XML 44 R34.htm IDEA: XBRL DOCUMENT
v3.23.1

Fair Value Measurements (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Assets and Liabilities Measured at Fair Value on Recurring Basis | As of March 31, 2023 and December 31, 2022, assets and liabilities measured at fair value on a recurring basis are as follows:
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  |  |
|  |  |  |  | Significant |  |  |  |  |  |  |
|  |  |  |  | Observable |  |  |  |  |  |  |
|  | Quoted Prices in |  |  | Inputs with No |  |  |  |  |  |  |
|  | Active Markets |  |  | Active Market |  |  | Significant |  |  |  |
|  | for Identical |  |  | with Identical |  |  | Unobservable |  |  |  |
|  | Assets |  |  | Characteristics |  |  | Inputs |  |  | Total Fair Value |
|  | (in thousands) |
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 54,926 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,926 |
U.S. government agency and sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities - residential |  |  | — |  |  |  | 464,105 |  |  |  | — |  |  |  | 464,105 |
Mortgage-backed securities - commercial |  |  | — |  |  |  | 50,866 |  |  |  | — |  |  |  | 50,866 |
Collateralized mortgage obligations |  |  | — |  |  |  | 100,546 |  |  |  | — |  |  |  | 100,546 |
Debt securities |  |  | — |  |  |  | 140,368 |  |  |  | — |  |  |  | 140,368 |
Total U.S. government agency and sponsored agency obligations |  |  | — |  |  |  | 755,885 |  |  |  | — |  |  |  | 755,885 |
Municipal bonds-tax exempt |  |  | — |  |  |  | 67,890 |  |  |  | — |  |  |  | 67,890 |
Total securities available for sale |  | $ | 54,926 |  |  | $ | 823,775 |  |  | $ | — |  |  | $ | 878,701 |
Derivative financial instruments |  | $ | — |  |  | $ | 5,621 |  |  | $ | — |  |  | $ | 5,621 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  | $ | — |  |  | $ | 5,617 |  |  | $ | — |  |  | $ | 5,617 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 48,026 |  |  | $ | — |  |  | $ | — |  |  | $ | 48,026 |
U.S. government agency and sponsored agency obligations: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities - residential |  |  | — |  |  |  | 465,152 |  |  |  | — |  |  |  | 465,152 |
Mortgage-backed securities - commercial |  |  | — |  |  |  | 51,292 |  |  |  | — |  |  |  | 51,292 |
Collateralized mortgage obligations |  |  | — |  |  |  | 85,485 |  |  |  | — |  |  |  | 85,485 |
Debt securities |  |  | — |  |  |  | 138,499 |  |  |  | — |  |  |  | 138,499 |
Total U.S. government agency and sponsored agency obligations |  |  | — |  |  |  | 740,428 |  |  |  | — |  |  |  | 740,428 |
Municipal bonds-tax exempt |  |  | — |  |  |  | 65,384 |  |  |  | — |  |  |  | 65,384 |
Total securities available for sale |  | $ | 48,026 |  |  | $ | 805,812 |  |  | $ | — |  |  | $ | 853,838 |
Derivative financial instruments |  | $ | — |  |  | $ | 7,507 |  |  | $ | — |  |  | $ | 7,507 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial instruments |  | $ | — |  |  | $ | 7,375 |  |  | $ | — |  |  | $ | 7,375 |
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | As of March 31, 2023 and December 31, 2022, assets and liabilities measured at fair value on a non-recurring basis are as follows:
|  |  |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  |  |  |  |  |  |  | Significant |  |  |  |
|  |  |  |  |  |  |  | Observable |  |  |  |
|  |  |  |  | Quoted Prices in |  |  | Inputs With No |  |  |  |
|  |  |  |  | Active Markets |  |  | Active Market |  |  | Significant |
|  |  |  |  | for Identical |  |  | With Identical |  |  | Unobservable |
|  | Total |  |  | Assets |  |  | Characteristics |  |  | Inputs |
|  | (in thousands) |
March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Collateral dependent loans (1) |  | $ | 10,191 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,191 |
Other real estate owned |  |  | 117 |  |  |  | — |  |  |  | — |  |  |  | 117 |
Repossessed personal property |  |  | 629 |  |  |  | — |  |  |  | — |  |  |  | 629 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Collateral dependent loans (2) |  | $ | 2,694 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,694 |
Other real estate owned |  |  | 117 |  |  |  | — |  |  |  | — |  |  |  | 117 |
Repossessed personal property |  |  | 467 |  |  |  | — |  |  |  | — |  |  |  | 467 |
Servicing assets |  |  | 7,176 |  |  |  | — |  |  |  | — |  |  |  | 7,176 |
(1) Consisted of real estate loans of $2.6 million and commercial and industrial loans of $7.6 million, which were secured by real estate and business assets. (2) Consisted of real estate loans of $2.7 million.
