3 unchanged sentences
(Amounts in thousands except share data)
−Removed: June 30, 2022 December 31, 2021
+Added: September 30, 2022 December 31, 2021
Cash and due from banks $ 14,743 $ 7,492
44 unchanged sentences
(Amounts in thousands except share and per share data)
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Interest Income
44 unchanged sentences
(Amounts in thousands except per share data)
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
2 unchanged sentences
Securities available-for-sale
−Removed: Net unrealized holding (losses) gains recorded within other comprehensive income before income tax ( 15,395 ) 1,388 ( 33,276 ) ( 807 )
−Removed: Income tax (benefit) provision ( 4,186 ) 333 ( 8,263 ) ( 175 )
+Added: Net unrealized holding losses recorded within other comprehensive income before income tax ( 18,406 ) ( 1,789 ) ( 51,682 ) ( 2,596 )
+Added: Income tax benefit ( 5,121 ) ( 441 ) ( 13,384 ) ( 616 )
Net effect on other comprehensive (loss) income ( 13,285 ) ( 1,348 ) ( 38,298 ) ( 1,980 )
2 unchanged sentences
Amortization of net unrealized holding losses on securities transferred from available-for-sale to held-to-maturity 296 — 608 —
−Removed: Income tax benefit ( 23 ) — ( 1,272 ) —
−Removed: Net effect on other comprehensive income (loss) 216 — ( 3,818 ) —
−Removed: Cash flow hedges
−Removed: Net unrealized holding gains (losses) on cash flow hedging derivatives recorded within other comprehensive income before income tax 4,944 ( 54 ) 14,278 6,226
Income tax provision (benefit) 69 — ( 1,203 ) —
−Removed: Net effect on other comprehensive income (loss) 3,104 ( 46 ) 9,120 4,917
+Added: Net effect on other comprehensive (loss) income 227 — ( 3,591 ) —
+Added: Cash flow hedges
+Added: Net unrealized holding gains on cash flow hedging derivatives recorded within other comprehensive income before income tax 6,058 1,439 19,424 7,665
+Added: Income tax provision 1,393 348 5,639 1,657
+Added: Net effect on other comprehensive (loss) income 4,665 1,091 13,785 6,008
Total other comprehensive (loss) income ( 8,393 ) ( 257 ) ( 28,104 ) 4,028
3 unchanged sentences
Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited
−Removed: Six Months Ended June 30, 2022 and 2021
+Added: Nine Months Ended September 30, 2022 and 2021
(Amounts in thousands except per share data)
13 unchanged sentences
Common stock redeemed for the net settlement of share-based awards ( 179 ) — — ( 179 )
−Removed: Balance, June 30, 2022 $ 204,071 $ 192,011 $ ( 30,750 ) $ 365,332
+Added: Balance, September 30, 2022 $ 200,123 $ 199,877 $ ( 39,143 ) $ 360,857
Balance, January 1, 2021 $ 221,408 $ 126,732 $ ( 17,196 ) $ 330,944
6 unchanged sentences
Common stock redeemed for the net settlement of share-based awards ( 195 ) — — ( 195 )
−Removed: Balance, June 30, 2021 $ 222,486 $ 149,066 $ ( 12,911 ) $ 358,641
+Added: Balance, September 30, 2021 $ 223,059 $ 160,551 $ ( 13,168 ) $ 370,442
See Notes to Condensed Consolidated Financial Statements
1 unchanged sentence
Condensed Consolidated Statements of Changes in Shareholders’ Equity - Unaudited
−Removed: Three Months Ended June 30, 2022 and 2021
+Added: Three Months Ended September 30, 2022 and 2021
(Amounts in thousands except per share data)
3 unchanged sentences
Shareholders’
−Removed: Balance, April 1, 2022 $ 214,473 $ 183,043 $ ( 22,861 ) $ 374,655
+Added: Balance July 1, 2022 $ 204,071 $ 192,011 $ ( 30,750 ) $ 365,332
Net income — 8,436 — 8,436
6 unchanged sentences
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 5 — — 5
−Removed: Common stock redeemed for the net settlement of share-based awards ( 179 ) — — ( 179 )
−Removed: Balance, June 30, 2022 $ 204,071 $ 192,011 $ ( 30,750 ) $ 365,332
−Removed: Balance, April 1, 2021 $ 221,911 $ 136,575 $ ( 13,920 ) $ 344,566
+Added: Balance, September 30, 2022 $ 200,123 $ 199,877 $ ( 39,143 ) $ 360,857
+Added: Balance July 1, 2021 $ 222,486 $ 149,066 $ ( 12,911 ) $ 358,641
Net income — 12,090 — 12,090
−Removed: Other comprehensive income — — 1,009 1,009
+Added: Other comprehensive loss — — ( 257 ) ( 257 )
Dividends declared ($ 0.06 per share)
2 unchanged sentences
Deferred stock rights and restricted stock units issued in lieu of cash dividends payable on outstanding deferred stock rights and restricted stock units 5 — — 5
−Removed: Balance, June 30, 2021 $ 222,486 $ 149,066 $ ( 12,911 ) $ 358,641
+Added: Balance, September 30, 2021 $ 223,059 $ 160,551 $ ( 13,168 ) $ 370,442
See Notes to Condensed Consolidated Financial Statements
2 unchanged sentences
(Amounts in thousands except per share data)
−Removed: Six Months Ended June 30,
+Added: Nine Months Ended September 30,
Operating Activities
9 unchanged sentences
Decrease in fair value of loans held-for-sale 599 854
−Removed: Gain on derivatives ( 2,546 ) ( 1,384 )
+Added: (Gain) loss on derivatives ( 3,625 ) 1,870
+Added: Settlement of derivatives — ( 1,859 )
Loan servicing asset revaluation 1,100 669
10 unchanged sentences
Redemption of Federal Home Loan Bank of Indianapolis stock 431 —
+Added: Purchase of Federal Home Loan Bank of Indianapolis stock ( 3,131 ) —
Net proceeds from sale of premises and equipment — 8,116
5 unchanged sentences
Financing Activities
−Removed: Net decrease in deposits ( 26,858 ) ( 64,738 )
+Added: Net increase (decrease) in deposits 13,685 ( 46,290 )
Cash dividends paid ( 1,733 ) ( 1,802 )
Repayment of subordinated debt — ( 35,000 )
+Added: Net proceeds from issuance of subordinated debt — 58,658
Repurchase of common stock ( 20,626 ) —
2 unchanged sentences
Other, net ( 179 ) ( 194 )
−Removed: Net cash used in financing activities ( 94,445 ) ( 76,134 )
+Added: Net cash provided by (used in) financing activities 66,147 ( 24,628 )
Net Decrease in Cash and Cash Equivalents ( 221,908 ) ( 12,291 )
19 unchanged sentences
In our opinion, all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation have been included.
