XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.24.3

Note 8 - FAIR VALUE | 9 Months Ended
--- | ---
Sep. 30, 2024
FAIR VALUE |
FAIR VALUE | NOTE 8 – FAIR VALUE ​ Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:
| ● | Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets;
| ● | Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and
| ● | Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Assets and liabilities measured at fair value on a recurring basis comprise the following at September 30, 2024 and December 31, 2023: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Fair Value Measurements at Reporting Date Using
​ | ​ | ​ | ​ | ​ | Quoted Prices | ​ | Significant | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | in Active | ​ | Other | ​ | Significant
​ | ​ | ​ | ​ | ​ | Markets for | ​ | Observable | ​ | Unobservable
​ | ​ | ​ | ​ | ​ | Identical Assets | ​ | Inputs | ​ | Inputs
​ |  | Fair Value |  | (Level 1) |  | (Level 2) |  | (Level 3)
​ | ​ | (dollars in thousands)
September 30, 2024: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Securities AFS: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. treasuries and govt. sponsored agency securities | ​ | $ | 18,621 | ​ | $ | — | ​ | $ | 18,621 | ​ | $ | —
Residential mortgage-backed and related securities | ​ |  | 53,487 | ​ |  | — | ​ |  | 53,487 | ​ |  | —
Municipal securities | ​ |  | 171,162 | ​ |  | — | ​ |  | 171,162 | ​ |  | —
Asset-backed securities | ​ | ​ | 10,455 | ​ | ​ | — | ​ | ​ | 10,455 | ​ | ​ | —
Other securities | ​ |  | 38,140 | ​ |  | — | ​ |  | 38,140 | ​ |  | —
Securities trading | ​ | ​ | 58,685 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 58,685
Derivatives | ​ |  | 261,913 | ​ |  | — | ​ |  | 261,913 | ​ |  | —
Total assets measured at fair value | ​ | $ | 612,463 | ​ | $ | — | ​ | $ | 553,778 | ​ | $ | 58,685
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Derivatives | ​ | $ | 285,769 | ​ | $ | — | ​ | $ | 285,769 | ​ | $ | —
Total liabilities measured at fair value | ​ | $ | 285,769 | ​ | $ | — | ​ | $ | 285,769 | ​ | $ | —
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
December 31, 2023: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Securities AFS: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
U.S. govt. sponsored agency securities | ​ | $ | 14,973 | ​ | $ | — | ​ | $ | 14,973 | ​ | $ | —
Residential mortgage-backed and related securities | ​ |  | 59,196 | ​ |  | — | ​ |  | 59,196 | ​ |  | —
Municipal securities | ​ |  | 170,987 | ​ |  | — | ​ |  | 170,987 | ​ |  | —
Asset-backed securities | ​ | ​ | 15,423 | ​ | ​ | — | ​ | ​ | 15,423 | ​ | ​ | —
Other securities | ​ |  | 39,076 | ​ |  | — | ​ |  | 39,076 | ​ |  | —
Securities trading | ​ | ​ | 22,369 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 22,369
Derivatives | ​ |  | 187,341 | ​ |  | — | ​ |  | 187,341 | ​ |  | —
Total assets measured at fair value | ​ | $ | 509,365 | ​ | $ | — | ​ | $ | 486,996 | ​ | $ | 22,369
​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Derivatives | ​ | $ | 215,735 | ​ | $ | — | ​ | $ | 215,735 | ​ | $ | —
Total liabilities measured at fair value | ​ | $ | 215,735 | ​ | $ | — | ​ | $ | 215,735 | ​ | $ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The securities AFS portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, SOFR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs). Trading securities consist of retained beneficial interests from securitizations and are classified as a Level 3 in the fair value hierarchy. Fair values are estimated using the discounted cash flow method, including discount rates which are deemed to be significant unobservable inputs. As of September 30, 2024, the discount rates ranged from 5.86% to 7.12%. There were no trading securities as of September 30, 2024. Changes in fair value of trading securities for the three and nine months ended September 30, 2024, respectively, are presented as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | For the | ​ | ​ | ​ | For the | ​
