CONNECTONE BANCORP, INC., 10-Q filed on 11/5/2021
Quarterly Report
v3.21.2
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2021
Nov. 05, 2021
Document Information [Line Items]    
Document Type 10-Q  
Entity Central Index Key 0000712771  
Document Period End Date Sep. 30, 2021  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 000-11486  
Entity Registrant Name CONNECTONE BANCORP, INC.  
Entity Incorporation, State or Country Code NJ  
Entity Tax Identification Number 52-1273725  
Entity Address, Address Line One 301 Sylvan Avenue  
Entity Address, City or Town Englewood Cliffs  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07632  
City Area Code 201  
Local Phone Number 816-8900  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Information, Former Legal or Registered Name N/A  
Entity Common Stock, Shares Outstanding   39,602,199
Common Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Common stock  
Trading Symbol CNOB  
Name of Exchange on which Security is Registered NASDAQ  
Depositary Shares [Member]    
Document Information [Line Items]    
Title of 12(b) Security Depositary Shares (each representing a 1/40th interest in a share of 5.25% Series A Non-Cumulative, perpetual preferred stock)  
Trading Symbol CNOBP  
Name of Exchange on which Security is Registered NASDAQ  
v3.21.2
CONSOLIDATED STATEMENTS OF CONDITION - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
ASSETS    
Cash and due from banks $ 49,626 $ 63,637
Interest-bearing deposits with banks 363,569 240,119
Cash and cash equivalents 413,195 303,756
Investment securities 462,884 487,955
Equity securities 13,700 13,387
Loans held-for-sale 5,596 4,710
Loans receivable 6,576,439 6,236,307
Less: Allowance for credit losses - loans 77,986 79,226
Net loans receivable 6,498,453 6,157,081
Investment in restricted stock, at cost 18,106 25,099
Bank premises and equipment, net 29,635 30,108
Accrued interest receivable 33,610 35,317
Bank owned life insurance 194,487 165,960
Right of use operating lease assets 11,002 16,159
Goodwill 208,372 208,372
Core deposit intangibles 9,480 10,977
Other assets 50,994 88,458
Total assets 7,949,514 7,547,339
Deposits:    
Noninterest-bearing 1,500,754 1,339,108
Interest-bearing 4,897,584 4,620,116
Total deposits 6,398,338 5,959,224
Borrowings 253,225 425,954
Subordinated debentures, net 152,875 202,648
Operating lease liabilities 12,437 18,026
Other liabilities 34,206 26,177
Total liabilities 6,851,081 6,632,029
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred Stock, no par value; $1,000 per share liquidation preference; Authorized 5,000,000 shares; issued 115,000 shares as of September 30, 2021 and -0- shares as of December 31, 2020; outstanding 115,000 shares as of September 30, 2021 and -0- shares as of December 31, 2020 110,927
Common stock, no par value: Authorized 100,000,000 shares; issued 42,550,530 shares as of September 30, 2021 and 42,444,031 shares as of December 31, 2020; outstanding 39,602,199 shares as of September 30, 2021 and 39,785,398 as of December 31, 2020 586,946 586,946
Additional paid-in capital 25,851 23,887
Retained earnings 413,996 331,951
Treasury stock, at cost 2,948,331 common shares as of September 30, 2021 and 2,658,633 as of December 31, 2020 (38,314) (30,271)
Accumulated other comprehensive (loss) income (973) 2,797
Total stockholders' equity 1,098,433 915,310
Total liabilities and stockholders' equity $ 7,949,514 $ 7,547,339
v3.21.2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - $ / shares
Sep. 30, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Preferred stock, liquidation preference par share $ 1,000 $ 1,000
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred shares, shares issued 115,000 0
Preferred shares, shares outstanding 115,000 0
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 42,550,530 42,444,031
Common stock, shares outstanding 39,602,199 39,785,398
Treasury Stock, Shares 2,948,331 2,658,633
v3.21.2
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Interest income        
Interest and fees on loans $ 75,092 $ 74,755 $ 216,655 $ 223,488
Interest and dividends on investment securities:        
Taxable 1,065 1,305 3,148 5,083
Tax-exempt 511 688 1,885 2,148
Dividends 245 426 764 1,268
Interest on federal funds sold and other short-term investments 113 47 246 625
Total interest income 77,026 77,221 222,698 232,612
Interest expense        
Deposits 5,478 11,947 19,487 42,756
Borrowings 3,303 4,725 10,794 13,236
Total interest expense 8,781 16,672 30,281 55,992
Net interest income 68,245 60,549 192,417 176,620
Provision for (reversal of) credit losses 1,100 5,000 (6,315) 36,000
Net interest income after provision for credit losses 67,145 55,549 198,732 140,620
Noninterest income        
Deposit, loan and other income 1,702 1,278 5,092 5,777
Income on bank owned life insurance 1,278 1,598 3,527 3,693
Net gains on sale of loans held-for-sale 1,114 614 2,668 1,244
Gain on sale of branches 674
Net (losses) gains on equity securities (78) (7) (242) 215
Net gains on sales/redemption of investment securities 195 29
Total noninterest income 4,016 3,483 11,914 10,958
Noninterest expenses        
Salaries and employee benefits 16,807 15,144 47,790 44,266
Occupancy and equipment 2,656 3,566 8,876 10,193
FDIC insurance 525 1,105 2,040 3,054
Professional and consulting 2,217 1,926 6,290 5,173
Marketing and advertising 345 214 864 944
Data processing 1,541 1,470 4,680 4,529
Merger and restructuring expenses 14,640
Amortization of core deposit intangibles 483 627 1,498 1,931
Increase in value of acquisition price 2,333
Other components of net periodic pension expense (67) (30) (201) (89)
Other expenses 3,676 2,456 9,090 7,625
Total noninterest expenses 28,183 26,478 80,927 94,599
Income before income tax expense 42,978 32,554 129,719 56,979
Income tax expense 10,881 7,768 32,404 11,331
Net income $ 32,097 $ 24,786 $ 97,315 $ 45,648
Earnings per common share:        
Basic $ 0.81 $ 0.62 $ 2.45 $ 1.15
Diluted $ 0.80 $ 0.62 $ 2.43 $ 1.15
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 32,097 $ 24,786 $ 97,315 $ 45,648
Unrealized gains and losses:        
Unrealized holding (losses) gains on available-for-sale securities arising during the period (3,228) 703 (8,397) 5,532
Tax effect 796 (160) 2,160 (1,459)
Net of tax (2,432) 543 (6,237) 4,073
Reclassification adjustment for realized gains included in net income (195) (29)
Tax effect 48 6
Net of tax (147) (23)
Unrealized gains (losses) on cash flow hedges 1,890 (82) 1,872 (3,397)
Tax effect (533) 42 (529) 955
Net of tax 1,357 (40) 1,343 (2,442)
Reclassification adjustment for realized losses on cash flow hedges included in net income 328 631 1,543 942
Tax effect (90) (196) (434) (265)
Net of tax 238 435 1,109 677
Unrealized pension plan gains and losses:        
Reclassification adjustment for pension plan amortization included in net income 75 75 225 226
Tax effect (21) (21) (63) (63)
Net of tax 54 54 162 163
Total other comprehensive (loss) income (783) 992 (3,770) 2,448
Total comprehensive income $ 31,314 $ 25,778 $ 93,545 $ 48,096
v3.21.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($)
$ in Thousands
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive (Loss) Income [Member]
Total
Balance at Dec. 31, 2019 $ 468,571 $ 21,344 $ 271,782 $ (29,360) $ (1,147) $ 731,190
Net income       45,648     45,648
Other comprehensive income (loss), net of tax           2,448 2,448
Cash dividends declared on common stock       (7,537)     (7,537)
Exercise of stock options     163       163
Restricted stock grants            
Stock grants            
Net shares issued in satisfaction of performance units earned            
Share redemption for tax withholdings on performance units and restricted stock units earned     (639)       (639)
Repurchase of treasury stock         (911)   (911)
Stock issued in acquisition of Bancorp of New Jersey   118,375         118,375
Stock-based compensation     1,999       1,999
Balance at Sep. 30, 2020 586,946 22,867 309,893 (30,271) 1,301 890,736
Balance at Jun. 30, 2020 586,946 22,069 288,688 (30,271) 309 867,741
Net income       24,786     24,786
Other comprehensive income (loss), net of tax           992 992
Cash dividends declared on common stock       (3,581)     (3,581)
Restricted stock grants            
Stock-based compensation     798       798
Balance at Sep. 30, 2020 586,946 22,867 309,893 (30,271) 1,301 890,736
Balance at Dec. 31, 2020 586,946 23,887 331,951 (30,271) 2,797 915,310
Cumulative effect of change in accounting principle (see note 1b. "Authoritative Accounting Guidance Presentation"), net of tax       (2,925)     (2,925)
Balance on January 1 at Dec. 31, 2020   586,946 23,887 329,026 (30,271) 2,797 912,385
Net income       97,315     97,315
Other comprehensive income (loss), net of tax           (3,770) (3,770)
Cash dividends declared on common stock       (12,345)     (12,345)
Exercise of stock options     45       45
Restricted stock grants            
Stock grants            
Net shares issued in satisfaction of restricted stock units earned            
Net shares issued in satisfaction of performance units earned            
Share redemption for tax withholdings on performance units and restricted stock units earned     (1,283)       (1,283)
Repurchase of treasury stock         (8,043)   (8,043)
Proceeds from preferred stock issuance, net of costs 110,927           110,927
Stock-based compensation     3,202       3,202
Balance at Sep. 30, 2021 110,927 586,946 25,851 413,996 (38,314) (973) 1,098,433
Balance at Jun. 30, 2021 586,946 24,606 386,280 (32,682) (190) 964,960
Net income       32,097     32,097
Other comprehensive income (loss), net of tax           (783) (783)
Cash dividends declared on common stock       (4,381)     (4,381)
Restricted stock grants            
Stock grants            
Repurchase of treasury stock         (5,632)   (5,632)
Proceeds from preferred stock issuance, net of costs 110,927           110,927
Stock-based compensation     1,245       1,245
Balance at Sep. 30, 2021 $ 110,927 $ 586,946 $ 25,851 $ 413,996 $ (38,314) $ (973) $ 1,098,433
v3.21.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Cash dividends declared on common stock (in Dollars per share) $ 0.11 $ 0.09 $ 0.31 $ 0.18
Exercise of stock options, shares     5,449 25,413
Restricted stock and performance units grants, shares 1,082 1,018 46,900 68,531
Stock grants, shares 4,535   4,981 1,340
Restricted stock units, shares     14,711 16,541
Net performance units issued     34,458 22,402
Repurchase of treasury stock 196,069   289,698 54,693
Preferred stock issued 115,000   115,000  
Bancorp of New Jersey [Member]        
Stock issued in acquisition       4,602,450
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities    
Net income $ 97,315 $ 45,648
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization of premises and equipment 2,832 3,102
(Reversal of) provision for credit losses (6,315) 36,000
Amortization of intangibles 1,498 1,931
Net accretion of loans (4,130) (5,225)
Accretion on bank premises (61) (68)
Accretion on deposits (1,762) (3,568)
Accretion on borrowings, net (43) (139)
Stock-based compensation 3,202 1,999
Gains on sales/redemptions of securities available-for-sale, net (195) (29)
Losses (gains) on equity securities, net 242 (215)
Gain on sale of branches (674)
Net losses on disposition of fixed assets 65
Gains on sales of loans held-for-sale, net (2,668) (1,244)
Loans originated for resale (43,676) (34,328)
Proceeds from sale of loans held-for sale 57,674 51,367
Gain on sale of other real estate owned (18)
Increase in cash surrender value of bank owned life insurance (3,527) (3,693)
Amortization of premiums and accretion of discounts on securities available-for-sale, net 4,677 4,000
Amortization of subordinated debentures issuance costs 227 247
Decrease (increase) in accrued interest receivable 1,707 (10,467)
Net change in operating leases (734) 2,071
Decrease in other assets 43,319 18,117
Increase (decrease) in other liabilities 5,689 (5,750)
Net cash provided by operating activities 154,644 99,756
Cash flows from investing activities    
Purchases (203,534) (222,062)
Sales 19,624
Maturities, calls and principal repayments 215,531 175,729
Purchases of equity securities (555) (2,000)
Net redemptions of restricted investment in bank stocks 6,993 1,748
Net increase in loans (345,098) (348,861)
Purchases of bank owned life insurance (25,000) (25,000)
Purchases of premises and equipment (2,473) (894)
Payments on loans held-for-sale 32 204
Proceeds from life insurance death benefits 978
Proceeds from sale of branches 1,087
Proceeds from sale of other real estate owned 321 992
Cash and cash equivalents acquired in acquisition, net 87,391
Net cash used in investing activities (352,696) (312,151)
Cash flows from financing activities    
Net increase in deposits 440,876 249,404
(Repayment of) increase in subordinated debentures (50,000) 73,420
Advances of borrowings 100,000 1,476,489
Repayments of borrowings (272,686) (1,520,160)
Repurchase of common stock to treasury (8,043) (911)
Net proceeds from the issuance of preferred stock 110,927
Cash dividends paid on common stock (12,345) (10,735)
Proceeds from exercise of stock options 45 163
Share redemption for tax withholdings on performance units and restricted stock units earned (1,283) (639)
Net cash provided by financing activities 307,491 267,031
Net change in cash and cash equivalents 109,439 54,636
Cash and cash equivalents at beginning of period 303,756 201,483
Cash and cash equivalents at end of period 413,195 256,119
Cash payments for:    
Interest paid on deposits and borrowings 32,664 59,231
Income taxes 35,809 19,117
Investing:    
Transfer of loans from held-for-investment to other real estate owned 304
Transfer of loans from held-for-investment to held-for-sale 14,211 10,995
Transfer of loans from held-for-sale to held-for-investment 1,963 19,738
Business combinations:    
Fair value of assets acquired 949,282
Fair value of liabilities assumed $ 852,729
v3.21.2
Nature of Operations, Principles of Consolidation and Risk and Uncertainties
 9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations, Principles of Consolidation and Risk and Uncertainties

Note 1a. Nature of Operations, Principles of Consolidation and Risk and Uncertainties

Nature of Operations

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a New Jersey investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey financial technology company).

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-five other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021, or for any other interim period. The Company’s 2020 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements.

Basis of Presentation

The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.

Use of Estimates

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

Risks and Uncertainties

As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Actions taken around the world to help mitigate the spread of COVID-19 include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. Although economic activity has accelerated in 2021, and the United States continues to implement a COVID-19 vaccination program, COVID-19, it’s variants and actions taken to mitigate the spread of it have had and may in the future have an adverse impact on the economies and financial markets of many countries and parts of the United States, including the New Jersey/New York metropolitan area in which the Company primarily operates. Although the Company has been able to continue operations while taking steps to ensure the safety of employees and customers, COVID-19 could impact the Company’s operations in the future. Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. Although state and local governments have lifted many restrictions on conducting business, it is possible that restrictions could be reimposed. It is therefore unknown how long COVID-19 may continue to impact the economy and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses on loans, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes.

v3.21.2
Authoritative Accounting Guidance
 9 Months Ended
Sep. 30, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Authoritative Accounting Guidance

Note 1b. Authoritative Accounting Guidance

Adoption of New Accounting Standards in 2021

Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity (“HTM”). It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as available-for-sale (“AFS”), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell.

The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchased credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired loans as of December 31, 2020 were considered purchased credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousands):

Change in Consolidated

Change to Retained Earnings

Statement of Condition

Tax Effect

from Adoption of CECL

Allowance for credit losses (“ACL”) (loans)

$

1,350

$

406

$

944

Adjustment related to purchased credit-impaired loan marks(1)

5,207

-

-

Total ACL – loans

6,557

406

944

ACL (unfunded credit commitments)

2,833

852

1,981

 

Total impact of CECL adoption

$

9,390

$

1,258

$

2,925

 

 

(1)

This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.

Loans designated as purchased credit impaired loans (“PCI”) and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as purchased with credit deterioration loans (“PCD”). In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the ACL for loans of $5.2 million, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021 over the remaining estimated life of the loans. Also, in accordance with the CECL Standard, the Company did not reassess whether modifications to individual acquired financial assets were troubled debt restructurings (“TDRs”) as of the date of adoption.

ACL for loans: The ACL for loans is a valuation account that is deducted from the amortized cost basis of portfolio loans to present the net amount expected to be collected on portfolio loans over their contractual life. Loans are charged-off against the allowance when we believe the uncollectibility of a loan balance has been confirmed, and the expected recoveries do not exceed the aggregate of amounts previously charged-off or expected to be charged-off.

11

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 1b. Authoritative Accounting Guidance – (continued)

The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company currently utilizes a one-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of the loan. The measurement of expected credit loss under the CECL methodology is applicable to financial assets measured at amortized cost, including loans and held to maturity investments and it also applies to certain off-balance sheet credit exposures.

The ACL for loans is measured on a collective (pool) basis when similar risk characteristics exist. Generally, for all other loan types, the estimated expected credit loss is also calculated at the loan level and pool assignments are only utilized for aggregating the allowance estimates of similar loan types for financial statement disclosure purposes. Loan segments have unique risk characteristics with respect to credit quality and are as follows:

●

The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring are not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability.

●

Payment on commercial mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.

●

Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to the ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.

●

The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.

●

The Company considers loan classes and loan segments to be one and the same.

Individually Analyzed Loans: The Company will evaluate individual instruments for expected credit losses when those instruments do not share similar risk characteristics with instruments evaluated using a collective (pooled) basis. Loans will transition from defined segments for individual analysis when credit characteristics, or risk traits, change in a material manner. A loan is considered for individual analysis when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining individual analysis include payment status and the probability of collecting scheduled principal and interest payments when due. Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are considered TDRs and are classified as individually analyzed. Loans considered to be TDRs can be categorized as nonaccrual or performing. All PCD loans will be considered as individually analyzed. Generally, individually analyzed loans consist of nonaccrual loans and performing TDRs. Of this group of loans, loans of $250,000 and over are individually evaluated, while loans with balances less than $250,000 are collectively evaluated, and, accordingly, are not separately identified for analysis or disclosures. Instruments will not be included in both collective and individual analysis. Individual analysis will establish a specific reserve for instruments in scope.

For collateral dependent loans, when it is determined that a foreclosure is probable, the ACL will be determined on a loan level basis using the fair value of the collateral as of the reporting date, less estimated disposition costs (“net fair value”), which will ensure that the credit loss is not delayed until the time at which the actual foreclosure takes place. In the event that this fair value is less than the amortized cost basis of these specific loans, we will recognize the difference between the net fair value at the reporting date and the amortized cost basis in the ACL.  If the fair value of the collateral has increased as of the ACL evaluation date, the increase in the fair value of the collateral is reflected through a reduction in the ACL. ACL adjustments for estimated disposition costs are not appropriate when the repayment of a collateral-dependent loan is expected from the operation of the collateral.  If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as the allowance for credit losses. The effective interest rate used to discount expected cash flows is adjusted to incorporate expected prepayments, if applicable.

12

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 1b. Authoritative Accounting Guidance – (continued)

For charge-offs and recoveries we will generally charge-off a loan balance after an analysis is completed which indicates that the collectability of the full principal is in doubt. Charge-offs are charged against the allowance in the period in which the loans are deemed to be uncollectible.  Any expected future recoveries of amounts which were previously charged-off or expected to be charged-off will be included in the ACL, as the recoveries represent a component of the net amount expected to be collected. Expected recoveries in the ACL shall not exceed amounts previously charged-off or expected to be charged-off.

Investment Securities: Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in comprehensive income, net of tax. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are generally amortized using the level-yield method without estimating prepayments, except for mortgage-backed securities, where prepayment rates are estimated. Premiums on callable investment securities are amortized to their earliest call date. Gains and losses on sales of securities are recorded on the trade date and determined using the specific identification method.

ACL - on investment securities classified as available-for-sale: For available-for-sale investment securities which are in an unrealized loss position, the Company will first assess whether we intend to sell, or it is more likely than not, that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria is met, the amortized cost basis of the security is written down to fair value through income. For available-for-sale investment securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from an actual or estimated credit loss event or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, changes to the rating of the security, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss is likely, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, an ACL is recorded for the estimated credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when we believe the uncollectibility of an available-for-sale security has been confirmed or if either of the criteria regarding intent or requirement to sell is met.

ASU No. 2021-03, “Intangibles – Goodwill and Other (Topic 350).” ASU 2021-03 requires an entity to identify and evaluate goodwill impairment triggering events when they occur to determine whether it is more likely than not that the fair value of a reporting unit (or entity, if the entity has elected the accounting alternative for amortizing goodwill and chosen that option) is less than its carrying amount. If an entity determines that it is more likely than not that the goodwill is impaired. It must test goodwill for impairment using the triggering event date as the measurement date. An entity is required to disclose the amount assigned to goodwill in total and by major business combination, or by reorganization event resulting in fresh-start reporting. Also, the entity must disclose the weighted average amortization period in total and the amortization period by major business combination, or by reorganization event resulting in fresh-start reporting. ASU 2021-03 was effective for the Company on January 1, 2021 and did not have a significant impact on our consolidated financial statements.

ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 was effective for the Company as of January 1, 2021 and did not have a significant impact on our consolidated financial statements.

v3.21.2
Earnings per Common Share
 9 Months Ended
Sep. 30, 2021
Earnings per common share:  
Earnings per Common Share

Note 2. Earnings per Common Share

Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”).  The restricted stock awards granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities.  The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities.

Earnings per common share have been computed based on the following:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands, except for per share data)

2021

2020

2021

2020

Net income

$

32,097

$

24,786

$

97,315

$

45,648

Earnings allocated to participating securities

(76

)

(133

)

(250

)

(218

)

Income attributable to common stock

$

32,021

$

24,653

$

97,065

$

45,430

 

Weighted average common shares outstanding, including participating securities

39,741

39,656

39,770

39,624

Weighted average participating securities

(95

)

(119

)

(102

)

(125

)

Weighted average common shares outstanding

39,646

39,537

39,668

39,499

Incremental shares from assumed conversions of options, performance units and non-participating restricted shares

223

117

220

111

Weighted average common and equivalent shares outstanding

39,869

39,654

39,888

39,610

 

Earnings per common share:

Basic

$

0.81

$

0.62

$

2.45

$

1.15

Diluted

0.80

0.62

2.43

1.15

There were no antidilutive share equivalents as of September 30, 2021 and September 30, 2020.

v3.21.2
Investment Securities
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

Note 3. Investment Securities

The Company’s investment securities are all classified as available-for-sale as of September 30, 2021 and December 31, 2020. Investment securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of September 30, 2021 and December 31, 2020. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 6 of the Notes to Consolidated Financial Statements for a further discussion.

The following tables present information related to the Company’s portfolio of securities available-for-sale as of September 30, 2021 and December 31, 2020.

Allowance

for

Gross

Gross

Investment

Amortized

Unrealized

Unrealized

Fair

Credit

Cost

Gains

Losses

Value

Losses

September 30, 2021

(dollars in thousands)

Securities available-for-sale

Federal agency obligations

$

50,016

$

1,032

$

-

$

51,048

$

-

Residential mortgage pass-through securities

255,488

2,640

(2,073

)

256,055

-

Commercial mortgage pass-through securities

10,859

135

(468

)

10,526

-

Obligations of U.S. states and political subdivisions

129,632

1,693

(1,051

)

130,274

-

Corporate bonds and notes

10,965

124

-

11,089

-

Asset-backed securities

2,718

6

(2

)

2,722

-

Certificates of deposit

149

1

-

 

150

-

Other securities

1,020

-

-

1,020

-

Total securities available-for-sale​​

$

460,847

$

5,631

$

(3,594

)

$

462,884

$

-

 

December 31, 2020

Securities available-for-sale

Federal agency obligations

$

37,015

$

1,508

$

(65

)

$

38,458

$

N/A

Residential mortgage pass-through securities

266,114

4,811

(41

)

270,884

N/A

Commercial mortgage pass-through securities

6,906

203

(187

)

6,922

N/A

Obligations of U.S. states and political subdivisions

138,539

4,269

-

142,808

N/A

Corporate bonds and notes

24,925

222

(52

)

25,095

N/A

Asset-backed securities

3,521

-

(41

)

3,480

N/A

Certificates of deposit

149

2

-

151

N/A

Other securities

 

157

 

-

 

-

 

157

N/A

Total securities available-for-sale​​

$

477,326

$

11,015

$

(386

)

$

487,955

$

N/A

15

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 3. Investment Securities – (continued)

Investment securities having a carrying value of approximately $88.1 million and $107.6 million as of September 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits, borrowings, repurchase agreements, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of September 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

The following table presents information for investments in securities available-for-sale as of September 30, 2021, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately.

September 30, 2021

Amortized

Fair

Cost

Value

(dollars in thousands)

Securities available-for-sale:

Due in one year or less

$

4,439

$

4,451

Due after one year through five years

9,911

10,024

Due after five years through ten years

7,777

8,029

Due after ten years

171,353

172,779

Residential mortgage pass-through securities

255,488

256,055

Commercial mortgage pass-through securities

10,859

10,526

Other securities

1,020

1,020

Total securities available-for-sale

$

460,847

$

462,884

Gross gains and losses from the sales and redemptions of securities for periods presented were as follows:

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

 

(dollars in thousands)

 

 

 

2021

 

2020

 

 

2021

 

2020

 

Proceeds

 

$

-

 

 

$

-

 

 

$

5,185

 

 

$

19,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross gains on sales/redemption of securities

 

 

-

 

 

 

-

 

 

 

195

 

 

 

29

 

Gross losses on sales/redemptions of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net gains on sales/redemptions of securities

 

 

-

 

 

 

-

 

 

 

195

 

 

 

29

 

Less: tax provision on net gains

 

 

-

 

 

-

 

 

(48

)

 

 

(6

)

Net gains on sales/redemptions of securities, after tax

 

$

-

 

 

$

-

 

 

$

147

 

 

$

23

 

16

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 3. Investment Securities – (continued)

Impairment Analysis of Available-for-Sale Debt Securities

The following tables indicate gross unrealized losses for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of September 30, 2021 and December 31, 2020.

September 30, 2021

Total

Less than 12 Months

12 Months or Longer

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(dollars in thousands)

Investment Securities

 

Available-for-Sale:

 

Residential mortgage pass-through securities

$

171,592

$

(2,073

)

$

171,592

$

(2,073

)

$

-

$

-

Commercial mortgage pass-through securities

6,349

(468

)

2,658

(67

)

3,691

(401

)

Obligations of U.S. states and political subdivisions

71,938

(1,051

)

71,938

(1,051

)

-

-

Asset-backed securities

1,389

(2

)

840

-

549

(2

)

Total temporarily impaired securities

$

251,268

$

(3,594

)

$

247,028

$

(3,191

)

$

4,240

$

(403

)

December 31, 2020

Total

Less than 12 Months

12 Months or Longer

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(dollars in thousands)

Investment Securities

 

Available-for-Sale:

 

Federal agency obligations

$

8,978

$

(65

)

$

8,975

$

(65

)

$

3

$

-

 

Residential mortgage pass-through securities

20,895

(41

)

20,886

(41

)

9

-

Commercial mortgage pass-through securities

3,954

(187

)

3,954

(187

)

-

-

 

Corporate bonds and notes

3,928

(52

)

3,928

(52

)

-

-

Asset-backed securities

3,083

(41

)

622

-

2,461

(41

)

Total Temporarily Impaired Securities

$

40,838

$

(386

)

$

38,365

$

(345

)

$

2,473

$

(41

)

17

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 3. Investment Securities – (continued)

On January 1, 2021, the Company adopted ASU 2016-13 and implemented the CECL methodology for allowance for credit losses on its investment securities available-for-sale. The new CECL methodology replaces the other-than-temporary impairment model that previously existed. The Company did not have a CECL day 1 impact attributable to its investment securities portfolio and did not have an allowance for credit losses as of September 30, 2021. The Company has elected to exclude accrued interest from the amortized cost of its investment securities available-for-sale. Accrued interest receivable for investment securities available for sale as of September 30, 2021 and December 31, 2020, totaled $1.4 million and $1.7 million, respectively.

The Company evaluates securities in an unrealized loss position for impairment related to credit losses on at least a quarterly basis. Securities in unrealized loss positions are first assessed as to whether we intend to sell, or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through current earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses on asset backed securities and state and municipal securities have not been recognized into income because the issuers are of high credit quality, we do not intend to sell and it is likely that we will not be required to sell the securities prior to their anticipated recovery.  The decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. No allowance for credit losses for available-for-sale securities was recorded as of September 30, 2021.

Federal agency obligations, residential mortgage-backed pass-through securities and commercial mortgage-backed pass-through securities are issued by U.S. Government agencies and U.S. Government sponsored enterprises. Although a government guarantee exists on these investments, these entities are not legally backed by the full faith and credit of the federal government, and the current support they receive is subject to a cap as part of the agreement entered into in 2008. Nonetheless, at this time we do not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, we concluded that a zero-allowance approach for these investment securities is appropriate.

v3.21.2
Derivatives
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 4. Derivatives

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps were entered into on April 13, 2017, January 1, 2020 and March 3, 2020 each with a respective notional amount of $25.0 million and were designated as a cash flow hedge of a Federal Home Loan Bank advance We are required to pay fixed-rates of interest ranging from 0.88% to 1.93% and receive variable rates of interest that reset quarterly based on three-month LIBOR. Expiration dates for the swaps range from January 2022 to April 2022. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps.

In addition, during the three months ended September 30, 2021, the company entered into 5 forward starting pay fixed-rate interest rate swaps, with a total notional amount of $200 million, which are also designated as a cash flow hedge of a future Federal Home Loan Bank advance. We are required to pay fixed rates of interest ranging from 0.631% to 0.955% and receive variable rates of interest that reset quarterly based on the daily compounding secured overnight financing rate (“SOFR”). The forward starting swaps have commencing payment dates ranging from October 2021 to April 2022, with expiration dates ranging from March 2026 to January 2028.

18

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 4. Derivatives – (continued)

Interest expense recorded on these swap transactions totaled approximately $0.3 million and $1.5 million during the three and nine months ended September 30, 2021, respectively, compared to $0.6 million and $0.9 million during the three and nine months ended September 30, 2020, respectively, and is reported as a component of interest expense on FHLB Advances.

Cash Flow Hedge

The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods:

Three Months Ended September 30, 2021

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

1,890

$

328

$

-

Three Months Ended September 30, 2020

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

(82

)

$

631

$

-

19

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 4. Derivatives – (continued)

Nine Months Ended September 30, 2021

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

1,872

$

1,543

$

-

Nine Months Ended September 30, 2020

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

(3,397

)

$

942

$

-

The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2021 and December 31, 2020:

September 30, 2021

December 31, 2020

Notional

Notional

Amount

Fair Value

Amount

Fair Value

(dollars in thousands)

Interest rate swaps related to FHLB advances included in liabilities

$

275,000

$

1,295

$

175,000

$

(2,119

)

v3.21.2
Loans and the Allowance for Credit Losses
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Loans and the Allowance for Credit Losses

Note 5. Loans and the Allowance for Credit Losses

Loans Receivable - As of and prior to December 31, 2020, loans receivable were accounted for under the incurred loss model. As of January 1, 2021, portfolio loans are accounted for under the expected loss model. Accordingly, some of the information presented is not comparable from period to period. See Note 1b. “Authoritative Accounting Guidance - Adoption of New Accounting Standards” for additional information. The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of September 30, 2021 and December 31, 2020:

September 30,

December 31,

2021

2020

(dollars in thousands)

Commercial (1)

$

1,325,488

$

1,521,967

Commercial real estate

4,436,626

3,783,550

Commercial construction

552,896

617,747

Residential real estate

270,793

322,564

Consumer

2,093

 

1,853

Gross loans

6,587,896

6,247,681

Net deferred loan fees

(11,457

)

 

(11,374

)

Total loans receivable

$

6,576,439

$

6,236,307

 

(1)

Included in commercial loans as of September 30, 2021 and December 31, 2020 were PPP loans of $177.8 million and $397.5 million, respectively.

As of each of September 30, 2021 and December 31, 2020, loan balances of approximately $2.6 billion, were pledged to secure borrowings from the FHLB of New York.

Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale portfolio as of September 30, 2021 and December 31, 2020:

September 30,

December 31,

2021

2020

(dollars in thousands)

Commercial real estate

$

4,876

$

1,990

Residential real estate

720

 

2,720

Total carrying amount

$

5,596

$

4,710

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans with an ACL as of September 30, 2021 and nonaccrual loans without an ACL as of September 30, 2021:

September 30, 2021

Nonaccrual

loans with

ACL

Nonaccrual

loans without

ACL

Total

Nonaccrual

loans

(dollars in thousands)

Commercial

$

27,993

$

2,486

$

30,479

Commercial real estate

11,668

16,910

28,578

Commercial construction

-

3,336

3,336

Residential real estate

-

 

3,566

3,566

Consumer

-

 

-

-

Total

$

39,661

$

26,298

$

65,959

21

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands):

December 31,

2020

Commercial

$

33,019

Commercial real estate

10,111

Commercial construction

14,015

Residential real estate

 

4,551

Consumer

 

-

Total nonaccrual loans

$

61,696

Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment.

Credit Quality Indicators - The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified as “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified as “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified as special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected.

22

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of September 30, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

 

Term loans amortized cost basis by origination year

 

 

Revolving

 

 

Total

Gross

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

Loans

Loans

Commercial

Pass

$

362,839

$

78,941

$

73,202

$

60,881

$

98,178

$

118,326

$

465,494

$

1,257,861

Special mention

-

-

225

904

5,653

4,198

13,787

24,767

Substandard

176

-

1,619

12,779

4,101

21,147

3,038

42,860

Doubtful

-

-

-

-

-

-

-

-

Total Commercial

$

363,015

$

78,941

$

75,046

$

74,564

$

107,932

$

143,671

$

482,319

$

1,325,488

 

Commercial Real Estate

Pass

$

1,178,056

$

587,923

$

446,299

$

479,741

$

514,973

$

944,052

$

171,963

$

4,323,007

Special mention

-

-

3,364

1,875

4,335

26,550

6,633

42,757

Substandard

1,942

4,500

657

18,861

-

36,112

8,790

70,862

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Real Estate

$

1,179,998

$

592,423

$

450,320

$

500,477

$

519,308

$

1,006,714

$

187,386

$

4,436,626

 

Commercial Construction

Pass

$

1,405

$

7,370

$

37,492

$

2,600

$

2,247

$

490

$

486,404

$

538,008

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

14,888

14,888

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Construction

$

1,405

$

7,370

$

37,492

$

2,600

$

2,247

$

490

$

501,292

$

552,896

 

Residential Real Estate

Pass

$

18,387

$

30,704

$

25,544

$

29,503

$

30,577

$

77,427

$

46,227

$

258,369

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

199

-

8,492

3,733

12,424

Doubtful

-

-

-

-

-

-

-

-

Total Residential Real Estate

$

18,387

$

30,704

$

25,544

$

29,702

$

30,577

$

85,919

$

49,960

$

270,793

 

Consumer

Pass

$

-

$

96

$

50

$

26

$

35

$

1,761

$

125

$

2,093

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

Total Consumer

$

-

$

96

$

50

$

26

$

35

$

1,761

$

125

$

2,093

 

Total

Pass

$

1,560,687

$

705,034

$

582,587

$

572,751

$

646,010

$

1,142,056

$

1,170,213

$

6,379,338

Special mention

-

-

3,589

2,779

9,988

30,748

20,420

67,524

Substandard

2,118

4,500

2,276

31,839

4,101

65,751

30,449

141,034

Doubtful

-

-

-

-

-

-

-

-

Grand Total

$

1,562,805

$

709,534

$

588,452

$

607,369

$

660,099

$

1,238,555

$

1,221,082

$

6,587,896

23

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020:

December 31, 2020

Pass

Special Mention

Substandard

Doubtful

Total

(dollars in thousands)

Commercial

$

1,447,097

$

30,725

$

43,930

$

215

$

1,521,967

Commercial real estate

3,700,498

49,143

33,909

-

3,783,550

Commercial construction

587,266

-

30,481

-

617,747

Residential real estate

311,174

-

11,390

-

322,564

Consumer

1,853

-

-

-

1,853

Gross loans

$

6,047,888

$

79,868

$

119,710

$

215

$

6,247,681

Collateral Dependent Loans: Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. The evaluation is determined on an individual basis using the fair value of the collateral as of the reporting date.

The following table presents collateral dependent loans that were individually evaluated for impairment as of September 30, 2021:

September 30, 2021

Real

Estate

Other

Total

(dollars in thousands)

Commercial

$

6,778

$

26,175

$

32,953

Commercial real estate

56,622

-

56,622

Commercial construction

12,582

-

12,582

Residential real estate

10,258

-

10,258

Consumer

-

-

-

Total

$

86,240

$

26,175

$

112,415

24

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

Impaired loans - Impaired loans disclosures presented below as of December 31, 2020 and as of and for the three and nine months ended September 30, 2020 represent requirements prior to the adoption of CECL on January 1, 2021.

The following table provides an analysis of the impaired loans by class as of the year ended December 31, 2020:

December 31, 2020

Unpaid

Recorded

Principal

Related

Investment

Balance

Allowance

No related allowance recorded

(dollars in thousands)

Commercial

$

11,325

$

11,835

Commercial real estate

13,105

13,449

Commercial construction

24,284

24,907

Residential real estate

5,378

5,723

Consumer

-

-

Total (no related allowance)

$

54,092

$

55,914

 

With an allowance recorded

 

Commercial

$

23,736

$

69,122

$

12,985

Commercial real estate

2,722

2,722

1,329

Total (with allowance)

$

26,458

$

71,844

$

14,314

 

Total

Commercial

$

35,061

$

80,957

$

12,985

Commercial real estate

15,827

16,171

1,329

Commercial construction

24,284

24,907

-

Residential real estate

5,378

5,723

-

Consumer

-

-

-

Total

$

80,550

$

127,758

$

14,314

25

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by class as of and for the three months and nine months ended September 30, 2020 (dollars in thousands):

Three Months Ended

September 30,

Nine Months Ended

September 30,

2020

2020

Average

Recorded

Investment

Interest

Income

Recognized

Average

Recorded

Investment

Interest

Income

Recognized

Impaired loans (no allowance)

 

Commercial

$

12,266

$

50

$

12,100

$

150

Commercial real estate

12,460

74

12,415

229

Commercial construction

21,297

91

21,149

262

Residential real estate

4,011

16

3,761

16

 

Total

$

50,034

$

231

$

49,425

$

657

 

Impaired loans (allowance):

 

Commercial

$

23,024

$

-

$

23,195

$

-

Commercial real estate

2,722

-

2,722

-

Commercial construction

2,934

-

2,934

-

Residential real estate

261

5

262

5

 

Total

$

28,941

$

5

$

29,113

$

5

 

Total impaired loans:

Commercial

$

35,290

$

50

$

35,295

$

150

Commercial real estate

15,182

74

15,137

229

Commercial construction

24,231

91

24,083

262

Residential real estate

4,272

21

4,023

21

 

Total

$

78,975

$

236

$

78,538

$

662

26

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due as of September 30, 2021 and December 31, 2020 (dollars in thousands):

September 30, 2021

30-59 Days Past Due

60-89 Days Past Due

90 Days or Greater Past Due and Still Accruing

Nonaccrual

Total Past Due and Nonaccrual

Current

Gross Loans

Commercial

$

391

$

417

$

4,463

$

30,479

$

35,750

$

1,289,738

$

1,325,488

Commercial real Estate

-

1,694

1,860

28,578

32,132

4,404,494

4,436,626

Commercial construction

-

-

-

3,336

3,336

549,560

552,896

Residential real Estate

338

-

8,360

3,566

12,264

258,529

270,793

Consumer

-

-

-

-

-

2,093

2,093

Total

$

729

$

2,111

$

14,683

$

65,959

$

83,482

$

6,504,414

$

6,587,896

90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

December 31, 2020

30-59 Days

Past Due

60-89 Days

Past Due

90 Days or

Greater Past

Due and Still

Accruing

Nonaccrual

Total Past

Due and

Nonaccrual

Current

Total Loans

Receivable

Commercial

$

1,445

$

558

$

3,182

$

33,019

$

38,204

$

1,483,763

$

1,521,967

Commercial real estate

13,258

4,140

5,555

10,111

33,064

3,750,486

3,783,550

Commercial construction

2,472

-

-

14,015

16,487

601,260

617,747

Residential real estate

1,367

241

4,084

4,551

10,243

312,321

322,564

Consumer

 

2

 

-

 

-

 

-

 

2

 

1,851

 

1,853

Total

$

18,544

$

4,939

$

12,821

$

61,696

$

98,000

$

6,149,681

$

6,247,681

90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

27

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the ACL that are allocated to each loan portfolio segment:

September 30, 2021

Commercial

Commercial

Residential

Commercial

real estate

construction

real estate

Consumer

Total

(dollars in thousands)

ACL

Individually evaluated for impairment

$

14,630

$

1,199

$

-

$

66

$

-

$

15,895

Collectively evaluated for impairment

9,487

40,222

3,702

3,302

8

56,721

Acquired with deteriorated credit quality individually analyzed

3,219

1,921

-

230

-

5,370

Total

$

27,336

$

43,342

$

3,702

$

3,598

$

8

$

77,986

 

Gross loans

Individually evaluated for impairment

$

33,970

$

50,642

$

12,582

$

6,017

$

-

$

103,211

Collectively evaluated for impairment

1,286,337

4,380,004

540,314

260,536

2,093

6,469,284

Acquired with deteriorated credit quality individually analyzed

5,181

5,980

-

4,240

-

15,401

Total

$

1,325,488

$

4,436,626

$

552,896

$

270,793

$

2,093

$

6,587,896

December 31, 2020

Commercial

Commercial

Residential

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Allowance for loan losses

Individually evaluated for impairment

$

12,985

$

1,329

$

-

$

-

$

-

$

-

$

14,314

Collectively evaluated for impairment

 

15,412

 

33,373

 

7,787

 

1,928

 

4

568

 

59,072

Acquired portfolio

 

46

 

4,628

 

407

 

759

 

-

-

 

5,840

Acquired with deteriorated credit quality

-

 

-

 

-

 

-

 

-

-

 

-

Total

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

 

Gross loans

Individually evaluated for impairment

$

35,061

$

15,827

$

24,284

$

5,378

$

-

 

$

80,550

Collectively evaluated for impairment

 

1,414,626

 

2,959,978

 

574,118

 

241,925

 

1,627

 

 

5,192,274

Acquired portfolio

 

68,402

 

802,190

 

19,345

 

71,177

 

226

 

 

961,340

Acquired with deteriorated credit quality

 

3,878

 

5,555

 

-

 

4,084

 

-

 

 

13,517

Total

$

1,521,967

$

3,783,550

$

617,747

$

322,564

$

1,853

 

$

6,247,681

28

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

Activity in the Company’s ACL for loans for the three and nine months ended September 30, 2021 is summarized in the table below. Day 1 effect of CECL presented in the nine-months table below reflect adjustments recorded through retained earnings to adopt the CECL standard and the increase to the ACL for loans associated with nonaccretable purchase accounting marks on loans that were classified as PCI as of December 31, 2020.

