(State or other jurisdiction of Incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||||
Emerging growth company |
PART I – |
3 |
|||||
ITEM 1. |
5 |
|||||
10 |
||||||
ITEM 2. |
36 |
|||||
37 |
||||||
38 |
||||||
40 |
||||||
47 |
||||||
60 |
||||||
ITEM 3. |
63 |
|||||
ITEM 4. |
63 |
|||||
PART II – |
64 |
|||||
ITEM 1. |
64 |
|||||
ITEM 1A. |
65 |
|||||
ITEM 2. |
66 |
|||||
ITEM 3. |
66 |
|||||
ITEM 4. |
66 |
|||||
ITEM 5. |
66 |
|||||
ITEM 6. |
67 |
|||||
68 |
• |
local, regional, national and international economic and market conditions and political events and public health developments and the impact they may have on us, our customers and our assets and liabilities; |
• |
our ability to attract deposits and other sources of funding or liquidity; |
• |
supply and demand for commercial or residential real estate and periodic deterioration in real estate prices and/or values in California or other states where we lend; |
• |
a sharp or prolonged slowdown or decline in real estate construction, sales or leasing activities; |
• |
changes in the financial performance and/or condition of our borrowers, depositors, key vendors or counterparties; |
• |
changes in our levels of delinquent loans, nonperforming assets, allowance for credit losses and charge-offs; |
• |
the costs or effects of mergers, acquisitions or dispositions we may make, whether we are able to obtain any required governmental approvals in connection with any such mergers, acquisitions or dispositions, and/or our ability to realize the contemplated financial or business benefits or cost savings associated with any such mergers, acquisitions or dispositions; |
• |
the effects of new laws, regulations and/or government programs, including those laws, regulations and programs enacted by federal, state or local governments in the geographic jurisdictions in which we do business in response to the recent national emergency declared in connection with the COVID-19 pandemic; |
• |
the impact of the federal CARES Act and the significant additional lending activities undertaken by the Company in connection with the Small Business Administration’s Paycheck Protection Program enacted thereunder, including risks to the Company with respect to the uncertain application by the Small Business Administration of new borrower and loan eligibility, forgiveness and audit criteria; |
• |
the effects of the Company’s participation in one or more of the new lending programs recently established by the Federal Reserve, including the Main Street New Loan Facility, the Main Street Priority Loan Facility and the Nonprofit Organization New Loan Facility, and the impact of any related actions or decisions by the Federal Reserve Bank of Boston and its special purpose vehicle established pursuant to such lending programs; |
• |
the effect of changes in other pertinent laws, regulations and applicable judicial decisions (including laws, regulations and judicial decisions concerning financial reforms, taxes, bank capital levels, allowance for credit losses, consumer, commercial or secured lending, securities and securities trading and hedging, bank operations, compliance, fair lending, the Community Reinvestment Act, employment, executive compensation, insurance, cybersecurity, vendor management and information security technology) with which we and our subsidiaries must comply or believe we should comply or which may otherwise impact us; |
• |
changes in estimates of future reserve requirements and minimum capital requirements based upon the periodic review thereof under relevant regulatory and accounting standards, including changes in the Basel Committee framework establishing capital standards for bank credit, operations and market risks; |
• |
the accuracy of the assumptions and estimates and the absence of technical error in implementation or calibration of models used to estimate the fair value of financial instruments or currently expected credit losses or delinquencies; |
• |
the sensitivity of our assets and liabilities to changes in market interest rates, or our current allowance for credit losses; |
• |
inflation, changes in market interest rates, securities market and monetary fluctuations; |
• |
changes in government-established interest rates, reference rates or monetary policies, including the possible imposition of negative interest rates on bank reserves; |
• |
the impact of the anticipated phase-out of the London Interbank Offered Rate (LIBOR) on interest rate indexes specified in certain of our customer loan agreements and our interest rate swap arrangements, including any economic and compliance effects related to the expected change from LIBOR to an alternative reference rate; |
• |
changes in the amount, cost and availability of deposit insurance; |
• |
disruptions in the infrastructure that supports our business and the communities where we are located, which are concentrated in California, involving or related to public health, physical site access and/or communication facilities; |
• |
cyber incidents, attacks, infiltrations, exfiltrations, or theft or loss of Company or customer or employee data or money; |
• |
political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, the effects of pandemic diseases, climate changes or extreme weather events, that may affect electrical, environmental, computer servers, and communications or other services, computer services or facilities we use, or that may affect our customers, employees or third parties with whom we conduct business; |
• |
our timely development and implementation of new banking products and services and the perceived overall value of these products and services by our customers and potential customers; |
• |
the Company’s relationships with and reliance upon outside vendors with respect to certain of the Company’s key internal and external systems, applications and controls; |
• |
changes in commercial or consumer spending, borrowing and savings patterns, preferences or behaviors; |
• |
technological changes and the expanding use of technology in banking and financial services (including the adoption of mobile banking, funds transfer applications, electronic marketplaces for loans, blockchain technology and other financial products, systems or services); |
• |
our ability to retain and increase market share, retain and grow customers and control expenses; |
• |
changes in the competitive environment among banks and other financial services and technology providers; |
• |
competition and innovation with respect to financial products and services by banks, financial institutions and non-traditional providers including retail businesses and technology companies; |
• |
volatility in the credit and equity markets and its effect on the general economy or local or regional business conditions or on the Company’s capital, deposits, assets, or customers; |
• |
fluctuations in the price of the Company’s common stock or other securities, and the resulting impact on the Company’s ability to raise capital or make acquisitions; |
• |
the effect of changes in accounting policies and practices, as may be adopted from time-to-time |
• |
changes in our organization, management, compensation and benefit plans, and our ability to recruit and retain or expand our workforce, management team, key executive positions and/or our board of directors; |
• |
our ability to identify suitable and qualified replacements for any of our executive officers who may leave their employment with us, including our Chief Executive Officer; |
• |
the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, lender liability, bank operations, financial product or service, data privacy, consumer or employee class action litigation); |
• |
regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; |
• |
our ongoing relations with our various federal and state regulators, including the SEC, Federal Reserve Board, FDIC and California DFPI; |
• |
our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report on Form 10-K for the year ended December 31, 2020, and particularly the discussion of risk factors within that document. |
ITEM 1. |
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
March 31, 2021 |
December 31, 2020 | |||||||
Assets |
||||||||
Cash and due from banks |
$ | $ | ||||||
Interest-earning balances due from Federal Reserve |
||||||||
Total cash and cash equivalents |
||||||||
Interest-earning balances due from depository institutions |
||||||||
Investment securities available-for-sale, $ |
||||||||
Investment securities held-to-maturity 2021, and $ |
||||||||
Total investment securities |
||||||||
Investment in stock of Federal Home Loan Bank (FHLB) |
||||||||
Loans and lease finance receivables |
||||||||
Allowance for credit losses |
( |
) | ( |
) | ||||
Net loans and lease finance receivables |
||||||||
Premises and equipment, net |
||||||||
Bank owned life insurance (BOLI) |
||||||||
Accrued interest receivable |
||||||||
Intangibles |
||||||||
Goodwill |
||||||||
Other real estate owned (OREO) |
||||||||
Income taxes |
||||||||
Other assets |
||||||||
Total assets |
$ | $ | ||||||
Liabilities and Stockholders’ Equity |
||||||||
Liabilities: |
||||||||
Deposits: |
||||||||
Noninterest-bearing |
$ | $ | ||||||
Interest-bearing |
||||||||
Total deposits |
||||||||
Customer repurchase agreements |
||||||||
Other borrowings |
||||||||
Deferred compensation |
||||||||
Junior subordinated debentures |
||||||||
Payable for securities purchased |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Commitments and Contingencies |
||||||||
Stockholders’ Equity |
||||||||
Common stock, authorized, |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive income, net of tax |
||||||||
Total stockholders’ equity |
||||||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
Three Months Ended March 31, | ||||||||
2021 |
2020 | |||||||
Interest income: |
||||||||
Loans and leases, including fees |
$ | $ | ||||||
Investment securities: |
||||||||
Investment securities available-for-sale |
||||||||
Investment securities held-to-maturity |
||||||||
|
|
|
|
|
| |||
Total investment income |
||||||||
|
|
|
|
|
| |||
Dividends from FHLB stock |
||||||||
Interest-earning deposits with other institutions |
||||||||
|
|
|
|
|
| |||
Total interest income |
||||||||
|
|
|
|
|
| |||
Interest expense: |
||||||||
Deposits |
||||||||
Borrowings and customer repurchase agreements |
||||||||
Junior subordinated debentures |
||||||||
|
|
|
|
|
| |||
Total interest expense |
||||||||
|
|
|
|
|
| |||
Net interest income before (recapture of) provision for credit losses |
||||||||
(Recapture of) provision for credit losses |
( |
) | ||||||
|
|
|
|
|
| |||
Net interest income after (recapture of) provision for credit losses |
||||||||
|
|
|
|
|
| |||
Noninterest income: |
||||||||
Service charges on deposit accounts |
||||||||
Trust and investment services |
||||||||
Bankcard services |
||||||||
BOLI income |
||||||||
Gain on OREO, net |
||||||||
Other |
||||||||
|
|
|
|
|
| |||
Total noninterest income |
||||||||
|
|
|
|
|
| |||
Noninterest expense: |
||||||||
Salaries and employee benefits |
||||||||
Occupancy and equipment |
||||||||
Professional services |
||||||||
Computer software expense |
||||||||
Marketing and promotion |
||||||||
Amortization of intangible assets |
||||||||
Other |
||||||||
|
|
|
|
|
| |||
Total noninterest expense |
||||||||
|
|
|
|
|
| |||
Earnings before income taxes |
||||||||
Income taxes |
||||||||
|
|
|
|
|
| |||
Net earnings |
$ | $ | ||||||
|
|
|
|
|
| |||
Other comprehensive (loss) income: |
||||||||
Unrealized (loss) gain on securities arising during the period, before tax |
$ | ( |
) | $ | ||||
Less: Income tax benefit (expense) related to items of other comprehensive income |
( |
) | ||||||
|
|
|
|
|
| |||
Other comprehensive (loss) income, net of tax |
( |
) | ||||||
|
|
|
|
|
| |||
Comprehensive income |
$ | $ | ||||||
|
|
|
|
|
| |||
Basic earnings per common share |
$ | $ | ||||||
Diluted earnings per common share |
$ | $ |
Common Shares Outstanding |
Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Total | ||||||||||||||||
Balance, January 1, 2021 |
$ | $ | $ | $ | ||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | - | - | ( |
) | ||||||||||||
Exercise of stock options |
- | - | ||||||||||||||||||
Shares issued pursuant to stock-based compensation plan |
- | - | ||||||||||||||||||
Cash dividends declared on common stock ($ |
- | - | ( |
) | - | ( |
) | |||||||||||||
Net earnings |
- | - | - | |||||||||||||||||
Other comprehensive loss |
- | - | - | ( |
) | ( |
) | |||||||||||||
Balance, March 31, 2021 |
$ | $ | $ | $ | ||||||||||||||||
Balance, January 1, 2020 |
$ | $ | $ | $ | ||||||||||||||||
Cumulative adjustment upon adoption of ASU 2016-13 |
( |
) | ( |
) | ||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | - | - | ( |
) | ||||||||||||
Exercise of stock options |
- | - | ||||||||||||||||||
Shares issued pursuant to stock-based compensation plan |
- | - | ||||||||||||||||||
Cash dividends declared on common stock ($ |
- | - | ( |
) | - | ( |
) | |||||||||||||
Net earnings |
- | - | - | |||||||||||||||||
Other comprehensive income |
- | - | - | |||||||||||||||||
Balance, March 31, 2020 |
$ | $ | $ | $ | ||||||||||||||||
Three Months Ended March 31, | ||||||||
2021 |
2020 | |||||||
