Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Entity Central Index Key | 0000712771 | |
Document Period End Date | Mar. 31, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-11486 | |
Entity Registrant Name | CONNECTONE BANCORP, INC. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 52-1273725 | |
Entity Address, Address Line One | 301 Sylvan Avenue | |
Entity Address, City or Town | Englewood Cliffs | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07632 | |
City Area Code | 201 | |
Local Phone Number | 816-8900 | |
Entity Information, Former Legal or Registered Name | N/A | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock | |
Trading Symbol | CNOB | |
Name of Exchange on which Security is Registered | NASDAQ | |
Entity Common Stock, Shares Outstanding | 39,773,602 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 48,250 | $ 63,637 |
Interest-bearing deposits with banks | 211,842 | 240,119 |
Cash and cash equivalents | 260,092 | 303,756 |
Securities available-for-sale | 442,023 | 487,955 |
Equity securities | 13,200 | 13,387 |
Loans held-for-sale | 6,900 | 4,710 |
Loans receivable | 6,277,191 | 6,236,307 |
Less: Allowance for credit losses (loans) | 80,568 | 79,226 |
Net loans receivable | 6,196,623 | 6,157,081 |
Investment in restricted stock, at cost | 22,483 | 25,099 |
Bank premises and equipment, net | 29,296 | 30,108 |
Accrued interest receivable | 35,249 | 35,317 |
Bank owned life insurance | 167,024 | 165,960 |
Right of use operating lease assets | 13,469 | 16,159 |
Goodwill | 208,372 | 208,372 |
Core deposit intangibles | 10,470 | 10,977 |
Other assets | 44,438 | 88,458 |
Total assets | 7,449,639 | 7,547,339 |
Deposits: | ||
Noninterest-bearing | 1,384,961 | 1,339,108 |
Interest-bearing | 4,566,373 | 4,620,116 |
Total deposits | 5,951,334 | 5,959,224 |
Borrowings | 359,710 | 425,954 |
Subordinated debentures, net | 152,724 | 202,648 |
Lease liabilities | 15,260 | 18,026 |
Other liabilities | 34,974 | 26,177 |
Total liabilities | 6,514,002 | 6,632,029 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred Stock: Authorized 5,000,000 shares | ||
Common stock, no par value: Authorized 50,000,000 shares; issued 42,525,864 shares as of March 31, 2021 and 42,444,031 shares as of December 31, 2020; outstanding 39,773,602 shares as of March 31, 2021 and 39,785,398 as of December 31, 2020 | 586,946 | 586,946 |
Additional paid-in capital | 23,621 | 23,887 |
Retained earnings | 358,441 | 331,951 |
Treasury stock, at cost 2,752,262 common shares as of March 31, 2021 and 2,658,633 as of December 31, 2020 | (32,682) | (30,271) |
Accumulated other comprehensive (loss) income | (689) | 2,797 |
Total stockholders' equity | 935,637 | 915,310 |
Total liabilities and stockholders' equity | $ 7,449,639 | $ 7,547,339 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 42,525,864 | 42,444,031 |
Common stock, shares outstanding | 39,773,602 | 39,785,398 |
Treasury Stock, Shares | 2,752,262 | 2,658,633 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest income | ||
Interest and fees on loans | $ 70,462 | $ 72,936 |
Interest and dividends on investment securities: | ||
Taxable | 1,088 | 2,066 |
Tax-exempt | 766 | 813 |
Dividends | 256 | 400 |
Interest on federal funds sold and other short-term investments | 49 | 499 |
Total interest income | 72,621 | 76,714 |
Interest expense | ||
Deposits | 7,585 | 17,212 |
Borrowings | 3,873 | 4,221 |
Total interest expense | 11,458 | 21,433 |
Net interest income | 61,163 | 55,281 |
(Reversal of) provision for credit losses | (5,766) | 16,000 |
Net interest income after provision for credit losses | 66,929 | 39,281 |
Noninterest income | ||
Deposit, loan and other income | 1,168 | 1,287 |
Income on bank owned life insurance | 1,064 | 967 |
Net gains on sale of loans held-for-sale | 707 | 393 |
Net gains on sale of investment securities | 29 | |
Gain on sale of branches | (674) | |
Net (losses) gains on equity securities | (187) | 178 |
Total noninterest income | 3,426 | 2,854 |
Noninterest expenses | ||
Salaries and employee benefits | 15,632 | 14,593 |
Occupancy and equipment | 3,404 | 3,471 |
FDIC insurance | 935 | 856 |
Professional and consulting | 1,956 | 1,574 |
Marketing and advertising | 241 | 304 |
Data processing | 1,536 | 1,473 |
Merger expenses | 9,494 | |
Amortization of core deposit intangibles | 507 | 652 |
Other components of net periodic pension expense | (67) | (30) |
Other expenses | 2,341 | 2,671 |
Total noninterest expenses | 26,485 | 35,058 |
Income before income tax expense | 43,870 | 7,077 |
Income tax expense | 10,871 | 1,047 |
Net income | $ 32,999 | $ 6,030 |
Earnings per common share | ||
Basic | $ 0.83 | $ 0.15 |
Diluted | $ 0.82 | $ 0.15 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 32,999 | $ 6,030 |
Unrealized gains and losses: | ||
Unrealized holding (losses) gains on available-for-sale securities arising during the period | (5,440) | 6,252 |
Tax effect | 1,432 | (1,691) |
Net of tax | (4,008) | 4,561 |
Reclassification adjustment for realized gains on securities included in net income | (29) | |
Tax effect | 6 | |
Net of tax | (23) | |
Unrealized gains (losses) on cash flow hedge | 24 | (2,749) |
Tax effect | (11) | 773 |
Net of tax | 13 | (1,976) |
Reclassification adjustment for realized losses (gains) included in net income | 631 | (7) |
Tax effect | (177) | 2 |
Net of tax | 454 | (5) |
Unrealized pension plan gains and losses: | ||
Reclassification adjustment for realized losses on pension plan included in net income | 75 | 75 |
Tax effect | (20) | (21) |
Net of tax | 55 | 54 |
Total other comprehensive (loss) income | (3,486) | 2,611 |
Total comprehensive income | $ 29,513 | $ 8,641 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance at Dec. 31, 2019 | $ 468,571 | $ 21,344 | $ 271,782 | $ (29,360) | $ (1,147) | $ 731,190 | |
Net income | 6,030 | 6,030 | |||||
Other comprehensive income (loss), net of tax | 2,611 | 2,611 | |||||
Cash dividends declared on common stock | (3,987) | (3,987) | |||||
Exercise of stock options | 163 | 163 | |||||
Restricted stock grants | |||||||
Net shares issued in satisfaction of restricted stock units earned | |||||||
Net shares issued in satisfaction of performance units earned | |||||||
Share redemption for tax withholdings on performance units and restricted stock units earned | (297) | (297) | |||||
Repurchase of treasury stock | (911) | (911) | |||||
Stock issued in acquisition of Bancorp of New Jersey | 118,375 | 118,375 | |||||
Stock-based compensation | 536 | 536 | |||||
Balance at Mar. 31, 2020 | 586,946 | 21,746 | 273,825 | (30,271) | 1,464 | 853,710 | |
Balance at Dec. 31, 2020 | 586,946 | 23,887 | 331,951 | (30,271) | 2,797 | 915,310 | |
Cumulative effect of change in accounting principle (see note 1b. "Authoritative Accounting Guidance Presentation"), net of tax | (2,925) | (2,925) | |||||
Balance on January 1 at Dec. 31, 2020 | 586,946 | 23,887 | 329,026 | (30,271) | 2,797 | 912,385 | |
Net income | 32,999 | 32,999 | |||||
Other comprehensive income (loss), net of tax | (3,486) | (3,486) | |||||
Cash dividends declared on common stock | (3,584) | (3,584) | |||||
Exercise of stock options | 45 | 45 | |||||
Restricted stock grants | |||||||
Stock grants | |||||||
Net shares issued in satisfaction of restricted stock units earned | |||||||
Net shares issued in satisfaction of performance units earned | |||||||
Share redemption for tax withholdings on performance units and restricted stock units earned | (1,283) | (1,283) | |||||
Repurchase of treasury stock | (2,411) | (2,411) | |||||
Stock-based compensation | 972 | 972 | |||||
Balance at Mar. 31, 2021 | $ 586,946 | $ 23,621 | $ 358,441 | $ (32,682) | $ (689) | $ 935,637 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash dividends declared on common stock (in Dollars per share) | $ 0.11 | $ 0.090 |
Exercise of stock options, shares | 5,449 | 25,413 |
Restricted stock and performance units grants, shares | 26,769 | 20,684 |
Stock grants, shares | 446 | |
Restricted stock units, shares | 14,711 | 16,599 |
Net performance units issued | 34,458 | 22,402 |
Repurchase of treasury stock | 93,629 | 54,693 |
Greater Hudson Bank [Member] | ||
Stock issued in acquisition | 4,602,450 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net income | $ 32,999 | $ 6,030 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 880 | 949 |
(Reversal of) provision for credit losses | (5,766) | 16,000 |
Amortization of intangibles | 507 | 652 |
Net accretion of loans | (1,406) | (1,996) |
Accretion on bank premises | (23) | (23) |
Accretion on deposits | (650) | (1,503) |
(Accretion) amortization on borrowings, net | (17) | 43 |
Stock-based compensation | 972 | 536 |
Gains on sales of securities available-for-sale, net | (29) | |
Losses (gains) on equity securities, net | 187 | (178) |
Gains on sale of loans held-for-sale, net | (707) | (393) |
Loans originated for resale | (23,348) | (5,186) |
Proceeds from sale of loans held-for-sale | 21,856 | 17,324 |
Gain on sale of branches | (674) | |
Net losses on disposition of other premises and equipment | 22 | |
Increase in cash surrender value of bank owned life insurance | (1,064) | (968) |
Amortization of premiums and accretion of discounts on securities available-for-sale | 1,605 | 1,101 |
Amortization of subordinated debentures issuance costs | 76 | 82 |
Decrease increase in accrued interest receivable | 68 | (458) |
Net change in operating leases | (131) | (19) |
Decrease in other assets | 47,156 | 17,366 |
Increase (decrease) in other liabilities | 7,589 | (2,869) |
Net cash provided by operating activities | 80,131 | 46,461 |
Cash flows from investing activities | ||
Purchases | (33,305) | (86,731) |
Sales | 19,624 | |
Maturities, calls and principal repayments | 72,193 | 50,294 |
Net purchases (redemptions) of restricted investment in bank stocks | 2,616 | (8,094) |
Purchases of equity securities | (2,000) | |
Payments on loans held-for-sale | 9 | 75 |
Net increase in loans | (36,553) | (130,187) |
Purchases of bank owned life insurance | (25,000) | |
Purchases of premises and equipment | (67) | (1,728) |
Proceeds from sale of branches | 729 | |
Proceeds from sale of OREO | 992 | |
Cash and cash equivalents acquired in acquisition, net | 87,391 | |
Net cash provided by (used) in investing activities | 5,622 | (95,364) |
Cash flows from financing activities | ||
Net decrease in deposits | (7,240) | (42,225) |
Advances of Federal Home Loan Bank ("FHLB") borrowings | 980,000 | |
Repayments of FHLB borrowings | (66,227) | (803,222) |
Decrease in subordinated debt | (50,000) | |
Cash dividends paid on common stock | (3,584) | (3,576) |
Repurchase of treasury stock | (2,411) | (911) |
Proceeds from exercise of stock options | 45 | 163 |
Net cash (used in) provided by financing activities | (129,417) | 130,229 |
Net change in cash and cash equivalents | (43,664) | 81,326 |
Cash and cash equivalents at beginning of period | 303,756 | 201,483 |
Cash and cash equivalents at end of period | 260,092 | 282,809 |
Cash payments for: | ||
Interest paid on deposits and borrowings | 11,690 | 24,627 |
Income taxes | 4,350 | 7,476 |
Investing: | ||
Transfer of loans from held-for-investment to held-for-sale | 10,995 | |
Business combinations: | ||
Fair value of assets acquired | 949,276 | |
Fair value of liabilities assumed | $ 852,729 |
Nature of Operations, Principle
Nature of Operations, Principles of Consolidation and Risk and Uncertainties | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Principles of Consolidation and Risk and Uncertainties | Note 1a. Nature of Operations, Principles of Consolidation and Risk and Uncertainties Nature of Operations ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company. The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a New Jersey investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey online business lending marketplace). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-five other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages. The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021, or for any other interim period. The Company’s 2020 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements. Basis of Presentation The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. Use of Estimates In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. Risks and Uncertainties As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. Although state and local governments have lifted many restrictions on conducting business, it is possible that additional restrictions could be reimposed. It is therefore unknown how long COVID-19 may continue to impact the economy and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for loan losses, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes. |
Authoritative Accounting Guidan
Authoritative Accounting Guidance | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Authoritative Accounting Guidance | Note 1b. Authoritative Accounting Guidance Adoption of New Accounting Standards in 2021 Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity (“HTM”). It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as ("AFS"), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchase credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchase credit impaired loans as of December 31, 2020 were considered purchase credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousand): Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL Allowance for credit losses (“ACL”) (loans) $ 1,350 $ 406 $ 1,304 Adjustment related to purchased credit-impaired loan marks (1) 5,207 - - Total ACL - loans 6,557 406 1,304 ACL – (unfunded credit commitments) 2,833 852 1,621 Total impact of CECL adoption $ 9,390 $ 1,258 $ 2,925 (1) This amounts represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021. Loans designated as purchased credit impaired loans (“PCI”) and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as purchased with credit deterioration loans (“PCD”). In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the ACL for loans of $5.2 million, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021 over the remaining estimated life of the loans. Also, in accordance with the CECL Standard, the Company did not reassess whether modifications to individual acquired financial assets were troubled debt restructurings (“TDRs”) as of the date of adoption. ACL for loans 10 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1b. Authoritative Accounting Guidance – (continued) The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company currently utilizes a one-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of the loan. The measurement of expected credit loss under the CECL methodology is applicable to financial assets measured at amortized cost, including loans, held to maturity investments and it also applies to certain off-balance sheet credit exposures. The ACL for loans is measured on a collective (pool) basis when similar risk characteristics exist. Generally, for all other loan types, the estimated expected credit loss is also calculated at the loan level and pool assignments are only utilized for aggregating the allowance estimates of similar loan types for financial statement disclosure purposes. Loan segments have unique risk characteristics with respect to credit quality and are as follows: ● The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring is not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability. ● Payment on commercial mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general. ● Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain. ● The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions. ● The Company considers loan classes and loan segments to be one and the same. Individually Analyzed Loans For collateral dependent loans, when it is determined that a foreclosure is probable, the ACL will be determined on a loan level basis using the fair value of the collateral as of the reporting date, less estimated disposition costs (“net fair value”), which will ensure that the credit loss is not delayed until the time at which the actual foreclosure takes place. In the event that this fair value is less the then amortized cost basis of these specific loans, we will recognize the difference between the net fair value at the reporting date and the amortized cost basis in the ACL. If the fair value of the collateral has increased as of the ACL evaluation date, the increase in the fair value of the collateral is reflected through a reduction in the ACL. ACL adjustments for estimated disposition costs are not appropriate when the repayment of a collateral-dependent loan is expected from the operation of the collateral. If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as the allowance for credit losses. The effective interest rate used to discount expected cash flows is adjusted to incorporate expected prepayments, if applicable. For charge-off and recoveries we will generally charge-off a loan balance after an analysis is completed which indicates that the collectability of the full principal is in doubt. Charge-offs are charged against the allowance in the period in which the loans are deemed to be uncollectible. Any expected future recoveries of amounts which were previously charged-off or expected to be charged-off will be included in the ACL, as the recoveries represent a component of the net amount expected to be collected. Expected recoveries in the ACL shall not exceed amounts previously charged-off or expected to be charged-off. Investment Securities 11 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1b. Authoritative Accounting Guidance – (continued) ACL - on investment securities classified as available-for-sale Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when we believe the uncollectibility of an available-for-sale security has been confirmed or if either of the criteria regarding intent or requirement to sell is met. ASU No. 2021-03, “Intangibles – Goodwill and Other (Topic 350).” ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per common share | |
Earnings per Common Share | Note 2. Earnings per Common Share Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. Earnings per common share have been computed based on the following: Three Months Ended March 31, (dollars in thousands, except for per share data) 2021 2020 Net income $ 32,999 $ 6,030 Earnings allocated to participating securities (186 ) (27 ) Income attributable to common stock $ 32,813 $ 6,003 Weighted average common shares outstanding, including participating securities 39,738 39,559 Weighted average participating securities (181 ) (135 ) Weighted average common shares outstanding 39,557 39,424 Incremental shares from assumed conversions of options, performance units and restricted shares 232 92 Weighted average common and equivalent shares outstanding 39,789 39,516 Earnings per common share: Basic $ 0.83 $ 0.15 Diluted 0.82 0.15 There were no antidilutive share equivalents as of March 31, 2021 and March 31, 2020. |
Securities Available-for-Sale