−Removed: The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results expected for the year ending December 31, 2022 or any other period.
−Removed: The June 30, 2022 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the First Internet Bancorp Annual Report on Form 10-K for the year ended December 31, 2021.
+Added: The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the year ending December 31, 2022 or any other period.
+Added: The September 30, 2022 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the First Internet Bancorp Annual Report on Form 10-K for the year ended December 31, 2021.
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, or assumptions that could have a material effect on the carrying value of certain assets and liabilities.
9 unchanged sentences
Earnings per share of common stock are based on the weighted-average number of basic shares and dilutive shares outstanding during the period.
−Removed: The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three and six months ended June 30, 2022 and 2021.
−Removed: (dollars in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30,
+Added: The following is a reconciliation of the weighted-average common shares for the basic and diluted earnings per share computations for the three and nine months ended September 30, 2022 and 2021.
+Added: (dollars in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30,
2022 2021 2022 2021
11 unchanged sentences
(1) Potential dilutive common shares are excluded from the computation of diluted EPS in the periods where the effect would be antidilutive.
−Removed: Excluded from the computation of diluted EPS were weighted-average antidilutive shares totaling 5,560 and 1,198 for the three and six months ended June 30, 2022, respectively.
−Removed: There were 6 and 3 weighted-average antidilutive shares for the three and six months ended June 30, 2021, respectively.
−Removed: The following tables summarize securities available-for-sale and securities held-to-maturity as of June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: Excluded from the computation of diluted EPS were weighted-average antidilutive shares totaling 426 and 1,616 for the three and nine months ended September 30, 2022, respectively.
+Added: There were 0 and 28 weighted-average antidilutive shares for the three and nine months ended September 30, 2021, respectively.
+Added: The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
Amortized Gross Unrealized Fair
9 unchanged sentences
Total available-for-sale $ 448,710 $ 206 $ ( 55,351 ) $ 393,565
−Removed: June 30, 2022
+Added: September 30, 2022
Amortized Gross Unrealized Fair
26 unchanged sentences
Total held-to-maturity $ 59,565 $ 1,903 $ — $ 61,468
−Removed: The carrying value of securities at June 30, 2022 is shown below by their contractual maturity date.
+Added: The carrying value of securities at September 30, 2022 is shown below by their contractual maturity date.
Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
19 unchanged sentences
Total $ 191,057 $ 169,977
−Removed: There were no gross gains or losses resulting from the sale of available-for-sale securities during the three and six months ended June 30, 2022 and June 30, 2021, respectively.
+Added: There were no gross gains or losses resulting from the sale of available-for-sale securities during the three and nine months ended September 30, 2022 and September 30, 2021, respectively.
Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost.
−Removed: The total fair value of these investments at June 30, 2022 and December 31, 2021 was $ 553.8 million and $ 403.2 million, which was approximately 92 % and 61 %, respectively, of the Company’s AFS and HTM securities portfolios.
−Removed: As of June 30, 2022, the Company’s security portfolio consisted of 444 securities, of which 407 were in an unrealized loss position.
+Added: The total fair value of these investments at September 30, 2022 and December 31, 2021 was $ 541.0 million and $ 403.2 million, which was approximately 96 % and 61 %, respectively, of the Company’s AFS and HTM securities portfolios.
+Added: As of September 30, 2022, the Company’s security portfolio consisted of 447 securities, of which 438 were in an unrealized loss position.
The unrealized losses are related to the categories noted below.
6 unchanged sentences
The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments.
−Removed: Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2022.
+Added: Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2022.
Agency Mortgage-Backed, Private Label Mortgage-Backed and Asset-Backed Securities
1 unchanged sentence
The Company expects to recover the amortized cost bases over the terms of the securities.
−Removed: Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2022.
−Removed: The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2022.
+Added: The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
Less Than 12 Months 12 Months or Longer Total
12 unchanged sentences
Total $ 319,808 $ ( 46,330 ) $ 56,791 $ ( 9,021 ) $ 376,599 $ ( 55,351 )
−Removed: June 30, 2022
+Added: September 30, 2022
Less Than 12 Months 12 Months or Longer Total
25 unchanged sentences
Total $ 312,593 $ ( 4,167 ) $ 90,636 $ ( 3,524 ) $ 403,229 $ ( 7,691 )
−Removed: There were no amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statements of income during the three and six months ended June 30, 2022 and June 30, 2021, respectively.
−Removed: Loan balances as of June 30, 2022 and December 31, 2021 are summarized in the table below.
+Added: There were no amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statements of income during the three and nine months ended September 30, 2022 and September 30, 2021, respectively.
+Added: Loan balances as of September 30, 2022 and December 31, 2021 are summarized in the table below.
Categories of loans include:
−Removed: (in thousands) June 30, 2022 December 31, 2021
+Added: (in thousands) September 30, 2022 December 31, 2021
Commercial loans
13 unchanged sentences
Other consumer loans 312,512 265,478
−Removed: Tax refund advance loans — —
Total consumer loans 672,191 469,913
5 unchanged sentences
Net loans $ 3,226,040 $ 2,859,821
−Removed: (1) Includes carrying value adjustments of $ 35.4 million and $ 37.5 million related to terminated interest rate swaps associated with public finance loans as of June 30, 2022 and December 31, 2021, respectively.