Cash Flows from Operating Activities |
||||||||
Interest and dividends received |
$ | $ | ||||||
Service charges and other fees received |
||||||||
Interest paid |
( |
) | ( |
) | ||||
Net cash paid to vendors, employees and others |
( |
) | ( |
) | ||||
Income taxes |
||||||||
|
|
|
|
|
| |||
Net cash provided by operating activities |
||||||||
|
|
|
|
|
| |||
Cash Flows from Investing Activities |
||||||||
Net change in interest-earning balances from depository institutions |
( |
) | ||||||
Proceeds from repayment of investment securities available-for-sale |
||||||||
Proceeds from maturity of investment securities available-for-sale |
||||||||
Purchases of investment securities available-for-sale |
( |
) | ||||||
Proceeds from repayment and maturity of investment securities held-to-maturity |
||||||||
Purchases of investment securities held-to-maturity |
( |
) | ( |
) | ||||
Net increase in equity investments |
( |
) | ( |
) | ||||
Net decrease in loan and lease finance receivables |
||||||||
Proceeds from sale of building, net of selling costs |
||||||||
Purchase of premises and equipment |
( |
) | ( |
) | ||||
Proceeds from BOLI death benefit |
||||||||
Proceeds from sales of other real estate owned |
||||||||
|
|
|
|
|
| |||
Net cash (used in) provided by investing activities |
( |
) | ||||||
|
|
|
|
|
| |||
Cash Flows from Financing Activities |
||||||||
Net increase in other deposits |
||||||||
Net increase in time deposits |
||||||||
Net increase (decrease) in customer repurchase agreements |
( |
) | ||||||
Cash dividends on common stock |
( |
) | ( |
) | ||||
Repurchase of common stock |
( |
) | ( |
) | ||||
Proceeds from exercise of stock options |
||||||||
|
|
|
|
|
| |||
Net cash provided by financing activities |
||||||||
|
|
|
|
|
| |||
Net (decrease) increase in cash and cash equivalents |
( |
) | ||||||
Cash and cash equivalents, beginning of period |
||||||||
|
|
|
|
|
| |||
Cash and cash equivalents, end of period |
$ | $ | ||||||
|
|
|
|
|
|
Three Months Ended March 31, | ||||||||
2021 |
2020 | |||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities |
||||||||
Net earnings |
$ | $ | ||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
Gain on sale of building, net |
( |
) | ||||||
Gain on sale of other real estate owned |
( |
) | ||||||
Increase in BOLI |
( |
) | ( |
) | ||||
Net amortization of premiums and discounts on investment securities |
||||||||
Accretion of discount for acquired loans, net |
( |
) | ( |
) | ||||
(Recapture of) provision for credit losses |
( |
) | ||||||
Stock-based compensation |
||||||||
Depreciation and amortization, net |
( |
) | ||||||
Change in other assets and liabilities |
||||||||
|
|
|
|
|
| |||
Total adjustments |
( |
) | ||||||
|
|
|
|
|
| |||
Net cash provided by operating activities |
$ | $ | ||||||
|
|
|
|
|
| |||
Supplemental Disclosure of Non-cash Investing Activities |
||||||||
Securities purchased and not settled |
$ | $ |
1. |
BUSINESS |
2. |
BASIS OF PRESENTATION |
3. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
4. |
INVESTMENT SECURITIES |
March 31, 2021 | ||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||
Mortgage-backed securities |
$ | $ | $ | ( |
$ | |||||||||||||||
CMO/REMIC |
( |
|||||||||||||||||||
Municipal bonds |
||||||||||||||||||||
Other securities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total available-for-sale |
$ | $ | $ | ( |
$ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securities held-to-maturity: |
||||||||||||||||||||
Government agency/GSE |
$ | $ | $ | ( |
) | $ | ||||||||||||||
Mortgage-backed securities |
( |
) | ||||||||||||||||||
CMO/REMIC |
||||||||||||||||||||
Municipal bonds |
( |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total held-to-maturity |
$ | $ | $ | ( |
$ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 | ||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||
Mortgage-backed securities |
$ | $ | $ | ( |
$ | |||||||||||||||
CMO/REMIC |
( |
|||||||||||||||||||
Municipal bonds |
||||||||||||||||||||
Other securities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total available-for-sale |
$ | $ | $ | ( |
$ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securities held-to-maturity: |
||||||||||||||||||||
Government agency/GSE |
$ | $ | $ | $ | ||||||||||||||||
Mortgage-backed securities |
( |
|||||||||||||||||||
CMO/REMIC |
||||||||||||||||||||
Municipal bonds |
( |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total held-to-maturity |
$ | $ | $ | ( |
$ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
March 31, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Investment securities available-for-sale: |
||||||||
Taxable |
$ | $ | ||||||
Tax-advantaged |
||||||||
Total interest income from available-for-sale |
||||||||
Investment securities held-to-maturity: |
||||||||
Taxable |
||||||||
Tax-advantaged |
||||||||
Total interest income from held-to-maturity |
||||||||
Total interest income from investment securities |
$ | $ | ||||||
March 31, 2021 | ||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total | ||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||||||
Mortgage-backed securities |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
CMO/REMIC |
( |
) | ( |
) | ||||||||||||||||||||
Municipal bonds |
||||||||||||||||||||||||
Total available-for-sale |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total | ||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||||||
Mortgage-backed securities |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
CMO/REMIC |
( |
) | ( |
) | ||||||||||||||||||||
Municipal bonds |
||||||||||||||||||||||||
Total available-for-sale |
$ | $ | ( |
) | $ | $ | $ | $ | ( |
) | ||||||||||||||
March 31, 2021 | ||||||||||||||||
Available-for-sale |
Held-to-maturity | |||||||||||||||
Amortized Cost |
Fair Value |
Amortized Cost |
Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Due in one year or less |
$ | $ | $ | $ | ||||||||||||
Due after one year through five years |
||||||||||||||||
Due after five years through ten years |
||||||||||||||||
Due after ten years |
||||||||||||||||
Total investment securities |
$ | $ | $ | $ | ||||||||||||
5. |
LOANS AND LEASE FINANCE RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES |
March 31, 2021 |
December 31, 2020 |
|||||||
(Dollars in thousands) |
||||||||
Commercial real estate |
$ | $ | ||||||
Construction |
||||||||
SBA |
||||||||
SBA - Paycheck Protection Program (PPP) |
||||||||
Commercial and industrial |
||||||||
Dairy & livestock and agribusiness |
||||||||
Municipal lease finance receivables |
||||||||
SFR mortgage |
||||||||
Consumer and other loans |
||||||||
|
|
|
|
|||||
Total loans, at amortized cost |
||||||||
Less: Allowance for credit losses |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total loans and lease finance receivables, net |
$ | $ | ||||||
|
|
|
|
Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
||||||||||||||||||||||||||||||||||
March 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
Total | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
Commercial real estate loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Commercial real estate loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Construction loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Construction loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
SBA loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total SBA loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
SBA - PPP loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total SBA - PPP loans: |
$ | |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Commercial and industrial loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Commercial and industrial |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
||||||||||||||||||||||||||||||||||
March 31, 2021 |
2021 |
2020 |
2019 |
2018 |
2017 |
Prior |
Total | |||||||||||||||||||||||||||||
|
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Dairy & livestock and |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Municipal lease finance receivables loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Municipal lease finance |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
SFR mortgage loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total SFR mortgage loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Consumer and other loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Consumer and other loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
||||||||||||||||||||||||||||||||||
December 31, 2020 |
2020 |
2019 |
2018 |
2017 |
2016 |
Prior |
Total | |||||||||||||||||||||||||||||
|
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial real estate loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
Total Commercial real estate loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Construction loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
Total Construction loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
SBA loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
Total SBA loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
SBA - PPP loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
Total SBA - PPP loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commercial and industrial loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
Total Commercial and industrial loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination Year |
Revolving loans amortized cost basis |
Revolving loans converted to term loans |
||||||||||||||||||||||||||||||||||
December 31, 2020 |
2020 |
2019 |
2018 |
2017 |
2016 |
Prior |
Total | |||||||||||||||||||||||||||||
|
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Dairy & livestock and agribusiness loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Dairy & livestock and agribusiness loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Municipal lease finance receivables loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Municipal lease finance receivables loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
SFR mortgage loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total SFR mortgage loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Consumer and other loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Consumer and other loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Loans: |
||||||||||||||||||||||||||||||||||||
Risk Rating: |
||||||||||||||||||||||||||||||||||||
Pass |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful & Loss |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Total Loans: |
$ | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2021 | ||||||||||||||||||||
Ending Balance December 31, 2020 |
Charge-offs |
Recoveries |
(Recapture of) Provision for Credit Losses |
Ending Balance March 31, 2021 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||
Construction |
( |
) | ||||||||||||||||||
SBA |
( |
) | ||||||||||||||||||
SBA - PPP |
||||||||||||||||||||
Commercial and industrial |
( |
) | ||||||||||||||||||
Dairy & livestock and agribusiness |
( |
) | ||||||||||||||||||
Municipal lease finance receivables |
( |
) | ||||||||||||||||||
SFR mortgage |
( |
) | ||||||||||||||||||
Consumer and other loans |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total allowance for credit losses |
$ | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2020 | ||||||||||||||||||||||
Ending Balance, prior to adoption of ASU 2016-13 December 31, 2019 |
Impact of Adoption of ASU 2016-13 |
Charge-offs |
Recoveries |
Provision for (Recapture of) Credit Losses |
Ending Balance March 31, 2020 | |||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||
Commercial real estate |
$ |
$ | $ | $ | - | $ | $ | |||||||||||||||
Construction |
||||||||||||||||||||||
SBA |
- | |||||||||||||||||||||
Commercial and industrial |
( |
) | ||||||||||||||||||||
Dairy & livestock and agribusiness |
( |
) | - | ( |
) |
|||||||||||||||||
Municipal lease finance receivables |
( |
) | - | |||||||||||||||||||
SFR mortgage |
( |
) | ( |
) | ||||||||||||||||||
Consumer and other loans |
( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total allowance for credit losses |
$ |
$ | $ | ( |
) | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 | ||||||||||||||||||||||||
30-59 Days Past Due |
60-89 Days Past Due |
Greater than 89 Days Past Due |
Total Past Due |
Loans Not Past Due |
Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||
Owner occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non-owner occupied |
||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||
Speculative (1) |
- | |||||||||||||||||||||||
Non-speculative |
- | |||||||||||||||||||||||
SBA |
||||||||||||||||||||||||
SBA - PPP |
- | |||||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||||||
Municipal lease finance receivables |
- | |||||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total loans |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
December 31, 2020 | ||||||||||||||||||||||||
30-59 Days Past Due |
60-89 Days Past Due |
Greater than 89 Days Past Due |
Total Past Due |
Loans Not Past Due |
Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||
Owner occupied |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Non-owner occupied |
||||||||||||||||||||||||
Construction |
||||||||||||||||||||||||
