UNITED STATES | ||||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||||
Washington, D.C. 20549 | ||||||||
FORM | ||||||||
(Mark One) | ||||||||
For the quarterly period ended | ||||||||
or | ||||||||
For the transition period from __________ to __________. | ||||||||
Commission File Number: | ||||||||
![]() | ||||||||
(Exact name of registrant as specified in its charter) | ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) | |||||||
( | ||||||||
(Registrant’s telephone number, including area code) | ||||||||
Not Applicable | ||||||||
(Former name, former address and former fiscal year, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | ||||||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). | ||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | ||||||||||||||
Large accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company | Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ | ||||||||||||||
Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes | ||||||||||||||
Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: |
Page | ||||||||
l | changes in the economy, which could materially impact credit quality trends and the ability to generate loans and gather deposits, including the pace of recovery following the Coronavirus Disease ("COVID-19") pandemic, risk of recession, rising interest rates and the effects of inflation on our operations and operating expenses; | ||||
l | ability to successfully execute business plans, manage risks and achieve objectives, including strategies related to investments in financial technology (“Fintech”); | ||||
l | market, economic, operational, liquidity, credit and interest rate risks associated with our business; | ||||
l | changes in local, national and international political and economic conditions, including, without limitation, major developments such as wars, natural disasters, epidemics and pandemics, military actions and terrorist attacks; | ||||
l | changes in financial market conditions in areas in which we conduct operations, including, without limitation, reduced rates of business formation and growth, commercial and residential real estate development and real estate prices; | ||||
l | the length, severity, magnitude and duration of the COVID-19 pandemic and the direct and indirect impacts of the COVID-19 pandemic, including its impact on our financial condition and business operations; | ||||
l | unanticipated changes in our liquidity position, including but not limited to changes in access to sources of liquidity and capital to address our liquidity needs; | ||||
l | deposits include certain concentrations with large customers and industries; | ||||
l | inflation and changes in interest rates; | ||||
l | the quality and composition of our loan and securities portfolios; | ||||
l | ability to successfully conduct acquisitions and integrate acquired businesses and potential difficulties in expanding businesses in existing and new markets; | ||||
l | ability to successfully manage credit risk and the sufficiency of allowance for credit losses; | ||||
l | increases in the levels of losses, customer bankruptcies, bank failures, claims and assessments; | ||||
l | changes in government legislation and accounting policies, including the Dodd-Frank Act and Economic Growth, Regulatory Relief and Consumer Protection Act (“EGRRCPA”); | ||||
l | uncertainty about the discontinued use of the London Inter-bank Offered Rate (“LIBOR”) and the transition to an alternative rate; | ||||
l | competition and consolidation in the financial services industry; | ||||
l | new legal claims against us, including litigation, arbitration and proceedings brought by governmental or self-regulatory agencies or changes in existing legal matters; | ||||
l | success in gaining regulatory approvals, when required, including for proposed mergers or acquisitions; | ||||
l | changes in consumer spending and savings habits, including demand for loan products and deposit flow; | ||||
l | increased competitive challenges and expanding product and pricing pressures among financial institutions and non-bank financial companies; | ||||
l | operational risks or risk management failures by us or critical third parties, including without limitation, with respect to data processing, information systems, technological changes, vendor problems, business interruptions and fraud risk; | ||||
l | increasing risk of continually evolving, sophisticated cybersecurity activities faced by financial institutions and others that could result in, among other things, theft, loss, misuse or disclosure of confidential client, customer or corporate information or assets and a disruption of computer, software or network systems and the potential impact from such risks, including reputational damage, regulatory penalties, loss of revenues, additional costs (including repair, remediation and other costs), exposure to litigation and other financial losses; |
l | failure or circumvention of internal controls; | ||||
l | legislative or regulatory changes which adversely affect our operations or business, including the possibility of increased regulatory oversight due to changes in the nature and complexity of our business model, as well as changes to address the impact of COVID-19 through the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and other legislative and regulatory responses to the COVID-19 pandemic; | ||||
l | increased emphasis by regulators on federal and state consumer protection laws that extensively govern customer relationships; | ||||
l | changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (“FASB”) or regulatory agencies, including the impact of future adoption of the current expected credit losses (“CECL”) standard; | ||||
l | concentration risk in our deposit base, including risk of losing large clients and concentration in gaming deposits; and | ||||
l | costs of deposit insurance and changes with respect to Federal Deposit Insurance Corporation (“FDIC”) insurance coverage levels. |
September 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | (Audited) | |||||||||||||
ASSETS | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||
Cash and due from banks | $ | $ | ||||||||||||
Interest-bearing balances with banks | ||||||||||||||
Total cash and cash equivalents | ||||||||||||||
Certificates of deposit with banks | ||||||||||||||
Investment securities available-for-sale | ||||||||||||||
Equity securities | ||||||||||||||
Loans held-for-sale | ||||||||||||||
Loans receivable | ||||||||||||||
Allowance for loan losses | ( | ( | ||||||||||||
Loans receivable, net | ||||||||||||||
Premises and equipment, net | ||||||||||||||
Bank-owned life insurance | ||||||||||||||
Equity method investments | ||||||||||||||
Accrued interest receivable and other assets | ||||||||||||||
Goodwill | ||||||||||||||
TOTAL ASSETS | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing | $ | $ | ||||||||||||
Interest-bearing | ||||||||||||||
Total deposits | ||||||||||||||
Accrued interest payable and other liabilities | ||||||||||||||
Repurchase agreements | ||||||||||||||
FHLB and other borrowings | ||||||||||||||
Subordinated debt | ||||||||||||||
Total liabilities | ||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||
Common stock - par value $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Treasury stock - | ( | ( | ||||||||||||
Total equity attributable to parent | ||||||||||||||
Noncontrolling interest | ||||||||||||||
Total stockholders' equity | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | ||||||||||||||||||||||
Interest on deposits with banks | ||||||||||||||||||||||||||
Interest on investment securities | ||||||||||||||||||||||||||
Interest on tax-exempt loans and securities | ||||||||||||||||||||||||||
Total interest income | ||||||||||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||
Interest on deposits | ||||||||||||||||||||||||||
Interest on short-term borrowings | ||||||||||||||||||||||||||
Interest on subordinated debt | ||||||||||||||||||||||||||
Total interest expense | ||||||||||||||||||||||||||
NET INTEREST INCOME | ||||||||||||||||||||||||||
Provision (release of allowance) for loan losses | ( | |||||||||||||||||||||||||
Net interest income after provision (release of allowance) for loan losses | ||||||||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||
Payment card and service charge income | ||||||||||||||||||||||||||
Insurance and investment services income | ||||||||||||||||||||||||||
Gain on sale of available-for-sale securities, net | ||||||||||||||||||||||||||
Gain (loss) on sale of equity securities, net | ( | ( | ||||||||||||||||||||||||
Gain on sale of loans, net | ||||||||||||||||||||||||||
Holding gain (loss) on equity securities, net | ( | ( | ||||||||||||||||||||||||
Compliance and consulting income | ||||||||||||||||||||||||||
Equity method investment income (loss) | ( | |||||||||||||||||||||||||
Gains on acquisition and divestiture activity | ||||||||||||||||||||||||||
Equity method investment gain | ||||||||||||||||||||||||||
Other operating income | ||||||||||||||||||||||||||
Total noninterest income | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | ||||||||||||||||||||||||||
Salaries and employee benefits | ||||||||||||||||||||||||||
Occupancy expense | ||||||||||||||||||||||||||
Equipment depreciation and maintenance | ||||||||||||||||||||||||||
Data processing and communications | ||||||||||||||||||||||||||
Marketing, contributions and sponsorships | ||||||||||||||||||||||||||
Professional fees | ||||||||||||||||||||||||||
Insurance, tax and assessment expense | ||||||||||||||||||||||||||
Travel, entertainment, dues and subscriptions | ||||||||||||||||||||||||||
Other operating expenses | ||||||||||||||||||||||||||
Total noninterest expense | ||||||||||||||||||||||||||
Income before income taxes | ||||||||||||||||||||||||||
Income taxes |
Net income before noncontrolling interest | ||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | ||||||||||||||||||||||||||
Net income attributable to parent | ||||||||||||||||||||||||||
Preferred dividends | ||||||||||||||||||||||||||
Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per common shareholder - basic | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per common shareholder - diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted-average shares outstanding - basic | ||||||||||||||||||||||||||
Weighted-average shares outstanding - diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net income before noncontrolling interest | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Unrealized holding gain (loss) on securities available-for-sale | ( | ( | ( | |||||||||||||||||||||||
Reclassification adjustment for gain recognized in income | ( | ( | ( | |||||||||||||||||||||||
Change in defined benefit pension plan | ( | |||||||||||||||||||||||||
Reclassification adjustment for amortization of net actuarial loss recognized in income | ||||||||||||||||||||||||||
Reclassification adjustment for carrying value adjustment - investment hedge (gain) loss recognized in income | ( | |||||||||||||||||||||||||
Other comprehensive loss, before tax | ( | ( | ( | ( | ||||||||||||||||||||||
Income taxes related to items of other comprehensive income (loss): | ||||||||||||||||||||||||||
Unrealized holding gain (loss) on securities available-for-sale | ( | |||||||||||||||||||||||||
Reclassification adjustment for gain recognized in income | ||||||||||||||||||||||||||
Change in defined benefit pension plan | ( | ( | ( | |||||||||||||||||||||||
Reclassification adjustment for amortization of net actuarial loss recognized in income | ( | ( | ( | ( | ||||||||||||||||||||||
Reclassification adjustment for carrying value adjustment - investment hedge (gain) loss recognized in income | ( | ( | ( | |||||||||||||||||||||||
Income taxes related to items of other comprehensive income (loss) | ||||||||||||||||||||||||||
Total other comprehensive loss, net of tax | ( | ( | ( | ( | ||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | ||||||||||||||||||||||||||
Comprehensive income (loss) | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total stockholders' equity attributable to parent | Noncontrolling interest | Total stockholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related to equity method investment | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related to equity method investment | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units vested | — | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum tax withholding on restricted stock units issued | — | — | ( | ( | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock purchase from noncontrolling interest | — | — | — | — | ( | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related to equity method investment | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units vested | — | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Total stockholders' equity attributable to parent | Noncontrolling interest | Total stockholders' equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of preferred stock | ( | ( | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | — | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests due to acquisition | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | — | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum tax withholding on restricted stock units issued | — | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests due to acquisition | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued related to Trabian acquisition | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock ($ | — | — | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units issued | — | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum tax withholding on restricted stock units issued | — | — | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued related to stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued related to Interchecks investment | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MVB Technology membership units issued | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | $ |
Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||
Net income before noncontrolling interest | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||||||||
Net amortization and accretion of investments | ||||||||||||||
Net amortization of deferred loan costs | ||||||||||||||
Provision (release of allowance) for loan losses | ( | |||||||||||||
Depreciation and amortization | ||||||||||||||
Stock-based compensation | ||||||||||||||
Stock-based compensation related to equity method investment | ||||||||||||||
Loans originated for sale | ( | ( | ||||||||||||
Proceeds of loans sold | ||||||||||||||
Holding (gain) loss on equity securities | ( | |||||||||||||
Gain on sale of available-for-sale securities, net | ( | ( | ||||||||||||
(Gain) loss on sale of equity securities, net | ( | |||||||||||||
Gain on sale of loans | ( | ( | ||||||||||||
Gains on acquisition and divestiture activity | ( | |||||||||||||
Gain on sale of other real estate owned | ( | ( | ||||||||||||
Income on bank-owned life insurance | ( | ( | ||||||||||||
Deferred income taxes | ( | |||||||||||||
Equity method investment income | ( | ( | ||||||||||||
Equity method investment gain | ( | |||||||||||||
Return on equity method investment | ||||||||||||||
Other assets | ( | |||||||||||||
Other liabilities | ( | ( | ||||||||||||
Net cash from operating activities | ||||||||||||||
INVESTING ACTIVITIES | ||||||||||||||
Purchases of available-for-sale investment securities | ( | ( | ||||||||||||
Maturities/paydowns of available-for-sale investment securities | ||||||||||||||
Sales of available-for-sale investment securities | ||||||||||||||
Purchases of premises and equipment | ( | ( | ||||||||||||
Net increase in loans | ( | ( | ||||||||||||
Purchases of restricted bank stock | ( | ( | ||||||||||||
Redemptions of restricted bank stock | ||||||||||||||
Proceeds from maturities of certificates of deposit with banks | ||||||||||||||
Proceeds from sale of other real estate owned | ||||||||||||||
Purchase of equity securities | ( | ( | ||||||||||||
Sales of equity securities | ||||||||||||||
Net cash transferred for banking center sale | ( | |||||||||||||
