(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||||||||
| |||||||||||||||||
(Address of principal executive office) | (Zip Code) |
Securities registered pursuant to 12(b) of the Act: | ||||||||
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | ☒ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
PART I | ||||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
PART II | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CONDITION |
(in thousands, except share data; unaudited) | September 30, 2023 | December 31, 2022 | ||||||
Assets | ||||||||
Cash, cash equivalents and restricted cash | $ | $ | ||||||
Investment securities: | ||||||||
Held-to-maturity, at amortized cost (net of | ||||||||
Available-for-sale, at fair value (net of | ||||||||
Total investment securities | ||||||||
Loans, at amortized cost | ||||||||
Allowance for credit losses on loans | ( | ( | ||||||
Loans, net of allowance for credit losses on loans | ||||||||
Goodwill | ||||||||
Bank-owned life insurance | ||||||||
Operating lease right-of-use assets | ||||||||
Bank premises and equipment, net | ||||||||
Core deposit intangible, net | ||||||||
Other real estate owned | ||||||||
Interest receivable and other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest bearing | $ | $ | ||||||
Interest bearing | ||||||||
Transaction accounts | ||||||||
Savings accounts | ||||||||
Money market accounts | ||||||||
Time accounts | ||||||||
Total deposits | ||||||||
Short-term borrowings and other obligations | ||||||||
Operating lease liabilities | ||||||||
Interest payable and other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingent liabilities (Note 8) | ||||||||
Stockholders' Equity | ||||||||
Preferred stock, no par value, Authorized - | ||||||||
Common stock, no par value, Authorized - | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss, net of taxes | ( | ( | ||||||
Total stockholders' equity | ||||||||
Total liabilities and stockholders' equity | $ | $ |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||
(in thousands, except per share amounts; unaudited) | September 30, 2023 | June 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||||
Interest income | ||||||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | $ | |||||||||||||||
Interest on investment securities | ||||||||||||||||||||
Interest on federal funds sold and due from banks | ||||||||||||||||||||
Total interest income | ||||||||||||||||||||
Interest expense | ||||||||||||||||||||
Interest on interest-bearing transaction accounts | ||||||||||||||||||||
Interest on savings accounts | ||||||||||||||||||||
Interest on money market accounts | ||||||||||||||||||||
Interest on time accounts | ||||||||||||||||||||
Interest on borrowings and other obligations | ||||||||||||||||||||
Total interest expense | ||||||||||||||||||||
Net interest income | ||||||||||||||||||||
Provision for (reversal of) credit losses on loans | ( | |||||||||||||||||||
Reversal of credit losses on unfunded loan commitments | ( | ( | ( | |||||||||||||||||
Net interest income after provision for (reversal of) credit losses | ||||||||||||||||||||
Non-interest income | ||||||||||||||||||||
Wealth Management and Trust Services | ||||||||||||||||||||
Service charges on deposit accounts | ||||||||||||||||||||
Debit card interchange fees, net | ||||||||||||||||||||
Earnings on bank-owned life insurance, net | ||||||||||||||||||||
Dividends on Federal Home Loan Bank stock | ||||||||||||||||||||
Merchant interchange fees, net | ||||||||||||||||||||
Gains (losses) on sale of investment securities, net | ( | ( | ||||||||||||||||||
Other income | ||||||||||||||||||||
Total non-interest income | ||||||||||||||||||||
Non-interest expense | ||||||||||||||||||||
Salaries and related benefits | ||||||||||||||||||||
Occupancy and equipment | ||||||||||||||||||||
Data processing | ||||||||||||||||||||
Professional services | ||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Federal Deposit Insurance Corporation insurance | ||||||||||||||||||||
Information technology | ||||||||||||||||||||
Amortization of core deposit intangible | ||||||||||||||||||||
Directors' expense | ||||||||||||||||||||
Charitable contributions | ||||||||||||||||||||
Other real estate owned | ||||||||||||||||||||
Other expense | ||||||||||||||||||||
Total non-interest expense | ||||||||||||||||||||
Income before provision for income taxes | ||||||||||||||||||||
Provision for income taxes | ||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | |||||||||||||||
Net income per common share: | ||||||||||||||||||||
Basic | $ | $ | $ | $ | $ | |||||||||||||||
Diluted | $ | $ | $ | $ | $ | |||||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Diluted | ||||||||||||||||||||
Comprehensive (loss) income: | ||||||||||||||||||||
Net income | $ | $ | $ | $ | $ | |||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Change in net unrealized gains or losses on available-for-sale securities | ( | ( | ( | ( | ( | |||||||||||||||
Reclassification adjustment for losses (gains) on available-for-sale securities included in net income | ||||||||||||||||||||
Reclassification adjustment for gains or losses for fair value hedge | ||||||||||||||||||||
Net unrealized losses on securities transferred from available-for-sale to held-to-maturity | ( | |||||||||||||||||||
Amortization of net unrealized losses on securities transferred from available-for-sale to held-to-maturity | ||||||||||||||||||||
Other comprehensive (loss) income, before tax | ( | ( | ( | ( | ( | |||||||||||||||
Deferred tax (benefit) expense | ( | ( | ( | ( | ( | |||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ( | ( | ( | ( | |||||||||||||||
Total comprehensive (loss) income | $ | ( | $ | ( | $ | ( | $ | $ | ( |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||
For the three months ended September 30, 2023 and 2022 |
(in thousands, except share data; unaudited) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Total | |||||||||||||
Shares | Amount | ||||||||||||||||
Three months ended September 30, 2023 | |||||||||||||||||
Balance at July 1, 2023 | $ | $ | $ | ( | $ | ||||||||||||
Net income | — | — | — | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||
Stock issued under employee stock purchase plan | — | — | |||||||||||||||
Stock issued under employee stock ownership plan | — | — | |||||||||||||||
Restricted stock granted | — | — | — | — | |||||||||||||
Restricted stock forfeited / cancelled | ( | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | — | — | ||||||||||||||
Stock-based compensation - restricted stock | — | — | — | ||||||||||||||
Cash dividends paid on common stock ($ | — | — | ( | — | ( | ||||||||||||
Stock issued in payment of director fees | — | — | |||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ | ||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||
Balance at July 1, 2022 | $ | $ | $ | ( | $ | ||||||||||||
Net income | — | — | — | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | — | — | — | ||||||||||||||
Stock issued under employee stock purchase plan | — | — | |||||||||||||||
Stock issued under employee stock ownership plan | — | — | |||||||||||||||
Stock-based compensation - stock options | — | — | — | ||||||||||||||
Stock-based compensation - restricted stock | — | — | — | ||||||||||||||
Cash dividends paid on common stock ($ | — | — | ( | — | ( | ||||||||||||
Stock purchased by directors under director stock plan | — | — | |||||||||||||||
Stock issued in payment of director fees | — | — | |||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | ( | $ |
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||||
For the nine months ended September 30, 2023 and 2022 | |||||||||||||||||
(in thousands, except share data; unaudited) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Total | |||||||||||||
Shares | Amount | ||||||||||||||||
Nine months ended September 30, 2023 | |||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | ( | $ | ||||||||||||
Net income | — | — | — | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | — | — | |||||||||||||||
Stock issued under employee stock purchase plan | — | — | |||||||||||||||
Stock issued under employee stock ownership plan | — | — | |||||||||||||||
Restricted stock granted | — | — | — | — | |||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | ( | ( | — | — | ( | ||||||||||||
Restricted stock forfeited / cancelled | ( | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | — | — | ||||||||||||||
Stock-based compensation - restricted stock | — | — | — | ||||||||||||||
Cash dividends paid on common stock ($ | — | — | ( | — | ( | ||||||||||||
Stock issued in payment of director fees | — | — | |||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ | ||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||
Balance at January 1, 2022 | $ | $ | $ | ( | $ | ||||||||||||
Net income | — | — | — | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | ( | ( | ||||||||||||
Stock options exercised, net of shares surrendered for cashless exercises and tax withholdings | — | — | |||||||||||||||
Stock issued under employee stock purchase plan | — | — | |||||||||||||||
Stock issued under employee stock ownership plan | — | — | |||||||||||||||
Restricted stock granted | — | — | — | — | |||||||||||||
Restricted stock surrendered for tax withholdings upon vesting | ( | ( | — | — | ( | ||||||||||||
Restricted stock forfeited / cancelled | ( | — | — | — | — | ||||||||||||
Stock-based compensation - stock options | — | — | — | ||||||||||||||
Stock-based compensation - restricted stock | — | — | — | ||||||||||||||
Cash dividends paid on common stock ($ | — | — | ( | — | ( | ||||||||||||
Stock purchased by directors under director stock plan | — | — | |||||||||||||||
Stock issued in payment of director fees | — | — | |||||||||||||||
Stock repurchased, including commissions | ( | ( | — | — | ( | ||||||||||||
Balance at September 30, 2022 | $ | $ | $ | ( | $ | ||||||||||||
The accompanying notes are an integral part of these consolidated financial statements (unaudited). | |||||||||||||||||
BANK OF MARIN BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
For the nine months ended September 30, 2023 and 2022 |
(in thousands; unaudited) | 2023 | 2022 | ||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for (reversal of) credit losses on loans | ( | |||||||
Reversal of credit losses on unfunded loan commitments | ( | ( | ||||||
Noncash contribution expense to employee stock ownership plan | ||||||||
Noncash director compensation expense | ||||||||
Stock-based compensation expense | ||||||||
Amortization of core deposit intangible | ||||||||
Amortization of investment security premiums, net of accretion of discounts | ||||||||
(Accretion of discounts) amortization of premiums on acquired loans, net | ( | |||||||
Net change in deferred loan origination costs/fees | ( | ( | ||||||
Write-down of other real estate owned | ||||||||
(Gains) losses on sale of investment securities, net | ( | |||||||
Depreciation and amortization | ||||||||
Earnings on bank-owned life insurance policies | ( | ( | ||||||
Net changes in interest receivable and other assets | ||||||||
Net changes in interest payable and other liabilities | ( | |||||||
Total adjustments | ||||||||
Net cash provided by operating activities | ||||||||
Cash Flows from Investing Activities: | ||||||||
Purchase of held-to-maturity securities | ( | |||||||
Purchase of available-for-sale securities | ( | |||||||
Proceeds from sale of available-for-sale securities | ||||||||
Proceeds from paydowns/maturities of held-to-maturity securities | ||||||||
Proceeds from paydowns/maturities of available-for-sale securities | ||||||||
Proceeds from sale of Visa Inc. Class B restricted common stock | ||||||||
Decrease in loans receivable, net | ||||||||
Proceeds from bank-owned life insurance policies | ||||||||
Purchase of premises and equipment | ( | ( | ||||||
Proceeds from sale of other real estate owned | ||||||||
Cash paid for low income housing tax credit investment | ( | ( | ||||||
Net cash provided by (used in) investing activities | ( | |||||||
Cash Flows from Financing Activities: | ||||||||
Net (decrease) increase in deposits | ( | |||||||
Proceeds from short-term borrowings, net | ||||||||
Repayment of finance lease obligations | ( | ( | ||||||
Proceeds from stock options exercised | ||||||||
Restricted stock surrendered for tax withholdings upon vesting | ( | ( | ||||||
Cash dividends paid on common stock | ( | ( | ||||||
Stock repurchased, including commissions | ( | |||||||
Proceeds from stock issued under employee and director stock purchase plans | ||||||||
Net cash (used in) provided by financing activities | ( | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | |||||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | |||||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid in interest | $ | $ | ||||||
Cash paid in income taxes | $ | $ | ||||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Change in net unrealized gains or losses on available-for-sale securities | $ | ( | $ | ( | ||||
Securities transferred from available-for-sale to held-to-maturity, at fair value | $ | $ | ||||||
Amortization of net unrealized loss on available-for-sale securities transferred to held-to-maturity | $ | $ | ||||||
Stock issued to employee stock ownership plan | $ | $ | ||||||
Restricted cash1 | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||
(in thousands, except per share data) | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||
Weighted average basic common shares outstanding | |||||||||||||||||
Potentially dilutive common shares related to: | |||||||||||||||||
Stock options | |||||||||||||||||
Unvested restricted stock awards | |||||||||||||||||
Weighted average diluted common shares outstanding | |||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||
Basic EPS | $ | $ | $ | $ | |||||||||||||
Diluted EPS | $ | $ | $ | $ | |||||||||||||
Weighted average anti-dilutive common shares not included in the calculation of diluted EPS |
(in thousands) Description of Financial Instruments | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Measurement Categories: Changes in Fair Value Recorded In1 | ||||||||||||
September 30, 2023 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | $ | $ | $ | OCI | ||||||||||||
SBA-backed securities | $ | $ | $ | $ | OCI | ||||||||||||
Debentures of government sponsored agencies | $ | $ | $ | $ | OCI | ||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | OCI | ||||||||||||
Obligations of state and political subdivisions | $ | $ | $ | $ | OCI | ||||||||||||
Corporate bonds | $ | $ | $ | $ | OCI | ||||||||||||
Derivative financial assets (interest rate contracts - loans) | $ | $ | $ | $ | NI | ||||||||||||
Derivative financial assets (interest rate contracts - AFS securities) | $ | $ | $ | $ | NI | ||||||||||||
December 31, 2022 | |||||||||||||||||
Securities available-for-sale: | |||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | $ | $ | $ | $ | OCI | ||||||||||||
SBA-backed securities | $ | $ | $ | $ | OCI | ||||||||||||
Debentures of government sponsored agencies | $ | $ | $ | $ | OCI | ||||||||||||
U.S. Treasury securities | $ | $ | $ | $ | OCI | ||||||||||||
Obligations of state and political subdivisions | $ | $ | $ | $ | OCI | ||||||||||||
Corporate bonds | $ | $ | $ | $ | OCI | ||||||||||||
Asset-backed securities | $ | $ | $ | $ | OCI | ||||||||||||
Derivative financial assets (interest rate contracts - loans) | $ | $ | $ | $ | NI | ||||||||||||
(in thousands) | Carrying Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
September 30, 2023 | ||||||||||||||
Other real estate owned | $ | $ | $ | $ | ||||||||||
December 31, 2022 | ||||||||||||||
Other real estate owned | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(in thousands) | Carrying Amounts | Fair Value | Fair Value Hierarchy | Carrying Amounts | Fair Value | Fair Value Hierarchy | |||||||||||||||||
Financial assets (recorded at amortized cost): | |||||||||||||||||||||||
Cash and cash equivalents | $ | $ | Level 1 | $ | $ | Level 1 | |||||||||||||||||
Investment securities held-to-maturity | Level 2 | Level 2 | |||||||||||||||||||||
Loans, net | Level 3 | Level 3 | |||||||||||||||||||||
Interest receivable | Level 2 | Level 2 | |||||||||||||||||||||
Financial liabilities (recorded at amortized cost): | |||||||||||||||||||||||
Time deposits | Level 2 | Level 2 | |||||||||||||||||||||
Federal Home Loan Bank short-term borrowings | Level 2 | Level 2 | |||||||||||||||||||||
Federal Reserve Bank - Bank Term Funding Program ("BTFP") | Level 2 | Level 2 | |||||||||||||||||||||
Interest payable | Level 2 | Level 2 |
Held-to-maturity: | Amortized Cost 1 | Allowance for Credit Losses | Net Carrying Amount | Gross Unrealized | Fair Value | |||||||||||||||
(in thousands) | Gains | (Losses) | ||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | ||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
CMOs issued by FHLMC | ( | |||||||||||||||||||
CMOs issued by FNMA | ( | |||||||||||||||||||
CMOs issued by GNMA | ( | |||||||||||||||||||
SBA-backed securities | ( | |||||||||||||||||||
Debentures of government-sponsored agencies | ( | |||||||||||||||||||
Obligations of state and political subdivisions | ( | |||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||
Total held-to-maturity | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
December 31, 2022 | ||||||||||||||||||||
Securities of U.S. government-sponsored enterprises: | ||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
CMOs issued by FHLMC | ( | |||||||||||||||||||
CMOs issued by FNMA | ( | |||||||||||||||||||
CMOs issued by GNMA | ( | |||||||||||||||||||
SBA-backed securities | ( | |||||||||||||||||||
Debentures of government-sponsored agencies | ( | |||||||||||||||||||
Obligations of state and political subdivisions | ( | |||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||
Total held-to-maturity | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
1 Amortized cost and fair values exclude accrued interest receivable of $ | ||||||||||||||||||||
Moody's / S&P | Obligations of state and political subdivisions | Corporate bonds | ||||||||||||
(in thousands) | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||
Aaa / AAA | $ | $ | $ | $ | ||||||||||
Aa2 / AA | ||||||||||||||
A2 / A | ||||||||||||||
Total | $ | $ | $ | $ |
Available-for-sale: | Amortized Cost 1 | Gross Unrealized | Allowance for Credit Losses | Fair Value | |||||||||||||
(in thousands) | Gains | (Losses) | |||||||||||||||
September 30, 2023 | |||||||||||||||||
Securities of U.S. government-sponsored enterprises: | |||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | $ | $ | ( | $ | $ | |||||||||||
CMOs issued by FHLMC | ( | ||||||||||||||||
CMOs issued by FNMA | ( | ||||||||||||||||
CMOs issued by GNMA | ( | ||||||||||||||||
SBA-backed securities | ( | ||||||||||||||||
Debentures of government- sponsored agencies | ( | ||||||||||||||||
U.S. Treasury securities | ( | ||||||||||||||||
Obligations of state and political subdivisions | ( | ||||||||||||||||
Corporate bonds | ( | ||||||||||||||||
$ | $ | $ | ( | $ | $ | ||||||||||||
December 31, 2022 | |||||||||||||||||
Securities of U.S. government-sponsored enterprises: | |||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | $ | $ | ( | $ | $ | |||||||||||
CMOs issued by FHLMC | ( | ||||||||||||||||
CMOs issued by FNMA | ( | ||||||||||||||||
CMOs issued by GNMA | ( | ||||||||||||||||
SBA-backed securities | ( | ||||||||||||||||
Debentures of government- sponsored agencies | ( | ||||||||||||||||
U.S. Treasury securities | ( | ||||||||||||||||
Obligations of state and political subdivisions | ( | ||||||||||||||||
Corporate bonds | ( | ||||||||||||||||
Asset-backed securities | ( | ||||||||||||||||
$ | $ | $ | ( | $ | $ | ||||||||||||
1 Amortized cost and fair value exclude accrued interest receivable of $ |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||
Within one year | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
After one but within five years | |||||||||||||||||||||||||||||||||||
After five years through ten years | |||||||||||||||||||||||||||||||||||
After ten years | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||
(in thousands) | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sales proceeds | $ | $ | $ | $ | |||||||||||||
Gross realized gains | |||||||||||||||||
Gross realized losses | ( | ( | ( | ( | |||||||||||||
Sale of equity securities: 1 | |||||||||||||||||
Sales proceeds | |||||||||||||||||
Gross realized gain | |||||||||||||||||
(in thousands) | September 30, 2023 | December 31, 2022 | ||||||
Pledged to the State of California: | ||||||||
Secure public deposits in compliance with the Local Agency Security Program | $ | $ | ||||||
Collateral for trust deposits | ||||||||
Collateral for Wealth Management and Trust Services checking account | ||||||||
Total investment securities pledged to the State of California | ||||||||
Bankruptcy trustee deposits pledged with Federal Reserve Bank | ||||||||
Pledged to FHLB Securities-Backed Credit Program | ||||||||
Pledged to the Federal Reserve BTFP | ||||||||
Total pledged investment securities | $ | $ |
September 30, 2023 | < 12 continuous months | ≥ 12 continuous months | Total securities in a loss position | |||||||||||||||||||||||
(in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||
CMOs issued by FHLMC | ( | ( | ( | |||||||||||||||||||||||
CMOs issued by FNMA | ( | ( | ( | |||||||||||||||||||||||
CMOs issued by GNMA | ( | ( | ( | |||||||||||||||||||||||
SBA-backed securities | ( | ( | ||||||||||||||||||||||||
Debentures of government-sponsored agencies | ( | ( | ||||||||||||||||||||||||
Obligations of state and political subdivisions | ( | ( | ( | |||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||
Total held-to-maturity | ( | ( | ( | |||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | ( | ( | ||||||||||||||||||||||||
CMOs issued by FHLMC | ( | ( | ||||||||||||||||||||||||
CMOs issued by FNMA | ( | ( | ||||||||||||||||||||||||
CMOs issued by GNMA | ( | ( | ||||||||||||||||||||||||
SBA-backed securities | ( | ( | ||||||||||||||||||||||||
Debentures of government- sponsored agencies | ( | ( | ||||||||||||||||||||||||
U.S. Treasury securities | ( | ( | ||||||||||||||||||||||||
Obligations of state and political subdivisions | ( | ( | ( | |||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||
Total available-for-sale | ( | ( | ( | |||||||||||||||||||||||
Total securities at loss position | $ | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2022 | < 12 continuous months | ≥ 12 continuous months | Total securities in a loss position | |||||||||||||||||||||||
(in thousands) | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | ||||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | $ | $ | ( | $ | $ | ( | $ | $ | ( | |||||||||||||||||
CMOs issued by FHLMC | ( | ( | ( | |||||||||||||||||||||||
CMOs issued by FNMA | ( | ( | ||||||||||||||||||||||||
CMOs issued by GNMA | ( | ( | ( | |||||||||||||||||||||||
SBA-backed securities | ( | ( | ||||||||||||||||||||||||
Debentures of government- sponsored agencies | ( | ( | ( | |||||||||||||||||||||||
Obligations of state and political subdivisions | ( | ( | ( | |||||||||||||||||||||||
Corporate Bonds | ( | ( | ||||||||||||||||||||||||
Total held-to-maturity | ( | ( | ( | |||||||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||||
MBS pass-through securities issued by FHLMC, FNMA and GNMA | ( | ( | ( | |||||||||||||||||||||||
CMOs issued by FHLMC | ( | ( | ( | |||||||||||||||||||||||
CMOs issued by FNMA | ( | ( | ( | |||||||||||||||||||||||
CMOs issued by GNMA | ( | ( | ( | |||||||||||||||||||||||
SBA-backed securities | ( | ( | ( | |||||||||||||||||||||||
Debentures of government- sponsored agencies | ( | ( | ( | |||||||||||||||||||||||
U.S. Treasury securities | ( | ( | ||||||||||||||||||||||||
Obligations of state and political subdivisions | ( | ( | ( | |||||||||||||||||||||||
Corporate Bonds | ( | ( | ||||||||||||||||||||||||
Asset-backed securities | ( | ( | ||||||||||||||||||||||||
Total available-for-sale | ( | ( | ( | |||||||||||||||||||||||
Total securities at loss position | $ | $ | ( | $ | $ | ( | $ | $ | ( |
(in thousands) | September 30, 2023 | December 31, 2022 | ||||||
Commercial and industrial | $ | $ | ||||||
Real estate: | ||||||||
Commercial owner-occupied | ||||||||
Commercial non-owner occupied | ||||||||
Construction | ||||||||
Home equity | ||||||||
Other residential | ||||||||
Installment and other consumer loans | ||||||||
Total loans, at amortized cost 1 | ||||||||
Allowance for credit losses on loans | ( | ( | ||||||
Total loans, net of allowance for credit losses on loans | $ | $ |
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