Securities Available-for-Sale | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Note 3. Securities Available-for-Sale The Company’s investment securities are classified as available-for-sale as of March 31, 2021 and December 31, 2020. Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of March 31, 2021 and December 31, 2020. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 6 of the Notes to Consolidated Financial Statements for a further discussion. The following tables present information related to the Company’s portfolio of securities available-for-sale as of March 31, 2021 and December 31, 2020. Allowance for Gross Gross Investment Amortized Unrealized Unrealized Fair Credit Cost Gains Losses Value Losses March 31, 2021 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 40,507 $ 1,141 $ (347 ) $ 41,301 - Residential mortgage pass-through securities 238,406 3,628 (1,680 ) 240,354 - Commercial mortgage pass-through securities 6,881 35 (502 ) 6,414 - Obligations of U.S. states and political subdivisions 127,809 2,925 (231 ) 130,503 - Corporate bonds and notes 17,444 221 - 17,665 - Asset-backed securities 3,361 8 (10 ) 3,359 - Certificates of deposit 149 1 - 150 - Other securities 2,277 - - 2,277 - Total securities available-for-sale $ 436,834 $ 7,959 $ (2,770 ) $ 442,023 $ - December 31, 2020 Securities available-for-sale Federal agency obligations $ 37,015 $ 1,508 $ (65 ) $ 38,458 N/A Residential mortgage pass-through securities 266,114 4,811 (41 ) 270,884 N/A Commercial mortgage pass-through securities 6,906 203 (187 ) 6,922 N/A Obligations of U.S. states and political subdivisions 138,539 4,269 - 142,808 N/A Corporate bonds and notes 24,925 222 (52 ) 25,095 N/A Asset-backed securities 3,521 - (41 ) 3,480 N/A Certificates of deposit 149 2 - 151 N/A Other securities 157 - - 157 N/A Total securities available-for-sale $ 477,326 $ 11,015 $ (386 ) $ 487,955 N/A 14 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 3. Securities Available-for-Sale – (continued) Investment securities having a carrying value of approximately $112.2 million and $107.6 million as of March 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits, borrowings, repurchase agreements, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of March 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The following table presents information for investments in securities available-for-sale as of March 31, 2021, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately. March 31, 2021 Amortized Fair Cost Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 5,898 $ 5,929 Due after one year through five years 16,369 16,625 Due after five years through ten years 14,172 14,527 Due after ten years 152,831 155,897 Residential mortgage pass-through securities 238,406 240,354 Commercial mortgage pass-through securities 6,881 6,414 Other securities 2,277 2,277 Total securities available-for-sale $ 436,834 $ 442,023 We had no gross gains or losses from the sale of securities for three months ended March 31, 2021. Gross gains and losses for three months ended March 31, 2020 from the sales of securities for periods presented were as follows (dollars in thousands): Three Months Ended March 31, 2021 2020 Proceeds $ - $ 19,624 Gross gains on sales of securities - 29 Gross losses on sales of securities - - Net gains on sales of securities - 29 Less: tax provision on net gains - (6 ) Net gains on sales of securities, after tax $ - $ 23 15 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 3. Securities Available-for-Sale – (continued) Impairment Analysis of Available--for-sale Debt Securities The following tables indicate gross unrealized losses in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of March 31, 2021 and December 31, 2020. March 31, 2021 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 15,923 $ (347 ) $ 15,922 $ (347 ) $ 1 $ - Residential mortgage pass-through securities 125,231 (1,680 ) 125,223 (1,680 ) 8 - Commercial mortgage pass-through securities 4,375 (502 ) 4,375 (502 ) - - Obligations of U.S. states and political subdivisions 29,179 (231 ) 29,179 (231 ) - - Corporate bonds and notes 1,000 - 1,000 - - - Asset-backed securities 900 (10 ) - - 900 (10 ) Total temporarily impaired securities $ 176,608 $ (2,770 ) $ 175,699 $ (2,760 ) $ 909 $ (10 ) December 31, 2020 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 8,978 $ (65 ) $ 8,975 $ (65 ) $ 3 $ - Residential mortgage pass-through securities 20,895 (41 ) 20,886 (41 ) 9 - Commercial mortgage pass-through securities 3,954 (187 ) 3,954 (187 ) - - Corporate bonds and notes 3,928 (52 ) 3,928 (52 ) - - Asset-backed securities 3,083 (41 ) 622 - 2,461 (41 ) Total Temporarily Impaired Securities $ 40,838 $ (386 ) $ 38,365 $ (345 ) $ 2,473 $ (41 ) 16 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 3. Securities Available-for-Sale – (continued) On January 1, 2021, the Company adopted ASU 2016-13 and implemented the CECL methodology for allowance for credit losses on its investment securities available-for-sale. The new CECL methodology replaces the other-than-temporary impairment model that previously existed. The Company did not have a CECL day 1 impact attributable to its investment securities portfolio and did not have an allowance for credit losses as of March 31, 2021. The Company has elected to exclude accrued interest from the amortized cost of its investment securities available-for-sale. Accrued interest receivable for investment securities available for sale as of March 31, 2021 and December 31, 2020, totaled $1.6 million and $1.7 million, respectively. The Company evaluates securities in unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses on asset backed securities and state and municipal securities have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of March 31, 2021. Federal agency obligations, residential mortgage backed pass-through securities and commercial mortgage back pass-through securities are issued by U.S. Government agencies and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government, and the current support they receive is subject to a cap as part of the agreement entered into in 2008. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, we concluded that a zero-allowance approach for these investment securities is appropriate. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 4. Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps were entered into on April 13, 2017, January 1, 2020 and March 3, 2020 each with a respective notional amount of $25.0 million and were designated as a cash flow hedge of a Federal Home Loan Bank advance. In addition, interest rate swaps were entered into on June 4, 2019 and August 6, 2019, each with a respective notional amount of $50.0 million and were designated as a cash flow hedge of a Federal Home Loan Bank advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. 17 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 4. Derivatives – (continued) Summary information about the interest rate swaps designated as cash flow hedges as of March 31, 2021, December 31, 2020 and March 31, 2020 are presented in the following table. March 31, December 31, March 31, 2021 2020 2020 (dollars in thousands) Notional amount $ 175,000 $ 175,000 $ 200,000 Weighted average pay rates 0.22 % 1.85 % 1.74 % Weighted average receive rates 1.68 % 0.92 % 1.76 % Weighted average maturity 0.6 years 0.8 years 1.4 years Fair value $ (1,464 ) $ (2,119 ) $ (3,029 ) Interest expense recorded on these swap transactions totaled approximately $631 thousand during the three months ended March 31, 2021 compared to $(7) thousand during the three months ended March 31, 2020 and is reported as a component of interest expense on FHLB Advances. Cash Flow Hedge The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods: Three Months Ended March 31, 2021 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 24 $ 631 $ - Three Months Ended March 31, 2020 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ (2,749 ) $ (7 ) $ - The following table reflects the cash flow hedges included in the consolidated statements of condition as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Notional Notional Amount Fair Value Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 175,000 $ (1,464 ) $ 175,000 $ (2,119 ) |
Loans and the Allowance for Cre
Loans and the Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans and the Allowance for Credit Losses | Note 5. Loans and the Allowance for Credit Losses Loans Receivable - March 31, December 31, 2021 2020 (dollars in thousands) Commercial (1) $ 1,622,652 $ 1,521,967 Commercial real estate 3,797,244 3,783,550 Commercial construction 565,872 617,747 Residential real estate 306,376 322,564 Consumer 3,364 1,853 Gross loans 6,295,508 6,247,681 Net deferred loan fees (18,317 ) (11,374 ) Total loans receivable $ 6,277,191 $ 6,236,307 (1) Included in commercial loans as of March 31, 2021 and December 31, 2020 are PPP loans of $522.3 million and $397.5 million, respectively. As of March 31, 2021 and December 31, 2020, loan balances of approximately $2.6 billion and $2.7 billion, respectively, were pledged to secure borrowings from the FHLB of New York. Loans held-for-sale - March 31, December 31, 2021 2020 (dollars in thousands) Commercial real estate $ 1,981 $ 1,990 Residential real estate 4,919 2,720 Total carrying amount $ 6,900 $ 4,710 Loans Receivable on Nonaccrual Status - Nonaccrual Loans with an ACL Nonaccrual loans without an ACL (dollars in thousands) Commercial $ 28,136 $ 2,969 Commercial real estate 3,225 12,876 Commercial construction 2,934 6,017 Residential real estate - 4,783 Consumer - - Total nonaccrual loans $ 34,295 $ 26,645 The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands): December 31, 2020 Commercial $ 33,019 Commercial real estate 10,111 Commercial construction 14,015 Residential real estate 4,551 Consumer - Total nonaccrual loans $ 61,696 Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment. 19 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) Credit Quality Indicators 20 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of March 31, 2021, our loans based on year of origination and risk designation is as follows (dollars in thousands): Term loans amortized cost basis by origination year Resolving Loans Total Gross Loans 2021 2020 2019 2018 2017 Prior Commercial Pass $ 289,283 $ 393,432 $ 67,665 $ 70,763 $ 109,667 $ 131,509 $ 486,619 $ 1,548,938 Special mention - - 225 258 292 15,646 12,948 29,369 Substandard - - 1,795 13,307 4,122 21,638 3,274 44,136 Doubtful - - - 209 - - - 209 Total Commercial $ 289,283 $ 393,432 $ 69,685 $ 84,537 $ 114,081 $ 168,793 $ 502,841 $ 1,622,652 Commercial Real Estate Pass $ 241,516 $ 608,263 $ 477,620 $ 570,798 $ 592,738 $ 1,097,118 $ 120,252 $ 3,708,305 Special mention - - 1,379 10,892 4,393 23,511 8,790 48,965 Substandard 1,996 - 836 1,288 3,394 32,460 - 39,974 Doubtful - - - - - - - - Total Commercial Real Estate $ 243,512 $ 608,263 $ 479,835 $ 582,978 $ 600,525 $ 1,153,089 $ 129,042 $ 3,797,244 Commercial Construction Pass $ 1,405 $ 7,506 $ 39,832 $ 8,730 $ 3,981 $ 490 $ 478,478 $ 540,422 Special mention - - - - - - - - Substandard - - - - - 216 25,234 25,450 Doubtful - - - - - - - - Total Commercial Construction $ 1,405 $ 7,506 $ 39,832 $ 8,730 $ 3,981 $ 706 $ 503,712 $ 565,872 Residential Real Estate Pass $ 3,680 $ 35,193 $ 29,698 $ 34,362 $ 46,531 $ 93,376 $ 50,046 $ 292,886 Special mention - - - - - - - - Substandard - - - 207 - 9,543 3,740 13,490 Doubtful - - - - - - - - Total Residential Real Estate $ 3,680 $ 35,193 $ 29,698 $ 34,569 $ 46,531 $ 102,919 $ 53,786 $ 306,376 Consumer Pass $ 2 $ 117 $ 58 $ 42 $ 53 $ 2,961 $ 131 $ 3,364 Special mention - - - - - - - - Substandard - - - - - - - - Doubtful - - - - - - - - Total Consumer $ 2 $ 117 $ 58 $ 42 $ 53 $ 2,961 $ 131 $ 3,364 21 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020: December 31, 2020 Pass Special Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 1,447,097 $ 30,725 $ 43,930 $ 215 $ 1,521,967 Commercial real Estate 3,700,498 49,143 33,909 - 3,783,550 Commercial construction 587,266 - 30,481 - 617,747 Residential real Estate 311,174 - 11,390 - 322,564 Consumer 1,853 - - - 1,853 Gross loans $ 6,047,888 $ 79,868 $ 119,710 $ 215 $ 6,247,681 Collateral Dependent Loans March 31, 2021 Real Estate Other Total (dollars in thousands) Commercial $ 6,330 $ 26,171 $ 32,501 Commercial real estate 29,441 - 29,441 Commercial construction 19,402 - 19,402 Residential real estate 11,024 - 11,024 Consumer - - - Total (no related allowance) $ 66,197 $ 26,171 $ 92,368 Impaired loans The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020: December 31, 2020 Unpaid Recorded Principal Recorded Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 11,325 $ 11,835 Commercial real estate 13,105 13,449 Commercial construction 24,284 24,907 Residential real estate 5,378 5,723 Consumer - - Total (no related allowance) $ 54,092 $ 55,914 With an allowance recorded Commercial $ 23,736 $ 69,122 $ 12,985 Commercial real estate 2,722 2,722 1,329 Total (with allowance) $ 26,458 $ 71,844 $ 14,314 Total Commercial $ 35,061 $ 80,957 $ 12,985 Commercial real estate 15,827 16,171 1,329 Commercial construction 24,284 24,907 - Residential real estate 5,378 5,723 - Consumer - - - Total $ 80,550 $ 127,758 $ 14,314 22 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by class as of and for the three months ended March 31, 2020 (dollars in thousands): March 31,2020 Average Interest Recorded Income Investment Recognized Impaired loans with no related allowance recorded Commercial $ 36,442 $ 94 Commercial real estate 15,238 84 Commercial construction 17,371 85 Residential real estate 3,827 - Consumer - - Total $ 72,878 $ 263 Impaired loans with an allowance recorded Commercial real estate $ - $ - Commercial construction 6,463 - Residential real estate 262 3 Total $ 6,725 $ 3 Total impaired loans Commercial $ 36,442 $ 94 Commercial real estate 15,238 84 Commercial construction 23,834 85 Residential real estate 4,089 3 Consumer - - Total $ 79,603 $ 266 Aging Analysis - March 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 1,293 $ - $ 4,475 $ 31,105 $ 36,873 $ 1,585,779 $ 1,622,652 Commercial real Estate 11,292 664 7,679 16,101 35,736 3,761,508 3,797,244 Commercial construction 4,400 - - 8,951 13,351 552,521 565,872 Residential real Estate 202 - 4,238 4,783 9,223 297,153 306,376 Consumer 4 - - - 4 3,360 3,364 Total $ 17,191 $ 664 $ 16,392 $ 60,940 $ 95,187 $ 6,200,321 $ 6,295,508 December 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Total Loans Receivable Commercial $ 1,445 $ 558 $ 3,182 $ 33,019 $ 38,204 $ 1,483,763 $ 1,521,967 Commercial real estate 13,258 4,140 5,555 10,111 33,064 3,750,486 3,783,550 Commercial construction 2,472 - - 14,015 16,487 601,260 617,747 Residential real estate 1,367 241 4,084 4,551 10,243 312,321 322,564 Consumer 2 - - - 2 1,851 1,853 Total $ 18,544 $ 4,939 $ 12,821 $ 61,696 $ 98,000 $ 6,149,681 $ 6,247,681 Included in the 90 days or greater past due and still accruing category as of December 31, 2020 are purchased credit-impaired loans, net of fair value marks, which accrete income per the valuation at date of acquisition. 23 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for credit losses that are allocated to each loan portfolio segment: March 31, 2021 Commercial Commercial Residential Commercial real estate construction real estate Consumer Total (dollars in thousands) ACL Individually evaluated for impairment $ 15,663 $ 1,634 $ 434 $ 283 $ - $ 18,014 Collectively evaluated for impairment 8,496 39,486 5,087 4,267 11 57,347 Acquired with deteriorated credit quality individually analyzed 2,276 2,777 - 154 - 5,207 Total $ 26,435 $ 43,897 $ 5,521 $ 4,704 $ 11 $ 80,568 Gross loans Individually evaluated for impairment $ 33,330 $ 21,762 $ 19,402 $ 6,786 $ - $ 81,280 Collectively evaluated for impairment 1,584,095 3,767,803 546,470 295,352 3,364 6,197,084 Acquired with deteriorated credit quality individually analyzed 5,227 7,679 - 4,238 - 17,144 Total $ 1,622,652 $ 3,797,244 $ 565,872 $ 306,376 $ 3,364 $ 6,295,508 December 31, 2020 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 12,985 $ 1,329 $ - $ - $ - $ - $ 14,314 Collectively evaluated for impairment 15,412 33,373 7,787 1,928 4 568 59,072 Acquired portfolio 46 4,628 407 759 - - 5,840 Acquired with deteriorated credit quality - - - - - - - Total $ 28,443 $ 39,330 $ 8,194 $ 2,687 $ 4 $ 568 $ 79,226 Gross loans Individually evaluated for impairment $ 35,061 $ 15,827 $ 24,284 $ 5,378 $ - $ 80,550 Collectively evaluated for impairment 1,414,626 2,959,978 574,118 241,925 1,627 5,192,274 Acquired portfolio 68,402 802,190 19,345 71,177 226 961,340 Acquired with deteriorated credit quality 3,878 5,555 - 4,084 - 13,517 Total $ 1,521,967 $ 3,783,550 $ 617,747 $ 322,564 $ 1,853 $ 6,247,681 24 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) Activity in the Company’s ACL for loans for the three months ended March 31, 2021 is summarized in the table below. The CECL Day 1 row presents adjustments recorded through retained earnings to adopt the CECL standard and the increase to the ACL for loans associated with nonaccretable purchase accounting marks on loans that were classified as PCI as of December 31, 2020. Three Months Ended March 31, 2021 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance as of December 31, 2020 $ 28,443 $ 39,330 $ 8,194 $ 2,687 $ 4 $ 568 $ 79,226 Day 1 effect of CECL (4,225 ) 9,605 (961 ) 2,697 9 (568 ) 6,557 Balance as of January 1, 2021 as adjusted for changes in accounting principle 24,218 48,935 7,233 5,384 13 - 85,783 Charge-offs - - - - - - - Recoveries 60 - - - 1 - 61 (Reversal of) provision for credit losses (loans) 2,157 (5,038 ) (1,712 ) (680 ) (3 ) - (5,276 ) Balance as of March 31, 2021 $ 26,435 $ 43,897 $ 5,521 $ 4,704 $ 11 $ - $ 80,568 On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the ACL. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our ACL for loans of $6.6 million, which did not impact our consolidated income statement. We recorded a reversal of credit losses for loans of $5.3 million during the three months ended March 31, 2021 utilizing the CECL methodology, which was the result of an improved macroeconomic environment from January 1, 2021, the day of adoption. Three Months Ended March 31, 2020 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance as of December 31, 2019 $ 8,349 $ 20,853 $ 7,304 $ 1,685 $ 3 $ 99 $ 38,293 Charge-offs (124 ) - - - (3 ) - (127 ) Recoveries - - - 3 - - 3 (Reversal of) provision for credit losses (loans) 833 1,183 515 (7 ) 3 13,473 16,000 Balance as of March 31, 2020 $ 9,058 $ 22,036 $ 7,819 $ 1,681 $ 3 $ 13,572 $ 54,169 25 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) Troubled Debt Restructurings Loans are considered to have been modified in a troubled debt restructuring (“TDRs”) when, except as discussed below, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a troubled debt restructuring remains on nonaccrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status. As of March 31, 2021, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in troubled debt restructurings. As of March 31, 2021, TDRs totaled $53.0 million, of which $27.5 million were on nonaccrual status and $25.5 million were performing under their restructured terms. As of December 31, 2020, TDRs totaled $49.4 million, of which $25.7 million were on nonaccrual status and $23.7 million were performing under their restructured terms. The Company has allocated $10.0 million and $47 thousand of specific allowance related to TDRs for the three months ended March 31, 2021 and March 31, 2020, respectively. The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2021: Pre-Modification Outstanding Post-Modification Outstanding Number of Loans Recorded Investment Recorded Investment Troubled debt restructurings: (dollars in thousands) Commercial real estate 1 $ 1,658 $ 1,658 Residential real estate 2 1,996 1,996 Total 3 $ 3,654 $ 3,654 The two residential real estate loans modified as TDRs during the three months ended March 31, 2021 were maturity extensions, while the one commercial real estate loan was a recast of a nonaccrual credit. There were no loans modified as TDRs during the three months ended March 31, 2020. There were no TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2021 and March 31, 2020. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., three to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans would not be considered TDR’s if they were performing at year-end 2019, and the other conditions set forth in the interagency statement were met. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented or at year-end 2019. As of March 31, 2021, the Bank had 102 deferred loans totaling approximately $204.2 million, compared to 113 deferred loans totaling approximately $207.1 million as of December 31, 2020. 26 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) The following table sets forth the composition of these loans by loan segments as of March 31, 2021: Unpaid Number of Loans Principal Balance (dollars in thousands) Commercial 32 $ 103,653 Commercial real estate 68 $ 97,400 Commercial construction 2 3,150 Total 102 $ 204,203 As of March 31, 2021, there were no deferred loans that were delinquent or on nonaccrual status. As of March 31, 2021, $44.1 million of deferred loans were risk rated “special mention” or worse. The Company evaluates its deferred loans after the initial deferral period and will either return the deferred loan to its original loan terms or the loan will be reassessed at that time to determine if a further deferment should be granted and if a downgrade in risk rating is appropriate. ACL for Unfunded Commitments The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the ACL for unfunded commitments for the three months ended March 31, 2021 (dollars in thousands): Three Months Ended March 31, 2021 Balance at beginning of period $ - Day 1 Effect of CECL 2,833 (Reversal of) provision for credit losses (unfunded commitments) (490) Balance at end of period $ 2,343 Components of (Reversal of) Provision for Credit Losses The following table summarizes the (Reversal of) provision for credit losses as March 31, 2021 (dollars in thousands): March 31, 2021 (Reversal of) provision for credit losses (loans) $ (5,276) (Reversal of) provision for credit losses (unfunded commitments) (490) (Reversal of) provision for credit losses $ (5,766) |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments | Note 6. Fair Value Measurements and Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Level 1: Level 2: Level 3: An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020: 27 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) Securities Available-for-Sale and Equity Securities Derivatives For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities Available-for-sale Federal agency obligations $ 41,301 $ - $ 41,301 $ - Residential mortgage pass-through securities 240,354 - 240,354 - Commercial mortgage pass-through securities 6,414 - 6,414 - Obligations of U.S. states and political subdivision 130,503 - 121,729 8,774 Corporate bonds and notes 17,665 - 17,665 - Asset-backed securities 3,359 - 3,359 - Certificates of deposit 150 - 150 - Other securities 2,277 2,277 - - Total available-for-sale 442,023 2,277 430,972 8,774 Equity securities 13,200 13,200 - - Total assets $ 455,223 $ 15,477 $ 430,972 $ 8,774 Liabilities Derivatives $ (1,464 ) $ - $ (1,464 ) $ - Total liabilities $ (1,464 ) $ - $ (1,464 ) $ - 28 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) December 31, 2020 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities Available-for-sale Federal agency obligations $ 38,458 $ - $ 38,458 $ - Residential mortgage pass-through securities 270,884 - 270,884 - Commercial mortgage pass-through securities 6,922 - 6,922 - Obligations of U.S. states and political subdivision 142,808 - 133,964 8,844 Corporate bonds and notes 25,095 - 25,095 - Asset-backed securities 3,480 - 3,480 - Certificates of deposit 151 - 151 - Other securities 157 157 - - Total available-for-sale $ 487,955 $ 157 $ 478,954 $ 8,844 Equity securities 13,387 13,387 - - Total assets $ 501,342 $ 13,544 $ 478,954 $ 8,844 Liabilities Derivatives $ (2,119) $ - $ (2,119) $ - Total liabilities $ (2,119) $ - $ (2,119) $ - There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2021 and during the year ended December 31, 2020. Assets Measured at Fair Value on a Nonrecurring Basis The Company may be required periodically to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis as of March 31, 2021 and December 31, 2020. Loans Held-for-Sale Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Fair value of these loans is determined based on the terms of the loan, such as interest rate, maturity date, reset term, as well as sales of similar assets (Level 3). 29 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) Collateral Dependent Loans For assets measured at fair value on a nonrecurring basis, the fair value measurements as of March 31, 2021 and December 31, 2020 are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Carrying Markets for Other Significant Value as of Identical Observable Unobservable Assets measured at fair value on a nonrecurring March 31, Assets Inputs Inputs basis: 2021 (Level 1) (Level 2) (Level 3) Collateral dependent loans (dollars in thousands) Commercial $ 12,890 $ - $ - $ 12,890 Commercial real estate 2,283 - - 2,283 Commercial construction 2,500 - - 2,500 Residential real estate 2,089 - - 2,089 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets measured at fair value on a nonrecurring December 31, Assets Inputs Inputs basis: 2020 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial $ 10,751 $ - $ - $ 10,751 Commercial real estate 1,393 - - 1,393 Collateral dependent loans – 30 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) Assets Measured with Significant Unobservable Level 3 Inputs Recurring basis The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2021 and for the year ended December 31, 2020: Municipal Securities (dollars in thousands) Beginning balance, December 31, 2020 $ 8,844 Principal paydowns (70 ) Ending balance, March 31, 2021 $ 8,774 Municipal Securities (dollars in thousands) Beginning balance, December 31, 2019 $ 9,114 Principal paydowns (270) Ending balance, December 31, 2020 $ 8,844 The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. March 31, 2021 Valuation Unobservable Fair Value Techniques Input Rate Securities available-for-sale: (dollars in thousands) Municipal securities $ 8,774 Discounted cash flows Discount rate 2.9 % December 31, 2020 Valuation Unobservable Fair Value Techniques Input Rate Securities available-for-sale: (dollars in thousands) Municipal securities $ 8,844 Discounted cash flows Discount rate 2.9 % 31 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) Nonrecurring basis : March 31, 2021 Valuation Unobservable (dollars in thousands) Fair Value Techniques Input Range (weighted average) Collateral dependent Commercial $ 722 Appraisals of collateral value Comparable sales 0% - 5% (2%) Commercial $ 12,168 Market approach (100) Average transfer price as a price to unpaid principal balance 48 – 53 (49) Commercial real estate $ 2,283 Appraisals of collateral value Comparable sales 0% - 25% (8%) Construction $ 2,500 Appraisals of collateral value Comparable sales 15% Residential $ 2,089 Appraisals of collateral value Comparable sales 1% - 15% (6%) December 31, 2020 Valuation Unobservable (dollars in thousands) Fair Value Techniques Input Range (weighted average) Impaired loans Commercial $ 10,524 Market approach (100%) Average transfer price as a price to unpaid principal balance 48 - 53 (49) Commercial $ 227 Appraisals of collateral value Adjustment for comparable sales 1% to + 5% (+2%) Commercial real estate $ 1,393 Appraisals of collateral value Adjustment for comparable sales -25% to +20% (-8%) 32 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) As of March 31, 2021 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement Fair Value Measurements Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) (dollars in thousands) March 31, 2021 Financial assets: Cash and due from banks $ 260,092 $ 260,092 $ 260,092 $ - $ - Securities available-for-sale 442,023 442,023 2,277 442,023 8,774 Investment in restricted stocks 22,483 n/a n/a n/a n/a Equity securities 13,200 13,200 13,200 - - Net loans 6,196,623 6,267,519 - - 6,267,519 Accrued interest receivable 35,249 35,249 - 1,598 33,651 Financial liabilities: Noninterest-bearing deposits 1,384,961 1,384,961 1,384,961 - - Interest-bearing deposits 4,566,373 4,573,673 3,209,774 1,363,899 - Borrowings 359,710 362,497 - 362,497 - Subordinated debentures 152,724 163,868 - 163,868 - Derivatives 1,464 1,464 - 1,464 - Accrued interest payable 3,598 3,598 - 3,598 - December 31, 2020 Financial assets: Cash and due from banks $ 303,756 $ 303,756 $ 303,756 $ - $ - Investment securities available-for-sale 487,955 487,955 157 478,954 8,844 Restricted investment in bank stocks 25,099 n/a n/a n/a n/a Equity securities 13,387 13,387 13,387 - - Net loans 6,157,081 6,244,037 - - 6,244,037 Accrued interest receivable 35,317 35,317 - 1,764 33,553 Financial liabilities: Noninterest-bearing deposits 1,339,108 1,339,108 1,339,108 - - Interest-bearing deposits 4,620,116 4,633,961 3,155,983 1,477,978 - Borrowings 425,954 429,671 - 429,671 - Subordinated debentures 202,648 214,113 - 214,113 - Derivatives 2,119 2,119 - 2,119 - Accrued interest payable 3,687 3,687 - 3,687 - 33 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | Note 7. Comprehensive Income Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s other comprehensive income is comprised of unrealized holding gains and losses on securities available-for-sale, unrealized gains (losses) on cash flow hedges, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, each net of taxes. The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Details about Accumulated Other Amounts Reclassified from Accumulated Affected Line item in the Comprehensive Loss Components Other Comprehensive Income (Loss) Statement Where Net Income is Presented Three Months Ended March 31, 2021 2020 (dollars in thousands) Sale of investment securities $ - $ 29 Net losses on sale of securities available-for- available for sale - (6 ) sale Income tax benefit - 23 Net interest income on swaps $ (631 ) $ 7 Borrowings 177 (2 ) Income tax expense (454 ) 5 Amortization of pension plan net (75 ) (75 ) Other components of net periodic pension actuarial losses 20 21 expense Income tax benefit (55 ) (54 ) Total reclassification $ (509 ) $ (26 ) 34 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Comprehensive Income – (continued) Accumulated other comprehensive (loss) income as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, December 31, 2021 2020 (dollars in thousands) Investment securities available-for-sale, net of tax $ 3,851 $ 7,859 Cash flow hedge, net of tax (1,053 ) (1,520 ) Defined benefit pension and post-retirement plans, net of tax (3,487 ) (3,542 ) Total $ (689 ) $ 2,797 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 8. Stock Based Compensation The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of March 31, 2021. The maximum number of shares of common stock or equivalents which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of March 31, 2021 are approximately 353,841. The Company intends to issue all shares under the Plan in the form of newly issued shares. Restricted stock, options and restricted stock units typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options, performance units and restricted stock units do not. All awards are issued at the fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are recorded as incurred. Stock-based compensation expense for the three months ended March 31, 2021 and March 31, 2020 was $ 1.0 0.5 Activity under the Company’s options for the three months ended March 31, 2021 was as follows: Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of December 31, 2020 38,013 $ 9.03 Granted - - Exercised (5,449 ) 8.34 Forfeited/cancelled/expired - - Outstanding as of March 31, 2021 32,564 9.15 1.21 $ 527,672 Exercisable as of March 31, 2021 32,564 $ 9.15 1.21 $ 527,672 The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on March 31, 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2021. This amount changes based on the fair market value of the Company’s stock. 35 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 8. Stock Based Compensation – (continued) Activity under the Company’s restricted shares for the three months ended March 31, 2021 was as follows: Weighted- Average Nonvested Grant Date Shares Fair Value Nonvested as of December 31, 2020 113,114 $ 18.15 Granted 27,147 23.23 Vested (15,157 ) 24.36 Forfeited/cancelled/expired (378 ) 23.23 Nonvested March 31, 2021 124,726 $ 18.49 As of March 31, 2021, there was approximately $1.5 million of total unrecognized compensation cost related to nonvested restricted shares granted. The cost is expected to be recognized over a weighted average period of 1.5 years. A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Weighted Average Grant Units Units Date Fair (expected) (maximum) Value Unearned as of December 31, 2020 147,636 $ 17.29 Awarded 35,593 25.24 Change in estimate 17,818 20.79 Vested shares (29,421 ) 31.35 Unearned as of March 31, 2021 171,626 230,712 $ 16.89 As of March 31, 2021, the specific number of shares related to performance units that were expected to vest was 171,626, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. As of March 31, 2021, the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 230,713. During the three months ended March 31, 2021, 29,421 shares vested. A total of 14,711 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of performance units during the three months ended March 31, 2021 were 14,711 shares. As of March 31, 2021, compensation cost of approximately $2.0 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.9 years. A summary of the status of unearned restricted stock units and the changes in restricted stock units during the period is presented in the table below: Weighted Average Grant Units Date Fair (expected) Value Unearned as of December 31, 2020 169,313 $ 14.07 Awarded 43,077 25.24 Vested shares (68,916 ) 16.29 Unearned as of March 31, 2021 143,474 $ 16.36 Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient. During the three months ended March 31, 2021, 68,916 shares vested. A total of 34,458 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of restricted stock units during the three months ended March 31, 2021 were 34,458 shares. As of March 31, 2021, compensation cost of approximately $2.3 million related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 2.3 years. |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | Note 9. Components of Net Periodic Pension Cost The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated. Three Months Ended Affected Line Item in the Consolidated March 31, Statements of Income 2021 2020 (dollars in thousands) Service cost $ - $ - Interest cost 71 91 Other components of net periodic pension expense Expected return on plan assets (213 ) (196 ) Other components of net periodic pension expense Net amortization 75 75 Other components of net periodic pension expense Total periodic pension income $ (67 ) $ (30 ) Contributions The Company did not make a contribution to the Pension Trust during the three months ended March 31, 2021. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2021. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust. |
FHLB Borrowings
FHLB Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | |
FHLB Borrowings | Note 10. FHLB Borrowings The Company’s FHLB borrowings and weighted average interest rates are summarized below: March 31, 2021 December 31, 2020 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 359,710 1.11 % $ 425,954 1.07 % By remaining period to maturity: Less than 1 year $ 297,381 0.93 % $ 297,570 0.84 % 1 year through less than 2 years 34,621 1.24 % 75,644 1.42 % 2 years through less than 3 years 25,000 2.92 % 50,000 1.84 % 3 years through less than 4 years - - - - 4 years through 5 years - - - - After 5 years 2,809 2.41 % 2,824 2.42 % Total FHLB borrowings 359,811 1.11 % 426,038 1.07 % Fair value premium (discount) (101 ) (84 ) FHLB borrowings, net $ 359,710 $ 425,954 The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans. Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rates. The advances as of March 31, 2021 were primarily collateralized by approximately $1.9 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. As of March 31, 2021 the Company had remaining borrowing capacity of approximately $1.1 billion at FHLB. |
Subordinated Debentures
Subordinated Debentures | 3 Months Ended |
Mar. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | Note 11. Subordinated Debentures During December 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or part. The floating interest rate on the subordinated debentures is three-month LIBOR plus 2.85% and re-prices quarterly. The rate as of March 31, 2021 was 3.06%. The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of March 31, 2021 and December 31, 2020. Issuance Date Securities Issued Liquidation Value Coupon Rate Maturity Redeemable by Issuer Beginning 12/19/2003 $ 5,000,000 $1,000 per Capital Security Floating 3-month LIBOR + 285 Basis Points 01/23/2034 01/23/2009 During June 2020, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2020 Notes”). The 2020 Notes bear interest at 5.75% annually from, and including, the date of initial issuance to, but excluding, June 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on June 15 and December 15 of each year, commencing December 15, 2020. From and including June 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2025. Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero. During January 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”) to certain accredited investors. The net proceeds from the sale of the Notes were used in the first quarter of 2018 for general corporate purposes, which included the Parent Corporation contributing $65 million of the net proceeds to the Bank in the form of debt and common equity. The Notes are non-callable for five years, have a stated maturity of February 1, 2028 and bear interest at a fixed rate of 5.20% per year, from and including January 17, 2018 to, but excluding February 1, 2023. From and including February 1, 2023 to, but excluding the maturity date, or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 284 basis points. During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2015 Notes”). As of December 31, 2020, the 2015 Notes have a stated maturity of July 1, 2025, and bear interest until the maturity date or early redemption date at a variable rate equal to the then current three-month LIBOR rate plus 393 basis points. As of December 31, 2020, the variable interest rate was 4.16% and all costs related to 2015 issuance have been amortized. The 2015 Notes were redeemed in full on January 1, 2021. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Note 12. Offsetting Assets and Liabilities Certain financial instrument-related assets and liabilities may, under GAAP, be offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements, although the Company has elected to disclose such arrangements on a gross basis on its consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 4 within this section. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions. The following table presents information about financial instruments that are eligible for offset as of March 31, 2021 and December 31, 2020: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Recognized Cash or Financial Instrument Collateral Net Amount (dollars in thousands) March 31, 2021 Assets: Interest rate swaps $ - $ - $ - $ - $ - $ - Liabilities: Interest rate swaps $ (1,464 ) $ - $ (1,464 ) $ - $ (1,464 ) $ - December 31, 2020 Assets: Interest rate swaps $ - $ - $ - $ - $ - $ - Liabilities: Interest rate swaps $ (2,119 ) $ - $ (2,119 ) $ - $ (2,119 ) $ - |
Nature of Operations, Princip_2