Cash paid for acquisitions, net of cash acquired | ( | |||||||||||||
Net cash from investing activities | ( | ( | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||
Net increase in deposits | ||||||||||||||
Net change in repurchase agreements | ( | |||||||||||||
Net change in FHLB and other borrowings | ||||||||||||||
Issuance of subordinated debt | ||||||||||||||
Payment of subordinated debt issuance costs | ( | |||||||||||||
Preferred stock redemption | ( | |||||||||||||
Common stock options exercised | ||||||||||||||
Withholding cash issued in lieu of restricted stock | ( | ( | ||||||||||||
Cash dividends paid on common stock | ( | ( | ||||||||||||
Cash dividends paid on preferred stock | ( | |||||||||||||
Issuance of subsidiary membership units |
Stock purchase from noncontrolling interest | ( | |||||||||||||
Net cash from financing activities | ||||||||||||||
Net change in cash and cash equivalents | ( | |||||||||||||
Cash and cash equivalents, beginning of period | ||||||||||||||
Cash and cash equivalents, end of period | $ | $ | ||||||||||||
Cash payments for: | ||||||||||||||
Interest on deposits, repurchase agreements and borrowings | $ | $ | ||||||||||||
Income taxes | ||||||||||||||
Business combination non-cash disclosures: | ||||||||||||||
Assets acquired in business combination, net of cash acquired | $ | $ | ||||||||||||
Liabilities assumed in business combination | ||||||||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||
Fair value of noncontrolling interests at acquisition date | $ | $ | ||||||||||||
Loans transferred to other real estate owned | ||||||||||||||
Change in unrealized holding losses on securities available-for-sale | ||||||||||||||
Restricted stock units vested | ||||||||||||||
Employee stock-based compensation tax withholding obligations | ( | |||||||||||||
Common stock issued related to acquisitions | ||||||||||||||
l | Various demand deposit accounts, savings accounts, money market accounts and certificates of deposit; | ||||
l | Commercial, consumer and real estate mortgage loans and lines of credit; | ||||
l | Debit cards; | ||||
l | Cashier’s checks; | ||||
l | Safe deposit rental facilities; and | ||||
l | Non-deposit investment services offered through an association with a broker-dealer. |
September 30, 2022 | ||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | ||||||||||||||||||||||
United States government agency securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
United States sponsored mortgage-backed securities | ( | |||||||||||||||||||||||||
United States treasury securities | ( | |||||||||||||||||||||||||
Municipal securities | ( | |||||||||||||||||||||||||
Corporate debt securities | ( | |||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||
Total debt securities | ( | |||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | $ | $ | ( | $ |
December 31, 2021 | ||||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Unrealized Gain | Unrealized Loss | Fair Value | ||||||||||||||||||||||
United States government agency securities | $ | $ | $ | ( | $ | |||||||||||||||||||||
United States sponsored mortgage-backed securities | ( | |||||||||||||||||||||||||
United States treasury securities | ( | |||||||||||||||||||||||||
Municipal securities | ( | |||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||
Total debt securities | ( | |||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | $ | $ | ( | $ |
September 30, 2022 | ||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | ||||||||||||
Within one year | $ | $ | ||||||||||||
After one year, but within five years | ||||||||||||||
After five years, but within ten years | ||||||||||||||
After ten years | ||||||||||||||
Total | $ | $ |
September 30, 2022 | ||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 months | 12 months or more | ||||||||||||||||||||||||
Description and number of positions | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||
United States government agency securities ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
United States sponsored mortgage-backed securities ( | ( | ( | ||||||||||||||||||||||||
United States treasury securities ( | ( | ( | ||||||||||||||||||||||||
Municipal securities ( | ( | ( | ||||||||||||||||||||||||
Corporate debt securities ( | ( | |||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
December 31, 2021 | ||||||||||||||||||||||||||
(Dollars in thousands) | Less than 12 months | 12 months or more | ||||||||||||||||||||||||
Description and number of positions | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||
United States government agency securities ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
United States sponsored mortgage-backed securities ( | ( | ( | ||||||||||||||||||||||||
United States treasury securities ( | ( | |||||||||||||||||||||||||
Municipal securities ( | ( | ( | ||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Proceeds from sales of available-for-sale securities | $ | $ | $ | $ | ||||||||||||||||||||||
Gains, gross | ||||||||||||||||||||||||||
Losses, gross | ||||||||||||||||||||||||||
Proceeds from sales of equity securities | $ | $ | $ | $ | ||||||||||||||||||||||
Gain, gross | ||||||||||||||||||||||||||
Losses, gross | ||||||||||||||||||||||||||
Unrealized holding gains (losses) on equity securities | ( | ( |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Commercial: | ||||||||||||||
Business | $ | $ | ||||||||||||
Real estate | ||||||||||||||
Acquisition, development and construction | ||||||||||||||
Total commercial | $ | $ | ||||||||||||
Residential real estate | ||||||||||||||
Home equity | ||||||||||||||
Consumer | ||||||||||||||
Total loans, excluding PCI | ||||||||||||||
Purchased credit impaired loans: | ||||||||||||||
Commercial: | ||||||||||||||
Business | ||||||||||||||
Real estate | ||||||||||||||
Acquisition, development and construction | ||||||||||||||
Total commercial | $ | $ | ||||||||||||
Residential real estate | ||||||||||||||
Consumer | ||||||||||||||
Total purchased credit impaired loans | ||||||||||||||
Total Loans | $ | $ | ||||||||||||
Deferred loan origination costs and (fees), net | ( | |||||||||||||
Loans receivable | $ | $ |
Impaired Loans with Specific Allowance | Impaired Loans with No Specific Allowance | Total Impaired Loans | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Related Allowance | Recorded Investment | Recorded Investment | Unpaid Principal Balance | |||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ |
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Investment in Impaired Loans | Interest Income Recognized on Accrual Basis | Interest Income Recognized on Cash Basis | Average Investment in Impaired Loans | Interest Income Recognized on Accrual Basis | Interest Income Recognized on Cash Basis | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Investment in Impaired Loans | Interest Income Recognized on Accrual Basis | Interest Income Recognized on Cash Basis | Average Investment in Impaired Loans | Interest Income Recognized on Accrual Basis | Interest Income Recognized on Cash Basis | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ |
(Dollars in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due | Total Past Due | Total Loans | Non-Accrual | 90+ Days Still Accruing | ||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Business | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition, development and construction | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ |
Commercial | Residential | Home Equity | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Business | Real Estate | Acquisition, development and construction | Total Commercial | ||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision | ||||||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (release) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Commercial | Residential | Home Equity | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Business | Real Estate | Acquisition, development and construction | Total Commercial | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ |
Commercial | Residential | Home Equity | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Business | Real Estate | Acquisition, development and construction | Total Commercial | ||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (release) | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
ALL balance at September 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (release) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||
ALL balance at September 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Commercial | Residential | Home Equity | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Business | Real Estate | Acquisition, development and construction | Total Commercial | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ | $ | $ |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Land | $ | $ | ||||||||||||
Buildings and improvements | ||||||||||||||
Furniture, fixtures and equipment | ||||||||||||||
Software | ||||||||||||||
Construction in progress | ||||||||||||||
Leasehold improvements | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Premises and equipment, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | ||||||||||||||||||||||
Short-term lease cost | ||||||||||||||||||||||||||
Variable lease cost | ||||||||||||||||||||||||||
Amortization of right-of-use assets, finance leases | ||||||||||||||||||||||||||
Interest on lease liabilities, finance leases | ||||||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
(Dollars in thousands) | Operating Leases | |||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 and thereafter | ||||||||
Total future minimum lease payments | $ | |||||||
Less: Amounts representing interest | ( | |||||||
Present value of net future minimum lease payments | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Net income (loss) | $ | ( | $ | $ | $ | |||||||||||||||||||||
Gain on sale of loans | $ | $ | $ | $ | ||||||||||||||||||||||
Volume of loans sold | $ | $ | $ | $ |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Noninterest-bearing demand | $ | $ | ||||||||||||
Interest-bearing demand | ||||||||||||||
Savings and money markets | ||||||||||||||
Time deposits, including CDs and IRAs | ||||||||||||||
Total deposits | $ | $ | ||||||||||||
Time deposits that meet or exceed the FDIC insurance limit | $ | $ |
(Dollars in thousands) | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Total | $ |
(Dollars in thousands) | Nine Months Ended September 30, 2022 | Year Ended December 31, 2021 | ||||||||||||
Balance at end of period | $ | $ | ||||||||||||
Average balance during the period | ||||||||||||||
Maximum month-end balance | ||||||||||||||
Weighted-average rate during the period | % | % | ||||||||||||
Weighted-average rate at end of period | % | % |
(Dollars in thousands) | Nine Months Ended September 30, 2022 | Year Ended December 31, 2021 | ||||||||||||
Balance at end of period | $ | $ | ||||||||||||
Average balance during the period | ||||||||||||||
Maximum month-end balance | ||||||||||||||
Weighted-average rate during the period | % | % | ||||||||||||
Weighted-average rate at end of period | % | % |
(Dollars in thousands) | Nine Months Ended September 30, 2022 | Year Ended December 31, 2021 | ||||||||||||
Balance at end of period | $ | $ | ||||||||||||
Average balance during the period | ||||||||||||||
Maximum month-end balance | ||||||||||||||
Weighted-average rate during the period | % | % | ||||||||||||
Weighted-average rate at end of period | % | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Interest cost | $ | $ | ||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization of net actuarial loss | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ||||||||||||||||||||||
Contributions paid | $ | $ | $ | $ |
(Dollars in thousands) | Carrying Value | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level I) | Significant Other Observable Inputs (Level II) | Significant Unobservable Inputs (Level III) | |||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Certificates of deposit with banks | ||||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Loans held-for-sale | ||||||||||||||||||||||||||||||||
Loans receivable, net | ||||||||||||||||||||||||||||||||
Servicing rights | ||||||||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Bank-owned life insurance | ||||||||||||||||||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||||||||||||||
FHLB and other borrowings | ||||||||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||||||||
Fair value hedge | ||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||
Subordinated debt | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Certificates of deposits with banks | ||||||||||||||||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||
Loans held-for-sale | ||||||||||||||||||||||||||||||||
Loans receivable, net | ||||||||||||||||||||||||||||||||
Servicing rights | ||||||||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||||||||
Fair value hedge | ||||||||||||||||||||||||||||||||
Accrued interest receivable | ||||||||||||||||||||||||||||||||
Bank-owned life insurance | ||||||||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Repurchase agreements | ||||||||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||||||||
Fair value hedge | ||||||||||||||||||||||||||||||||
Accrued interest payable | ||||||||||||||||||||||||||||||||
Subordinated debt |
September 30, 2022 | ||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
United States government agency securities | $ | $ | $ | $ | ||||||||||||||||||||||
United States sponsored mortgage-backed securities | ||||||||||||||||||||||||||
United States treasury securities | ||||||||||||||||||||||||||
Municipal securities | ||||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Loans held-for-sale | ||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||
Bank-owned life insurance | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||
Fair value hedge |
December 31, 2021 | ||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Total | ||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
United States government agency securities | $ | $ | $ | $ | ||||||||||||||||||||||
United States sponsored mortgage-backed securities | ||||||||||||||||||||||||||
United States treasury securities | ||||||||||||||||||||||||||
Municipal securities | ||||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||
Other securities | ||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||
Fair value hedge | ||||||||||||||||||||||||||
Bank-owned life insurance | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Interest rate swap | ||||||||||||||||||||||||||
Fair value hedge | ||||||||||||||||||||||||||
(Dollars in thousands) | Total | |||||||
Balance at June 30, 2022 | $ | |||||||
Maturities/calls | ( | |||||||
Unrealized gain included in other comprehensive income (loss) | ||||||||
Unrealized loss included in other comprehensive income (loss) | ( | |||||||
Balance at September 30, 2022 | $ | |||||||
Balance at December 31, 2021 | $ | |||||||
Realized and unrealized gains included in earnings | ||||||||
Purchase of securities | ||||||||
Maturities/calls | ( | |||||||
Unrealized gain included in other comprehensive income (loss) | ||||||||
Unrealized loss included in other comprehensive income (loss) | ( | |||||||
Balance at September 30, 2022 | $ | |||||||
Balance at June 30, 2021 | $ | |||||||
Realized and unrealized losses included in earnings | ||||||||
Purchase of securities | ||||||||
Maturities/calls | ( | |||||||
Unrealized gain included in other comprehensive income (loss) | ||||||||
Unrealized loss included in other comprehensive income (loss) | ( | |||||||
Balance at September 30, 2021 | $ | |||||||
Balance at December 31, 2020 | $ | |||||||
Realized and unrealized gains included in earnings | ||||||||
Purchase of securities | ||||||||
Maturities/calls | ( | |||||||
Unrealized gain included in other comprehensive income (loss) | ||||||||
Unrealized loss included in other comprehensive income (loss) | ( | |||||||
Balance at September 30, 2021 | $ |
September 30, 2022 | ||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Total | ||||||||||||||||||||||
Impaired loans | $ | $ | $ | $ | ||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||
Equity securities |
December 31, 2021 | ||||||||||||||||||||||||||
(Dollars in thousands) | Level I | Level II | Level III | Total | ||||||||||||||||||||||
Impaired loans | $ | $ | $ | $ | ||||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||||||||
Other debt securities | ||||||||||||||||||||||||||
Equity securities |
Quantitative Information about Level III Fair Value Measurements | ||||||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||||||||
Impaired loans | $ | Appraisal of collateral 1 | Appraisal adjustments 2 | |||||||||||||||||||||||
Liquidation expense 2 | ||||||||||||||||||||||||||
Other real estate owned | $ | Appraisal of collateral 1 | Appraisal adjustments 2 | |||||||||||||||||||||||
Liquidation expense 2 | ||||||||||||||||||||||||||
Other debt securities | $ | Net asset value | Cost minus impairment | |||||||||||||||||||||||
Equity securities | $ | Net asset value | Cost minus impairment | |||||||||||||||||||||||
Recurring measurements: | ||||||||||||||||||||||||||
Municipal securities 5 | $ | Appraisal of bond 3 | Bond appraisal adjustment 4 | |||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||
Nonrecurring measurements: | ||||||||||||||||||||||||||
Impaired loans | $ | Appraisal of collateral 1 | Appraisal adjustments 2 | |||||||||||||||||||||||
Liquidation expense 2 | ||||||||||||||||||||||||||
Other real estate owned | $ | Appraisal of collateral 1 | Appraisal adjustments 2 | |||||||||||||||||||||||
Liquidation expense 2 | ||||||||||||||||||||||||||
Other debt securities | $ | Net asset value | Cost minus impairment | |||||||||||||||||||||||
Equity securities | $ | Net asset value | Cost minus impairment | |||||||||||||||||||||||
Recurring measurements: | ||||||||||||||||||||||||||
Municipal securities 5 | $ | Appraisal of bond 3 | Bond appraisal adjustment 4 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands except shares and per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Numerator for basic and diluted earnings per share: | ||||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Dividends on preferred stock | ||||||||||||||||||||||||||
Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Total weighted-average shares outstanding | ||||||||||||||||||||||||||
Effect of dilutive stock options and restricted stock units | ||||||||||||||||||||||||||
Total diluted weighted-average shares outstanding | ||||||||||||||||||||||||||
Earnings per share - basic | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per share - diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Securities not included in the computation of diluted EPS because the effect would be antidilutive |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Details about AOCI components | Amount reclassified from AOCI | Amount reclassified from AOCI | Amount reclassified from AOCI | Amount reclassified from AOCI | Affected income statement line item | |||||||||||||||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||||||||||||
Realized gain recognized in income | $ | $ | $ | $ | Gain on sale of available-for-sale securities | |||||||||||||||||||||||||||
( | ( | ( | Income tax effect | |||||||||||||||||||||||||||||
Net of tax | ||||||||||||||||||||||||||||||||
Defined benefit pension plan items | ||||||||||||||||||||||||||||||||
Amortization of net actuarial loss | ( | $ | ( | $ | ( | $ | ( | Salaries and employee benefits | ||||||||||||||||||||||||
Income tax effect | ||||||||||||||||||||||||||||||||
( | ( | ( | ( | Net of tax | ||||||||||||||||||||||||||||
Investment hedge | ||||||||||||||||||||||||||||||||
Carrying value adjustment | ( | ( | ( | Interest on investment securities | ||||||||||||||||||||||||||||
( | Income tax effect | |||||||||||||||||||||||||||||||
( | ( | ( | Net of tax | |||||||||||||||||||||||||||||
Total reclassifications | $ | ( | $ | $ | $ |
(Dollars in thousands) | Unrealized gains (losses) on available for-sale securities | Defined benefit pension plan items | Investment hedge | Total | ||||||||||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Balance at June 30, 2021 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ( | |||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||
Other comprehensive income (loss) before reclassification | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | ( | ||||||||||||||||||||||||
Balance at September 30, 2021 | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, 2022 | CoRe Banking | Mortgage Banking | Professional Services | Edge Ventures | Financial Holding Company | Intercompany Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Noninterest income | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | |||||||||||||||||||||||||||||||||||||||||||
Total noninterest expenses | ( | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Capital expenditures for the three months ended September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2022 | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Total assets as of December 31, 2021 | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Goodwill as of September 30, 2022 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Goodwill as of December 31, 2021 | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, 2021 | CoRe Banking | Mortgage Banking | Professional Services | Edge Ventures | Financial Holding Company | Intercompany Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Release of allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Noninterest income | ( | |||||||||||||||||||||||||||||||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Capital expenditures for the three months ended September 30, 2021 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | CoRe Banking | Mortgage Banking | Professional Services | Edge Ventures | Financial Holding Company | Intercompany Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Noninterest income | ( | |||||||||||||||||||||||||||||||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | |||||||||||||||||||||||||||||||||||||||||||
Total noninterest expenses | ( | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income taxes | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||
Capital expenditures for the nine months ended September 30, 2022 | $ | $ | $ | $ | $ | $ | $ |
Nine Months Ended September 30, 2021 | CoRe Banking | Mortgage Banking | Professional Services | Edge Ventures | Financial Holding Company | Intercompany Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Interest expense | ( | |||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Release of allowance for loan losses | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Noninterest income | ( | |||||||||||||||||||||||||||||||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and employee benefits | ||||||||||||||||||||||||||||||||||||||||||||
Other expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total noninterest expenses | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Income taxes | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to parent | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||
Capital expenditures for the nine months ended September 30, 2021 | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/Expense | Yield/Cost | Average Balance | Interest Income/Expense | Yield/Cost | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest-bearing balances with banks | $ | 32,552 | $ | 111 | 1.35 | % | $ | 184,131 | $ | 60 | 0.13 | % | ||||||||||||||||||||||||||
CDs with banks | 232 | 2 | 3.42 | 11,065 | 52 | 1.86 | ||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 231,953 | 897 | 1.53 | 238,807 | 575 | 0.96 | ||||||||||||||||||||||||||||||||
Tax-exempt 2 | 144,719 | 1,346 | 3.69 | 202,380 | 1,528 | 3.00 | ||||||||||||||||||||||||||||||||
Loans and loans held-for-sale: 1 | ||||||||||||||||||||||||||||||||||||||
Commercial 3 | 1,687,383 | 22,898 | 5.38 | 1,416,236 | 15,646 | 4.38 | ||||||||||||||||||||||||||||||||
Tax exempt 2 | 4,498 | 51 | 4.50 | 6,678 | 77 | 4.57 | ||||||||||||||||||||||||||||||||
Real estate | 579,685 | 4,707 | 3.22 | 297,450 | 2,282 | 3.04 | ||||||||||||||||||||||||||||||||
Consumer | 129,464 | 4,183 | 12.82 | 16,133 | 602 | 14.80 | ||||||||||||||||||||||||||||||||
Total loans | 2,401,030 | 31,839 | 5.26 | 1,736,497 | 18,607 | 4.25 | ||||||||||||||||||||||||||||||||
Total earning assets | 2,810,486 | 34,195 | 4.83 | 2,372,880 | 20,822 | 3.48 | ||||||||||||||||||||||||||||||||
Less: Allowance for loan losses | (23,083) | (24,978) | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 5,399 | 5,922 | ||||||||||||||||||||||||||||||||||||
Other assets | 227,337 | 200,536 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 3,020,139 | $ | 2,554,360 | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
NOW | $ | 734,271 | $ | 1,394 | 0.75 | % | $ | 743,632 | $ | 333 | 0.18 | % | ||||||||||||||||||||||||||
Money market checking | 258,527 | 422 | 0.65 | 433,216 | 211 | 0.19 | ||||||||||||||||||||||||||||||||
Savings | 71,370 | 153 | 0.85 | 42,126 | — | — | ||||||||||||||||||||||||||||||||
IRAs | 6,132 | 17 | 1.10 | 7,302 | 21 | 1.14 | ||||||||||||||||||||||||||||||||
CDs | 202,299 | 988 | 1.94 | 121,482 | 333 | 1.09 | ||||||||||||||||||||||||||||||||
Repurchase agreements and federal funds sold | 10,627 | 1 | 0.04 | 10,941 | 3 | 0.11 | ||||||||||||||||||||||||||||||||
FHLB and other borrowings | 48,058 | 311 | 2.57 | 494 | 6 | 4.82 | ||||||||||||||||||||||||||||||||
Subordinated debt | 73,190 | 771 | 4.18 | 44,460 | 481 | 4.29 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,404,474 | 4,057 | 1.15 | 1,403,653 | 1,388 | 0.39 | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,321,982 | 852,872 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 37,019 | 36,097 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 2,763,475 | 2,292,622 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||||||||||||||
Common stock | 13,086 | 12,704 | ||||||||||||||||||||||||||||||||||||
Paid-in capital | 145,877 | 141,246 | ||||||||||||||||||||||||||||||||||||
Treasury stock | (16,741) | (16,741) | ||||||||||||||||||||||||||||||||||||
Retained earnings | 144,816 | 122,361 | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (30,915) | 1,207 | ||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 256,123 | 260,777 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 541 | 961 | ||||||||||||||||||||||||||||||||||||
Total stockholders’ equity attributable to parent | 256,664 | 261,738 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 3,020,139 | $ | 2,554,360 | ||||||||||||||||||||||||||||||||||
Net interest spread (tax-equivalent) | 3.68 | % | 3.09 | % | ||||||||||||||||||||||||||||||||||
Net interest income and margin (tax-equivalent) 2 | $ | 30,138 | 4.25 | % | $ | 19,434 | 3.25 | % | ||||||||||||||||||||||||||||||
Less: Tax-equivalent adjustments | $ | (292) | $ | (338) | ||||||||||||||||||||||||||||||||||
Net interest spread | 3.64 | % | 3.03 | % | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 29,846 | 4.21 | % | $ | 19,096 | 3.19 | % |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest Income/Expense | Yield/Cost | Average Balance | Interest Income/Expense | Yield/Cost | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Interest-bearing balances with banks | $ | 273,184 | $ | 630 | 0.31 | % | $ | 207,195 | $ | 164 | 0.11 | % | ||||||||||||||||||||||||||
CDs with banks | 1,381 | 24 | 2.32 | 11,554 | 168 | 1.94 | ||||||||||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||||
Taxable | 237,188 | 2,383 | 1.34 | 222,323 | 1,831 | 1.10 | ||||||||||||||||||||||||||||||||
Tax-exempt 2 | 140,377 | 3,824 | 3.64 | 207,529 | 4,881 | 3.14 | ||||||||||||||||||||||||||||||||
Loans and loans held-for-sale: 1 | ||||||||||||||||||||||||||||||||||||||
Commercial 3 | 1,569,161 | 59,899 | 5.10 | 1,365,680 | 45,905 | 4.49 | ||||||||||||||||||||||||||||||||
Tax exempt 2 | 4,829 | 156 | 4.32 | 6,928 | 237 | 4.57 | ||||||||||||||||||||||||||||||||
Real estate | 438,380 | 9,722 | 2.97 | 303,701 | 7,509 | 3.31 | ||||||||||||||||||||||||||||||||
Consumer | 91,092 | 9,454 | 13.88 | 10,157 | 762 | 10.03 | ||||||||||||||||||||||||||||||||
Total loans | 2,103,462 | 79,231 | 5.04 | 1,686,466 | 54,413 | 4.31 | ||||||||||||||||||||||||||||||||
Total earning assets | 2,755,592 | 86,092 | 4.18 | 2,335,067 | 61,457 | 3.52 | ||||||||||||||||||||||||||||||||
Less: Allowance for loan losses | (20,468) | (25,920) | ||||||||||||||||||||||||||||||||||||
Cash and due from banks | 5,680 | 16,274 | ||||||||||||||||||||||||||||||||||||
Other assets | 237,637 | 201,198 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 2,978,441 | $ | 2,526,619 | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||||
NOW | $ | 678,991 | $ | 1,844 | 0.36 | % | $ | 660,655 | $ | 1,323 | 0.27 | % | ||||||||||||||||||||||||||
Money market checking | 367,608 | 807 | 0.29 | 461,998 | 662 | 0.19 | ||||||||||||||||||||||||||||||||
Savings | 49,714 | 155 | 0.42 | 44,938 | 4 | 0.01 | ||||||||||||||||||||||||||||||||
IRAs | 6,271 | 52 | 1.11 | 10,764 | 102 | 1.27 | ||||||||||||||||||||||||||||||||
CDs | 122,095 | 1,433 | 1.57 | 148,807 | 1,091 | 0.98 | ||||||||||||||||||||||||||||||||
Repurchase agreements and federal funds sold | 11,334 | 4 | 0.05 | 10,677 | 10 | 0.13 | ||||||||||||||||||||||||||||||||
FHLB and other borrowings | 16,966 | 322 | 2.54 | 33,914 | 95 | 0.37 | ||||||||||||||||||||||||||||||||
Subordinated debt | 73,126 | 2,284 | 4.18 | 43,786 | 1,437 | 4.39 | ||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 1,326,105 | 6,901 | 0.70 | 1,415,539 | 4,724 | 0.45 | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 1,350,533 | 828,469 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 41,379 | 36,665 | ||||||||||||||||||||||||||||||||||||
Total liabilities | 2,718,017 | 2,280,673 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||||||||||||||||
Preferred stock | — | 774 | ||||||||||||||||||||||||||||||||||||
Common stock | 13,276 | 12,524 | ||||||||||||||||||||||||||||||||||||
Paid-in capital | 144,903 | 139,980 | ||||||||||||||||||||||||||||||||||||
Treasury stock | (16,741) | (16,741) | ||||||||||||||||||||||||||||||||||||
Retained earnings | 140,174 | 107,094 | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (21,905) | 1,788 | ||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 259,707 | 245,419 | ||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 717 | 527 | ||||||||||||||||||||||||||||||||||||
Total stockholders’ equity attributable to parent | 260,424 | 245,946 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,978,441 | $ | 2,526,619 | ||||||||||||||||||||||||||||||||||
Net interest spread (tax-equivalent) | 3.48 | % | 3.07 | % | ||||||||||||||||||||||||||||||||||
Net interest income and margin (tax-equivalent) 2 | $ | 79,191 | 3.84 | % | $ | 56,733 | 3.25 | % | ||||||||||||||||||||||||||||||
Less: Tax-equivalent adjustments | $ | (837) | $ | (1,077) | ||||||||||||||||||||||||||||||||||
Net interest spread | 3.44 | % | 3.01 | % | ||||||||||||||||||||||||||||||||||
Net interest income and margin | $ | 78,354 | 3.80 | % | $ | 55,656 | 3.19 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Net interest margin - U.S. GAAP basis | ||||||||||||||||||||||||||
Net interest income | $ | 29,846 | $ | 19,096 | $ | 78,354 | $ | 55,656 | ||||||||||||||||||
Average interest-earning assets | 2,810,486 | 2,372,880 | 2,755,592 | 2,335,067 | ||||||||||||||||||||||
Net interest margin | 4.21 | % | 3.19 | % | 3.80 | % | 3.19 | % | ||||||||||||||||||
Net interest margin - non-U.S. GAAP basis | ||||||||||||||||||||||||||
Net interest income | $ | 29,846 | $ | 19,096 | $ | 78,354 | $ | 55,656 | ||||||||||||||||||
Impact of fully tax-equivalent adjustment | 292 | 338 | 837 | 1,077 | ||||||||||||||||||||||
Net interest income on a fully tax-equivalent basis | 30,138 | 19,434 | 79,191 | 56,733 | ||||||||||||||||||||||
Average interest-earning assets | $ | 2,810,486 | $ | 2,372,880 | $ | 2,755,592 | $ | 2,335,067 | ||||||||||||||||||
Net interest margin on a fully tax-equivalent basis | 4.25 | % | 3.25 | % | 3.84 | % | 3.25 | % |
As of and for the three months ended September 30, | As of and for the nine months ended September 30, | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Book value per common share | $ | 19.85 | $ | 22.18 | $ | 19.85 | $ | 22.18 | ||||||||||||||||||