​ | Three Months Ended | ​ | ​ | ​ | Nine Months Ended | ​
​ | September 30, 2024 | ​ | ​ | ​ | September 30, 2024 | ​
​ | (dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance at the beginning of the period | $ | 22,362 | ​ | ​ | $ | 22,369 | ​
Trading securities purchased | ​ | 36,670 | ​ | ​ | ​ | 36,670 | ​
Fair value gain (loss) | ​ | (347) | ​ | ​ | ​ | (354) | ​
Balance at the end of the period | $ | 58,685 | ​ | ​ | $ | 58,685 | ​
​ Interest rate caps, swaps, swaptions and collars are used for the purpose of hedging interest rate risk on various financial assets and liabilities, further described in Note 4 to the Consolidated Financial Statements. Interest rate swaps are also executed for select commercial customers. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs). Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when a loan/lease is collaterally dependent). Assets measured at fair value on a non-recurring basis comprised the following at September 30, 2024 and December 31, 2023: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ |  | Fair Value Measurements at Reporting Date Using
​ | ​ | ​ | ​ | ​ | Quoted Prices | ​ | Significant | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | in Active | ​ | Other | ​ | Significant
​ | ​ | ​ | ​ | ​ | Markets for | ​ | Observable | ​ | Unobservable
​ | ​ | ​ | ​ | ​ | Identical Assets | ​ | Inputs | ​ | Inputs
​ |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
​ | ​ | (dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
September 30, 2024: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Loans/leases evaluated individually | ​ | $ | 36,118 | ​ | $ | — | ​ | $ | — | ​ | $ | 36,118
Loans receivable held for sale in preparation for securitization | ​ | ​ | 165,941 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 165,941
OREO | ​ | ​ | 399 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 399
Other repossessed assets | ​ |  | 610 | ​ |  | — | ​ |  | — | ​ |  | 610
​ | ​ | $ | 203,068 | ​ | $ | — | ​ | $ | — | ​ | $ | 203,068
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2023: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Loans/leases evaluated individually | ​ | $ | 33,656 | ​ | $ | — | ​ | $ | — | ​ | $ | 33,656
OREO | ​ |  | 1,455 | ​ |  | — | ​ |  | — | ​ |  | 1,455
​ | ​ | $ | 35,111 | ​ | $ | — | ​ | $ | — | ​ | $ | 35,111
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ Loans/leases evaluated individually are valued at the lower of cost or fair value and are classified as Level 3 in the fair value hierarchy. Fair value is measured based on the value of the collateral securing these loans/leases. Collateral may be comprised of real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business. Loans receivable held for sale in preparation for securitization are valued at the lower of cost or fair value in the aggregate by type and are classified as Level 3 in the fair value hierarchy. Fair value is estimated considering the loans have a floating interest rate with a spread that is commensurate with current market pricing, in addition to factoring in a discount for credit risk. OREO in the table above consists of property acquired through foreclosures and settlement of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property acquired is generally determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the property. Other repossessed assets in the table above consists of equipment acquired through repossession and settlement of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property acquired is generally determined based on current average auction prices database used by a national auction company hired by the Company. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Quantitative Information about Level Fair Value Measurements |
