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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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Dec. 31, 2024
Fair Value Disclosures [Abstract] |
Schedule of Assets and Liabilities Measured and Recorded at Fair Value | Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at December 31, 2024 and December 31, 2023, are summarized below:
| December 31, 2024
(dollars in thousands) | Carrying amount |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. government sponsored entities and U.S. agency securities | $ | 20,141 |  |  | $ | — |  |  | $ | 20,141 |  |  | $ | — |
Mortgage-backed securities - agency | 847,056 |  |  | — |  |  | 847,056 |  |  | — |
Mortgage-backed securities - non-agency | 101,012 |  |  | — |  |  | 101,012 |  |  | — |
State and municipal securities | 69,061 |  |  | — |  |  | 69,061 |  |  | — |
Corporate securities | 79,881 |  |  | — |  |  | 79,881 |  |  | — |
Other securities | 90,423 |  |  | — |  |  | 90,423 |  |  | — |
Equity securities | 4,792 |  |  | 4,792 |  |  | — |  |  | — |
Residential loans held for sale | 8,228 |  |  | — |  |  | 8,228 |  |  | — |
Derivative assets | 3,837 |  |  | — |  |  | 3,837 |  |  | — |
Total | $ | 1,224,431 |  |  | $ | 4,792 |  |  | $ | 1,219,639 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |
Derivative liabilities | $ | 5,655 |  |  | $ | — |  |  | $ | 5,655 |  |  | $ | — |
Total | $ | 5,655 |  |  | $ | — |  |  | $ | 5,655 |  |  | $ | — |
Assets measured at fair value on a non-recurring basis: |  |  |  |  |  |  |
Nonperforming loans | $ | 120,222 |  |  | $ | — |  |  | $ | — |  |  | $ | 120,222 |
Consumer loans held for sale | 336,719 |  |  | — |  |  | — |  |  | 336,719 |
Other real estate owned | 4,941 |  |  | — |  |  | — |  |  | 4,941 |
Credit enhancement asset | 16,804 |  |  | — |  |  | — |  |  | 16,804 |
| December 31, 2023 (Restated)
(dollars in thousands) | Carrying amount |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 1,097 |  |  | $ | 1,097 |  |  | $ | — |  |  | $ | — |
U.S. government sponsored entities and U.S. agency securities | 72,572 |  |  | — |  |  | 72,572 |  |  | — |
Mortgage-backed securities - agency | 574,500 |  |  | — |  |  | 574,500 |  |  | — |
Mortgage-backed securities - non-agency | 83,529 |  |  | — |  |  | 83,529 |  |  | — |
State and municipal securities | 57,460 |  |  | — |  |  | 57,460 |  |  | — |
Corporate securities | 99,172 |  |  | — |  |  | 99,172 |  |  | — |
Other securities | 27,565 |  |  | — |  |  | 27,565 |  |  | — |
Equity securities | 4,501 |  |  | 4,501 |  |  | — |  |  | — |
Residential loans held for sale | 3,811 |  |  | — |  |  | 3,811 |  |  | — |
Derivative assets | 372 |  |  | — |  |  | 372 |  |  | — |
Total | $ | 924,579 |  |  | $ | 5,598 |  |  | $ | 918,981 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |
Derivative liabilities | $ | 8,836 |  |  | $ | — |  |  | $ | 8,836 |  |  | $ | — |
Total | $ | 8,836 |  |  | $ | — |  |  | $ | 8,836 |  |  | $ | — |
Assets measured at fair value on a non-recurring basis: |  |  |  |  |  |  |
Nonperforming loans | $ | 4,633 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,633 |
Other real estate owned | 9,112 |  |  | — |  |  | — |  |  | 9,112 |
Credit enhancement asset | 15,389 |  |  | — |  |  | — |  |  | 15,389 |
Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis | The following table presents losses recognized on assets measured on a nonrecurring basis for the years ended December 31, 2024, 2023 and 2022:
|  |  | Years Ended December 31,
(dollars in thousands) |  |  |  |  | 2024 |  | 2023 |  | 2022
Commercial mortgage servicing rights |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1,263 |
Loan servicing rights held for sale |  |  |  |  | — |  |  | — |  |  | 3,250 |
Nonperforming loans |  |  |  |  | 21,317 |  |  | 19,421 |  |  | 8,892 |
Other real estate owned |  |  |  |  | 4,866 |  |  | — |  |  | 4,276 |
Total losses on assets measured on a nonrecurring basis |  |  |  |  | $ | 26,183 |  |  | $ | 19,421 |  |  | $ | 17,681 |
The Company continues to take steps in 2025 to resolve nonperforming assets and improve its overall credit profile. These steps include foreclosures, short sales, pursuit of guarantors and sales of notes. The Company has continued to monitor credit actions and subsequent losses in order to determining the appropriate time period for recognition. Notable credit actions and subsequent losses are presented in the table below, in thousands.
|  |  |  |  |  |  |  | Losses taken by period |  |  |  |
Asset |  | Type of property |  | Action taken |  | Balance December 31, 2024 |  | 2024 |  | First quarter 2025 |  | Second quarter 2025 |  | Total Losses taken |  | Reduction in nonperforming assets
OREO |  | Assisted living |  | Property sold May 2025 |  | $ | 5,434 |  |  | $ | (1,472) |  |  | $ | — |  |  | $ | — |  |  | $ | (1,472) |  | $ | (1,472) |  | $ | (5,434) |
Loans |  | Multi-Family |  | Collateral sold May 2025 |  | 3,722 |  |  | (337) |  |  | (1,113) |  |  | — |  |  | (1,450) |  |  | (3,722) |
Loans |  | Memory care |  | Note sale June 2025 |  | 7,737 |  |  | — |  |  | — |  |  | (3,675) |  |  | (3,675) |  |  | (7,737) |
Loans |  | Assisted living |  | Charge off May 2025 |  | 7,798 |  |  | (7,798) |  |  | — |  |  | — |  |  | (7,798) |  |  | (7,798) |
Loans |  | Multi-Family |  | Note sale agreement June 2025 Expected close third quarter 2025 |  | 27,354 |  |  | (2,354) |  |  | — |  |  | — |  |  | (2,354) |  |  | (2,354) |
Loans |  | C&I Operating |  | Charge off May 2025 |  | 11,292 |  |  | — |  |  | — |  |  | (5,847) |  |  | (5,847) |  |  | (5,847) |
Total |  |  |  |  |  | $ | 63,337 |  |  | $ | (11,961) |  |  | $ | (1,113) |  |  | $ | (9,522) |  |  | $ | (22,596) |  |  | $ | (32,892) |
Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) | The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at December 31, 2024 and December 31, 2023:
(dollars in thousands) |  | Fair value |  | Valuation technique |  | Unobservable input / assumptions |  | Range (weighted average)(1)
December 31, 2024 |  |  |  |  |  |  |  |
Nonperforming loans |  | $ | 120,222 |  |  | Fair value of collateral |  | Discount for type of property, age of appraisal, and/or current status |  | 0.00% - 34.15% (0.67%)
Other real estate loans |  | 4,941 |  |  | Fair value of collateral |  | Discount for type of property, age of appraisal, and/or current status |  | 0.00% - 43.54% (10.68%)
Consumer loans held for sale(2) |  | 336,719 |  |  | Discounted cash flow |  | Discount rate |  | 8.98%
Credit enhancement asset |  | 16,804 |  |  | Income approach |  | Discount rate |  | 10.61%
December 31, 2023 (restated) |  |  |  |  |  |  |  |
Nonperforming loans |  | $ | 4,633 |  |  | Collateral based measurements |  | Discount to reflect current market conditions and ultimate collectability |  | 24.38% - 100.00% (27.46%)
Other real estate loans |  | 9,112 |  |  | Fair value of collateral |  | Discount for type of property, age of appraisal, and/or current status |  |
Credit enhancement asset |  | 15,389 |  |  | Income approach |  | Discount rate |  | (0.34)% - 10.31% (1.80%)
(1)Unobservable inputs were weighted by the relative fair value of the instruments. (2)There was one pool of loans at December 31, 2024 with write-downs during 2024, so no range or weighted average is reported.
Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale | The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of December 31, 2024 and December 31, 2023:
| December 31, 2024 |  | December 31, 2023
(dollars in thousands) | Aggregate fair value |  | Difference |  | Contractual principal |  | Aggregate fair value |  | Difference |  | Contractual principal
Residential loans held for sale | $ | 8,228 |  |  | $ | 282 |  |  | $ | 7,946 |  |  | $ | 3,811 |  |  | $ | 203 |  |  | $ | 3,608 |
The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2024, 2023 and 2022:
|  |  | Years Ended December 31,
(dollars in thousands) |  |  |  |  | 2024 |  | 2023 |  | 2022
Residential loans held for sale |  |  |  |  | $ | 47 |  |  | $ | 163 |  |  | $ | (425) |
Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments | The carrying values and estimated fair value of certain financial instruments not carried at fair value at December 31, 2024 and December 31, 2023 were as follows:
| December 31, 2024
(dollars in thousands) | Carrying amount |  | Fair value |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 114,055 |  |  | $ | 114,055 |  |  | $ | 114,055 |  |  | $ | — |  |  | $ | — |
Federal funds sold | 711 |  |  | 711 |  |  | 711 |  |  | — |  |  | — |
Loans | 5,167,574 |  |  | 4,979,885 |  |  | — |  |  | — |  |  | 4,979,885 |
Accrued interest receivable | 25,329 |  |  | 25,329 |  |  | — |  |  | 25,329 |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | $ | 6,197,243 |  |  | $ | 6,183,807 |  |  | $ | — |  |  | $ | 6,183,807 |  |  | $ | — |
Short-term borrowings | 87,499 |  |  | 87,499 |  |  | 75,000 |  |  | 12,499 |  |  | — |
FHLB and other borrowings | 258,000 |  |  | 253,520 |  |  | — |  |  | 253,520 |  |  | — |
Subordinated debt | 77,749 |  |  | 69,827 |  |  | — |  |  | 69,827 |  |  | — |
Trust preferred debentures | 51,205 |  |  | 49,056 |  |  | — |  |  | 49,056 |  |  | — |
| December 31, 2023 (Restated)
(dollars in thousands) | Carrying amount |  | Fair value |  | Quoted prices in active markets for identical assets (Level 1) |  | Significant other observable inputs (Level 2) |  | Significant unobservable inputs (Level 3)
Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 134,212 |  |  | $ | 134,212 |  |  | $ | 134,212 |  |  | $ | — |  |  | $ | — |
Federal funds sold | 849 |  |  | 849 |  |  | 849 |  |  | — |  |  | — |
Loans | 6,103,592 |  |  | 6,129,244 |  |  | — |  |  | — |  |  | 6,129,244 |
Accrued interest receivable | 34,133 |  |  | 34,133 |  |  | — |  |  | 34,133 |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |
Deposits | $ | 6,309,529 |  |  | $ | 6,294,979 |  |  | $ | — |  |  | $ | 6,294,979 |  |  | $ | — |
Short-term borrowings | 34,865 |  |  | 34,865 |  |  | 25,000 |  |  | 9,865 |  |  | — |
FHLB and other borrowings | 476,000 |  |  | 475,240 |  |  | — |  |  | 475,240 |  |  | — |
Subordinated debt | 93,546 |  |  | 90,253 |  |  | — |  |  | 90,253 |  |  | — |
Trust preferred debentures | 50,616 |  |  | 51,626 |  |  | — |  |  | 51,626 |  |  | — |

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