Fair Value (Tables)
|
9 Months Ended |
Sep. 30, 2024 |
Fair Value Disclosures [Abstract] |
|
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis |
The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Recurring Basis
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September 30, 2024 |
|
Level 1 Inputs |
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|
Level 2 Inputs |
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|
Level 3 Inputs |
|
|
Total Fair Value |
|
|
|
(In Thousands) |
|
Assets: |
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|
|
|
|
|
|
|
|
|
|
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Available for sale securities: |
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|
|
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|
|
|
|
|
|
Obligations of U.S. federal government corporations and agencies |
|
$ |
— |
|
|
$ |
104,507 |
|
|
$ |
— |
|
|
$ |
104,507 |
|
Mortgage-backed securities |
|
|
— |
|
|
|
175,291 |
|
|
|
— |
|
|
|
175,291 |
|
Collateralized mortgage obligations |
|
|
— |
|
|
|
350,109 |
|
|
|
— |
|
|
|
350,109 |
|
Asset-backed securities |
|
|
— |
|
|
|
243,817 |
|
|
|
— |
|
|
|
243,817 |
|
Corporate bonds |
|
|
— |
|
|
|
64,806 |
|
|
|
— |
|
|
|
64,806 |
|
Obligations of state and political subdivisions |
|
|
— |
|
|
|
207,351 |
|
|
|
— |
|
|
|
207,351 |
|
US Treasuries |
|
|
50,377 |
|
|
|
— |
|
|
|
— |
|
|
|
50,377 |
|
Equity securities |
|
|
5,970 |
|
|
|
— |
|
|
|
— |
|
|
|
5,970 |
|
Loans held for sale, at fair value |
|
|
— |
|
|
|
17,623 |
|
|
|
103,988 |
|
|
|
121,611 |
|
Interest rate swaps |
|
|
— |
|
|
|
3,000 |
|
|
|
— |
|
|
|
3,000 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
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Interest rate swaps |
|
|
— |
|
|
|
3,058 |
|
|
|
— |
|
|
|
3,058 |
|
Cash flow/fair value hedge derivatives |
|
|
— |
|
|
|
31,068 |
|
|
|
— |
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|
|
31,068 |
|
Mortgage banking derivatives - liability |
|
|
— |
|
|
|
443 |
|
|
|
— |
|
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|
443 |
|
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|
|
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December 31, 2023 |
|
Level 1 Inputs |
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Level 2 Inputs |
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|
Level 3 Inputs |
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Total Fair Value |
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|
(In Thousands) |
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Assets: |
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|
|
|
|
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|
|
|
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Available for sale securities: |
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|
|
|
|
|
|
|
|
|
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Obligations of U.S. government corporations and agencies |
|
$ |
— |
|
|
$ |
101,598 |
|
|
$ |
— |
|
|
$ |
101,598 |
|
Mortgage-backed securities |
|
|
— |
|
|
|
156,508 |
|
|
|
— |
|
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|
156,508 |
|
Collateralized mortgage obligations |
|
|
— |
|
|
|
235,767 |
|
|
|
— |
|
|
|
235,767 |
|
Asset-backed securities |
|
|
— |
|
|
|
136,980 |
|
|
|
— |
|
|
|
136,980 |
|
Corporate bonds |
|
|
— |
|
|
|
62,420 |
|
|
|
— |
|
|
|
62,420 |
|
Obligations of states and political subdivisions |
|
|
— |
|
|
|
204,258 |
|
|
|
— |
|
|
|
204,258 |
|
US Treasuries |
|
|
49,177 |
|
|
|
— |
|
|
|
— |
|
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|
49,177 |
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Equity securities |
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|
5,773 |
|
|
|
— |
|
|
|
— |
|
|
|
5,773 |
|
Loans held for sale, at fair value |
|
|
— |
|
|
|
14,397 |
|
|
|
131,244 |
|
|
|
145,641 |
|
Interest rate swaps |
|
|
— |
|
|
|
2,867 |
|
|
|
— |
|
|
|
2,867 |
|
Cash flow / Fair value hedge derivatives |
|
|
— |
|
|
|
299 |
|
|
|
— |
|
|
|
299 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
— |
|
|
|
2,867 |
|
|
|
— |
|
|
|
2,867 |
|
Cash flow / Fair value hedge derivatives |
|
|
— |
|
|
|
35,392 |
|
|
|
— |
|
|
|
35,392 |
|
Mortgage banking derivatives - liability |
|
|
— |
|
|
|
4,750 |
|
|
|
— |
|
|
|
4,750 |
|
|
Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3) |
The following table presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and 2023. There were no securities that were measured at Level 3 for the three and nine months ended September 30, 2024 and 2023.
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Construction loans held for sale |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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|
2024 |
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|
2023 |
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|
2024 |
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|
2023 |
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Balance of recurring Level 3 assets at beginning of period |
$ |
118,390 |
|
|
$ |
111,462 |
|
|
$ |
131,244 |
|
|
$ |
91,662 |
|
Total gains (losses) for the period |
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|
|
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Included in change in fair value of loans held for sale |
|
7,942 |
|
|
|
(5,856 |
) |
|
|
5,635 |
|
|
|
(874 |
) |
Originations |
|
25,278 |
|
|
|
73,403 |
|
|
|
71,023 |
|
|
|
224,405 |
|
Sales |
|
(47,622 |
) |
|
|
(57,989 |
) |
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|
(103,914 |
) |
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|
(194,173 |
) |
Balance of recurring Level 3 assets at end of period |
$ |
103,988 |
|
|
$ |
121,020 |
|
|
$ |
103,988 |
|
|
$ |
121,020 |
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|
Schedule of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring or Nonrecurring Basis |
For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:
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|
September 30, 2024 |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Inputs |
|
Range of Inputs |
|
|
(Dollars in Thousands) |
Construction loans held for sale |
|
$ |
103,988 |
|
|
Adjusted secondary market pricing |
|
Adjustments |
|
0.00% - 0.128% |
|
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|
|
|
|
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|
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|
December 31, 2023 |
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Inputs |
|
Range of Inputs |
|
|
(Dollars in Thousands) |
Construction loans held for sale |
|
$ |
131,244 |
|
|
Adjusted secondary market pricing |
|
Adjustments |
|
0.00% - 0.0984% |
|
Schedule of Financial Assets Measured at Fair Value on a Non-recurring Basis |
The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Assets and Liabilities Measured on a Non-Recurring Basis
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|
September 30, 2024 |
|
Level 1 Inputs |
|
|
Level 2 Inputs |
|
|
Level 3 Inputs |
|
|
Total Fair Value |
|
|
|
(In Thousands) |
|
Individually analyzed loans |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,796 |
|
|
$ |
7,796 |
|
Commercial |
|
|
— |
|
|
|
— |
|
|
|
24,694 |
|
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|
24,694 |
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|
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Mortgage servicing rights |
|
|
— |
|
|
|
2,346 |
|
|
|
— |
|
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|
2,346 |
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|
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|
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|
December 31, 2023 |
|
Level 1 Inputs |
|
|
Level 2 Inputs |
|
|
Level 3 Inputs |
|
|
Total Fair Value |
|
|
|
(In Thousands) |
|
Individually analyzed loans |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,425 |
|
|
$ |
3,425 |
|
Commercial |
|
|
— |
|
|
|
— |
|
|
|
6,164 |
|
|
|
6,164 |
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|
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|
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|
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|
|
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Mortgage servicing rights |
|
|
— |
|
|
|
2,744 |
|
|
|
— |
|
|
|
2,744 |
|
For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2024, the significant unobservable inputs used in the fair value measurements were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Inputs |
|
Range of Inputs |
|
Weighted Average |
|
|
|
|
|
|
(Dollars in Thousands) |
|
Individually analyzed Loans- Applies to loan classes with an appraisal valuation |
|
$ |
32,490 |
|
|
Appraisals which utilize sales comparison, net income and cost approach |
|
Discounts for collection issues and changes in market conditions |
|
10-50% |
|
|
39.72 |
% |
For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value |
|
|
Valuation Technique |
|
Unobservable Inputs |
|
Range of Inputs |
|
Weighted Average |
|
|
|
|
|
|
(Dollars in Thousands) |
|
Individually analyzed Loans- Applies to loan classes with an appraisal valuation |
|
$ |
9,589 |
|
|
Appraisals which utilize sales comparison, net income and cost approach |
|
Discounts for collection issues and changes in market conditions |
|
10-50% |
|
|
27.60 |
% |
|
Carrying Values and Estimated Fair Values of Financial Instruments |
The carrying value and estimated fair values of financial instruments at September 30, 2024 and December 31, 2023, were as follows:
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|
Fair Value Measurements at September 30, 2024 |
|
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|
(In Thousands) |
|
|
|
Carrying Value |
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
125,282 |
|
|
$ |
125,282 |
|
|
$ |
125,282 |
|
|
$ |
— |
|
|
$ |
— |
|
Federal Home Loan Bank Stock |
|
|
24,315 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
Loans receivable, net |
|
|
6,512,586 |
|
|
|
6,173,897 |
|
|
|
— |
|
|
|
— |
|
|
|
6,173,897 |
|
Accrued interest receivable |
|
|
34,959 |
|
|
|
34,959 |
|
|
|
34,959 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
7,142,636 |
|
|
$ |
7,136,765 |
|
|
$ |
5,510,745 |
|
|
$ |
1,626,020 |
|
|
$ |
— |
|
Advances from Federal Home Loan Bank |
|
|
345,000 |
|
|
|
344,656 |
|
|
|
— |
|
|
|
344,656 |
|
|
|
— |
|
Subordinated debentures |
|
|
85,324 |
|
|
|
83,479 |
|
|
|
— |
|
|
|
— |
|
|
|
83,479 |
|
Advance payments by borrowers |
|
|
13,358 |
|
|
|
13,358 |
|
|
|
13,358 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2023 |
|
|
|
|
|
|
(In Thousands) |
|
|
|
Carrying Value |
|
|
Total |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
Financial Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
114,756 |
|
|
$ |
114,756 |
|
|
$ |
114,756 |
|
|
$ |
— |
|
|
$ |
— |
|
Federal Home Loan Bank Stock |
|
|
21,760 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
Loans receivable, net |
|
|
6,662,875 |
|
|
|
6,100,394 |
|
|
|
— |
|
|
|
— |
|
|
|
6,100,394 |
|
Accrued interest receivable |
|
|
33,446 |
|
|
|
33,446 |
|
|
|
33,446 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
7,143,046 |
|
|
$ |
7,099,593 |
|
|
$ |
5,447,423 |
|
|
$ |
1,652,170 |
|
|
$ |
— |
|
Advances from Federal Home Loan Bank |
|
|
280,000 |
|
|
|
279,213 |
|
|
|
— |
|
|
|
279,213 |
|
|
|
— |
|
Subordinated debentures |
|
|
85,229 |
|
|
|
84,231 |
|
|
|
— |
|
|
|
— |
|
|
|
84,231 |
|
|