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Fair Value Information
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Information

8. FAIR VALUE INFORMATION

 

Fair Value Hierarchy

 

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

 

The valuation methodologies for financial assets and liabilities measured at fair value on a recurring and non-recurring basis are described in Note 17 — Fair Value Information, included in our Annual Report on Form 10-K for the year ended December 31, 2024.

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of the dates presented.

 

 

 

Carrying Value at
March 31, 2025

 

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant Other Observable Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

 

 

(Dollars in thousands)

 

Description of assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities - AFS:

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

 

$

34,803

 

 

$

—

 

 

$

34,803

 

 

$

—

 

Mortgage-backed securities

 

 

2,124,656

 

 

 

—

 

 

 

2,124,656

 

 

 

—

 

CMO/REMIC

 

 

353,862

 

 

 

—

 

 

 

353,862

 

 

 

—

 

Municipal bonds

 

 

20,319

 

 

 

—

 

 

 

20,319

 

 

 

—

 

Other securities

 

 

1,426

 

 

 

—

 

 

 

1,426

 

 

 

—

 

Total investment securities - AFS

 

 

2,535,066

 

 

 

—

 

 

 

2,535,066

 

 

 

—

 

Derivatives not designated as hedging
  instruments:

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

 

78

 

 

 

—

 

 

 

78

 

 

 

—

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

      Fair value hedges: interest rate swaps

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Cash flow hedges: interest rate swaps

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total assets

 

$

2,535,144

 

 

$

—

 

 

$

2,535,144

 

 

$

—

 

Description of liability

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging
  instruments:

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

$

78

 

 

$

—

 

 

$

78

 

 

$

—

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

      Fair value hedges: interest rate swaps

 

 

1,095

 

 

 

—

 

 

 

1,095

 

 

 

—

 

   Cash flow hedges: interest rate swaps

 

 

2,257

 

 

 

—

 

 

 

2,257

 

 

 

—

 

Total liabilities

 

$

3,430

 

 

$

—

 

 

$

3,430

 

 

$

—

 

 

 

 

 

Carrying Value at
December 31, 2024

 

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

 

Significant Other Observable Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

 

 

(Dollars in thousands)

 

Description of assets

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities - AFS:

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

 

$

34,255

 

 

$

—

 

 

$

34,255

 

 

$

—

 

Mortgage-backed securities

 

 

2,134,534

 

 

 

—

 

 

 

2,134,534

 

 

 

—

 

CMO/REMIC

 

 

351,522

 

 

 

—

 

 

 

351,522

 

 

 

—

 

Municipal bonds

 

 

20,377

 

 

 

—

 

 

 

20,377

 

 

 

—

 

Other securities

 

 

1,427

 

 

 

—

 

 

 

1,427

 

 

 

—

 

Total investment securities - AFS

 

 

2,542,115

 

 

 

—

 

 

 

2,542,115

 

 

 

—

 

Derivatives not designated as hedging
  instruments:

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

 

30

 

 

 

—

 

 

 

30

 

 

 

—

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value hedges: interest rate swaps

 

 

7,222

 

 

 

—

 

 

 

7,222

 

 

 

—

 

Cash flow hedges: interest rate swaps

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total assets

 

$

2,549,367

 

 

$

—

 

 

$

2,549,367

 

 

$

—

 

Description of liability

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging
  instruments:

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

$

30

 

 

$

—

 

 

$

30

 

 

$

—

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

Fair value hedges: interest rate swaps

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Cash flow hedges: interest rate swaps

 

 

517

 

 

 

—

 

 

 

517

 

 

 

—

 

Total liabilities

 

$

547

 

 

$

—

 

 

$

547

 

 

$

—

 

 

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

 

We may be required to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value accounting or write-downs of individual assets.

 

For assets measured at fair value on a non-recurring basis that were held on the balance sheet at March 31, 2025 and December 31, 2024, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets that had losses during the period.

 

 

 

Carrying Value at March 31, 2025

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

 

Total Losses For the Three Months Ended March 31, 2025

 

 

 

(Dollars in thousands)

 

Description of assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

32,575

 

 

$

—

 

 

$

—

 

 

$

32,575

 

 

$

8

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

SBA

 

 

1,079

 

 

 

—

 

 

 

—

 

 

 

1,079

 

 

 

19

 

SBA - PPP

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial

 

 

2,901

 

 

 

—

 

 

 

—

 

 

 

2,901

 

 

 

6

 

Dairy & livestock and
   agribusiness

 

 

1,085

 

 

 

—

 

 

 

—

 

 

 

1,085

 

 

 

1

 

Municipal lease finance
   receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

SFR mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer and other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other real estate owned

 

 

495

 

 

 

—

 

 

 

—

 

 

 

495

 

 

 

—

 