​ | ​ | Fair Value | ​ | Fair Value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
​ | ​ | September 30, | ​ | December 31, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
​ |  | 2024 |  | 2023 |  | Valuation Technique |  | Unobservable Input |  | Range | ​
​ | ​ | (dollars in thousands) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans/leases evaluated individually | ​ | $ | 36,118 | ​ | $ | 33,656 | ​ | Appraisal of collateral | ​ | Appraisal adjustments | ​ | -10.00 | % | to | ​ | -30.00 | %
Loans receivable held for sale in preparation for securitization | ​ | ​ | 165,941 | ​ | ​ | — | ​ | Market prices for similar loans | ​ | Market price adjustments | ​ | ​ | ​ | n/a | ​ | ​ | ​
OREO | ​ | ​ | 399 | ​ | ​ | 1,455 | ​ | Appraisal of collateral | ​ | Appraisal adjustments | ​ | 0.00 | % | to |  | -35.00 | %
Other repossessed assets | ​ |  | 610 | ​ |  | — |  | Average auction prices |  | Market price adjustments |  | ​ | ​ | n/a | ​ | ​ | ​
​ For the loans/leases evaluated individually and OREO, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs. For loans receivable held for sale in preparation for securitization, the Company records carrying value at fair value factoring in a discount for credit risk. There have been no changes in valuation techniques used for any assets or liabilities measured at fair value during the three and nine months ended September 30, 2024 and 2023. The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company's consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Fair Value | ​ | As of September 30, 2024 | ​ | As of December 31, 2023
​ | ​ | Hierarchy | ​ | Carrying | ​ | Estimated | ​ | Carrying | ​ | Estimated
​ |  | Level |  | Value |  | Fair Value |  | Value |  | Fair Value
​ | ​ | ​ | ​ | (dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash and due from banks |  | Level 1 | ​ | $ | 103,840 | ​ | $ | 103,840 | ​ | $ | 97,123 | ​ | $ | 97,123
Federal funds sold |  | Level 2 | ​ |  | 13,200 | ​ |  | 13,200 | ​ |  | 35,450 | ​ |  | 35,450
Interest-bearing deposits at financial institutions |  | Level 2 | ​ |  | 145,959 | ​ |  | 145,959 | ​ |  | 104,919 | ​ |  | 104,919
Investment securities: |  |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
HTM |  | Level 2 | ​ |  | 795,496 | ​ |  | 791,659 | ​ |  | 683,504 | ​ |  | 680,279
AFS |  | Level 2 | ​ |  | 291,865 | ​ |  | 291,865 | ​ |  | 299,655 | ​ |  | 299,655
Trading | ​ | Level 3 | ​ | ​ | 58,685 | ​ | ​ | 58,685 | ​ | ​ | 22,369 | ​ | ​ | 22,369
Loans/leases receivable, net |  | Level 3 | ​ |  | 33,443 | ​ |  | 36,118 | ​ |  | 31,163 | ​ |  | 33,656
Loans/leases receivable, net |  | Level 2 | ​ |  | 6,709,038 | ​ |  | 6,483,278 | ​ |  | 6,425,053 | ​ |  | 6,125,433
Derivatives |  | Level 2 | ​ |  | 261,913 | ​ |  | 261,913 | ​ |  | 187,341 | ​ |  | 187,341
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits: |  |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Nonmaturity deposits |  | Level 2 | ​ |  | 5,749,506 | ​ |  | 5,749,506 | ​ |  | 5,504,323 | ​ |  | 5,504,323
Time deposits |  | Level 2 | ​ |  | 1,235,127 | ​ |  | 1,235,442 | ​ |  | 1,009,682 | ​ |  | 996,746
Short-term borrowings |  | Level 2 | ​ |  | 2,750 | ​ |  | 2,750 | ​ |  | 1,500 | ​ |  | 1,500
FHLB advances |  | Level 2 | ​ |  | 375,383 | ​ |  | 377,501 | ​ |  | 435,000 | ​ |  | 437,178
Subordinated notes | ​ | Level 2 | ​ | ​ | 233,383 | ​ | ​ | 238,978 | ​ | ​ | 233,064 | ​ | ​ | 240,235
Junior subordinated debentures |  | Level 2 | ​ |  | 48,828 | ​ |  | 41,114 | ​ |  | 48,731 | ​ |  | 40,397
Derivatives |  | Level 2 | ​ |  | 285,769 | ​ |  | 285,769 | ​ |  | 215,735 | ​ |  | 215,735
​

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration