(State or other jurisdiction of | (I.R.S. Employer | |||||||
Incorporation or organization) | Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Common Stock, no par value per share |
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||||||||
☑ | Smaller reporting company | ||||||||||
Emerging growth company |
Certifications |
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Federal funds sold | |||||||||||
Cash and cash equivalents | |||||||||||
Investment securities | |||||||||||
Marketable equity securities, at fair value | |||||||||||
Available for sale investment securities, at fair value | |||||||||||
Held to maturity investment securities, at amortized cost (fair values of $ | |||||||||||
Total investment securities | |||||||||||
Loans receivable (net of ACL-Loans of $ | |||||||||||
Accrued interest receivable | |||||||||||
Federal Home Loan Bank stock, at cost | |||||||||||
Premises and equipment, net | |||||||||||
Bank-owned life insurance | |||||||||||
Goodwill | |||||||||||
Deferred income taxes, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Liabilities | |||||||||||
Deposits | |||||||||||
Noninterest bearing deposits | $ | $ | |||||||||
Interest bearing deposits | |||||||||||
Total deposits | |||||||||||
Advances from the Federal Home Loan Bank | |||||||||||
Subordinated debentures (face value of $ | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Shareholders' equity | |||||||||||
Common stock, | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | |||||||||||||||||||
Interest and dividends on securities | |||||||||||||||||||||||
Interest on cash and cash equivalents | |||||||||||||||||||||||
Total interest and dividend income | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Interest expense on deposits | |||||||||||||||||||||||
Interest expense on borrowings | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
(Credit) provision for credit losses | ( | ||||||||||||||||||||||
Net interest income after (credit) provision for credit losses | |||||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||
Bank-owned life insurance | |||||||||||||||||||||||
Service charges and fees | |||||||||||||||||||||||
Gains and fees from sales of loans | ( | ||||||||||||||||||||||
Other | ( | ( | ( | ||||||||||||||||||||
Total noninterest income | |||||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Occupancy and equipment | |||||||||||||||||||||||
Professional services | |||||||||||||||||||||||
Data processing | |||||||||||||||||||||||
Director fees | |||||||||||||||||||||||
FDIC insurance | |||||||||||||||||||||||
Marketing | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total noninterest expense | |||||||||||||||||||||||
Income before income tax expense | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings Per Common Share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Dividends per common share | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Unrealized (losses) gains on securities: | |||||||||||||||||||||||
Unrealized holding (losses) gains on available for sale securities | ( | ( | ( | ( | |||||||||||||||||||
Reclassification adjustment for gains realized in net income | |||||||||||||||||||||||
Net change in unrealized (losses) gains | ( | ( | ( | ( | |||||||||||||||||||
Income tax benefit (expense) | |||||||||||||||||||||||
Unrealized (losses) gains on securities, net of tax | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gains (losses) on interest rate swaps: | |||||||||||||||||||||||
Unrealized gains (losses) on interest rate swaps | |||||||||||||||||||||||
Income tax (expense) benefit | ( | ( | ( | ( | |||||||||||||||||||
Unrealized gains (losses) on interest rate swaps, net of tax | |||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Number of Outstanding Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |||||||||||||||||||||||||
Balance at June 30, 2023 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Issuance of restricted stock | — | — | — | — | |||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | ||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ |
Number of Outstanding Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | |||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive (loss), net of tax | — | — | — | ( | ( | ||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Warrants exercised | — | — | — | — | — | ||||||||||||||||||||||||
Issuance of restricted stock | — | — | — | — | |||||||||||||||||||||||||
Stock options exercised | — | — | |||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | — | — | ( | ||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | ( | $ |
Number of Outstanding Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
— | — | ( | — | ( | |||||||||||||||||||||||||
Balance as of January 1, 2023 as adjusted for changes in accounting principle | ( | ||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive (loss), net of tax | — | — | — | ( | ( | ||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Forfeitures of restricted stock | ( | — | — | — | — | ||||||||||||||||||||||||
Issuance of restricted stock | — | — | — | — | |||||||||||||||||||||||||
Stock options exercised | — | — | |||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ |
Number of Outstanding Shares | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total | |||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | ||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | ( | ||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||||||||||||
Forfeitures of restricted stock | ( | — | — | — | — | ||||||||||||||||||||||||
Issuance of restricted stock | — | — | — | — | |||||||||||||||||||||||||
Stock options exercised | — | — | |||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | — | — | ( | ||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Net amortization of premiums and discounts on investment securities | |||||||||||
Provision for credit losses | |||||||||||
Credit for deferred income taxes | ( | ( | |||||||||
Change in fair value of marketable equity securities | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs | |||||||||||
Increase in cash surrender value of bank-owned life insurance | ( | ( | |||||||||
Gains and fees from sales of loans | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Loss (gain) on sale of premises and equipment | ( | ||||||||||
Net change in: | |||||||||||
Deferred loan fees | ( | ||||||||||
Accrued interest receivable | ( | ( | |||||||||
Other assets | ( | ||||||||||
Accrued expenses and other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Proceeds from principal repayments on available for sale securities | |||||||||||
Proceeds from principal repayments on held to maturity securities | |||||||||||
Purchases of marketable equity securities | ( | ( | |||||||||
Purchases of available for sale securities | ( | ||||||||||
Purchases of held to maturity securities | ( | ( | |||||||||
Net increase in loans | ( | ( | |||||||||
Proceeds from sales of loans not originated for sale | |||||||||||
Purchases of premises and equipment, net | ( | ( | |||||||||
Purchases of Federal Home Loan Bank stock | ( | ( | |||||||||
Net cash used in investing activities | ( | ( |
Nine Months Ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from financing activities | |||||||||||
Net change in time certificates of deposit | $ | $ | |||||||||
Net change in other deposits | ( | ( | |||||||||
Net change in FHLB advances | |||||||||||
Issuance of subordinated debt | |||||||||||
Proceeds from exercise of options | |||||||||||
Dividends paid on common stock | ( | ( | |||||||||
Repurchase of common stock | ( | ||||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents: | |||||||||||
Beginning of year | |||||||||||
End of period | $ | $ | |||||||||
Supplemental disclosures of cash flows information: | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | |||||||||||
Noncash investing and financing activities: | |||||||||||
Net change in unrealized gains or losses on available for sale securities | ( | ( | |||||||||
Net change in unrealized gains or losses on interest rate swaps | |||||||||||
Establishment of right-of-use asset and lease liability | |||||||||||
Transfer of loans from held-for-investment to held-for-sale | |||||||||||
Change in Consolidated Statement of Conditions | Tax Effected | Change to Retained Earnings from Adoption of CECL | |||||||||||||||
Total ACL- Loans | $ | $ | $ | ||||||||||||||
Total ACL-Unfunded Commitments | |||||||||||||||||
Total impact of CECL adoption | $ | $ | $ |
September 30, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||
U.S. Government and agency obligations | |||||||||||||||||||||||
Due from one through five years | $ | $ | $ | ( | $ | ||||||||||||||||||
Due from five through ten years | ( | ||||||||||||||||||||||
Due after ten years | ( | ||||||||||||||||||||||
Total U.S. Government and agency obligations | ( | ||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Due from five through ten years | ( | ||||||||||||||||||||||
Due after ten years | ( | ||||||||||||||||||||||
Total corporate bonds | ( | ||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||
State agency and municipal obligations | |||||||||||||||||||||||
Due after ten years | $ | $ | $ | ( | $ | ||||||||||||||||||
Government-sponsored mortgage backed securities | |||||||||||||||||||||||
No contractual maturity | |||||||||||||||||||||||
Total held to maturity securities | $ | $ | $ | ( | $ |
December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Available for sale securities: | |||||||||||||||||||||||
U.S. Government and agency obligations | |||||||||||||||||||||||
Due from one through five years | $ | $ | $ | ( | $ | ||||||||||||||||||
Due from five through ten years | ( | ||||||||||||||||||||||
Due after ten years | ( | ||||||||||||||||||||||
Total U.S. Government and agency obligations | ( | ||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||
Due from five through ten years | ( | ||||||||||||||||||||||
Due after ten years | ( | ||||||||||||||||||||||
Total corporate bonds | ( | ||||||||||||||||||||||
Total available for sale securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Held to maturity securities: | |||||||||||||||||||||||
State agency and municipal obligations | |||||||||||||||||||||||
Due after ten years | $ | $ | $ | ( | $ | ||||||||||||||||||
Government-sponsored mortgage backed securities | |||||||||||||||||||||||
No contractual maturity | |||||||||||||||||||||||
Total held to maturity securities | $ | $ | $ | ( | $ |
Length of Time in Continuous Unrealized Loss Position | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Percent Decline from Amortized Cost | Fair Value | Unrealized Loss | Percent Decline from Amortized Cost | Fair Value | Unrealized Loss | Percent Decline from Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and agency obligations | $ | $ | ( | % | $ | $ | ( | % | $ | $ | ( | % | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
State agency and municipal obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | $ | $ | ( | % | $ | $ | ( | % | $ | $ | ( | % |
Length of Time in Continuous Unrealized Loss Position | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Percent Decline from Amortized Cost | Fair Value | Unrealized Loss | Percent Decline from Amortized Cost | Fair Value | Unrealized Loss | Percent Decline from Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and agency obligations | $ | $ | ( | % | $ | $ | ( | % | $ | $ | ( | % | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
State agency and municipal obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | $ | $ | ( | % | $ | $ | ( | % | $ | $ | ( | % | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Real estate loans: | |||||||||||
Residential | $ | $ | |||||||||
Commercial | |||||||||||
Construction | |||||||||||
Commercial business (1) | |||||||||||
Consumer | |||||||||||
Total loans | |||||||||||
ACL-Loans | ( | ( | |||||||||
Deferred loan origination fees, net | ( | ( | |||||||||
Loans receivable, net | $ | $ |
Residential Real Estate | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
(Credit) provision for credit losses | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
Residential Real Estate | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
(Credit) provision for credit losses | ( | ||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
Residential Real Estate | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Balance As of December 31,2022 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Day1 effect of CECL | ( | ||||||||||||||||||||||||||||||||||
Balance as of January 1, 2023 as adjusted for changes in accounting principle | |||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
(Credit) provision for credit losses | ( | ( | |||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
Residential Real Estate | Commercial Real Estate | Construction | Commercial Business | Consumer | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Charge-offs | ( | ( | |||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||
(Credit) provision for credit losses | ( | ||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ |
Term Loans | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost Balances by Origination Year as of September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||||||||||||||||
Residential Real Estate Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Residential Real Estate Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Residential Real Estate charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Real Estate Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Commercial Real Estate Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Real Estate charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Construction Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Construction Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Construction charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Business Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Commercial Business Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Business charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Consumer Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Consumer charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Total Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Total charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ |
Term Loans | |||||||||||||||||||||||||||||||||||||||||
Amortized Cost Balances by Origination Year as of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | |||||||||||||||||||||||||||||||||||
Residential Real Estate Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Residential Real Estate Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Residential Real Estate charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Real Estate Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Commercial Real Estate Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Real Estate charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | ( | $ | $ | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||