Total assets

 

$

38,135

 

 

$

—

 

 

$

—

 

 

$

38,135

 

 

$

34

 

 

 

 

 

Carrying Value at December 31, 2024

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

 

Total Losses For the Year Ended December 31, 2024

 

 

 

(Dollars in thousands)

 

Description of assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

28,728

 

 

$

—

 

 

$

—

 

 

$

28,728

 

 

$

11

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

SBA

 

 

1,532

 

 

 

—

 

 

 

—

 

 

 

1,532

 

 

 

49

 

SBA - PPP

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial

 

 

3,144

 

 

 

—

 

 

 

—

 

 

 

3,144

 

 

 

220

 

Dairy & livestock and
   agribusiness

 

 

860

 

 

 

—

 

 

 

—

 

 

 

860

 

 

 

9

 

Municipal lease finance
   receivables

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

SFR mortgage

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer and other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other real estate owned

 

 

10,429

 

 

 

—

 

 

 

—

 

 

 

10,429

 

 

 

2,296

 

Total assets

 

$

44,693

 

 

$

—

 

 

$

—

 

 

$

44,693

 

 

$

2,585

 

 

Fair Value of Financial Instruments

 

The following disclosure presents estimated fair value of our financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company may realize in a current market exchange as of March 31, 2025 and December 31, 2024, respectively. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

 

 

March 31, 2025

 

 

Carrying

 

 

Estimated Fair Value

 

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(Dollars in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

$

529,089

 

 

$

529,089

 

 

$

—

 

 

$

—

 

 

$

529,089

 

Interest-earning balances due from
   depository institutions

 

3,451

 

 

 

—

 

 

 

3,451

 

 

 

—

 

 

 

3,451

 

Investment securities available-for-sale

 

2,535,066

 

 

 

—

 

 

 

2,535,066

 

 

 

—

 

 

 

2,535,066

 

Investment securities held-to-maturity

 

2,359,141

 

 

 

—

 

 

 

1,965,088

 

 

 

—

 

 

 

1,965,088

 

Total loans, net of allowance for credit losses

 

8,285,380

 

 

 

—

 

 

 

—

 

 

 

8,009,031

 

 

 

8,009,031

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

78

 

 

 

—

 

 

 

78

 

 

 

—

 

 

 

78

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fair value hedges: interest rate swaps

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Cash flow hedges: interest rate swaps

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Interest-bearing

$

4,805,654

 

 

$

—

 

 

$

4,802,342

 

 

$

—

 

 

$

4,802,342

 

Borrowings

 

776,163

 

 

 

—

 

 

 

746,328

 

 

 

—

 

 

 

746,328

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

78

 

 

 

—

 

 

 

78

 

 

 

—

 

 

 

78

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fair value hedges: interest rate swaps

 

1,095

 

 

 

—

 

 

 

1,095

 

 

 

—

 

 

 

1,095

 

 Cash flow hedges: interest rate swaps

 

2,257

 

 

 

—

 

 

 

2,257

 

 

 

—

 

 

 

2,257

 

 

 

 

December 31, 2024

 

 

Carrying

 

 

Estimated Fair Value

 

 

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

(Dollars in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

$

204,698

 

 

$

204,698

 

 

$

—

 

 

$

—

 

 

$

204,698

 

Interest-earning balances due from
   depository institutions

 

480

 

 

 

—

 

 

 

480

 

 

 

—

 

 

 

480

 

Investment securities available-for-sale

 

2,542,115

 

 

 

—

 

 

 

2,542,115

 

 

 

—

 

 

 

2,542,115

 

Investment securities held-to-maturity

 

2,379,668

 

 

 

—

 

 

 

1,954,345

 

 

 

—

 

 

 

1,954,345

 

Total loans, net of allowance for credit losses

 

8,456,310

 

 

 

—

 

 

 

—

 

 

 

8,149,801

 

 

 

8,149,801

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

30

 

 

 

—

 

 

 

30

 

 

 

—

 

 

 

30

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fair value hedges: interest rate swaps

 

7,222

 

 

 

—

 

 

 

7,222

 

 

 

—

 

 

 

7,222

 

Cash flow hedges: interest rate swaps

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Interest-bearing

$

4,911,285

 

 

$

—

 

 

$

4,908,070

 

 

$

—

 

 

$

4,908,070

 

Borrowings

 

761,887

 

 

 

—

 

 

 

716,566

 

 

 

—

 

 

 

716,566

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Interest rate swaps

 

30

 

 

 

—

 

 

 

30

 

 

 

—

 

 

 

30

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Fair value hedges: interest rate swaps

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Cash flow hedges: interest rate swaps

 

517

 

 

 

—

 

 

 

517

 

 

 

—

 

 

 

517

 

 

The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2025 and December 31, 2024. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented above.