Quantitative Information about Level 3 Fair Value Assumptions for Assets Measured at Fair Value on Non-Recurring Basis | The following table represents quantitative information about Level 3 fair value assumptions for assets measured at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022:
|  | Fair Value |  |  | Valuation Techniques |  | Unobservable Input(s) |  | Range (Weighted Average) |
|  | (in thousands) |
March 31, 2023 |  |  |  |  |  |  |  |  |  |
Collateral dependent loans: |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 1,883 |  |  | Market approach |  | Adjustments to market data |  | 5% to 25% / 16% | (1)
Other |  |  | 259 |  |  | Market approach |  | Adjustments to market data |  | (35)% to (10)% / (24)% | (1)
Residential |  |  | 487 |  |  | Market approach |  | Adjustments to market data |  | (13)% to 5% / (2)% | (1)
Total real estate loans |  |  | 2,629 |  |  |  |  |  |  |  |
Commercial and industrial loans |  |  | 7,562 |  |  | Market approach |  | Adjustments to market data |  | 10% to 15% / 11% | (1)
Total |  | $ | 10,191 |  |  |  |  |  |  |  |
Other real estate owned |  | $ | 117 |  |  | Market approach |  | Adjustments to market data |  | (10)% to 5% / (2)% | (1)
Repossessed personal property |  |  | 629 |  |  | Market approach |  | Adjustments to market data |  |  | (2)
December 31, 2022 |  |  |  |  |  |  |  |  |  |
Collateral dependent loans: |  |  |  |  |  |  |  |  |  |
Real estate loans: |  |  |  |  |  |  |  |  |  |
Commercial property |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 1,930 |  |  | Market approach |  | Adjustments to market data |  | 5% to 25% / 16% | (1)
Other |  |  | 256 |  |  | Market approach |  | Adjustments to market data |  | (42)% to 3% / (24)% | (1)
Residential |  |  | 508 |  |  | Market approach |  | Adjustments to market data |  | (15)% to 3% / (1)% | (1)
Total real estate loans |  |  | 2,694 |  |  |  |  |  |  |  |
Total |  | $ | 2,694 |  |  |  |  |  |  |  |
Other real estate owned |  | $ | 117 |  |  | Market approach |  | Adjustments to market data |  | (20)% to 20% / (2)% | (1)
Repossessed personal property |  |  | 467 |  |  | Market approach |  | Adjustments to market data |  |  | (2)
Servicing assets |  |  | 7,176 |  |  | Market approach |  | Prepayment rate Discount rate |  | 11% to 17% / 16% 22% to 25% / 22% | (3)
(1) Appraisal reports utilize a combination of valuation techniques including a market approach, where prices and other relevant information generated by market transactions involving similar or comparable properties are used to determine the appraised value. Appraisals may include an ‘as is’ and ‘upon completion’ valuation scenarios. Adjustments are routinely made in the appraisal process by third-party appraisers to adjust for differences between the comparable sales and income data. Adjustments also result from the consideration of relevant economic and demographic factors with the potential to affect property values. Also, prospective values are based on the market conditions which exist at the date of inspection combined with informed forecasts based on current trends in supply and demand for the property types under appraisal. Positive adjustments disclosed in this table represent increases to the sales comparison and negative adjustments represent decreases. (2) The equipment is usually too small in value to use a professional appraisal service. The values are determined internally using a combination of auction values, vendor recommendations and sales comparisons depending on the equipment type. Some highly commoditized equipment, such as commercial trucks have services that provide industry values. (3) Fair value is based on a valuation model using the present value of estimated future cash flows, prepayment speeds, default rates, and discount rates. Servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into income over the period of the estimated future net servicing income of the underlying loans.
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments were as follows:
|  | March 31, 2023 |
|  | Carrying |  |  | Fair Value |
|  | Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  | (in thousands) |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 386,201 |  |  | $ | 386,201 |  |  | $ | — |  |  | $ | — |
Securities available for sale |  |  | 878,701 |  |  |  | 54,926 |  |  |  | 823,775 |  |  |  | — |
Loans held for sale |  |  | 3,652 |  |  |  | — |  |  |  | 3,653 |  |  |  | — |
Loans receivable, net of allowance for credit losses |  |  | 5,908,209 |  |  |  | — |  |  |  | — |  |  |  | 5,753,059 |
Accrued interest receivable |  |  | 19,004 |  |  |  | 19,004 |  |  |  | — |  |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 2,334,083 |  |  |  | — |  |  |  | 2,334,083 |  |  |  | — |
Interest-bearing deposits |  |  | 3,866,955 |  |  |  | — |  |  |  | — |  |  |  | 3,870,056 |
Borrowings and subordinated debentures |  |  | 479,558 |  |  |  | — |  |  |  | 346,689 |  |  |  | 131,791 |
Accrued interest payable |  |  | 20,512 |  |  |  | 20,512 |  |  |  | — |  |  |  | — |
|  | December 31, 2022 |
|  | Carrying |  |  | Fair Value |
|  | Amount |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
|  | (in thousands) |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 352,421 |  |  | $ | 352,421 |  |  | $ | — |  |  | $ | — |
Securities available for sale |  |  | 853,838 |  |  |  | 48,026 |  |  |  | 805,812 |  |  |  | — |
Loans held for sale |  |  | 8,043 |  |  |  | — |  |  |  | 8,423 |  |  |  | — |
Loans receivable, net of allowance for credit losses |  |  | 5,895,610 |  |  |  | — |  |  |  | — |  |  |  | 5,808,190 |
Accrued interest receivable |  |  | 18,537 |  |  |  | 18,537 |  |  |  | — |  |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 2,539,602 |  |  |  | — |  |  |  | 2,539,602 |  |  |  | — |
Interest-bearing deposits |  |  | 3,628,470 |  |  |  | — |  |  |  | — |  |  |  | 3,623,827 |
Borrowings and subordinated debentures |  |  | 479,409 |  |  |  | — |  |  |  | 345,867 |  |  |  | 126,828 |
Accrued interest payable |  |  | 7,792 |  |  |  | 7,792 |  |  |  | — |  |  |  | — |

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 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
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisValuationTechniquesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 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
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, 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://www.xbrl.org/2003/role/disclosureRef -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://www.xbrl.org/2003/role/disclosureRef -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
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration