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Fair Value Measurements (Tables)

9 Months Ended

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						—

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
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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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-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

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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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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 2
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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.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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