Speculative (1) |
||||||||||||||||||||||||
Non-speculative |
||||||||||||||||||||||||
SBA |
||||||||||||||||||||||||
SBA - PPP |
||||||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total loans |
$ | $ | $ | $ | $ | |
$ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
|
March 31, 2021 | ||||||||||||
Nonaccrual with No Allowance for Credit Losses |
Total Nonaccrual (1) |
Loans Past Due Over 89 Days Still Accruing | ||||||||||
(Dollars in thousands) | ||||||||||||
Commercial real estate |
||||||||||||
Owner occupied |
$ | $ | $ | |||||||||
Non-owner occupied |
||||||||||||
Construction |
||||||||||||
Speculative (2) |
||||||||||||
Non-speculative |
||||||||||||
SBA |
||||||||||||
SBA - PPP |
||||||||||||
Commercial and industrial |
||||||||||||
Dairy & livestock and agribusiness |
||||||||||||
Municipal lease finance receivables |
||||||||||||
SFR mortgage |
||||||||||||
Consumer and other loans |
||||||||||||
|
|
|
|
|
|
|
|
| ||||
Total loans |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|
|
|
(1) | As of March 31, 2021, $ 60-89 days past due, and $ |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
December 31, 2020 | ||||||||||||
Nonaccrual with No Allowance for Credit Losses |
Total Nonaccrual (1)(3) |
Loans Past Due Over 89 Days Still Accruing | ||||||||||
(Dollars in thousands) | ||||||||||||
Commercial real estate |
||||||||||||
Owner occupied |
$ | $ | $ | |||||||||
Non-owner occupied |
||||||||||||
Construction |
||||||||||||
Speculative (2) |
||||||||||||
Non-speculative |
||||||||||||
SBA |
||||||||||||
SBA - PPP |
||||||||||||
Commercial and industrial |
||||||||||||
Dairy & livestock and agribusiness |
||||||||||||
Municipal lease finance receivables |
||||||||||||
SFR mortgage |
||||||||||||
Consumer and other loans |
||||||||||||
|
|
|
|
|
|
|
|
| ||||
Total loans |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|
|
|
(1) | As of December 31, 2020, $ 30-59 days past due, $60-89 days past due, and $ |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(3) | Excludes $ |
March 31, 2021 |
Number of Loans Dependent on Collateral |
|||||||||||||||
Real Estate |
Business Assets |
Other |
||||||||||||||
(Dollars in thousands) |
||||||||||||||||
Commercial real estate |
$ | $ | $ |
|||||||||||||
Construction |
||||||||||||||||
SBA |
||||||||||||||||
SBA - PPP |
||||||||||||||||
Commercial and industrial |
||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||
SFR mortgage |
||||||||||||||||
Consumer and other loans |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total collateral-dependent loans |
$ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
December 31, 2020 |
Number of Loans Dependent on Collateral | |||||||||||||||
Real Estate |
Business Assets |
Other | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial real estate |
$ | $ | $ |
|||||||||||||
Construction |
||||||||||||||||
SBA |
||||||||||||||||
SBA - PPP |
||||||||||||||||
Commercial and industrial |
||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||
SFR mortgage |
||||||||||||||||
Consumer and other loans |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total collateral-dependent loans |
$ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended | ||||||||
March 31, | ||||||||
2021 |
2020 | |||||||
(Dollars in thousands) | ||||||||
Performing TDRs: |
||||||||
Beginning balance |
$ |
$ |
||||||
New modifications |
||||||||
Payoffs/payments, net and other |
( |
) | ( |
) | ||||
TDRs returned to accrual status |
||||||||
TDRs placed on nonaccrual status |
||||||||
|
|
|
|
|
| |||
Ending balance |
$ | $ | ||||||
|
|
|
|
|
| |||
Nonperforming TDRs: |
||||||||
Beginning balance |
$ | $ | ||||||
New modifications |
||||||||
Charge-offs |
||||||||
Payoffs/payments, net and other |
( |
) | ||||||
TDRs returned to accrual status |
||||||||
TDRs placed on nonaccrual status |
||||||||
|
|
|
|
|
| |||
Ending balance |
$ | $ | ||||||
|
|
|
|
|
| |||
Total TDRs |
$ | $ | ||||||
|
|
|
|
|
|
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||
Number of Loans |
Pre-Modification Outstanding Recorded Investment |
Post-Modification Outstanding Recorded Investment |
Outstanding Recorded Investment at March 31, 2021 |
Financial Effect Resulting From Modifications (2) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||
Interest rate reduction |
$ | $ | $ | $ | ||||||||||||||||
|
||||||||||||||||||||
Commercial and industrial: |
||||||||||||||||||||
Interest rate reduction |
||||||||||||||||||||
Change in amortization |
||||||||||||||||||||
SFR mortgage: |
||||||||||||||||||||
Interest rate reduction |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total loans |
$ | $ | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The tables above exclude modified loans that were paid off prior to the end of the period. |
(2) | Financial effects resulting from modifications represent charge-offs and current allowance for credit losses at modification date. |
6. |
EARNINGS PER SHARE RECONCILIATION |
Three Months Ended March 31, | ||||||||
2021 |
2020 | |||||||
(In thousands, except per share amounts) | ||||||||
Earnings per common share: |
||||||||
Net earnings |
$ | $ | ||||||
Less: Net earnings allocated to restricted stock |
||||||||
|
|
|
|
|
| |||
Net earnings allocated to common shareholders |
$ | $ | ||||||
|
|
|
|
|
| |||
Weighted average shares outstanding |
||||||||
Basic earnings per common share |
$ | $ | ||||||
|
|
|
|
|
| |||
Diluted earnings per common share: |
||||||||
Net income allocated to common shareholders |
||||||||
|
|
|
|
|
| |||
Weighted average shares outstanding |
||||||||
Incremental shares from assumed exercise of outstanding options |
||||||||
|
|
|
|
|
| |||
Diluted weighted average shares outstanding |
||||||||
Diluted earnings per common share |
$ | $ | ||||||
|
|
|
|
|
|
7. |
FAIR VALUE INFORMATION |
Carrying Value at March 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets |
||||||||||||||||
Investment securities - AFS: |
||||||||||||||||
Mortgage-backed securities |
$ | $ | $ | $ | |
|||||||||||
CMO/REMIC |
||||||||||||||||
Municipal bonds |
||||||||||||||||
Other securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Total investment securities - AFS |
||||||||||||||||
Interest rate swaps |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
$ | $ | |
$ | $ | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Description of liability |
||||||||||||||||
Interest rate swaps |
$ | $ | $ | $ | |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Total liabilities |
$ | $ | $ | $ | |
|||||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Value at December 31, 2020 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets |
||||||||||||||||
Investment securities - AFS: |
||||||||||||||||
Mortgage-backed securities |
$ | $ | $ | $ | ||||||||||||
CMO/REMIC |
||||||||||||||||
Municipal bonds |
||||||||||||||||
Other securities |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Total investment securities - AFS |
||||||||||||||||
Interest rate swaps |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Total assets |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Description of liability |
||||||||||||||||
Interest rate swaps |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Total liabilities |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Value at March 31, 2021 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Losses For the Three Months Ended March 31, 2021 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Description of assets |
||||||||||||||||||||
Loans: |
||||||||||||||||||||
Commercial real estate |
$ | $ | $ | $ | $ | |||||||||||||||
Construction |
||||||||||||||||||||
SBA |
||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||
Other real estate owned |
||||||||||||||||||||
Asset held-for-sale |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Value at December 31, 2020 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
Total Losses For the Year Ended December 31, 2020 |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Description of assets |
||||||||||||||||||||
Loans: |
||||||||||||||||||||
Commercial real estate |
$ | $ | $ | $ | $ | |||||||||||||||
Construction |
||||||||||||||||||||
SBA |
||||||||||||||||||||
Commercial and industrial |
||||||||||||||||||||
Dairy & livestock and agribusiness |
||||||||||||||||||||
Municipal lease finance receivables |
||||||||||||||||||||
SFR mortgage |
||||||||||||||||||||
Consumer and other loans |
||||||||||||||||||||
Other real estate owned |
||||||||||||||||||||
Asset held-for-sale |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
||||||||||||||||||||
Estimated Fair Value |
||||||||||||||||||||
Carrying Amount |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Total cash and cash equivalents |
$ | $ | $ | $ | $ | |||||||||||||||
Interest-earning balances due from depository institutions |
||||||||||||||||||||
Investment securities available-for-sale |
||||||||||||||||||||
Investment securities held-to-maturity |
||||||||||||||||||||
Total loans, net of allowance for credit losses |
||||||||||||||||||||
Swaps |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Interest-bearing |
$ | $ | $ | $ | $ | |||||||||||||||
Borrowings |
||||||||||||||||||||
Junior subordinated debentures |
||||||||||||||||||||
Swaps |
December 31, 2020 |
||||||||||||||||||||
Estimated Fair Value |
||||||||||||||||||||
Carrying Amount |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Assets |
||||||||||||||||||||
Total cash and cash equivalents |
$ | $ | $ | $ | $ | |||||||||||||||
Interest-earning balances due from depository institutions |
||||||||||||||||||||
Investment securities available-for-sale |
||||||||||||||||||||
Investment securities held-to-maturity |
||||||||||||||||||||
Total loans, net of allowance for credit losses |
||||||||||||||||||||
Swaps |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Interest-bearing |
$ | $ | $ | $ | $ | |||||||||||||||
Borrowings |
||||||||||||||||||||
Junior subordinated debentures |
||||||||||||||||||||
Swaps |
8. |
DERIVATIVE FINANCIAL INSTRUMENTS |
March 31, 2021 |
||||||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||
Interest rate swaps |
Other assets | $ |
Other liabilities | $ |
||||||||||||
|
|
|
|
|||||||||||||
Total derivatives |
$ |
$ |
||||||||||||||
|
|
|
|
|||||||||||||
December 31, 2020 |
||||||||||||||||
Asset Derivatives |
Liability Derivatives |
|||||||||||||||
Balance Sheet Location |
Fair Value |
Balance Sheet Location |
Fair Value |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Derivatives not designated as hedging instruments: |
||||||||||||||||
Interest rate swaps |
Other assets | $ |
Other liabilities | $ |
||||||||||||
|
|
|
|
|||||||||||||
Total derivatives |
$ |
$ |
||||||||||||||
|
|
|
|
Derivatives Not Designated as Hedging Instruments |
Location of Gain Recognized in Income on Derivative Instruments |
Amount of Gain Recognized in Income on Derivative Instruments |
||||||||||
Three Months Ended March 31, |
||||||||||||
2021 |
2020 |
|||||||||||
(Dollars in thousands) |
||||||||||||
Interest rate swaps |
Other income | $ | $ | |||||||||
|
|
|
|
|||||||||
Total |
$ | $ | ||||||||||
|
|
|
|
9. |
OTHER COMPREHENSIVE INCOME |
Three Months Ended March 31, | ||||||||||||||||||||||||
2021 |
2020 | |||||||||||||||||||||||
Before-tax |
Tax effect |
After-tax |
Before-tax |
Tax effect |
After-tax | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securities: |
||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI |
$ | ( |
) | $ | |
$ | ( |
) | $ | $ | ( |
) | $ | |
||||||||||
Amortization of net unrealized losses on securities transferred from available-for-sale held-to-maturity |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net change |
$ | ( |
) | $ | |
$ | ( |
) | $ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10. |
BALANCE SHEET OFFSETTING |
Gross Amounts Recognized in |
Gross Amounts Offset in the |
Net Amounts Presented in the |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets |
|||||||||||||||||||||
the Condensed Consolidated Balance Sheets |
Condensed Consolidated Balance Sheets |
Condensed Consolidated Balance Sheets |
Financial Instruments |
Collateral Pledged |
Net Amount | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
March 31, 2021 |
||||||||||||||||||||||||
Financial assets: |
||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Financial liabilities: |
||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | $ | ( |
) | $ | $ | |
$ | ( |
) | $ | ( |
) | |||||||||||
Repurchase agreements |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
December 31, 2020 |
||||||||||||||||||||||||
Financial assets: |
||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Financial liabilities: |
||||||||||||||||||||||||
Derivatives not designated as hedging instruments |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||
Repurchase agreements |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
December 31, 2020 |
|||||||
(Dollars in thousands) |
||||||||
Lease Assets and Liabilities |
||||||||
ROU assets |
$ | |
$ | |||||
Total lease liabilities |
|
|
Three Months Ended |
||||||||
March 31, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Lease Cost |
||||||||
Operating lease expense (1) |
$ | $ | ||||||
Sublease income |
||||||||
|
|
|
|
|||||
Total lease expense |