Three Months Ended September 30, 2021

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of June 30, 2021

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

-

$

78,684

 

 

 

Charge-offs

(254

)

(1,473

)

-

-

-

-

(1,727

)

 

Recoveries

1

85

-

20

7

-

113

 

 

(Reversal of) provision for credit losses - loans

2,022

915

(1,225

)

(788

)

(8

)

-

916

Balance as of September 30, 2021

$

27,336

$

43,342

$

3,702

$

3,598

$

8

$

-

$

77,986

 

Nine Months Ended September 30, 2021

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of December 31, 2020

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

 

 

 

Day 1 effect of CECL

(4,225

)

9,605

(961

)

2,697

9

(568

)

6,557

 

Balance as of January 1, 2021 as adjusted for changes in accounting principle

24,218

48,935

7,233

5,384

13

-

85,783

 

 

Charge-offs

(304

)

(1,628

)

-

(7

)

-

-

(1,939

)

 

Recoveries

74

85

-

20

9

-

188

 

Provision for (reversal of) credit losses - loans

3,348

(4,050

)

(3,531

)

(1,799

)

(14

)

-

(6,046

)

Balance as of September 30, 2021

$

27,336

$

43,342

$

3,702

$

3,598

$

8

$

-

$

77,986

 

On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the ACL. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our ACL for loans of $6.6 million, which did not impact our consolidated income statement.

29

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

Three Months Ended September 30, 2020

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of June 30, 2020

$

9,345

$

22,655

$

8,026

$

1,690

$

5

$

27,003

$

68,724

 

 

Charge-offs

(48

)

-

-

(209

)

-

-

(257

)

 

Recoveries

-

800

-

-

-

-

800

 

 

Provision for (reversal of) credit losses - loans

14,861

16,623

(1,044

)

1,019

(2

)

(26,457

)

5,000

 

 

Balance as of September 30, 2020

$

24,158

$

40,078

$

6,982

$

2,500

$

3

$

546

$

74,267

 

 

 

Nine Months Ended September 30, 2020

 

 

 

 

 

 

Commercial

 

Commercial

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

real estate

 

construction

 

real estate

 

Consumer

 

Unallocated

 

Total

 

 

(dollars in thousands)

Balance as of December 31, 2019

 

$

8,349

 

 

$

20,853

 

 

$

7,304

 

$

1,685

 

 

$

3

 

 

$

99

 

$

38,293

 

 

Charge-offs

 

 

(552

)

 

 

-

 

 

-

 

 

(278

)

 

 

(3

)

 

 

-

 

 

(833

)

 

Recoveries

 

 

2

 

 

 

802

 

 

 

-

 

 

-

 

 

 

3

 

 

 

-

 

 

807

 

 

Provision for (reversal of) credit losses - loans

 

 

16,359

 

 

18,423

 

 

 

(322

)

 

1,093

 

 

-

 

 

447

 

 

36,000

 

 

Balance as of September 30, 2020

 

$

24,158

 

 

$

40,078

 

 

$

6,982

 

$

2,500

 

 

$

3

 

 

$

546

 

$

74,267

 

30

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

Troubled Debt Restructurings

Loans are considered to have been modified in a troubled debt restructuring (“TDR”) when, except as discussed below, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, maturity extensions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a TDR remains on nonaccrual status for a period of nine months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status.

As of September 30, 2021, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in a TDR.

As of September 30, 2021, TDRs totaled $79.7 million, of which $38.5 million were on nonaccrual status and $41.2 million were classified as accruing and were performing under their restructured terms. As of December 31, 2020, TDRs totaled $49.4 million, of which $25.7 million were on nonaccrual status and $23.7 million were classified as accruing and were performing under their restructured terms. The Company has allocated $10.5 million and $4.4 million of specific allowance related to TDRs as of September 30, 2021 and September 30, 2020, respectively.

The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2021:

Pre-Modification Outstanding

Post-Modification Outstanding

Number of Loans

Recorded Investment

Recorded Investment

Troubled debt restructurings:

(dollars in thousands)

Commercial

4

$

1,276

$

1,276

Commercial real estate

10

35,595

35,595

Commercial construction

1

1,641

1,641

Residential real estate

3

1,758

1,758

Total

18

$

40,270

$

40,270

The loans modified as TDRs during the nine months ended September 30, 2021 included maturity extensions and interest rate reductions.

There were no loans modified as TDRs during the nine months ended September 30, 2020. There were no TDRs for which there was a payment default within twelve months following the modification during the three months ended and nine months ended September 30, 2021 and September 30, 2020.

In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., three to nine months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Additionally, the statement allows for the Company to extend deferrals for an additional term at the option of the Company. Provisions of the CARES Act largely mirrored the provisions of the interagency statement, providing that modified loans would not be considered TDR’s if they were performing at year-end 2019, and the other conditions set forth in the interagency statement were met. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented or at year-end 2019. As of September 30, 2021, the Bank had 10 deferred loans totaling $10.3 million, compared to 113 deferred loans totaling $207.0 million as of December 31, 2020 that are not considered TDRs.

31

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table sets forth the composition of these loans by loan segments as of September 30, 2021:

Unpaid

Number of Loans

Principal Balance

(dollars in thousands)

Commercial

4

$

309

Commercial real estate

6

9,988

Total

10

$

10,297

As of September 30, 2021, there were no deferred loans that were delinquent or on nonaccrual status. As of September 30, 2021, $5.5 million of deferred loans were risk rated “special mention” or worse. The Company evaluates its deferred loans after the initial deferral period and will either return the deferred loan to its original loan terms or the loan will be reassessed at that time to determine if a further deferment should be granted and if a downgrade in risk rating is appropriate.

ACL for Unfunded Commitments

The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the ACL for unfunded commitments for the three and nine months ended September 30, 2021 (dollars in thousands):

Three Months Ended

September 30, 2021

 

Balance as of beginning of period

$

2,380

Provision for (reversal of) credit losses - unfunded commitments

184

Balance as of end of period

$

2,564

Nine Months Ended

September 30, 2021

 

Balance as of beginning of period

$

-

Day 1 Effect of CECL

2,833

Provision for (reversal of) credit losses - unfunded commitments

(269)

Balance as of end of period

$

2,564

Components of (Reversal of) Provision for Credit Losses

The following table summarizes the provision for (reversal of) provision for credit losses for the three and nine months ended September 30, 2021 (dollars in thousands):

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

 

Provision for (reversal of) credit losses - loans

$

916

$

(6,046)

Provision for (reversal of) credit losses - unfunded commitments

184

(269)

Provision for (reversal of) credit losses

$

1,100

$

(6,315)

v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Fair Value of Financial Instruments

Note 6. Fair Value Measurements and Fair Value of Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The following sets forth the hierarchy of valuation techniques used to determine fair value:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2: Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity).

An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020:

Securities Available-for-Sale and Equity Securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

Derivatives: The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services.

33

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of September 30, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

September 30, 2021

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

Total Fair Value

 

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant

Unobservable

Inputs

(Level 3)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

Federal agency obligations

 

$

51,048

 

$

-

 

$

51,048

 

$

-

Residential mortgage pass-through securities

 

 

256,055

 

 

-

 

 

256,055

 

 

-

Commercial mortgage pass-through securities

 

 

10,526

 

 

-

 

 

10,526

 

 

-

Obligations of U.S. states and political subdivision

 

 

130,274

 

 

-

 

 

121,638

 

 

8,636

Corporate bonds and notes

 

 

11,089

 

 

-

 

 

11,089

 

 

-

Asset-backed securities

 

 

2,722

 

 

-

 

 

2,722

 

 

-

Certificates of deposit

 

 

150

 

 

-

 

 

150

 

 

-

Other securities

 

 

1,020

 

 

1,020

 

 

-

 

 

-

Total available-for-sale

 

$

462,884

 

$

1,020

 

$

453,228

 

$

8,636

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

 

13,700

 

 

11,709

 

 

1,991

 

 

-

Derivatives

 

1,296

 

-

 

1,296

 

-

Total assets

$

477,880

$

12,729

 

$

456,515

$

8,636

34

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

December 31, 2020

Fair Value Measurements at Reporting Date Using

Total Fair Value

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant

Unobservable

Inputs

(Level 3)

(dollars in thousands)

Recurring fair value measurements:

Assets

Investment securities:

Available-for-sale:

Federal agency obligations

$

38,458

$

-

$

38,458

$

-

Residential mortgage pass-through securities

270,884

-

270,884

-

Commercial mortgage pass-through securities

6,922

-

6,922

-

Obligations of U.S. states and political subdivision

142,808

-

133,964

8,844

Corporate bonds and notes

25,095

-

25,095

-

Asset-backed securities

3,480

-

3,480

-

Certificates of deposit

151

-

151

-

Other securities

 

157

 

157

 

-

 

-

Total available-for-sale

487,955

$

157

$

478,954

$

8,844

 

Equity securities

13,387

13,387

-

-

Total assets

$

501,342

$

13,544

$

478,954

$

8,844

 

Liabilities

Derivatives

$

(2,119)

$

-

$

(2,119)

$

-

Total liabilities

$

(2,119)

$

-

$

(2,119)

$

-

There were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2021 and during the year ended December 31, 2020.

Assets Measured at Fair Value on a Nonrecurring Basis

The Company may be required periodically to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020.

Loans Held-for-Sale: Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or parts of these loans directly from the purchasing financial institutions (Level 2).

Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Fair value of these loans is determined based on the terms of the loan, such as interest rate, maturity date, reset term, as well as sales of similar assets (Level 3).

35

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Collateral Dependent Loans: The Company may record adjustments to the carrying value of loans based on fair value measurements, either as specific reserves or as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and are also based on Level 3 inputs.

For assets measured at fair value on a nonrecurring basis, the fair value measurements as of September 30, 2021 and December 31, 2020 are as follows:

Fair Value Measurements at Reporting Date Using

Quoted

Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets measured at fair value on a nonrecurring

September 30,

Assets

Inputs

Inputs

basis:

2021

(Level 1)

(Level 2)

(Level 3)

Collateral dependent loans:

(dollars in thousands)

Commercial

$

12,966

$

-

$

-

$

12,966

Commercial real estate

16,407

-

-

16,407

Residential real estate

2,251

-

-

2,251

Collateral dependent loans – Collateral dependent loans as of September 30, 2021 that required a valuation allowance were $48.2 million with a related valuation allowance of $16.6 million.

Fair Value Measurements at Reporting Date Using

Quoted

Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets measured at fair value on a nonrecurring

December 31,

Assets

Inputs

Inputs

basis:

2020

(Level 1)

(Level 2)

(Level 3)

Impaired loans:

(dollars in thousands)

Commercial

$

10,751

$

-

$

-

$

10,751

Commercial real estate

1,393

-

-

1,393

Impaired loans – Impaired loans as of December 31, 2020 that required a valuation allowance were $26.5 million with a related valuation allowance of $14.3 million

36

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Assets Measured With Significant Unobservable Level 3 Inputs

Recurring basis

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2021 and for the year ended December 31, 2020:

Municipal

Securities

(dollars in thousands)

Balance as of December 31, 2020

$

8,844

Principal paydowns

(208

)

Balance as of September 30, 2021

$

8,636

Municipal

Securities

(dollars in thousands)

Balance as of December 31, 2019

$

9,114

Principal paydowns

(270)

 

Balance as of December 31, 2020

$

8,844

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2021

Valuation

Unobservable

Fair Value

Techniques

Input

Rate

Securities available-for-sale:

(dollars in thousands)

Municipal securities

$

8,636

Discounted cash flows

Discount rate

2.9

%

December 31, 2020

Valuation

Unobservable

Fair Value

Techniques

Input

Rate

Securities available-for-sale:

(dollars in thousands)

Municipal securities

$

8,844

Discounted cash flows

Discount rate

2.9

%

37

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

Nonrecurring basis: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2021

Valuation

Unobservable

(dollars in thousands)

Fair Value

Techniques

Input

Range (weighted average)

Collateral dependent:

Commercial

$

780

Appraisals of collateral value

Comparable sales

0% - 5% (2%)

 

Commercial

$

12,186

Market approach (100)

Average transfer price as a price to unpaid principal balance

48 – 53 (49)

 

Commercial real estate

$

16,407

Appraisals of collateral value

Comparable sales

0% - 25% (8%)

 

Residential real estate

$

2,251

Appraisals of collateral value

Comparable sales

1% - 15% (6%)

 

December 31, 2020

Valuation

Unobservable

(dollars in thousands)

Fair Value

Techniques

Input

Range (weighed average)

Impaired loans:

Commercial

$

10,524

Market approach (100%)

Average transfer price as a price to unpaid principal balance

48 - 53 (49)

 

Commercial

$

227

Appraisals of collateral value

Adjustment for comparable sales

1% to +5% (+2%)

 

Commercial real estate

$

1,393

Appraisals of collateral value

Adjustment for comparable sales

-25% to +20% (-8%)

38

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

As of September 30, 2021 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement, in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2021 and December 31, 2020:

Fair Value Measurements

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Carrying

Fair

Assets

Inputs

Inputs

Amount

Value

(Level 1)

(Level 2)

(Level 3)

(dollars in thousands)

September 30, 2021

Financial assets:

Cash and due from banks

$

413,195

$

413,195

$

413,195

$

-

$

-

Securities available-for-sale

462,884

462,884

1,020

453,228

8,636

Investment in restricted stocks

18,106

n/a

n/a

n/a

n/a

Equity securities

13,700

13,700

11,709

1,991

-

Net loans

6,498,453

6,567,363

-

-

6,567,363

Derivatives

1,296

1,296

-

1,296

-

Accrued interest receivable

33,610

33,610

-

1,356

32,254

 

Financial liabilities:

Noninterest-bearing deposits

1,500,754

1,500,754

1,500,754

-

-

Interest-bearing deposits

4,897,584

4,899,141

3,675,673

1,223,468

-

Borrowings

253,225

255,099

-

255,099

-

Subordinated debentures

152,875

164,378

-

164,378

-

Accrued interest payable

2,879

2,879

-

2,879

-

 

December 31, 2020

Financial assets:

Cash and due from banks

$

303,756

$

303,756

$

303,756

$

-

$

-

Investment securities available-for-sale

487,955

487,955

157

478,954

8,844

Restricted investment in bank stocks

25,099

n/a

n/a

n/a

n/a

Equity securities

13,387

13,387

13,387

-

-

Net loans

6,157,081

6,244,037

-

-

6,244,037

Accrued interest receivable

35,317

35,317

-

1,764

33,553

 

Financial liabilities:

Noninterest-bearing deposits

1,339,108

1,339,108

1,339,108

-

-

Interest-bearing deposits

4,620,116

4,633,961

3,155,983

1,477,978

-

Borrowings

425,954

429,671

-

429,671

-

Subordinated debentures

202,648

214,113

-

214,113

-

Derivatives

2,119

2,119

-

2,119

-

Accrued interest payable

3,687

3,687

-

3,687

-

39

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, considering the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

v3.21.2
Comprehensive Income
 9 Months Ended
Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Comprehensive Income

Note 7. Comprehensive Income

Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from non-owner sources. The Company’s other comprehensive income is comprised of unrealized holding gains and losses on securities available-for-sale, unrealized gains (losses) on cash flow hedges, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, each net of taxes.

The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented:

Details about Accumulated Other

Comprehensive Income Components

Amounts Reclassified from Accumulated

Other Comprehensive Income

Affected Line item in the

Statement Where Net Income is Presented

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Sale of investment securities

$

-

$

-

$

195

$

29

Net (losses) gains on sales of securities available-for-sale Income tax expense

available-for-sale

-

-

(48

)

(6

)

$

-

$

-

$

147

$

23

 

Net interest income on swaps

$

(328

)

$

(631

)

$

(1,543

)

$

(942

)

Interest expense

90

196

434

265

Income tax expense

$

(238

)

$

(435

)

$

(1,109

)

$

(677

)

 

Amortization of pension plan net

$

(75

)

$

(75

)

$

(225

)

$

(226

)

Other components of net periodic pension expense

actuarial losses

21

21

63

63

Income tax benefit

$

(54

)

$

(54

)

$

(162

)

$

(163

)

 

Total reclassification

$

(292

)

$

(489

)

$

(1,124

)

$

(817

)

40

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 7. Comprehensive Income – (continued)

Accumulated other comprehensive income (loss) as of September 30, 2021 and December 31, 2020 consisted of the following:

September 30,

December 31,

2021

2020

(dollars in thousands)

Investment securities available-for-sale, net of tax

$

1,475

$

7,859

 

Cash flow hedge, net of tax

932

(1,520

)

Defined benefit pension plan, net of tax

(3,380

)

(3,542

)

Total

$

(973

)

$

2,797

 

v3.21.2
Stock Based Compensation
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation

Note 8. Stock Based Compensation

The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of September 30, 2021. The maximum number of shares of common stock or equivalents which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of September 30, 2021 are approximately 329,175. The Company intends to issue all shares under the Plan in the form of newly issued shares.

Restricted stock, options and restricted stock units typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year or upon a change-in-control. The options generally expire ten years from the date of grant. Restricted stock granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change-in-control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options, performance units and restricted stock units do not.

All awards are issued at the fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are recorded as incurred. Stock-based compensation expense for the three and nine months ended September 30, 2021 was $1.2 million and $3.2 million, respectively. Stock-based compensation expense for the three and nine months ended September 30, 2020 was $0.8 million and $2.0 million, respectively.

Activity in the Company’s options for the nine months ended September 30, 2021 was as follows:

Number of

Stock

Options

Weighted-

Average

Exercise

Price

Weighted-

Average

Remaining

Contractual

Term

(in years)

Aggregate

Intrinsic Value

Outstanding as of December 31, 2020

38,013

$

9.03

Granted

-

-

Exercised

(5,449

)

8.34

Forfeited/cancelled/expired

-

-

Outstanding as of September 30, 2021

32,564

$

9.15

1.0

$

554,374

 

Exercisable as of September 30, 2021

32,564

$

9.15

1.0

$

554,374

The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on September 30, 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on September 30, 2021. This amount changes based on the fair market value of the Company’s stock.

41

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 8. Stock Based Compensation – (continued)

Activity in the Company’s restricted shares for the nine months ended September 30, 2021 was as follows:

Weighted-

Average

Nonvested

Grant Date

Shares

Fair Value

Nonvested as of December 31, 2020

113,114

$

18.17

Granted

49,971

25.33

Vested

(68,142

)

17.16

Forfeited/cancelled/expired

(3,071

)

23.76

Nonvested September 30, 2021

91,872

$

22.62

As of September 30, 2021, there was approximately $1.4 million of total unrecognized compensation cost related to nonvested restricted shares granted. The cost is expected to be recognized over a weighted average period of 1.2 years.

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

Weighted

Average Grant

Units

Units

Date Fair

(expected)

(maximum)

Value

Unearned as of December 31, 2020

147,636

$

17.29

Awarded

37,543

25.24

Change in estimate

37,184

15.57

Vested shares

(29,421

)

31.35

Forfeited/cancelled/expired

(11,153

)

17.06

Unearned as of September 30, 2021

181,789

233,638

$

16.32

As of September 30, 2021, the specific number of shares related to performance units that were expected to vest was 181,789, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. As of September 30, 2021 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 233,638. During the nine months ended September 30, 2021, 29,421 shares vested. A total of 14,710 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of performance units during the nine months ended September 30, 2021 were 14,711 shares. As of September 30, 2021, compensation cost of approximately $1.4 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.6 years.