September 30, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Gross current period charge-offs | $ | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||
Commercial real estate, owner-occupied: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total commercial real estate, owner-occupied | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial real estate, non-owner occupied: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total commercial real estate, non-owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
September 30, 2023 | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total construction | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Home equity: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total home equity | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Other residential: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total other residential | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Installment and other consumer: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total installment and other consumer | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Gross current period charge-offs | $ | ( | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | $ | ( | ||||||||||||
Total loans: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Special Mention | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Substandard | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Totals | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total gross current period charge-offs | $ | ( | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
(in thousands) | Term Loans - Amortized Cost by Origination Year | Revolving Loans Amortized Cost | ||||||||||||||||||||||||
December 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total commercial and industrial | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial real estate, owner-occupied: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Doubtful | ||||||||||||||||||||||||||
Total commercial real estate, owner-occupied | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Commercial real estate, non-owner occupied: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Special Mention | ||||||||||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total commercial real estate, non-owner occupied | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Construction: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total construction | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Home equity: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total home equity | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Other residential: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total other residential | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Installment and other consumer: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Substandard | ||||||||||||||||||||||||||
Total installment and other consumer | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total loans: | ||||||||||||||||||||||||||
Pass and Watch | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Special Mention | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Substandard | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total Doubtful | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Totals | $ | $ | $ | $ | $ | $ | $ | $ |
Loan Aging Analysis by Class | ||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, non-owner occupied | Construction | Home equity | Other residential | Installment and other consumer | Total | ||||||||||||||||||
September 30, 2023 | ||||||||||||||||||||||||||
30-59 days past due | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||
90 days or more past due | ||||||||||||||||||||||||||
Total past due | ||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||
Total loans 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non-accrual loans 2 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non-accrual loans with no allowance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
30-59 days past due | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
60-89 days past due | ||||||||||||||||||||||||||
90 days or more past due | ||||||||||||||||||||||||||
Total past due | ||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||
Total loans 1 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non-accrual loans 2 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non-accrual loans with no allowance | $ | $ | $ | $ | $ | $ | $ | $ |
Amortized Cost by Collateral Type | |||||||||||||||||
(in thousands) | Commercial Real Estate | Residential Real Estate | Other | Total 1 | Allowance for Credit Losses | ||||||||||||
September 30, 2023 | |||||||||||||||||
Commercial real estate, owner-occupied | $ | $ | $ | $ | $ | ||||||||||||
Commercial real estate, non-owner occupied | |||||||||||||||||
Home equity | |||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||
December 31, 2022 | |||||||||||||||||
Commercial real estate, owner-occupied | $ | $ | $ | $ | $ | ||||||||||||
Home equity | |||||||||||||||||
Installment and other consumer | |||||||||||||||||
Total | $ | $ | $ | $ | $ |
(in thousands) | Term Extension | Percent of Portfolio Class Total | ||||||
Three months ended September 30, 2023 | ||||||||
Commercial and industrial | $ | % | ||||||
Commercial owner-occupied | % | |||||||
Total | $ | |||||||
Nine months ended September 30, 2023 | ||||||||
Commercial and industrial | $ | % | ||||||
Commercial owner-occupied | % | |||||||
Total | $ | |||||||
(in thousands) | Weighted-Average Term Extension (in years) | ||||
Three months ended September 30, 2023 | |||||
Commercial and industrial | |||||
Commercial owner-occupied | |||||
Nine months ended September 30, 2023 | |||||
Commercial and industrial | |||||
Commercial owner-occupied | |||||
(in thousands) | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total | Non-Accrual | ||||||||||||||
Three months ended September 30, 2023 | ||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | ||||||||||||||
Commercial owner-occupied | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||
Nine months ended September 30, 2023 | ||||||||||||||||||||
Commercial and industrial | $ | $ | $ | $ | $ | $ | ||||||||||||||
Commercial owner-occupied | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||
Allocation of the Allowance for Credit Losses on Loans | |||||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, non-owner occupied | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||
Modeled expected credit losses | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Qualitative adjustments | |||||||||||||||||||||||||||||
Specific allocations | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Modeled expected credit losses | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Qualitative adjustments | |||||||||||||||||||||||||||||
Specific allocations | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Allowance for Credit Losses on Loans Rollforward | |||||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, non-owner occupied | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
Three months ended September 30, 2023 | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
(Reversal) Provision | ( | ( | ( | ||||||||||||||||||||||||||
(Charge-offs) | ( | ( | ( | ||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Provision (Reversal) | ( | ( | |||||||||||||||||||||||||||
(Charge-offs) | ( | ( | ( | ||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Allowance for Credit Losses on Loans Rollforward | |||||||||||||||||||||||||||||
(in thousands) | Commercial and industrial | Commercial real estate, owner-occupied | Commercial real estate, investor | Construction | Home equity | Other residential | Installment and other consumer | Unallocated | Total | ||||||||||||||||||||
Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Provision (Reversal) | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Provision (Reversal) | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | |||||||||||||
(dollars in thousands) | Outstanding Balance | Weighted Average Rate | Outstanding Balance | Weighted Average Rate | ||||||||||
FHLB - short-term borrowings | $ | % | $ | % | ||||||||||
Federal funds lines of credit | % | % | ||||||||||||
FRBSF - federal funds purchased | % | % | ||||||||||||
FRBSF - short-term borrowings under the BTFP | % | % | ||||||||||||
Other obligations (finance leases) | % | % | ||||||||||||
Total short-term borrowings and other obligations | $ | % | $ | % | ||||||||||
(in thousands) | September 30, 2023 | December 31, 2022 | ||||||
Commercial lines of credit | $ | $ | ||||||
Revolving home equity lines | ||||||||
Undisbursed construction loans | ||||||||
Personal and other lines of credit | ||||||||
Standby letters of credit | ||||||||
Total unfunded loan commitments and standby letters of credit | $ | $ |
(in thousands) | September 30, 2023 | December 31, 2022 | ||||||
Operating leases: | ||||||||
Operating lease right-of-use assets | $ | $ | ||||||
Operating lease liabilities | $ | $ | ||||||
Finance leases: | ||||||||
$ | $ | |||||||
Accumulated amortization | ( | ( | ||||||
Finance lease right-of-use assets, net1 | $ | $ | ||||||
Finance lease liabilities2 | $ | $ | ||||||
1 Included in premises and equipment in the consolidated statements of condition. | ||||||||
2 Included in borrowings and other obligations in the consolidated statements of condition. |
Nine months ended | ||||||||
(in thousands) | September 30, 2023 | September 30, 2022 | ||||||
Right-of-use assets obtained in exchange for operating lease liabilities, net of tenant improvement allowances received | $ | $ | ||||||
Right-of-use assets obtained in exchange for finance lease liabilities | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||
(in thousands) | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | |||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||
Variable lease cost | |||||||||||||||||
Total operating lease cost1 | $ | $ | $ | $ | |||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of right-of-use assets2 | $ | $ | $ | $ | |||||||||||||
Interest on finance lease liabilities3 | |||||||||||||||||
Total finance lease cost | $ | $ | $ | $ | |||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||
1 Included in occupancy and equipment expense in the consolidated statements of comprehensive income. | |||||||||||||||||
2 Included in depreciation and amortization in the consolidated statements of comprehensive income. | |||||||||||||||||
3 Included in interest on borrowings and other obligations in the consolidated statements of comprehensive income. |
(in thousands) | September 30, 2023 | |||||||
Year | Operating Leases | Finance Leases | ||||||
2023 | $ | $ | ||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total minimum lease payments | ||||||||
Amounts representing interest (present value discount) | ( | ( | ||||||
Present value of net minimum lease payments (lease liability) | $ | $ | ||||||
Weighted average remaining term (in years) | ||||||||
Weighted average discount rate | % | % |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
(in thousands) | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
Interest rate swaps - notional amount | $ | $ | $ | $ | |||||||||||||
Interest rate swaps - fair value1 | $ | $ | $ | $ | |||||||||||||
Loans receivable: | |||||||||||||||||
Interest rate contracts - notional amount | $ | $ | $ | $ | |||||||||||||
Interest rate contracts - fair value1 | $ | $ | $ | $ |
Carrying Amounts of Hedged Assets | Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets | ||||||||||||||||
(in thousands) | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||
Available-for-sale securities 1 | $ | $ | $ | ( | $ | ||||||||||||
Loans receivable 2 | $ | $ | $ | ( | $ | ( | |||||||||||
1 Carrying value equals the amortized cost basis of the securities underlying the hedge relationship, which is the book value net of the fair value hedge adjustment. Amortized cost excludes accrued interest totaling $ | |||||||||||||||||
2 Carrying value equals the amortized cost basis of the loans underlying the hedge relationship, which is the loan balance net of deferred loan origination fees and cost and the fair value hedge adjustment. Amortized cost excludes accrued interest, which was not material. |
Three months ended | Nine months ended | |||||||||||||
(in thousands) | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | ||||||||||
Interest on investment securities 1 | ||||||||||||||
Increase (decrease) in fair value of interest rate swaps hedging available-for-sale securities | $ | $ | $ | $ | ||||||||||
Receivable (payment) on interest rate swaps | ||||||||||||||
(Decrease) increase in carrying value included in the hedged available-for-sale securities | ( | ( | ||||||||||||
Net gain (loss) recognized in interest income on investment securities | $ | $ | $ | $ | ||||||||||
Interest and fees on loans 1 | ||||||||||||||
Increase (decrease) in fair value of interest rate swaps hedging loans receivable | $ | $ | $ | $ | ||||||||||
Receivable (payment) on interest rate swaps | ( | ( | ||||||||||||
(Decrease) increase in carrying value included in the hedged loans | ( | ( | ( | ( | ||||||||||
Decrease in value of yield maintenance agreement | ( | ( | ( | ( | ||||||||||
Net gain (loss) recognized in interest income on loans | $ | $ | ( | $ | $ | ( | ||||||||
1 Represents the income line item in the statement of comprehensive income in which the effects of fair value hedges are recorded. |
Offsetting of Financial Assets and Derivative Assets | ||||||||||||||||||||
Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | ||||||||||||||||||
Gross Amounts | Offset in the | Assets Presented | the Statements of Condition | |||||||||||||||||
of Recognized | Statements of | in the Statements | Financial | Cash Collateral | ||||||||||||||||
(in thousands) | Assets1 | Condition | of Condition1 | Instruments | Received | Net Amount | ||||||||||||||
September 30, 2023 | ||||||||||||||||||||
Counterparty | $ | $ | $ | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||
December 31, 2022 | ||||||||||||||||||||
Counterparty | $ | $ | $ | $ | $ | $ | ||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||
(dollars in thousands, except per share data) | September 30, 2023 | June 30, 2023 | September 30, 2023 | September 30, 2022 | |||||||||||||
Selected operating data: | |||||||||||||||||
Net interest income | $ | 24,469 | $ | 24,130 | $ | 78,497 | $ | 94,122 | |||||||||
Provision for (reversal of) credit losses on loans | 425 | 500 | 1,275 | (63) | |||||||||||||
Reversal of credit losses on unfunded loan commitments | — | (168) | (342) | (318) | |||||||||||||
Non-interest income | 2,598 | 2,739 | 8,272 | 8,318 | |||||||||||||
Non-interest expense | 19,747 | 20,665 | 60,192 | 56,959 | |||||||||||||
Net income | 5,295 | 4,551 | 19,285 | 33,705 | |||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 0.33 | $ | 0.28 | $ | 1.21 | $ | 2.12 | |||||||||
Diluted | $ | 0.33 | $ | 0.28 | $ | 1.20 | $ | 2.11 | |||||||||
Performance and other financial ratios: | |||||||||||||||||
Return on average assets | 0.52 | % | 0.44 | % | 0.63 | % | 1.04 | % | |||||||||
Return on average equity | 4.94 | % | 4.25 | % | 6.07 | % | 10.65 | % | |||||||||
Tax-equivalent net interest margin | 2.48 | % | 2.45 | % | 2.66 | % | 3.06 | % | |||||||||
Cost of deposits | 0.94 | % | 0.69 | % | 0.61 | % | 0.06 | % | |||||||||
Efficiency ratio | 72.96 | % | 76.91 | % | 69.37 | % | 55.60 | % | |||||||||
Net (recoveries) charge-offs | $ | (3) | $ | (2) | $ | (2) | $ | (3) | |||||||||
Cash dividend payout ratio on common stock 1 | 75.76 | % | 89.29 | % | 61.98 | % | 34.43 | % |
(dollars in thousands, except per share data) | September 30, 2023 | December 31, 2022 | ||||||
Selected financial condition data: | ||||||||
Total assets | $ | 4,035,549 | $ | 4,147,464 | ||||
Investment securities | 1,593,957 | 1,774,303 | ||||||
Loans, net | 2,062,682 | 2,069,563 | ||||||
Deposits | 3,443,684 | 3,573,348 | ||||||
Short-term borrowings and other obligations | 120,335 | 112,439 | ||||||
Stockholders' equity | 418,618 | 412,092 | ||||||
Book value per share | 25.94 | 25.71 | ||||||
Asset quality ratios: | ||||||||
Allowance for credit losses on loans to total loans | 1.16 | % | 1.10 | % | ||||
Allowance for credit losses on loans to non-performing loans | 4.28x | 9.45x | ||||||
Non-accrual loans to total loans | 0.27 | % | 0.12 | % | ||||
Capital ratios: | ||||||||
Equity to total assets ratio | 10.37 | % | 9.94 | % | ||||
Tangible common equity to tangible assets | 8.63 | % | 8.21 | % | ||||
Total capital (to risk-weighted assets) | 16.56 | % | 15.90 | % | ||||
Tier 1 capital (to risk-weighted assets) | 15.63 | % | 15.02 | % | ||||
Tier 1 capital (to average assets) | 10.24 | % | 9.60 | % | ||||
Common equity Tier 1 capital (to risk weighted assets) | 15.63 | % | 15.02 | % | ||||
1 Calculated as dividends on common shares divided by basic net income per common share. | ||||||||
Three months ended | Three months ended | ||||||||||||||||||||||
September 30, 2023 | June 30, 2023 | ||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||
(dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets | |||||||||||||||||||||||
Interest-earning deposits with banks 1 | $ | 76,896 | $ | 1,055 | 5.37 | % | $ | 3,578 | $ | 48 | 5.35 | % | |||||||||||
Investment securities 2, 3 | 1,721,367 | 9,436 | 2.19 | % | 1,819,486 | 10,103 | 2.22 | % | |||||||||||||||
Loans 1, 3, 4 | 2,096,814 | 24,823 | 4.63 | % | 2,108,260 | 24,700 | 4.63 | % | |||||||||||||||
Total interest-earning assets 1 | 3,895,077 | 35,314 | 3.55 | % | 3,931,324 | 34,851 | 3.51 | % | |||||||||||||||
Cash and non-interest-bearing due from banks | 37,964 | 38,154 | |||||||||||||||||||||
Bank premises and equipment, net | 8,428 | 8,546 | |||||||||||||||||||||
Interest receivable and other assets, net | 134,075 | 141,130 | |||||||||||||||||||||
Total assets | $ | 4,075,544 | $ | 4,119,154 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 230,085 | $ | 270 | 0.47 | % | $ | 232,090 | $ | 234 | 0.41 | % | |||||||||||
Savings accounts | 266,770 | 229 | 0.34 | % | 285,745 | 146 | 0.20 | % | |||||||||||||||
Money market accounts | 1,046,011 | 5,988 | 2.27 | % | 948,670 | 4,292 | 1.81 | % | |||||||||||||||
Time accounts including CDARS | 217,467 | 1,555 | 2.84 | % | 174,471 | 946 | 2.18 | % | |||||||||||||||
Short-term borrowings and other obligations 1 | 188,415 | 2,593 | 5.39 | % | 372,308 | 4,873 | 5.18 | % | |||||||||||||||
Total interest-bearing liabilities | 1,948,748 | 10,635 | 2.17 | % | 2,013,284 | 10,491 | 2.09 | % | |||||||||||||||
Demand accounts | 1,649,691 | 1,627,730 | |||||||||||||||||||||
Interest payable and other liabilities | 52,067 | 49,116 | |||||||||||||||||||||
Stockholders' equity | 425,038 | 429,024 | |||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 4,075,544 | $ | 4,119,154 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 24,679 | 2.48 | % | $ | 24,360 | 2.45 | % | |||||||||||||||
Reported net interest income/margin 1 | $ | 24,469 | 2.46 | % | $ | 24,130 | 2.43 | % | |||||||||||||||
Tax-equivalent net interest rate spread | 1.38 | % | 1.42 | % | |||||||||||||||||||
Nine months ended | Nine months ended | ||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||
(in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets | |||||||||||||||||||||||
Interest-earning deposits with banks 1 | $ | 28,710 | $ | 1,159 | 5.32 | % | $ | 140,114 | $ | 832 | 0.78 | % | |||||||||||
Investment securities 2, 3 | 1,797,054 | 29,731 | 2.21 | % | 1,770,882 | 25,214 | 1.90 | % | |||||||||||||||
Loans 1, 3, 4 | 2,108,840 | 73,938 | 4.62 | % | 2,196,173 | 70,944 | 4.26 | % | |||||||||||||||
Total interest-earning assets 1 | 3,934,604 | 104,828 | 3.51 | % | 4,107,169 | 96,990 | 3.11 | % | |||||||||||||||
Cash and non-interest-bearing due from banks | 38,641 | 56,585 | |||||||||||||||||||||
Bank premises and equipment, net | 8,457 | 7,220 | |||||||||||||||||||||
Interest receivable and other assets, net | 137,428 | 159,994 | |||||||||||||||||||||
Total assets | $ | 4,119,130 | $ | 4,330,968 | |||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 244,688 | $ | 758 | 0.41 | % | $ | 296,239 | $ | 230 | 0.10 | % | |||||||||||
Savings accounts | 293,709 | 545 | 0.25 | % | 342,704 | 93 | 0.04 | % | |||||||||||||||
Money market accounts | 982,729 | 11,365 | 1.55 | % | 1,074,597 | 1,184 | 0.15 | % | |||||||||||||||
Time accounts including CDARS | 172,991 | 2,724 | 2.11 | % | 144,807 | 209 | 0.19 | % | |||||||||||||||
Short-term borrowings and other obligations 1 | 260,973 | 10,182 | 5.14 | % | 368 | 2 | 0.71 | % | |||||||||||||||
Total interest-bearing liabilities | 1,955,090 | 25,574 | 1.75 | % | 1,858,715 | 1,718 | 0.12 | % | |||||||||||||||
Demand accounts | 1,689,615 | 1,999,433 | |||||||||||||||||||||
Interest payable and other liabilities | 49,819 | 49,747 | |||||||||||||||||||||
Stockholders' equity | 424,606 | 423,073 | |||||||||||||||||||||
Total liabilities & stockholders' equity | $ | 4,119,130 | $ | 4,330,968 | |||||||||||||||||||
Tax-equivalent net interest income/margin 1 | $ | 79,254 | 2.66 | % | $ | 95,272 | 3.06 | % | |||||||||||||||
Reported net interest income/margin 1 | $ | 78,497 | 2.63 | % | $ | 94,122 | 3.02 | % | |||||||||||||||
Tax-equivalent net interest rate spread | 1.76 | % | 2.99 | % | |||||||||||||||||||
1 Interest income/expense is divided by actual number of days in the period times 360 days to correspond to stated interest rate terms, where applicable. | |||||||||||||||||||||||
2 Yields on available-for-sale securities are calculated based on amortized cost balances rather than fair value, as changes in fair value are reflected as a component of stockholders' equity. Investment security interest is earned on 30/360 day basis monthly. | |||||||||||||||||||||||
3 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent in 2023 and 2022. | |||||||||||||||||||||||
4 Average balances on loans outstanding include non-performing loans. The amortized portion of net loan origination fees is included in interest income on loans, representing an adjustment to the yield. | |||||||||||||||||||||||
Three months ended September 30, 2023 compared to three months ended June 30, 2023 | Nine months ended September 30, 2023 compared to nine months ended September 30, 2022 | ||||||||||||||||||||||||||||
(in thousands) | Volume | Yield/Rate | Mix | Total | Volume | Yield/Rate | Mix | Total | |||||||||||||||||||||
Interest-earning deposits with banks | $ | 984 | $ | 1 | $ | 22 | $ | 1,007 | $ | (661) | $ | 4,825 | $ | (3,837) | $ | 327 | |||||||||||||
Investment securities 1 | (545) | (129) | 7 | (667) | 373 | 4,084 | 60 | 4,517 | |||||||||||||||||||||
Loans 1 | (134) | (13) | 270 | 123 | (2,821) | 6,056 | (241) | 2,994 | |||||||||||||||||||||
Total interest-earning assets | 305 | (141) | 299 | 463 | (3,109) | 14,965 | (4,018) | 7,838 | |||||||||||||||||||||
Interest-bearing transaction accounts | (2) | 34 | 4 | 36 | (40) | 688 | (120) | 528 | |||||||||||||||||||||
Savings accounts | (10) | 97 | (4) | 83 | (13) | 543 | (78) | 452 | |||||||||||||||||||||
Money market accounts | 440 | 1,080 | 176 | 1,696 | (101) | 11,243 | (961) | 10,181 | |||||||||||||||||||||
Time accounts, including CDARS | 233 | 288 | 88 | 609 | 41 | 2,071 | 403 | 2,515 | |||||||||||||||||||||
Short-term borrowings and other obligations | (2,407) | 195 | (68) | (2,280) | 1,416 | 12 | 8,752 | 10,180 | |||||||||||||||||||||
Total interest-bearing liabilities | (1,746) | 1,694 | 196 | 144 | 1,303 | 14,557 | 7,996 | 23,856 | |||||||||||||||||||||
Changes in tax-equivalent net interest income | $ | 2,051 | $ | (1,835) | $ | 103 | $ | 319 | $ | (4,412) | $ | 408 | $ | (12,014) | $ | (16,018) | |||||||||||||
1 Yields and interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the federal statutory rate of 21%. | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
(dollars in thousands) | September 30, 2023 | June 30, 2023 | September 30, 2023 | September 30, 2022 | |||||||||||||
Provision for (reversal of) credit losses on loans | $ | 425 | $ | 500 | $ | 1,275 | $ | (63) |
Three months ended | ||||||||||||||
(dollars in thousands) | September 30, 2023 | June 30, 2023 | Amount Change | Percent Change | ||||||||||
Wealth Management and Trust Services | $ | 515 | $ | 559 | $ | (44) | (7.9) | % | ||||||
Service charges on deposit accounts | 508 | 520 | (12) | (2.3) | % | |||||||||
Debit card interchange fees, net | 456 | 555 | (99) | (17.8) | % | |||||||||
Earnings on bank-owned life insurance, net | 371 | $ | 362 | 9 | 2.5 | % | ||||||||
Dividends on Federal Home Loan Bank stock | 324 | 290 | 34 | 11.7 | % | |||||||||
Merchant interchange fees, net | 117 | 127 | (10) | (7.9) | % | |||||||||
Other income | 293 | 326 | (33) | (10.1) | % | |||||||||