+Added: (1) Includes carrying value adjustments of $ 33.9 million and $ 37.5 million related to terminated interest rate swaps associated with public finance loans as of September 30, 2022 and December 31, 2021, respectively.
Risk characteristics of each loan portfolio segment are as follows:
45 unchanged sentences
Healthcare Finance:
−Removed: These loans are made on a nationwide basis to healthcare providers, primarily dentists, for practice acquisition financing or refinancing that occasionally includes owner-occupied commercial real estate and equipment purchases.
+Added: These loans were made on a nationwide basis to healthcare providers, primarily dentists, for practice acquisition financing or refinancing that occasionally includes owner-occupied commercial real estate and equipment purchases.
The sources of repayment are primarily based on the identified cash flows from operations of the borrower and related entities and secondarily on the underlying collateral provided by the borrower.
26 unchanged sentences
Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers in geographically diverse locations throughout the country.
−Removed: Tax Refund Advance Loans:
−Removed: These loans provide short-term tax refund advance loans to eligible individual taxpayers.
−Removed: Due to the nature of tax refund advance loans, it typically takes no more than three weeks from when the return is accepted by the IRS to collect from the borrower.
−Removed: In the event of default, the Bank has no recourse against the tax consumer.
−Removed: The Bank will charge off the balance of a tax refund advance loan if there is a balance at the end of the program year, or when collection of principal becomes doubtful.
Allowance for Loan Losses Methodology
22 unchanged sentences
A home improvement loan generally is charged off no later than when it is 90 days past due as to principal or interest.
−Removed: The following tables present changes in the balance of the ALLL during the three and six months ended June 30, 2022 and 2021.
−Removed: (in thousands) Three Months Ended June 30, 2022
+Added: The following tables present changes in the balance of the ALLL during the three and nine months ended September 30, 2022 and 2021.
+Added: (in thousands) Three Months Ended September 30, 2022
Allowance for loan losses:
14 unchanged sentences
Other consumer loans 2,343 651 ( 106 ) 50 2,938
−Removed: Tax refund advance loans 354 18 ( 372 ) — —
Total $ 29,153 $ 892 $ ( 236 ) $ 57 $ 29,866
−Removed: Six Months Ended June 30, 2022
+Added: Nine Months Ended September 30, 2022
Allowance for loan losses:
16 unchanged sentences
Total $ 27,841 $ 2,868 $ ( 2,467 ) $ 1,624 $ 29,866
−Removed: (in thousands) Three Months Ended June 30, 2021
+Added: (in thousands) Three Months Ended September 30, 2021
Allowance for loan losses:
10 unchanged sentences
Small business lending 783 415 ( 10 ) 26 1,214
+Added: Franchise finance — 310 — — 310
Residential mortgage 594 19 — 3 616
2 unchanged sentences
Total $ 28,066 $ ( 29 ) $ ( 120 ) $ 83 $ 28,000
−Removed: Six Months Ended June 30, 2021
+Added: Nine Months Ended September 30, 2021
Allowance for loan losses:
10 unchanged sentences
Small business lending 628 776 ( 222 ) 32 1,214
+Added: Franchise finance — 310 — — 310
Residential mortgage 519 91 ( 6 ) 12 616
2 unchanged sentences
Total $ 29,484 $ 1,268 $ ( 3,121 ) $ 369 $ 28,000
−Removed: The following tables present the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2022 and December 31, 2021.
+Added: The following tables present the recorded investment in loans based on portfolio segment and impairment method as of September 30, 2022 and December 31, 2021.
(in thousands) Loans Allowance for Loan Losses
−Removed: June 30, 2022 Ending Balance:
+Added: September 30, 2022 Ending Balance:
Collectively Evaluated for Impairment Ending Balance:
54 unchanged sentences
A loan placed on nonaccrual status may be restored to accrual status when all delinquent principal and interest has been brought current, and the Company expects full payment of the remaining contractual principal and interest.
−Removed: The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: The following tables present the credit risk profile of the Company’s commercial and consumer loan portfolios based on rating category and payment activity as of September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
(in thousands) Pass Special Mention Substandard Total
11 unchanged sentences
1 Balance in “Substandard” is partially guaranteed by the U.S.
−Removed: June 30, 2022
+Added: September 30, 2022
(in thousands) Performing Nonaccrual Total
23 unchanged sentences
Total consumer loans $ 468,664 $ 1,249 $ 469,913
−Removed: The following tables present the Company’s loan portfolio delinquency analysis as of June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: The following tables present the Company’s loan portfolio delinquency analysis as of September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
(in thousands) 30-59
46 unchanged sentences
Generally, loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings, unless the loan is well-secured and in the process of collection.
−Removed: of interest on impaired and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due.
+Added: The accrual of interest on impaired and nonaccrual loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due.
Impaired loans include nonperforming loans as well as loans modified in TDRs where concessions have been granted to borrowers experiencing financial difficulties.
1 unchanged sentence
ASC Topic 310, Receivables , requires that impaired loans be measured based on the present value of expected future cash flows discounted at the loans’ effective interest rates or the fair value of the underlying collateral, less costs to sell, and allows existing methods for recognizing interest income.
−Removed: The following table presents the Company’s impaired loans as of June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022 December 31, 2021
+Added: The following table presents the Company’s impaired loans as of September 30, 2022 and December 31, 2021.
+Added: September 30, 2022 December 31, 2021
(in thousands) Recorded
5 unchanged sentences
Loans without a specific valuation allowance
+Added: Commercial and industrial $ 9,813 $ 9,813 $ — $ — $ — $ —
Owner-occupied commercial real estate — — — 3,345 3,466 —
7 unchanged sentences
Commercial and industrial 350 350 350 644 677 450
+Added: Owner-occupied commercial real estate 1,622 1,779 — — — —
Single tenant lease financing — — — 1,100 1,123 95
5 unchanged sentences
1 Balance of loans individually evaluated for impairment are partially guaranteed by the U.S.
−Removed: The table below presents average balances and interest income recognized for impaired loans during the three and six months ended June 30, 2022 and 2021.