Construction Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Construction Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Construction charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Business Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Commercial Business Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Commercial Business charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | ( | $ | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Consumer Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Consumer Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Consumer charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Total Loans | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Total charge-off | |||||||||||||||||||||||||||||||||||||||||
Current period net charge-offs | $ | ( | $ | $ | $ | $ | $ | ( | $ | ( |
Portfolio | ACL-Loans | ||||||||||
(In thousands) | |||||||||||
September 30, 2023 | |||||||||||
Loans individually evaluated for impairment: | |||||||||||
Residential real estate | $ | $ | |||||||||
Commercial real estate | |||||||||||
Construction | |||||||||||
Commercial business | |||||||||||
Consumer | |||||||||||
Subtotal | |||||||||||
Loans collectively evaluated for impairment: | |||||||||||
Residential real estate | |||||||||||
Commercial real estate | |||||||||||
Construction | |||||||||||
Commercial business | |||||||||||
Consumer | |||||||||||
Subtotal | |||||||||||
Total | $ | $ |
Portfolio | ACL-Loans | ||||||||||
(In thousands) | |||||||||||
December 31, 2022 | |||||||||||
Loans individually evaluated for impairment: | |||||||||||
Residential real estate | $ | $ | |||||||||
Commercial real estate | |||||||||||
Construction | |||||||||||
Commercial business | |||||||||||
Subtotal | |||||||||||
Loans collectively evaluated for impairment: | |||||||||||
Residential real estate | |||||||||||
Commercial real estate | |||||||||||
Construction | |||||||||||
Commercial business | |||||||||||
Consumer | |||||||||||
Subtotal | |||||||||||
Total | $ | $ |
Commercial Credit Quality Indicators | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial Real Estate | Construction | Commercial Business | Total | Commercial Real Estate | Construction | Commercial Business | Total | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||
Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ | $ | $ |
Residential and Consumer Credit Quality Indicators | |||||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Residential Real Estate | Consumer | Total | Residential Real Estate | Consumer | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||
Loss | |||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
September 30, 2023 | |||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | $ | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
(In thousands) | |||||||||||
Residential real estate | $ | $ | |||||||||
Commercial real estate | |||||||||||
Commercial business | |||||||||||
Construction | |||||||||||
Consumer | |||||||||||
Total | $ | $ |
Carrying Amount | Unpaid Principal Balance | Associated ACL-Loans | |||||||||||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Individually evaluated loans without a valuation allowance: | |||||||||||||||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | — | $ | — | |||||||||||||||||||||||||||
Commercial real estate | — | — | |||||||||||||||||||||||||||||||||
Construction | — | — | |||||||||||||||||||||||||||||||||
Commercial business | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||||||||
Total individually evaluated loans without a valuation allowance | — | — | |||||||||||||||||||||||||||||||||
Individually evaluated loans with a valuation allowance: | |||||||||||||||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
Total individually evaluated loans with a valuation allowance | |||||||||||||||||||||||||||||||||||
Total individually evaluated loans | $ | $ | $ | $ | $ | $ |
Average Carrying Amount | Interest Income Recognized | ||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Individually evaluated impaired loans without a valuation allowance: | |||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Total individually evaluated impaired loans without a valuation allowance | |||||||||||||||||||||||
Individually evaluated impaired loans with a valuation allowance: | |||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Total individually evaluated impaired loans with a valuation allowance | |||||||||||||||||||||||
Total individually evaluated impaired loans | $ | $ | $ | $ |
Average Carrying Amount | Interest Income Recognized | ||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Individually evaluated impaired loans without a valuation allowance: | |||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Total individually evaluated impaired loans without a valuation allowance | |||||||||||||||||||||||
Individually evaluated impaired loans with a valuation allowance: | |||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Consumer | |||||||||||||||||||||||
Total individually evaluated impaired loans with a valuation allowance | |||||||||||||||||||||||
Total individually evaluated impaired loans | $ | $ | $ | $ |
Number of Loans | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Number of Loans | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Commercial business | |||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Payment concession | $ | $ | $ | $ | |||||||||||||||||||
Maturity, rate and payment concession | |||||||||||||||||||||||
Rate concession | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Balance at Beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Reversal of prior unfunded reserve | ( | ||||||||||||||||||||||
Day 1 effect of CECL | |||||||||||||||||||||||
(Credit) for credit losses (unfunded commitments)1 | ( | ( | ( | ||||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
(Credit) provision for credit losses (loans) | $ | ( | $ | $ | $ | ||||||||||||||||||
(Credit) for credit losses (unfunded commitments)1 | ( | ( | |||||||||||||||||||||
(Credit) provision for credit losses | $ | ( | $ | $ | $ |
Net Unrealized Gain (Loss) on Available for Sale Securities | Net Unrealized Gain (Loss) on Interest Rate Swaps | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at June 30, 2023 | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | ( | ( | |||||||||||||||
Net other comprehensive (loss) income | ( | ||||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | $ | ( |
Net Unrealized Gain (Loss) on Available for Sale Securities | Net Unrealized Gain (Loss) on Interest Rate Swaps | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at June 30, 2022 | $ | ( | $ | $ | |||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | ( | ( | |||||||||||||||
Net other comprehensive (loss) income | ( | ( | |||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | $ | ( |
Net Unrealized Gain (Loss) on Available for Sale Securities | Net Unrealized Gain (Loss) on Interest Rate Swaps | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | $ | ( | ||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | ( | ( | |||||||||||||||
Net other comprehensive (loss) income | ( | ( | |||||||||||||||
Balance at September 30, 2023 | $ | ( | $ | $ | ( |
Net Unrealized Gain (Loss) on Available for Sale Securities | Net Unrealized Gain (Loss) on Interest Rate Swaps | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at December 31, 2021 | $ | $ | ( | $ | ( | ||||||||||||
Other comprehensive (loss) income before reclassifications, net of tax | ( | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax | |||||||||||||||||
Net other comprehensive (loss) income | ( | ||||||||||||||||
Balance at September 30, 2022 | $ | ( | $ | $ | ( |
Accumulated Other Comprehensive Income Components | Three Months Ended September 30, | Nine Months Ended September 30, | Associated Line Item in the Consolidated Statements of Income | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivatives | $ | $ | $ | $ | ( | Interest expense on borrowings | ||||||||||||||||||||||||||
Tax (expense) benefit | ( | ( | ( | Income tax expense | ||||||||||||||||||||||||||||
Net of tax | $ | $ | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Dividends to participating securities(1) | ( | ( | ( | ( | |||||||||||||||||||
Undistributed earnings allocated to participating securities(1) | ( | ( | ( | ( | |||||||||||||||||||
Net income for earnings per share calculation | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding, basic | |||||||||||||||||||||||
Effect of dilutive equity-based awards(2) | |||||||||||||||||||||||
Weighted average shares outstanding, diluted | |||||||||||||||||||||||
Net earnings per common share: | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||
Actual Capital | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
Bankwell Bank | |||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | % | % | % | ||||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | % | % | % | ||||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | % | % | % | ||||||||||||||||||||||||||||||||
Minimum Regulatory Capital Required for Capital Adequacy | Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||
Actual Capital | |||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
Bankwell Financial Group, Inc. | |||||||||||||||||||||||||||||||||||
September 30, 2023 | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | $ | % | $ | % | N/A | N/A | |||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | % | % | N/A | N/A | |||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | % | % | N/A | N/A | |||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | % | % | N/A | N/A |
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||
Actual Capital | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
Bankwell Bank | |||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | % | % | % | ||||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | % | % | % | ||||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | % | % | % | ||||||||||||||||||||||||||||||||
Minimum Regulatory Capital Required for Capital Adequacy | Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||||||||||||||||||
Actual Capital | |||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||
Bankwell Financial Group, Inc. | |||||||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets | $ | % | $ | % | N/A | N/A | |||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | % | % | N/A | N/A | |||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | % | % | N/A | N/A | |||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | % | % | N/A | N/A |
September 30, 2023 | December 31, 2022 | ||||||||||
(In thousands) | |||||||||||
Noninterest bearing demand deposit accounts | $ | $ | |||||||||
Interest bearing accounts: | |||||||||||
NOW | |||||||||||
Money market | |||||||||||
Savings | |||||||||||
Time certificates of deposit | |||||||||||
Total interest bearing accounts | |||||||||||
Total deposits | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
(In thousands) | |||||||||||
2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
After 2028 | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
NOW | $ | $ | $ | $ | |||||||||||||||||||
Money market | |||||||||||||||||||||||
Savings | |||||||||||||||||||||||
Time certificates of deposits | |||||||||||||||||||||||
Total interest expense on deposits | $ | $ | $ | $ |
Nine Months Ended September 30, 2023 | |||||||||||
Number of Shares | Weighted Average Exercise Price | ||||||||||
Options outstanding at beginning of period | $ | ||||||||||
Exercised | ( | ||||||||||
Options outstanding at end of period | |||||||||||
Options exercisable at end of period |
Nine Months Ended September 30, 2023 | |||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at beginning of period | (1) | $ | |||||||||
Granted | (2) | ||||||||||
Vested | ( | (3) | |||||||||
Forfeited | ( | (4) | |||||||||
Unvested at end of period |
September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||
Carrying Value of Hedged Asset | Hedged Items | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Fixed Rate Asset (1) | $ | $ | $ | ( | $ |
As of September 30, 2023 | |||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Original Notional Amount | Balance Sheet Location | Fair Value | Original Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Cash flow swaps | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Fair value swap | $ | Other assets | $ | $ | Accrued expenses and other liabilities | $ | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Cash flow swaps(1) | $ | Other assets | $ | $ | Accrued expenses and other liabilities | $ |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||
Original Notional Amount | Balance Sheet Location | Fair Value | Original Notional Amount | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Cash flow swaps | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Interest rate swaps(1) | $ | Other assets | $ | $ | Accrued expenses and other liabilities | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Interest rate swaps designated as cash flow hedges: | |||||||||||||||||||||||
Unrealized loss recognized in accumulated other comprehensive income before reclassifications | $ | $ | $ | $ | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ( | ( | ( | ||||||||||||||||||||
Income tax (expense) benefit on items recognized in accumulated other comprehensive income | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Gain (loss) on fair value hedging relationship: | |||||||||||||||||||||||
Hedged asset | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Fair value derivative designated as hedging instrument | |||||||||||||||||||||||
Total gain recognized in the consolidated statements of income within interest and fees on loans | $ | $ | $ | $ |
September 30, 2023 | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets(1) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | $ | $ | ( |
September 30, 2023 | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities(1) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets(1) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||||||||||
Derivative assets | $ | $ | $ | $ | $ | $ |
December 31, 2022 | |||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities(1) | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | $ | $ |
September 30, 2023 | |||||||||||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds sold | |||||||||||||||||||||||||||||
Marketable equity securities | |||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||
Held to maturity securities | |||||||||||||||||||||||||||||
Loans receivable, net | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
FHLB stock | |||||||||||||||||||||||||||||
Servicing asset, net of valuation allowance | |||||||||||||||||||||||||||||
Derivative asset | |||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
NOW and money market | |||||||||||||||||||||||||||||
Savings | |||||||||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||||||||
Advances from the FHLB | |||||||||||||||||||||||||||||
Subordinated debentures | |||||||||||||||||||||||||||||
Derivative liability |
