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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 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:
| September 30, 2021
| Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Assets |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. government and agency securities | $ | 26,106 |  |  | $ | — |  |  | $ | 26,106 |  |  | $ | — |
Municipal securities | 228,166 |  |  | — |  |  | 228,166 |  |  | — |
Residential CMO and MBS | 242,693 |  |  | — |  |  | 242,693 |  |  | — |
Commercial CMO and MBS | 235,018 |  |  | — |  |  | 235,018 |  |  | — |
Corporate obligations | 2,023 |  |  | — |  |  | 2,023 |  |  | — |
Other asset-backed securities | 27,520 |  |  | — |  |  | 27,520 |  |  | — |
Total investment securities available for sale | 761,526 |  |  | — |  |  | 761,526 |  |  | — |
Equity security | 210 |  |  | 210 |  |  | — |  |  | — |
Derivative assets - interest rate swaps | 17,843 |  |  | — |  |  | 17,843 |  |  | — |
Liabilities |  |  |  |  |  |  |
Derivative liabilities - interest rate swaps | $ | 17,970 |  |  | $ | — |  |  | 17,970 |  |  | $ | — |
| 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 September 30, 2021
| Basis(1) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Collateral-dependent loans: |  |  |  |  |  |  |  |  |
Commercial business: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 2,058 |  |  | $ | 1,222 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,222 |
|  |  | Fair Value at September 30, 2021
| Basis(1) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Owner-occupied CRE | 613 |  |  | 486 |  |  | — |  |  | — |  |  | 486 |
Total commercial business | 2,671 |  |  | 1,708 |  |  | — |  |  | — |  |  | 1,708 |
Real estate construction and land development: |  |  |  |  |  |  |  |  |
Commercial and multifamily | 991 |  |  | 534 |  |  | — |  |  | — |  |  | 534 |
Total | $ | 3,662 |  |  | $ | 2,242 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,242 |
Prepaid expenses and other assets: |  |  |  |  |  |  |  |  |
Branch held for sale (2) | 805 |  |  | 805 |  |  | — |  |  | — |  |  | 805 |
Total assets measured at fair value on a nonrecurring basis | $ | 4,467 |  |  | $ | 3,047 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,047 |
(1) Basis represents the outstanding principal balance of collateral-dependent loans and the carrying value of the branch held for sale. (2) In July 2021, three branches were reclassified as held for sale in accordance with ASC 360-10. As part of the transfer, one branch was written down to its net realizable value at that time.
|  |  | 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 September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (In thousands)
Collateral-dependent loans: |  |  |  |  |  |  |
Commercial business: |  |  |  |  |  |  |
Commercial and industrial | $ | (54) |  |  | $ | — |  |  | $ | (563) |  |  | $ | (10) |
Owner-occupied CRE | 15 |  |  | — |  |  | (61) |  |  | — |
Total commercial business | (39) |  |  | — |  |  | (624) |  |  | (10) |
Real estate construction and land development: |  |  |  |  |  |  |
Commercial and multifamily | — |  |  | — |  |  | (38) |  |  | — |
Total | (39) |  |  | — |  |  | (662) |  |  | (10) |
Prepaid expenses and other assets: |  |  |  |  |  |  |
Branch held for sale | (38) |  |  | — |  |  | (38) |  |  | — |
Net loss from nonrecurring fair value adjustments | $ | (77) |  |  | $ | — |  |  | $ | (700) |  |  | $ | (10) |
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:
| September 30, 2021
| Fair Value |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range of Inputs; Weighted Average
| (Dollars in thousands)
Collateral-dependent loans | $ | 2,242 |  |  | Market approach |  | Adjustment for differences between the comparable sales |  | 55.0% - (20.0)%; 9.6%
Branch held for sale | $ | 805 |  |  | Market approach |  | Adjustment for differences between the comparable sales |  | 51.8% - (26.0)%; 6.4%
| 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:
| September 30, 2021
| Carrying Value |  | Fair Value |  | Fair Value Measurements Using:
|  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Financial Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,634,739 |  |  | $ | 1,634,739 |  |  | $ | 1,634,739 |  |  | $ | — |  |  | $ | — |
Investment securities available for sale | 761,526 |  |  | 761,526 |  |  | — |  |  | 761,526 |  |  | — |
Investment securities held to maturity | 311,074 |  |  | 307,330 |  |  | — |  |  | 307,330 |  |  | — |
Loans held for sale | 2,636 |  |  | 2,726 |  |  | — |  |  | — |  |  | 2,726 |
Loans receivable, net | 3,905,567 |  |  | 4,014,701 |  |  | — |  |  | — |  |  | 4,014,701 |
Accrued interest receivable | 14,802 |  |  | 14,802 |  |  | 51 |  |  | 3,578 |  |  | 11,173 |
Bank owned life insurance | 109,634 |  |  | 109,634 |  |  | 109,634 |  |  | — |  |  | — |
Derivative assets - interest rate swaps | 17,843 |  |  | 17,843 |  |  | — |  |  | 17,843 |  |  | — |
Equity security | 210 |  |  | 210 |  |  | 210 |  |  | — |  |  | — |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | $ | 5,859,762 |  |  | $ | 5,859,762 |  |  | $ | 5,859,762 |  |  | $ | — |  |  | $ | — |
Certificates of deposit | 355,796 |  |  | 357,266 |  |  | — |  |  | 357,266 |  |  | — |
Securities sold under agreement to repurchase | 44,096 |  |  | 44,096 |  |  | 44,096 |  |  | — |  |  | — |
Junior subordinated debentures | 21,107 |  |  | 18,250 |  |  | — |  |  | — |  |  | 18,250 |
Accrued interest payable | 74 |  |  | 74 |  |  | 31 |  |  | 25 |  |  | 18 |
Derivative liabilities - interest rate swaps | 17,970 |  |  | 17,970 |  |  | — |  |  | 17,970 |  |  | — |
| 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 |
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 |  |  | — |

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- 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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