$ | $ | ||||||
|
|
|
|
|||||
(1) Includes short-term leases and variable lease costs, which are immaterial. |
||||||||
Other Information |
||||||||
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash outflows from operating leases, net |
$ | |
$ | |||||
|
|
|
|
|
|
|
|
|
March 31, 2021 |
December 31, 020 |
|||||||
Lease Term and Discount Rate |
||||||||
Weighted average remaining lease term (years) |
||||||||
Weighted average discount rate |
March 31, 2021 | ||||
(Dollars in thousands) | ||||
Year: |
||||
2021 (excluding the three months ended March 31, 2021) |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
|
|
| ||
Total future lease payments |
||||
Less: Imputed interest |
( |
) | ||
|
|
| ||
Present value of lease liabilities |
$ | |||
|
|
|
Three Months Ended March 31, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Noninterest income: |
||||||||
In-scope of Topic 606: |
||||||||
Service charges on deposit accounts |
$ | $ | ||||||
Trust and investment services |
||||||||
Bankcard services |
||||||||
Gain on OREO, net |
||||||||
Other |
||||||||
|
|
|
|
|||||
Noninterest Income (in-scope of Topic 606) |
||||||||
Noninterest Income (out-of-scope |
||||||||
|
|
|
|
|||||
Total noninterest income |
$ | $ | ||||||
|
|
|
|
· |
Allowance for Credit Losses (“ACL”) |
· |
Business Combinations |
· |
Valuation and Recoverability of Goodwill |
· |
Income Taxes |
Standard |
Description |
Adoption Timing |
Impact on Financial Statements | |||
ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial ReportingIssued March 2020 |
The FASB issued ASU 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this update provide temporary, optional guidance to ease the potential burden in accounting for transitioning away from reference rates such as LIBOR. The amendments provide optional expedients and exceptions for applying GAAP to transactions affected by reference rate reform if certain criteria are met. The amendments primarily include relief related to contract modifications and hedgingrelationships, as well as providing a one-time election for the sale or transfer of debt securities classified as held-to-maturity. |
1st Quarter 2020 through the 4th Quarter 2022 | The Company established a LIBOR Transition Task Force in 2020, which has inventoried our instruments that reflect exposure to LIBOR, created a framework to manage the transition and established a timeline for key decisions and actions to complete the transition from LIBOR in 2021. Although the Company is assessing the impacts of this transition and exploring alternatives to use in place of LIBOR for various financial instruments, primarily related to our variable-rate loans, our subordinated debentures, and interest rate swap derivatives that are indexed to LIBOR, we do not expect this ASU to have a material impact on the Company’s consolidated financial statements. | |||
| ||||||
ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own EquityIssued August 2020 |
The FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This ASU reduces the number of accounting models for convertible instruments and allows more contracts to qualify for equity classification. |
1st Quarter 2022 | The adoption of this ASU is not expected to have a material impact on our consolidated financial statements. | |||
|
Three Months Ended March 31, |
Variance |
|||||||||||||||
2021 |
2020 |
$ |
% | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income |
$ | 103,468 | $ | 102,306 | $ | 1,162 | 1.14 | % | ||||||||
Recapture of (provision for) credit losses |
19,500 | (12,000 | ) | 31,500 | 262.50 | % | ||||||||||
Noninterest income |
13,681 | 11,640 | 2,041 | 17.53 | % | |||||||||||
Noninterest expense |
(47,163 | ) | (48,641 | ) | 1,478 | 3.04 | % | |||||||||
Income taxes |
(25,593 | ) | (15,325 | ) | (10,268) | -67.00 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net earnings |
$ | 63,893 | $ | 37,980 | $ | 25,913 | 68.23 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per common share: |
||||||||||||||||
Basic |
$ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Diluted |
$ | 0.47 | $ | 0.27 | $ | 0.20 | ||||||||||
Return on average assets |
1.79 | % | 1.34 | % | 0.45% | |||||||||||
Return on average shareholders’ equity |
12.75 | % | 7.61 | % | 5.14% | |||||||||||
Efficiency ratio |
40.26 | % | 42.69 | % | -2.43% | |||||||||||
Noninterest expense to average assets |
1.32 | % | 1.72 | % | -0.40% | |||||||||||
Three Months Ended |
Variance |
|||||||||||||||
March 31, 2021 |
December 31, 2020 |
$ |
% | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Net interest income |
$ | 103,468 | $ | 105,853 | $ | (2,385) | -2.25 | % | ||||||||
Recapture of credit losses |
19,500 | - | 19,500 | - | ||||||||||||
Noninterest income |
13,681 | 12,925 | 756 | 5.85 | % | |||||||||||
Noninterest expense |
(47,163 | ) | (48,276 | ) | 1,113 | 2.31 | % | |||||||||
Income taxes |
(25,593 | ) | (20,446 | ) | (5,147) | -25.17 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net earnings |
$ | 63,893 | $ | 50,056 | $ | 13,837 | 27.64 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per common share: |
||||||||||||||||
Basic |
$ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Diluted |
$ | 0.47 | $ | 0.37 | $ | 0.10 | ||||||||||
Return on average assets |
1.79 | % | 1.42 | % | 0.37% | |||||||||||
Return on average shareholders’ equity |
12.75 | % | 9.92 | % | 2.83% | |||||||||||
Efficiency ratio |
40.26 | % | 40.64 | % | -0.38% | |||||||||||
Noninterest expense to average assets |
1.32 | % | 1.37 | % | -0.05% |
Three Months Ended |
||||||||||||
March 31, 2021 |
December 31, 2020 |
March 31, 2020 |
||||||||||
(Dollars in thousands) |
||||||||||||
Net Income |
$ | 63,893 | $ | 50,056 | $ | 37,980 | ||||||
Add: Amortization of intangible assets |
2,167 | 2,170 | 2,445 | |||||||||
Less: Tax effect of amortization of intangible assets (1) |
(641 | ) | (642 | ) | (723 | ) | ||||||
|
|
|
|
|
|
|||||||
Tangible net income |
$ | 65,419 | $ | 51,584 | $ | 39,702 | ||||||
|
|
|
|
|
|
|||||||
Average stockholders’ equity |
$ | 2,032,676 | $ | 2,007,640 | $ | 2,006,464 | ||||||
Less: Average goodwill |
(663,707 | ) | (663,707 | ) | (663,707 | ) | ||||||
Less: Average intangible assets |
(32,590 | ) | (34,711 | ) | (41,732 | ) | ||||||
|
|
|
|
|
|
|||||||
Average tangible common equity |
$ | 1,336,379 | $ | 1,309,222 | $ | 1,301,025 | ||||||
|
|
|
|
|
|
|||||||
Return on average equity, annualized |
12.75% | 9.92% | 7.61% | |||||||||
Return on average tangible common equity, annualized |
19.85% | 15.67% | 12.27% |
(1) | Tax effected at respective statutory rates. |
Three Months Ended March 31, | ||||||||||||||||||||||||
2021 |
2020 | |||||||||||||||||||||||
Average Balance |
Interest |
Yield/ Rate |
Average Balance |
Interest |
Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS |
||||||||||||||||||||||||
Investment securities (1) |
||||||||||||||||||||||||
Available-for-sale |
||||||||||||||||||||||||
Taxable |
$ | 2,523,609 | $ | 8,968 | 1.47% | $ | 1,659,394 | $ | 9,825 | 2.37% | ||||||||||||||
Tax-advantaged |
30,158 | 191 | 3.02% | 38,086 | 224 | 3.36% | ||||||||||||||||||
Held-to-maturity |
||||||||||||||||||||||||
Taxable |
580,478 | 2,811 | 1.95% | 469,394 | 2,698 | 2.30% | ||||||||||||||||||
Tax-advantaged |
199,348 | 1,129 | 2.74% | 189,522 | 1,300 | 3.32% | ||||||||||||||||||
Investment in FHLB stock |
17,688 | 217 | 4.98% | 17,688 | 332 | 7.55% | ||||||||||||||||||
Interest-earning deposits with other institutions |
1,664,193 | 413 | 0.10% | 261,041 | 613 | 0.94% | ||||||||||||||||||
Loans (2) |
8,270,282 | 91,795 | 4.50% | 7,482,805 | 92,117 | 4.95% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest-earning assets |
13,285,756 | 105,524 | 3.24% | 10,117,930 | 107,109 | 4.27% | ||||||||||||||||||
Total noninterest-earning assets |
1,220,899 | 1,257,870 | ||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total assets |
$ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
INTEREST-BEARING LIABILITIES |
||||||||||||||||||||||||
Savings deposits (3) |
$ | 4,026,248 | 1,198 | 0.12% | $ | 3,056,743 | 3,111 | 0.41% | ||||||||||||||||
Time deposits |
408,034 | 614 | 0.61% | 445,431 | 1,013 | 0.91% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest-bearing deposits |
4,434,282 | 1,812 | 0.17% | 3,502,174 | 4,124 | 0.47% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements |
590,170 | 244 | 0.17% | 504,585 | 679 | 0.54% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing liabilities |
5,024,452 | 2,056 | 0.17% | 4,006,759 | 4,803 | 0.48% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Noninterest-bearing deposits |
7,240,494 | 5,247,025 | ||||||||||||||||||||||
Other liabilities |
209,033 | 115,552 | ||||||||||||||||||||||
Stockholders’ equity |
2,032,676 | 2,006,464 | ||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 14,506,655 | $ | 11,375,800 | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net interest income |
$ | 103,468 | $ | 102,306 | ||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Net interest spread—tax equivalent |
3.07% | 3.79% | ||||||||||||||||||||||
Net interest margin |
3.17% | 4.06% | ||||||||||||||||||||||
Net interest margin—tax equivalent |
3.18% | 4.08% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% in effect for the three months ended March 31, 2021 and 2020. The non TE rates were 1.62% and 2.38% for the three months ended March 31, 2021 and 2020, respectively. |
(2) | Includes loan fees of $8.9 million and $548,000 for the three months ended March 31, 2021 and 2020, respectively. Prepayment penalty fees of $1.6 million and $1.5 million are included in interest income for the three months ended March 31, 2021 and 2020, respectively. |
(3) | Includes interest-bearing demand and money market accounts. |
Comparison of Three Months Ended March 31, 2021 Compared to 2020 Increase (Decrease) Due to | ||||||||||||||||
Volume |
Rate |
Rate/ Volume |
Total | |||||||||||||
(Dollars in thousands) |
||||||||||||||||
Interest income: |
||||||||||||||||
Available-for-sale |
||||||||||||||||
Taxable investment securities |
$ |
4,541 |
$ |
(3,674 |
) |
$ |
(1,724 |
) |
$ |
(857 |
) | |||||
Tax-advantaged investment securities |
(46 |
) |
17 |
(4 |
) |
(33 |
) | |||||||||
Held-to-maturity |
||||||||||||||||
Taxable investment securities |
609 |
(404 |
) |
(92 |
) |
113 |
||||||||||
Tax-advantaged investment securities |
65 |
(224 |
) |
(12 |
) |
(171 |
) | |||||||||
Investment in FHLB stock |
- |
(115 |
) |
- |
(115 |
) | ||||||||||
Interest-earning deposits with other institutions |
3,266 |
(543 |
) |
(2,923 |
) |
(200 |
) | |||||||||
Loans |
9,232 |
(8,644 |
) |
(910 |
) |
(322 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest income |
17,667 |
(13,587 |
) |
(5,665 |
) |
(1,585 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense: |
||||||||||||||||
Savings deposits |
972 |
(2,191 |
) |
(694 |
) |
(1,913 |
) | |||||||||
Time deposits |
(63 |
) |
(250 |
) |
(86 |
) |
(399 |
) | ||||||||
FHLB advances, other borrowings, and customer repurchase agreements |
113 |
(469 |
) |
(79 |
) |
(435 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest expense |
1,022 |
(2,910 |
) |
(859 |
) |
(2,747 |
) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
$ |
16,645 |
$ |
(10,677 |
) |
$ |
(4,806 |
) |
$ |
1,162 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Variance |
|||||||||||||||
2021 |
2020 |
$ |
% |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Noninterest income: |
||||||||||||||||
Service charges on deposit accounts |
$ | 3,985 | $ | 4,776 | $ | (791 | ) | -16.56% | ||||||||
Trust and investment services |
2,611 | 2,420 | 191 | 7.89% | ||||||||||||
Bankcard services |
350 | 577 | (227 | ) | -39.34% | |||||||||||
BOLI income |
4,624 | 2,059 | 2,565 | 124.58% | ||||||||||||
Swap fee income |
215 | 373 | (158 | ) | -42.36% | |||||||||||
Gain on OREO, net |
429 | 10 | 419 | 4190.00% | ||||||||||||
Other |
1,467 | 1,425 | 42 | 2.95% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total noninterest income |
$ | 13,681 | $ | 11,640 | $ | 2,041 | 17.53% | |||||||||
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
Variance | |||||||||||||||
2021 |
2020 |
$ |
% |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Noninterest expense: |
||||||||||||||||
Salaries and employee benefits |
$ | 29,706 | $ | 30,877 | $ | (1,171) | -3.79% | |||||||||
Occupancy |
4,107 | 3,803 | 304 | 7.99% | ||||||||||||
Equipment |
756 | 1,034 | (278) | -26.89% | ||||||||||||
Professional services |
2,168 | 2,256 | (88) | -3.90% | ||||||||||||
Computer software expense |
2,844 | 2,816 | 28 | 0.99% | ||||||||||||
Marketing and promotion |
725 | 1,555 | (830) | -53.38% | ||||||||||||
Amortization of intangible assets |
2,167 | 2,445 | (278) | -11.37% | ||||||||||||
Telecommunications expense |
552 | 636 | (84) | -13.21% | ||||||||||||
Regulatory assessments |
1,059 | 148 | 911 | 615.54% | ||||||||||||
Insurance |
453 | 406 | 47 | 11.58% | ||||||||||||
Loan expense |
238 | 257 | (19) | -7.39% | ||||||||||||
OREO expense |
9 | 258 | (249) | -96.51% | ||||||||||||
Directors’ expenses |
379 | 351 | 28 | 7.98% | ||||||||||||
Stationery and supplies |
244 | 285 | (41) | -14.39% | ||||||||||||
Other |
1,756 | 1,514 | 242 | 15.98% | ||||||||||||
Total noninterest expense |
$ | 47,163 | $ | 48,641 | $ | (1,478) | -3.04% | |||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest expense to average assets |
1.32% | 1.72% | ||||||||||||||
Efficiency ratio (1) |
40.26% | 42.69% |
(1) | Noninterest expense divided by net interest income before provision for credit losses plus noninterest income. |
March 31, 2021 | ||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||
Mortgage-backed securities |
$ | 2,175,414 | $ | 38,333 | $ | (22,409 | ) | $ | 2,191,338 | 77.92% | ||||||||||
CMO/REMIC |
592,915 | 4,072 | (6,821 | ) | 590,166 | 20.99% | ||||||||||||||
Municipal bonds |
28,703 | 1,183 | - | 29,886 | 1.06% | |||||||||||||||
Other securities |
958 | - | - | 958 | 0.03% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total available-for-sale |
$ | 2,797,990 | $ | 43,588 | $ | (29,230 | ) | $ | 2,812,348 | 100.00% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securities held-to-maturity: |
||||||||||||||||||||
Government agency/GSE |
$ | 601,142 | $ | 3,860 | $ | (16,289 | ) | $ | 588,713 | 55.30% | ||||||||||
Mortgage-backed securities |
135,137 | 5,348 | (255 | ) | 140,230 | 12.43% | ||||||||||||||
CMO/REMIC |
133,556 | 2,832 | - | 136,388 | 12.29% | |||||||||||||||
Municipal bonds |
217,149 | 5,095 | (2,094 | ) | 220,150 | 19.98% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total held-to-maturity |
$ | 1,086,984 | $ | 17,135 | $ | (18,638 | ) | $ | 1,085,481 | 100.00% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020 | ||||||||||||||||||||
Amortized Cost |
Gross Unrealized Holding Gain |
Gross Unrealized Holding Loss |
Fair Value |
Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||
Mortgage-backed securities |
$ | 1,857,030 | $ | 48,006 | $ | (101 | ) | $ | 1,904,935 | 79.41% | ||||||||||
CMO/REMIC |
457,548 | 5,515 | (249 | ) | 462,814 | 19.29% | ||||||||||||||
Municipal bonds |
28,707 | 1,578 | - | 30,285 | 1.26% | |||||||||||||||
Other securities |
889 | - | - | 889 | 0.04% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total available-for-sale |
$ | 2,344,174 | $ | 55,099 | $ | (350 | ) | $ | 2,398,923 | 100.00% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securities held-to-maturity: |
||||||||||||||||||||
Government agency/GSE |
$ | 98,663 | $ | 5,877 | $ | - | $ | 104,540 | 17.05% | |||||||||||
Mortgage-backed securities |
146,382 | 7,644 | (32 | ) | 153,994 | 25.30% | ||||||||||||||
CMO/REMIC |
145,309 | 5,202 | - | 150,511 | 25.11% | |||||||||||||||
Municipal bonds |
188,272 | 6,980 | (74 | ) | 195,178 | 32.54% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total held-to-maturity |
$ | 578,626 | $ | 25,703 | $ | (106 | ) | $ | 604,223 | 100.00% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total |
||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
|||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||||||
Mortgage-backed securities |
$ | 1,327,126 | $ | (22,409 | ) | $ | - | $ | - | $ | 1,327,126 | $ | (22,409 | ) | ||||||||||
CMO/REMIC |
422,765 | (6,821 | ) | - | - | 422,765 | (6,821 | ) | ||||||||||||||||
Municipal bonds |
- | - | - | - | - | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total available-for-sale |
$ | 1,749,891 | $ | (29,230 | ) | $ | - | $ | - | $ | 1,749,891 | $ | (29,230 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
December 31, 2020 |
||||||||||||||||||||||||
Less Than 12 Months |
12 Months or Longer |
Total |
||||||||||||||||||||||
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
Fair Value |
Gross Unrealized Holding Losses |
|||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||
Investment securities available-for-sale: |
||||||||||||||||||||||||
Mortgage-backed securities |
$ | 72,219 | $ | (101 | ) | $ | - | $ | - | $ | 72,219 | $ | (101 | ) | ||||||||||
CMO/REMIC |
96,974 | (249 | ) | - | - | 96,974 | (249 | ) | ||||||||||||||||
Municipal bonds |
- | - | - | - | - | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total available-for-sale |
$ | 169,193 | $ | (350 | ) | $ | - | $ | - | $ | 169,193 | $ | (350 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 |
December 31, 2020 | |||||||
(Dollars in thousands) | ||||||||
Commercial real estate |
$ | 5,596,781 | $ | 5,501,509 | ||||
Construction |
96,356 | 85,145 | ||||||
SBA |
307,727 | 303,896 | ||||||
SBA - Paycheck Protection Program (PPP) |
897,724 | 882,986 | ||||||
Commercial and industrial |
753,708 | 812,062 | ||||||
Dairy & livestock and agribusiness |
261,088 | 361,146 | ||||||
Municipal lease finance receivables |
42,349 | 45,547 | ||||||
SFR mortgage |
255,400 | 270,511 | ||||||
Consumer and other loans |
81,924 | 86,006 | ||||||
|
|
|
|
|
| |||
Total loans, at amortized cost |
8,293,057 | 8,348,808 | ||||||
Less: Allowance for credit losses |
(71,805 | ) | (93,692 | ) | ||||
|
|
|
|
|
| |||
Total loans and lease finance receivables, net |
$ | 8,221,252 | $ | 8,255,116 | ||||
|
|
|
|
|
|
March 31, 2021 | ||||||||||||||||
Total Loans |
Commercial Real Estate Loans | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Los Angeles County |
$ |
3,549,896 |
42.8% |
$ |
2,232,034 |
39.9% |
||||||||||
Central Valley |
1,344,718 |
16.2% |
1,028,703 |
18.4% |
||||||||||||
Inland Empire |
1,168,494 |
14.1% |
865,648 |
15.5% |
||||||||||||
Orange County |
1,083,075 |
13.1% |
679,585 |
12.1% |
||||||||||||
Central Coast |
492,532 |
5.9% |
366,547 |
6.5% |
||||||||||||
San Diego |
232,277 |
2.8% |
170,091 |
3.0% |
||||||||||||
Other California |
137,582 |
1.7% |
87,463 |
1.6% |
||||||||||||
Out of State |
284,483 |
3.4% |
166,710 |
3.0% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
8,293,057 |
100.0% |
$ |
5,596,781 |
100.0% |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2021 | ||||||||||||||||
Loan Balance |
Percent |
Percent Owner- Occupied (1) |
Average Loan Balance | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial real estate: |
||||||||||||||||
Industrial |
$ | 1,915,437 | 34.2% | 52.4% | $ | 1,434 | ||||||||||
Office |
1,025,167 | 18.3% | 24.2% | 1,635 | ||||||||||||
Retail |
793,485 | 14.2% | 13.0% | 1,714 | ||||||||||||
Multi-family |
605,110 | 10.8% | 2.0% | 1,548 | ||||||||||||
Secured by farmland (2) |
327,363 | 5.8% | 96.6% | 2,154 | ||||||||||||
Medical |
293,909 | 5.3% | 42.6% | 1,729 | ||||||||||||
Other (3) |
636,310 | 11.4% | 57.4% | 1,398 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total commercial real estate |
$ | 5,596,781 | 100.0% | 38.8% | $ | 1,557 | ||||||||||
|
|
|
|
|
|
(1) | Represents percentage of reported owner-occupied at origination in each real estate loan category. |
(2) | The loans secured by farmland included $129.2 million for loans secured by dairy & livestock land and $198.1 million for loans secured by agricultural land at March 31, 2021. |
(3) | Other loans consist of a variety of loan types, none of which exceeds 2.0% of total commercial real estate loans at March 31, 2021. |
March 31, 2021 |
December 31, 2020 | |||||||
(Dollars in thousands) | ||||||||
Nonaccrual loans |
$ | 13,769 | $ | 14,347 | ||||
Loans past due 90 days or more and still accruing interest |
- | - | ||||||
Nonperforming troubled debt restructured loans (TDRs) |
- | - | ||||||
|
|
|
|
|
| |||
Total nonperforming loans |
13,769 | 14,347 | ||||||
OREO, net |
1,575 | 3,392 | ||||||
|
|
|
|
|
| |||
Total nonperforming assets |
$ | 15,344 | $ | 17,739 | ||||
|
|
|
|
|
| |||
Performing TDRs |
$ | 5,813 | $ | 2,159 | ||||
|
|
|
|
|
| |||
Total nonperforming loans and performing TDRs |
$ | 19,582 | $ | 16,506 | ||||
Percentage of nonperforming loans and performing TDRs to total loans, net of deferred fees |
0.24 | % | 0.20 | % | ||||
Percentage of nonperforming assets to total loans, net of deferred fees, and OREO |
0.18 | % | 0.21 | % | ||||
Percentage of nonperforming assets to total assets |
0.10 | % | 0.12 | % |
March 31, 2021 |
December 31, 2020 |
|||||||||||||||
Balance |
Number of Loans |
Balance |
Number of Loans |
|||||||||||||
(Dollars in thousands) |
||||||||||||||||
Performing TDRs: |
||||||||||||||||
Commercial real estate |
$ |
294 |
1 |
$ |
320 |
1 |
||||||||||
Construction |
- |
- |
- |
- |
||||||||||||
SBA |
- |
- |
- |
- |
||||||||||||
Commercial and industrial |
4,482 |
3 |
43 |
1 |
||||||||||||
Dairy & livestock and agribusiness |
- |
- |
- |
- |
||||||||||||
SFR mortgage |
1,037 |
5 |
1,796 |
7 |
||||||||||||
Consumer and other |
- |
- |
- |
- |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total performing TDRs |
$ |
5,813 |
9 |
$ |
2,159 |
9 |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Nonperforming TDRs: |
||||||||||||||||
Commercial real estate |
$ |
- |
- |
$ |
- |
- |
||||||||||
Construction |
- |
- |
- |
- |
||||||||||||
SBA |
- |
- |
- |
- |
||||||||||||
Commercial and industrial |
- |
- |
- |
- |
||||||||||||
Dairy & livestock and agribusiness |
- |
- |
- |
- |
||||||||||||
SFR mortgage |
- |
- |
- |
- |
||||||||||||
Consumer and other |
- |
- |
- |
- |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total nonperforming TDRs |
$ |
- |
- |
$ |
- |
- |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total TDRs |
$ |
5,813 |
9 |
$ |
2,159 |
9 |
||||||||||
|
|
|
|
|
|
|
|
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
June 30, 2020 |
March 31, 2020 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming loans (1): |
||||||||||||||||||||
Commercial real estate |
$ |
7,395 |
$ |
7,563 |
$ |
6,481 |
$ |
2,628 |
$ |
947 |
||||||||||
Construction |
- |
- |
- |
- |
- |
|||||||||||||||
SBA |
2,412 |
2,273 |
1,724 |
1,598 |
2,748 |
|||||||||||||||
Commercial and industrial |
2,967 |
3,129 |
1,822 |
1,222 |
1,703 |
|||||||||||||||
Dairy & livestock and agribusiness |
259 |
785 |
849 |
- |
- |
|||||||||||||||
SFR mortgage |
424 |
430 |
675 |
1,080 |
864 |
|||||||||||||||
Consumer and other loans |
312 |
167 |
224 |
289 |
166 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$ |
13,769 |
$ |
14,347 |
$ |
11,775 |
$ |
6,817 |
$ |
6,428 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
% of Total loans |
0.17% |
0.17% |
0.14% |
0.08% |
0.09% |
|||||||||||||||
Past due 30-89 days: |
||||||||||||||||||||
Commercial real estate |
$ |
178 |
$ |
- |
$ |
- |
$ |
4 |
$ |
210 |
||||||||||
Construction |
- |
- |
- |
- |
- |
|||||||||||||||
SBA |
258 |
1,965 |
66 |
214 |
3,086 |
|||||||||||||||
Commercial and industrial |
952 |
1,101 |
3,627 |
630 |
665 |
|||||||||||||||
Dairy & livestock and agribusiness |
- |
- |
- |
882 |
166 |
|||||||||||||||
SFR mortgage |
266 |
- |
- |
446 |
233 |
|||||||||||||||
Consumer and other loans |
21 |
- |
67 |
413 |
- |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$ |
1,675 |
$ |
3,066 |
$ |
3,760 |
$ |
2,589 |
$ |
4,360 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
% of Total loans |
0.02% |
0.04% |
0.04% |
0.03% |
0.06% |
|||||||||||||||
OREO: |
||||||||||||||||||||
Commercial real estate |
$ |
1,575 |
$ |
1,575 |
$ |
1,575 |
$ |
2,275 |
$ |
2,275 |
||||||||||
SBA |
- |
- |
797 |
797 |
797 |
|||||||||||||||
SFR mortgage |
- |
1,817 |
1,817 |
1,817 |
1,817 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$ |
1,575 |
$ |
3,392 |
$ |
4,189 |
$ |
4,889 |
$ |
4,889 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total nonperforming, past due, and OREO |
$ |
17,019 |
$ |
20,805 |
$ |
19,724 |
$ |
14,295 |
$ |
15,677 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
% of Total loans |
0.21% |
0.25% |
0.23% |
0.17% |
0.21% |
(1) | As of June 30, 2020, nonperforming loans included $25,000 of commercial and industrial loans past due 90 days or more and still accruing interest. |
As of and For the Three Months Ended March 31, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Allowance for credit losses at beginning of period |
$ |
93,692 |
$ |
68,660 |
||||
Impact of adopting ASU 2016-13 |
- |
1,840 |
||||||
Charge-offs: |
||||||||
Commercial real estate |
- |
- |
||||||
Construction |
- |
- |
||||||
SBA |
- |
- |
||||||
Commercial and industrial |
(2,475) |
- |
||||||
Dairy & livestock and agribusiness |
- |
- |
||||||
SFR mortgage |
- |
- |
||||||
Consumer and other loans |
- |
(86) |
||||||
|
|
|
|
|||||
Total charge-offs |
(2,475) |
(86) |
||||||
|
|
|
|
|||||
Recoveries: |
||||||||
Commercial real estate |
- |
- |
||||||
Construction |
3 |
3 |
||||||
SBA |
4 |
- |
||||||
Commercial and industrial |
2 |
2 |
||||||
Dairy & livestock and agribusiness |
- |
- |
||||||
SFR mortgage |
79 |
206 |
||||||
Consumer and other loans |
- |
16 |
||||||
|
|
|
|
|||||
Total recoveries |
88 |
227 |
||||||
|
|
|
|
|||||
Net (charge-offs) recoveries |
(2,387) |
141 |
||||||
(Recapture of) provision for credit losses |
(19,500) |
12,000 |
||||||
|
|
|
|
|||||
Allowance for credit losses at end of period |
$ |
71,805 |
$ |
82,641 |
||||
|
|
|
|
|||||
Summary of reserve for unfunded loan commitments: |
||||||||
Reserve for unfunded loan commitments at beginning of period |
$ |
9,000 |
$ |
8,959 |
||||
Impact of adopting ASU 2016-13 |
- |
41 |
||||||
Provision for unfunded loan commitments |
- |
- |
||||||
|
|
|
|
|||||
Reserve for unfunded loan commitments at end of period |
$ |
9,000 |
$ |
9,000 |
||||
|
|
|
|
|||||
Reserve for unfunded loan commitments to total unfunded loan commitments |
0.48% |
0.56% |
||||||
Amount of total loans at end of period (1) |
$ |
8,293,057 |
$ |
7,466,152 |
||||
Average total loans outstanding (1) |
$ |
8,270,282 |
$ |
7,482,805 |
||||
Net (charge-offs) recoveries to average total loans |
-0.029% |
0.002% |
||||||
