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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

			March 31, 2023
			Level 1						Level 2						Level 3						Total
(In thousands)			Inputs						Inputs						Inputs						Fair Value
Trading securities			$	—					$	—					$	6,584					$	6,584
Securities available for sale:
U.S Treasuries			8,981						—						—						8,981
Municipal bonds and obligations			—						64,617						—						64,617
Agency collateralized mortgage obligations			—						525,949						—						525,949
Agency residential mortgage-backed securities			—						539,597						—						539,597
Agency commercial mortgage-backed securities			—						227,408						—						227,408
Corporate bonds			—						36,263						3,800						40,063
Other bonds and obligations			—						656						—						656
Equity securities			13,072						—						—						13,072
Loans held for investment at fair value			—						—						460						$	460
Loans held for sale			—						1,906						—						1,906
Derivative assets			—						43,615						41						43,656
Capitalized servicing rights			—						—						1,666						1,666
Derivative liabilities			—						73,909						—						73,909

			December 31, 2022
			Level 1						Level 2						Level 3						Total
(In thousands)			Inputs						Inputs						Inputs						Fair Value
Trading securities			$	—					$	—					$	6,708					$	6,708
Securities available for sale:
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
Equity securities			12,856						—						—						12,856
Loans held for investment at fair value			—						—						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

Schedule of Loans Held for Investment and Loans Held for Sale

Aggregate Fair Value

March 31, 2023

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for investment at fair value

$

460

$

10,213

$

(9,753)

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)

Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) 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

March 31, 2023

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for sale

$

1,906

$

1,882

$

24

Aggregate Fair Value

December 31, 2022

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for sale

$

942

$

927

$

15

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 and liabilities that were measured at fair value on a recurring basis for the three months ended March 31, 2023 and 2022.

			Assets (Liabilities)
									Securities						Loans																		Capitalized
			Trading						Available						Held for						Commitments						Forward						Servicing
(In thousands)			Securities						for Sale						Investment						to Lend						Commitments						Rights
Three Months Ended March 31, 2023
December 31, 2022			$	6,708					$	4,000					$	605					$	17					$	8					$	1,846
Unrealized (loss)/gain, net recognized in other non-interest income			88						—						(129)						34						7						(180)
Unrealized gain included in accumulated other comprehensive income			—						(200)						—						—						—						—
Paydown of asset			(212)						—						(16)						—						—						—
Transfers to held for sale loans			—						—						—						(25)						—						—
March 31, 2023			$	6,584					$	3,800					$	460					$	26					$	15					$	1,666
Unrealized (loss)/gain relating to instruments still held at March 31, 2023			$	(266)					$	(200)					$	—					$	26					$	15					$	—

									Securities						Loans																		Capitalized
			Trading						Available						Held for						Commitments						Forward						Servicing
(In thousands)			Securities						for Sale						Investment						to Lend						Commitments						Rights
Three Months Ended March 31, 2022
December 31, 2021			$	8,354					$	4,030					$	1,200					$	124					$	134					$	1,966
Unrealized (loss)/gain, net recognized in other non-interest income			(354)						—						209						70						(127)						(180)
Unrealized gain included in accumulated other comprehensive loss			—						(10)						—						—						—						—
Paydown of asset			(202)						—						(212)						—						—						—
Transfers to held for sale loans			—						—						—						(176)						—						—
March 31, 2022			$	7,798					$	4,020					$	1,197					$	18					$	7					$	1,786
Unrealized gain relating to instruments still held at March 31,2022			$	121					$	20					$	—					$	18					$	7					$	—

Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3

Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows:

						Fair Value																		Significant Unobservable Input
(In thousands)						March 31, 2023						Valuation Techniques						Unobservable Inputs						Value
Assets (Liabilities)
Trading Securities						$	6,584					Discounted Cash Flow						Discount Rate						5.47		%
AFS Securities						3,800						Indication from Market Maker						Price						95.00%
Loans held for investment						460						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$0.0 - $20.3
Commitments to lend						26						Historical Trend						Closing Ratio						80.43		%
												Pricing Model						Origination Costs, per loan						$	2
Forward commitments						15						Historical Trend						Closing Ratio						80.43		%
												Pricing Model						Origination Costs, per loan						$	2
Capitalized servicing rights						1,666						Discounted cash flow						Constant Prepayment Rate (CPR)						11.15		%
																		Discount Rate						9.56		%
Total						$	12,551

						Fair Value																		Significant Unobservable Input
(In thousands)						December 31, 2022						Valuation Techniques						Unobservable Inputs						Value
Assets (Liabilities)
Trading Securities						$	6,708					Discounted Cash Flow						Discount Rate						5.92		%
AFS Securities						4,000						Indication from Market Maker						Price						101.00		%
Loans held for investment						605						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$0.0- $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

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

March 31, 2023

Fair Value Measurement Date

December 31, 2022

Fair Value Measurement Date

Level 3

Level 3

Level 3

Level 3

(In thousands)

Inputs

Inputs

Inputs

Inputs

Assets

Individually evaluated

$

6,139

March 2023

$

14,571

December 2022

Loans held for sale

—

March 2023

3,369

December 2022

Capitalized servicing rights

11,436

March 2023

11,201

December 2022

Total

$

17,575

$

29,141

Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows:

Fair Value

(In thousands)

March 31, 2023

Valuation Techniques

Unobservable Inputs

Range (Weighted Average) (1)

Assets

Individually evaluated

$

6,139

Fair Value of Collateral

Discounted Cash Flow - Loss Severity

(100.00)% to 77.72% ((53.93)%)

Appraised Value

$0 to $2,160 ((-828.74))

Capitalized servicing rights

11,436

Discounted Cash Flow

Constant Prepayment Rate (CPR)

5.81% to 13.18% (11.15%)

Discount Rate

9.60% to 17.77% (14.83%)

Total

$

17,575

(1)     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 individuals properties.

Fair Value

(In thousands)

December 31, 2022

Valuation Techniques

Unobservable Inputs

Range (Weighted Average) (1)

Assets

Individually evaluated

$

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

$

29,141

(1)     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 individuals properties.

Schedule of Estimated Non-recurring Fair Value of Financial Instruments

The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.

						March 31, 2023
						Carrying						Fair
(In thousands)						Amount						Value						Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	1,006,562					$	1,006,562					$	1,006,562					$	—					$	—
Trading securities						6,584						6,584						—						—						6,584
Equity securities						13,072						13,072						13,072						—						—
Securities available for sale						1,407,271						1,407,271						8,981						1,394,490						3,800
Securities held to maturity						574,606						507,091						—						505,357						1,734
Federal Home Loan Bank stock						44,245						N/A						N/A						N/A						N/A
Net loans						8,583,976						8,553,066						—						—						8,553,066
Loans held for sale						1,906						1,906						—						1,906						—
Accrued interest receivable						49,464						49,464						—						49,464						—
Derivative assets						43,656						43,656						—						43,615						41
Financial Liabilities
Total deposits						$	10,067,545					$	10,034,068					$	—					$	10,034,068					$	—
Short-term debt						900,000						900,141						—						900,141						—
Long-term Federal Home Loan Bank advances and other						4,395						2,895						—						2,895						—
Subordinated borrowings						121,176						97,742						—						97,742						—
Derivative liabilities						73,909						73,909						—						73,909						—

						December 31, 2022
						Carrying						Fair
(In thousands)						Amount						Value						Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	685,355					$	685,355					$	685,355					$	—					$	—
Trading securities						6,708						6,708						—						—						6,708
Equity securities						12,856						12,856						12,856						—						—
Securities available for sale and other						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
Federal Home Loan Bank stock						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 Federal Home Loan Bank advances						4,445						2,782						—						2,782						—
Subordinated borrowings						121,064						110,853						—						110,853						—
Derivative liabilities						97,030						97,030						—						97,030						—

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 assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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