December 31, 2022 | |||||||||||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds sold | |||||||||||||||||||||||||||||
Marketable equity securities | |||||||||||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||||||||||
Held to maturity securities | |||||||||||||||||||||||||||||
Loans receivable, net | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
FHLB stock | |||||||||||||||||||||||||||||
Servicing asset, net of valuation allowance | |||||||||||||||||||||||||||||
Derivative asset | |||||||||||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
NOW and money market | |||||||||||||||||||||||||||||
Savings | |||||||||||||||||||||||||||||
Time deposits | |||||||||||||||||||||||||||||
Accrued interest payable | |||||||||||||||||||||||||||||
Advances from the FHLB | |||||||||||||||||||||||||||||
Subordinated debentures | |||||||||||||||||||||||||||||
Servicing liability | |||||||||||||||||||||||||||||
Derivative liability |
Fair Value | |||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2023: | |||||||||||||||||
Marketable equity securities | $ | $ | $ | ||||||||||||||
Available for sale investment securities: | |||||||||||||||||
U.S. Government and agency obligations | |||||||||||||||||
Corporate bonds | |||||||||||||||||
Derivative asset | |||||||||||||||||
Derivative liability | |||||||||||||||||
December 31, 2022: | |||||||||||||||||
Marketable equity securities | $ | $ | $ | ||||||||||||||
Available for sale investment securities: | |||||||||||||||||
U.S. Government and agency obligations | |||||||||||||||||
Corporate bonds | |||||||||||||||||
Derivative asset | |||||||||||||||||
Derivative liability |
Fair Value | |||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2023: | |||||||||||||||||
Individually evaluated loans | $ | $ | $ | ||||||||||||||
Servicing asset, net | |||||||||||||||||
December 31, 2022: | |||||||||||||||||
Individually evaluated loans | $ | $ | $ | ||||||||||||||
Servicing asset, net | |||||||||||||||||
Fair Value | Valuation Methodology | Unobservable Input | Range | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
September 30, 2023: | |||||||||||||||||||||||
Individually evaluated loans | $ | Appraisals | Discount to appraised value | ||||||||||||||||||||
Appraisals, cash surrender value life insurance, securities, cash held as collateral | Discounts to appraised value and securities value | ||||||||||||||||||||||
Discounted cash flows | Discount rate | ||||||||||||||||||||||
$ | |||||||||||||||||||||||
Servicing asset, net | $ | Discounted cash flows | Discount rate | ||||||||||||||||||||
Prepayment rate | |||||||||||||||||||||||
December 31, 2022: | |||||||||||||||||||||||
Individually evaluated loans | $ | Appraisals | Discount to appraised value | ||||||||||||||||||||
Discounted cash flows | Discount rate | ||||||||||||||||||||||
$ | |||||||||||||||||||||||
Servicing asset, net | $ | Discounted cash flows | Discount rate | ||||||||||||||||||||
Prepayment rate | |||||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and Fed funds sold | $ | 265,115 | $ | 3,393 | 5.08 | % | $ | 130,440 | $ | 747 | 2.27 | % | |||||||||||||||||||||||
Securities(1) | 127,229 | 953 | 3.00 | 120,092 | 829 | 2.76 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 1,943,725 | 28,140 | 5.67 | 1,512,381 | 18,830 | 4.87 | |||||||||||||||||||||||||||||
Residential real estate | 53,966 | 671 | 4.97 | 62,915 | 586 | 3.72 | |||||||||||||||||||||||||||||
Construction | 209,154 | 3,908 | 7.31 | 116,256 | 1,512 | 5.09 | |||||||||||||||||||||||||||||
Commercial business | 539,185 | 10,394 | 7.54 | 431,917 | 7,058 | 6.39 | |||||||||||||||||||||||||||||
Consumer | 44,020 | 741 | 6.66 | 12,145 | 142 | 4.65 | |||||||||||||||||||||||||||||
Total loans | 2,790,050 | 43,854 | 6.15 | 2,135,614 | 28,128 | 5.15 | |||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 5,696 | 115 | 8.13 | 5,021 | 31 | 2.51 | |||||||||||||||||||||||||||||
Total earning assets | 3,188,090 | $ | 48,315 | 5.93 | % | 2,391,167 | $ | 29,735 | 4.87 | % | |||||||||||||||||||||||||
Other assets | 78,089 | 89,173 | |||||||||||||||||||||||||||||||||
Total assets | $ | 3,266,179 | $ | 2,480,340 | |||||||||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
NOW | $ | 102,149 | $ | 47 | 0.18 | % | $ | 119,593 | $ | 52 | 0.17 | % | |||||||||||||||||||||||
Money market | 922,036 | 9,064 | 3.90 | 828,541 | 2,346 | 1.12 | |||||||||||||||||||||||||||||
Savings | 105,366 | 817 | 3.08 | 189,279 | 474 | 0.99 | |||||||||||||||||||||||||||||
Time | 1,322,074 | 13,861 | 4.16 | 557,243 | 1,220 | 0.87 | |||||||||||||||||||||||||||||
Total interest bearing deposits | 2,451,625 | 23,789 | 3.85 | 1,694,656 | 4,092 | 0.96 | |||||||||||||||||||||||||||||
Borrowed Money | 159,103 | 1,783 | 4.39 | 135,221 | 993 | 2.87 | |||||||||||||||||||||||||||||
Total interest bearing liabilities | 2,610,728 | $ | 25,572 | 3.89 | % | 1,829,877 | $ | 5,085 | 1.10 | % | |||||||||||||||||||||||||
Noninterest bearing deposits | 345,988 | 383,048 | |||||||||||||||||||||||||||||||||
Other liabilities | 54,136 | 36,037 | |||||||||||||||||||||||||||||||||
Total liabilities | 3,010,852 | 2,248,962 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 255,327 | 231,378 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 3,266,179 | $ | 2,480,340 | |||||||||||||||||||||||||||||||
Net interest income(2) | $ | 22,743 | $ | 24,650 | |||||||||||||||||||||||||||||||
Interest rate spread | 2.04 | % | 3.77 | % | |||||||||||||||||||||||||||||||
Net interest margin(3) | 2.85 | % | 4.12 | % |
For the Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate (4) | Average Balance | Interest | Yield/ Rate (4) | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and Fed funds sold | $ | 281,033 | $ | 9,983 | 4.75 | % | $ | 240,252 | $ | 1,350 | 0.75 | % | |||||||||||||||||||||||
Securities(1) | 128,554 | 2,864 | 2.97 | 117,008 | 2,392 | 2.73 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 1,932,549 | 79,958 | 5.46 | 1,433,642 | 51,104 | 4.70 | |||||||||||||||||||||||||||||
Residential real estate | 56,798 | 1,957 | 4.59 | 67,705 | 1,810 | 3.56 | |||||||||||||||||||||||||||||
Construction | 194,396 | 10,582 | 7.18 | 108,249 | 4,482 | 5.46 | |||||||||||||||||||||||||||||
Commercial business | 546,329 | 32,073 | 7.74 | 402,876 | 17,011 | 5.57 | |||||||||||||||||||||||||||||
Consumer | 30,571 | 1,489 | 6.51 | 7,844 | 290 | 4.94 | |||||||||||||||||||||||||||||
Total loans | 2,760,643 | 126,059 | 6.02 | 2,020,316 | 74,697 | 4.88 | |||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 5,527 | 308 | 7.46 | 3,715 | 61 | 2.19 | |||||||||||||||||||||||||||||
Total earning assets | 3,175,757 | $ | 139,214 | 5.78 | % | 2,381,291 | $ | 78,500 | 4.35 | % | |||||||||||||||||||||||||
Other assets | 66,342 | 89,747 | |||||||||||||||||||||||||||||||||
Total assets | $ | 3,242,099 | $ | 2,471,038 | |||||||||||||||||||||||||||||||
Liabilities and shareholders' equity: | |||||||||||||||||||||||||||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||||||||||||||
NOW | $ | 97,741 | $ | 127 | 0.17 | % | $ | 122,792 | $ | 158 | 0.17 | % | |||||||||||||||||||||||
Money market | 910,840 | 23,532 | 3.45 | 909,106 | 4,672 | 0.69 | |||||||||||||||||||||||||||||
Savings | 117,984 | 2,404 | 2.72 | 194,013 | 678 | 0.47 | |||||||||||||||||||||||||||||
Time | 1,291,124 | 35,536 | 3.68 | 487,792 | 2,773 | 0.76 | |||||||||||||||||||||||||||||
Total interest bearing deposits | 2,417,689 | 61,599 | 3.41 | 1,713,703 | 8,281 | 0.65 | |||||||||||||||||||||||||||||
Borrowed Money | 161,166 | 5,238 | 4.29 | 101,685 | 2,137 | 2.77 | |||||||||||||||||||||||||||||
Total interest bearing liabilities | 2,578,855 | $ | 66,837 | 3.47 | % | 1,815,388 | $ | 10,418 | 0.77 | % | |||||||||||||||||||||||||
Noninterest bearing deposits | 374,943 | 398,728 | |||||||||||||||||||||||||||||||||
Other liabilities | 40,192 | 37,784 | |||||||||||||||||||||||||||||||||
Total liabilities | 2,993,990 | 2,251,900 | |||||||||||||||||||||||||||||||||
Shareholders' equity | 248,109 | 219,138 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 3,242,099 | $ | 2,471,038 | |||||||||||||||||||||||||||||||
Net interest income(2) | $ | 72,377 | $ | 68,082 | |||||||||||||||||||||||||||||||
Interest rate spread | 2.31 | % | 3.58 | % | |||||||||||||||||||||||||||||||
Net interest margin(3) | 3.04 | % | 3.81 | % |
Three Months Ended September 30, 2023 vs 2022 Increase (Decrease) | Nine Months Ended September 30, 2023 vs 2022 Increase (Decrease) | ||||||||||||||||||||||||||||||||||
(In thousands) | Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||||||||||||||||||
Cash and Fed funds sold | $ | 1,205 | $ | 1,440 | $ | 2,645 | $ | 267 | $ | 8,366 | $ | 8,633 | |||||||||||||||||||||||
Securities | 51 | 73 | 124 | 247 | 225 | 472 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 5,927 | 3,383 | 9,310 | 19,739 | 9,115 | 28,854 | |||||||||||||||||||||||||||||
Residential real estate | (92) | 177 | 85 | (322) | 469 | 147 | |||||||||||||||||||||||||||||
Construction | 1,545 | 851 | 2,396 | 4,360 | 1,739 | 6,099 | |||||||||||||||||||||||||||||
Commercial business | 1,933 | 1,404 | 3,337 | 7,170 | 7,892 | 15,062 | |||||||||||||||||||||||||||||
Consumer | 513 | 85 | 598 | 1,081 | 119 | 1,200 | |||||||||||||||||||||||||||||
Total loans | 9,826 | 5,900 | 15,726 | 32,028 | 19,334 | 51,362 | |||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 5 | 79 | 84 | 42 | 206 | 248 | |||||||||||||||||||||||||||||
Total change in interest and dividend income | 11,087 | 7,492 | 18,579 | 32,584 | 28,131 | 60,715 | |||||||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
NOW | (8) | 2 | (6) | (32) | 2 | (30) | |||||||||||||||||||||||||||||
Money market | 293 | 6,425 | 6,718 | 9 | 18,851 | 18,860 | |||||||||||||||||||||||||||||
Savings | (287) | 630 | 343 | (362) | 2,087 | 1,725 | |||||||||||||||||||||||||||||
Time | 3,361 | 9,280 | 12,641 | 9,830 | 22,933 | 32,763 | |||||||||||||||||||||||||||||
Total deposits | 3,359 | 16,337 | 19,696 | 9,445 | 43,873 | 53,318 | |||||||||||||||||||||||||||||
Borrowed money | 198 | 592 | 790 | 1,598 | 1,503 | 3,101 | |||||||||||||||||||||||||||||
Total change in interest expense | 3,557 | 16,929 | 20,486 | 11,043 | 45,376 | 56,419 | |||||||||||||||||||||||||||||
Change in net interest income | $ | 7,530 | $ | (9,437) | $ | (1,907) | $ | 21,541 | $ | (17,245) | $ | 4,296 |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Gains (losses) and fees from sales of loans | $ | 237 | $ | (15) | $ | 252 | Favorable | ||||||||||||||||
Bank-owned life insurance | 303 | 271 | 32 | 11.8 | |||||||||||||||||||
Service charges and fees | 294 | 240 | 54 | 22.5 | |||||||||||||||||||
Other | (48) | (94) | 46 | Favorable | |||||||||||||||||||
Total noninterest income | $ | 786 | $ | 402 | $ | 384 | 95.5 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Gains and fees from sales of loans | $ | 1,893 | $ | 1,224 | $ | 669 | 54.7 | % | |||||||||||||||
Bank-owned life insurance | 876 | 796 | 80 | 10.1 | |||||||||||||||||||
Service charges and fees | 941 | 729 | 212 | 29.1 | |||||||||||||||||||
Other | 3 | (237) | 240 | Favorable | |||||||||||||||||||
Total noninterest income | $ | 3,713 | $ | 2,512 | $ | 1,201 | 47.8 | % |
Three Months Ended September 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Salaries and employee benefits | $ | 6,036 | $ | 5,876 | $ | 160 | 2.7 | % | |||||||||||||||
Occupancy and equipment | 2,146 | 2,035 | 111 | 5.5 | |||||||||||||||||||
Professional services | 491 | 994 | (503) | (50.6) | |||||||||||||||||||
Data processing | 741 | 626 | 115 | 18.4 | |||||||||||||||||||
Director fees | 362 | 325 | 37 | 11.4 | |||||||||||||||||||
FDIC insurance | 1,026 | 255 | 771 | 302.4 | |||||||||||||||||||
Marketing | 184 | 102 | 82 | 80.4 | |||||||||||||||||||
Other | 1,219 | 818 | 401 | 49.0 | |||||||||||||||||||
Total noninterest expense | $ | 12,205 | $ | 11,031 | $ | 1,174 | 10.6 | % |
Nine Months Ended September 30, | Change | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Salaries and employee benefits | $ | 18,507 | $ | 16,249 | $ | 2,258 | 13.9 | % | |||||||||||||||
Occupancy and equipment | 6,434 | 6,378 | 56 | 0.9 | |||||||||||||||||||
Professional services | 2,505 | 2,975 | (470) | (15.8) | |||||||||||||||||||
Data processing | 2,141 | 1,969 | 172 | 8.7 | |||||||||||||||||||
Director fees | 1,207 | 1,016 | 191 | 18.8 | |||||||||||||||||||
FDIC insurance | 3,138 | 740 | 2,398 | 324.1 | |||||||||||||||||||
Marketing | 512 | 254 | 258 | 101.6 | |||||||||||||||||||
Other | 3,093 | 2,311 | 782 | 33.8 | |||||||||||||||||||
Total noninterest expense | $ | 37,537 | $ | 31,892 | $ | 5,645 | 17.7 | % |
(In thousands) | At September 30, 2023 | At December 31, 2022 | Change | ||||||||||||||
Real estate loans: | |||||||||||||||||
Residential | $ | 52,908 | $ | 60,588 | $ | (7,680) | |||||||||||
Commercial | 1,955,992 | 1,921,252 | 34,740 | ||||||||||||||
Construction | 199,972 | 155,198 | 44,774 | ||||||||||||||
2,208,872 | 2,137,038 | 71,834 | |||||||||||||||
Commercial business | 508,626 | 520,447 | (11,821) | ||||||||||||||
Consumer | 52,612 | 17,963 | 34,649 | ||||||||||||||
Total loans | $ | 2,770,110 | $ | 2,675,448 | $ | 94,662 |
(In thousands) | At September 30, 2023 | At December 31, 2022 | |||||||||
Nonaccrual loans: | |||||||||||
Real estate loans: | |||||||||||
Residential | $ | 1,408 | $ | 2,152 | |||||||
Commercial | 1,898 | 2,781 | |||||||||
Commercial business | 7,352 | 2,126 | |||||||||
Construction | 9,382 | 9,382 | |||||||||
Consumer | 7,917 | — | |||||||||
Total nonaccrual loans | 27,957 | 16,441 | |||||||||
Other real estate owned | — | — | |||||||||
Total nonperforming assets | $ | 27,957 | $ | 16,441 | |||||||
Nonperforming assets to total assets | 0.86 | % | 0.51 | % | |||||||
Nonaccrual loans to total gross loans | 1.01 | % | 0.61 | % | |||||||
ACL-loans as a % of total loans | 1.06 | % | 0.84 | % | |||||||
ACL-loans as a % of nonperforming loans | 104.75 | % | 136.43 | % | |||||||
Total past due loans to total gross loans | 1.44 | % | 0.60 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Balance at beginning of period | $ | 30,694 | $ | 15,773 | $ | 22,431 | $ | 16,902 | |||||||||||||||
CECL Day 1 Adjustment | — | — | 5,079 | — | |||||||||||||||||||
Balance at beginning of period-Adjusted | 30,694 | 15,773 | 27,510 | 16,902 | |||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||
Commercial business | — | — | (439) | — | |||||||||||||||||||
Consumer | (32) | (8) | (69) | (12) | |||||||||||||||||||
Total charge-offs | (32) | (8) | (508) | (12) | |||||||||||||||||||
Recoveries: | |||||||||||||||||||||||
Commercial real estate | — | — | — | 77 | |||||||||||||||||||
Commercial business | 35 | 21 | 68 | 34 | |||||||||||||||||||
Consumer | 20 | — | 35 | 1 | |||||||||||||||||||
Total recoveries | 55 | 21 | 103 | 112 | |||||||||||||||||||
Net recoveries (charge-offs) | 23 | 13 | (405) | 100 | |||||||||||||||||||
(Credit) provision for credit losses - loans | (1,433) | 2,381 | 2,179 | 1,165 | |||||||||||||||||||
Balance at end of period | $ | 29,284 | $ | 18,167 | $ | 29,284 | $ | 18,167 | |||||||||||||||
Net charge-offs to average loans | — | % | — | % | 0.01 | % | — | % | |||||||||||||||
ACL-Loans to total gross loans | 1.06 | % | 0.79 | % | 1.06 | % | 0.79 | % |