Nature of Operations, Principles of Consolidation and Risk and Uncertainties (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company. The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a New Jersey investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey online business lending marketplace). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-five other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages. The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021, or for any other interim period. The Company’s 2020 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements. |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. |
Use of Estimates | Use of Estimates In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. |
Risks and Uncertainties | Risks and Uncertainties As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. Although state and local governments have lifted many restrictions on conducting business, it is possible that additional restrictions could be reimposed. It is therefore unknown how long COVID-19 may continue to impact the economy and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for loan losses, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes. |
Adoption of New Accounting Standards in 2020 and 2021 | Note 1b. Authoritative Accounting Guidance Adoption of New Accounting Standards in 2021 Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity (“HTM”). It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as ("AFS"), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell. The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchase credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchase credit impaired loans as of December 31, 2020 were considered purchase credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousand): Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL Allowance for credit losses (“ACL”) (loans) $ 1,350 $ 406 $ 1,304 Adjustment related to purchased credit-impaired loan marks (1) 5,207 - - Total ACL - loans 6,557 406 1,304 ACL – (unfunded credit commitments) 2,833 852 1,621 Total impact of CECL adoption $ 9,390 $ 1,258 $ 2,925 (1) This amounts represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021. Loans designated as purchased credit impaired loans (“PCI”) and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as purchased with credit deterioration loans (“PCD”). In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the ACL for loans of $5.2 million, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021 over the remaining estimated life of the loans. Also, in accordance with the CECL Standard, the Company did not reassess whether modifications to individual acquired financial assets were troubled debt restructurings (“TDRs”) as of the date of adoption. ACL for loans 10 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1b. Authoritative Accounting Guidance – (continued) The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company currently utilizes a one-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of the loan. The measurement of expected credit loss under the CECL methodology is applicable to financial assets measured at amortized cost, including loans, held to maturity investments and it also applies to certain off-balance sheet credit exposures. The ACL for loans is measured on a collective (pool) basis when similar risk characteristics exist. Generally, for all other loan types, the estimated expected credit loss is also calculated at the loan level and pool assignments are only utilized for aggregating the allowance estimates of similar loan types for financial statement disclosure purposes. Loan segments have unique risk characteristics with respect to credit quality and are as follows: ● The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring is not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability. ● Payment on commercial mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general. ● Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain. ● The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions. ● The Company considers loan classes and loan segments to be one and the same. Individually Analyzed Loans For collateral dependent loans, when it is determined that a foreclosure is probable, the ACL will be determined on a loan level basis using the fair value of the collateral as of the reporting date, less estimated disposition costs (“net fair value”), which will ensure that the credit loss is not delayed until the time at which the actual foreclosure takes place. In the event that this fair value is less the then amortized cost basis of these specific loans, we will recognize the difference between the net fair value at the reporting date and the amortized cost basis in the ACL. If the fair value of the collateral has increased as of the ACL evaluation date, the increase in the fair value of the collateral is reflected through a reduction in the ACL. ACL adjustments for estimated disposition costs are not appropriate when the repayment of a collateral-dependent loan is expected from the operation of the collateral. If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as the allowance for credit losses. The effective interest rate used to discount expected cash flows is adjusted to incorporate expected prepayments, if applicable. For charge-off and recoveries we will generally charge-off a loan balance after an analysis is completed which indicates that the collectability of the full principal is in doubt. Charge-offs are charged against the allowance in the period in which the loans are deemed to be uncollectible. Any expected future recoveries of amounts which were previously charged-off or expected to be charged-off will be included in the ACL, as the recoveries represent a component of the net amount expected to be collected. Expected recoveries in the ACL shall not exceed amounts previously charged-off or expected to be charged-off. Investment Securities 11 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1b. Authoritative Accounting Guidance – (continued) ACL - on investment securities classified as available-for-sale Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when we believe the uncollectibility of an available-for-sale security has been confirmed or if either of the criteria regarding intent or requirement to sell is met. ASU No. 2021-03, “Intangibles – Goodwill and Other (Topic 350).” ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. |
Authoritative Accounting Guid_2
Authoritative Accounting Guidance (Table) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Schedule of Adoption of CECL Standard Resulted Adjustment in Financial Statements | The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchase credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchase credit impaired loans as of December 31, 2020 were considered purchase credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousand): Change in Consolidated Change to Retained Earnings Statement of Condition Tax Effect from Adoption of CECL Allowance for credit losses (“ACL”) (loans) $ 1,350 $ 406 $ 1,304 Adjustment related to purchased credit-impaired loan marks (1) 5,207 - - Total ACL - loans 6,557 406 1,304 ACL – (unfunded credit commitments) 2,833 852 1,621 Total impact of CECL adoption $ 9,390 $ 1,258 $ 2,925 (1) This amounts represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per common share | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per common share have been computed based on the following: Three Months Ended March 31, (dollars in thousands, except for per share data) 2021 2020 Net income $ 32,999 $ 6,030 Earnings allocated to participating securities (186 ) (27 ) Income attributable to common stock $ 32,813 $ 6,003 Weighted average common shares outstanding, including participating securities 39,738 39,559 Weighted average participating securities (181 ) (135 ) Weighted average common shares outstanding 39,557 39,424 Incremental shares from assumed conversions of options, performance units and restricted shares 232 92 Weighted average common and equivalent shares outstanding 39,789 39,516 Earnings per common share: Basic $ 0.83 $ 0.15 Diluted 0.82 0.15 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The following tables present information related to the Company’s portfolio of securities available-for-sale as of March 31, 2021 and December 31, 2020. Allowance for Gross Gross Investment Amortized Unrealized Unrealized Fair Credit Cost Gains Losses Value Losses March 31, 2021 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 40,507 $ 1,141 $ (347 ) $ 41,301 - Residential mortgage pass-through securities 238,406 3,628 (1,680 ) 240,354 - Commercial mortgage pass-through securities 6,881 35 (502 ) 6,414 - Obligations of U.S. states and political subdivisions 127,809 2,925 (231 ) 130,503 - Corporate bonds and notes 17,444 221 - 17,665 - Asset-backed securities 3,361 8 (10 ) 3,359 - Certificates of deposit 149 1 - 150 - Other securities 2,277 - - 2,277 - Total securities available-for-sale $ 436,834 $ 7,959 $ (2,770 ) $ 442,023 $ - December 31, 2020 Securities available-for-sale Federal agency obligations $ 37,015 $ 1,508 $ (65 ) $ 38,458 N/A Residential mortgage pass-through securities 266,114 4,811 (41 ) 270,884 N/A Commercial mortgage pass-through securities 6,906 203 (187 ) 6,922 N/A Obligations of U.S. states and political subdivisions 138,539 4,269 - 142,808 N/A Corporate bonds and notes 24,925 222 (52 ) 25,095 N/A Asset-backed securities 3,521 - (41 ) 3,480 N/A Certificates of deposit 149 2 - 151 N/A Other securities 157 - - 157 N/A Total securities available-for-sale $ 477,326 $ 11,015 $ (386 ) $ 487,955 N/A |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table presents information for investments in securities available-for-sale as of March 31, 2021, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately. March 31, 2021 Amortized Fair Cost Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 5,898 $ 5,929 Due after one year through five years 16,369 16,625 Due after five years through ten years 14,172 14,527 Due after ten years 152,831 155,897 Residential mortgage pass-through securities 238,406 240,354 Commercial mortgage pass-through securities 6,881 6,414 Other securities 2,277 2,277 Total securities available-for-sale $ 436,834 $ 442,023 |
Schedule of Realized Gain (Loss) [Table Text Block] | We had no gross gains or losses from the sale of securities for three months ended March 31, 2021. Gross gains and losses for three months ended March 31, 2020 from the sales of securities for periods presented were as follows (dollars in thousands): Three Months Ended March 31, 2021 2020 Proceeds $ - $ 19,624 Gross gains on sales of securities - 29 Gross losses on sales of securities - - Net gains on sales of securities - 29 Less: tax provision on net gains - (6 ) Net gains on sales of securities, after tax $ - $ 23 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Impairment Analysis of Available--for-sale Debt Securities The following tables indicate gross unrealized losses in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of March 31, 2021 and December 31, 2020. March 31, 2021 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 15,923 $ (347 ) $ 15,922 $ (347 ) $ 1 $ - Residential mortgage pass-through securities 125,231 (1,680 ) 125,223 (1,680 ) 8 - Commercial mortgage pass-through securities 4,375 (502 ) 4,375 (502 ) - - Obligations of U.S. states and political subdivisions 29,179 (231 ) 29,179 (231 ) - - Corporate bonds and notes 1,000 - 1,000 - - - Asset-backed securities 900 (10 ) - - 900 (10 ) Total temporarily impaired securities $ 176,608 $ (2,770 ) $ 175,699 $ (2,760 ) $ 909 $ (10 ) December 31, 2020 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 8,978 $ (65 ) $ 8,975 $ (65 ) $ 3 $ - Residential mortgage pass-through securities 20,895 (41 ) 20,886 (41 ) 9 - Commercial mortgage pass-through securities 3,954 (187 ) 3,954 (187 ) - - Corporate bonds and notes 3,928 (52 ) 3,928 (52 ) - - Asset-backed securities 3,083 (41 ) 622 - 2,461 (41 ) Total Temporarily Impaired Securities $ 40,838 $ (386 ) $ 38,365 $ (345 ) $ 2,473 $ (41 ) |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives [Table Text Block] | Summary information about the interest rate swaps designated as cash flow hedges as of March 31, 2021, December 31, 2020 and March 31, 2020 are presented in the following table. March 31, December 31, March 31, 2021 2020 2020 (dollars in thousands) Notional amount $ 175,000 $ 175,000 $ 200,000 Weighted average pay rates 0.22 % 1.85 % 1.74 % Weighted average receive rates 1.68 % 0.92 % 1.76 % Weighted average maturity 0.6 years 0.8 years 1.4 years Fair value $ (1,464 ) $ (2,119 ) $ (3,029 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods: Three Months Ended March 31, 2021 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 24 $ 631 $ - Three Months Ended March 31, 2020 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ (2,749 ) $ (7 ) $ - |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table reflects the cash flow hedges included in the consolidated statements of condition as of March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Notional Notional Amount Fair Value Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 175,000 $ (1,464 ) $ 175,000 $ (2,119 ) |
Loans and the Allowance for C_2
Loans and the Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans Receivable - March 31, December 31, 2021 2020 (dollars in thousands) Commercial (1) $ 1,622,652 $ 1,521,967 Commercial real estate 3,797,244 3,783,550 Commercial construction 565,872 617,747 Residential real estate 306,376 322,564 Consumer 3,364 1,853 Gross loans 6,295,508 6,247,681 Net deferred loan fees (18,317 ) (11,374 ) Total loans receivable $ 6,277,191 $ 6,236,307 (1) Included in commercial loans as of March 31, 2021 and December 31, 2020 are PPP loans of $522.3 million and $397.5 million, respectively. |
Loans held for sale [Table Text Block] | Loans held-for-sale - March 31, December 31, 2021 2020 (dollars in thousands) Commercial real estate $ 1,981 $ 1,990 Residential real estate 4,919 2,720 Total carrying amount $ 6,900 $ 4,710 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | Loans Receivable on Nonaccrual Status - Nonaccrual Loans with an ACL Nonaccrual loans without an ACL (dollars in thousands) Commercial $ 28,136 $ 2,969 Commercial real estate 3,225 12,876 Commercial construction 2,934 6,017 Residential real estate - 4,783 Consumer - - Total nonaccrual loans $ 34,295 $ 26,645 December 31, 2020 Commercial $ 33,019 Commercial real estate 10,111 Commercial construction 14,015 Residential real estate 4,551 Consumer - Total nonaccrual loans $ 61,696 |
Financing Receivable Origination and Risk Designation [Table Text Block] | We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of March 31, 2021, our loans based on year of origination and risk designation is as follows (dollars in thousands): Term loans amortized cost basis by origination year Resolving Loans Total Gross Loans 2021 2020 2019 2018 2017 Prior Commercial Pass $ 289,283 $ 393,432 $ 67,665 $ 70,763 $ 109,667 $ 131,509 $ 486,619 $ 1,548,938 Special mention - - 225 258 292 15,646 12,948 29,369 Substandard - - 1,795 13,307 4,122 21,638 3,274 44,136 Doubtful - - - 209 - - - 209 Total Commercial $ 289,283 $ 393,432 $ 69,685 $ 84,537 $ 114,081 $ 168,793 $ 502,841 $ 1,622,652 Commercial Real Estate Pass $ 241,516 $ 608,263 $ 477,620 $ 570,798 $ 592,738 $ 1,097,118 $ 120,252 $ 3,708,305 Special mention - - 1,379 10,892 4,393 23,511 8,790 48,965 Substandard 1,996 - 836 1,288 3,394 32,460 - 39,974 Doubtful - - - - - - - - Total Commercial Real Estate $ 243,512 $ 608,263 $ 479,835 $ 582,978 $ 600,525 $ 1,153,089 $ 129,042 $ 3,797,244 Commercial Construction Pass $ 1,405 $ 7,506 $ 39,832 $ 8,730 $ 3,981 $ 490 $ 478,478 $ 540,422 Special mention - - - - - - - - Substandard - - - - - 216 25,234 25,450 Doubtful - - - - - - - - Total Commercial Construction $ 1,405 $ 7,506 $ 39,832 $ 8,730 $ 3,981 $ 706 $ 503,712 $ 565,872 Residential Real Estate Pass $ 3,680 $ 35,193 $ 29,698 $ 34,362 $ 46,531 $ 93,376 $ 50,046 $ 292,886 Special mention - - - - - - - - Substandard - - - 207 - 9,543 3,740 13,490 Doubtful - - - - - - - - Total Residential Real Estate $ 3,680 $ 35,193 $ 29,698 $ 34,569 $ 46,531 $ 102,919 $ 53,786 $ 306,376 Consumer Pass $ 2 $ 117 $ 58 $ 42 $ 53 $ 2,961 $ 131 $ 3,364 Special mention - - - - - - - - Substandard - - - - - - - - Doubtful - - - - - - - - Total Consumer $ 2 $ 117 $ 58 $ 42 $ 53 $ 2,961 $ 131 $ 3,364 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020: December 31, 2020 Pass Special Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 1,447,097 $ 30,725 $ 43,930 $ 215 $ 1,521,967 Commercial real Estate 3,700,498 49,143 33,909 - 3,783,550 Commercial construction 587,266 - 30,481 - 617,747 Residential real Estate 311,174 - 11,390 - 322,564 Consumer 1,853 - - - 1,853 Gross loans $ 6,047,888 $ 79,868 $ 119,710 $ 215 $ 6,247,681 |
Schedule of Fair Value of Collateral [Table Text Block] | Collateral Dependent Loans March 31, 2021 Real Estate Other Total (dollars in thousands) Commercial $ 6,330 $ 26,171 $ 32,501 Commercial real estate 29,441 - 29,441 Commercial construction 19,402 - 19,402 Residential real estate 11,024 - 11,024 Consumer - - - Total (no related allowance) $ 66,197 $ 26,171 $ 92,368 |
Impaired Financing Receivables [Table Text Block] | The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020: December 31, 2020 Unpaid Recorded Principal Recorded Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 11,325 $ 11,835 Commercial real estate 13,105 13,449 Commercial construction 24,284 24,907 Residential real estate 5,378 5,723 Consumer - - Total (no related allowance) $ 54,092 $ 55,914 With an allowance recorded Commercial $ 23,736 $ 69,122 $ 12,985 Commercial real estate 2,722 2,722 1,329 Total (with allowance) $ 26,458 $ 71,844 $ 14,314 Total Commercial $ 35,061 $ 80,957 $ 12,985 Commercial real estate 15,827 16,171 1,329 Commercial construction 24,284 24,907 - Residential real estate 5,378 5,723 - Consumer - - - Total $ 80,550 $ 127,758 $ 14,314 22 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Loans and the Allowance for Credit Losses – (continued) The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by class as of and for the three months ended March 31, 2020 (dollars in thousands): March 31,2020 Average Interest Recorded Income Investment Recognized Impaired loans with no related allowance recorded Commercial $ 36,442 $ 94 Commercial real estate 15,238 84 Commercial construction 17,371 85 Residential real estate 3,827 - Consumer - - Total $ 72,878 $ 263 Impaired loans with an allowance recorded Commercial real estate $ - $ - Commercial construction 6,463 - Residential real estate 262 3 Total $ 6,725 $ 3 Total impaired loans Commercial $ 36,442 $ 94 Commercial real estate 15,238 84 Commercial construction 23,834 85 Residential real estate 4,089 3 Consumer - - Total $ 79,603 $ 266 |
Past Due Financing Receivables [Table Text Block] | Aging Analysis - March 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 1,293 $ - $ 4,475 $ 31,105 $ 36,873 $ 1,585,779 $ 1,622,652 Commercial real Estate 11,292 664 7,679 16,101 35,736 3,761,508 3,797,244 Commercial construction 4,400 - - 8,951 13,351 552,521 565,872 Residential real Estate 202 - 4,238 4,783 9,223 297,153 306,376 Consumer 4 - - - 4 3,360 3,364 Total $ 17,191 $ 664 $ 16,392 $ 60,940 $ 95,187 $ 6,200,321 $ 6,295,508 December 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Total Loans Receivable Commercial $ 1,445 $ 558 $ 3,182 $ 33,019 $ 38,204 $ 1,483,763 $ 1,521,967 Commercial real estate 13,258 4,140 5,555 10,111 33,064 3,750,486 3,783,550 Commercial construction 2,472 - - 14,015 16,487 601,260 617,747 Residential real estate 1,367 241 4,084 4,551 10,243 312,321 322,564 Consumer 2 - - - 2 1,851 1,853 Total $ 18,544 $ 4,939 $ 12,821 $ 61,696 $ 98,000 $ 6,149,681 $ 6,247,681 |
Schedule of Recorded Investment in Financing Receivables [Table Text Block] | The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for credit losses that are allocated to each loan portfolio segment: March 31, 2021 Commercial Commercial Residential Commercial real estate construction real estate Consumer Total (dollars in thousands) ACL Individually evaluated for impairment $ 15,663 $ 1,634 $ 434 $ 283 $ - $ 18,014 Collectively evaluated for impairment 8,496 39,486 5,087 4,267 11 57,347 Acquired with deteriorated credit quality individually analyzed 2,276 2,777 - 154 - 5,207 Total $ 26,435 $ 43,897 $ 5,521 $ 4,704 $ 11 $ 80,568 Gross loans Individually evaluated for impairment $ 33,330 $ 21,762 $ 19,402 $ 6,786 $ - $ 81,280 Collectively evaluated for impairment 1,584,095 3,767,803 546,470 295,352 3,364 6,197,084 Acquired with deteriorated credit quality individually analyzed 5,227 7,679 - 4,238 - 17,144 Total $ 1,622,652 $ 3,797,244 $ 565,872 $ 306,376 $ 3,364 $ 6,295,508 December 31, 2020 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 12,985 $ 1,329 $ - $ - $ - $ - $ 14,314 Collectively evaluated for impairment 15,412 33,373 7,787 1,928 4 568 59,072 Acquired portfolio 46 4,628 407 759 - - 5,840 Acquired with deteriorated credit quality - - - - - - - Total $ 28,443 $ 39,330 $ 8,194 $ 2,687 $ 4 $ 568 $ 79,226 Gross loans Individually evaluated for impairment $ 35,061 $ 15,827 $ 24,284 $ 5,378 $ - $ 80,550 Collectively evaluated for impairment 1,414,626 2,959,978 574,118 241,925 1,627 5,192,274 Acquired portfolio 68,402 802,190 19,345 71,177 226 961,340 Acquired with deteriorated credit quality 3,878 5,555 - 4,084 - 13,517 Total $ 1,521,967 $ 3,783,550 $ 617,747 $ 322,564 $ 1,853 $ 6,247,681 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Three Months Ended March 31, 2021 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance as of December 31, 2020 $ 28,443 $ 39,330 $ 8,194 $ 2,687 $ 4 $ 568 $ 79,226 Day 1 effect of CECL (4,225 ) 9,605 (961 ) 2,697 9 (568 ) 6,557 Balance as of January 1, 2021 as adjusted for changes in accounting principle 24,218 48,935 7,233 5,384 13 - 85,783 Charge-offs - - - - - - - Recoveries 60 - - - 1 - 61 (Reversal of) provision for credit losses (loans) 2,157 (5,038 ) (1,712 ) (680 ) (3 ) - (5,276 ) Balance as of March 31, 2021 $ 26,435 $ 43,897 $ 5,521 $ 4,704 $ 11 $ - $ 80,568 On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the ACL. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our ACL for loans of $6.6 million, which did not impact our consolidated income statement. We recorded a reversal of credit losses for loans of $5.3 million during the three months ended March 31, 2021 utilizing the CECL methodology, which was the result of an improved macroeconomic environment from January 1, 2021, the day of adoption. Three Months Ended March 31, 2020 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance as of December 31, 2019 $ 8,349 $ 20,853 $ 7,304 $ 1,685 $ 3 $ 99 $ 38,293 Charge-offs (124 ) - - - (3 ) - (127 ) Recoveries - - - 3 - - 3 (Reversal of) provision for credit losses (loans) 833 1,183 515 (7 ) 3 13,473 16,000 Balance as of March 31, 2020 $ 9,058 $ 22,036 $ 7,819 $ 1,681 $ 3 $ 13,572 $ 54,169 |
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block] | The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2021: Pre-Modification Outstanding Post-Modification Outstanding Number of Loans Recorded Investment Recorded Investment Troubled debt restructurings: (dollars in thousands) Commercial real estate 1 $ 1,658 $ 1,658 Residential real estate 2 1,996 1,996 Total 3 $ 3,654 $ 3,654 |
Schedule of Composition of Loans by Loan Segments | The following table sets forth the composition of these loans by loan segments as of March 31, 2021: Unpaid Number of Loans Principal Balance (dollars in thousands) Commercial 32 $ 103,653 Commercial real estate 68 $ 97,400 Commercial construction 2 3,150 Total 102 $ 204,203 |
Schedule of ACL for off-balance sheet credit exposure | The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the ACL for unfunded commitments for the three months ended March 31, 2021 (dollars in thousands): Three Months Ended March 31, 2021 Balance at beginning of period $ - Day 1 Effect of CECL 2,833 (Reversal of) provision for credit losses (unfunded commitments) (490) Balance at end of period $ 2,343 |
Schedule of (Reversal of) provision for credit losses | The following table summarizes the (Reversal of) provision for credit losses as March 31, 2021 (dollars in thousands): March 31, 2021 (Reversal of) provision for credit losses (loans) $ (5,276) (Reversal of) provision for credit losses (unfunded commitments) (490) (Reversal of) provision for credit losses $ (5,766) |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities Available-for-sale Federal agency obligations $ 41,301 $ - $ 41,301 $ - Residential mortgage pass-through securities 240,354 - 240,354 - Commercial mortgage pass-through securities 6,414 - 6,414 - Obligations of U.S. states and political subdivision 130,503 - 121,729 8,774 Corporate bonds and notes 17,665 - 17,665 - Asset-backed securities 3,359 - 3,359 - Certificates of deposit 150 - 150 - Other securities 2,277 2,277 - - Total available-for-sale 442,023 2,277 430,972 8,774 Equity securities 13,200 13,200 - - Total assets $ 455,223 $ 15,477 $ 430,972 $ 8,774 Liabilities Derivatives $ (1,464 ) $ - $ (1,464 ) $ - Total liabilities $ (1,464 ) $ - $ (1,464 ) $ - 28 Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued) December 31, 2020 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities Available-for-sale Federal agency obligations $ 38,458 $ - $ 38,458 $ - Residential mortgage pass-through securities 270,884 - 270,884 - Commercial mortgage pass-through securities 6,922 - 6,922 - Obligations of U.S. states and political subdivision 142,808 - 133,964 8,844 Corporate bonds and notes 25,095 - 25,095 - Asset-backed securities 3,480 - 3,480 - Certificates of deposit 151 - 151 - Other securities 157 157 - - Total available-for-sale $ 487,955 $ 157 $ 478,954 $ 8,844 Equity securities 13,387 13,387 - - Total assets $ 501,342 $ 13,544 $ 478,954 $ 8,844 Liabilities Derivatives $ (2,119) $ - $ (2,119) $ - Total liabilities $ (2,119) $ - $ (2,119) $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | For assets measured at fair value on a nonrecurring basis, the fair value measurements as of March 31, 2021 and December 31, 2020 are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Carrying Markets for Other Significant Value as of Identical Observable Unobservable Assets measured at fair value on a nonrecurring March 31, Assets Inputs Inputs basis: 2021 (Level 1) (Level 2) (Level 3) Collateral dependent loans (dollars in thousands) Commercial $ 12,890 $ - $ - $ 12,890 Commercial real estate 2,283 - - 2,283 Commercial construction 2,500 - - 2,500 Residential real estate 2,089 - - 2,089 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets measured at fair value on a nonrecurring December 31, Assets Inputs Inputs basis: 2020 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial $ 10,751 $ - $ - $ 10,751 Commercial real estate 1,393 - - 1,393 |
Fair Value, Recurring basis [Table Text Block] | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2021 and for the year ended December 31, 2020: Municipal Securities (dollars in thousands) Beginning balance, December 31, 2020 $ 8,844 Principal paydowns (70 ) Ending balance, March 31, 2021 $ 8,774 Municipal Securities (dollars in thousands) Beginning balance, December 31, 2019 $ 9,114 Principal paydowns (270) Ending balance, December 31, 2020 $ 8,844 |
Significant unobservable inputs used in fair value measurements [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. March 31, 2021 Valuation Unobservable Fair Value Techniques Input Rate Securities available-for-sale: (dollars in thousands) Municipal securities $ 8,774 Discounted cash flows Discount rate 2.9 % December 31, 2020 Valuation Unobservable Fair Value Techniques Input Rate Securities available-for-sale: (dollars in thousands) Municipal securities $ 8,844 Discounted cash flows Discount rate 2.9 % |
Fair Value Measurements, Nonrecurring [Table Text Block] | Nonrecurring basis : March 31, 2021 Valuation Unobservable (dollars in thousands) Fair Value Techniques Input Range (weighted average) Collateral dependent Commercial $ 722 Appraisals of collateral value Comparable sales 0% - 5% (2%) Commercial $ 12,168 Market approach (100) Average transfer price as a price to unpaid principal balance 48 – 53 (49) Commercial real estate $ 2,283 Appraisals of collateral value Comparable sales 0% - 25% (8%) Construction $ 2,500 Appraisals of collateral value Comparable sales 15% Residential $ 2,089 Appraisals of collateral value Comparable sales 1% - 15% (6%) December 31, 2020 Valuation Unobservable (dollars in thousands) Fair Value Techniques Input Range (weighted average) Impaired loans Commercial $ 10,524 Market approach (100%) Average transfer price as a price to unpaid principal balance 48 - 53 (49) Commercial $ 227 Appraisals of collateral value Adjustment for comparable sales 1% to + 5% (+2%) Commercial real estate $ 1,393 Appraisals of collateral value Adjustment for comparable sales -25% to +20% (-8%) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of March 31, 2021 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement Fair Value Measurements Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) (dollars in thousands) March 31, 2021 Financial assets: Cash and due from banks $ 260,092 $ 260,092 $ 260,092 $ - $ - Securities available-for-sale 442,023 442,023 2,277 442,023 8,774 Investment in restricted stocks 22,483 n/a n/a n/a n/a Equity securities 13,200 13,200 13,200 - - Net loans 6,196,623 6,267,519 - - 6,267,519 Accrued interest receivable 35,249 35,249 - 1,598 33,651 Financial liabilities: Noninterest-bearing deposits 1,384,961 1,384,961 1,384,961 - - Interest-bearing deposits 4,566,373 4,573,673 3,209,774 1,363,899 - Borrowings 359,710 362,497 - 362,497 - Subordinated debentures 152,724 163,868 - 163,868 - Derivatives 1,464 1,464 - 1,464 - Accrued interest payable 3,598 3,598 - 3,598 - December 31, 2020 Financial assets: Cash and due from banks $ 303,756 $ 303,756 $ 303,756 $ - $ - Investment securities available-for-sale 487,955 487,955 157 478,954 8,844 Restricted investment in bank stocks 25,099 n/a n/a n/a n/a Equity securities 13,387 13,387 13,387 - - Net loans 6,157,081 6,244,037 - - 6,244,037 Accrued interest receivable 35,317 35,317 - 1,764 33,553 Financial liabilities: Noninterest-bearing deposits 1,339,108 1,339,108 1,339,108 - - Interest-bearing deposits 4,620,116 4,633,961 3,155,983 1,477,978 - Borrowings 425,954 429,671 - 429,671 - Subordinated debentures 202,648 214,113 - 214,113 - Derivatives 2,119 2,119 - 2,119 - Accrued interest payable 3,687 3,687 - 3,687 - |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Details about Accumulated Other Amounts Reclassified from Accumulated Affected Line item in the Comprehensive Loss Components Other Comprehensive Income (Loss) Statement Where Net Income is Presented Three Months Ended March 31, 2021 2020 (dollars in thousands) Sale of investment securities $ - $ 29 Net losses on sale of securities available-for- available for sale - (6 ) sale Income tax benefit - 23 Net interest income on swaps $ (631 ) $ 7 Borrowings 177 (2 ) Income tax expense (454 ) 5 Amortization of pension plan net (75 ) (75 ) Other components of net periodic pension actuarial losses 20 21 expense Income tax benefit (55 ) (54 ) Total reclassification $ (509 ) $ (26 ) |
Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive (loss) income as of March 31, 2021 and December 31, 2020 consisted of the following: March 31, December 31, 2021 2020 (dollars in thousands) Investment securities available-for-sale, net of tax $ 3,851 $ 7,859 Cash flow hedge, net of tax (1,053 ) (1,520 ) Defined benefit pension and post-retirement plans, net of tax (3,487 ) (3,542 ) Total $ (689 ) $ 2,797 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Activity under the Company’s options for the three months ended March 31, 2021 was as follows: Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding as of December 31, 2020 38,013 $ 9.03 Granted - - Exercised (5,449 ) 8.34 Forfeited/cancelled/expired - - Outstanding as of March 31, 2021 32,564 9.15 1.21 $ 527,672 Exercisable as of March 31, 2021 32,564 $ 9.15 1.21 $ 527,672 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Activity under the Company’s restricted shares for the three months ended March 31, 2021 was as follows: Weighted- Average Nonvested Grant Date Shares Fair Value Nonvested as of December 31, 2020 113,114 $ 18.15 Granted 27,147 23.23 Vested (15,157 ) 24.36 Forfeited/cancelled/expired (378 ) 23.23 Nonvested March 31, 2021 124,726 $ 18.49 |
Schedule of Unearned Performance Unit Awards [Table Text Block] | A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Weighted Average Grant Units Units Date Fair (expected) (maximum) Value Unearned as of December 31, 2020 147,636 $ 17.29 Awarded 35,593 25.24 Change in estimate 17,818 20.79 Vested shares (29,421 ) 31.35 Unearned as of March 31, 2021 171,626 230,712 $ 16.89 |
Schedule of Unearned Restricted Unit Awards [Table Text Block] | A summary of the status of unearned restricted stock units and the changes in restricted stock units during the period is presented in the table below: Weighted Average Grant Units Date Fair (expected) Value Unearned as of December 31, 2020 169,313 $ 14.07 Awarded 43,077 25.24 Vested shares (68,916 ) 16.29 Unearned as of March 31, 2021 143,474 $ 16.36 |
Components of Net Periodic Pe_2
Components of Net Periodic Pension Cost (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated. Three Months Ended Affected Line Item in the Consolidated March 31, Statements of Income 2021 2020 (dollars in thousands) Service cost $ - $ - Interest cost 71 91 Other components of net periodic pension expense Expected return on plan assets (213 ) (196 ) Other components of net periodic pension expense Net amortization 75 75 Other components of net periodic pension expense Total periodic pension income $ (67 ) $ (30 ) |
FHLB Borrowings (Tables)
FHLB Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s FHLB borrowings and weighted average interest rates are summarized below: March 31, 2021 December 31, 2020 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 359,710 1.11 % $ 425,954 1.07 % By remaining period to maturity: Less than 1 year $ 297,381 0.93 % $ 297,570 0.84 % 1 year through less than 2 years 34,621 1.24 % 75,644 1.42 % 2 years through less than 3 years 25,000 2.92 % 50,000 1.84 % 3 years through less than 4 years - - - - 4 years through 5 years - - - - After 5 years 2,809 2.41 % 2,824 2.42 % Total FHLB borrowings 359,811 1.11 % 426,038 1.07 % Fair value premium (discount) (101 ) (84 ) FHLB borrowings, net $ 359,710 $ 425,954 |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Debentures [Table Text Block] | The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of March 31, 2021 and December 31, 2020. Issuance Date Securities Issued Liquidation Value Coupon Rate Maturity Redeemable by Issuer Beginning 12/19/2003 $ 5,000,000 $1,000 per Capital Security Floating 3-month LIBOR + 285 Basis Points 01/23/2034 01/23/2009 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Offsetting Assets And Liabilities Tables | |
Schedule of financial instruments that are eligible for offset [Table Text Block] | Certain financial instrument-related assets and liabilities may, under GAAP, be offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements, although the Company has elected to disclose such arrangements on a gross basis on its consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 4 within this section. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions. The following table presents information about financial instruments that are eligible for offset as of March 31, 2021 and December 31, 2020: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Recognized Cash or Financial Instrument Collateral Net Amount (dollars in thousands) March 31, 2021 Assets: Interest rate swaps $ - $ - $ - $ - $ - $ - Liabilities: Interest rate swaps $ (1,464 ) $ - $ (1,464 ) $ - $ (1,464 ) $ - December 31, 2020 Assets: Interest rate swaps $ - $ - $ - $ - $ - $ - Liabilities: Interest rate swaps $ (2,119 ) $ - $ (2,119 ) $ - $ (2,119 ) $ - |
Authoritative Accounting Guid_3
Authoritative Accounting Guidance (Narrative) (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated loans | $ 81,280,000 | $ 80,550,000 |
Collectively evaluated loans | 6,197,084,000 | $ 5,192,274,000 |
Financial Asset Acquired with Credit Deterioration [Member] | Maximum [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated loans | 250,000 | |
Financial Asset Acquired with Credit Deterioration [Member] | Minimum [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Collectively evaluated loans | $ 250,000 |
Authoritative Accounting Guid_4
Authoritative Accounting Guidance (Schedule of Adoption of CECL Standard Resulted Adjustment in Financial Statements) (Details) $ in Thousands | Jan. 02, 2021USD ($) | |
Allowance for credit losses ("ACL") (loans) | $ 1,304 | |
Adjustment related to purchased credit-impaired loan marks | [1] | |
Total ACL - loans | 1,304 | |
ACL - (unfunded credit commitments) | 1,621 | |
Total impact of CECL adoption | 2,925 | |
Change in Consolidated Statement of Condition [Member] | ||
Allowance for credit losses ("ACL") (loans) | 1,350 | |
Adjustment related to purchased credit-impaired loan marks | 5,207 | [1] |
Total ACL - loans | 6,557 | |
ACL - (unfunded credit commitments) | 2,833 | |
Total impact of CECL adoption | 9,390 | |
Tax Effect [Member] | ||
Allowance for credit losses ("ACL") (loans) | 406 | |
Adjustment related to purchased credit-impaired loan marks | [1] | |
Total ACL - loans | 406 | |
ACL - (unfunded credit commitments) | 852 | |
Total impact of CECL adoption | $ 1,258 | |
[1] | This amounts represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021. |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per common share | ||
Net income | $ 32,999 | $ 6,030 |
Earnings allocated to participating securities | (186) | (27) |
Income attributable to common stock | $ 32,813 | $ 6,003 |
Weighted average common shares outstanding, including participating securities | 39,738 | 39,559 |
Weighted average participating securities | (181) | (135) |
Weighted average common shares outstanding | 39,557 | 39,424 |
Incremental shares from assumed conversions of options, performance units and restricted shares | 232 | 92 |
Weighted average common and equivalent shares outstanding | 39,789 | 39,516 |
Earnings per common share: | ||
Basic | $ 0.83 | $ 0.15 |
Diluted | $ 0.82 | $ 0.15 |
Securities Available-for-Sale_2
Securities Available-for-Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities Pledged as Collateral | $ 112.2 | $ 107.6 |
Description of Holding Securities | there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. |
Accrued interest receivable for investment securities available for sale | $ 1.6 | $ 1.7 |
Securities Available-for-Sale_3
Securities Available-for-Sale (Details) - Unrealized gains on investment securities - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Securities available-for-sale | ||
Securities, Amortized Cost | $ 436,834 | $ 477,326 |
Securities, Gross Unrealized Gains | 7,959 | 11,015 |
Securities, Gross Unrealized Losses | (2,770) | (386) |
Securities, Fair Value | 442,023 | 487,955 |
Securities, Allowance for Investment Credit Losses | ||
Federal agency obligations [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 40,507 | 37,015 |
Securities, Gross Unrealized Gains | 1,141 | 1,508 |
Securities, Gross Unrealized Losses | (347) | (65) |
Securities, Fair Value | 41,301 | 38,458 |
Securities, Allowance for Investment Credit Losses | ||
Residential mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 238,406 | 266,114 |
Securities, Gross Unrealized Gains | 3,628 | 4,811 |
Securities, Gross Unrealized Losses | (1,680) | (41) |
Securities, Fair Value | 240,354 | 270,884 |
Securities, Allowance for Investment Credit Losses | ||
Commercial mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 6,881 | 6,906 |
Securities, Gross Unrealized Gains | 35 | 203 |
Securities, Gross Unrealized Losses | (502) | (187) |
Securities, Fair Value | 6,414 | 6,922 |
Securities, Allowance for Investment Credit Losses | ||
Obligations of U.S. states and political subdivisions [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 127,809 | 138,539 |
Securities, Gross Unrealized Gains | 2,925 | 4,269 |
Securities, Gross Unrealized Losses | (231) | |
Securities, Fair Value | 130,503 | 142,808 |
Securities, Allowance for Investment Credit Losses | ||
Corporate bonds and notes [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 17,444 | 24,925 |
Securities, Gross Unrealized Gains | 221 | 222 |
Securities, Gross Unrealized Losses | (52) | |
Securities, Fair Value | 17,665 | 25,095 |
Securities, Allowance for Investment Credit Losses | ||
Asset-backed securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 3,361 | 3,521 |
Securities, Gross Unrealized Gains | 8 | |
Securities, Gross Unrealized Losses | (10) | (41) |
Securities, Fair Value | 3,359 | 3,480 |
Securities, Allowance for Investment Credit Losses | ||
Certificates of deposit [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 149 | 149 |
Securities, Gross Unrealized Gains | 1 | 2 |
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | 150 | 151 |
Securities, Allowance for Investment Credit Losses | ||
Other securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 2,277 | 157 |
Securities, Gross Unrealized Gains | ||
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | 2,277 | $ 157 |
Securities, Allowance for Investment Credit Losses |
Securities Available-for-Sale_4
Securities Available-for-Sale (Details) - Investments classified by maturity date - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Securities Available-for-Sale: | ||
Due in one year or less, amortized cost | $ 5,898 | |
Due in one year or less, fair value | 5,929 | |
Due after one year through five years, amortized cost | 16,369 | |
Due after one year through five years, fair value | 16,625 | |
Due after five years through ten years, amortized cost | 14,172 | |
Due after five years through ten years, fair value | 14,527 | |
Due after ten years, amortized cost | 152,831 | |
Due after ten years, fair value | 155,897 | |
Total, amortized cost | 436,834 | $ 477,326 |
Total, fair value | 442,023 | 487,955 |
Residential mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 238,406 | 266,114 |
Total, fair value | 240,354 | 270,884 |
Commercial mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 6,881 | 6,906 |
Total, fair value | 6,414 | 6,922 |
Other securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 2,277 | 157 |
Total, fair value | $ 2,277 | $ 157 |
Securities Available-for-Sale_5
Securities Available-for-Sale (Details) - Schedule of realized gains and losses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds | $ 19,624 | |
Gross gains on sales of securities | 29 | |
Gross losses on sales of securities | ||
Net gains on sales of securities | 29 | |
Less: tax provision on net gains | (6) | |
Net gains on sales of securities, after tax | $ 23 |
Securities Available-for-Sale_6
Securities Available-for-Sale (Details) - Schedule of unrealized losses not recognized in income - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | $ 176,608 | $ 40,838 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (2,770) | (386) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 175,699 | 38,365 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (2,760) | (345) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 909 | 2,473 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (10) | (41) |
Federal agency obligations [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 15,923 | 8,978 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (347) | (65) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 15,922 | 8,975 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (347) | (65) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 1 | 3 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | ||
Residential mortgage pass-through securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 125,231 | 20,895 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (1,680) | (41) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 125,223 | 20,886 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (1,680) | (41) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 8 | 9 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | ||
Commercial mortgage pass-through securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 4,375 | 3,954 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (502) | (187) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 4,375 | 3,954 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (502) | (187) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | ||
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | ||
Obligations of U.S. states and political subdivisions [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 29,179 | |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (231) | |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 29,179 | |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (231) | |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | ||
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | ||
Corporate bonds and notes [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 1,000 | 3,928 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (52) | |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 1,000 | 3,928 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (52) | |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | ||
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | ||
Asset-backed securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 900 | 3,083 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (10) | (41) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 622 | |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | ||
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 900 | 2,461 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | $ (10) | $ (41) |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 03, 2020 | Jan. 02, 2020 | Aug. 06, 2019 | Jun. 04, 2019 | Apr. 13, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 25,000 | $ 25,000 | $ 50,000 | $ 50,000 | $ 25,000 | ||
Interest expense on derivatives | $ 631 | $ 7 |
Derivatives (Details) - Summary
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Notional amount | $ 175,000 | $ 200,000 | $ 175,000 |
Weighted average pay rates | 0.22% | 1.74% | 1.85% |
Weighted average receive rates | 1.68% | 1.76% | 0.92% |
Weighted average maturity | 7 months 6 days | 1 year 4 months 24 days | 9 months 18 days |
Fair value | $ (1,464) | $ (3,029) | $ (2,119) |
Derivatives (Details) - Summa_2
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income - Interest Rate Contracts [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in OCI (Effective Portion) | $ 24 | $ (2,749) |
Amount of (gain) loss reclassified from OCI to interest income | 631 | (7) |
Amount of gain recognized in other Noninterest income (Ineffective Portion) |
Derivatives (Details) - Summa_3
Derivatives (Details) - Summary of cash flow hedges included in the consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Derivative [Line Items] | |||
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ (1,464) | $ (2,119) | $ (3,029) |
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swaps related to FHLB advances included in assets, Notional Amount | 175,000 | 175,000 | |
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ (1,464) | $ (2,119) |
Loans and the Allowance for C_3
Loans and the Allowance for Credit Losses (Details) $ in Thousands | Jan. 02, 2021USD ($) | Mar. 31, 2021USD ($)Loans | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Loans |
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items] | ||||
PPP Loans | $ 522,300 | $ 397,500 | ||
Non Accrual Contractual Due | 90 days | |||
Loans Pledged as Collateral | $ 2,600,000 | 2,700,000 | ||
Provision for credit losses | $ 6,600 | 5,300 | ||
Loans performing under the restructured terms | 25,500 | 23,700 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 27,500 | 25,700 | ||
Troubled debt restructurings | 53,000 | $ 49,400 | ||
Specific allowance of TDR's | $ 10,000 | $ 47 | ||
Number of deferred loans | Loans | 102 | 113 | ||
Deferred loan | $ 204,203 | $ 207,100 | ||
Special Mention [Member] | ||||
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items] | ||||
Deferred loan | $ 44,100 |
Loans and the Allowance for C_4
Loans and the Allowance for Credit Losses (Details) - Composition of loan portfolio - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 6,295,508 | $ 6,247,681 | |
Net deferred loan fees | (18,317) | (11,374) | |
Total loans receivable | 6,277,191 | 6,236,307 | |
Commercial Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | [1] | 1,622,652 | 1,521,967 |
Commercial Real Estate Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 3,797,244 | 3,783,550 | |
Commercial Construction Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 565,872 | 617,747 | |
Residential Real Estate Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 306,376 | 322,564 | |
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 3,364 | $ 1,853 | |
[1] | Included in commercial loans as of March 31, 2021 and December 31, 2020 are PPP loans of $522.3 million and $397.5 million, respectively. |
Loans and the Allowance for C_5
Loans and the Allowance for Credit Losses (Details) - Loans held-for-sale - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 6,900 | $ 4,710 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | 1,981 | 1,990 |
Residential Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 4,919 | $ 2,720 |
Loans and the Allowance for C_6
Loans and the Allowance for Credit Losses (Details) - Loans receivable on nonaccrual status - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 60,940 | $ 61,696 |
Nonaccrual Loans with an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 34,295 | |
Nonaccrual Loans without an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 26,645 | |
Commercial Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 31,105 | 33,019 |
Commercial Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 28,136 | |
Commercial Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,969 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 16,101 | 10,111 |
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,225 | |
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 12,876 | |
Commercial Construction Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 8,951 | 14,015 |
Commercial Construction Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,934 | |
Commercial Construction Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 6,017 | |
Residential Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,783 | 4,551 |
Residential Real Estate Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | ||
Residential Real Estate Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,783 | |
Consumer Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | ||
Consumer Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | ||
Consumer Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status |
Loans and the Allowance for C_7
Loans and the Allowance for Credit Losses (Details) - Origination and Risk Designation - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | $ 6,295,508 | $ 6,247,681 | |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 289,283 | ||
2020 | 393,432 | ||
2019 | 69,685 | ||
2018 | 84,537 | ||
2017 | 114,081 | ||
Prior | 168,793 | ||
Revolving loans | 502,841 | ||
Gross loans | [1] | 1,622,652 | 1,521,967 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 243,512 | ||
2020 | 608,263 | ||
2019 | 479,835 | ||
2018 | 582,978 | ||
2017 | 600,525 | ||
Prior | 1,153,089 | ||
Revolving loans | 129,042 | ||
Gross loans | 3,797,244 | 3,783,550 | |
Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,405 | ||
2020 | 7,506 | ||
2019 | 39,832 | ||
2018 | 8,730 | ||
2017 | 3,981 | ||
Prior | 706 | ||
Revolving loans | 503,712 | ||
Gross loans | 565,872 | 617,747 | |
Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 3,680 | ||
2020 | 35,193 | ||
2019 | 29,698 | ||
2018 | 34,569 | ||
2017 | 46,531 | ||
Prior | 102,919 | ||
Revolving loans | 53,786 | ||
Gross loans | 306,376 | 322,564 | |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 2 | ||
2020 | 117 | ||
2019 | 58 | ||
2018 | 42 | ||
2017 | 53 | ||
Prior | 2,961 | ||
Revolving loans | 131 | ||
Gross loans | 3,364 | 1,853 | |
Pass [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 6,047,888 | ||
Pass [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 289,283 | ||
2020 | 393,432 | ||
2019 | 67,665 | ||
2018 | 70,763 | ||
2017 | 109,667 | ||
Prior | 131,509 | ||
Revolving loans | 486,619 | ||
Gross loans | 1,548,938 | 1,447,097 | |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 241,516 | ||
2020 | 608,263 | ||
2019 | 477,620 | ||
2018 | 570,798 | ||
2017 | 592,738 | ||
Prior | 1,097,118 | ||
Revolving loans | 120,252 | ||
Gross loans | 3,708,305 | 3,700,498 | |
Pass [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,405 | ||
2020 | 7,506 | ||
2019 | 39,832 | ||
2018 | 8,730 | ||
2017 | 3,981 | ||
Prior | 490 | ||
Revolving loans | 478,478 | ||
Gross loans | 540,422 | 587,266 | |
Pass [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 3,680 | ||
2020 | 35,193 | ||
2019 | 29,698 | ||
2018 | 34,362 | ||
2017 | 46,531 | ||
Prior | 93,376 | ||
Revolving loans | 50,046 | ||
Gross loans | 292,886 | 311,174 | |
Pass [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 2 | ||
2020 | 117 | ||
2019 | 58 | ||
2018 | 42 | ||
2017 | 53 | ||
Prior | 2,961 | ||
Revolving loans | 131 | ||
Gross loans | 3,364 | 1,853 | |
Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 79,868 | ||
Special Mention [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | 225 | ||
2018 | 258 | ||
2017 | 292 | ||
Prior | 15,646 | ||
Revolving loans | 12,948 | ||
Gross loans | 29,369 | 30,725 | |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | 1,379 | ||
2018 | 10,892 | ||
2017 | 4,393 | ||
Prior | 23,511 | ||
Revolving loans | 8,790 | ||
Gross loans | 48,965 | 49,143 | |
Special Mention [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Special Mention [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Special Mention [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 119,710 | ||
Substandard [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | 1,795 | ||
2018 | 13,307 | ||
2017 | 4,122 | ||
Prior | 21,638 | ||
Revolving loans | 3,274 | ||
Gross loans | 44,136 | 43,930 | |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,996 | ||
2020 | |||
2019 | 836 | ||
2018 | 1,288 | ||
2017 | 3,394 | ||
Prior | 32,460 | ||
Revolving loans | |||
Gross loans | 39,974 | 33,909 | |
Substandard [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | 216 | ||
Revolving loans | 25,234 | ||
Gross loans | 25,450 | 30,481 | |
Substandard [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | 207 | ||
2017 | |||
Prior | 9,543 | ||
Revolving loans | 3,740 | ||
Gross loans | 13,490 | 11,390 | |
Substandard [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 215 | ||
Doubtful [Member] | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | 209 | ||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | 209 | 215 | |
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Doubtful [Member] | Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Doubtful [Member] | Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
Doubtful [Member] | Consumer Portfolio Segment [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | |||
2020 | |||
2019 | |||
2018 | |||
2017 | |||
Prior | |||
Revolving loans | |||
Gross loans | |||
[1] | Included in commercial loans as of March 31, 2021 and December 31, 2020 are PPP loans of $522.3 million and $397.5 million, respectively. |
Loans and the Allowance for C_8
Loans and the Allowance for Credit Losses (Details) - Credit Quality Indicators - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||
Gross loans | $ 6,295,508 | $ 6,247,681 | |
Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 6,047,888 | ||
Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 79,868 | ||
Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 119,710 | ||
Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 215 | ||
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | [1] | 1,622,652 | 1,521,967 |
Commercial Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 1,548,938 | 1,447,097 | |
Commercial Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 29,369 | 30,725 | |
Commercial Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 44,136 | 43,930 | |
Commercial Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 209 | 215 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 3,797,244 | 3,783,550 | |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 3,708,305 | 3,700,498 | |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 48,965 | 49,143 | |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 39,974 | 33,909 | |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Commercial Construction Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 565,872 | 617,747 | |
Commercial Construction Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 540,422 | 587,266 | |
Commercial Construction Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Commercial Construction Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 25,450 | 30,481 | |
Commercial Construction Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Residential Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 306,376 | 322,564 | |
Residential Real Estate Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 292,886 | 311,174 | |
Residential Real Estate Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Residential Real Estate Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 13,490 | 11,390 | |
Residential Real Estate Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 3,364 | 1,853 | |
Consumer Portfolio Segment [Member] | Pass [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | 3,364 | 1,853 | |
Consumer Portfolio Segment [Member] | Special Mention [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Consumer Portfolio Segment [Member] | Substandard [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
Consumer Portfolio Segment [Member] | Doubtful [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Gross loans | |||
[1] | Included in commercial loans as of March 31, 2021 and December 31, 2020 are PPP loans of $522.3 million and $397.5 million, respectively. |
Loans and the Allowance for C_9
Loans and the Allowance for Credit Losses (Details) - Fair value of collateral $ in Thousands | Mar. 31, 2021USD ($) |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | $ 92,368 |
Real Estate [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 66,197 |
Other [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 26,171 |
