CONNECTONE BANCORP, INC., 10-Q filed on 8/6/2021
Quarterly Report
v3.21.2
Document and Entity Information - shares
 6 Months Ended
Jun. 30, 2021
Aug. 06, 2021
Document And Entity Information    
Document Type 10-Q  
Entity Central Index Key 0000712771  
Document Period End Date Jun. 30, 2021  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
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  
Title of 12(b) Security Common stock  
Trading Symbol CNOB  
Name of Exchange on which Security is Registered NASDAQ  
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   39,794,815
v3.21.2
CONSOLIDATED STATEMENTS OF CONDITION - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
ASSETS    
Cash and due from banks $ 59,148 $ 63,637
Interest-bearing deposits with banks 290,269 240,119
Cash and cash equivalents 349,417 303,756
Investment securities 458,933 487,955
Equity securities 13,223 13,387
Loans held-for-sale 6,159 4,710
Loans receivable 6,407,904 6,236,307
Less: Allowance for credit losses - loans 78,684 79,226
Net loans receivable 6,329,220 6,157,081
Investment in restricted stock, at cost 22,563 25,099
Bank premises and equipment, net 28,811 30,108
Accrued interest receivable 34,001 35,317
Bank owned life insurance 193,209 165,960
Right of use operating lease assets 12,504 16,159
Goodwill 208,372 208,372
Core deposit intangibles 9,963 10,977
Other assets 43,707 88,458
Total assets 7,710,082 7,547,339
Deposits:    
Noninterest-bearing 1,485,952 1,339,108
Interest-bearing 4,706,561 4,620,116
Total deposits 6,192,513 5,959,224
Borrowings 353,462 425,954
Subordinated debentures, net 152,800 202,648
Operating lease liabilities 14,235 18,026
Other liabilities 32,112 26,177
Total liabilities 6,745,122 6,632,029
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY    
Preferred Stock: Authorized 5,000,000 shares
Common stock, no par value: Authorized 50,000,000 shares; issued 42,547,077 shares as of June 30, 2021 and 42,444,031 shares as of December 31, 2020; outstanding 39,794,815 shares as of June 30, 2021 and 39,785,398 as of December 31, 2020 586,946 586,946
Additional paid-in capital 24,606 23,887
Retained earnings 386,280 331,951
Treasury stock, at cost 2,752,262 common shares as of June 30, 2021 and 2,658,633 as of December 31, 2020 (32,682) (30,271)
Accumulated other comprehensive (loss) income (190) 2,797
Total stockholders' equity 964,960 915,310
Total liabilities and stockholders' equity $ 7,710,082 $ 7,547,339
v3.21.2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - shares
Jun. 30, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Preferred stock, shares authorized 5,000,000 5,000,000
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 42,547,077 42,444,031
Common stock, shares outstanding 39,794,815 39,785,398
Treasury Stock, Shares 2,752,262 2,658,633
v3.21.2
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Interest income        
Interest and fees on loans $ 71,101 $ 75,797 $ 141,563 $ 148,733
Interest and dividends on investment securities:        
Taxable 995 1,712 2,083 3,778
Tax-exempt 608 647 1,374 1,460
Dividends 263 442 519 842
Interest on federal funds sold and other short-term investments 84 79 133 578
Total interest income 73,051 78,677 145,672 155,391
Interest expense        
Deposits 6,424 13,597 14,009 30,809
Borrowings 3,618 4,290 7,491 8,511
Total interest expense 10,042 17,887 21,500 39,320
Net interest income 63,009 60,790 124,172 116,071
(Reversal of) provision for credit losses (1,649) 15,000 (7,415) 31,000
Net interest income after (reversal of) provision for credit losses 64,658 45,790 131,587 85,071
Noninterest income        
Deposit, loan and other income 2,222 3,212 3,390 4,499
Income on bank owned life insurance 1,185 1,128 2,249 2,095
Net gains on sale of loans held-for-sale 847 237 1,554 630
Gain on sale of branches 674
Net gains (losses) on equity securities 23 44 (164) 222
Net gains on sales/redemption of securities available-for-sale 195 195 29
Total noninterest income 4,472 4,621 7,898 7,475
Noninterest expenses        
Salaries and employee benefits 15,351 14,529 30,983 29,122
Occupancy and equipment 3,187 3,156 6,591 6,627
FDIC insurance 580 1,093 1,515 1,949
Professional and consulting 2,117 1,673 4,073 3,247
Marketing and advertising 278 426 519 730
Data processing 1,603 1,586 3,139 3,059
Merger and restructuring expenses 5,146 14,640
Amortization of core deposit intangibles 508 652 1,015 1,304
Increase in value of acquisition price 2,333 2,333
Other components of net periodic pension expense (67) (29) (134) (59)
Other expenses 2,702 2,498 5,043 5,169
Total noninterest expenses 26,259 33,063 52,744 68,121
Income before income tax expense 42,871 17,348 86,741 24,425
Income tax expense 10,652 2,516 21,523 3,563
Net income $ 32,219 $ 14,832 $ 65,218 $ 20,862
Earnings per common share:        
Basic $ 0.81 $ 0.37 $ 1.64 $ 0.53
Diluted $ 0.81 $ 0.37 $ 1.63 $ 0.52
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Statement of Comprehensive Income [Abstract]        
Net income $ 32,219 $ 14,832 $ 65,218 $ 20,862
Unrealized gains and losses:        
Unrealized holding gains (losses) on available-for-sale securities arising during the period 271 (1,423) (5,169) 4,829
Tax effect (68) 392 1,364 (1,299)
Net of tax 203 (1,031) (3,805) 3,530
Reclassification adjustment for realized gains included in net income (195) (195) (29)
Tax effect 48 48 6
Net of tax (147) (147) (23)
Unrealized losses on cash flow hedges (42) (566) (18) (3,315)
Tax effect 15 140 4 913
Net of tax (27) (426) (14) (2,402)
Reclassification adjustment for realized losses on cash flow hedges included in net income 584 318 1,215 311
Tax effect (167) (71) (344) (69)
Net of tax 417 247 871 242
Unrealized pension plan gains and losses:        
Reclassification adjustment for pension plan amortization included in net income 75 76 150 151
Tax effect (22) (21) (42) (42)
Net of tax 53 55 108 109
Total other comprehensive income (loss) 499 (1,155) (2,987) 1,456
Total comprehensive income $ 32,718 $ 13,677 $ 62,231 $ 22,318
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       20,862     20,862
Other comprehensive income (loss), net of tax           1,456 1,456
Cash dividends declared on common stock       (3,956)     (3,956)
Exercise of stock options     163       163
Restricted 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     (639)       (639)
Repurchase of treasury stock         (911)   (911)
Stock issued in acquisition of Bancorp of New Jersey   118,375         118,375
Stock-based compensation     1,201       1,201
Balance at Jun. 30, 2020 586,946 22,069 288,688 (30,271) 309 867,741
Balance at Mar. 31, 2020 586,946 21,746 273,825 (30,271) 1,464 853,710
Net income       14,832     14,832
Other comprehensive income (loss), net of tax           (1,155) (1,155)
Cash dividends adjustment       31     31
Restricted stock grants            
Share redemption for tax withholdings on performance units and restricted stock units earned     (342)       (342)
Stock-based compensation     665       665
Balance at Jun. 30, 2020 586,946 22,069 288,688 (30,271) 309 867,741
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       65,218     65,218
Other comprehensive income (loss), net of tax           (2,987) (2,987)
Cash dividends declared on common stock       (7,964)     (7,964)
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         (2,411)   (2,411)
Stock-based compensation     1,957       1,957
Balance at Jun. 30, 2021 586,946 24,606 386,280 (32,682) (190) 964,960
Balance at Mar. 31, 2021 586,946 23,621 358,441 (32,682) (689) 935,637
Net income       32,219     32,219
Other comprehensive income (loss), net of tax           499 499
Cash dividends declared on common stock       (4,380)     (4,380)
Restricted stock grants            
Stock-based compensation     985       985
Balance at Jun. 30, 2021 $ 586,946 $ 24,606 $ 386,280 $ (32,682) $ (190) $ 964,960
v3.21.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Cash dividends declared on common stock (in Dollars per share) $ 0.11   $ 0.20 $ 0.090
Exercise of stock options, shares     5,449 25,413
Restricted stock and performance units grants, shares 21,213 48,169 47,982 68,853
Stock grants, shares     446  
Restricted stock units, shares     14,711 16,541
Net performance units issued     34,458 22,402
Repurchase of treasury stock     93,629 54,693
Greater Hudson Bank [Member]        
Stock issued in acquisition       4,602,450
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Cash flows from operating activities    
Net income $ 65,218 $ 20,862
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization of premises and equipment 1,746 1,860
(Reversal of) provision for credit losses (7,415) 31,000
Amortization of intangibles 1,015 1,304
Net accretion of loans (2,803) (3,752)
Accretion on bank premises (45) (45)
Accretion on deposits (1,248) (2,673)
Accretion on borrowings, net (36) (104)
Stock-based compensation 1,957 1,201
Gains on sales/redemptions of securities available-for-sale, net (195) (29)
Losses (gains) on equity securities, net 164 (222)
Gain on sale of branches (674)
Net losses on disposition of fixed assets 27
Gains on sales of loans held-for-sale, net (1,554) (630)
Loans originated for resale (30,600) (17,141)
Proceeds from sale of loans held-for sale 40,043 30,894
Payments on loans held-for-sale 18 172
Gain on sale of other real estate owned (18)
Increase in cash surrender value of bank owned life insurance (2,249) (2,095)
Amortization of premiums and accretion of discounts on securities available-for-sale, net 3,152 2,512
Amortization of subordinated debentures issuance costs 152 170
Decrease (increase) in accrued interest receivable 1,316 (6,035)
Net change in operating leases (439) 2,051
Decrease in other assets 48,236 25,042
Increase (decrease) in other liabilities 3,705 (8,602)
Net cash provided by operating activities 119,473 75,740
Cash flows from investing activities    
Purchases (126,641) (108,584)
Sales 19,624
Maturities, calls and principal repayments 147,342 97,625
Purchases of equity securities (2,000)
Net redemptions of restricted investment in bank stocks 2,536 3,805
Net increase in loans (173,384) (463,094)
Purchases of bank owned life insurance (25,000) (25,000)
Purchases of premises and equipment (541) (855)
Proceeds from sale of branches 1,087
Proceeds from sale of OREO 321 992
Cash and cash equivalents acquired in acquisition, net 87,391
Net cash used in investing activities (174,280) (390,096)
Cash flows from financing activities    
Net increase in deposits 234,537 276,614
(Repayment of) increase in subordinated debentures (50,000) 73,421
Advances of borrowings 100,000 1,376,489
Repayments of borrowings (172,456) (1,259,358)
Repurchase of treasury stock (2,411) (911)
Cash dividends paid on common stock (7,964) (3,545)
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 100,468 462,234
Net change in cash and cash equivalents 45,661 147,878
Cash and cash equivalents at beginning of period 303,756 201,483
Cash and cash equivalents at end of period 349,417 349,361
Cash payments for:    
Interest paid on deposits and borrowings 23,236 41,189
Income taxes 20,299 12,096
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 9,356 10,995
Transfer of loans from held-for-sale to held-for-investment 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
 6 Months Ended
Jun. 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. 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 six months ended June 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
 6 Months Ended
Jun. 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 ("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 purchase 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 amounts 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 is 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 individual analyzed. Generally, individually analyzed loans consist of nonaccrual loans and performing troubled debt restructurings. 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 the then 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-off 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 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-start reporting. Also, 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 statement.

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
 6 Months Ended
Jun. 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

June 30,

Six Months Ended

June 30,

(in thousands, except for per share data)

2021

2020

2021

2020

Net income

$

32,219

$

14,832

$

65,218

$

20,862

Earnings allocated to participating securities

(81

)

(69

)

(176

)

(94

)

Income attributable to common stock

$

32,138

$

14,763

$

65,042

$

20,768

 

Weighted average common shares outstanding, including participating securities

39,781

39,640

39,786

39,603

Weighted average participating securities

(100

)

(104

)

(107

)

(123

)

Weighted average common shares outstanding

39,681

39,536

39,679

39,480

Incremental shares from assumed conversions of options,

performance units and non-participating restricted shares

192

76

214

112

Weighted average common and equivalent shares outstanding

39,873

39,612

39,893

39,592

 

Earnings per common share:

Basic

$

0.81

$

0.37

$

1.64

$

0.53

Diluted

0.81

0.37

1.63

0.52

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

v3.21.2
Securities Available-for-Sale
 6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Securities Available-for-Sale

Note 3. Securities Available-for-Sale

The Company’s investment securities are all classified as available-for-sale as of June 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 June 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 June 30, 2021 and December 31, 2020.

Allowance

for

Gross

Gross

Investment

Amortized

Unrealized

Unrealized

Fair

Credit

Cost

Gains

Losses

Value

Losses

June 30, 2021

(dollars in thousands)

Securities available-for-sale

Federal agency obligations

$

34,649

$

1,197

$

(73

)

$

35,773

-

Residential mortgage pass-through  securities

261,761

2,655

(1,258

)

263,158

-

Commercial mortgage pass-through  securities

8,886

202

(293

)

8,795

-

Obligations of U.S. states and political subdivisions

133,722

2,695

(29

)

136,388

-

Corporate bonds and notes

11,459

162

-

11,621

-

Asset-backed securities

2,874

10

(4

)

2,880

-

Certificates of deposit

150

1

-

 

151

-

Other securities

167

-

-

167

-

Total securities available-for-sale​​

$

453,668

$

6,922

$

(1,657

)

$

458,933

$

-

 

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. Securities Available-for-Sale – (continued)

Investment securities having a carrying value of approximately $178.0 million and $107.6 million as of June 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 June 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 June 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.

June 30, 2021

Amortized

Fair

Cost

Value

(dollars in thousands)

Securities available-for-sale:

Due in one year or less

$

5,614

$

5,637

Due after one year through five years

11,193

11,353

Due after five years through ten years

10,915

11,226

Due after ten years

155,132

158,597

Residential mortgage pass-through securities

261,761

263,158

Commercial mortgage pass-through securities

8,886

8,795

Other securities

167

167

Total securities available-for-sale

$

453,668

$

458,933

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

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

 

(dollars in thousands)

 

 

 

2021

 

2020

 

 

2021

 

2020

 

Proceeds

 

$

5,185

 

 

$

-

 

 

$

5,185

 

 

$

19,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross gains on sales/redemption of securities

 

 

195

 

 

 

-

 

 

 

195

 

 

 

29

 

Gross losses on sales/redemptions of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net gain on sales/redemptions of securities

 

 

195

 

 

 

-

 

 

 

195

 

 

 

29

 

Less: tax provision on net gain

 

 

(48

)

 

 

-

 

 

(48

)

 

 

(6

)

Net gain on sales/redemptions of securities, after tax

 

$

147

 

 

$

-

 

 

$

147

 

 

$

23

 

16

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CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 3. Securities Available-for-Sale – (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 June 30, 2021 and December 31, 2020.

June 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:

 

Federal agency obligations

$

1,565

$

(73

)

$

1,565

$

(73

)

$

-

$

-

 

Residential mortgage pass-through securities

142,615

(1,258

)

142,615

(1,258

)

-

-

Commercial mortgage pass-through securities

4,542

(293

)

4,542

(293

)

-

-

 

Obligations of U.S. states and political subdivisions

28,654

(29

)

28,654

(29

)

-

-

Corporate bonds and notes

-

-

-

-

-

-

 

Asset-backed securities

567

(4

)

-

-

567

(4

)

Total temporarily impaired securities

$

177,943

$

(1,657

)

$

177,376

$

(1,653

)

$

567

$

(4

)

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. Securities Available-for-Sale – (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 June 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 June 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 June 30, 2021.

Federal agency obligations, residential mortgage backed pass-through securities and commercial mortgage back 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
 6 Months Ended
Jun. 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. In addition, an interest rate swap was entered into on August 6, 2019, with a notional amount of $50.0 million and was designated as a cash flow hedge of a Federal Home Loan Bank advance. 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.

18

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 4. Derivatives – (continued)

Summary information about the interest rate swaps designated as cash flow hedges as of June 30, 2021, December 31, 2020 and June 30, 2020 are presented in the following table.

June 30,

December 31,

June 30,

2021

2020

2020

(dollars in thousands)

Notional amount

$

125,000

$

175,000

$

200,000

Weighted average pay rates

1.66

%

1.85

%

1.70

%

Weighted average receive rates

0.27

%

0.92

%

1.37

%

Weighted average maturity

0.5 years

0.8 years

1.2 years

Fair value

$

(922

)

$

(2,119

)

$

(3,277

)

Interest expense recorded on these swap transactions totaled approximately $584 thousand and $1.2 million during the three and six months ended June 30, 2021, respectively, compared to $318 thousand and $311 thousand during the three and six months ended June 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 June 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

$

(42

)

$

584

$

-

Three Months Ended June 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

$

(566

)

$

318

$

-

19

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 4. Derivatives – (continued)

Six Months Ended June 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

$

(18

)

$

1,215

$

-

Six Months Ended June 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

$

(3,315

)

$

311

$

-

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

June 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

$

125,000

$

(922

)

$

175,000

$

(2,119

)

v3.21.2
Loans and the Allowance for Credit Losses
 6 Months Ended
Jun. 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 June 30, 2021 and December 31, 2020:

June 30,

December 31,

2021

2020

(dollars in thousands)

Commercial (1)

$

1,402,697

$

1,521,967

Commercial real estate

4,138,518

3,783,550

Commercial construction

587,121

617,747

Residential real estate

286,907

322,564

Consumer

6,355

 

1,853

Gross loans

6,421,598

6,247,681

Net deferred loan fees

(13,694

)

 

(11,374

)

Total loans receivable

$

6,407,904

$

6,236,307

 

(1)

Included in commercial loans as of June 30, 2021 and December 31, 2020 were PPP loans of $326.8 million and $397.5 million, respectively.

As of June 30, 2021 and December 31, 2020, loan balances of approximately $2.7, 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 June 30, 2021 and December 31, 2020:

June 30,

December 31,

2021

2020

(dollars in thousands)

Commercial real estate

$

5,298

$

1,990

Residential real estate

861

 

2,720

Total carrying amount

$

6,159

$

4,710

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

Nonaccrual

Loans with an

ACL

Nonaccrual

loans without

an ACL

Total

(dollars in thousands)

Commercial

$

28,009

$

3,074

$

31,083

Commercial real estate

2,722

13,283

16,005

Commercial construction

2,934

1,831

4,765

Residential real estate

-

 

4,360

4,360

Consumer

-

 

-

Total

$

33,665

$

22,548

$

56,213

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 and loans 90 days or greater past due and still accruing 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 “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 “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified 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 June 30, 2021, our loans based on year of origination and risk designation is as follows (dollars in thousands):

 

Term loans amortized cost basis by origination year

 

 

Resolving

 

 

Total

Gross

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

Loans

Loans

Commercial

Pass

$

324,543

$

185,027

$

64,057

$

69,430

$

99,833

$

123,799

$

466,262

$

1,332,951

Special mention

-

-

225

258

5,655

4,235

15,653

26,026

Substandard

182

-

1,791

13,072

4,111

21,255

3,250

43,661

Doubtful

-

-

-

59

-

-

-

59

Total Commercial

$

324,725

$

185,027

$

66,073

$

82,819

$

109,599

$

149,289

$

485,165

$

1,402,697

 

Commercial Real Estate

Pass

$

741,267

$

601,375

$

460,081

$

529,053

$

541,823

$

1,012,888

$

141,776

$

4,028,263

Special mention

-

-

3,375

19,360

4,364

29,160

15,454

71,713

Substandard

1,969

-

659

1,473

2,722

31,719

-

38,542

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Real Estate

$

743,236

$

601,375

$

464,115

$

549,886

$

548,909

$

1,073,767

$

157,230

$

4,138,518

 

Commercial Construction

Pass

$

1,405

$

7,506

$

37,715

$

3,678

$

3,981

$

490

$

510,227

$

565,002

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

22,119

22,119

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Construction

$

1,405

$

7,506

$

37,715

$

3,678

$

3,981

$

490

$

532,346

$

587,121

 

Residential Real Estate

Pass

$

10,420

$

34,493

$

27,090

$

32,888

$

37,296

$

83,096

$

48,515

$

273,798

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

203

-

9,101

3,805

13,109

Doubtful

-

-

-

-

-

-

-

-

Total Residential Real Estate

$

10,420

$

34,493

$

27,090

$

33,091

$

37,296

$

92,197

$

52,320

$

286,907

 

Consumer

Pass

$

-

$

107

$

54

$

32

$

41

$

5,989

$

132

$

6,355

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

Total Consumer

$

-

$

107

$

54

$

32

$

41

$

5,989

$

132

$

6,355

 

Total

Pass

$

1,077,635

$

828,508

$

588,997

$

635,081

$

682,974

$

1,226,262

$

1,166,912

$

6,206,369

Special mention

-

-

3,600

19,618

10,019

33,395

31,107

97,739

Substandard

2,151

-

2,450

14,748

6,833

62,075

29,174

117,431

Doubtful

-

-

-

59

-

-

-

59

Grand Total

$

1,079,786

$

828,508

$

595,047

$

669,506

$

699,826

$

1,321,732

$

1,227,193

$

6,421,598

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 individually evaluated for impairment as of June 30, 2021:

June 30, 2021

Real

Estate

Other

Total

(dollars in thousands)

Commercial

$

6,598

$

26,166

$

32,764

Commercial real estate

35,802

-

35,802

Commercial construction

16,389

-

16,389

Residential real estate

10,647

-

10,647

Consumer

-

-

-

Total

$

69,436

$

26,166

$

95,602

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 six months ended June 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 six months ended June 30, 2020 (dollars in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

2020

2020

Average

Recorded

Investment

Interest

Income

Recognized

Average

Recorded

Investment

Interest

Income

Recognized

Impaired loans (no allowance)

 

Commercial

$

35,813

$

91

$

36,127

$

185

Commercial real estate

15,415

82

15,352

155

Commercial construction

17,719

87

17,545

171

Residential real estate

3,500

-

3,308

-

 

Total

$

72,447

$

260

$

72,332

$

511

 

Impaired loans (allowance):

 

Commercial real estate

$

-

$

-

$

-

$

-

Commercial construction

6,463

-

6,463

-

Residential real estate

262

1

262

3

 

Total

$

6,725

$

1

$

6,725

$

3

 

Total impaired loans:

Commercial

$

35,813

$

91

$

36,127

$

185

Commercial real estate

15,415

82

15,352

155

Commercial construction

24,182

87

24,008

171

Residential real estate

3,762

1

3,570

3

 

Total

$

79,172

$

261

$

79,057

$

514

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 June 30, 2021 and December 31, 2020 (dollars in thousands):

June 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

$

297

$

-

$

4,588

$

31,083

$

35,968

$

1,366,729

$

1,402,697

Commercial real Estate

-

-

7,607

16,005

23,612

4,114,906

4,138,518

Commercial construction

-

-

3,221

4,765

7,986

579,135

587,121

Residential real Estate

210

99

4,238

4,360

8,907

278,000

286,907

Consumer

2

-

-

-

2

6,353

6,355

Total

$

509

$

99

$

19,654

$

56,213

$

76,475

$

6,345,123

$

6,421,598

Included in the 90 days or greater past due and still accruing category as of June 30, 2021 were $16.4 million in 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

The 90 days or greater past due and still accruing category as of December 31, 2020 were purchased credit-impaired 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:

June 30, 2021

Commercial

Commercial

Residential

Commercial

real estate

construction

real estate

Consumer

Total

(dollars in thousands)

ACL

Individually evaluated for impairment

$

15,618

$

1,485

$

434

$

349

$

-

$

17,886

Collectively evaluated for impairment

7,673

39,553

4,493

3,863

9

55,591

Acquired with deteriorated credit quality individually analyzed

2,276

2,777

-

154

-

5,207

Total

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

78,684

 

Gross loans

Individually evaluated for impairment

$

33,473

$

28,197

$

16,389

$

6,408

$

-

$

84,467

Collectively evaluated for impairment

1,364,019

4,102,715

570,732

276,260

6,355

6,320,081

Acquired with deteriorated credit quality individually analyzed

5,205

7,606

-

4,239

-

17,050

Total

$

1,402,697

$

4,138,518

$

587,121

$

286,907

$

6,355

$

6,421,598

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 months ended and six months ended June 30, 2021 is summarized in the table below. The CECL Day 1 row presents 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 June 30, 2021

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of March 31, 2021

$

26,435

$

43,897

$

5,521

$

4,704

$

11

$

-

$

80,568

 

 

 

Charge-offs

(50

)

(155

)

-

(7

)

-

-

(212

)

 

Recoveries

13

-

-

-

1

-

14

 

 

(Reversal of) provision for credit losses - loans

(831

)

73

(594

)

(331

)

(3

)

-

(1,686

)

Balance as of June 30, 2021

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

-

$

78,684

 

Six Months Ended June 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

(50

)

(155

)

-

(7

)

-

-

(212

)

 

Recoveries

73

-

-

-

2

-

75

 

Provision for (reversal of) credit losses - loans

1,326

(4,965

)

(2,306

)

(1,011

)

(6

)

-

(6,962

)

Balance as of June 30, 2021

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

-

$

78,684

 

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. We recorded a reversal of credit losses for loans of $1.7 million and $7.0 million during the three and six months ended June 30, 2021, respectively, utilizing the CECL methodology, which was the result of an improved macroeconomic environment from January 1, 2021, the day of adoption.

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 June 30, 2020

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of March 31, 2020

$

9,058

$

22,036

$

7,819

$

1,681

$

3

$

13,572

$

54,169

 

 

Charge-offs

(380

)

-

-

(69

)

-

-

(449

)

 

Recoveries

2

2

-

-

-

-

4

 

 

Provision for credit losses - loans

665

617

207

78

2

13,431

15,000

 

 

Balance as of June 30, 2020

$

9,345

$

22,655

$

8,026

$

1,690

$

5

$

27,003

$

68,724

 

 

 

Six Months Ended June 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

 

 

(504

)

 

 

-

 

 

-

 

 

(69

)

 

 

(3

)

 

 

-

 

 

(576

)

 

Recoveries

 

 

2

 

 

 

2

 

 

 

-

 

 

3

 

 

 

-

 

 

 

-

 

 

7

 

 

Provision

 

 

1,498

 

 

1,800

 

 

 

722

 

 

71

 

 

5

 

 

26,904

 

 

31,000

 

 

Balance as of June 30, 2020

 

$

9,345

 

 

$

22,655

 

 

$

8,026

 

$

1,690

 

 

$

5

 

 

$

27,003

 

$

68,724

 

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 (“TDRs”) 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, 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 troubled debt restructuring remains on nonaccrual status for a period of six 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 June 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 troubled debt restructurings.

As of June 30, 2021, TDRs totaled $62.4 million, of which $29.4 million were on nonaccrual status and $33.0 million 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 performing under their restructured terms. The Company has allocated $9.2 million and $47 thousand of specific allowance related to TDRs for the six months ended June 30, 2021 and June 30, 2020, respectively.

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

Pre-Modification Outstanding

Post-Modification Outstanding

Number of Loans

Recorded Investment

Recorded Investment

Troubled debt restructurings:

(dollars in thousands)

Commercial

3

$

631

$

631

Commercial real estate

3

8,603

8,603

Commercial construction

1

1,641

1,641

Residential real estate

3

1,758

1,758

Total

10

$

12,633

$

12,633

The ten loans modified as TDRs during the six months ended June 30, 2021 included nine (9) maturity extensions and, one commercial real estate loan which was a recast of a nonaccrual credit.

There were no loans modified as TDRs during the six months ended June 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 six months ended June 30, 2021 and June 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 six 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 June 30, 2021, the Bank had 79 deferred loans totaling approximately $100 million, compared to 113 deferred loans totaling approximately $207 million as of December 31, 2020.

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 June 30, 2021:

Unpaid

Number of Loans

Principal Balance

(dollars in thousands)

Commercial

59

$

17,260

Commercial real estate

20

82,760

Total

79

$

100,020

As of June 30, 2021, there were no deferred loans that were delinquent or on nonaccrual status. As of June 30, 2021, $62.0 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 six months ended June 30, 2021 (dollars in thousands):

Three Months Ended

June 30, 2021

 

Balance as of beginning of period

$

2,343

Provision for credit losses - unfunded commitments

37

Balance as of end of period

$

2,380

Six Months Ended

June 30, 2021

 

Balance as of beginning of period

$

-

Day 1 Effect of CECL

2,833

Reversal of credit losses - unfunded commitments

(453)

Balance as of end of period

$

2,380

Components of (Reversal of) Provision for Credit Losses

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

Three Months Ended

June 30, 2021

Six Months Ended

June 30, 2021

 

(Reversal of) provision for credit losses - loans

$

(1,686)

$

(6,962)

(Reversal of) provision for credit losses - unfunded commitments

37

(453)

(Reversal of) provision for credit losses

$

(1,649)

$

(7,415)

v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments
 6 Months Ended
Jun. 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.

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 June 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

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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 June 30, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

June 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

 

$

35,773

 

$

-

 

$

35,773

 

$

-

Residential mortgage pass-through securities

 

 

263,158

 

 

-

 

 

263,158

 

 

-

Commercial mortgage pass-through securities

 

 

8,795

 

 

-

 

 

8,795

 

 

-

Obligations of U.S. states and political subdivision

 

 

136,388

 

 

-

 

 

127,683

 

 

8,705

Corporate bonds and notes

 

 

11,621

 

 

-

 

 

11,621

 

 

-

Asset-backed securities

 

 

2,880

 

 

-

 

 

2,880

 

 

-

Certificates of deposit

 

 

151

 

 

-

 

 

151

 

 

-

Other securities

 

 

167

 

 

167

 

 

-

 

 

-

Total available-for-sale

 

$

458,933

 

$

167

 

$

450,061

 

$

8,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

 

13,223

 

 

11,243

 

 

1,980

 

 

-

Total assets

 

$

472,156

 

$

11,410

 

$

452,041

 

$

8,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

$

(922

)

$

-

$

(922

)

$

-

Total liabilities

$

(922

)

$

-

$

(922

)

$

-

34

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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 six months ended June 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 June 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

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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, generally 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 June 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

June 30,

Assets

Inputs

Inputs

basis:

2021

(Level 1)

(Level 2)

(Level 3)

Collateral dependent loans:

(dollars in thousands)

Commercial

$

12,928

$

-

$

-

$

12,928

Commercial real estate

1,902

-

-

1,902

Commercial construction

2,500

-

-

2,500

Residential real estate

2,033

-

-

2,033

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

Collateral dependent loans – Collateral dependent loans as of June 30, 2021 that required a valuation allowance were $40.0 million with a related valuation allowance of $20.6 million compared to $26.5 million with a related valuation allowance of $14.3 million as of December 31, 2020.

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 six months ended June 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

(139

)

Balance as of June 30, 2021

$

8,705

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 June 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.

June 30, 2021

Valuation

Unobservable

Fair Value

Techniques

Input

Rate

Securities available-for-sale:

(dollars in thousands)

Municipal securities

$

8,705

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.

June 30, 2021

Valuation

Unobservable

(dollars in thousands)

Fair Value

Techniques

Input

Range (weighted average)

Collateral dependent:

Commercial

$

750

Appraisals of collateral value

Comparable sales

0% - 5% (2%)

 

Commercial

$

12,178

Market approach (100)

Average transfer price as a price to unpaid principal balance

48 – 53 (49)

 

Commercial real estate

$

1,902

Appraisals of collateral value

Comparable sales

0% - 25% (8%)

 

Construction

$

2,500

Appraisals of collateral value

Comparable sales

15%

 

Residential

$

2,033

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 June 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 June 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)

June 30, 2021

Financial assets:

Cash and due from banks

$

349,417

$

349,417

$

349,417

$

-

$

-

Securities available-for-sale

458,933

458,933

167

450,061

8,705

Investment in restricted stocks

22,563

n/a

n/a

n/a

n/a

Equity securities

13,223

13,223

11,243

1,980

-

Net loans

6,329,220

6,391,465

-

-

6,391,465

Accrued interest receivable

34,001

34,001

-

1,444

32,557

 

Financial liabilities:

Noninterest-bearing deposits

1,485,952

1,485,952

1,485,952

-

-

Interest-bearing deposits

4,706,561

4,710,337

3,404,754

1,305,583

-

Borrowings

353,462

355,783

-

355,783

-

Subordinated debentures

152,800

164,757

-

164,757

-

Derivatives

922

922

-

922

-

Accrued interest payable

3,083

3,083

-

3,083

-

 

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
 6 Months Ended
Jun. 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 Loss Components

Amounts Reclassified from Accumulated

Other Comprehensive Income (Loss)

Amounts Reclassified from Accumulated

Other Comprehensive Income (Loss)

Affected Line item in the

Statement Where Net Income is Presented

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

(dollars in thousands)

Sale of investment securities

$

195

$

-

$

195

$

29

Net gains on sale of securities available-for-saleavailable Income tax expense

available for sale

(48

)

-

(48

)

(6

)

147

-

147

23

 

Net interest income on swaps

$

(584

)

$

(318

)

$

(1,215

)

$

(311

)

Borrowings

165

71

342

69

Income tax expense

(419

)

(247

)

(873

)

(242

)

 

Amortization of pension plan net

(75

)

(76

)

(150

)

(151

)

Other components of net periodic pension expense

actuarial losses

22

21

42

42

Income tax benefit

(53

)

(55

)

(108

)

(109

)

 

Total reclassification

$

(325

)

$

(302

)

$

(834

)

$

(328

)

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 June 30, 2021 and December 31, 2020 consisted of the following:

June 30,

December 31,

2021

2020

(dollars in thousands)

Investment securities available-for-sale, net of tax

$

3,907

$

7,859

 

Cash flow hedge, net of tax

(663

)

(1,520

)

Defined benefit pension and post-retirement plans, net of tax

(3,434

)

(3,542

)

Total

$

(190

)

$

2,797

 

v3.21.2
Stock Based Compensation
 6 Months Ended
Jun. 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 June 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 June 30, 2021 are approximately 332,628. 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 six months ended June 30, 2021 was $1.0 million and $2.0 million, respectively. Stock-based compensation expense for the three and six months ended June 30, 2020 was $0.7 million and $1.2 million, respectively.

Activity in the Company’s options for the six months ended June 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 June 30, 2021

32,564

$

9.15

1.0

$

554,374

 

Exercisable as of June 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 June 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 June 30, 2021. This amount changes based on the fair market value of the Company’s stock.

41

Table of Contents

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 six months ended June 30, 2021 was as follows:

Weighted-

Average

Nonvested

Grant Date

Shares

Fair Value

Nonvested as of December 31, 2020

113,114

$

18.15

Granted

49,590

25.32

Vested

(64,149

)

16.95

Forfeited/cancelled/expired

(1,608

)

24.11

Nonvested June 30, 2021

96,947

$

22.51

As of June 30, 2021, there was approximately $1.8 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 1.4 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

17,818

20.79

Vested shares

(29,421

)

31.35

Unearned as of June 30, 2021

173,576

233,638

$

16.99

As of June 30, 2021, the specific number of shares related to performance units that were expected to vest was 173,576, 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 June 30, 2021 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 233,638. During the six months ended June 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 six months ended June 30, 2021 were 14,711 shares. As of June 30, 2021, compensation cost of approximately $1.7 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.8 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

Average Grant

Units

Date Fair

(expected)

Value

Unearned as of December 31, 2020

169,313

$

14.07

Awarded

45,027

25.24

Vested shares

(68,916

)

16.29

Unearned as of June 30, 2021

145,424

$

16.48

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 six months ended June 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 six months ended June 30, 2021 were 34,458 shares. As of June 30, 2021, compensation cost of approximately $2.0 million related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 2.1 years.

v3.21.2
Components of Net Periodic Pension Cost
 6 Months Ended
Jun. 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 June 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

June 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

 

 

 

76

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(67)

 

 

$

(29)

 

Six Months Ended

June 30,

Affected Line Item in the Consolidated

Statements of Income

 

 

2021

 

2020

 

 

(dollars in thousands)

Service cost

 

$

-

 

 

$

-

 

Interest cost

 

 

142

 

 

 

182

 

Other components of net periodic pension expense

 

Expected return on plan assets

 

 

(426

)

 

 

(392

)

Other components of net periodic pension expense

Net amortization

 

 

150

 

 

 

151

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(134)

 

 

$

(59

)

Contributions

The Company did not contribute to the Pension Trust during the six months ended June 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
 6 Months Ended
Jun. 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:

June 30, 2021

December 31, 2020

Amount

Rate

Amount

Rate

(dollars in thousands)

Total FHLB borrowings

$

353,462

0.97

%

$

425,954

1.07

%

 

By remaining period to maturity:

Less than 1 year

$

268,420

0.93

%

$

297,570

0.84

%

1 year through less than 2 years

57,368

1.24

%

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

744

2.41

%

 

2,824

2.42

%

Total FHLB borrowings

353,582

0.97

%

426,038

1.07

%

Fair value premium (discount)

(120

)

(84

)

FHLB borrowings, net

$

353,462

$

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 June 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 June 30, 2021 the Company had remaining borrowing capacity of approximately $1.2 billion at FHLB.

v3.21.2
Subordinated Debentures
 6 Months Ended
Jun. 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 June 30, 2021 was 3.04%.

