceeds from sale of mortgage loans held for sale | 1,518 | 10,740 |
Gain on sale of loans originated for investment and loans held for sale | (197) | (398) |
Net recovery of mortgage repurchase liability | (213) | (153) |
Increase in cash surrender value of bank-owned life insurance, net of premiums | (130) | (136) |
Valuation allowance adjustments and amortization of mortgage servicing rights | (157) | 1,136 |
Stock-based compensation | 146 | 105 |
Other | (17) | 43 |
Change in operating assets and liabilities: | ||
Accrued interest receivable | 1,041 | 551 |
Other assets | (1,586) | 190 |
Accrued expenses and other liabilities | (3,687) | (4,094) |
Net cash provided by operating activities | 1,198 | 2,911 |
Cash Flows From Investing Activities | ||
Maturities of interest-bearing time deposits with other banks | 1,493 | |
Maturities and principal receipts of investment securities | 12,352 | 44,524 |
Purchases of investment securities | (73,632) | |
Proceeds received from redemption of Federal Home Loan Bank stock | 2,662 | |
Net decrease in loans | 142,123 | 133,438 |
Purchases of portfolio loans | (90,862) | |
Principal payments received on commercial real estate loans held for sale | 2,515 | |
Proceeds from the sale of commercial real estate loans originated for investment | 49,610 | |
Purchases of leasehold improvements and equipment | (114) | (981) |
Net cash provided by investing activities | 135,516 | 87,612 |
Cash Flows From Financing Activities | ||
Net decrease in deposits | (61,563) | (215,751) |
Cash paid for surrender of vested shares to satisfy employee tax liability | (84) | (46) |
Net cash used in financing activities | (61,647) | (215,797) |
Net change in cash and due from banks | 75,067 | (125,274) |
Cash and due from banks at beginning of period | 411,676 | 998,497 |
Cash and due from banks at end of period | 486,743 | 873,223 |
Cash paid for: | ||
Interest | 3,768 | 11,582 |
Income taxes | $ 82 | |
Noncash investing and financing activities: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 530 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Nature of Operations and Basis of Presentation | |
Nature of Operations and Basis of Presentation | Note 1—Nature of Operations and Basis of Presentation Nature of Operations Sterling Bancorp, Inc. (the “Company”) is a unitary thrift holding company that was incorporated in 1989 and the parent company of its wholly owned subsidiary, Sterling Bank and Trust, F.S.B. (the “Bank”). The Company’s business is conducted through the Bank, which was formed in 1984. The Bank originates residential and commercial real estate loans, construction loans, commercial lines of credit and other consumer loans and provides deposit products, consisting primarily of checking, savings and term certificate accounts. The Bank operates through a network of 28 branches of which 26 branches are located in San Francisco and Los Angeles, California with the remaining branches located in New York, New York and Southfield, Michigan. The Company is headquartered in Southfield, Michigan, and its operations are in the financial services industry. Management evaluates the performance of the Company’s business based on one reportable segment, community banking. The Company is subject to regulation, examination and supervision by the Board of Governors of the Federal Reserve System (the “FRB” or “Federal Reserve”). The Bank is a federally chartered stock savings bank that is subject to regulation, supervision and examination by the Office of the Comptroller of the Currency (“OCC”) of the U.S. Department of Treasury and the Federal Deposit Insurance Corporation (“FDIC”) and is a member of the Federal Home Loan Bank (“FHLB”) system. Basis of Presentation The condensed consolidated balance sheet as of March 31, 2022, and the condensed consolidated statements of income, comprehensive income (loss), changes in shareholders’ equity and cash flows for the three months ended March 31, 2022 and 2021 are unaudited. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and reflect all adjustments, in the opinion of management, of a normal recurring nature that are necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. The financial data and other financial information disclosed in these notes to the condensed consolidated financial statements related to these periods are also unaudited. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ended December 31, 2022 or for any future annual or interim period. The condensed consolidated balance sheet at December 31, 2021 included herein was derived from the audited financial statements as of that date. The accompanying unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2022 (the “2021 Form 10-K”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2— Summary of Significant Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates. Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At March 31, 2022 and December 31, 2021, residential real estate loans accounted for 84% and 83%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At March 31, 2022 and December 31, 2021, approximately 85% of gross loans was originated with respect to properties or businesses located in the state of California. In March 2020, the Bank permanently discontinued its Advantage Loan program. Loans originated under this program comprised a significant component of the Bank’s total loan originations. Advantage Loan Program loans (including residential real estate loans held for sale of $10,262 and $11,359 at March 31, 2022 and December 31, 2021, respectively, of which $7,249 and $8,671 were on nonaccrual status at March 31, 2022 and December 31, 2021, respectively) totaled $1,058,794 and $1,185,458, or 67% and 69% of gross residential loans, at March 31, 2022 and December 31, 2021, respectively. Refer to Note 14—Commitments and Contingencies. Recently Issued Accounting Guidance Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“2016-13”) In June 2016, the FASB issued ASU No. 2016-13, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates At this time, a cross-functional implementation team consisting of individuals from accounting, finance, servicing and information systems is working with the Bank’s loan system vendor and consultants, and an application to create credit loss estimation models and processes has been developed. The historical data set for model development has been finalized, and the credit loss estimation models have been developed and tested. Once the credit loss estimation models have been finalized, the Bank will run the new credit loss estimation models in parallel with the current allowance for loan losses model to understand the differences in the models and assess the impact of the change. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of ASU No. 2016-13 on its condensed consolidated financial statements. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investment Securities | |
Investment Securities | Note 3—Investment Securities Debt Securities The following tables summarize the amortized cost and fair value of debt securities available for sale at March 31, 2022 and December 31, 2021 and the corresponding amounts of gross unrealized gains and losses: March 31, 2022 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury and Agency securities $ 170,881 $ 40 $ (3,278) $ 167,643 Mortgage-backed securities 46,422 — (2,378) 44,044 Collateralized mortgage obligations 153,584 348 (6,448) 147,484 Collateralized debt obligations 210 — (6) 204 Total $ 371,097 $ 388 $ (12,110) $ 359,375 December 31, 2021 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury and Agency securities $ 122,291 $ 106 $ (229) $ 122,168 Mortgage-backed securities 49,739 84 (386) 49,437 Collateralized mortgage obligations 137,662 530 (1,343) 136,849 Collateralized debt obligations 211 — (8) 203 Total $ 309,903 $ 720 $ (1,966) $ 308,657 Securities with a fair value of All of the Company’s mortgage-backed securities, and a majority of the Company’s collateralized mortgage obligations are issued and/or guaranteed by a U.S. government agency (Government National Mortgage Association) or a U.S. government-sponsored enterprise (Federal Home Loan Mortgage Corporation (“Freddie Mac”) or Federal National Mortgage Association (“Fannie Mae”)). The fair value of the private-label collateralized mortgage obligations was $480 and $529 at March 31, 2022 and December 31, 2021, respectively. No securities of any single issuer, other than debt securities issued by the U.S. government, government agency and government-sponsored enterprises, were in excess of 10% of total shareholders’ equity as of March 31, 2022 and December 31, 2021. The amortized cost and fair value of U.S. Treasury and Agency securities at March 31, 2022 are shown by contractual maturity in the table below. Mortgage-backed securities, collateralized mortgage obligations and collateralized debt obligations are disclosed separately, as the expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value U.S. Treasury and Agency securities Due less than one year $ 50,200 $ 50,120 Due after one year through five years 120,681 117,523 Mortgage-backed securities 46,422 44,044 Collateralized mortgage obligations 153,584 147,484 Collateralized debt obligations 210 204 Total $ 371,097 $ 359,375 The following table summarizes debt securities available for sale, at fair value, with unrealized losses at March 31, 2022 and December 31, 2021 aggregated by major security type and length of time the individual securities have been in a continuous unrealized loss position: March 31, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S Treasury and Agency securities $ 119,602 $ (3,278) $ — $ — $ 119,602 $ (3,278) Mortgage-backed securities 36,413 (1,496) 7,631 (882) 44,044 (2,378) Collateralized mortgage obligations 102,154 (6,448) — — 102,154 (6,448) Collateralized debt obligations — — 204 (6) 204 (6) Total $ 258,169 $ (11,222) $ 7,835 $ (888) $ 266,004 $ (12,110) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S Treasury and Agency securities $ 49,865 $ (229) $ — $ — $ 49,865 $ (229) Mortgage-backed securities 7,878 (36) 8,729 (350) 16,607 (386) Collateralized mortgage obligations 86,354 (1,342) 2,413 (1) 88,767 (1,343) Collateralized debt obligations — — 203 (8) 203 (8) Total $ 144,097 $ (1,607) $ 11,345 $ (359) $ 155,442 $ (1,966) As of March 31, 2022, the debt securities portfolio consisted of 31 debt securities, with 22 debt securities in an unrealized loss position. For debt securities in an unrealized loss position, management has both the intent and ability to hold these investments until the recovery of the decline. The fair value is expected to increase as these securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of March 31, 2022, the unrealized losses in these securities are due to non-credit-related factors, including changes in interest rates and other market conditions; thus, the impairment was determined to be temporary. All interest and dividends are considered taxable. Equity Securities Equity securities consist of an investment in a qualified community reinvestment act investment fund, which is a publicly-traded mutual fund and an investment in the common equity of Pacific Coast Banker’s Bank, a thinly traded restricted stock. At March 31, 2022 and December 31, 2021, equity securities totaled $4,986 and $5,222, respectively, and are included in investment securities in the condensed consolidated balance sheets. Equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. At March 31, 2022 and December 31, 2021, equity securities with readily determinable fair values were $4,740 and $4,976, respectively. The following is a summary of unrealized and realized gains and losses recognized in the condensed consolidated statements of income: Three Months Ended March 31, 2022 2021 Net losses recorded during the period on equity securities $ (236) $ (90) Less: net gains (losses) recorded during the period on equity securities sold during the period — — Unrealized losses recorded during the period on equity securities held at the reporting date $ (236) $ (90) The Company has elected to account for its investment in a thinly traded restricted stock using the measurement alternative for equity securities without readily determinable fair values, resulting in the investment carried at cost based on no evidence of impairment or observable trading activity during the three months ended March 31, 2022 and 2021. The investment was reported at $246 at March 31, 2022 and December 31, 2021. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2022 | |
Loans | |
Loans | Note 4—Loans Loans Held for Sale The major categories of loans held for sale were as follows: March 31, December 31, 2022 2021 Residential real estate $ 10,572 $ 11,359 Commercial real estate 1,658 53,628 Total loans held for sale $ 12,230 $ 64,987 At March 31, 2022, loans held for sale includes nonaccrual residential real estate loans of $7,249. At December 31, 2021, loans held for sale includes nonaccrual loans of $18,026, consisting of residential real estate loans of $8,671 and commercial real estate loans of $9,355, of which one commercial real estate loan of $2,059 was considered a troubled debt restructuring. In February 2022, the Company sold substantially all of its commercial real estate loans held for sale, which loans had a carrying value of $49,455 on the date of sale, to a third party for cash proceeds of $49,610. Loans Held for Investment and Allowance for Loan Losses The major categories of loans held for investment and the allowance for loan losses were as follows: March 31, December 31, 2022 2021 Residential real estate $ 1,580,759 $ 1,704,231 Commercial real estate 219,767 201,240 Construction 73,778 106,759 Commercial lines of credit 334 363 Other consumer 3 221 Total loans 1,874,641 2,012,814 Less: allowance for loan losses (52,455) (56,548) Loans, net $ 1,822,186 $ 1,956,266 Loans totaling $519,498 and $557,410 were pledged as collateral on FHLB borrowings at March 31, 2022 and December 31, 2021, respectively. The following tables present the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2022 and 2021: Commercial Residential Commercial Lines of Other Three Months Ended March 31, 2022 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Beginning balance $ 32,202 $ 12,608 $ 11,730 $ 8 $ — $ 56,548 Provision (recovery) for loan losses (2,481) 1,096 (2,902) (2) — (4,289) Recoveries 190 5 1 — — 196 Total ending balance $ 29,911 $ 13,709 $ 8,829 $ 6 $ — $ 52,455 Commercial Residential Commercial Lines of Other Three Months Ended March 31, 2021 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Beginning balance $ 32,366 $ 21,942 $ 17,988 $ 91 $ — $ 72,387 Provision (recovery) for loan losses 486 805 (2,023) (5) — (737) Recoveries 204 16 1 — — 221 Total ending balance $ 33,056 $ 22,763 $ 15,966 $ 86 $ — $ 71,871 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment by impairment methodology as of March 31, 2022 and December 31, 2021: Commercial Residential Commercial Lines of Other March 31, 2022 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 158 $ — $ — $ — $ — $ 158 Collectively evaluated for impairment 29,753 13,709 8,829 6 — 52,297 Total ending allowance balance $ 29,911 $ 13,709 $ 8,829 $ 6 $ — $ 52,455 Loans: Loans individually evaluated for impairment $ 345 $ — $ 8,375 $ 115 $ — $ 8,835 Loans collectively evaluated for impairment 1,580,414 219,767 65,403 219 3 1,865,806 Total ending loans balance $ 1,580,759 $ 219,767 $ 73,778 $ 334 $ 3 $ 1,874,641 Commercial Residential Commercial Lines of Other December 31, 2021 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 159 $ — $ — $ — $ — $ 159 Collectively evaluated for impairment 32,043 12,608 11,730 8 — 56,389 Total ending allowance balance $ 32,202 $ 12,608 $ 11,730 $ 8 $ — $ 56,548 Loans: Loans individually evaluated for impairment $ 350 $ 4,441 $ 14,984 $ 116 $ — $ 19,891 Loans collectively evaluated for impairment 1,703,881 196,799 91,775 247 221 1,992,923 Total ending loans balance $ 1,704,231 $ 201,240 $ 106,759 $ 363 $ 221 $ 2,012,814 The following tables present information related to impaired loans by class of loans as of and for the periods indicated: At March 31, 2022 At December 31, 2021 Unpaid Allowance Unpaid Allowance Principal Recorded for Loan Principal Recorded for Loan Balance Investment Losses Balance Investment Losses With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 87 $ 61 $ — $ 91 $ 65 $ — Commercial real estate: Hotels/Single-room occupancy hotels — — — 4,459 4,441 — Construction 10,343 8,375 — 15,004 14,984 — Commercial lines of credit, Private banking 115 115 — 116 116 — Subtotal 10,545 8,551 — 19,670 19,606 — With an allowance for loan losses recorded: Residential real estate, first mortgage 272 284 158 273 285 159 Total $ 10,817 $ 8,835 $ 158 $ 19,943 $ 19,891 $ 159 Three Months Ended March 31, 2022 2021 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Recognized Investment Recognized Recognized With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 63 $ — $ — $ 93 $ — $ — Commercial real estate: Retail — — — 1,023 — — Hotels/Single-room occupancy hotels — — — 18,005 — — Construction 8,395 39 25 34,274 123 80 Commercial lines of credit, Private banking 115 2 1 2,285 — — Subtotal 8,573 41 26 55,680 123 80 With an allowance for loan losses recorded: Residential real estate, first mortgage 285 1 — 115 — — Construction — — — 7,174 — — Commercial lines of credit, Private banking — — — 124 2 1 Subtotal 285 1 — 7,413 2 1 Total $ 8,858 $ 42 $ 26 $ 63,093 $ 125 $ 81 In the tables above, the unpaid principal balance is not reduced for partial charge offs. Also, the recorded investment excludes accrued interest receivable on loans, which was not significant. Also presented in the table above is the average recorded investment of the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The average balances are calculated based on the month-end balances of the loans for the period reported. The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual, excluding nonaccrual loans held for sale, by class of loans as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Loans Past Loans Past Due Over Due Over 90 Days Still 90 Days Still Nonaccrual Accruing Nonaccrual Accruing Residential real estate: Residential first mortgage $ 38,064 $ 38 $ 45,439 $ 39 Residential second mortgage 236 — 236 — Commercial real estate: Hotels/Single-room occupancy hotels — — 4,441 — Construction 5,891 — 12,499 — Total $ 44,191 $ 38 $ 62,615 $ 39 The following tables present the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021 by class of loans: Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not March 31, 2022 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 