Tangible book value per common share 5 | $ | 19.38 | $ | 21.64 | $ | 19.38 | $ | 21.64 | ||||||||||||||||||
Efficiency ratio 1 5 | 78.8 | % | 62.9 | % | 80.4 | % | 65.9 | % | ||||||||||||||||||
Overhead ratio 2 3 5 | 4.0 | % | 4.0 | % | 4.0 | % | 3.6 | % | ||||||||||||||||||
Net loan charge-offs to total loans receivable 4 | 0.2 | % | — | % | 0.2 | % | 0.01 | % | ||||||||||||||||||
Allowance for loan losses to total loans receivable | 1.07 | % | 1.40 | % | 1.07 | % | 1.43 | % | ||||||||||||||||||
Nonperforming loans | $ | 22,350 | $ | 17,453 | $ | 22,350 | $ | 17,453 | ||||||||||||||||||
Nonperforming loans to total loans receivable | 0.9 | % | 1.0 | % | 0.9 | % | 1.0 | % | ||||||||||||||||||
Equity to assets | 7.8 | % | 9.5 | % | 7.8 | % | 9.5 | % | ||||||||||||||||||
Community Bank Leverage Ratio | 11.1 | % | 12.0 | % | 11.1 | % | 12.0 | % |
As of September 30, | ||||||||||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | ||||||||||||
Goodwill | $ | 3,988 | $ | 3,988 | ||||||||||
Intangibles | 1,806 | 2,518 | ||||||||||||
Total intangibles | 5,794 | 6,506 | ||||||||||||
Total equity attributable to parent | 243,913 | 265,565 | ||||||||||||
Less: Total intangibles | (5,794) | (6,506) | ||||||||||||
Tangible common equity | 238,119 | 259,059 | ||||||||||||
Tangible common equity | 238,119 | 259,059 | ||||||||||||
Common shares outstanding (000s) | 12,287 | 11,972 | ||||||||||||
Tangible book value per common share | $ | 19.38 | $ | 21.64 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Available-for-sale securities: | ||||||||||||||
United States government agency securities | $ | 46,148 | $ | 40,437 | ||||||||||
United States sponsored mortgage-backed securities | 57,829 | 76,108 | ||||||||||||
United States treasury securities | 111,032 | 110,389 | ||||||||||||
Municipal securities | 135,758 | 175,012 | ||||||||||||
Corporate debt securities | 7,640 | 11,142 | ||||||||||||
Other debt securities | 7,500 | 7,500 | ||||||||||||
Other securities | 835 | 878 | ||||||||||||
Total investment securities available-for-sale | $ | 366,742 | $ | 421,466 | ||||||||||
Equity securities | $ | 34,101 | $ | 32,402 |
(Dollars in thousands) | September 30, 2022 | December 31, 2021 | ||||||||||||
Noninterest-bearing demand | $ | 1,411,772 | $ | 1,120,433 | ||||||||||
Interest-bearing demand | 763,401 | 651,016 | ||||||||||||
Savings and money markets | 306,170 | 510,068 | ||||||||||||
Time deposits, including CDs and IRAs | 215,615 | 96,088 | ||||||||||||
Total deposits | $ | 2,696,958 | $ | 2,377,605 | ||||||||||
Time deposits that meet or exceed the FDIC insurance limit | $ | 6,864 | $ | 9,573 |
Exhibit Number | Description | Exhibit Location | ||||||
Agreement and Plan of Merger and Reorganization, dated August 12, 2022 by and between MVB Financial Corp. and Integrated Financial Holdings, Inc. | ||||||||
Certificate of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||
Certificate of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||
Certificate of principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||
Certificate of principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||
XBRL Instance Document | Filed herewith | |||||||
XBRL Taxonomy Extension Schema | Filed herewith | |||||||
XBRL Taxonomy Extension Calculation Linkbase | Filed herewith | |||||||
XBRL Taxonomy Extension Definition Linkbase | Filed herewith | |||||||
XBRL Taxonomy Extension Label Linkbase | Filed herewith | |||||||
XBRL Taxonomy Extension Presentation Linkbase | Filed herewith |
SIGNATURES | |||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | |||||||||||
MVB Financial Corp. | |||||||||||
Date: | November 8, 2022 | By: | /s/ Larry F. Mazza | ||||||||
Larry F. Mazza | |||||||||||
CEO and Director | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | November 8, 2022 | By: | /s/ Donald T. Robinson | ||||||||
Donald T. Robinson | |||||||||||
President and CFO | |||||||||||
(Principal Financial and Accounting Officer) |
Date: | November 8, 2022 | /s/ Larry F. Mazza | |||||||||
Larry F. Mazza | |||||||||||
CEO and Director | |||||||||||
(Principal Executive Officer) |
Date: | November 8, 2022 | /s/ Donald T. Robinson | |||||||||
Donald T. Robinson | |||||||||||
President and CFO | |||||||||||
(Principal Financial and Accounting Officer) |
Date: | November 8, 2022 | /s/ Larry F. Mazza | |||||||||
Larry F. Mazza | |||||||||||
CEO and Director | |||||||||||
(Principal Executive Officer) |
Date: | November 8, 2022 | /s/ Donald T. Robinson | |||||||||
Donald T. Robinson | |||||||||||
President and CFO | |||||||||||
(Principal Financial and Accounting Officer) |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 13,134,951 | 12,934,966 |
Common stock, shares outstanding (in shares) | 12,286,935 | 12,086,950 |
Treasury stock, shares (in shares) | 848,016 | 848,016 |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends paid (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.14 | $ 0.12 | $ 0.10 |
Nature of Operations and Basis of Presentation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Basis of Presentation | Note 1 – Nature of Operations and Basis of Presentation Business and Organization MVB Financial Corp. is a financial holding company organized as a West Virginia corporation in 2003 that operates principally through its wholly-owned subsidiary, MVB Bank, Inc. The Bank’s subsidiaries include MVB Insurance, LLC, (“MVB Insurance”), MVB Community Development Corporation (“MVB CDC”), ProCo Global, Inc. (“Chartwell”, which began doing business under the registered trade name Chartwell Compliance), Paladin Fraud, LLC (“Paladin Fraud”) and MVB Edge Ventures, Inc. (“Edge Ventures”). The Bank owns a controlling interest in Trabian Technology, Inc. (“Trabian”), and Edge Ventures wholly-owns Victor Technologies Inc. ("Victor"), as well as controlling interests in MVB Technology, LLC ("MVB Technology") and Flexia Payments, LLC (“Flexia”). The Bank also owns equity method investments in Intercoastal Mortgage Company, LLC (“ICM”) and Interchecks Technologies, Inc. ("Interchecks"), and MVB Financial Corp. owns an equity method investment in Ayers Socure II, LLC ("Ayers Socure II"). Edge Ventures serves as a management company providing oversight, alignment and structure for MVB’s Fintech companies and allocates resources to help incubate venture businesses and technologies acquired and developed by MVB. Through our professional services entities, which include Chartwell, Paladin Fraud and Trabian, we provide compliance and consulting solutions to assist Fintech and corporate clients in building digital products and meeting their regulatory compliance and fraud defense needs. We conduct a wide range of business activities through the Bank, primarily commercial and retail (“CoRe”) banking services, as well as Fintech banking. CoRe Banking We offer our customers a full range of products and services including:
Fintech Banking We provide innovative strategies to independent banking and corporate clients throughout the United States. Our dedicated Fintech sales team specializes in providing banking services to corporate Fintech clients, with a primary focus on operational risk management and compliance. Managing banking relationships with clients in the payments, digital savings, cryptocurrency, crowd funding, lottery and gaming industries is complex, from both an operational and regulatory perspective. We believe that the complexity of serving these industries causes them to be underserved with quality banking services and provides us with a significantly expanded pool of potential customers. When serviced in a safe and efficient manner, we believe these industries offer an excellent source of stable, low cost deposits and noninterest, fee-based income. We analyze each industry, as well as any new products or services provided, thoroughly, both from an operational and regulatory viewpoint. Principles of Consolidation and Basis of Presentation The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2021 has been derived from audited financial statements included in the 2021 Form 10-K. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2021 Form 10-K. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Wholly-owned investments or investments in which we have a controlling financial interest, whether majority owned or in certain circumstances a minority interest, are required to be consolidated into our financial statements. We evaluate investments in entities on an ongoing basis to determine the need to consolidate. The Bank owns controlling interests in Flexia, Trabian and MVB Technology. We own an 80.0% interest in Flexia, an 80.8% interest in Trabian and a 93.4% interest in MVB Technology. Accordingly, we are required to consolidate 100% of each entity within the consolidated financial statements. The remaining interests of these entities are accounted for separately as noncontrolling interests within our consolidated financial statements. Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of these entities. Unconsolidated investments where we have the ability to exercise significant influence over the operating and financial policies of the respective investee are accounted for using the equity method of accounting. Those investments that are not consolidated or accounted for using the equity method of accounting are accounted for under cost or fair value accounting. For investments accounted for under the equity method, we record our investment in non-consolidated affiliates and the portion of income or loss in equity in earnings of non-consolidated affiliates. We periodically evaluate these investments for impairment. As of September 30, 2022, we held three equity method investments. Preparation of our consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based upon the best available information and actual results could differ from those estimates. An estimate that is particularly significant to the consolidated financial statements relates to the determination of the allowance for loan losses (“ALL”). In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. COVID-19 Pandemic Since 2020 and continuing in 2022, economies throughout the world have been severely disrupted as a result of the outbreak of COVID-19. The outbreak and any preventative or protective actions that we or our clients may take related to this virus may result in a period of disruption, including our financial reporting capabilities, our operations generally and could potentially impact our clients, providers and third parties. While significant progress has been made to combat the outbreak of COVID-19, the extent to which the COVID-19 pandemic will continue to impact our future operating results will depend on future developments, including resurgences, such as the recent acceleration of the spread of variants and related sub-variants of COVID-19, which are highly uncertain and cannot be predicted. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, in April 2019, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, in May 2019, ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 and in November 2019, ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, all of which clarifies codification and corrects unintended application of the guidance. The new guidance replaces the incurred loss impairment methodology in current U.S. GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired ("PCI") loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. The guidance was initially effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. On November 15, 2019, the FASB issued ASU 2019-10, Financial Investments – Credit Issues (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates, which finalizes a delay in the effective date of the standard for smaller reporting companies (“SRCs”). Effective as of the first quarter of 2022, we no longer qualified as an SRC. However, because we met the criteria to be an SRC as of the issuance date of this guidance, we are eligible for the delay in effective date and plan to adopt this standard for fiscal years ending after December 15, 2022. We currently expect to recognize a one-time cumulative effect adjustment to the ALL as of January 1, 2023, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In that regard, we have formed a cross-functional implementation team. This cross-functional team is currently in the process of testing the model and completing the implementation plan, which will include assessment and documentation of processes, internal controls and data sources; model testing and documentation; and system configuration, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of this standard. The adoption of this standard could result in an increase in the ALL as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Upon adoption of ASU 2016-13, we currently expect to record an increase in our allowance for credit losses of between 15% and 25%, not including any change in unfunded commitment liability; however, the ultimate impact of adoption on our allowance for credit losses could vary significantly from our current estimate as it is influenced by, among other things, the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts as of the adoption date. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional expedients and exceptions for certain contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of rate reform. The guidance is effective from the date of issuance until December 31, 2022. The guidance permits entities to not apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationship and the assessment of hedge effectiveness during the transition period. In January 2021, ASU 2021-01 was issued by the FASB and clarifies that certain exceptions in reference rate reform apply to derivatives that are affected by the discounting transition. We will continue to assess the impact as the reference rate transition occurs over the next year. As of September 30, 2022, we had loans totaling $437.98 million that reference LIBOR which will be transitioned to the secured overnight financing rate ("SOFR") effective June 30, 2023. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments eliminate the accounting guidance for troubled debt restructurings ("TDRs") in subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 of the codification to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments also include provisions for disclosure of current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. Gross writeoff information must be included in the vintage disclosures required for public business entities which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivables by year of origination. This amendment is effective concurrently with the amendments in ASU 2016-13 which is currently effective for fiscal years beginning after December 15, 2022. These amendments primarily impact disclosure requirements and we do not believe they will have a material impact on our consolidated financial statements. In March 2022, the SEC released Staff Accounting Bulletin No. 121 ("SAB 121"), which updates the SEC's position regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users. When a reporting entity holds crypto-assets for platform users and maintains the cryptographic key information necessary to access the crypto-asset, the reporting entity should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for platform users. The liability represents the loss exposure due to the risks associated with safeguarding crypto-assets. The entity should also record an asset at the same time that recognizes the fair value of the crypto-assets held for its platform users. SAB 121 is effective no later than the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. We do not currently expect this update to impact our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot recognize and measure a contractual sale restriction as a separate unit of account and require additional disclosures related to equity securities with contractual sale restrictions. The amendment is effective for fiscal years beginning after December 15, 2023. We do not currently expect these amendments to have a material impact our consolidated financial statements.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Note 2 – Investment Securities The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown:
The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown:
The table above reflects contractual maturities. Actual results will differ as the loans underlying the mortgage-backed securities may be repaid sooner than scheduled. Investment securities with a carrying value of $27.5 million and $244.6 million at September 30, 2022 and December 31, 2021, respectively, were pledged to secure public funds, repurchase agreements. Our investment portfolio includes securities that are in an unrealized loss position as of September 30, 2022, the details of which are included in the following table. Although these securities would result in a pretax loss of $52.4 million if sold at September 30, 2022, we currently have no intention of selling the applicable securities at such fair values, and believe that we have the ability to hold these securities until all principal has been recovered. It is more likely than not that we will not, for liquidity purposes, sell any securities at a loss. Declines in the fair value of these securities can be traced to general market conditions, which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, we consider such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, our ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency and whether or not the financial condition of the security issuer has severely deteriorated. As of September 30, 2022, we consider all securities with unrealized loss positions to be temporarily impaired. As a result, we do not believe we will sustain any material realized losses as a result of the current decline in fair value. The following tables disclose the length of time that investments have remained in an unrealized loss position at September 30, 2022 and December 31, 2021:
The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown:
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Loans and Allowance for Loan Losses |
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Loans and Allowance for Loan Losses | Note 3 – Loans and Allowance for Loan Losses The following table presents the components of loans as of the periods shown:
We currently manage our loan portfolios and the respective exposure to credit losses (credit risk) by the following specific portfolio segments, which are levels at which we develop and document our systematic methodology to determine the allowance for credit losses attributable to each respective portfolio segment. These segments are as follows: Commercial business loans – Commercial business loans are made to provide funds for equipment and general corporate needs, as well as to finance owner-occupied real estate, and to finance future cash flows of Federal government lease contracts. Repayment of these loans primarily uses the funds obtained from the operation of the borrower’s business. Commercial business loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. This segment includes both internally originated and purchased participation loans. Credit risk arises from the successful operation of the business, which may be affected by competition, rising interest rates, regulatory changes and adverse conditions in the local and regional economy. Commercial real estate loans – Commercial real estate loans consist of non-owner occupied properties, such as investment properties for retail, office and multifamily with a history of occupancy and cash flow. This segment includes both internally originated and purchased participation loans. These loans carry the risk of adverse changes in the local economy and a tenant’s deteriorating credit strength, lease expirations in soft markets and sustained vacancies, which can adversely impact cash flow. Commercial acquisition, development and construction loans – Commercial acquisition, development and construction loans are intended to finance the construction of commercial and residential properties, including the construction of single-family dwellings, and also includes loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan. Commercial Small Business Administration (“SBA”) loans – Loans originated through the various SBA programs have become an area of lending focus for the Bank. As of September 30, 2022, these loans have not yet been designated as a unique portfolio segment due to the relative insignificance from a loan volume perspective. These loans are currently included within the loan types noted above, based on the purpose of each loan originated. However, it is anticipated that this portfolio will continue to expand through a dedicated SBA lending focus, which we continue to monitor. When appropriate, the portfolio segments will be adjusted to segregate the SBA loan portfolio segment from the other commercial loan portfolio segments. Commercial SBA Paycheck Protection Program (“PPP”) loans – This segment includes the loan originated through the SBA PPP loan program. Credit risk is heightened as this SBA program mandates that these loans require no collateral and no guarantors of the loans. However, the loans are backed by a full guaranty of the SBA, so long as the loans were originated in accordance with the program guidelines. Additionally, these loans are eligible for full forgiveness by the SBA so long as the borrowers comply with the program guidelines as it pertains to their eligibility to borrow these funds, as well as their use of the funds. These loans are currently included within the commercial business loan type above. Residential mortgage loans – This residential real estate subsegment contains permanent and construction mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios and collateral values. Credit risk arises from the borrower’s, and where applicable, the builder’s, continuing financial stability, which can be adversely impacted by job loss, divorce, illness or personal bankruptcy, among other factors. Also impacting credit risk would be a shortfall in the value of the residential real estate in relation to the outstanding loan balance in the event of a default or subsequent liquidation of the real estate collateral. Home equity lines of credit – This segment includes subsegment for senior lien and subordinate lien lines of credit. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. Consumer loans – This segment of loans includes primarily installment loans and personal lines of credit. Consumer loans include installment loans used by clients to purchase automobiles, boats and recreational vehicles. Credit risk is similar to residential real estate loans described above as it is subject to the borrower’s continuing financial stability and the value of the collateral securing the loan. This segment primarily includes loans purchased from a third-party originator that originates loans in order to finance the purchase of personal automotive vehicles for sub-prime borrowers. Credit risk is unique in comparison to the Consumer segment as this segment includes only those loans provided to consumers that cannot typically obtain financing through traditional lenders. As such, these loans are subject to a higher risk of default than the typical consumer loan. The following table presents impaired loans by class segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of the periods shown:
The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods shown:
As of September 30, 2022, the Bank’s other real estate owned balance totaled $1.2 million, all of which was related to the acquisition of The First State Bank (“First State”) in 2020. The Bank held $1.1 million, or 91.7%, of other real estate owned as a result of the foreclosure of five unrelated commercial loans. The remaining $0.1 million, or 8.3%, consists of one foreclosed residential real estate property. There are twelve additional consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure, with a total recorded investment of $2.3 million as of September 30, 2022. These include five legacy Bank loans totaling $1.5 million and seven loans acquired from First State totaling $0.8 million. These loans are included in the table above and have $0.1 specific allowance allocated to them. Bank management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized and are aggregated as “Pass” rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. Loans categorized as “Pass” rated have adequate sources of repayment, with little identifiable risk of collection and general conformity to the Bank's policy requirements, product guidelines and underwriting standards. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. Loans categorized as “Special Mention” rated have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. Loans categorized as “Substandard” rated are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans categorized as “Doubtful” rated have all the weakness inherent in those classified Substandard with the added characteristic that the weakness makes collections or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. The Special Mention rated category includes assets that are currently protected but are potentially weak, resulting in undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. Any portion of a loan that has been or is expected to be charged off is placed in the "Loss" category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Bank has a structured loan rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories, unless a specific action, such as past due status, bankruptcy, repossession or death, occurs to raise awareness of a possible credit event. The Bank’s Chief Credit Officer is responsible for the timely and accurate risk rating of the loans in the portfolio at origination and on an ongoing basis. The Bank's Credit Department ensures that a review of all commercial relationships of $1.0 million or more is performed annually. Review of the appropriate risk grade is included in both the internal and external loan review process and on an ongoing basis. The Bank has an experienced Credit Department that continually reviews and assesses loans within the portfolio. The Bank engages an external consultant to conduct independent loan reviews on at least an annual basis. Generally, the external consultant reviews commercial relationships in excess of $3.0 million or criticized relationships. The Bank's Credit Department compiles detailed reviews, including plans for resolution, on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods shown:
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. A loan that has deteriorated and requires additional collection efforts by the Bank could warrant non-accrual status. A complete review is presented to the Chief Credit Officer and/or the Special Asset Review Committee (“SARC”), as required with respect to any loan which is in a collection process and to make a determination as to whether the loan should be placed on non-accrual status. The placement of loans on non-accrual status is subject to applicable regulatory restrictions and guidelines. Generally, loans should be placed in non-accrual status when the loan reaches 90 days past due, becomes likely the borrower cannot or will not make scheduled principal or interest payments, full repayment of principal and interest is not expected or the loan displays potential loss characteristics. Normally, all accrued interest is charged off when a loan is placed in non-accrual status unless we believe it is likely the accrued interest will be collected. Any payments subsequently received are applied to the principal. All principal and interest due must be paid up-to-date and the Bank is reasonably sure of future satisfactory payment performance to remove a loan from non-accrual status. Usually, this requires the receipt of consecutive months of regular, on-time payments. Removal of a loan from non-accrual status will require the approval of the Chief Credit Officer and/or the SARC. The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and non-accrual loans as of the periods shown:
An ALL is maintained to absorb losses from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience and the amount of non-performing loans. The Bank’s methodology for determining the ALL is based on the requirements of ASC Topic 310 - Receivables ("ASC 310") for loans individually evaluated for impairment and ASC Subtopic 450-20 - Contingencies for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Bank’s ALL. The Bank analyzes certain impaired loans in homogeneous pools, rather than on an individual basis, when those loans are below specific thresholds based on outstanding principal balance. More specifically, residential mortgage loans, home equity lines of credit and consumer loans, when considered impaired, are evaluated collectively for impairment by applying allocation rates derived from the Bank’s historical losses specific to impaired loans and the reserve totaled $0.1 million as of both September 30, 2022 and December 31, 2021. These loans are included in total loans individually evaluated for impairment and in total impaired loans as these are individually identified as impaired prior to the collective application of allocation rates to calculate impairment. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by qualified factors. The loan segments described above, which are based on the federal call code assigned to each loan, provide the starting point for the ALL analysis. Management tracks the historical net charge-off activity at the call code level. A historical charge-off factor is calculated utilizing a defined number of consecutive historical quarters. All pools currently utilize a rolling 12 quarters. “Pass” rated credits are segregated from “Criticized” credits for the application of qualitative factors. Loans in the Criticized pools, which possess certain qualities or characteristics that may lead to collection and loss issues, are closely monitored by management and subject to additional qualitative factors. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory and governmental sources are: lending policies and procedures, nature and volume of the portfolio, experience and ability of lending management and staff, volume and severity of problem credits, quality of the loan review system, changes in the value of underlying collateral, effect of concentrations of credit from a loan type, industry and/or geographic standpoint, changes in economic and business conditions, consumer sentiment and other external factors. The combination of historical charge-off and qualitative factors are then weighted for each risk grade. These weightings are determined internally based upon the likelihood of loss as a loan risk grading deteriorates. To estimate the liability for off-balance sheet credit exposures, Bank management analyzed the portfolios of letters of credit, non-revolving lines of credit and revolving lines of credit and based its calculation on the expectation of future advances of each loan category. Letters of credit were determined to be highly unlikely to advance since they are generally in place only to ensure various forms of performance of the borrowers. In the Bank’s history, there have been no letters of credit drawn upon. In addition, many of the letters of credit are cash secured and do not warrant an allocation. Non-revolving lines of credit were determined to be highly likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. Once the estimated future advances were calculated, an allocation rate, which was derived from the Bank’s historical losses and qualitative environmental factors, was applied in a similar manner as those used for the allowance for loan loss calculation. The resulting estimated loss allocations were totaled to determine the liability for unfunded commitments related to these loans, which management considers necessary to anticipate potential losses on those commitments that have a reasonable probability of funding. As of September 30, 2022 and December 31, 2021, the liability for unfunded commitments related to loans held for investment, excluding loans acquired from First State, was $0.5 million. Bank management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown:
