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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.

			September 30, 2024
			Level 1						Level 2						Level 3						Total
(In thousands)			Inputs						Inputs						Inputs						Fair Value
Trading securities			$	—					$	—					$	5,560					$	5,560
Securities available for sale:
U.S Treasuries			6,907						—						—						6,907
Municipal bonds and obligations			—						62,931						—						62,931
Agency collateralized mortgage obligations			—						252,432						—						252,432
Agency residential mortgage-backed securities			—						232,931						—						232,931
Agency commercial mortgage-backed securities			—						70,566						—						70,566
Corporate bonds			—						31,425						3,892						35,317
Other bonds and obligations			—						656						—						656
Equity securities			13,278						—						—						13,278
Loans held for investment at fair value			—						—						294						294
Loans held for sale			—						6,003						—						6,003
Derivative assets			—						44,790						217						45,007
Capitalized servicing rights			—						—						1,386						1,386
Derivative liabilities			—						63,678						—						63,678

			December 31, 2023
			Level 1						Level 2						Level 3						Total
(In thousands)			Inputs						Inputs						Inputs						Fair Value
Trading securities			$	—					$	—					$	6,142					$	6,142
Securities available for sale:
U.S Treasuries			7,981						—						—						7,981
Municipal bonds and obligations			—						63,853						—						63,853
Agency collateralized mortgage obligations			—						347,874						—						347,874
Agency residential mortgage-backed securities			—						417,480						—						417,480
Agency commercial mortgage-backed securities			—						145,326						—						145,326
Corporate bonds			—						35,192						3,923						39,115
Equity securities			13,029						—						—						13,029
Loans held for investment at fair value			—						—						374						374
Loans held for sale			—						2,237						—						2,237
Derivative assets			—						45,613						55						45,668
Capitalized servicing rights			—						—						1,526						1,526
Derivative liabilities			—						75,957						—						75,957

Schedule of Loans Held for Investment and Loans Held for Sale

Aggregate Fair Value

September 30, 2024

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for investment at fair value

$

294

$

6,555

$

(6,261)

Aggregate Fair Value

December 31, 2023

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for investment at fair value

$

374

$

8,809

$

(8,435)

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

September 30, 2024

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for sale

$

6,003

$

5,918

$

85

Aggregate Fair Value

December 31, 2023

Aggregate

Aggregate

Less Aggregate

(In thousands)

Fair Value

Unpaid Principal

Unpaid Principal

Loans held for sale

$

2,237

$

2,205

$

32

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 nine months ended September 30, 2024 and 2023.

			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 September 30, 2024
June 30, 2024			$	5,699					$	3,902					$	326					$	101					$	32					$	1,566
Unrealized gain/(loss), net recognized in other non-interest income			88						—						(19)						327						20						(180)
Unrealized (loss) included in accumulated other comprehensive income			—						(10)						—						—						—						—
Paydown of asset			(227)						—						(13)						—						—						—
Transfers to held for sale loans			—						—						—						(263)						—						—
September 30, 2024			$	5,560					$	3,892					$	294					$	165					$	52					$	1,386
Nine Months Ended September 30, 2024
December 31, 2023			$	6,142					$	3,923					$	374					$	34					$	21					$	1,526
Unrealized gain, net recognized in other non-interest income			92						—						(16)						925						31						(140)
Unrealized (loss) included in accumulated other comprehensive income			—						(31)						—						—						—						—
Paydown of asset			(674)						—						(64)						—						—						—
Transfers to held for sale loans			—						—						—						(794)						—						—
September 30, 2024			$	5,560					$	3,892					$	294					$	165					$	52					$	1,386
Unrealized (loss)/gain relating to instruments still held at September 30, 2024			$	32					$	(108)					$	—					$	165					$	52					$	—

			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 September 30, 2023
June 30, 2023			$	6,405					$	3,930					$	401					$	37					$	63					$	1,886
Unrealized (loss)/gain, net recognized in other non-interest income			(19)						—						28						26						(53)						(180)
Unrealized gain included in accumulated other comprehensive income			—						30						—						—						—						—
Paydown of asset			(215)						—						(21)						—						—						—
Transfers to held for sale loans			—						—						—						(72)						—						—
September 30, 2023			$	6,171					$	3,960					$	408					$	(9)					$	10					$	1,706
Nine Months Ended September 30, 2023
December 31, 2022			$	6,708					$	4,000					$	605					$	17					$	8					$	1,846
Unrealized gain/(loss), net recognized in other non-interest income			104						—						(119)						146						2						(140)
Unrealized (loss) included in accumulated other comprehensive income			—						(40)						—						—						—						—
Paydown of asset			(641)						—						(78)						—						—						—
Transfers to held for sale loans			—						—						—						(172)						—						—
September 30, 2023			$	6,171					$	3,960					$	408					$	(9)					$	10					$	1,706
Unrealized (loss)/gain relating to instruments still held at September 30, 2023			$	(251)					$	(40)					$	—					$	(9)					$	10					$	—

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)						September 30, 2024						Valuation Techniques						Unobservable Inputs						Value
Assets (Liabilities)
Trading Securities						$	5,560					Discounted Cash Flow						Discount Rate						3.24		%
AFS Securities						3,892						Indication from Market Maker						Price						97.29%
Loans held for investment						294						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$0.0 - $17.5
Commitments to lend						165						Historical Trend						Closing Ratio						85.71		%
												Pricing Model						Origination Costs, per loan						$	3
Forward commitments						52						Historical Trend						Closing Ratio						85.71		%
												Pricing Model						Origination Costs, per loan						$	3
Capitalized servicing rights						1,386						Discounted cash flow						Constant Prepayment Rate (CPR)						7.26		%
																		Discount Rate						10.09		%
Total						$	11,349

						Fair Value																		Significant Unobservable Input
(In thousands)						December 31, 2023						Valuation Techniques						Unobservable Inputs						Value
Assets (Liabilities)
Trading Securities						$	6,142					Discounted Cash Flow						Discount Rate						4.19		%
AFS Securities						3,923						Indication from Market Maker						Price						98.07		%
Loans held for investment						374						Discounted Cash Flow						Discount Rate						25.00		%
																		Collateral Value						$0.0- $18.3
Commitments to lend						34						Historical Trend						Closing Ratio						84.29		%
												Pricing Model						Origination Costs, per loan						$	3
Forward commitments						21						Historical Trend						Closing Ratio						84.29		%
												Pricing Model						Origination Costs, per loan						$	3
Capitalized servicing rights						1,526						Discounted Cash Flow						Constant Prepayment Rate (CPR)						7.63		%
																		Discount Rate						11.08		%
Total						$	12,020

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.

September 30, 2024

Fair Value Measurement Date

December 31, 2023

Fair Value Measurement Date

Level 3

Level 3

Level 3

Level 3

(In thousands)

Inputs

Inputs

Inputs

Inputs

Assets

Individually evaluated

$

1,872

September 2024

$

4,395

December 2023

Loans held for sale

44,631

September 2024

—

December 2023

Capitalized servicing rights

9,817

September 2024

10,569

December 2023

Total

$

56,320

$

14,964

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

Fair Value

(In thousands)

September 30, 2024

Valuation Techniques

Unobservable Inputs

Range (Weighted Average) (1)

Assets

Individually evaluated

$

1,872

Fair Value of Collateral

Discounted Cash Flow - Loss Severity

(100.00)% to (0.07)% ((66.92)%)

Appraised Value

$0 to $182 ($154)

Loans held for sale

44,631

Fair Value of Collateral

Market Price

$44,631

Capitalized servicing rights

9,817

Discounted Cash Flow

Constant Prepayment Rate (CPR)

4.74% to 27.03% (13.46%)

Discount Rate

10.47% to 13.58% (12.18%)

Total

$

56,320

(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, 2023

Valuation Techniques

Unobservable Inputs

Range (Weighted Average) (1)

Assets

Individually evaluated

$

4,395

Fair Value of Collateral

Discounted Cash Flow - loss severity

(100.00)% to (0.08)% ((67.00)%)

Appraised Value

$0 to $3,389 ($2,774)

Capitalized servicing rights

10,569

Discounted Cash Flow

Constant Prepayment Rate (CPR)

5.43% to 17.15% (12.31%)

Discount Rate

10.09% to 16.59% (13.82%)

Total

$

14,964

(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.

						September 30, 2024
						Carrying						Fair
(In thousands)						Amount						Value						Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	569,967					$	569,967					$	569,967					$	—					$	—
Trading securities						5,560						5,560						—						—						5,560
Equity securities						13,278						13,278						13,278						—						—
Securities available for sale						661,740						661,740						6,907						650,941						3,892
Securities held to maturity						512,277						451,194						—						449,986						1,208
Federal Home Loan Bank stock						30,685						N/A						N/A						N/A						N/A
Net loans						9,100,275						9,024,531						—						—						9,024,531
Loans held for sale						50,634						50,634						—						6,003						44,631
Accrued interest receivable						49,804						49,804						—						49,804						—
Derivative assets						45,007						45,007						—						44,790						217
Assets held for sale						6,930						6,930						—						6,930						—
Financial Liabilities
Total deposits						$	9,577,489					$	9,572,152					$	—					$	9,572,152					$	—
Short-term debt						353,500						353,982						—						353,982						—
Long-term Federal Home Loan Bank advances and other						232,042						230,387						—						230,387						—
Subordinated borrowings						121,549						106,519						—						106,519						—
Accrued interest payable						11,937						11,937						—						11,937						—
Derivative liabilities						63,678						63,678						—						63,678						—
Liabilities held for sale						—						—						—						—						—

						December 31, 2023
						Carrying						Fair
(In thousands)						Amount						Value						Level 1						Level 2						Level 3
Financial Assets
Cash and cash equivalents						$	1,203,244					$	1,203,244					$	1,203,244					$	—					$	—
Trading securities						6,142						6,142						—						—						6,142
Equity securities						13,029						13,029						13,029						—						—
Securities available for sale and other						1,022,285						1,022,285						7,981						1,010,381						3,923
Securities held to maturity						543,351						476,228						—						474,742						1,486
Federal Home Loan Bank stock						22,689						N/A						N/A						N/A						N/A
Net loans						8,934,329						8,768,108						—						—						8,768,108
Loans held for sale						2,237						2,237						—						2,237						—
Accrued interest receivable						53,096						53,096						—						53,096						—
Derivative assets						45,668						45,668						—						45,613						55
Financial Liabilities
Total deposits						$	10,633,384					$	10,615,655					$	—					$	10,615,655					$	—
Short-term debt						260,000						260,035						—						260,035						—
Long-term Federal Home Loan Bank advances						125,223						123,747						—						123,747						—
Subordinated borrowings						121,363						98,138						—						98,138						—
Accrued interest payable						13,766						13,766						—						13,766						—
Derivative liabilities						75,957						75,957						—						75,957						—

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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