19,577 $ 6,725 $ 38,102 $ 64,404 $ 1,503,375 $ 1,567,779 Residential second mortgage — — 236 236 12,744 12,980 Commercial real estate: Retail — — — — 37,737 37,737 Multifamily 3,610 — — 3,610 95,062 98,672 Office — — — — 12,267 12,267 Hotels/ Single-room occupancy hotels — — — — 15,614 15,614 Industrial — — — — 11,511 11,511 Other — — — — 43,966 43,966 Construction — — 5,891 5,891 67,887 73,778 Commercial lines of credit: Private banking — — — — 115 115 C&I lending — — — — 219 219 Other consumer — — — — 3 3 Total $ 23,187 $ 6,725 $ 44,229 $ 74,141 $ 1,800,500 $ 1,874,641 Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not December 31, 2021 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 24,044 $ 3,425 $ 45,478 $ 72,947 $ 1,617,509 $ 1,690,456 Residential second mortgage 107 — 236 343 13,432 13,775 Commercial real estate: Retail — — — — 19,574 19,574 Multifamily — — — — 96,960 96,960 Office — — — — 12,382 12,382 Hotels/Single-room occupancy hotels — — 4,441 4,441 9,780 14,221 Industrial — — — — 7,320 7,320 Other — — — — 50,783 50,783 Construction 10,500 — 12,499 22,999 83,760 106,759 Commercial lines of credit: Private banking — — — — 116 116 C&I lending — — — — 247 247 Other consumer — — — — 221 221 Total $ 34,651 $ 3,425 $ 62,654 $ 100,730 $ 1,912,084 $ 2,012,814 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate and other consumer loans, the Company also evaluates credit quality based on the aging status of the loan, which is presented above, and by payment activity. The Company reviews the status of nonperforming loans, which include loans 90 days past due and still accruing, and nonaccrual loans. Troubled Debt Restructurings At March 31, 2022 and December 31, 2021, the balance of outstanding loans identified as troubled debt restructurings, along with the allocated portion of the allowance for loan losses with respect to these loans, was as follows: March 31, 2022 December 31, 2021 Recorded Allowance for Recorded Allowance for Investment Loan Losses Investment Loan Losses Residential real estate, first mortgage $ 174 $ 38 $ 181 $ 39 Commercial real estate: Hotels/Single-room occupancy hotels — — 4,441 — Construction 8,375 — 13,678 — Commercial lines of credit, private banking 115 — 116 — Total $ 8,664 $ 38 $ 18,416 $ 39 During the three months ended March 31, 2022, there were no loans modified as troubled debt restructurings. At March 31, 2022, there were three loans totaling $6,002 in default. At December 31, 2021, there were five loans totaling $15,752 in default that had been modified as troubled debt restructurings. During the three months ended March 31, 2021, the Bank modified the terms of two construction loans and one private banking loan with an extension of the maturity dates at the contract’s existing rate of interest, which was lower than the current market rate for a new loan with similar risk. The terms of certain other loans have been modified during the three months ended March 31, 2022 that did not meet the definition of a troubled debt restructuring. These other loans that were modified were not considered significant. Foreclosure Proceedings At March 31, 2022 and December 31, 2021, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2,765 and $2,780, respectively. Of the loans in formal foreclosure proceedings, $2,755 and $2,770 were included in loans held for sale in the condensed consolidated balance sheets at March 31, 2022 and December 31, 2021, respectively, and were carried at the lower of amortized cost or fair value. The balance of loans are classified as held for investment and receive an allocation of the allowance for loan losses consistent with a substandard loan loss allocation rate as these loans were classified as substandard at March 31, 2022 and December 31, 2021, respectively. Credit Quality The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes homogeneous loans, such as residential real estate and other consumer loans, and non-homogeneous loans, such as commercial lines of credit, construction and commercial real estate loans. This analysis is performed at least quarterly. The Company uses the following definitions for risk ratings: Pass: Loans are of satisfactory quality. Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. At March 31, 2022 and December 31, 2021, the risk rating of loans by class of loans was as follows: Special March 31, 2022 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 1,529,677 $ — $ 37,871 $ 231 $ 1,567,779 Residential second mortgage 12,744 — 236 — 12,980 Commercial real estate: Retail 37,737 — — — 37,737 Multifamily 77,654 11,531 9,487 — 98,672 Office 10,318 — 1,949 — 12,267 Hotels/ Single-room occupancy hotels 8,158 5,890 1,566 — 15,614 Industrial 11,511 — — — 11,511 Other 42,418 1,548 — — 43,966 Construction 53,874 3,751 16,153 — 73,778 Commercial lines of credit: Private banking 115 — — — 115 C&I lending 219 — — — 219 Other consumer 3 — — — 3 Total $ 1,784,428 $ 22,720 $ 67,262 $ 231 $ 1,874,641 Special December 31, 2021 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 1,644,974 $ — $ 45,249 $ 233 $ 1,690,456 Residential second mortgage 13,539 — 236 — 13,775 Commercial real estate: Retail 18,846 728 — — 19,574 Multifamily 75,543 8,104 13,313 — 96,960 Office 10,413 — 1,969 — 12,382 Hotels/ Single-room occupancy hotels 8,205 — 6,016 — 14,221 Industrial 7,320 — — — 7,320 Other 48,996 1,692 95 — 50,783 Construction 67,254 17,226 16,348 5,931 106,759 Commercial lines of credit: Private banking 116 — — — 116 C&I lending 236 11 — — 247 Other consumer 221 — — — 221 Total $ 1,895,663 $ 27,761 $ 83,226 $ 6,164 $ 2,012,814 During the three months ended March 31, 2021, the Bank repurchased a pool of Advantage Loan Program loans with a total outstanding principal balance of $87,944. There were no repurchases of Advantage Loan Program loans during the three months ended March 31, 2022. The Advantage Loan Program loans that have been repurchased and included in the loan portfolio have an outstanding principal balance of $156,012 and $171,185 at March 31, 2022 and December 31, 2021, respectively. For more information on the repurchases of Advantage Loan Program loans, refer to Note 14—Commitments and Contingencies. |
Mortgage Servicing Rights, net
Mortgage Servicing Rights, net | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Servicing Rights, net | |
Mortgage Servicing Rights, net | Note 5—Mortgage Servicing Rights, net The Bank records servicing assets from the sale of residential real estate mortgage loans to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the condensed consolidated balance sheets. The principal balance of these loans at March 31, 2022 and December 31, 2021 are as follows: March 31, December 31, 2022 2021 Residential real estate mortgage loan portfolios serviced for: FNMA $ 120,105 $ 124,764 FHLB 38,296 40,209 Private investors 129,008 142,810 Total $ 287,409 $ 307,783 Custodial escrow balances maintained with these serviced loans were $1,416 and $5,501 at March 31, 2022 and December 31, 2021, respectively. These balances are included in noninterest-bearing deposits in the condensed consolidated balance sheets. Activity for mortgage servicing rights and the related valuation allowance are as follows: Three Months Ended March 31, 2022 2021 Mortgage servicing rights: Beginning of period $ 3,332 $ 7,853 Additions 9 74 Amortization (253) (2,072) End of period 3,088 5,855 Valuation allowance: Beginning of period 610 2,165 Additions (recoveries) (410) (936) End of period 200 1,229 Mortgage servicing rights, net $ 2,888 $ 4,626 Servicing fee income (loss), net of amortization of servicing rights and changes in the valuation allowance, was $443 and $(430) for the three months ended March 31, 2022 and 2021, respectively. The fair value of mortgage servicing rights was $3,261 and $2,916 at March 31, 2022 and December 31, 2021, respectively. The fair value of mortgage servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the estimate of the fair value of mortgage servicing rights. The fair value at March 31, 2022 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds with a weighted average of 14.1% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 65 months and a weighted average default rate of 0.2%. The fair value at December 31, 2021 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds with a weighted average of 17.6% (depending on the stratification of the specific right), a weighted average life of the mortgage servicing right of 52 months and a weighted average default rate of 0.2%. Impairment is determined by stratifying the mortgage servicing rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. At March 31, 2022 and December 31, 2021, the carrying amount of certain individual groupings exceeded their fair values, resulting in write-downs to fair value. Refer to Note 12 — |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2022 | |
Deposits | |
Deposits | Note 6—Deposits Time deposits, included in interest-bearing deposits, were $815,784 and $891,820 at March 31, 2022 and December 31, 2021, respectively. Time deposits included brokered deposits of $20,109 at December 31, 2021. There were no brokered deposits at March 31, 2022. Time deposits that meet or exceed the FDIC insurance limit of $250 were $228,784 and $244,868 at March 31, 2022 and December 31, 2021, respectively. |
FHLB Borrowings
FHLB Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
FHLB Borrowings | |
FHLB Borrowings | Note 7—FHLB Borrowings FHLB Advances FHLB borrowings at March 31, 2022 and December 31, 2021 consist of the following: March 31, December 31, 2022 Interest Rates 2021 Interest Rates Long-term fixed rate advances $ 150,000 0.43% - 1.96 % $ 150,000 0.43% - 1.96 % At March 31, 2022, the Company has long-term fixed-rate advances of $150,000 with maturity dates ranging from May 2029 to February 2030.The advances require monthly interest-only payments with the principal amount due on the maturity date and may contain a prepayment penalty if paid before maturity. At March 31, 2022, the advances may be callable by the FHLB as follows: $ 100,000 in May 2022 and quarterly thereafter until February 2030; and $50,000 in May 2024. At March 31, 2022, the Bank had additional borrowing capacity of $323,547 from the FHLB. FHLB Overdraft Line of Credit and Letters of Credit The Bank has established a short-term overdraft line of credit agreement with the FHLB, which provides for maximum borrowings of $20,000. The overdraft line of credit was not used during the three months ended March 31, 2022. The average amount outstanding during the three months ended March 31, 2021 was $13. At March 31, 2022 and December 31, 2021, there were no outstanding borrowings under this agreement. Borrowings accrue interest based on a variable rate based on the FHLB’s overnight cost of funds rate, which was 0.67% and 0.43% at March 31, 2022 and December 31, 2021, respectively. The agreement has a one-year term and terminates in October 2022. In 2021, the Bank entered into irrevocable standby letters of credit arrangements with the FHLB totaling $11,500 to provide credit support for certain of its obligations related to its commitment to repurchase certain pools of Advantage Loan Program loans. An irrevocable standby letter of credit of $7,500 has a 16-month term and expires in July 2022. An irrevocable standby letter of credit of $4,000 has a 36-month term and expires in July 2024. There were no borrowings outstanding on these standby letters of credit during the three months ended March 31, 2022 and 2021. The long-term fixed-rate advances and the overdraft line of credit are collateralized by certain investment securities and loans. Refer to Note 3—Investment Securities for further information on securities pledged as collateral and Note 4—Loans for further information on loans pledged as collateral. Other Borrowings The Bank had available unsecured credit lines with other banks totaling $80,000 at March 31, 2022 and December 31, 2021, respectively. There were no borrowings under these unsecured credit lines during the three months ended March 31, 2022 and 2021. |
Subordinated Notes, net
Subordinated Notes, net | 3 Months Ended |
Mar. 31, 2022 | |
Subordinated Notes, net | |
Subordinated Notes, net | Note 8—Subordinated Notes, net The subordinated notes (the “Notes”) were as follows: March 31, December 31, 2022 2021 Subordinated notes $ 65,000 $ 65,000 Unamortized note premium 326 343 Total $ 65,326 $ 65,343 The Notes bore interest at 7.0% per annum, payable semi-annually on April 15 and October 15 in arrears, through April 2021 after which the Notes have a variable interest rate of the three-month LIBOR rate plus a margin of 5.82%. The interest rate was 6.06% and 5.94% at March 31, 2022 and December 31, 2021, respectively. Note premium costs are amortized over the contractual term of the Notes into interest expense using the effective interest method. Interest expense on these Notes was $964 and $1,180 for the three months ended March 31, 2022 and 2021, respectively. The Notes mature in April 2026. The Company may redeem the Notes, in whole or in part, at an amount equal to 100% of the outstanding principal amount being redeemed plus accrued interest, in a principal amount with integral multiples of $1. There have been no redemptions of the Notes. The Notes are not subject to redemption by the noteholder. The Notes are unsecured obligations and are subordinated in right of payment to all existing and future indebtedness, deposits and other liabilities of the Company’s current and future subsidiaries, including the Bank’s deposits as well as the Company’s subsidiaries’ liabilities to general creditors and liabilities arising during the ordinary course of business. The Notes may be included in Tier 2 capital for the Company under current regulatory guidelines and interpretations. As long as the Notes are outstanding, the Company is permitted to pay dividends if prior to such dividends, the Bank is considered well capitalized, as defined by regulatory guidelines. The Company currently may not issue new debt without the prior approval of the FRB. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-based Compensation | |
Stock-based Compensation | Note 9—Stock-based Compensation The board of directors established the 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), which was approved by the shareholders in December 2020. The 2020 Plan provides for the grant of up to 3,979,661 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares for issuance to employees, consultants and the board of directors of the Company. The stock-based awards are issued at no less than the market price on the date the awards are granted. Previously, the board of directors had established a 2017 Omnibus Equity Incentive Plan (the “2017 Plan”) which was approved by the shareholders. The 2017 Plan initially provided for the grant of up to 4,237,100 shares of common stock for stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards for issuance to employees, consultants and the board of directors of the Company. The stock-based awards were issued at no less than the market price on the date the awards were granted. Due to the adoption of the 2020 Plan, no further grants will be issued under the 2017 Plan. Stock Options Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant. Beginning with grants in 2020, stock option awards vest ratably over three years ( one - third per year ) after the date of grant, while stock option awards granted prior to 2020 generally vest in installments of 50% in each of the third and fourth year after the date of grant. All stock option awards have a maximum term of ten years . No stock option awards were granted during the three months ended March 31, 2022 and 2021. A summary of the Company’s stock option activity as of and for the three months ended March 31, 2022 is as follows: Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic of Shares Price Term Value (Years) Outstanding at January 1, 2022 367,767 $ 5.41 8.13 $ 525 Granted — Exercised — Forfeited/expired (18,222) 9.67 Outstanding at March 31, 2022 349,545 $ 5.19 7.93 $ 930 Exercisable at March 31, 2022 344,356 $ 5.14 7.93 $ 930 The Company recorded stock-based compensation expense associated with stock options of $(13) and $57 for the three months ended March 31, 2022 and 2021, respectively. At March 31, 2022, there was $8 of total unrecognized compensation cost related to nonvested stock options which is expected to be recognized over a weighted-average period of less than one year . Restricted Stock Awards Restricted stock awards are issued to independent directors and certain key employees. The restricted stock awards generally vest ratably over three years ( one third year During the three months ended March 31, 2022, the board of directors approved the issuance of 53,681 shares of restricted stock, of which 45,000 shares were awarded to independent directors and 8,681 shares were awarded to key employees. During the three months ended March 31, 2021, the board of directors approved the issuance of 45,000 shares of restricted stock to independent directors. During the three months ended March 31, 2022 and 2021, the Company withheld 13,383 shares and 8,536 shares of common stock representing a portion of the restricted stock awards that vested during the period in order to satisfy certain related employee tax withholding liabilities of $84 and $46, respectively,associated with vesting. These withheld shares are treated the same as repurchased shares for accounting purposes. A summary of the restricted stock awards activity for the three months ended March 31, 2022 is as follows: Weighted Average Number Grant Date of Shares Fair Value Nonvested at January 1, 2022 293,637 $ 5.81 Granted 53,681 5.75 Vested (54,437) 7.27 Forfeited (4,397) 6.94 Nonvested at March 31, 2022 288,484 $ 5.51 The fair value of the award is recorded as compensation expense on a straight-line basis over the vesting period. The Company recorded stock-based compensation expense associated with restricted stock awards of $159 and $48 for the three months ended March 31, 2022 and 2021, respectively. At March 31, 2022, there was $1,216 of total unrecognized compensation cost related to the nonvested stock granted which is expected to be recognized over a weighted-average period of two years . The total fair value of shares vested during the three months ended March 31, 2022 and 2021 was $332 and $173, respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | Note 10—Regulatory Capital Requirements The Bank is subject to the capital adequacy requirements of the OCC. The Company, as a thrift holding company, is subject to the capital adequacy requirements of the Federal Reserve. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Prompt corrective action regulations provide five classifications for depository institutions like the Bank, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors, and the regulators, in their discretion, can require the Company to lower classifications in certain cases. Failure to meet minimum capital requirements can initiate regulatory action that could have a direct material effect on the Company’s business, financial condition and results of operations. The Bank, after consultation with the OCC, determined that a risk-weighting of 100% should be applied to its Advantage Loan Program loans under the risk weighting requirements set forth under the Basel III capital rules for first-lien residential mortgage exposures commencing with the first quarter of 2022. Previously, the Company and the Bank generally applied a 50% risk weight to the Advantage Loan Program loans. The table below presents the Company’s and the Bank’s regulatory capital amounts and ratios applying the 100% risk weight as of March 31, 2022 for the Company’s and Bank’s total adjusted capital to risk-weighted assets and Tier 1 (core) capital to risk-weighted assets. Had the Bank applied the 100% risk weight as of December 31, 2021, the Company’s total adjusted capital to risk-weighted assets and Tier 1 (core) capital to risk-weighted assets would have been 21.24% and 17.34%, respectively, and the Bank’s total adjusted capital to risk-weighted assets and Tier 1 (core) capital to risk-weighted assets would have been 20.55% and 19.28%, respectively. At March 31, 2022 and December 31, 2021, the Bank exceeded all capital requirements to be categorized as well capitalized, and the Company exceeded applicable capital adequacy requirements as presented below. The Company’s consolidated and the Bank’s actual and minimum required capital amounts and ratios at March 31, 2022 and December 31, 2021 are as follows: For Capital To be Well Actual Adequacy Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio March 31, 2022 Total adjusted capital to risk-weighted assets Consolidated $ 441,402 23.21 % $ 141,832 8.00 % N/A N/A Bank 412,395 23.29 141,649 8.00 $ 177,061 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 349,671 19.72 106,374 6.00 N/A N/A Bank 389,875 22.02 106,236 6.00 141,649 8.00 Common Equity Tier 1 (CET1) Consolidated 349,671 19.72 79,780 4.50 N/A N/A Bank 389,875 22.02 79,677 4.50 115,089 6.50 Tier 1 (core) capital to adjusted tangible assets (leverage ratio) Consolidated 349,671 12.23 114,339 4.00 N/A N/A Bank 389,875 13.65 114,261 4.00 142,827 5.00 For Capital To be Well Actual Adequacy Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Total adjusted capital to risk-weighted assets Consolidated $ 414,870 29.02 % $ 113,951 8.00 % N/A N/A Bank 400,836 28.07 113,868 8.00 $ 142,335 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 344,247 24.08 85,463 6.00 N/A N/A Bank 382,509 26.79 85,401 6.00 113,868 8.00 Common Equity Tier 1 (CET1) Consolidated 344,247 24.08 64,097 4.50 N/A N/A Bank 382,509 26.79 64,051 4.50 92,518 6.50 Tier 1 (core) capital to adjusted tangible assets (leverage ratio) Consolidated 344,247 11.47 120,039 4.00 N/A N/A Bank 382,509 12.77 119,859 4.00 149,824 5.00 Under the Basel III capital rules, both the Company and the Bank must hold a capital conservation buffer (“CCB”) consisting of at least 2.5% above the minimum risk-based capital ratios, or 7.0% for common equity Tier 1 (“CET1”) capital ratio, 8.5% for Tier 1 capital ratio and 10.5% for total capital ratio, in order to avoid limitations on capital distributions and discretionary bonus payments to executive officers and similar employees. At March 31, 2022 and December 31, 2021, the Company and the Bank’s CET1, Tier 1 and total capital ratios exceed all the minimum requirements as well as the levels necessary to be deemed well capitalized and exceed the applicable CCB. Dividend Restrictions As noted above, banking regulations require the Bank to maintain certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to its shareholders. The Company’s principal source of funds for dividend payments is dividends received from the Bank, and banking regulations limit the dividends that may be paid. Approval by regulatory authorities is required if (i) the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years or (ii) the Bank would not be at least adequately capitalized following the distribution. The Qualified Thrift Lender (“QTL”) test requires that a minimum of 65% of assets be maintained in qualified thrift investments, including mortgage loans, housing- and real estate-related finance and other specified areas. If the QTL test is not met, limits are placed on growth, branching, new investments, FHLB advances and dividends, or the Bank must convert to a commercial bank charter. Management believes that the QTL test has been met. Also, pursuant to the terms of the subordinated note agreements, the Company may pay dividends if it is well capitalized as defined by regulatory guidelines. The Bank is currently required to obtain the prior approval of the OCC in order to pay dividends to the Company due to the existence of a formal agreement with the OCC. Refer to Note 14—Commitments and Contingencies. In addition, the Company currently is required to obtain the prior approval of the FRB in order to pay dividends to the Company’s shareholders. |
Income Per Share
Income Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Income Per Share | |
Income Per Share | Note 11—Income Per Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted income per common share further includes any common shares available to be issued upon the exercise of outstanding stock options and restricted stock awards if such inclusions would be dilutive. The Company determines the potentially dilutive common shares using the treasury stock method. The following table presents the computation of income per share, basic and diluted: Three Months Ended March 31, 2022 2021 Numerator: Net income $ 5,260 $ 2,325 Denominator: Weighted average common shares outstanding, basic 50,191,288 49,851,202 Weighted average effect of potentially dilutive common shares: Stock options 108,203 49,790 Restricted stock 106,632 11,868 Weighted average common shares outstanding, diluted 50,406,123 49,912,860 Income per share: Basic $ 0.10 $ 0.05 Diluted $ 0.10 $ 0.05 The weighted average effect of certain stock options and nonvested restricted stock that were excluded from the computation of weighted average diluted shares outstanding, as inclusion would be anti-dilutive, are summarized as follows: Three Months Ended March 31, 2022 2021 Stock options 49,545 74,882 Restricted stock — 64,647 Total 49,545 139,529 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Values of Financial Instruments | |
Fair Values of Financial Instruments | Note 12—Fair Values of Financial Instruments Financial instruments include assets carried at fair value, as well as certain assets and liabilities carried at cost or amortized cost but disclosed at fair value in these condensed consolidated financial statements. Fair value is defined as the exit price, the price that would be received for an asset or paid to transfer a liability in the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. The inputs to valuation techniques used to measure fair value are prioritized into a three-level hierarchy. The hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: 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 reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following methods and significant assumptions are used to estimate fair value: Investment Securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar investment securities (Level 2). For investment securities where quoted prices or market prices of similar investment securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using spread to LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the analysis. Rating agency and industry research reports as well as defaults and deferrals on individual investment securities are reviewed and incorporated into the calculations. Loans Held for Sale Loans held for sale are carried at the lower of amortized cost or fair value. Fair value is determined based on outstanding commitments from investors or quoted prices for loans with similar characteristics (Level 2). Impaired Loans The fair value of collateral-dependent 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, such as comparable sales or the income approach, or a combination of both. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by management. Once received, an appraisal compliance review is completed in accordance with regulatory guidelines. Mortgage Servicing Rights Fair value of mortgage servicing rights is initially determined at the individual grouping level based on an internal valuation model that calculates the present value of estimated future net servicing income. On a quarterly basis, mortgage servicing rights are evaluated for impairment based upon third-party valuations obtained. As disclosed in Note 5—Mortgage Servicing Rights, net, the valuation model utilizes interest rate, prepayment speed and default rate assumptions that market participants would use in estimating future net servicing income (Level 3). Assets Measured at Fair Value on a Recurring Basis The table below presents the assets measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset at March 31, 2022 and December 31, 2021: Fair Value Measurements at March 31, 2022 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available-for-sale debt securities: U.S. Treasury and Agency securities $ 167,643 $ 94,492 $ 73,151 $ — Mortgage-backed securities 44,044 — 44,044 — Collateralized mortgage obligations 147,484 — 147,484 — Collateralized debt obligations 204 — — 204 Equity securities 4,740 4,740 — — Fair Value Measurements at December 31, 2021 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available-for-sale debt securities: U.S. Treasury and Agency securities $ 122,168 $ 48,827 $ 73,341 $ — Mortgage-backed securities 49,437 — 49,437 — Collateralized mortgage obligations 136,849 — 136,849 — Collateralized debt obligations 203 — — 203 Equity securities 4,976 4,976 — — The table below presents a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 and 2021: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Collateralized Debt Obligations Three Months Ended March 31, 2022 2021 Balance of recurring Level 3 assets at beginning of period $ 203 $ 187 Total gains or losses (realized/unrealized): Included in income-realized — — Included in other comprehensive income (loss) 2 7 Principal maturities/settlements (1) (1) Sales — — Transfers in and/or out of Level 3 — — Balance of recurring Level 3 assets at end of period $ 204 $ 193 Unrealized losses on Level 3 investments for collateralized debt obligations was $6 and $8 at March 31, 2022 and December 31, 2021, respectively. In addition to the amounts included in income as presented in the table above, interest income recorded on collateralized debt obligations was $1 for the three months ended March 31, 2022 and 2021. The fair value of the collateralized debt obligations is obtained from third-party pricing information. It is determined by calculating discounted cash flows using LIBOR curves plus spreads that adjust for credit risk and illiquidity. The Company also performs an internal analysis that considers the structure and term of the collateralized debt obligations and the financial condition of the underlying issuers to corroborate the information used from the independent third party. Assets Measured at Fair Value on a Nonrecurring Basis From time to time, the Bank may be required to measure certain other assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis that were recorded in the condensed consolidated balance sheets at March 31, 2022 and December 31, 2021, the following table provides the level of valuation assumptions used to determine each adjustment and the related carrying value: Fair Value Measurements at March 31, 2022 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans: Residential real estate $ 88 $ — $ — $ 88 Mortgage servicing rights 1,470 — — 1,470 Fair Value Measurements at December 31, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans: Residential real estate $ 86 $ — $ — $ 86 Commercial real estate loans held for sale 53,628 — 53,628 — Mortgage servicing rights 2,052 — — 2,052 As discussed above, the fair values of collateral-dependent impaired loans carried at fair value are determined by third-party appraisals. Management adjusts these appraised values based on the age of the appraisal and the type of the property. The following tables present quantitative information about Level 3 fair value measurements at March 31, 2022 and December 31, 2021: Quantitative Information about Level 3 Fair Value Measurements at March 31, 2022 Range Fair Value Valuation Technique Unobservable Inputs (Weighted Average) (1) Impaired loans: Residential real estate $ 88 Sales comparison approach Adjustments for differences between the comparable sales N/A Mortgage servicing rights $ 1,470 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 8.2% - 28% Default rate 0.1% - 0.2% (1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment . Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021 Valuation Range Fair Value Technique Unobservable Inputs (Weighted Average) (1) Impaired loans: Residential real estate $ 86 Sales comparison approach Adjustments for differences between the comparable sales N/A Mortgage servicing rights $ 2,052 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 10.5% - 37.1% Default rate 0.1% - 0.2% (1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment. Fair Value of Financial Instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value at March 31, 2022 and December 31, 2021, are as follows: Fair Value Measurements at March 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 486,743 $ 486,743 $ 486,743 $ — $ — Interest-bearing time deposits with other banks 1,183 1,183 1,183 — — Loans held for sale 12,230 12,681 — 12,681 — Loans, net (1) 1,822,098 1,827,208 — — 1,827,208 Financial Liabilities Time deposits 815,784 816,758 — 816,758 — Federal Home Loan Bank borrowings 150,000 149,990 — 149,990 — Subordinated notes, net 65,326 65,056 — 65,056 — (1) Excludes impaired loans measured at fair value on a nonrecurring basis at March 31, 2022. Fair Value Measurements at December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 411,676 $ 411,676 $ 411,676 $ — $ — Interest-bearing time deposits with other banks 1,183 1,183 1,183 — — Loans held for sale 11,359 11,809 — 11,809 — Loans, net (1) 1,956,180 2,025,409 — — 2,025,409 Financial Liabilities Time deposits 891,820 894,049 — 894,049 — Federal Home Loan Bank borrowings 150,000 152,560 — 152,560 — Subordinated notes, net 65,343 65,073 — 65,073 — (1) . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | Note 13—Related Party Transactions The Company subleases certain office space to entities owned by the Company’s controlling shareholders. Amounts received under such subleases totaled $112 and $95 for the three months ended March 31, 2022 and 2021, respectively. The sublease agreements ended on March 31, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14—Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which are not reflected in the condensed consolidated financial statements. Unfunded Commitments to Extend Credit A commitment to extend credit, such as a loan commitment, credit line and overdraft protection, is a legally binding agreement to lend funds to a customer, usually at a stated interest rate and for a specific purpose. Such commitments have fixed expiration dates and generally require a fee. The extension of a commitment gives rise to credit risk. The actual liquidity requirements or credit risk that the Bank will experience is expected to be lower than the contractual amount of commitments to extend credit because a significant portion of those commitments are expected to expire without being drawn upon. Certain commitments are subject to loan agreements containing covenants regarding the financial performance of the customer that must be met before the Bank is required to fund the commitment. The Bank uses the same credit policies in making commitments to extend credit as it does in making loans. The commitments outstanding to make loans include primarily residential real estate loans that are made for a period of 90 days or less. At March 31, 2022, outstanding commitments to make loans consisted of fixed rate loans of $1,124 at interest rates ranging from 2.875% to 4.00% with maturities ranging from 15 years to 30 years and variable rate loans of $18,745 at varying interest rates ranging from 3.00% to 3.625% at March 31, 2022 with maturities of 30 years. Unused Lines of Credit The Bank also issues unused lines of credit to meet customer financing needs. At March 31, 2022, the unused lines of credit include residential second mortgages of $10,596 and construction loans of $29,193 totaling $39,789. These unused lines of credit are associated with variable rate commitments at interest rates ranging from 3.50% to 6.75% with maturities ranging from one month to 24 years . Standby Letters of Credit Standby letters of credit are issued on behalf of customers in connection with construction contracts between the customers and third parties. Under standby letters of credit, the Bank assures that the third parties will receive specified funds if customers fail to meet their contractual obligations. The credit risk to the Bank arises from its obligation to make payment in the event of a customer’s contractual default. The maximum amount of potential future payments guaranteed by the Bank is limited to the contractual amount of these letters. Collateral may be obtained at exercise of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The following is a summary of the total amount of unfunded commitments to extend credit and standby letters of credit outstanding at March 31, 2022 and December 31, 2021: March 31, December 31, 2022 2021 Commitments to make loans $ 19,869 $ 23,610 Unused lines of credit 39,789 45,805 Standby letters of credit 24 24 Legal Proceedings The Company and its subsidiaries may be subject to legal actions and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened legal proceedings, except as described below, that are considered other than routine legal proceedings. The Company believes that the ultimate disposition or resolution of its routine legal proceedings, in the aggregate, are immaterial to its financial position, results of operations or liquidity. The