Substantially all of the charge-offs during nine months ended September 30, 2022 are related to our subprime consumer automobile portfolio of loans. The following table presents the primary segments of our loan portfolio as of the period shown:
The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown:
The following table presents the primary segments of our loan portfolio as of the period shown:
The ALL is based on estimates and actual losses will vary from current estimates. Management believes that the granularity of the homogeneous pools and the related historical loss ratios and other qualitative factors, as well as the consistency in the application of assumptions, result in an ALL that is representative of the risk found in the components of the portfolio at any given date. Troubled Debt Restructurings At September 30, 2022 and December 31, 2021, the Bank had specific reserve allocations for TDRs of $0.4 million and $0.5 million, respectively. Loans considered to be troubled debt restructured loans totaled $12.2 million and $12.6 million as of September 30, 2022 and December 31, 2021, respectively. Of these totals, $4.2 million and $4.5 million represent accruing troubled debt restructured loans at September 30, 2022 and December 31, 2021, respectively, and represent 16% and 21%, respectively, of total impaired loans. Meanwhile, as of September 30, 2022, $0.1 million represents one loan to one borrower that has defaulted under the restructured terms during the previous 12 months. This single loan is a commericial loan secured by owner occupied real estate. These borrowers have experienced continued financial difficulty and are considered non-performing loans as September 30, 2022. During the nine months ended September 30, 2022 and 2021, no additional loans were classified as TDRs and one restructured loan defaulted under modified terms that were not already classified as non-performing for having previously defaulted under modified terms. Purchased Credit Impaired Loans As a result of the acquisition of First State, we have PCI loans, with a carrying amount of $4.4 million as of September 30, 2022. As of September 30, 2022, the loans in our PCI portfolio were all collectively evaluated for impairment and are categorized as residential loans. During the nine months ended September 30, 2022, we sold PCI loans with an unpaid principal balance of $13.4 million, resulting in the recognition of additional accretion income of $1.0 million. None of the PCI loans are considered non-accrual as they are all currently accreting interest income under PCI loan accounting. Income is not recognized on PCI loans if we cannot reasonably estimate cash flows expected to be collected. As of September 30, 2022, we held no such loans. As our PCI loan portfolio is accounted for in pools with similar risk characteristics in accordance with ASC 310-30, this portfolio is not subject to the impaired loan and TDR guidance. Rather, the revised estimated future cash flows of the individually modified loans are included in the estimated future cash flows of the pool. PPP Loans and CARES Act Deferrals We actively participated in the PPP as a lender, evaluating other programs available to assist our clients and providing deferrals consistent with GSE guidelines. As of September 30, 2022, the outstanding balance of PPP loans totaled $9.3 million on loans originated through our internal commercial team and $10.8 million on loans originated through our partnership with a Fintech company. As of September 30, 2022, all commercial and mortgage loans previously approved for COVID-19 related modifications, such as interest-only payment and payment deferrals, had returned to their previous payment structures. These modifications were not considered to be TDRs in reliance on guidance issued by banking regulators titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.”
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Premises and Equipment |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods shown:
We lease certain premises and equipment under operating and finance leases. At September 30, 2022, we had lease liabilities totaling $15.3 million, substantially all of which was related to operating leases, and right-of-use assets totaling $14.2 million, substantially all of which was related to operating leases. At September 30, 2022, the weighted-average remaining lease term for operating leases was 11.7 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.0%. At September 30, 2022, the weighted-average remaining lease term for finance leases was 3.0 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 0.7%. At December 31, 2021, we had lease liabilities totaling $18.6 million, of which $18.5 million was related to operating leases and $0.1 million was related to finance leases, and right-of-use assets totaling $17.5 million, all of which was related to operating leases. At December 31, 2021, the weighted-average remaining lease term for operating leases was 12 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At December 31, 2021, the weighted-average remaining lease term for finance leases was 1.8 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.0%. Lease liabilities and right-of-use assets are reflected in and , respectively. The following table presents lease costs for the periods shown:
For operating leases with initial or remaining terms of one year or more as of September 30, 2022, the following table presents future minimum payments for the twelve month periods ended September 30:
There are no material future minimum payments on finance leases as of September 30, 2022.
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Premises and Equipment | Note 4 – Premises and Equipment The following table presents the components of premises and equipment as of the periods shown:
We lease certain premises and equipment under operating and finance leases. At September 30, 2022, we had lease liabilities totaling $15.3 million, substantially all of which was related to operating leases, and right-of-use assets totaling $14.2 million, substantially all of which was related to operating leases. At September 30, 2022, the weighted-average remaining lease term for operating leases was 11.7 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 3.0%. At September 30, 2022, the weighted-average remaining lease term for finance leases was 3.0 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 0.7%. At December 31, 2021, we had lease liabilities totaling $18.6 million, of which $18.5 million was related to operating leases and $0.1 million was related to finance leases, and right-of-use assets totaling $17.5 million, all of which was related to operating leases. At December 31, 2021, the weighted-average remaining lease term for operating leases was 12 years and the weighted-average discount rate used in the measurement of operating lease liabilities was 2.8%. At December 31, 2021, the weighted-average remaining lease term for finance leases was 1.8 years and the weighted-average discount rate used in the measurement of finance lease liabilities was 2.0%. Lease liabilities and right-of-use assets are reflected in and , respectively. The following table presents lease costs for the periods shown:
For operating leases with initial or remaining terms of one year or more as of September 30, 2022, the following table presents future minimum payments for the twelve month periods ended September 30:
There are no material future minimum payments on finance leases as of September 30, 2022.
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Equity Method Investments |
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Equity Method Investments | Note 5 – Equity Method Investments In accordance with Rule 10-01(b)(1) of Regulation S-X, we must assess whether our equity method investments are significant. In evaluating the significance of these investments, we performed the income and investment tests described in S-X 1-02(w) for each equity method investment. Rule 10-01(b)(1) of Regulation S-X requires summarized financial information in a quarterly report if any of the tests exceeds 20% and if the investee for which separate financial statements would otherwise be required for annual periods. Under the income test, our proportionate share of the net income of ICM exceeded the applicable threshold of 20%, and criteria for reporting separate financial statements is also applicable, accordingly, we are required to provide summarized income statement information for this investee for all periods presented. There were no other equity method investments which met any of the applicable thresholds for interim reporting as of the quarter ended September 30, 2022. Our equity method investments are initially recorded at fair value and subsequently adjusted for changes in the valuation of the entities and our share of the entities' earnings. ICM The following table presents summarized income statement information for our equity method investment in ICM for the periods shown:
Our ownership percentage of 40% of ICM allows us to have significant influence over the operations and decision making at ICM. Accordingly, the investment is accounted for as an equity method investment. Our share of ICM's net loss and net income income totaled $0.8 million and $1.2 million for the three and nine months ended September 30, 2022, respectively, and our share of ICM's net income totaled $3.6 million and $14.6 million for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022 and December 31, 2021, the mortgage pipeline was $0.79 billion and $1.01 billion, respectively. Interchecks Our ownership percentage of 16% of Interchecks, as well as certain other qualitative factors, allows us to have significant influence over the operations and decision making at Interchecks. Accordingly, the investment is accounted for as an equity method investment. Our share of net loss from Interchecks totaled $0.2 million and $0.5 million for the three and nine months ended September 30, 2022, respectively. During the nine months ended September 30, 2022, we recorded a gain due to an observable transaction based on an in-substance sale of ownership in the amount of $1.9 million. The equity method investment in Interchecks is not considered a significant investment based on the criteria of Rule 10-01(b)(1) of Regulation S-X. We have multiple business relationships with Interchecks beyond our investment. Interchecks is a banking client and utilizes the software developed by Victor, which provides revenue to us. Additionally, Interchecks provides management services to MVB Technology, which provides revenue to Interchecks. Such revenues have not been material. Ayers Socure II Our ownership percentage of 10% of Ayers Socure II allows us to have significant influence over the company. Accordingly, the investment is accounted for as an equity method investment. Our share of net income from Ayers Socure II for the three and nine months ended September 30, 2022 was not significant. The equity method investment in Ayers Socure II is not considered a significant investment based on the criteria of Rule 10-01(b)(1) of Regulation S-X. Ayers Socure II's sole business is ownership of equity securities in Socure Inc. ("Socure"). In addition to our equity method investment in Ayers Socure II, we also have direct equity security ownership interest in Socure. With the combination of our investments in both Ayers Socure II and Socure directly, we own less than 1% of Socure in total.
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Deposits |
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Deposits | Note 6 – Deposits The following table presents the components of deposits as of the periods shown:
The following table presents the maturities of time deposits for the twelve month periods ended September 30:
As of September 30, 2022, overdrawn deposit accounts totaling $1.3 million were reclassified as loan balances.
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Borrowed Funds |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowed Funds | Note 7 – Borrowed Funds The Bank is a member of the Federal Home Loan Bank ("FHLB") of Pittsburgh, Pennsylvania. As of September 30, 2022, the Bank's maximum borrowing capacity with the FHLB was $576.7 million and the remaining borrowing capacity was $239.8 million, with the difference being deposit letters of credit and short-term borrowings with the FHLB. Short-term borrowings As of September 30, 2022, the Bank had $73.3 million short-term borrowings with the FHLB and no borrowings under Fed Funds purchased outstanding. As of December 31, 2021, the Bank had no short-term borrowings with the FHLB and no borrowings under Fed Funds purchased outstanding. The following table presents information related to short-term borrowings as of and for the periods shown:
Long-term borrowings As of September 30, 2022 and December 31, 2021, the Bank had no long-term borrowings with the FHLB or the Federal Reserve Bank. Repurchase agreements Along with traditional deposits, the Bank has access to securities sold under agreements to repurchase (“repurchase agreements”) with clients representing funds deposited by clients, on an overnight basis, that are collateralized by investment securities owned by us. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between us and the client and are accounted for as secured borrowings. Our repurchase agreements reflected in liabilities consist of client accounts and securities which are pledged on an individual security basis. We monitor the fair value of the underlying securities on a monthly basis. Repurchase agreements are reflected in the amount of cash received in connection with the transaction. The primary risk with our repurchase agreements is the market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. As of September 30, 2022 and December 31, 2021, all of our repurchase agreements were overnight agreements. These borrowings were collateralized with investment securities with a carrying value of $10.2 million and $15.8 million at September 30, 2022 and December 31, 2021, respectively, and were comprised of United States government agency securities and United States sponsored mortgage-backed securities. Declines in the value of the collateral would require us to increase the amounts of securities pledged. The following table presents information related to repurchase agreements as of and for the periods shown:
Subordinated debt The following table presents information related to subordinated debt as of and for the periods shown:
In September 2021, MVB completed the private placement of $30.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-year term, maturing October 1, 2031, and will bear interest at a fixed rate of 3.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus 254 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In November 2020, MVB completed the private placement of $40.0 million fixed-to-floating rate subordinated notes to certain qualified institutional investors. These notes are unsecured and have a 10-year term, maturing December 1, 2030, and will bear interest at a fixed rate of 4.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR, plus 401 basis points, payable quarterly in arrears. These notes have been structured to qualify as Tier 2 capital for regulatory capital purposes. In March 2007, we completed the private placement of $4.0 million Floating Rate, Trust Preferred Securities through our MVB Financial Statutory Trust I subsidiary (the “Trust”). We established the Trust for the sole purpose of issuing the Trust Preferred Securities pursuant to an Amended and Restated Declaration of Trust. The Trust Preferred Securities and the Debentures mature in 2037 and have been redeemable by us since 2012. Interest payments are due in March, June, September and December and are adjusted at the interest due dates at a rate of 1.62% over the three-month LIBOR Rate. The obligations we provide with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by us of the Trust’s obligations with respect to the trust preferred securities to the extent set forth in the related guarantees. The securities issued by the Trust are includable for regulatory purposes as a component of our Tier 1 capital.