Commercial Portfolio Segment [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 32,501 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 6,330 |
Commercial Portfolio Segment [Member] | Other [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 26,171 |
Commercial Real Estate Portfolio Segment [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 29,441 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 29,441 |
Commercial Real Estate Portfolio Segment [Member] | Other [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | |
Commercial Construction Portfolio Segment [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 19,402 |
Commercial Construction Portfolio Segment [Member] | Real Estate [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 19,402 |
Commercial Construction Portfolio Segment [Member] | Other [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | |
Residential Real Estate Portfolio Segment [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 11,024 |
Residential Real Estate Portfolio Segment [Member] | Real Estate [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | 11,024 |
Residential Real Estate Portfolio Segment [Member] | Other [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | |
Consumer Portfolio Segment [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | |
Consumer Portfolio Segment [Member] | Real Estate [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral | |
Consumer Portfolio Segment [Member] | Other [Member] | |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | |
Fair value of collateral |
Loans and the Allowance for _10
Loans and the Allowance for Credit Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
No related allowance recorded, Recorded Investment | $ 54,092 | |
No related allowance recorded, Unpaid Principal Balance | 55,914 | |
Impaired loans with No Related Allowance Average Recorded Investment | $ 72,878 | |
Impaired loans with No Related Allowance Interest Income Recognized | 263 | |
With an allowance recorded, Recorded Investment | 26,458 | |
With an allowance recorded, Unpaid Principal Balance | 71,844 | |
With an allowance recorded, Related Allowance | 14,314 | |
Impaired loans With An Allowance Recorded Average Recorded Investment | 6,725 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | 3 | |
Total, Recorded Investment | 80,550 | |
Total, Unpaid Principal Balance | 127,758 | |
Total, Related Allowance | 14,314 | |
Total Impaired Loans Average Recorded Investment | 79,603 | |
Total Impaired Loans Interest Income Recognized | 266 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
No related allowance recorded, Recorded Investment | 11,325 | |
No related allowance recorded, Unpaid Principal Balance | 11,835 | |
Impaired loans with No Related Allowance Average Recorded Investment | 36,442 | |
Impaired loans with No Related Allowance Interest Income Recognized | 94 | |
With an allowance recorded, Recorded Investment | 23,736 | |
With an allowance recorded, Unpaid Principal Balance | 69,122 | |
With an allowance recorded, Related Allowance | 12,985 | |
Total, Recorded Investment | 35,061 | |
Total, Unpaid Principal Balance | 80,957 | |
Total, Related Allowance | 12,985 | |
Total Impaired Loans Average Recorded Investment | 36,442 | |
Total Impaired Loans Interest Income Recognized | 94 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
No related allowance recorded, Recorded Investment | 13,105 | |
No related allowance recorded, Unpaid Principal Balance | 13,449 | |
Impaired loans with No Related Allowance Average Recorded Investment | 15,238 | |
Impaired loans with No Related Allowance Interest Income Recognized | 84 | |
With an allowance recorded, Recorded Investment | 2,722 | |
With an allowance recorded, Unpaid Principal Balance | 2,722 | |
With an allowance recorded, Related Allowance | 1,329 | |
Impaired loans With An Allowance Recorded Average Recorded Investment | ||
Impaired loans With An Allowance Recorded Interest Income Recognized | ||
Total, Recorded Investment | 15,827 | |
Total, Unpaid Principal Balance | 16,171 | |
Total, Related Allowance | 1,329 | |
Total Impaired Loans Average Recorded Investment | 15,238 | |
Total Impaired Loans Interest Income Recognized | 84 | |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
No related allowance recorded, Recorded Investment | 24,284 | |
No related allowance recorded, Unpaid Principal Balance | 24,907 | |
Impaired loans with No Related Allowance Average Recorded Investment | 17,371 | |
Impaired loans with No Related Allowance Interest Income Recognized | 85 | |
Impaired loans With An Allowance Recorded Average Recorded Investment | 6,463 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | ||
Total, Recorded Investment | 24,284 | |
Total, Unpaid Principal Balance | 24,907 | |
Total, Related Allowance | ||
Total Impaired Loans Average Recorded Investment | 23,834 | |
Total Impaired Loans Interest Income Recognized | 85 | |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
No related allowance recorded, Recorded Investment | 5,378 | |
No related allowance recorded, Unpaid Principal Balance | 5,723 | |
Impaired loans with No Related Allowance Average Recorded Investment | 3,827 | |
Impaired loans with No Related Allowance Interest Income Recognized | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 262 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | 3 | |
Total, Recorded Investment | 5,378 | |
Total, Unpaid Principal Balance | 5,723 | |
Total, Related Allowance | ||
Total Impaired Loans Average Recorded Investment | 4,089 | |
Total Impaired Loans Interest Income Recognized | 3 | |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
No related allowance recorded, Recorded Investment | ||
No related allowance recorded, Unpaid Principal Balance | ||
Impaired loans with No Related Allowance Average Recorded Investment | ||
Impaired loans with No Related Allowance Interest Income Recognized | ||
Total, Recorded Investment | ||
Total, Unpaid Principal Balance | ||
Total, Related Allowance | ||
Total Impaired Loans Average Recorded Investment | ||
Total Impaired Loans Interest Income Recognized |
Loans and the Allowance for _11
Loans and the Allowance for Credit Losses (Details) - Aging analysis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 60,940 | $ 61,696 |
Total Past Due and Nonaccrual | 95,187 | 98,000 |
Gross Loans | 6,295,508 | 6,247,681 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 31,105 | 33,019 |
Total Past Due and Nonaccrual | 36,873 | 38,204 |
Gross Loans | 1,622,652 | 1,521,967 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 16,101 | 10,111 |
Total Past Due and Nonaccrual | 35,736 | 33,064 |
Gross Loans | 3,797,244 | 3,783,550 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 8,951 | 14,015 |
Total Past Due and Nonaccrual | 13,351 | 16,487 |
Gross Loans | 565,872 | 617,747 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 4,783 | 4,551 |
Total Past Due and Nonaccrual | 9,223 | 10,243 |
Gross Loans | 306,376 | 322,564 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | ||
Total Past Due and Nonaccrual | 4 | 2 |
Gross Loans | 3,364 | 1,853 |
Current [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 6,200,321 | 6,149,681 |
Current [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,585,779 | 1,483,763 |
Current [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,761,508 | 3,750,486 |
Current [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 552,521 | 601,260 |
Current [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 297,153 | 312,321 |
Current [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,360 | 1,851 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 17,191 | 18,544 |
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,293 | 1,445 |
30 - 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 11,292 | 13,258 |
30 - 59 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 4,400 | 2,472 |
30 - 59 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 202 | 1,367 |
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 4 | 2 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 664 | 4,939 |
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 558 | |
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 664 | 4,140 |
60 - 89 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
60 - 89 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 241 | |
60 - 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 16,392 | 12,821 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 4,475 | 3,182 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 7,679 | 5,555 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 4,238 | 4,084 |
90 Days or Greater Past Due and Still Accruing [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual |
Loans and the Allowance for _12
Loans and the Allowance for Credit Losses (Details) - Allowance for loan and lease losses - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | $ 18,014 | $ 14,314 | |||
ACL, Collectively evaluated for impairment | 57,347 | 59,072 | |||
ACL, Acquired portfolio | 5,840 | ||||
ACL, Acquired with deteriorated credit quality | 5,207 | ||||
Total | 80,568 | 79,226 | $ 54,169 | $ 38,293 | |
Gross loans | |||||
Loans Receivable, Individually evaluated for impairment | 81,280 | 80,550 | |||
Loans Receivable, Collectively evaluated for impairment | 6,197,084 | 5,192,274 | |||
Loans Receivable, Acquired portfolio | 961,340 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 17,144 | 13,517 | |||
Total | 6,295,508 | 6,247,681 | |||
Commercial Portfolio Segment [Member] | |||||
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | 15,663 | 12,985 | |||
ACL, Collectively evaluated for impairment | 8,496 | 15,412 | |||
ACL, Acquired portfolio | 46 | ||||
ACL, Acquired with deteriorated credit quality | 2,276 | ||||
Total | 26,435 | 28,443 | 9,058 | 8,349 | |
Gross loans | |||||
Loans Receivable, Individually evaluated for impairment | 33,330 | 35,061 | |||
Loans Receivable, Collectively evaluated for impairment | 1,584,095 | 1,414,626 | |||
Loans Receivable, Acquired portfolio | 68,402 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 5,227 | 3,878 | |||
Total | [1] | 1,622,652 | 1,521,967 | ||
Commercial Real Estate Portfolio Segment [Member] | |||||
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | 1,634 | 1,329 | |||
ACL, Collectively evaluated for impairment | 39,486 | 33,373 | |||
ACL, Acquired portfolio | 4,628 | ||||
ACL, Acquired with deteriorated credit quality | 2,777 | ||||
Total | 43,897 | 39,330 | 22,036 | 20,853 | |
Gross loans | |||||
Loans Receivable, Individually evaluated for impairment | 21,762 | 15,827 | |||
Loans Receivable, Collectively evaluated for impairment | 3,767,803 | 2,959,978 | |||
Loans Receivable, Acquired portfolio | 802,190 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 7,679 | 5,555 | |||
Total | 3,797,244 | 3,783,550 | |||
Commercial Construction Portfolio Segment [Member] | |||||
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | 434 | ||||
ACL, Collectively evaluated for impairment | 5,087 | 7,787 | |||
ACL, Acquired portfolio | 407 | ||||
ACL, Acquired with deteriorated credit quality | |||||
Total | 5,521 | 8,194 | 7,819 | 7,304 | |
Gross loans | |||||
Loans Receivable, Individually evaluated for impairment | 19,402 | 24,284 | |||
Loans Receivable, Collectively evaluated for impairment | 546,470 | 574,118 | |||
Loans Receivable, Acquired portfolio | 19,345 | ||||
Loans Receivables, Acquired with deteriorated credit quality | |||||
Total | 565,872 | 617,747 | |||
Residential Real Estate Portfolio Segment [Member] | |||||
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | 283 | ||||
ACL, Collectively evaluated for impairment | 4,267 | 1,928 | |||
ACL, Acquired portfolio | 759 | ||||
ACL, Acquired with deteriorated credit quality | 154 | ||||
Total | 4,704 | 2,687 | 1,681 | 1,685 | |
Gross loans | |||||
Loans Receivable, Individually evaluated for impairment | 6,786 | 5,378 | |||
Loans Receivable, Collectively evaluated for impairment | 295,352 | 241,925 | |||
Loans Receivable, Acquired portfolio | 71,177 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 4,238 | 4,084 | |||
Total | 306,376 | 322,564 | |||
Consumer Portfolio Segment [Member] | |||||
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | |||||
ACL, Collectively evaluated for impairment | 11 | 4 | |||
ACL, Acquired portfolio | |||||
ACL, Acquired with deteriorated credit quality | |||||
Total | 11 | 4 | 3 | 3 | |
Gross loans | |||||
Loans Receivable, Individually evaluated for impairment | |||||
Loans Receivable, Collectively evaluated for impairment | 3,364 | 1,627 | |||
Loans Receivable, Acquired portfolio | 226 | ||||
Loans Receivables, Acquired with deteriorated credit quality | |||||
Total | 3,364 | 1,853 | |||
Unallocated [Member] | |||||
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items] | |||||
ACL, Individually evaluated for impairment | |||||
ACL, Collectively evaluated for impairment | 568 | ||||
ACL, Acquired portfolio | |||||
ACL, Acquired with deteriorated credit quality | |||||
Total | $ 568 | $ 13,572 | $ 99 | ||
[1] | Included in commercial loans as of March 31, 2021 and December 31, 2020 are PPP loans of $522.3 million and $397.5 million, respectively. |
Loans and the Allowance for _13
Loans and the Allowance for Credit Losses (Details) - Schedule of allowance for loan losses - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | $ 79,226 | $ 38,293 |
Day 1 effect of CECL | 6,557 | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | 85,783 | |
Charge-offs | (127) | |
Recoveries | 61 | 3 |
(Reversal of) provision for credit losses (loans) | (5,276) | 16,000 |
Balance | 80,568 | 54,169 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | 28,443 | 8,349 |
Day 1 effect of CECL | (4,225) | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | 24,218 | |
Charge-offs | (124) | |
Recoveries | 60 | |
(Reversal of) provision for credit losses (loans) | 2,157 | 833 |
Balance | 26,435 | 9,058 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | 39,330 | 20,853 |
Day 1 effect of CECL | 9,605 | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | 48,935 | |
Charge-offs | ||
Recoveries | ||
(Reversal of) provision for credit losses (loans) | (5,038) | 1,183 |
Balance | 43,897 | 22,036 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | 8,194 | 7,304 |
Day 1 effect of CECL | (961) | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | 7,233 | |
Charge-offs | ||
Recoveries | ||
(Reversal of) provision for credit losses (loans) | (1,712) | 515 |
Balance | 5,521 | 7,819 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | 2,687 | 1,685 |
Day 1 effect of CECL | 2,697 | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | 5,384 | |
Charge-offs | ||
Recoveries | 3 | |
(Reversal of) provision for credit losses (loans) | (680) | (7) |
Balance | 4,704 | 1,681 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | 4 | 3 |
Day 1 effect of CECL | 9 | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | 13 | |
Charge-offs | (3) | |
Recoveries | 1 | |
(Reversal of) provision for credit losses (loans) | (3) | 3 |
Balance | 11 | 3 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance | 568 | 99 |
Day 1 effect of CECL | (568) | |
Balance as of January 1, 2021 as adjusted for changes in accounting principle | ||
Charge-offs | ||
Recoveries | ||
(Reversal of) provision for credit losses (loans) | 13,473 | |
Balance | $ 13,572 |
Loans and the Allowance for _14
Loans and the Allowance for Credit Losses (Details) - Schedule of Troubled Debt Restructuring by Class $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)Integer | |
Troubled debt restructurings: | |
Number of Loans | Integer | 3 |
Pre-Modification Outstanding Recorded Investment | $ 3,654 |
Post-Modification Outstanding Recorded Investment | $ 3,654 |
Commercial Real Estate Portfolio Segment [Member] | |
Troubled debt restructurings: | |
Number of Loans | Integer | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,658 |
Post-Modification Outstanding Recorded Investment | $ 1,658 |
Residential Real Estate Portfolio Segment [Member] | |
Troubled debt restructurings: | |
Number of Loans | Integer | 2 |
Pre-Modification Outstanding Recorded Investment | $ 1,996 |
Post-Modification Outstanding Recorded Investment | $ 1,996 |
Loans and the Allowance for _15
Loans and the Allowance for Credit Losses (Details) - Schedule of Composition of Loans by Loan Segments $ in Thousands | Mar. 31, 2021USD ($)Loans | Dec. 31, 2020USD ($)Loans |
Financing Receivable, Past Due [Line Items] | ||
Number of loans | Loans | 102 | 113 |
Unpaid Principal Balance | $ | $ 204,203 | $ 207,100 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Number of loans | Loans | 32 | |
Unpaid Principal Balance | $ | $ 103,653 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Number of loans | Loans | 68 | |
Unpaid Principal Balance | $ | $ 97,400 | |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Number of loans | Loans | 2 | |
Unpaid Principal Balance | $ | $ 3,150 |
Loans and the Allowance for _16
Loans and the Allowance for Credit Losses (Details) - Schedule of ACL for off-balance sheet credit exposure $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Receivables [Abstract] | |
Balance | |
Day 1 Effect of CECL | 2,833 |
(Reversal of) provision for credit losses (unfunded commitments) | (490) |
Balance | $ 2,343 |
Loans and the Allowance for _17
Loans and the Allowance for Credit Losses (Details) - Schedule of (Reversal of) provision for credit losses $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Receivables [Abstract] | |
(Reversal of) provision for credit losses (loans) | $ (5,276) |
(Reversal of) provision for credit losses (unfunded commitments) | (490) |
(Reversal of) provision for credit losses | $ (5,766) |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 26,458 | |
Impaired Financing Receivable, Related Allowance | $ 18,014 | 14,314 |
Impaired Loans [Member] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 40,500 | 24,400 |
Impaired Financing Receivable, Related Allowance | $ 20,700 | $ 14,300 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale: | ||
Securities available-for-sale | $ 442,023 | $ 487,955 |
Equity securities | 13,200 | 13,387 |
LIABILITIES | ||
Derivatives | 1,464 | 2,119 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,277 | 157 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 442,023 | 478,954 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 8,774 | 8,844 |
Federal agency obligations [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 41,301 | 38,458 |
Residential mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 240,354 | 270,884 |
Commercial mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 6,414 | 6,922 |
Obligations of U.S. states and political subdivisions [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 130,503 | 142,808 |
Corporate bonds and notes [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 17,665 | 25,095 |
Asset-backed securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 3,359 | 3,480 |
Certificates of deposit [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 150 | 151 |
Other securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,277 | 157 |
Recurring [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 442,023 | 487,955 |
Equity securities | 13,200 | 13,387 |
Total assets | 455,223 | 501,342 |
LIABILITIES | ||
Derivatives | (1,464) | (2,119) |
Total liabilities | (1,464) | (2,119) |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,277 | 157 |
Equity securities | 13,200 | 13,387 |
Total assets | 15,477 | 13,544 |
LIABILITIES | ||
Derivatives | ||
Total liabilities | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 430,972 | 478,954 |
Equity securities | ||
Total assets | 430,972 | 478,954 |
LIABILITIES | ||
Derivatives | (1,464) | (2,119) |
Total liabilities | (1,464) | (2,119) |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 8,774 | 8,844 |
Equity securities | ||
Total assets | 8,774 | 8,844 |
LIABILITIES | ||
Derivatives | ||
Total liabilities | ||
Recurring [Member] | Federal agency obligations [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 41,301 | 38,458 |
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 41,301 | 38,458 |
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Residential mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 240,354 | 270,884 |
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 240,354 | 270,884 |
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Commercial mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 6,414 | 6,922 |
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 6,414 | 6,922 |
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 130,503 | 142,808 |
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 121,729 | 133,964 |
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 8,774 | 8,844 |
Recurring [Member] | Corporate bonds and notes [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 17,665 | 25,095 |
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 17,665 | 25,095 |
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Asset-backed securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 3,359 | 3,480 |
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 3,359 | 3,480 |
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Certificates of deposit [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 150 | 151 |
Recurring [Member] | Other securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,277 | 157 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,277 | 157 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 150 | 151 |
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale |
Fair Value Measurements and F_5
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Assets at Fair Value on Non-Recurring - Impaired Loans [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Commercial Portfolio Segment [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | $ 12,890 | $ 10,751 |
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 12,890 | 10,751 |
Commercial Real Estate [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,283 | 1,393 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,283 | $ 1,393 |
Commercial construction [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,500 | |
Commercial construction [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial construction [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial construction [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,500 | |
Residential Real Estate [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,089 | |
Residential Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Residential Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | $ 2,089 |
Fair Value Measurements and F_6
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value recurring basis - Municipal Securities [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Balance of recurring Level 3 assets at January 1 | $ 8,844 | $ 9,114 |
Principal paydowns | (70) | (270) |
Balance of recurring Level 3 assets at December 31 | $ 8,774 | $ 8,844 |
Fair Value Measurements and F_7
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value on recurring item basis - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair value | $ 455,223 | $ 501,342 |
Municipal Securities [Member] | ||
Fair value | $ 8,774 | $ 8,844 |
Valuation Techniques | Discounted cash flows | Discounted cash flows |
Unobservable Input | Discount rate | Discount rate |
Rate | 2.90% | 2.90% |
Fair Value Measurements and F_8
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a non-recurring basis - Impaired Loans [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commercial Portfolio Segment [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 12,890 | $ 10,751 |
Commercial Real Estate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 2,283 | 1,393 |
Commercial construction [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | 2,500 | |
Non-recurring [Member] | Commercial Portfolio Segment [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 722 | $ 227 |
Valuation Techniques | Appraisals of collateral value | Appraisals of collateral value |
Unobservable Input | Comparable sales | Adjustment for comparable sales |
Non-recurring [Member] | Commercial Portfolio Segment [Member] | Market approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | (2.00%) | (2.00%) |
Non-recurring [Member] | Commercial Portfolio Segment [Member] | Market approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 0.00% | 1.00% |
Non-recurring [Member] | Commercial Portfolio Segment [Member] | Market approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 5.00% | 5.00% |
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 12,168 | $ 10,524 |
Valuation Techniques | Market approach (100) | Market approach (100%) |
Unobservable Input | Average transfer price as a price to unpaid principal balance | Average transfer price as a price to unpaid principal balance |
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | Market approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | (49.00%) | (49.00%) |
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | Market approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 48.00% | 48.00% |
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | Market approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 53.00% | 53.00% |
Non-recurring [Member] | Commercial Real Estate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 2,283 | $ 1,393 |
Valuation Techniques | Appraisals of collateral value | Appraisals of collateral value |
Unobservable Input | Comparable sales | Adjustment for comparable sales |
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | (8.00%) | (8.00%) |
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 0.00% | (25.00%) |
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 25.00% | 20.00% |
Non-recurring [Member] | Commercial construction [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 2,500 | |
Valuation Techniques | Appraisals of collateral value | |
Unobservable Input | Comparable sales | |
Non-recurring [Member] | Commercial construction [Member] | Sales comparison approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 15.00% | |
Non-recurring [Member] | Residential [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value | $ 2,089 | |
Valuation Techniques | Appraisals of collateral value | |
Unobservable Input | Comparable sales | |
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | (6.00%) | |
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 1.00% | |
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Capitalization rate | 15.00% |
Fair Value Measurements and F_9
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||||
Cash and due from banks, Carrying Amount | $ 260,092 | $ 303,756 | $ 282,809 | $ 201,483 |
Cash and due from banks, Fair Value | 260,092 | 303,756 | ||
Securities available-for-sale, Carrying Amount | 442,023 | 487,955 | ||
Securities available-for-sale | 442,023 | 487,955 | ||
Investment in restricted stocks, Carrying Amount | 22,483 | 25,099 | ||
Investment in restricted stocks, Fair Value | ||||
Equity securities, Carrying Amount | 13,200 | 13,387 | ||
Equity securities, Fair Value | 13,200 | 13,387 | ||
Net loans, Carrying Amount | 6,196,623 | 6,157,081 | ||
Net loans, Fair Value | 6,267,519 | 6,244,037 | ||
Accrued interest receivable, Carrying Amount | 35,249 | 35,317 | ||
Accrued interest receivable, Fair Value | 35,249 | 35,317 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Carrying Amount | 1,384,961 | 1,339,108 | ||
Noninterest-bearing deposits, Fair Value | 1,384,961 | 1,339,108 | ||
Interest-bearing deposits, Carrying Amount | 4,566,373 | 4,620,116 | ||
Interest-bearing deposits, Fair Value | 4,573,673 | 4,633,961 | ||
Borrowings, Carrying Amount | 359,710 | 425,954 | ||
Borrowings, Fair Value | 362,497 | 429,671 | ||
Subordinated debentures, Carrying Amount | 152,724 | 202,648 | ||
Subordinated debentures, Fair Value | 163,868 | 214,113 | ||
Derivatives, Carrying Amount | 1,464 | 2,119 | ||
Derivatives, Fair Value | 1,464 | 2,119 | ||
Accrued interest payable, Carrying Amount | 3,598 | 3,687 | ||
Accrued interest payable, Fair Value | 3,598 | 3,687 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets | ||||
Cash and due from banks, Fair Value | 260,092 | 303,756 | ||
Securities available-for-sale | 2,277 | 157 | ||
Investment in restricted stocks, Fair Value | ||||
Equity securities, Fair Value | 13,200 | 13,387 | ||
Net loans, Fair Value | ||||
Accrued interest receivable, Fair Value | ||||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | 1,384,961 | 1,339,108 | ||
Interest-bearing deposits, Fair Value | 3,209,774 | 3,155,983 | ||
Borrowings, Fair Value | ||||
Subordinated debentures, Fair Value | ||||
Derivatives, Fair Value | ||||
Accrued interest payable, Fair Value | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets | ||||
Cash and due from banks, Fair Value | ||||
Securities available-for-sale | 442,023 | 478,954 | ||
Investment in restricted stocks, Fair Value | ||||
Equity securities, Fair Value | ||||
Net loans, Fair Value | ||||
Accrued interest receivable, Fair Value | 1,598 | 1,764 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | 1,363,899 | 1,477,978 | ||
Borrowings, Fair Value | 362,497 | 429,671 | ||
Subordinated debentures, Fair Value | 163,868 | 214,113 | ||
Derivatives, Fair Value | 1,464 | 2,119 | ||
Accrued interest payable, Fair Value | 3,598 | 3,687 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets | ||||
Cash and due from banks, Fair Value | ||||
Securities available-for-sale | 8,774 | 8,844 | ||
Investment in restricted stocks, Fair Value | ||||
Equity securities, Fair Value | ||||
Net loans, Fair Value | 6,267,519 | 6,244,037 | ||
Accrued interest receivable, Fair Value | 33,651 | 33,553 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | ||||
Borrowings, Fair Value | ||||
Subordinated debentures, Fair Value | ||||
Derivatives, Fair Value | ||||
Accrued interest payable, Fair Value |
Comprehensive Income (Details)
Comprehensive Income (Details) - Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] | ||
Sale of securities available-for-sale Net gains on sale of securities available-for-sale | $ (5,440) | $ 6,252 |
Sale of securities available-for-sale Income tax expense | 1,432 | (1,691) |
Net interest income on swaps - Borrowings | (631) | (7) |
Net interest income on swaps Income tax expense | 177 | (2) |
Net interest income on swaps | 454 | (5) |
Total reclassification | (3,486) | 2,611 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | ||
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] | ||
Sale of securities available-for-sale Net gains on sale of securities available-for-sale | 29 | |
Sale of securities available-for-sale Income tax expense | (6) | |
Sale of securities available-for-sale | 23 | |
Net interest income on swaps - Borrowings | (631) | 7 |
Net interest income on swaps Income tax expense | 177 | (2) |
Net interest income on swaps | (454) | 5 |
Amortization of pension plan net actuarial losses - other components of net periodic pension expense | (75) | (75) |
Amortization of pension plan net actuarial losses Income tax benefit | 20 | 21 |
Amortization of pension plan net actuarial losses | (55) | (54) |
Total reclassification | $ (509) | $ (26) |
Comprehensive Income (Details_2
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Investment securities available-for-sale, net of tax | $ 3,851 | $ 7,859 |
Cash flow hedge, net of tax | (1,053) | (1,520) |
Defined benefit pension and post-retirement plans, net of tax | (3,487) | (3,542) |
Total accumulated other comprehensive loss | $ (689) | $ 2,797 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2017 | |
Stock-based compensation | $ 972 | $ 536 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 32,564 | 38,013 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 43,077 | |||
Unrecognized compensation cost related to nonvested shares | $ 1,500 | |||
Weighted average period related to compesation cost | 1 year 6 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 143,474 | 169,313 | ||
Performance unit shares to satisfy tax obligation created from vesting, net | 34,458 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 14,711 | |||
Unrecognized compensation cost related to nonvested shares | $ 2,000 | |||
Weighted average period related to compesation cost | 1 year 10 months 24 days | |||
Performance unit shares to satisfy tax obligation created from vesting, net | 14,711 | |||
Non-vested restricted stock units [Member] | ||||
Unrecognized compensation cost related to nonvested shares | $ 2,300 | |||
Weighted average period related to compesation cost | 2 years 3 months 18 days | |||
2017 Equity Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 750,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 353,841 |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Outstanding Beginning Balance | 38,013 | |
Granted | ||
Exercised | (5,449) | (25,413) |
Outstanding Ending Balance | 32,564 | |
Exercisable Ending Balance | 32,564 | |
Outstanding Beginning Balance, Weighted-Average Exercise Price | $ 9.03 | |
Exercised, Weighted-Average Exercise Price | 8.34 | |
Outstanding Ending Balance, Weighted-Average Exercise Price | 9.15 | |
Exercisable Ending Balance, Weighted-Average Exercise Price | $ 9.15 | |
Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 1 year 2 months 15 days | |
Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 1 year 2 months 15 days | |
Outstanding Ending Balance - Aggregate Intrinsic Value | $ 527,672 | |
Exercisable Ending Balance - Aggregate Intrinsic Value | $ 527,672 |
Stock Based Compensation (Det_3
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Granted | ||
Nonvested [Member] | ||
Nonvested at December 31, 2020 | 113,114 | |
Granted | 27,147 | |
Vested | (15,157) | |
Forfeited/cancelled/expired | (378) | |
Nonvested March 31, 2020 | 124,726 | |
Outstanding, beginning balance | $ 18.15 | |
Granted | 23.23 | |
Vested | 24.36 | |
Forfeited/cancelled/expired | 23.23 | |
Outstanding, ending balance | $ 18.49 |
Stock Based Compensation (Det_4
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Outstanding Beginning Balance | 38,013 | |
Awarded | ||
Outstanding Ending Balance | 32,564 | |
Unearned [Member] | ||
Outstanding Beginning Balance | 147,636 | |
Awarded | 35,593 | |
Change in estimate | 17,818 | |
Vested shares | (29,421) | |
Outstanding Ending Balance | 171,626 | |
Outstanding, beginning balance | $ 17.29 | |
Awarded | 25.24 | |
Change in estimate | 20.79 | |
Vested shares | 31.35 | |
Outstanding, ending balance | $ 16.89 | |
Unearned [Member] | Maximum [Member] | ||
Outstanding Ending Balance | 230,712 | |
Restricted Stock [Member] | ||
Outstanding Beginning Balance | 169,313 | |
Awarded | 43,077 | |
Vested shares | (68,916) | |
Outstanding Ending Balance | 143,474 | |
Outstanding, beginning balance | $ 14.07 | |
Awarded | 25.24 | |
Vested shares | 16.29 | |
Outstanding, ending balance | $ 16.36 |
Components of Net Periodic Pe_3
Components of Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Average daily balance during the year | ||
Service cost | ||
Interest cost | 71 | 91 |
Expected return on plan assets | (213) | (196) |
Net amortization | 75 | 75 |
Total periodic pension (income) cost | $ (67) | $ (30) |
FHLB Borrowings (Details)
FHLB Borrowings (Details) $ in Billions | Mar. 31, 2021USD ($) |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | |
Value of commercial loans used as collateral for FHLB advances | $ 1.9 |
Remaining borrowing capacity | $ 1.1 |
FHLB Borrowings (Details) - Sch
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
By type of borrowing: | ||
FHLB borrowings (in Dollars) | $ 359,710 | $ 425,954 |
Weighted average interest rates | 1.11% | 1.07% |
By remaining period to maturity: | ||
Less than 1 year (in Dollars) | $ 297,381 | $ 297,570 |
Less than 1 year | 0.93% | 0.84% |
1 year through less than 2 years (in Dollars) | $ 34,621 | $ 75,644 |
1 year through less than 2 years | 1.24% | 1.42% |
2 years through less than 3 years (in Dollars) | $ 25,000 | $ 50,000 |
2 years through less than 3 years | 2.92% | 1.84% |
3 years through less than 4 years (in Dollars) | ||
3 years through less than 4 years | ||
4 years through less than 5 years (in Dollars) | ||
4 years through less than 5 years | ||
After 5 years (in Dollars) | $ 2,809 | $ 2,824 |
After 5 years | 2.41% | 2.42% |
Total FHLB borrowings (in Dollars) | $ 359,811 | $ 426,038 |
Fair value premium (discount) | (101) | (84) |
Total borrowings | $ 359,710 | $ 425,954 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jan. 31, 2018 | Jun. 30, 2015 | Mar. 31, 2021 | Dec. 31, 2020 | |
Subordinated Debt from Trust [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Value of subordinated debentures received by Trust | $ 5 | ||||
Percentage Rate Added to Libor | 2.85% | ||||
Floating interest rate on subordinated debentures | 3.06% | ||||
Proceeds from Issuance of Debt | $ 5.2 | ||||
Debt Instrument, Maturity Date | Jan. 23, 2034 | ||||
Fixed-to-floating Rate Subordinated 2020 Notes [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 75 | ||||
Debt Instrument, Maturity Date | Sep. 15, 2025 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||
Debt Instrument, Description of Variable Rate Basis | Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points | ||||
Fixed-to-floating Rate Subordinated 2018 Notes [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 75 | ||||
Debt Instrument, Maturity Date | Feb. 1, 2028 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | ||||
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR rate plus 284 basis points | ||||
Bank [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 65 | ||||
Fixed-to-floating Rate Subordinated Notes [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 50 | ||||
Debt Instrument, Maturity Date | Jul. 1, 2025 | ||||
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR rate plus 393 basis points | ||||
Debt Instrument, Basis Spread on Variable Rate | 4.16% |
Subordinated Debentures (Deta_2
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule of Subordinated Borrowing [Abstract] | ||
Issuance Date | Dec. 19, 2003 | Dec. 19, 2003 |
Securities Issued | $ 5,000,000 | $ 5,000,000 |
Liquidation Value | $1,000 per Capital Security | $1,000 per Capital Security |
Coupon Rate | Floating 3-month LIBOR + 285 Basis Points | Floating 3-month LIBOR + 285 Basis Points |
Maturity | Jan. 23, 2034 | Jan. 23, 2034 |
Redeemable by Issuer Beginning | Jan. 23, 2009 | Jan. 23, 2009 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Gross Amounts Recognized, Liabilities | $ 1,464 | $ 2,119 |
Interest Rate Swap [Member] | ||
Gross Amounts Recognized, Assets | ||
Gross Amounts Recognized, Liabilities | (1,464) | (2,119) |
Gross Amounts Offset in the Statement of Financial Position, Assets | ||
Gross Amounts Offset in the Statement of Financial Position, Liabilities | ||
Net Amounts of Assets Presented in the Statement of Financial Position, Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position, Liabilities | (1,464) | (2,119) |
Financial Instruments Recognized, Assets | ||
Financial Instruments Recognized, Liabilities | ||
Cash or Financial Instrument Collateral, Assets | ||
Cash or Financial Instrument Collateral, Liabilities | (1,464) | (2,119) |
Net Amount, Assets | ||
Net Amount, Liabilities |