At September 30, 2023 | At December 31, 2022 | ||||||||||||||||||||||
(Dollars in thousands) | ACL-Loans | Loans as Percent of Total Loan Portfolio | ACL-Loans | Loans as Percent of Total Loan Portfolio | |||||||||||||||||||
Residential real estate | $ | 161 | 0.55 | % | $ | 163 | 2.27 | % | |||||||||||||||
Commercial real estate | 20,736 | 70.90 | 15,597 | 71.81 | |||||||||||||||||||
Construction | 1,615 | 5.52 | 311 | 5.80 | |||||||||||||||||||
Commercial business | 6,148 | 21.02 | 6,214 | 19.45 | |||||||||||||||||||
Consumer | 588 | 2.01 | 146 | 0.67 | |||||||||||||||||||
Total ACL-Loans | $ | 29,248 | 100.00 | % | $ | 22,431 | 100.00 | % |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||||
Noninterest bearing demand | $ | 345,433 | 12.48 | % | $ | 404,559 | 14.44 | % | |||||||||||||||
NOW | 101,719 | 3.67 | 104,057 | 3.72 | |||||||||||||||||||
Money market | 879,978 | 31.79 | 913,868 | 32.63 | |||||||||||||||||||
Savings | 102,207 | 3.69 | 151,944 | 5.42 | |||||||||||||||||||
Time | 1,339,289 | 48.37 | 1,226,390 | 43.79 | |||||||||||||||||||
Total deposits | $ | 2,768,626 | 100.00 | % | $ | 2,800,818 | 100.00 | % |
(Dollars in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Maturing: | |||||||||||
Within 3 months | $ | 391,376 | $ | 251,036 | |||||||
After 3 but within 6 months | 248,480 | 252,673 | |||||||||
After 6 months but within 1 year | 203,815 | 530,400 | |||||||||
After 1 year | 386,215 | 123,130 | |||||||||
Total | $ | 1,229,886 | $ | 1,157,239 |
September 30, 2023 | |||||||||||
Total Letter or Line of Credit | Total Outstanding | ||||||||||
(Dollars in thousands) | |||||||||||
FRB | $ | 851,760 | $ | — | |||||||
FHLB | 591,042 | 228,899 | |||||||||
Zions Bank | 45,000 | — | |||||||||
PCBB | 38,000 | — | |||||||||
ACBB | 12,000 | — | |||||||||
Total | $ | 1,537,802 | $ | 228,899 |
Parallel Ramp | Estimated Percent Change in Net Interest Income | ||||||||||
Rate Changes (basis points) | September 30, 2023 | December 31, 2022 | |||||||||
-100 | 1.20 | % | 2.20 | % | |||||||
+200 | (3.30) | (4.80) |
Parallel Shock | Estimated Percent Change in Net Interest Income | ||||||||||
Rate Changes (basis points) | September 30, 2023 | December 31, 2022 | |||||||||
-100 | 3.10 | % | 2.20 | % | |||||||
+100 | (3.20) | (2.70) | |||||||||
+200 | (7.20) | (6.00) | |||||||||
+300 | (10.20) | (8.90) |
Estimated Percent Change in Economic Value of Equity ("EVE") | |||||||||||
Rate Changes (basis points) | September 30, 2023 | December 31, 2022 | |||||||||
-100 | 3.80 | % | 2.30 | % | |||||||
+100 | (5.00) | (3.90) | |||||||||
+200 | (11.60) | (9.30) | |||||||||
+300 | (16.20) | (14.00) |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(1) | ||||||||||||||||||||||
July 1, 2023 - July 31, 2023 | — | $ | — | — | 150,188 | |||||||||||||||||||||
August 1, 2023 - August 31, 2023 | — | — | — | 150,188 | ||||||||||||||||||||||
September 1, 2023 - September 30, 2023 | — | — | — | 150,188 | ||||||||||||||||||||||
Total | — | $ | — | — |
10.1 | |||||
31.1 | |||||
31.2 | |||||
32 | |||||
101 | The following materials from Bankwell Financial Group, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2023, formatted in Inline eXtensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income (Loss); (iv) Consolidated Statements of Shareholders’ Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements. | ||||
104 | Cover Page Interactive Data File (formatting in Inline XBRL and contained in Exhibit 101) |
Bankwell Financial Group, Inc. | |||||
Date: November 8, 2023 | /s/ Christopher R. Gruseke | ||||
Christopher R. Gruseke | |||||
President and Chief Executive Officer | |||||
Date: November 8, 2023 | /s/ Courtney E. Sacchetti | ||||
Courtney E. Sacchetti | |||||
Executive Vice President and Chief | |||||
Financial Officer | |||||
(Principal Financial and Accounting Officer) |
EXECUTIVE SUMMARY |
PURPOSE |
INVESTMENT POLICY |
CHANGE IN PLAN INVESTMENTS |
IPS AMENDMENTS |
/s/ Christopher R. Gruseke | |||||
Christopher R. Gruseke | |||||
President and Chief Executive Officer |
/s/ Courtney E. Sacchetti | |||||
Courtney E. Sacchetti | |||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
/s/ Christopher R. Gruseke | |||||
Christopher R. Gruseke | |||||
President and Chief Executive Officer | |||||
Date: November 8, 2023 |
/s/ Courtney E. Sacchetti | |||||
Courtney E. Sacchetti | |||||
Executive Vice President and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) | |||||
Date: November 8, 2023 |
Consolidated Balance Sheets - (unaudited) (Parenthetical) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Held to maturity investment securities, fair value | $ 14,317,000 | $ 15,435,000 |
Allowance for loan losses | $ 29,284,000 | $ 22,431,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 7,841,616 | 7,730,699 |
Common stock, shares outstanding (in shares) | 7,841,616 | 7,730,699 |
Subordinated debentures | ||
Debt instrument face value of debt | $ 70,000,000 | $ 70,000,000 |
Unamortized debt issuance costs | $ 857,000 | $ 1,041,000 |
Consolidated Statements of Income – (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Interest and dividend income | ||||
Interest and fees on loans | $ 43,854 | $ 28,128 | $ 126,059 | $ 74,697 |
Interest and dividends on securities | 1,016 | 811 | 3,018 | 2,305 |
Interest on cash and cash equivalents | 3,393 | 747 | 9,983 | 1,350 |
Total interest and dividend income | 48,263 | 29,686 | 139,060 | 78,352 |
Interest expense | ||||
Interest expense on deposits | 23,789 | 4,092 | 61,599 | 8,281 |
Interest expense on borrowings | 1,783 | 993 | 5,238 | 2,137 |
Total interest expense | 25,572 | 5,085 | 66,837 | 10,418 |
Net interest income | 22,691 | 24,601 | 72,223 | 67,934 |
(Credit) provision for credit losses | (1,579) | 2,381 | 1,826 | 1,165 |
Net interest income after (credit) provision for credit losses | 24,270 | 22,220 | 70,397 | 66,769 |
Noninterest income | ||||
Bank-owned life insurance | 303 | 271 | 876 | 796 |
Service charges and fees | 294 | 240 | 941 | 729 |
Gains and fees from sales of loans | 237 | (15) | 1,893 | 1,224 |
Other | (48) | (94) | 3 | (237) |
Total noninterest income | 786 | 402 | 3,713 | 2,512 |
Noninterest expense | ||||
Salaries and employee benefits | 6,036 | 5,876 | 18,507 | 16,249 |
Occupancy and equipment | 2,146 | 2,035 | 6,434 | 6,378 |
Professional services | 491 | 994 | 2,505 | 2,975 |
Data processing | 741 | 626 | 2,141 | 1,969 |
Director fees | 362 | 325 | 1,207 | 1,016 |
FDIC insurance | 1,026 | 255 | 3,138 | 740 |
Marketing | 184 | 102 | 512 | 254 |
Other | 1,219 | 818 | 3,093 | 2,311 |
Total noninterest expense | 12,205 | 11,031 | 37,537 | 31,892 |
Income before income tax expense | 12,851 | 11,591 | 36,573 | 37,389 |
Income tax expense | 3,074 | 2,417 | 8,434 | 7,981 |
Net income | $ 9,777 | $ 9,174 | $ 28,139 | $ 29,408 |
Earnings Per Common Share: | ||||
Basic (in dollars per share) | $ 1.25 | $ 1.19 | $ 3.61 | $ 3.80 |
Diluted (in dollars per share) | $ 1.25 | $ 1.18 | $ 3.58 | $ 3.75 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 7,598,230 | 7,553,718 | 7,582,272 | 7,582,175 |
Diluted (in shares) | 7,633,934 | 7,612,421 | 7,646,837 | 7,664,123 |
Dividends per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
Consolidated Statements of Shareholders' Equity - (unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 |
Nature of Operations and Summary of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Bankwell Financial Group, Inc. (the "Parent Corporation") is a bank holding company headquartered in New Canaan, Connecticut. The Parent Corporation offers a broad range of financial services through its banking subsidiary, Bankwell Bank (the "Bank" and, collectively with the Parent Corporation and the Parent Corporation's subsidiaries, "we", "our", "us", or the "Company"). The Bank is a Connecticut state chartered commercial bank, founded in 2002, whose deposits are insured under the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (“FDIC”). The Bank provides a wide range of services to clients in our market, an area encompassing approximately a 100 mile radius around our branch network. In addition, the Bank pursues certain types of commercial lending opportunities outside our market, particularly where we have strong business relationships. The Bank operates branches in New Canaan, Stamford, Fairfield, Westport, Darien, Norwalk, and Hamden, Connecticut. Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for credit losses, the valuation of derivative instruments, investment securities valuation, evaluation of investment securities for other than temporary impairment and deferred income taxes valuation. Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2022. Significant concentrations of credit risk Many of the Company's activities are with clients located in Connecticut and New York, with the majority of the Company's commercial real estate investor loans in Connecticut and some New York metro area counties. Declines in property values in these areas could significantly impact the Company. The Company has a significant concentration in commercial real estate loans, with a growing percentage being owner-occupied, which present a lower risk profile. Common share repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Reclassification Certain prior period amounts may be reclassified to conform to the 2023 financial statement presentation. These reclassifications only change the reporting categories and do not affect the consolidated results of operations or consolidated financial position of the Company. Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2023-06, Disclosure Improvements: “Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”: The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments. The summary of the amendments applicable to the Company include: Statement of Cash Flows - Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows. Accounting Changes and Error Corrections - Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements. Earnings Per Share - Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings-per-share computation. Interim Reporting - Conforms to the amendments made to Topic 250 (Accounting Changes and Error Correction). Commitments - Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized. Debt - Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. Entities that are not public business entities are not required to provide information about the weighted-average interest rate. Equity - Requires entities that issue preferred stock to disclose preference in involuntary liquidation if the liquidation preference is other than par or stated value. Derivatives - Adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows in Topic 230. Transfers and Servicing—Secured Borrowing and Collateral - Requires: a. That accrued interest be included in the disclosure of liabilities incurred in securities borrowing or repurchase or resale transactions. b. Separate presentation of the aggregate carrying amount of reverse repurchase agreements on the face of the balance sheet if that amount exceeds 10 percent of total assets. c. Disclosure of the weighted-average interest rates of repurchase liabilities for public business entities. d. Disclosure of amounts at risk with an individual counterparty if that amount exceeds more than 10 percent of shareholder’s equity. e. Disclosure for reverse repurchase agreements that exceed 10 percent of total assets on whether there are any provisions in a reverse repurchase agreement to ensure that the market value of the underlying assets remains sufficient. to protect against counterparty default and, if so, the nature of those provisions. Financial Services - Requires that investment companies disclose the components of capital on the balance sheet. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this Update should be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Company believes this ASU will not have a material impact on existing disclosures and will continue to monitor for SEC action, and plan accordingly for adoption. ASU No. 2022-06, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022 (12 months after the expected cessation date of all currencies and tenors of LIBOR). In March 2021, the FCA announced that the intended cessation date of the overnight 1, 3, 6, and 12 month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. As the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Recently adopted accounting pronouncements ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB voted in favor of a proposal to defer the effective date of this standard in the same manner it is deferring the effective date of ASC 326. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company has adopted ASU No. 2017-04 as of March 31, 2023 and it had no impact to the Company's financial statements. ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On November 15, 2019, the FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies (as defined by the SEC) until fiscal years beginning after December 15, 2022. In accordance with ASU No. 2019-10, on January 1, 2023, the Company adopted Topic 326. Upon adoption of CECL, the Company recorded a one-time cumulative effect, pre-tax adjustment of $5.1 million to the allowance for credit loss - loans and a corresponding net of tax adjustment to beginning retained earnings. The Company also recorded a one-time cumulative effect, pre-tax adjustment of $1.3 million to the allowance for credit losses - unfunded commitments (which is reflected in Accrued expenses and other liabilities on the Consolidated Balance Sheets) and a corresponding net of tax adjustment to beginning retained earnings. These impacts are reflected in the Company's first quarter 2023 financial statements. The future impact of CECL on the Company’s allowance for credit losses and provision (credit) for credit losses subsequent to the initial adoption will depend on refinements to key assumptions including forecasting and qualitative factors, as well as changes in the loan portfolio and economic conditions. The Company measured its allowance under its incurred loan loss model as of December 31, 2022. In addition, the Company also evaluated its Held to maturity investment securities and Available for sale investment securities upon the adoption of the standard on January 1, 2023. The Held to maturity investment securities were related to housing authority bonds in the towns of New Canaan and Stamford, CT. The Company determined these housing authority bonds had remote risk of loss based on the historical performance of housing authority bonds and the strong credit ratings of both the towns of New Canaan and Stamford, CT. The Available for sale securities consisted of government backed U.S. Treasuries, Mortgage-Backed Securities, and Corporate Securities. The U.S. Treasuries and Mortgage-Backed Securities were guaranteed by the U.S. Government and had minimal risk of loss. The Corporate Securities had minimal default risk. As such, management concluded that no allowance for expected credit losses was required for the Held to maturity investment securities or the Available for sale investment securities upon adoption of the standard on January 1, 2023.
ASU No. 2020-04, Reference Rate Reform (Topic 848): "Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Optional expedients include that modifications of contracts should be accounted for by prospectively adjusting the effective interest rate and modifications of leases should be accounted for as a continuation of the existing contract with no reassessments of lease classification and discount rate or remeasurements of lease payments. This ASU also provides many practical expedients for derivative accounting. In addition, an entity may elect to sell and/or transfer held to maturity securities that reference a rate affected by the reference rate reform classified as held to maturity prior to January 1, 2020. In particular, the Company made the following elections as it relates to hedging relationships; (1) Option to not reassess a previous accounting determination (paragraph 848-20-35-2); (2) Option to not dedesignate a hedging relationship due to a change in critical term (paragraph 848-20-35-3); (3) Option to change the contractual terms of a hedging instrument, hedged item, or forecasted transaction and to not dedesignate a hedging relationship (paragraph 848-30-25-5); (4) Adopt expedient ASC 848-50-25-2 to assert probability of the hedged interest regardless of any expected modification in terms related to reference rate reform; and (5) To continue the method of assessing effectiveness as documented in the original hedge documentation and apply the expedient in ASC 848-50-35-17 so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. For new hedging relationships designated subsequent to December 31, 2020, the Company elects to apply the expedient in ASC 848-50-25-11 to assume that the reference rate will not be replaced for the remainder of the hedging relationship. The application of this guidance did not have a material impact on the Company's financial statements. ASU No. 2022-02, Financial Instruments Credit Losses (Topic 326): "Troubled Debt Restructurings and Vintage Disclosures". ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2022-02 on January 1, 2023 and it did not have a material effect on the Company’s consolidated financial statements.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at September 30, 2023 were as follows:
The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2022 were as follows:
There were no sales of investment securities during the nine months ended September 30, 2023 or 2022. At September 30, 2023 and December 31, 2022, none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution. As of September 30, 2023 and December 31, 2022, the actual durations of the Company's available for sale securities were significantly shorter than the stated maturities. As of September 30, 2023, the Company held marketable equity securities with a fair value of $2.0 million and an amortized cost of $2.2 million. At December 31, 2022, the Company held marketable equity securities with a fair value of $2.0 million and an amortized cost of $2.1 million. These securities represent an investment in mutual funds that have an objective to make investments for Community Reinvestment Act ("CRA") purposes. The following tables provide information regarding available for sale securities and held to maturity securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022:
There were thirty-seven and thirty-six available for sale securities or held to maturity securities as of September 30, 2023 and December 31, 2022, respectively, in which the fair value of the security was less than the amortized cost of the security. The U.S. Government and agency obligations owned are either direct obligations of the U.S. Government or guaranteed by the U.S. Government. Therefore, the contractual cash flows are guaranteed and as a result the unrealized losses in this portfolio are considered to be only temporarily impaired. The corporate bonds are investments in subordinated debt of federally insured banks, the majority of which are callable after five years of origination. The Company monitors its corporate bond, state agency and municipal bond portfolios and considers them to have minimal default risk. The Company has the intent and ability to retain its investment securities in an unrealized loss position at September 30, 2023 until the decline in value has recovered or the security has matured.
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Loans Receivable and ACL-Loans |
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable and ACL-Loans | Loans Receivable and ACL-Loans The following table sets forth a summary of the loan portfolio at September 30, 2023 and December 31, 2022:
(1) The September 30, 2023 and December 31, 2022 balances include $23 thousand and $33 thousand, respectively, of Paycheck Protection Program ("PPP") loans made under the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). Lending activities primarily consist of commercial real estate loans, commercial business loans and, to a lesser degree, consumer loans. Loans may also be granted for the construction of commercial properties. The majority of commercial mortgage loans are collateralized by first or second mortgages on real estate. Risk management The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each client and extends credit of up to 80% of the market value of the collateral, (85% maximum for owner occupied commercial real estate), depending on the client's creditworthiness and the type of collateral. The client’s ability to service the debt is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, time deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans to be based on the client’s ability to generate continuing cash flows. The Company does not provide first or second lien consumer mortgage loans secured by residential properties but has a small legacy portfolio which continues to amortize, pay off due to the sale of the collateral, or refinance away from the Company. Credit quality of loans and the Allowance for Credit Losses - Loans (ACL-Loans) Management segregates the loan portfolio into defined segments, which are used to develop and document a systematic method for determining the Company's ACL-Loans. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The Company's loan portfolio is segregated into the following portfolio segments: Residential Real Estate: This portfolio segment consists of first mortgage loans secured by one-to-four family owner occupied residential properties for personal use located in the Company's market area. This segment also includes home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties. Loans of this type were written at a combined maximum of 80% of the appraised value of the property and the Company requires a first or second lien position on the property. These loans can be affected by economic conditions and the values of the underlying properties. Commercial Real Estate: This portfolio segment includes loans secured by commercial real estate, multi-family dwellings, owner-occupied commercial real estate and investor-owned one-to-four family dwellings. Loans secured by commercial real estate generally have larger loan balances and more credit risk than owner occupied one-to-four family mortgage loans. Construction: This portfolio segment includes commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail and other income producing properties and land loans, which are loans made with land as collateral. Construction and land development financing generally involves greater credit risk than long-term financing on improved, owner-occupied or leased real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, the Company may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the client may hold a property with a value that is insufficient to assure full repayment through sale or refinance. Construction loans also expose the Company to the risks that improvements will not be completed on time in accordance with specifications and projected costs and that repayment will depend on the successful operation or sale of the properties, which may cause some clients to be unable to continue paying debt service, which exposes the Company to greater risk of non-payment and loss. Commercial Business: This portfolio segment includes commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners. Commercial business loans generally have higher interest rates and shorter terms than other loans, and their repayment generally depends on the successful operation of the client’s business. Consumer: This portfolio segment includes loans secured by savings or certificate accounts, as well as unsecured personal loans and overdraft lines of credit. In addition, there are loans to finance insurance premiums, secured primarily by the cash surrender value of life insurance and marketable securities. ACL-Loans The following tables set forth the activity in the Company’s ACL-Loans for the three and nine months ended September 30, 2023 and 2022, by portfolio segment:
Loans evaluated for impairment and the related ACL-Loans as of September 30, 2023 and December 31, 2022 were as follows:
Credit quality indicators To measure credit risk for the loan portfolios, the Company employs a credit risk rating system. This risk rating represents an assessed level of a loan’s risk based on the character and creditworthiness of the borrower/guarantor, the capacity of the borrower to adequately service the debt, any credit enhancements or additional sources of repayment, and the quality, value and coverage of the collateral, if any. The objectives of the Company’s risk rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize a potential credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the ACL-Loans. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default or non-payment. Risk ratings of (1) through (5) are "pass" categories and risk ratings of (6) through (9) are criticized asset categories as defined by the regulatory agencies. A “special mention” (6) loan has a potential weakness which, if uncorrected, may result in a deterioration of the repayment prospects or inadequately protect the Company’s credit position at some time in the future. “Substandard” (7) loans have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt. A loan rated “doubtful” (8) has all the weaknesses inherent in a substandard loan and which, in addition, make collection or liquidation in full highly questionable and improbable when considering existing facts, conditions, and values. Loans classified as “loss” (9) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value; rather, it is not practical or desirable to defer writing-off this asset even though partial recovery may be made in the future. Risk ratings are assigned as necessary to differentiate risk within the portfolio. They are reviewed on an ongoing basis through the annual loan review process performed by Company personnel, normal renewal activity, monthly delinquency monitoring, and the quarterly watchlist and watched asset report process. They are revised to reflect changes in the borrower's financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage, as well as other considerations. In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers. The following tables present credit risk ratings by loan segment as of September 30, 2023 and December 31, 2022:
Loan portfolio aging analysis When a loan is 15 days past due, the Company sends the borrower a late notice. The Company attempts to contact the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company mails the borrower a letter reminding the borrower of the delinquency and attempts to contact the borrower personally to determine the reason for the delinquency and ensure the borrower understands the terms of the loan. If necessary, after the 90th day of delinquency, the Company may take other appropriate legal action. A summary report of all loans 30 days or more past due is provided to the Board of Directors of the Company periodically. Loans greater than 90 days past due are generally put on nonaccrual status. A nonaccrual loan is restored to accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt. A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms. The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of September 30, 2023 and December 31, 2022:
There were no loans delinquent greater than 90 days and still accruing interest as of September 30, 2023 or December 31, 2022. Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of September 30, 2023 and December 31, 2022:
Interest income on loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the nine months ended September 30, 2023 and 2022 was $5.1 million and $0.7 million, respectively. There was no interest income recognized on these loans for the nine months ended September 30, 2023 and 2022. At September 30, 2023 and December 31, 2022, there were no commitments to lend additional funds to any borrower on nonaccrual status. Nonaccrual loans with no specific reserve totaled $24.9 million and $14.7 million at September 30, 2023 and December 31, 2022, respectively, as these loans were deemed to be adequately collateralized. Individually evaluated loans An individually evaluated loan is generally one for which it is probable, based on current information, that the Company will not collect all the amounts due in accordance with the contractual terms of the loan. Individually evaluated loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it evaluates whether a specific valuation allowance is required for that portion of the asset that is estimated to be impaired. Beginning in the third quarter of 2023, the Company individually evaluated all insurance premium loans within the Consumer portfolio segment, irrespective of credit risk ratings. The following table summarizes individually evaluated loans by portfolio segment as of September 30, 2023 and December 31, 2022.
The following table summarizes the average carrying amount of individually evaluated impaired loans and interest income recognized on individually evaluated loans by portfolio segment for the three and nine months ended September 30, 2023 and 2022:
Loan Modifications A loan will be considered modified as defined by ASU 2022-02 when both of the following conditions are met: 1) the borrower is experiencing financial difficulties and 2) the modification constitutes a direct change in contractual cash flows for a significant period of time. Modified terms are dependent upon the financial position and needs of the individual borrower. There were no new loan modifications reportable under ASU 2022-02 at September 30, 2023. Information on loan modifications prior to the adoption of ASU 2022-02 is presented in accordance with the applicable accounting standards in effect at that time. As of December 31, 2022, loan modifications totaled $22.2 million. The following table provides information on loans that were modified during the periods indicated.
The following table provides information on how loans were modified during the three and nine months ended September 30, 2023 and September 30, 2022.
Allowance for credit losses (ACL)-Unfunded Commitments As part of adoption of CECL, the Company has recorded ACL-Unfunded Commitments in Accrued expenses and other liabilities. The provision is recorded within the Provision for credit losses on the Company’s Consolidated Statements of Income. The following table presents a roll forward of the ACL-Unfunded Commitments for the three and nine months ended September 30, 2023 and September 30, 2022:
(1) In 2022, unfunded commitments were recorded as "Other" in noninterest expense. Components of Provision for Credit Losses The following table summarizes the Provision for credit losses for the three and nine months ended September 30, 2023 and September 30, 2022:
(1) In 2022, unfunded commitments was recorded as "Other" in noninterest expense.
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Shareholders' Equity |
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Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The Company has 10,000,000 shares authorized and 7,841,616 shares issued and outstanding at September 30, 2023 and 10,000,000 shares authorized and 7,730,699 shares issued and outstanding at December 31, 2022. The Company's stock is traded on the Nasdaq Global Market under the ticker symbol BWFG. Dividends The Company’s shareholders are entitled to dividends when and if declared by the Board of Directors out of funds legally available. The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Parent Corporation. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Issuer Purchases of Equity Securities On December 19, 2018, the Company's Board of Directors authorized a share repurchase program of up to 400,000 shares of the Company's Common Stock and, on October 27, 2021, the Company’ Board of Directors authorized the repurchase of an additional 200,000 shares under its share repurchase program. The Company intends to accomplish the share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The share repurchase plan does not obligate the Company to acquire any particular amount of Common Stock, and it may be modified or suspended at any time at the Company's discretion. During the nine months ended September 30, 2023, the Company purchased no shares of its Common Stock. During the year ended December 31, 2022, the Company purchased 166,375 shares of its Common Stock at a weighted average price of $33.30 per share.
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Comprehensive Income |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive IncomeComprehensive income represents the sum of net income and items of other comprehensive income or loss, including net unrealized gains or losses on securities available for sale and net unrealized gains or losses on derivatives. The Company's derivative instruments are utilized to manage economic risks, including interest rate risk. Changes in fair value of the Company's cash flow swap derivatives are primarily driven by changes in interest rates and recognized in other comprehensive income. The Company’s total comprehensive income or loss for the three and nine months ended September 30, 2023 and September 30, 2022 is reported in the Consolidated Statements of Comprehensive Income. The following tables present the changes in accumulated other comprehensive (loss) income by component, net of tax for the three and nine months ended September 30, 2023 and September 30, 2022:
The following table provides information for the items reclassified from accumulated other comprehensive income or loss:
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Earnings per share ("EPS") |
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Earnings per share ("EPS") | Earnings per share ("EPS") Unvested restricted stock awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s unvested restricted stock awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating unvested restricted stock awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method:
(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.
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Regulatory Matters |
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Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | Regulatory Matters The Federal Reserve, the FDIC and the other federal and state bank regulatory agencies establish regulatory capital guidelines for U.S. banking organizations. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier 1 risk-based capital ratio of 6.0%, a minimum Common Equity Tier 1 risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a capital conservation buffer consisting of common equity in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk-weighted assets, resulting in a requirement for the Bank to effectively maintain Common Equity Tier 1, Tier 1 and total capital ratios of 7.0%, 8.5% and 10.5%, respectively. The Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends, pay discretionary bonuses, or to engage in share repurchases. The Company is subject to the Federal Reserve Small Bank Holding Company Policy Statement. The Company will no longer be eligible for the Small Bank Holding Company Policy Statement as of March 2024, as the Company’s consolidated assets were above $3.0 billion as of June 30, 2023. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. As of September 30, 2023, the Bank and Company met all capital adequacy requirements to which they are subject. There are no conditions or events since then that management believes have changed this conclusion. The capital amounts and ratios for the Bank and the Company at September 30, 2023 and December 31, 2022 were as follows:
Regulatory Restrictions on Dividends The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Parent Corporation. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Reserve Requirements on Cash The Bank was not required to maintain a minimum reserve balance in the Federal Reserve Bank (FRB) at September 30, 2023 or December 31, 2022.
