Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39731 | |
Entity Registrant Name | CARTER BANKSHARES, INC. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 85-3365661 | |
Entity Address, Address Line One | 1300 Kings Mountain Road | |
Entity Address, City or Town | Martinsville | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 24112 | |
City Area Code | 276 | |
Local Phone Number | 656-1776 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | CARE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,578,032 | |
Entity Central Index Key | 0001829576 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and Due From Banks | $ 38,534,000 | $ 36,698,000 |
Interest-Bearing Deposits in Other Financial Institutions | 26,462,000 | 64,905,000 |
Federal Reserve Bank Excess Reserves | 43,040,000 | 176,196,000 |
Total Cash and Cash Equivalents | 108,036,000 | 277,799,000 |
Securities Available-for-Sale, at Fair Value | 982,041,000 | 922,400,000 |
Loans Held-for-Sale | 196,000 | 228,000 |
Portfolio Loans | 2,894,004,000 | 2,812,129,000 |
Allowance for Credit Losses | (96,376,000) | (95,939,000) |
Portfolio Loans, net | 2,797,628,000 | 2,716,190,000 |
Bank Premises and Equipment, net | 73,402,000 | 75,297,000 |
Other Real Estate Owned, net | 11,253,000 | 10,916,000 |
Federal Home Loan Bank Stock, at Cost | 2,067,000 | 2,352,000 |
Bank Owned Life Insurance | 55,712,000 | 55,378,000 |
Other Assets | 92,891,000 | 73,186,000 |
Total Assets | 4,123,226,000 | 4,133,746,000 |
Deposits: | ||
Noninterest-Bearing Demand | 708,353,000 | 747,909,000 |
Interest-Bearing Demand | 480,192,000 | 452,644,000 |
Money Market | 526,838,000 | 463,056,000 |
Savings | 728,425,000 | 690,549,000 |
Certificates of Deposit | 1,284,470,000 | 1,344,318,000 |
Total Deposits | 3,728,278,000 | 3,698,476,000 |
Federal Home Loan Bank Borrowings | 0 | 7,000,000 |
Other Liabilities | 36,392,000 | 20,674,000 |
Total Liabilities | 3,764,670,000 | 3,726,150,000 |
SHAREHOLDERS’ EQUITY | ||
Common Stock, Par Value $1.00 per share, Authorized 100,000,000 Shares; Outstanding shares 24,986,726 at March 31, 2022 and 26,430,919 at December 31, 2021 | 24,987,000 | 26,431,000 |
Additional Paid-in Capital | 121,045,000 | 143,988,000 |
Retained Earnings | 244,798,000 | 235,475,000 |
Accumulated Other Comprehensive (Loss) Income | (32,274,000) | 1,702,000 |
Total Shareholders’ Equity | 358,556,000 | 407,596,000 |
Total Liabilities and Shareholders’ Equity | $ 4,123,226,000 | $ 4,133,746,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 24,986,726 | 26,430,919 |
Common stock, shares outstanding (in shares) | 24,986,726 | 26,430,919 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loans, including Fees | ||
Taxable | $ 27,745 | $ 28,145 |
Non-Taxable | 952 | 1,412 |
Investment Securities | ||
Taxable | 3,732 | 2,987 |
Non-Taxable | 167 | 326 |
Federal Reserve Bank Excess Reserves | 37 | 26 |
Interest on Bank Deposits | 25 | 24 |
Dividend Income | 20 | 37 |
Total Interest Income | 32,678 | 32,957 |
Interest Expense | ||
Interest Expense on Deposits | 4,399 | 6,295 |
Interest on Other Borrowings | 57 | 133 |
Total Interest Expense | 4,456 | 6,428 |
NET INTEREST INCOME | 28,222 | 26,529 |
Provision for Credit Losses | 630 | 1,857 |
Provision for Unfunded Commitments | (236) | (282) |
Net Interest Income After Provision for Credit Losses | 27,828 | 24,954 |
NONINTEREST INCOME | ||
(Losses) Gains on Sales of Securities, net | (24) | 3,610 |
Bank Owned Life Insurance Income | 334 | 340 |
Gains on Sales and Write-downs of Bank Premises, net | 383 | 0 |
Other | 478 | 778 |
Total Noninterest Income | 5,335 | 8,952 |
NONINTEREST EXPENSE | ||
Salaries and Employee Benefits | 11,757 | 12,582 |
Occupancy Expense, net | 3,352 | 3,514 |
FDIC Insurance Expense | 368 | 643 |
Other Taxes | 804 | 762 |
Advertising Expense | 239 | 170 |
Telephone Expense | 488 | 600 |
Professional and Legal Fees | 1,219 | 1,224 |
Data Processing | 841 | 921 |
Losses on Sales and Write-downs of Other Real Estate Owned, net | 159 | 212 |
Losses on Sales and Write-downs on Bank Premises, net | 0 | 43 |
Debit Card Expense | 633 | 632 |
Tax Credit Amortization | 615 | 427 |
Other Real Estate Owned Expense | 41 | 54 |
Other | 1,995 | 1,821 |
Total Noninterest Expense | 22,511 | 23,605 |
Income Before Income Taxes | 10,652 | 10,301 |
Income Tax Provision | 1,329 | 926 |
Net Income | $ 9,323 | $ 9,375 |
Earnings per Common Share | ||
Basic Earnings per Common Share (in usd per share) | $ 0.36 | $ 0.36 |
Diluted Earnings per Common Share (in usd per share) | $ 0.36 | $ 0.36 |
Average Shares Outstanding - Basic (in shares) | 25,740,636 | 26,276,890 |
Average Shares Outstanding - Diluted (in shares) | 25,740,636 | 26,276,890 |
Service Charges, Commissions and Fees | ||
NONINTEREST INCOME | ||
Revenue from contract with customer | $ 1,953 | $ 1,809 |
Debit Card Interchange Fees | ||
NONINTEREST INCOME | ||
Revenue from contract with customer | 1,932 | 1,831 |
Insurance Commissions | ||
NONINTEREST INCOME | ||
Revenue from contract with customer | 269 | 294 |
Other Real Estate Owned Income | ||
NONINTEREST INCOME | ||
Revenue from contract with customer | 10 | 71 |
Commercial Loan Swap Fee Income | ||
NONINTEREST INCOME | ||
Revenue from contract with customer | $ 0 | $ 219 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Other Comprehensive Income [Abstract] | ||
Net Income | $ 9,323 | $ 9,375 |
Net Unrealized Losses on Securities Available-for-Sale: | ||
Net Unrealized Losses Arising during the Period | (43,032) | (10,494) |
Reclassification Adjustment for Losses (Gains) included in Net Income | 24 | (3,610) |
Tax Effect | 9,032 | 2,962 |
Net Unrealized Losses Recognized in Other Comprehensive Loss | (33,976) | (11,142) |
Other Comprehensive Loss | (33,976) | (11,142) |
Comprehensive Loss | $ (24,653) | $ (1,767) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect for Adoption of Credit Losses | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect for Adoption of Credit Losses | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2020 | $ 440,174 | $ (50,726) | $ 26,385 | $ 143,457 | $ 254,611 | $ (50,726) | $ 15,721 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 9,375 | 9,375 | |||||
Other Comprehensive Loss, Net of Tax | (11,142) | (11,142) | |||||
Issuance of Restricted Stock | 0 | 83 | (83) | ||||
Recognition of Restricted Stock Compensation Expense | 208 | 208 | |||||
Ending balance at Mar. 31, 2021 | 387,889 | 26,468 | 143,582 | 213,260 | 4,579 | ||
Beginning balance at Dec. 31, 2021 | 407,596 | 26,431 | 143,988 | 235,475 | 1,702 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 9,323 | 9,323 | |||||
Other Comprehensive Loss, Net of Tax | (33,976) | (33,976) | |||||
Repurchase of Common Stock | (24,626) | (1,523) | (23,103) | ||||
Forfeiture of Restricted Stock | (156) | (10) | (146) | ||||
Issuance of Restricted Stock | 0 | 89 | (89) | ||||
Recognition of Restricted Stock Compensation Expense | 395 | 395 | |||||
Ending balance at Mar. 31, 2022 | $ 358,556 | $ 24,987 | $ 121,045 | $ 244,798 | $ (32,274) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Repurchase of Common Stock (in shares) | 1,523,157 | ||
Forfeitures of restricted stock (in shares) | 9,692 | ||
Issuance of Restricted Stock (in shares) | 88,656 | 82,490 | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | |||
Net Income | $ 9,323 | $ 9,375 | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | |||
Provision for Credit Losses, including Provision for Unfunded Commitments | 394 | 1,575 | |
Origination of Loans Held-for-Sale | (3,554) | (314,092) | |
Proceeds From Loans Held-for-Sale | 3,672 | 306,866 | |
Depreciation/Amortization of Bank Premises and Equipment | 1,478 | 1,559 | |
Provision for Deferred Taxes | 1,154 | 0 | |
Net Amortization of Securities | 1,634 | 902 | |
Tax Credit Amortization | 615 | 427 | |
Gains on Sales of Mortgage Loans Held-for-Sale | (86) | (74) | |
Losses (Gains) on Sales of Securities, net | 24 | (3,610) | |
Write-downs of Other Real Estate Owned | 131 | 139 | |
Losses on Sales of Other Real Estate Owned, Net | 28 | 73 | |
(Gains) Losses on Sales and Write-downs of Bank Premises | (383) | 43 | |
Increase in the Value of Life Insurance Contracts | (334) | (340) | |
Recognition of Restricted Stock Compensation Expense | 395 | 208 | |
Increase in Other Assets | (9,563) | (413) | |
Increase (Decrease) in Other Liabilities | 7,542 | (2,279) | |
Net Cash Provided By Operating Activities | 12,470 | 359 | |
Securities Available-for-Sale: | |||
Proceeds from Sales | 4,921 | 64,870 | |
Proceeds from Maturities, Redemptions, and Pay-downs | 26,406 | 25,365 | |
Purchases | (131,519) | (92,014) | |
Purchase of Bank Premises and Equipment, Net | (809) | (1,624) | |
Proceeds from Sales of Bank Premises and Equipment, net | 408 | 0 | |
Redemption of Federal Home Loan Bank Stock, net | 285 | 1,878 | |
Loan Originations and Payments, net | (82,032) | (24,994) | |
Payments Received on Other Real Estate Owned | 108 | 0 | |
Proceeds from Sales and Payments of Other Real Estate Owned | 561 | 1,479 | |
Net Cash Used In Investing Activities | (181,671) | (25,040) | |
FINANCING ACTIVITIES | |||
Net Change in Demand, Money Markets and Savings Accounts | 89,650 | 103,276 | |
Decrease in Certificates of Deposits | (59,848) | (96,383) | |
Payments on Federal Home Loan Bank Borrowings | (7,000) | (5,000) | $ (28,000) |
Repurchase of Common Stock | (23,364) | 0 | |
Net Cash (Used In) Provided by Financing Activities | (562) | 1,893 | |
Net Decrease in Cash and Cash Equivalents | (169,763) | (22,788) | |
Cash and Cash Equivalents at Beginning of Period | 277,799 | 241,942 | 241,942 |
Cash and Cash Equivalents at End of Period | 108,036 | 219,154 | $ 277,799 |
SUPPLEMENTARY DATA | |||
Cash Interest Paid | 4,501 | 6,666 | |
Cash Paid for Income Taxes | 0 | 88 | |
Transfer from Fixed Assets to Other Real Estate Owned | 1,201 | 0 | |
Security (Purchases) Settled in Subsequent Period | (4,115) | (10,970) | |
Right-of-use Asset Recorded in Exchange for Lease Liabilities | 2,879 | 2,027 | |
Stock Repurchase Settled in Subsequent Period | $ (1,262) | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Principles of Consolidation: The interim Consolidated Financial Statements include the accounts of Carter Bankshares, Inc. (the “Company”) and its wholly owned subsidiary, Carter Bank & Trust (the “Bank”). All significant intercompany transactions have been eliminated in consolidation. Basis of Presentation: The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”), in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”), on March 11, 2022. In management’s opinion, the accompanying interim financial information reflects all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position and the results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative to the results of operations that may be expected for a full year or any future period. Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. Reclassifications had no material effect on prior year net income or shareholders’ equity. Use of Estimates: The preparation of financial statements in conformity with 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Those estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided. Actual results could differ from those estimates. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19 related changes, and changes in the financial condition of borrowers. The Company did not adopt any new accounting standards in the first quarter of 2022 that had a material impact to our financial statements. Accounting Statements Issued but Not Yet Adopted In March 2022, the FASB issued ASU No. 2022-02, which eliminates the troubled debt restructuring (TDR) accounting model for creditors that have adopted Topic 326, “Financial Instruments - Credit Losses.” Due to the removal of the TDR accounting model, all loan modifications now will be evaluated to determine if they result in a new loan or a continuation of the existing loan. The amendments in this ASU also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. We are currently evaluating the impact of the updated guidance on our Consolidated Financial Statements and write-offs. The amendments in this ASU are effective January 1, 2023, with early adoption permitted. The Company plans to early adopt this ASU in 2022. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from the London Interbank Offered Rate (“LIBOR”) toward new interest rate benchmarks. Modified contracts that meet certain scope guidance are eligible for relief from the modification accounting requirements in U.S. GAAP. The optional guidance generally allows for the modified contract to be accounted for as a continuation of the existing contract and does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The amendments in this ASU are effective for all entities between March 12, 2020 and December 31, 2022. Furthermore, the United Kingdom’s Financial Conduct Authority (“FCA”), who is the regulator of LIBOR, announced on March 5, 2021 that they will no longer require any panel bank to continue to submit LIBOR after December 31, 2021. As it pertains to the U.S. dollar LIBOR, the FCA will consider the case to require continued publication of a number of LIBOR settings through June 30, 2023. In a joint statement, Bank regulators urged banks to stop using LIBOR for any new transactions by the end of 2021 to avoid the possible creation of safety and soundness risk. The Federal Reserve System, (“FRB”), of New York has created a working group called the Alternative Reference Rate Committee (“ARRC”) to assist U.S. institutions in transitioning away from LIBOR as a benchmark interest rate. The ARRC has recommended the use of the Secured Overnight Financing Rate (“SOFR”) as a replacement index for LIBOR, and in March 2022 the U.S. Congress passed and the U.S. President signed legislation that provides a uniform approach for replacing LIBOR as a reference rate in legacy contracts that do not contain effective “fall back” provisions for when LIBOR is no longer published or no longer representative, and that instructs the Federal Reserve to identify a replacement benchmark based on SOFR. In response, we have created an internal team that is managing our transition away from LIBOR. This transition team is a cross-functional group comprised of representatives from the lending lines of business, as well as representatives from loan operations, information technology, finance and other support functions. To date, the transition team has completed an assessment of tasks needed for a successful transition, identified contracts that contain LIBOR language, and documented the risks associated with the transition. The team is currently in the process of: i) reviewing existing contract language for the presence of appropriate fallback rate language, ii) developing loan fallback rate language for when LIBOR is retired if needed, and iii) studying industry best practices. We are considering SOFR and other credit-sensitive alternative indices that may gain market acceptance as potential replacements to LIBOR. The financial impact regarding pricing, valuation and operations of the transition is not expected to be material in nature. Our transition team is fully committed to working within the guidelines established by the FCA and ARRC to provide a smooth transition away from LIBOR. As of March 31, 2022, approximately 16.0% of our loan portfolio consists of loans whose variable rate index is LIBOR. We ceased originating new LIBOR based variable rate loans by December 31, 2021 per the ARRC’s guidance. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is calculated by dividing net income allocated to common shareholders by the weighted average number shares of common stock outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. The following table reconciles the numerators and denominators of basic and diluted earnings per share calculations for the periods presented: Three Months Ended March 31, (Dollars in Thousands, except share and per share data) 2022 2021 Numerator for Earnings per Share – Basic and Diluted Net Income $ 9,323 $ 9,375 Less: Income allocated to participating shares 43 46 Net Income Allocated to Common Shareholders - Basic & Diluted $ 9,280 $ 9,329 Denominator: Weighted Average Shares Outstanding, including Shares Considered Participating Securities 25,859,982 26,408,319 Less: Average Participating Securities 119,346 131,429 Weighted Average Common Shares Outstanding - Basic & Diluted 25,740,636 26,276,890 Earnings per Common Share – Basic $ 0.36 $ 0.36 Earnings per Common Share – Diluted $ 0.36 $ 0.36 All outstanding unvested restricted stock awards are considered participating securities for the earnings per share calculation. As such, these shares have been allocated to a portion of net income and are excluded from the diluted earnings per share calculation. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The following tables present the amortized cost and fair value of available-for-sale securities as of the dates presented: March 31, 2022 (Dollars in Thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 19,263 $ — $ (654) $ 18,609 U.S. Government Agency Securities 3,490 — (253) 3,237 Residential Mortgage-Backed Securities 122,266 5 (6,549) 115,722 Commercial Mortgage-Backed Securities 44,302 153 (810) 43,645 Asset Backed Securities 86,545 7 (1,112) 85,440 Collateralized Mortgage Obligations 316,798 52 (11,841) 305,009 Small Business Administration 68,233 591 (118) 68,706 States and Political Subdivisions 288,247 477 (17,981) 270,743 Corporate Notes 73,750 51 (2,871) 70,930 Total Debt Securities $ 1,022,894 $ 1,336 $ (42,189) $ 982,041 December 31, 2021 (Dollars in Thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 4,442 $ — $ (29) $ 4,413 U.S. Government Agency Securities 3,475 3 — 3,478 Residential Mortgage-Backed Securities 112,118 76 (2,181) 110,013 Commercial Mortgage-Backed Securities 4,155 53 (40) 4,168 Asset Backed Securities 82,119 49 (305) 81,863 Collateralized Mortgage Obligations 287,734 2,190 (2,310) 287,614 Small Business Administration 108,643 879 (608) 108,914 States and Political Subdivisions 257,810 6,344 (1,952) 262,202 Corporate Notes 59,750 375 (390) 59,735 Total Debt Securities $ 920,246 $ 9,969 $ (7,815) $ 922,400 The Company did not have securities classified as held-to-maturity at March 31, 2022 or December 31, 2021. The following table shows the composition of gross and net realized gains and losses for the periods presented: Three Months Ended March 31, (Dollars in Thousands) 2022 2021 Proceeds from Sales of Securities Available-for-Sale $ 4,921 $ 64,870 Gross Realized Gains $ — $ 3,629 Gross Realized Losses (24) (19) Net Realized (Losses) Gains (24) 3,610 Tax Impact $ (5) $ 758 Gains or losses are recognized in earnings on the trade date using the amortized cost of the specific security sold. The net realized (losses) gains above reflect reclassification adjustments in the calculation of Other Comprehensive Loss. The net realized (losses) gains are included in noninterest income as (losses) gains on sales of securities, net in the Consolidated Statements of Income. The tax impact is included in income tax provision in the Consolidated Statements of Income. The amortized cost and fair value of available-for-sale debt securities are shown below by contractual maturity as of the date presented. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. March 31, 2022 (Dollars in Thousands) Amortized Fair Due in One Year or Less $ 400 $ 401 Due after One Year through Five Years 17,407 17,053 Due after Five Years through Ten Years 221,217 213,602 Due after Ten Years 213,959 201,169 Residential Mortgage-Backed Securities 122,266 115,722 Commercial Mortgage-Backed Securities 44,302 43,645 Collateralized Mortgage Obligations 316,798 305,009 Asset Backed Securities 86,545 85,440 Total Debt Securities $ 1,022,894 $ 982,041 At March 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than those securities issued by or collateralized by the U.S. Government and its Agencies, in an amount greater than 10% of shareholders’ equity. The carrying value of securities pledged for various regulatory and legal requirements was $164.6 million at March 31, 2022 and $178.6 million at December 31, 2021. Available-for-sale securities with unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, were as follows: March 31, 2022 Less Than 12 Months 12 Months or More Total (Dollars in Thousands) Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized U.S. Treasury Securities 5 $ 18,609 $ (654) — $ — $ — 5 $ 18,609 $ (654) U.S. Government Agency Securities 2 3,237 (253) — — — 2 3,237 (253) Residential Mortgage-Backed Securities 37 105,273 (5,886) 7 10,137 (663) 44 115,410 (6,549) Commercial Mortgage-Backed Securities 8 13,340 (467) 51 16,557 (343) 59 29,897 (810) Asset Backed Securities 26 64,279 (775) 8 17,161 (337) 34 81,440 (1,112) Collateralized Mortgage Obligations 94 262,649 (11,055) 12 24,932 (786) 106 287,581 (11,841) Small Business Administration 9 13,725 (66) 3 4,302 (52) 12 18,027 (118) States and Political Subdivisions 140 231,573 (16,129) 13 13,295 (1,852) 153 244,868 (17,981) Corporate Notes 20 66,264 (2,736) 1 2,365 (135) 21 68,629 (2,871) Total Debt Securities 341 $ 778,949 $ (38,021) 95 $ 88,749 $ (4,168) 436 $ 867,698 $ (42,189) December 31, 2021 Less Than 12 Months 12 Months or More Total (Dollars in Thousands) Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized U.S. Treasury Securities 2 $ 4,413 $ (29) — $ — $ — 2 $ 4,413 $ (29) U.S. Government Agency Securities 1 1,733 — — — — 1 1,733 — Residential Mortgage-Backed Securities 30 95,749 (2,030) 7 8,706 (151) 37 104,455 (2,181) Commercial Mortgage-Backed Securities 1 1,987 (40) — — — 1 1,987 (40) Asset Backed Securities 17 44,095 (129) 10 21,895 (176) 27 65,990 (305) Collateralized Mortgage Obligations 50 157,630 (1,945) 11 24,849 (365) 61 182,479 (2,310) Small Business Administration 11 18,813 (235) 53 19,630 (373) 64 38,443 (608) States and Political Subdivisions 56 88,746 (1,503) 8 7,874 (449) 64 96,620 (1,952) Corporate Notes 10 29,683 (317) 1 2,427 (73) 11 32,110 (390) Total Debt Securities 178 $ 442,849 $ (6,228) 90 $ 85,381 $ (1,587) 268 $ 528,230 $ (7,815) The Company adopted Topic 326, Financial Instruments—Credit Losses (Topic 326) on January 1, 2021 and did not record an allowance for credit losses, (“ACL”), on its investment securities during the quarter ended March 31, 2022 as the Company did not have securities classified as held-to-maturity at March 31, 2022. The Company regularly reviews debt securities for expected credit loss using both qualitative and quantitative criteria, as necessary, based on the composition of the portfolio at period end. Securities are evaluated for other than temporary impairment, (“OTTI”), quarterly and more frequently if economic or market concerns warrant. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, the credit quality of the issuer, and whether the Company intends to sell the security or may be required to sell the security prior to maturity. The Company has reviewed all securities for OTTI. As of March 31, 2022 and December 31, 2021, no OTTI has been identified for any investment securities in our portfolio. We do not believe any individual unrealized loss as of March 31, 2022 represents an OTTI. At March 31, 2022, there were 436 securities in an unrealized loss position and at December 31, 2021, there were 268 securities in an unrealized loss position. The unrealized losses on debt securities were primarily attributable to changes in interest rates and not related to the credit quality of these securities. All debt securities are determined to be investment grade and are paying principal and interest according to the contractual terms of the security. We generally do not intend to sell and it is not likely that we will be required to sell any of the securities in an unrealized loss position before recovery of amortized cost. |
Loans and Loans Held-For-Sale
Loans and Loans Held-For-Sale | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans and Loans Held-For-Sale | LOANS AND LOANS HELD-FOR-SALE The composition of the loan portfolio by dollar amount is shown in the table below: (Dollars in Thousands) March 31, 2022 December 31, 2021 Commercial Commercial Real Estate $ 1,343,206 $ 1,323,252 Commercial and Industrial 345,345 345,376 Total Commercial Loans 1,688,551 1,668,628 Consumer Residential Mortgages 483,382 457,988 Other Consumer 43,288 44,666 Total Consumer Loans 526,670 502,654 Construction 321,190 282,947 Other 357,593 357,900 Total Portfolio Loans $ 2,894,004 $ 2,812,129 Loans Held-for-Sale 196 228 Total Loans $ 2,894,200 $ 2,812,357 Troubled Debt Restructurings (“TDR”) The following table summarizes the Company’s TDRs as of the dates presented: March 31, 2022 December 31, 2021 (Dollars in Thousands) Performing Nonperforming Total Performing Nonperforming Total Commercial Commercial Real Estate $ 2,239 $ 3,014 $ 5,253 $ 2,679 $ 2,742 $ 5,421 Commercial and Industrial 11 — 11 14 — 14 Total Commercial TDRs 2,250 3,014 5,264 2,693 2,742 5,435 Consumer Residential Mortgages — — — — — — Other Consumer — — — — — — Total Consumer TDRs — — — — — — Construction — 808 808 527 808 1,335 Other 169,228 — 169,228 169,372 — 169,372 Total TDRs $ 171,478 $ 3,822 $ 175,300 $ 172,592 $ 3,550 $ 176,142 In order to maximize the collection of loan balances, the Company evaluates troubled loan accounts on a case-by-case basis to determine if a loan modification would be appropriate. Loan modifications may be utilized when there is a reasonable chance that an appropriate modification would allow our client to continue servicing the debt. A loan is a TDR if both of the following exist: 1) the debtor is experiencing financial difficulties, and 2) a creditor has granted a concession to the debtor that it would not normally grant. Nonaccrual loans that are modified can be placed back on accrual status when both principal and interest are current and it is probable that the Company will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. As of March 31, 2022, there were minimal commitments to lend additional funds for loans identified as TDRs. TDRs decreased $0.9 million, or 0.5% to $175.3 million at March 31, 2022 compared to December 31, 2021. D uring the three months ended March 31, 2022, t he Company had one new TDR totaling $0.3 million in the commercial real estate segment, offset by $1.2 million of principal pay-downs. This new TDR loan was restructured with enhanced payment terms as a result of a forbearance agreement. TDRs of $3.8 million and $3.6 million as of March 31, 2022 and December 31, 2021 , respectively, were loans modified as TDRs that experienced a payment default subsequent to the rework date and were classified as nonperforming. During the three months ended March 31, 2022, the Company modified no loans that constituted a TDR that had significant commitments to lend additional funds. There were no TDR payment defaults during the three months ended March 31, 2022 or March 31, 2021. For purposes of this disclosure, a TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. The specific reserve portion of the ACL on TDRs, if required, is determined by discounting the restructured cash flow at the original effective rate of the loan before modification or is based on the fair value of the collateral less cost to sell, if repayment of the loan is collateral dependent. If the resulting amount is less than the recorded book value, the Company either establishes a valuation allowance as a component of the ACL or charges off the individually evaluated loan balance if it determines that such amount is a quantifiable loss. This method is used consistently for all segments of the portfolio. The following table presents nonperforming assets as of the dates presented: Nonperforming Assets (Dollars in Thousands) March 31, 2022 December 31, 2021 Nonperforming Assets Nonaccrual loans $ 3,475 $ 3,847 Nonaccrual TDRs 3,822 3,550 Total Nonaccrual Loans 7,297 7,397 Other Real Estate Owned, or (“OREO”) 11,253 10,916 Total Nonperforming Assets $ 18,550 $ 18,313 As of March 31, 2022 and December 31, 2021, the Company had $854.9 thousand and $254.0 thousand, respectively, of residential real estate in the process of foreclosure. We also had $24.7 thousand at March 31, 2022 and $62.0 thousand at December 31, 2021 in residential real estate included in OREO. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES The Company maintains an ACL at a level determined to be adequate to absorb expected credit losses associated with the Company’s financial instruments over the life of those instruments as of the balance sheet date. The Company develops and documents a systematic ACL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Residential Mortgages, 4) Other Consumer, 5) Construction and 6) Other. The Company’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles. The segmentation in the current expected credit losses, (“CECL”), model is different from the segmentation in the Incurred Loss model. The following is a discussion of the key risks by portfolio segment that management assesses in preparing the ACL. CRE loans are secured by commercial purpose real estate, including both owner occupied properties and investment properties, for various purposes such as hotels, strip malls and apartments. Operations of the individual projects as well as global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type as well as the business. C&I loans are made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the borrower is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the borrower. Collateral for these types of loans often do not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. These loans are also made to local and state municipalities for various purposes including refinancing existing obligations, infrastructure up-fit and expansion, or to purchase new equipment. These loans may be secured by general obligations from the municipal authority or revenues generated by infrastructure and equipment financed by the Company. The primary repayment source for these loans include the tax base of the municipality, specific revenue streams related to the infrastructure financed, and other business operations of the municipal authority. The health and stability of state and local economies directly impacts each municipality’s tax basis and are important indicators of risk for this segment. The ability of each municipality to increase taxes and fees to offset debt service requirements give this type of loan a very low risk profile in the continuum of the Company’s loan portfolio. Residential Mortgages are loans secured by first and second liens such as home equity loans, home equity lines of credit and 1-4 family residential mortgages, including purchase money mortgages. The primary source of repayment for these loans is the income of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt. Other Consumer loans are made to individuals and may be either secured by assets other than 1-4 family residences or unsecured. This segment includes auto loans and unsecured loans and lines. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values. Construction loans include both commercial and consumer. Commercial loans are made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer. Consumer loans are made for the construction of residential homes for which a binding sales contract exists and generally are for a period of time sufficient to complete construction. Residential construction loans to individuals generally provide for the payment of interest only during the construction phase. Credit risk for residential real estate construction loans can arise from construction delays, cost overruns, failure of the contractor to complete the project to specifications and economic conditions that could impact demand for or supply of the property being constructed. Other loans include unique risk attributes considered inconsistent with our current underwriting standards. The ACL reserve for the Other segment is based on a discounted cash flow methodology and reserves will fluctuate based on expected cash flow changes in the future. These inconsistencies may include, but are not limited to i) transaction and/or relationship sizes that exceed limits established in 2018, ii) overreliance on secondary, tertiary or guarantor cash flow, iii) land acquisition loans without a defined source of amortization, and iv) loan structures on operating lines of credit dependent on the value of real estate rather than trading assets. Management continuously assesses underwriting standards, but significantly enhanced these standards in 2018. Our model is based on our best estimate of facts known with the most current information. Certain portions of the CECL model are inherently subjective and include, but are not limited to estimates with respect to: prepayment speeds, the timing of prepayments, potential losses given default, discount rates and the timing of future cash flows. Management utilizes widely published economic forecasts as the basis for the regression analysis used to estimate the probability of default in the baseline model. The peaks and troughs of these forecasts serve as guardrails for potential subjective adjustments. In addition to considering the outcomes based on the range of forecasts, management recognizes that the assumptions used in economic forecasts may not perfectly align with our market area, risk profile or unique attributes of our portfolio along with other important considerations. Severe changes in forecasts can also create significant variability and management must assess not only the absolute balance of reserves but also consider the appropriateness of the velocity of change. Therefore, management developed a framework to assess the tolerance and reasonableness of the CECL modeling process by challenging certain elements of the forecasts, when appropriate. These outcomes, known as “challenger models,” provide opportunities to examine and subjectively adjust the CECL model output and are designed to be counter cyclical, thereby reducing variability. Credit Quality Indicators: The Company’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on debt service coverage, collateral values and other subjective factors. Mortgage and consumer loans are defaulted to a pass grade until a loan migrates to past due status. The Company has a loan review policy and annual scope report that details the level of loan review for loans in a given year. The annual loan review provides the Credit Risk Committee with an independent analysis of the following: 1) credit quality of the loan portfolio, 2) compliance with the loan policy, 3) adequacy of documentation in credit files and 4) validity of risk ratings. Since 2020 and continuing into 2022, the Company used a five step approach for loan review in the following categories: • Individual reviews of the top twenty large loan relationships (“LLRs”), which are defined as any individual commercial loan or aggregate commercial relationship totaling $2.0 million or more; • A sampling of small LLRs, which are defined as individual commercial loans or relationships with aggregate exposure of $2.0 million or more but not included in the top twenty LLRs; • A sampling review of Credit Risk Committee modifications, including new and existing loans to provide perspective on the appropriateness of the modification in relation to established policies and procedures; • A sampling review of non-organic commercial loans and those commercial loans approved outside of the Credit Risk Committee; and • Focus reviews of office and land development to evaluate segment risk rather than individual loan risk. Focus reviews are performed annually on a rotational basis. The Company’s internally assigned grades are as follows: Pass – The Company uses six grades of pass. Generally, a pass rating indicates that the loan is currently performing and is of high quality. Special Mention – Assets with potential weaknesses that warrant management’s close attention and if left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Substandard – Assets that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. Such assets are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Assets with all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. Loss – Assets considered of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The ability of borrowers to repay commercial loans is dependent upon the success of their business and general economic conditions. Due to the greater potential for loss within our commercial portfolio, we monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans rated special mention or substandard have potential or well-defined weaknesses not generally found in high quality, performing loans, and require attention from management to limit loss. The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the periods presented: March 31, 2022 Risk Rating (Dollars in Thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Total Commercial Real Estate Pass $ 57,112 $ 201,879 $ 161,037 $ 206,487 $ 262,968 $ 408,942 $ 36,672 $ 1,335,097 Special Mention — 226 — — — 4,526 — 4,752 Substandard — — — 308 2,705 344 — 3,357 Total Commercial Real Estate $ 57,112 $ 202,105 $ 161,037 $ 206,795 $ 265,673 $ 413,812 $ 36,672 $ 1,343,206 Commercial and Industrial Pass $ 18,555 $ 50,907 $ 47,379 $ 17,226 $ 32,494 $ 165,618 $ 5,263 $ 337,442 Special Mention — — — — 6 — — 6 Substandard — 10 6 58 4,885 2,800 138 7,897 Total Commercial and Industrial $ 18,555 $ 50,917 $ 47,385 $ 17,284 $ 37,385 $ 168,418 $ 5,401 $ 345,345 Residential Mortgages Pass $ 21,999 $ 171,931 $ 86,745 $ 57,914 $ 76,535 $ 48,590 $ 15,216 $ 478,930 Special Mention — — — — 437 543 — 980 Substandard — — — 1,003 679 1,790 — 3,472 Total Residential Mortgages $ 21,999 $ 171,931 $ 86,745 $ 58,917 $ 77,651 $ 50,923 $ 15,216 $ 483,382 Other Consumer Pass $ 4,570 $ 7,981 $ 9,240 $ 692 $ 357 $ 20,052 $ 339 $ 43,231 Special Mention — — — — — — — — Substandard — 10 2 14 4 27 — 57 Total Other Consumer $ 4,570 $ 7,991 $ 9,242 $ 706 $ 361 $ 20,079 $ 339 $ 43,288 Construction Pass $ 6,853 $ 163,951 $ 91,596 $ 11,854 $ 15,822 $ 17,730 $ 11,890 $ 319,696 Special Mention — — — — — 74 — 74 Substandard — — 440 — 95 885 — 1,420 Total Construction $ 6,853 $ 163,951 $ 92,036 $ 11,854 $ 15,917 $ 18,689 $ 11,890 $ 321,190 Other Pass $ — $ — $ — $ — $ — $ 185,132 $ — $ 185,132 Special Mention — — — — — 3,233 — 3,233 Substandard — — — — 87,329 81,899 — 169,228 Total Other Loans $ — $ — $ — $ — $ 87,329 $ 270,264 $ — $ 357,593 Total Portfolio Loans Pass $ 109,089 $ 596,649 $ 395,997 $ 294,173 $ 388,176 $ 846,064 $ 69,380 $ 2,699,528 Special Mention — 226 — — 443 8,376 — 9,045 Substandard — 20 448 1,383 95,697 87,745 138 185,431 Total Portfolio Loans $ 109,089 $ 596,895 $ 396,445 $ 295,556 $ 484,316 $ 942,185 $ 69,518 $ 2,894,004 December 31, 2021 Risk Rating (Dollars in Thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial Real Estate Pass $ 195,441 $ 165,100 $ 215,575 $ 292,857 $ 115,024 $ 292,197 $ 38,382 $ 1,314,576 Special Mention 229 — — — 4,205 826 — 5,260 Substandard — — 314 2,742 215 145 — 3,416 Total Commercial Real Estate $ 195,670 $ 165,100 $ 215,889 $ 295,599 $ 119,444 $ 293,168 $ 38,382 $ 1,323,252 Commercial and Industrial Pass $ 55,173 $ 50,087 $ 15,648 $ 38,298 $ 23,575 $ 150,656 $ 3,857 $ 337,294 Special Mention — — — 8 — — — 8 Substandard 14 — 308 4,815 2,798 — 139 8,074 Total Commercial and Industrial $ 55,187 $ 50,087 $ 15,956 $ 43,121 $ 26,373 $ 150,656 $ 3,996 $ 345,376 Residential Mortgages Pass $ 155,892 $ 91,023 $ 63,682 $ 73,333 $ 8,640 $ 48,087 $ 13,237 $ 453,894 Special Mention — — — — — 553 — 553 Substandard — — 1,008 743 188 1,602 — 3,541 Total Residential Mortgages $ 155,892 $ 91,023 $ 64,690 $ 74,076 $ 8,828 $ 50,242 $ 13,237 $ 457,988 Other Consumer Pass $ 9,353 $ 10,199 $ 979 $ 450 $ 186 $ 23,048 $ 339 $ 44,554 Special Mention — — — — — — — — Substandard 11 3 11 57 30 — — 112 Total Other Consumer $ 9,364 $ 10,202 $ 990 $ 507 $ 216 $ 23,048 $ 339 $ 44,666 Construction Pass $ 140,639 $ 82,523 $ 24,336 $ 9,739 $ 5,328 $ 3,407 $ 15,269 $ 281,241 Special Mention — — 175 — — 429 — 604 Substandard — 107 809 95 — 91 — 1,102 Total Construction $ 140,639 $ 82,630 $ 25,320 $ 9,834 $ 5,328 $ 3,927 $ 15,269 $ 282,947 Other Pass $ — $ — $ — $ — $ 122,848 $ 62,399 $ — $ 185,247 Special Mention — — — — — 3,281 — 3,281 Substandard — — — 87,329 40,882 41,161 — 169,372 Total Other Loans $ — $ — $ — $ 87,329 $ 163,730 $ 106,841 $ — $ 357,900 Total Portfolio Loans Pass $ 556,498 $ 398,932 $ 320,220 $ 414,677 $ 275,601 $ 579,794 $ 71,084 $ 2,616,806 Special Mention 229 — 175 8 4,205 5,089 — 9,706 Substandard 25 110 2,450 95,781 44,113 42,999 139 185,617 Total Portfolio Loans $ 556,752 $ 399,042 $ 322,845 $ 510,466 $ 323,919 $ 627,882 $ 71,223 $ 2,812,129 The following table presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of the periods presented. March 31, 2022 (Dollars in Thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Total Commercial Real Estate Performing $ 57,112 $ 202,105 $ 161,037 $ 206,487 $ 262,967 $ 413,547 $ 36,672 $ 1,339,927 Nonperforming — — — 308 2,706 265 — 3,279 Total Commercial Real Estate $ 57,112 $ 202,105 $ 161,037 $ 206,795 $ 265,673 $ 413,812 $ 36,672 $ 1,343,206 Commercial and Industrial Performing $ 18,555 $ 50,917 $ 47,379 $ 17,226 $ 37,381 $ 168,415 $ 5,264 $ 345,137 Nonperforming — — 6 58 4 3 137 208 Total Commercial and Industrial $ 18,555 $ 50,917 $ 47,385 $ 17,284 $ 37,385 $ 168,418 $ 5,401 $ 345,345 Residential Mortgages