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
+Added: The table below presents average balances and interest income recognized for impaired loans during the three and nine months ended September 30, 2022 and 2021.
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
(in thousands) Average
24 unchanged sentences
1,827 — 1,203 — 1,611 — 401 —
+Added: Other consumer 199 — — — 66 — — —
Total 3,036 — 4,897 37 3,506 45 7,235 73
1 unchanged sentence
1 Balance is partially guaranteed by the U.S.
−Removed: The Company did not have any other real estate owned (“OREO”) as of June 30, 2022.
+Added: The Company did not have any other real estate owned (“OREO”) as of September 30, 2022.
The Company had $ 1.2 million in OREO as of December 31, 2021, which consisted of one commercial property.
−Removed: There were two loans totaling $ 0.2 million and one loan totaling $0.1 million in the process of foreclosure at June 30, 2022 and December 31, 2021, respectively.
+Added: There were two loans totaling $ 0.2 million and one loan totaling $ 0.1 million in the process of foreclosure at September 30, 2022 and December 31, 2021, respectively.
Troubled Debt Restructurings
8 unchanged sentences
Terms may be modified to fit the ability of the borrower to repay in line with its current financial status or the loan may be restructured to obtain additional collateral and/or guarantees to support the debt, or a combination of the two.
−Removed: There were no loans classified as new TDRs during the three months ended June 30, 2022.
−Removed: There was one portfolio residential mortgage loan classified as a new TDR during the six months ended June 30, 2022 with a pre-modification and post-modification outstanding recorded investment of $ 0.7 million.
−Removed: The Company did not allocate a specific allowance for that loan as of June 30, 2022.
+Added: There were no loans classified as new TDRs during the three months ended September 30, 2022.
+Added: There was one portfolio residential mortgage loan classified as a new TDR during the nine months ended September 30, 2022 with a pre-modification and post-modification outstanding recorded investment of $ 0.7 million.
+Added: The Company did not allocate a specific allowance for that loan as of September 30, 2022.
The modifications consisted of interest-only payments for a period of time.
−Removed: There was one portfolio residential mortgage loan classified as a new TDR during the three and six months ended June 30, 2021 with a pre-modification and post-modification outstanding recorded investment of $0.8 million.
−Removed: The Company did not allocate a specific allowance for that loan as of June 30, 2021.
+Added: There was one portfolio residential mortgage loan classified as a new TDR during the three and nine months ended September 30, 2021 with a pre-modification and post-modification outstanding recorded investment of $ 0.8 million.
+Added: The Company did not allocate a specific allowance for that loan as of September 30, 2021.
The modifications consisted of interest-only payments for a period of time.
−Removed: There were no performing TDRs that had payment defaults within the twelve months following modification during the three and six months ended June 30, 2022 and 2021, respectively.
+Added: There were no performing TDRs that had payment defaults within the twelve months following modification during the three and nine months ended September 30, 2022 and 2021, respectively.
Non-TDR Loan Modifications due to COVID-19
3 unchanged sentences
Modifications within the scope of this relief were in effect from the period beginning March 1, 2020 until the earlier of January 1, 2022 or 60 days after the date on which the national emergency related to the COVID-19 pandemic formally terminates.
−Removed: As of June 30, 2022, the Company had one loan totaling $ 8.0 million in non-TDR loan modifications due to COVID-19.
+Added: As of September 30, 2022, the Company had no loans as non-TDR loan modifications due to COVID-19.
Premises and Equipment
−Removed: The following table summarizes premises and equipment at June 30, 2022 and December 31, 2021.
−Removed: (in thousands) June 30,
+Added: The following table summarizes premises and equipment at September 30, 2022 and December 31, 2021.
+Added: (in thousands) September 30,
2022 December 31,
10 unchanged sentences
The Company vacated the Prior Headquarters at the end of the lease, on or prior to December 31, 2021.
−Removed: As of June 30, 2022 and December 31, 2021, the carrying amount of goodwill was $ 4.7 million.
−Removed: There have been no changes in the carrying amount of goodwill for the three and six months ended June 30, 2022.
+Added: As of September 30, 2022 and December 31, 2021, the carrying amount of goodwill was $ 4.7 million.
+Added: There have been no changes in the carrying amount of goodwill for the three and nine months ended September 30, 2022.
Goodwill is assessed for impairment annually as of August 31, or more frequently if events occur or circumstances change that indicate an impairment may exist.
5 unchanged sentences
Servicing Asset
−Removed: Activity for the servicing asset and the related changes in fair value for the three and six months ended June 30, 2022 and 2021 are shown in the table below.
+Added: Activity for the servicing asset and the related changes in fair value for the three and nine months ended September 30, 2022 and 2021 are shown in the table below.
Three Months Ended
−Removed: (in thousands) June 30, 2022 June 30, 2021
+Added: (in thousands) September 30, 2022 September 30, 2021
Balance, beginning of period $ 5,345 $ 4,120
5 unchanged sentences
Balance, end of period $ 5,795 $ 4,412
−Removed: Six Months Ended
−Removed: (in thousands) June 30, 2022 June 30, 2021
+Added: Nine Months Ended
+Added: (in thousands) September 30, 2022 September 30, 2021
Balance, beginning of period $ 4,702 $ 3,569
6 unchanged sentences
Loans serviced for others are not included in the condensed consolidated balance sheets.
−Removed: The unpaid principal balances of these loans serviced for others as of June 30, 2022 and December 31, 2021 are shown in the table below.
−Removed: (in thousands) June 30, 2022 December 31, 2021
+Added: The unpaid principal balances of these loans serviced for others as of September 30, 2022 and December 31, 2021 are shown in the table below.
+Added: (in thousands) September 30, 2022 December 31, 2021
Loan portfolios serviced for:
1 unchanged sentence
Total $ 285,736 $ 230,514
−Removed: Loan servicing revenue totaled $ 0.6 million and $ 1.2 million for the three and six months ended June 30, 2022 and $ 0.5 million and $ 0.9 million for the three and six months ended June 30, 2021, respectively.
−Removed: Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 0.5 million and $ 0.8 million downward valuation for the three and six months ended June 30, 2022, respectively, and a $ 0.2 million and $ 0.4 million downward valuation for the three and six months ended June 30, 2021, respectively.
+Added: Loan servicing revenue totaled $ 0.7 million and $ 1.9 million for the three and nine months ended September 30, 2022 and $ 0.5 million and $ 1.4 million for the three and nine months ended September 30, 2021, respectively.
+Added: Loan servicing asset revaluation, which represents the change in fair value of the servicing asset, resulted in a $ 0.3 million and $ 1.1 million downward valuation for the three and nine months ended September 30, 2022, respectively, and a $ 0.3 million and $ 0.7 million downward valuation for the three and nine months ended September 30, 2021, respectively.
The fair value of servicing rights is highly sensitive to changes in underlying assumptions.
−Removed: Though fluctuations in prepayment speeds and changes in secondary market premiums generally have the most substantial impact on the fair
−Removed: value of servicing rights, other influencing factors include changing economic conditions, changes to the discount rate assumption and the weighted average life of the servicing portfolio.
+Added: Though fluctuations in prepayment speeds and changes in secondary market premiums generally have the most substantial impact on the fair value of servicing rights, other influencing factors include changing economic conditions, changes to the discount rate assumption and the weighted average life of the servicing portfolio.
Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time;
29 unchanged sentences
Holders of $ 0.7 million of unregistered 2031 Notes did not participate in the exchange.
−Removed: The following table presents the principal balance and unamortized debt issuance costs for the 2029 Notes, the 2030 Notes, and the 2031 Notes as of June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022 December 31, 2021
+Added: The following table presents the principal balance and unamortized debt issuance costs for the 2029 Notes, the 2030 Notes, and the 2031 Notes as of September 30, 2022 and December 31, 2021.
+Added: September 30, 2022 December 31, 2021
(in thousands) Principal Unamortized Debt Issuance Costs Principal Unamortized Debt Issuance Costs
15 unchanged sentences
The 2022 Plan initially authorized the issuance of 400,000 new shares of the Company’s common stock plus all shares of common stock that remained available for future grants under the First Internet Bancorp 2013 Equity Incentive Plan (the “2013 Plan”).
+Added: Award Activity Under 2022 Plan
+Added: The Company recorded less than $ 0.1 million o f share-based compensation expense for both the three and nine months ended September 30, 2022, related to stock-based awards under the 2022 Plan .
+Added: The following table summarizes the stock-based award activity under the 2022 Plan for the nine months ended September 30, 2022.
+Added: Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share
+Added: Unvested at December 31, 2021 — $ — — $ — — $ —
+Added: Granted — — 4,151 36.84 — —
+Added: Unvested at September 30, 2022 — $ — 4,151 $ 36.84 — $ —
+Added: At September 30, 2022, the total unrecognized compensation cost related to unvested stock-based awards was 0.1 million with a weighted-average expense recognition period of 0.6 years.
2013 Equity Incentive Plan
The 2013 Plan authorized the issuance of 750,000 shares of the Company’s common stock in the form of stock-based awards to employees, directors, and other eligible persons.
−Removed: Although outstanding stock-based awards under the 2013 Plan remain in place on their terms, our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.
−Removed: No awards had been made under the 2022 Plan as of June 30, 2022.
−Removed: Stock-Based Award Activity
−Removed: The Company recorded $ 0.9 million and $ 1.5 million of share-based compensation expense for the three and six months ended June 30, 2022, related to stock-based awards .
−Removed: The Company recorded $ 0.6 million and $ 1.3 million of share-based compensation expense for the three and six months ended June 30, 2021, related to stock-based awards.
−Removed: All awards granted during the periods presented were under the 2013 Plan.
−Removed: The following table summarizes the stock-based award activity for the six months ended June 30, 2022.
+Added: Although outstanding stock-based awards under the 2013 Plan remain in place according to their terms, our authority to grant new awards under the 2013 Plan terminated upon shareholder approval of the 2022 Plan.
+Added: Award Activity Under 2013 Plan
+Added: The Company recorded $ 0.4 million and $ 2.0 million of share-based compensation expense for the three and nine months ended September 30, 2022, respectively, related to stock-based awards under the 2013 Plan .
+Added: The Company recorded $ 0.6 million and $ 1.8 million of share-based compensation expense for the three and nine months ended September 30, 2021, related to stock-based awards under the 2013 Plan.
+Added: The following table summarizes the stock-based award activity under the 2013 Plan for the nine months ended September 30, 2022.
Restricted Stock Units Weighted-Average Grant Date Fair Value Per Share Restricted Stock Awards Weighted-Average Grant Date Fair Value Per Share Deferred Stock Units Weighted-Average Grant Date Fair Value Per Share
3 unchanged sentences
Vested ( 23,256 ) 24.62 ( 7,378 ) 52.64 ( 3 ) 41.87
−Removed: Unvested at June 30, 2022 125,787 $ 34.67 3,864 $ 52.64 — $ —
−Removed: At June 30, 2022, the total unrecognized compensation cost related to unvested stock-based awards was $ 2.7 million with a weighted-average expense recognition period of 1.9 years.
+Added: Unvested at September 30, 2022 125,787 $ 34.59 1,932 $ 52.64 — $ —
+Added: At September 30, 2022, the total unrecognized compensation cost related to unvested stock-based awards was $ 2.1 million with a weighted-average expense recognition period of 1.8 years.
Directors Deferred Stock Plan
3 unchanged sentences
Deferred stock rights were to be settled in common stock following the end of the deferral period payable on the basis of one share of common stock for each deferred stock right.