The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II as of June 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

Note 11. Subordinated Debentures – (continued)

During June 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, June 15, 2025 or the date of earlier redemption, payable semi-annually in arrears on June 15 and December 15 of each year, commencing December 15, 2020. From and including June 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 June 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
Nature of Operations, Principles of Consolidation and Risk and Uncertainties (Policies)
 6 Months Ended
Jun. 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. 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 six months ended June 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 ("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 purchase 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 amounts 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 is 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 individual analyzed. Generally, individually analyzed loans consist of nonaccrual loans and performing troubled debt restructurings. 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 the then 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-off 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 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-start reporting. Also, 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 statement.

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)
 6 Months Ended
Jun. 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 purchase 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 amounts 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)
 6 Months Ended
Jun. 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

June 30,

Six Months Ended

June 30,

(in thousands, except for per share data)

2021

2020

2021

2020

Net income

$

32,219

$

14,832

$

65,218

$

20,862

Earnings allocated to participating securities

(81

)

(69

)

(176

)

(94

)

Income attributable to common stock

$

32,138

$

14,763

$

65,042

$

20,768

 

Weighted average common shares outstanding, including participating securities

39,781

39,640

39,786

39,603

Weighted average participating securities

(100

)

(104

)

(107

)

(123

)

Weighted average common shares outstanding

39,681

39,536

39,679

39,480

Incremental shares from assumed conversions of options,

performance units and non-participating restricted shares

192

76

214

112

Weighted average common and equivalent shares outstanding

39,873

39,612

39,893

39,592

 

Earnings per common share:

Basic

$

0.81

$

0.37

$

1.64

$

0.53

Diluted

0.81

0.37

1.63

0.52

v3.21.2
Securities Available-for-Sale (Tables)
 6 Months Ended
Jun. 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 June 30, 2021 and December 31, 2020.

Allowance

for

Gross

Gross

Investment

Amortized

Unrealized

Unrealized

Fair

Credit

Cost

Gains

Losses

Value

Losses

June 30, 2021

(dollars in thousands)

Securities available-for-sale

Federal agency obligations

$

34,649

$

1,197

$

(73

)

$

35,773

-

Residential mortgage pass-through  securities

261,761

2,655

(1,258

)

263,158

-

Commercial mortgage pass-through  securities

8,886

202

(293

)

8,795

-

Obligations of U.S. states and political subdivisions

133,722

2,695

(29

)

136,388

-

Corporate bonds and notes

11,459

162

-

11,621

-

Asset-backed securities

2,874

10

(4

)

2,880

-

Certificates of deposit

150

1

-

 

151

-

Other securities

167

-

-

167

-

Total securities available-for-sale​​

$

453,668

$

6,922

$

(1,657

)

$

458,933

$

-

 

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 June 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.

June 30, 2021

Amortized

Fair

Cost

Value

(dollars in thousands)

Securities available-for-sale:

Due in one year or less

$

5,614

$

5,637

Due after one year through five years

11,193

11,353

Due after five years through ten years

10,915

11,226

Due after ten years

155,132

158,597

Residential mortgage pass-through securities

261,761

263,158

Commercial mortgage pass-through securities

8,886

8,795

Other securities

167

167

Total securities available-for-sale

$

453,668

$

458,933

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

June 30,

 

 

Six Months Ended

June 30,

 

 

 

 

(dollars in thousands)

 

 

 

2021

 

2020

 

 

2021

 

2020

 

Proceeds

 

$

5,185

 

 

$

-

 

 

$

5,185

 

 

$

19,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross gains on sales/redemption of securities

 

 

195

 

 

 

-

 

 

 

195

 

 

 

29

 

Gross losses on sales/redemptions of securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Net gain on sales/redemptions of securities

 

 

195

 

 

 

-

 

 

 

195

 

 

 

29

 

Less: tax provision on net gain

 

 

(48

)

 

 

-

 

 

(48

)

 

 

(6

)

Net gain on sales/redemptions of securities, after tax

 

$

147

 

 

$

-

 

 

$

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 June 30, 2021 and December 31, 2020.

June 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:

 

Federal agency obligations

$

1,565

$

(73

)

$

1,565

$

(73

)

$

-

$

-

 

Residential mortgage pass-through securities

142,615

(1,258

)

142,615

(1,258

)

-

-

Commercial mortgage pass-through securities

4,542

(293

)

4,542

(293

)

-

-

 

Obligations of U.S. states and political subdivisions

28,654

(29

)

28,654

(29

)

-

-

Corporate bonds and notes

-

-

-

-

-

-

 

Asset-backed securities

567

(4

)

-

-

567

(4

)

Total temporarily impaired securities

$

177,943

$

(1,657

)

$

177,376

$

(1,653

)

$

567

$

(4

)

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)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives [Table Text Block]

Summary information about the interest rate swaps designated as cash flow hedges as of June 30, 2021, December 31, 2020 and June 30, 2020 are presented in the following table.

June 30,

December 31,

June 30,

2021

2020

2020

(dollars in thousands)

Notional amount

$

125,000

$

175,000

$

200,000

Weighted average pay rates

1.66

%

1.85

%

1.70

%

Weighted average receive rates

0.27

%

0.92

%

1.37

%

Weighted average maturity

0.5 years

0.8 years

1.2 years

Fair value

$

(922

)

$

(2,119

)

$

(3,277

)

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 June 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

$

(42

)

$

584

$

-

Three Months Ended June 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

$

(566

)

$

318

$

-

19

Table of Contents

CONNECTONE BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

 

Note 4. Derivatives – (continued)

Six Months Ended June 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

$

(18

)

$

1,215

$

-

Six Months Ended June 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

$

(3,315

)

$

311

$

-

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 June 30, 2021 and December 31, 2020:

June 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

$

125,000

$

(922

)

$

175,000

$

(2,119

)

v3.21.2
Loans and the Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 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 June 30, 2021 and December 31, 2020:

June 30,

December 31,

2021

2020

(dollars in thousands)

Commercial (1)

$

1,402,697

$

1,521,967

Commercial real estate

4,138,518

3,783,550

Commercial construction

587,121

617,747

Residential real estate

286,907

322,564

Consumer

6,355

 

1,853

Gross loans

6,421,598

6,247,681

Net deferred loan fees

(13,694

)

 

(11,374

)

Total loans receivable

$

6,407,904

$

6,236,307

 

(1)

Included in commercial loans as of June 30, 2021 and December 31, 2020 were PPP loans of $326.8 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 June 30, 2021 and December 31, 2020:

June 30,

December 31,

2021

2020

(dollars in thousands)

Commercial real estate

$

5,298

$

1,990

Residential real estate

861

 

2,720

Total carrying amount

$

6,159

$

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 June 30, 2021 and nonaccrual loans without an ACL as of June 30, 2021:

Nonaccrual

Loans with an

ACL

Nonaccrual

loans without

an ACL

Total

(dollars in thousands)

Commercial

$

28,009

$

3,074

$

31,083

Commercial real estate

2,722

13,283

16,005

Commercial construction

2,934

1,831

4,765

Residential real estate

-

 

4,360

4,360

Consumer

-

 

-

Total

$

33,665

$

22,548

$

56,213

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 June 30, 2021, our loans based on year of origination and risk designation is as follows (dollars in thousands):

 

Term loans amortized cost basis by origination year

 

 

Resolving

 

 

Total

Gross

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

Loans

Loans

Commercial

Pass

$

324,543

$

185,027

$

64,057

$

69,430

$

99,833

$

123,799

$

466,262

$

1,332,951

Special mention

-

-

225

258

5,655

4,235

15,653

26,026

Substandard

182

-

1,791

13,072

4,111

21,255

3,250

43,661

Doubtful

-

-

-

59

-

-

-

59

Total Commercial

$

324,725

$

185,027

$

66,073

$

82,819

$

109,599

$

149,289

$

485,165

$

1,402,697

 

Commercial Real Estate

Pass

$

741,267

$

601,375

$

460,081

$

529,053

$

541,823

$

1,012,888

$

141,776

$

4,028,263

Special mention

-

-

3,375

19,360

4,364

29,160

15,454

71,713

Substandard

1,969

-

659

1,473

2,722

31,719

-

38,542

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Real Estate

$

743,236

$

601,375

$

464,115

$

549,886

$

548,909

$

1,073,767

$

157,230

$

4,138,518

 

Commercial Construction

Pass

$

1,405

$

7,506

$

37,715

$

3,678

$

3,981

$

490

$

510,227

$

565,002

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

22,119

22,119

Doubtful

-

-

-

-

-

-

-

-

Total Commercial Construction

$

1,405

$

7,506

$

37,715

$

3,678

$

3,981

$

490

$

532,346

$

587,121

 

Residential Real Estate

Pass

$

10,420

$

34,493

$

27,090

$

32,888

$

37,296

$

83,096

$

48,515

$

273,798

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

203

-

9,101

3,805

13,109

Doubtful

-

-

-

-

-

-

-

-

Total Residential Real Estate

$

10,420

$

34,493

$

27,090

$

33,091

$

37,296

$

92,197

$

52,320

$

286,907

 

Consumer

Pass

$

-

$

107

$

54

$

32

$

41

$

5,989

$

132

$

6,355

Special mention

-

-

-

-

-

-

-

-

Substandard

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

Total Consumer

$

-

$

107

$

54

$

32

$

41

$

5,989

$

132

$

6,355

 

Total

Pass

$

1,077,635

$

828,508

$

588,997

$

635,081

$

682,974

$

1,226,262

$

1,166,912

$

6,206,369

Special mention

-

-

3,600

19,618

10,019

33,395

31,107

97,739

Substandard

2,151

-

2,450

14,748

6,833

62,075

29,174

117,431

Doubtful

-

-

-

59

-

-

-

59

Grand Total

$

1,079,786

$

828,508

$

595,047

$

669,506

$

699,826

$

1,321,732

$

1,227,193

$

6,421,598

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 individually evaluated for impairment as of June 30, 2021:

June 30, 2021

Real

Estate

Other

Total

(dollars in thousands)

Commercial

$

6,598

$

26,166

$

32,764

Commercial real estate

35,802

-

35,802

Commercial construction

16,389

-

16,389

Residential real estate

10,647

-

10,647

Consumer

-

-

-

Total

$

69,436

$

26,166

$

95,602

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 six months ended June 30, 2020 (dollars in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

2020

2020

Average

Recorded

Investment

Interest

Income

Recognized

Average

Recorded

Investment

Interest

Income

Recognized

Impaired loans (no allowance)

 

Commercial

$

35,813

$

91

$

36,127

$

185

Commercial real estate

15,415

82

15,352

155

Commercial construction

17,719

87

17,545

171

Residential real estate

3,500

-

3,308

-

 

Total

$

72,447

$

260

$

72,332

$

511

 

Impaired loans (allowance):

 

Commercial real estate

$

-

$

-

$

-

$

-

Commercial construction

6,463

-

6,463

-

Residential real estate

262

1

262

3

 

Total

$

6,725

$

1

$

6,725

$

3

 

Total impaired loans:

Commercial

$

35,813

$

91

$

36,127

$

185

Commercial real estate

15,415

82

15,352

155

Commercial construction

24,182

87

24,008

171

Residential real estate

3,762

1

3,570

3

 

Total

$

79,172

$

261

$

79,057

$

514

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 June 30, 2021 and December 31, 2020 (dollars in thousands):

June 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

$

297

$

-

$

4,588

$

31,083

$

35,968

$

1,366,729

$

1,402,697

Commercial real Estate

-

-

7,607

16,005

23,612

4,114,906

4,138,518

Commercial construction

-

-

3,221

4,765

7,986

579,135

587,121

Residential real Estate

210

99

4,238

4,360

8,907

278,000

286,907

Consumer

2

-

-

-

2

6,353

6,355

Total

$

509

$

99

$

19,654

$

56,213

$

76,475

$

6,345,123

$

6,421,598

Included in the 90 days or greater past due and still accruing category as of June 30, 2021 were $16.4 million in 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:

June 30, 2021

Commercial

Commercial

Residential

Commercial

real estate

construction

real estate

Consumer

Total

(dollars in thousands)

ACL

Individually evaluated for impairment

$

15,618

$

1,485

$

434

$

349

$

-

$

17,886

Collectively evaluated for impairment

7,673

39,553

4,493

3,863

9

55,591

Acquired with deteriorated credit quality individually analyzed

2,276

2,777

-

154

-

5,207

Total

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

78,684

 

Gross loans

Individually evaluated for impairment

$

33,473

$

28,197

$

16,389

$

6,408

$

-

$

84,467

Collectively evaluated for impairment

1,364,019

4,102,715

570,732

276,260

6,355

6,320,081

Acquired with deteriorated credit quality individually analyzed

5,205

7,606

-

4,239

-

17,050

Total

$

1,402,697

$

4,138,518

$

587,121

$

286,907

$

6,355

$

6,421,598

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 June 30, 2021

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of March 31, 2021

$

26,435

$

43,897

$

5,521

$

4,704

$

11

$

-

$

80,568

 

 

 

Charge-offs

(50

)

(155

)

-

(7

)

-

-

(212

)

 

Recoveries

13

-

-

-

1

-

14

 

 

(Reversal of) provision for credit losses - loans

(831

)

73

(594

)

(331

)

(3

)

-

(1,686

)

Balance as of June 30, 2021

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

-

$

78,684

 

Six Months Ended June 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

(50

)

(155

)

-

(7

)

-

-

(212

)

 

Recoveries

73

-

-

-

2

-

75

 

Provision for (reversal of) credit losses - loans

1,326

(4,965

)

(2,306

)

(1,011

)

(6

)

-

(6,962

)

Balance as of June 30, 2021

$

25,567

$

43,815

$

4,927

$

4,366

$

9

$

-

$

78,684

 

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. We recorded a reversal of credit losses for loans of $1.7 million and $7.0 million during the three and six months ended June 30, 2021, respectively, utilizing the CECL methodology, which was the result of an improved macroeconomic environment from January 1, 2021, the day of adoption.

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 June 30, 2020

Commercial

Commercial

Residential

 

Commercial

real estate

construction

real estate

Consumer

Unallocated

Total

(dollars in thousands)

Balance as of March 31, 2020

$

9,058

$

22,036

$

7,819

$

1,681

$

3

$

13,572

$

54,169

 

 

Charge-offs

(380

)

-

-

(69

)

-

-

(449

)

 

Recoveries

2

2

-

-

-

-

4

 

 

Provision for credit losses - loans

665

617

207

78

2

13,431

15,000

 

 

Balance as of June 30, 2020

$

9,345

$

22,655

$

8,026

$

1,690

$

5

$

27,003

$

68,724

 

 

 

Six Months Ended June 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

 

 

(504

)

 

 

-

 

 

-

 

 

(69

)

 

 

(3

)

 

 

-

 

 

(576

)

 

Recoveries

 

 

2

 

 

 

2

 

 

 

-

 

 

3

 

 

 

-

 

 

 

-

 

 

7

 

 

Provision

 

 

1,498

 

 

1,800

 

 

 

722

 

 

71

 

 

5

 

 

26,904

 

 

31,000

 

 

Balance as of June 30, 2020

 

$

9,345

 

 

$

22,655

 

 

$

8,026

 

$

1,690

 

 

$

5

 

 

$

27,003

 

$

68,724

 

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 six months ended June 30, 2021:

Pre-Modification Outstanding

Post-Modification Outstanding

Number of Loans

Recorded Investment

Recorded Investment

Troubled debt restructurings:

(dollars in thousands)

Commercial

3

$

631

$

631

Commercial real estate

3

8,603

8,603

Commercial construction

1

1,641

1,641

Residential real estate

3

1,758

1,758

Total

10

$

12,633

$

12,633

Schedule of Composition of Loans by Loan Segments

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

Unpaid

Number of Loans

Principal Balance

(dollars in thousands)

Commercial

59

$

17,260

Commercial real estate

20

82,760

Total

79

$

100,020

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 six months ended June 30, 2021 (dollars in thousands):

Three Months Ended

June 30, 2021

 

Balance as of beginning of period

$

2,343

Provision for credit losses - unfunded commitments

37

Balance as of end of period

$

2,380

Six Months Ended

June 30, 2021

 

Balance as of beginning of period

$

-

Day 1 Effect of CECL

2,833

Reversal of credit losses - unfunded commitments

(453)

Balance as of end of period

$

2,380

Schedule of (Reversal of) provision for credit losses

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

Three Months Ended

June 30, 2021

Six Months Ended

June 30, 2021

 

(Reversal of) provision for credit losses - loans

$

(1,686)

$

(6,962)

(Reversal of) provision for credit losses - unfunded commitments

37

(453)

(Reversal of) provision for credit losses

$

(1,649)

$

(7,415)

v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 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 June 30, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

June 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

 

$

35,773

 

$

-

 

$

35,773

 

$

-

Residential mortgage pass-through securities

 

 

263,158

 

 

-

 

 

263,158

 

 

-

Commercial mortgage pass-through securities

 

 

8,795

 

 

-

 

 

8,795

 

 

-

Obligations of U.S. states and political subdivision

 

 

136,388

 

 

-

 

 

127,683

 

 

8,705

Corporate bonds and notes

 

 

11,621

 

 

-

 

 

11,621

 

 

-

Asset-backed securities

 

 

2,880

 

 

-

 

 

2,880

 

 

-

Certificates of deposit

 

 

151

 

 

-

 

 

151

 

 

-

Other securities

 

 

167

 

 

167

 

 

-

 

 

-

Total available-for-sale

 

$

458,933

 

$

167

 

$

450,061

 

$

8,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities

 

 

13,223

 

 

11,243

 

 

1,980

 

 

-

Total assets

 

$

472,156

 

$

11,410

 

$

452,041

 

$

8,705

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

$

(922

)

$

-

$

(922

)

$

-

Total liabilities

$

(922

)

$

-

$

(922

)

$

-

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 June 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

June 30,

Assets

Inputs

Inputs

basis:

2021

(Level 1)

(Level 2)

(Level 3)

Collateral dependent loans:

(dollars in thousands)

Commercial

$

12,928

$

-

$

-

$

12,928

Commercial real estate

1,902

-

-

1,902

Commercial construction

2,500

-

-

2,500

Residential real estate

2,033

-

-

2,033

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 six months ended June 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

(139

)

Balance as of June 30, 2021

$

8,705

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 June 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.

June 30, 2021

Valuation

Unobservable

Fair Value

Techniques

Input

Rate

Securities available-for-sale:

(dollars in thousands)

Municipal securities

$

8,705

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.

June 30, 2021

Valuation

Unobservable

(dollars in thousands)

Fair Value

Techniques

Input

Range (weighted average)

Collateral dependent:

Commercial

$

750

Appraisals of collateral value

Comparable sales

0% - 5% (2%)

 

Commercial

$

12,178

Market approach (100)

Average transfer price as a price to unpaid principal balance

48 – 53 (49)

 

Commercial real estate

$

1,902

Appraisals of collateral value

Comparable sales

0% - 25% (8%)

 

Construction

$

2,500

Appraisals of collateral value

Comparable sales

15%

 

Residential

$

2,033

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 June 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 June 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)

June 30, 2021

Financial assets:

Cash and due from banks

$

349,417

$

349,417

$

349,417

$

-

$

-

Securities available-for-sale

458,933

458,933

167

450,061

8,705

Investment in restricted stocks

22,563

n/a

n/a

n/a

n/a

Equity securities

13,223

13,223

11,243

1,980

-

Net loans

6,329,220

6,391,465

-

-

6,391,465

Accrued interest receivable

34,001

34,001

-

1,444

32,557

 

Financial liabilities:

Noninterest-bearing deposits

1,485,952

1,485,952

1,485,952

-

-

Interest-bearing deposits

4,706,561

4,710,337

3,404,754

1,305,583

-

Borrowings

353,462

355,783

-

355,783

-

Subordinated debentures

152,800

164,757

-

164,757

-

Derivatives

922

922

-

922

-

Accrued interest payable

3,083

3,083

-

3,083

-

 

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)
 6 Months Ended
Jun. 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 Loss Components

Amounts Reclassified from Accumulated

Other Comprehensive Income (Loss)

Amounts Reclassified from Accumulated

Other Comprehensive Income (Loss)

Affected Line item in the

Statement Where Net Income is Presented

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

(dollars in thousands)

Sale of investment securities

$

195

$

-

$

195

$

29

Net gains on sale of securities available-for-saleavailable Income tax expense

available for sale

(48

)

-

(48

)

(6

)

147

-

147

23

 

Net interest income on swaps

$

(584

)

$

(318

)

$

(1,215

)

$

(311

)

Borrowings

165

71

342

69

Income tax expense

(419

)

(247

)

(873

)

(242

)

 

Amortization of pension plan net

(75

)

(76

)

(150

)

(151

)

Other components of net periodic pension expense

actuarial losses

22

21

42

42

Income tax benefit

(53

)

(55

)

(108

)

(109

)

 

Total reclassification

$

(325

)

$

(302

)

$

(834

)

$

(328

)

Comprehensive Income (Loss) [Table Text Block]

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

June 30,

December 31,

2021

2020

(dollars in thousands)

Investment securities available-for-sale, net of tax

$

3,907

$

7,859

 

Cash flow hedge, net of tax

(663

)

(1,520

)

Defined benefit pension and post-retirement plans, net of tax

(3,434

)

(3,542

)

Total

$

(190

)

$

2,797

 

v3.21.2
Stock Based Compensation (Tables)
 6 Months Ended
Jun. 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 six months ended June 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 June 30, 2021

32,564

$

9.15

1.0

$

554,374

 

Exercisable as of June 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 six months ended June 30, 2021 was as follows:

Weighted-

Average

Nonvested

Grant Date

Shares

Fair Value

Nonvested as of December 31, 2020

113,114

$

18.15

Granted

49,590

25.32

Vested

(64,149

)

16.95

Forfeited/cancelled/expired

(1,608

)

24.11

Nonvested June 30, 2021

96,947

$

22.51

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

17,818

20.79

Vested shares

(29,421

)

31.35

Unearned as of June 30, 2021

173,576

233,638

$

16.99

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

Average Grant

Units

Date Fair

(expected)

Value

Unearned as of December 31, 2020

169,313

$

14.07

Awarded

45,027

25.24

Vested shares

(68,916

)

16.29

Unearned as of June 30, 2021

145,424

$

16.48

v3.21.2
Components of Net Periodic Pension Cost (Tables)
 6 Months Ended
Jun. 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 June 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

June 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

 

 

 

76

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(67)

 

 

$

(29)

 

Six Months Ended

June 30,

Affected Line Item in the Consolidated

Statements of Income

 

 

2021

 

2020

 

 

(dollars in thousands)

Service cost

 

$

-

 

 

$

-

 

Interest cost

 

 

142

 

 

 

182

 

Other components of net periodic pension expense

 

Expected return on plan assets

 

 

(426

)

 

 

(392

)

Other components of net periodic pension expense

Net amortization

 

 

150

 

 

 

151

 

Other components of net periodic pension expense

 

 

 

 

 

 

 

 

 

Total periodic pension income

 

$

(134)

 

 

$

(59

)

v3.21.2
FHLB Borrowings (Tables)
 6 Months Ended
Jun. 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:

June 30, 2021

December 31, 2020

Amount

Rate

Amount

Rate

(dollars in thousands)

Total FHLB borrowings

$

353,462

0.97

%

$

425,954

1.07

%

 

By remaining period to maturity:

Less than 1 year

$

268,420

0.93

%

$

297,570

0.84

%

1 year through less than 2 years

57,368

1.24

%

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

744

2.41

%

 

2,824

2.42

%

Total FHLB borrowings

353,582

0.97

%

426,038

1.07

%

Fair value premium (discount)

(120

)

(84

)

FHLB borrowings, net

$

353,462

$

425,954

v3.21.2
Subordinated Debentures (Tables)
 6 Months Ended
Jun. 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 June 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 ($)
Jun. 30, 2021
Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]    
Individually evaluated loans $ 84,467,000 $ 80,550,000
Collectively evaluated loans 6,320,081,000 $ 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 amounts 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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Earnings per common share:        
Net income $ 32,219 $ 14,832 $ 65,218 $ 20,862
Earnings allocated to participating securities (81) (69) (176) (94)
Income attributable to common stock $ 32,138 $ 14,763 $ 65,042 $ 20,768
Weighted average common shares outstanding, including participating securities 39,781 39,640 39,786 39,603
Weighted average participating securities (100) (104) (107) (123)
Weighted average common shares outstanding 39,681 39,536 39,679 39,480
Incremental shares from assumed conversions of options, performance units and non-participating restricted shares 192 76 214 112
Weighted average common and equivalent shares outstanding 39,873 39,612 39,893 39,592
Earnings per common share:        
Basic $ 0.81 $ 0.37 $ 1.64 $ 0.53
Diluted $ 0.81 $ 0.37 $ 1.63 $ 0.52
v3.21.2
Securities Available-for-Sale (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]    
Available-for-sale Securities Pledged as Collateral $ 178.0 $ 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
Securities Available-for-Sale (Details) - Unrealized gains on investment securities - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Securities available-for-sale    
Securities, Amortized Cost $ 453,668 $ 477,326
Securities, Gross Unrealized Gains 6,922 11,015
Securities, Gross Unrealized Losses (1,657) (386)
Securities available-for-sale 458,933 487,955
Securities, Allowance for Investment Credit Losses  
Federal agency obligations [Member]    
Securities available-for-sale    
Securities, Amortized Cost 34,649 37,015
Securities, Gross Unrealized Gains 1,197 1,508
Securities, Gross Unrealized Losses (73) (65)
Securities available-for-sale 35,773 38,458
Securities, Allowance for Investment Credit Losses  
Residential mortgage pass-through securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 261,761 266,114
Securities, Gross Unrealized Gains 2,655 4,811
Securities, Gross Unrealized Losses (1,258) (41)
Securities available-for-sale 263,158 270,884
Securities, Allowance for Investment Credit Losses  
Commercial mortgage pass-through securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 8,886 6,906
Securities, Gross Unrealized Gains 202 203
Securities, Gross Unrealized Losses (293) (187)
Securities available-for-sale 8,795 6,922
Securities, Allowance for Investment Credit Losses  
Obligations of U.S. states and political subdivisions [Member]    
Securities available-for-sale    
Securities, Amortized Cost 133,722 138,539
Securities, Gross Unrealized Gains 2,695 4,269
Securities, Gross Unrealized Losses (29)
Securities available-for-sale 136,388 142,808
Securities, Allowance for Investment Credit Losses  
Corporate bonds and notes [Member]    
Securities available-for-sale    
Securities, Amortized Cost 11,459 24,925
Securities, Gross Unrealized Gains 162 222
Securities, Gross Unrealized Losses (52)
Securities available-for-sale 11,621 25,095
Securities, Allowance for Investment Credit Losses  
Asset-backed securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 2,874 3,521
Securities, Gross Unrealized Gains 10
Securities, Gross Unrealized Losses (4) (41)
Securities available-for-sale 2,880 3,480
Securities, Allowance for Investment Credit Losses  
Certificates of deposit [Member]    
Securities available-for-sale    
Securities, Amortized Cost 150 149
Securities, Gross Unrealized Gains 1 2
Securities, Gross Unrealized Losses
Securities available-for-sale 151 151
Securities, Allowance for Investment Credit Losses  
Other securities [Member]    
Securities available-for-sale    
Securities, Amortized Cost 167 157
Securities, Gross Unrealized Gains
Securities, Gross Unrealized Losses
Securities available-for-sale 167 $ 157
Securities, Allowance for Investment Credit Losses  
v3.21.2
Securities Available-for-Sale (Details) - Investments classified by maturity date - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Securities Available-for-Sale:    
Due in one year or less, amortized cost $ 5,614  
Due in one year or less, fair value 5,637  
Due after one year through five years, amortized cost 11,193  
Due after one year through five years, fair value 11,353  
Due after five years through ten years, amortized cost 10,915  
Due after five years through ten years, fair value 11,226  
Due after ten years, amortized cost 155,132  
Due after ten years, fair value 158,597  
Total, amortized cost 453,668 $ 477,326
Total, fair value 458,933 487,955
Residential mortgage pass-through securities [Member]    
Securities Available-for-Sale:    
Total, amortized cost 261,761 266,114
Total, fair value 263,158 270,884
Commercial mortgage pass-through securities [Member]    
Securities Available-for-Sale:    
Total, amortized cost 8,886 6,906
Total, fair value 8,795 6,922
Other securities [Member]    
Securities Available-for-Sale:    
Total, amortized cost 167 157
Total, fair value $ 167 $ 157
v3.21.2
Securities Available-for-Sale (Details) - Schedule of realized gains and losses - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]        
Proceeds $ 5,185 $ 19,624
Gross gains on sales/redemption of securities 195 195 29
Gross losses on sales/redemptions of securities
Net gain on sales/redemptions of securities 195 195 29
Less: tax provision on net gain (48) (48) (6)
Net gain on sales/redemptions of securities, after tax $ 147 $ 147 $ 23
v3.21.2
Securities Available-for-Sale (Details) - Schedule of unrealized losses not recognized in income - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value $ 177,943 $ 40,838
Investment Securities Available-for-Sale: Total, Unrealized Losses (1,657) (386)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 177,376 38,365
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (1,653) (345)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 567 2,473
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses (4) (41)
Federal agency obligations [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 1,565 8,978
Investment Securities Available-for-Sale: Total, Unrealized Losses (73) (65)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 1,565 8,975
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (73) (65)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 3
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses
Residential mortgage pass-through securities [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 142,615 20,895
Investment Securities Available-for-Sale: Total, Unrealized Losses (1,258) (41)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 142,615 20,886
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (1,258) (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 4,542 3,954
Investment Securities Available-for-Sale: Total, Unrealized Losses (293) (187)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 4,542 3,954
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (293) (187)
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses
Obligations of U.S. states and political subdivisions [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 28,654  
Investment Securities Available-for-Sale: Total, Unrealized Losses (29)  
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 28,654  
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses (29)  
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value  
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
Asset-backed securities [Member]    
Investment Securities Available-for-Sale:    
Investment Securities Available-for-Sale: Total, Fair Value 567 3,083
Investment Securities Available-for-Sale: Total, Unrealized Losses (4) (41)
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value 622
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value 567 2,461
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses $ (4) $ (41)
v3.21.2
Derivatives (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Mar. 03, 2020
Jan. 02, 2020
Aug. 06, 2019
Apr. 13, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]                
Notional Amount of Interest Rate Cash Flow Hedge Derivatives         $ 25,000 $ 25,000 $ 50,000 $ 25,000
Interest expense on derivatives $ 584 $ 12 $ 318 $ 311        
v3.21.2
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]      
Notional amount $ 125,000 $ 200,000 $ 175,000
Weighted average pay rates 1.66% 1.70% 1.85%
Weighted average receive rates 0.27% 1.37% 0.92%
Weighted average maturity 6 months 1 year 2 months 12 days 9 months 18 days
Fair value $ (922) $ (3,277) $ (2,119)
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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]        
Amount of gain (loss) recognized in OCI (Effective Portion) $ (42) $ (566) $ (18) $ (3,315)
Amount of (gain) loss reclassified from OCI to interest income 584 318 1,215 311
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 - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Derivative [Line Items]      
Interest rate swaps related to FHLB advances included in assets, Fair Value $ (922) $ (2,119) $ (3,277)
Interest Rate Swap [Member]      
Derivative [Line Items]      
Interest rate swaps related to FHLB advances included in assets, Notional Amount 125,000 175,000  
Interest rate swaps related to FHLB advances included in assets, Fair Value $ (922) $ (2,119)  
v3.21.2
Loans and the Allowance for Credit Losses (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 02, 2021
USD ($)
Jun. 30, 2021
USD ($)
Loans
Jun. 30, 2021
USD ($)
Loans
Jun. 30, 2020
USD ($)
Dec. 31, 2020
USD ($)
Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]          
PPP Loans   $ 326,800 $ 326,800   $ 397,500
Non Accrual Contractual Due     90 days    
Loans Pledged as Collateral   2,700 $ 2,700   2,700
Provision for credit losses $ 6,600 $ 1,700 7,000    
Loans performing under the restructured terms     33,000   23,700
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans     29,400   25,700
Troubled debt restructurings     62,400   $ 49,400
Specific allowance of TDR's     $ 9,200 $ 47  
Number of deferred loans | Loans   79 79   113
Deferred loan   $ 100,020,000 $ 100,020,000   $ 207,000
Special Mention [Member]          
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]          
Deferred loan   $ 62,000 62,000    
90 Days or Greater Past Due and Still Accruing [Member]          
LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Details) [Line Items]          
Purchased of credit-deteriorated loan     $ 16,400    
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Composition of loan portfolio - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans $ 6,421,598 $ 6,247,681
Net deferred loan fees (13,694) (11,374)
Total loans receivable 6,407,904 6,236,307
Commercial Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans [1] 1,402,697 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 4,138,518 3,783,550
Commercial Construction Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 587,121 617,747
Residential Real Estate Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans 286,907 322,564
Consumer Portfolio Segment [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Gross loans $ 6,355 $ 1,853
[1] Included in commercial loans as of June 30, 2021 and December 31, 2020 were PPP loans of $326.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Loans held-for-sale - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]    
Total carrying amount $ 6,159 $ 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 5,298 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 $ 861 $ 2,720
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Loans receivable on nonaccrual status - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items]      
Financing Receivable, Recorded Investment, Nonaccrual Status $ 56,213 $ 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 33,665    
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 22,548    
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 31,083 33,019 $ 31,083
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 28,009    
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 3,074    
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 16,005 10,111 16,005
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 2,722    
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 13,283    
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 4,765 14,015 4,765
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 2,934    
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 1,831    
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 4,360 4,551 $ 4,360
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 4,360    
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
Jun. 30, 2021
Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 $ 1,079,786  
2020 828,508  
2019 595,047  
2018 669,506  
2017 699,826  
Prior 1,321,732  
Revolving loans 1,227,193  
Gross loans 6,421,598 $ 6,247,681
Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 324,725  
2020 185,027  
2019 66,073  
2018 82,819  
2017 109,599  
Prior 149,289  
Revolving loans 485,165  
Gross loans [1] 1,402,697 1,521,967
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 743,236  
2020 601,375  
2019 464,115  
2018 549,886  
2017 548,909  
Prior 1,073,767  
Revolving loans 157,230  
Gross loans 4,138,518 3,783,550
Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,405  
2020 7,506  
2019 37,715  
2018 3,678  
2017 3,981  
Prior 490  
Revolving loans 532,346  
Gross loans 587,121 617,747
Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 10,420  
2020 34,493  
2019 27,090  
2018 33,091  
2017 37,296  
Prior 92,197  
Revolving loans 52,320  
Gross loans 286,907 322,564
Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020 107  
2019 54  
2018 32  
2017 41  
Prior 5,989  
Revolving loans 132  
Gross loans 6,355 1,853
Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,077,635  
2020 828,508  
2019 588,997  
2018 635,081  
2017 682,974  
Prior 1,226,262  
Revolving loans 1,166,912  
Gross loans 6,206,369 6,047,888
Pass [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 324,543  
2020 185,027  
2019 64,057  
2018 69,430  
2017 99,833  
Prior 123,799  
Revolving loans 466,262  
Gross loans 1,332,951 1,447,097
Pass [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 741,267  
2020 601,375  
2019 460,081  
2018 529,053  
2017 541,823  
Prior 1,012,888  
Revolving loans 141,776  
Gross loans 4,028,263 3,700,498
Pass [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,405  
2020 7,506  
2019 37,715  
2018 3,678  
2017 3,981  
Prior 490  
Revolving loans 510,227  
Gross loans 565,002 587,266
Pass [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 10,420  
2020 34,493  
2019 27,090  
2018 32,888  
2017 37,296  
Prior 83,096  
Revolving loans 48,515  
Gross loans 273,798 311,174
Pass [Member] | Consumer Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020 107  
2019 54  
2018 32  
2017 41  
Prior 5,989  
Revolving loans 132  
Gross loans 6,355 1,853
Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019 3,600  
2018 19,618  
2017 10,019  
Prior 33,395  
Revolving loans 31,107  
Gross loans 97,739 79,868
Special Mention [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019 225  
2018 258  
2017 5,655  
Prior 4,235  
Revolving loans 15,653  
Gross loans 26,026 30,725
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019 3,375  
2018 19,360  
2017 4,364  
Prior 29,160  
Revolving loans 15,454  
Gross loans 71,713 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 2,151  
2020  
2019 2,450  
2018 14,748  
2017 6,833  
Prior 62,075  
Revolving loans 29,174  
Gross loans 117,431 119,710
Substandard [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 182  
2020  
2019 1,791  
2018 13,072  
2017 4,111  
Prior 21,255  
Revolving loans 3,250  
Gross loans 43,661 43,930
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021 1,969  
2020  
2019 659  
2018 1,473  
2017 2,722  
Prior 31,719  
Revolving loans  
Gross loans 38,542 33,909
Substandard [Member] | Commercial Construction Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018  
2017  
Prior  
Revolving loans 22,119  
Gross loans 22,119 30,481
Substandard [Member] | Residential Real Estate Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018 203  
2017  
Prior 9,101  
Revolving loans 3,805  
Gross loans 13,109 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 59  
2017  
Prior  
Revolving loans  
Gross loans 59 215
Doubtful [Member] | Commercial Portfolio Segment [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
2021  
2020  
2019  
2018 59  
2017  
Prior  
Revolving loans  
Gross loans 59 215
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 June 30, 2021 and December 31, 2020 were PPP loans of $326.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Credit Quality Indicators - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Financing Receivable, Impaired [Line Items]    
Gross loans $ 6,421,598 $ 6,247,681
Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 6,206,369 6,047,888
Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 97,739 79,868
Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 117,431 119,710
Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 59 215
Commercial Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans [1] 1,402,697 1,521,967
Commercial Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 1,332,951 1,447,097
Commercial Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 26,026 30,725
Commercial Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 43,661 43,930
Commercial Portfolio Segment [Member] | Doubtful [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 59 215
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 4,138,518 3,783,550
Commercial Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 4,028,263 3,700,498
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 71,713 49,143
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 38,542 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 587,121 617,747
Commercial Construction Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 565,002 587,266
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 22,119 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 286,907 322,564
Residential Real Estate Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 273,798 311,174
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 13,109 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 6,355 1,853
Consumer Portfolio Segment [Member] | Pass [Member]    
Financing Receivable, Impaired [Line Items]    
Gross loans 6,355 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 June 30, 2021 and December 31, 2020 were PPP loans of $326.8 million and $397.5 million, respectively.
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Fair value of collateral
$ in Thousands
Jun. 30, 2021
USD ($)
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral $ 95,602
Real Estate [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 69,436
Other [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 26,166
Commercial Portfolio Segment [Member]  
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items]  
Fair value of collateral 32,764
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 6,598
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 26,166
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 35,802
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 35,802
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 16,389
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 16,389
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 10,647
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 10,647
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 6 Months Ended
Jun. 30, 2020
Jun. 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 $ 72,447 $ 72,332  
Impaired loans with No Related Allowance Interest Income Recognized 260 511  
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 6,725 6,725  
Impaired loans With An Allowance Recorded Interest Income Recognized 1 3  
Total, Recorded Investment     80,550
Total, Unpaid Principal Balance     127,758
Total, Related Allowance     14,314
Total Impaired Loans Average Recorded Investment 79,172 79,057  
Total Impaired Loans Interest Income Recognized 261 514  
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 35,813 36,127  
Impaired loans with No Related Allowance Interest Income Recognized 91 185  
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
Total, Recorded Investment     35,061
Total, Unpaid Principal Balance     80,957
Total, Related Allowance     12,985
Total Impaired Loans Average Recorded Investment 35,813 36,127  
Total Impaired Loans Interest Income Recognized 91 185  
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 15,415 15,352  
Impaired loans with No Related Allowance Interest Income Recognized 82 155  
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  
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 15,415 15,352  
Total Impaired Loans Interest Income Recognized 82 155  
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 17,719 17,545  
Impaired loans with No Related Allowance Interest Income Recognized 87 171  
Impaired loans With An Allowance Recorded Average Recorded Investment 6,463 6,463  
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 24,182 24,008  
Total Impaired Loans Interest Income Recognized 87 171  
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 3,500 3,308  
Impaired loans with No Related Allowance Interest Income Recognized  
Impaired loans With An Allowance Recorded Average Recorded Investment 262 262  
Impaired loans With An Allowance Recorded Interest Income Recognized 1 3  
Total, Recorded Investment     5,378
Total, Unpaid Principal Balance     5,723
Total, Related Allowance    
Total Impaired Loans Average Recorded Investment 3,762 3,570  
Total Impaired Loans Interest Income Recognized $ 1 $ 3  
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
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Financing Receivable, Past Due [Line Items]      
Nonaccrual $ 56,213 $ 61,696  
Total Past Due and Nonaccrual 76,475 98,000  
Gross Loans 6,421,598 6,247,681  
Commercial Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Nonaccrual 31,083 33,019 $ 31,083
Total Past Due and Nonaccrual 35,968 38,204  
Gross Loans 1,402,697 1,521,967  
Commercial Real Estate Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Nonaccrual 16,005 10,111 16,005
Total Past Due and Nonaccrual 23,612 33,064  
Gross Loans 4,138,518 3,783,550  
Commercial Construction Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Nonaccrual 4,765 14,015 4,765
Total Past Due and Nonaccrual 7,986 16,487  
Gross Loans 587,121 617,747  
Residential Real Estate Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Nonaccrual 4,360 4,551 $ 4,360
Total Past Due and Nonaccrual 8,907 10,243  
Gross Loans 286,907 322,564  
Consumer Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Nonaccrual  
Total Past Due and Nonaccrual 2 2  
Gross Loans 6,355 1,853  
Current [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 6,345,123 6,149,681  
Current [Member] | Commercial Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 1,366,729 1,483,763  
Current [Member] | Commercial Real Estate Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 4,114,906 3,750,486  
Current [Member] | Commercial Construction Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 579,135 601,260  
Current [Member] | Residential Real Estate Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 278,000 312,321  
Current [Member] | Consumer Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 6,353 1,851  
30 - 59 Days Past Due [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 509 18,544  
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 297 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 210 1,367  
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 2 2  
60 - 89 Days Past Due [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 99 4,939  
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 558  
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member]      
Financing Receivable, Past Due [Line Items]      
Total Past Due and Nonaccrual 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 99 241  
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 19,654 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 4,588 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 7,607 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 3,221  
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 4,238 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
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Mar. 31, 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 $ 17,886   $ 14,314      
ACL, Collectively evaluated for impairment 55,591   59,072      
ACL, Acquired portfolio     5,840      
ACL, Acquired with deteriorated credit quality individually analyzed 5,207        
Total 78,684 $ 80,568 79,226 $ 68,724 $ 54,169 $ 38,293
Gross loans            
Loans Receivable, Individually evaluated for impairment 84,467   80,550      
Loans Receivable, Collectively evaluated for impairment 6,320,081   5,192,274      
Loans Receivable, Acquired portfolio     961,340      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 17,050   13,517      
Total 6,421,598   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 15,618   12,985      
ACL, Collectively evaluated for impairment 7,673   15,412      
ACL, Acquired portfolio     46      
ACL, Acquired with deteriorated credit quality individually analyzed 2,276        
Total 25,567 26,435 28,443 9,345 9,058 8,349
Gross loans            
Loans Receivable, Individually evaluated for impairment 33,473   35,061      
Loans Receivable, Collectively evaluated for impairment 1,364,019   1,414,626      
Loans Receivable, Acquired portfolio     68,402      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 5,205   3,878      
Total [1] 1,402,697   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 1,485   1,329      
ACL, Collectively evaluated for impairment 39,553   33,373      
ACL, Acquired portfolio     4,628      
ACL, Acquired with deteriorated credit quality individually analyzed 2,777        
Total 43,815 43,897 39,330 22,655 22,036 20,853
Gross loans            
Loans Receivable, Individually evaluated for impairment 28,197   15,827      
Loans Receivable, Collectively evaluated for impairment 4,102,715   2,959,978      
Loans Receivable, Acquired portfolio     802,190      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 7,606   5,555      
Total 4,138,518   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 434        
ACL, Collectively evaluated for impairment 4,493   7,787      
ACL, Acquired portfolio     407      
ACL, Acquired with deteriorated credit quality individually analyzed        
Total 4,927 5,521 8,194 8,026 7,819 7,304
Gross loans            
Loans Receivable, Individually evaluated for impairment 16,389   24,284      
Loans Receivable, Collectively evaluated for impairment 570,732   574,118      
Loans Receivable, Acquired portfolio     19,345      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed        
Total 587,121   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 349        
ACL, Collectively evaluated for impairment 3,863   1,928      
ACL, Acquired portfolio     759      
ACL, Acquired with deteriorated credit quality individually analyzed 154        
Total 4,366 4,704 2,687 1,690 1,681 1,685
Gross loans            
Loans Receivable, Individually evaluated for impairment 6,408   5,378      
Loans Receivable, Collectively evaluated for impairment 276,260   241,925      
Loans Receivable, Acquired portfolio     71,177      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed 4,239   4,084      
Total 286,907   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 9   4      
ACL, Acquired portfolio          
ACL, Acquired with deteriorated credit quality individually analyzed        
Total 9 11 4 5 3 3
Gross loans            
Loans Receivable, Individually evaluated for impairment        
Loans Receivable, Collectively evaluated for impairment 6,355   1,627      
Loans Receivable, Acquired portfolio     226      
Loans Receivables, Acquired with deteriorated credit quality individually analyzed        
Total 6,355   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 $ 27,003 $ 13,572 $ 99
[1] Included in commercial loans as of June 30, 2021 and December 31, 2020 were PPP loans of $326.8 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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance $ 80,568 $ 54,169 $ 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 (212) (449) (212) (576)
Recoveries 14 4 75 7
(Reversal of) provision for credit losses (loans) (1,686) 15,000 (6,962) 31,000
Balance 78,684 68,724 78,684 68,724
Commercial Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 26,435 9,058 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 (50) (380) (50) (504)
Recoveries 13 2 73 2
(Reversal of) provision for credit losses (loans) (831) 665 1,326 1,498
Balance 25,567 9,345 25,567 9,345
Commercial Real Estate Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 43,897 22,036 39,330 20,853
Day 1 effect of CECL     9,605  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     48,935  
Charge-offs (155) (155)
Recoveries 2 2
(Reversal of) provision for credit losses (loans) 73 617 (4,965) 1,800
Balance 43,815 22,655 43,815 22,655
Commercial Construction Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 5,521 7,819 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) (594) 207 (2,306) 722
Balance 4,927 8,026 4,927 8,026
Residential Real Estate Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 4,704 1,681 2,687 1,685
Day 1 effect of CECL     2,697  
Balance as of January 1, 2021 as adjusted for changes in accounting principle     5,384  
Charge-offs (7) (69) (7) (69)
Recoveries 3
(Reversal of) provision for credit losses (loans) (331) 78 (1,011) 71
Balance 4,366 1,690 4,366 1,690
Consumer Portfolio Segment [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 11 3 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 1 2
(Reversal of) provision for credit losses (loans) (3) 2 (6) 5
Balance 9 5 9 5
Unallocated [Member]        
Financing Receivable, Allowance for Credit Loss [Line Items]        
Balance 13,572 568 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) 13,431 26,904
Balance $ 27,003 $ 27,003
v3.21.2
Loans and the Allowance for Credit Losses (Details) - Schedule of Troubled Debt Restructuring by Class
$ in Thousands
 6 Months Ended
Jun. 30, 2021
USD ($)
Integer
Troubled debt restructurings:  
Number of Loans | Integer 10
Pre-Modification Outstanding Recorded Investment $ 12,633
Post-Modification Outstanding Recorded Investment $ 12,633
Commercial Portfolio Segment [Member]  
Troubled debt restructurings:  
Number of Loans | Integer 3
Pre-Modification Outstanding Recorded Investment $ 631
Post-Modification Outstanding Recorded Investment $ 631
Commercial Real Estate Portfolio Segment [Member]  
Troubled debt restructurings:  
Number of Loans | Integer 3
Pre-Modification Outstanding Recorded Investment $ 8,603
Post-Modification Outstanding Recorded Investment $ 8,603
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
Jun. 30, 2021
USD ($)
Loans
Dec. 31, 2020
USD ($)
Loans
Financing Receivable, Past Due [Line Items]    
Number of loans | Loans 79 113
Unpaid Principal Balance | $ $ 100,020,000 $ 207,000
Commercial Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Number of loans | Loans 59  
Unpaid Principal Balance | $ $ 17,260  
Commercial Real Estate Portfolio Segment [Member]    
Financing Receivable, Past Due [Line Items]    
Number of loans | Loans 20  
Unpaid Principal Balance | $ $ 82,760  
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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2021
Receivables [Abstract]    
Balance $ 2,343
Day 1 Effect of CECL   2,833
(Reversal of) provision for credit losses (unfunded commitments) 37 (453)
Balance $ 2,380 $ 2,380
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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2021
Receivables [Abstract]    
(Reversal of) provision for credit losses (loans) $ (1,686) $ (6,962)
(Reversal of) provision for credit losses (unfunded commitments) 37 (453)
(Reversal of) provision for credit losses $ (1,649) $ (7,415)
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Impaired Financing Receivable, with Related Allowance, Recorded Investment   $ 26,458
Impaired Financing Receivable, Related Allowance $ 17,886 14,314
Impaired Loans [Member]    
Impaired Financing Receivable, with Related Allowance, Recorded Investment 40,000 26,500
Impaired Financing Receivable, Related Allowance $ 20,600 $ 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
Jun. 30, 2021
Dec. 31, 2020
Available-for-sale:    
Securities available-for-sale $ 458,933 $ 487,955
Equity securities 13,223 13,387
LIABILITIES    
Derivatives 922 2,119
Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 167 157
Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 450,061 478,954
Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,705 8,844
Federal agency obligations [Member]    
Available-for-sale:    
Securities available-for-sale 35,773 38,458
Residential mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 263,158 270,884
Commercial mortgage pass-through securities [Member]    
Available-for-sale:    
Securities available-for-sale 8,795 6,922
Obligations of U.S. states and political subdivisions [Member]    
Available-for-sale:    
Securities available-for-sale 136,388 142,808
Corporate bonds and notes [Member]    
Available-for-sale:    
Securities available-for-sale 11,621 25,095
Asset-backed securities [Member]    
Available-for-sale:    
Securities available-for-sale 2,880 3,480
Certificates of deposit [Member]    
Available-for-sale:    
Securities available-for-sale 151 151
Other securities [Member]    
Available-for-sale:    
Securities available-for-sale 167 157
Recurring [Member]    
Available-for-sale:    
Securities available-for-sale 458,933 487,955
Equity securities 13,223 13,387
Total assets 472,156 501,342
LIABILITIES    
Derivatives (922) (2,119)
Total liabilities (922) (2,119)
Recurring [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 167 157
Equity securities 11,243 13,387
Total assets 11,410 13,544
LIABILITIES    
Derivatives
Total liabilities
Recurring [Member] | Fair Value, Inputs, Level 2 [Member]    
Available-for-sale:    
Securities available-for-sale 450,061 478,954
Equity securities 1,980  
Total assets 452,041 478,954
LIABILITIES    
Derivatives (922) (2,119)
Total liabilities (922) (2,119)
Recurring [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,705 8,844
Equity securities  
Total assets 8,705 8,844
LIABILITIES    
Derivatives
Total liabilities
Recurring [Member] | Federal agency obligations [Member]    
Available-for-sale:    
Securities available-for-sale 35,773 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 35,773 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 263,158 270,884
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 263,158 270,884
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 8,795 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 8,795 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 136,388 142,808
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 127,683 133,964
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member]    
Available-for-sale:    
Securities available-for-sale 8,705 8,844
Recurring [Member] | Corporate bonds and notes [Member]    
Available-for-sale:    
Securities available-for-sale 11,621 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 11,621 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 2,880 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 2,880 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 151 151
Recurring [Member] | Other securities [Member]    
Available-for-sale:    
Securities available-for-sale 167 157
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Available-for-sale:    
Securities available-for-sale 167 157
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 151 151
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
Jun. 30, 2021
Dec. 31, 2020
Commercial Portfolio Segment [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value $ 12,928 $ 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 12,928 10,751
Commercial Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 1,902 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 1,902 $ 1,393
Commercial construction [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 2,500  
Commercial construction [Member] | Fair Value, Inputs, Level 1 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value  
Commercial construction [Member] | Fair Value, Inputs, Level 2 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value  
Commercial construction [Member] | Fair Value, Inputs, Level 3 [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 2,500  
Residential Real Estate [Member]    
Assets Measured at Fair Value on a Non-Recurring Basis:    
Fair value 2,033  
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 $ 2,033  
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
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Balance of recurring Level 3 assets at January 1 $ 8,844 $ 9,114
Principal paydowns (139) (270)
Balance of recurring Level 3 assets at December 31 $ 8,705 $ 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
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Fair value $ 472,156 $ 501,342
Municipal Securities [Member]    
Fair value $ 8,705 $ 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
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Commercial Portfolio Segment [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 12,928 $ 10,751
Commercial Real Estate [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value 1,902 1,393
Commercial construction [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value 2,500  
Non-recurring [Member] | Commercial Portfolio Segment [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 12,178 $ 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 $ 750 $ 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 $ 1,902 $ 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 25.00% (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 0.00% 20.00%
Non-recurring [Member] | Commercial construction [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 2,500  
Valuation Techniques Appraisals of collateral value  
Unobservable Input Comparable sales  
Non-recurring [Member] | Commercial construction [Member] | Sales comparison approach [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 15.00%  
Non-recurring [Member] | Residential [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value $ 2,033  
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 15.00%  
Non-recurring [Member] | Residential [Member] | Sales comparison approach [Member] | Maximum [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Capitalization rate 1.00%  
v3.21.2
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Financial assets        
Cash and due from banks, Carrying Amount $ 349,417 $ 303,756 $ 349,361 $ 201,483
Cash and due from banks, Fair Value 349,417 303,756    
Securities available-for-sale, Carrying Amount 458,933 487,955    
Securities available-for-sale 458,933 487,955    
Investment in restricted stocks, Carrying Amount 22,563 25,099    
Investment in restricted stocks, Fair Value    
Equity securities, Carrying Amount 13,223 13,387    
Equity securities, Fair Value 13,223 13,387    
Net loans, Carrying Amount 6,329,220 6,157,081    
Net loans, Fair Value 6,391,465 6,244,037    
Accrued interest receivable, Carrying Amount 34,001 35,317    
Accrued interest receivable, Fair Value 34,001 35,317    
Financial liabilities        
Noninterest-bearing deposits, Carrying Amount 1,485,952 1,339,108    
Noninterest-bearing deposits, Fair Value 1,485,952 1,339,108    
Interest-bearing deposits, Carrying Amount 4,706,561 4,620,116    
Interest-bearing deposits, Fair Value 4,710,337 4,633,961    
Borrowings, Carrying Amount 353,462 425,954    
Borrowings, Fair Value 355,783 429,671    
Subordinated debentures, Carrying Amount 152,800 202,648    
Subordinated debentures, Fair Value 164,757 214,113    
Derivatives, Carrying Amount 922 2,119    
Derivatives, Fair Value 922 2,119    
Accrued interest payable, Carrying Amount 3,083 3,687    
Accrued interest payable, Fair Value 3,083 3,687    
Fair Value, Inputs, Level 1 [Member]        
Financial assets        
Cash and due from banks, Fair Value 349,417 303,756    
Securities available-for-sale 167 157    
Investment in restricted stocks, Fair Value    
Equity securities, Fair Value 11,243 13,387    
Net loans, Fair Value    
Accrued interest receivable, Fair Value    
Financial liabilities        
Noninterest-bearing deposits, Fair Value 1,485,952 1,339,108    
Interest-bearing deposits, Fair Value 3,404,754 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 450,061 478,954    
Investment in restricted stocks, Fair Value    
Equity securities, Fair Value 1,980    
Net loans, Fair Value    
Accrued interest receivable, Fair Value 1,444 1,764    
Financial liabilities        
Noninterest-bearing deposits, Fair Value    
Interest-bearing deposits, Fair Value 1,305,583 1,477,978    
Borrowings, Fair Value 355,783 429,671    
Subordinated debentures, Fair Value 164,757 214,113    
Derivatives, Fair Value 922 2,119    
Accrued interest payable, Fair Value 3,083 3,687    
Fair Value, Inputs, Level 3 [Member]        
Financial assets        
Cash and due from banks, Fair Value    
Securities available-for-sale 8,705 8,844    
Investment in restricted stocks, Fair Value    
Equity securities, Fair Value    
Net loans, Fair Value 6,391,465 6,244,037    
Accrued interest receivable, Fair Value 32,557 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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 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 $ 271 $ (1,423) $ (5,169) $ 4,829
Sale of securities available-for-sale Income tax expense (68) 392 1,364 (1,299)
Net interest income on swaps - Borrowings (584) (12) (318) (311)
Net interest income on swaps Income tax expense 167 71 344 69
Net interest income on swaps 417 247 871 242
Total reclassification 499 (1,155) (2,987) 1,456
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 195 195 29
Sale of securities available-for-sale Income tax expense (48) (48) (6)
Sale of securities available-for-sale 147 147 23
Net interest income on swaps - Borrowings (584) (318) (1,215) (311)
Net interest income on swaps Income tax expense 165 71 342 69
Net interest income on swaps (419) (247) (873) (242)
Amortization of pension plan net actuarial losses - other components of net periodic pension expense (75) (76) (150) (151)
Amortization of pension plan net actuarial losses Income tax benefit 22 21 42 42
Amortization of pension plan net actuarial losses (53) (55) (108) (109)
Total reclassification $ (325) $ (302) $ (834) $ (328)
v3.21.2
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract]    
Investment securities available-for-sale, net of tax $ 3,907 $ 7,859
Cash flow hedge, net of tax (663) (1,520)
Defined benefit pension and post-retirement plans, net of tax (3,434) (3,542)
Total accumulated other comprehensive loss $ (190) $ 2,797
v3.21.2
Stock Based Compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Dec. 31, 2017
Stock-based compensation $ 1,000 $ 700 $ 1,957 $ 1,201    
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 $ 1,800   $ 1,800      
Weighted average period related to compesation cost     1 year 4 months 24 days      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 145,424   145,424   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 $ 1,700   $ 1,700      
Weighted average period related to compesation cost     1 year 9 months 18 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 $ 2,000   $ 2,000      
Weighted average period related to compesation cost     2 years 1 month 6 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)     332,628      
v3.21.2
Stock Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2021
Jun. 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
 6 Months Ended
Jun. 30, 2021
$ / shares
shares
Granted
Nonvested [Member]  
Nonvested at December 31, 2020 113,114
Granted 49,590
Vested (64,149)
Forfeited/cancelled/expired (1,608)
Nonvested June 30, 2021 96,947
Outstanding, beginning balance | $ / shares $ 18.15
Granted | $ / shares 25.32
Vested | $ / shares 16.95
Forfeited/cancelled/expired | $ / shares 24.11
Outstanding, ending balance | $ / shares $ 22.51
v3.21.2
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares
 6 Months Ended
Jun. 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 17,818
Vested shares (29,421)
Outstanding Ending Balance 173,576
Outstanding, beginning balance | $ / shares $ 17.29
Awarded | $ / shares 25.24
Change in estimate | $ / shares 20.79
Vested shares | $ / shares 31.35
Outstanding, ending balance | $ / shares $ 16.99
Unearned [Member] | Maximum [Member]  
Outstanding Ending Balance 233,638
Restricted Stock [Member]  
Outstanding Beginning Balance 169,313
Awarded 45,027
Vested shares (68,916)
Outstanding Ending Balance 145,424
Outstanding, beginning balance | $ / shares $ 14.07
Awarded | $ / shares 25.24
Vested shares | $ / shares 16.29
Outstanding, ending balance | $ / shares $ 16.48
v3.21.2
Components of Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Average daily balance during the year        
Service cost
Interest cost 71 91 142 182
Expected return on plan assets (213) (196) (426) (392)
Net amortization 75 76 150 151
Total periodic pension income $ (67) $ (29) $ (134) $ (59)
v3.21.2
FHLB Borrowings (Details)
$ in Billions
Jun. 30, 2021
USD ($)
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]  
Value of commercial loans used as collateral for FHLB advances $ 2.0
Remaining borrowing capacity $ 1.2
v3.21.2
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($)
$ in Thousands
Jun. 30, 2021
Dec. 31, 2020
By type of borrowing:    
FHLB borrowings (in Dollars) $ 353,462 $ 425,954
Weighted average interest rates 0.97% 1.07%
By remaining period to maturity:    
Less than 1 year (in Dollars) $ 268,420 $ 297,570
Less than 1 year 0.93% 0.84%
1 year through less than 2 years (in Dollars) $ 57,368 $ 75,644
1 year through less than 2 years 1.24% 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) $ 744 $ 2,824
After 5 years 2.41% 2.42%
Total FHLB borrowings (in Dollars) $ 353,582 $ 426,038
Fair value premium (discount) (120) (84)
Total borrowings $ 353,462 $ 425,954
v3.21.2
Subordinated Debentures (Details) - USD ($)
$ in Millions
 1 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2020
Jan. 31, 2018
Jun. 30, 2015
Jun. 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       3.04%  
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
 6 Months Ended 12 Months Ended
Jun. 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