Performing $ 21,999 $ 171,931 $ 86,745 $ 57,914 $ 77,214 $ 49,547 $ 15,216 $ 480,566 Nonperforming — — — 1,003 437 1,376 — 2,816 Total Residential Mortgages $ 21,999 $ 171,931 $ 86,745 $ 58,917 $ 77,651 $ 50,923 $ 15,216 $ 483,382 Other Consumer Performing $ 4,570 $ 7,991 $ 9,240 $ 695 $ 357 $ 20,076 $ 339 $ 43,268 Nonperforming — — 2 11 4 3 — 20 Total Other Consumer $ 4,570 $ 7,991 $ 9,242 $ 706 $ 361 $ 20,079 $ 339 $ 43,288 Construction Performing $ 6,853 $ 163,951 $ 91,929 $ 11,854 $ 15,917 $ 17,822 $ 11,890 $ 320,216 Nonperforming — — 107 — — 867 — 974 Total Construction $ 6,853 $ 163,951 $ 92,036 $ 11,854 $ 15,917 $ 18,689 $ 11,890 $ 321,190 Other Performing $ — $ — $ — $ — $ 87,329 $ 270,264 $ — $ 357,593 Nonperforming — — — — — — — — Total Other Loans $ — $ — $ — $ — $ 87,329 $ 270,264 $ — $ 357,593 Total Portfolio Loans Performing $ 109,089 $ 596,895 $ 396,330 $ 294,176 $ 481,165 $ 939,671 $ 69,381 $ 2,886,707 Nonperforming — — 115 1,380 3,151 2,514 137 7,297 Total Portfolio Loans $ 109,089 $ 596,895 $ 396,445 $ 295,556 $ 484,316 $ 942,185 $ 69,518 $ 2,894,004 December 31, 2021 (Dollars in Thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial Real Estate Performing $ 195,670 $ 165,100 $ 215,575 $ 292,857 $ 119,229 $ 293,102 $ 38,382 $ 1,319,915 Nonperforming — — 314 2,742 215 66 — 3,337 Total Commercial Real Estate $ 195,670 $ 165,100 $ 215,889 $ 295,599 $ 119,444 $ 293,168 $ 38,382 $ 1,323,252 Commercial and Industrial Performing $ 55,187 $ 50,087 $ 15,648 $ 43,117 $ 26,373 $ 150,656 $ 3,857 $ 344,925 Nonperforming — — 308 4 — — 139 451 Total Commercial and Industrial $ 55,187 $ 50,087 $ 15,956 $ 43,121 $ 26,373 $ 150,656 $ 3,996 $ 345,376 Residential Mortgages Performing $ 155,892 $ 91,023 $ 63,682 $ 73,564 $ 8,640 $ 49,399 $ 13,237 $ 455,437 Nonperforming — — 1,008 512 188 843 — 2,551 Total Residential Mortgages $ 155,892 $ 91,023 $ 64,690 $ 74,076 $ 8,828 $ 50,242 $ 13,237 $ 457,988 Other Consumer Performing $ 9,364 $ 10,202 $ 979 $ 450 $ 211 $ 23,048 $ 339 $ 44,593 Nonperforming — — 11 57 5 — — 73 Total Other Consumer $ 9,364 $ 10,202 $ 990 $ 507 $ 216 $ 23,048 $ 339 $ 44,666 Construction Performing $ 140,639 $ 82,523 $ 24,511 $ 9,834 $ 5,328 $ 3,858 $ 15,269 $ 281,962 Nonperforming — 107 809 — — 69 — 985 Total Construction $ 140,639 $ 82,630 $ 25,320 $ 9,834 $ 5,328 $ 3,927 $ 15,269 $ 282,947 Other Performing $ — $ — $ — $ 87,329 $ 163,730 $ 106,841 $ — $ 357,900 Nonperforming — — — — — — — Total Other Loans $ — $ — $ — $ 87,329 $ 163,730 $ 106,841 $ — $ 357,900 Total Portfolio Loans Performing $ 556,752 $ 398,935 $ 320,395 $ 507,151 $ 323,511 $ 626,904 $ 71,084 $ 2,804,732 Nonperforming — 107 2,450 3,315 408 978 139 7,397 Total Portfolio Loans $ 556,752 $ 399,042 $ 322,845 $ 510,466 $ 323,919 $ 627,882 $ 71,223 $ 2,812,129 March 31, 2022 (Dollars in Thousands) Current Loans Loans Total Nonaccrual Total Portfolio Commercial Real Estate $ 1,339,809 $ 118 $ — $ 118 $ 3,279 $ 1,343,206 Commercial and Industrial 345,030 46 61 107 208 345,345 Residential Mortgages 480,433 133 — 133 2,816 483,382 Other Consumer 42,967 166 135 301 20 43,288 Construction 320,020 196 — 196 974 321,190 Other 357,593 — — — — 357,593 Total $ 2,885,852 $ 659 $ 196 $ 855 $ 7,297 $ 2,894,004 December 31, 2021 (Dollars in Thousands) Current Loans Loans Total Nonaccrual Total Portfolio Commercial Real Estate $ 1,319,686 $ 229 $ — $ 229 $ 3,337 $ 1,323,252 Commercial and Industrial 344,628 80 217 297 451 345,376 Residential Mortgages 454,754 683 — 683 2,551 457,988 Other Consumer 44,132 367 94 461 73 44,666 Construction 281,962 — — — 985 282,947 Other 357,900 — — — — 357,900 Total $ 2,803,062 $ 1,359 $ 311 $ 1,670 $ 7,397 $ 2,812,129 Loans past due 90 days or more and still accruing were zero at March 31, 2022 and December 31, 2021. Loans past due 90 days are automatically transferred to nonaccrual status. Loans past due 30 to 89 days or more and still accruing decreased $0.8 million to $0.9 million at March 31, 2022 compared to $1.7 million at December 31, 2021 in all loan categories except construction, which increased $0.2 million. There were no nonaccrual or past due loans related to loans held-for-sale at March 31, 2022 or December 31, 2021. The following table presents loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan as of March 31, 2022. For the three months ended March 31, 2022, the amount of interest income on nonaccrual loans was immaterial. March 31, 2022 (Dollars in Thousands) Beginning of End of Nonaccrual Past Due Commercial Real Estate $ 3,337 $ 3,279 $ — $ — Commercial and Industrial 451 208 — — Residential Mortgages 2,551 2,816 — — Other Consumer 73 20 — — Construction 985 974 808 — Other — — — — Total Portfolio Loans $ 7,397 $ 7,297 $ 808 $ — A loan is considered impaired when it is transferred to nonaccrual status, or remains on accrual status, but is considered a TDR. Impaired loans with a commitment of $1.0 million or more are individually evaluated. During the three months ended March 31, 2022, no material amount of interest income was recognized on individually evaluated loans subsequent to their classification as individually evaluated loans. The following table presents the amortized cost basis of collateral-dependent individually evaluated loans as of the periods presented. Changes in the fair value of the types of collateral for individually evaluated loans are reported as credit loss expense or a reversal of credit loss expense in the period of change. Type of Collateral March 31, 2022 December 31, 2021 (Dollars in Thousands) Real Estate Real Estate Commercial Real Estate $ 2,705 $ 2,742 Commercial and Industrial — — Residential Mortgages — — Other Consumer — — Construction 808 808 Other — — Total $ 3,513 $ 3,550 The following tables present activity in the ACL for the periods presented: Three Months Ended March 31, 2022 (Dollars in Thousands) Commercial Commercial Residential Other Construction Other Total Allowance for Credit Losses on Loans: Balance at Beginning of Period $ 17,297 $ 4,111 $ 4,368 $ 1,493 $ 6,939 $ 61,731 $ 95,939 Provision for Credit Losses on Loans 221 (529) 169 303 466 — 630 Charge-offs — — (17) (435) — — (452) Recoveries — 1 — 109 149 — 259 Net (Charge-offs) / Recoveries — 1 (17) (326) 149 — (193) Balance at End of Period $ 17,518 $ 3,583 $ 4,520 $ 1,470 $ 7,554 $ 61,731 $ 96,376 Three Months Ended March 31, 2021 (Dollars in Thousands) Commercial Commercial Residential Other Construction Other Total Allowance for Credit Losses on Loans: Balance at Beginning of Period $ 36,428 $ 5,064 $ 2,099 $ 2,479 $ 8,004 $ — $ 54,074 Impact of CECL Adoption 6,587 1,379 3,356 (877) (80) 51,277 $ 61,642 Provision for Credit Losses on Loans (673) (1,538) (255) 478 (879) 4,724 1,857 Charge-offs — (1) (195) (870) — — (1,066) Recoveries — 1 166 137 61 — 365 Net (Charge-offs) / Recoveries — — (29) (733) 61 — (701) Balance at End of Period $ 42,342 $ 4,905 $ 5,171 $ 1,347 $ 7,106 $ 56,001 $ 116,872 The adoption of ASU 2016-13 resulted in an increase to our ACL of $61.6 million on January 1, 2021 to the ACL and $2.9 million related to the life-of-loss reserve on unfunded loan commitments. The increase primarily included an expected credit loss of $51.3 million established based on a modified discounted cash flow method on expected cash flow changes in the future for the Other segment. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We use fair value measurements when recording and disclosing certain financial assets and liabilities. Securities available-for-sale and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held-for-sale, impaired loans, OREO, and certain other assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which are developed based on market data we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that an entity has the ability to access as of the measurement date, or observable inputs. 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, and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. We recognize transfers between any of the fair value hierarchy levels at the end of the reporting period in which the transfer occurred. The following are descriptions of the valuation methodologies that we use for financial instruments recorded at fair value on either a recurring or nonrecurring basis. Recurring Basis Securities Available-for-Sale: The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges, if available. This valuation method is classified as Level 1 in the fair value hierarchy. For securities where quoted prices are not available, fair values are calculated on market prices of similar securities, or matrix pricing, which is a mathematical technique, used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Matrix pricing relies on the securities’ relationship to similarly traded securities, benchmark curves, and the benchmarking of like securities. Matrix pricing utilizes observable market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. In instances where broker quotes are used, these quotes are obtained from market makers or broker-dealers recognized to be market participants. This valuation method is classified as Level 2 in the fair value hierarchy. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. This valuation method is classified as Level 3 in the fair value hierarchy. Derivative Financial Instruments and Hedging Activities: The Company uses derivative instruments such as interest rate swaps for commercial loans with our customers. Upon entering into swaps with the borrower, the Company entered into offsetting positions with counterparties to minimize risk to the Company. The back-to-back swaps qualify as derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with borrower and counterparties and their ability to meet contractual terms. We calculate the fair value for derivatives using accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Each valuation considers the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, such as interest rate curves and implied volatilities. When the fair value of a derivative instrument contract is positive, this generally indicates that the counterparty or customer owes the Company, and results in credit risk to the Company. When the fair value of a derivative instrument contract is negative, the Company owes the customer or counterparty, and, therefore, has no risk. Accordingly, interest rate swaps for commercial loans are classified as Level 2. The Company also enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans to be held-for-sale are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 90 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on rate lock commitments due to changes in interest rates. Nonrecurring Basis Individually Evaluated Loans: Individually evaluated loans with commitments greater than or equal to $1.0 million are evaluated for potential specific reserves and adjusted, if a shortfall exists, to fair value less costs to sell. Fair value is measured based on the value of the underlying collateral securing the loan if repayment is expected solely from the sale or operation of the collateral or present value of estimated future cash flows discounted at the loan’s contractual interest rate if the loan is not determined to be collateral dependent. All loans with a specific reserve are classified as Level 3 in the fair value hierarchy. Fair value for individually evaluated loans is determined using several methods. Generally, the fair value of real estate is determined based on appraisals by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. These routine adjustments are made to adjust the value of a specific property relative to comparable properties for variations in qualities such as location, size, and income production capacity relative to the subject property of the appraisal. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Subsequent to the initial impairment date, existing individually evaluated loans are reevaluated quarterly for additional impairment and adjustments to fair value less costs to sell are made, where appropriate. For individually evaluated loans, the first stage of our impairment analysis involves inspection of the property in question to affirm the condition has not deteriorated since the previous impairment analysis date. Management also engages in conversations with local real estate professionals and market participants to determine the likely marketing time and value range for the property. The second stage involves an assessment of current trends in the regional market. After thorough consideration of these factors, management will order a new appraisal. OREO is evaluated at the time of acquisition and is recorded at fair value as determined by an appraisal or evaluation, less costs to sell. After acquisition, most OREO assets are revalued every twelve months, or more frequently when deemed necessary by management based upon changes in market or collateral conditions. For smaller OREO assets with existing carrying values less than $0.5 million, management may elect to re-value the assets, at minimum, once every twenty-four months based on the size of the exposure. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Appraisals on OREO may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. OREO and other repossessed assets marked to fair value are classified as Level 3. At March 31, 2022 OREO assets were in compliance with the OREO policy as set forth above, and substantially all of the assets were listed for sale with credible third-party real estate brokers. Financial assets measured at fair value on a recurring basis are summarized below for the periods presented: March 31, 2022 (Dollars in Thousands) Carrying Quoted Prices in Significant Other Significant Assets Securities Available-for-Sale: U.S. Treasury Securities $ 18,609 $ 18,609 $ — $ — U.S. Government Agency Securities 3,237 — 3,237 — Residential Mortgage-Backed Securities 115,722 — 115,722 — Commercial Mortgage-Backed Securities 43,645 — 43,645 — Asset Backed Securities 85,440 4,996 80,444 — Collateralized Mortgage Obligations 305,009 7,818 297,191 — Small Business Administration 68,706 3,296 65,410 — States and Political Subdivisions 270,743 4,115 266,628 — Corporate Notes 70,930 — 59,865 11,065 Total Securities Available-for-Sale 982,041 38,834 932,142 11,065 Derivatives 10,781 — 10,781 — Total $ 992,822 $ 38,834 $ 942,923 $ 11,065 Liabilities Derivatives $ 10,651 $ — $ 10,651 $ — Total $ 10,651 $ — $ 10,651 $ — December 31, 2021 (Dollars in Thousands) Carrying Quoted Prices in Significant Other Significant Assets Securities Available-for-Sale: U.S. Treasury Securities $ 4,413 $ 4,413 $ — $ — U.S. Government Agency Securities 3,478 — 3,478 — Residential Mortgage-Backed Securities 110,013 — 110,013 — Commercial Mortgage-Backed Securities 4,168 — 4,168 — Asset Backed Securities 81,863 — 81,863 — Collateralized Mortgage Obligations 287,614 — 287,614 — Small Business Administration 108,914 — 108,914 — States and Political Subdivisions 262,202 — 262,202 — Corporate Notes 59,735 — 51,177 8,558 Total Securities Available-for-Sale 922,400 4,413 909,429 8,558 Derivatives 3,508 — 3,508 — Total $ 925,908 $ 4,413 $ 912,937 $ 8,558 Liabilities Derivatives $ 3,682 $ — $ 3,682 $ — Total $ 3,682 $ — $ 3,682 $ — We have invested in subordinated debt of other financial institutions. We have three securities totaling $11.1 million that are considered to be Level 3 securities at March 31, 2022 and two totaling $8.6 million at December 31, 2021. The change in the fair value of Level 3 securities available-for-sale from $8.6 million at December 31, 2021 to $11.1 million at March 31, 2022 is attributable to a change in the fair value level of an existing security in the amount of $2.9 million, offset by the change in calculated fair value of $0.4 million. The existing security was previously valued by an independent third party based upon a trade desktop evaluation, but is now performed internally using the same approach applied to the other Level 3 securities. The Level 3 fair value is benchmarked to other securities that have observable market values in Level 2 using comparable financial ratio analysis specific to the industry in which the underlying company operates. The underwriting includes considerations of capital adequacy, asset quality trends, management’s ability to continue efficient and profitable operations, the institution’s core earnings ability, liquidity management platform and current on and off-balance sheet interest rate risk exposures. Financial assets measured at fair value on a nonrecurring basis are summarized below for the periods presented: March 31, 2022 (Dollars in Thousands) Level 1 Level 2 Level 3 Fair Value OREO $ — $ — $ 11,253 $ 11,253 Individually Evaluated Loans $ — $ — $ 1,777 $ 1,777 December 31, 2021 (Dollars in Thousands) Level 1 Level 2 Level 3 Fair Value OREO $ — $ — $ 10,916 $ 10,916 Individually Evaluated Loans $ — $ — $ 1,777 $ 1,777 Individually evaluated loans had a net carrying amount of $1.8 million at March 31, 2022 with a valuation allowance of $0.9 million. Individually evaluated loans had a net carrying amount of $1.8 million at December 31, 2021 with a valuation allowance of $1.0 million. OREO, which is measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $11.3 million as of March 31, 2022, compared with $10.9 million at December 31, 2021. We had $0.1 million write-downs recorded on OREO for the three months ended March 31, 2022 and for the same period in 2021. The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis for the periods presented: March 31, 2022 (Dollars in Thousands) Fair Valuation Unobservable Weighted Average Assets Individually Evaluated Loans $ 1,777 Discounted Appraisals Management's Discount & Estimated Selling Costs 53.0 % 53.0 % Total Individually Evaluated Loans $ 1,777 OREO $ 9,801 Appraisals Estimated Selling Costs 10.0 % 10.0 % OREO 627 Executed Sales Agreement Estimated Selling Costs 5.0 % 5.0 % OREO 190 Internal Valuations Estimated Selling Costs 5.0 % 5.0 % OREO 635 Discounted Internal Valuations Management’s Discount & Estimated Selling Costs 7.3% – 50.7% 30.5 % Total OREO $ 11,253 December 31, 2021 (Dollars in Thousands) Fair Valuation Unobservable Weighted Average Assets Individually Evaluated Loans 1,777 Discounted Appraisals Management's Discount & Estimated Selling Costs 53.0 % 53.0 % Total Individually Evaluated Loans $ 1,777 OREO $ 9,946 Appraisals Estimated Selling Costs 10.0 % 10.0 % OREO 190 Internal Valuations Estimated Selling Costs 5.0 % 5.0 % OREO 780 Discounted Internal Valuations Management’s Discount & Estimated Selling Costs 5.0% - 50.7% 20.3 % Total OREO $ 10,916 A baseline discount rate has been established for impairment measurement. This baseline discount rate was back tested against historical OREO sales and therefore represents an average recovery rate based on the transaction sizes and asset types in the population examined. Management considers the unique attributes and characteristics of each specific individually evaluated loan and may use judgement to adjust the baseline discount rate when appropriate. The carrying values and estimated fair values of our financial instruments at March 31, 2022 and December 31, 2021 are presented in the following tables. Fair values for March 31, 2022 and December 31, 2021 are estimated under the exit price notion in accordance with ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” GAAP requires disclosure of fair value information about financial instruments carried at book value on the Consolidated Balance Sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. Fair Value Measurements at March 31, 2022 (Dollars in Thousands) Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Cash Equivalents $ 108,036 $ 38,534 $ 69,502 $ — $ 108,036 Securities Available-for-Sale 982,041 38,834 932,142 11,065 982,041 Loans Held-for-Sale 196 — — 196 196 Portfolio Loans, net 2,797,628 — — 2,770,247 2,770,247 Federal Home Loan Bank Stock, at Cost 2,067 — — NA NA Other Assets- Interest Rate Derivatives 10,781 — 10,781 — 10,781 Accrued Interest Receivable 16,727 34 3,791 12,902 16,727 Financial Liabilities: Deposits $ 3,728,278 $ 708,353 $ 1,735,455 $ 1,308,271 $ 3,752,079 Other Liabilities- Interest Rate Derivatives 10,651 — 10,651 — 10,651 FHLB Borrowings — — — — — Accrued Interest Payable 1,333 — — 1,333 1,333 Fair Value Measurements at December 31, 2021 (Dollars in Thousands) Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Cash Equivalents $ 277,799 $ 36,698 $ 241,101 $ — $ 277,799 Securities Available-for-Sale 922,400 4,413 909,429 8,558 922,400 Loans Held-for-Sale 228 — — 228 228 Portfolio Loans, net 2,716,190 — — 2,689,578 2,689,578 Federal Home Loan Bank Stock, at Cost 2,352 — — NA NA Other Assets- Interest Rate Derivatives 3,508 — 3,508 — 3,508 Accrued Interest Receivable 17,178 17 3,462 13,699 17,178 Financial Liabilities: Deposits $ 3,698,476 $ 747,909 $ 1,606,249 $ 1,369,228 $ 3,723,386 Other Liabilities- Interest Rate Derivatives 3,682 — 3,682 — 3,682 FHLB Borrowings 7,000 — — 7,035 7,035 Accrued Interest Payable 1,378 — — 1,378 1,378 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In accordance with applicable accounting guidance for derivatives and hedging, all derivatives are recognized as either assets or liabilities on the Consolidated Balance Sheet at fair value. Interest rate swaps are contracts in which a series of interest rate flows (fixed and variable) are exchanged over a prescribed period. The notional amounts on which the interest payments are based are not exchanged. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a commercial customer while at the same time entering into an offsetting interest rate swap with another financial institution, or counterparty. In connection with each transaction, the Company originates a floating rate loan to the customer at a notional amount. In turn, the customer contracts with the counterparty to swap the stream of cash flows associated with the floating interest rate loan with the Company for a stream of fixed interest rate cash flows based on the same notional amount as the Company’s loan. The transaction allows the customer to effectively convert a variable rate loan to a fixed rate loan with the Company receiving a variable rate. These agreements could have floors or caps on the contracted interest rates. Pursuant to agreements with various financial institutions, the Company may receive collateral or may be required to post collateral based upon mark-to-market positions. Beyond unsecured threshold levels, collateral in the form of cash or securities may be made available to counterparties of interest rate swap transactions. Based upon current positions and related future collateral requirements relating to them, management believes any effect on our cash flow or liquidity position to be immaterial. Derivatives contain an element of credit risk, the possibility that the Company will incur a loss because a counterparty, which may be a financial institution or a customer, fails to meet its contractual obligations. All derivative contracts with financial institutions may be executed only with counterparties approved by the Asset and Liability Committee (“ALCO”) and all derivatives with customers are approved by a team of qualified members from senior management who have been trained to understand the risk associated with interest rate swaps and have past industry experience. Interest rate swaps are considered derivatives but are not accounted for using hedge accounting. As such, changes in the estimated fair value of the derivatives are recorded in current earnings in the Consolidated Statements of Income. The following table indicates the amounts representing the fair value of derivative assets and derivative liabilities at the dates presented: Fair Values of Derivative Instruments March 31, 2022 December 31, 2021 (Dollars in Thousands) Number of Transactions Notional Amount Fair Value Number of Transactions Notional Amount Fair Value Derivatives not Designated as Hedging Instruments Interest Rate Lock Commitments – Mortgage Loans 1 $ 122 $ 4 — $ — $ — Interest Rate Swap Contracts – Commercial Loans 62 389,910 10,777 66 446,490 3,508 Total Derivatives not Designated as Hedging Instruments 63 $ 390,032 $ 10,781 66 $ 446,490 $ 3,508 Fair Values of Derivative Instruments March 31, 2022 December 31, 2021 (Dollars in Thousands) Number of Transactions Notional Amount Fair Value Number of Transactions Notional Amount Fair Value Derivatives not Designated as Hedging Instruments Forward Sale Contracts – Mortgage Loans 1 $ 122 $ 4 — $ — $ — Interest Rate Swap Contracts – Commercial Loans 62 389,910 10,647 66 446,490 3,682 Total Derivatives not Designated as Hedging Instruments 63 $ 390,032 $ 10,651 66 $ 446,490 $ 3,682 The following table indicates the income recognized on derivatives for the periods presented: For the Three Months Ended March 31, (Dollars in Thousands) 2022 2021 Derivatives not Designated as Hedging Instruments Interest Rate Lock Commitments – Mortgage Loans $ 4 $ — Forward Sale Contracts – Mortgage Loans (4) — Interest Rate Swap Contracts – Commercial Loans 304 429 Total Derivative Income $ 304 $ 429 Presenting offsetting derivatives that are subject to legally enforceable netting arrangements with the same party is permitted. For example, we may have a derivative asset and a derivative liability with the same counterparty to a swap transaction and are permitted to offset the asset position and the liability position resulting in a net presentation. The following table indicates the gross amounts of commercial loan swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at the dates presented: Asset Derivatives (Included in Other Assets) Liability Derivatives (Included in Other Liabilities) (Dollars in Thousands) March 31, December 31, March 31, December 31, Derivatives not Designated as Hedging Instruments Gross Amounts Recognized $ 10,777 $ 3,508 $ 10,647 $ 3,682 Gross Amounts Offset — — — — Net Amounts Presented in the Consolidated Balance Sheets 10,777 3,508 10,647 3,682 Gross Amounts Not Offset (1) — — — (4,080) Net Amount $ 10,777 $ 3,508 $ 10,647 $ (398) (1) Amounts represent collateral posted for the periods presented. |
Federal Home Loan Bank Borrowin
Federal Home Loan Bank Borrowings | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Borrowings | FEDERAL HOME LOAN BANK BORROWINGS Borrowings serve as an additional source of liquidity for the Company. Federal Home Loan Bank, or (“FHLB”) borrowings were zero at March 31, 2022 and $7.0 million at December 31, 2021. FHLB borrowings are fixed rate advances for various terms and are secured by a blanket lien on select residential mortgages, select multifamily loans, and select commercial real estate loans. Total loans pledged as collateral were $1.1 billion at both March 31, 2022 and December 31, 2021. There were no securities available-for-sale pledged as collateral at both March 31, 2022 and December 31, 2021. The Company continues to methodically pledge additional eligible loans and expect continued progress in additional pledging throughout the year. The Company is eligible to borrow up to an additional $693.0 million based upon current qualifying collateral and has a maximum borrowing capacity of approximately $1.0 billion, or 25.0% of the Company’s assets, as of March 31, 2022. The Company had the capacity to borrow up to an additional $667.3 million from the FHLB at December 31, 2021. The following table represents the balance of long-term borrowings and the weighted average interest rate as of the periods presented: (Dollars in Thousands) March 31, 2022 December 31, 2021 Long-term Borrowings $ — $ 7,000 Weighted Average Interest Rate — % 1.61 % |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments to extend credit represent agreements to lend to customers with fixed expiration dates or other termination clauses. The Company provides lines of credit to our clients to finance the completion of construction projects and revolving lines of credit to operating companies to finance their working capital needs. Lines of credit for construction projects represented 54.1% and 55.3%, of the commitments to extend credit at March 31, 2022 and December 31, 2021, respectively. Standby letters of credit are conditional commitments issued by the Company guaranteeing the performance of a customer to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements. The following table sets forth our commitments and letters of credit as of the dates presented: (Dollars in Thousands) March 31, 2022 December 31, 2021 Commitments to Extent Credit $ 493,765 $ 513,482 Standby Letters of Credit 26,154 27,083 Total $ 519,919 $ 540,565 Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and unconditional obligations as it does for on-balance sheet instruments. Unless noted otherwise, collateral or other security is required to support financial instruments with credit risk. Life-of-Loss Reserve on Unfunded Loan Commitments We maintain a life-of-loss reserve on unfunded commercial lending commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The life-of-loss reserve is computed using a methodology similar to that used to determine the ACL for loans, modified to take into account the probability of a draw-down on the commitment. The life-of-loan reserve for unfunded commitments is included in other liabilities on our Consolidated Balance Sheets. The following table presents activity in the life-of-loss reserve on unfunded loan commitments as of the dates presented: Three Months Ended March 31, (Dollars in Thousands) 2022 2021 Life-of-Loss Reserve on Unfunded Loan Commitments Balance at Beginning of Period $ 1,783 $ 144 Impact of Adopting ASU 2016-13 — 2,908 Balance after Adoption of ASU 2016-13 $ 1,783 $ 3,052 Provision for Unfunded Commitments (236) (282) Total $ 1,547 $ 2,770 Amounts are added to the provision for unfunded commitments through a charge to current earnings in the provision for unfunded commitments. The provision for unfunded commitments was a release of $0.2 million for the three months ended March 31, 2022 and $0.3 million for the three months ended March 31, 2021. Litigation In the normal course of business, the Company is subject to various legal and administrative proceedings and claims. Legal and administrative proceedings are subject to inherent uncertainties and unfavorable rulings could occur, and the timing and outcome of any legal or administrative proceeding cannot be predicted with certainty. |
Tax Effect On Other Comprehensi
Tax Effect On Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Tax Effect On Other Comprehensive Loss | TAX EFFECTS ON OTHER COMPREHENSIVE LOSS The following table presents the change in components of other comprehensive loss for the periods presented, net of tax effects: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (Dollars in Thousands) Pre-Tax Amount Tax Benefit Net of Tax Amount Pre-Tax Amount Tax (Expense) Benefit Net of Tax Amount Net Unrealized Losses Arising during the period $ (43,032) $ 9,037 $ (33,995) $ (10,494) $ 2,204 $ (8,290) Reclassification Adjustment for Losses (Gains) included in Net Income 24 (5) 19 (3,610) 758 (2,852) Other Comprehensive Loss $ (43,008) $ 9,032 $ (33,976) $ (14,104) $ 2,962 $ (11,142) |
Stock Repurchase Plan
Stock Repurchase Plan | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stock Repurchase Plan | STOCK REPURCHASE PLAN On December 13, 2021, announced that its Board authorized, effective December 10, 2021, a common stock repurchase program to purchase up to two million shares of the Company’s common stock in the aggregate over a period of twelve months. During the quarter ended March 31, 2022, 1,523,157 shares of common stock had been repurchased under this program at an average price of $16.17 per share. During the year ended December 31, 2021 the Company repurchased 30,407 shares of common stock at a total cost of $0.5 million, or an average of $15.22 per share. As of April 28, 2022, the repurchase program to purchase up to two million shares of the Company’s common stock was fully executed. The specific timing, price and quantity of repurchases will be at the Company’s discretion and will depend on a variety of factors, including general market conditions, the trading price of common stock, legal and contractual requirements, applicable securities laws and the Company’s financial performance. The repurchase plan does not obligate the Company to repurchase any particular number of shares. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The interim Consolidated Financial Statements include the accounts of Carter Bankshares, Inc. (the “Company”) and its wholly owned subsidiary, Carter Bank & Trust (the “Bank”). All significant intercompany transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation: The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (“GAAP”), in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (“SEC”), on March 11, 2022. In management’s opinion, the accompanying interim financial information reflects all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position and the results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative to the results of operations that may be expected for a full year or any future period. |
Reclassification | Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. Reclassifications had no material effect on prior year net income or shareholders’ equity. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Those estimates and assumptions affect the amounts reported in the consolidated financial statements and the disclosures provided. Actual results could differ from those estimates. Information available which could affect these judgments include, but are not limited to, changes in interest rates, changes in the performance of the economy, including COVID-19 related changes, and changes in the financial condition of borrowers. The Company did not adopt any new accounting standards in the first quarter of 2022 that had a material impact to our financial statements. |
Accounting Statements Issued but Not Yet Adopted | Accounting Statements Issued but Not Yet Adopted In March 2022, the FASB issued ASU No. 2022-02, which eliminates the troubled debt restructuring (TDR) accounting model for creditors that have adopted Topic 326, “Financial Instruments - Credit Losses.” Due to the removal of the TDR accounting model, all loan modifications now will be evaluated to determine if they result in a new loan or a continuation of the existing loan. The amendments in this ASU also requires that entities disclose current-period gross charge-offs by year of origination for loans and leases. We are currently evaluating the impact of the updated guidance on our Consolidated Financial Statements and write-offs. The amendments in this ASU are effective January 1, 2023, with early adoption permitted. The Company plans to early adopt this ASU in 2022. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The amendments provide optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from the London Interbank Offered Rate (“LIBOR”) toward new interest rate benchmarks. Modified contracts that meet certain scope guidance are eligible for relief from the modification accounting requirements in U.S. GAAP. The optional guidance generally allows for the modified contract to be accounted for as a continuation of the existing contract and does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The amendments in this ASU are effective for all entities between March 12, 2020 and December 31, 2022. Furthermore, the United Kingdom’s Financial Conduct Authority (“FCA”), who is the regulator of LIBOR, announced on March 5, 2021 that they will no longer require any panel bank to continue to submit LIBOR after December 31, 2021. As it pertains to the U.S. dollar LIBOR, the FCA will consider the case to require continued publication of a number of LIBOR settings through June 30, 2023. In a joint statement, Bank regulators urged banks to stop using LIBOR for any new transactions by the end of 2021 to avoid the possible creation of safety and soundness risk. The Federal Reserve System, (“FRB”), of New York has created a working group called the Alternative Reference Rate Committee (“ARRC”) to assist U.S. institutions in transitioning away from LIBOR as a benchmark interest rate. The ARRC has recommended the use of the Secured Overnight Financing Rate (“SOFR”) as a replacement index for LIBOR, and in March 2022 the U.S. Congress passed and the U.S. President signed legislation that provides a uniform approach for replacing LIBOR as a reference rate in legacy contracts that do not contain effective “fall back” provisions for when LIBOR is no longer published or no longer representative, and that instructs the Federal Reserve to identify a replacement benchmark based on SOFR. In response, we have created an internal team that is managing our transition away from LIBOR. This transition team is a cross-functional group comprised of representatives from the lending lines of business, as well as representatives from loan operations, information technology, finance and other support functions. To date, the transition team has completed an assessment of tasks needed for a successful transition, identified contracts that contain LIBOR language, and documented the risks associated with the transition. The team is currently in the process of: i) reviewing existing contract language for the presence of appropriate fallback rate language, ii) developing loan fallback rate language for when LIBOR is retired if needed, and iii) studying industry best practices. We are considering SOFR and other credit-sensitive alternative indices that may gain market acceptance as potential replacements to LIBOR. The financial impact regarding pricing, valuation and operations of the transition is not expected to be material in nature. Our transition team is fully committed to working within the guidelines established by the FCA and ARRC to provide a smooth transition away from LIBOR. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share Calculations | The following table reconciles the numerators and denominators of basic and diluted earnings per share calculations for the periods presented: Three Months Ended March 31, (Dollars in Thousands, except share and per share data) 2022 2021 Numerator for Earnings per Share – Basic and Diluted Net Income $ 9,323 $ 9,375 Less: Income allocated to participating shares 43 46 Net Income Allocated to Common Shareholders - Basic & Diluted $ 9,280 $ 9,329 Denominator: Weighted Average Shares Outstanding, including Shares Considered Participating Securities 25,859,982 26,408,319 Less: Average Participating Securities 119,346 131,429 Weighted Average Common Shares Outstanding - Basic & Diluted 25,740,636 26,276,890 Earnings per Common Share – Basic $ 0.36 $ 0.36 Earnings per Common Share – Diluted $ 0.36 $ 0.36 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value for Available-for-sale Securities | The following tables present the amortized cost and fair value of available-for-sale securities as of the dates presented: March 31, 2022 (Dollars in Thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 19,263 $ — $ (654) $ 18,609 U.S. Government Agency Securities 3,490 — (253) 3,237 Residential Mortgage-Backed Securities 122,266 5 (6,549) 115,722 Commercial Mortgage-Backed Securities 44,302 153 (810) 43,645 Asset Backed Securities 86,545 7 (1,112) 85,440 Collateralized Mortgage Obligations 316,798 52 (11,841) 305,009 Small Business Administration 68,233 591 (118) 68,706 States and Political Subdivisions 288,247 477 (17,981) 270,743 Corporate Notes 73,750 51 (2,871) 70,930 Total Debt Securities $ 1,022,894 $ 1,336 $ (42,189) $ 982,041 December 31, 2021 (Dollars in Thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 4,442 $ — $ (29) $ 4,413 U.S. Government Agency Securities 3,475 3 — 3,478 Residential Mortgage-Backed Securities 112,118 76 (2,181) 110,013 Commercial Mortgage-Backed Securities 4,155 53 (40) 4,168 Asset Backed Securities 82,119 49 (305) 81,863 Collateralized Mortgage Obligations 287,734 2,190 (2,310) 287,614 Small Business Administration 108,643 879 (608) 108,914 States and Political Subdivisions 257,810 6,344 (1,952) 262,202 Corporate Notes 59,750 375 (390) 59,735 Total Debt Securities $ 920,246 $ 9,969 $ (7,815) $ 922,400 |
Schedule of Gross and Net Realized Gains and Losses | The following table shows the composition of gross and net realized gains and losses for the periods presented: Three Months Ended March 31, (Dollars in Thousands) 2022 2021 Proceeds from Sales of Securities Available-for-Sale $ 4,921 $ 64,870 Gross Realized Gains $ — $ 3,629 Gross Realized Losses (24) (19) Net Realized (Losses) Gains (24) 3,610 Tax Impact $ (5) $ 758 |
Schedule of Amortized Cost and Fair Value of Available-for-sale Debt Securities by Contractual Maturity | The amortized cost and fair value of available-for-sale debt securities are shown below by contractual maturity as of the date presented. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. March 31, 2022 (Dollars in Thousands) Amortized Fair Due in One Year or Less $ 400 $ 401 Due after One Year through Five Years 17,407 17,053 Due after Five Years through Ten Years 221,217 213,602 Due after Ten Years 213,959 201,169 Residential Mortgage-Backed Securities 122,266 115,722 Commercial Mortgage-Backed Securities 44,302 43,645 Collateralized Mortgage Obligations 316,798 305,009 Asset Backed Securities 86,545 85,440 Total Debt Securities $ 1,022,894 $ 982,041 |