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Pension and Supplemental Executive Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Supplemental Executive Retirement Plans | Note 8 – Pension and Supplemental Executive Retirement Plans Supplemental executive retirement plan In June 2017, we approved a Supplemental Executive Retirement Plan (the “SERP”), pursuant to which the Chief Executive Officer of Potomac Mortgage Group ("PMG") is entitled to receive certain supplemental nonqualified retirement benefits. The SERP took effect on December 31, 2017. As the executive completed three years of continuous employment with PMG prior to retirement date (which shall be no earlier than the date he attains age 55) he will, upon retirement, be entitled to receive $1.8 million payable in 180 equal consecutive monthly installments of $10 thousand. The liability is calculated by discounting the anticipated future cash flows at 4.0%. The liability accrued for this obligation was $1.3 million as of both September 30, 2022 and December 31, 2021, respectively. Service costs were not material for any periods covered by this report. Pension plan We participate in a trusteed pension plan known as the Allegheny Group Retirement Plan. Benefits are based on years of service and the employee’s compensation. Accruals under the plan were frozen as of May 31, 2014. Freezing the plan resulted in a remeasurement of the pension obligations and plan assets as of the freeze date. The pension obligation was remeasured using the discount rate based on the Citigroup Above Median Pension Discount Curve in effect on May 31, 2014 of 4.5%. The following table presents information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of September 30, 2022 and 2021 for the periods shown:
There was no service cost or amortization of prior service cost for the three and nine months ended September 30, 2022 and 2021.
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Fair Value of Financial Instruments |
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Fair Value of Financial Instruments | Note 9 – Fair Value of Financial Instruments The following table presents the carrying values and estimated fair values of our financial instruments as of the periods shown:
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 10 – Fair Value Measurements Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time of our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and-off 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. The methods of determining the fair value of assets and liabilities presented in this footnote are consistent with our methodologies disclosed in Note 1 - Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements included in Item 8, Financial Statements and Supplementary Data, of the 2021 Form 10-K. Assets Measured on a Recurring Basis As required by accounting standards, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following measurements are made on a recurring basis: Available-for-sale investment securities – Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level I securities include those traded on an active exchange, such as the New York Stock Exchange and money market funds. Level II securities include mortgage-backed securities issued by government-sponsored entities and private label entities, municipal bonds, United States Treasury securities that are traded by dealers or brokers in inactive over-the-counter markets and corporate debt securities. There have been no changes in valuation techniques for the three and nine months ended September 30, 2022. Valuation techniques are consistent with techniques used in prior periods. Certain local municipal securities related to tax increment financing (“TIF”) are independently valued and classified as Level III instruments. We classified investments in government securities as Level II instruments and valued them using the market approach. Equity securities – Certain equity securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. The valuation methodologies utilized may include significant unobservable inputs. There have been no changes in valuation techniques for the three and nine months ended September 30, 2022. Valuation techniques are consistent with techniques used in prior periods. Interest rate swap – Interest rate swaps are recorded at fair value based on third-party vendors who compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models that consider observable market data. Fair value hedge – Treated like an interest rate swap, fair value hedges are recorded at fair value based on third-party vendors who compile prices from various sources and may determine fair value of identical or similar instruments by using pricing models that consider observable market data. Bank-owned life insurance - Life insurance where the bank is both the policy beneficiary and owner. Bank-owned life insurance ("BOLI") is recorded at fair value on a recurring basis, and increases in cash surrender, contract value and net insurance proceeds at maturity are recorded as other income. The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy:
The following table represents recurring Level III assets, consisting of only municipal securities, as of the periods shown:
Assets Measured on a Nonrecurring Basis From time to time, we may be required to measure certain financial and non-financial assets and liabilities at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Certain non-financial assets measured at fair value on a nonrecurring basis include foreclosed assets (upon initial recognition or subsequent impairment), non-financial assets and liabilities measured at fair value in the second step of a goodwill impairment test and intangible assets and other non-financial long-lived assets measured at fair value for impairment assessment. Non-financial assets measured at fair value on a nonrecurring basis during 2022 and 2021 include certain foreclosed assets which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for possible loan losses and certain foreclosed assets which, subsequent to their initial recognition, were remeasured at fair value through a write-down included in other noninterest expense. Impaired loans – Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. For a majority of impaired real estate-related loans, we obtain a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. Loans held-for-sale - The fair value of loans held-for-sale is determined, when possible, using quoted secondary-market prices or investor commitments. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan, which would be used by other market participants. If the fair value at the reporting date exceeds the amortized cost of a loan, the loan is reported at amortized cost. Other real estate owned – Other real estate owned, which is obtained through the Bank’s foreclosure process, is valued utilizing the appraised collateral value. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. At the time the foreclosure is completed, we obtain a current external appraisal. Other debt securities – Certain debt securities are recorded at fair value on a nonrecurring basis. These other debt securities are securities without a readily determinable fair value and are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. Equity securities – Certain equity securities are recorded at fair value on a nonrecurring basis. Equity securities without a readily determinable fair value are measured at cost minus impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions, as defined, for identical or similar investments of the same issuer. The following table presents the fair value of these assets as of the periods shown:
The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown:
1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities.
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Earnings per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Note 11 – Earnings per Share We determine basic earnings per share (“EPS”) by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is determined by dividing net income available to common shareholders by the weighted-average number of shares outstanding, increased by both the number of shares that would be issued assuming the exercise of instruments under our incentive stock plan. The following table presents our calculation of EPS for the periods shown:
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Comprehensive Income |
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Note 12 – Comprehensive Income The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods shown:
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Note 13 – Segment Reporting We have identified five reportable segments: CoRe banking; mortgage banking; professional services; Edge Ventures; and financial holding company. Revenue from CoRe banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. Our Fintech division and MVB CDC are included in the CoRe banking segment. Revenue from our mortgage banking segment is primarily comprised of our share of net income or loss from mortgage banking activities of our equity method investment in ICM. Professional services is the aggregate of Chartwell, Trabian and Paladin Fraud. Revenue from these operating segments is made up of primarily of professional consulting income to banks and Fintech companies. Edge Ventures is the aggregate of Victor, MVB Technology, Flexia and the Edge Ventures holding company. These operating segments are aggregated together as Edge Ventures and are all start-up Fintech software development companies. Revenue from financial holding company activities is mainly comprised of intercompany service income and dividends. The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown:
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Pending Acquisition |
9 Months Ended |
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Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Pending Acquisition | Note 14 – Pending Acquisition Integrated Financial Holdings, Inc. In August 2022, we entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Integrated Financial Holdings, Inc. (“IFH”). Pursuant to the Merger Agreement, IFH will merge with and into MVB, with MVB continuing as the surviving corporation. Under the terms of the merger agreement, IFH shareholders will receive 1.21 shares of MVB common stock for each share of IFH common stock. The value of the merger consideration to be paid by MVB in shares of MVB common stock upon the completion of the merger will be determined based on the closing price of MVB common stock on the closing date and the number of issued and outstanding shares of IFH common stock immediately prior to the closing. Following the merger, West Town Bank & Trust, a state bank chartered under the laws of Illinois and wholly-owned subsidiary of IFH, may, upon the direction of MVB, merge with and into the Bank, with the Bank as the surviving bank.
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Subsequent Event |
9 Months Ended |
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Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 15 – Subsequent Event In March 2022, the Bank entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Warp Speed Holdings LLC (“Warp Speed”), pursuant to which the Bank agreed to purchase certain common units of Warp Speed in an amount equal to 37.5% of the outstanding equity interests of Warp Speed, on a fully-diluted basis. In April 2022, we assumed the Bank's obligations under the Purchase Agreement. Effective October 1, 2022, we completed the purchase with $38.4 million in cash, plus 313,030 shares of newly-issued common stock of MVB, with an aggregate value of $9.6 million, based on the volume-weighted average closing price for shares of MVB common stock for the 20 trading days ending the day prior to closing. In accordance with ASC Topic 323 Investments - Equity Method and Joint Ventures, we have made an election to record our share of the results of operations of Warp Speed on a three-month lag. Accordingly, the transaction will not impact our financial statements until the first quarter of 2023. In October 2022, we entered into a credit agreement with Raymond James Bank ("Raymond James"). Pursuant to the credit agreement, Raymond James has extended to us a senior term loan in the aggregate principal amount of up to $10 million. In connection with the closing of the Warp Speed transaction, we borrowed $10 million and paid Raymond James Bank an upfront fee of 1% of the loan amount. The loan will bear interest per annum at a rate equal to 2.75%, plus term secured overnight financing rate, which will reset monthly. Accrued interest is payable on the last business day of each month, beginning with October 31, 2022, with the then outstanding principal balance of the loan payable on the last business day of each quarter in the amount of $125,000 during the first year and $250,000 thereafter. The loan will mature 30 months after the effective date of the credit agreement, unless accelerate earlier upon an event of default.
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Nature of Operations and Basis of Presentation (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The financial statements are consolidated to include the accounts of MVB and its subsidiaries, including the Bank and the Bank’s subsidiaries. |
Basis of Presentation | In our opinion, the accompanying consolidated financial statements contain all normal recurring adjustments necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with instructions for Form 10-Q and Article 10 of Regulation S-X of the SEC. All significant intercompany accounts and transactions have been eliminated in consolidated financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. The consolidated balance sheet as of December 31, 2021 has been derived from audited financial statements included in the 2021 Form 10-K. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and notes thereto included in the 2021 Form 10-K. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. |
Reclassification | In certain instances, amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation. |
Subsequent Events | We have evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance in November 2018, ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, in April 2019, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, in May 2019, ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 and in November 2019, ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, all of which clarifies codification and corrects unintended application of the guidance. The new guidance replaces the incurred loss impairment methodology in current U.S. GAAP with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit impaired ("PCI") loans will receive an allowance account at the acquisition date that represents a component of the purchase price allocation. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses, with such allowance limited to the amount by which fair value is below amortized cost. The guidance was initially effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. On November 15, 2019, the FASB issued ASU 2019-10, Financial Investments – Credit Issues (Topic 326), Derivatives and Hedging (Topic 815) and Leases (Topic 842): Effective Dates, which finalizes a delay in the effective date of the standard for smaller reporting companies (“SRCs”). Effective as of the first quarter of 2022, we no longer qualified as an SRC. However, because we met the criteria to be an SRC as of the issuance date of this guidance, we are eligible for the delay in effective date and plan to adopt this standard for fiscal years ending after December 15, 2022. We currently expect to recognize a one-time cumulative effect adjustment to the ALL as of January 1, 2023, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. In that regard, we have formed a cross-functional implementation team. This cross-functional team is currently in the process of testing the model and completing the implementation plan, which will include assessment and documentation of processes, internal controls and data sources; model testing and documentation; and system configuration, among other things. We are also in the process of implementing a third-party vendor solution to assist us in the application of this standard. The adoption of this standard could result in an increase in the ALL as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Upon adoption of ASU 2016-13, we currently expect to record an increase in our allowance for credit losses of between 15% and 25%, not including any change in unfunded commitment liability; however, the ultimate impact of adoption on our allowance for credit losses could vary significantly from our current estimate as it is influenced by, among other things, the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts as of the adoption date. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide optional expedients and exceptions for certain contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of rate reform. The guidance is effective from the date of issuance until December 31, 2022. The guidance permits entities to not apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationship and the assessment of hedge effectiveness during the transition period. In January 2021, ASU 2021-01 was issued by the FASB and clarifies that certain exceptions in reference rate reform apply to derivatives that are affected by the discounting transition. We will continue to assess the impact as the reference rate transition occurs over the next year. As of September 30, 2022, we had loans totaling $437.98 million that reference LIBOR which will be transitioned to the secured overnight financing rate ("SOFR") effective June 30, 2023. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments eliminate the accounting guidance for troubled debt restructurings ("TDRs") in subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 of the codification to determine whether a modification results in a new loan or a continuation of an existing loan. The amendments also include provisions for disclosure of current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. Gross writeoff information must be included in the vintage disclosures required for public business entities which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivables by year of origination. This amendment is effective concurrently with the amendments in ASU 2016-13 which is currently effective for fiscal years beginning after December 15, 2022. These amendments primarily impact disclosure requirements and we do not believe they will have a material impact on our consolidated financial statements. In March 2022, the SEC released Staff Accounting Bulletin No. 121 ("SAB 121"), which updates the SEC's position regarding the accounting for obligations to safeguard crypto-assets an entity holds for platform users. When a reporting entity holds crypto-assets for platform users and maintains the cryptographic key information necessary to access the crypto-asset, the reporting entity should present a liability on its balance sheet to reflect its obligation to safeguard the crypto-assets held for platform users. The liability represents the loss exposure due to the risks associated with safeguarding crypto-assets. The entity should also record an asset at the same time that recognizes the fair value of the crypto-assets held for its platform users. SAB 121 is effective no later than the first interim or annual period ending after June 15, 2022, with retrospective application as of the beginning of the fiscal year to which the interim or annual period relates. We do not currently expect this update to impact our consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security, and therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot recognize and measure a contractual sale restriction as a separate unit of account and require additional disclosures related to equity securities with contractual sale restrictions. The amendment is effective for fiscal years beginning after December 15, 2023. We do not currently expect these amendments to have a material impact our consolidated financial statements.