−Removed: The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the six months ended June 30, 2022.
+Added: The following table summarizes the status of deferred stock rights related to the Directors Deferred Stock Plan for the nine months ended September 30, 2022.
Deferred Stock Rights
4 unchanged sentences
In the normal course of business, the Company makes various commitments to extend credit which are not reflected in the accompanying condensed consolidated financial statements.
−Removed: At June 30, 2022 and December 31, 2021, the Company had outstanding loan commitments totaling approximately $ 349.5 million and $ 324.3 million, respectively.
+Added: At September 30, 2022 and December 31, 2021, the Company had outstanding loan commitments totaling approximately $ 508.6 million and $ 324.3 million, respectively.
Capital Commitments
1 unchanged sentence
The Company has entered into construction-related contracts in the amount of $ 69.2 million.
−Removed: As of June 30, 2022, $ 6.8 million of such contract commitments had not yet been incurred.
+Added: As of September 30, 2022, $ 6.1 million of such contract commitments had not yet been incurred.
These commitments are due within one year .
20 unchanged sentences
Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation.
−Removed: The Company did not own any securities classified within Level 3 of the hierarchy as of June 30, 2022 or December 31, 2021.
+Added: The Company did not own any securities classified within Level 3 of the hierarchy as of September 30, 2022 or December 31, 2021.
Loans Held-for-Sale (mandatory pricing agreements)
10 unchanged sentences
The fair values of interest rate lock commitments (“IRLCs”) are determined using the projected sale price of individual loans based on changes in market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3).
−Removed: The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
Fair Value Measurements Using
15 unchanged sentences
Servicing asset 5,795 — — 5,795
−Removed: Interest rate swap agreements 1,738 — 1,738 —
+Added: Interest rate swap assets 8,978 — 8,978 —
Forward contracts 1,006 1,006 — —
21 unchanged sentences
IRLCs 718 — — 718
−Removed: The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and six months ended June 30, 2022 and 2021.
+Added: The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2022 and 2021.
Three Months Ended
(in thousands) Servicing Asset Interest Rate Lock
−Removed: Balance, April 1, 2022 $ 5,249 $ ( 88 )
+Added: Balance, July 1, 2022 $ 5,345 $ 462
Total realized gains
3 unchanged sentences
Change in fair value ( 54 ) ( 850 )
−Removed: Balance, June 30, 2022 $ 5,345 $ 462
−Removed: Balance as of April 1, 2021 $ 3,817 $ 1,110
+Added: Balance, September 30, 2022 $ 5,795 $ ( 388 )
+Added: Balance as of July 1, 2021 $ 4,120 $ 818
Total realized gains
3 unchanged sentences
Change in fair value ( 98 ) 22
−Removed: Balance, June 30, 2021 $ 4,120 $ 818
−Removed: Six Months Ended
+Added: Balance, September 30, 2021 $ 4,412 $ 840
+Added: Nine Months Ended
(in thousands) Servicing Asset Interest Rate Lock
5 unchanged sentences
Change in fair value ( 212 ) ( 1,106 )
−Removed: Balance, June 30, 2022 $ 5,345 $ 462
+Added: Balance, September 30, 2022 $ 5,795 $ ( 388 )
Balance as of January 1, 2021 $ 3,569 $ 3,361
3 unchanged sentences
Paydowns ( 500 ) —
−Removed: Change in fair ( 71 ) ( 2,543 )
−Removed: Balance, June 30, 2021 $ 4,120 $ 818
+Added: Change in fair value ( 169 ) ( 2,521 )
+Added: Balance, September 30, 2021 $ 4,412 $ 840
The following describes the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy.
6 unchanged sentences
Impaired loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets.
−Removed: The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
(in thousands) Fair Value Measurements Using
12 unchanged sentences
(dollars in thousands) Fair Value at
−Removed: June 30, 2022 Valuation
+Added: September 30, 2022 Valuation
Technique Significant Unobservable
10 unchanged sentences
IRLCs 718 Discounted cash flow Loan closing rates 42 % - 100 %
−Removed: Servicing asset 4,702
−Removed: Discounted cash flow Prepayment speeds
+Added: Servicing asset 4,702 Discounted cash flow Prepayment speeds
Discount rate 0 % - 25 %
7 unchanged sentences
Level 2 securities include municipal securities and corporate securities.
−Removed: Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but also on the investment securities’ relationship to other benchmark quoted investment securities.
+Added: Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for
+Added: specific investment securities but also on the investment securities’ relationship to other benchmark quoted investment securities.
In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.
2 unchanged sentences
Rating agency and industry research reports as well as default and deferral activity are reviewed and incorporated into the calculation.
−Removed: The Company did not own any securities classified within Level 3 of the hierarchy as of June 30, 2022 or December 31, 2021.
+Added: The Company did not own any securities classified within Level 3 of the hierarchy as of September 30, 2022 or December 31, 2021.
Loans Held-for-Sale (best efforts pricing agreements)
16 unchanged sentences
The fair value of commitments to extend credit are based on fees currently charged to enter into similar agreements with similar maturities and interest rates.
−Removed: The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of June 30, 2022 and December 31, 2021.
−Removed: The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022
+Added: The Company determined that the fair value of commitments was zero based on the contractual value of outstanding commitments at each of September 30, 2022 and December 31, 2021.
+Added: The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021.
+Added: September 30, 2022
Fair Value Measurements Using
36 unchanged sentences
Refer to Note 13 for further information on derivative financial instruments.
−Removed: During the three months ended June 30, 2022 and 2021, the Company originated mortgage loans held-for-sale of $ 105.9 million and $ 163.3 million, respectively, and sold $ 107.9 million and $ 151.5 million of mortgage loans, respectively, into the secondary market.
−Removed: During the six months ended June 30, 2022 and 2021, the Company originated mortgage loans held-for-sale of $ 258.2 million and $ 387.2 million, respectively, and sold $ 270.3 million and $ 393.1 million of mortgage loans, respectively, into the secondary market.