Bank is currently under formal investigation by the OCC generally relating to its former residential loan product marketed as the Advantage Loan Program and related matters (the “OCC Investigation”) and continues to be subject to a publicly available formal agreement with the OCC, dated June 18, 2019 (the “OCC Agreement”), relating primarily to certain aspects of its Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) compliance program as well as the Bank’s credit administration. The OCC Agreement generally requires that the Bank enhance its policies and procedures to ensure compliance with BSA/AML laws and regulations and ensure effective controls over residential loan underwriting. The Bank is fully cooperating with the OCC Investigation and implementing the items necessary to achieve compliance with the obligations in the OCC Agreement. A finding by the OCC that the Bank failed to comply with the OCC Agreement or adverse findings in the OCC Investigation could result in additional regulatory scrutiny, constraints on the Bank’s business, or other formal enforcement action, including the assessment of fines and penalties. Any of those events could have a material adverse effect on our future operations, financial condition, growth, or other aspects of our business. The Bank also has received grand jury subpoenas from the U.S. Department of Justice (the “DOJ”) beginning in 2020 requesting the production of documents and information in connection with an investigation that appears to be focused on the Bank’s Advantage Loan Program and related issues, including residential lending practices and public disclosures about that program contained in the Company’s filings with the SEC. The Bank is fully cooperating with this ongoing investigation. Adverse findings in the DOJ investigation could result in material losses due to damages, restitution, penalties, costs, and/or expenses imposed on the Company, which could have a material adverse effect on the Company’s future operations, financial condition, growth, or other aspects of the business. The Company is currently under a formal investigation by the SEC. This investigation appears to be focused on accounting, financial reporting and disclosure matters, as well as the Company’s internal controls, related to the Advantage Loan Program. The Company has received document and information requests from the SEC and is fully cooperating with this investigation. Adverse findings in the SEC investigation could result in material losses due to penalties, disgorgement, costs and/or expenses imposed on the Company, which could have a material adverse effect on the Company’s future operations, financial condition, growth or other aspects of its business. The Bank has incurred and expects to continue to incur significant costs in its efforts to comply with the OCC Agreement and respond to the government investigations, which are reflected in the Company’s results of operations for the three months ended March 31, 2022 and 2021. Adverse findings in any of the aforementioned government investigations could also have collateral consequences for the Company and the Bank, such as creating breaches of representation in certain third-party agreements and loss of eligibility to participate in certain government programs and programs of government sponsored entities. In 2019, the Company commenced an internal review of the Advantage Loan Program and related matters (the “ Internal Review”). The primary focus of the Internal Review, which has been led by outside legal counsel at the direction of a special committee of independent directors (the “Special Committee”), has involved the origination of residential real estate loans under the Advantage Loan Program and related matters. Results from the Special Committee’s Internal Review have indicated that certain employees engaged in misconduct in connection with the origination of a significant number of such loans, including with respect to verification of income, the amount of income reported for borrowers, reliance on third parties, and related documentation. As a result, the Company permanently discontinued the Advantage Loan Program. While the Internal Review is substantially complete, the Company expects the Internal Review to remain open during the pendency of the government investigations discussed herein, and it is possible additional work will be required in connection with the Internal Review. At March 31, 2022 and December 31, 2021, the Company has a liability for contingent losses of $15,000 for the outcome of the pending investigations. There can be no assurance (i) that the Company will not incur material losses due to damages, penalties, costs and/or expenses as a result of such investigations, (ii) that the accrual for contingent losses will be sufficient to cover such losses, or (iii) that such losses will not materially exceed such accrual and have a material impact on the Company’s business, financial condition or results of operations. In addition, on July 28, 2020, the Company received a demand letter from two law firms representing a purported shareholder of the Company (the “Shareholder Demand”) alleging that members of the Company’s board of directors breached their fiduciary duties of oversight and disclosure based on allegations concerning the Bank’s residential lending practices and disclosures concerning those practices that were made in the Company’s registration statement and prospectus for its initial public offering, in subsequent press releases, in periodic and other filings with the SEC and during earnings calls. The Shareholder Demand requested that the board of directors take action to (1) recover damages the Company has purportedly sustained as a result of alleged breaches of fiduciary duties by certain of its officers and directors; (2) recover for the benefit of the Company the amounts by which certain of its officers and directors purportedly were unjustly enriched; and (3) correct alleged deficiencies in the Company’s internal controls. Following receipt of the Shareholder Demand, the Company’s board of directors established a demand review committee consisting of independent directors, none of whom were named in the Shareholder Demand. On January 21, 2022, the Company and the purported shareholder entered into an agreement in the form of a definitive stipulation of settlement (the “Settlement”). Pursuant to the Settlement, the Company agreed to adopt and implement substantial corporate governance reforms, many of which have been implemented, and pay attorneys’ fees and expenses in exchange for the release of all defendants from all alleged claims therein. The Settlement provides customary releases of certain individuals and entities, including the current board of directors and certain former board members, and reserves for the Company’s board of directors the exclusive right to continue to evaluate and pursue claims against non-released individuals based on their conduct concerning, related to, or arising from the matters raised in the Shareholder Demand. Settlement remains subject to final court approval and other customary conditions. Reimbursement of the plaintiff attorneys’ fees and expenses of $650 due under the Settlement will be paid by the Company’s insurance carriers under applicable insurance policies. A loss recovery receivable of $650 was recorded in the fourth quarter of 2021, in the amount of the liability for the total of the attorneys’ fees and expenses also recorded in the fourth quarter of 2021. Subsequent to March 31, 2022, the court granted preliminary approval of the Settlement, and a final approval hearing is scheduled to be held before the court on September 29, 2022. Mortgage Repurchase Liability During the period 2015 through 2019, the Company sold portfolio loans originated under the Advantage Loan Program to private investors in the secondary market. The Company also sells conventional residential real estate loans (which excludes Advantage Loan Program loans) in the secondary market primarily to Fannie Mae on an ongoing basis. In connection with these loans sold, the Company makes customary representations and warranties about various characteristics of each loan. The Company may be required pursuant to the terms of the applicable mortgage loan purchase and sale agreements to repurchase any previously sold loan or indemnify (make whole) the investor for which the representation or warranty of the Company proves to be inaccurate, incomplete or misleading. In the event of a repurchase, the Company is typically required to pay the unpaid principal balance, the proportionate premium received when selling the loan and certain expenses. As a result, the Company may incur a loss with respect to each repurchased loan. In 2019, in connection with the above mentioned investigations stemming from the Advantage Loan Program, the Bank recorded a mortgage repurchase liability of $7,823, primarily related to probable losses on the previously sold Advantage Loan Program portfolio. The Company determined that these losses became probable in the latter part of the fourth quarter of 2019, taking into account the results of the Internal Review. In 2020, based on further analysis, the Company increased the mortgage repurchase liability by $2,527. To avoid the uncertainty of audits and inquiries by third-party investors in the Advantage Loan Program, beginning at the end of the second quarter of 2020, the Company commenced making offers to each of those investors to repurchase 100% of the previously sold Advantage Loan Program loans. Since this time, certain third-party investors have accepted this offer. Through March 31, 2022, the Company has repurchased pools of Advantage Loan Program loans previously sold with a total outstanding unpaid principal balance of $243,467. Pursuant to the existing agreements with such investors, the Company also agreed to repurchase additional pools of Advantage Loan Program loans at the predetermined repurchase prices stated in the agreements and within the time ranges specified in the following table, with the final decision to effect any such repurchase and the specific date of repurchase within each range to be determined by the applicable investor. Losses expected to be incurred upon the repurchase of such loans are reflected in the mortgage repurchase liability. Outstanding Principal Balance at Repurchase Date Range March 31, 2022 Present – February 28, 2023 $ 12,757 May 21, 2022 – May 21, 2023 12,760 July 25, 2022 – July 25, 2023 16,140 Present – July 22, 2023 24,777 $ 66,434 As of March 31, 2022 and December 31, 2021, the Bank’s mortgage repurchase liability was $2,741 and $2,954, respectively, which is included in accrued expenses and other liabilities in the condensed consolidated balance sheets. The unpaid principal balance of residential real estate loans sold that were subject to potential repurchase obligations for breach of representations and warranties totaled $220,790 and $237,049 at March 31, 2022 and December 31, 2021, respectively, including Advantage Loan Program loans totaling $129,008 and $142,810 at March 31, 2022 and December 31, 2021, respectively. The mortgage repurchase liability reflects management’s estimate of losses based on a combination of factors. The Company’s estimation process requires management to make subjective and complex judgements about matters that are inherently uncertain, such as future repurchase demand expectations, economic factors and findings from the Internal Review. The actual repurchase losses could vary significantly from the recorded mortgage repurchase liability, depending on the outcome of various factors, including those previously discussed. Activity in the mortgage repurchase liability was as follows: Three Months Ended March 31, 2022 2021 Balance, beginning of period $ 2,954 $ 9,699 Net recovery (213) (153) Loss on loan repurchases — (2,917) Balance, end of the period $ 2,741 $ 6,629 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include the results of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Due to the inherent uncertainty involved in making estimates, actual results reported in the future periods may be based upon amounts that could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The loan portfolio consists primarily of residential real estate loans, which are collateralized by real estate. At March 31, 2022 and December 31, 2021, residential real estate loans accounted for 84% and 83%, respectively, of total gross loans. In addition, most of these residential loans and other commercial loans have been made to individuals and businesses in the state of California, which are dependent on the area economy for their livelihoods and servicing of their loan obligation. At March 31, 2022 and December 31, 2021, approximately 85% of gross loans was originated with respect to properties or businesses located in the state of California. In March 2020, the Bank permanently discontinued its Advantage Loan program. Loans originated under this program comprised a significant component of the Bank’s total loan originations. Advantage Loan Program loans (including residential real estate loans held for sale of $10,262 and $11,359 at March 31, 2022 and December 31, 2021, respectively, of which $7,249 and $8,671 were on nonaccrual status at March 31, 2022 and December 31, 2021, respectively) totaled $1,058,794 and $1,185,458, or 67% and 69% of gross residential loans, at March 31, 2022 and December 31, 2021, respectively. Refer to Note 14—Commitments and Contingencies. |
Recently Issued Accounting Guidance Not Yet Adopted | Recently Issued Accounting Guidance Not Yet Adopted In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“2016-13”) In June 2016, the FASB issued ASU No. 2016-13, which is intended to improve financial reporting by requiring recording of credit losses on loans and other financial instruments on a more timely basis. The guidance will replace the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The guidance requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates At this time, a cross-functional implementation team consisting of individuals from accounting, finance, servicing and information systems is working with the Bank’s loan system vendor and consultants, and an application to create credit loss estimation models and processes has been developed. The historical data set for model development has been finalized, and the credit loss estimation models have been developed and tested. Once the credit loss estimation models have been finalized, the Bank will run the new credit loss estimation models in parallel with the current allowance for loan losses model to understand the differences in the models and assess the impact of the change. The Company expects to recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2023, the beginning of the first reporting period in which ASU No. 2016-13 is effective. The Company has not yet determined the magnitude of any such one-time cumulative adjustment or of the overall impact of ASU No. 2016-13 on its condensed consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investment Securities | |
Schedule of amortized cost and fair value of debt securities available for sale | March 31, 2022 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury and Agency securities $ 170,881 $ 40 $ (3,278) $ 167,643 Mortgage-backed securities 46,422 — (2,378) 44,044 Collateralized mortgage obligations 153,584 348 (6,448) 147,484 Collateralized debt obligations 210 — (6) 204 Total $ 371,097 $ 388 $ (12,110) $ 359,375 December 31, 2021 Amortized Gross Unrealized Fair Cost Gain Loss Value Available for sale: U.S. Treasury and Agency securities $ 122,291 $ 106 $ (229) $ 122,168 Mortgage-backed securities 49,739 84 (386) 49,437 Collateralized mortgage obligations 137,662 530 (1,343) 136,849 Collateralized debt obligations 211 — (8) 203 Total $ 309,903 $ 720 $ (1,966) $ 308,657 |
Schedule of amortized cost and fair value of debt securities available for sale, shown by contractual maturity | Amortized Fair Cost Value U.S. Treasury and Agency securities Due less than one year $ 50,200 $ 50,120 Due after one year through five years 120,681 117,523 Mortgage-backed securities 46,422 44,044 Collateralized mortgage obligations 153,584 147,484 Collateralized debt obligations 210 204 Total $ 371,097 $ 359,375 |
Schedule of debt securities available for sale, at fair value, continuous unrealized losses position | March 31, 2022 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S Treasury and Agency securities $ 119,602 $ (3,278) $ — $ — $ 119,602 $ (3,278) Mortgage-backed securities 36,413 (1,496) 7,631 (882) 44,044 (2,378) Collateralized mortgage obligations 102,154 (6,448) — — 102,154 (6,448) Collateralized debt obligations — — 204 (6) 204 (6) Total $ 258,169 $ (11,222) $ 7,835 $ (888) $ 266,004 $ (12,110) December 31, 2021 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S Treasury and Agency securities $ 49,865 $ (229) $ — $ — $ 49,865 $ (229) Mortgage-backed securities 7,878 (36) 8,729 (350) 16,607 (386) Collateralized mortgage obligations 86,354 (1,342) 2,413 (1) 88,767 (1,343) Collateralized debt obligations — — 203 (8) 203 (8) Total $ 144,097 $ (1,607) $ 11,345 $ (359) $ 155,442 $ (1,966) |
Schedule of equity securities with readily determinable fair values | Three Months Ended March 31, 2022 2021 Net losses recorded during the period on equity securities $ (236) $ (90) Less: net gains (losses) recorded during the period on equity securities sold during the period — — Unrealized losses recorded during the period on equity securities held at the reporting date $ (236) $ (90) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans | |
Schedule of major categories of loans | The major categories of loans held for sale were as follows: March 31, December 31, 2022 2021 Residential real estate $ 10,572 $ 11,359 Commercial real estate 1,658 53,628 Total loans held for sale $ 12,230 $ 64,987 The major categories of loans held for investment and the allowance for loan losses were as follows: March 31, December 31, 2022 2021 Residential real estate $ 1,580,759 $ 1,704,231 Commercial real estate 219,767 201,240 Construction 73,778 106,759 Commercial lines of credit 334 363 Other consumer 3 221 Total loans 1,874,641 2,012,814 Less: allowance for loan losses (52,455) (56,548) Loans, net $ 1,822,186 $ 1,956,266 |