Net (charge-offs) recoveries to total loans at end of period |
-0.029% |
0.002% |
||||||
Allowance for credit losses to average total loans |
0.87% |
1.10% |
||||||
Allowance for credit losses to total loans at end of period |
0.87% |
1.11% |
||||||
Net (charge-offs) recoveries to allowance for credit losses |
-3.32% |
0.17% |
||||||
Net (charge-offs) recoveries to (recapature of ) provision for credit losses |
12.24% |
1.18% |
(1) | Net of deferred loan origination fees, costs and discounts (amortized cost). |
March 31, 2021 |
December 31, 2020 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Balance |
Percent |
Balance |
Percent | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
(Dollars in thousands) | ||||||||||||||||
Noninterest-bearing deposits |
$ | 7,577,839 | 62.74% | $ | 7,455,387 | 63.52% | ||||||||||
Interest-bearing deposits |
||||||||||||||||
Investment checking |
567,062 | 4.69% | 517,976 | 4.42% | ||||||||||||
Money market |
2,996,378 | 24.81% | 2,869,348 | 24.45% | ||||||||||||
Savings |
530,046 | 4.39% | 492,096 | 4.19% | ||||||||||||
Time deposits |
407,330 | 3.37% | 401,694 | 3.42% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total deposits |
$ | 12,078,655 | 100.00% | $ | 11,736,501 | 100.00% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Maturity by Period | ||||||||||||||||||||
Total |
Less Than One Year |
One Year Through Three Years |
Four Years Through Five Years |
Over Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Deposits (1) |
$ |
12,078,655 |
$ |
12,041,777 |
$ |
26,966 |
$ |
9,293 |
$ |
619 |
||||||||||
Customer repurchase agreements (1) |
506,346 |
506,346 |
- |
- |
- |
|||||||||||||||
Junior subordinated debentures (1) |
25,774 |
- |
- |
- |
25,774 |
|||||||||||||||
Deferred compensation |
22,482 |
674 |
956 |
622 |
20,230 |
|||||||||||||||
Operating leases |
23,491 |
6,757 |
9,555 |
5,173 |
2,006 |
|||||||||||||||
Affordable housing investment |
1,950 |
1,859 |
55 |
30 |
6 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total |
$ |
12,658,698 |
$ |
12,557,413 |
$ |
37,532 |
$ |
15,118 |
$ |
48,635 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Amounts exclude accrued interest. |
Maturity by Period |
||||||||||||||||||||
Less Than |
One Year |
Four Years |
After |
|||||||||||||||||
One |
to Three |
to Five |
Five |
|||||||||||||||||
Total |
Year |
Years |
Years |
Years |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
Commitment to extend credit: |
||||||||||||||||||||
Commercial real estate |
$ | 329,913 | $ | 56,821 | $ | 110,606 | $ | 136,422 | $ | 26,064 | ||||||||||
Construction |
110,133 | 43,477 | 66,656 | - | - | |||||||||||||||
SBA |
98 | 28 | - | - | 70 | |||||||||||||||
SBA - PPP |
- | - | - | - | - | |||||||||||||||
Commercial and industrial |
1,047,807 | 736,354 | 212,758 | 8,095 | 90,600 | |||||||||||||||
Dairy & livestock and agribusiness (1) |
219,510 | 148,395 | 71,115 | - | - | |||||||||||||||
SFR Mortgage |
3,877 | - | 500 | - | 3,377 | |||||||||||||||
Consumer and other loans |
127,634 | 10,231 | 11,628 | 3,697 | 102,078 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commitment to extend credit |
1,838,972 | 995,306 | 473,263 | 148,214 | 222,189 | |||||||||||||||
Obligations under letters of credit |
50,835 | 46,971 | 3,864 | - | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
$ | 1,889,807 | $ | 1,042,277 | $ | 477,127 | $ | 148,214 | $ | 222,189 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Total commitments to extend credit to agribusiness were $24.5 million at March 31, 2021. |
March 31, 2021 |
December 31, 2020 | ||||||||||||||||||||||||||||||||||
Adequately |
Minimum Required |
Well |
CVB Financial |
Citizens |
CVB Financial |
Citizens | |||||||||||||||||||||||||||||
Capitalized |
Plus Capital |
Capitalized |
Corp. |
Business |
Corp. |
Business | |||||||||||||||||||||||||||||
Capital Ratios |
Ratios |
Conservation Buffer |
Ratios |
Consolidated |
Bank |
Consolidated |
Bank | ||||||||||||||||||||||||||||
Tier 1 leverage capital ratio |
4.00 | % | 4.00 | % | 5.00 | % | 9.83 | % | 9.45 | % | 9.90 | % | 9.58 | % | |||||||||||||||||||||
Common equity Tier 1 capital ratio |
4.50 | % | 7.00 | % | 6.50 | % | 14.87 | % | 14.55 | % | 14.77 | % | 14.57 | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio |
6.00 | % | 8.50 | % | 8.00 | % | 15.15 | % | 14.55 | % | 15.06 | % | 14.57 | % | |||||||||||||||||||||
Total risk-based capital ratio |
8.00 | % | 10.50 | % | 10.00 | % | 16.05 | % | 15.46 | % | 16.24 | % | 15.75 | % |
Three Months Ended March 31, |
||||||||
2021 |
2020 |
|||||||
(Dollars in thousands) |
||||||||
Average cash and cash equivalents |
$ | 1,772,635 | $ | 409,885 | ||||
Percentage of total average assets |
12.22% | 3.60% | ||||||
Net cash provided by operating activities |
$ | 46,938 | $ | 75,527 | ||||
Net cash (used in) provided by investing activities |
(864,874) | 205,990 | ||||||
Net cash provided by financing activities |
385,075 | 238,704 | ||||||
|
|
|
|
|||||
Net (decrease) increase in cash and cash equivalents |
$ | (432,861) | $ | 520,221 | ||||
|
|
|
|
Estimated Net Interest Income Sensitivity (1) | ||||||||||
March 31, 2021 |
December 31, 2020 | |||||||||
24-month Period |
24-month Period | |||||||||
Interest Rate Scenario |
12-month Period |
(Cumulative) |
Interest Rate Scenario |
12-month Period |
(Cumulative) | |||||
+ 200 basis points |
9.99% | 18.97% | + 200 basis points | 11.10% | 19.60% | |||||
- 100 basis points |
-4.64% | -5.79% | - 100 basis points | -1.20% | -2.40% |
(1) | Percentage change from base scenario, but the current low interest rate environment limits the absolute decline in rates as the model does not assume rates go below zero. |
Instantaneous Rate Change |
March 31, 2021 |
December 31, 2020 | ||||
100 bp decrease in interest rates |
-11.1% | -21.0% | ||||
100 bp increase in interest rates |
9.7% | 16.1% | ||||
200 bp increase in interest rates |
18.6% | 28.4% | ||||
300 bp increase in interest rates |
23.4% | 34.4% | ||||
400 bp increase in interest rates |
29.8% | 41.6% |
Exhibit No. |
Description of Exhibits | |
10.1 | Employee Offer Letter, executed March 24, 2021, for Mr. Brian T. Mauntel†(1) | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** | |
32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** | |
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, has been formatted in Inline XBRL. |
* | Filed herewith |
** | Furnished herewith |
† | Indicates a management contract or compensation plan. |
(1) |
Incorporated herein by reference to Exhibit 10.1 to our Form 8-K filed with the SEC on April 13, 2021. |
CVB FINANCIAL CORP. | ||||
(Registrant) | ||||
Date: May 10, 2021 |
| |||
/s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||
Executive Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
Exhibit 31.1
CERTIFICATION
I, David A. Brager, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of CVB Financial Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: May 10, 2021 | By: | /s/ David A. Brager | ||||
David A. Brager | ||||||
Chief Executive Officer |
Exhibit 31.2
CERTIFICATION
I, E. Allen Nicholson, certify that:
1. | I have reviewed this quarterly report on Form 10-Q of CVB Financial Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants Board of Directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: May 10, 2021 | By: | /s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||||
Chief Financial Officer |
Exhibit 32.1
CERTIFICATION
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of CVB Financial Corp. (the Company) on Form 10-Q for the period ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, David A. Brager, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: May 10, 2021 | By: | /s/ David A. Brager | ||||
David A. Brager | ||||||
Chief Executive Officer |
Exhibit 32.2
CERTIFICATION
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of CVB Financial Corp. (the Company) on Form 10-Q for the period ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, E. Allen Nicholson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge that:
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: May 10, 2021 | By: | /s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||||
Chief Financial Officer |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 2,797,990 | $ 2,344,174 |
Fair Value, Held-to-maturity | $ 1,085,481 | $ 604,223 |
Common stock, par value | $ 0 | $ 0 |
Common stock, authorized | 225,000,000 | 225,000,000 |
Common stock, shares issued | 135,919,625 | 135,600,501 |
Common stock, shares outstanding | 135,919,625 | 135,600,501 |
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Cumulative adjustment upon adoption of ASU 2016-13 [ Member] |
Common Stock [Member] |
Common Stock [Member]
Cumulative adjustment upon adoption of ASU 2016-13 [ Member]
|
Retained Earnings [Member] |
Retained Earnings [Member]
Cumulative adjustment upon adoption of ASU 2016-13 [ Member]
|
Accumulated Other Comprehensive Income (Loss) [Member] |
Accumulated Other Comprehensive Income (Loss) [Member]
Cumulative adjustment upon adoption of ASU 2016-13 [ Member]
|
---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2019 | $ 1,994,098 | $ (1,325) | $ 1,298,792 | $ 0 | $ 682,692 | $ (1,325) | $ 12,614 | $ 0 |
Beginning balance, shares at Dec. 31, 2019 | 140,102 | 0 | ||||||
Repurchase of common stock | (92,402) | $ (92,402) | ||||||
Repurchase of common stock, shares | (4,988) | |||||||
Exercise of stock options | 42 | $ 42 | ||||||
Exercise of stock options, shares | 4 | |||||||
Shares issued pursuant to stock-based compensation plan | 1,617 | $ 1,617 | ||||||
Shares issued pursuant to stock-based compensation plan, shares | 393 | |||||||
Cash dividends declared on common stock | (24,416) | (24,416) | ||||||
Net earnings | 37,980 | 37,980 | ||||||
Other comprehensive income (loss) | 25,792 | 25,792 | ||||||
Ending balance at Mar. 31, 2020 | 1,941,386 | $ 1,208,049 | 694,931 | 38,406 | ||||
Ending balance, shares at Mar. 31, 2020 | 135,511 | |||||||
Beginning balance at Dec. 31, 2020 | 2,007,990 | $ 1,211,780 | 760,861 | 35,349 | ||||
Beginning balance, shares at Dec. 31, 2020 | 135,601 | |||||||
Repurchase of common stock | (502) | $ (502) | ||||||
Repurchase of common stock, shares | (22) | |||||||
Exercise of stock options | 891 | $ 891 | ||||||
Exercise of stock options, shares | 40 | |||||||
Shares issued pursuant to stock-based compensation plan | 1,282 | $ 1,282 | ||||||
Shares issued pursuant to stock-based compensation plan, shares | 301 | |||||||
Cash dividends declared on common stock | (24,495) | (24,495) | ||||||
Net earnings | 63,893 | 63,893 | ||||||
Other comprehensive income (loss) | (28,393) | (28,393) | ||||||
Ending balance at Mar. 31, 2021 | $ 2,020,666 | $ 1,213,451 | $ 800,259 | $ 6,956 | ||||
Ending balance, shares at Mar. 31, 2021 | 135,920 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per common share | $ 0.18 | $ 0.18 |
Business |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Business |
The condensed consolidated financial statements include CVB Financial Corp. (referred to herein on an unconsolidated basis as “CVB” and on a consolidated basis and its wholly owned subsidiary: Citizens Business Bank (the “Bank” or “CBB”), after elimination of all intercompany transactions and balances. The Company has one inactive subsidiary, Chino Valley Bancorp. The Company is also the common stockholder of CVB Statutory Trust III. CVB Statutory Trust III was created in January 2006 to issue trust preferred securities in order to raise capital for the Company. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation, this trust does not meet the criteria for consolidation. The Company’s primary operations are related to traditional banking activities. This includes the acceptance of deposits and the lending and investing of money through the operations of the Bank. The Bank also provides trust and investment-related services to customers through its CitizensTrust Division. The Bank’s customers consist primarily of small to
mid-sized businesses and individuals located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. The Bank operates 57 banking centers, one loan production office in Modesto, California and three trust office locations. The Company is head quartered in the city of Ontario, California. |
Basis of Presentation |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results for the full year. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC. A summary of the significant accounting policies consistently applied in the preparation of the accompanying unaudited condensed consolidated financial statements follows. Reclassification |
Summary of Significant Accounting Policies |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Summary of Significant Accounting Policies |
Except as discussed below, our accounting policies are described in Note 3 – Summary of Significant Accounting Policies 10-K for the year ended December 31, 2020 as filed with the SEC (“Form 10-K”). Use of Estimates in the Preparation of Financial Statements |
Investment Securities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities |
The amortized cost and estimated fair value of investment securities are summarized below. The majority of securities held are available-for-sale
The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax.
The adoption of CECL did not have a material impact on the accounting for investment securities, as approximately 94% of the total investment securities portfolio at March 31, 2021 represents securities issued by the U.S. government or U.S. government-sponsored enterprises, with the implied guarantee of payment of principal and interest. The remaining securities are predominately AA- or better general-obligation municipal bonds. The allowance for credit losses for held-to-maturity We adopted ASU 2016-13 on January 1, 2020, on a prospective basis. Under this ASU, once it is determined that a credit loss has occurred, an allowance for credit losses is established on our AFS and HTM securities. Management determined that there were no credit losses for securities in an unrealized loss position as of March 31, 2021 and December 31, 2020. The following table presents the Company’s available-for-sale
At March 31, 2021 and December 31, 2020, investment securities having a carrying value of approximately $1.92 billion and $1.81 billion, respectively, were pledged to secure public deposits, short and long-term borrowings, and for other purposes as required or permitted by law. The amortized cost and fair value of debt securities at March 31, 2021, by contractual maturity, are shown in the table below. Although mortgage-backed and CMO/REMIC securities have weighted average remaining contractual maturities of approximately 19 years, expected maturities will differ from contractual maturities because borrowers may have the right to prepay such obligations without penalty. Mortgage-backed and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.
The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. No |
Loans and Lease Finance Receivables and Allowance for Credit Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Lease Finance Receivables and Allowance for Credit Losses |
The following table provides a summary of total loans and lease finance receivables by type.
As of March 31, 2021, 71.73% of the Company’s total loan portfolio consisted of real estate loans, with commercial real estate loans representing 67.49% of total loans. Substantially all of the Company’s real estate loans and construction loans are secured by real properties located in California. As of March 31, 2021, $327.4 million, or 5.85% of the total commercial real estate loans included loans secured by farmland, compared to $314.4 million, or 5.72%, at December 31, 2020. The loans secured by farmland included $129.2 million for loans secured by dairy & livestock land and $198.1 million for loans secured by agricultural land at March 31, 2021, compared to $132.9 million for loans secured by dairy & livestock land and $181.5 million for loans secured by agricultural land at December 31, 2020. As of March 31, 2021, dairy & livestock and agribusiness loans of $261.1 million were comprised of $229.1 million for dairy & livestock loans and $31.9 million for agribusiness loans, compared to $320.1 million for dairy & livestock loans and $41.0 million for agribusiness loans at December 31, 2020. At March 31, 2021 and December 31, 2020, loans totaling $6.07 billion and $6.07 billion, respectively, were pledged to secure the borrowings and available lines of credit from the FHLB and the Federal Reserve Bank. There were no held-for-sale Credit Quality Indicators We monitor credit quality by evaluating various risk attributes and utilize such information in our evaluation of the appropriateness of the allowance for credit losses. Internal credit risk ratings, within our loan risk rating system, are the credit quality indicators that we most closely monitor. An important element of our approach to credit risk management is our loan risk rating system. The originating officer assigns each loan an initial risk rating, which is reviewed and confirmed or changed, as appropriate, by credit management. Approvals are made based upon the amount of inherent credit risk specific to the transaction and are reviewed for appropriateness by senior line and credit management personnel. Credits are monitored by line and credit management personnel for deterioration or improvement in a borrower’s financial condition, which would impact the ability of the borrower to perform under the contract. Risk ratings are adjusted as necessary. Loans are risk rated into the following categories: Pass, Special Mention, Substandard, Doubtful and Loss. Each of these groups is assessed for the proper amount to be used in determining the adequacy of our allowance for losses. These categories can be described as follows: Pass — These loans, including loans on the Bank’s internal watch list, range from minimal credit risk to lower than average, but still acceptable, credit risk. Watch list loans usually require more than normal management attention. Loans on the watch list may involve borrowers with adverse financial trends, higher debt/equity ratios, or weaker liquidity positions, but not to the degree of being considered a defined weakness or problem loan where risk of loss may be apparent. Special Mention — Loans assigned to this category have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard — Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. Doubtful — Loans classified as doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or the liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss — Loans classified as loss 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, but rather that it is not practical or desirable to defer writing off this asset with insignificant value even though partial recovery may be affected in the future. The following table summarizes loans by type and origination year, according to our internal risk ratings as of the dates presented.
Allowance for Credit Losses Our allowance for credit losses is based upon lifetime loss rate models developed from an estimation framework that uses historical lifetime loss experiences to derive loss rates at a collective pool level. We measure the expected credit losses on a collective (pooled) basis for those loans that share similar risk characteristics. We have three collective loan pools: Commercial Real Estate, Commercial and Industrial, and Consumer. Our ACL amounts are largely driven by portfolio characteristics, including loss history and various risk attributes, and the economic outlook for certain macroeconomic variables. Risk attributes for commercial real estate loans include OLTV, origination year, loan seasoning, and macroeconomic variables that include GDP growth, commercial real estate price index and unemployment rate. Risk attributes for commercial and industrial loans include internal risk ratings, borrower industry sector, loan credit spreads and macroeconomic variables that include unemployment rate and BBB spread. The macroeconomic variables for Consumer include unemployment rate and GDP. The Commercial Real Estate methodology is applied over commercial real estate loans, a portion of construction loans, and a portion of SBA loans (excluding Payment Protection Program loans). The Commercial and Industrial methodology is applied over a substantial portion of the Company’s commercial and industrial loans, all dairy & livestock and agribusiness loans, municipal lease receivables, as well as the remaining portion of SBA loans (excluding Payment Protection Program loans). The Consumer methodology is applied to SFR mortgage loans, consumer loans, as well as the remaining construction loans. In addition to determining the quantitative life of loan loss rate to be applied against the amortized cost basis of the portfolio segments, management reviews current conditions and forecasts to determine whether adjustments are needed to ensure that the life of loan loss rates reflect both the current state of the portfolio, and expectations for macroeconomic changes. Our methodology for assessing the appropriateness of the allowance is reviewed on a regular basis and considers overall risks in the Bank’s loan portfolio. Refer to Note 3 – Summary of Significant Accounting Policies contained herein for a more detailed discussion concerning the allowance for credit losses. Our allowance for credit losses at March 31, 2021 decreased from the prior quarter end by $21.9 million, as a result of a $19.5 million recapture of provision for credit losses and net charge-offs of $2.4 million. The recapture of provision for credit losses was primarily due to the forecasted improvements in macroeconomic variables, with the greatest impact reflected in an $18.9 million decline in the ACL for Commercial Real Estate loans. During the first quarter of 2020, we recorded a provision for credit losses of $12.0 million, due to the initial forecast of a severe economic downturn from the COVID-19 pandemic. The provision in the first quarter of 2020 was followed by an additional $11.5 million provision for credit losses in the second quarter of 2020, as the forecasted economic impact from the pandemic increased in both severity and duration. Based on the magnitude of government economic stimulus and the wide availability of vaccines, our latest economic forecast reflects improvements in key macroeconomic variables, particularly the commercial real estate price index and the unemployment rate. Our economic forecast continues to be a blend of multiple forecasts produced by Moody’s, including Moody’s baseline forecast, as well as upside and downside forecasts. Our forecast at the end of the first quarter of 2021, assumes GDP will increase by 4.0% in 2021 and then grow by 3.2 % in 2022 and 2.8% in 2023. The forecast for the unemployment rate is 6.4% in 2021, 6.3% in 2022 and 5.5% in 2023. At March 31, 2021, the allowance for credit losses of $71.8 million was 0.87% of total loans, compared to 1.12% and 1.11% at December 31, 2020 and March 31, 2020, respectively. Management believes that the ACL was appropriate at March 31, 2021 and December 31, 2020. As there is a high degree of uncertainty around the epidemiological assumptions and impact of government responses to the pandemic that impact our economic forecast, no assurance can be given that economic conditions that adversely affect the Company’s service areas or other circumstances will not be reflected in increased provisions for credit losses in the future. The following tables present the balance and activity related to the allowance for credit losses for held-for-investment
Past Due and Nonperforming Loans We seek to manage asset quality and control credit risk through diversification of the loan portfolio and the application of policies designed to promote sound underwriting and loan monitoring practices. The Bank’s Credit Management Division is in charge of monitoring asset quality, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures across the Bank. Reviews of nonperforming, past due loans and larger credits, designed to identify potential charges to the allowance for credit losses, are conducted on an ongoing basis. These reviews consider such factors as the financial strength of borrowers and any guarantors, the value of the applicable collateral, loan loss experience, estimated credit losses, growth in the loan portfolio, prevailing economic conditions and other factors. Refer to Note 3 – Summary of Significant Accounting Policies 10-K for the year ended December 31, 2020, for additional discussion concerning the Bank’s policy for past due and nonperforming loans. The following table presents the recorded investment in, and the aging of, past due loans (including nonaccrual loans), by type of loans as of the dates presented.
Amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance are presented as of March 31, 2021 and December 31, 2020 by type of loan.
Collateral Dependent Loans A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the recorded investment in collateral-dependent loans by type of loans as of the dates presented.
Reserve for Unfunded Loan Commitments The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit and undisbursed funds on lines of credit. The Company evaluates credit risk associated with the off-balance sheet loan commitments in the same manner as it evaluates credit risk associated with the loan and lease portfolio. There was no provision or recapture of provision for unfunded commitments for the three months ended March 31, 2021 and 2020. As of March 31, 2021 and December 31, 2020, the balance in this reserve was $9.0 million and was included in other liabilities. Troubled Debt Restructurings (“TDRs”) Loans that are reported as TDRs are considered impaired and charge-off amounts are taken on an individual loan basis, as deemed appropriate. The majority of restructured loans are loans for which the terms of repayment have been renegotiated, resulting in a reduction in interest rate or deferral of principal. Refer to Note 3 – Summary of Significant Accounting Policies, 10-K for the year ended December 31, 2020 for a more detailed discussion regarding TDRs. As of March 31, 2021, there were $5.8 million of loans classified as a TDR, all of which were performing. TDRs on accrual status are comprised of loans that were accruing interest at the time of restructuring or have demonstrated repayment performance in compliance with the restructured terms for a sustained period and for which the Company anticipates full repayment of both principal and interest. At March 31, 2021, performing TDRs were comprised of three commercial and industrial loans of $4.5 million, five SFR mortgage loans of $1.0 million, and one commercial real estate loan of $294,000. The majority of TDRs have no specific allowance allocated as any impairment amount is normally charged off at the time the loan is considered uncollectible. We have no The following table provides a summary of the activity related to TDRs for the periods presented.
The following table summarizes loans modified as TDRs for the period presented. Modifications (1)
As of March 31, 2021 and 2020, there were no loans that were modified as a TDR within the previous 12 months that subsequently defaulted during the three months ended March 31, 2021 and 2020, respectively. |
Earnings Per Share Reconciliation |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Reconciliation |
Basic earnings per common share are computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding during each period. The computation of diluted earnings per common share considers the number of shares issuable upon the assumed exercise of outstanding common stock options. Antidilutive common shares are not included in the calculation of diluted earnings per common share. For the three months ended March 31, 2021 and 2020, shares deemed to be antidilutive, and thus excluded from the computation of earnings per common share, were 117,000 and 269,000, respectively. The table below shows earnings per common share and diluted earnings per common share, and reconciles the numerator and denominator of both earnings per common share calculations.
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Fair Value Information |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Information |
Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The valuation methodologies for financial assets and liabilities measured at fair value on a recurring and non-recurring basis are described in Note 19 — Fair Value Information, 10-K for the year ended December 31, 2020. Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of the dates presented.
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We may be required to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value accounting or impairment write-downs of individual assets. For assets measured at fair value on a non-recurring basis that were held on the balance sheet at March 31, 2021 and December 31, 2020, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets that had losses during the period.
Fair Value of Financial Instruments The following disclosure presents estimated fair value of our financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company may realize in a current market exchange as of March 31, 2021 and December 31, 2020, respectively. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2021and December 31, 2020. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented above. |
Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments |
The Bank is exposed to certain risks relating to its ongoing business operations and utilizes interest rate swap agreements (“swaps”) as part of its asset/liability management strategy to help manage its interest rate risk position. As of March 31, 2021, the Bank has entered into 148 interest-rate swap agreements with customers with a notional amount totaling $509.5 million. The Bank then entered into identical offsetting swaps with a counterparty. The swap agreements are not designated as hedging instruments. The purpose of entering into offsetting derivatives not designated as a hedging instrument is to provide the Bank a variable-rate loan receivable and to provide the customer the financial effects of a fixed-rate loan without creating significant volatility in the Bank’s earnings. The structure of the swaps is as follows. The Bank enters into an interest rate swap with its customers in which the Bank pays the customer a variable rate and the customer pays the Bank a fixed rate, therefore allowing customers to convert variable rate loans to fixed rate loans. At the same time, the Bank enters into a swap with the counterparty bank in which the Bank pays the counterparty a fixed rate and the counterparty in return pays the Bank a variable rate. The net effect of the transaction allows the Bank to receive interest on the loan from the customer at a variable rate based on LIBOR plus a spread. The changes in the fair value of the swaps primarily offset each other and therefore should not have a significant impact on the Company’s results of operations, although the Company does incur credit and counterparty risk with respect to performance on the swap agreements by the Bank’s customer and counterparty, respectively. As a result of the Bank exceeding $10 billion in assets, federal regulations required the Bank, beginning in January 2019, to clear most interest rate swaps through a clearing house (“centrally cleared”). These instruments contain language outlining collateral pledging requirements for each counterparty, in which collateral must be posted if market value exceeds certain agreed upon threshold limits. Cash or securities are pledged as collateral. Our interest rate swap derivatives are subject to a master netting arrangement with our counterparties. None of our derivative assets and liabilities are offset in the Company’s condensed consolidated balance sheet. We believe our risk of loss associated with our counterparty borrowers related to interest rate swaps is mitigated as the loans with swaps are underwritten to take into account potential additional exposure, although there can be no assurances in this regard since the performance of our swaps is subject to market and counterparty risk. Balance Sheet Classification of Derivative Financial Instruments As of March 31, 2021 and December 31, 2020, the total notional amount of the Company’s swaps was $509.5 million, and $503.8 million, respectively. The location of the asset and liability, and their respective fair values, are summarized in the tables below.