−Removed: The following table presents the components of income from mortgage banking activities for the three and six months ended June 30, 2022 and 2021.
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: During the three months ended September 30, 2022 and 2021, the Company originated mortgage loans held-for-sale of $ 85.1 million and $ 198.3 million, respectively, and sold $ 95.0 million and $ 186.1 million of mortgage loans, respectively, into the secondary market.
+Added: During the nine months ended September 30, 2022 and 2021, the Company originated mortgage loans held-for-sale of $ 343.3 million and $ 585.5 million, respectively, and sold $ 365.3 million and $ 579.2 million of mortgage loans, respectively, into the secondary market.
+Added: The following table presents the components of income from mortgage banking activities for the three and nine months ended September 30, 2022 and 2021.
+Added: Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2022 2021 2022 2021
1 unchanged sentence
Gain (loss) resulting from the change in fair value of loans held-for-sale ( 450 ) 110 ( 599 ) ( 854 )
−Removed: Loss resulting from the change in fair value of derivatives ( 508 ) ( 1,031 ) ( 208 ) ( 1,918 )
+Added: Gain (loss) resulting from the change in fair value of derivatives 143 496 ( 66 ) ( 1,422 )
Net revenue from mortgage banking activities $ 871 $ 3,850 $ 4,454 $ 12,274
12 unchanged sentences
The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the condensed consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the condensed consolidated balance sheets.
−Removed: The following table presents amounts that were recorded on the condensed consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of June 30, 2022 and December 31, 2021.
+Added: The following table presents amounts that were recorded on the condensed consolidated balance sheets related to cumulative basis adjustments for interest rate swap derivatives designated as fair value accounting hedges as of September 30, 2022 and December 31, 2021.
(in thousands) Carrying amount of the hedged asset Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets
−Removed: Line item in the condensed consolidated balance sheets in which the hedged item is included June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021
+Added: Line item in the condensed consolidated balance sheets in which the hedged item is included September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021
Securities available-for-sale (1)
1 unchanged sentence
(1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship.
−Removed: The designated hedged items were $ 50.0 million at both June 30, 2022 and December 31, 2021.
−Removed: The following tables present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company’s asset/liability management activities at June 30 , 2022 and December 31, 2021, identified by the underlying interest rate-sensitive instruments.
+Added: The designated hedged items were $ 50.0 million at both September 30, 2022 and December 31, 2021.
+Added: The following tables present a summary of interest rate swap derivatives designated as fair value accounting hedges of fixed-rate receivables used in the Company’s asset/liability management activities at September 30, 2022 and December 31, 2021, identified by the underlying interest rate-sensitive instruments.
(dollars in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Notional Value Weighted- Average Remaining Maturity (years) Weighted-Average Ratio
1 unchanged sentence
Securities available-for-sale $ 50,000 2.1 $ 2,094 3-month LIBOR 2.33 %
−Removed: Total at June 30, 2022 $ 50,000 2.3 $ 912 3-month LIBOR 2.33 %
+Added: Total at September 30, 2022 $ 50,000 2.1 $ 2,094 3-month LIBOR 2.33 %
(dollars in thousands)
6 unchanged sentences
The corresponding fair value hedging adjustment was allocated pro-rata to the underlying hedged securities and is being amortized over the remaining lives of the designated securities.
−Removed: During the three and six months ended June 30, 2022, amortization expense totaling $ 0.07 million and $ 0.2 million, respectively, was recognized as a reduction to interest income on securities.
+Added: During the three and nine months ended September 30, 2022, amortization expense totaling $ 0.1 million and $ 0.2 million, respectively, was recognized as a reduction to interest income on securities.
In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $ 46.1 million.
−Removed: The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 12.0 years as of June 30, 2022.
−Removed: Amortization expense totaling $ 1.1 million and $ 2.1 million, for the three and six months ended June 30 2022, respectively, and $ 1.2 million and $ 2.3 million, for the three and six months ended June 30, 2021 respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans.
−Removed: The following tables present a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company’s asset/liability management activities at June 30, 2022 and December 31, 2021.
+Added: The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 11.5 years as of September 30, 2022.
+Added: Amortization expense totaling $ 1.5 million and $ 3.6 million, for the three and nine months ended September 30 2022, respectively, and $ 1.5 million and $ 3.8 million, for the three and nine months ended September 30, 2021 respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans.
+Added: The following tables present a summary of interest rate swap derivatives designated as cash flow accounting hedges of variable-rate liabilities used in the Company’s asset/liability management activities at September 30, 2022 and December 31, 2021.
(dollars in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Notional Weighted- Average Remaining Maturity Weighted-Average Ratio
10 unchanged sentences
These derivative financial instruments were entered into for the purpose of managing the interest rate risk of certain assets and liabilities.
−Removed: As of June 30, 2022 the Company had no pledged cash collateral compared to $ 15.7 million, as of December 31, 2021.
+Added: As of September 30, 2022 the Company had no pledged cash collateral compared to $ 15.7 million, as of December 31, 2021.
Cash collateral is pledged to counterparties on interest rate swap agreements as security for its obligations related to these agreements.
Collateral posted and received is dependent on the market valuation of the underlying hedges.
−Removed: The following table presents the notional amount and fair value of interest rate swaps, IRLCs and forward contracts utilized by the Company at June 30, 2022 and December 31, 2021.
−Removed: June 30, 2022 December 31, 2021
+Added: The following table presents the notional amount and fair value of interest rate swaps, IRLCs and forward contracts utilized by the Company at September 30, 2022 and December 31, 2021.
+Added: September 30, 2022 December 31, 2021
(in thousands) Notional
15 unchanged sentences
Forward contracts — — 72,750 ( 30 )
+Added: IRLCs 31,202 ( 388 ) — —
Total contracts
2 unchanged sentences
Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date.
−Removed: The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three and six months ended June 30, 2022 and 2021.
