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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2023 and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

			June 30, 2023
			Level 1						Level 2						Level 3						Total
(In thousands)			Inputs						Inputs						Inputs						Fair Value
Trading securities			$	—					$	—					$	6,405					$	6,405
Securities available for sale:
U.S Treasuries			7,981						—						—						7,981
Municipal bonds and obligations			—						63,622						—						63,622
Agency collateralized mortgage obligations			—						491,340						—						491,340
Agency residential mortgage-backed securities			—						518,552						—						518,552
Agency commercial mortgage-backed securities			—						219,777						—						219,777
Corporate bonds			—						34,473						3,930						38,403
Other bonds and obligations			—						656						—						656
Equity securities			12,868						—						—						12,868
Loans held for investment at fair value			—						—						401						401
Loans held for sale			—						8,708						—						8,708
Derivative assets			—						52,636						100						52,736
Capitalized servicing rights			—						—						1,886						1,886
Derivative liabilities			—						94,656						—						94,656

			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

June 30, 2023

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for investment at fair value

$

401

$

9,285

$

(8,884)

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

June 30, 2023

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for sale

$

8,708

$

8,584

$

124

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 and six months ended June 30, 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 June 30, 2023
March 31, 2023			$	6,584					$	3,800					$	460					$	26					$	15					$	1,666
Unrealized (loss)/gain, net recognized in other non-interest income			34						—						(18)						87						48						220
Unrealized gain included in accumulated other comprehensive income			—						130						—						—						—						—
Paydown of asset			(213)						—						(41)						—						—						—
Transfers to held for sale loans			—						—						—						(76)						—						—
June 30, 2023			$	6,405					$	3,930					$	401					$	37					$	63					$	1,886
Six Months Ended June 30, 2023
December 31, 2022			$	6,708					$	4,000					$	605					$	17					$	8					$	1,846
Unrealized (loss)/gain, net recognized in other non-interest income			123						—						(147)						121						55						40
Unrealized (loss) included in accumulated other comprehensive income			—						(70)						—						—						—						—
Paydown of asset			(426)						—						(57)						—						—						—
Transfers to held for sale loans			—						—						—						(101)						—						—
June 30, 2023			$	6,405					$	3,930					$	401					$	37					$	63					$	1,886
Unrealized (loss)/gain relating to instruments still held at June 30, 2023			$	(266)					$	(200)					$	—					$	37					$	63					$	—

			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 June 30, 2022
March 31, 2022			$	7,798					$	4,020					$	1,197					$	18					$	7					$	1,786
Unrealized (loss)/gain, net recognized in other non-interest income			(556)						—						259						60						11						120
Unrealized gain included in accumulated other comprehensive income			—						—						—						—						—						—
Paydown of asset			(202)												(407)						—						—						—
Transfers to held for sale loans			—						—						—						(52)						—						—
June 30, 2022			$	7,040					$	4,020					$	1,049					$	26					$	18					$	1,906
Six Months Ended June 30, 2022
December 31, 2021			$	8,354					$	4,030					$	1,200					$	124					$	134					$	1,966
Unrealized (loss)/gain, net recognized in other non-interest income			(910)						—						468						130						(116)						(60)
Unrealized (loss) included in accumulated other comprehensive income			—						(10)						—						—						—						—
Paydown of asset			(404)						—						(619)						—						—						—
Transfers to held for sale loans			—						—						—						(228)						—						—
Additions to servicing rights			—						—						0						—						—						—
June 30, 2022			$	7,040					$	4,020					$	1,049					$	26					$	18					$	1,906
Unrealized (loss)/gain relating to instruments still held at June 30, 2022			$	(436)					$	20					$	—					$	26					$	18					$	—

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)						June 30, 2023						Valuation Techniques						Unobservable Inputs						Value
Assets (Liabilities)
Trading Securities						$	6,405					Discounted Cash Flow						Discount Rate						5.23		%
AFS Securities						3,930						Indication from Market Maker						Price						98.00%
Loans held for investment						401						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$0.0 - $17.8
Commitments to lend						37						Historical Trend						Closing Ratio						85.01		%
												Pricing Model						Origination Costs, per loan						$	3
Forward commitments						63						Historical Trend						Closing Ratio						85.01		%
												Pricing Model						Origination Costs, per loan						$	3
Capitalized servicing rights						1,886						Discounted cash flow						Constant Prepayment Rate (CPR)						9.87		%
																		Discount Rate						9.57		%
Total						$	12,722

						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						100.00		%
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.

June 30, 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

$

5,773

June 2023

$

14,571

December 2022

Loans held for sale

—

June 2023

3,369

December 2022

Capitalized servicing rights

11,223

June 2023

11,201

December 2022

Total

$

16,996

$

29,141

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

Fair Value

(In thousands)

June 30, 2023

Valuation Techniques

Unobservable Inputs

Range (Weighted Average) (1)

Assets

Individually evaluated

$

5,773

Fair Value of Collateral

Discounted Cash Flow - Loss Severity

(100.00)% to 13.51% ((49.95)%)

Appraised Value

$0 to $4,190 ($-2,611)

Capitalized servicing rights

11,223

Discounted Cash Flow

Constant Prepayment Rate (CPR)

4.78% to 14.01% (11.38%)

Discount Rate

9.59% to 17.09% (13.98%)

Total

$

16,996

(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.

						June 30, 2023
						Carrying						Fair
(In thousands)						Amount						Value						Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	640,600					$	640,600					$	640,600					$	—					$	—
Trading securities						6,405						6,405						—						—						6,405
Equity securities						12,868						12,868						12,868						—						—
Securities available for sale						1,340,331						1,340,331						7,981						1,328,420						3,930
Securities held to maturity						563,765						487,960						—						486,313						1,647
Federal Home Loan Bank stock						34,714						N/A						N/A						N/A						N/A
Net loans						8,782,183						8,727,074						—						—						8,727,074
Loans held for sale						8,708						8,708						—						8,708						—
Accrued interest receivable						50,580						50,580						—						50,580						—
Derivative assets						52,736						52,736						—						52,636						100
Financial Liabilities
Total deposits						$	10,068,407					$	10,035,236					$	—					$	10,035,236					$	—
Short-term debt						470,000						469,935						—						469,935						—
Long-term Federal Home Loan Bank advances and other						204,345						196,824						—						196,824						—
Subordinated borrowings						121,238						100,739						—						100,739						—
Accrued interest payable						7,096						7,096						—						7,096						—
Derivative liabilities						94,656						94,656						—						94,656						—

						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						—
Accrued interest payable						1,610						1,610						—						1,610						—
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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