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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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:

			March 31, 2022
			Total						Level 1						Level 2						Level 3
			(In thousands)
Assets
Investment securities available for sale:
U.S. government and agency securities			$	39,555					$	—					$	39,555					$	—
Municipal securities			210,239						—						210,239						—
Residential CMO and MBS			358,409						—						358,409						—
Commercial CMO and MBS			404,505						—						404,505						—
Corporate obligations			2,009						—						2,009						—
Other asset-backed securities			25,207						—						25,207						—
Total investment securities available for sale			1,039,924						—						1,039,924						—
Equity security			224						224						—						—
Derivative assets - interest rate swaps			12,975						—						12,975						—
Liabilities
Derivative liabilities - interest rate swaps			$	12,989					$	—					12,989						$	—

			December 31, 2021
			Total						Level 1						Level 2						Level 3
			(In thousands)
Assets
Investment securities available for sale:
U.S. government and agency securities			$	21,373					$	—					$	21,373					$	—
Municipal securities			221,212						—						221,212						—
Residential CMO and MBS			306,884						—						306,884						—
Commercial CMO and MBS			315,861						—						315,861						—
Corporate obligations			2,014						—						2,014						—
Other asset-backed securities			26,991						—						26,991						—
Total investment securities available for sale			894,335						—						894,335						—
Equity security			240						240						—						—
Derivative assets - interest rate swaps			15,219						—						15,219						—
Liabilities
Derivative liabilities - interest rate swaps			$	15,286					$	—					$	15,286					$	—

Fair value measurements of assets on a nonrecurring basis

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

									Fair Value at March 31, 2022
			Basis(1)						Total						Level 1						Level 2						Level 3
			(In thousands)
Collateral-dependent loans:
Commercial business:
Commercial and industrial			$	336					$	215					$	—					$	—					$	215
Real estate construction and land development:
Commercial and multifamily			991						534						—						—						534
Total assets measured at fair value on a nonrecurring basis			$	1,327					$	749					$	—					$	—					$	749

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

									Fair Value at December 31, 2021
			Basis(1)						Total						Level 1						Level 2						Level 3
			(In thousands)
Collateral-dependent loans:
Commercial business:
Commercial and industrial			$	1,911					$	1,049					$	—					$	—					$	1,049
Owner-occupied CRE			613						189						—						—						189
Total commercial business			2,524						1,238						—						—						1,238
Real estate construction and land development:
Commercial and multifamily			991						$	534					—						—						534
Total			3,515						1,772						—						—						1,772
Prepaid expenses and other assets:
Branch held for sale (2)			698						698						—						—						698
Total assets measured at fair value on a nonrecurring basis			$	4,213					$	2,470					$	—					$	—					$	2,470

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

(2) In December 2021, one branch was written down to its net realizable value concurrent with the signing of an agreement for sale at a future date.

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 March 31,
			2022						2021
			(In thousands)
Collateral-dependent loans:
Commercial business:
Commercial and industrial			$	(12)					$	(34)
Real estate construction and land development:
Commercial and multifamily			—						(14)
Total			(12)						(48)
Prepaid expenses and other assets:
Branch held for sale			—						20
Net loss from nonrecurring fair value adjustments			$	(12)					$	(28)

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:

March 31, 2022

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range of Inputs; Weighted Average

(Dollars in thousands)

Collateral-dependent loans

$

749

Market approach

Adjustment for differences between the comparable sales

35.0% - (11.0)%; 13.8%

December 31, 2021

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Range of Inputs; Weighted Average

(Dollars in thousands)

Collateral-dependent loans

$

1,772

Market approach

Adjustment for differences between the comparable sales

35.0% - (11.0%); 13.8%

Branch held for sale

$

698

Market approach

Sale agreement

Not applicable

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:

			March 31, 2022
			Carrying Value						Fair Value						Fair Value Measurements Using:
															Level 1						Level 2						Level 3
			(In thousands)
Financial Assets:
Cash and cash equivalents			$	1,576,722					$	1,576,722					$	1,576,722					$	—					$	—
Investment securities available for sale			1,039,924						1,039,924						—						1,039,924						—
Investment securities held to maturity			422,213						384,822						—						384,822						—
Loans held for sale			1,142						1,181						—						1,181						—
Loans receivable, net			3,780,845						3,808,897						—						—						3,808,897
Accrued interest receivable			14,582						14,582						128						4,593						9,861

			March 31, 2022
			Carrying Value						Fair Value						Fair Value Measurements Using:
															Level 1						Level 2						Level 3
			(In thousands)
Derivative assets - interest rate swaps			12,975						12,975						—						12,975						—
Equity security			224						224						224						—						—
Financial Liabilities:
Non-maturity deposits			$	6,163,084					$	6,163,084					$	6,163,084					$	—					$	—
Certificates of deposit			328,416						329,358						—						—						329,358
Securities sold under agreement to repurchase			49,069						49,069						49,069						—						—
Junior subordinated debentures			21,253						18,750						—						—						18,750
Accrued interest payable			75						75						33						15						27
Derivative liabilities - interest rate swaps			12,989						12,989						—						12,989						—

			December 31, 2021
			Carrying Value						Fair Value						Fair Value Measurements Using:
															Level 1						Level 2						Level 3
			(In thousands)
Financial Assets:
Cash and cash equivalents			$	1,723,292					$	1,723,292					$	1,723,292					$	—					$	—
Investment securities available for sale			894,335						894,335						—						894,335						—
Investment securities held to maturity			383,393						376,331						—						376,331						—
Loans held for sale			1,476						1,527						—						1,527						—
Loans receivable, net			3,773,301						3,849,602						—						—						3,849,602
Accrued interest receivable			14,657						14,657						14						4,582						10,061
Derivative assets - interest rate swaps			15,219						15,219						—						15,219						—
Equity security			240						240						240						—						—
Financial Liabilities:
Non-maturity deposits			$	6,038,498					$	6,038,498					$	6,038,498					$	—					$	—
Certificates of deposit			342,839						344,025						—						344,025						—
Securities sold under agreement to repurchase			50,839						50,839						50,839						—						—
Junior subordinated debentures			21,180						18,750						—						—						18,750
Accrued interest payable			73						73						33						19						21
Derivative liabilities - interest rate swaps			15,286						15,286						—						15,286						—

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).

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-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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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.

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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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