A summary of the status of unearned restricted stock units and the changes in restricted stock units during the period is presented in the table below:

Weighted

Units

Average Grant

(expected)

Date Fair Value

Unearned as of December 31, 2020

169,313

$

14.07

Awarded

45,027

25.24

Vested shares

(68,916

)

16.29

Forfeited/cancelled/expired

(8,476

)

15.83

Unearned as of September 30, 2021

136,948

$

16.52

Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient. During the nine months ended September 30, 2021, 68,916 shares vested. A total of 34,458 shares were netted from the vested shares to satisfy employee tax obligations. The net shares issued from vesting of restricted stock units during the nine months ended September 30, 2021 were 34,458 shares. As of September 30, 2021, compensation cost of approximately $1.4 million related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 1.3 years.

v3.21.2
Components of Net Periodic Pension Cost
 9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Components of Net Periodic Pension Cost

Note 9. Components of Net Periodic Pension Cost

The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until September 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

Three Months Ended

September 30,

Affected Line Item in the Consolidated

Statements of Income

 

 

2021

 

2020

 

 

(dollars in thousands)

Service cost

 

$

-

 

 

$

-

 

Interest cost

 

 

71

 

 

 

91

 

Other components of net periodic pension expense

 

Expected return on plan assets

 

 

(213

)

 

 

(196

)

Other components of net periodic pension expense

Net amortization

 

 

75

 

 

 

75

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(67

)

 

$

(30

)

Nine Months Ended

September 30,

Affected Line Item in the Consolidated

Statements of Income

 

 

2021

 

2020

 

 

(dollars in thousands)

Service cost

 

$

-

 

 

$

-

 

Interest cost

 

 

213

 

 

 

273

 

Other components of net periodic pension expense

 

Expected return on plan assets

 

 

(639

)

 

 

(588

)

Other components of net periodic pension expense

Net amortization

 

 

225

 

 

 

226

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(201

)

 

$

(89

)

Contributions

The Company did not contribute to the Pension Trust during the nine months ended September 30, 2021. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2021. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust.

v3.21.2
FHLB Borrowings
 9 Months Ended
Sep. 30, 2021
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]  
FHLB Borrowings

Note 10. FHLB Borrowings

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

September 30, 2021

December 31, 2020

Amount

Rate

Amount

Rate

(dollars in thousands)

Total FHLB borrowings

$

253,225

1.23

%

$

425,954

1.07

%

 

By remaining period to maturity:

Less than 1 year

$

168,213

1.00

%

$

297,570

0.84

%

1 year through less than 2 years

57,360

1.93

%

75,644

1.42

%

2 years through less than 3 years

-

-

50,000

1.84

%

3 years through less than 4 years

25,000

1.00

%

-

-

4 years through 5 years

2,050

2.23

%

 

-

-

After 5 years

729

2.91

%

 

2,824

2.42

%

Total FHLB borrowings

253,352

1.23

%

426,038

1.07

%

Fair value discount

(127

)

(84

)

FHLB borrowings, net

$

253,225

$

425,954

The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans.

Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rates. The advances as of September 30, 2021 were primarily collateralized by approximately $2.0 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. As of September 30, 2021 the Company had remaining borrowing capacity of approximately $1.2 billion at FHLB and $75 million of the less than 1 year FHLB advances were hedged with interest rate swaps, see Note 4 for additional details.

v3.21.2
Subordinated Debentures
 9 Months Ended
Sep. 30, 2021
Subordinated Borrowings [Abstract]  
Subordinated Debentures

Note 11. Subordinated Debentures

During December 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or part. The floating interest rate on the subordinated debentures is three-month LIBOR plus 2.85% and re-prices quarterly. The rate as of September 30, 2021 was 2.98%.

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of September 30, 2021 and December 31, 2020.

Issuance Date

Securities

Issued

Liquidation Value

Coupon Rate

Maturity

Redeemable by

Issuer Beginning

12/19/2003

$ 5,000,000

$1,000 per Capital Security

Floating 3-month LIBOR + 285 Basis Points

01/23/2034

01/23/2009

 

44

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 11. Subordinated Debentures – (continued)

During September 2020, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2020 Notes”). The 2020 Notes bear interest at 5.75% annually from, and including, the date of initial issuance to, but excluding, September 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on September 15 and December 15 of each year, commencing December 15, 2020. From and including September 15, 2025 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, commencing on September 15, 2025. Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.

During January 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”) to certain accredited investors. The net proceeds from the sale of the Notes were used in the first quarter of 2018 for general corporate purposes, which included the Parent Corporation contributing $65 million of the net proceeds to the Bank in the form of debt and common equity. The Notes are non-callable for five years, have a stated maturity of February 1, 2028 and bear interest at a fixed rate of 5.20% per year, from and including January 17, 2018 to, but excluding February 1, 2023. From and including February 1, 2023 to, but excluding the maturity date, or early redemption date, the interest rate will reset quarterly to a level equal to the then current three-month LIBOR rate plus 284 basis points.

During September 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “2015 Notes”). As of December 31, 2020, the 2015 Notes have a stated maturity of July 1, 2025, and bear interest until the maturity date or early redemption date at a variable rate equal to the then current three-month LIBOR rate plus 393 basis points. As of December 31, 2020, the variable interest rate was 4.16% and all costs related to 2015 issuance have been amortized. The 2015 Notes were redeemed in full on January 1, 2021.

v3.21.2
Preferred Stock
 9 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Preferred Stock

Note 12. Preferred Stock

On August 19, 2021, the Company completed an underwritten public offering of 115,000 shares, or $115 million in aggregate liquidation preference, of its 5.25% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A, no par value, with a liquidation preference of $1,000 per share. The net proceeds received from the issuance of preferred stock at the time of closing were $110.9 million.

v3.21.2
Nature of Operations, Principles of Consolidation and Risk and Uncertainties (Policies)
 9 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Nature of Operations

Nature of Operations

ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (the “BHCA”). The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a New Jersey investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company), Port Jervis Holdings, LLC (a New Jersey limited liability company), BONJ Special Properties, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey financial technology company).

The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-five other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrowers’ business, real estate rental and consumer wages.

The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021, or for any other interim period. The Company’s 2020 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements.

Basis of Presentation

Basis of Presentation

The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity.

Use of Estimates

Use of Estimates

In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates.

Risks and Uncertainties

Risks and Uncertainties

As previously disclosed, on March 11, 2020 the World Health Organization declared the outbreak of COVID-19 as a global pandemic, which continues to impact the United States and the world. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted to, among other things, provide emergency assistance for individuals, families and businesses affected by the COVID-19 pandemic. The COVID-19 pandemic has adversely affected, and continues to adversely affect economic activity globally, nationally and locally. Actions taken around the world to help mitigate the spread of COVID-19 include restrictions on travel, quarantines in certain areas, and forced closures for certain types of public places and businesses. Although economic activity has accelerated in 2021, and the United States continues to implement a COVID-19 vaccination program, COVID-19, it’s variants and actions taken to mitigate the spread of it have had and may in the future have an adverse impact on the economies and financial markets of many countries and parts of the United States, including the New Jersey/New York metropolitan area in which the Company primarily operates. Although the Company has been able to continue operations while taking steps to ensure the safety of employees and customers, COVID-19 could impact the Company’s operations in the future. Federal Reserve reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company's financial condition and results of operations in future periods. Although state and local governments have lifted many restrictions on conducting business, it is possible that restrictions could be reimposed. It is therefore unknown how long COVID-19 may continue to impact the economy and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including the determination of the allowance for credit losses on loans, fair value of financial instruments, impairment of goodwill and other intangible assets and income taxes.

Adoption of New Accounting Standards in 2021

Note 1b. Authoritative Accounting Guidance

Adoption of New Accounting Standards in 2021

Effective January 1, 2021, the Company adopted Accounting Standards Update (“ASU”) 2016-13 “ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which replaced the prior incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL” or the “CECL Standard”). The measurement of expected credit losses under the CECL Standard is applicable to financial assets measured at amortized cost, including portfolio loans and investment securities classified as held-to-maturity (“HTM”). It also applies to off-balance sheet credit exposures including loan commitments, standby letters of credit, financial guarantees and other similar instruments. In addition, the CECL Standard changes the accounting for investment securities classified as available-for-sale (“AFS”), including a requirement that estimated credit losses on AFS securities be presented as an allowance rather than as a direct write-down of the carrying balance of securities which we do not intend to sell, or believe that it is more likely than not, that we will be required to sell.

The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchased credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired loans as of December 31, 2020 were considered purchased credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousands):

Change in Consolidated

Change to Retained Earnings

Statement of Condition

Tax Effect

from Adoption of CECL

Allowance for credit losses (“ACL”) (loans)

$

1,350

$

406

$

944

Adjustment related to purchased credit-impaired loan marks(1)

5,207

-

-

Total ACL – loans

6,557

406

944

ACL (unfunded credit commitments)

2,833

852

1,981

 

Total impact of CECL adoption

$

9,390

$

1,258

$

2,925

 

 

(1)

This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.

Loans designated as purchased credit impaired loans (“PCI”) and accounted for under Accounting Standards Codification (“ASC”) 310-30 were designated as purchased with credit deterioration loans (“PCD”). In accordance with the CECL Standard, the Company did not reassess whether PCI loans met the criteria of PCD loans as of the date of adoption and determined all PCI loans were PCD loans. The Company recorded an increase to the balance of PCD loans and an increase to the ACL for loans of $5.2 million, which represented the expected credit losses for PCD loans. The remaining non-credit discount (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021 over the remaining estimated life of the loans. Also, in accordance with the CECL Standard, the Company did not reassess whether modifications to individual acquired financial assets were troubled debt restructurings (“TDRs”) as of the date of adoption.

ACL for loans: The ACL for loans is a valuation account that is deducted from the amortized cost basis of portfolio loans to present the net amount expected to be collected on portfolio loans over their contractual life. Loans are charged-off against the allowance when we believe the uncollectibility of a loan balance has been confirmed, and the expected recoveries do not exceed the aggregate of amounts previously charged-off or expected to be charged-off.

11

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 1b. Authoritative Accounting Guidance – (continued)

The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company currently utilizes a one-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of the loan. The measurement of expected credit loss under the CECL methodology is applicable to financial assets measured at amortized cost, including loans and held to maturity investments and it also applies to certain off-balance sheet credit exposures.

The ACL for loans is measured on a collective (pool) basis when similar risk characteristics exist. Generally, for all other loan types, the estimated expected credit loss is also calculated at the loan level and pool assignments are only utilized for aggregating the allowance estimates of similar loan types for financial statement disclosure purposes. Loan segments have unique risk characteristics with respect to credit quality and are as follows:

●

The repayment of commercial loans is generally dependent on the creditworthiness and cash flow of borrowers, and if applicable, guarantors, which may be negatively impacted by adverse economic conditions. While the majority of these loans are secured, collateral type, marketing, coverage, valuation and monitoring are not as uniform as in other portfolio classes and recovery from liquidation of such collateral may be subject to greater variability.

●

Payment on commercial mortgages is driven principally by operating results of the managed properties or underlying business and secondarily by the sale or refinance of such properties. Both primary and secondary sources of repayment, and value of the properties in liquidation, may be affected to a greater extent by adverse conditions in the real estate market or the economy in general.

●

Properties underlying construction, land and land development loans often do not generate sufficient cash flows to service debt and thus repayment is subject to the ability of the borrower and, if applicable, guarantors, to complete development or construction of the property and carry the project, often for extended periods of time. As a result, the performance of these loans is contingent upon future events whose probability at the time of origination is uncertain.

●

The ability of borrowers to service debt in the residential and consumer loan portfolios is generally subject to personal income which may be impacted by general economic conditions, such as increased unemployment levels. These loans are predominately collateralized by first and/or second liens on single family properties. If a borrower cannot maintain the loan, the Company’s ability to recover against the collateral in sufficient amount and in a timely manner may be significantly influenced by market, legal and regulatory conditions.

●

The Company considers loan classes and loan segments to be one and the same.

Individually Analyzed Loans: The Company will evaluate individual instruments for expected credit losses when those instruments do not share similar risk characteristics with instruments evaluated using a collective (pooled) basis. Loans will transition from defined segments for individual analysis when credit characteristics, or risk traits, change in a material manner. A loan is considered for individual analysis when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining individual analysis include payment status and the probability of collecting scheduled principal and interest payments when due. Loans for which the terms have been modified as a concession to the borrower due to the borrower experiencing financial difficulties are considered TDRs and are classified as individually analyzed. Loans considered to be TDRs can be categorized as nonaccrual or performing. All PCD loans will be considered as individually analyzed. Generally, individually analyzed loans consist of nonaccrual loans and performing TDRs. Of this group of loans, loans of $250,000 and over are individually evaluated, while loans with balances less than $250,000 are collectively evaluated, and, accordingly, are not separately identified for analysis or disclosures. Instruments will not be included in both collective and individual analysis. Individual analysis will establish a specific reserve for instruments in scope.

For collateral dependent loans, when it is determined that a foreclosure is probable, the ACL will be determined on a loan level basis using the fair value of the collateral as of the reporting date, less estimated disposition costs (“net fair value”), which will ensure that the credit loss is not delayed until the time at which the actual foreclosure takes place. In the event that this fair value is less than the amortized cost basis of these specific loans, we will recognize the difference between the net fair value at the reporting date and the amortized cost basis in the ACL.  If the fair value of the collateral has increased as of the ACL evaluation date, the increase in the fair value of the collateral is reflected through a reduction in the ACL. ACL adjustments for estimated disposition costs are not appropriate when the repayment of a collateral-dependent loan is expected from the operation of the collateral.  If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as the allowance for credit losses. The effective interest rate used to discount expected cash flows is adjusted to incorporate expected prepayments, if applicable.

12

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 1b. Authoritative Accounting Guidance – (continued)

For charge-offs and recoveries we will generally charge-off a loan balance after an analysis is completed which indicates that the collectability of the full principal is in doubt. Charge-offs are charged against the allowance in the period in which the loans are deemed to be uncollectible.  Any expected future recoveries of amounts which were previously charged-off or expected to be charged-off will be included in the ACL, as the recoveries represent a component of the net amount expected to be collected. Expected recoveries in the ACL shall not exceed amounts previously charged-off or expected to be charged-off.

Investment Securities: Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in comprehensive income, net of tax. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts on securities are generally amortized using the level-yield method without estimating prepayments, except for mortgage-backed securities, where prepayment rates are estimated. Premiums on callable investment securities are amortized to their earliest call date. Gains and losses on sales of securities are recorded on the trade date and determined using the specific identification method.

ACL - on investment securities classified as available-for-sale: For available-for-sale investment securities which are in an unrealized loss position, the Company will first assess whether we intend to sell, or it is more likely than not, that we will be required to sell the security before recovery of the amortized cost basis. If either of the criteria is met, the amortized cost basis of the security is written down to fair value through income. For available-for-sale investment securities that do not meet the aforementioned criteria, we evaluate whether the decline in fair value has resulted from an actual or estimated credit loss event or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, changes to the rating of the security, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss is likely, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, an ACL is recorded for the estimated credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income.

Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when we believe the uncollectibility of an available-for-sale security has been confirmed or if either of the criteria regarding intent or requirement to sell is met.

ASU No. 2021-03, “Intangibles – Goodwill and Other (Topic 350).” ASU 2021-03 requires an entity to identify and evaluate goodwill impairment triggering events when they occur to determine whether it is more likely than not that the fair value of a reporting unit (or entity, if the entity has elected the accounting alternative for amortizing goodwill and chosen that option) is less than its carrying amount. If an entity determines that it is more likely than not that the goodwill is impaired. It must test goodwill for impairment using the triggering event date as the measurement date. An entity is required to disclose the amount assigned to goodwill in total and by major business combination, or by reorganization event resulting in fresh-start reporting. Also, the entity must disclose the weighted average amortization period in total and the amortization period by major business combination, or by reorganization event resulting in fresh-start reporting. ASU 2021-03 was effective for the Company on January 1, 2021 and did not have a significant impact on our consolidated financial statements.

ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 was effective for the Company as of January 1, 2021 and did not have a significant impact on our consolidated financial statements.

v3.21.2
Authoritative Accounting Guidance (Table)
 9 Months Ended
Sep. 30, 2021
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Schedule of Adoption of CECL Standard Resulted Adjustment in Financial Statements

The Company adopted the CECL Standard using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. As discussed further below, purchased credit deteriorated assets were measured on a prospective basis in accordance with the CECL Standard and all purchased credit impaired loans as of December 31, 2020 were considered purchased credit deteriorated loans upon adoption. Results for reporting periods beginning after January 1, 2021 are presented under the CECL Standard while prior period amounts continue to be reported in accordance with previously applicable accounting guidance. The adoption of the CECL Standard resulted in the following adjustments to our financial statements as of January 1, 2021 (dollars in thousands):

Change in Consolidated

Change to Retained Earnings

Statement of Condition

Tax Effect

from Adoption of CECL

Allowance for credit losses (“ACL”) (loans)

$

1,350

$

406

$

944

Adjustment related to purchased credit-impaired loan marks(1)

5,207

-

-

Total ACL – loans

6,557

406

944

ACL (unfunded credit commitments)

2,833

852

1,981

 

Total impact of CECL adoption

$

9,390

$

1,258

$

2,925

 

 

(1)

This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.

v3.21.2
Earnings per Common Share (Tables)
 9 Months Ended
Sep. 30, 2021
Earnings per common share:  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Earnings per common share have been computed based on the following:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(in thousands, except for per share data)

2021

2020

2021

2020

Net income

$

32,097

$

24,786

$

97,315

$

45,648

Earnings allocated to participating securities

(76

)

(133

)

(250

)

(218

)

Income attributable to common stock

$

32,021

$

24,653

$

97,065

$

45,430

 

Weighted average common shares outstanding, including participating securities

39,741

39,656

39,770

39,624

Weighted average participating securities

(95

)

(119

)

(102

)

(125

)

Weighted average common shares outstanding

39,646

39,537

39,668

39,499

Incremental shares from assumed conversions of options, performance units and non-participating restricted shares

223

117

220

111

Weighted average common and equivalent shares outstanding

39,869

39,654

39,888

39,610

 

Earnings per common share:

Basic

$

0.81

$

0.62

$

2.45

$

1.15

Diluted

0.80

0.62

2.43

1.15

v3.21.2
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Unrealized Gain (Loss) on Investments [Table Text Block]

The following tables present information related to the Company’s portfolio of securities available-for-sale as of September 30, 2021 and December 31, 2020.

Allowance

for

Gross

Gross

Investment

Amortized

Unrealized

Unrealized

Fair

Credit

Cost

Gains

Losses

Value

Losses

September 30, 2021

(dollars in thousands)

Securities available-for-sale

Federal agency obligations

$

50,016

$

1,032

$

-

$

51,048

$

-

Residential mortgage pass-through securities

255,488

2,640

(2,073

)

256,055

-

Commercial mortgage pass-through securities

10,859

135

(468

)

10,526

-

Obligations of U.S. states and political subdivisions

129,632

1,693

(1,051

)

130,274

-

Corporate bonds and notes

10,965

124

-

11,089

-

Asset-backed securities

2,718

6

(2

)

2,722

-

Certificates of deposit

149

1

-

 

150

-

Other securities

1,020

-

-

1,020

-

Total securities available-for-sale​​

$

460,847

$

5,631

$

(3,594

)

$

462,884

$

-

 

December 31, 2020

Securities available-for-sale

Federal agency obligations

$

37,015

$

1,508

$

(65

)

$

38,458

$

N/A

Residential mortgage pass-through securities

266,114

4,811

(41

)

270,884

N/A

Commercial mortgage pass-through securities

6,906

203

(187

)

6,922

N/A

Obligations of U.S. states and political subdivisions

138,539

4,269

-

142,808

N/A

Corporate bonds and notes

24,925

222

(52

)

25,095

N/A

Asset-backed securities

3,521

-

(41

)

3,480

N/A

Certificates of deposit

149

2

-

151

N/A

Other securities

 

157

 

-

 

-

 

157

N/A

Total securities available-for-sale​​

$

477,326

$

11,015

$

(386

)

$

487,955

$

N/A

Investments Classified by Contractual Maturity Date [Table Text Block]

The following table presents information for investments in securities available-for-sale as of September 30, 2021, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately.

September 30, 2021

Amortized

Fair

Cost

Value

(dollars in thousands)

Securities available-for-sale:

Due in one year or less

$

4,439

$

4,451

Due after one year through five years

9,911

10,024

Due after five years through ten years

7,777

8,029

Due after ten years

171,353

172,779

Residential mortgage pass-through securities

255,488

256,055

Commercial mortgage pass-through securities

10,859

10,526

Other securities

1,020

1,020

Total securities available-for-sale

$

460,847

$

462,884

Schedule of Realized Gain (Loss) [Table Text Block]

Gross gains and losses from the sales and redemptions of securities for periods presented were as follows:

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

 

 

 

(dollars in thousands)

 

 

 

2021

 

2020

 

 

2021

 

2020

 

Proceeds

 

$

-

 

 

$

-

 

 

$

5,185

 

 

$

19,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross gains on sales/redemption of securities

 

 

-

 

 

 

-

 

 

 

195

 

 

 

29

 

Gross losses on sales/redemptions of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net gains on sales/redemptions of securities

 

 

-

 

 

 

-

 

 

 

195

 

 

 

29

 

Less: tax provision on net gains

 

 

-

 

 

-

 

 

(48

)

 

 

(6

)

Net gains on sales/redemptions of securities, after tax

 

$

-

 

 

$

-

 

 

$

147

 

 

$

23

 

Schedule of Unrealized Loss on Investments [Table Text Block]

Impairment Analysis of Available-for-Sale Debt Securities

The following tables indicate gross unrealized losses for which an ACL has not been recorded, aggregated by investment category and by the length of continuous time individual securities have been in an unrealized loss position as of September 30, 2021 and December 31, 2020.

September 30, 2021

Total

Less than 12 Months

12 Months or Longer

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(dollars in thousands)

Investment Securities

 

Available-for-Sale:

 

Residential mortgage pass-through securities

$

171,592

$

(2,073

)

$

171,592

$

(2,073

)

$

-

$

-

Commercial mortgage pass-through securities

6,349

(468

)

2,658

(67

)

3,691

(401

)

Obligations of U.S. states and political subdivisions

71,938

(1,051

)

71,938

(1,051

)

-

-

Asset-backed securities

1,389

(2

)

840

-

549

(2

)

Total temporarily impaired securities

$

251,268

$

(3,594

)

$

247,028

$

(3,191

)

$

4,240

$

(403

)

December 31, 2020

Total

Less than 12 Months

12 Months or Longer

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(dollars in thousands)

Investment Securities

 

Available-for-Sale:

 

Federal agency obligations

$

8,978

$

(65

)

$

8,975

$

(65

)

$

3

$

-

 

Residential mortgage pass-through securities

20,895

(41

)

20,886

(41

)

9

-

Commercial mortgage pass-through securities

3,954

(187

)

3,954

(187

)

-

-

 

Corporate bonds and notes

3,928

(52

)

3,928

(52

)

-

-

Asset-backed securities

3,083

(41

)

622

-

2,461

(41

)

Total Temporarily Impaired Securities

$

40,838

$

(386

)

$

38,365

$

(345

)

$

2,473

$

(41

)

v3.21.2
Derivatives (Tables)
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table presents the net losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods:

Three Months Ended September 30, 2021

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

1,890

$

328

$

-

Three Months Ended September 30, 2020

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

(82

)

$

631

$

-

19

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 4. Derivatives – (continued)

Nine Months Ended September 30, 2021

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

1,872

$

1,543

$

-

Nine Months Ended September 30, 2020

Amount of (loss)

Amount of loss

Amount of gain

gain recognized

(gain) reclassified

recognized in other

in OCI (Effective

from OCI to

Noninterest income

Portion)

interest income

(Ineffective Portion)

(dollars in thousands)

Interest rate contracts

$

(3,397

)

$

942

$

-

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2021 and December 31, 2020:

September 30, 2021

December 31, 2020

Notional

Notional

Amount

Fair Value

Amount

Fair Value

(dollars in thousands)

Interest rate swaps related to FHLB advances included in liabilities

$

275,000

$

1,295

$

175,000

$

(2,119

)

v3.21.2
Loans and the Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans Receivable - As of and prior to December 31, 2020, loans receivable were accounted for under the incurred loss model. As of January 1, 2021, portfolio loans are accounted for under the expected loss model. Accordingly, some of the information presented is not comparable from period to period. See Note 1b. “Authoritative Accounting Guidance - Adoption of New Accounting Standards” for additional information. The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of September 30, 2021 and December 31, 2020:

September 30,

December 31,

2021

2020

(dollars in thousands)

Commercial (1)

$

1,325,488

$

1,521,967

Commercial real estate

4,436,626

3,783,550

Commercial construction

552,896

617,747

Residential real estate

270,793

322,564

Consumer

2,093

 

1,853

Gross loans

6,587,896

6,247,681

Net deferred loan fees

(11,457

)

 

(11,374

)

Total loans receivable

$

6,576,439

$

6,236,307

 

(1)

Included in commercial loans as of September 30, 2021 and December 31, 2020 were PPP loans of $177.8 million and $397.5 million, respectively.

Loans held for sale [Table Text Block]

Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale portfolio as of September 30, 2021 and December 31, 2020:

September 30,

December 31,

2021

2020

(dollars in thousands)

Commercial real estate

$

4,876

$

1,990

Residential real estate

720

 

2,720

Total carrying amount

$

5,596

$

4,710

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans with an ACL as of September 30, 2021 and nonaccrual loans without an ACL as of September 30, 2021:

September 30, 2021

Nonaccrual

loans with

ACL

Nonaccrual

loans without

ACL

Total

Nonaccrual

loans

(dollars in thousands)

Commercial

$

27,993

$

2,486

$

30,479

Commercial real estate

11,668

16,910

28,578

Commercial construction

-

3,336

3,336

Residential real estate

-

 

3,566

3,566

Consumer

-

 

-

-

Total

$

39,661

$

26,298

$

65,959

21

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands):

December 31,

2020

Commercial

$

33,019

Commercial real estate

10,111

Commercial construction

14,015

Residential real estate

 

4,551

Consumer

 

-

Total nonaccrual loans

$

61,696

Financing Receivable Origination and Risk Designation [Table Text Block]

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of September 30, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

 

Term loans amortized cost basis by origination year

 

 

Revolving

 

 

Total

Gross

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

Loans

Loans

Commercial

Pass

$

362,839

$

78,941

$

73,202

$

60,881

$

98,178

$

118,326

$

465,494

$

1,257,861

Special mention

-

-

225

904

5,653

4,198

13,787

24,767

Substandard

176

-

1,619

12,779

4,101

21,147

3,038

42,860

Doubtful

-

-

-

-

-

-

-

-

Total Commercial

$

363,015

$

78,941

$

75,046

$

74,564

$

107,932

$

143,671

$

482,319

$

1,325,488

 

Commercial Real Estate

Pass

$

1,178,056

$

587,923

$

446,299

$

479,741

$

514,973

$

944,052

$

171,963

$

4,323,007

Special mention

-

-

3,364

1,875

4,335

26,550

6,633

42,757

Substandard

1,942

4,500

657

18,861

-

36,112

8,790

70,862

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Real Estate

$

1,179,998

$

592,423

$

450,320

$

500,477

$

519,308

$

1,006,714

$

187,386

$

4,436,626

 

Commercial Construction

Pass

$

1,405

$

7,370

$

37,492

$

2,600

$

2,247

$

490

$

486,404

$

538,008

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

14,888

14,888

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Construction

$

1,405

$

7,370

$

37,492

$

2,600

$

2,247

$

490

$

501,292

$

552,896

 

Residential Real Estate

Pass

$

18,387

$

30,704

$

25,544

$

29,503

$

30,577

$

77,427

$

46,227

$

258,369

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

199

-

8,492

3,733

12,424

Doubtful

-

-

-

-

-

-

-

-

Total Residential Real Estate

$

18,387

$

30,704

$

25,544

$

29,702

$

30,577

$

85,919

$

49,960

$

270,793

 

Consumer

Pass

$

-

$

96

$

50

$

26

$

35

$

1,761

$

125

$

2,093

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

Total Consumer

$

-

$

96

$

50

$

26

$

35

$

1,761

$

125

$

2,093

 

Total

Pass

$

1,560,687

$

705,034

$

582,587

$

572,751

$

646,010

$

1,142,056

$

1,170,213

$

6,379,338

Special mention

-

-

3,589

2,779

9,988

30,748

20,420

67,524

Substandard

2,118

4,500

2,276

31,839

4,101

65,751

30,449

141,034

Doubtful

-

-

-

-

-

-

-

-

Grand Total

$

1,562,805

$

709,534

$

588,452

$

607,369

$

660,099

$

1,238,555

$

1,221,082

$

6,587,896

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020:

December 31, 2020

Pass

Special Mention

Substandard

Doubtful

Total

(dollars in thousands)

Commercial

$

1,447,097

$

30,725

$

43,930

$

215

$

1,521,967

Commercial real estate

3,700,498

49,143

33,909

-

3,783,550

Commercial construction

587,266

-

30,481

-

617,747

Residential real estate

311,174

-

11,390

-

322,564

Consumer

1,853

-

-

-

1,853

Gross loans

$

6,047,888

$

79,868

$

119,710

$

215

$

6,247,681

Schedule of Fair Value of Collateral [Table Text Block]

The following table presents collateral dependent loans that were individually evaluated for impairment as of September 30, 2021:

September 30, 2021

Real

Estate

Other

Total

(dollars in thousands)

Commercial

$

6,778

$

26,175

$

32,953

Commercial real estate

56,622

-

56,622

Commercial construction

12,582

-

12,582

Residential real estate

10,258

-

10,258

Consumer

-

-

-

Total

$

86,240

$

26,175

$

112,415

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by class as of the year ended December 31, 2020:

December 31, 2020

Unpaid

Recorded

Principal

Related

Investment

Balance

Allowance

No related allowance recorded

(dollars in thousands)

Commercial

$

11,325

$

11,835

Commercial real estate

13,105

13,449

Commercial construction

24,284

24,907

Residential real estate

5,378

5,723

Consumer

-

-

Total (no related allowance)

$

54,092

$

55,914

 

With an allowance recorded

 

Commercial

$

23,736

$

69,122

$

12,985

Commercial real estate

2,722

2,722

1,329

Total (with allowance)

$

26,458

$

71,844

$

14,314

 

Total

Commercial

$

35,061

$

80,957

$

12,985

Commercial real estate

15,827

16,171

1,329

Commercial construction

24,284

24,907

-

Residential real estate

5,378

5,723

-

Consumer

-

-

-

Total

$

80,550

$

127,758

$

14,314

25

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by class as of and for the three months and nine months ended September 30, 2020 (dollars in thousands):

Three Months Ended

September 30,

Nine Months Ended

September 30,

2020

2020

Average

Recorded

Investment

Interest

Income

Recognized

Average

Recorded

Investment

Interest

Income

Recognized

Impaired loans (no allowance)

 

Commercial

$

12,266

$

50

$

12,100

$

150

Commercial real estate

12,460

74

12,415

229

Commercial construction

21,297

91

21,149

262

Residential real estate

4,011

16

3,761

16

 

Total

$

50,034

$

231

$

49,425

$

657

 

Impaired loans (allowance):

 

Commercial

$

23,024

$

-

$

23,195

$

-

Commercial real estate

2,722

-

2,722

-

Commercial construction

2,934

-

2,934

-

Residential real estate

261

5

262

5

 

Total

$

28,941

$

5

$

29,113

$

5

 

Total impaired loans:

Commercial

$

35,290

$

50

$

35,295

$

150

Commercial real estate

15,182

74

15,137

229

Commercial construction

24,231

91

24,083

262

Residential real estate

4,272

21

4,023

21

 

Total

$

78,975

$

236

$

78,538

$

662

Past Due Financing Receivables [Table Text Block]

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due as of September 30, 2021 and December 31, 2020 (dollars in thousands):

September 30, 2021

30-59 Days Past Due

60-89 Days Past Due

90 Days or Greater Past Due and Still Accruing

Nonaccrual

Total Past Due and Nonaccrual

Current

Gross Loans

Commercial

$

391

$

417

$

4,463

$

30,479

$

35,750

$

1,289,738

$

1,325,488

Commercial real Estate

-

1,694

1,860

28,578

32,132

4,404,494

4,436,626

Commercial construction

-

-

-

3,336

3,336

549,560

552,896

Residential real Estate

338

-

8,360

3,566

12,264

258,529

270,793

Consumer

-

-

-

-

-

2,093

2,093

Total

$

729

$

2,111

$

14,683

$

65,959

$

83,482

$

6,504,414

$

6,587,896

90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

December 31, 2020

30-59 Days

Past Due

60-89 Days

Past Due

90 Days or

Greater Past

Due and Still

Accruing

Nonaccrual

Total Past

Due and

Nonaccrual

Current

Total Loans

Receivable

Commercial

$

1,445

$

558

$

3,182

$

33,019

$

38,204

$

1,483,763

$

1,521,967

Commercial real estate

13,258

4,140

5,555

10,111

33,064

3,750,486

3,783,550

Commercial construction

2,472

-

-

14,015

16,487

601,260

617,747

Residential real estate

1,367

241

4,084

4,551

10,243

312,321

322,564

Consumer

 

2

 

-

 

-

 

-

 

2

 

1,851

 

1,853

Total

$

18,544

$

4,939

$

12,821

$

61,696

$

98,000

$

6,149,681

$

6,247,681

Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the ACL that are allocated to each loan portfolio segment:

September 30, 2021

Commercial

Commercial

Residential

Commercial

real estate

construction

real estate

Consumer

Total

(dollars in thousands)

ACL

Individually evaluated for impairment

$

14,630

$

1,199

$

-

$

66

$

-

$

15,895

Collectively evaluated for impairment

9,487

40,222

3,702

3,302

8

56,721

Acquired with deteriorated credit quality individually analyzed

3,219

1,921

-

230

-

5,370

Total

$

27,336

$

43,342

$

3,702

$

3,598

$

8

$

77,986

 

Gross loans

Individually evaluated for impairment

$

33,970

$

50,642

$

12,582

$

6,017

$

-

$

103,211

Collectively evaluated for impairment

1,286,337

4,380,004

540,314

260,536

2,093

6,469,284

Acquired with deteriorated credit quality individually analyzed

5,181

5,980

-

4,240

-

15,401

Total

$

1,325,488

$

4,436,626

$

552,896

$

270,793

$

2,093

$

6,587,896

December 31, 2020

Commercial

Commercial

Residential

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Allowance for loan losses

Individually evaluated for impairment

$

12,985

$

1,329

$

-

$

-

$

-

$

-

$

14,314

Collectively evaluated for impairment

 

15,412

 

33,373

 

7,787

 

1,928

 

4

568

 

59,072

Acquired portfolio

 

46

 

4,628

 

407

 

759

 

-

-

 

5,840

Acquired with deteriorated credit quality

-

 

-

 

-

 

-

 

-

-

 

-

Total

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

 

Gross loans

Individually evaluated for impairment

$

35,061

$

15,827

$

24,284

$

5,378

$

-

 

$

80,550

Collectively evaluated for impairment

 

1,414,626

 

2,959,978

 

574,118

 

241,925

 

1,627

 

 

5,192,274

Acquired portfolio

 

68,402

 

802,190

 

19,345

 

71,177

 

226

 

 

961,340

Acquired with deteriorated credit quality

 

3,878

 

5,555

 

-

 

4,084

 

-

 

 

13,517

Total

$

1,521,967

$

3,783,550

$

617,747

$

322,564

$

1,853

 

$

6,247,681

Allowance for Credit Losses on Financing Receivables [Table Text Block]

Three Months Ended September 30, 2021

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of June 30, 2021

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

-

$

78,684

 

 

 

Charge-offs

(254

)

(1,473

)

-

-

-

-

(1,727

)

 

Recoveries

1

85

-

20

7

-

113

 

 

(Reversal of) provision for credit losses - loans

2,022

915

(1,225

)

(788

)

(8

)

-

916

Balance as of September 30, 2021

$

27,336

$

43,342

$

3,702

$

3,598

$

8

$

-

$

77,986

 

Nine Months Ended September 30, 2021

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of December 31, 2020

$

28,443

$

39,330

$

8,194

$

2,687

$

4

$

568

$

79,226

 

 

 

Day 1 effect of CECL

(4,225

)

9,605

(961

)

2,697

9

(568

)

6,557

 

Balance as of January 1, 2021 as adjusted for changes in accounting principle

24,218

48,935

7,233

5,384

13

-

85,783

 

 

Charge-offs

(304

)

(1,628

)

-

(7

)

-

-

(1,939

)

 

Recoveries

74

85

-

20

9

-

188

 

Provision for (reversal of) credit losses - loans

3,348

(4,050

)

(3,531

)

(1,799

)

(14

)

-

(6,046

)

Balance as of September 30, 2021

$

27,336

$

43,342

$

3,702

$

3,598

$

8

$

-

$

77,986

 

On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the ACL. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our ACL for loans of $6.6 million, which did not impact our consolidated income statement.

29

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 5. Loans and the Allowance for Credit Losses – (continued)

Three Months Ended September 30, 2020

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of June 30, 2020

$

9,345

$

22,655

$

8,026

$

1,690

$

5

$

27,003

$

68,724

 

 

Charge-offs

(48

)

-

-

(209

)

-

-

(257

)

 

Recoveries

-

800

-

-

-

-

800

 

 

Provision for (reversal of) credit losses - loans

14,861

16,623

(1,044

)

1,019

(2

)

(26,457

)

5,000

 

 

Balance as of September 30, 2020

$

24,158

$

40,078

$

6,982

$

2,500

$

3

$

546

$

74,267

 

 

 

Nine Months Ended September 30, 2020

 

 

 

 

 

 

Commercial

 

Commercial

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

real estate

 

construction

 

real estate

 

Consumer

 

Unallocated

 

Total

 

 

(dollars in thousands)

Balance as of December 31, 2019

 

$

8,349

 

 

$

20,853

 

 

$

7,304

 

$

1,685

 

 

$

3

 

 

$

99

 

$

38,293

 

 

Charge-offs

 

 

(552

)

 

 

-

 

 

-

 

 

(278

)

 

 

(3

)

 

 

-

 

 

(833

)

 

Recoveries

 

 

2

 

 

 

802

 

 

 

-

 

 

-

 

 

 

3

 

 

 

-

 

 

807

 

 

Provision for (reversal of) credit losses - loans

 

 

16,359

 

 

18,423

 

 

 

(322

)

 

1,093

 

 

-

 

 

447

 

 

36,000

 

 

Balance as of September 30, 2020

 

$

24,158

 

 

$

40,078

 

 

$

6,982

 

$

2,500

 

 

$

3

 

 

$

546

 

$

74,267

 

Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2021:

Pre-Modification Outstanding

Post-Modification Outstanding

Number of Loans

Recorded Investment

Recorded Investment

Troubled debt restructurings:

(dollars in thousands)

Commercial

4

$

1,276

$

1,276

Commercial real estate

10

35,595

35,595

Commercial construction

1

1,641

1,641

Residential real estate

3

1,758

1,758

Total

18

$

40,270

$

40,270

Schedule of Composition of Loans by Loan Segments

The following table sets forth the composition of these loans by loan segments as of September 30, 2021:

Unpaid

Number of Loans

Principal Balance

(dollars in thousands)

Commercial

4

$

309

Commercial real estate

6

9,988

Total

10

$

10,297

Schedule of ACL for off-balance sheet credit exposure

The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the ACL for unfunded commitments for the three and nine months ended September 30, 2021 (dollars in thousands):

Three Months Ended

September 30, 2021

 

Balance as of beginning of period

$

2,380

Provision for (reversal of) credit losses - unfunded commitments

184

Balance as of end of period

$

2,564

Nine Months Ended

September 30, 2021

 

Balance as of beginning of period

$

-

Day 1 Effect of CECL

2,833

Provision for (reversal of) credit losses - unfunded commitments

(269)

Balance as of end of period

$

2,564

Schedule of (Reversal of) provision for credit losses

The following table summarizes the provision for (reversal of) provision for credit losses for the three and nine months ended September 30, 2021 (dollars in thousands):

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

 

Provision for (reversal of) credit losses - loans

$

916

$

(6,046)

Provision for (reversal of) credit losses - unfunded commitments

184

(269)

Provision for (reversal of) credit losses

$

1,100

$

(6,315)

v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of September 30, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

September 30, 2021

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

 

Total Fair Value

 

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant

Unobservable

Inputs

(Level 3)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

Federal agency obligations

 

$

51,048

 

$

-

 

$

51,048

 

$

-

Residential mortgage pass-through securities

 

 

256,055

 

 

-

 

 

256,055

 

 

-

Commercial mortgage pass-through securities

 

 

10,526

 

 

-

 

 

10,526

 

 

-

Obligations of U.S. states and political subdivision

 

 

130,274

 

 

-

 

 

121,638

 

 

8,636

Corporate bonds and notes

 

 

11,089

 

 

-

 

 

11,089

 

 

-

Asset-backed securities

 

 

2,722

 

 

-

 

 

2,722

 

 

-

Certificates of deposit

 

 

150

 

 

-

 

 

150

 

 

-

Other securities

 

 

1,020

 

 

1,020

 

 

-

 

 

-

Total available-for-sale

 

$

462,884

 

$

1,020

 

$

453,228

 

$

8,636

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

 

13,700

 

 

11,709

 

 

1,991

 

 

-

Derivatives

 

1,296

 

-

 

1,296

 

-

Total assets

$

477,880

$

12,729

 

$

456,515

$

8,636

34

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 6. Fair Value Measurements and Fair Value of Financial Instruments – (continued)

December 31, 2020

Fair Value Measurements at Reporting Date Using

Total Fair Value

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

Significant

Other

Observable

Inputs

(Level 2)

Significant

Unobservable

Inputs

(Level 3)

(dollars in thousands)

Recurring fair value measurements:

Assets

Investment securities:

Available-for-sale:

Federal agency obligations

$

38,458

$

-

$

38,458

$

-

Residential mortgage pass-through securities

270,884

-

270,884

-

Commercial mortgage pass-through securities

6,922

-

6,922

-

Obligations of U.S. states and political subdivision

142,808

-

133,964

8,844

Corporate bonds and notes

25,095

-

25,095

-

Asset-backed securities

3,480

-

3,480

-

Certificates of deposit

151

-

151

-

Other securities

 

157

 

157

 

-

 

-

Total available-for-sale

487,955

$

157

$

478,954

$

8,844

 

Equity securities

13,387

13,387

-

-

Total assets

$

501,342

$

13,544

$

478,954

$

8,844

 

Liabilities

Derivatives

$

(2,119)

$

-

$

(2,119)

$

-

Total liabilities

$

(2,119)

$

-

$

(2,119)

$

-

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

For assets measured at fair value on a nonrecurring basis, the fair value measurements as of September 30, 2021 and December 31, 2020 are as follows:

Fair Value Measurements at Reporting Date Using

Quoted

Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets measured at fair value on a nonrecurring

September 30,

Assets

Inputs

Inputs

basis:

2021

(Level 1)

(Level 2)

(Level 3)

Collateral dependent loans:

(dollars in thousands)

Commercial

$

12,966

$

-

$

-

$

12,966

Commercial real estate

16,407

-

-

16,407

Residential real estate

2,251

-

-

2,251

Collateral dependent loans – Collateral dependent loans as of September 30, 2021 that required a valuation allowance were $48.2 million with a related valuation allowance of $16.6 million.

Fair Value Measurements at Reporting Date Using

Quoted

Prices

in Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Assets measured at fair value on a nonrecurring

December 31,

Assets

Inputs

Inputs

basis:

2020

(Level 1)

(Level 2)

(Level 3)

Impaired loans:

(dollars in thousands)

Commercial

$

10,751

$

-

$

-

$

10,751

Commercial real estate

1,393

-

-

1,393

Fair Value, Recurring basis [Table Text Block]

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended September 30, 2021 and for the year ended December 31, 2020:

Municipal

Securities

(dollars in thousands)

Balance as of December 31, 2020

$

8,844

Principal paydowns

(208

)

Balance as of September 30, 2021

$

8,636

Municipal

Securities

(dollars in thousands)

Balance as of December 31, 2019

$

9,114

Principal paydowns

(270)

 

Balance as of December 31, 2020

$

8,844

Significant unobservable inputs used in fair value measurements [Table Text Block]

The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2021

Valuation

Unobservable

Fair Value

Techniques

Input

Rate

Securities available-for-sale:

(dollars in thousands)

Municipal securities

$

8,636

Discounted cash flows

Discount rate

2.9

%

December 31, 2020

Valuation

Unobservable

Fair Value

Techniques

Input

Rate

Securities available-for-sale:

(dollars in thousands)

Municipal securities

$

8,844

Discounted cash flows

Discount rate

2.9

%

Fair Value Measurements, Nonrecurring [Table Text Block]

Nonrecurring basis: The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy.

September 30, 2021

Valuation

Unobservable

(dollars in thousands)

Fair Value

Techniques

Input

Range (weighted average)

Collateral dependent:

Commercial

$

780

Appraisals of collateral value

Comparable sales

0% - 5% (2%)

 

Commercial

$

12,186

Market approach (100)

Average transfer price as a price to unpaid principal balance

48 – 53 (49)

 

Commercial real estate

$

16,407

Appraisals of collateral value

Comparable sales

0% - 25% (8%)

 

Residential real estate

$

2,251

Appraisals of collateral value

Comparable sales

1% - 15% (6%)

 

December 31, 2020

Valuation

Unobservable

(dollars in thousands)

Fair Value

Techniques

Input

Range (weighed average)

Impaired loans:

Commercial

$

10,524

Market approach (100%)

Average transfer price as a price to unpaid principal balance

48 - 53 (49)

 

Commercial

$

227

Appraisals of collateral value

Adjustment for comparable sales

1% to +5% (+2%)

 

Commercial real estate

$

1,393

Appraisals of collateral value

Adjustment for comparable sales

-25% to +20% (-8%)

Fair Value, by Balance Sheet Grouping [Table Text Block]

As of September 30, 2021 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement, in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2021 and December 31, 2020:

Fair Value Measurements

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

Carrying

Fair

Assets

Inputs

Inputs

Amount

Value

(Level 1)

(Level 2)

(Level 3)

(dollars in thousands)

September 30, 2021

Financial assets:

Cash and due from banks

$

413,195

$

413,195

$

413,195

$

-

$

-

Securities available-for-sale

462,884

462,884

1,020

453,228

8,636

Investment in restricted stocks

18,106

n/a

n/a

n/a

n/a

Equity securities

13,700

13,700

11,709

1,991

-

Net loans

6,498,453

6,567,363

-

-

6,567,363

Derivatives

1,296

1,296

-

1,296

-

Accrued interest receivable

33,610

33,610

-

1,356

32,254

 

Financial liabilities:

Noninterest-bearing deposits

1,500,754

1,500,754

1,500,754

-

-

Interest-bearing deposits

4,897,584

4,899,141

3,675,673

1,223,468

-

Borrowings

253,225

255,099

-

255,099

-

Subordinated debentures

152,875

164,378

-

164,378

-

Accrued interest payable

2,879

2,879

-

2,879

-

 

December 31, 2020

Financial assets:

Cash and due from banks

$

303,756

$

303,756

$

303,756

$

-

$

-

Investment securities available-for-sale

487,955

487,955

157

478,954

8,844

Restricted investment in bank stocks

25,099

n/a

n/a

n/a

n/a

Equity securities

13,387

13,387

13,387

-

-

Net loans

6,157,081

6,244,037

-

-

6,244,037

Accrued interest receivable

35,317

35,317

-

1,764

33,553

 

Financial liabilities:

Noninterest-bearing deposits

1,339,108

1,339,108

1,339,108

-

-

Interest-bearing deposits

4,620,116

4,633,961

3,155,983

1,477,978

-

Borrowings

425,954

429,671

-

429,671

-

Subordinated debentures

202,648

214,113

-

214,113

-

Derivatives

2,119

2,119

-

2,119

-

Accrued interest payable

3,687

3,687

-

3,687

-

v3.21.2
Comprehensive Income (Tables)
 9 Months Ended
Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented:

Details about Accumulated Other

Comprehensive Income Components

Amounts Reclassified from Accumulated

Other Comprehensive Income

Affected Line item in the

Statement Where Net Income is Presented

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Sale of investment securities

$

-

$

-

$

195

$

29

Net (losses) gains on sales of securities available-for-sale Income tax expense

available-for-sale

-

-

(48

)

(6

)

$

-

$

-

$

147

$

23

 

Net interest income on swaps

$

(328

)

$

(631

)

$

(1,543

)

$

(942

)

Interest expense

90

196

434

265

Income tax expense

$

(238

)

$

(435

)

$

(1,109

)

$

(677

)

 

Amortization of pension plan net

$

(75

)

$

(75

)

$

(225

)

$

(226

)

Other components of net periodic pension expense

actuarial losses

21

21

63

63

Income tax benefit

$

(54

)

$

(54

)

$

(162

)

$

(163

)

 

Total reclassification

$

(292

)

$

(489

)

$

(1,124

)

$

(817

)

Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive income (loss) as of September 30, 2021 and December 31, 2020 consisted of the following:

September 30,

December 31,

2021

2020

(dollars in thousands)

Investment securities available-for-sale, net of tax

$

1,475

$

7,859

 

Cash flow hedge, net of tax

932

(1,520

)

Defined benefit pension plan, net of tax

(3,380

)

(3,542

)

Total

$

(973

)

$

2,797

 

v3.21.2
Stock Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2021
Share-based Payment Arrangement [Abstract]  
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Activity in the Company’s options for the nine months ended September 30, 2021 was as follows:

Number of

Stock

Options

Weighted-

Average

Exercise

Price

Weighted-

Average

Remaining

Contractual

Term

(in years)

Aggregate

Intrinsic Value

Outstanding as of December 31, 2020

38,013

$

9.03

Granted

-

-

Exercised

(5,449

)

8.34

Forfeited/cancelled/expired

-

-

Outstanding as of September 30, 2021

32,564

$

9.15

1.0

$

554,374

 

Exercisable as of September 30, 2021

32,564

$

9.15

1.0

$

554,374

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

Activity in the Company’s restricted shares for the nine months ended September 30, 2021 was as follows:

Weighted-

Average

Nonvested

Grant Date

Shares

Fair Value

Nonvested as of December 31, 2020

113,114

$

18.17

Granted

49,971

25.33

Vested

(68,142

)

17.16

Forfeited/cancelled/expired

(3,071

)

23.76

Nonvested September 30, 2021

91,872

$

22.62

Schedule of Unearned Performance Unit Awards [Table Text Block]

A summary of the status of unearned performance unit awards and the change during the period is presented in the table below:

Weighted

Average Grant

Units

Units

Date Fair

(expected)

(maximum)

Value

Unearned as of December 31, 2020

147,636

$

17.29

Awarded

37,543

25.24

Change in estimate

37,184

15.57

Vested shares

(29,421

)

31.35

Forfeited/cancelled/expired

(11,153

)

17.06

Unearned as of September 30, 2021

181,789

233,638

$

16.32

Schedule of Unearned Restricted Unit Awards [Table Text Block]

A summary of the status of unearned restricted stock units and the changes in restricted stock units during the period is presented in the table below:

Weighted

Units

Average Grant

(expected)

Date Fair Value

Unearned as of December 31, 2020

169,313

$

14.07

Awarded

45,027

25.24

Vested shares

(68,916

)

16.29

Forfeited/cancelled/expired

(8,476

)

15.83

Unearned as of September 30, 2021

136,948

$

16.52

v3.21.2
Components of Net Periodic Pension Cost (Tables)
 9 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs [Table Text Block]

The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until September 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated.

Three Months Ended

September 30,

Affected Line Item in the Consolidated

Statements of Income

 

 

2021

 

2020

 

 

(dollars in thousands)

Service cost

 

$

-

 

 

$

-

 

Interest cost

 

 

71

 

 

 

91

 

Other components of net periodic pension expense

 

Expected return on plan assets

 

 

(213

)

 

 

(196

)

Other components of net periodic pension expense

Net amortization

 

 

75

 

 

 

75

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(67

)

 

$

(30

)

Nine Months Ended

September 30,

Affected Line Item in the Consolidated

Statements of Income

 

 

2021

 

2020

 

 

(dollars in thousands)

Service cost

 

$

-

 

 

$

-

 

Interest cost

 

 

213

 

 

 

273

 

Other components of net periodic pension expense

 

Expected return on plan assets

 

 

(639

)

 

 

(588

)

Other components of net periodic pension expense

Net amortization

 

 

225

 

 

 

226

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(201

)

 

$

(89

)

v3.21.2
FHLB Borrowings (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments [Table Text Block]

The Company’s FHLB borrowings and weighted average interest rates are summarized below:

September 30, 2021

December 31, 2020

Amount

Rate

Amount

Rate

(dollars in thousands)

Total FHLB borrowings

$

253,225

1.23

%

$

425,954

1.07

%

 

By remaining period to maturity:

Less than 1 year

$

168,213

1.00

%

$

297,570

0.84

%

1 year through less than 2 years

57,360

1.93

%

75,644

1.42

%

2 years through less than 3 years

-

-

50,000

1.84

%

3 years through less than 4 years

25,000

1.00

%

-

-

4 years through 5 years

2,050

2.23

%

 

-

-

After 5 years

729

2.91

%

 

2,824

2.42

%

Total FHLB borrowings

253,352

1.23

%

426,038

1.07

%

Fair value discount

(127

)

(84

)

FHLB borrowings, net

$

253,225

$

425,954

v3.21.2
Subordinated Debentures (Tables)
 9 Months Ended
Sep. 30, 2021
Subordinated Borrowings [Abstract]  
Schedule of Subordinated Debentures [Table Text Block]

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of September 30, 2021 and December 31, 2020.

Issuance Date

Securities

Issued

Liquidation Value

Coupon Rate

Maturity

Redeemable by

Issuer Beginning

12/19/2003

$ 5,000,000

$1,000 per Capital Security

Floating 3-month LIBOR + 285 Basis Points

01/23/2034

01/23/2009

v3.21.2
Authoritative Accounting Guidance (Narrative) (Details) - USD ($)
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually evaluated loans $ 103,211,000 $ 80,550,000
Collectively evaluated loans 6,469,284,000 $ 5,192,274,000
Financial Asset Acquired with Credit Deterioration [Member] | Maximum [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually evaluated loans 250,000  
Financial Asset Acquired with Credit Deterioration [Member] | Minimum [Member]    
Financing Receivable, Allowance for Credit Loss [Line Items]    
Collectively evaluated loans $ 250,000  
v3.21.2
Authoritative Accounting Guidance (Schedule of Adoption of CECL Standard Resulted Adjustment in Financial Statements) (Details)
$ in Thousands
Jan. 02, 2021
USD ($)
Allowance for credit losses ("ACL") (loans) $ 944
Adjustment related to purchased credit-impaired loan marks [1]
Total ACL - loans 944
ACL (unfunded credit commitments) 1,981
Total impact of CECL adoption 2,925
Change in Consolidated Statement of Condition [Member]  
Allowance for credit losses ("ACL") (loans) 1,350
Adjustment related to purchased credit-impaired loan marks 5,207 [1]
Total ACL - loans 6,557
ACL (unfunded credit commitments) 2,833
Total impact of CECL adoption 9,390
Tax Effect [Member]  
Allowance for credit losses ("ACL") (loans) 406
Adjustment related to purchased credit-impaired loan marks [1]
Total ACL - loans 406
ACL (unfunded credit commitments) 852
Total impact of CECL adoption $ 1,258
[1] This amount represents a gross-up of the balance sheet related to nonaccretable credit marks of purchased credit-impaired loans resulting from adoption of CECL on January 1, 2021.
v3.21.2
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Earnings per common share:        
Net income $ 32,097 $ 24,786 $ 97,315 $ 45,648
Earnings allocated to participating securities (76) (133) (250) (218)
Income attributable to common stock $ 32,021 $ 24,653 $ 97,065 $ 45,430
Weighted average common shares outstanding, including participating securities 39,741 39,656 39,770 39,624
Weighted average participating securities (95) (119) (102) (125)
Weighted average common shares outstanding 39,646 39,537 39,668 39,499
Incremental shares from assumed conversions of options, performance units and non-participating restricted shares 223 117 220 111
Weighted average common and equivalent shares outstanding 39,869 39,654 39,888 39,610
Earnings per common share:        
Basic $ 0.81 $ 0.62 $ 2.45 $ 1.15
Diluted $ 0.80 $ 0.62 $ 2.43 $ 1.15
v3.21.2
Investment Securities (Details) - USD ($)
$ in Millions
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]    
Available-for-sale Securities Pledged as Collateral $ 88.1 $ 107.6
Description of Holding Securities there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.
Accrued interest receivable for investment securities available for sale $ 1.4 $ 1.7
v3.21.2
Investment Securities (Details) - Unrealized gains on investment securities - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Securities available-for-sale    
Securities, Amortized Cost $ 460,847 $ 477,326
Securities, Gross Unrealized Gains 5,631 11,015
Securities, Gross Unrealized Losses (3,594) (386)
Securities available-for-sale 462,884 487,955
Securities, Allowance for Investment Credit Losses  
Federal agency obligations [Member]    
Securities available-for-sale    
Securities, Amortized Cost 50,016 37,015
Securities, Gross Unrealized Gains 1,032 1,508
Securities, Gross Unrealized Losses (65)
Securities available-for-sale 51,048 38,458
Securities, Allowance for Investment Credit Losses  
Residential mortgage pass-through securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 255,488 266,114
Securities, Gross Unrealized Gains 2,640 4,811
Securities, Gross Unrealized Losses (2,073) (41)
Securities available-for-sale 256,055 270,884
Securities, Allowance for Investment Credit Losses  
Commercial mortgage pass-through securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 10,859 6,906
Securities, Gross Unrealized Gains 135 203
Securities, Gross Unrealized Losses (468) (187)
Securities available-for-sale 10,526 6,922
Securities, Allowance for Investment Credit Losses  
Obligations of U.S. states and political subdivisions [Member]    
Securities available-for-sale    
Securities, Amortized Cost 129,632 138,539
Securities, Gross Unrealized Gains 1,693 4,269
Securities, Gross Unrealized Losses (1,051)
Securities available-for-sale 130,274 142,808
Securities, Allowance for Investment Credit Losses  
Corporate bonds and notes [Member]    
Securities available-for-sale    
Securities, Amortized Cost 10,965 24,925
Securities, Gross Unrealized Gains 124 222
Securities, Gross Unrealized Losses (52)
Securities available-for-sale 11,089 25,095
Securities, Allowance for Investment Credit Losses  
Asset-backed securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 2,718 3,521
Securities, Gross Unrealized Gains 6
Securities, Gross Unrealized Losses (2) (41)
Securities available-for-sale 2,722 3,480
Securities, Allowance for Investment Credit Losses  
Certificates of deposit [Member]    
Securities available-for-sale    
Securities, Amortized Cost 149 149
Securities, Gross Unrealized Gains 1 2
Securities, Gross Unrealized Losses
Securities available-for-sale 150 151
Securities, Allowance for Investment Credit Losses  
Other securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 1,020 157
Securities, Gross Unrealized Gains
Securities, Gross Unrealized Losses
Securities available-for-sale 1,020 $ 157
Securities, Allowance for Investment Credit Losses  
v3.21.2
Investment Securities (Details) - Investments classified by maturity date - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Securities Available-for-Sale:    
Due in one year or less, amortized cost $ 4,439  
Due in one year or less, fair value 4,451  
Due after one year through five years, amortized cost 9,911  
Due after one year through five years, fair value 10,024  
Due after five years through ten years, amortized cost 7,777  
Due after five years through ten years, fair value 8,029  
Due after ten years, amortized cost 171,353  
Due after ten years, fair value 172,779  
Total, amortized cost 460,847 $ 477,326
Total, fair value 462,884 487,955
Residential mortgage pass-through securities [Member]    
Securities Available-for-Sale:    
Total, amortized cost 255,488 266,114
Total, fair value 256,055 270,884
Commercial mortgage pass-through securities [Member]    
Securities Available-for-Sale:    
Total, amortized cost 10,859 6,906
Total, fair value 10,526 6,922
Other securities [Member]    
Securities Available-for-Sale:    
Total, amortized cost 1,020 157
Total, fair value $ 1,020 $ 157
v3.21.2
Investment Securities (Details) - Schedule of realized gains and losses - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]        
Proceeds $ 19,624
Gross gains on sales/redemption of securities 195 29
Gross losses on sales/redemptions of securities
Net gain on sales/redemptions of securities 195 29
Less: tax provision on net gain (48) (6)
Net gain on sales/redemptions of securities, after tax $ 147 $ 23
v3.21.2
Investment Securities (Details) - Schedule of unrealized losses not recognized in income - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value $ 251,268 $ 40,838
Investment Securities Available-for-Sale: Total, Unrealized Losses (3,594) (386)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 247,028 38,365
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (3,191) (345)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 4,240 2,473
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (403) (41)
Residential mortgage pass-through securities [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 171,592 20,895
Investment Securities Available-for-Sale: Total, Unrealized Losses (2,073) (41)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 171,592 20,886
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (2,073) (41)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 9
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses
Commercial mortgage pass-through securities [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 6,349 3,954
Investment Securities Available-for-Sale: Total, Unrealized Losses (468) (187)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 2,658 3,954
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (67) (187)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 3,691
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (401)
Obligations of U.S. states and political subdivisions [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 71,938  
Investment Securities Available-for-Sale: Total, Unrealized Losses (1,051)  
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 71,938  
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (1,051)  
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value  
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses  
Asset-backed securities [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 1,389 3,083
Investment Securities Available-for-Sale: Total, Unrealized Losses (2) (41)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 840 622
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 549 2,461
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses $ (2) (41)
Federal agency obligations [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value   8,978
Investment Securities Available-for-Sale: Total, Unrealized Losses   (65)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value   8,975
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses   (65)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value   3
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses  
Corporate bonds and notes [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value   3,928
Investment Securities Available-for-Sale: Total, Unrealized Losses   (52)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value   3,928
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses   (52)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value  
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses  
v3.21.2
Derivatives (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Mar. 03, 2020
Jan. 02, 2020
Apr. 13, 2017
Notional Amount of Interest Rate Cash Flow Hedge Derivatives $ 200.0   $ 200.0   $ 25.0 $ 25.0 $ 25.0
Interest expense on derivatives $ 0.3 $ 0.6 $ 1.5 $ 0.9      
Minimum [Member]              
Federal Home Loan Bank advance Fixed-rates of interest 0.631%   0.88%        
Expiration dates Mar. 31, 2026   Jan. 31, 2022        
Maximum [Member]              
Federal Home Loan Bank advance Fixed-rates of interest 0.955%   1.93%        
Expiration dates Jan. 31, 2028   Apr. 30, 2022        
v3.21.2
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income - Interest Rate Contracts [Member] - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in OCI (Effective Portion) $ 1,890 $ (82) $ 1,872 $ (3,397)
Amount of (gain) loss reclassified from OCI to interest income 328 631 1,543 942
Amount of gain recognized in other Noninterest income (Ineffective Portion)
v3.21.2
Derivatives (Details) - Summary of cash flow hedges included in the consolidated balance sheets - Interest Rate Swap [Member] - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Derivative [Line Items]    
Interest rate swaps related to FHLB advances included in assets, Notional Amount $ 275,000 $ 175,000
Interest rate swaps related to FHLB advances included in assets, Fair Value $ 1,295 $ (2,119)
v3.21.2
Loans and the Allowance for Credit Losses (Details)
$ in Thousands
 9 Months Ended 12 Months Ended
Jan. 02, 2021
USD ($)
Sep. 30, 2021
USD ($)
Loans
Sep. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
PPP Loans   $ 177,800   $ 397,500
Non Accrual Contractual Due   90 days    
Loans Pledged as Collateral   $ 2,600,000   2,600,000
Provision for credit losses $ 6,600      
Loans performing under the restructured terms   41,200   23,700
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans   38,500   25,700
Troubled debt restructurings   79,700   $ 49,400
Specific allowance of TDR's   $ 10,500 $ 4,400  
Number of deferred loans | Loans   10   113
Deferred loan   $ 10,297   $ 207,000
Special Mention [Member]        
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]        
Deferred loan   $ 5,500    
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Composition of loan portfolio - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans $ 6,587,896 $ 6,247,681
Net deferred loan fees (11,457) (11,374)
Total loans receivable 6,576,439 6,236,307
Commercial Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans [1] 1,325,488 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 4,436,626 3,783,550
Commercial Construction Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 552,896 617,747
Residential Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 270,793 322,564
Consumer Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans $ 2,093 $ 1,853
[1] Included in commercial loans as of September 30, 2021 and December 31, 2020 were PPP loans of $177.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Loans held-for-sale - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount $ 5,596 $ 4,710
Commercial Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount 4,876 1,990
Residential Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount $ 720 $ 2,720
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Loans receivable on nonaccrual status - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 65,959 $ 61,696
Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 39,661  
Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 26,298  
Commercial Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 30,479 33,019
Commercial Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 27,993  
Commercial Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 2,486  
Commercial Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 28,578 10,111
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 11,668  
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 16,910  
Commercial Construction Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,336 14,015
Commercial Construction Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
Commercial Construction Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,336  
Residential Real Estate Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,566 4,551
Residential Real Estate Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
Residential Real Estate Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status 3,566  
Consumer Portfolio Segment [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status
Consumer Portfolio Segment [Member] | Nonaccrual Loans with an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
Consumer Portfolio Segment [Member] | Nonaccrual Loans without an ACL [Member]    
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status  
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Origination and Risk Designation - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 $ 1,562,805  
2020 709,534  
2019 588,452  
2018 607,369  
2017 660,099  
Prior 1,238,555  
Revolving loans 1,221,082  
Gross loans 6,587,896 $ 6,247,681
Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 363,015  
2020 78,941  
2019 75,046  
2018 74,564  
2017 107,932  
Prior 143,671  
Revolving loans 482,319  
Gross loans [1] 1,325,488 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,179,998  
2020 592,423  
2019 450,320  
2018 500,477  
2017 519,308  
Prior 1,006,714  
Revolving loans 187,386  
Gross loans 4,436,626 3,783,550
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,405  
2020 7,370  
2019 37,492  
2018 2,600  
2017 2,247  
Prior 490  
Revolving loans 501,292  
Gross loans 552,896 617,747
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 18,387  
2020 30,704  
2019 25,544  
2018 29,702  
2017 30,577  
Prior 85,919  
Revolving loans 49,960  
Gross loans 270,793 322,564
Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020 96  
2019 50  
2018 26  
2017 35  
Prior 1,761  
Revolving loans 125  
Gross loans 2,093 1,853
Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,560,687  
2020 705,034  
2019 582,587  
2018 572,751  
2017 646,010  
Prior 1,142,056  
Revolving loans 1,170,213  
Gross loans 6,379,338 6,047,888
Pass [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 362,839  
2020 78,941  
2019 73,202  
2018 60,881  
2017 98,178  
Prior 118,326  
Revolving loans 465,494  
Gross loans 1,257,861 1,447,097
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,178,056  
2020 587,923  
2019 446,299  
2018 479,741  
2017 514,973  
Prior 944,052  
Revolving loans 171,963  
Gross loans 4,323,007 3,700,498
Pass [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,405  
2020 7,370  
2019 37,492  
2018 2,600  
2017 2,247  
Prior 490  
Revolving loans 486,404  
Gross loans 538,008 587,266
Pass [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 18,387  
2020 30,704  
2019 25,544  
2018 29,503  
2017 30,577  
Prior 77,427  
Revolving loans 46,227  
Gross loans 258,369 311,174
Pass [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020 96  
2019 50  
2018 26  
2017 35  
Prior 1,761  
Revolving loans 125  
Gross loans 2,093 1,853
Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019 3,589  
2018 2,779  
2017 9,988  
Prior 30,748  
Revolving loans 20,420  
Gross loans 67,524 79,868
Special Mention [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019 225  
2018 904  
2017 5,653  
Prior 4,198  
Revolving loans 13,787  
Gross loans 24,767 30,725
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019 3,364  
2018 1,875  
2017 4,335  
Prior 26,550  
Revolving loans 6,633  
Gross loans 42,757 49,143
Special Mention [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Special Mention [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Special Mention [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 2,118  
2020 4,500  
2019 2,276  
2018 31,839  
2017 4,101  
Prior 65,751  
Revolving loans 30,449  
Gross loans 141,034 119,710
Substandard [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 176  
2020  
2019 1,619  
2018 12,779  
2017 4,101  
Prior 21,147  
Revolving loans 3,038  
Gross loans 42,860 43,930
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,942  
2020 4,500  
2019 657  
2018 18,861  
2017  
Prior 36,112  
Revolving loans 8,790  
Gross loans 70,862 33,909
Substandard [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans 14,888  
Gross loans 14,888 30,481
Substandard [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018 199  
2017  
Prior 8,492  
Revolving loans 3,733  
Gross loans 12,424 11,390
Substandard [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans 215
Doubtful [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans 215
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Doubtful [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Doubtful [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
Doubtful [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans  
Gross loans
[1] Included in commercial loans as of September 30, 2021 and December 31, 2020 were PPP loans of $177.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Credit Quality Indicators - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Impaired [Line Items]    
Gross loans $ 6,587,896 $ 6,247,681
Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 6,379,338 6,047,888
Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 67,524 79,868
Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 141,034 119,710
Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 215
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans [1] 1,325,488 1,521,967
Commercial Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 1,257,861 1,447,097
Commercial Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 24,767 30,725
Commercial Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 42,860 43,930
Commercial Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 215
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 4,436,626 3,783,550
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 4,323,007 3,700,498
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 42,757 49,143
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 70,862 33,909
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 552,896 617,747
Commercial Construction Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 538,008 587,266
Commercial Construction Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Commercial Construction Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 14,888 30,481
Commercial Construction Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 270,793 322,564
Residential Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 258,369 311,174
Residential Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Residential Real Estate Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 12,424 11,390
Residential Real Estate Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Consumer Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 2,093 1,853
Consumer Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 2,093 1,853
Consumer Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Consumer Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
Consumer Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans
[1] Included in commercial loans as of September 30, 2021 and December 31, 2020 were PPP loans of $177.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Fair value of collateral
$ in Thousands
Sep. 30, 2021
USD ($)
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral $ 112,415
Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 86,240
Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 26,175
Commercial Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 32,953
Commercial Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 6,778
Commercial Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 26,175
Commercial Real Estate Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 56,622
Commercial Real Estate Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 56,622
Commercial Real Estate Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Commercial Construction Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 12,582
Commercial Construction Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 12,582
Commercial Construction Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Residential Real Estate Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 10,258
Residential Real Estate Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 10,258
Residential Real Estate Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Consumer Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Consumer Portfolio Segment [Member] | Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
Consumer Portfolio Segment [Member] | Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Dec. 31, 2020
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment     $ 54,092
No related allowance recorded, Unpaid Principal Balance     55,914
Impaired loans with No Related Allowance Average Recorded Investment $ 50,034 $ 49,425  
Impaired loans with No Related Allowance Interest Income Recognized 231 657  
With an allowance recorded, Recorded Investment     26,458
With an allowance recorded, Unpaid Principal Balance     71,844
With an allowance recorded, Related Allowance     14,314
Impaired loans With An Allowance Recorded Average Recorded Investment 28,941 29,113  
Impaired loans With An Allowance Recorded Interest Income Recognized 5 5  
Total, Recorded Investment     80,550
Total, Unpaid Principal Balance     127,758
Total, Related Allowance     14,314
Total Impaired Loans Average Recorded Investment 78,975 78,538  
Total Impaired Loans Interest Income Recognized 236 662  
Commercial Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment     11,325
No related allowance recorded, Unpaid Principal Balance     11,835
Impaired loans with No Related Allowance Average Recorded Investment 12,266 12,100  
Impaired loans with No Related Allowance Interest Income Recognized 50 150  
With an allowance recorded, Recorded Investment     23,736
With an allowance recorded, Unpaid Principal Balance     69,122
With an allowance recorded, Related Allowance     12,985
Impaired loans With An Allowance Recorded Average Recorded Investment 23,024 23,195  
Impaired loans With An Allowance Recorded Interest Income Recognized    
Total, Recorded Investment     35,061
Total, Unpaid Principal Balance     80,957
Total, Related Allowance     12,985
Total Impaired Loans Average Recorded Investment 35,290 35,295  
Total Impaired Loans Interest Income Recognized 50 150  
Commercial Real Estate Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment     13,105
No related allowance recorded, Unpaid Principal Balance     13,449
Impaired loans with No Related Allowance Average Recorded Investment 12,460 12,415  
Impaired loans with No Related Allowance Interest Income Recognized 74 229  
With an allowance recorded, Recorded Investment     2,722
With an allowance recorded, Unpaid Principal Balance     2,722
With an allowance recorded, Related Allowance     1,329
Impaired loans With An Allowance Recorded Average Recorded Investment 2,722 2,722  
Impaired loans With An Allowance Recorded Interest Income Recognized  
Total, Recorded Investment     15,827
Total, Unpaid Principal Balance     16,171
Total, Related Allowance     1,329
Total Impaired Loans Average Recorded Investment 15,182 15,137  
Total Impaired Loans Interest Income Recognized 74 229  
Commercial Construction Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment     24,284
No related allowance recorded, Unpaid Principal Balance     24,907
Impaired loans with No Related Allowance Average Recorded Investment 21,297 21,149  
Impaired loans with No Related Allowance Interest Income Recognized 91 262  
Impaired loans With An Allowance Recorded Average Recorded Investment 2,934 2,934  
Impaired loans With An Allowance Recorded Interest Income Recognized  
Total, Recorded Investment     24,284
Total, Unpaid Principal Balance     24,907
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 24,231 24,083  
Total Impaired Loans Interest Income Recognized 91 262  
Residential Real Estate Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment     5,378
No related allowance recorded, Unpaid Principal Balance     5,723
Impaired loans with No Related Allowance Average Recorded Investment 4,011 3,761  
Impaired loans with No Related Allowance Interest Income Recognized 16 16  
Impaired loans With An Allowance Recorded Average Recorded Investment 261 262  
Impaired loans With An Allowance Recorded Interest Income Recognized 5 5  
Total, Recorded Investment     5,378
Total, Unpaid Principal Balance     5,723
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 4,272 4,023  
Total Impaired Loans Interest Income Recognized $ 21 $ 21  
Consumer Portfolio Segment [Member]      
Financing Receivable, Impaired [Line Items]      
No related allowance recorded, Recorded Investment    
No related allowance recorded, Unpaid Principal Balance    
Total, Recorded Investment    
Total, Unpaid Principal Balance    
Total, Related Allowance    
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Aging analysis - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Financing Receivable, Past Due [Line Items]    
Nonaccrual $ 65,959 $ 61,696
Total Past Due and Nonaccrual 83,482 98,000
Gross Loans 6,587,896 6,247,681
Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 30,479 33,019
Total Past Due and Nonaccrual 35,750 38,204
Gross Loans 2,093 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 28,578 10,111
Total Past Due and Nonaccrual 32,132 33,064
Gross Loans 270,793 3,783,550
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 3,336 14,015
Total Past Due and Nonaccrual 3,336 16,487
Gross Loans 552,896 617,747
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 3,566 4,551
Total Past Due and Nonaccrual 12,264 10,243
Gross Loans 4,436,626 322,564
Consumer Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual
Total Past Due and Nonaccrual 2
Gross Loans 1,325,488 1,853
Current [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 6,504,414 6,149,681
Current [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 1,289,738 1,483,763
Current [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 4,404,494 3,750,486
Current [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 549,560 601,260
Current [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 258,529 312,321
Current [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 2,093 1,851
30 - 59 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 729 18,544
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 391 1,445
30 - 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 13,258
30 - 59 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 2,472
30 - 59 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 338 1,367
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 2
60 - 89 Days Past Due [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 2,111 4,939
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 417 558
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 1,694 4,140
60 - 89 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual
60 - 89 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 241
60 - 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual
90 Days or Greater Past Due and Still Accruing [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 14,683 12,821
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 4,463 3,182
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 1,860 5,555
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual
90 Days or Greater Past Due and Still Accruing [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual 8,360 4,084
90 Days or Greater Past Due and Still Accruing [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Total Past Due and Nonaccrual
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Allowance for loan and lease losses - USD ($)
$ in Thousands
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Dec. 31, 2019
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment $ 15,895   $ 14,314      
ACL, Collectively evaluated for impairment 56,721   59,072      
ACL, Acquired portfolio     5,840      
ACL, Acquired with deteriorated credit quality individually analyzed 5,370        
Total 77,986 $ 78,684 79,226 $ 74,267 $ 68,724 $ 38,293
Gross loans            
Loans Receivable, Individually evaluated for impairment 103,211   80,550      
Loans Receivable, Collectively evaluated for impairment 6,469,284   5,192,274      
Loans Receivable, Acquired portfolio     961,340      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 15,401   13,517      
Total 6,587,896   6,247,681      
Commercial Portfolio Segment [Member]            
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment 14,630   12,985      
ACL, Collectively evaluated for impairment 9,487   15,412      
ACL, Acquired portfolio     46      
ACL, Acquired with deteriorated credit quality individually analyzed 3,219        
Total 27,336 25,567 28,443 24,158 9,345 8,349
Gross loans            
Loans Receivable, Individually evaluated for impairment 33,970   35,061      
Loans Receivable, Collectively evaluated for impairment 1,286,337   1,414,626      
Loans Receivable, Acquired portfolio     68,402      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 5,181   3,878      
Total [1] 1,325,488   1,521,967      
Commercial Real Estate Portfolio Segment [Member]            
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment 1,199   1,329      
ACL, Collectively evaluated for impairment 40,222   33,373      
ACL, Acquired portfolio     4,628      
ACL, Acquired with deteriorated credit quality individually analyzed 1,921        
Total 43,342 43,815 39,330 40,078 22,655 20,853
Gross loans            
Loans Receivable, Individually evaluated for impairment 50,642   15,827      
Loans Receivable, Collectively evaluated for impairment 4,380,004   2,959,978      
Loans Receivable, Acquired portfolio     802,190      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 5,980   5,555      
Total 4,436,626   3,783,550      
Commercial Construction Portfolio Segment [Member]            
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment        
ACL, Collectively evaluated for impairment 3,702   7,787      
ACL, Acquired portfolio     407      
ACL, Acquired with deteriorated credit quality individually analyzed        
Total 3,702 4,927 8,194 6,982 8,026 7,304
Gross loans            
Loans Receivable, Individually evaluated for impairment 12,582   24,284      
Loans Receivable, Collectively evaluated for impairment 540,314   574,118      
Loans Receivable, Acquired portfolio     19,345      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed        
Total 552,896   617,747      
Residential Real Estate Portfolio Segment [Member]            
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment 66        
ACL, Collectively evaluated for impairment 3,302   1,928      
ACL, Acquired portfolio     759      
ACL, Acquired with deteriorated credit quality individually analyzed 230        
Total 3,598 4,366 2,687 2,500 1,690 1,685
Gross loans            
Loans Receivable, Individually evaluated for impairment 6,017   5,378      
Loans Receivable, Collectively evaluated for impairment 260,536   241,925      
Loans Receivable, Acquired portfolio     71,177      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 4,240   4,084      
Total 270,793   322,564      
Consumer Portfolio Segment [Member]            
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment        
ACL, Collectively evaluated for impairment 8   4      
ACL, Acquired portfolio          
ACL, Acquired with deteriorated credit quality individually analyzed        
Total 8 9 4 3 5 3
Gross loans            
Loans Receivable, Individually evaluated for impairment        
Loans Receivable, Collectively evaluated for impairment 2,093   1,627      
Loans Receivable, Acquired portfolio     226      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed        
Total 2,093   1,853      
Unallocated [Member]            
Loans and the Allowance for Loan and Lease Losses (Details) - Allowance for loan and lease losses [Line Items]            
ACL, Individually evaluated for impairment          
ACL, Collectively evaluated for impairment     568      
ACL, Acquired portfolio          
ACL, Acquired with deteriorated credit quality individually analyzed          
Total $ 568 $ 546 $ 27,003 $ 99
[1] Included in commercial loans as of September 30, 2021 and December 31, 2020 were PPP loans of $177.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of allowance for loan losses - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance $ 78,684 $ 68,724 $ 79,226 $ 38,293
Day 1 effect of CECL     6,557  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     85,783  
Charge-offs (1,727) (257) (1,939) (833)
Recoveries 113 800 188 807
(Reversal of) provision for credit losses (loans) 916 5,000 (6,046) 36,000
Balance 77,986 74,267 77,986 74,267
Commercial Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 25,567 9,345 28,443 8,349
Day 1 effect of CECL     (4,225)  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     24,218  
Charge-offs (254) (48) (304) (552)
Recoveries 1 74 2
(Reversal of) provision for credit losses (loans) 2,022 14,861 3,348 16,359
Balance 27,336 24,158 27,336 24,158
Commercial Real Estate Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 43,815 22,655 39,330 20,853
Day 1 effect of CECL     2,697  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     48,935  
Charge-offs (1,473) (1,628)
Recoveries 85 800 85 802
(Reversal of) provision for credit losses (loans) 915 16,623 (4,050) 18,423
Balance 43,342 40,078 43,342 40,078
Commercial Construction Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 4,927 8,026 8,194 7,304
Day 1 effect of CECL     (961)  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     7,233  
Charge-offs
Recoveries
(Reversal of) provision for credit losses (loans) (1,225) (1,044) (3,531) (322)
Balance 3,702 6,982 3,702 6,982
Residential Real Estate Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 4,366 1,690 2,687 1,685
Day 1 effect of CECL     9,605  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     5,384  
Charge-offs (209) (7) (278)
Recoveries 20 20
(Reversal of) provision for credit losses (loans) (788) 1,019 (1,799) 1,093
Balance 3,598 2,500 3,598 2,500
Consumer Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 9 5 4 3
Day 1 effect of CECL     9  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     13  
Charge-offs (3)
Recoveries 7 9 3
(Reversal of) provision for credit losses (loans) (8) (2) (14)
Balance 8 3 8 3
Unallocated [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 27,003 568 99
Day 1 effect of CECL     (568)  
Balance as of January 1, 2021 as adjusted for changes in accounting principle      
Charge-offs
Recoveries
(Reversal of) provision for credit losses (loans) (26,457) 447
Balance $ 546 $ 546
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of Troubled Debt Restructuring by Class
$ in Thousands
 9 Months Ended
Sep. 30, 2021
USD ($)
Integer
Troubled debt restructurings:  
Number of Loans | Integer 18
Pre-Modification Outstanding Recorded Investment $ 40,270
Post-Modification Outstanding Recorded Investment $ 40,270
Commercial Portfolio Segment [Member]  
Troubled debt restructurings:  
Number of Loans | Integer 4
Pre-Modification Outstanding Recorded Investment $ 1,276
Post-Modification Outstanding Recorded Investment $ 1,276
Commercial Real Estate Portfolio Segment [Member]  
Troubled debt restructurings:  
Number of Loans | Integer 10
Pre-Modification Outstanding Recorded Investment $ 35,595
Post-Modification Outstanding Recorded Investment $ 35,595
Commercial Construction Portfolio Segment [Member]  
Troubled debt restructurings:  
Number of Loans | Integer 1
Pre-Modification Outstanding Recorded Investment $ 1,641
Post-Modification Outstanding Recorded Investment $ 1,641
Residential Real Estate Portfolio Segment [Member]  
Troubled debt restructurings:  
Number of Loans | Integer 3
Pre-Modification Outstanding Recorded Investment $ 1,758
Post-Modification Outstanding Recorded Investment $ 1,758
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of Composition of Loans by Loan Segments
$ in Thousands
Sep. 30, 2021
USD ($)
Loans
Dec. 31, 2020
USD ($)
Loans
Financing Receivable, Past Due [Line Items]    
Number of loans | Loans 10 113
Unpaid Principal Balance | $ $ 10,297 $ 207,000
Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Number of loans | Loans 4  
Unpaid Principal Balance | $ $ 309  
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Number of loans | Loans 6  
Unpaid Principal Balance | $ $ 9,988  
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of ACL for off-balance sheet credit exposure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Receivables [Abstract]    
Balance $ 2,380
Day 1 Effect of CECL   2,833
Provision for (reversal of) credit losses - unfunded commitments 184 (269)
Balance $ 2,564 $ 2,564
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of (Reversal of) provision for credit losses - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2021
Receivables [Abstract]    
Provision for (reversal of) credit losses - loans $ 916 $ (6,046)
Provision for (reversal of) credit losses - unfunded commitments 184 (269)
Provision for (reversal of) credit losses $ 1,100 $ (6,315)
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Impaired Financing Receivable, with Related Allowance, Recorded Investment   $ 26,458
Impaired Financing Receivable, Related Allowance $ 15,895 14,314
Impaired Loans [Member]    
Impaired Financing Receivable, with Related Allowance, Recorded Investment 48,200 26,500
Impaired Financing Receivable, Related Allowance $ 16,600 $ 14,300
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Available-for-sale:    
Securities available-for-sale $ 462,884 $ 487,955
Equity securities 13,700 13,387
LIABILITIES    
Derivatives   2,119
Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 1,020 157
Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 453,228 478,954
Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,636 8,844
Federal agency obligations [Member]    
Available-for-sale:    
Securities available-for-sale 51,048 38,458
Residential mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 256,055 270,884
Commercial mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 10,526 6,922
Obligations of U.S. states and political subdivisions [Member]    
Available-for-sale:    
Securities available-for-sale 130,274 142,808
Corporate bonds and notes [Member]    
Available-for-sale:    
Securities available-for-sale 11,089 25,095
Asset-backed securities [Member]    
Available-for-sale:    
Securities available-for-sale 2,722 3,480
Certificates of deposit [Member]    
Available-for-sale:    
Securities available-for-sale 150 151
Other securities [Member]    
Available-for-sale:    
Securities available-for-sale 1,020 157
Recurring [Member]    
Available-for-sale:    
Securities available-for-sale 462,884 487,955
Equity securities 13,700 13,387
Total assets 477,880 501,342
LIABILITIES    
Derivatives 1,296 (2,119)
Total liabilities   (2,119)
Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 1,020 157
Equity securities 11,709 13,387
Total assets 12,729 13,544
LIABILITIES    
Derivatives
Total liabilities  
Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 453,228 478,954
Equity securities 1,991  
Total assets 456,515 478,954
LIABILITIES    
Derivatives 1,296 (2,119)
Total liabilities   (2,119)
Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,636 8,844
Equity securities  
Total assets 8,636 8,844
LIABILITIES    
Derivatives
Total liabilities  
Recurring [Member] | Federal agency obligations [Member]    
Available-for-sale:    
Securities available-for-sale 51,048 38,458
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 51,048 38,458
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Residential mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 256,055 270,884
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 256,055 270,884
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Commercial mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 10,526 6,922
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 10,526 6,922
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member]    
Available-for-sale:    
Securities available-for-sale 130,274 142,808
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 121,638 133,964
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,636 8,844
Recurring [Member] | Corporate bonds and notes [Member]    
Available-for-sale:    
Securities available-for-sale 11,089 25,095
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 11,089 25,095
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Asset-backed securities [Member]    
Available-for-sale:    
Securities available-for-sale 2,722 3,480
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 2,722 3,480
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Certificates of deposit [Member]    
Available-for-sale:    
Securities available-for-sale 150 151
Recurring [Member] | Other securities [Member]    
Available-for-sale:    
Securities available-for-sale 1,020 157
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 1,020 157
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 150 151
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Assets at Fair Value on Non-Recurring - Impaired Loans [Member] - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Commercial Portfolio Segment [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value $ 12,966 $ 10,751
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 12,966 10,751
Commercial Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 16,407 1,393
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 16,407 $ 1,393
Residential Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 2,251  
Residential Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value  
Residential Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value  
Residential Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value $ 2,251  
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value recurring basis - Municipal Securities [Member] - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Balance of recurring Level 3 assets at January 1 $ 8,844 $ 9,114
Principal paydowns (208) (270)
Balance of recurring Level 3 assets at December 31 $ 8,636 $ 8,844
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value on recurring item basis - Recurring [Member] - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Fair value $ 477,880 $ 501,342
Municipal Securities [Member]    
Fair value $ 8,636 $ 8,844
Valuation Techniques Discounted cash flows Discounted cash flows
Unobservable Input Discount rate Discount rate
Rate 2.90% 2.90%
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a non-recurring basis - Impaired Loans [Member] - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Commercial Portfolio Segment [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 12,966 $ 10,751
Commercial Real Estate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value 16,407 1,393
Non-recurring [Member] | Commercial Portfolio Segment [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 12,186 $ 227
Valuation Techniques Market approach (100) Appraisals of collateral value
Unobservable Input Average transfer price as a price to unpaid principal balance Adjustment for comparable sales
Non-recurring [Member] | Commercial Portfolio Segment [Member] | Market approach [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 49.00% (2.00%)
Non-recurring [Member] | Commercial Portfolio Segment [Member] | Market approach [Member] | Minimum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 48.00% 1.00%
Non-recurring [Member] | Commercial Portfolio Segment [Member] | Market approach [Member] | Maximum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 53.00% 5.00%
Non-recurring [Member] | Commercial Portfolio Segment1 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 780 $ 10,524
Valuation Techniques Appraisals of collateral value Market approach (100%)
Unobservable Input Comparable sales Average transfer price as a price to unpaid principal balance
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | Market approach [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 2.00% (49.00%)
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | Market approach [Member] | Minimum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 0.00% 48.00%
Non-recurring [Member] | Commercial Portfolio Segment1 [Member] | Market approach [Member] | Maximum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 5.00% 53.00%
Non-recurring [Member] | Commercial Real Estate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 16,407 $ 1,393
Valuation Techniques Appraisals of collateral value Appraisals of collateral value
Unobservable Input Comparable sales Adjustment for comparable sales
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate (8.00%) (8.00%)
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | Minimum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 0.00% (25.00%)
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | Maximum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 25.00% 20.00%
Non-recurring [Member] | Residential [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 2,251  
Valuation Techniques Appraisals of collateral value  
Unobservable Input Comparable sales  
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate (6.00%)  
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member] | Minimum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 1.00%  
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member] | Maximum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 15.00%  
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Sep. 30, 2020
Dec. 31, 2019
Financial assets        
Cash and due from banks, Carrying Amount $ 413,195 $ 303,756 $ 256,119 $ 201,483
Cash and due from banks, Fair Value 413,195 303,756    
Securities available-for-sale, Carrying Amount 462,884 487,955    
Securities available-for-sale 462,884 487,955    
Investment in restricted stocks, Carrying Amount 18,106 25,099    
Equity securities, Carrying Amount 13,700 13,387    
Equity securities, Fair Value 13,700 13,387    
Net loans, Carrying Amount 6,498,453 6,157,081    
Net loans, Fair Value 6,567,363 6,244,037    
Derivatives, Carrying Amount 1,296      
Derivatives, Fair Value 1,296      
Accrued interest receivable, Carrying Amount 33,610 35,317    
Accrued interest receivable, Fair Value 33,610 35,317    
Financial liabilities        
Noninterest-bearing deposits, Carrying Amount 1,500,754 1,339,108    
Noninterest-bearing deposits, Fair Value 1,500,754 1,339,108    
Interest-bearing deposits, Carrying Amount 4,897,584 4,620,116    
Interest-bearing deposits, Fair Value 4,899,141 4,633,961    
Borrowings, Carrying Amount 253,225 425,954    
Borrowings, Fair Value 255,099 429,671    
Subordinated debentures, Carrying Amount 152,875 202,648    
Subordinated debentures, Fair Value 164,378 214,113    
Derivatives, Carrying Amount   2,119    
Derivatives, Fair Value   2,119    
Accrued interest payable, Carrying Amount 2,879 3,687    
Accrued interest payable, Fair Value 2,879 3,687    
Fair Value, Inputs, Level 1 [Member]        
Financial assets        
Cash and due from banks, Fair Value 413,195 303,756    
Securities available-for-sale 1,020 157    
Equity securities, Fair Value 11,709 13,387    
Net loans, Fair Value    
Derivatives, Fair Value      
Accrued interest receivable, Fair Value    
Financial liabilities        
Noninterest-bearing deposits, Fair Value 1,500,754 1,339,108    
Interest-bearing deposits, Fair Value 3,675,673 3,155,983    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Derivatives, Fair Value      
Accrued interest payable, Fair Value    
Fair Value, Inputs, Level 2 [Member]        
Financial assets        
Cash and due from banks, Fair Value    
Securities available-for-sale 453,228 478,954    
Equity securities, Fair Value 1,991    
Net loans, Fair Value    
Derivatives, Fair Value 1,296      
Accrued interest receivable, Fair Value 1,356 1,764    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value 1,223,468 1,477,978    
Borrowings, Fair Value 255,099 429,671    
Subordinated debentures, Fair Value 164,378 214,113    
Derivatives, Fair Value   2,119    
Accrued interest payable, Fair Value 2,879 3,687    
Fair Value, Inputs, Level 3 [Member]        
Financial assets        
Cash and due from banks, Fair Value    
Securities available-for-sale 8,636 8,844    
Equity securities, Fair Value    
Net loans, Fair Value 6,567,363 6,244,037    
Derivatives, Fair Value      
Accrued interest receivable, Fair Value 32,254 33,553    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value    
Borrowings, Fair Value    
Subordinated debentures, Fair Value    
Derivatives, Fair Value      
Accrued interest payable, Fair Value    
v3.21.2
Comprehensive Income (Details) - Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items]        
Sale of securities available-for-sale Net gains on sale of securities available-for-sale $ (3,228) $ 703 $ (8,397) $ 5,532
Sale of securities available-for-sale Income tax expense 796 (160) 2,160 (1,459)
Net interest income on swaps - Borrowings (300) (600) (1,500) (900)
Net interest income on swaps Income tax expense 90 196 434 265
Net interest income on swaps 238 435 1,109 677
Total reclassification (783) 992 (3,770) 2,448
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) [Member]        
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items]        
Sale of securities available-for-sale Net gains on sale of securities available-for-sale 195 29
Sale of securities available-for-sale Income tax expense (48) (6)
Sale of securities available-for-sale 147 23
Net interest income on swaps - Borrowings (328) (631) (1,543) (942)
Net interest income on swaps Income tax expense 90 196 434 265
Net interest income on swaps (238) (435) (1,109) (677)
Amortization of pension plan net actuarial losses - other components of net periodic pension expense (75) (75) (225) (226)
Amortization of pension plan net actuarial losses Income tax benefit 21 21 63 63
Amortization of pension plan net actuarial losses (54) (54) (162) (163)
Total reclassification $ (292) $ (489) $ (1,124) $ (817)
v3.21.2
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract]    
Investment securities available-for-sale, net of tax $ 1,475 $ 7,859
Cash flow hedge, net of tax 932 (1,520)
Defined benefit pension plan, net of tax (3,380) (3,542)
Total accumulated other comprehensive loss $ (973) $ 2,797
v3.21.2
Stock Based Compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Dec. 31, 2017
Stock-based compensation $ 1,200 $ 800 $ 3,202 $ 1,999    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)          
Share-based Compensation Arrangement by Share-based Payment Award, Award expiration Period     10 years      
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period     3 years      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 32,564   32,564   38,013  
Restricted Stock [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)     45,027      
Unrecognized compensation cost related to nonvested shares $ 1,400   $ 1,400      
Weighted average period related to compensation cost     1 year 2 months 12 days      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 136,948   136,948   169,313  
Performance unit shares to satisfy tax obligation created from vesting, net     34,458      
Performance Shares [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)     14,710      
Unrecognized compensation cost related to nonvested shares $ 1,400   $ 1,400      
Weighted average period related to compensation cost     1 year 7 months 6 days      
Performance unit shares to satisfy tax obligation created from vesting, net     14,711      
Non-vested restricted stock units [Member]            
Unrecognized compensation cost related to nonvested shares $ 1,400   $ 1,400      
Weighted average period related to compensation cost     1 year 3 months 18 days      
2017 Equity Compensation Plan [Member]            
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares)           750,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)     329,175      
v3.21.2
Stock Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]    
Outstanding Beginning Balance 38,013  
Granted  
Exercised (5,449) (25,413)
Forfeited/cancelled/expired  
Outstanding Ending Balance 32,564  
Exercisable Ending Balance 32,564  
Outstanding Beginning Balance, Weighted-Average Exercise Price $ 9.03  
Exercised, Weighted-Average Granted Price  
Exercised, Weighted-Average Exercise Price 8.34  
Forfeited/cancelled/expired, Weighted-Average Exercise Price  
Outstanding Ending Balance, Weighted-Average Exercise Price 9.15  
Exercisable Ending Balance, Weighted-Average Exercise Price $ 9.15  
Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) 1 year  
Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) 1 year  
Outstanding Ending Balance - Aggregate Intrinsic Value $ 554,374  
Exercisable Ending Balance - Aggregate Intrinsic Value $ 554,374  
v3.21.2
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares
 9 Months Ended
Sep. 30, 2021
$ / shares
shares
Granted
Nonvested [Member]  
Nonvested at December 31, 2020 113,114
Granted 49,971
Vested (68,142)
Forfeited/cancelled/expired (3,071)
Nonvested September 30, 2021 91,872
Outstanding, beginning balance | $ / shares $ 18.17
Granted | $ / shares 25.33
Vested | $ / shares 17.16
Forfeited/cancelled/expired | $ / shares 23.76
Outstanding, ending balance | $ / shares $ 22.62
v3.21.2
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares
 9 Months Ended
Sep. 30, 2021
$ / shares
shares
Outstanding Beginning Balance 38,013
Awarded
Outstanding Ending Balance 32,564
Unearned [Member]  
Outstanding Beginning Balance 147,636
Awarded 37,543
Change in estimate 37,184
Vested shares (29,421)
Forfeited/cancelled/expired (11,153)
Outstanding Ending Balance 181,789
Outstanding, beginning balance | $ / shares $ 17.29
Awarded | $ / shares 25.24
Change in estimate | $ / shares 15.57
Vested shares | $ / shares 31.35
Forfeited/cancelled/expired | $ / shares 17.06
Outstanding, ending balance | $ / shares $ 16.32
Unearned [Member] | Maximum [Member]  
Outstanding Ending Balance 233,638
Restricted Stock [Member]  
Outstanding Beginning Balance 169,313
Awarded 45,027
Vested shares (68,916)
Forfeited/cancelled/expired (8,476)
Outstanding Ending Balance 136,948
Outstanding, beginning balance | $ / shares $ 14.07
Awarded | $ / shares 25.24
Vested shares | $ / shares 16.29
Forfeited/cancelled/expired | $ / shares 15.83
Outstanding, ending balance | $ / shares $ 16.52
v3.21.2
Components of Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Average daily balance during the year        
Service cost
Interest cost 71 91 213 273
Expected return on plan assets (213) (196) (639) (588)
Net amortization 75 75 225 226
Total periodic pension income $ (67) $ (30) $ (201) $ (89)
v3.21.2
FHLB Borrowings (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]  
Value of commercial loans used as collateral for FHLB advances $ 2,000
Remaining borrowing capacity 1,200
FHLB advances hedged with interest rate swaps $ 75
v3.21.2
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($)
$ in Thousands
Sep. 30, 2021
Dec. 31, 2020
By type of borrowing:    
FHLB borrowings (in Dollars) $ 253,225 $ 425,954
Weighted average interest rates 1.23% 1.07%
By remaining period to maturity:    
Less than 1 year (in Dollars) $ 168,213 $ 297,570
Less than 1 year 1.00% 0.84%
1 year through less than 2 years (in Dollars) $ 57,360 $ 75,644
1 year through less than 2 years 1.93% 1.42%
2 years through less than 3 years (in Dollars) $ 50,000
2 years through less than 3 years 1.84%
3 years through less than 4 years (in Dollars) $ 25,000
3 years through less than 4 years 1.00%
4 years through less than 5 years (in Dollars) $ 2,050
4 years through less than 5 years 2.23%
After 5 years (in Dollars) $ 729 $ 2,824
After 5 years 2.91% 2.42%
Total FHLB borrowings (in Dollars) $ 253,352 $ 426,038
Fair value discount (127) (84)
Total borrowings $ 253,225 $ 425,954
v3.21.2
Subordinated Debentures (Details) - USD ($)
$ in Millions
 1 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Jan. 31, 2018
Jun. 30, 2015
Sep. 30, 2021
Dec. 31, 2020
Subordinated Debt from Trust [Member]          
Subordinated Debentures (Details) [Line Items]          
Value of subordinated debentures received by Trust       $ 5.0  
Percentage Rate Added to Libor       2.85%  
Floating interest rate on subordinated debentures       2.98%  
Proceeds from Issuance of Debt       $ 5.2  
Debt Instrument, Maturity Date       Jan. 23, 2034  
Fixed-to-floating Rate Subordinated 2020 Notes [Member]          
Subordinated Debentures (Details) [Line Items]          
Proceeds from Issuance of Debt $ 75.0        
Debt Instrument, Maturity Date Sep. 15, 2025        
Debt Instrument, Interest Rate, Stated Percentage 5.75%        
Debt Instrument, Description of Variable Rate Basis       Three-Month Term SOFR (as defined in the Second Supplemental Indenture), plus 560.5 basis points  
Fixed-to-floating Rate Subordinated 2018 Notes [Member]          
Subordinated Debentures (Details) [Line Items]          
Proceeds from Issuance of Debt   $ 75.0      
Debt Instrument, Maturity Date   Feb. 01, 2028      
Debt Instrument, Interest Rate, Stated Percentage   5.20%      
Debt Instrument, Description of Variable Rate Basis       three-month LIBOR rate plus 284 basis points  
Bank [Member]          
Subordinated Debentures (Details) [Line Items]          
Proceeds from Issuance of Debt   $ 65.0      
Fixed-to-floating Rate Subordinated Notes [Member]          
Subordinated Debentures (Details) [Line Items]          
Proceeds from Issuance of Debt     $ 50.0    
Debt Instrument, Maturity Date         Jul. 01, 2025
Debt Instrument, Description of Variable Rate Basis       three-month LIBOR rate plus 393 basis points  
Debt Instrument, Basis Spread on Variable Rate         4.16%
v3.21.2
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Schedule of Subordinated Borrowing [Abstract]    
Issuance Date Dec. 19, 2003 Dec. 19, 2003
Securities Issued $ 5,000,000 $ 5,000,000
Liquidation Value $1,000 per Capital Security $1,000 per Capital Security
Coupon Rate Floating 3-month LIBOR + 285 Basis Points Floating 3-month LIBOR + 285 Basis Points
Maturity Jan. 23, 2034 Jan. 23, 2034
Redeemable by Issuer Beginning Jan. 23, 2009 Jan. 23, 2009
v3.21.2
Preferred Stock (Details) - USD ($)
$ in Thousands
 1 Months Ended 9 Months Ended
Aug. 19, 2021
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Subsidiary, Sale of Stock [Line Items]        
Preferred shares issued   115,000   0
Proceeds from issuance of preferred stock $ 110,900 $ 110,927  
Series A Preferred Stock [Member]        
Subsidiary, Sale of Stock [Line Items]        
Preferred stock liquidation preference $ 100,000      
Percentage of fixed-rate non-cumulative perpetual preferred stock 5.25%      
Underwritten Public Offering [Member]        
Subsidiary, Sale of Stock [Line Items]        
Preferred shares issued 115,000      
Preferred stock liquidation preference $ 11,500