Schedule of activity in allowance for loan losses and recorded investment by portfolio segment | The following tables present the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2022 and 2021: Commercial Residential Commercial Lines of Other Three Months Ended March 31, 2022 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Beginning balance $ 32,202 $ 12,608 $ 11,730 $ 8 $ — $ 56,548 Provision (recovery) for loan losses (2,481) 1,096 (2,902) (2) — (4,289) Recoveries 190 5 1 — — 196 Total ending balance $ 29,911 $ 13,709 $ 8,829 $ 6 $ — $ 52,455 Commercial Residential Commercial Lines of Other Three Months Ended March 31, 2021 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Beginning balance $ 32,366 $ 21,942 $ 17,988 $ 91 $ — $ 72,387 Provision (recovery) for loan losses 486 805 (2,023) (5) — (737) Recoveries 204 16 1 — — 221 Total ending balance $ 33,056 $ 22,763 $ 15,966 $ 86 $ — $ 71,871 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment by impairment methodology as of March 31, 2022 and December 31, 2021: Commercial Residential Commercial Lines of Other March 31, 2022 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 158 $ — $ — $ — $ — $ 158 Collectively evaluated for impairment 29,753 13,709 8,829 6 — 52,297 Total ending allowance balance $ 29,911 $ 13,709 $ 8,829 $ 6 $ — $ 52,455 Loans: Loans individually evaluated for impairment $ 345 $ — $ 8,375 $ 115 $ — $ 8,835 Loans collectively evaluated for impairment 1,580,414 219,767 65,403 219 3 1,865,806 Total ending loans balance $ 1,580,759 $ 219,767 $ 73,778 $ 334 $ 3 $ 1,874,641 Commercial Residential Commercial Lines of Other December 31, 2021 Real Estate Real Estate Construction Credit Consumer Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 159 $ — $ — $ — $ — $ 159 Collectively evaluated for impairment 32,043 12,608 11,730 8 — 56,389 Total ending allowance balance $ 32,202 $ 12,608 $ 11,730 $ 8 $ — $ 56,548 Loans: Loans individually evaluated for impairment $ 350 $ 4,441 $ 14,984 $ 116 $ — $ 19,891 Loans collectively evaluated for impairment 1,703,881 196,799 91,775 247 221 1,992,923 Total ending loans balance $ 1,704,231 $ 201,240 $ 106,759 $ 363 $ 221 $ 2,012,814 |
Schedule of information related to impaired loans by class of loans | At March 31, 2022 At December 31, 2021 Unpaid Allowance Unpaid Allowance Principal Recorded for Loan Principal Recorded for Loan Balance Investment Losses Balance Investment Losses With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 87 $ 61 $ — $ 91 $ 65 $ — Commercial real estate: Hotels/Single-room occupancy hotels — — — 4,459 4,441 — Construction 10,343 8,375 — 15,004 14,984 — Commercial lines of credit, Private banking 115 115 — 116 116 — Subtotal 10,545 8,551 — 19,670 19,606 — With an allowance for loan losses recorded: Residential real estate, first mortgage 272 284 158 273 285 159 Total $ 10,817 $ 8,835 $ 158 $ 19,943 $ 19,891 $ 159 Three Months Ended March 31, 2022 2021 Average Interest Cash Basis Average Interest Cash Basis Recorded Income Interest Recorded Income Interest Investment Recognized Recognized Investment Recognized Recognized With no related allowance for loan losses recorded: Residential real estate, first mortgage $ 63 $ — $ — $ 93 $ — $ — Commercial real estate: Retail — — — 1,023 — — Hotels/Single-room occupancy hotels — — — 18,005 — — Construction 8,395 39 25 34,274 123 80 Commercial lines of credit, Private banking 115 2 1 2,285 — — Subtotal 8,573 41 26 55,680 123 80 With an allowance for loan losses recorded: Residential real estate, first mortgage 285 1 — 115 — — Construction — — — 7,174 — — Commercial lines of credit, Private banking — — — 124 2 1 Subtotal 285 1 — 7,413 2 1 Total $ 8,858 $ 42 $ 26 $ 63,093 $ 125 $ 81 |
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans and aging of the recorded investment in past due loans | The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual, excluding nonaccrual loans held for sale, by class of loans as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 Loans Past Loans Past Due Over Due Over 90 Days Still 90 Days Still Nonaccrual Accruing Nonaccrual Accruing Residential real estate: Residential first mortgage $ 38,064 $ 38 $ 45,439 $ 39 Residential second mortgage 236 — 236 — Commercial real estate: Hotels/Single-room occupancy hotels — — 4,441 — Construction 5,891 — 12,499 — Total $ 44,191 $ 38 $ 62,615 $ 39 The following tables present the aging of the recorded investment in past due loans as of March 31, 2022 and December 31, 2021 by class of loans: Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not March 31, 2022 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 19,577 $ 6,725 $ 38,102 $ 64,404 $ 1,503,375 $ 1,567,779 Residential second mortgage — — 236 236 12,744 12,980 Commercial real estate: Retail — — — — 37,737 37,737 Multifamily 3,610 — — 3,610 95,062 98,672 Office — — — — 12,267 12,267 Hotels/ Single-room occupancy hotels — — — — 15,614 15,614 Industrial — — — — 11,511 11,511 Other — — — — 43,966 43,966 Construction — — 5,891 5,891 67,887 73,778 Commercial lines of credit: Private banking — — — — 115 115 C&I lending — — — — 219 219 Other consumer — — — — 3 3 Total $ 23,187 $ 6,725 $ 44,229 $ 74,141 $ 1,800,500 $ 1,874,641 Greater 30 - 59 60 - 89 than Days Days 89 Days Total Loans Not December 31, 2021 Past Due Past Due Past Due Past Due Past Due Total Residential real estate: Residential first mortgage $ 24,044 $ 3,425 $ 45,478 $ 72,947 $ 1,617,509 $ 1,690,456 Residential second mortgage 107 — 236 343 13,432 13,775 Commercial real estate: Retail — — — — 19,574 19,574 Multifamily — — — — 96,960 96,960 Office — — — — 12,382 12,382 Hotels/Single-room occupancy hotels — — 4,441 4,441 9,780 14,221 Industrial — — — — 7,320 7,320 Other — — — — 50,783 50,783 Construction 10,500 — 12,499 22,999 83,760 106,759 Commercial lines of credit: Private banking — — — — 116 116 C&I lending — — — — 247 247 Other consumer — — — — 221 221 Total $ 34,651 $ 3,425 $ 62,654 $ 100,730 $ 1,912,084 $ 2,012,814 |
Schedule of troubled debt restructurings | March 31, 2022 December 31, 2021 Recorded Allowance for Recorded Allowance for Investment Loan Losses Investment Loan Losses Residential real estate, first mortgage $ 174 $ 38 $ 181 $ 39 Commercial real estate: Hotels/Single-room occupancy hotels — — 4,441 — Construction 8,375 — 13,678 — Commercial lines of credit, private banking 115 — 116 — Total $ 8,664 $ 38 $ 18,416 $ 39 |
Schedule of risk rating of loans by class of loans | At March 31, 2022 and December 31, 2021, the risk rating of loans by class of loans was as follows: Special March 31, 2022 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 1,529,677 $ — $ 37,871 $ 231 $ 1,567,779 Residential second mortgage 12,744 — 236 — 12,980 Commercial real estate: Retail 37,737 — — — 37,737 Multifamily 77,654 11,531 9,487 — 98,672 Office 10,318 — 1,949 — 12,267 Hotels/ Single-room occupancy hotels 8,158 5,890 1,566 — 15,614 Industrial 11,511 — — — 11,511 Other 42,418 1,548 — — 43,966 Construction 53,874 3,751 16,153 — 73,778 Commercial lines of credit: Private banking 115 — — — 115 C&I lending 219 — — — 219 Other consumer 3 — — — 3 Total $ 1,784,428 $ 22,720 $ 67,262 $ 231 $ 1,874,641 Special December 31, 2021 Pass Mention Substandard Doubtful Total Residential real estate: Residential first mortgage $ 1,644,974 $ — $ 45,249 $ 233 $ 1,690,456 Residential second mortgage 13,539 — 236 — 13,775 Commercial real estate: Retail 18,846 728 — — 19,574 Multifamily 75,543 8,104 13,313 — 96,960 Office 10,413 — 1,969 — 12,382 Hotels/ Single-room occupancy hotels 8,205 — 6,016 — 14,221 Industrial 7,320 — — — 7,320 Other 48,996 1,692 95 — 50,783 Construction 67,254 17,226 16,348 5,931 106,759 Commercial lines of credit: Private banking 116 — — — 116 C&I lending 236 11 — — 247 Other consumer 221 — — — 221 Total $ 1,895,663 $ 27,761 $ 83,226 $ 6,164 $ 2,012,814 |
Mortgage Servicing Rights, net
Mortgage Servicing Rights, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Servicing Rights, net | |
Schedule of principal balance of mortgage loans serviced for others | March 31, December 31, 2022 2021 Residential real estate mortgage loan portfolios serviced for: FNMA $ 120,105 $ 124,764 FHLB 38,296 40,209 Private investors 129,008 142,810 Total $ 287,409 $ 307,783 |
Schedule of activity for mortgage servicing rights and related valuation allowance | Three Months Ended March 31, 2022 2021 Mortgage servicing rights: Beginning of period $ 3,332 $ 7,853 Additions 9 74 Amortization (253) (2,072) End of period 3,088 5,855 Valuation allowance: Beginning of period 610 2,165 Additions (recoveries) (410) (936) End of period 200 1,229 Mortgage servicing rights, net $ 2,888 $ 4,626 |
FHLB Borrowings (Tables)
FHLB Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
FHLB Borrowings | |
Schedule of FHLB borrowings | FHLB borrowings at March 31, 2022 and December 31, 2021 consist of the following: March 31, December 31, 2022 Interest Rates 2021 Interest Rates Long-term fixed rate advances $ 150,000 0.43% - 1.96 % $ 150,000 0.43% - 1.96 % |
Subordinated Notes, net (Tables
Subordinated Notes, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Subordinated Notes, net | |
Schedule of subordinated notes | March 31, December 31, 2022 2021 Subordinated notes $ 65,000 $ 65,000 Unamortized note premium 326 343 Total $ 65,326 $ 65,343 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock-based Compensation | |
Summary of the company's stock option activity | Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic of Shares Price Term Value (Years) Outstanding at January 1, 2022 367,767 $ 5.41 8.13 $ 525 Granted — Exercised — Forfeited/expired (18,222) 9.67 Outstanding at March 31, 2022 349,545 $ 5.19 7.93 $ 930 Exercisable at March 31, 2022 344,356 $ 5.14 7.93 $ 930 |
Summary of the company's restricted stock awards activity | Weighted Average Number Grant Date of Shares Fair Value Nonvested at January 1, 2022 293,637 $ 5.81 Granted 53,681 5.75 Vested (54,437) 7.27 Forfeited (4,397) 6.94 Nonvested at March 31, 2022 288,484 $ 5.51 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Capital Requirements | |
Schedule of actual and minimum required capital amounts and ratios | For Capital To be Well Actual Adequacy Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio March 31, 2022 Total adjusted capital to risk-weighted assets Consolidated $ 441,402 23.21 % $ 141,832 8.00 % N/A N/A Bank 412,395 23.29 141,649 8.00 $ 177,061 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 349,671 19.72 106,374 6.00 N/A N/A Bank 389,875 22.02 106,236 6.00 141,649 8.00 Common Equity Tier 1 (CET1) Consolidated 349,671 19.72 79,780 4.50 N/A N/A Bank 389,875 22.02 79,677 4.50 115,089 6.50 Tier 1 (core) capital to adjusted tangible assets (leverage ratio) Consolidated 349,671 12.23 114,339 4.00 N/A N/A Bank 389,875 13.65 114,261 4.00 142,827 5.00 For Capital To be Well Actual Adequacy Purposes Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2021 Total adjusted capital to risk-weighted assets Consolidated $ 414,870 29.02 % $ 113,951 8.00 % N/A N/A Bank 400,836 28.07 113,868 8.00 $ 142,335 10.00 % Tier 1 (core) capital to risk-weighted assets Consolidated 344,247 24.08 85,463 6.00 N/A N/A Bank 382,509 26.79 85,401 6.00 113,868 8.00 Common Equity Tier 1 (CET1) Consolidated 344,247 24.08 64,097 4.50 N/A N/A Bank 382,509 26.79 64,051 4.50 92,518 6.50 Tier 1 (core) capital to adjusted tangible assets (leverage ratio) Consolidated 344,247 11.47 120,039 4.00 N/A N/A Bank 382,509 12.77 119,859 4.00 149,824 5.00 |
Income Per Share (Tables)
Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Per Share | |
Schedule of computation of income (loss) per share, basic and diluted | Three Months Ended March 31, 2022 2021 Numerator: Net income $ 5,260 $ 2,325 Denominator: Weighted average common shares outstanding, basic 50,191,288 49,851,202 Weighted average effect of potentially dilutive common shares: Stock options 108,203 49,790 Restricted stock 106,632 11,868 Weighted average common shares outstanding, diluted 50,406,123 49,912,860 Income per share: Basic $ 0.10 $ 0.05 Diluted $ 0.10 $ 0.05 |
Schedule of anti-dilutive shares that were excluded from the computation of weighted average diluted shares outstanding | Three Months Ended March 31, 2022 2021 Stock options 49,545 74,882 Restricted stock — 64,647 Total 49,545 139,529 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Values of Financial Instruments | |
Schedule of assets measured at fair value on a recurring basis categorized by level of inputs | Fair Value Measurements at March 31, 2022 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available-for-sale debt securities: U.S. Treasury and Agency securities $ 167,643 $ 94,492 $ 73,151 $ — Mortgage-backed securities 44,044 — 44,044 — Collateralized mortgage obligations 147,484 — 147,484 — Collateralized debt obligations 204 — — 204 Equity securities 4,740 4,740 — — Fair Value Measurements at December 31, 2021 Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Financial Assets Available-for-sale debt securities: U.S. Treasury and Agency securities $ 122,168 $ 48,827 $ 73,341 $ — Mortgage-backed securities 49,437 — 49,437 — Collateralized mortgage obligations 136,849 — 136,849 — Collateralized debt obligations 203 — — 203 Equity securities 4,976 4,976 — — |
Summary of reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Collateralized Debt Obligations Three Months Ended March 31, 2022 2021 Balance of recurring Level 3 assets at beginning of period $ 203 $ 187 Total gains or losses (realized/unrealized): Included in income-realized — — Included in other comprehensive income (loss) 2 7 Principal maturities/settlements (1) (1) Sales — — Transfers in and/or out of Level 3 — — Balance of recurring Level 3 assets at end of period $ 204 $ 193 |
Schedule of assets measured at fair value on a nonrecurring basis categorized by level of inputs | Fair Value Measurements at March 31, 2022 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans: Residential real estate $ 88 $ — $ — $ 88 Mortgage servicing rights 1,470 — — 1,470 Fair Value Measurements at December 31, 2021 Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) Impaired loans: Residential real estate $ 86 $ — $ — $ 86 Commercial real estate loans held for sale 53,628 — 53,628 — Mortgage servicing rights 2,052 — — 2,052 |
Schedule of quantitative information about nonrecurring Level 3 fair value measurements | Quantitative Information about Level 3 Fair Value Measurements at March 31, 2022 Range Fair Value Valuation Technique Unobservable Inputs (Weighted Average) (1) Impaired loans: Residential real estate $ 88 Sales comparison approach Adjustments for differences between the comparable sales N/A Mortgage servicing rights $ 1,470 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 8.2% - 28% Default rate 0.1% - 0.2% (1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment . Quantitative Information about Level 3 Fair Value Measurements at December 31, 2021 Valuation Range Fair Value Technique Unobservable Inputs (Weighted Average) (1) Impaired loans: Residential real estate $ 86 Sales comparison approach Adjustments for differences between the comparable sales N/A Mortgage servicing rights $ 2,052 Discounted cash flow Discount rate 9.5% - 12.0% Prepayment speed 10.5% - 37.1% Default rate 0.1% - 0.2% (1) The range and weighted average for an asset category consisting of a single investment represents the significant unobservable input used in the fair value of the investment. |
Schedule of carrying amounts and estimated fair values of financial instruments not carried at fair value | Fair Value Measurements at March 31, 2022 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 486,743 $ 486,743 $ 486,743 $ — $ — Interest-bearing time deposits with other banks 1,183 1,183 1,183 — — Loans held for sale 12,230 12,681 — 12,681 — Loans, net (1) 1,822,098 1,827,208 — — 1,827,208 Financial Liabilities Time deposits 815,784 816,758 — 816,758 — Federal Home Loan Bank borrowings 150,000 149,990 — 149,990 — Subordinated notes, net 65,326 65,056 — 65,056 — (1) Excludes impaired loans measured at fair value on a nonrecurring basis at March 31, 2022. Fair Value Measurements at December 31, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and due from banks $ 411,676 $ 411,676 $ 411,676 $ — $ — Interest-bearing time deposits with other banks 1,183 1,183 1,183 — — Loans held for sale 11,359 11,809 — 11,809 — Loans, net (1) 1,956,180 2,025,409 — — 2,025,409 Financial Liabilities Time deposits 891,820 894,049 — 894,049 — Federal Home Loan Bank borrowings 150,000 152,560 — 152,560 — Subordinated notes, net 65,343 65,073 — 65,073 — (1) . |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Summary of total amount of unfunded commitments to extend credit and standby letters of credit outstanding | March 31, December 31, 2022 2021 Commitments to make loans $ 19,869 $ 23,610 Unused lines of credit 39,789 45,805 Standby letters of credit 24 24 |
Schedule of Advantage Loan Program loans to be repurchased by date range | Outstanding Principal Balance at Repurchase Date Range March 31, 2022 Present – February 28, 2023 $ 12,757 May 21, 2022 – May 21, 2023 12,760 July 25, 2022 – July 25, 2023 16,140 Present – July 22, 2023 24,777 $ 66,434 |
Schedule of activity in the mortgage repurchase liability | Three Months Ended March 31, 2022 2021 Balance, beginning of period $ 2,954 $ 9,699 Net recovery (213) (153) Loss on loan repurchases — (2,917) Balance, end of the period $ 2,741 $ 6,629 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2022itemsegment | |
Nature of Operations and Basis of Presentation | |
Number of branches | 28 |
Number of reportable segments | segment | 1 |
San Francisco and Los Angeles, California | |
Nature of Operations and Basis of Presentation | |
Number of branches | 26 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Concentration of Credit Risk | ||
Loans Receivable | $ 1,874,641 | $ 2,012,814 |
Loans held for sale | 12,230 | 64,987 |
Nonaccrual loans held for sale | 7,249 | 18,026 |
Residential real estate | ||
Concentration of Credit Risk | ||
Loans Receivable | $ 1,580,759 | 1,704,231 |
Nonaccrual loans held for sale | $ 8,671 | |
Residential real estate loans | Loans receivables | Residential real estate | ||
Concentration of Credit Risk | ||
Concentration of credit risk | 84.00% | 83.00% |
California | Loans receivables | Residential real estate | ||
Concentration of Credit Risk | ||
Concentration of credit risk | 85.00% | 85.00% |
Advantage loan program | Loans receivables | Residential real estate | ||
Concentration of Credit Risk | ||
Concentration of credit risk | 67.00% | 69.00% |
Loans Receivable | $ 1,058,794 | $ 1,185,458 |
Loans held for sale | 10,262 | 11,359 |
Nonaccrual loans held for sale | $ 7,249 | $ 8,671 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Available for sale: | ||
Available for sale, Amortized Cost | $ 371,097 | $ 309,903 |
Available for sale, Gross Unrealized Gain | 388 | 720 |
Available for sale, Gross Unrealized Loss | (12,110) | (1,966) |
Investment securities available for sale, at fair value | 359,375 | $ 308,657 |
Carrying value of debt securities held of any single issuer in excess of 10% of shareholders equity | $ 0 | |
Threshold percentage of total shareholders' equity above which securities of any single issuer exceed | 10.00% | 10.00% |
Securities pledged as collateral on FHLB borrowings | $ 519,498 | $ 557,410 |
Collateralized mortgage obligations | US Government Corporations and Agencies Securities | ||
Available for sale: | ||
Investment securities available for sale, at fair value | 480 | 529 |
Debt securities | ||
Available for sale: | ||
Securities pledged as collateral on FHLB borrowings | 119,588 | |
U.S. Treasury and Agency securities | ||
Available for sale: | ||
Available for sale, Amortized Cost | 170,881 | 122,291 |
Available for sale, Gross Unrealized Gain | 40 | 106 |
Available for sale, Gross Unrealized Loss | (3,278) | (229) |
Investment securities available for sale, at fair value | 167,643 | 122,168 |
Mortgage-backed securities | ||
Available for sale: | ||
Available for sale, Amortized Cost | 46,422 | 49,739 |
Available for sale, Gross Unrealized Gain | 84 | |
Available for sale, Gross Unrealized Loss | (2,378) | (386) |
Investment securities available for sale, at fair value | 44,044 | 49,437 |
Collateralized mortgage obligations | ||
Available for sale: | ||
Available for sale, Amortized Cost | 153,584 | 137,662 |
Available for sale, Gross Unrealized Gain | 348 | 530 |
Available for sale, Gross Unrealized Loss | (6,448) | (1,343) |
Investment securities available for sale, at fair value | 147,484 | 136,849 |
Collateralized debt obligations | ||
Available for sale: | ||
Available for sale, Amortized Cost | 210 | 211 |
Available for sale, Gross Unrealized Loss | (6) | (8) |
Investment securities available for sale, at fair value | $ 204 | $ 203 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value By Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale, Amortized Cost | ||
Available for sale, Amortized Cost | $ 371,097 | $ 309,903 |
Available for sale, Fair Value | ||
Available for sale, Fair Value | 359,375 | 308,657 |
U.S. Treasury and Agency securities | ||
Available for sale, Amortized Cost | ||
Due less than one year | 50,200 | |
Due after one year through five years | 120,681 | |
Available for sale, Amortized Cost | 170,881 | 122,291 |
Available for sale, Fair Value | ||
Due less than one year | 50,120 | |
Due after one year through five years | 117,523 | |
Available for sale, Fair Value | 167,643 | 122,168 |
Mortgage-backed securities | ||
Available for sale, Amortized Cost | ||
Available for sale, Amortized Cost | 46,422 | 49,739 |
Available for sale, Fair Value | ||
Available for sale, Fair Value | 44,044 | 49,437 |
Collateralized mortgage obligations | ||
Available for sale, Amortized Cost | ||
Available for sale, Amortized Cost | 153,584 | 137,662 |
Available for sale, Fair Value | ||
Available for sale, Fair Value | 147,484 | 136,849 |
Collateralized debt obligations | ||
Available for sale, Amortized Cost | ||
Available for sale, Amortized Cost | 210 | 211 |
Available for sale, Fair Value | ||
Available for sale, Fair Value | $ 204 | $ 203 |
Investment Securities - Aggrega
Investment Securities - Aggregated by Major Security Type and Length of Time in a Continuous Unrealized Loss Position (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($) | |
Fair Value | ||
Less than 12 Months, Fair value | $ 258,169 | $ 144,097 |
12 Months or More, Fair Value | 7,835 | 11,345 |
Available for sale, Continuous unrealized loss position, Fair Value | 266,004 | 155,442 |
Unrealized Losses | ||
Less than 12 Months, Unrealized Losses | (11,222) | (1,607) |
12 Months or More, Unrealized Losses | (888) | (359) |
Available for sale, Continuous unrealized loss position, Unrealized Losses | $ (12,110) | (1,966) |
Number of debt securities in portfolio | security | 31 | |
Number of debt securities in an unrealized loss position | security | 22 | |
U.S. Treasury and Agency securities | ||
Fair Value | ||
Less than 12 Months, Fair value | $ 119,602 | 49,865 |
Available for sale, Continuous unrealized loss position, Fair Value | 119,602 | 49,865 |
Unrealized Losses | ||
Less than 12 Months, Unrealized Losses | (3,278) | (229) |
Available for sale, Continuous unrealized loss position, Unrealized Losses | (3,278) | (229) |
Mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months, Fair value | 36,413 | 7,878 |
12 Months or More, Fair Value | 7,631 | 8,729 |
Available for sale, Continuous unrealized loss position, Fair Value | 44,044 | 16,607 |
Unrealized Losses | ||
Less than 12 Months, Unrealized Losses | (1,496) | (36) |
12 Months or More, Unrealized Losses | (882) | (350) |
Available for sale, Continuous unrealized loss position, Unrealized Losses | (2,378) | (386) |
Collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months, Fair value | 102,154 | 86,354 |
12 Months or More, Fair Value | 2,413 | |
Available for sale, Continuous unrealized loss position, Fair Value | 102,154 | 88,767 |
Unrealized Losses | ||
Less than 12 Months, Unrealized Losses | (6,448) | (1,342) |
12 Months or More, Unrealized Losses | (1) | |
Available for sale, Continuous unrealized loss position, Unrealized Losses | (6,448) | (1,343) |
Collateralized debt obligations | ||
Fair Value | ||
12 Months or More, Fair Value | 204 | 203 |
Available for sale, Continuous unrealized loss position, Fair Value | 204 | 203 |
Unrealized Losses | ||
12 Months or More, Unrealized Losses | (6) | (8) |
Available for sale, Continuous unrealized loss position, Unrealized Losses | $ (6) | $ (8) |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Equity Securities | |||
Fair value of equity securities | $ 4,986 | $ 5,222 | |
Equity securities with readily determinable fair values | 4,740 | 4,976 | |
Equity securities with readily determinable fair values | |||
Net losses recorded during the period on equity securities | (236) | $ (90) | |
Unrealized losses recorded during the period on equity securities held at the reporting date | (236) | $ (90) | |
Level 3 | |||
Equity Securities | |||
Investment in equity securities without readily determinable fair value | $ 246 | $ 246 |
Loans - Major Categories of Loa
Loans - Major Categories of Loans Held for Sale (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Feb. 28, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Major categories of loans | |||
Total loans held for sale | $ 12,230 | $ 64,987 | |
Nonaccrual loans held for sale | 7,249 | 18,026 | |
Modified troubled debt restructuring | 8,664 | 18,416 | |
Residential real estate | |||
Major categories of loans | |||
Total loans held for sale | 10,572 | 11,359 | |
Nonaccrual loans held for sale | 8,671 | ||
Nonaccrual residential real estate loans | |||
Major categories of loans | |||
Modified troubled debt restructuring | 2,059 | ||
Commercial real estate, retail | |||
Major categories of loans | |||
Total loans held for sale | $ 1,658 | 53,628 | |
Nonaccrual loans held for sale | $ 9,355 | ||
Proceeds from sale of loans held for sale | $ 49,610 | ||
Loans carrying value on date of sale | $ 49,455 |
Loans - Major Categories of L_2
Loans - Major Categories of Loans Held for Investment and the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Major categories of loans held for investment and the allowance for loan losses | ||||
Total ending loans balance | $ 1,874,641 | $ 2,012,814 | ||
Less: allowance for loan losses | (52,455) | (56,548) | $ (71,871) | $ (72,387) |
Loans, net | 1,822,186 | 1,956,266 | ||
Carrying value of loans pledged as collateral on FHLB borrowings | 519,498 | 557,410 | ||
Residential real estate | ||||
Major categories of loans held for investment and the allowance for loan losses | ||||
Total ending loans balance | 1,580,759 | 1,704,231 | ||
Less: allowance for loan losses | (29,911) | (32,202) | (33,056) | (32,366) |
Loans, net | 220,790 | 237,049 | ||
Commercial real estate, retail | ||||
Major categories of loans held for investment and the allowance for loan losses | ||||
Total ending loans balance | 219,767 | 201,240 | ||
Less: allowance for loan losses | (13,709) | (12,608) | (22,763) | (21,942) |
Construction | ||||
Major categories of loans held for investment and the allowance for loan losses | ||||
Total ending loans balance | 73,778 | 106,759 | ||
Less: allowance for loan losses | (8,829) | (11,730) | (15,966) | (17,988) |
Commercial lines of credit | ||||
Major categories of loans held for investment and the allowance for loan losses | ||||
Total ending loans balance | 334 | 363 | ||
Less: allowance for loan losses | (6) | (8) | $ (86) | $ (91) |
Other consumer | ||||
Major categories of loans held for investment and the allowance for loan losses | ||||
Total ending loans balance | $ 3 | $ 221 |
Loans - Activity in the Allowan
Loans - Activity in the Allowance For Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for loan losses | ||
Beginning balance | $ 56,548 | $ 72,387 |
Provision (recovery) for loan losses | (4,289) | (737) |
Recoveries | 196 | 221 |
Total ending balance | 52,455 | 71,871 |
Residential real estate | ||
Allowance for loan losses | ||
Beginning balance | 32,202 | 32,366 |
Provision (recovery) for loan losses | (2,481) | 486 |
Recoveries | 190 | 204 |
Total ending balance | 29,911 | 33,056 |
Commercial real estate, retail | ||
Allowance for loan losses | ||
Beginning balance | 12,608 | 21,942 |
Provision (recovery) for loan losses | 1,096 | 805 |
Recoveries | 5 | 16 |
Total ending balance | 13,709 | 22,763 |
Construction | ||
Allowance for loan losses | ||
Beginning balance | 11,730 | 17,988 |
Provision (recovery) for loan losses | (2,902) | (2,023) |
Recoveries | 1 | 1 |
Total ending balance | 8,829 | 15,966 |
Commercial lines of credit | ||
Allowance for loan losses | ||
Beginning balance | 8 | 91 |
Provision (recovery) for loan losses | (2) | (5) |
Total ending balance | $ 6 | $ 86 |
Loans - Activity in the Allow_2
Loans - Activity in the Allowance For Loan Losses by Portfolio Segment And Based On Impairment Evaluation Method (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 158 | $ 159 | ||
Collectively evaluated for impairment | 52,297 | 56,389 | ||
Total ending allowance balance | 52,455 | 56,548 | $ 71,871 | $ 72,387 |
Loans: | ||||
Loans individually evaluated for impairment | 8,835 | 19,891 | ||
Loans collectively evaluated for impairment | 1,865,806 | 1,992,923 | ||
Total ending loans balance | 1,874,641 | 2,012,814 | ||
Residential real estate | ||||
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 158 | 159 | ||
Collectively evaluated for impairment | 29,753 | 32,043 | ||
Total ending allowance balance | 29,911 | 32,202 | 33,056 | 32,366 |
Loans: | ||||
Loans individually evaluated for impairment | 345 | 350 | ||
Loans collectively evaluated for impairment | 1,580,414 | 1,703,881 | ||
Total ending loans balance | 1,580,759 | 1,704,231 | ||
Commercial real estate, retail | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 13,709 | 12,608 | ||
Total ending allowance balance | 13,709 | 12,608 | 22,763 | 21,942 |
Loans: | ||||
Loans individually evaluated for impairment | 4,441 | |||
Loans collectively evaluated for impairment | 219,767 | 196,799 | ||
Total ending loans balance | 219,767 | 201,240 | ||
Construction | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 8,829 | 11,730 | ||
Total ending allowance balance | 8,829 | 11,730 | 15,966 | 17,988 |
Loans: | ||||
Loans individually evaluated for impairment | 8,375 | 14,984 | ||
Loans collectively evaluated for impairment | 65,403 | 91,775 | ||
Total ending loans balance | 73,778 | 106,759 | ||
Commercial lines of credit | ||||
Ending allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 6 | 8 | ||
Total ending allowance balance | 6 | 8 | $ 86 | $ 91 |
Loans: | ||||
Loans individually evaluated for impairment | 115 | 116 | ||
Loans collectively evaluated for impairment | 219 | 247 | ||
Total ending loans balance | 334 | 363 | ||
Other consumer | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 3 | 221 | ||
Total ending loans balance | $ 3 | $ 221 |
Loans - Impaired Loans by Class
Loans - Impaired Loans by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Impaired loans by class of loans | |||
Unpaid principal balance, with no related allowance for loan losses recorded | $ 10,545 | $ 19,670 | |
Total Unpaid Principal Balance | 10,817 | 19,943 | |
Recorded investment, with no related allowance for loan losses recorded | 8,551 | 19,606 | |
Total Recorded Investment | 8,835 | 19,891 | |
Allowance for Loan Losses | 158 | 159 | |
Average recorded investment, with no related allowance for loan losses recorded | 8,573 | $ 55,680 | |
Average recorded investment, with an allowance for loan losses recorded | 285 | 7,413 | |
Total Average Recorded Investment | 8,858 | 63,093 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 41 | 123 | |
Interest Income Recognized, with an allowance for loan losses recorded | 1 | 2 | |
Total Interest Income Recognized | 42 | 125 | |
Cash Basis Interest Recognized, with no related allowance for loan losses recorded | 26 | 80 | |
Cash Basis Interest Recognized, with an allowance for loan losses recorded | 1 | ||
Total Cash Basis Interest Recognized | 26 | 81 | |
Residential real estate | Real estate loan, first mortgage | |||
Impaired loans by class of loans | |||
Unpaid principal balance, with no related allowance for loan losses recorded | 87 | 91 | |
Unpaid principal balance, with an allowance for loan losses recorded | 272 | 273 | |
Recorded investment, with no related allowance for loan losses recorded | 61 | 65 | |
Recorded investment, with an allowance for loan losses recorded | 284 | 285 | |
Allowance for Loan Losses | 158 | 159 | |
Average recorded investment, with no related allowance for loan losses recorded | 63 | 93 | |
Average recorded investment, with an allowance for loan losses recorded | 285 | 115 | |
Interest Income Recognized, with an allowance for loan losses recorded | 1 | ||
Commercial real estate, retail | Real estate loan, Retail | |||
Impaired loans by class of loans | |||
Average recorded investment, with no related allowance for loan losses recorded | 1,023 | ||
Commercial real estate, retail | Hotels/Single-room occupancy hotels | |||
Impaired loans by class of loans | |||
Unpaid principal balance, with no related allowance for loan losses recorded | 4,459 | ||
Recorded investment, with no related allowance for loan losses recorded | 4,441 | ||
Average recorded investment, with no related allowance for loan losses recorded | 18,005 | ||
Construction | |||
Impaired loans by class of loans | |||
Unpaid principal balance, with no related allowance for loan losses recorded | 10,343 | 15,004 | |
Recorded investment, with no related allowance for loan losses recorded | 8,375 | 14,984 | |
Average recorded investment, with no related allowance for loan losses recorded | 8,395 | 34,274 | |
Average recorded investment, with an allowance for loan losses recorded | 7,174 | ||
Interest Income Recognized, with no related allowance for loan losses recorded | 39 | 123 | |
Cash Basis Interest Recognized, with no related allowance for loan losses recorded | 25 | 80 | |
Commercial lines of credit | Private banking | |||
Impaired loans by class of loans | |||
Unpaid principal balance, with no related allowance for loan losses recorded | 115 | 116 | |
Recorded investment, with no related allowance for loan losses recorded | 115 | $ 116 | |
Average recorded investment, with no related allowance for loan losses recorded | 115 | 2,285 | |
Average recorded investment, with an allowance for loan losses recorded | 124 | ||
Interest Income Recognized, with no related allowance for loan losses recorded | 2 | ||
Interest Income Recognized, with an allowance for loan losses recorded | 2 | ||
Cash Basis Interest Recognized, with no related allowance for loan losses recorded | $ 1 | ||
Cash Basis Interest Recognized, with an allowance for loan losses recorded | $ 1 |
Loans - Investment in Nonaccrua
Loans - Investment in Nonaccrual and Loans Past Due Still Accruing by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Nonaccrual | $ 44,191 | $ 62,615 |
Loans Past Due Over 90 Days Still Accruing | 38 | 39 |
Total | 1,874,641 | 2,012,814 |
Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 1,800,500 | 1,912,084 |
Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 74,141 | 100,730 |
30 - 59 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 23,187 | 34,651 |
60 - 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 6,725 | 3,425 |
Greater than 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 44,229 | 62,654 |
Real estate loan, Other | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 43,966 | |
Real estate loan, Other | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 43,966 | |
Residential real estate | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 1,580,759 | 1,704,231 |
Residential real estate | Real estate loan, first mortgage | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Nonaccrual | 38,064 | 45,439 |
Loans Past Due Over 90 Days Still Accruing | 38 | 39 |
Total | 1,567,779 | 1,690,456 |
Residential real estate | Real estate loan, first mortgage | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 1,503,375 | 1,617,509 |
Residential real estate | Real estate loan, first mortgage | Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 64,404 | 72,947 |
Residential real estate | Real estate loan, first mortgage | 30 - 59 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 19,577 | 24,044 |
Residential real estate | Real estate loan, first mortgage | 60 - 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 6,725 | 3,425 |
Residential real estate | Real estate loan, first mortgage | Greater than 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 38,102 | 45,478 |
Residential real estate | Real estate loan, second mortgage | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Nonaccrual | 236 | 236 |
Total | 12,980 | 13,775 |
Residential real estate | Real estate loan, second mortgage | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 12,744 | 13,432 |
Residential real estate | Real estate loan, second mortgage | Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 236 | 343 |
Residential real estate | Real estate loan, second mortgage | 30 - 59 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 107 | |
Residential real estate | Real estate loan, second mortgage | Greater than 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 236 | 236 |
Commercial real estate, retail | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 219,767 | 201,240 |
Commercial real estate, retail | Real estate loan, Retail | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 37,737 | 19,574 |
Commercial real estate, retail | Real estate loan, Retail | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 37,737 | 19,574 |
Commercial real estate, retail | Real estate loan, Multifamily | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 98,672 | 96,960 |
Commercial real estate, retail | Real estate loan, Multifamily | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 95,062 | 96,960 |
Commercial real estate, retail | Real estate loan, Multifamily | Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 3,610 | |
Commercial real estate, retail | Real estate loan, Multifamily | 30 - 59 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 3,610 | |
Commercial real estate, retail | Real estate loan, Offices | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 12,267 | 12,382 |
Commercial real estate, retail | Real estate loan, Offices | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 12,267 | 12,382 |
Commercial real estate, retail | Hotels/Single-room occupancy hotels | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Nonaccrual | 4,441 | |
Total | 15,614 | 14,221 |
Commercial real estate, retail | Hotels/Single-room occupancy hotels | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 15,614 | 9,780 |
Commercial real estate, retail | Hotels/Single-room occupancy hotels | Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 4,441 | |
Commercial real estate, retail | Hotels/Single-room occupancy hotels | Greater than 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 4,441 | |
Commercial real estate, retail | Real estate loan, Industrial | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 11,511 | 7,320 |
Commercial real estate, retail | Real estate loan, Industrial | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 11,511 | 7,320 |
Commercial real estate, retail | Real estate loan, Other | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 43,966 | 50,783 |
Commercial real estate, retail | Real estate loan, Other | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 50,783 | |
Construction | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Nonaccrual | 5,891 | 12,499 |
Total | 73,778 | 106,759 |
Construction | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 67,887 | 83,760 |
Construction | Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 5,891 | 22,999 |
Construction | 30 - 59 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 10,500 | |
Construction | Greater than 89 Days Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 5,891 | 12,499 |
Commercial lines of credit | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 334 | 363 |
Commercial lines of credit | Private banking | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 115 | 116 |
Commercial lines of credit | Private banking | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 115 | 116 |
Commercial lines of credit | C&I lending | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 219 | 247 |
Commercial lines of credit | C&I lending | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 219 | 247 |
Other consumer | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | 3 | 221 |
Other consumer | Not Past Due | ||
Investment in nonaccrual and loans past due still accruing by class of loans | ||
Total | $ 3 | $ 221 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021loan | Dec. 31, 2021USD ($)loan | |
Troubled Debt Restructurings | |||
Loans classified as troubled debt restructurings | $ 8,664 | $ 18,416 | |
Allowance for outstanding loan losses classified as troubled debt restructurings | $ 38 | $ 39 | |
Number of loans modified during the period, that were considered as TDRs | loan | 0 | ||
Number of TDRs subsequently defaulted | loan | 3 | 5 | |
Troubled debt restructuring that defaulted within one year of modification | $ 6,002 | $ 15,752 | |
Private banking | |||
Troubled Debt Restructurings | |||
Number of loans modified during the period, that were considered as TDRs | loan | 1 | ||
Residential real estate | |||
Troubled Debt Restructurings | |||
Loans secured by residential real estate properties in the process of foreclosure | 2,765 | 2,780 | |
Residential real estate | Real estate loan, first mortgage | |||
Troubled Debt Restructurings | |||
Loans classified as troubled debt restructurings | 174 | 181 | |
Allowance for outstanding loan losses classified as troubled debt restructurings | 38 | 39 | |
Commercial real estate, retail | Hotels/Single-room occupancy hotels | |||
Troubled Debt Restructurings | |||
Loans classified as troubled debt restructurings | 4,441 | ||
Construction | |||
Troubled Debt Restructurings | |||
Loans classified as troubled debt restructurings | 8,375 | 13,678 | |
Number of loans modified during the period, that were considered as TDRs | loan | 2 | ||
Commercial lines of credit and private banking | |||
Troubled Debt Restructurings | |||
Loans classified as troubled debt restructurings | 115 | 116 | |
Mortgage loans held for sale | Residential real estate | |||
Troubled Debt Restructurings | |||
Loans secured by residential real estate properties in the process of foreclosure | $ 2,755 | $ 2,770 |
Loans - Risk Rating of Loans by
Loans - Risk Rating of Loans by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Recorded investment in loans | |||
Total | $ 1,874,641 | $ 2,012,814 | |
Advantage Loan Program | |||
Recorded investment in loans | |||
Total | 156,012 | 171,185 | |
Outstanding principal balance of loans repurchased | 0 | $ 87,944 | |
Real estate loan, Other | |||
Recorded investment in loans | |||
Total | 43,966 | ||
Pass | |||
Recorded investment in loans | |||
Total | 1,784,428 | 1,895,663 | |
Special Mention | |||
Recorded investment in loans | |||
Total | 22,720 | 27,761 | |
Substandard | |||
Recorded investment in loans | |||
Total | 67,262 | 83,226 | |
Doubtful | |||
Recorded investment in loans | |||
Total | 231 | 6,164 | |
Residential real estate | |||
Recorded investment in loans | |||
Total | 1,580,759 | 1,704,231 | |
Residential real estate | Real estate loan, first mortgage | |||
Recorded investment in loans | |||
Total | 1,567,779 | 1,690,456 | |
Residential real estate | Real estate loan, second mortgage | |||
Recorded investment in loans | |||
Total | 12,980 | 13,775 | |
Residential real estate | Pass | Real estate loan, first mortgage | |||
Recorded investment in loans | |||
Total | 1,529,677 | 1,644,974 | |
Residential real estate | Pass | Real estate loan, second mortgage | |||
Recorded investment in loans | |||
Total | 12,744 | 13,539 | |
Residential real estate | Substandard | Real estate loan, first mortgage | |||
Recorded investment in loans | |||
Total | 37,871 | 45,249 | |
Residential real estate | Substandard | Real estate loan, second mortgage | |||
Recorded investment in loans | |||
Total | 236 | 236 | |
Residential real estate | Doubtful | Real estate loan, first mortgage | |||
Recorded investment in loans | |||
Total | 231 | 233 | |
Commercial real estate, retail | |||
Recorded investment in loans | |||
Total | 219,767 | 201,240 | |
Commercial real estate, retail | Real estate loan, Retail | |||
Recorded investment in loans | |||
Total | 37,737 | 19,574 | |
Commercial real estate, retail | Real estate loan, Multifamily | |||
Recorded investment in loans | |||
Total | 98,672 | 96,960 | |
Commercial real estate, retail | Real estate loan, Offices | |||
Recorded investment in loans | |||
Total | 12,267 | 12,382 | |
Commercial real estate, retail | Hotels/Single-room occupancy hotels | |||
Recorded investment in loans | |||
Total | 15,614 | 14,221 | |
Commercial real estate, retail | Real estate loan, Industrial | |||
Recorded investment in loans | |||
Total | 11,511 | 7,320 | |
Commercial real estate, retail | Real estate loan, Other | |||
Recorded investment in loans | |||
Total | 43,966 | 50,783 | |
Commercial real estate, retail | Pass | Real estate loan, Retail | |||
Recorded investment in loans | |||
Total | 37,737 | 18,846 | |
Commercial real estate, retail | Pass | Real estate loan, Multifamily | |||
Recorded investment in loans | |||
Total | 77,654 | 75,543 | |
Commercial real estate, retail | Pass | Real estate loan, Offices | |||
Recorded investment in loans | |||
Total | 10,318 | 10,413 | |
Commercial real estate, retail | Pass | Hotels/Single-room occupancy hotels | |||
Recorded investment in loans | |||
Total | 8,158 | 8,205 | |
Commercial real estate, retail | Pass | Real estate loan, Industrial | |||
Recorded investment in loans | |||
Total | 11,511 | 7,320 | |
Commercial real estate, retail | Pass | Real estate loan, Other | |||
Recorded investment in loans | |||
Total | 42,418 | 48,996 | |
Commercial real estate, retail | Special Mention | Real estate loan, Retail | |||
Recorded investment in loans | |||
Total | 728 | ||
Commercial real estate, retail | Special Mention | Real estate loan, Multifamily | |||
Recorded investment in loans | |||
Total | 11,531 | 8,104 | |
Commercial real estate, retail | Special Mention | Hotels/Single-room occupancy hotels | |||
Recorded investment in loans | |||
Total | 5,890 | ||
Commercial real estate, retail | Special Mention | Real estate loan, Other | |||
Recorded investment in loans | |||
Total | 1,548 | 1,692 | |
Commercial real estate, retail | Substandard | Real estate loan, Multifamily | |||
Recorded investment in loans | |||
Total | 9,487 | 13,313 | |
Commercial real estate, retail | Substandard | Real estate loan, Offices | |||
Recorded investment in loans | |||
Total | 1,949 | 1,969 | |
Commercial real estate, retail | Substandard | Hotels/Single-room occupancy hotels | |||
Recorded investment in loans | |||
Total | 1,566 | 6,016 | |
Commercial real estate, retail | Substandard | Real estate loan, Other | |||
Recorded investment in loans | |||
Total | 95 | ||
Construction | |||
Recorded investment in loans | |||
Total | 73,778 | 106,759 | |
Construction | Pass | |||
Recorded investment in loans | |||
Total | 53,874 | 67,254 | |
Construction | Special Mention | |||
Recorded investment in loans | |||
Total | 3,751 | 17,226 | |
Construction | Substandard | |||
Recorded investment in loans | |||
Total | 16,153 | 16,348 | |
Construction | Doubtful | |||
Recorded investment in loans | |||
Total | 5,931 | ||
Commercial lines of credit | |||
Recorded investment in loans | |||
Total | 334 | 363 | |
Commercial lines of credit | Private banking | |||
Recorded investment in loans | |||
Total | 115 | 116 | |
Commercial lines of credit | C&I lending | |||
Recorded investment in loans | |||
Total | 219 | 247 | |
Commercial lines of credit | Pass | Private banking | |||
Recorded investment in loans | |||
Total | 115 | 116 | |
Commercial lines of credit | Pass | C&I lending | |||
Recorded investment in loans | |||
Total | 219 | 236 | |
Commercial lines of credit | Special Mention | C&I lending | |||
Recorded investment in loans | |||
Total | 11 | ||
Other consumer | |||
Recorded investment in loans | |||
Total | 3 | 221 | |
Other consumer | Pass | |||
Recorded investment in loans | |||
Total | $ 3 | $ 221 |
Mortgage Servicing Rights, ne_2
Mortgage Servicing Rights, net - Principle Balance by Category (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Mortgage Servicing Rights | ||
Total | $ 287,409 | $ 307,783 |
Custodial escrow balances maintained on serviced loans | 1,416 | 5,501 |
FNMA | ||
Mortgage Servicing Rights | ||
Total | 120,105 | 124,764 |
FHLB | ||
Mortgage Servicing Rights | ||
Total | 38,296 | 40,209 |
Private investors | ||
Mortgage Servicing Rights | ||
Total | $ 129,008 | $ 142,810 |
Mortgage Servicing Rights net -
Mortgage Servicing Rights net - Activity and Related Valuation Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Mortgage servicing rights activity | |||
Mortgage servicing rights Beginning of period | $ 3,332 | $ 7,853 | |
Additions | 9 | 74 | |
Amortization | (253) | (2,072) | |
Mortgage servicing rights End of period | 3,088 | 5,855 | |
Valuation allowance Beginning of period | 610 | 2,165 | |
Additions (recoveries) | (410) | (936) | |
Valuation allowance End of period | 200 | 1,229 | |
Mortgage servicing rights, net | 2,888 | 4,626 | $ 2,722 |
Servicing fee income (loss), net of amortization of servicing rights and changes in valuation allowance | $ 443 | $ (430) |
Mortgage Servicing Rights, ne_3
Mortgage Servicing Rights, net - Valuation techniques (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Mortgage Servicing Rights | ||
Fair value of mortgage servicing rights | $ 3,261 | $ 2,916 |
Prepayment speed range | 14.10% | 17.60% |
Weighted average life of the mortgage servicing right | 65 months | 52 months |
Weighted average default rate | 0.20% | 0.20% |
Minimum | ||
Mortgage Servicing Rights | ||
Discount rate range | 9.50% | 9.50% |
Maximum | ||
Mortgage Servicing Rights | ||
Discount rate range | 12.00% | 12.00% |
Deposits - Time deposits (Detai
Deposits - Time deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits | ||
Interest-bearing time deposits | $ 815,784 | $ 891,820 |
Brokered time deposits | 0 | 20,109 |
Time deposits that meet or exceed the FDIC insurance limit of $250 | $ 228,784 | $ 244,868 |
FHLB Borrowings (Details)
FHLB Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Federal Home Loan Bank Borrowings | ||
Long-term fixed-rate FHLB advances | $ 150,000 | $ 150,000 |
Minimum | Long term | ||
Federal Home Loan Bank Borrowings | ||
FHLB interest rates (as a percent) | 0.43% | 0.43% |
Maximum | Long term | ||
Federal Home Loan Bank Borrowings | ||
FHLB interest rates (as a percent) | 1.96% | 1.96% |
FHLB Borrowings - FHLB Advances
FHLB Borrowings - FHLB Advances (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Federal Home Loan Bank Borrowings | |
Additional borrowing capacity | $ 323,547 |
Callable Option May, 2024 | |
Federal Home Loan Bank Borrowings | |
Total FHLB advances | 50,000 |
Callable Option May, 2022 | |
Federal Home Loan Bank Borrowings | |
Total FHLB advances | $ 100,000 |
FHLB Borrowings - FHLB Overdraf
FHLB Borrowings - FHLB Overdraft Line of Credit and Letters of Credit (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
FHLB Overdraft Line of Credit and Letters of Credit | |||
FHLB line of credit agreement maximum borrowing limit | $ 20,000 | ||
FHLB overdraft line of credit average borrowings outstanding | $ 13 | ||
FHLB overdraft line of credit outstanding borrowings | $ 0 | ||
FHLB overdraft line of credit (as percent) | 0.67% | 0.43% | |
FHLB, agreement term | 1 year | ||
Standby letter of credit 1 expiring July, 2022 | |||
FHLB Overdraft Line of Credit and Letters of Credit | |||
FHLB overdraft line of credit outstanding borrowings | $ 0 | $ 0 | |
FHLB letter of credit | $ 11,500 | ||
FHLB letter of credit term | 16 months | ||
Standby letter of credit 2 expiring July, 2022 | |||
FHLB Overdraft Line of Credit and Letters of Credit | |||
FHLB letter of credit | $ 7,500 | ||
Standby letters of credit expiring July 2024 | |||
FHLB Overdraft Line of Credit and Letters of Credit | |||
FHLB letter of credit | $ 4,000 | ||
FHLB letter of credit term | 36 months |
FHLB Borrowings - Other Borrowi
FHLB Borrowings - Other Borrowings (Details) - Other Banks - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Other Borrowings | |||
Maximum borrowing capacity | $ 80,000 | ||
Outstanding balance | $ 0 | $ 0 |
Subordinated Notes, net (Detail
Subordinated Notes, net (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Subordinated Notes | ||||
Total | $ 65,326 | $ 65,343 | ||
Interest expense | 964 | $ 1,180 | ||
Subordinated notes | ||||
Subordinated Notes | ||||
Subordinated notes | 65,000 | 65,000 | ||
Unamortized note premium | 326 | 343 | ||
Total | $ 65,326 | $ 65,343 | ||
Interest rate (as a percent) | 7.00% | 6.06% | 5.94% | |
Interest expense | $ 964 | $ 1,180 | ||
Redemption price percentage of outstanding principal amount | 100.00% | |||
LIBOR | Subordinated notes | ||||
Subordinated Notes | ||||
Variable interest rate on subordinate notes (in percent) | 5.82% |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Stock options | |||
Stock-based Compensation | |||
Maximum term of stock awards granted | 10 years | ||
Restricted Stock | |||
Stock-based Compensation | |||
Number of share instruments issued | 53,681 | ||
Restricted Stock | Key employee | |||
Stock-based Compensation | |||
Number of share instruments issued | 8,681 | ||
Restricted Stock | Non-employee directors Restricted Stock Awards | |||
Stock-based Compensation | |||
Number of share instruments issued | 45,000 | ||
2017 Omnibus Equity Incentive Plan | |||
Stock-based Compensation | |||
Number of shares authorized | 4,237,100 | ||
2017 Omnibus Equity Incentive Plan | Stock options | |||
Number of Shares | |||
Outstanding at January 1, 2022 | 367,767 | ||
Forfeited/expired | (18,222) | ||
Outstanding at March 31, 2022 | 349,545 | 367,767 | |
Exercisable at December 31, 2021 | 344,356 | ||
Weighted Average Exercise Price | |||
Outstanding at January 1, 2022 | $ 5.41 | ||
Forfeited/expired | 9.67 | ||
Outstanding at March 31, 2022 | 5.19 | $ 5.41 | |
Exercisable at December 31, 2021 | $ 5.14 | ||
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term (Years) | 7 years 11 months 4 days | 8 years 1 month 17 days | |
Weighted Average Remaining Contractual Term, Exercisable | 7 years 11 months 4 days | ||
Aggregate Intrinsic Value | $ 930 | $ 525 | |
Aggregate Intrinsic Value Exercisable | 930 | ||
Stock-based compensation costs recognized | (13) | $ 57 | |
Total unrecognized compensation cost - stock options | $ 8 | ||
2017 Omnibus Equity Incentive Plan | Stock options | Maximum | |||
Weighted Average Remaining Contractual Term | |||
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period | 1 year | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted prior to 2020 | |||
Stock-based Compensation | |||
Percentage of awards vesting | 50.00% | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted prior to 2020 | Awards vesting at the end of the third year | |||
Stock-based Compensation | |||
Percentage of awards vesting | 50.00% | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted prior to 2020 | Awards vesting at the end of the fourth year | |||
Stock-based Compensation | |||
Percentage of awards vesting | 50.00% | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted starting in 2020 | |||
Stock-based Compensation | |||
Vesting period | 3 years | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted starting in 2020 | Awards vesting on the first anniversary of the grant date | |||
Stock-based Compensation | |||
Percentage of awards vesting | 33.33% | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted starting in 2020 | Awards vesting at the end of the second year | |||
Stock-based Compensation | |||
Percentage of awards vesting | 33.33% | ||
2017 Omnibus Equity Incentive Plan | Stock Options granted starting in 2020 | Awards vesting at the end of the third year | |||
Stock-based Compensation | |||
Percentage of awards vesting | 33.33% | ||
2017 Omnibus Equity Incentive Plan | Restricted Stock | |||
Weighted Average Remaining Contractual Term | |||
Shares withheld in order to pay employee tax liabilities on vested awards | 13,383 | 8,536 | |
Stock-based compensation costs recognized | $ 159 | $ 48 | |
Employee tax liability associated with restricted stock awards the vested during the period | 84 | 46 | |
Total unrecognized compensation cost - restricted stock awards | $ 1,216 | ||
Unrecognized compensation cost related to nonvested awards, expected to be recognized over a weighted-average period | 2 years | ||
Number of Shares | |||
Nonvested, Opening balance | 293,637 | ||
Granted | 53,681 | ||
Vested | (54,437) | ||
Forfeited | (4,397) | ||
Nonvested, Ending balance | 288,484 | 293,637 | |
Weighted Average Grant Date Fair Value | |||
Nonvested, Opening balance | $ 5.81 | ||
Granted | 5.75 | ||
Vested | 7.27 | ||
Forfeited | 6.94 | ||
Nonvested, Ending balance | $ 5.51 | $ 5.81 | |
Grant Date Fair Value of Restricted Stock that Vested During the year | |||
Fair value of restricted stock awards vested | $ 332 | $ 173 | |
2020 Omnibus Equity Incentive Plan | |||
Stock-based Compensation | |||
Number of shares authorized | 3,979,661 | ||
2020 Omnibus Equity Incentive Plan | Stock Options granted starting in 2020 | |||
Stock-based Compensation | |||
Number of stock options granted | 0 | 0 | |
2020 Omnibus Equity Incentive Plan | Restricted Stock | |||
Stock-based Compensation | |||
Vesting period | 3 years | ||
2020 Omnibus Equity Incentive Plan | Restricted Stock | Awards vesting on the first anniversary of the grant date | |||
Stock-based Compensation | |||
Percentage of awards vesting | 33.33% | ||
2020 Omnibus Equity Incentive Plan | Restricted Stock | Awards vesting at the end of the second year | |||
Stock-based Compensation | |||
Percentage of awards vesting | 33.33% | ||
2020 Omnibus Equity Incentive Plan | Restricted Stock | Awards vesting at the end of the third year | |||
Stock-based Compensation | |||
Percentage of awards vesting | 33.33% | ||
2020 Omnibus Equity Incentive Plan | Restricted Stock | Non-employee directors Restricted Stock Awards | |||
Stock-based Compensation | |||
Number of share instruments issued | 45,000 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Actual and minimum required capital amounts and ratios and Dividend Restrictions (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Regulatory Capital Requirements | ||
Capital conservation buffer (as a percent) | 2.50% | |
Risk Weighted Percentage | 100.00% | 50.00% |
Required Common Equity capital adequacy with capital conservation buffer | 0.070 | |
Required Tier 1 capital adequacy with capital conservation buffer | 0.085 | |
Required Total capital adequacy with capital conservation buffer | 0.105 | |
Total adjusted capital to risk-weighted assets, Amount | ||
Actual | $ 441,402 | $ 414,870 |
For Capital Adequacy Purposes | $ 141,832 | $ 113,951 |
Total adjusted capital to risk-weighted assets, Ratio | ||
Actual | 0.2321 | 0.2902 |
For Capital Adequacy Purposes | 0.0800 | 0.0800 |
Tier 1 (core) capital to risk-weighted assets, Amount | ||
Actual | $ 349,671 | $ 344,247 |
For Capital Adequacy Purposes | $ 106,374 | $ 85,463 |
Tier 1 (core) capital to risk-weighted assets, Ratio | ||
Actual | 0.1972 | 0.2408 |
For Capital Adequacy Purposes | 0.0600 | 0.0600 |
Common Equity Tier 1 (CET1), Amount | ||
Actual | $ 349,671 | $ 344,247 |
For Capital Adequacy Purposes | $ 79,780 | $ 64,097 |
Common Equity Tier 1 (CET1), Ratio | ||
Actual | 0.1972 | 0.2408 |
For Capital Adequacy Purposes | 0.0450 | 0.0450 |
Tier 1 (core) capital to adjusted tangible assets, Amount | ||
Actual | $ 349,671 | $ 344,247 |
For Capital Adequacy Purposes | $ 114,339 | $ 120,039 |
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio | ||
Actual | 0.1223 | 0.1147 |
For Capital Adequacy Purposes | 0.0400 | 0.0400 |
Dividend Restrictions | ||
Minimum percentage of assets be maintained as per Qualified Thrift Lender ("QTL") test | 65.00% | |
Risk-weighting 100% Scenario | ||
Total adjusted capital to risk-weighted assets, Ratio | ||
Actual | 0.2124 | |
Tier 1 (core) capital to risk-weighted assets, Ratio | ||
Actual | 0.1734 | |
Bank | ||
Total adjusted capital to risk-weighted assets, Amount | ||
Actual | $ 412,395 | $ 400,836 |
For Capital Adequacy Purposes | 141,649 | 113,868 |
To be Well Capitalized | $ 177,061 | $ 142,335 |
Total adjusted capital to risk-weighted assets, Ratio | ||
Actual | 0.2329 | 0.2807 |
For Capital Adequacy Purposes | 0.0800 | 0.0800 |
To be Well Capitalized | 0.1000 | 0.1000 |
Tier 1 (core) capital to risk-weighted assets, Amount | ||
Actual | $ 389,875 | $ 382,509 |
For Capital Adequacy Purposes | 106,236 | 85,401 |
To be Well Capitalized | $ 141,649 | $ 113,868 |
Tier 1 (core) capital to risk-weighted assets, Ratio | ||
Actual | 0.2202 | 0.2679 |
For Capital Adequacy Purposes | 0.0600 | 0.0600 |
To be Well Capitalized | 0.0800 | 0.0800 |
Common Equity Tier 1 (CET1), Amount | ||
Actual | $ 389,875 | $ 382,509 |
For Capital Adequacy Purposes | 79,677 | 64,051 |
To be Well Capitalized | $ 115,089 | $ 92,518 |
Common Equity Tier 1 (CET1), Ratio | ||
Actual | 0.2202 | 0.2679 |
For Capital Adequacy Purposes | 0.0450 | 0.0450 |
To be Well Capitalized | 0.0650 | 0.0650 |
Tier 1 (core) capital to adjusted tangible assets, Amount | ||
Actual | $ 389,875 | $ 382,509 |
For Capital Adequacy Purposes | 114,261 | 119,859 |
To be Well Capitalized | $ 142,827 | $ 149,824 |
Tier 1 (core) capital to adjusted tangible assets, Leverage Ratio | ||
Actual | 0.1365 | 0.1277 |
For Capital Adequacy Purposes | 0.0400 | 0.0400 |
To be Well Capitalized | 0.0500 | 0.0500 |
Bank | Risk-weighting 100% Scenario | ||
Total adjusted capital to risk-weighted assets, Ratio | ||
Actual | 0.2055 | |
Tier 1 (core) capital to risk-weighted assets, Ratio | ||
Actual | 0.1928 |
Income Per Share (Details)
Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net income | $ 5,260 | $ 2,325 |
Denominator: | ||
Weighted average common shares outstanding, basic | 50,191,288 | 49,851,202 |
Weighted average effect of potentially dilutive common shares: | ||
Weighted average common shares outstanding, diluted | 50,406,123 | 49,912,860 |
Income per share: | ||
Income per share, Basic | $ 0.10 | $ 0.05 |
Income per share, Diluted | $ 0.10 | $ 0.05 |
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive | 49,545 | 139,529 |
Stock options | ||
Income per share: | ||
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive | 49,545 | 74,882 |
Restricted Stock | ||
Income per share: | ||
Securities excluded from the computation of weighted average diluted shares outstanding as inclusion of such items would be anti-dilutive | 64,647 | |
Common stock | Stock options | ||
Weighted average effect of potentially dilutive common shares: | ||
Incremental shares from share-based compensation | 108,203 | 49,790 |
Common stock | Restricted Stock | ||
Weighted average effect of potentially dilutive common shares: | ||
Incremental shares from share-based compensation | 106,632 | 11,868 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Assets measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | $ 359,375 | $ 308,657 |
Equity securities | ||
Equity securities | 4,740 | 4,976 |
U.S. Treasury and Agency securities | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 167,643 | 122,168 |
U.S. Treasury and Agency securities | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 167,643 | 122,168 |
U.S. Treasury and Agency securities | Level 1 | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 94,492 | 48,827 |
U.S. Treasury and Agency securities | Level 2 | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 73,151 | 73,341 |
Mortgage-backed securities | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 44,044 | 49,437 |
Mortgage-backed securities | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 44,044 | 49,437 |
Mortgage-backed securities | Level 2 | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 44,044 | 49,437 |
Collateralized mortgage obligations | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 147,484 | 136,849 |
Collateralized mortgage obligations | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 147,484 | 136,849 |
Collateralized mortgage obligations | Level 2 | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 147,484 | 136,849 |
Collateralized debt obligations | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 204 | 203 |
Collateralized debt obligations | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 204 | 203 |
Collateralized debt obligations | Level 3 | Recurring | ||
Available for sale debt securities: | ||
Available for sale debt securities, at fair value | 204 | 203 |
Equity securities | Recurring | ||
Equity securities | ||
Equity securities | 4,740 | 4,976 |
Equity securities | Level 1 | Recurring | ||
Equity securities | ||
Equity securities | $ 4,740 | $ 4,976 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Reconciliation and income statement classification using Level 3 inputs (Details) - Collateralized debt obligations - Recurring - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||
Balance of recurring Level 3 assets at beginning of period | $ 203 | $ 187 | $ 187 |
Included in other comprehensive income (loss) | 2 | 7 | |
Principal maturities/settlements | (1) | (1) | |
Balance of recurring Level 3 assets at end of period | 204 | 193 | 203 |
Investment income | |||
Unrealized losses on investments | 6 | $ 8 | |
Interest income | $ 1 | $ 1 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis and Fair Value of Financial Instruments (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Financial Assets | ||
Interest-bearing time deposits with other banks | $ 1,183 | $ 1,183 |
Loans held for sale | 12,230 | 64,987 |
Nonrecurring | Residential real estate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | 88 | 86 |
Nonrecurring | Residential real estate | Level 3 | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | 88 | 86 |
Nonrecurring | Residential real estate | Level 3 | Sales comparison approach | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | $ 88 | $ 86 |
Nonrecurring | Residential real estate | Weighted Average | Level 3 | Sales comparison approach | Adjustments for differences between the comparable sales | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.15 | 0.15 |
Nonrecurring | Commercial real estate loans held for sale | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | $ 53,628 | |
Nonrecurring | Commercial real estate loans held for sale | Level 2 | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | 53,628 | |
Nonrecurring | Mortgage servicing rights | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | $ 1,470 | 2,052 |
Nonrecurring | Mortgage servicing rights | Level 3 | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | 1,470 | 2,052 |
Nonrecurring | Mortgage servicing rights | Level 3 | Discounted cash flow | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value on a nonrecurring basis | $ 1,470 | $ 2,052 |
Nonrecurring | Mortgage servicing rights | Maximum | Level 3 | Discounted cash flow | Discount rate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.120 | 0.120 |
Nonrecurring | Mortgage servicing rights | Maximum | Level 3 | Discounted cash flow | Prepayment speed | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.28 | 0.371 |
Nonrecurring | Mortgage servicing rights | Maximum | Level 3 | Discounted cash flow | Default rate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.002 | 0.002 |
Nonrecurring | Mortgage servicing rights | Minimum | Level 3 | Discounted cash flow | Discount rate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.095 | 0.095 |
Nonrecurring | Mortgage servicing rights | Minimum | Level 3 | Discounted cash flow | Prepayment speed | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.082 | 0.105 |
Nonrecurring | Mortgage servicing rights | Minimum | Level 3 | Discounted cash flow | Default rate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.001 | 0.001 |
Nonrecurring | Mortgage servicing rights | Weighted Average | Level 3 | Discounted cash flow | Discount rate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.116 | 0.110 |
Nonrecurring | Mortgage servicing rights | Weighted Average | Level 3 | Discounted cash flow | Prepayment speed | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.189 | 0.197 |
Nonrecurring | Mortgage servicing rights | Weighted Average | Level 3 | Discounted cash flow | Default rate | ||
Fair value of financial assets and liabilities | ||
Assets measured at fair value, measurement input | 0.002 | 0.002 |
Carrying value per balance sheet | ||
Financial Assets | ||
Cash and due from banks | $ 486,743 | $ 411,676 |
Interest-bearing time deposits with other banks | 1,183 | 1,183 |
Loans held for sale | 12,230 | 11,359 |
Loans, net | 1,822,098 | 1,956,180 |
Financial Liabilities | ||
Time deposits | 815,784 | 891,820 |
Federal Home Loan Bank borrowings | 150,000 | 150,000 |
Subordinated notes, net | 65,326 | 65,343 |
Estimated fair value | ||
Financial Assets | ||
Cash and due from banks | 486,743 | 411,676 |
Interest-bearing time deposits with other banks | 1,183 | 1,183 |
Loans held for sale | 12,681 | 11,809 |
Loans, net | 1,827,208 | 2,025,409 |
Financial Liabilities | ||
Time deposits | 816,758 | 894,049 |
Federal Home Loan Bank borrowings | 149,990 | 152,560 |
Subordinated notes, net | 65,056 | 65,073 |
Estimated fair value | Level 1 | ||
Financial Assets | ||
Cash and due from banks | 486,743 | 411,676 |
Interest-bearing time deposits with other banks | 1,183 | 1,183 |
Estimated fair value | Level 2 | ||
Financial Assets | ||
Loans held for sale | 12,681 | 11,809 |
Financial Liabilities | ||
Time deposits | 816,758 | 894,049 |
Federal Home Loan Bank borrowings | 149,990 | 152,560 |
Subordinated notes, net | 65,056 | 65,073 |
Estimated fair value | Level 3 | ||
Financial Assets | ||
Loans, net | $ 1,827,208 | $ 2,025,409 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Controlling Shareholders | ||
Related party transactions | ||
Sublease income | $ 112 | $ 95 |
Commitments and Contingencies -
Commitments and Contingencies - Unfunded Commitments to Extend Credit and Standby Letters of Credit (Details) $ in Thousands | Jan. 21, 2022USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Jul. 28, 2020item |
Loss contingency from Internal review of Advantage Loan Program | ||||
Commitments and Contingencies | ||||
Liability for contingent losses | $ 15,000 | $ 15,000 | ||
Demand letter from purported stockholders | ||||
Commitments and Contingencies | ||||
Number of law firms | item | 2 | |||
Plaintiff attorney's fee and expenses | $ 650 | |||
Unfunded Commitments to Extend Credit | Residential real estate | ||||
Commitments and Contingencies | ||||
Outstanding commitments regarding fixed rate loans | 1,124 | |||
Outstanding commitments with varying interest rates | $ 18,745 | |||
Unfunded Commitments to Extend Credit | Residential real estate | Minimum | ||||
Commitments and Contingencies | ||||
Fixed interest rate (as a percent) | 2.875% | |||
Maturity period | 15 years | |||
Variable interest rate (as a percentage) | 3.00% | |||
Unfunded Commitments to Extend Credit | Residential real estate | Maximum | ||||
Commitments and Contingencies | ||||
Fixed interest rate (as a percent) | 4.00% | |||
Maturity period | 30 years | |||
Variable interest rate (as a percentage) | 3.625% | |||
Maturity period for variable interest loans | 30 years | |||
Unfunded Commitments to Extend Credit | Residential real estate | Maximum | Demand letter from purported stockholders | ||||
Commitments and Contingencies | ||||
Maturity period | 90 days | |||
Commitments to make loans | ||||
Commitments and Contingencies | ||||
Commitments to make loans | $ 19,869 | 23,610 | ||
Unused lines of credit | ||||
Commitments and Contingencies | ||||
Unused lines of credit | $ 39,789 | 45,805 | ||
Unused lines of credit | Minimum | ||||
Commitments and Contingencies | ||||
Variable interest rate (as a percentage) | 3.50% | |||
Maturity period for variable interest loans | 1 month | |||
Unused lines of credit | Maximum | ||||
Commitments and Contingencies | ||||
Variable interest rate (as a percentage) | 6.75% | |||
Maturity period for variable interest loans | 24 years | |||
Unused lines of credit | Residential real estate | ||||
Commitments and Contingencies | ||||
Unused lines of credit | $ 10,596 | |||
Unused lines of credit | Construction | ||||
Commitments and Contingencies | ||||
Unused lines of credit | 29,193 | |||
Standby letters of credit | ||||
Commitments and Contingencies | ||||
Unused lines of credit | $ 24 | $ 24 |
Commitments and Contingencies_2
Commitments and Contingencies - Advantage Loan Program Loans Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2019 | |
Commitments and Contingencies | |||||
Unpaid principal balance | $ 1,822,186 | $ 1,956,266 | |||
Advantage Loan Program | |||||
Commitments and Contingencies | |||||
Mortgage loan repurchase liability | $ 9,699 | 2,741 | 2,954 | $ 6,629 | $ 7,823 |
Unpaid principal balance | $ 129,008 | 142,810 | |||
Percentage of loans offered to each of investors to repurchase | 100.00% | ||||
Increase in mortgage loan repurchase liability | $ 2,527 | ||||
Advantage Loan Program loans repurchased | |||||
Commitments and Contingencies | |||||
Unpaid principal balance | 243,467 | ||||
Residential real estate | |||||
Commitments and Contingencies | |||||
Mortgage loan repurchase liability | $ 2,741 | 2,954 | |||
Unpaid principal balance | $ 220,790 | $ 237,049 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional pool of ALPL with specific time ranges (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding Principal Balance | $ 66,434 |
Present - February 28, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding Principal Balance | 12,757 |
May 21, 2022 - May 21, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding Principal Balance | 12,760 |
July 25, 2022 - July 25, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding Principal Balance | 16,140 |
Present - July 22, 2023 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding Principal Balance | $ 24,777 |
Commitments and Contingencies_4
Commitments and Contingencies - Mortgage Repurchase Liability (Details) - Advantage Loan Program - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Mortgage repurchase liability: | ||
Balance, beginning of period | $ 2,954 | $ 9,699 |
Net provision (recovery) | (213) | (153) |
Loss on loan repurchases | 2,917 | |
Balance, end of the period | $ 2,741 | $ 6,629 |