The Effect of Derivative Financial Instruments on the Condensed Consolidated Statements of Earnings The following table summarizes the effect of derivative financial instruments on the condensed consolidated statements of earnings for the periods presented.
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Other Comprehensive Income |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income |
The table below provides a summary of the components of other comprehensive income (“OCI”) for the periods presented.
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Balance Sheet Offsetting |
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Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Offsetting |
Assets and liabilities relating to certain financial instruments, including, derivatives and securities sold under repurchase agreements (“repurchase agreements”), may be eligible for offset in the condensed consolidated balance sheets as permitted under accounting guidance. As noted above, our interest rate swap derivatives are subject to master netting arrangements. Our interest rate swap derivatives require the Company to pledge investment securities as collateral based on certain risk thresholds. Investment securities that have been pledged by the Company to counterparties continue to be reported in the Company’s condensed consolidated balance sheets unless the Company defaults. We offer a repurchase agreement product to our customers, which include master netting agreements that allow for the netting of collateral positions. This product, known as Citizens Sweep Manager, sells certain of our securities overnight to our customers under an agreement to repurchase them the next day. The repurchase agreements are not offset in the Company’s condensed consolidated balances.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | 11. LEASES The Company’s operating leases, where the Company is a lessee, include real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings. Right-of-use While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements. The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.
The Company’s lease arrangements that have not yet commenced as of March 31, 2021 and the Company’s short-term lease costs and variable lease costs, for the three months ended March 31, 2021 are not material to the consolidated financial statements. The future lease payments required for leases that have initial or remaining non-cancelable lease terms in excess of one year as of March 31, 2021, excluding property taxes and insurance, are as follows:
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | 12. REVENUE RECOGNITION The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope No. 2014-09 “Revenue from Contracts with Customers (Topic 606)”, for the periods indicated.
Refer to Note 3 –
Summary of Significant Accounting Policies Revenue Recognition, 10-K for the year ended December 31, 2020 for a more detailed discussion about noninterest revenue streams that are in-scope of Topic 606. |
Accounting policies (Policies) |
3 Months Ended |
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Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification | Reclassification |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements |
Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortized Cost and Estimated Fair Value of Investment Securities |
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Summary of Interest Income Earned on Investment Securities | The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax.
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Summary of Continuous Unrealized Loss Position of Securities | The following table presents the Company’s available-for-sale
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Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Mortgage-backed and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.
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Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Loans and Lease Finance Receivables, Excluding PCI Loans | The following table provides a summary of total loans and lease finance receivables by type.
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Summary of loans by type and origination year, according to our internal risk ratings |
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Schedule of Balance and Activity Related to Allowance for Loan Losses for Held-for-Investment Loans by Type | The following tables present the balance and activity related to the allowance for credit losses for held-for-investment
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Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Excluding PCI Loans by Class of Loans | The following table presents the recorded investment in, and the aging of, past due loans (including nonaccrual loans), by type of loans as of the dates presented.
Amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance are presented as of March 31, 2021 and December 31, 2020 by type of loan.
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Summary of pledged assets not separately reported on statement of financial position | The following table presents the recorded investment in collateral-dependent loans by type of loans as of the dates presented.
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Summary of Activity Related to Troubled Debt Restructurings | The following table provides a summary of the activity related to TDRs for the periods presented.
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Summary of Loans Modified as Troubled Debt Restructurings | Modifications (1)
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Earnings Per Share Reconciliation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Common Share Reconciliation | The table below shows earnings per common share and diluted earnings per common share, and reconciles the numerator and denominator of both earnings per common share calculations.
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Fair Value Information (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of the dates presented.
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Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets that had losses during the period.
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Estimated Fair Value of Financial Instruments | The following disclosure presents estimated fair value of our financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company may realize in a current market exchange as of March 31, 2021 and December 31, 2020, respectively. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | As of March 31, 2021 and December 31, 2020, the total notional amount of the Company’s swaps was $509.5 million, and $503.8 million, respectively. The location of the asset and liability, and their respective fair values, are summarized in the tables below.
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Effect of Derivative Instruments on Consolidated Statement of Earnings | The following table summarizes the effect of derivative financial instruments on the condensed consolidated statements of earnings for the periods presented.
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Other Comprehensive Income (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Other Comprehensive Income | The table below provides a summary of the components of other comprehensive income (“OCI”) for the periods presented.
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Balance Sheet Offsetting (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Balance Sheet Offsetting |
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of lease costs and supplemental information related to leases | The tables below present the components of lease costs and supplemental information related to leases as of and for the periods presented.
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Future lease payments required for leases that have initial or remaining non-cancelable lease terms | The future lease payments required for leases that have initial or remaining non-cancelable lease terms in excess of one year as of March 31, 2021, excluding property taxes and insurance, are as follows:
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Revenue Recognition (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Non Interest Income, Segregated by Revenue Streams in-Scope and Out-of-Scope of Topic 606 | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope No. 2014-09 “Revenue from Contracts with Customers (Topic 606)”, for the periods indicated.
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Business - Additional Information (Detail) |
Mar. 31, 2021
Location
Loan
Subsidiary
|
---|---|
Schedule Of Description Of Company [Line Items] | |
Number of inactive subsidiaries | Subsidiary | 1 |
Bank operated banking centers | 57 |
Bank operated trust office locations, number | 3 |
Number of loan production office | Loan | 1 |
Investment Securities - Summary of Interest Income Earned on Investment Securities (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2021 |
Mar. 31, 2020 |
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Net Investment Income [Line Items] | ||
Total interest income from available-for-sale securities | $ 9,159 | $ 10,049 |
Total interest income from held-to-maturity securities | 3,940 | 3,998 |
Total investment income | 13,099 | 14,047 |
Investment securities available-for-sale [Member] | ||
Net Investment Income [Line Items] | ||
Taxable | 8,968 | 9,825 |
Tax-advantaged | 191 | 224 |
Total interest income from available-for-sale securities | 9,159 | 10,049 |
Investment securities held-to-maturity [Member] | ||
Net Investment Income [Line Items] | ||
Taxable | 2,811 | 2,698 |
Tax-advantaged | 1,129 | 1,300 |
Total interest income from held-to-maturity securities | $ 3,940 | $ 3,998 |
Investment Securities - Additional Information (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Debt Securities, Available-for-sale [Line Items] | ||
Investment securities pledged as collateral | $ 1,920,000,000 | $ 1,810,000,000 |
Investment in FHLB stock, impairment losses | $ 0 | |
Debt securities weighted average remaining contractual maturity term | 19 years | |
United States [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities issued by U.S. government percentage | 94.00% |
Loans and Lease Finance Receivables and Allowance for Credit Losses - Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Including PCI Loans by Class of Loans (Parenthetical) (Detail) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccruing loans, current | $ 2,100,000 | $ 1,400,000 |
Nonaccrual | 13,769,000 | 14,347,000 |
Nonaccrual loans | 184,000 | |
30-59 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 2,000 | |
60-89 Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | 400,000 | 1,300,000 |
90+ Days Past Due [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual | $ 11,200,000 | $ 11,600,000 |
Loans and Lease Finance Receivables and Allowance for Credit Losses - Summary of Activity Related to Troubled Debt Restructurings (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Performing TDRs [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Beginning balance | $ 2,159 | $ 3,112 |
New modifications | 4,643 | 0 |
Payoffs/payments, net and other | (989) | (299) |
TDRs returned to accrual status | 0 | 0 |
TDRs placed on nonaccrual status | 0 | 0 |
Ending balance | 5,813 | 2,813 |
Nonperforming TDRs [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Beginning balance | 0 | 244 |
New modifications | 0 | 0 |
Charge-offs | 0 | 0 |
Payoffs/payments, net and other | 0 | (244) |
TDRs returned to accrual status | 0 | 0 |
TDRs placed on nonaccrual status | 0 | 0 |
Ending balance | 0 | 0 |
Total TDRs | $ 5,813 | $ 2,813 |
Earnings Per Share Reconciliation - Additional Information (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per common share | 117,000 | 269,000 |
Earnings Per Share Reconciliation - Schedule of Earnings Per Common Share Reconciliation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings per common share: | ||
Net earnings | $ 63,893 | $ 37,980 |
Less: Net earnings allocated to restricted stock | 309 | 83 |
Net earnings allocated to common shareholders | $ 63,584 | $ 37,897 |
Weighted average shares outstanding | 135,175 | 139,107 |
Basic earnings per common share | $ 0.47 | $ 0.27 |
Diluted earnings per common share: | ||
Net income allocated to common shareholders | $ 63,584 | $ 37,897 |
Weighted average shares outstanding | 135,175 | 139,107 |
Incremental shares from assumed exercise of outstanding options | 253 | 209 |
Diluted weighted average shares outstanding | 135,428 | 139,316 |
Diluted earnings per common share | $ 0.47 | $ 0.27 |
Derivative Financial Instruments - Additional Information (Detail) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021
USD ($)
Agreement
|
Dec. 31, 2020
USD ($)
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative assets and liabilities offset in balance sheet | $ 0 | |
Total notional amount of the Company's swaps | $ 509,500,000 | $ 503,800,000 |
Description of Conditions Relating to Clearing of Interest rate Swaps | As a result of the Bank exceeding $10 billion in assets, federal regulations required the Bank, beginning in January 2019, to clear most interest rate swaps through a clearing house (“centrally cleared”). These instruments contain language outlining collateral pledging requirements for each counterparty, in which collateral must be posted if market value exceeds certain agreed upon threshold limits. Cash or securities are pledged as collateral. | |
Interest-rate Swap Agreements with Customers [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of interest-rate swap agreements | Agreement | 148 | |
Total notional amount of the Company's swaps | $ 509,500,000 |
Derivative Financial Instruments - Fair Value of Derivative Instruments (Detail) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Thousands |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 14,692 | $ 30,181 |
Other Assets [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 14,692 | 30,181 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 14,692 | 30,181 |
Other Liabilities [Member] | Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 14,692 | $ 30,181 |
Derivative Financial Instruments - Effect of Derivative Instruments on Consolidated Statement of Earnings (Detail) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Derivatives, Fair Value [Line Items] | ||
Amount of Gain Recognized in Income on Derivative Instruments | $ 215 | $ 373 |
Interest Rate Swaps [Member] | Other Income [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Amount of Gain Recognized in Income on Derivative Instruments | $ 215 | $ 373 |
Other Comprehensive Income - Summary of Components of OCI (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Equity [Abstract] | ||
Net change in fair value recorded in accumulated OCI, Before-tax | $ (40,391) | $ 36,619 |
Net change in fair value recorded in accumulated OCI, Tax effect | 11,941 | (10,826) |
Net change in fair value recorded in accumulated OCI, After-tax | (28,450) | 25,793 |
Amortization of unrealized losses on securities transferred from available-for-sale to held-to-maturity, Before-tax | 81 | (1) |
Amortization of unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity, Tax effect | (24) | 0 |
Amortization of unrealized losses on securities transferred from available-for-sale to held-to-maturity, After-tax | 57 | (1) |
Net change, Before-tax | (40,310) | 36,618 |
Net change, Tax effect | 11,917 | (10,826) |
Net change, After-tax | $ (28,393) | $ 25,792 |
Leases - Components of lease costs and supplemental information related to leases (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Lease Assets and Liabilities | |||
ROU assets | $ 20,340 | $ 19,112 | |
Total lease liabilities | 22,237 | $ 21,164 | |
Lease Cost | |||
Operating lease expense | 1,662 | $ 1,623 | |
Sublease income | 0 | 0 | |
Total lease expense | 1,662 | 1,623 | |
Other Information | |||
Operating cash outflows from operating leases, net | $ 1,819 | $ 1,935 | |
Lease Term and Discount Rate | |||
Weighted average remaining lease term (years) | 4 years 4 months 24 days | 4 years 1 month 28 days | |
Weighted average discount rate | 2.63% | 2.80% |
Leases - Future lease payments required for leases that have initial or remaining non-cancelable lease terms (Detail) $ in Thousands |
Mar. 31, 2021
USD ($)
|
---|---|
2021 (excluding the three months ended March 31, 2021) | $ 5,142 |
2022 | 6,031 |
2023 | 4,279 |
2024 | 3,107 |
2025 | 2,433 |
Thereafter | 2,499 |
Total future lease payments | 23,491 |
Less: Imputed interest | (1,254) |
Present value of lease liabilities | $ 22,237 |
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