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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair value measurements of assets on a recurring basis

The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis at the dates indicated:

			June 30, 2021
			Total						Level 1						Level 2						Level 3
			(In thousands)
Assets
Investment securities available for sale:
U.S. government and agency securities			$	103,647					$	—					$	103,647					$	—
Municipal securities			228,927						—						228,927						—
Residential CMO and MBS			259,494						—						259,494						—
Commercial CMO and MBS			421,940						—						421,940						—
Corporate obligations			7,018						—						7,018						—
Other asset-backed securities			28,498						—						28,498						—
Total investment securities available for sale			1,049,524						—						1,049,524						—
Equity security			181						181						—						—
Derivative assets - interest rate swaps			19,342						—						19,342						—
Liabilities
Derivative liabilities - interest rate swaps			$	19,510					$	—					19,510						$	—

			December 31, 2020
			Total						Level 1						Level 2						Level 3
			(In thousands)
Assets
Investment securities available for sale:
U.S. government and agency securities			$	45,660					$	—					$	45,660					$	—
Municipal securities			209,968						—						209,968						—
Residential CMO and MBS			201,872						—						201,872						—
Commercial CMO and MBS			303,746						—						303,746						—
Corporate obligations			11,096						—						11,096						—
Other asset-backed securities			29,821						—						29,821						—
Total investment securities available for sale			802,163						—						802,163						—
Equity security			131						131						—						—
Derivative assets - interest rate swaps			25,740						—						25,740						—
Liabilities
Derivative liabilities - interest rate swaps			$	26,162					$	—					$	26,162					$	—

Fair value measurements of assets on a nonrecurring basis

The following tables below represent assets measured at fair value on a nonrecurring basis at the dates indicated:

									Fair Value at June 30, 2021
			Basis(1)						Total						Level 1						Level 2						Level 3
			(In thousands)
Collateral-dependent loans:
Commercial business:
Commercial and industrial			$	983					$	775					$	—					$	—					$	775

									Fair Value at June 30, 2021
			Basis(1)						Total						Level 1						Level 2						Level 3
			(In thousands)
Owner-occupied CRE			622						486						—						—						486
Total commercial business			1,605						1,261						—						—						1,261
Real estate construction and land development:
Commercial and multifamily			991						534						—						—						534
Total assets measured at fair value on a nonrecurring basis			$	2,596					$	1,795					$	—					$	—					$	1,795

(1) Basis represents the outstanding principal balance of collateral-dependent loans.

									Fair Value at December 31, 2020
			Basis(1)						Total						Level 1						Level 2						Level 3
			(In thousands)
Collateral-dependent loans:
Commercial business:
Commercial and industrial			$	1,305					$	1,289					$	—					$	—					$	1,289
Prepaid expenses and other assets:
Branch held for sale (2)			1,330						1,330						—						—						1,330
Total assets measured at fair value on a nonrecurring basis			$	2,635					$	2,619					$	—					$	—					$	2,619

(1) Basis represents the outstanding principal balance of collateral-dependent loans and the carrying value of the branch held for sale.

(2) In October 2020, one branch was reclassified as held for sale in accordance with ASC 360-10. As part of the transfer, the branch was written down to its net realizable value at that time.

The following table represents the net (loss) gain recorded in earnings as a result of nonrecurring fair value adjustments recorded during the periods indicated:

			Three Months Ended June 30,												Six Months Ended June 30,
			2021						2020						2021						2020
			(In thousands)
Collateral-dependent loans:
Commercial business:
Commercial and industrial			$	6					$	9					$	(28)					$	3
Owner-occupied CRE			(76)						—						(76)						—
Total commercial business			(70)						9						(104)						3
Real estate construction and land development:
Commercial and multifamily			(23)						—						(38)						—
Net (loss) gain from nonrecurring fair value adjustments			$	(93)					$	9					$	(142)					$	3

Fair value measurements for financial instruments measured at fair value on a non-recurring basis

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the dates indicated:

June 30, 2021

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range of Inputs; Weighted Average

(Dollars in thousands)

Collateral-dependent loans

$

1,795

Market approach

Adjustment for differences between the comparable sales

55.0% - (20.0)%; 18.3%

December 31, 2020

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range of Inputs; Weighted Average

(Dollars in thousands)

Collateral-dependent loans

$

1,289

Market approach

Adjustment for differences between the comparable sales

0.6% - (40.1%); (24.1%)

Branch held for sale

$

1,330

Market approach

Adjustment for differences between the comparable sales

140.7% - (40.3%); 33.2%

Schedule of carrying value and fair value of financial instruments

The following tables present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at the dates indicated:

			June 30, 2021
			Carrying Value						Fair Value						Fair Value Measurements Using:
															Level 1						Level 2						Level 3
			(In thousands)
Financial Assets:
Cash and cash equivalents			$	1,264,933					$	1,264,933					$	1,264,933					$	—					$	—
Investment securities available for sale			1,049,524						1,049,524						—						1,049,524						—
Loans held for sale			2,739						2,840						—						—						2,840
Loans receivable, net			4,155,968						4,271,615						—						—						4,271,615
Accrued interest receivable			17,113						17,113						65						4,244						12,804
Banked owned life insurance			108,988						108,988						108,988						—						—
Derivative assets - interest rate swaps			19,342						19,342						—						19,342						—
Equity security			181						181						181						—						—
Financial Liabilities:
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts			$	5,686,807					$	5,686,807					$	5,686,807					$	—					$	—
Certificates of deposit			374,899						376,646						—						376,646						—
Securities sold under agreement to repurchase			46,429						46,429						46,429						—						—
Junior subordinated debentures			21,034						18,250						—						—						18,250
Accrued interest payable			74						74						31						25						18
Derivative liabilities - interest rate swaps			19,510						19,510						—						19,510						—

			December 31, 2020
			Carrying Value						Fair Value						Fair Value Measurements Using:
															Level 1						Level 2						Level 3
			(In thousands)
Financial Assets:
Cash and cash equivalents			$	743,322					$	743,322					$	743,322					$	—					$	—
Investment securities available for sale			802,163						802,163						—						802,163						—
Loans held for sale			4,932						5,156						—						—						5,156

			December 31, 2020
			Carrying Value						Fair Value						Fair Value Measurements Using:
															Level 1						Level 2						Level 3
			(In thousands)
Loans receivable, net			4,398,462						4,556,862						—						—						4,556,862
Accrued interest receivable			19,418						19,418						2						3,648						15,768
Bank owned life insurance			107,580						107,580						107,580						—						—
Derivative assets - interest rate swaps			25,740						25,740						—						25,740						—
Equity security			131						131						131						—						—
Financial Liabilities:
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts			$	5,198,456					$	5,198,456					$	5,198,456					$	—					$	—
Certificates of deposit			399,534						402,701						—						402,701						—
Securities sold under agreement to repurchase			35,683						35,683						35,683						—						—
Junior subordinated debentures			20,887						18,500						—						—						18,500
Accrued interest payable			94						94						42						33						19
Derivative liabilities - interest rate swaps			26,162						26,162						—						26,162						—

X

- Definition

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).

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

+ References

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class 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).

+ References

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-Section 50
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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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