Schedule of Available-for-sale Securities with Unrealized Losses | Available-for-sale securities with unrealized losses at March 31, 2022 and December 31, 2021, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, were as follows: March 31, 2022 Less Than 12 Months 12 Months or More Total (Dollars in Thousands) Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized U.S. Treasury Securities 5 $ 18,609 $ (654) — $ — $ — 5 $ 18,609 $ (654) U.S. Government Agency Securities 2 3,237 (253) — — — 2 3,237 (253) Residential Mortgage-Backed Securities 37 105,273 (5,886) 7 10,137 (663) 44 115,410 (6,549) Commercial Mortgage-Backed Securities 8 13,340 (467) 51 16,557 (343) 59 29,897 (810) Asset Backed Securities 26 64,279 (775) 8 17,161 (337) 34 81,440 (1,112) Collateralized Mortgage Obligations 94 262,649 (11,055) 12 24,932 (786) 106 287,581 (11,841) Small Business Administration 9 13,725 (66) 3 4,302 (52) 12 18,027 (118) States and Political Subdivisions 140 231,573 (16,129) 13 13,295 (1,852) 153 244,868 (17,981) Corporate Notes 20 66,264 (2,736) 1 2,365 (135) 21 68,629 (2,871) Total Debt Securities 341 $ 778,949 $ (38,021) 95 $ 88,749 $ (4,168) 436 $ 867,698 $ (42,189) December 31, 2021 Less Than 12 Months 12 Months or More Total (Dollars in Thousands) Number Fair Unrealized Number Fair Unrealized Number Fair Unrealized U.S. Treasury Securities 2 $ 4,413 $ (29) — $ — $ — 2 $ 4,413 $ (29) U.S. Government Agency Securities 1 1,733 — — — — 1 1,733 — Residential Mortgage-Backed Securities 30 95,749 (2,030) 7 8,706 (151) 37 104,455 (2,181) Commercial Mortgage-Backed Securities 1 1,987 (40) — — — 1 1,987 (40) Asset Backed Securities 17 44,095 (129) 10 21,895 (176) 27 65,990 (305) Collateralized Mortgage Obligations 50 157,630 (1,945) 11 24,849 (365) 61 182,479 (2,310) Small Business Administration 11 18,813 (235) 53 19,630 (373) 64 38,443 (608) States and Political Subdivisions 56 88,746 (1,503) 8 7,874 (449) 64 96,620 (1,952) Corporate Notes 10 29,683 (317) 1 2,427 (73) 11 32,110 (390) Total Debt Securities 178 $ 442,849 $ (6,228) 90 $ 85,381 $ (1,587) 268 $ 528,230 $ (7,815) |
Loans and Loans Held-For-Sale (
Loans and Loans Held-For-Sale (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio by Dollar Amount | The composition of the loan portfolio by dollar amount is shown in the table below: (Dollars in Thousands) March 31, 2022 December 31, 2021 Commercial Commercial Real Estate $ 1,343,206 $ 1,323,252 Commercial and Industrial 345,345 345,376 Total Commercial Loans 1,688,551 1,668,628 Consumer Residential Mortgages 483,382 457,988 Other Consumer 43,288 44,666 Total Consumer Loans 526,670 502,654 Construction 321,190 282,947 Other 357,593 357,900 Total Portfolio Loans $ 2,894,004 $ 2,812,129 Loans Held-for-Sale 196 228 Total Loans $ 2,894,200 $ 2,812,357 |
Schedule of Troubled Debt Restructurings | The following table summarizes the Company’s TDRs as of the dates presented: March 31, 2022 December 31, 2021 (Dollars in Thousands) Performing Nonperforming Total Performing Nonperforming Total Commercial Commercial Real Estate $ 2,239 $ 3,014 $ 5,253 $ 2,679 $ 2,742 $ 5,421 Commercial and Industrial 11 — 11 14 — 14 Total Commercial TDRs 2,250 3,014 5,264 2,693 2,742 5,435 Consumer Residential Mortgages — — — — — — Other Consumer — — — — — — Total Consumer TDRs — — — — — — Construction — 808 808 527 808 1,335 Other 169,228 — 169,228 169,372 — 169,372 Total TDRs $ 171,478 $ 3,822 $ 175,300 $ 172,592 $ 3,550 $ 176,142 |
Schedule of Nonperforming Assets | The following table presents nonperforming assets as of the dates presented: Nonperforming Assets (Dollars in Thousands) March 31, 2022 December 31, 2021 Nonperforming Assets Nonaccrual loans $ 3,475 $ 3,847 Nonaccrual TDRs 3,822 3,550 Total Nonaccrual Loans 7,297 7,397 Other Real Estate Owned, or (“OREO”) 11,253 10,916 Total Nonperforming Assets $ 18,550 $ 18,313 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Loan Balances by Origination Year and Assigned Risk Rating | The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the periods presented: March 31, 2022 Risk Rating (Dollars in Thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Total Commercial Real Estate Pass $ 57,112 $ 201,879 $ 161,037 $ 206,487 $ 262,968 $ 408,942 $ 36,672 $ 1,335,097 Special Mention — 226 — — — 4,526 — 4,752 Substandard — — — 308 2,705 344 — 3,357 Total Commercial Real Estate $ 57,112 $ 202,105 $ 161,037 $ 206,795 $ 265,673 $ 413,812 $ 36,672 $ 1,343,206 Commercial and Industrial Pass $ 18,555 $ 50,907 $ 47,379 $ 17,226 $ 32,494 $ 165,618 $ 5,263 $ 337,442 Special Mention — — — — 6 — — 6 Substandard — 10 6 58 4,885 2,800 138 7,897 Total Commercial and Industrial $ 18,555 $ 50,917 $ 47,385 $ 17,284 $ 37,385 $ 168,418 $ 5,401 $ 345,345 Residential Mortgages Pass $ 21,999 $ 171,931 $ 86,745 $ 57,914 $ 76,535 $ 48,590 $ 15,216 $ 478,930 Special Mention — — — — 437 543 — 980 Substandard — — — 1,003 679 1,790 — 3,472 Total Residential Mortgages $ 21,999 $ 171,931 $ 86,745 $ 58,917 $ 77,651 $ 50,923 $ 15,216 $ 483,382 Other Consumer Pass $ 4,570 $ 7,981 $ 9,240 $ 692 $ 357 $ 20,052 $ 339 $ 43,231 Special Mention — — — — — — — — Substandard — 10 2 14 4 27 — 57 Total Other Consumer $ 4,570 $ 7,991 $ 9,242 $ 706 $ 361 $ 20,079 $ 339 $ 43,288 Construction Pass $ 6,853 $ 163,951 $ 91,596 $ 11,854 $ 15,822 $ 17,730 $ 11,890 $ 319,696 Special Mention — — — — — 74 — 74 Substandard — — 440 — 95 885 — 1,420 Total Construction $ 6,853 $ 163,951 $ 92,036 $ 11,854 $ 15,917 $ 18,689 $ 11,890 $ 321,190 Other Pass $ — $ — $ — $ — $ — $ 185,132 $ — $ 185,132 Special Mention — — — — — 3,233 — 3,233 Substandard — — — — 87,329 81,899 — 169,228 Total Other Loans $ — $ — $ — $ — $ 87,329 $ 270,264 $ — $ 357,593 Total Portfolio Loans Pass $ 109,089 $ 596,649 $ 395,997 $ 294,173 $ 388,176 $ 846,064 $ 69,380 $ 2,699,528 Special Mention — 226 — — 443 8,376 — 9,045 Substandard — 20 448 1,383 95,697 87,745 138 185,431 Total Portfolio Loans $ 109,089 $ 596,895 $ 396,445 $ 295,556 $ 484,316 $ 942,185 $ 69,518 $ 2,894,004 December 31, 2021 Risk Rating (Dollars in Thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial Real Estate Pass $ 195,441 $ 165,100 $ 215,575 $ 292,857 $ 115,024 $ 292,197 $ 38,382 $ 1,314,576 Special Mention 229 — — — 4,205 826 — 5,260 Substandard — — 314 2,742 215 145 — 3,416 Total Commercial Real Estate $ 195,670 $ 165,100 $ 215,889 $ 295,599 $ 119,444 $ 293,168 $ 38,382 $ 1,323,252 Commercial and Industrial Pass $ 55,173 $ 50,087 $ 15,648 $ 38,298 $ 23,575 $ 150,656 $ 3,857 $ 337,294 Special Mention — — — 8 — — — 8 Substandard 14 — 308 4,815 2,798 — 139 8,074 Total Commercial and Industrial $ 55,187 $ 50,087 $ 15,956 $ 43,121 $ 26,373 $ 150,656 $ 3,996 $ 345,376 Residential Mortgages Pass $ 155,892 $ 91,023 $ 63,682 $ 73,333 $ 8,640 $ 48,087 $ 13,237 $ 453,894 Special Mention — — — — — 553 — 553 Substandard — — 1,008 743 188 1,602 — 3,541 Total Residential Mortgages $ 155,892 $ 91,023 $ 64,690 $ 74,076 $ 8,828 $ 50,242 $ 13,237 $ 457,988 Other Consumer Pass $ 9,353 $ 10,199 $ 979 $ 450 $ 186 $ 23,048 $ 339 $ 44,554 Special Mention — — — — — — — — Substandard 11 3 11 57 30 — — 112 Total Other Consumer $ 9,364 $ 10,202 $ 990 $ 507 $ 216 $ 23,048 $ 339 $ 44,666 Construction Pass $ 140,639 $ 82,523 $ 24,336 $ 9,739 $ 5,328 $ 3,407 $ 15,269 $ 281,241 Special Mention — — 175 — — 429 — 604 Substandard — 107 809 95 — 91 — 1,102 Total Construction $ 140,639 $ 82,630 $ 25,320 $ 9,834 $ 5,328 $ 3,927 $ 15,269 $ 282,947 Other Pass $ — $ — $ — $ — $ 122,848 $ 62,399 $ — $ 185,247 Special Mention — — — — — 3,281 — 3,281 Substandard — — — 87,329 40,882 41,161 — 169,372 Total Other Loans $ — $ — $ — $ 87,329 $ 163,730 $ 106,841 $ — $ 357,900 Total Portfolio Loans Pass $ 556,498 $ 398,932 $ 320,220 $ 414,677 $ 275,601 $ 579,794 $ 71,084 $ 2,616,806 Special Mention 229 — 175 8 4,205 5,089 — 9,706 Substandard 25 110 2,450 95,781 44,113 42,999 139 185,617 Total Portfolio Loans $ 556,752 $ 399,042 $ 322,845 $ 510,466 $ 323,919 $ 627,882 $ 71,223 $ 2,812,129 The following table presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of the periods presented. March 31, 2022 (Dollars in Thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Total Commercial Real Estate Performing $ 57,112 $ 202,105 $ 161,037 $ 206,487 $ 262,967 $ 413,547 $ 36,672 $ 1,339,927 Nonperforming — — — 308 2,706 265 — 3,279 Total Commercial Real Estate $ 57,112 $ 202,105 $ 161,037 $ 206,795 $ 265,673 $ 413,812 $ 36,672 $ 1,343,206 Commercial and Industrial Performing $ 18,555 $ 50,917 $ 47,379 $ 17,226 $ 37,381 $ 168,415 $ 5,264 $ 345,137 Nonperforming — — 6 58 4 3 137 208 Total Commercial and Industrial $ 18,555 $ 50,917 $ 47,385 $ 17,284 $ 37,385 $ 168,418 $ 5,401 $ 345,345 Residential Mortgages Performing $ 21,999 $ 171,931 $ 86,745 $ 57,914 $ 77,214 $ 49,547 $ 15,216 $ 480,566 Nonperforming — — — 1,003 437 1,376 — 2,816 Total Residential Mortgages $ 21,999 $ 171,931 $ 86,745 $ 58,917 $ 77,651 $ 50,923 $ 15,216 $ 483,382 Other Consumer Performing $ 4,570 $ 7,991 $ 9,240 $ 695 $ 357 $ 20,076 $ 339 $ 43,268 Nonperforming — — 2 11 4 3 — 20 Total Other Consumer $ 4,570 $ 7,991 $ 9,242 $ 706 $ 361 $ 20,079 $ 339 $ 43,288 Construction Performing $ 6,853 $ 163,951 $ 91,929 $ 11,854 $ 15,917 $ 17,822 $ 11,890 $ 320,216 Nonperforming — — 107 — — 867 — 974 Total Construction $ 6,853 $ 163,951 $ 92,036 $ 11,854 $ 15,917 $ 18,689 $ 11,890 $ 321,190 Other Performing $ — $ — $ — $ — $ 87,329 $ 270,264 $ — $ 357,593 Nonperforming — — — — — — — — Total Other Loans $ — $ — $ — $ — $ 87,329 $ 270,264 $ — $ 357,593 Total Portfolio Loans Performing $ 109,089 $ 596,895 $ 396,330 $ 294,176 $ 481,165 $ 939,671 $ 69,381 $ 2,886,707 Nonperforming — — 115 1,380 3,151 2,514 137 7,297 Total Portfolio Loans $ 109,089 $ 596,895 $ 396,445 $ 295,556 $ 484,316 $ 942,185 $ 69,518 $ 2,894,004 December 31, 2021 (Dollars in Thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Total Commercial Real Estate Performing $ 195,670 $ 165,100 $ 215,575 $ 292,857 $ 119,229 $ 293,102 $ 38,382 $ 1,319,915 Nonperforming — — 314 2,742 215 66 — 3,337 Total Commercial Real Estate $ 195,670 $ 165,100 $ 215,889 $ 295,599 $ 119,444 $ 293,168 $ 38,382 $ 1,323,252 Commercial and Industrial Performing $ 55,187 $ 50,087 $ 15,648 $ 43,117 $ 26,373 $ 150,656 $ 3,857 $ 344,925 Nonperforming — — 308 4 — — 139 451 Total Commercial and Industrial $ 55,187 $ 50,087 $ 15,956 $ 43,121 $ 26,373 $ 150,656 $ 3,996 $ 345,376 Residential Mortgages Performing $ 155,892 $ 91,023 $ 63,682 $ 73,564 $ 8,640 $ 49,399 $ 13,237 $ 455,437 Nonperforming — — 1,008 512 188 843 — 2,551 Total Residential Mortgages $ 155,892 $ 91,023 $ 64,690 $ 74,076 $ 8,828 $ 50,242 $ 13,237 $ 457,988 Other Consumer Performing $ 9,364 $ 10,202 $ 979 $ 450 $ 211 $ 23,048 $ 339 $ 44,593 Nonperforming — — 11 57 5 — — 73 Total Other Consumer $ 9,364 $ 10,202 $ 990 $ 507 $ 216 $ 23,048 $ 339 $ 44,666 Construction Performing $ 140,639 $ 82,523 $ 24,511 $ 9,834 $ 5,328 $ 3,858 $ 15,269 $ 281,962 Nonperforming — 107 809 — — 69 — 985 Total Construction $ 140,639 $ 82,630 $ 25,320 $ 9,834 $ 5,328 $ 3,927 $ 15,269 $ 282,947 Other Performing $ — $ — $ — $ 87,329 $ 163,730 $ 106,841 $ — $ 357,900 Nonperforming — — — — — — — Total Other Loans $ — $ — $ — $ 87,329 $ 163,730 $ 106,841 $ — $ 357,900 Total Portfolio Loans Performing $ 556,752 $ 398,935 $ 320,395 $ 507,151 $ 323,511 $ 626,904 $ 71,084 $ 2,804,732 Nonperforming — 107 2,450 3,315 408 978 139 7,397 Total Portfolio Loans $ 556,752 $ 399,042 $ 322,845 $ 510,466 $ 323,919 $ 627,882 $ 71,223 $ 2,812,129 |
Schedule of Loans Past Due | The following tables include an aging analysis of the recorded investment of past due portfolio loans as the periods presented: March 31, 2022 (Dollars in Thousands) Current Loans Loans Total Nonaccrual Total Portfolio Commercial Real Estate $ 1,339,809 $ 118 $ — $ 118 $ 3,279 $ 1,343,206 Commercial and Industrial 345,030 46 61 107 208 345,345 Residential Mortgages 480,433 133 — 133 2,816 483,382 Other Consumer 42,967 166 135 301 20 43,288 Construction 320,020 196 — 196 974 321,190 Other 357,593 — — — — 357,593 Total $ 2,885,852 $ 659 $ 196 $ 855 $ 7,297 $ 2,894,004 December 31, 2021 (Dollars in Thousands) Current Loans Loans Total Nonaccrual Total Portfolio Commercial Real Estate $ 1,319,686 $ 229 $ — $ 229 $ 3,337 $ 1,323,252 Commercial and Industrial 344,628 80 217 297 451 345,376 Residential Mortgages 454,754 683 — 683 2,551 457,988 Other Consumer 44,132 367 94 461 73 44,666 Construction 281,962 — — — 985 282,947 Other 357,900 — — — — 357,900 Total $ 2,803,062 $ 1,359 $ 311 $ 1,670 $ 7,397 $ 2,812,129 |
Schedule of Nonaccrual Loans | The following table presents loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan as of March 31, 2022. For the three months ended March 31, 2022, the amount of interest income on nonaccrual loans was immaterial. March 31, 2022 (Dollars in Thousands) Beginning of End of Nonaccrual Past Due Commercial Real Estate $ 3,337 $ 3,279 $ — $ — Commercial and Industrial 451 208 — — Residential Mortgages 2,551 2,816 — — Other Consumer 73 20 — — Construction 985 974 808 — Other — — — — Total Portfolio Loans $ 7,397 $ 7,297 $ 808 $ — |
Schedule of Collateral Dependent Loans | The following table presents the amortized cost basis of collateral-dependent individually evaluated loans as of the periods presented. Changes in the fair value of the types of collateral for individually evaluated loans are reported as credit loss expense or a reversal of credit loss expense in the period of change. Type of Collateral March 31, 2022 December 31, 2021 (Dollars in Thousands) Real Estate Real Estate Commercial Real Estate $ 2,705 $ 2,742 Commercial and Industrial — — Residential Mortgages — — Other Consumer — — Construction 808 808 Other — — Total $ 3,513 $ 3,550 |
Schedule of activity in ACL and Allowance for Loan Losses | The following tables present activity in the ACL for the periods presented: Three Months Ended March 31, 2022 (Dollars in Thousands) Commercial Commercial Residential Other Construction Other Total Allowance for Credit Losses on Loans: Balance at Beginning of Period $ 17,297 $ 4,111 $ 4,368 $ 1,493 $ 6,939 $ 61,731 $ 95,939 Provision for Credit Losses on Loans 221 (529) 169 303 466 — 630 Charge-offs — — (17) (435) — — (452) Recoveries — 1 — 109 149 — 259 Net (Charge-offs) / Recoveries — 1 (17) (326) 149 — (193) Balance at End of Period $ 17,518 $ 3,583 $ 4,520 $ 1,470 $ 7,554 $ 61,731 $ 96,376 Three Months Ended March 31, 2021 (Dollars in Thousands) Commercial Commercial Residential Other Construction Other Total Allowance for Credit Losses on Loans: Balance at Beginning of Period $ 36,428 $ 5,064 $ 2,099 $ 2,479 $ 8,004 $ — $ 54,074 Impact of CECL Adoption 6,587 1,379 3,356 (877) (80) 51,277 $ 61,642 Provision for Credit Losses on Loans (673) (1,538) (255) 478 (879) 4,724 1,857 Charge-offs — (1) (195) (870) — — (1,066) Recoveries — 1 166 137 61 — 365 Net (Charge-offs) / Recoveries — — (29) (733) 61 — (701) Balance at End of Period $ 42,342 $ 4,905 $ 5,171 $ 1,347 $ 7,106 $ 56,001 $ 116,872 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured on a Recurring Basis | Financial assets measured at fair value on a recurring basis are summarized below for the periods presented: March 31, 2022 (Dollars in Thousands) Carrying Quoted Prices in Significant Other Significant Assets Securities Available-for-Sale: U.S. Treasury Securities $ 18,609 $ 18,609 $ — $ — U.S. Government Agency Securities 3,237 — 3,237 — Residential Mortgage-Backed Securities 115,722 — 115,722 — Commercial Mortgage-Backed Securities 43,645 — 43,645 — Asset Backed Securities 85,440 4,996 80,444 — Collateralized Mortgage Obligations 305,009 7,818 297,191 — Small Business Administration 68,706 3,296 65,410 — States and Political Subdivisions 270,743 4,115 266,628 — Corporate Notes 70,930 — 59,865 11,065 Total Securities Available-for-Sale 982,041 38,834 932,142 11,065 Derivatives 10,781 — 10,781 — Total $ 992,822 $ 38,834 $ 942,923 $ 11,065 Liabilities Derivatives $ 10,651 $ — $ 10,651 $ — Total $ 10,651 $ — $ 10,651 $ — December 31, 2021 (Dollars in Thousands) Carrying Quoted Prices in Significant Other Significant Assets Securities Available-for-Sale: U.S. Treasury Securities $ 4,413 $ 4,413 $ — $ — U.S. Government Agency Securities 3,478 — 3,478 — Residential Mortgage-Backed Securities 110,013 — 110,013 — Commercial Mortgage-Backed Securities 4,168 — 4,168 — Asset Backed Securities 81,863 — 81,863 — Collateralized Mortgage Obligations 287,614 — 287,614 — Small Business Administration 108,914 — 108,914 — States and Political Subdivisions 262,202 — 262,202 — Corporate Notes 59,735 — 51,177 8,558 Total Securities Available-for-Sale 922,400 4,413 909,429 8,558 Derivatives 3,508 — 3,508 — Total $ 925,908 $ 4,413 $ 912,937 $ 8,558 Liabilities Derivatives $ 3,682 $ — $ 3,682 $ — Total $ 3,682 $ — $ 3,682 $ — |
Schedule of Financial Liabilities Measured on a Recurring Basis | Financial assets measured at fair value on a recurring basis are summarized below for the periods presented: March 31, 2022 (Dollars in Thousands) Carrying Quoted Prices in Significant Other Significant Assets Securities Available-for-Sale: U.S. Treasury Securities $ 18,609 $ 18,609 $ — $ — U.S. Government Agency Securities 3,237 — 3,237 — Residential Mortgage-Backed Securities 115,722 — 115,722 — Commercial Mortgage-Backed Securities 43,645 — 43,645 — Asset Backed Securities 85,440 4,996 80,444 — Collateralized Mortgage Obligations 305,009 7,818 297,191 — Small Business Administration 68,706 3,296 65,410 — States and Political Subdivisions 270,743 4,115 266,628 — Corporate Notes 70,930 — 59,865 11,065 Total Securities Available-for-Sale 982,041 38,834 932,142 11,065 Derivatives 10,781 — 10,781 — Total $ 992,822 $ 38,834 $ 942,923 $ 11,065 Liabilities Derivatives $ 10,651 $ — $ 10,651 $ — Total $ 10,651 $ — $ 10,651 $ — December 31, 2021 (Dollars in Thousands) Carrying Quoted Prices in Significant Other Significant Assets Securities Available-for-Sale: U.S. Treasury Securities $ 4,413 $ 4,413 $ — $ — U.S. Government Agency Securities 3,478 — 3,478 — Residential Mortgage-Backed Securities 110,013 — 110,013 — Commercial Mortgage-Backed Securities 4,168 — 4,168 — Asset Backed Securities 81,863 — 81,863 — Collateralized Mortgage Obligations 287,614 — 287,614 — Small Business Administration 108,914 — 108,914 — States and Political Subdivisions 262,202 — 262,202 — Corporate Notes 59,735 — 51,177 8,558 Total Securities Available-for-Sale 922,400 4,413 909,429 8,558 Derivatives 3,508 — 3,508 — Total $ 925,908 $ 4,413 $ 912,937 $ 8,558 Liabilities Derivatives $ 3,682 $ — $ 3,682 $ — Total $ 3,682 $ — $ 3,682 $ — |
Schedule of Financial Assets Measured on a Nonrecurring Basis | Financial assets measured at fair value on a nonrecurring basis are summarized below for the periods presented: March 31, 2022 (Dollars in Thousands) Level 1 Level 2 Level 3 Fair Value OREO $ — $ — $ 11,253 $ 11,253 Individually Evaluated Loans $ — $ — $ 1,777 $ 1,777 December 31, 2021 (Dollars in Thousands) Level 1 Level 2 Level 3 Fair Value OREO $ — $ — $ 10,916 $ 10,916 Individually Evaluated Loans $ — $ — $ 1,777 $ 1,777 |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis, Valuation Techniques | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis for the periods presented: March 31, 2022 (Dollars in Thousands) Fair Valuation Unobservable Weighted Average Assets Individually Evaluated Loans $ 1,777 Discounted Appraisals Management's Discount & Estimated Selling Costs 53.0 % 53.0 % Total Individually Evaluated Loans $ 1,777 OREO $ 9,801 Appraisals Estimated Selling Costs 10.0 % 10.0 % OREO 627 Executed Sales Agreement Estimated Selling Costs 5.0 % 5.0 % OREO 190 Internal Valuations Estimated Selling Costs 5.0 % 5.0 % OREO 635 Discounted Internal Valuations Management’s Discount & Estimated Selling Costs 7.3% – 50.7% 30.5 % Total OREO $ 11,253 December 31, 2021 (Dollars in Thousands) Fair Valuation Unobservable Weighted Average Assets Individually Evaluated Loans 1,777 Discounted Appraisals Management's Discount & Estimated Selling Costs 53.0 % 53.0 % Total Individually Evaluated Loans $ 1,777 OREO $ 9,946 Appraisals Estimated Selling Costs 10.0 % 10.0 % OREO 190 Internal Valuations Estimated Selling Costs 5.0 % 5.0 % OREO 780 Discounted Internal Valuations Management’s Discount & Estimated Selling Costs 5.0% - 50.7% 20.3 % Total OREO $ 10,916 |
Schedule of Financial Instruments, Carrying Values and Estimated Fair Values | GAAP requires disclosure of fair value information about financial instruments carried at book value on the Consolidated Balance Sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. Fair Value Measurements at March 31, 2022 (Dollars in Thousands) Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Cash Equivalents $ 108,036 $ 38,534 $ 69,502 $ — $ 108,036 Securities Available-for-Sale 982,041 38,834 932,142 11,065 982,041 Loans Held-for-Sale 196 — — 196 196 Portfolio Loans, net 2,797,628 — — 2,770,247 2,770,247 Federal Home Loan Bank Stock, at Cost 2,067 — — NA NA Other Assets- Interest Rate Derivatives 10,781 — 10,781 — 10,781 Accrued Interest Receivable 16,727 34 3,791 12,902 16,727 Financial Liabilities: Deposits $ 3,728,278 $ 708,353 $ 1,735,455 $ 1,308,271 $ 3,752,079 Other Liabilities- Interest Rate Derivatives 10,651 — 10,651 — 10,651 FHLB Borrowings — — — — — Accrued Interest Payable 1,333 — — 1,333 1,333 Fair Value Measurements at December 31, 2021 (Dollars in Thousands) Carrying Value Level 1 Level 2 Level 3 Total Financial Assets: Cash and Cash Equivalents $ 277,799 $ 36,698 $ 241,101 $ — $ 277,799 Securities Available-for-Sale 922,400 4,413 909,429 8,558 922,400 Loans Held-for-Sale 228 — — 228 228 Portfolio Loans, net 2,716,190 — — 2,689,578 2,689,578 Federal Home Loan Bank Stock, at Cost 2,352 — — NA NA Other Assets- Interest Rate Derivatives 3,508 — 3,508 — 3,508 Accrued Interest Receivable 17,178 17 3,462 13,699 17,178 Financial Liabilities: Deposits $ 3,698,476 $ 747,909 $ 1,606,249 $ 1,369,228 $ 3,723,386 Other Liabilities- Interest Rate Derivatives 3,682 — 3,682 — 3,682 FHLB Borrowings 7,000 — — 7,035 7,035 Accrued Interest Payable 1,378 — — 1,378 1,378 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets and Liabilities | The following table indicates the amounts representing the fair value of derivative assets and derivative liabilities at the dates presented: Fair Values of Derivative Instruments March 31, 2022 December 31, 2021 (Dollars in Thousands) Number of Transactions Notional Amount Fair Value Number of Transactions Notional Amount Fair Value Derivatives not Designated as Hedging Instruments Interest Rate Lock Commitments – Mortgage Loans 1 $ 122 $ 4 — $ — $ — Interest Rate Swap Contracts – Commercial Loans 62 389,910 10,777 66 446,490 3,508 Total Derivatives not Designated as Hedging Instruments 63 $ 390,032 $ 10,781 66 $ 446,490 $ 3,508 Fair Values of Derivative Instruments March 31, 2022 December 31, 2021 (Dollars in Thousands) Number of Transactions Notional Amount Fair Value Number of Transactions Notional Amount Fair Value Derivatives not Designated as Hedging Instruments Forward Sale Contracts – Mortgage Loans 1 $ 122 $ 4 — $ — $ — Interest Rate Swap Contracts – Commercial Loans 62 389,910 10,647 66 446,490 3,682 Total Derivatives not Designated as Hedging Instruments 63 $ 390,032 $ 10,651 66 $ 446,490 $ 3,682 |
Schedule of Income (Loss) Recognized in Income on Derivatives | The following table indicates the income recognized on derivatives for the periods presented: For the Three Months Ended March 31, (Dollars in Thousands) 2022 2021 Derivatives not Designated as Hedging Instruments Interest Rate Lock Commitments – Mortgage Loans $ 4 $ — Forward Sale Contracts – Mortgage Loans (4) — Interest Rate Swap Contracts – Commercial Loans 304 429 Total Derivative Income $ 304 $ 429 |
Schedule of Offsetting Assets | The following table indicates the gross amounts of commercial loan swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at the dates presented: Asset Derivatives (Included in Other Assets) Liability Derivatives (Included in Other Liabilities) (Dollars in Thousands) March 31, December 31, March 31, December 31, Derivatives not Designated as Hedging Instruments Gross Amounts Recognized $ 10,777 $ 3,508 $ 10,647 $ 3,682 Gross Amounts Offset — — — — Net Amounts Presented in the Consolidated Balance Sheets 10,777 3,508 10,647 3,682 Gross Amounts Not Offset (1) — — — (4,080) Net Amount $ 10,777 $ 3,508 $ 10,647 $ (398) (1) Amounts represent collateral posted for the periods presented. |
Schedule of Offsetting Liabilities | The following table indicates the gross amounts of commercial loan swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at the dates presented: Asset Derivatives (Included in Other Assets) Liability Derivatives (Included in Other Liabilities) (Dollars in Thousands) March 31, December 31, March 31, December 31, Derivatives not Designated as Hedging Instruments Gross Amounts Recognized $ 10,777 $ 3,508 $ 10,647 $ 3,682 Gross Amounts Offset — — — — Net Amounts Presented in the Consolidated Balance Sheets 10,777 3,508 10,647 3,682 Gross Amounts Not Offset (1) — — — (4,080) Net Amount $ 10,777 $ 3,508 $ 10,647 $ (398) (1) Amounts represent collateral posted for the periods presented. |
Federal Home Loan Bank Borrow_2
Federal Home Loan Bank Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | The following table represents the balance of long-term borrowings and the weighted average interest rate as of the periods presented: (Dollars in Thousands) March 31, 2022 December 31, 2021 Long-term Borrowings $ — $ 7,000 Weighted Average Interest Rate — % 1.61 % |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Other Commitments | The following table sets forth our commitments and letters of credit as of the dates presented: (Dollars in Thousands) March 31, 2022 December 31, 2021 Commitments to Extent Credit $ 493,765 $ 513,482 Standby Letters of Credit 26,154 27,083 Total $ 519,919 $ 540,565 |
Schedule of Life-of-loss Reserve on Unfunded Loan Commitments | The following table presents activity in the life-of-loss reserve on unfunded loan commitments as of the dates presented: Three Months Ended March 31, (Dollars in Thousands) 2022 2021 Life-of-Loss Reserve on Unfunded Loan Commitments Balance at Beginning of Period $ 1,783 $ 144 Impact of Adopting ASU 2016-13 — 2,908 Balance after Adoption of ASU 2016-13 $ 1,783 $ 3,052 Provision for Unfunded Commitments (236) (282) Total $ 1,547 $ 2,770 |
Tax Effects on Other Comprehens
Tax Effects on Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Comprehensive (Loss) Income | The following table presents the change in components of other comprehensive loss for the periods presented, net of tax effects: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (Dollars in Thousands) Pre-Tax Amount Tax Benefit Net of Tax Amount Pre-Tax Amount Tax (Expense) Benefit Net of Tax Amount Net Unrealized Losses Arising during the period $ (43,032) $ 9,037 $ (33,995) $ (10,494) $ 2,204 $ (8,290) Reclassification Adjustment for Losses (Gains) included in Net Income 24 (5) 19 (3,610) 758 (2,852) Other Comprehensive Loss $ (43,008) $ 9,032 $ (33,976) $ (14,104) $ 2,962 $ (11,142) |
Basis of Presentation - Narrati
Basis of Presentation - Narrative CECL Adoption (Details) | Mar. 31, 2022 |
Credit Concentration Risk | Portfolio Loans | London Interbank Offered Rate (LIBOR) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Concentration risk, percentage | 16.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator for Earnings per Share – Basic and Diluted | ||
Net Income | $ 9,323 | $ 9,375 |
Less: Income allocated to participating shares | 43 | 46 |
Net Income Allocated to Common Shareholders - Basic | 9,280 | 9,329 |
Net Income Allocated to Common Shareholders - Diluted | $ 9,280 | $ 9,329 |
Denominator: | ||
Weighted Average Shares Outstanding, including Shares Considered Participating Securities (in shares) | 25,859,982 | 26,408,319 |
Less: Average Participating Securities (in shares) | 119,346 | 131,429 |
Average Shares Outstanding - Diluted (in shares) | 25,740,636 | 26,276,890 |
Weighted Average Common Shares Outstanding, Basic (in shares) | 25,740,636 | 26,276,890 |
Earnings per Common Share – Basic (in usd per share) | $ 0.36 | $ 0.36 |
Earnings per Common Share – Diluted (in usd per share) | $ 0.36 | $ 0.36 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,022,894 | $ 920,246 |
Gross Unrealized Gains | 1,336 | 9,969 |
Gross Unrealized Losses | (42,189) | (7,815) |
Fair Value | 982,041 | 922,400 |
U.S. Treasury Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,263 | 4,442 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (654) | (29) |
Fair Value | 18,609 | 4,413 |
U.S. Government Agency Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,490 | 3,475 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (253) | 0 |
Fair Value | 3,237 | 3,478 |
Residential Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 122,266 | 112,118 |
Gross Unrealized Gains | 5 | 76 |
Gross Unrealized Losses | (6,549) | (2,181) |
Fair Value | 115,722 | 110,013 |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 44,302 | 4,155 |
Gross Unrealized Gains | 153 | 53 |
Gross Unrealized Losses | (810) | (40) |
Fair Value | 43,645 | 4,168 |
Asset Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 86,545 | 82,119 |
Gross Unrealized Gains | 7 | 49 |
Gross Unrealized Losses | (1,112) | (305) |
Fair Value | 85,440 | 81,863 |
Collateralized Mortgage Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 316,798 | 287,734 |
Gross Unrealized Gains | 52 | 2,190 |
Gross Unrealized Losses | (11,841) | (2,310) |
Fair Value | 305,009 | 287,614 |
Small Business Administration | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 68,233 | 108,643 |
Gross Unrealized Gains | 591 | 879 |
Gross Unrealized Losses | (118) | (608) |
Fair Value | 68,706 | 108,914 |
States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 288,247 | 257,810 |
Gross Unrealized Gains | 477 | 6,344 |
Gross Unrealized Losses | (17,981) | (1,952) |
Fair Value | 270,743 | 262,202 |
Corporate Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73,750 | 59,750 |
Gross Unrealized Gains | 51 | 375 |
Gross Unrealized Losses | (2,871) | (390) |
Fair Value | $ 70,930 | $ 59,735 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities, held-to-maturity | $ 0 | $ 0 |
Carrying value of securities pledged as collateral | $ 164,600,000 | $ 178,600,000 |
AFS, total, number of securities | security | 436 | 268 |
Investment Securities - Gain (L
Investment Securities - Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from Sales of Securities Available-for-Sale | $ 4,921 | $ 64,870 |
Gross Realized Gains | 0 | 3,629 |
Gross Realized Losses | (24) | (19) |
Net Realized (Losses) Gains | (24) | 3,610 |
Tax Impact | $ (5) | $ 758 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in One Year or Less | $ 400 | |
Due after One Year through Five Years | 17,407 | |
Due after Five Years through Ten Years | 221,217 | |
Due after Ten Years | 213,959 | |
Amortized Cost | 1,022,894 | $ 920,246 |
Fair Value | ||
Due in One Year or Less | 401 | |
Due after One Year through Five Years | 17,053 | |
Due after Five Years through Ten Years | 213,602 | |
Due after Ten Years | 201,169 | |
Fair Value | 982,041 | 922,400 |
Residential Mortgage-Backed Securities | ||
Amortized Cost | ||
Without single maturity date | 122,266 | |
Amortized Cost | 122,266 | 112,118 |
Fair Value | ||
Without single maturity date | 115,722 | |
Fair Value | 115,722 | 110,013 |
Commercial Mortgage-Backed Securities | ||
Amortized Cost | ||
Without single maturity date | 44,302 | |
Amortized Cost | 44,302 | 4,155 |
Fair Value | ||
Without single maturity date | 43,645 | |
Fair Value | 43,645 | 4,168 |
Collateralized Mortgage Obligations | ||
Amortized Cost | ||
Without single maturity date | 316,798 | |
Amortized Cost | 316,798 | 287,734 |
Fair Value | ||
Without single maturity date | 305,009 | |
Fair Value | 305,009 | 287,614 |
Asset Backed Securities | ||
Amortized Cost | ||
Without single maturity date | 86,545 | |
Amortized Cost | 86,545 | 82,119 |
Fair Value | ||
Without single maturity date | 85,440 | |
Fair Value | $ 85,440 | $ 81,863 |
Investment Securities - Continu
Investment Securities - Continuous Loss Position (Details) $ in Thousands | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 341 | 178 |
AFS, less than 12 months, fair value | $ 778,949 | $ 442,849 |
AFS, less than 12 months, unrealized losses | $ (38,021) | $ (6,228) |
AFS, 12 months or more, number of securities | security | 95 | 90 |
AFS, 12 months or more, fair value | $ 88,749 | $ 85,381 |
AFS, 12 months or more, unrealized losses | $ (4,168) | $ (1,587) |
AFS, total, number of securities | security | 436 | 268 |
AFS, total, fair value | $ 867,698 | $ 528,230 |
AFS, total, unrealized losses | $ (42,189) | $ (7,815) |
U.S. Treasury Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 5 | 2 |
AFS, less than 12 months, fair value | $ 18,609 | $ 4,413 |
AFS, less than 12 months, unrealized losses | $ (654) | $ (29) |
AFS, 12 months or more, number of securities | security | 0 | 0 |
AFS, 12 months or more, fair value | $ 0 | $ 0 |
AFS, 12 months or more, unrealized losses | $ 0 | $ 0 |
AFS, total, number of securities | security | 5 | 2 |
AFS, total, fair value | $ 18,609 | $ 4,413 |
AFS, total, unrealized losses | $ (654) | $ (29) |
U.S. Government Agency Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 2 | 1 |
AFS, less than 12 months, fair value | $ 3,237 | $ 1,733 |
AFS, less than 12 months, unrealized losses | $ (253) | $ 0 |
AFS, 12 months or more, number of securities | security | 0 | 0 |
AFS, 12 months or more, fair value | $ 0 | $ 0 |
AFS, 12 months or more, unrealized losses | $ 0 | $ 0 |
AFS, total, number of securities | security | 2 | 1 |
AFS, total, fair value | $ 3,237 | $ 1,733 |
AFS, total, unrealized losses | $ (253) | $ 0 |
Residential Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 37 | 30 |
AFS, less than 12 months, fair value | $ 105,273 | $ 95,749 |
AFS, less than 12 months, unrealized losses | $ (5,886) | $ (2,030) |
AFS, 12 months or more, number of securities | security | 7 | 7 |
AFS, 12 months or more, fair value | $ 10,137 | $ 8,706 |
AFS, 12 months or more, unrealized losses | $ (663) | $ (151) |
AFS, total, number of securities | security | 44 | 37 |
AFS, total, fair value | $ 115,410 | $ 104,455 |
AFS, total, unrealized losses | $ (6,549) | $ (2,181) |
Commercial Mortgage-Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 8 | 1 |
AFS, less than 12 months, fair value | $ 13,340 | $ 1,987 |
AFS, less than 12 months, unrealized losses | $ (467) | $ (40) |
AFS, 12 months or more, number of securities | security | 51 | 0 |
AFS, 12 months or more, fair value | $ 16,557 | $ 0 |
AFS, 12 months or more, unrealized losses | $ (343) | $ 0 |
AFS, total, number of securities | security | 59 | 1 |
AFS, total, fair value | $ 29,897 | $ 1,987 |
AFS, total, unrealized losses | $ (810) | $ (40) |
Asset Backed Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 26 | 17 |
AFS, less than 12 months, fair value | $ 64,279 | $ 44,095 |
AFS, less than 12 months, unrealized losses | $ (775) | $ (129) |
AFS, 12 months or more, number of securities | security | 8 | 10 |
AFS, 12 months or more, fair value | $ 17,161 | $ 21,895 |
AFS, 12 months or more, unrealized losses | $ (337) | $ (176) |
AFS, total, number of securities | security | 34 | 27 |
AFS, total, fair value | $ 81,440 | $ 65,990 |
AFS, total, unrealized losses | $ (1,112) | $ (305) |
Collateralized Mortgage Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 94 | 50 |
AFS, less than 12 months, fair value | $ 262,649 | $ 157,630 |
AFS, less than 12 months, unrealized losses | $ (11,055) | $ (1,945) |
AFS, 12 months or more, number of securities | security | 12 | 11 |
AFS, 12 months or more, fair value | $ 24,932 | $ 24,849 |
AFS, 12 months or more, unrealized losses | $ (786) | $ (365) |
AFS, total, number of securities | security | 106 | 61 |
AFS, total, fair value | $ 287,581 | $ 182,479 |
AFS, total, unrealized losses | $ (11,841) | $ (2,310) |
Small Business Administration | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 9 | 11 |
AFS, less than 12 months, fair value | $ 13,725 | $ 18,813 |
AFS, less than 12 months, unrealized losses | $ (66) | $ (235) |
AFS, 12 months or more, number of securities | security | 3 | 53 |
AFS, 12 months or more, fair value | $ 4,302 | $ 19,630 |
AFS, 12 months or more, unrealized losses | $ (52) | $ (373) |
AFS, total, number of securities | security | 12 | 64 |
AFS, total, fair value | $ 18,027 | $ 38,443 |
AFS, total, unrealized losses | $ (118) | $ (608) |
States and Political Subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 140 | 56 |
AFS, less than 12 months, fair value | $ 231,573 | $ 88,746 |
AFS, less than 12 months, unrealized losses | $ (16,129) | $ (1,503) |
AFS, 12 months or more, number of securities | security | 13 | 8 |
AFS, 12 months or more, fair value | $ 13,295 | $ 7,874 |
AFS, 12 months or more, unrealized losses | $ (1,852) | $ (449) |
AFS, total, number of securities | security | 153 | 64 |
AFS, total, fair value | $ 244,868 | $ 96,620 |
AFS, total, unrealized losses | $ (17,981) | $ (1,952) |
Corporate Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
AFS, less than 12 months, number of securities | security | 20 | 10 |
AFS, less than 12 months, fair value | $ 66,264 | $ 29,683 |
AFS, less than 12 months, unrealized losses | $ (2,736) | $ (317) |
AFS, 12 months or more, number of securities | security | 1 | 1 |
AFS, 12 months or more, fair value | $ 2,365 | $ 2,427 |
AFS, 12 months or more, unrealized losses | $ (135) | $ (73) |
AFS, total, number of securities | security | 21 | 11 |
AFS, total, fair value | $ 68,629 | $ 32,110 |
AFS, total, unrealized losses | $ (2,871) | $ (390) |
Loans and Loans Held-For-Sale -
Loans and Loans Held-For-Sale - Loan Portfolios (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | $ 2,894,004 | $ 2,812,129 |
Loans Held-for-Sale | 196 | 228 |
Total Loans | 2,894,200 | 2,812,357 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 1,688,551 | 1,668,628 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 1,343,206 | 1,323,252 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 345,345 | 345,376 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 526,670 | 502,654 |
Residential Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 483,382 | 457,988 |
Other Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 43,288 | 44,666 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | 321,190 | 282,947 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Portfolio Loans | $ 357,593 | $ 357,900 |
Loans and Loans Held-For-Sale_2
Loans and Loans Held-For-Sale - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring increase (decrease) | $ (900,000) | |
Troubled debt restructuring, increase (decrease), percentage | (0.50%) | |
Total TDRs | $ 175,300,000 | $ 176,142,000 |
Troubled debt restructuring, pay-downs | 1,200,000 | |
Mortgage loans in process of foreclosure | 854,900 | 254,000 |
Other real estate owned | 11,253,000 | 10,916,000 |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other real estate owned | 24,700 | 62,000 |
Nonperforming TDRs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 3,822,000 | 3,550,000 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructuring increase (decrease) | 300,000 | |
Total TDRs | $ 5,253,000 | 5,421,000 |
Number of loans under deferral | security | 1 | |
Commercial Real Estate | Nonperforming TDRs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | $ 3,014,000 | 2,742,000 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 808,000 | 1,335,000 |
Construction | Nonperforming TDRs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 808,000 | 808,000 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 169,228,000 | 169,372,000 |
Other | Nonperforming TDRs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 0 | 0 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | 0 | 0 |
Consumer | Nonperforming TDRs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total TDRs | $ 0 | $ 0 |
Consumer | Automobile Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans under deferral | security | 0 |
Loans and Loans Held-For-Sale_3
Loans and Loans Held-For-Sale - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | $ 175,300 | $ 176,142 |
Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 171,478 | 172,592 |
Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 3,822 | 3,550 |
Commercial Real Estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 5,253 | 5,421 |
Commercial Real Estate | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 2,239 | 2,679 |
Commercial Real Estate | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 3,014 | 2,742 |
Commercial and Industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 11 | 14 |
Commercial and Industrial | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 11 | 14 |
Commercial and Industrial | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 5,264 | 5,435 |
Commercial | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 2,250 | 2,693 |
Commercial | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 3,014 | 2,742 |
Residential Mortgages | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Residential Mortgages | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Residential Mortgages | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Other Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Other Consumer | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Other Consumer | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Consumer | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Consumer | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 0 |
Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 808 | 1,335 |
Construction | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 0 | 527 |
Construction | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 808 | 808 |
Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 169,228 | 169,372 |
Other | Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | 169,228 | 169,372 |
Other | Nonperforming TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total TDRs | $ 0 | $ 0 |
Loans and Loans Held-For-Sale_4
Loans and Loans Held-For-Sale - Nonaccrual (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Nonaccrual Loans | $ 7,297 | $ 7,397 |
OREO | 11,253 | 10,916 |
Total Nonperforming Assets | 18,550 | 18,313 |
Nonaccrual loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Nonaccrual Loans | 3,475 | 3,847 |
Nonaccrual TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Nonaccrual Loans | $ 3,822 | $ 3,550 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) | 3 Months Ended | ||||
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Number of loans evaluated | security | 20 | ||||
Total aggregate commercial relationship | $ 2,000,000 | ||||
Minimum aggregate exposure | 2,000,000 | ||||
Portfolio loans | 2,894,004,000 | $ 2,812,129,000 | |||
Financing receivable, nonaccrual | 7,297,000 | 7,397,000 | |||
Troubled debt restructured loans, individually evaluated impaired loans | 1,000,000 | ||||
Allowance for credit losses | 96,376,000 | 95,939,000 | $ 116,872,000 | $ 54,074,000 | |
Reserve on unfunded loan commitments | 1,547,000 | 1,783,000 | 2,770,000 | 144,000 | |
Construction | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Portfolio loans | 321,190,000 | 282,947,000 | |||
Financing receivable, nonaccrual | 974,000 | 985,000 | |||
Allowance for credit losses | 7,554,000 | 6,939,000 | 7,106,000 | 8,004,000 | |
Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Portfolio loans | 357,593,000 | 357,900,000 | |||
Financing receivable, nonaccrual | 0 | 0 | |||
Allowance for credit losses | 61,731,000 | 61,731,000 | $ 56,001,000 | 0 | |
Cumulative Effect for Adoption of Credit Losses | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Allowance for credit losses | $ 61,600,000 | 61,642,000 | |||
Reserve on unfunded loan commitments | 0 | 2,900,000 | 2,908,000 | ||
Cumulative Effect for Adoption of Credit Losses | Construction | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Allowance for credit losses | (80,000) | ||||
Cumulative Effect for Adoption of Credit Losses | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Allowance for credit losses | $ 51,300,000 | $ 51,277,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, nonaccrual | 0 | 0 | |||
Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Portfolio loans | 0 | 0 | |||
Total 30-89 Days Past Due | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Portfolio loans | 855,000 | 1,670,000 | |||
Increase (decrease) in portfolio loans | (800,000) | ||||
Total 30-89 Days Past Due | Construction | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Portfolio loans | 196,000 | 0 | |||
Increase (decrease) in portfolio loans | 200,000 | ||||
Total 30-89 Days Past Due | Other | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Portfolio loans | 0 | 0 | |||
Total 30-89 Days Past Due | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, held-for-sale | $ 0 | $ 0 |
Allowance for Credit Losses - O
Allowance for Credit Losses - Origination Year and Assigned Risk Rating (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | $ 109,089 | $ 556,752 |
Year two | 596,895 | 399,042 |
Year three | 396,445 | 322,845 |
Year four | 295,556 | 510,466 |
Year five | 484,316 | 323,919 |
Year five and prior | 942,185 | 627,882 |
Revolving | 69,518 | 71,223 |
Portfolio Loans | 2,894,004 | 2,812,129 |
Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 109,089 | 556,752 |
Year two | 596,895 | 398,935 |
Year three | 396,330 | 320,395 |
Year four | 294,176 | 507,151 |
Year five | 481,165 | 323,511 |
Year five and prior | 939,671 | 626,904 |
Revolving | 69,381 | 71,084 |
Portfolio Loans | 2,886,707 | 2,804,732 |
Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 107 |
Year three | 115 | 2,450 |
Year four | 1,380 | 3,315 |
Year five | 3,151 | 408 |
Year five and prior | 2,514 | 978 |
Revolving | 137 | 139 |
Portfolio Loans | 7,297 | 7,397 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 109,089 | 556,498 |
Year two | 596,649 | 398,932 |
Year three | 395,997 | 320,220 |
Year four | 294,173 | 414,677 |
Year five | 388,176 | 275,601 |
Year five and prior | 846,064 | 579,794 |
Revolving | 69,380 | 71,084 |
Portfolio Loans | 2,699,528 | 2,616,806 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 229 |
Year two | 226 | 0 |
Year three | 0 | 175 |
Year four | 0 | 8 |
Year five | 443 | 4,205 |
Year five and prior | 8,376 | 5,089 |
Revolving | 0 | 0 |
Portfolio Loans | 9,045 | 9,706 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 25 |
Year two | 20 | 110 |
Year three | 448 | 2,450 |
Year four | 1,383 | 95,781 |
Year five | 95,697 | 44,113 |
Year five and prior | 87,745 | 42,999 |
Revolving | 138 | 139 |
Portfolio Loans | 185,431 | 185,617 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 57,112 | 195,670 |
Year two | 202,105 | 165,100 |
Year three | 161,037 | 215,889 |
Year four | 206,795 | 295,599 |
Year five | 265,673 | 119,444 |
Year five and prior | 413,812 | 293,168 |
Revolving | 36,672 | 38,382 |
Portfolio Loans | 1,343,206 | 1,323,252 |
Commercial Real Estate | Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 57,112 | 195,670 |
Year two | 202,105 | 165,100 |
Year three | 161,037 | 215,575 |
Year four | 206,487 | 292,857 |
Year five | 262,967 | 119,229 |
Year five and prior | 413,547 | 293,102 |
Revolving | 36,672 | 38,382 |
Portfolio Loans | 1,339,927 | 1,319,915 |
Commercial Real Estate | Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 314 |
Year four | 308 | 2,742 |
Year five | 2,706 | 215 |
Year five and prior | 265 | 66 |
Revolving | 0 | 0 |
Portfolio Loans | 3,279 | 3,337 |
Commercial Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 57,112 | 195,441 |
Year two | 201,879 | 165,100 |
Year three | 161,037 | 215,575 |
Year four | 206,487 | 292,857 |
Year five | 262,968 | 115,024 |
Year five and prior | 408,942 | 292,197 |
Revolving | 36,672 | 38,382 |
Portfolio Loans | 1,335,097 | 1,314,576 |
Commercial Real Estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 229 |
Year two | 226 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 4,205 |
Year five and prior | 4,526 | 826 |
Revolving | 0 | 0 |
Portfolio Loans | 4,752 | 5,260 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 314 |
Year four | 308 | 2,742 |
Year five | 2,705 | 215 |
Year five and prior | 344 | 145 |
Revolving | 0 | 0 |
Portfolio Loans | 3,357 | 3,416 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 18,555 | 55,187 |
Year two | 50,917 | 50,087 |
Year three | 47,385 | 15,956 |
Year four | 17,284 | 43,121 |
Year five | 37,385 | 26,373 |
Year five and prior | 168,418 | 150,656 |
Revolving | 5,401 | 3,996 |
Portfolio Loans | 345,345 | 345,376 |
Commercial and Industrial | Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 18,555 | 55,187 |
Year two | 50,917 | 50,087 |
Year three | 47,379 | 15,648 |
Year four | 17,226 | 43,117 |
Year five | 37,381 | 26,373 |
Year five and prior | 168,415 | 150,656 |
Revolving | 5,264 | 3,857 |
Portfolio Loans | 345,137 | 344,925 |
Commercial and Industrial | Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 6 | 308 |
Year four | 58 | 4 |
Year five | 4 | 0 |
Year five and prior | 3 | 0 |
Revolving | 137 | 139 |
Portfolio Loans | 208 | 451 |
Commercial and Industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 18,555 | 55,173 |
Year two | 50,907 | 50,087 |
Year three | 47,379 | 15,648 |
Year four | 17,226 | 38,298 |
Year five | 32,494 | 23,575 |
Year five and prior | 165,618 | 150,656 |
Revolving | 5,263 | 3,857 |
Portfolio Loans | 337,442 | 337,294 |
Commercial and Industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 8 |
Year five | 6 | 0 |
Year five and prior | 0 | 0 |
Revolving | 0 | 0 |
Portfolio Loans | 6 | 8 |
Commercial and Industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 14 |
Year two | 10 | 0 |
Year three | 6 | 308 |
Year four | 58 | 4,815 |
Year five | 4,885 | 2,798 |
Year five and prior | 2,800 | 0 |
Revolving | 138 | 139 |
Portfolio Loans | 7,897 | 8,074 |
Residential Mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 21,999 | 155,892 |
Year two | 171,931 | 91,023 |
Year three | 86,745 | 64,690 |
Year four | 58,917 | 74,076 |
Year five | 77,651 | 8,828 |
Year five and prior | 50,923 | 50,242 |
Revolving | 15,216 | 13,237 |
Portfolio Loans | 483,382 | 457,988 |
Residential Mortgages | Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 21,999 | 155,892 |
Year two | 171,931 | 91,023 |
Year three | 86,745 | 63,682 |
Year four | 57,914 | 73,564 |
Year five | 77,214 | 8,640 |
Year five and prior | 49,547 | 49,399 |
Revolving | 15,216 | 13,237 |
Portfolio Loans | 480,566 | 455,437 |
Residential Mortgages | Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 1,008 |
Year four | 1,003 | 512 |
Year five | 437 | 188 |
Year five and prior | 1,376 | 843 |
Revolving | 0 | 0 |
Portfolio Loans | 2,816 | 2,551 |
Residential Mortgages | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 21,999 | 155,892 |
Year two | 171,931 | 91,023 |
Year three | 86,745 | 63,682 |
Year four | 57,914 | 73,333 |
Year five | 76,535 | 8,640 |
Year five and prior | 48,590 | 48,087 |
Revolving | 15,216 | 13,237 |
Portfolio Loans | 478,930 | 453,894 |
Residential Mortgages | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 437 | 0 |
Year five and prior | 543 | 553 |
Revolving | 0 | 0 |
Portfolio Loans | 980 | 553 |
Residential Mortgages | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 1,008 |
Year four | 1,003 | 743 |
Year five | 679 | 188 |
Year five and prior | 1,790 | 1,602 |
Revolving | 0 | 0 |
Portfolio Loans | 3,472 | 3,541 |
Other Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 4,570 | 9,364 |
Year two | 7,991 | 10,202 |
Year three | 9,242 | 990 |
Year four | 706 | 507 |
Year five | 361 | 216 |
Year five and prior | 20,079 | 23,048 |
Revolving | 339 | 339 |
Portfolio Loans | 43,288 | 44,666 |
Other Consumer | Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 4,570 | 9,364 |
Year two | 7,991 | 10,202 |
Year three | 9,240 | 979 |
Year four | 695 | 450 |
Year five | 357 | 211 |
Year five and prior | 20,076 | 23,048 |
Revolving | 339 | 339 |
Portfolio Loans | 43,268 | 44,593 |
Other Consumer | Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 2 | 11 |
Year four | 11 | 57 |
Year five | 4 | 5 |
Year five and prior | 3 | 0 |
Revolving | 0 | 0 |
Portfolio Loans | 20 | 73 |
Other Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 4,570 | 9,353 |
Year two | 7,981 | 10,199 |
Year three | 9,240 | 979 |
Year four | 692 | 450 |
Year five | 357 | 186 |
Year five and prior | 20,052 | 23,048 |
Revolving | 339 | 339 |
Portfolio Loans | 43,231 | 44,554 |
Other Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Year five and prior | 0 | 0 |
Revolving | 0 | 0 |
Portfolio Loans | 0 | 0 |
Other Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 11 |
Year two | 10 | 3 |
Year three | 2 | 11 |
Year four | 14 | 57 |
Year five | 4 | 30 |
Year five and prior | 27 | 0 |
Revolving | 0 | 0 |
Portfolio Loans | 57 | 112 |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 6,853 | 140,639 |
Year two | 163,951 | 82,630 |
Year three | 92,036 | 25,320 |
Year four | 11,854 | 9,834 |
Year five | 15,917 | 5,328 |
Year five and prior | 18,689 | 3,927 |
Revolving | 11,890 | 15,269 |
Portfolio Loans | 321,190 | 282,947 |
Construction | Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 6,853 | 140,639 |
Year two | 163,951 | 82,523 |
Year three | 91,929 | 24,511 |
Year four | 11,854 | 9,834 |
Year five | 15,917 | 5,328 |
Year five and prior | 17,822 | 3,858 |
Revolving | 11,890 | 15,269 |
Portfolio Loans | 320,216 | 281,962 |
Construction | Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 107 |
Year three | 107 | 809 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Year five and prior | 867 | 69 |
Revolving | 0 | 0 |
Portfolio Loans | 974 | 985 |
Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 6,853 | 140,639 |
Year two | 163,951 | 82,523 |
Year three | 91,596 | 24,336 |
Year four | 11,854 | 9,739 |
Year five | 15,822 | 5,328 |
Year five and prior | 17,730 | 3,407 |
Revolving | 11,890 | 15,269 |
Portfolio Loans | 319,696 | 281,241 |
Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 175 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Year five and prior | 74 | 429 |
Revolving | 0 | 0 |
Portfolio Loans | 74 | 604 |
Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 107 |
Year three | 440 | 809 |
Year four | 0 | 95 |
Year five | 95 | 0 |
Year five and prior | 885 | 91 |
Revolving | 0 | 0 |
Portfolio Loans | 1,420 | 1,102 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 87,329 |
Year five | 87,329 | 163,730 |
Year five and prior | 270,264 | 106,841 |
Revolving | 0 | 0 |
Portfolio Loans | 357,593 | 357,900 |
Other | Performing TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 87,329 |
Year five | 87,329 | 163,730 |
Year five and prior | 270,264 | 106,841 |
Revolving | 0 | 0 |
Portfolio Loans | 357,593 | 357,900 |
Other | Nonperforming TDRs | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | |
Year five | 0 | 0 |
Year five and prior | 0 | 0 |
Revolving | 0 | 0 |
Portfolio Loans | 0 | 0 |
Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 122,848 |
Year five and prior | 185,132 | 62,399 |
Revolving | 0 | 0 |
Portfolio Loans | 185,132 | 185,247 |
Other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 0 |
Year five | 0 | 0 |
Year five and prior | 3,233 | 3,281 |
Revolving | 0 | 0 |
Portfolio Loans | 3,233 | 3,281 |
Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one | 0 | 0 |
Year two | 0 | 0 |
Year three | 0 | 0 |
Year four | 0 | 87,329 |
Year five | 87,329 | 40,882 |
Year five and prior | 81,899 | 41,161 |
Revolving | 0 | 0 |
Portfolio Loans | $ 169,228 | $ 169,372 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | $ 2,894,004 | $ 2,812,129 |
Total Nonaccrual Loans | 7,297 | 7,397 |
Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 2,885,852 | 2,803,062 |
Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 855 | 1,670 |
Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 659 | 1,359 |
Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 196 | 311 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 1,343,206 | 1,323,252 |
Total Nonaccrual Loans | 3,279 | 3,337 |
Commercial Real Estate | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 1,339,809 | 1,319,686 |
Commercial Real Estate | Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 118 | 229 |
Commercial Real Estate | Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 118 | 229 |
Commercial Real Estate | Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 0 | 0 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 345,345 | 345,376 |
Total Nonaccrual Loans | 208 | 451 |
Commercial and Industrial | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 345,030 | 344,628 |
Commercial and Industrial | Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 107 | 297 |
Commercial and Industrial | Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 46 | 80 |
Commercial and Industrial | Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 61 | 217 |
Residential Mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 483,382 | 457,988 |
Total Nonaccrual Loans | 2,816 | 2,551 |
Residential Mortgages | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 480,433 | 454,754 |
Residential Mortgages | Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 133 | 683 |
Residential Mortgages | Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 133 | 683 |
Residential Mortgages | Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 0 | 0 |
Other Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 43,288 | 44,666 |
Total Nonaccrual Loans | 20 | 73 |
Other Consumer | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 42,967 | 44,132 |
Other Consumer | Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 301 | 461 |
Other Consumer | Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 166 | 367 |
Other Consumer | Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 135 | 94 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 321,190 | 282,947 |
Total Nonaccrual Loans | 974 | 985 |
Construction | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 320,020 | 281,962 |
Construction | Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 196 | 0 |
Construction | Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 196 | 0 |
Construction | Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 0 | 0 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 357,593 | 357,900 |
Total Nonaccrual Loans | 0 | 0 |
Other | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 357,593 | 357,900 |
Other | Total 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 0 | 0 |
Other | Loans 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | 0 | 0 |
Other | Loans 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Portfolio Loans | $ 0 | $ 0 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Nonaccrual (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | $ 808 |
Past Due 90+ Days Still Accruing | 0 |
Commercial Real Estate | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | 0 |
Past Due 90+ Days Still Accruing | 0 |
Commercial and Industrial | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | 0 |
Past Due 90+ Days Still Accruing | 0 |
Residential Mortgages | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | 0 |
Past Due 90+ Days Still Accruing | 0 |
Other Consumer | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | 0 |
Past Due 90+ Days Still Accruing | 0 |
Construction | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | 808 |
Past Due 90+ Days Still Accruing | 0 |
Other | |
Financing Receivable, Nonaccrual [Line Items] | |
Nonaccrual With No Related Allowance | 0 |
Past Due 90+ Days Still Accruing | $ 0 |
Allowance for Credit Losses - C
Allowance for Credit Losses - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | $ 2,894,004 | $ 2,812,129 |
Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 1,343,206 | 1,323,252 |
Commercial and Industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 345,345 | 345,376 |
Residential Mortgages | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 483,382 | 457,988 |
Other Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 43,288 | 44,666 |
Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 321,190 | 282,947 |
Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 357,593 | 357,900 |
Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 3,513 | 3,550 |
Real Estate | Commercial Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 2,705 | 2,742 |
Real Estate | Commercial and Industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 0 | 0 |
Real Estate | Residential Mortgages | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 0 | 0 |
Real Estate | Other Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 0 | 0 |
Real Estate | Construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | 808 | 808 |
Real Estate | Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Portfolio Loans | $ 0 | $ 0 |
Allowance for Credit Losses - A
Allowance for Credit Losses - ACL and Allowance for Loan Losses Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 95,939 | $ 54,074 |
Provision for Credit Losses on Loans | 630 | 1,857 |
Charge-offs | (452) | (1,066) |
Recoveries | 259 | 365 |
Net (Charge-offs) / Recoveries | (193) | (701) |
Balance at End of Period | 96,376 | 116,872 |
Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 61,642 | |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 17,297 | 36,428 |
Provision for Credit Losses on Loans | 221 | (673) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net (Charge-offs) / Recoveries | 0 | 0 |
Balance at End of Period | 17,518 | 42,342 |
Commercial Real Estate | Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 6,587 | |
Commercial and Industrial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 4,111 | 5,064 |
Provision for Credit Losses on Loans | (529) | (1,538) |
Charge-offs | 0 | (1) |
Recoveries | 1 | 1 |
Net (Charge-offs) / Recoveries | 1 | 0 |
Balance at End of Period | 3,583 | 4,905 |
Commercial and Industrial | Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 1,379 | |
Residential Mortgages | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 4,368 | 2,099 |
Provision for Credit Losses on Loans | 169 | (255) |
Charge-offs | (17) | (195) |
Recoveries | 0 | 166 |
Net (Charge-offs) / Recoveries | (17) | (29) |
Balance at End of Period | 4,520 | 5,171 |
Residential Mortgages | Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 3,356 | |
Other Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 1,493 | 2,479 |
Provision for Credit Losses on Loans | 303 | 478 |
Charge-offs | (435) | (870) |
Recoveries | 109 | 137 |
Net (Charge-offs) / Recoveries | (326) | (733) |
Balance at End of Period | 1,470 | 1,347 |
Other Consumer | Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (877) | |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 6,939 | 8,004 |
Provision for Credit Losses on Loans | 466 | (879) |
Charge-offs | 0 | 0 |
Recoveries | 149 | 61 |
Net (Charge-offs) / Recoveries | 149 | 61 |
Balance at End of Period | 7,554 | 7,106 |
Construction | Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | (80) | |
Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 61,731 | 0 |
Provision for Credit Losses on Loans | 0 | 4,724 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net (Charge-offs) / Recoveries | 0 | 0 |
Balance at End of Period | $ 61,731 | 56,001 |
Other | Cumulative Effect for Adoption of Credit Losses | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 51,277 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)security | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
OREO threshold to revalue every 24 months | $ 500,000 | ||
Impaired loans with specific valuation allowance | 1,800,000 | $ 1,800,000 | |
Impaired loans related allowance | 900,000 | 1,000,000 | |
OREO | 11,253,000 | $ 10,916,000 | |
OREO Write down | $ 100,000 | $ 100,000 | |
Available-for-sale Securities | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of securities | security | 3 | 2 | |
Fair value level 3 security | $ 11,100,000 | $ 8,600,000 | |
Transfer into level 3 | 2,900,000 | ||
Decrease in fair value | $ 400,000 | ||
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Period of time between issuance and closing of loan commitment | 15 days | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Period of time between issuance and closing of loan commitment | 90 days |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Securities Available-for-Sale, at Fair Value | $ 982,041 | $ 922,400 |
Derivatives | 10,777 | 3,508 |
Liabilities | ||
Derivatives | 10,647 | 3,682 |
U.S. Treasury Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 18,609 | 4,413 |
U.S. Government Agency Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 3,237 | 3,478 |
Residential Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 115,722 | 110,013 |
Commercial Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 43,645 | 4,168 |
Asset Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 85,440 | 81,863 |
Collateralized Mortgage Obligations | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 305,009 | 287,614 |
Small Business Administration | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 68,706 | 108,914 |
States and Political Subdivisions | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 270,743 | 262,202 |
Corporate Notes | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 70,930 | 59,735 |
Fair Value, Recurring | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 982,041 | 922,400 |
Derivatives | 10,781 | 3,508 |
Total | 992,822 | 925,908 |
Liabilities | ||
Derivatives | 10,651 | 3,682 |
Total | 10,651 | 3,682 |
Fair Value, Recurring | U.S. Treasury Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 18,609 | 4,413 |
Fair Value, Recurring | U.S. Government Agency Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 3,237 | 3,478 |
Fair Value, Recurring | Residential Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 115,722 | 110,013 |
Fair Value, Recurring | Commercial Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 43,645 | 4,168 |
Fair Value, Recurring | Asset Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 85,440 | 81,863 |
Fair Value, Recurring | Collateralized Mortgage Obligations | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 305,009 | 287,614 |
Fair Value, Recurring | Small Business Administration | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 68,706 | 108,914 |
Fair Value, Recurring | States and Political Subdivisions | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 270,743 | 262,202 |
Fair Value, Recurring | Corporate Notes | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 70,930 | 59,735 |
Fair Value, Recurring | Level 1 | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 38,834 | 4,413 |
Derivatives | 0 | 0 |
Total | 38,834 | 4,413 |
Liabilities | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. Treasury Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 18,609 | 4,413 |
Fair Value, Recurring | Level 1 | U.S. Government Agency Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 | Residential Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 | Commercial Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 1 | Asset Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 4,996 | 0 |
Fair Value, Recurring | Level 1 | Collateralized Mortgage Obligations | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 7,818 | 0 |
Fair Value, Recurring | Level 1 | Small Business Administration | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 3,296 | 0 |
Fair Value, Recurring | Level 1 | States and Political Subdivisions | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 4,115 | 0 |
Fair Value, Recurring | Level 1 | Corporate Notes | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 932,142 | 909,429 |
Derivatives | 10,781 | 3,508 |
Total | 942,923 | 912,937 |
Liabilities | ||
Derivatives | 10,651 | 3,682 |
Total | 10,651 | 3,682 |
Fair Value, Recurring | Level 2 | U.S. Treasury Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 2 | U.S. Government Agency Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 3,237 | 3,478 |
Fair Value, Recurring | Level 2 | Residential Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 115,722 | 110,013 |
Fair Value, Recurring | Level 2 | Commercial Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 43,645 | 4,168 |
Fair Value, Recurring | Level 2 | Asset Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 80,444 | 81,863 |
Fair Value, Recurring | Level 2 | Collateralized Mortgage Obligations | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 297,191 | 287,614 |
Fair Value, Recurring | Level 2 | Small Business Administration | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 65,410 | 108,914 |
Fair Value, Recurring | Level 2 | States and Political Subdivisions | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 266,628 | 262,202 |
Fair Value, Recurring | Level 2 | Corporate Notes | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 59,865 | 51,177 |
Fair Value, Recurring | Level 3 | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 11,065 | 8,558 |
Derivatives | 0 | 0 |
Total | 11,065 | 8,558 |
Liabilities | ||
Derivatives | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. Treasury Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. Government Agency Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | Residential Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial Mortgage-Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | Asset Backed Securities | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | Collateralized Mortgage Obligations | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | Small Business Administration | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | States and Political Subdivisions | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate Notes | ||
Assets | ||
Securities Available-for-Sale, at Fair Value | $ 11,065 | $ 8,558 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | $ 11,253 | $ 10,916 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | 11,253 | 10,916 |
Individually Evaluated Loans | 1,777 | 1,777 |
Fair Value, Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | 0 | 0 |
Individually Evaluated Loans | 0 | 0 |
Fair Value, Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | 0 | 0 |
Individually Evaluated Loans | 0 | 0 |
Fair Value, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OREO | 11,253 | 10,916 |
Individually Evaluated Loans | $ 1,777 | $ 1,777 |
Fair Value Measurements- Bank A
Fair Value Measurements- Bank Assets Measured on Nonrecurring Basis (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 11,253 | $ 10,916 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually Evaluated Loans | 1,777 | 1,777 |
Other real estate owned | 11,253 | 10,916 |
Individually Evaluated Loans | 1,777 | |
Fair Value, Nonrecurring | Individually Evaluated Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually Evaluated Loans | 1,777 | |
Fair Value, Nonrecurring | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 9,801 | 9,946 |
Fair Value, Nonrecurring | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 627 | |
Fair Value, Nonrecurring | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 190 | 190 |
Fair Value, Nonrecurring | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 635 | 780 |
Fair Value, Nonrecurring | Individually Evaluated Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually Evaluated Loans | $ 1,777 | |
Discounted Appraisals | Management's Discount & Estimated Selling Costs | Individually Evaluated Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Measurement Input | 0.530 | |
Discounted Appraisals | Minimum | Management's Discount & Estimated Selling Costs | Individually Evaluated Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually Evaluated Loans, Measurement Input | 0.530 | |
Discounted Appraisals | Weighted Average | Management's Discount & Estimated Selling Costs | Individually Evaluated Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually Evaluated Loans, Measurement Input | 0.530 | |
Discounted Appraisals | Weighted Average | Management's Discount & Estimated Selling Costs | Individually Evaluated Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, Measurement Input | 0.530 | |
Appraisals | Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.100 | 0.100 |
Appraisals | Weighted Average | Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.100 | 0.100 |
Executed Sales Agreement | Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.050 | |
Executed Sales Agreement | Weighted Average | Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.050 | |
Internal Valuations | Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.050 | 0.050 |
Internal Valuations | Weighted Average | Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.050 | 0.050 |
Discounted Internal Valuations | Minimum | Management’s Discount & Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.073 | 0.050 |
Discounted Internal Valuations | Maximum | Management’s Discount & Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.507 | 0.507 |
Discounted Internal Valuations | Weighted Average | Management’s Discount & Estimated Selling Costs | OREO | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.305 | 0.203 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Securities Available-for-Sale, at Fair Value | $ 982,041 | $ 922,400 |
Federal Home Loan Bank Stock, at Cost | 2,067 | 2,352 |
Reported Value Measurement | ||
Financial Assets: | ||
Cash and Cash Equivalents | 108,036 | 277,799 |
Securities Available-for-Sale, at Fair Value | 982,041 | 922,400 |
Loans Held-for-Sale | 196 | 228 |
Portfolio Loans, net | 2,797,628 | 2,716,190 |
Federal Home Loan Bank Stock, at Cost | 2,067 | 2,352 |
Other Assets- Interest Rate Derivatives | 10,781 | 3,508 |
Accrued Interest Receivable | 16,727 | 17,178 |
Financial Liabilities: | ||
Deposits | 3,728,278 | 3,698,476 |
Other Liabilities- Interest Rate Derivatives | 10,651 | 3,682 |
FHLB Borrowings | 0 | 7,000 |
Accrued Interest Payable | 1,333 | 1,378 |
Estimate of Fair Value Measurement | ||
Financial Assets: | ||
Cash and Cash Equivalents | 108,036 | 277,799 |
Securities Available-for-Sale, at Fair Value | 982,041 | 922,400 |
Loans Held-for-Sale | 196 | 228 |
Portfolio Loans, net | 2,770,247 | 2,689,578 |
Other Assets- Interest Rate Derivatives | 10,781 | 3,508 |
Accrued Interest Receivable | 16,727 | 17,178 |
Financial Liabilities: | ||
Deposits | 3,752,079 | 3,723,386 |
Other Liabilities- Interest Rate Derivatives | 10,651 | 3,682 |
FHLB Borrowings | 0 | 7,035 |
Accrued Interest Payable | 1,333 | 1,378 |
Estimate of Fair Value Measurement | Level 1 | ||
Financial Assets: | ||
Cash and Cash Equivalents | 38,534 | 36,698 |
Securities Available-for-Sale, at Fair Value | 38,834 | 4,413 |
Loans Held-for-Sale | 0 | 0 |
Portfolio Loans, net | 0 | 0 |
Federal Home Loan Bank Stock, at Cost | 0 | 0 |
Other Assets- Interest Rate Derivatives | 0 | 0 |
Accrued Interest Receivable | 34 | 17 |
Financial Liabilities: | ||
Deposits | 708,353 | 747,909 |
Other Liabilities- Interest Rate Derivatives | 0 | 0 |
FHLB Borrowings | 0 | 0 |
Accrued Interest Payable | 0 | 0 |
Estimate of Fair Value Measurement | Level 2 | ||
Financial Assets: | ||
Cash and Cash Equivalents | 69,502 | 241,101 |
Securities Available-for-Sale, at Fair Value | 932,142 | 909,429 |
Loans Held-for-Sale | 0 | 0 |
Portfolio Loans, net | 0 | 0 |
Federal Home Loan Bank Stock, at Cost | 0 | 0 |
Other Assets- Interest Rate Derivatives | 10,781 | 3,508 |
Accrued Interest Receivable | 3,791 | 3,462 |
Financial Liabilities: | ||
Deposits | 1,735,455 | 1,606,249 |
Other Liabilities- Interest Rate Derivatives | 10,651 | 3,682 |
FHLB Borrowings | 0 | 0 |
Accrued Interest Payable | 0 | 0 |
Estimate of Fair Value Measurement | Level 3 | ||
Financial Assets: | ||
Cash and Cash Equivalents | 0 | 0 |
Securities Available-for-Sale, at Fair Value | 11,065 | 8,558 |
Loans Held-for-Sale | 196 | 228 |
Portfolio Loans, net | 2,770,247 | 2,689,578 |
Other Assets- Interest Rate Derivatives | 0 | 0 |
Accrued Interest Receivable | 12,902 | 13,699 |
Financial Liabilities: | ||
Deposits | 1,308,271 | 1,369,228 |
Other Liabilities- Interest Rate Derivatives | 0 | 0 |
FHLB Borrowings | 0 | 7,035 |
Accrued Interest Payable | $ 1,333 | $ 1,378 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Fair Value of Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security |
Derivative Asset [Abstract] | ||
Fair Value | $ 10,777 | $ 3,508 |
Derivative Liability [Abstract] | ||
Fair Value | $ 10,647 | $ 3,682 |
Not Designated as Hedging Instrument | ||
Derivative Asset [Abstract] | ||
Number of Transactions | security | 63 | 66 |
Notional Amount | $ 390,032 | $ 446,490 |
Fair Value | $ 10,781 | $ 3,508 |
Derivative Liability [Abstract] | ||
Number of Transactions | security | 63 | 66 |
Notional Amount | $ 390,032 | $ 446,490 |
Fair Value | $ 10,651 | $ 3,682 |
Interest Rate Lock Commitments – Mortgage Loans | Not Designated as Hedging Instrument | ||
Derivative Asset [Abstract] | ||
Number of Transactions | security | 1 | 0 |
Notional Amount | $ 122 | $ 0 |
Fair Value | $ 4 | $ 0 |
Interest Rate Swap Contracts – Commercial Loans | Not Designated as Hedging Instrument | ||
Derivative Asset [Abstract] | ||
Number of Transactions | security | 62 | 66 |
Notional Amount | $ 389,910 | $ 446,490 |
Fair Value | $ 10,777 | $ 3,508 |
Derivative Liability [Abstract] | ||
Number of Transactions | security | 62 | 66 |
Notional Amount | $ 389,910 | $ 446,490 |
Fair Value | $ 10,647 | $ 3,682 |
Forward Sale Contracts – Mortgage Loans | Not Designated as Hedging Instrument | ||
Derivative Liability [Abstract] | ||
Number of Transactions | security | 1 | 0 |
Notional Amount | $ 122 | $ 0 |
Fair Value | $ 4 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Income (Loss) Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Total Derivative Income | $ 304 | $ 429 |
Interest Rate Lock Commitments – Mortgage Loans | ||
Derivative [Line Items] | ||
Total Derivative Income | 4 | 0 |
Forward Sale Contracts – Mortgage Loans | ||
Derivative [Line Items] | ||
Total Derivative Income | (4) | 0 |
Interest Rate Swap Contracts – Commercial Loans | ||
Derivative [Line Items] | ||
Total Derivative Income | $ 304 | $ 429 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Amounts Offset (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Asset Derivatives (Included in Other Assets) | ||
Gross Amounts Recognized | $ 10,777 | $ 3,508 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 10,777 | 3,508 |
Gross Amounts Not Offset | 0 | 0 |
Net Amount | 10,777 | 3,508 |
Liability Derivatives (Included in Other Liabilities) | ||
Gross Amounts Recognized | 10,647 | 3,682 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 10,647 | 3,682 |
Gross Amounts Not Offset | 0 | (4,080) |
Net Amount | $ 10,647 | $ (398) |
Federal Home Loan Bank Borrow_3
Federal Home Loan Bank Borrowings - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)advance | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)advance | |
Debt Instrument [Line Items] | |||
Advances from federal home loan banks | $ 0 | $ 7,000,000 | |
Maximum borrowing capacity | $ 1,000,000,000 | ||
Maximum amount available, percentage of total assets | 25.00% | ||
Remaining borrowing capacity | $ 693,000,000 | $ 667,300,000 | |
Number of loans | advance | 4 | ||
Payments of FHL bank borrowings | $ 7,000,000 | $ 5,000,000 | $ 28,000,000 |
Weighted average interest rate | 1.00% | ||
Repaid At Maturity | |||
Debt Instrument [Line Items] | |||
Number of loans | advance | 1 | ||
Payments of FHL bank borrowings | $ 3,000,000 | ||
Repaid Ahead Of Scheduled Maturity | |||
Debt Instrument [Line Items] | |||
Payments of FHL bank borrowings | 25,000,000 | ||
Early repayment fee | $ 43,000 | ||
Loans Receivable | |||
Debt Instrument [Line Items] | |||
Assets pledged as collateral | 1,100,000,000 | 1,100,000,000 | |
Available-for-sale Securities | |||
Debt Instrument [Line Items] | |||
Assets pledged as collateral | $ 0 | $ 0 |
Federal Home Loan Bank Borrow_4
Federal Home Loan Bank Borrowings - Long Term Debt (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Long-term Borrowings | $ 0 | $ 7,000,000 |
Weighted Average Interest Rate | 0.00% | 1.61% |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Other Commitments [Line Items] | |||
Release of unfunded commitments | $ 236 | $ 282 | |
Construction Loans | |||
Other Commitments [Line Items] | |||
Commitments to extend credit, percent to total | 54.10% | 55.30% | |
Unfunded Loan Commitment | |||
Other Commitments [Line Items] | |||
Release of unfunded commitments | $ 200 | $ 300 |
Commitment and Contingencies _2
Commitment and Contingencies - Commitments and Letters of Credit (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Commitments [Line Items] | ||
Commitments to Extent Credit | $ 493,765 | $ 513,482 |
Commitment | 519,919 | 540,565 |
Standby Letters of Credit | ||
Other Commitments [Line Items] | ||
Guarantee, letter of credit outstanding | $ 26,154 | $ 27,083 |
Commitment and Contingencies _3
Commitment and Contingencies - Life-of-Loss Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Life-of-loss reserve on unfunded loan commitments, beginning balance | $ 1,783 | $ 144 |
Provision for Unfunded Commitments | (236) | (282) |
Life-of-loss reserve on unfunded loan commitments, ending balance | 1,547 | 2,770 |
Cumulative Effect for Adoption of Credit Losses | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Life-of-loss reserve on unfunded loan commitments, beginning balance | 0 | 2,908 |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Life-of-loss reserve on unfunded loan commitments, beginning balance | $ 1,783 | $ 3,052 |
Tax Effects on Other Comprehe_2
Tax Effects on Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive (Loss) Income, Pre-Tax Amount | $ (43,008) | $ (14,104) |
Other Comprehensive (Loss) Income, Tax (Expense) Benefit | 9,032 | 2,962 |
Other Comprehensive Loss | (33,976) | (11,142) |
AOCI, Accumulated Gain (Losses), Debt Securities, Available-for-sale, Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net Unrealized (Losses) Gains Arising during the period, Pre-Tax Amount | (43,032) | (10,494) |
Net Unrealized (Losses) Gains Arising during the period, Tax (Expense) Benefit | 9,037 | 2,204 |
Net Unrealized (Losses) Gains Arising during the period, Net of Tax Amount | (33,995) | (8,290) |
Reclassification Adjustment for Gains included in Net Income, Pre-Tax Amount | 24 | (3,610) |
Reclassification Adjustment for Gains included in Net Income, Tax (Expense) Benefit | (5) | 758 |
Reclassification Adjustment for Gains included in Net Income, Net of Tax Amount | $ 19 | $ (2,852) |
Stock Repurchase Plan (Details)
Stock Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2022 | Dec. 10, 2021 | Dec. 31, 2021 |
Equity [Abstract] | |||
Stock repurchase program, authorized amount | $ 2 | ||
Stock repurchase program, period | 12 months | ||
Common shares repurchased (in shares) | 1,523,157 | 30,407 | |
Share price (usd per share) | $ 16.17 | $ 15.22 | |
Value acquired | $ 0.5 |