Total non-interest income | $ | 2,598 | $ | 2,739 | $ | (141) | (5.1) | % | ||||||
Nine months ended | Amount Change | Percent Change | ||||||||||||
(dollars in thousands) | September 30, 2023 | September 30, 2022 | ||||||||||||
Wealth Management and Trust Services | $ | 1,585 | $ | 1,737 | $ | (152) | (8.8) | % | ||||||
Service charges on deposit accounts | 1,561 | 1,488 | 73 | 4.9 | % | |||||||||
Debit card interchange fees, net | 1,458 | 1,538 | (80) | (5.2) | % | |||||||||
Earnings on bank-owned life insurance, net | 1,438 | 933 | 505 | 54.1 | % | |||||||||
Dividends on Federal Home Loan Bank stock | 916 | 759 | 157 | 20.7 | % | |||||||||
Merchant interchange fees, net | 377 | 430 | (53) | (12.3) | % | |||||||||
Gains (losses) on sale of investment securities, net | 14 | (63) | 77 | NM | ||||||||||
Other income | 923 | 1,496 | (573) | (38.3) | % | |||||||||
Total non-interest income | $ | 8,272 | $ | 8,318 | $ | (46) | (0.6) | % | ||||||
Three months ended | ||||||||||||||
(dollars in thousands) | September 30, 2023 | June 30, 2023 | Amount Change | Percent Change | ||||||||||
Salaries and related benefits | $ | 10,741 | $ | 11,416 | $ | (675) | (5.9) | % | ||||||
Occupancy and equipment | 1,973 | 1,980 | (7) | (0.4) | % | |||||||||
Data processing | 1,009 | 922 | 87 | 9.4 | % | |||||||||
Professional services | 757 | 797 | (40) | (5.0) | % | |||||||||
Federal Deposit Insurance Corporation insurance | 469 | 666 | (197) | (29.6) | % | |||||||||
Depreciation and amortization | 423 | 400 | 23 | 5.8 | % | |||||||||
Information technology | 411 | 357 | 54 | 15.1 | % | |||||||||
Amortization of core deposit intangible | 335 | 340 | (5) | (1.5) | % | |||||||||
Directors' expense | 272 | 300 | (28) | (9.3) | % | |||||||||
Charitable contributions | 20 | 638 | (618) | (96.9) | % | |||||||||
Other real estate owned | — | 44 | (44) | (100.0) | % | |||||||||
Other non-interest expense | ||||||||||||||
Advertising | 319 | 300 | 19 | 6.3 | % | |||||||||
Other expense | 3,018 | 2,505 | 513 | 20.5 | % | |||||||||
Total other non-interest expense | 3,337 | 2,805 | 532 | 19.0 | % | |||||||||
Total non-interest expense | $ | 19,747 | $ | 20,665 | $ | (918) | (4.4) | % | ||||||
Nine months ended | Amount Change | Percent Change | ||||||||||||
(dollars in thousands) | September 30, 2023 | September 30, 2022 | ||||||||||||
Salaries and related benefits | $ | 33,087 | $ | 32,446 | $ | 641 | 2.0 | % | ||||||
Occupancy and equipment | 6,367 | 5,739 | 628 | 10.9 | % | |||||||||
Data processing | 2,976 | 3,569 | (593) | (16.6) | % | |||||||||
Professional services | 2,677 | 2,314 | 363 | 15.7 | % | |||||||||
Depreciation and amortization | 1,705 | 1,259 | 446 | 35.4 | % | |||||||||
Federal Deposit Insurance Corporation insurance | 1,424 | 886 | 538 | 60.7 | % | |||||||||
Information technology | 1,138 | 1,519 | (381) | (25.1) | % | |||||||||
Amortization of core deposit intangible | 1,020 | 1,124 | (104) | (9.3) | % | |||||||||
Directors' expense | 893 | 838 | 55 | 6.6 | % | |||||||||
Charitable contributions | 707 | 605 | 102 | 16.9 | % | |||||||||
Other real estate owned | 48 | 355 | (307) | NM | ||||||||||
Other non-interest expense | ||||||||||||||
Advertising | 897 | 789 | 108 | 13.7 | % | |||||||||
Other expense | 7,253 | 5,516 | 1,737 | 31.5 | % | |||||||||
Total other non-interest expense | 8,150 | 6,305 | 1,845 | 29.3 | % | |||||||||
Total non-interest expense | $ | 60,192 | $ | 56,959 | $ | 3,233 | 5.7 | % | ||||||
NM - Not Meaningful |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | Amortized Cost | Fair Value | % of Total State and Political Subdivisions | ||||||||||||||||||||
Within California: | ||||||||||||||||||||||||||
General obligation bonds | $ | 24,216 | $ | 18,867 | 14.7 | % | $ | 25,806 | $ | 20,768 | 14.4 | % | ||||||||||||||
Revenue bonds | 3,510 | 2,775 | 2.1 | 3,719 | 2,987 | 2.1 | ||||||||||||||||||||
Total within California | 27,726 | 21,642 | 16.8 | 29,525 | 23,755 | 16.5 | ||||||||||||||||||||
Outside California: | ||||||||||||||||||||||||||
General obligation bonds | 109,167 | 89,863 | 66.3 | 121,908 | 106,375 | 68.0 | ||||||||||||||||||||
Revenue bonds | 27,751 | 22,303 | 16.9 | 27,922 | 23,752 | 15.5 | ||||||||||||||||||||
Total outside California | 136,918 | 112,166 | 83.2 | 149,830 | 130,127 | 83.5 | ||||||||||||||||||||
Total obligations of state and political subdivisions | $ | 164,644 | $ | 133,808 | 100.0 | % | $ | 179,355 | $ | 153,882 | 100.0 | % | ||||||||||||||
Percent of investment portfolio | 9.7 | % | 9.3 | % | 9.6 | % | 9.3 | % |
Bancorp Capital Ratios (dollars in thousands) | Actual | Adequately Capitalized Threshold 1 | Threshold to be a Well Capitalized Bank Holding Company | |||||||||||||||||
September 30, 2023 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk-weighted assets) | $ | 442,947 | 16.56 | % | $ | 280,854 | 10.50 | % | $ | 267,480 | 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 418,088 | 15.63 | % | $ | 227,358 | 8.50 | % | $ | 213,984 | 8.00 | % | ||||||||
Tier 1 Leverage Capital (to average assets) | $ | 418,088 | 10.24 | % | $ | 163,362 | 4.00 | % | $ | 204,203 | 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 418,088 | 15.63 | % | $ | 187,236 | 7.00 | % | $ | 173,862 | 6.50 | % | ||||||||
December 31, 2022 | ||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ | 431,667 | 15.90 | % | $ | 285,079 | 10.50 | % | $ | 271,504 | 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 407,912 | 15.02 | % | $ | 230,778 | 8.50 | % | $ | 217,203 | 8.00 | % | ||||||||
Tier 1 Leverage Capital (to average assets) | $ | 407,912 | 9.60 | % | $ | 169,948 | 4.00 | % | $ | 212,435 | 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 407,912 | 15.02 | % | $ | 190,053 | 7.00 | % | $ | 176,478 | 6.50 | % |
Bank Capital Ratios (dollars in thousands) | Actual | Adequately Capitalized Threshold 1 | Threshold to be Well Capitalized under Prompt Corrective Action Provisions | |||||||||||||||||
September 30, 2023 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk-weighted assets) | $ | 431,389 | 16.13 | % | $ | 280,848 | 10.50 | % | $ | 267,474 | 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 406,530 | 15.20 | % | $ | 227,353 | 8.50 | % | $ | 213,980 | 8.00 | % | ||||||||
Tier 1 Leverage Capital (to average assets) | $ | 406,530 | 9.95 | % | $ | 163,359 | 4.00 | % | $ | 204,199 | 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 406,530 | 15.20 | % | $ | 187,232 | 7.00 | % | $ | 173,858 | 6.50 | % | ||||||||
December 31, 2022 | ||||||||||||||||||||
Total Capital (to risk-weighted assets) | $ | 427,108 | 15.73 | % | $ | 285,052 | 10.50 | % | $ | 271,478 | 10.00 | % | ||||||||
Tier 1 Capital (to risk-weighted assets) | $ | 403,352 | 14.86 | % | $ | 230,757 | 8.50 | % | $ | 217,183 | 8.00 | % | ||||||||
Tier 1 Leverage Capital (to average assets) | $ | 403,352 | 9.49 | % | $ | 169,940 | 4.00 | % | $ | 212,425 | 5.00 | % | ||||||||
Common Equity Tier 1 (to risk-weighted assets) | $ | 403,352 | 14.86 | % | $ | 190,035 | 7.00 | % | $ | 176,461 | 6.50 | % |
(in thousands) | Total Available | Amount Used | Net Availability | ||||||||
Internal Sources | |||||||||||
Unrestricted cash 1 | $ | 102,581 | N/A | $ | 102,581 | ||||||
Unencumbered securities at market value | 613,684 | N/A | 613,684 | ||||||||
External Sources | |||||||||||
FHLB line of credit | 1,023,197 | $ | — | 1,023,197 | |||||||
FRB line of credit and BTFP facility | 331,907 | (120,000) | 211,907 | ||||||||
Lines of credit at correspondent banks | 135,000 | — | 135,000 | ||||||||
Total Liquidity | $ | 2,206,369 | $ | (120,000) | $ | 2,086,369 |
(in thousands, unaudited) | September 30, 2023 | December 31, 2022 | |||||||||
Tangible Common Equity - Bancorp | |||||||||||
Total stockholders' equity | $ | 418,618 | 412,092 | ||||||||
Goodwill and core deposit intangible | (76,850) | (77,870) | |||||||||
Total TCE | a | 341,768 | 334,222 | ||||||||
Unrealized losses on HTM securities, net of tax 1 | (107,011) | (89,432) | |||||||||
TCE, net of unrealized losses on HTM securities (non-GAAP) | b | $ | 234,757 | 244,790 | |||||||
Total assets | $ | 4,035,549 | 4,147,464 | ||||||||
Goodwill and core deposit intangible | (76,850) | (77,870) | |||||||||
Total tangible assets | c | 3,958,699 | 4,069,594 | ||||||||
Unrealized losses on HTM securities, net of tax 1 | (107,011) | (89,432) | |||||||||
Total tangible assets, net of unrealized losses on HTM securities (non-GAAP) | d | $ | 3,851,688 | 3,980,162 | |||||||
Bancorp TCE ratio | a / c | 8.6 | % | 8.2 | % | ||||||
Bancorp TCE ratio, net of unrealized losses on HTM securities (non-GAAP) | b / d | 6.1 | % | 6.2 | % | ||||||
Immediate and Parallel Shift in Interest Rates (in basis points) | Estimated Change in Net Interest Income in Year 1, as percent of Net Interest Income | Estimated Change in Net Interest Income in Year 2, as percent of Net Interest Income | ||||||
up 400 | (0.4) | % | 4.2 | % | ||||
up 300 | (0.4) | % | 3.0 | % | ||||
up 200 | (0.3) | % | 1.8 | % | ||||
up 100 | — | % | 1.3 | % | ||||
down 100 | 1.2 | % | (1.3) | % | ||||
down 200 | 3.6 | % | (0.4) | % | ||||
down 300 | 6.1 | % | — | % | ||||
down 400 | 7.0 | % | (1.4) | % |
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Herewith | ||||||||||||||
3.01 | S-4 | 333-257025 | 3.01 | June 11, 2021 | ||||||||||||||||
3.02 | S-4 | 333-257025 | 3.02 | June 11, 2021 | ||||||||||||||||
4.01 | 10-K | 001-33572 | 4.01 | March 16, 2023 | ||||||||||||||||
10.01 | S-8 | 333-218274 | 4.1 | May 26, 2017 | ||||||||||||||||
10.02 | S-8 | 333-221219 | 4.1 | October 30, 2017 | ||||||||||||||||
10.03 | S-8 | 333-227840 | 4.1 | October 15, 2018 | ||||||||||||||||
10.04 | S-8 | 333-239555 | 4.1 | June 30, 2020 | ||||||||||||||||
10.05 | 10-Q | 001-33572 | 10.06 | November 7, 2007 | ||||||||||||||||
10.06 | 10-K | 001-33572 | 10.07 | March 15, 2021 | ||||||||||||||||
10.07 | 8-K | 001-33572 | 10.2 | November 4, 2014 | ||||||||||||||||
10.08 | 8-K | 001-33572 | 10.1 | October 31, 2007 | ||||||||||||||||
10.09 | 10-K | 001-33572 | 10.13 | March 15, 2021 | ||||||||||||||||
10.10 | 8-K | 001-33572 | 10.1 | September 24, 2021 | ||||||||||||||||
10.11 | 8-K | 001-33572 | 10.1 | December 21, 2022 | ||||||||||||||||
10.12 | 8-K | 001-33572 | 10.2 | December 21, 2022 | ||||||||||||||||
10.13 | 8-K | 001-33572 | 10.3 | December 21, 2022 | ||||||||||||||||
10.14 | 8-K | 001-33572 | 10.4 | December 21, 2022 | ||||||||||||||||
31.01 | Filed | |||||||||||||||||||
31.02 | Filed | |||||||||||||||||||
32.01 | Filed | |||||||||||||||||||
101.INS | Inline XBRL Instance Document | Filed | ||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed | ||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed | ||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed | ||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed | ||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed |
Bank of Marin Bancorp | |||||||||||
(registrant) | |||||||||||
November 8, 2023 | /s/ Timothy D. Myers | ||||||||||
Date | Timothy D. Myers | ||||||||||
President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
November 8, 2023 | /s/ Tani Girton | ||||||||||
Date | Tani Girton | ||||||||||
Executive Vice President & | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
November 8, 2023 | /s/ David A. Merck | ||||||||||
Date | David A. Merck | ||||||||||
First Vice President & Controller | |||||||||||
(Principal Accounting Officer) |
November 8, 2023 | /s/ Timothy D. Myers | |||||||
Date | Timothy D. Myers | |||||||
President & | ||||||||
Chief Executive Officer |
November 8, 2023 | /s/ Tani Girton | |||||||
Date | Tani Girton | |||||||
Executive Vice President & | ||||||||
Chief Financial Officer |
November 8, 2023 | /s/ Timothy D. Myers | |||||||
Date | Timothy D. Myers | |||||||
President & | ||||||||
Chief Executive Officer |
November 8, 2023 | /s/ Tani Girton | |||||||
Date | Tani Girton | |||||||
Executive Vice President & | ||||||||
Chief Financial Officer |
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investment securities: | ||
Held-to-maturity, allowance for credit Loss | $ 0 | $ 0 |
Available-for-sale, allowance for credit loss | $ 0 | $ 0 |
Stockholders' Equity | ||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 16,139,321 | 16,029,138 |
Common stock, outstanding (in shares) | 16,139,321 | 16,029,138 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends paid on common stock (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.73 |
Basis of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Bancorp, a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin, a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2022 Annual Report on Form 10-K. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period. The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities.
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Recently Adopted and Issued Accounting Standards |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Accounting Standards Adopted in 2023 In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendment eliminated the recognition measurement guidance for troubled debt restructured ("TDR") loans and instead enhanced disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. In addition, the amendment required that an entity include in its vintage disclosures the current period gross loan charge-offs by year of origination. We early adopted the current period charge-off disclosures in the first quarter of 2022. We adopted the loan modification provisions as of January 1, 2023 using a modified retrospective method. The cumulative-effect adjustment to retained earnings was considered immaterial. Refer to Note 5, Loans and Allowance for Credit Losses on Loans, for additional information. In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. Among other things, the ASU renamed the "last-of-layer" method to the "portfolio layer" method and made fair value hedging more accessible for hedge accounting of interest rate risk for portfolios and financial assets. For example, the guidance permits an entity to apply the same portfolio hedging method to both prepayable and non-prepayable financial assets, thereby providing for consistency between accounting for similar hedges. We adopted the amendments on January 1, 2023, which had no effect on our existing hedge accounting, disclosures, financial condition or results of operations. In March 2020, the FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden of accounting for, or recognizing the effects of reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Topic 848 was further amended in January 2021 with ASU No. 2021-01, which provided additional guidance on certain optional expedients and scope of derivative instruments, and in December 2022 with ASU 2022-06, which extended the sunset date of Topic 848 to December 31, 2024 given the UK Financial Conduct Authority ("FCA") March 2021 announcement that the intended cessation date of certain tenors of USD LIBOR would be June 30, 2023. An entity may elect the amendments in these updates at an interim period with adoption methods varying based on transaction type. As of September 30, 2023, we had four interest rate swap contracts with notional values totaling $11.3 million that were indexed to LIBOR, which transitioned to the Secured Overnight Financing Rate ("SOFR") effective July 1, 2023. The transition to SOFR did not have a material impact to either our financial condition or results of operations. Accounting Standards Not Yet Effective In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendment reduces diversity in practice by clarifying that a separate 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. In addition, this ASU provided amended examples to illustrate that a restriction that is a characteristic of the equity security, which market participants would take into account when pricing them, would be considered in measuring fair value. This ASU also introduces new disclosure requirements. The amendments are effective prospectively for years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements. As discussed in Note 4, Investment Securities, on July 13, 2023 we sold our remaining shares of Visa Inc. Class B restricted common stock. As a result of the sale, this update will not impact our financial condition, results of operations or disclosures. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. For public companies, the amendment requires entities to amortize leasehold improvements associated with common control lease arrangements over the useful life of the improvements to the common control group, as opposed to the shorter of the remaining lease term and the useful life of the improvements for all other operating leases. The amendments are effective for years beginning after December 15, 2023, and may be adopted either prospectively or retrospectively. Early adoption is permitted for both interim and annual financial statements. We currently do not have common control lease arrangements, and therefore do not anticipate that the amendments will impact our financial condition and results of operations. In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low-income housing tax credit ("LIHTC") structures. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the consolidated statements of income as a component of income tax expense (benefit). The amendments will allow entities to elect to account for all other equity investments made primarily for the purpose of receiving income tax credits to using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, when certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023, and may be adopted either on a modified retrospective basis or retrospectively. Other than investments in LIHTC funds, as disclosed in Note 4, Investment Securities, we currently have no other equity investments made primarily for the purpose of receiving income tax credits, and therefore do not anticipate that the amendments will impact our financial condition and results of operations.
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Fair Value of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair Value Hierarchy and Fair Value Measurement We group our assets and liabilities that are measured at fair value into three levels within the fair value hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1: Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. Level 3: Valuations are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Values are determined using pricing models and discounted cash flow models and may include significant management judgment and estimation. Transfers between levels of the fair value hierarchy are recognized through our monthly and/or quarterly valuation process in the reporting period during which the event or circumstances that caused the transfer occurred. No such transfers occurred in the years presented. The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.
1 Other comprehensive income ("OCI") or net income ("NI"). Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of available-for-sale securities. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, we obtain pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity and credit spreads (Level 2). Level 2 securities include asset-backed securities, obligations of state and political subdivisions, U.S. agencies or government-sponsored agencies' debt securities, mortgage-backed securities, government agency-issued, and corporate bonds. As of September 30, 2023 and December 31, 2022, there were no Level 3 securities. Held-to-maturity securities may be subject to an allowance for credit losses as a result of our evaluation of expected losses due to credit quality factors. We did not record any credit loss expense on held-to-maturity securities during the nine months ended September 30, 2023 or September 30, 2022. Fair value of held-to-maturity securities is determined using the same techniques discussed above for available-for-sale securities. On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both our own credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. These unobservable inputs are not considered significant inputs to the fair value measurement overall. Level 2 inputs for the valuations are limited to observable market prices for Secured Overnight Financing Rate ("SOFR") and Overnight Index Swap ("OIS") rates (for the very short term), quoted prices for SOFR futures contracts, observable market prices for SOFR and OIS swap rates, and one-month and three-month SOFR basis spreads at commonly quoted intervals. Mid-market pricing of the inputs is used as a practical expedient in the fair value measurements. We project spot rates at reset days specified by each swap contract to determine future cash flows, then discount to present value using OIS curves as of the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, a credit valuation adjustment ("CVA") is applied to reflect the credit risk we pose to counterparties. We have used the spread between the Standard & Poor's BBB rated U.S. Bank Composite rate and SOFR for the closest maturity term corresponding to the duration of the swaps to derive the CVA. Because there is little to no counterparty risk, we did not incorporate credit adjustments from our assessment of the counterparty credit risk in determining fair value. For further discussion on our methodology in valuing our derivative financial instruments, refer to Note 9, Derivative Financial Instruments and Hedging Activities. Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as individually analyzed loans that are collateral dependent and other real estate owned ("OREO"). OREO is classified as Level 3 and represents collateral acquired through foreclosure and is initially recorded at fair value as established by a current appraisal of the collateral. Subsequent to foreclosure, OREO is carried at the lower of cost or fair value, less estimated costs to sell. On July 12, 2023, the Bank completed the sale of its only OREO property. The following table presents the carrying value of assets measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of September 30, 2023 and December 31, 2022.
Disclosures about Fair Value of Financial Instruments The table below is a summary of fair value estimates for financial instruments as of September 30, 2023 and December 31, 2022, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities. Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of September 30, 2023 and December 31, 2022, and Visa Inc. Class B common stock with no carrying value, as of December 31, 2022, which was sold entirely in July of 2023. There were no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of September 30, 2023 or December 31, 2022. The values are discussed in Note 4, Investment Securities.
Fair value of loans is based on exit price techniques and obtained from an independent third-party that uses its proprietary valuation model and methodology and may differ from actual price from a prospective buyer. The discounted cash flow valuation approach reflects key inputs and assumptions that are unobservable, such as loan probability of default, loss given default, prepayment speed, and market discount rates. Fair value of fixed-rate time deposits is estimated by discounting future contractual cash flows using discount rates that reflect the current observable market rates offered for time deposits of similar remaining maturities. Due to the short-term nature of the FHLB borrowings outstanding as of December 31, 2022, the carrying value approximated fair value. The fair value of the borrowings under the BTFP is estimated by discounting the contractual cash flow using the program's period end financing rate. The value of off-balance-sheet financial instruments is estimated based on the fee income associated with the commitments, which in the absence of credit exposure, is considered to approximate their settlement value. The fair value of commitment fees was not material as of September 30, 2023 or December 31, 2022.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Our investment securities portfolio consists of U.S. Treasury securities, obligations of state and political subdivisions, U.S. federal government agencies such as Government National Mortgage Association ("GNMA") and Small Business Administration ("SBA"), U.S. government-sponsored enterprises ("GSEs"), such as Federal National Mortgage Association ("FNMA"), Federal Home Loan Mortgage Corporation ("FHLMC"), Federal Farm Credit Banks Funding Corporation and FHLB and U.S. Corporations. We also invest in residential and commercial mortgage-backed securities (“MBS”/"CMBS") and collateralized mortgage obligations (“CMOs”) issued or guaranteed by the GSEs, as reflected in the following table. A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of September 30, 2023 and December 31, 2022 is presented below.
Management measures expected credit losses on held-to-maturity securities collectively by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. With regard to MBSs and CMOs issued or guaranteed by the GSEs, and SBA-backed securities, we expect to receive all the contractual principal and interest on these securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities. With regard to securities issued by states and political subdivisions and corporate bonds, management considers: (i) issuer and/or guarantor credit ratings, (ii) historical probability of default and loss given default rates for given bond ratings and remaining maturity, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) internal credit review of the financial information, and (v) whether or not such securities have credit enhancements such as guarantees, contain a defeasance clause, or are pre-refunded by the issuers. Based on our comprehensive analysis, no credit losses are expected. The following table summarizes the amortized cost of our portfolio of held-to-maturity securities issued by states and political subdivisions and corporate bonds by Moody's and/or Standard & Poor's bond ratings as of September 30, 2023 and December 31, 2022.
A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of September 30, 2023 and December 31, 2022 is presented below.
As part of our ongoing review of our investment securities portfolio, we reassessed the classification of certain securities issued by government sponsored agencies. In March 2022, we transferred $357.5 million of these securities from available-for-sale to held-to-maturity at fair value. We intend and have the ability to hold these securities to maturity. The net unrealized pre-tax loss of $14.8 million that remained and the related accumulated other comprehensive loss are accreted to interest income over the remaining lives of the securities. Because these entries offset each other, there was no impact to net income. The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2023 and December 31, 2022 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.
Sales of investment securities and gross gains and losses are shown in the following table:
1 Refer to VISA Inc. Class B Common Stock section below for more information. In October 2023, the Bank sold $55.0 million of available-for-sale securities for a pretax net loss of $2.1 million (or $1.5 million after tax). Management did not have the intent and was not required to sell these securities at the reporting date. Therefore, no impairment loss was recognized in the third quarter of 2023. The carrying values of pledged investment securities are shown in the following table:
There were 331 and 407 securities in unrealized loss positions at September 30, 2023 and December 31, 2022, respectively. Those securities are summarized and classified according to the duration of the loss period in the tables below:
As of September 30, 2023, the investment portfolio included 323 investment securities that had been in a continuous loss position for twelve months or more and 8 investment securities that had been in a loss position for less than twelve months. Securities issued by government-sponsored enterprises, such as FNMA and FHLMC, usually have implicit credit support by the U.S. federal government. However, since 2008, FNMA and FHLMC have been under government conservatorship and, therefore, contractual cash flows for these investments carry explicit guarantees by the U.S. federal government. Securities issued by the SBA and GNMA have explicit credit guarantees by the U.S. federal government, which protects us from credit losses on the contractual cash flows of the securities. Our investment in obligations of state and political subdivisions bonds are deemed credit worthy after our comprehensive analysis of the issuers' latest financial information, credit ratings by major credit agencies, and/or credit enhancements. No allowances for credit losses have been recognized on available-for-sale securities in an unrealized loss position, as management did not believe any of the securities were impaired due to credit risk factors at either September 30, 2023 or December 31, 2022. In addition, for any available-for-sale securities in an unrealized loss position at September 30, 2023 and December 31, 2022, the Bank assessed whether it intended to sell the securities, or if it was more likely than not that it would be required to sell the securities before recovery of its amortized cost basis, which would require a write-down to fair value through net income. Because the Bank did not intend to sell those securities that were in an unrealized loss position, and it was not more-likely-than-not that the Bank would be required to sell the securities before recovery of their amortized cost bases, the Bank determined that no write-down was necessary as of the reporting date. On July 7, 2023, the Bank entered into various interest rate swap agreements with notional values totaling $101.8 million to hedge balance sheet interest rate sensitivity and protect selected securities in its available-for-sale portfolio against changes in fair value related to changes in the benchmark interest rate. For additional details, refer to Note 9, Derivative Financial Instruments and Hedging Activities. Non-Marketable Securities Included in Other Assets FHLB Capital Stock As a member of the FHLB, we are required to maintain a minimum investment in FHLB capital stock determined by the Board of Directors of the FHLB. The minimum investment requirements can increase in the event we increase our total asset size or borrowings with the FHLB. Shares cannot be purchased or sold except between the FHLB and its members at the $100 per share par value. We held $16.7 million of FHLB stock included in other assets on the consolidated statements of condition at both September 30, 2023 and December 31, 2022. The carrying amounts of these investments are reasonable estimates of fair value because the securities are restricted to member banks and they do not have a readily determinable market value. Based on our analysis of FHLB's financial condition and certain qualitative factors, we determined that the FHLB stock was not impaired at September 30, 2023 and December 31, 2022. On October 26, 2023, FHLB announced a cash dividend for the third quarter of 2023 at an annualized dividend rate of 8.25% to be distributed on November 9, 2023. Cash dividends paid on FHLB capital stock are recorded as non-interest income. VISA Inc. Class B Common Stock As a member bank of Visa U.S.A., we held 10,439 shares of Visa Inc. Class B common stock at December 31, 2022. These shares had a carrying value of zero and were restricted from resale to non-member banks of Visa U.S.A. until their conversion into Class A (voting) shares upon the termination of Visa Inc.'s Covered Litigation escrow account. Because of the restriction and the uncertainty on the conversion rate to Class A shares, these shares lacked a readily determinable fair value. On July 13, 2023, the Bank sold the entirety of its remaining investment in Visa Inc. Class B restricted common stock for a $2.8 million gain. For further information on the Covered Litigation, refer to Note 8, Commitments and Contingencies. Low Income Housing Tax Credits We invest in low-income housing tax credit funds as a limited partner, which totaled $2.1 million and $2.5 million recorded in other assets as of September 30, 2023 and December 31, 2022, respectively. In the first nine months of 2023, we recognized $450 thousand of low-income housing tax credits and other tax benefits, offset by $377 thousand of amortization expense of low-income housing tax credit investment, as a component of income tax expense. As of September 30, 2023, our unfunded commitments for these low-income housing tax credit funds totaled $346 thousand. We did not recognize any impairment losses on these low-income housing tax credit investments during the first nine months of 2023 or 2022, as the value of the future tax benefits exceeds the carrying value of the investments.
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Loans and Allowance for Credit Losses on Loans |
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Loans and Allowance for Credit Losses on Loans | Loans and Allowance for Credit Losses on Loans The following table presents the amortized cost of loans by portfolio class as of September 30, 2023 and December 31, 2022.
1 Amortized cost includes net deferred loan origination costs of $2.6 million and $1.8 million at September 30, 2023 and December 31, 2022, respectively. Amounts are also net of unrecognized purchase discounts of $2.2 million and $2.6 million at September 30, 2023 and December 31, 2022, respectively. Amortized cost excludes accrued interest, which totaled $6.3 million and $6.1 million at September 30, 2023 and December 31, 2022, respectively, and is included in interest receivable and other assets in the consolidated statements of condition. Lending Risks Commercial and Industrial Loans - Commercial loans are generally made to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and acquisitions. Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral and guarantor support. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable and inventory, and typically include personal guarantees. We target stable businesses with guarantors who provide additional sources of repayment and have proven to be resilient in periods of economic stress. A weakened economy, and resultant decreased consumer and/or business spending, may have an effect on the credit quality of commercial loans. Commercial Real Estate Loans - Commercial real estate loans, which include income producing investment properties and owner-occupied real estate used for business purposes, are subject to underwriting standards and processes similar to commercial loans discussed above. We underwrite these loans to be repaid from cash flow from either the business or investment property and supported by real property collateral. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, a large majority of our loans are guaranteed by the owners of the properties. Conditions in the real estate markets or downturn in the general economy may adversely affect our commercial real estate loans. In the event of a vacancy, we expect guarantors to carry the loans until they find a replacement tenant. The owner's substantial equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As such, we have generally experienced a relatively low level of loss and delinquencies in this portfolio. Construction Loans - Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. Construction loans include interest reserves that are used for the payment of interest during the development and marketing periods and are capitalized as part of the loan balance. When a construction loan is placed on nonaccrual status before the depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance. These loans are underwritten after evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. We monitor all construction projects to determine whether they are on schedule, completed as planned and in accordance with the approved construction budgets. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project. Consumer Loans - Consumer loans primarily consist of home equity lines of credit, other residential loans, floating homes, and indirect luxury auto loans, along with a small number of installment loans. Our other residential loans include tenancy-in-common fractional interest loans ("TIC") located almost entirely in San Francisco County. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. Diversification among consumer loan types, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. We do not originate sub-prime residential mortgage loans, nor is it our practice to underwrite loans commonly referred to as "Alt-A mortgages," the characteristics of which are reduced documentation, borrowers with low FICO scores or collateral with high loan-to-value ratios. Credit Quality Indicators We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and in the loan portfolio. Our definitions of “Special Mention” risk graded loans, or worse, are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC"). Our internally assigned grades are as follows: Pass and Watch - Loans to borrowers of acceptable or better credit quality. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Bank’s policy regarding debt-service-coverage ratios. These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences. Negative external industry factors are generally not present. The loan may be secured, unsecured or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. “Watch” is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period. Special Mention - Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification. Substandard - Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has a well-defined weakness or weaknesses that jeopardize(s) the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Well-defined weaknesses include adverse trends or developments of the borrower’s financial condition, managerial weaknesses and/or significant collateral deficiencies. Doubtful - Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and usually are collateral-dependent. We regularly review our credits for accuracy of risk grades whenever we receive new information and at each quarterly and year-end reporting period. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. In addition, investor commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We review home equity and other consumer loans based on delinquency. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly. The following tables present the loan portfolio by loan portfolio class, origination year and internal risk rating as of September 30, 2023 and December 31, 2022. The current year vintage table reflects gross charge-offs by loan portfolio class and year of origination. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.
The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of September 30, 2023 and December 31, 2022.
2 None of the non-accrual loans as of September 30, 2023 or December 31, 2022 were earning interest on a cash or accrual basis. We reversed $131 thousand and $158 thousand in accrued interest income for loans that were placed on non-accrual status for the three and nine months ended September 30, 2023. We reversed accrued interest income of $39 thousand and $47 thousand for loans that were placed on non-accrual status during the three and nine months ended September 30, 2022, respectively. Collateral Dependent Loans The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which are all on non-accrual status, by portfolio class at September 30, 2023 and December 31, 2022.
1 There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at September 30, 2023 and December 31, 2022. The weighted average loan-to-value of collateral dependent loans was approximately 61% at September 30, 2023 and 42% at December 31, 2022. Loan Modifications to Borrowers Experiencing Financial Difficulty We adopted ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023, as described in Note 2, Recently Adopted and Issued Accounting Standards. The amendments eliminated the accounting guidance for troubled debt restructurings and enhanced disclosures related to certain types of loan modifications for borrowers experiencing financial difficulty, including principal forgiveness, interest rate reductions, other-than-insignificant payment delays, and/or term extensions which are intended to minimize the economic loss and avoid foreclosure or repossession of collateral. The following table summarizes the amortized cost of loans as of September 30, 2023 that were modified during the three and nine months ended September 30, 2023 by portfolio class and type of modification granted.
As of September 30, 2023, there were no unfunded loan commitments for loans that were modified during the periods presented. The following table summarizes the financial effect of loan modifications presented in the table above during the three and nine months ended September 30, 2023 by portfolio class.
The loan modifications did not significantly impact the determination of the allowance for credit losses on loans during the three and nine months ended September 30, 2023. The Bank closely monitors the performance of the modified loans to understand the effectiveness of its modification efforts. The following table summarizes the amortized cost and payment status of loans as of September 30, 2023 that were modified during the three and nine months ended September 30, 2023 by portfolio class.
There were no loans that defaulted (fully or partially charged-off or became 90 days or more past due) that were modified during the nine months ended September 30, 2023. Allocation of the Allowance for Credit Losses on Loans The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of September 30, 2023 and December 31, 2022.
Allowance for Credit Losses on Loans Rollforward The following table discloses activity in the allowance for credit losses on loans for the periods presented.
Pledged Loans Our FHLB line of credit is secured under terms of a blanket collateral agreement by a pledge of certain qualifying loans with unpaid principal balances of $1.299 billion and $1.298 billion at September 30, 2023 and December 31, 2022, respectively. In addition, we pledge eligible TIC loans, which totaled $108.5 million and $105.0 million at September 30, 2023 and December 31, 2022, respectively, to secure our borrowing capacity with the Federal Reserve Bank ("FRB"). For additional information, see Note 6, Borrowings. Related Party Loans |
Short-Term Borrowings and Other Obligations |
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Short-Term Borrowings and Other Obligations | Short-Term Borrowings and Other Obligations Federal Home Loan Bank – As of September 30, 2023 and December 31, 2022, the Bank had total lines of credit with the FHLB totaling $1.023 billion and $711.6 million, respectively, based on eligible collateral of certain loans and investment securities. Federal Funds Lines of Credit – The Bank had unsecured lines of credit with correspondent banks for overnight borrowings totaling $135.0 million and $150.0 million at September 30, 2023 and December 31, 2022, respectively. In general, interest rates on these lines approximate the federal funds target rate. Federal Reserve Bank – The Bank has a line of credit with the Federal Reserve Bank of San Francisco ("FRBSF") secured by certain residential loans. At September 30, 2023 and December 31, 2022, the Bank had total borrowing capacity under this line of $57.3 million and $58.7 million, respectively. In addition, under the Federal Reserve’s BTFP facility, the Bank could borrow up to an additional $274.6 million based on the par value of pledged investment securities as of September 30, 2023. Other Obligations – Finance lease liabilities totaling $335 thousand and $439 thousand at September 30, 2023 and December 31, 2022, respectively, are included in short-term in the consolidated statements of condition. See Note 8, Commitments and Contingencies, for additional information. Outstanding balances and weighted average interest rates on short-term borrowings and other obligations as of September 30, 2023 and December 31, 2022 are summarized in the following table.
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Stockholders' Equity |
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Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends On July 21, 2023, Bancorp declared a $0.25 per share cash dividend, paid August 11, 2023 to shareholders of record at the close of business on August 4, 2023. Subsequent to quarter end on October 20, 2023, Bancorp declared a $0.25 per share cash dividend, payable on November 10, 2023 to shareholders of record at the close of business on November 3, 2023. Share-Based Payments The fair value of stock options as of the grant date is recorded as stock-based compensation expense in the consolidated statements of comprehensive income (loss) over the requisite service period, which is generally the vesting period, with a corresponding increase in common stock. Stock-based compensation also includes compensation expense related to the issuance of restricted stock awards. The grant-date fair value of the restricted stock awards, which equals the grant date price, is recorded as compensation expense over the requisite service period with a corresponding increase in common stock as the shares vest. Beginning in 2018, stock option and restricted stock awards issued include a retirement eligibility clause whereby the requisite service period is satisfied at the retirement eligibility date. For those awards, we accelerate the recording of stock-based compensation when the award holder is eligible to retire. However, retirement eligibility does not affect the vesting of restricted stock or the exercisability of the stock options, which are based on the scheduled vesting period. Performance-based stock awards (restricted stock) are issued to a selected group of employees. Stock award vesting is contingent upon the achievement of pre-established long-term performance goals set by the Compensation Committee of the Board of Directors. Performance is measured over a three-year period and cliff vested. These performance-based stock awards were granted at a maximum opportunity level, and based on the achievement of the pre-established goals, the actual payouts can range from 0% to 200% of the target award. For performance-based stock awards, an estimate is made of the number of shares expected to vest based on the probability that the performance criteria will be achieved to determine the amount of compensation expense to be recognized. The estimate is re-evaluated quarterly and total compensation expense is adjusted for any change in the current period. We record excess tax benefits (deficiencies) resulting from the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and vesting of restricted stock awards as income tax benefits (expense) in the consolidated statements of comprehensive income with a corresponding decrease (increase) to current taxes payable. The holders of unvested restricted stock awards are entitled to dividends on the same per-share ratio as holders of common stock. Tax benefits for dividends paid on unvested restricted stock awards are recorded as tax benefits in the consolidated statements of comprehensive income with a corresponding decrease to current taxes payable. Dividends on forfeited awards are included in stock-based compensation expense. Stock options and restricted stock may be net settled in a cashless exercise by a reduction in the number of shares otherwise deliverable upon exercise or vesting in satisfaction of the exercise payment and/or applicable tax withholding requirements. During the nine months ended September 30, 2023, we withheld 3,132 shares totaling $86 thousand at a weighted-average price of $27.57 for cashless exercises. During the nine months ended September 30, 2022, we withheld 11,505 shares totaling $393 thousand at a weighted-average price of $34.13 for cashless exercises. Shares withheld under net settlement arrangements are available for future grants. Share Repurchase Program Bancorp had an approved share repurchase program with $34.7 million remaining that expired on July 31, 2023. On July 21, 2023, the Board of Directors approved the adoption of Bancorp's new share repurchase program, which replaced the existing one at that time, for up to $25.0 million and expiring on July 31, 2025. There have been no repurchases in 2023.
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Commitments and Contingent Liabilities |
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Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Financial Instruments with Off-Balance Sheet Risk We make commitments to extend credit in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because various commitments will expire without being fully drawn, the total commitment amount does not necessarily represent future cash requirements. Our credit loss exposure is equal to the contractual amount of the commitment in the event of nonperformance by the borrower. We use the same credit underwriting criteria for all credit exposure. The amount of collateral obtained, if deemed necessary by us, is based on management's credit evaluation of the borrower. Collateral types pledged may include accounts receivable, inventory, other personal property and real property. The contractual amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows:
We record an allowance for credit losses on unfunded loan commitments at the balance sheet date based on estimates of the probability that these commitments will be drawn upon according to historical utilization experience of the different types of commitments and expected loss rates determined for pooled funded loans. The allowance for credit losses on unfunded commitments totaled $1.1 million and $1.5 million as of September 30, 2023 and December 31, 2022, respectively, which is included in interest payable and other liabilities in the consolidated statements of condition. We recorded no provision for credit losses on unfunded loan commitments in the third quarters of 2023 and 2022. The $342 thousand reversal of the provision for credit losses on unfunded loan commitments in the nine months of 2023 was due primarily to a decrease in total unfunded commitments, compared to a $318 thousand provision reversal in the nine months of 2022, due to improved economic forecasts at the time. Leases We lease premises under long-term non-cancelable operating leases with remaining terms of 7 months to 18 years, 8 months, most of which include escalation clauses and one or more options to extend the lease term, and some of which contain lease termination clauses. Lease terms may include certain renewal options that were considered reasonably certain to be exercised. We lease certain equipment under finance leases with initial terms of 3 years to 5 years. The equipment finance leases do not contain renewal options, bargain purchase options or residual value guarantees. The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities.
The following table shows supplemental disclosures of noncash investing and financing activities for the periods presented.
The following table shows components of operating and finance lease cost.
The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of September 30, 2023. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.
Litigation Matters Bancorp may be party to legal actions that arise from time to time in the normal course of business. Bancorp's management is not aware of any pending legal proceedings to which either it or the Bank may be a party or has recently been a party that will have a material adverse effect on the financial condition or results of operations of Bancorp or the Bank. The Bank is responsible for a proportionate share of certain litigation indemnifications provided to Visa U.S.A. ("Visa") by its member banks in connection with Visa's lawsuits related to anti-trust charges and interchange fees ("Covered Litigation"). We sold our remaining shares on July 13, 2023, however our proportionate share of the litigation indemnification liability does not change or transfer upon the sale of our Class B Visa shares to member banks or, per the terms of the sale, to the recent purchaser of our shares. Visa established an escrow account for the Covered Litigation that it periodically funds, which is expected to cover the settlement payment obligations. Litigation is ongoing and until the court approval process is complete, there is no assurance that Visa will resolve the claims as contemplated by the amended class settlement agreement, and additional lawsuits may arise from individual merchants who opted out of the class settlement. However, until the escrow account is fully depleted and the conversion rate of Class B to Class A common stock is reduced to zero, no future cash settlement payments are required by the member banks, such as us, on the Covered Litigation. Therefore, we are not required to record any contingent liabilities for the indemnification related to the Covered Litigation, as we consider the probability of losses to be remote.
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Derivative Financial Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Bank is exposed to certain risks from both its business operations and changes in economic conditions. As part of our asset/liability and interest rate risk management strategy, we may enter into interest rate derivative contracts to modify the repricing characteristics of certain of our interest-earning assets and interest-bearing liabilities. The Bank generally designates interest rate hedging agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Our credit exposure, if any, on interest rate swap asset positions is limited to the fair value (net of any collateral pledged to us) and interest payments of all swaps by each counterparty. Conversely, when an interest rate swap is in a liability position exceeding a certain threshold, we may be required to post collateral to the counterparty in an amount determined by the agreements. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. On July 7, 2023, the Bank entered into various interest rate swap agreements with notional values totaling $101.8 million split evenly between terms of 2.5 and 3.0 years to hedge balance sheet interest rate sensitivity and protect certain of our fixed rate available-for-sale securities against changes in fair value related to changes in the benchmark interest rate. The interest rate swaps involve the receipt of floating rate interest from a counterparty in exchange for us making fixed-rate interest payments over the lives of the agreements, without the exchange of the underlying notional values. The transactions were designated as partial term fair value hedges and structured such that the changes in fair value of the interest rate swaps are expected to be perfectly effective in offsetting the changes in the fair value of the hedged items attributable to changes in the SOFR OIS swap rate, the designated benchmark interest rate. Because the hedges met the criteria for using the shortcut method, there is no need to periodically reassess effectiveness during the term of the hedges. For fair value designated hedges, the gain or loss on the hedging instruments as well as the offsetting loss or gain on the hedged items, are recognized in current earnings as fair values change. In addition, we had four interest rate swap agreements on certain loans with our customers, which are scheduled to mature at various dates ranging from January 2026 to October 2037. The loan interest rate swaps were designated as fair value hedges and allowed us to offer long-term fixed-rate loans to customers without assuming the interest rate risk of a long-term asset. Converting our fixed-rate interest payments to floating-rate interest payments, generally benchmarked to the one-month U.S. dollar SOFR index, protects us against changes in the fair value of our loans associated with fluctuating interest rates. The notional amounts of the interest rate contracts are equal to the notional amounts of the hedged loans. Information on our derivatives follows:
1 See Note 3, Fair Value of Assets and Liabilities, for valuation methodology. The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of September 30, 2023 and December 31, 2022.
The following table presents the pretax net gains (losses) recognized in interest income related to our fair value hedges.
Our derivative transactions with the counterparty are under an International Swaps and Derivative Association (“ISDA”) master agreement that includes “right of set-off” provisions. “Right of set-off” provisions are legally enforceable rights to offset recognized amounts and there may be an intention to settle such amounts on a net basis. We do not offset such financial instruments for financial reporting purposes. Information on financial instruments that are eligible for offset in the consolidated statements of condition follows:
1 Amounts exclude accrued interest on swaps. For more information on how we account for our interest rate swaps, refer to Note 1 to the Consolidated Financial Statements included in our 2022 Form 10-K filed with the SEC on March 16, 2023.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Pay vs Performance Disclosure | |||||
Net income | $ 5,295 | $ 4,551 | $ 12,174 | $ 19,285 | $ 33,705 |
Basis of Presentation (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Bancorp, a bank holding company, and its wholly-owned bank subsidiary, Bank of Marin, a California state-chartered commercial bank. References to “we,” “our,” “us” mean Bancorp and the Bank that are consolidated for financial reporting purposes. The accompanying unaudited consolidated interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to those rules and regulations. Although we believe that the disclosures are adequate and the information presented is not misleading, we suggest that these interim financial statements be read in conjunction with the annual financial statements and the notes thereto included in our 2022 Annual Report on Form 10-K. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, which are necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in stockholders’ equity, and cash flows for the periods presented. All material intercompany transactions have been eliminated. The results of these interim periods may not be indicative of the results for the full year or for any other period.
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Earnings Per Share | Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities. |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Accounting Standards Adopted in 2023 In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendment eliminated the recognition measurement guidance for troubled debt restructured ("TDR") loans and instead enhanced disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty. In addition, the amendment required that an entity include in its vintage disclosures the current period gross loan charge-offs by year of origination. We early adopted the current period charge-off disclosures in the first quarter of 2022. We adopted the loan modification provisions as of January 1, 2023 using a modified retrospective method. The cumulative-effect adjustment to retained earnings was considered immaterial. Refer to Note 5, Loans and Allowance for Credit Losses on Loans, for additional information. In March 2022, the FASB issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. Among other things, the ASU renamed the "last-of-layer" method to the "portfolio layer" method and made fair value hedging more accessible for hedge accounting of interest rate risk for portfolios and financial assets. For example, the guidance permits an entity to apply the same portfolio hedging method to both prepayable and non-prepayable financial assets, thereby providing for consistency between accounting for similar hedges. We adopted the amendments on January 1, 2023, which had no effect on our existing hedge accounting, disclosures, financial condition or results of operations. In March 2020, the FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848). The amendments in this ASU are elective and provide optional guidance for a limited period of time to ease the potential burden of accounting for, or recognizing the effects of reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Topic 848 was further amended in January 2021 with ASU No. 2021-01, which provided additional guidance on certain optional expedients and scope of derivative instruments, and in December 2022 with ASU 2022-06, which extended the sunset date of Topic 848 to December 31, 2024 given the UK Financial Conduct Authority ("FCA") March 2021 announcement that the intended cessation date of certain tenors of USD LIBOR would be June 30, 2023. An entity may elect the amendments in these updates at an interim period with adoption methods varying based on transaction type. As of September 30, 2023, we had four interest rate swap contracts with notional values totaling $11.3 million that were indexed to LIBOR, which transitioned to the Secured Overnight Financing Rate ("SOFR") effective July 1, 2023. The transition to SOFR did not have a material impact to either our financial condition or results of operations. Accounting Standards Not Yet Effective In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendment reduces diversity in practice by clarifying that a separate 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. In addition, this ASU provided amended examples to illustrate that a restriction that is a characteristic of the equity security, which market participants would take into account when pricing them, would be considered in measuring fair value. This ASU also introduces new disclosure requirements. The amendments are effective prospectively for years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements. As discussed in Note 4, Investment Securities, on July 13, 2023 we sold our remaining shares of Visa Inc. Class B restricted common stock. As a result of the sale, this update will not impact our financial condition, results of operations or disclosures. In March 2023, the FASB issued ASU No. 2023-01, Leases (Topic 842): Common Control Arrangements. For public companies, the amendment requires entities to amortize leasehold improvements associated with common control lease arrangements over the useful life of the improvements to the common control group, as opposed to the shorter of the remaining lease term and the useful life of the improvements for all other operating leases. The amendments are effective for years beginning after December 15, 2023, and may be adopted either prospectively or retrospectively. Early adoption is permitted for both interim and annual financial statements. We currently do not have common control lease arrangements, and therefore do not anticipate that the amendments will impact our financial condition and results of operations. In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Under current GAAP, an entity can only elect to apply the proportional amortization method to investments in low-income housing tax credit ("LIHTC") structures. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the consolidated statements of income as a component of income tax expense (benefit). The amendments will allow entities to elect to account for all other equity investments made primarily for the purpose of receiving income tax credits to using the proportional amortization method, regardless of the tax credit program through which the investment earns income tax credits, when certain conditions are met. The amendments are effective for fiscal years beginning after December 15, 2023, and may be adopted either on a modified retrospective basis or retrospectively. Other than investments in LIHTC funds, as disclosed in Note 4, Investment Securities, we currently have no other equity investments made primarily for the purpose of receiving income tax credits, and therefore do not anticipate that the amendments will impact our financial condition and results of operations.
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Fair Value Hierarchy and Fair Value Measurement | We group our assets and liabilities that are measured at fair value into three levels within the fair value hierarchy, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1: Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations for which all significant assumptions are observable or can be corroborated by observable market data. Level 3: Valuations are based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Values are determined using pricing models and discounted cash flow models and may include significant management judgment and estimation. Transfers between levels of the fair value hierarchy are recognized through our monthly and/or quarterly valuation process in the reporting period during which the event or circumstances that caused the transfer occurred. No such transfers occurred in the years presented. Available-for-sale securities are recorded at fair value on a recurring basis. When available, quoted market prices (Level 1) are used to determine the fair value of available-for-sale securities. Level 1 securities include U.S. Treasury securities. If quoted market prices are not available, we obtain pricing information from a reputable third-party service provider, who may utilize valuation techniques that use current market-based or independently sourced parameters, such as bid/ask prices, dealer-quoted prices, interest rates, benchmark yield curves, prepayment speeds, probability of default, loss severity and credit spreads (Level 2). Level 2 securities include asset-backed securities, obligations of state and political subdivisions, U.S. agencies or government-sponsored agencies' debt securities, mortgage-backed securities, government agency-issued, and corporate bonds.Held-to-maturity securities may be subject to an allowance for credit losses as a result of our evaluation of expected losses due to credit quality factors. Fair value of held-to-maturity securities is determined using the same techniques discussed above for available-for-sale securities.On a recurring basis, derivative financial instruments are recorded at fair value, which is based on the income approach using observable Level 2 market inputs, reflecting market expectations of future interest rates as of the measurement date. Standard valuation techniques are used to calculate the present value of the future expected cash flows assuming an orderly transaction. Valuation adjustments may be made to reflect both our own credit risk and the counterparties’ credit risk in determining the fair value of the derivatives. These unobservable inputs are not considered significant inputs to the fair value measurement overall. Level 2 inputs for the valuations are limited to observable market prices for Secured Overnight Financing Rate ("SOFR") and Overnight Index Swap ("OIS") rates (for the very short term), quoted prices for SOFR futures contracts, observable market prices for SOFR and OIS swap rates, and one-month and three-month SOFR basis spreads at commonly quoted intervals. Mid-market pricing of the inputs is used as a practical expedient in the fair value measurements. We project spot rates at reset days specified by each swap contract to determine future cash flows, then discount to present value using OIS curves as of the measurement date. When the value of any collateral placed with counterparties is less than the interest rate derivative liability, a credit valuation adjustment ("CVA") is applied to reflect the credit risk we pose to counterparties. We have used the spread between the Standard & Poor's BBB rated U.S. Bank Composite rate and SOFR for the closest maturity term corresponding to the duration of the swaps to derive the CVA. Because there is little to no counterparty risk, we did not incorporate credit adjustments from our assessment of the counterparty credit risk in determining fair value. For further discussion on our methodology in valuing our derivative financial instruments, refer to Note 9, Derivative Financial Instruments and Hedging Activities. Certain financial assets may be measured at fair value on a non-recurring basis. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting or write-downs of individual assets, such as individually analyzed loans that are collateral dependent and other real estate owned ("OREO"). OREO is classified as Level 3 and represents collateral acquired through foreclosure and is initially recorded at fair value as established by a current appraisal of the collateral. Subsequent to foreclosure, OREO is carried at the lower of cost or fair value, less estimated costs to sell. On July 12, 2023, the Bank completed the sale of its only OREO property. Fair value of loans is based on exit price techniques and obtained from an independent third-party that uses its proprietary valuation model and methodology and may differ from actual price from a prospective buyer. The discounted cash flow valuation approach reflects key inputs and assumptions that are unobservable, such as loan probability of default, loss given default, prepayment speed, and market discount rates. Fair value of fixed-rate time deposits is estimated by discounting future contractual cash flows using discount rates that reflect the current observable market rates offered for time deposits of similar remaining maturities. Due to the short-term nature of the FHLB borrowings outstanding as of December 31, 2022, the carrying value approximated fair value. The fair value of the borrowings under the BTFP is estimated by discounting the contractual cash flow using the program's period end financing rate. The value of off-balance-sheet financial instruments is estimated based on the fee income associated with the commitments, which in the absence of credit exposure, is considered to approximate their settlement value.
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Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans | Commercial and Industrial Loans - Commercial loans are generally made to established small and mid-sized businesses to provide financing for their growth and working capital needs, equipment purchases and acquisitions. Management examines historical, current, and projected cash flows to determine the ability of the borrower to repay obligations as agreed. Commercial loans are made based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral and guarantor support. The cash flows of borrowers, however, may not occur as expected, and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed, such as accounts receivable and inventory, and typically include personal guarantees. We target stable businesses with guarantors who provide additional sources of repayment and have proven to be resilient in periods of economic stress. A weakened economy, and resultant decreased consumer and/or business spending, may have an effect on the credit quality of commercial loans. Commercial Real Estate Loans - Commercial real estate loans, which include income producing investment properties and owner-occupied real estate used for business purposes, are subject to underwriting standards and processes similar to commercial loans discussed above. We underwrite these loans to be repaid from cash flow from either the business or investment property and supported by real property collateral. Underwriting standards for commercial real estate loans include, but are not limited to, debt coverage and loan-to-value ratios. Furthermore, a large majority of our loans are guaranteed by the owners of the properties. Conditions in the real estate markets or downturn in the general economy may adversely affect our commercial real estate loans. In the event of a vacancy, we expect guarantors to carry the loans until they find a replacement tenant. The owner's substantial equity investment provides a strong economic incentive to continue to support the commercial real estate projects. As such, we have generally experienced a relatively low level of loss and delinquencies in this portfolio. Construction Loans - Construction loans are generally made to developers and builders to finance construction, renovation and occasionally land acquisitions in anticipation of near-term development. Construction loans include interest reserves that are used for the payment of interest during the development and marketing periods and are capitalized as part of the loan balance. When a construction loan is placed on nonaccrual status before the depletion of the interest reserve, we apply the interest funded by the interest reserve against the loan's principal balance. These loans are underwritten after evaluation of the borrower's financial strength, reputation, prior track record, and independent appraisals. We monitor all construction projects to determine whether they are on schedule, completed as planned and in accordance with the approved construction budgets. Significant events can affect the construction industry, including: the inherent volatility of real estate markets and vulnerability to delays due to weather, change orders, inability to obtain construction permits, labor or material shortages, and price changes. Estimates of construction costs and value associated with the completed project may be inaccurate. Repayment of construction loans is largely dependent on the ultimate success of the project. Consumer Loans - Consumer loans primarily consist of home equity lines of credit, other residential loans, floating homes, and indirect luxury auto loans, along with a small number of installment loans. Our other residential loans include tenancy-in-common fractional interest loans ("TIC") located almost entirely in San Francisco County. We originate consumer loans utilizing credit score information, debt-to-income ratio and loan-to-value ratio analysis. Diversification among consumer loan types, coupled with relatively small loan amounts that are spread across many individual borrowers, mitigates risk. We do not originate sub-prime residential mortgage loans, nor is it our practice to underwrite loans commonly referred to as "Alt-A mortgages," the characteristics of which are reduced documentation, borrowers with low FICO scores or collateral with high loan-to-value ratios. Credit Quality Indicators We use a risk rating system to evaluate asset quality, and to identify and monitor credit risk in individual loans, and in the loan portfolio. Our definitions of “Special Mention” risk graded loans, or worse, are consistent with those used by the Federal Deposit Insurance Corporation ("FDIC"). Our internally assigned grades are as follows: Pass and Watch - Loans to borrowers of acceptable or better credit quality. Borrowers in this category demonstrate fundamentally sound financial positions, repayment capacity, credit history and management expertise. Loans in this category must have an identifiable and stable source of repayment and meet the Bank’s policy regarding debt-service-coverage ratios. These borrowers are capable of sustaining normal economic, market or operational setbacks without significant financial consequences. Negative external industry factors are generally not present. The loan may be secured, unsecured or supported by non-real estate collateral for which the value is more difficult to determine and/or marketability is more uncertain. This category also includes “Watch” loans, where the primary source of repayment has been delayed. “Watch” is intended to be a transitional grade, with either an upgrade or downgrade within a reasonable period. Special Mention - Potential weaknesses that deserve close attention. If left uncorrected, those potential weaknesses may result in deterioration of the payment prospects for the asset. Special Mention assets do not present sufficient risk to warrant adverse classification. Substandard - Inadequately protected by either the current sound worth and paying capacity of the obligor or the collateral pledged, if any. A Substandard asset has a well-defined weakness or weaknesses that jeopardize(s) the liquidation of the debt. Substandard assets are characterized by the distinct possibility that we will sustain some loss if such weaknesses or deficiencies are not corrected. Well-defined weaknesses include adverse trends or developments of the borrower’s financial condition, managerial weaknesses and/or significant collateral deficiencies. Doubtful - Critical weaknesses that make collection or liquidation in full improbable. There may be specific pending events that work to strengthen the asset; however, the amount or timing of the loss may not be determinable. Pending events generally occur within one year of the asset being classified as Doubtful. Examples include: merger, acquisition, or liquidation; capital injection; guarantee; perfecting liens on additional collateral; and refinancing. Such loans are placed on non-accrual status and usually are collateral-dependent. We regularly review our credits for accuracy of risk grades whenever we receive new information and at each quarterly and year-end reporting period. Borrowers are generally required to submit financial information at regular intervals. Typically, commercial borrowers with lines of credit are required to submit financial information with reporting intervals ranging from monthly to annually depending on credit size, risk and complexity. In addition, investor commercial real estate borrowers with loans exceeding a certain dollar threshold are usually required to submit rent rolls or property income statements annually. We monitor construction loans monthly. We review home equity and other consumer loans based on delinquency. We also review loans graded “Watch” or worse, regardless of loan type, no less than quarterly.
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Basis of Presentation (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table shows: 1) weighted average basic shares, 2) potentially dilutive weighted average common shares related to stock options and unvested restricted stock awards, and 3) weighted average diluted shares. Basic earnings per share (“EPS”) are calculated by dividing net income by the weighted average number of common shares outstanding during each period, excluding unvested restricted stock awards. Diluted EPS are calculated using the weighted average number of potentially dilutive common shares. The number of potentially dilutive common shares included in the quarterly diluted EPS is computed using the average market prices during the three months included in the reporting period under the treasury stock method. The number of potentially dilutive common shares included in year-to-date diluted EPS is a year-to-date weighted average of potentially dilutive common shares included in each quarterly diluted EPS computation. In computing diluted EPS, we exclude anti-dilutive shares such as options whose exercise prices exceed the current common stock price, as they would not reduce EPS under the treasury method. We have two forms of outstanding common stock: common stock and unvested restricted stock awards. Holders of unvested restricted stock awards receive non-forfeitable dividends at the same rate as common shareholders and they both share equally in undistributed earnings. Under the two-class method, the difference in EPS is nominal for these participating securities.
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Fair Value of Assets and Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes our assets and liabilities that were required to be recorded at fair value on a recurring basis.
1 Other comprehensive income ("OCI") or net income ("NI").
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Schedule of Fair Value Assets Measured on Non-recurring Basis | The following table presents the carrying value of assets measured at fair value on a non-recurring basis and that were held in the consolidated statements of condition at each respective period end, by level within the fair value hierarchy as of September 30, 2023 and December 31, 2022.
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Schedule of Fair Value of Financial Instruments | The table below is a summary of fair value estimates for financial instruments as of September 30, 2023 and December 31, 2022, excluding financial instruments recorded at fair value on a recurring basis (summarized in the first table in this note). The carrying amounts in the following table are recorded in the consolidated statements of condition under the indicated captions. Further, we have not disclosed the fair value of financial instruments specifically excluded from disclosure requirements such as bank-owned life insurance policies ("BOLI"), lease obligations and non-maturity deposit liabilities. Additionally, we held shares of Federal Home Loan Bank ("FHLB") of San Francisco stock at cost as of September 30, 2023 and December 31, 2022, and Visa Inc. Class B common stock with no carrying value, as of December 31, 2022, which was sold entirely in July of 2023. There were no impairment or changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of September 30, 2023 or December 31, 2022. The values are discussed in Note 4, Investment Securities.
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Investment Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Held-to-Maturity Amortized Cost and Fair Value | A summary of the amortized cost, fair value and allowance for credit losses related to securities held-to-maturity as of September 30, 2023 and December 31, 2022 is presented below.
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Schedule of Bond Ratings for Held-to-Maturity Securities | The following table summarizes the amortized cost of our portfolio of held-to-maturity securities issued by states and political subdivisions and corporate bonds by Moody's and/or Standard & Poor's bond ratings as of September 30, 2023 and December 31, 2022.
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Schedule of Available-for-Sale Securities Amortized Cost and Fair Value | A summary of the amortized cost, fair value and allowance for credit losses related to securities available-for-sale as of September 30, 2023 and December 31, 2022 is presented below.
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Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment debt securities by contractual maturity at September 30, 2023 and December 31, 2022 are shown below. Expected maturities may differ from contractual maturities if the issuers of the securities have the right to call or prepay obligations with or without call or prepayment penalties.
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Schedule of Sale of Investment Securities and Gross Gains and Losses | Sales of investment securities and gross gains and losses are shown in the following table:
1 Refer to VISA Inc. Class B Common Stock section below for more information.
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Schedule of Financial Instruments Owned and Pledged as Collateral | The carrying values of pledged investment securities are shown in the following table:
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Schedule of Unrealized Loss on Investments | Those securities are summarized and classified according to the duration of the loss period in the tables below:
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Loans and Allowance for Credit Losses on Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans by Class | The following table presents the amortized cost of loans by portfolio class as of September 30, 2023 and December 31, 2022.
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Schedule of Loans by Risk Grade and Origination Year | The following tables present the loan portfolio by loan portfolio class, origination year and internal risk rating as of September 30, 2023 and December 31, 2022. The current year vintage table reflects gross charge-offs by loan portfolio class and year of origination. Generally, existing term loans that were re-underwritten are reflected in the table in the year of renewal. Lines of credit that have a conversion feature at the time of origination, such as construction to perm loans, are presented by year of origination.
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Schedule of Loans Outstanding and Aging Analysis | The following table shows the amortized cost of loans by portfolio class, payment aging and non-accrual status as of September 30, 2023 and December 31, 2022.
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Schedule of Collateral Dependent Non-Accrual Loans | The following table presents the amortized cost basis of individually analyzed collateral-dependent loans, which are all on non-accrual status, by portfolio class at September 30, 2023 and December 31, 2022.
1 There were no collateral-dependent residential real estate mortgage loans in process of foreclosure or in substance repossessed at September 30, 2023 and December 31, 2022. The weighted average loan-to-value of collateral dependent loans was approximately 61% at September 30, 2023 and 42% at December 31, 2022.
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Schedule of Loan Modifications to Borrowers Experiencing Financial Difficulty | The following table summarizes the amortized cost of loans as of September 30, 2023 that were modified during the three and nine months ended September 30, 2023 by portfolio class and type of modification granted.
The following table summarizes the financial effect of loan modifications presented in the table above during the three and nine months ended September 30, 2023 by portfolio class.
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Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the details of the allowance for credit losses on loans segregated by loan portfolio class as of September 30, 2023 and December 31, 2022.
The following table discloses activity in the allowance for credit losses on loans for the periods presented.
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Short-Term Borrowings and Other Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Outstanding balances and weighted average interest rates on short-term borrowings and other obligations as of September 30, 2023 and December 31, 2022 are summarized in the following table.
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Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Undrawn Loan Commitments and Standby Letters of Credit | The contractual amount of unfunded loan commitments and standby letters of credit not reflected in the consolidated statements of condition are as follows:
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Schedule of Operating and Finance Lease Right-of-Use Assets and Lease Liabilities | The following table shows the balances of operating and finance lease right-of-use assets and lease liabilities.
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Schedule of Components of Operating and Finance Lease Cost | The following table shows supplemental disclosures of noncash investing and financing activities for the periods presented.
The following table shows components of operating and finance lease cost.
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Schedule of Operating Lease Liability Maturities | The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of September 30, 2023. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.
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Schedule of Finance Lease Liability Maturities | The following table shows the future minimum lease payments, weighted average remaining lease terms, and weighted average discount rates under operating and finance lease arrangements as of September 30, 2023. The discount rates used to calculate the present value of lease liabilities were based on the collateralized FHLB borrowing rates that were commensurate with lease terms and minimum payments on the lease commencement date.
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Derivative Financial Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information on our derivatives follows:
1 See Note 3, Fair Value of Assets and Liabilities, for valuation methodology. The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of September 30, 2023 and December 31, 2022.
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Schedule of Derivative Instruments, Losses in Statement of Financial Performance | The following table presents the pretax net gains (losses) recognized in interest income related to our fair value hedges.
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Schedule of Offsetting Assets and Liabilities | Information on financial instruments that are eligible for offset in the consolidated statements of condition follows:
1 Amounts exclude accrued interest on swaps.
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Basis of Presentation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Weighted average basic shares outstanding (in shares) | 16,028 | 16,009 | 15,939 | 16,002 | 15,912 |
Potentially dilutive common shares related to: | |||||
Stock options (in shares) | 0 | 22 | 5 | 33 | |
Unvested restricted stock awards (in shares) | 8 | 13 | 10 | 14 | |
Weighted average diluted shares outstanding (in shares) | 16,036 | 16,016 | 15,974 | 16,017 | 15,959 |
Net income | $ 5,295 | $ 4,551 | $ 12,174 | $ 19,285 | $ 33,705 |
Basic EPS (in dollars per share) | $ 0.33 | $ 0.28 | $ 0.76 | $ 1.21 | $ 2.12 |
Diluted EPS (in dollars per share) | $ 0.33 | $ 0.28 | $ 0.76 | $ 1.20 | $ 2.11 |
Weighted average anti-dilutive shares not included in the calculation of diluted EPS (in shares) | 362 | 237 | 368 | 213 |
Recently Adopted and Issued Accounting Standards (Details) $ in Millions |
Sep. 30, 2023
USD ($)
contract
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Accounting Policies [Abstract] | |
Number of interest rate swap contracts | contract | 4 |
Derivative, notional amount | $ | $ 11.3 |
Fair Value of Assets and Liabilities - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 658,815 | $ 802,096 |
SBA-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,223 | 44,355 |
Debentures of government- sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 117,166 | 135,106 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,215 | 10,269 |
Obligations of state and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 83,722 | 102,123 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 34,556 | 33,276 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,462 | |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 384,933 | 475,505 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,223 | 44,355 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 117,166 | 135,106 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,215 | 10,269 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 83,722 | 102,123 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 34,556 | 33,276 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - loans) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 854 | 602 |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,462 | |
Carrying Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - AFS securities) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 367 | |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 384,933 | 475,505 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Mortgage-backed securities and collateralized mortgage obligations issued by U.S. government-sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 28,223 | 44,355 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | SBA-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 117,166 | 135,106 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Debentures of government- sponsored agencies | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,215 | 10,269 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | U.S. Treasury securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 83,722 | 102,123 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Obligations of state and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 34,556 | 33,276 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - loans) | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - loans) | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 854 | 602 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - loans) | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 0 | 0 |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,462 | |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Asset-backed securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - AFS securities) | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 0 | |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - AFS securities) | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | 367 | |
Fair Value | Assets and liabilities at fair value measured on a recurring basis | Derivative financial assets (interest rate contracts - AFS securities) | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative financial assets (interest rate contracts - loans) | $ 0 |
Fair Value of Assets and Liabilities - Narrative (Details) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023
USD ($)
security
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
security
|
|
Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Credit loss expense on held-to-maturity securities | $ | $ 0 | $ 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of securities | security | 0 | 0 |
Fair Value of Assets and Liabilities - Schedule of Fair Value Assets Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 658,815 | $ 802,096 |
Assets and liabilities at fair value measured on a recurring basis | Other real estate owned | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 455 |
Assets and liabilities at fair value measured on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Significant Other Observable Inputs (Level 2) | Other real estate owned | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Assets and liabilities at fair value measured on a recurring basis | Significant Unobservable Inputs (Level 3) | Other real estate owned | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | $ 455 |
Fair Value of Assets and Liabilities - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial assets (recorded at amortized cost): | ||
Investment securities held-to-maturity | $ 783,216 | $ 845,239 |
Level 1 | Carrying Value | ||
Financial assets (recorded at amortized cost): | ||
Cash and cash equivalents | 123,132 | 45,424 |
Level 1 | Fair Value | ||
Financial assets (recorded at amortized cost): | ||
Cash and cash equivalents | 123,132 | 45,424 |
Level 2 | Carrying Value | ||
Financial assets (recorded at amortized cost): | ||
Investment securities held-to-maturity | 935,142 | 972,207 |
Interest receivable | 11,714 | 13,069 |
Financial liabilities (recorded at amortized cost): | ||
Time deposits | 232,377 | 119,030 |
Federal Home Loan Bank short-term borrowings | 0 | 112,000 |
Federal Reserve Bank - Bank Term Funding Program ("BTFP") | 120,000 | 0 |
Interest payable | 1,643 | 75 |
Level 2 | Fair Value | ||
Financial assets (recorded at amortized cost): | ||
Investment securities held-to-maturity | 783,216 | 845,239 |
Interest receivable | 11,714 | 13,069 |
Financial liabilities (recorded at amortized cost): | ||
Time deposits | 233,757 | 118,333 |
Federal Home Loan Bank short-term borrowings | 0 | 112,000 |
Federal Reserve Bank - Bank Term Funding Program ("BTFP") | 119,882 | 0 |
Interest payable | 1,643 | 75 |
Level 3 | Carrying Value | ||
Financial assets (recorded at amortized cost): | ||
Loans, net | 2,062,682 | 2,069,563 |
Level 3 | Fair Value | ||
Financial assets (recorded at amortized cost): | ||
Loans, net | $ 1,949,647 | $ 1,993,866 |
Investment Securities - Schedule of Held-to-Maturity Amortized Cost and Fair Value (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | $ 935,142,000 | $ 972,207,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 935,142,000 | 972,207,000 |
Held-to-maturity, gross unrealized gains | 226,000 | 70,000 |
Held-to-maturity, gross unrealized losses | (152,152,000) | (127,038,000) |
Total | 783,216,000 | 845,239,000 |
Accrued interest | 2,600,000 | 3,700,000 |
MBS pass-through securities issued by FHLMC, FNMA and GNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 311,595,000 | 331,281,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 311,595,000 | 331,281,000 |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (61,870,000) | (50,147,000) |
Total | 249,725,000 | 281,134,000 |
CMOs issued by FHLMC | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 228,194,000 | 235,971,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 228,194,000 | 235,971,000 |
Held-to-maturity, gross unrealized gains | 71,000 | 59,000 |
Held-to-maturity, gross unrealized losses | (33,448,000) | (29,503,000) |
Total | 194,817,000 | 206,527,000 |
CMOs issued by FNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 104,031,000 | 111,904,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 104,031,000 | 111,904,000 |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (9,125,000) | (5,419,000) |
Total | 94,906,000 | 106,485,000 |
CMOs issued by GNMA | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 51,268,000 | 52,356,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 51,268,000 | 52,356,000 |
Held-to-maturity, gross unrealized gains | 155,000 | 11,000 |
Held-to-maturity, gross unrealized losses | (4,816,000) | (3,076,000) |
Total | 46,607,000 | 49,291,000 |
SBA-backed securities | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 1,853,000 | 2,372,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 1,853,000 | 2,372,000 |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (140,000) | (133,000) |
Total | 1,713,000 | 2,239,000 |
Debentures of government- sponsored agencies | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 146,050,000 | 145,823,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 146,050,000 | 145,823,000 |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (28,893,000) | (26,467,000) |
Total | 117,157,000 | 119,356,000 |
Obligations of state and political subdivisions | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 62,151,000 | 62,500,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 62,151,000 | 62,500,000 |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (12,066,000) | (10,741,000) |
Total | 50,085,000 | 51,759,000 |
Corporate bonds | ||
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items] | ||
Debt securities, held-to-maturity | 30,000,000 | 30,000,000 |
Allowance for Credit Losses | 0 | 0 |
Net Carrying Amount | 30,000,000 | 30,000,000 |
Held-to-maturity, gross unrealized gains | 0 | 0 |
Held-to-maturity, gross unrealized losses | (1,794,000) | (1,552,000) |
Total | $ 28,206,000 | $ 28,448,000 |
Investment Securities - Narrative (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Oct. 31, 2023
USD ($)
|
Mar. 31, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
security
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
security
|
Sep. 30, 2022
USD ($)
|
Jul. 07, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
security
|
|
Debt Securities, Available-for-sale [Line Items] | ||||||||
Held-to-maturity, allowance for credit Loss | $ 0 | $ 0 | $ 0 | |||||
Transfer of securities from available-for-sale to held-to-maturity at fair value | $ 357,500,000 | |||||||
Net unrealized pre-tax loss | 96,225,000 | 96,225,000 | $ 90,543,000 | |||||
Proceeds from sale of available-for-sale securities | $ 79,840,000 | $ 10,664,000 | $ 79,840,000 | $ 10,664,000 | ||||
Number of investment securities in unrealized loss position | security | 331 | 331 | 407 | |||||
Number of investment securities in unrealized loss position longer than 12 months | security | 323 | 323 | ||||||
Number of investment securities in unrealized loss position less than 12 months | security | 8 | 8 | ||||||
Debt securities, available-for-sale unrealized loss position, allowance for credit loss | $ 0 | $ 0 | $ 0 | |||||
Derivative, notional amount | 11,300,000 | 11,300,000 | ||||||
Subsequent event | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Proceeds from sale of available-for-sale securities | $ 55,000,000 | |||||||
Sale of available-for-sale securities, pretax net loss | 2,100,000 | |||||||
Sale of available-for-sale securities, loss net of tax | $ 1,500,000 | |||||||
Interest rate swap | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Derivative, notional amount | $ 101,800,000 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Net unrealized pre-tax loss | $ 14,800,000 | $ 14,800,000 |
Investment Securities - Schedule of Bond Ratings For Held-to-Maturity Securities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | $ 935,142 | $ 972,207 |
Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 62,151 | 62,500 |
Corporate bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 30,000 | 30,000 |
Moody's And/Or Standard & Poor's AAA Rating | Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 42,680 | 42,986 |
Moody's And/Or Standard & Poor's AAA Rating | Corporate bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 0 | 0 |
Moody's And/Or Standard & Poor's AA Rating | Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 19,471 | 19,514 |
Moody's And/Or Standard & Poor's AA Rating | Corporate bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 0 | 0 |
Moody's And/Or Standard & Poor's A Rating | Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | 0 | 0 |
Moody's And/Or Standard & Poor's A Rating | Corporate bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Debt securities, held-to-maturity | $ 30,000 | $ 30,000 |
Investment Securities - Schedule of Available-for-Sale Securities Amortized Cost and Fair Value (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | $ 755,038,000 | $ 892,605,000 |
Available-for-sale, gross unrealized gains | 2,000 | 34,000 |
Available-for-sale, gross unrealized losses | (96,225,000) | (90,543,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 658,815,000 | $ 802,096,000 |
Debt securities, available-for-sale, accrued interest, after allowance for credit loss, statement of financial position [Extensible Enumeration] | Interest receivable and other assets | Interest receivable and other assets |
Accrued interest | $ 2,700,000 | $ 3,200,000 |
MBS pass-through securities issued by FHLMC, FNMA and GNMA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 84,654,000 | 109,736,000 |
Available-for-sale, gross unrealized gains | 2,000 | 3,000 |
Available-for-sale, gross unrealized losses | (13,263,000) | (12,133,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 71,393,000 | 97,606,000 |
CMOs issued by FHLMC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 307,119,000 | 347,437,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | (37,236,000) | (33,682,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 269,883,000 | 313,755,000 |
CMOs issued by FNMA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 30,832,000 | 36,172,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | (4,012,000) | (3,852,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 26,820,000 | 32,320,000 |
CMOs issued by GNMA | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 20,505,000 | 35,120,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | (3,668,000) | (3,296,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 16,837,000 | 31,824,000 |
SBA-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 31,389,000 | 47,724,000 |
Available-for-sale, gross unrealized gains | 0 | 2,000 |
Available-for-sale, gross unrealized losses | (3,166,000) | (3,371,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 28,223,000 | 44,355,000 |
Debentures of government- sponsored agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 129,137,000 | 149,114,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | (11,971,000) | (14,008,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 117,166,000 | 135,106,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 11,918,000 | 11,904,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | (1,703,000) | (1,635,000) |
Allowance for Credit Losses | 0 | |
Fair Value | 10,215,000 | 10,269,000 |
Obligations of state and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 102,493,000 | 116,855,000 |
Available-for-sale, gross unrealized gains | 0 | 29,000 |
Available-for-sale, gross unrealized losses | (18,771,000) | (14,761,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 83,722,000 | 102,123,000 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 36,991,000 | 36,990,000 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | (2,435,000) | (3,714,000) |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 34,556,000 | 33,276,000 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale, amortized cost | 1,553,000 | |
Available-for-sale, gross unrealized gains | 0 | |
Available-for-sale, gross unrealized losses | (91,000) | |
Allowance for Credit Losses | 0 | |
Fair Value | $ 1,462,000 |
Investment Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Held-to-maturity Securities, Amortized Cost | ||
Within one year | $ 0 | $ 450 |
After one but within five years | 88,242 | 87,418 |
After five years through ten years | 304,952 | 262,072 |
After ten years | 541,948 | 622,267 |
Total | 935,142 | 972,207 |
Held-to-maturity Securities, Fair Value | ||
Within one year | 0 | 446 |
After one but within five years | 83,291 | 83,663 |
After five years through ten years | 247,742 | 222,280 |
After ten years | 452,183 | 538,850 |
Total | 783,216 | 845,239 |
Available-for-sale Securities, Amortized Cost | ||
Within one year | 25,103 | 1,254 |
After one but within five years | 327,723 | 335,813 |
After five years through ten years | 99,406 | 185,997 |
After ten years | 302,806 | 369,541 |
Total | 755,038 | 892,605 |
Available-for-sale Securities, Fair Value | ||
Within one year | 24,205 | 1,239 |
After one but within five years | 297,206 | 307,843 |
After five years through ten years | 85,685 | 166,273 |
After ten years | 251,719 | 326,741 |
Total | $ 658,815 | $ 802,096 |
Investments, Debt and Equity Securities - Schedule of Sale of Investment Securities and Gross Gains and Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Available-for-sale: | ||||
Sales proceeds | $ 79,840 | $ 10,664 | $ 79,840 | $ 10,664 |
Gross realized gains | 5 | 17 | 5 | 17 |
Gross realized losses | (2,798) | (80) | (2,798) | (80) |
Sale of equity securities: | ||||
Sales proceeds | 2,807 | 0 | 2,807 | 0 |
Gross realized gain | $ 2,807 | $ 0 | $ 2,807 | $ 0 |
Investment Securities - Schedule of Financial Instruments Owned and Pledged as Collateral (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | $ 863,127 | $ 234,226 |
State of California | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 205,132 | 232,540 |
Public deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 203,936 | 231,307 |
Trust deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 649 | 669 |
Internal checking account | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 547 | 564 |
Bankruptcy trustee deposits | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 1,321 | 1,686 |
FHLB Securities Backed Credit Program | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | 386,713 | 0 |
Federal Reserve Bank Term Funding Program | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available-for-sale securities pledged as collateral | $ 269,961 | $ 0 |
Investment Securities - Schedule of Unrealized Loss on Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | $ 60,224 | $ 359,313 |
Greater than or equal to 12 continuous months | 704,750 | 459,948 |
Total securities in a loss position | 764,974 | 819,261 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | (2,678) | (23,733) |
Greater than or equal to 12 continuous months | (149,474) | (103,305) |
Held-to-maturity, gross unrealized losses | (152,152) | (127,038) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 1,196 | 354,695 |
Available-for-sale, greater than 12 continuous months, fair value | 657,206 | 443,274 |
Available-for-sale, total securities in a loss position, fair value | 658,402 | 797,969 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | (36) | (33,887) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (96,189) | (56,656) |
Available-for-sale, total securities in a loss position, unrealized loss | (96,225) | (90,543) |
Marketable Securities, Fair Value | ||
Marketable securities, less than 12 continuous months, fair value | 61,420 | 714,008 |
Marketable securities, greater than 12 continuous months, fair value | 1,361,956 | 903,222 |
Marketable securities, total securities in a loss position, fair value | 1,423,376 | 1,617,230 |
Marketable Securities, Continuous Unrealized Loss | ||
Marketable securities, less than 12 continuous months, unrealized loss | (2,714) | (57,620) |
Marketable securities, greater than 12 continuous months, unrealized loss | (245,663) | (159,961) |
Marketable securities, total securities in a loss position, unrealized loss | (248,377) | (217,581) |
MBS pass-through securities issued by FHLMC, FNMA and GNMA | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 0 | 62,627 |
Greater than or equal to 12 continuous months | 249,726 | 218,507 |
Total securities in a loss position | 249,726 | 281,134 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | 0 | (5,960) |
Greater than or equal to 12 continuous months | (61,870) | (44,187) |
Held-to-maturity, gross unrealized losses | (61,870) | (50,147) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 44,630 |
Available-for-sale, greater than 12 continuous months, fair value | 70,980 | 52,235 |
Available-for-sale, total securities in a loss position, fair value | 70,980 | 96,865 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | (4,501) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (13,263) | (7,632) |
Available-for-sale, total securities in a loss position, unrealized loss | (13,263) | (12,133) |
CMOs issued by FHLMC | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 4,311 | 78,144 |
Greater than or equal to 12 continuous months | 181,530 | 113,796 |
Total securities in a loss position | 185,841 | 191,940 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | (68) | (5,874) |
Greater than or equal to 12 continuous months | (33,380) | (23,629) |
Held-to-maturity, gross unrealized losses | (33,448) | (29,503) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 169,760 |
Available-for-sale, greater than 12 continuous months, fair value | 269,883 | 143,995 |
Available-for-sale, total securities in a loss position, fair value | 269,883 | 313,755 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | (15,144) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (37,236) | (18,538) |
Available-for-sale, total securities in a loss position, unrealized loss | (37,236) | (33,682) |
CMOs issued by FNMA | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 41,398 | 106,485 |
Greater than or equal to 12 continuous months | 53,508 | 0 |
Total securities in a loss position | 94,906 | 106,485 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | (2,413) | (5,419) |
Greater than or equal to 12 continuous months | (6,712) | 0 |
Held-to-maturity, gross unrealized losses | (9,125) | (5,419) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 4,790 |
Available-for-sale, greater than 12 continuous months, fair value | 26,820 | 27,529 |
Available-for-sale, total securities in a loss position, fair value | 26,820 | 32,319 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | (235) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (4,012) | (3,617) |
Available-for-sale, total securities in a loss position, unrealized loss | (4,012) | (3,852) |
CMOs issued by GNMA | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 11,481 | 27,570 |
Greater than or equal to 12 continuous months | 25,859 | 10,331 |
Total securities in a loss position | 37,340 | 37,901 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | (154) | (1,676) |
Greater than or equal to 12 continuous months | (4,662) | (1,400) |
Held-to-maturity, gross unrealized losses | (4,816) | (3,076) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 8,214 |
Available-for-sale, greater than 12 continuous months, fair value | 16,837 | 23,612 |
Available-for-sale, total securities in a loss position, fair value | 16,837 | 31,826 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | (374) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (3,668) | (2,922) |
Available-for-sale, total securities in a loss position, unrealized loss | (3,668) | (3,296) |
SBA-backed securities | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 0 | 2,239 |
Greater than or equal to 12 continuous months | 1,713 | 0 |
Total securities in a loss position | 1,713 | 2,239 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | 0 | (133) |
Greater than or equal to 12 continuous months | (140) | 0 |
Held-to-maturity, gross unrealized losses | (140) | (133) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 37,845 |
Available-for-sale, greater than 12 continuous months, fair value | 28,223 | 6,133 |
Available-for-sale, total securities in a loss position, fair value | 28,223 | 43,978 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | (3,228) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (3,166) | (143) |
Available-for-sale, total securities in a loss position, unrealized loss | (3,166) | (3,371) |
Debentures of government- sponsored agencies | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 0 | 38,645 |
Greater than or equal to 12 continuous months | 117,157 | 80,711 |
Total securities in a loss position | 117,157 | 119,356 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | 0 | (2,530) |
Greater than or equal to 12 continuous months | (28,893) | (23,937) |
Held-to-maturity, gross unrealized losses | (28,893) | (26,467) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 19,054 |
Available-for-sale, greater than 12 continuous months, fair value | 117,166 | 116,052 |
Available-for-sale, total securities in a loss position, fair value | 117,166 | 135,106 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | (946) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (11,971) | (13,062) |
Available-for-sale, total securities in a loss position, unrealized loss | (11,971) | (14,008) |
U.S. Treasury securities | ||
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, fair value | 10,215 | 10,269 |
Available-for-sale, total securities in a loss position, fair value | 10,215 | 10,269 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | 0 |
Available-for-sale, greater than 12 continuous months, unrealized loss | (1,703) | (1,635) |
Available-for-sale, total securities in a loss position, unrealized loss | (1,703) | (1,635) |
Obligations of state and political subdivisions | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 3,034 | 15,155 |
Greater than or equal to 12 continuous months | 47,051 | 36,603 |
Total securities in a loss position | 50,085 | 51,758 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | (43) | (589) |
Greater than or equal to 12 continuous months | (12,023) | (10,152) |
Held-to-maturity, gross unrealized losses | (12,066) | (10,741) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 1,196 | 70,402 |
Available-for-sale, greater than 12 continuous months, fair value | 82,526 | 28,711 |
Available-for-sale, total securities in a loss position, fair value | 83,722 | 99,113 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | (36) | (9,459) |
Available-for-sale, greater than 12 continuous months, unrealized loss | (18,735) | (5,302) |
Available-for-sale, total securities in a loss position, unrealized loss | (18,771) | (14,761) |
Corporate bonds | ||
Debt Securities, Held-to-maturity, Fair Value | ||
Less than 12 continuous months | 0 | 28,448 |
Greater than or equal to 12 continuous months | 28,206 | 0 |
Total securities in a loss position | 28,206 | 28,448 |
Debt Securities, Held-to-maturity, Unrealized Loss | ||
Less than 12 continuous months | 0 | (1,552) |
Greater than or equal to 12 continuous months | (1,794) | 0 |
Held-to-maturity, gross unrealized losses | (1,794) | (1,552) |
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, fair value | 34,556 | 33,276 |
Available-for-sale, total securities in a loss position, fair value | 34,556 | 33,276 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | 0 |
Available-for-sale, greater than 12 continuous months, unrealized loss | (2,435) | (3,714) |
Available-for-sale, total securities in a loss position, unrealized loss | (2,435) | (3,714) |
Asset-backed securities | ||
Debt Securities, Available-For-Sale, Fair Value | ||
Available-for-sale, less than 12 continuous months, fair value | 0 | 0 |
Available-for-sale, greater than 12 continuous months, fair value | 0 | 1,462 |
Available-for-sale, total securities in a loss position, fair value | 0 | 1,462 |
Debt Securities, Available-for-sale, Unrealized Loss | ||
Available-for-sale, less than 12 continuous months, unrealized loss | 0 | 0 |
Available-for-sale, greater than 12 continuous months, unrealized loss | 0 | (91) |
Available-for-sale, total securities in a loss position, unrealized loss | $ 0 | $ (91) |
Investment Securities - Non-Marketable Securities Included in Other Assets (Details) - USD ($) |
9 Months Ended | ||||
---|---|---|---|---|---|
Jul. 13, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Oct. 26, 2023 |
Dec. 31, 2022 |
|
Schedule of Equity Method Investments [Line Items] | |||||
Federal home loan bank stock, par value (in usd per share) | $ 100 | ||||
Investments in low income housing tax credit funds | $ 2,100,000 | $ 2,500,000 | |||
Low income housing tax credits and other tax benefits | 450,000 | ||||
Low income housing amortization expense | 377,000 | ||||
Unfunded commitments for low income housing tax credit funds | 346,000 | ||||
Subsequent event | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Federal home loan bank, dividend rate percentage | 8.25% | ||||
Visa Inc. Class B common stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity securities, FV-NI gain | $ 2,800,000 | ||||
Low-income housing tax credit investment | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Impairment losses | 0 | $ 0 | |||
Visa Inc. Class B common stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of shares of securities carried at cost (in shares) | 10,439 | ||||
Carrying value of securities carried at cost | 0 | ||||
Asset Derivatives | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Federal home loan bank stock | $ 16,700,000 | $ 16,700,000 |
Loans and Allowance for Credit Losses on Loans - Schedule of Loans by Class (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | $ 2,086,942 | $ 2,092,546 | ||||
Allowance for credit losses on loans | (24,260) | $ (23,832) | (22,983) | $ (22,963) | $ (22,539) | $ (23,023) |
Total loans, net of allowance for credit losses on loans | 2,062,682 | 2,069,563 | ||||
Net deferred loan origination costs | 2,600 | 1,800 | ||||
Unrecognized purchase discounts on non-PCI loans | 2,200 | 2,600 | ||||
Financing receivable, accrued interest, net | 6,300 | 6,100 | ||||
Commercial loans | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 174,096 | 173,547 | ||||
Allowance for credit losses on loans | (1,808) | (1,831) | (1,794) | (1,958) | (1,699) | (1,709) |
Commercial real estate loans | Commercial owner-occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 346,307 | 354,877 | ||||
Allowance for credit losses on loans | (2,530) | (2,589) | (2,487) | (2,536) | (2,617) | (2,776) |
Commercial real estate loans | Commercial non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 1,190,813 | 1,191,889 | ||||
Allowance for credit losses on loans | (13,624) | (13,201) | (12,676) | (12,738) | (12,439) | |
Commercial real estate loans | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 109,305 | 114,373 | ||||
Allowance for credit losses on loans | (2,018) | (1,942) | (1,937) | (1,784) | (1,737) | (1,653) |
Residential loans | Home equity | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 83,267 | 88,748 | ||||
Allowance for credit losses on loans | (565) | (561) | (558) | (542) | (530) | (595) |
Residential loans | Other residential | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 116,674 | 112,123 | ||||
Allowance for credit losses on loans | (605) | (599) | (595) | (590) | (585) | (644) |
Consumer loans | Installment and other consumer loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans, at amortized cost | 66,480 | 56,989 | ||||
Allowance for credit losses on loans | $ (951) | $ (940) | $ (868) | $ (815) | $ (733) | $ (621) |
Loans and Allowance for Credit Losses on Loans - Schedule of Loans by Risk Grade and Origination Year (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | $ 122,716 | $ 122,716 | $ 338,104 | ||
Financing receivable, originated, year two | 321,023 | 321,023 | 336,584 | ||
Financing receivable, originated, year three | 323,374 | 323,374 | 280,304 | ||
Financing receivable, originated, year four | 269,265 | 269,265 | 269,247 | ||
Financing receivable, originated, year five | 248,714 | 248,714 | 198,510 | ||
Prior | 638,991 | 638,991 | 496,053 | ||
Revolving Loans Amortized Cost | 162,859 | 162,859 | 173,744 | ||
Total | 2,086,942 | 2,086,942 | 2,092,546 | ||
Gross current period charge-offs, originated, year one | (7) | ||||
Gross current period charge-offs, originated, year two | (5) | ||||
Gross current period charge-offs, originated, year three | 0 | ||||
Gross current period charge-offs, originated, year four | (4) | ||||
Gross current period charge-offs, originated, year five | (3) | ||||
Gross current period charge-offs, originated, prior | (4) | ||||
Gross current period charge-offs, originated, revolving loans amortized cost | (6) | ||||
Gross current period charge-offs, originated, total | (6) | $ (10) | (29) | $ (32) | |
Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 121,269 | 121,269 | 337,829 | ||
Financing receivable, originated, year two | 311,141 | 311,141 | 316,949 | ||
Financing receivable, originated, year three | 295,841 | 295,841 | 266,856 | ||
Financing receivable, originated, year four | 255,665 | 255,665 | 261,577 | ||
Financing receivable, originated, year five | 227,103 | 227,103 | 188,741 | ||
Prior | 573,253 | 573,253 | 459,651 | ||
Revolving Loans Amortized Cost | 150,609 | 150,609 | 172,627 | ||
Total | 1,934,881 | 1,934,881 | 2,004,230 | ||
Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 1,447 | 1,447 | 275 | ||
Financing receivable, originated, year two | 7,349 | 7,349 | 17,371 | ||
Financing receivable, originated, year three | 25,324 | 25,324 | 12,097 | ||
Financing receivable, originated, year four | 12,682 | 12,682 | 6,510 | ||
Financing receivable, originated, year five | 17,777 | 17,777 | 9,769 | ||
Prior | 39,613 | 39,613 | 13,783 | ||
Revolving Loans Amortized Cost | 8,172 | 8,172 | 402 | ||
Total | 112,364 | 112,364 | 60,207 | ||
Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 2,533 | 2,533 | 2,264 | ||
Financing receivable, originated, year three | 2,209 | 2,209 | 1,252 | ||
Financing receivable, originated, year four | 918 | 918 | 1,160 | ||
Financing receivable, originated, year five | 3,834 | 3,834 | 0 | ||
Prior | 26,125 | 26,125 | 22,619 | ||
Revolving Loans Amortized Cost | 4,078 | 4,078 | 715 | ||
Total | 39,697 | 39,697 | 28,010 | ||
Doubtful | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | ||||
Financing receivable, originated, year two | 0 | ||||
Financing receivable, originated, year three | 99 | ||||
Financing receivable, originated, year four | 0 | ||||
Financing receivable, originated, year five | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost | 0 | ||||
Total | 99 | ||||
Commercial loans | Commercial and industrial | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 32,023 | 32,023 | 15,624 | ||
Financing receivable, originated, year two | 9,508 | 9,508 | 6,679 | ||
Financing receivable, originated, year three | 3,360 | 3,360 | 8,855 | ||
Financing receivable, originated, year four | 5,562 | 5,562 | 22,254 | ||
Financing receivable, originated, year five | 17,909 | 17,909 | 9,198 | ||
Prior | 26,227 | 26,227 | 25,579 | ||
Revolving Loans Amortized Cost | 79,507 | 79,507 | 85,358 | ||
Total | 174,096 | 174,096 | 173,547 | ||
Gross current period charge-offs, originated, year one | 0 | ||||
Gross current period charge-offs, originated, year two | 0 | ||||
Gross current period charge-offs, originated, year three | 0 | ||||
Gross current period charge-offs, originated, year four | 0 | ||||
Gross current period charge-offs, originated, year five | (3) | ||||
Gross current period charge-offs, originated, prior | (3) | ||||
Gross current period charge-offs, originated, revolving loans amortized cost | (1) | ||||
Gross current period charge-offs, originated, total | (4) | (9) | (7) | (9) | |
Commercial loans | Commercial and industrial | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 31,632 | 31,632 | 15,349 | ||
Financing receivable, originated, year two | 9,235 | 9,235 | 6,679 | ||
Financing receivable, originated, year three | 3,360 | 3,360 | 7,603 | ||
Financing receivable, originated, year four | 4,644 | 4,644 | 19,982 | ||
Financing receivable, originated, year five | 16,222 | 16,222 | 5,362 | ||
Prior | 23,223 | 23,223 | 24,954 | ||
Revolving Loans Amortized Cost | 67,670 | 67,670 | 84,655 | ||
Total | 155,986 | 155,986 | 164,584 | ||
Commercial loans | Commercial and industrial | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 391 | 391 | 275 | ||
Financing receivable, originated, year two | 0 | 0 | 0 | ||
Financing receivable, originated, year three | 0 | 0 | 0 | ||
Financing receivable, originated, year four | 0 | 0 | 2,272 | ||
Financing receivable, originated, year five | 1,687 | 1,687 | 3,836 | ||
Prior | 269 | 269 | 0 | ||
Revolving Loans Amortized Cost | 8,172 | 8,172 | 402 | ||
Total | 10,519 | 10,519 | 6,785 | ||
Commercial loans | Commercial and industrial | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 273 | 273 | 0 | ||
Financing receivable, originated, year three | 0 | 0 | 1,252 | ||
Financing receivable, originated, year four | 918 | 918 | 0 | ||
Financing receivable, originated, year five | 0 | 0 | 0 | ||
Prior | 2,735 | 2,735 | 625 | ||
Revolving Loans Amortized Cost | 3,665 | 3,665 | 301 | ||
Total | 7,591 | 7,591 | 2,178 | ||
Commercial real estate loans | Commercial owner-occupied | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 11,430 | 11,430 | 54,188 | ||
Financing receivable, originated, year two | 54,861 | 54,861 | 68,279 | ||
Financing receivable, originated, year three | 66,044 | 66,044 | 40,468 | ||
Financing receivable, originated, year four | 39,001 | 39,001 | 46,262 | ||
Financing receivable, originated, year five | 44,334 | 44,334 | 35,111 | ||
Prior | 130,637 | 130,637 | 110,569 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 346,307 | 346,307 | 354,877 | ||
Gross current period charge-offs, originated, total | 0 | 0 | 0 | 0 | |
Commercial real estate loans | Commercial owner-occupied | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 10,374 | 10,374 | 54,188 | ||
Financing receivable, originated, year two | 48,054 | 48,054 | 52,080 | ||
Financing receivable, originated, year three | 50,265 | 50,265 | 40,369 | ||
Financing receivable, originated, year four | 38,176 | 38,176 | 44,798 | ||
Financing receivable, originated, year five | 40,211 | 40,211 | 29,856 | ||
Prior | 118,370 | 118,370 | 104,377 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 305,450 | 305,450 | 325,668 | ||
Commercial real estate loans | Commercial owner-occupied | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 1,056 | 1,056 | 0 | ||
Financing receivable, originated, year two | 4,547 | 4,547 | 16,199 | ||
Financing receivable, originated, year three | 15,779 | 15,779 | 0 | ||
Financing receivable, originated, year four | 825 | 825 | 304 | ||
Financing receivable, originated, year five | 289 | 289 | 5,255 | ||
Prior | 10,463 | 10,463 | 4,493 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 32,959 | 32,959 | 26,251 | ||
Commercial real estate loans | Commercial owner-occupied | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 2,260 | 2,260 | 0 | ||
Financing receivable, originated, year three | 0 | 0 | 0 | ||
Financing receivable, originated, year four | 0 | 0 | 1,160 | ||
Financing receivable, originated, year five | 3,834 | 3,834 | 0 | ||
Prior | 1,804 | 1,804 | 1,699 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 7,898 | 7,898 | 2,859 | ||
Commercial real estate loans | Commercial owner-occupied | Doubtful | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | ||||
Financing receivable, originated, year two | 0 | ||||
Financing receivable, originated, year three | 99 | ||||
Financing receivable, originated, year four | 0 | ||||
Financing receivable, originated, year five | 0 | ||||
Prior | 0 | ||||
Revolving Loans Amortized Cost | 0 | ||||
Total | 99 | ||||
Commercial real estate loans | Commercial non-owner occupied | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 30,200 | 30,200 | 177,822 | ||
Financing receivable, originated, year two | 177,129 | 177,129 | 214,664 | ||
Financing receivable, originated, year three | 210,096 | 210,096 | 167,375 | ||
Financing receivable, originated, year four | 164,175 | 164,175 | 164,604 | ||
Financing receivable, originated, year five | 159,913 | 159,913 | 129,844 | ||
Prior | 449,300 | 449,300 | 337,523 | ||
Revolving Loans Amortized Cost | 0 | 0 | 57 | ||
Total | 1,190,813 | 1,190,813 | 1,191,889 | ||
Gross current period charge-offs, originated, total | 0 | 0 | |||
Commercial real estate loans | Commercial non-owner occupied | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 30,200 | 30,200 | 177,822 | ||
Financing receivable, originated, year two | 174,327 | 174,327 | 211,228 | ||
Financing receivable, originated, year three | 198,342 | 198,342 | 155,278 | ||
Financing receivable, originated, year four | 152,318 | 152,318 | 160,670 | ||
Financing receivable, originated, year five | 144,112 | 144,112 | 129,166 | ||
Prior | 399,022 | 399,022 | 308,509 | ||
Revolving Loans Amortized Cost | 0 | 0 | 57 | ||
Total | 1,098,321 | 1,098,321 | 1,142,730 | ||
Commercial real estate loans | Commercial non-owner occupied | Special Mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 2,802 | 2,802 | 1,172 | ||
Financing receivable, originated, year three | 9,545 | 9,545 | 12,097 | ||
Financing receivable, originated, year four | 11,857 | 11,857 | 3,934 | ||
Financing receivable, originated, year five | 15,801 | 15,801 | 678 | ||
Prior | 28,881 | 28,881 | 9,290 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 68,886 | 68,886 | 27,171 | ||
Commercial real estate loans | Commercial non-owner occupied | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 0 | 0 | 2,264 | ||
Financing receivable, originated, year three | 2,209 | 2,209 | 0 | ||
Financing receivable, originated, year four | 0 | 0 | 0 | ||
Financing receivable, originated, year five | 0 | 0 | 0 | ||
Prior | 21,397 | 21,397 | 19,724 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 23,606 | 23,606 | 21,988 | ||
Commercial real estate loans | Construction | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 17,173 | 17,173 | 49,262 | ||
Financing receivable, originated, year two | 44,236 | 44,236 | 19,393 | ||
Financing receivable, originated, year three | 18,827 | 18,827 | 28,861 | ||
Financing receivable, originated, year four | 29,069 | 29,069 | 7,745 | ||
Financing receivable, originated, year five | 0 | 0 | 9,112 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 109,305 | 109,305 | 114,373 | ||
Gross current period charge-offs, originated, total | 0 | 0 | 0 | 0 | |
Commercial real estate loans | Construction | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 17,173 | 17,173 | 49,262 | ||
Financing receivable, originated, year two | 44,236 | 44,236 | 19,393 | ||
Financing receivable, originated, year three | 18,827 | 18,827 | 28,861 | ||
Financing receivable, originated, year four | 29,069 | 29,069 | 7,745 | ||
Financing receivable, originated, year five | 0 | 0 | 9,112 | ||
Prior | 0 | 0 | 0 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 109,305 | 109,305 | 114,373 | ||
Residential loans | Home equity | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 0 | 0 | 0 | ||
Financing receivable, originated, year three | 0 | 0 | 0 | ||
Financing receivable, originated, year four | 0 | 0 | 0 | ||
Financing receivable, originated, year five | 0 | 0 | 0 | ||
Prior | 900 | 900 | 1,363 | ||
Revolving Loans Amortized Cost | 82,367 | 82,367 | 87,385 | ||
Total | 83,267 | 83,267 | 88,748 | ||
Gross current period charge-offs, originated, total | 0 | 0 | 0 | 0 | |
Residential loans | Home equity | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 0 | 0 | 0 | ||
Financing receivable, originated, year three | 0 | 0 | 0 | ||
Financing receivable, originated, year four | 0 | 0 | 0 | ||
Financing receivable, originated, year five | 0 | 0 | 0 | ||
Prior | 711 | 711 | 883 | ||
Revolving Loans Amortized Cost | 81,954 | 81,954 | 86,971 | ||
Total | 82,665 | 82,665 | 87,854 | ||
Residential loans | Home equity | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | 0 | 0 | ||
Financing receivable, originated, year two | 0 | 0 | 0 | ||
Financing receivable, originated, year three | 0 | 0 | 0 | ||
Financing receivable, originated, year four | 0 | 0 | 0 | ||
Financing receivable, originated, year five | 0 | 0 | 0 | ||
Prior | 189 | 189 | 480 | ||
Revolving Loans Amortized Cost | 413 | 413 | 414 | ||
Total | 602 | 602 | 894 | ||
Residential loans | Other residential | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 13,224 | 13,224 | 21,154 | ||
Financing receivable, originated, year two | 20,218 | 20,218 | 14,547 | ||
Financing receivable, originated, year three | 13,673 | 13,673 | 29,018 | ||
Financing receivable, originated, year four | 26,487 | 26,487 | 21,890 | ||
Financing receivable, originated, year five | 21,075 | 21,075 | 11,064 | ||
Prior | 21,997 | 21,997 | 14,450 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 116,674 | 116,674 | 112,123 | ||
Gross current period charge-offs, originated, total | 0 | 0 | 0 | 0 | |
Residential loans | Other residential | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 13,224 | 13,224 | 21,154 | ||
Financing receivable, originated, year two | 20,218 | 20,218 | 14,547 | ||
Financing receivable, originated, year three | 13,673 | 13,673 | 29,018 | ||
Financing receivable, originated, year four | 26,487 | 26,487 | 21,890 | ||
Financing receivable, originated, year five | 21,075 | 21,075 | 11,064 | ||
Prior | 21,997 | 21,997 | 14,450 | ||
Revolving Loans Amortized Cost | 0 | 0 | 0 | ||
Total | 116,674 | 116,674 | 112,123 | ||
Consumer loans | Installment and other consumer loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 18,666 | 18,666 | 20,054 | ||
Financing receivable, originated, year two | 15,071 | 15,071 | 13,022 | ||
Financing receivable, originated, year three | 11,374 | 11,374 | 5,727 | ||
Financing receivable, originated, year four | 4,971 | 4,971 | 6,492 | ||
Financing receivable, originated, year five | 5,483 | 5,483 | 4,181 | ||
Prior | 9,930 | 9,930 | 6,569 | ||
Revolving Loans Amortized Cost | 985 | 985 | 944 | ||
Total | 66,480 | 66,480 | 56,989 | ||
Gross current period charge-offs, originated, year one | (7) | ||||
Gross current period charge-offs, originated, year two | (5) | ||||
Gross current period charge-offs, originated, year three | 0 | ||||
Gross current period charge-offs, originated, year four | (4) | ||||
Gross current period charge-offs, originated, year five | 0 | ||||
Gross current period charge-offs, originated, prior | (1) | ||||
Gross current period charge-offs, originated, revolving loans amortized cost | (5) | ||||
Gross current period charge-offs, originated, total | (2) | $ (1) | (22) | $ (23) | |
Consumer loans | Installment and other consumer loans | Pass and Watch | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 18,666 | 18,666 | 20,054 | ||
Financing receivable, originated, year two | 15,071 | 15,071 | 13,022 | ||
Financing receivable, originated, year three | 11,374 | 11,374 | 5,727 | ||
Financing receivable, originated, year four | 4,971 | 4,971 | 6,492 | ||
Financing receivable, originated, year five | 5,483 | 5,483 | 4,181 | ||
Prior | 9,930 | 9,930 | 6,478 | ||
Revolving Loans Amortized Cost | 985 | 985 | 944 | ||
Total | $ 66,480 | $ 66,480 | 56,898 | ||
Consumer loans | Installment and other consumer loans | Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Financing receivable, originated, year one | 0 | ||||
Financing receivable, originated, year two | 0 | ||||
Financing receivable, originated, year three | 0 | ||||
Financing receivable, originated, year four | 0 | ||||
Financing receivable, originated, year five | 0 | ||||
Prior | 91 | ||||
Revolving Loans Amortized Cost | 0 | ||||
Total | $ 91 |
Loans and Allowance for Credit Losses on Loans - Schedule of Loans Outstanding and Aging Analysis (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | $ 2,086,942,000 | $ 2,086,942,000 | $ 2,092,546,000 | ||
Loans past due more than 90 days still accruing | 0 | 0 | 0 | ||
Financing receivable, nonaccrual, earning interest on cash basis | 0 | 0 | 0 | ||
Nonaccrual interest income reversal | 131,000 | $ 39,000 | 158,000 | $ 47,000 | |
Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 2,086,942,000 | 2,086,942,000 | 2,092,546,000 | ||
Non-accrual loans | 5,672,000 | 5,672,000 | 2,432,000 | ||
Non-accrual loans with no allowance | 5,672,000 | 5,672,000 | 2,432,000 | ||
Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 7,309,000 | 7,309,000 | 1,342,000 | ||
30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 2,215,000 | 2,215,000 | 420,000 | ||
60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,098,000 | 1,098,000 | 244,000 | ||
90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 3,996,000 | 3,996,000 | 678,000 | ||
Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 2,079,633,000 | 2,079,633,000 | 2,091,204,000 | ||
Commercial loans | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 174,096,000 | 174,096,000 | 173,547,000 | ||
Commercial loans | Commercial and industrial | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 174,096,000 | 174,096,000 | 173,547,000 | ||
Non-accrual loans | 0 | 0 | 0 | ||
Non-accrual loans with no allowance | 0 | 0 | 0 | ||
Commercial loans | Commercial and industrial | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,321,000 | 1,321,000 | 267,000 | ||
Commercial loans | Commercial and industrial | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,321,000 | 1,321,000 | 3,000 | ||
Commercial loans | Commercial and industrial | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial loans | Commercial and industrial | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 264,000 | ||
Commercial loans | Commercial and industrial | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 172,775,000 | 172,775,000 | 173,280,000 | ||
Commercial real estate loans | Commercial owner-occupied | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 346,307,000 | 346,307,000 | 354,877,000 | ||
Commercial real estate loans | Commercial owner-occupied | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 346,307,000 | 346,307,000 | 354,877,000 | ||
Non-accrual loans | 4,281,000 | 4,281,000 | 1,563,000 | ||
Non-accrual loans with no allowance | 4,281,000 | 4,281,000 | 1,563,000 | ||
Commercial real estate loans | Commercial owner-occupied | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 3,992,000 | 3,992,000 | 0 | ||
Commercial real estate loans | Commercial owner-occupied | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Commercial owner-occupied | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Commercial owner-occupied | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 3,992,000 | 3,992,000 | 0 | ||
Commercial real estate loans | Commercial owner-occupied | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 342,315,000 | 342,315,000 | 354,877,000 | ||
Commercial real estate loans | Commercial non-owner occupied | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,190,813,000 | 1,190,813,000 | 1,191,889,000 | ||
Commercial real estate loans | Commercial non-owner occupied | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,190,813,000 | 1,190,813,000 | 1,191,889,000 | ||
Non-accrual loans | 901,000 | 901,000 | 0 | ||
Non-accrual loans with no allowance | 901,000 | 901,000 | 0 | ||
Commercial real estate loans | Commercial non-owner occupied | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,698,000 | 1,698,000 | 0 | ||
Commercial real estate loans | Commercial non-owner occupied | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 797,000 | 797,000 | 0 | ||
Commercial real estate loans | Commercial non-owner occupied | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 901,000 | 901,000 | 0 | ||
Commercial real estate loans | Commercial non-owner occupied | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Commercial non-owner occupied | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,189,115,000 | 1,189,115,000 | 1,191,889,000 | ||
Commercial real estate loans | Construction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 109,305,000 | 109,305,000 | 114,373,000 | ||
Commercial real estate loans | Construction | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 109,305,000 | 109,305,000 | 114,373,000 | ||
Non-accrual loans | 0 | 0 | 0 | ||
Non-accrual loans with no allowance | 0 | 0 | 0 | ||
Commercial real estate loans | Construction | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Construction | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Construction | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Construction | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Commercial real estate loans | Construction | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 109,305,000 | 109,305,000 | 114,373,000 | ||
Residential loans | Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 83,267,000 | 83,267,000 | 88,748,000 | ||
Residential loans | Home equity | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 83,267,000 | 83,267,000 | 88,748,000 | ||
Non-accrual loans | 490,000 | 490,000 | 778,000 | ||
Non-accrual loans with no allowance | 490,000 | 490,000 | 778,000 | ||
Residential loans | Home equity | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 200,000 | 200,000 | 977,000 | ||
Residential loans | Home equity | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 319,000 | ||
Residential loans | Home equity | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 196,000 | 196,000 | 244,000 | ||
Residential loans | Home equity | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 4,000 | 4,000 | 414,000 | ||
Residential loans | Home equity | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 83,067,000 | 83,067,000 | 87,771,000 | ||
Residential loans | Other residential | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 116,674,000 | 116,674,000 | 112,123,000 | ||
Residential loans | Other residential | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 116,674,000 | 116,674,000 | 112,123,000 | ||
Non-accrual loans | 0 | 0 | 0 | ||
Non-accrual loans with no allowance | 0 | 0 | 0 | ||
Residential loans | Other residential | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 93,000 | ||
Residential loans | Other residential | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 93,000 | ||
Residential loans | Other residential | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Residential loans | Other residential | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Residential loans | Other residential | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 116,674,000 | 116,674,000 | 112,030,000 | ||
Consumer loans | Installment and other consumer loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 66,480,000 | 66,480,000 | 56,989,000 | ||
Consumer loans | Installment and other consumer loans | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 66,480,000 | 66,480,000 | 56,989,000 | ||
Non-accrual loans | 0 | 0 | 91,000 | ||