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Deposits |
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Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits At September 30, 2023 and December 31, 2022, deposits consisted of the following:
Maturities of time certificates of deposit as of September 30, 2023 and December 31, 2022 are summarized below:
The aggregate amount of individual certificate accounts, with balances of $250,000 or more, was approximately $140.8 million at September 30, 2023 and $74.6 million at December 31, 2022. The following table summarizes interest expense on deposits by account type for the three and nine months ended September 30, 2023 and 2022:
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation Equity award plans The Company has stock options or unvested restricted stock outstanding under three equity award plans, which are collectively referred to as the “Stock Plans”. The current plan under which any future issuances of equity awards will be made is the 2022 Bankwell Financial Group, Inc. Stock Plan, or the “2022 Plan”. All equity awards made under the 2022 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of stock options or restricted stock. At September 30, 2023, there were 349,076 shares reserved for future issuance under the 2022 Plan. Stock Options: The Company accounts for stock options based on the fair value at the date of grant and records an expense over the vesting period of such awards on a straight line basis. There were no options granted during the nine months ended September 30, 2023. A summary of the status of outstanding stock options for the nine months ended September 30, 2023 is presented below:
As of September 30, 2023, all awarded options have been exercised. Restricted Stock: Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over to five years. The following table presents the activity for restricted stock for the nine months ended September 30, 2023:
(1) Includes 34,369 shares of performance based restricted stock. (2) Includes 33,106 shares of performance based restricted stock. (3) Includes 25,574 shares of performance based restricted stock. (4) Includes 5,586 shares of performance based restricted stock. The total fair value of restricted stock awards vested during the nine months ended September 30, 2023 was $2.4 million. The Company's restricted stock expense for the nine months ended September 30, 2023 and September 30, 2022 was $2.0 million and $1.9 million, respectively. At September 30, 2023, there was $4.7 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.7 years. Performance Based Restricted Stock: The Company has 36,315 shares of performance based restricted stock outstanding as of September 30, 2023 pursuant to the Company’s Stock Plans. The awards vest over a three year service period, provided certain performance metrics are met. The share quantity that ultimately vests can range between 0% and 200%, which is dependent on the degree to which the performance metrics are met. The Company records an expense over the vesting period based on (a) the probability that the performance metric will be met and (b) the fair market value of the Company’s stock at the date of the grant.
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments The Company manages economic risks, including interest rate, liquidity, and credit risk, by managing the amount, sources, and duration of its funding along with the use of interest rate derivative financial instruments, namely interest rate swaps. The Company does not use derivatives for speculative purposes. As of September 30, 2023, the Company was a party to five cash flow swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to the variability of the future cash flows attributable to the contractually specified interest rates. The notional amount for each swap is $25 million and in each case, the Company has entered into pay-fixed cash flow swaps to convert rolling 90-day Federal Home Loan Bank advances or brokered deposits. Cash flow swaps with a positive fair value are recorded as other assets and cash flow swaps with a negative fair value are recorded as other liabilities on the Consolidated Balance Sheets. The Company terminated two cash flow swaps with a total notional amount of $50 million during the year ended December 31, 2022. The underlying debt associated with the terminated swaps was kept in place. The fair value of the terminated swaps totaled $144.5 thousand as of September 30, 2023. The fair value of the terminated swaps will be reclassified from other comprehensive income to interest expense on a straight-line basis over the original term of the hedging relationship. The Company entered into one pay-fixed portfolio layer method fair value swap, designated as a hedging instrument, with a total notional amount of $150 million in the first quarter of 2023. The Company designated the fair value swap under the portfolio layer method (“PLM”). Under this method, the hedged item is designated as a hedged layer of a closed portfolio of financial loans that is anticipated to remain outstanding for the designated hedged period. Adjustments will be made to record the swap at fair value on the Consolidated Balance Sheets, with changes in fair value recognized in interest income. The carrying value of the fair value swap on the Consolidated Balance Sheets will also be adjusted through interest income, based on changes in fair value attributable to changes in the hedged risk. The following table represents the carrying value of the portfolio layer method hedged asset and the cumulative fair value hedging adjustment included in the carrying value of the hedged asset as of September 30, 2023 and December 31, 2022:
(1) These amounts include the amortized cost basis of closed portfolios of fixed rate loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. As of September 30, 2023, the amortized cost basis of the closed portfolio used in this hedging relationship was $654.5 million, the cumulative basis adjustments associated with this hedging relationships was $1.7 million, and the amount of the designated hedged item was $150.0 million. As of September 30, 2023, the Company has interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to clients. The Company accounts for all non-client related interest rate swaps as either effective cash flow or fair value swaps. None of the interest rate swap agreements contain any credit risk related contingent features. A hedging instrument is expected at inception to be highly effective at offsetting changes in the hedged transactions attributable to the changes in the hedged risk. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan clients. The Company executes interest rate swaps with commercial banking clients to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the client derivatives and the offsetting derivatives are recognized directly in earnings. Information about derivative instruments at September 30, 2023 and December 31, 2022 is as follows:
(1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party. Accrued interest receivables related to interest rate swaps as of September 30, 2023 totaled $0.8 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $9.3 million as of September 30, 2023.
(1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party. Accrued interest receivables related to interest rate swaps as of December 31, 2022 totaled $0.5 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps in a net asset position, including accrued interest, totaled $8.8 million as of December 31, 2022. The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $4.7 million to reduce interest expense during the next 12 months. The Company assesses the cash flow swaps hedge effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes. The Company assesses the effectiveness of the fair value swap hedge with a regression analysis that compares the changes in forward curves to determine the value. The effective portion of changes in the fair value of derivatives designated as fair value hedges is recorded through interest income. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes. Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three and nine months ended September 30, 2023 and September 30, 2022:
The above unrealized gains and losses are reflective of market interest rates as of the respective balance sheet dates. Generally, a lower interest rate environment will result in a negative impact to comprehensive income whereas a higher interest rate environment will result in a positive impact to comprehensive income. The following table summarizes the effect of the fair value hedging relationship recognized in the consolidated statements of income for the three and nine months ended September 30, 2023 and September 30, 2022:
The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at September 30, 2023 and December 31, 2022:
(1) Includes accrued interest receivable totaling $756 thousand.
(1) Includes net accrued interest payable totaling $20 thousand.
(1) Includes accrued interest receivable totaling $599 thousand.
(1) Includes no accrued interest.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the Consolidated Balance Sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction. The estimated fair value amounts have been measured as of the respective period-ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk. The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at September 30, 2023 and December 31, 2022 were as follows:
The following methods and assumptions were used by management in estimating the fair value of its financial instruments: Marketable equity securities and available for sale securities: Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The majority of the available for sale securities are considered to be Level 2 as other observable inputs are utilized, such as quoted prices for similar securities. Level 1 investment securities include investments in U.S. Treasury notes and in marketable equity securities for which a quoted price is readily available in the market. Derivative asset (liability): The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company also considers the creditworthiness of each counterparty for assets and the creditworthiness of the Company for liabilities. Assets held for sale: Assets held for sale (excluding loans) consist of real estate properties that are expected to sell within a year. The assets are reported at the lower of the carrying amount or fair value less costs to sell. The fair value represents the price that would be received to sell the asset (the exit price). Servicing asset (liability): Servicing assets and liabilities do not trade in an active, open market with readily observable prices. The Company estimates the fair value of servicing assets and liabilities using discounted cash flow models, incorporating numerous assumptions from the perspective of a market participant, including market discount rates.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company is required to account for certain assets at fair value on a recurring or non-recurring basis. The Company determines fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time they are susceptible to material near-term changes. Financial instruments measured at fair value on a recurring basis The following table details the financial instruments carried at fair value on a recurring basis at September 30, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the nine months ended September 30, 2023 and for the year ended December 31, 2022.
Marketable equity securities and available for sale investment securities: The fair value of the Company’s investment securities is estimated by using pricing models or quoted prices of securities with similar characteristics (i.e., matrix pricing) and is classified within Level 1 or Level 2 of the valuation hierarchy. The pricing is primarily sourced from third-party pricing services overseen by management. Derivative assets and liabilities: The Company’s derivative assets and liabilities consist of transactions as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy. Financial instruments measured at fair value on a nonrecurring basis Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following table details the financial instruments measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:
The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022:
(1) Servicing liabilities totaling $23 thousand were valued using a discount rate of 4.0%. Individually evaluated loans: Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with ASC 310-10 when establishing the ACL-Loans. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or other assumptions. Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. For those loans where the primary source of repayment is cash flow from operations, adjustments include impairment amounts calculated based on the perceived collectability of interest payments on the basis of a discounted cash flow analysis utilizing a discount rate equivalent to the original note rate. Servicing assets and liabilities: When loans are sold, on a servicing retained basis, servicing rights are initially recorded at fair value. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized. The fair value of servicing assets and liabilities are not measured on an ongoing basis but are subject to fair value adjustments when and if the assets or liabilities are deemed to be impaired.
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Subordinated debentures |
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Sep. 30, 2023 | |
Subordinated Borrowings [Abstract] | |
Subordinated debentures | Subordinated debentures On October 14, 2021, the Company completed a private placement of a $35.0 million fixed-to-floating rate subordinated note (the “2021 Note”) to an institutional accredited investor. The Company used the net proceeds to repay the $15.5 million principal balance of subordinated notes issued in 2015 for general corporate purposes. The 2021 Note bears interest at a fixed rate of 3.25% per year until October 14, 2026. Thereafter, the interest rate will reset quarterly at a variable rate equal to the then current three-month term SOFR plus 233 basis points. The 2021 Note has a stated maturity of October 15, 2031 and is non-callable for five years. Beginning October 15, 2026, the Company may redeem the 2021 Note, in whole or in part, at its option. The 2021 Note is not redeemable at the option of the holder. The 2021 Note has been structured to qualify for the Company as Tier 2 capital under regulatory guidelines. On August 19, 2022, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers, pursuant to which the Company issued and sold 6.0% fixed-to-floating rate subordinated notes due 2032 (the “2022 Notes”) in the aggregate principal amount of $35.0 million. The Company used the net proceeds from the sale of the 2022 Notes for general corporate purposes. The 2022 Notes bear interest at a fixed rate of 6.0% per year until August 31, 2027. Thereafter, the interest rate will reset quarterly at a variable rate equal to the then current three-month term SOFR plus 326 basis points. The 2022 Notes have a stated maturity of September 1, 2032 and are non-callable for five years. Beginning August 19, 2027, the Company may redeem the 2022 Notes, in whole or in part, at its option. The 2022 Notes are not subject to redemption at the option of the holder. The 2022 Notes have been structured to qualify for the Company as Tier 2 capital under regulatory guidelines. The Company incurred certain costs associated with the issuance of its subordinated debt. The Company capitalized these costs and they have been presented within subordinated debentures on the consolidated balance sheets. At September 30, 2023 and December 31, 2022, unamortized debt issuance costs were $0.9 million and $1.0 million, respectively. Debt issuance costs amortize over the expected life of the related debt. For the three months ended September 30, 2023 and 2022 the amortization expense for debt issuance costs were $62 thousand and $45 thousand, respectively, and were recognized as an increase to interest expense on borrowings within the Consolidated Statements of Income. For the nine months ended September 30, 2023 and 2022, the amortization expense for debt issuance costs were $185 thousand and $104 thousand, respectively. The Company recognized $0.8 million and $0.5 million in interest expense related to its subordinated debt for the three-month periods ended September 30, 2023 and 2022, respectively. The Company recognized $2.4 million and $1.1 million in interest expense related to its subordinated debt for the nine-month periods ended September 30, 2023 and 2022, respectively.
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Subsequent Events |
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Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 25, 2023, the Company’s Board of Directors declared a $0.20 per share cash dividend, payable on November 20, 2023 to shareholders of record on November 10, 2023. |
Nature of Operations and Summary of Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
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Use of estimates | Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for credit losses, the valuation of derivative instruments, investment securities valuation, evaluation of investment securities for other than temporary impairment and deferred income taxes valuation.
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Basis of consolidated financial statement presentation | Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2023. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2022.
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Common share repurchases | Common share repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances.
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Reclassification | Reclassification Certain prior period amounts may be reclassified to conform to the 2023 financial statement presentation. These reclassifications only change the reporting categories and do not affect the consolidated results of operations or consolidated financial position of the Company.
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Recent accounting pronouncements | Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2023-06, Disclosure Improvements: “Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative”: The amendments in this Update modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to or technical corrections of the current requirements. Because of the variety of Topics amended, a broad range of entities may be affected by one or more of those amendments. The summary of the amendments applicable to the Company include: Statement of Cash Flows - Requires an accounting policy disclosure in annual periods of where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows. Accounting Changes and Error Corrections - Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements. Earnings Per Share - Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings-per-share computation. Interim Reporting - Conforms to the amendments made to Topic 250 (Accounting Changes and Error Correction). Commitments - Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized. Debt - Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. Entities that are not public business entities are not required to provide information about the weighted-average interest rate. Equity - Requires entities that issue preferred stock to disclose preference in involuntary liquidation if the liquidation preference is other than par or stated value. Derivatives - Adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows in Topic 230. Transfers and Servicing—Secured Borrowing and Collateral - Requires: a. That accrued interest be included in the disclosure of liabilities incurred in securities borrowing or repurchase or resale transactions. b. Separate presentation of the aggregate carrying amount of reverse repurchase agreements on the face of the balance sheet if that amount exceeds 10 percent of total assets. c. Disclosure of the weighted-average interest rates of repurchase liabilities for public business entities. d. Disclosure of amounts at risk with an individual counterparty if that amount exceeds more than 10 percent of shareholder’s equity. e. Disclosure for reverse repurchase agreements that exceed 10 percent of total assets on whether there are any provisions in a reverse repurchase agreement to ensure that the market value of the underlying assets remains sufficient. to protect against counterparty default and, if so, the nature of those provisions. Financial Services - Requires that investment companies disclose the components of capital on the balance sheet. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The amendments in this Update should be applied prospectively. For all entities, if by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The Company believes this ASU will not have a material impact on existing disclosures and will continue to monitor for SEC action, and plan accordingly for adoption. ASU No. 2022-06, Reference Rate Reform (Topic 848): “Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This ASU provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022 (12 months after the expected cessation date of all currencies and tenors of LIBOR). In March 2021, the FCA announced that the intended cessation date of the overnight 1, 3, 6, and 12 month tenors of USD LIBOR would be June 30, 2023, which is beyond the current sunset date of Topic 848. As the current relief in Topic 848 may not cover a period of time during which a significant number of modifications may take place, the amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Recently adopted accounting pronouncements ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. On October 16, 2019, the FASB voted in favor of a proposal to defer the effective date of this standard in the same manner it is deferring the effective date of ASC 326. The FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies until fiscal years beginning after December 15, 2022. The Company has adopted ASU No. 2017-04 as of March 31, 2023 and it had no impact to the Company's financial statements. ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. On November 15, 2019, the FASB issued ASU No. 2019-10, which officially delayed the adoption of this standard for smaller reporting companies (as defined by the SEC) until fiscal years beginning after December 15, 2022. In accordance with ASU No. 2019-10, on January 1, 2023, the Company adopted Topic 326. Upon adoption of CECL, the Company recorded a one-time cumulative effect, pre-tax adjustment of $5.1 million to the allowance for credit loss - loans and a corresponding net of tax adjustment to beginning retained earnings. The Company also recorded a one-time cumulative effect, pre-tax adjustment of $1.3 million to the allowance for credit losses - unfunded commitments (which is reflected in Accrued expenses and other liabilities on the Consolidated Balance Sheets) and a corresponding net of tax adjustment to beginning retained earnings. These impacts are reflected in the Company's first quarter 2023 financial statements. The future impact of CECL on the Company’s allowance for credit losses and provision (credit) for credit losses subsequent to the initial adoption will depend on refinements to key assumptions including forecasting and qualitative factors, as well as changes in the loan portfolio and economic conditions. The Company measured its allowance under its incurred loan loss model as of December 31, 2022. In addition, the Company also evaluated its Held to maturity investment securities and Available for sale investment securities upon the adoption of the standard on January 1, 2023. The Held to maturity investment securities were related to housing authority bonds in the towns of New Canaan and Stamford, CT. The Company determined these housing authority bonds had remote risk of loss based on the historical performance of housing authority bonds and the strong credit ratings of both the towns of New Canaan and Stamford, CT. The Available for sale securities consisted of government backed U.S. Treasuries, Mortgage-Backed Securities, and Corporate Securities. The U.S. Treasuries and Mortgage-Backed Securities were guaranteed by the U.S. Government and had minimal risk of loss. The Corporate Securities had minimal default risk. As such, management concluded that no allowance for expected credit losses was required for the Held to maturity investment securities or the Available for sale investment securities upon adoption of the standard on January 1, 2023.
ASU No. 2020-04, Reference Rate Reform (Topic 848): "Facilitation of the Effects of Reference Rate Reform on Financial Reporting." This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. Optional expedients include that modifications of contracts should be accounted for by prospectively adjusting the effective interest rate and modifications of leases should be accounted for as a continuation of the existing contract with no reassessments of lease classification and discount rate or remeasurements of lease payments. This ASU also provides many practical expedients for derivative accounting. In addition, an entity may elect to sell and/or transfer held to maturity securities that reference a rate affected by the reference rate reform classified as held to maturity prior to January 1, 2020. In particular, the Company made the following elections as it relates to hedging relationships; (1) Option to not reassess a previous accounting determination (paragraph 848-20-35-2); (2) Option to not dedesignate a hedging relationship due to a change in critical term (paragraph 848-20-35-3); (3) Option to change the contractual terms of a hedging instrument, hedged item, or forecasted transaction and to not dedesignate a hedging relationship (paragraph 848-30-25-5); (4) Adopt expedient ASC 848-50-25-2 to assert probability of the hedged interest regardless of any expected modification in terms related to reference rate reform; and (5) To continue the method of assessing effectiveness as documented in the original hedge documentation and apply the expedient in ASC 848-50-35-17 so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. For new hedging relationships designated subsequent to December 31, 2020, the Company elects to apply the expedient in ASC 848-50-25-11 to assume that the reference rate will not be replaced for the remainder of the hedging relationship. The application of this guidance did not have a material impact on the Company's financial statements. ASU No. 2022-02, Financial Instruments Credit Losses (Topic 326): "Troubled Debt Restructurings and Vintage Disclosures". ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings (“TDRs”) in ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors” for entities that have adopted the current expected credit loss (“CECL”) model introduced by ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13”). ASU 2022-02 also requires that public business entities disclose current-period gross charge-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, “Financial Instruments—Credit Losses—Measured at Amortized Cost”. ASU 2022-02 is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2022-02 on January 1, 2023 and it did not have a material effect on the Company’s consolidated financial statements.
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Nature of Operations and Summary of Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounting Standards Update and Change in Accounting Principle |
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Investment Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains and Losses and Fair Values of Available for Sale and Held to Maturity Securities | The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at September 30, 2023 were as follows:
The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2022 were as follows:
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Schedule of Fair Value and Related Unrealized Losses of Temporarily Impaired Investment Securities, Aggregated by Investment Category | The following tables provide information regarding available for sale securities and held to maturity securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2023 and December 31, 2022:
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Loans Receivable and ACL-Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loan Portfolio | The following table sets forth a summary of the loan portfolio at September 30, 2023 and December 31, 2022:
(1) The September 30, 2023 and December 31, 2022 balances include $23 thousand and $33 thousand, respectively, of Paycheck Protection Program ("PPP") loans made under the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act").
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Schedule of Portfolio Segment and Impairment Methodology, of ACL-Loan and Related Portfolio | The following tables set forth the activity in the Company’s ACL-Loans for the three and nine months ended September 30, 2023 and 2022, by portfolio segment:
Loans evaluated for impairment and the related ACL-Loans as of September 30, 2023 and December 31, 2022 were as follows:
(1) In 2022, unfunded commitments were recorded as "Other" in noninterest expense. The following table summarizes the Provision for credit losses for the three and nine months ended September 30, 2023 and September 30, 2022:
(1) In 2022, unfunded commitments was recorded as "Other" in noninterest expense.
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Schedule of Loan Portfolio Quality Indicators by Portfolio Segment | The following tables present loans by origination and risk designation as of September 30, 2023 and December 31, 2022 (dollars in thousands):
The following tables present credit risk ratings by loan segment as of September 30, 2023 and December 31, 2022:
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Schedule of Information with Respect to our Loan Portfolio Delinquencies by Portfolio Segment and Amount | The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of September 30, 2023 and December 31, 2022:
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Schedule of Nonaccrual Loans by Portfolio Segment | The following is a summary of nonaccrual loans by portfolio segment as of September 30, 2023 and December 31, 2022:
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Schedule of Loans Whose Terms were Modified as Tdrs During the Periods | The following table summarizes individually evaluated loans by portfolio segment as of September 30, 2023 and December 31, 2022.
The following table summarizes the average carrying amount of individually evaluated impaired loans and interest income recognized on individually evaluated loans by portfolio segment for the three and nine months ended September 30, 2023 and 2022:
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Schedule of Information on How Loans were Modified as a TDR | The following table provides information on how loans were modified during the three and nine months ended September 30, 2023 and September 30, 2022.
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Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following tables present the changes in accumulated other comprehensive (loss) income by component, net of tax for the three and nine months ended September 30, 2023 and September 30, 2022:
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Schedule of Reclassified from Accumulated Other Comprehensive Income or Loss | The following table provides information for the items reclassified from accumulated other comprehensive income or loss:
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Earnings per share ("EPS") (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Earnings Available to Common Stockholders and Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding | The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method:
(1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method.
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Regulatory Matters (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Capital Amounts and Ratios | The capital amounts and ratios for the Bank and the Company at September 30, 2023 and December 31, 2022 were as follows:
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Deposits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deposit Liabilities | At September 30, 2023 and December 31, 2022, deposits consisted of the following:
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Schedule of Time Deposits Maturity Schedule | Maturities of time certificates of deposit as of September 30, 2023 and December 31, 2022 are summarized below:
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Schedule of Interest Expense | The following table summarizes interest expense on deposits by account type for the three and nine months ended September 30, 2023 and 2022:
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Status of Outstanding Stock Options | A summary of the status of outstanding stock options for the nine months ended September 30, 2023 is presented below:
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Schedule of Activity for Restricted Stock | The following table presents the activity for restricted stock for the nine months ended September 30, 2023:
(1) Includes 34,369 shares of performance based restricted stock. (2) Includes 33,106 shares of performance based restricted stock. (3) Includes 25,574 shares of performance based restricted stock. (4) Includes 5,586 shares of performance based restricted stock.
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Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Portfolio Layer Method Hedged Asset | The following table represents the carrying value of the portfolio layer method hedged asset and the cumulative fair value hedging adjustment included in the carrying value of the hedged asset as of September 30, 2023 and December 31, 2022:
(1) These amounts include the amortized cost basis of closed portfolios of fixed rate loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. As of September 30, 2023, the amortized cost basis of the closed portfolio used in this hedging relationship was $654.5 million, the cumulative basis adjustments associated with this hedging relationships was $1.7 million, and the amount of the designated hedged item was $150.0 million.
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Schedule of Derivative Instruments | Information about derivative instruments at September 30, 2023 and December 31, 2022 is as follows:
(1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party.
(1) Represents interest rate swaps with commercial banking clients, which are offset by derivatives with a third party.
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Schedule of Changes in the Consolidated Statements of Comprehensive Income (Loss) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows | Changes in the consolidated statements of comprehensive income (loss) related to interest rate derivatives designated as hedges of cash flows were as follows for the three and nine months ended September 30, 2023 and September 30, 2022:
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Schedule of Derivative Fair Value Hedge Recognized in Consolidated Statements of Income | The following table summarizes the effect of the fair value hedging relationship recognized in the consolidated statements of income for the three and nine months ended September 30, 2023 and September 30, 2022:
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Schedule of Gross and Net Information about Derivative Instruments that are Offset in the Consolidated Balance Sheets | The following tables summarize gross and net information about derivative instruments that are offset in the Consolidated Balance Sheets at September 30, 2023 and December 31, 2022:
(1) Includes accrued interest receivable totaling $756 thousand.
(1) Includes net accrued interest payable totaling $20 thousand.
(1) Includes accrued interest receivable totaling $599 thousand.
(1) Includes no accrued interest.
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Fair Values of the Company's Financial Instruments | The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at September 30, 2023 and December 31, 2022 were as follows:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Carried at Fair Value on a Recurring Basis | The following table details the financial instruments carried at fair value on a recurring basis at September 30, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the nine months ended September 30, 2023 and for the year ended December 31, 2022.
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Schedule of Financial Instruments Carried at Fair Value on a Nonrecurring Basis | The following table details the financial instruments measured at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:
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Schedule of Quantitative Inputs and Assumptions for Level 3 Financial Instruments Carried at Fair Value on a Nonrecurring Basis | The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at September 30, 2023 and December 31, 2022:
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Nature of Operations and Summary of Significant Accounting Policies - Narratives (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
mi²
|
Jun. 30, 2023
USD ($)
|
Jan. 01, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Sep. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
---|---|---|---|---|---|---|---|
Real Estate Properties | |||||||
Retained earnings | $ (142,205) | $ (123,640) | |||||
Allowance for loan losses | $ (29,284) | $ (30,694) | (22,431) | $ (18,167) | $ (15,773) | $ (16,902) | |
Tax Effected | |||||||
Real Estate Properties | |||||||
Retained earnings | $ 5,100 | ||||||
Allowance for loan losses | 5,100 | $ (5,079) | |||||
Reserve for unfunded commitments | $ 1,300 | ||||||
Connecticut | |||||||
Real Estate Properties | |||||||
Area of land (in miles) | mi² | 100 |
Nature of Operations and Summary of Significant Accounting Policies - Schedule of Accounting Standards Update and Change in Accounting Principle (Details) $ in Thousands |
Jan. 01, 2023
USD ($)
|
---|---|
New Accounting Pronouncements or Change in Accounting Principle | |
Total ACL- Loans | $ 5,079 |
Total ACL-Unfunded Commitments | 1,273 |
Total impact of CECL adoption | 6,352 |
Tax Effected | |
New Accounting Pronouncements or Change in Accounting Principle | |
Total ACL- Loans | 1,167 |
Total ACL-Unfunded Commitments | 292 |
Total impact of CECL adoption | 1,459 |
Change to Retained Earnings from Adoption of CECL | |
New Accounting Pronouncements or Change in Accounting Principle | |
Total ACL- Loans | 3,912 |
Total ACL-Unfunded Commitments | 981 |
Total impact of CECL adoption | $ 4,893 |
Investment Securities - Narratives (Details) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023
USD ($)
security
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
security
|
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities | $ 0 | $ 0 | |
Marketable equity securities, at fair value | 1,975,000 | $ 1,988,000 | |
Marketable equity securities at amortized cost | $ 2,200,000 | $ 2,100,000 | |
Number of available for sales debt securities in continuous loss position (positions) | security | 37 | 36 |
Loans Receivable and ACL-Loans - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Loans and Leases Receivable Disclosure | ||||||
Total loans | $ 2,770,110 | $ 2,675,448 | ||||
ACL-Loans | (29,284) | $ (30,694) | (22,431) | $ (18,167) | $ (15,773) | $ (16,902) |
Deferred loan origination fees, net | (5,584) | (6,633) | ||||
Loans receivable, net | 2,735,242 | 2,646,384 | ||||
Real estate loan | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 2,208,872 | 2,137,038 | ||||
Residential | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 52,908 | 60,588 | ||||
ACL-Loans | (161) | (190) | (163) | (172) | (331) | (504) |
Commercial | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 1,955,992 | 1,921,252 | ||||
ACL-Loans | (20,736) | (19,948) | (15,597) | (12,926) | (11,480) | (12,751) |
Construction | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 199,972 | 155,198 | ||||
ACL-Loans | (1,615) | (1,798) | (311) | (133) | (95) | (4) |
Commercial Business | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 508,626 | 520,447 | ||||
ACL-Loans | (6,184) | (6,788) | (6,214) | (4,808) | (3,802) | (3,590) |
Commercial Business | PPP loans | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 23 | 33 | ||||
Consumer | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 52,612 | 17,963 | ||||
ACL-Loans | $ (588) | $ (1,970) | $ (146) | $ (128) | $ (65) | $ (53) |
Loans Receivable and ACL-Loans - Narratives (Details) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2023
USD ($)
loan
|
Sep. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
loan
|
|
Loans and Leases Receivable Disclosure | |||||
Percentage of market value of the collateral (as a percent) | 80.00% | ||||
Maximum percentage of market value of the collateral (as a percent) | 85.00% | ||||
Maximum percent of the loan in comparison with original appraised value of the property (as a percent) | 80.00% | ||||
Number of loans | loan | 0 | 0 | |||
Income contractually due but not recognized on originated nonaccrual loans | $ 5,100,000 | $ 700,000 | |||
Interest and fees on loans | $ 43,854,000 | $ 28,128,000 | 126,059,000 | 74,697,000 | |
Non-accrual loans with no allowance for loans losses | 24,900,000 | 24,900,000 | $ 14,700,000 | ||
Recorded investment in TDR | $ 0 | 0 | $ 22,200,000 | ||
Nonperforming Financial Instruments | |||||
Loans and Leases Receivable Disclosure | |||||
Interest and fees on loans | $ 0 | $ 0 |
Loans Receivable and ACL-Loans - Schedule of Nonaccrual Loans by Portfolio Segment (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 27,957 | $ 16,441 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 1,408 | 2,152 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 1,898 | 2,781 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 7,352 | 2,126 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 9,382 | 9,382 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 7,917 | $ 0 |
Loans Receivable and ACL-Loans - Schedule of Loans that were Modified (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023
USD ($)
loan
|
Sep. 30, 2022
USD ($)
loan
|
Sep. 30, 2023
USD ($)
loan
|
Sep. 30, 2022
USD ($)
loan
|
|
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 703 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 703 |
Residential Real Estate | ||||
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 1 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 703 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 703 |
Commercial Business | ||||
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Real Estate | ||||
Financing Receivable, Modifications | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and ACL-Loans - Schedule of Loans were Modified as TDR (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Financing Receivable, Modifications | ||||
Post-Modification | $ 0 | $ 0 | $ 0 | $ 703 |
Payment concession | ||||
Financing Receivable, Modifications | ||||
Post-Modification | 0 | 0 | 0 | 703 |
Maturity, rate and payment concession | ||||
Financing Receivable, Modifications | ||||
Post-Modification | 0 | 0 | 0 | 0 |
Rate concession | ||||
Financing Receivable, Modifications | ||||
Post-Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and ACL-Loans - Schedule of Allowance for Credit Losses (ACL)-Unfunded Commitments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
ACL-Loan and Lease Losses | ||||
Beginning balance | $ 30,694 | $ 15,773 | $ 22,431 | $ 16,902 |
(Credit) provision for credit losses | (1,579) | 2,381 | 1,826 | 1,165 |
Ending balance | 29,284 | 18,167 | 29,284 | 18,167 |
Tax Effected | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 5,079 | |||
Unfunded commitments | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | 1,066 | 60 | 80 | 170 |
Reversal of prior unfunded reserve | 0 | 0 | (80) | 0 |
(Credit) provision for credit losses | (146) | 0 | (353) | (110) |
Ending balance | 920 | 60 | 920 | 60 |
Unfunded commitments | Tax Effected | ||||
ACL-Loan and Lease Losses | ||||
Beginning balance | $ 0 | $ 0 | $ 1,273 | $ 0 |
Loans Receivable and ACL-Loans - Components of Provision for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Financing Receivable, Allowance for Credit Loss | ||||
(Credit) provision for credit losses | $ (1,579) | $ 2,381 | $ 1,826 | $ 1,165 |
(Credit) provision for credit losses (loans) | ||||
Financing Receivable, Allowance for Credit Loss | ||||
(Credit) provision for credit losses | (1,433) | 2,381 | 2,179 | 1,165 |
(Credit) for credit losses (unfunded commitments) | ||||
Financing Receivable, Allowance for Credit Loss | ||||
(Credit) provision for credit losses | $ (146) | $ 0 | $ (353) | $ 0 |
Shareholders' Equity - Common Stock (Details) - shares |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 7,841,616 | 7,730,699 |
Common stock, shares outstanding (in shares) | 7,841,616 | 7,730,699 |
Shareholders' Equity - Issuer Purchases of Equity Securities (Details) - $ / shares |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Oct. 27, 2021 |
Dec. 19, 2018 |
|
Stockholders Equity Note | ||||||
Authorized shares for repurchase (in shares) | 400,000 | |||||
Weighted average share repurchased (in dollars per share) | $ 33.30 | |||||
Common Stock | ||||||
Stockholders Equity Note | ||||||
Shares repurchased (in shares) | 53,546 | 0 | 166,375 | 166,375 | ||
Common Stock | Board of Directors | ||||||
Stockholders Equity Note | ||||||
Authorized additional shares for repurchase (in shares) | 200,000 |
Comprehensive Income - Schedule of Reclassified from Accumulated Other Comprehensive Income or Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivatives: | ||||
Unrealized gains (losses) on derivatives | $ 2,230 | $ 3,986 | $ 3,528 | $ 20,871 |
Derivatives: | Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Derivatives: | ||||
Unrealized gains (losses) on derivatives | 1,229 | 249 | 3,323 | (1,026) |
Tax (expense) benefit | (282) | (56) | (1,732) | 229 |
Net of tax | $ 947 | $ 193 | $ 1,591 | $ (797) |
Earnings per share ("EPS") - Schedule of Reconciliation of Earnings Available to Common Stockholders and Basic Weighted Average Common Shares Outstanding to Diluted Weighted Average Common Shares Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 9,777 | $ 9,174 | $ 28,139 | $ 29,408 |
Dividends to participating securities | (41) | (33) | (125) | (101) |
Undistributed earnings allocated to participating securities | (209) | (159) | (613) | (529) |
Net income for earnings per share calculation, Basic | 9,527 | 8,982 | 27,401 | 28,778 |
Net income for earnings per share calculation, Diluted | $ 9,527 | $ 8,982 | $ 27,401 | $ 28,778 |
Weighted average shares outstanding, basic (in shares) | 7,598,230 | 7,553,718 | 7,582,272 | 7,582,175 |
Effect of dilutive equity-based awards (in shares) | 36,000 | 58,000 | 65,000 | 82,000 |
Weighted average shares outstanding, diluted (in shares) | 7,633,934 | 7,612,421 | 7,646,837 | 7,664,123 |
Net earnings per common share: | ||||
Basic earnings per common share (in dollars per share) | $ 1.25 | $ 1.19 | $ 3.61 | $ 3.80 |
Diluted earnings per common share (in dollars per share) | $ 1.25 | $ 1.18 | $ 3.58 | $ 3.75 |
Regulatory Matters - Narratives (Details) |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Regulatory Matters [Abstract] | ||
Minimum total risk-based capital ratio (as a percent) | 0.080 | |
Minimum Tier 1 risk-based capital ratio (as a percent) | 0.060 | |
Minimum common equity Tier 1 risk-based capital ratio (as a percent) | 0.045 | |
Minimum leverage ratio (as a percent) | 0.040 | 0.0400 |
Minimum risk-based capital requirements for adequately capitalized (as a percent) | 0.025 | |
Minimum Tier 1 risk-based capital ratio (as a percent) | 0.070 | 0.0700 |
Minimum Tier 1 risk-based capital ratio (as a percent) | 0.085 | 0.0850 |
Minimum total risk-based capital ratio (as a percent) | 0.105 | 0.1050 |
Deposits - Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deposits [Abstract] | ||
Noninterest bearing demand deposit accounts | $ 345,433 | $ 404,559 |
Interest bearing accounts: | ||
NOW | 101,719 | 104,057 |
Money market | 879,978 | 913,868 |
Savings | 102,207 | 151,944 |
Time certificates of deposit | 1,339,289 | 1,226,390 |
Total interest bearing accounts | 2,423,193 | 2,396,259 |
Total deposits | $ 2,768,626 | $ 2,800,818 |
Deposits - Schedule of Time Deposits Maturity Schedule (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Time Deposits, Fiscal Year Maturity | ||
Year one | $ 418,957 | $ 1,084,321 |
Year two | 585,437 | 135,965 |
Year three | 318,587 | 5,927 |
Year four | 26 | 109 |
Year five | 68 | 68 |
Year six | 6,220 | 0 |
After year six | 9,994 | 0 |
Total | $ 1,339,289 | $ 1,226,390 |
Deposits - Narratives (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deposits [Abstract] | ||
Certificate of deposits above $250,000 | $ 140.8 | $ 74.6 |
Deposits - Schedule of Interest Expense on Deposits (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Interest Expense on Deposit Liabilities, Disclosures | ||||
NOW | $ 47 | $ 52 | $ 127 | $ 158 |
Money market | 9,064 | 2,346 | 23,532 | 4,672 |
Savings | 817 | 474 | 2,404 | 678 |
Time certificates of deposits | 13,861 | 1,220 | 35,536 | 2,773 |
Total interest expense on deposits | $ 23,789 | $ 4,092 | $ 61,599 | $ 8,281 |
Stock-Based Compensation - Schedule of Outstanding Share Options (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Number of Shares | |
Options outstanding at beginning of period (in shares) | shares | 8,680 |
Exercised (in shares) | shares | (8,680) |
Options outstanding at end of period (in shares) | shares | 0 |
Options exercisable at end of period (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (in dollars per share) | $ / shares | $ 17.86 |
Exercised (in dollars per share) | $ / shares | 17.86 |
Options outstanding at end of period (in dollars per share) | $ / shares | 0 |
Options exercisable at end of period (in dollars per share) | $ / shares | $ 0 |
Stock-Based Compensation - Schedule of Activity for Restricted Stock (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Number of Shares | |
Unvested at beginning of period (in shares) | 214,000 |
Granted (in shares) | 117,675 |
Vested (in shares) | (75,993) |
Forfeited (in shares) | (15,438) |
Unvested at end of period (in shares) | 240,244 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in dollars per share) | $ / shares | $ 27.96 |
Granted (in dollars per share) | $ / shares | 29.88 |
Vested (in dollars per share) | $ / shares | 29.47 |
Forfeited (in dollars per share) | $ / shares | 24.62 |
Unvested at end of period (in dollars per share) | $ / shares | |
Performance Based Restricted Stock | |
Number of Shares | |
Unvested at beginning of period (in shares) | 34,369 |
Granted (in shares) | 33,106 |
Vested (in shares) | (25,574) |
Forfeited (in shares) | (5,586) |
Derivative Instruments - Fixed Rate Asset (Details) - Cash flow swaps - Fair Value Hedging - Carrying Value - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives | ||
Carrying Value of Hedged Asset | $ 148,304 | $ 0 |
Hedged Items | (1,696) | $ 0 |
Amortized cost basis | 654,500 | |
Hedged asset, cumulative adjustment basis | 1,700 | |
Fair value hedge assets | $ 150,000 |
Derivative Instruments - Changes in Consolidated Statements of Comprehensive Income Related to Interest Rate Derivatives (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Interest rate swaps designated as cash flow hedges: | ||||
Unrealized loss recognized in accumulated other comprehensive income before reclassifications | $ 2,230 | $ 3,986 | $ 3,528 | $ 20,871 |
Amounts reclassified from accumulated other comprehensive income | (1,229) | (249) | (3,323) | 1,026 |
Income tax (expense) benefit on items recognized in accumulated other comprehensive income | (230) | (835) | (100) | (4,892) |
Unrealized gains (losses) on interest rate swaps, net of tax | $ 771 | $ 2,902 | $ 105 | $ 17,005 |
Derivative Instruments - Fair Value Hedging Relationship Recognized in the Consolidated Statement of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Gain (loss) on fair value hedging relationship: | ||||
Hedged asset | $ (1,015) | $ 0 | $ (1,696) | $ 0 |
Fair value derivative designated as hedging instrument | 1,402 | 0 | 2,407 | 0 |
Total gain recognized in the consolidated statements of income within interest and fees on loans | $ 387 | $ 0 | $ 711 | $ 0 |
Derivative Instruments - Schedule of Gross Net Information About Derivatives (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative assets | ||
Gross Amounts of Recognized Assets | $ 16,359 | $ 13,097 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 16,359 | 13,097 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 16,487 | 12,771 |
Net Amount | (128) | 326 |
Accrued interest included in derivative fair value | 756 | |
Accrued interest included in derivative fair value | 599 | |
Derivative liabilities | ||
Gross Amounts of Recognized Liabilities | 5,391 | 4,258 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Liabilities presented in the Statement of Financial Position | 5,391 | 4,258 |
Financial Instruments | 0 | 0 |
Cash Collateral Posted | 0 | 0 |
Net Amount | 5,391 | 4,258 |
Accrued interest included in fair value of derivative liabilities | $ 20 | |
Accrued interest included in derivative liability fair value | $ 0 |
Fair Value Measurements - Schedule of Financial Instruments Carried at Fair Value on a Nonrecurring Basis (Details) - Fair Value Measurements Nonrecurring - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | $ 0 | $ 0 |
Servicing asset, net | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | 0 | 0 |
Servicing asset, net | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Individually evaluated loans | 80,550 | 41,929 |
Servicing asset, net | $ 952 | $ 723 |
Subsequent Events (Details) - $ / shares |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 25, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Subsequent Event | |||||
Cash dividends declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 | |
Subsequent Event | |||||
Subsequent Event | |||||
Cash dividends declared (in dollars per share) | $ 0.20 |
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