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Investment Securities (Tables) |
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Amortized Cost and Fair Values of Investment Securities Available-for-sale | The following tables present amortized cost and fair values of investment securities available-for-sale as of the periods shown:
The following table presents amortized cost and fair values of available-for-sale debt securities by contractual maturity as of the period shown:
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Investments in an Unrealized Loss Position | The following tables disclose the length of time that investments have remained in an unrealized loss position at September 30, 2022 and December 31, 2021:
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Realized Gain (Loss) on Investments | The following table summarizes investment sales, related gains and losses and unrealized holding gains for the periods shown:
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Loans and Allowance for Loan Losses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Loans in the Consolidated Balance Sheet | The following table presents the components of loans as of the periods shown:
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Impaired Loans by Class | The following table presents impaired loans by class segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary as of the periods shown:
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Average Recorded Investment in Impaired Loans and Related Interest Income Recognized | The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods shown:
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Classes of the Loan Portfolio Summarized by the Aggregate Pass and the Criticized Categories | The following table represents the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the periods shown:
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Classes of the Loan Portfolio Summarized by Aging Categories | The following table presents the classes of the loan portfolio summarized by aging categories of performing loans and non-accrual loans as of the periods shown:
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Allowance Activity | The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown:
Substantially all of the charge-offs during nine months ended September 30, 2022 are related to our subprime consumer automobile portfolio of loans. The following table presents the primary segments of our loan portfolio as of the period shown:
The following table presents the primary segments of the ALL segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of the periods shown:
The following table presents the primary segments of our loan portfolio as of the period shown:
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Premises and Equipment (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Premises and Equipment | The following table presents the components of premises and equipment as of the periods shown:
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Summary of Lease Cost | The following table presents lease costs for the periods shown:
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Summary of Operating Lease Liability | For operating leases with initial or remaining terms of one year or more as of September 30, 2022, the following table presents future minimum payments for the twelve month periods ended September 30:
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Equity Method Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | The following table presents summarized income statement information for our equity method investment in ICM for the periods shown:
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Deposits (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposits | The following table presents the components of deposits as of the periods shown:
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Maturities of Time Deposits | The following table presents the maturities of time deposits for the twelve month periods ended September 30:
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Borrowed Funds (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information Related to Short-term Borrowings | The following table presents information related to short-term borrowings as of and for the periods shown:
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Information Related to Repurchase Agreements | The following table presents information related to repurchase agreements as of and for the periods shown:
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Information Related to Subordinated Debt | The following table presents information related to subordinated debt as of and for the periods shown:
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Pension and Supplemental Executive Retirement Plans (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in the Defined Benefit Plan | The following table presents information pertaining to the activity in our defined benefit plan, using the latest available actuarial valuations with a measurement date of September 30, 2022 and 2021 for the periods shown:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Values and Estimated Fair Values of Financial Instruments | The following table presents the carrying values and estimated fair values of our financial instruments as of the periods shown:
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Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair value of assets and liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recurring Level III Assets | The following table represents recurring Level III assets, consisting of only municipal securities, as of the periods shown:
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Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown:
1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value is determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities.
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Recurring | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets and liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value | The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy:
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Non-recurring | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets and liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value | The following table presents the fair value of these assets as of the periods shown:
|
Earnings per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Income Per Common Share | The following table presents our calculation of EPS for the periods shown:
|
Comprehensive Income (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | The following tables present the reclassified components of accumulated other comprehensive income (“AOCI”) as of and for the periods shown:
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Components of Accumulated Other Comprehensive Income |
|
Segment Reporting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information About the Reportable Segments and Reconciliation to the Consolidated Financial Statements | The following tables present information about the reportable segments and reconciliation to the consolidated financial statements for the periods shown:
|
Investment Securities - Summary of Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Available for sale, Amortized Cost | ||
Amortized Cost | $ 416,217 | $ 421,272 |
Available for sale, Fair Value | ||
Fair Value | 366,742 | 421,466 |
Total debt securities | ||
Available for sale, Amortized Cost | ||
Within one year | 0 | |
After one year, but within five years | 133,910 | |
After five years, but within ten years | 40,660 | |
After ten years | 240,812 | |
Amortized Cost | 415,382 | 420,394 |
Available for sale, Fair Value | ||
Within one year | 0 | |
After one year, but within five years | 123,295 | |
After five years, but within ten years | 36,742 | |
After ten years | 205,870 | |
Fair Value | $ 365,907 | $ 420,588 |
Investment Securities - Gains (Losses) on Sales of Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of available-for-sale securities | $ 0 | $ 28,049 | $ 60,635 | $ 103,365 |
Gains, gross | 0 | 547 | 717 | 3,411 |
Losses, gross | 0 | 18 | 67 | 31 |
Proceeds from sales of equity securities | 161 | 0 | 1,261 | 61 |
Gain, gross | 58 | 0 | 158 | 5 |
Losses, gross | 214 | 0 | 214 | 0 |
Unrealized holding gains (losses) on equity securities | $ (61) | $ 536 | $ (146) | $ 1,750 |
Loans and Allowance for Loan Losses - Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Activity in the allowance for loan losses: | ||
Collectively evaluated for impairment | $ 2,443,897 | $ 1,726,961 |
Purchased credit impaired loans | ||
Activity in the allowance for loan losses: | ||
Collectively evaluated for impairment | 4,400 | |
Unpaid principal balance of disposals | 13,400 | |
Additional accretion income recognized | $ 1,000 |
Loans and Allowance for Loan Losses - PPP Loans and CARES Act Deferrals (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Financing Receivable, Impaired [Line Items] | ||
Total loans | $ 2,470,438 | $ 1,871,447 |
SBA PPP | ||
Financing Receivable, Impaired [Line Items] | ||
Original balance of loans | 9,300 | |
Total loans | $ 10,800 |
Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Premises and equipment | ||
Gross premises and equipment | $ 44,031 | $ 41,301 |
Accumulated depreciation | (19,363) | (16,249) |
Premises and equipment, net | 24,668 | 25,052 |
Land | ||
Premises and equipment | ||
Gross premises and equipment | 3,465 | 3,465 |
Buildings and improvements | ||
Premises and equipment | ||
Gross premises and equipment | 13,393 | 13,393 |
Furniture, fixtures and equipment | ||
Premises and equipment | ||
Gross premises and equipment | 17,968 | 16,841 |
Software | ||
Premises and equipment | ||
Gross premises and equipment | 5,805 | 4,176 |
Construction in progress | ||
Premises and equipment | ||
Gross premises and equipment | 437 | 531 |
Leasehold improvements | ||
Premises and equipment | ||
Gross premises and equipment | $ 2,963 | $ 2,895 |
Premises and Equipment - Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 445 | $ 504 | $ 1,335 | $ 1,458 |
Short-term lease cost | 8 | 2 | 22 | 4 |
Variable lease cost | 10 | 9 | 29 | 29 |
Amortization of right-of-use assets, finance leases | 13 | 16 | 42 | 44 |
Interest on lease liabilities, finance leases | 0 | 0 | 0 | 2 |
Total lease cost | $ 476 | $ 531 | $ 1,428 | $ 1,537 |
Premises and Equipment - Summary of Lease Liability (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Operating Leases | ||
2023 | $ 1,682 | |
2024 | 1,578 | |
2025 | 1,572 | |
2026 | 1,587 | |
2027 | 1,608 | |
2028 and thereafter | 10,521 | |
Total future minimum lease payments | 18,548 | |
Less: Amounts representing interest | (3,229) | |
Present value of net future minimum lease payments | $ 15,319 | $ 18,500 |
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 1,411,772 | $ 1,120,433 |
Interest-bearing demand | 763,401 | 651,016 |
Savings and money markets | 306,170 | 510,068 |
Time deposits, including CDs and IRAs | 215,615 | 96,088 |
Total deposits | 2,696,958 | 2,377,605 |
Time deposits that meet or exceed the FDIC insurance limit | $ 6,864 | $ 9,573 |
Deposits - Maturities (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
Deposits [Abstract] | |
2023 | $ 196,045 |
2024 | 11,071 |
2025 | 5,228 |
2026 | 986 |
2027 | 2,285 |
Total | 215,615 |
Overdrawn deposits | $ 1,300 |
Borrowed Funds - Subordinated Debt (Details) - USD ($) $ in Thousands |
1 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2021 |
Nov. 30, 2020 |
Sep. 30, 2022 |
Dec. 31, 2021 |
Mar. 31, 2007 |
|
Subordinated Debt | |||||
Balance at end of period | $ 73,222 | $ 73,030 | |||
Subordinated Debt | |||||
Subordinated Debt | |||||
Balance at end of period | 73,222 | 73,030 | |||
Average balance during the period | 73,126 | 51,149 | |||
Maximum month-end balance | $ 73,222 | $ 73,030 | |||
Weighted-average rate during the period | 4.18% | 4.28% | |||
Weighted-average rate at end of period | 3.88% | 3.71% | |||
Face amount of debt issued | $ 30,000 | $ 40,000 | |||
Term of debt instrument | 10 years | 10 years | |||
Interest rate on debt security | 3.25% | 4.25% | |||
Subordinated Debt | SOFR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 2.54% | 4.01% | |||
Subordinated Debt | Subordinated Debentures | |||||
Subordinated Debt | |||||
Face amount of debt issued | $ 4,000 | ||||
Subordinated Debt | Subordinated Debentures | LIBOR | |||||
Subordinated Debt | |||||
Variable rate basis spread | 1.62% |
Pension and Supplemental Executive Retirement Plans - Narrative (Details) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022
USD ($)
installment
|
Dec. 31, 2021
USD ($)
|
May 31, 2014 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to re-measure pension obligation | 4.50% | ||
Supplemental Employee Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employment period | 3 years | ||
Benefit obligation | $ 1,800 | ||
Number of equal consecutive installments | installment | 180 | ||
Consecutive installments, amount | $ 10 | ||
Discount rate used to re-measure pension obligation | 4.00% | ||
Accrued liability | $ 1,300 | $ 1,300 |
Pension and Supplemental Executive Retirement Plans - Defined Benefit Plan Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Components of net periodic pension cost | ||||
Interest cost | $ 85 | $ 78 | $ 255 | $ 234 |
Expected return on plan assets | (167) | (118) | (501) | (354) |
Amortization of net actuarial loss | 107 | 127 | 321 | 381 |
Net periodic benefit cost | 25 | 87 | 75 | 261 |
Contributions paid | 0 | 0 | 0 | 3,835 |
Service cost | 0 | 0 | 0 | 0 |
Amortization of prior service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Pending Acquisition - Narrative (Details) |
1 Months Ended |
---|---|
Aug. 31, 2022
shares
| |
Integrated Financial Holdings, Inc. | |
Business Acquisition [Line Items] | |
Shares of MVB common stock to be received by IFH shareholders per share of IFH common stock (in shares) | 1.21 |
Subsequent Events (Details) - USD ($) $ in Thousands |
Oct. 07, 2022 |
Oct. 01, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Warp Speed Holdings LLC | |||
Subsequent Event [Line Items] | |||
Ownership percentage | 37.50% | ||
Subsequent Event | Warp Speed Holdings LLC | |||
Subsequent Event [Line Items] | |||
Cash consideration | $ 38,400 | ||
Consideration issued as equity (in shares) | 313,030 | ||
Consideration issued as equity | $ 9,600 | ||
Number of trading days | 20 days | ||
Subsequent Event | Senior Loans | Raymond James Senior Term Loan | |||
Subsequent Event [Line Items] | |||
Face amount of debt issued | $ 10,000 | ||
Proceeds from long term debt | $ 10,000 | ||
Upfront fee (as a percent) | 1.00% | ||
Interest rate on debt security | 2.75% | ||
Term of debt instrument | 30 months | ||
Subsequent Event | Senior Loans | Raymond James Senior Term Loan | First year | |||
Subsequent Event [Line Items] | |||
Periodic principal payment | $ 125 | ||
Subsequent Event | Senior Loans | Raymond James Senior Term Loan | Thereafter | |||
Subsequent Event [Line Items] | |||
Periodic principal payment | $ 250 |
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