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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of year-end 2022 and 2021 segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

						December 31, 2022
(In thousands)						Level 1 Inputs						Level 2 Inputs						Level 3 Inputs						Total Fair Value
Trading security						$	—					$	—					$	6,708					$	6,708
Available-for-sale securities:
U.S Treasuries						11,973						—						—						11,973
Municipal bonds and obligations						—						63,335						—						63,335
Agency collateralized mortgage obligations						—						531,945						—						531,945
Agency residential mortgage-backed securities						—						546,313						—						546,313
Agency commercial mortgage-backed securities						—						228,468						—						228,468
Corporate bonds						—						36,510						4,000						40,510
Other bonds and obligations						—						656						—						656
Marketable equity securities						12,856						—						—						12,856
Loans held for investment						—						—						605						605
Loans held for sale						—						942						—						942
Derivative assets						—						54,216						25						54,241
Capitalized servicing rights						—						—						1,846						1,846
Derivative liabilities						—						97,030						—						97,030

			December 31, 2021
			Level 1						Level 2						Level 3						Total
(In thousands)			Inputs						Inputs						Inputs						Fair Value
Trading security			$	—					$	—					$	8,354					$	8,354
Securities available for sale:
U.S Treasuries			—						59,973						—						59,973
Municipal bonds and obligations			—						77,177						—						77,177
Agency collateralized mortgage obligations			—						688,336						—						688,336
Agency residential mortgage-backed securities			—						705,859						—						705,859
Agency commercial mortgage-backed securities			—						300,580						—						300,580
Corporate bonds			—						41,630						4,030						45,660
Marketable equity securities			14,798						655						—						15,453
Loans held for investment at fair value			—						—						1,200						1,200
Loans held for sale			—						6,110						—						6,110
Derivative assets			—						79,270						258						79,528
Capitalized servicing rights			—						—						1,966						1,966
Derivative liabilities			—						35,194						—						35,194

Schedule of Loans Held for Investment and Loans Held for Sale

The cash flow assumptions include payment schedules for loans with current payment histories and estimated collateral value for delinquent loans. All of these loans were nonperforming as of December 31, 2022.

Aggregate Fair Value

December 31, 2022

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for investment at fair value

$

605

$

10,948

$

(10,343)

Aggregate Fair Value

December 31, 2021

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for investment at fair value

$

1,200

$

31,430

$

(30,230)

Loans held for sale. The Company elected the fair value option for all mortgage loans originated for sale (HFS) that were originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets.

						Aggregate Fair Value						Aggregate Unpaid Principal						Aggregate Fair Value Less Aggregate Unpaid Principal
December 31, 2022 (In thousands)
Loans held for sale						$	942					$	927					$	15

						Aggregate Fair Value						Aggregate Unpaid Principal						Aggregate Fair Value Less Aggregate Unpaid Principal
December 31, 2021 (In thousands)
Loans held for sale						$	6,110					$	5,926					$	184

Schedule of Changes in Level 3 Assets and Liabilities that were Measured at Fair Value on a Recurring Basis

The table below presents the changes in Level 3 assets that were measured at fair value on a recurring basis at year-end 2022 and 2021:

						Assets (Liabilities)
(In thousands)						Trading Security						Securities Available for Sale						Loans Held for Investment						Commitments to Lend						Forward Commitments						Capitalized Servicing Rights
Balance as of December 31, 2020						$	9,708					$	15,000					$	2,265					$	735					$	320					$	3,033
Maturities, calls, and prepayments of AFS Security						—						(15,000)						—						—						—						—
Unrealized (loss) gain, net recognized in other non-interest income						(578)						—						1,645						1,995						(186)						(1,067)
Unrealized gain included in accumulated other comprehensive loss						—						30						—						—						—						—
Transfers to Level 3						—						4,000						—						—						—						—
Paydown of asset						(776)						—						(2,710)						—						—						—
Transfers to loans held for sale						—						—						—						(2,606)						—						—
Additions to servicing rights						—						—						—						—						—						—
Balance as of December 31, 2021						$	8,354					$	4,030					$	1,200					$	124					$	134					$	1,966
Maturities, calls, and prepayments of AFS Security						$	—					$	—					$	—					$	—					$	—
Unrealized (loss) gain, net recognized in other non-interest income						(828)						—						314						200						(126)						(120)
Unrealized (loss) in included in accumulated other comprehensive loss						—						(30)						—						—						—						—
Transfers to Level 3						—						—						—						—						—						—
Paydown of asset						(818)						—						(909)						—						—						—
Transfers to loans held for sale						—						—												(307)						—						—
Additions to servicing rights						—						—												—						—						—
Balance as of December 31, 2022						$	6,708					$	4,000					$	605					$	17					$	8					$	1,846
Unrealized gains/(losses) relating to instruments still held at December 31, 2022						$	(354)					$	—					$	—					$	17					$	8					$	—
Unrealized gains/(losses) relating to instruments still held at December 31, 2021						$	475					$	30					$	—					$	124					$	134					$	—

Schedule of Quantitative Information about the Significant Unobservable Inputs within Level 3

Quantitative information about the significant unobservable inputs within Level 3 recurring assets/(liabilities) as of December 31, 2022 and 2021 are as follows:

						Fair Value																		Significant Unobservable Input Value
(In thousands)						December 31, 2022						Valuation Techniques						Unobservable Inputs
Assets
Trading Security						$	6,708					Discounted Cash Flow						Discount Rate						5.92		%
Securities Available for Sale						4,000						Indication from Market Maker						Price						100.00		%
Loans held for investment						605						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$— - $20.4
Commitments to Lend						17						Historical Trend						Closing Ratio						80.63		%
												Pricing Model						Origination Costs, per loan						$	2
Forward Commitments						8						Historical Trend						Closing Ratio						80.63		%
												Pricing Model						Origination Costs, per loan						$	2
Capitalized Servicing Rights						1,846						Discounted cash flow						Constant prepayment rate (CPR)						11.07		%
																		Discount rate						9.56		%
Total						$	13,184

						Fair Value																		Significant Unobservable Input Value
(In thousands)						December 31, 2021						Valuation Techniques						Unobservable Inputs
Assets
Trading Security						$	8,354					Discounted Cash Flow						Discount Rate						3.35		%
Securities Available for Sale						4,030						Indication from Market Maker						Price						101.00		%
Loans held for investment						1,200						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$6.3 - $19.8
Commitments to Lend						124						Historical Trend						Closing Ratio						82.09		%
												Pricing Model						Origination Costs, per loan						$	3
Forward Commitments						134						Historical Trend						Closing Ratio						82.09		%
												Pricing Model						Origination Costs, per loan						$	3
Capitalized Servicing Rights						1,966						Discounted cash flow						Constant prepayment rate (CPR)						19.41		%
																		Discount rate						9.50		%
Total						$	15,808

The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured on a non-recurring basis.

December 31, 2022

Fair Value Measurements as of December 31, 2022

(In thousands)

Level 3 Inputs

Level 3 Inputs

Assets

Individually evaluated loans

$

14,571

December 2022

Loans held for sale

3,369

December 2022

Capitalized servicing rights

11,201

December 2022

Total

$

29,141

December 31, 2021

Fair Value Measurements as of December 31, 2021

(In thousands)

Level 3 Inputs

Level 3 Inputs

Assets

Individually evaluated loans

$

12,482

December 2021

Capitalized servicing rights

14,056

December 2021

Total

$

26,538

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2022 and 2021 are as follows:

(in thousands)

December 31, 2022

Valuation Techniques

Unobservable Inputs

Range (Weighted Average) (a)

Assets

Individually evaluated loans

$

14,571

Fair value of collateral

Discounted Cash Flow- Loss Severity

(100.00)% to 74.74% ((40.02)%)

Appraised value

$0 to $2,160 ($643)

Loans held for sale

3,369

Fair value of collateral

Appraised value

3,369

Capitalized servicing rights

11,201

Discounted cash flow

Constant prepayment rate (CPR)

5.81% to 13.18% (10.94)%

Discount rate

9.59% to 22.70% (16.83%)

Total Assets

$

29,141

(a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.

(in thousands)

December 31, 2021

Valuation Techniques

Unobservable Inputs

Assets

Range (Weighted Average) (a)

Individually evaluated loans

$

12,482

Fair value of collateral

Loss severity

(35.96)% to 133.09% (49.14%)

Appraised value

$0 to $405 ($256)

Capitalized servicing rights

14,056

Discounted cash flow

Constant prepayment rate (CPR)

6.24% to 17.73% (13.29%)

Discount rate

9.59% to 13.11% (11.97%)

Total Assets

$

26,538

(a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.

Schedule of Estimated Non-recurring Fair Value of Financial Instruments

The following tables summarize the estimated fair values, which represent exit price, and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. Certain assets and liabilities in the following disclosures include balances classified as discontinued operations.

						December 31, 2022
						Carrying Amount						Fair Value
(In thousands)																		Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	685,355					$	685,355					$	685,355					$	—					$	—
Trading security						6,708						6,708						—						—						6,708
Marketable equity securities						12,856						12,856						12,856						—						—
Securities available for sale						1,423,200						1,423,200						11,973						1,407,227						4,000
Securities held to maturity						583,453						507,464						—						505,508						1,956
FHLB stock and restricted equity securities						7,219						N/A						N/A						N/A						N/A
Net loans						8,239,039						8,194,110						—						—						8,194,110
Loans held for sale						4,311						4,311						—						942						3,369
Accrued interest receivable						46,868						46,868						—						46,868						—
Derivative assets						54,241						54,241						—						54,216						25
Financial Liabilities
Total deposits						10,327,269						10,283,543						—						10,283,543						—
Short-term debt						—						—						—						—						—
Long-term FHLB advances						4,445						2,782						—						2,782						—
Subordinated notes						121,064						110,853						—						110,853						—
Derivative liabilities						97,030						97,030						—						97,030						—

						December 31, 2021
						Carrying Amount						Fair Value
(In thousands)																		Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	1,627,807					$	1,627,807					$	1,627,807					$	—					$	—
Trading security						8,354						8,354						—						—						8,354
Marketable equity securities						15,453						15,453						14,798						655						—
Securities available for sale						1,877,585						1,877,585						—						1,873,555						4,030
Securities held to maturity						636,503						647,236						—						644,497						2,739
FHLB stock and restricted equity securities						10,800						N/A						N/A						N/A						N/A
Net loans						6,719,753						6,850,975						—						—						6,850,975
Loans held for sale						6,110						6,110						—						6,110						—
Accrued interest receivable						33,534						33,534						—						33,534						—
Derivative assets						79,528						79,528						—						79,270						258
Assets held for sale						—						—						—						—						—
Financial Liabilities
Total deposits						10,068,953						10,073,217						—						10,073,217						—
Short-term debt						—						—						—						—						—
Long-term FHLB advances						13,331						13,053						—						13,053						—
Subordinated notes						97,513						95,006						—						95,006						—
Derivative liabilities						35,194						35,194						—						35,194						—

X

- Definition

Tabular disclosure of the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset and liabilities.

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of information about asset and liability measured at fair value under fair value option.

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