−Removed: Amount of Gain / (Loss) Recognized in Other Comprehensive Income (Loss) in The Three Months Ended Amount of Gain Recognized in Other Comprehensive Income (Loss) in The Six Months Ended
−Removed: (in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
+Added: The following table presents the effects of the Company’s cash flow hedge relationships on the condensed consolidated statements of comprehensive income during the three and nine months ended September 30, 2022 and 2021.
+Added: Amount of Gain Recognized in Other Comprehensive Income (Loss) in The Three Months Ended Amount of Gain Recognized in Other Comprehensive Income (Loss) in The Nine Months Ended
+Added: (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Interest rate swap agreements $ 6,058 $ 1,439 $ 19,424 $ 7,665
−Removed: The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and six ended June 30, 2022 and 2021.
−Removed: Amount of Gain / (Loss) Recognized in the Three Months Ended Amount of Gain / (Loss) Recognized in the Six Months Ended
−Removed: (in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
+Added: The following table summarizes the periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of income for the three and nine ended September 30, 2022 and 2021.
+Added: Amount of Gain / (Loss) Recognized in the Three Months Ended Amount of Gain / (Loss) Recognized in the Nine Months Ended
+Added: (in thousands) September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Asset Derivatives
6 unchanged sentences
Forward contracts — 474 — 1,097
−Removed: The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of income during the three and six months ended June 30, 2022 and 2021.
+Added: The following table presents the effects of the Company’s interest rate swap agreements on the condensed consolidated statements of income during the three and nine months ended September 30, 2022 and 2021.
(in thousands)
Line item in the condensed consolidated statements of income
−Removed: Three Months Ended Six Months Ended
−Removed: June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021
+Added: Three Months Ended Nine Months Ended
+Added: September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Interest income
11 unchanged sentences
Accumulated Other Comprehensive Loss
−Removed: The components of accumulated other comprehensive loss, included in shareholders' equity, for the six months ended June 30, 2022 and 2021, respectively, are presented in the table below.
+Added: The components of accumulated other comprehensive loss, included in shareholders' equity, for the nine months ended September 30, 2022 and 2021, respectively, are presented in the table below.
(in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total
5 unchanged sentences
Other comprehensive (loss) income - net of tax ( 38,298 ) ( 3,591 ) 13,785 ( 28,104 )
−Removed: Balance, June 30, 2022 $ ( 27,568 ) $ ( 3,818 ) $ 636 $ ( 30,750 )
+Added: Balance, September 30, 2022 $ ( 40,853 ) $ ( 3,591 ) $ 5,301 $ ( 39,143 )
Balance, January 1, 2021 $ 468 $ — $ ( 17,664 ) $ ( 17,196 )
3 unchanged sentences
Other comprehensive (loss) income - net of tax ( 1,980 ) — 6,008 4,028
−Removed: Balance, June 30, 2021 $ ( 164 ) $ — $ ( 12,747 ) $ ( 12,911 )
−Removed: The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended June 30, 2022 and 2021, respectively, are presented in the table below.
+Added: Balance, September 30, 2021 $ ( 1,512 ) $ — $ ( 11,656 ) $ ( 13,168 )
+Added: The components of accumulated other comprehensive loss, included in stockholders' equity, for the three months ended September 30, 2022 and 2021, respectively, are presented in the table below.
(in thousands) Unrealized Losses On Debt Securities Unrealized Losses On Debt Securities Transferred From Available-For-Sale To Held-To-Maturity Cash Flow Hedges Total
−Removed: Balance, April 1, 2022 $ ( 16,359 ) $ ( 4,034 ) $ ( 2,468 ) $ ( 22,861 )
+Added: Balance, July 1, 2022 $ ( 27,568 ) $ ( 3,818 ) $ 636 $ ( 30,750 )
Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax ( 18,406 ) — 6,058 ( 12,348 )
3 unchanged sentences
Other comprehensive (loss) income - net of tax ( 13,285 ) 227 4,665 ( 8,393 )
−Removed: Balance, June 30, 2022 $ ( 27,568 ) $ ( 3,818 ) $ 636 $ ( 30,750 )
−Removed: Balance, April 1, 2021 $ ( 1,219 ) $ — $ ( 12,701 ) $ ( 13,920 )
+Added: Balance, September 30, 2022 $ ( 40,853 ) $ ( 3,591 ) $ 5,301 $ ( 39,143 )
+Added: Balance, July 1, 2021 $ ( 164 ) $ — $ ( 12,747 ) $ ( 12,911 )
Other comprehensive (loss) income before reclassifications from accumulated other comprehensive loss before tax ( 1,789 ) — 1,439 ( 350 )
2 unchanged sentences
Other comprehensive income (loss) - net of tax ( 1,348 ) — 1,091 ( 257 )
−Removed: Balance, June 30, 2021 $ ( 164 ) $ — $ ( 12,747 ) $ ( 12,911 )
+Added: Balance, September 30, 2021 $ ( 1,512 ) $ — $ ( 11,656 ) $ ( 13,168 )
Details About Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from
2 unchanged sentences
Statements of Income
−Removed: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021
+Added: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021
Reclassifications from accumulated other comprehensive loss to earnings before tax $ ( 296 ) — $ ( 608 ) $ — Interest income
28 unchanged sentences
Specific to the model, the CECL working group has discussed results from parallel model runs for each portfolio segment, assumptions related to unfunded commitments and economic forecast factors.
−Removed: Model validation is expected to be completed in the third quarter 2022.
+Added: Model validation is expected to be completed in the fourth quarter 2022.
The Company expects to record a one-time cumulative effect adjustment to the ALLL in retained earnings on the consolidated balance sheet as of the beginning of the first reporting period in which the new standard is effective, as is required in the guidance.
23 unchanged sentences
This guidance is effective on January 1, 2023, with early adoption permitted.
−Removed: The Company is currently assessing the impact of the adoption of this guidance.
+Added: The Company believes the adoption of this guidance will not have a material impact on the condensed consolidated financial statements.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.