Non-accrual loans with no allowance | 0 | 0 | 91,000 | ||
Consumer loans | Installment and other consumer loans | Total past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 98,000 | 98,000 | 5,000 | ||
Consumer loans | Installment and other consumer loans | 30-59 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 97,000 | 97,000 | 5,000 | ||
Consumer loans | Installment and other consumer loans | 60-89 days past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 1,000 | 1,000 | 0 | ||
Consumer loans | Installment and other consumer loans | 90 days or more past due | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | 0 | 0 | 0 | ||
Consumer loans | Installment and other consumer loans | Current | Financial asset, other than financial asset acquired with credit deterioration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, at amortized cost | $ 66,382,000 | $ 66,382,000 | $ 56,984,000 |
Loans and Allowance for Credit Losses on Loans - Schedule of Collateral-Dependent Non-Accrual Loans (Details) - USD ($) |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | $ 24,260,000 | $ 23,832,000 | $ 22,983,000 | $ 22,963,000 | $ 22,539,000 | $ 23,023,000 |
Nonaccrual collateral dependent loans in process of foreclosure | $ 0 | $ 0 | ||||
Weighted average ratio of loans value to collateral dependent loans value | 61.00% | 42.00% | ||||
Collateral Pledged | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | $ 5,672,000 | $ 2,432,000 | ||||
Allowance for credit losses | 0 | 0 | ||||
Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 5,182,000 | 1,563,000 | ||||
Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 490,000 | 778,000 | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | 91,000 | ||||
Commercial real estate loans | Commercial owner-occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | 2,530,000 | 2,589,000 | 2,487,000 | 2,536,000 | 2,617,000 | 2,776,000 |
Commercial real estate loans | Commercial owner-occupied | Collateral Pledged | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 4,281,000 | 1,563,000 | ||||
Allowance for credit losses | 0 | 0 | ||||
Commercial real estate loans | Commercial owner-occupied | Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 4,281,000 | 1,563,000 | ||||
Commercial real estate loans | Commercial owner-occupied | Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | 0 | ||||
Commercial real estate loans | Commercial owner-occupied | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | 0 | ||||
Commercial real estate loans | Commercial non-owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | 13,624,000 | 13,201,000 | 12,676,000 | 12,738,000 | 12,439,000 | |
Commercial real estate loans | Commercial non-owner occupied | Collateral Pledged | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 901,000 | |||||
Allowance for credit losses | 0 | |||||
Commercial real estate loans | Commercial non-owner occupied | Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 901,000 | |||||
Commercial real estate loans | Commercial non-owner occupied | Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | |||||
Commercial real estate loans | Commercial non-owner occupied | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | |||||
Commercial real estate loans | Installment and other consumer loans | Collateral Pledged | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 91,000 | |||||
Allowance for credit losses | 0 | |||||
Commercial real estate loans | Installment and other consumer loans | Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | |||||
Commercial real estate loans | Installment and other consumer loans | Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | |||||
Commercial real estate loans | Installment and other consumer loans | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 91,000 | |||||
Residential loans | Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | 565,000 | 561,000 | 558,000 | 542,000 | 530,000 | 595,000 |
Residential loans | Home equity | Collateral Pledged | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 490,000 | 778,000 | ||||
Allowance for credit losses | 0 | 0 | ||||
Residential loans | Home equity | Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | 0 | ||||
Residential loans | Home equity | Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 490,000 | 778,000 | ||||
Residential loans | Home equity | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non-accrual loans | 0 | 0 | ||||
Residential loans | Other residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | $ 605,000 | $ 599,000 | $ 595,000 | $ 590,000 | $ 585,000 | $ 644,000 |
Loans and Allowance for Credit Losses on Loans - Amortized Cost Of Loan Modifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | $ 1,447 | $ 1,447 |
Term Extension | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 1,447 | 1,447 |
Commercial and industrial | Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 391 | 391 |
Commercial and industrial | Term Extension | Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | $ 391 | $ 391 |
Percent of Portfolio Class Total | 0.20% | 0.20% |
Commercial owner-occupied | Commercial real estate loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | $ 1,056 | $ 1,056 |
Commercial owner-occupied | Term Extension | Commercial real estate loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | $ 1,056 | $ 1,056 |
Percent of Portfolio Class Total | 0.30% | 0.30% |
Loans and Allowance for Credit Losses on Loans - Amortized Cost Of Loans Modifications (Details) - Term Extension |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
|
Commercial and industrial | Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Term Extension (in years) | 2 years 3 months 18 days | 2 years 3 months 18 days |
Commercial owner-occupied | Commercial real estate loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Weighted-Average Term Extension (in years) | 2 years 6 months | 2 years 6 months |
Loans and Allowance for Credit Losses on Loans - Amortized Cost Of Loan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | $ 1,447 | $ 1,447 |
Non-Accrual | 0 | 0 |
Total past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 1,447 | 1,447 |
30-59 days past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
60-89 days past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
90 days or more past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
Commercial loans | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 391 | 391 |
Non-Accrual | 0 | 0 |
Commercial loans | Commercial and industrial | Total past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 391 | 391 |
Commercial loans | Commercial and industrial | 30-59 days past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
Commercial loans | Commercial and industrial | 60-89 days past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
Commercial loans | Commercial and industrial | 90 days or more past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
Commercial real estate loans | Commercial owner-occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 1,056 | 1,056 |
Non-Accrual | 0 | 0 |
Commercial real estate loans | Commercial owner-occupied | Total past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 1,056 | 1,056 |
Commercial real estate loans | Commercial owner-occupied | 30-59 days past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
Commercial real estate loans | Commercial owner-occupied | 60-89 days past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | 0 | 0 |
Commercial real estate loans | Commercial owner-occupied | 90 days or more past due | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modifications | $ 0 | $ 0 |
Loans and Allowance for Credit Losses on Loans - Schedule of Allocation of the Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | $ 24,260 | $ 23,832 | $ 22,983 | $ 22,963 | $ 22,539 | $ 23,023 |
Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 11,567 | 12,651 | ||||
Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 12,686 | 10,323 | ||||
Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 7 | 9 | ||||
Commercial loans | Commercial and industrial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1,808 | 1,831 | 1,794 | 1,958 | 1,699 | 1,709 |
Commercial loans | Commercial and industrial | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1,042 | 1,079 | ||||
Commercial loans | Commercial and industrial | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 761 | 706 | ||||
Commercial loans | Commercial and industrial | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 5 | 9 | ||||
Commercial real estate loans | Commercial owner-occupied | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 2,530 | 2,589 | 2,487 | 2,536 | 2,617 | 2,776 |
Commercial real estate loans | Commercial owner-occupied | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1,315 | 1,497 | ||||
Commercial real estate loans | Commercial owner-occupied | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1,214 | 990 | ||||
Commercial real estate loans | Commercial owner-occupied | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1 | 0 | ||||
Commercial real estate loans | Commercial non-owner occupied | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 13,624 | 13,201 | 12,676 | 12,738 | 12,439 | |
Commercial real estate loans | Commercial non-owner occupied | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 7,324 | 7,937 | ||||
Commercial real estate loans | Commercial non-owner occupied | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 6,300 | 4,739 | ||||
Commercial real estate loans | Commercial non-owner occupied | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 0 | 0 | ||||
Commercial real estate loans | Construction | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 2,018 | 1,942 | 1,937 | 1,784 | 1,737 | 1,653 |
Commercial real estate loans | Construction | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 213 | 453 | ||||
Commercial real estate loans | Construction | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1,805 | 1,484 | ||||
Commercial real estate loans | Construction | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 0 | 0 | ||||
Residential loans | Home equity | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 565 | 561 | 558 | 542 | 530 | 595 |
Residential loans | Home equity | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 494 | 504 | ||||
Residential loans | Home equity | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 71 | 54 | ||||
Residential loans | Home equity | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 0 | 0 | ||||
Residential loans | Other residential | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 605 | 599 | 595 | 590 | 585 | 644 |
Residential loans | Other residential | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 566 | 571 | ||||
Residential loans | Other residential | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 38 | 24 | ||||
Residential loans | Other residential | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 1 | 0 | ||||
Consumer loans | Installment and other consumer loans | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 951 | 940 | 868 | 815 | 733 | 621 |
Consumer loans | Installment and other consumer loans | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 613 | 610 | ||||
Consumer loans | Installment and other consumer loans | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 338 | 258 | ||||
Consumer loans | Installment and other consumer loans | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 0 | 0 | ||||
Unallocated | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 2,159 | $ 2,169 | 2,068 | $ 2,000 | $ 2,199 | $ 2,286 |
Unallocated | Modeled expected credit losses | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 0 | 0 | ||||
Unallocated | Qualitative adjustments | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | 2,159 | 2,068 | ||||
Unallocated | Specific allocations | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Allowance for credit losses | $ 0 | $ 0 |
Loans and Allowance for Credit Losses on Loans - Schedule of Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | $ 23,832 | $ 22,539 | $ 22,983 | $ 23,023 | |
(Reversal) Provision | 425 | $ 500 | 422 | 1,275 | (63) |
(Charge-offs) | (6) | (10) | (29) | (32) | |
Recoveries | 9 | 12 | 31 | 35 | |
Ending balance | 24,260 | 23,832 | 22,963 | 24,260 | 22,963 |
Commercial loans | Commercial and industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,831 | 1,699 | 1,794 | 1,709 | |
(Reversal) Provision | (20) | 265 | 16 | 248 | |
(Charge-offs) | (4) | (9) | (7) | (9) | |
Recoveries | 1 | 3 | 5 | 10 | |
Ending balance | 1,808 | 1,831 | 1,958 | 1,808 | 1,958 |
Commercial real estate loans | Commercial owner-occupied | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 2,589 | 2,617 | 2,487 | 2,776 | |
(Reversal) Provision | (59) | (81) | 43 | (240) | |
(Charge-offs) | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 2,530 | 2,589 | 2,536 | 2,530 | 2,536 |
Commercial real estate loans | Commercial non-owner occupied | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 13,201 | 12,439 | 12,676 | ||
(Reversal) Provision | 423 | 299 | |||
(Charge-offs) | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Ending balance | 13,624 | 13,201 | 12,738 | 13,624 | 12,738 |
Commercial real estate loans | Commercial real estate, investor | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 12,676 | 12,739 | |||
(Reversal) Provision | 948 | (1) | |||
(Charge-offs) | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Ending balance | 13,624 | 12,738 | 13,624 | 12,738 | |
Commercial real estate loans | Construction | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 1,942 | 1,737 | 1,937 | 1,653 | |
(Reversal) Provision | 68 | 38 | 56 | 106 | |
(Charge-offs) | 0 | 0 | 0 | 0 | |
Recoveries | 8 | 9 | 25 | 25 | |
Ending balance | 2,018 | 1,942 | 1,784 | 2,018 | 1,784 |
Residential loans | Home equity | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 561 | 530 | 558 | 595 | |
(Reversal) Provision | 4 | 12 | 7 | (53) | |
(Charge-offs) | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 565 | 561 | 542 | 565 | 542 |
Residential loans | Other residential | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 599 | 585 | 595 | 644 | |
(Reversal) Provision | 6 | 5 | 10 | (54) | |
(Charge-offs) | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | 605 | 599 | 590 | 605 | 590 |
Consumer loans | Installment and other consumer loans | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 940 | 733 | 868 | 621 | |
(Reversal) Provision | 13 | 83 | 104 | 217 | |
(Charge-offs) | (2) | (1) | (22) | (23) | |
Recoveries | 0 | 0 | 1 | 0 | |
Ending balance | 951 | 940 | 815 | 951 | 815 |
Unallocated | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning balance | 2,169 | 2,199 | 2,068 | 2,286 | |
(Reversal) Provision | (10) | (199) | 91 | (286) | |
(Charge-offs) | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Ending balance | $ 2,159 | $ 2,169 | $ 2,000 | $ 2,159 | $ 2,000 |
Loans and Allowance for Credit Losses on Loans - Pledged Loans (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other residential | Federal Reserve Bank | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateral pledged | $ 108.5 | $ 105.0 |
Federal Home Loan Bank of San Francisco | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Collateral pledged | $ 1,299.0 | $ 1,298.0 |
Loans and Allowance for Credit Losses on Loans - Related Party (Details) - Related Party - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Related Party Transaction [Line Items] | ||
Related party loans | $ 6,300 | $ 6,400 |
Undisbursed commitment to related parties | $ 562 | $ 562 |
Short-Term Borrowings and Other Obligations - Lines of Credit (Details) - Line of credit - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Federal home loan bank borrowings | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | $ 1,023.0 | $ 711.6 |
Federal reserve line of credit | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | 57.3 | 58.7 |
Federal reserve line of credit | Federal Reserve Bank Term Funding Program | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | 274.6 | |
Unsecured debt | Federal funds purchased | ||
Line of Credit Facility [Line Items] | ||
Lines of credit | $ 135.0 | $ 150.0 |
Short-Term Borrowings and Other Obligations- Other Obligations (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Disclosure [Abstract] | ||
Finance lease liabilities | $ 335 | $ 439 |
Finance lease, liability, statement of financial position [Extensible List] | Debt and Lease Obligation | Debt and Lease Obligation |
Short-Term Borrowings and Other Obligations - Schedule of Borrowings (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Finance lease liabilities | $ 335 | $ 439 |
Short-term borrowings and other obligations | $ 120,335 | $ 112,439 |
Weighted Average Rate | 5.41% | 4.64% |
Other Debt Obligations | ||
Line of Credit Facility [Line Items] | ||
Finance lease liabilities | $ 335 | $ 439 |
Weighted Average Rate | 2.01% | 1.86% |
Line of credit | Federal home loan bank borrowings | ||
Line of Credit Facility [Line Items] | ||
Outstanding Balance | $ 0 | $ 112,000 |
Weighted Average Rate | 0.00% | 4.65% |
Line of credit | Federal Home Loan Bank Advances | ||
Line of Credit Facility [Line Items] | ||
Outstanding Balance | $ 0 | $ 0 |
Weighted Average Rate | 0.00% | 0.00% |
Line of credit | Federal funds purchased | ||
Line of Credit Facility [Line Items] | ||
Outstanding Balance | $ 0 | $ 0 |
Weighted Average Rate | 0.00% | 0.00% |
Line of credit | Federal Reserve Bank Term Funding Program | ||
Line of Credit Facility [Line Items] | ||
Outstanding Balance | $ 120,000 | $ 0 |
Weighted Average Rate | 5.42% | 0.00% |
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Oct. 20, 2023 |
Jul. 21, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Jul. 20, 2023 |
|
Class of Stock [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.25 | ||||
Shares withheld for tax withholding and exercise of options (in shares) | 3,132 | 11,505 | |||
Amount of shares withheld for tax withholding and exercise of options | $ 86 | $ 393 | |||
Shares withheld for tax withholding and exercise of options, weighted average price (in usd per share) | $ 27.57 | $ 34.13 | |||
Subsequent event | |||||
Class of Stock [Line Items] | |||||
Dividends declared per common share (in usd per share) | $ 0.25 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Share repurchase program, amount outstanding | $ 34,700 | ||||
Share repurchase program, amount approved to repurchase | $ 25,000 | ||||
Stock repurchased, including commissions (in shares) | 0 | 23,275 | |||
Performance-based stock awards | |||||
Class of Stock [Line Items] | |||||
Vesting period of performance-based stock awards | 3 years | ||||
Performance-based stock awards | Minimum | |||||
Class of Stock [Line Items] | |||||
Vesting percentage of performance-based awards | 0.00% | ||||
Performance-based stock awards | Maximum | |||||
Class of Stock [Line Items] | |||||
Vesting percentage of performance-based awards | 200.00% |
Commitments and Contingent Liabilities - Schedule of Undrawn Loan Commitments and Standby Letters of Credit (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Total unfunded loan commitments and standby letters of credit | ||
Other Commitments [Line Items] | ||
Total unfunded loan commitments and standby letters of credit | $ 510,171 | $ 566,870 |
Commercial lines of credit | ||
Other Commitments [Line Items] | ||
Total unfunded loan commitments and standby letters of credit | 260,117 | 292,204 |
Revolving home equity lines | ||
Other Commitments [Line Items] | ||
Total unfunded loan commitments and standby letters of credit | 220,148 | 218,907 |
Undisbursed construction loans | ||
Other Commitments [Line Items] | ||
Total unfunded loan commitments and standby letters of credit | 17,881 | 43,179 |
Personal and other lines of credit | ||
Other Commitments [Line Items] | ||
Total unfunded loan commitments and standby letters of credit | 9,268 | 10,842 |
Standby letters of credit | ||
Other Commitments [Line Items] | ||
Total unfunded loan commitments and standby letters of credit | $ 2,757 | $ 1,738 |
Commitments and Contingent Liabilities - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Jun. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Loss Contingencies [Line Items] | ||||||
Reversal of credit losses on unfunded loan commitments | $ 0 | $ (168) | $ 0 | $ (342) | $ (318) | |
Minimum | ||||||
Loss Contingencies [Line Items] | ||||||
Weighted average remaining term (in years) | 7 months | 7 months | ||||
Finance lease, initial contract terms (in years) | 3 years | 3 years | ||||
Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Weighted average remaining term (in years) | 18 years 8 months | 18 years 8 months | ||||
Finance lease, initial contract terms (in years) | 5 years | 5 years | ||||
Interest payable and other liabilities | Total unfunded loan commitments and standby letters of credit | ||||||
Loss Contingencies [Line Items] | ||||||
Allowance for off balance sheet commitments | $ 1,100 | $ 1,100 | $ 1,500 |
Commitments and Contingent Liabilities - Schedule of Operating and Finance Lease Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating leases: | ||
Operating lease right-of-use assets | $ 21,589 | $ 24,821 |
Operating lease liabilities | $ 24,040 | $ 26,639 |
Finance leases: | ||
Finance lease, right-of-use asset, statement of financial position [Extensible List] | Bank premises and equipment, net | Bank premises and equipment, net |
Finance lease right-of-use assets | $ 608 | $ 616 |
Accumulated amortization | (282) | (187) |
Finance lease right-of-use assets, net | 326 | 429 |
Finance lease liabilities | $ 335 | $ 439 |
Commitments and Contingent Liabilities - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use assets obtained in exchange for operating lease liabilities, net of tenant improvement allowances received | $ 572 | $ 4,989 |
Right-of-use assets obtained in exchange for finance lease liabilities | $ 7 | $ 41 |
Commitments and Contingent Liabilities - Schedule of Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease cost | $ 1,289 | $ 1,328 | $ 4,221 | $ 3,907 |
Variable lease cost | 0 | 0 | 0 | 0 |
Total operating lease cost | 1,289 | 1,328 | 4,221 | 3,907 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 37 | 31 | 111 | 93 |
Interest on finance lease liabilities | 2 | 1 | 5 | 2 |
Total finance lease cost | 39 | 32 | 116 | 95 |
Total lease cost | $ 1,328 | $ 1,360 | $ 4,337 | $ 4,002 |
Commitments and Contingent Liabilities - Schedule of Operating and Finance Lease Liability Maturity Schedule (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases | ||
2023 | $ 1,268 | |
2024 | 4,753 | |
2025 | 4,112 | |
2026 | 3,373 | |
2027 | 3,097 | |
Thereafter | 10,017 | |
Total minimum lease payments | 26,620 | |
Amounts representing interest (present value discount) | (2,580) | |
Present value of net minimum lease payments (lease liability) | $ 24,040 | $ 26,639 |
Weighted average remaining term (in years) | 7 years 4 months 24 days | |
Weighted average discount rate | 2.38% | |
Finance Leases | ||
2023 | $ 39 | |
2024 | 155 | |
2025 | 108 | |
2026 | 38 | |
2027 | 5 | |
Thereafter | 0 | |
Total minimum lease payments | 345 | |
Amounts representing interest (present value discount) | (10) | |
Present value of net minimum lease payments (lease liability) | $ 335 | $ 439 |
Weighted average remaining term (in years) | 2 years 4 months 24 days | |
Weighted average discount rate | 2.01% |
Derivative Financial Instruments and Hedging Activities - Narrative (Details) $ in Millions |
Jul. 07, 2023
USD ($)
|
Sep. 30, 2023
USD ($)
Derivative
|
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 11.3 | |
Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 101.8 | |
Interest rate swap | Minimum | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, term of contract | 2 years 6 months | |
Interest rate swap | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, term of contract | 3 years | |
Fair value hedge | Interest rate swap | Designated as hedging instrument | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | Derivative | 4 |
Derivative Financial Instruments and Hedging Activities - Information on Derivatives (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Accrued interest | $ 2,700 | $ 3,200 |
Available For Sale Securities | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Amounts of Hedged Assets | 108,444 | 0 |
Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets | (367) | 0 |
Loans Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Carrying Amounts of Hedged Assets | 10,266 | 11,319 |
Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets | (960) | (726) |
Fair value hedge | ||
Derivatives, Fair Value [Line Items] | ||
Accrued interest | 136 | |
Fair value hedge | Designated as hedging instrument | Interest rate swap | Available For Sale Securities | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts notional amount, asset derivatives | 101,770 | 0 |
Interest rate contracts notional amount, liability derivatives | 0 | 0 |
Interest rate contracts fair value, asset derivatives | 367 | 0 |
Interest rate contracts fair value, liability derivatives | 0 | 0 |
Fair value hedge | Designated as hedging instrument | Interest rate contract | Loans Receivable | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate contracts notional amount, asset derivatives | 11,277 | 12,046 |
Interest rate contracts notional amount, liability derivatives | 0 | 0 |
Interest rate contracts fair value, asset derivatives | 854 | 602 |
Interest rate contracts fair value, liability derivatives | $ 0 | $ 0 |
Derivative Financial Instruments and Hedging Activities - Interest Income (Details) - Fair value hedge - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Interest on Investment Securities | ||||
Derivatives, Fair Value [Line Items] | ||||
Increase (decrease) in fair value of interest rate swaps hedging instruments | $ 367 | $ 0 | $ 367 | $ 0 |
Receivable (payment) on interest rate swaps | 162 | 0 | 162 | 0 |
(Decrease) increase in carrying value included in the hedged | (367) | 0 | (367) | 0 |
Net gain (loss) recognized in interest income on loans | 162 | 0 | 162 | 0 |
Interest and Fees on Loans | ||||
Derivatives, Fair Value [Line Items] | ||||
Increase (decrease) in fair value of interest rate swaps hedging instruments | 223 | 547 | 252 | 1,734 |
Receivable (payment) on interest rate swaps | 74 | (19) | 192 | (169) |
(Decrease) increase in carrying value included in the hedged | (211) | (538) | (233) | (1,718) |
Decrease in value of yield maintenance agreement | (2) | (3) | (7) | (8) |
Net gain (loss) recognized in interest income on loans | $ 84 | $ (13) | $ 204 | $ (161) |
Derivative Financial Instruments and Hedging Activities - Schedule of Offsetting of Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | $ 1,221 | $ 602 |
Gross amounts offset in the statements of condition | 0 | 0 |
Net amounts of assets presented in the statements of condition | 1,221 | 602 |
Gross amounts not offset in the statements of condition, financial instruments | 0 | 0 |
Gross amounts not offset in the statements of condition, cash collateral received | 0 | 0 |
Net Amount | 1,221 | 602 |
Counterparty | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets | 1,221 | 602 |
Gross amounts offset in the statements of condition | 0 | 0 |
Net amounts of assets presented in the statements of condition | 1,221 | 602 |
Gross amounts not offset in the statements of condition, financial instruments | 0 | 0 |
Gross amounts not offset in the statements of condition, cash collateral received | 0 | 0 |
Net Amount | $ 1,221 | $ 602 |
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