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v3.22.2.2

Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 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:
| September 30, 2022
| Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Assets |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. government and agency securities | $ | 63,749 |  |  | $ | 19,770 |  |  | $ | 43,979 |  |  | $ | — |
Municipal securities | 185,713 |  |  | — |  |  | 185,713 |  |  | — |
Residential CMO and MBS | 438,370 |  |  | — |  |  | 438,370 |  |  | — |
| September 30, 2022
| Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Commercial CMO and MBS | 639,441 |  |  | — |  |  | 639,441 |  |  | — |
Corporate obligations | 5,834 |  |  | — |  |  | 5,834 |  |  | — |
Other asset-backed securities | 23,035 |  |  | — |  |  | 23,035 |  |  | — |
Total investment securities available for sale | 1,356,142 |  |  | 19,770 |  |  | 1,336,372 |  |  | — |
Equity security | 192 |  |  | 192 |  |  | — |  |  | — |
Derivative assets - interest rate swaps | 32,523 |  |  | — |  |  | 32,523 |  |  | — |
Liabilities |  |  |  |  |  |  |
Derivative liabilities - interest rate swaps | $ | 32,523 |  |  | $ | — |  |  | $ | 32,523 |  |  | $ | — |
| 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 September 30, 2022
| Basis(1) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Collateral-dependent loans: |  |  |  |  |  |  |  |  |
Commercial business: |  |  |  |  |  |  |  |  |
Owner-occupied CRE | 613 |  |  | 186 |  |  | — |  |  | — |  |  | 186 |
Total assets measured at fair value on a nonrecurring basis | $ | 613 |  |  | $ | 186 |  |  | $ | — |  |  | $ | — |  |  | $ | 186 |
(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:
|  |  | Fair Value at December 31, 2021
| Basis(1) |  | Total |  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
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 and was sold during the three months ended March 31, 2022. 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,
| 2022 |  | 2021 |  | 2022 |  | 2021
| (In thousands)
Collateral-dependent loans: |  |  |  |  |  |  |
Commercial business: |  |  |  |  |  |  |
Commercial and industrial | $ | — |  |  | $ | (54) |  |  | $ | 24 |  |  | $ | (563) |
Owner-occupied CRE | — |  |  | 15 |  |  | (4) |  |  | (61) |
Total commercial business | — |  |  | (39) |  |  | 20 |  |  | (624) |
Real estate construction and land development: |  |  |  |  |  |  |
Commercial and multifamily | — |  |  | — |  |  | — |  |  | (38) |
Total | — |  |  | (39) |  |  | 20 |  |  | (662) |
Prepaid expenses and other assets: |  |  |  |  |  |  |
Branch held for sale | — |  |  | (38) |  |  | — |  |  | (38) |
Net (loss) gain from nonrecurring fair value adjustments | $ | — |  |  | $ | (77) |  |  | $ | 20 |  |  | $ | (700) |
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, 2022
| Fair Value |  | Valuation Technique(s) |  | Unobservable Input(s) |  | Range of Inputs; Weighted Average
| (Dollars in thousands)
Collateral-dependent loans | $ | 186 |  |  | Market approach |  | Adjustment for differences between the comparable sales |  | N/A(1)
(1)Quantitative disclosures are not provided for collateral-dependent loans because there were no adjustments made to the appraisal or stated values during the current period.
| 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 |  | N/A
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, 2022
| Carrying Value |  | Fair Value |  | Fair Value Measurements Using:
|  | Level 1 |  | Level 2 |  | Level 3
| (In thousands)
Financial Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 407,324 |  |  | $ | 407,324 |  |  | $ | 407,324 |  |  | $ | — |  |  | $ | — |
Investment securities available for sale | 1,356,142 |  |  | 1,356,142 |  |  | 19,770 |  |  | 1,336,372 |  |  | — |
Investment securities held to maturity | 773,319 |  |  | 677,335 |  |  | — |  |  | 677,335 |  |  | — |
Loans held for sale | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loans receivable, net | 3,959,206 |  |  | 3,848,546 |  |  | — |  |  | — |  |  | 3,848,546 |
Accrued interest receivable | 17,812 |  |  | 17,812 |  |  | 351 |  |  | 6,962 |  |  | 10,499 |
Derivative assets - interest rate swaps | 32,523 |  |  | 32,523 |  |  | — |  |  | 32,523 |  |  | — |
Equity security | 192 |  |  | 192 |  |  | 192 |  |  | — |  |  | — |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Non-maturity deposits | $ | 5,950,312 |  |  | $ | 5,950,312 |  |  | $ | 5,950,312 |  |  | $ | — |  |  | $ | — |
Certificates of deposit | 287,423 |  |  | 287,837 |  |  | — |  |  | 287,837 |  |  | — |
Securities sold under agreement to repurchase | 40,449 |  |  | 40,449 |  |  | 40,449 |  |  | — |  |  | — |
Junior subordinated debentures | 21,399 |  |  | 20,250 |  |  | — |  |  | — |  |  | 20,250 |
Accrued interest payable | 101 |  |  | 101 |  |  | 36 |  |  | 13 |  |  | 52 |
Derivative liabilities - interest rate swaps | 32,523 |  |  | 32,523 |  |  | — |  |  | 32,523 |  |  | — |
| 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 | $ | 6,051,451 |  |  | $ | 6,051,451 |  |  | $ | 6,051,451 |  |  | $ | — |  |  | $ | — |
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 |  |  | — |

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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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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