Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-15781 | |
Entity Registrant Name | BERKSHIRE HILLS BANCORP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3510455 | |
Entity Address, Address Line One | 60 State Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02109 | |
City Area Code | 800 | |
Local Phone Number | 773-5601 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BHLB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 47,323,374 | |
Entity Central Index Key | 0001108134 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 151,814 | $ 109,350 |
Short-term investments | 1,455,437 | 1,518,457 |
Total cash and cash equivalents | 1,607,251 | 1,627,807 |
Trading security, at fair value | 7,798 | 8,354 |
Marketable equity securities, at fair value | 14,719 | 15,453 |
Securities available for sale, at fair value | 2,032,575 | 1,877,585 |
Securities held to maturity (fair values of $580,538 and $647,236) | 612,174 | 636,503 |
Federal Home Loan Bank stock and other restricted securities | 10,829 | 10,800 |
Total securities | 2,678,095 | 2,548,695 |
Less: Allowance for credit losses on held to maturity securities | (99) | (105) |
Net securities | 2,677,996 | 2,548,590 |
Loans held for sale | 300 | 6,110 |
Total loans | 7,267,323 | 6,825,847 |
Less: Allowance for credit losses on loans | (99,475) | (106,094) |
Net loans | 7,167,848 | 6,719,753 |
Premises and equipment, net | 92,971 | 94,383 |
Other intangible assets | 28,332 | 29,619 |
Cash surrender value of bank-owned life insurance policies | 236,593 | 235,690 |
Other assets | 281,729 | 288,384 |
Total assets | 12,097,008 | 11,554,913 |
Liabilities | ||
Demand deposits | 3,020,568 | 3,008,461 |
NOW and other deposits | 2,546,799 | 976,401 |
Money market deposits | 2,469,042 | 3,293,526 |
Savings deposits | 1,133,877 | 1,111,625 |
Time deposits | 1,528,922 | 1,678,940 |
Total deposits | 10,699,208 | 10,068,953 |
Long-term Federal Home Loan Bank advances and other | 14,563 | 13,331 |
Subordinated borrowings | 97,569 | 97,513 |
Total borrowings | 112,132 | 110,844 |
Other liabilities | 191,807 | 192,681 |
Total liabilities | 11,003,147 | 10,372,478 |
Shareholders’ equity | ||
Common stock ($0.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 47,791,829 shares outstanding in 2022; 51,903,190 shares issued and 48,667,110 shares outstanding in 2021) | 528 | 528 |
Additional paid-in capital - common stock | 1,423,679 | 1,423,445 |
Unearned compensation | (10,284) | (9,056) |
Retained (deficit) | (125,343) | (139,383) |
Accumulated other comprehensive (loss) | (78,237) | (3,243) |
Treasury stock, at cost (4,111,361 shares in 2022 and 3,236,080 shares in 2021) | (116,482) | (89,856) |
Total shareholders’ equity | 1,093,861 | 1,182,435 |
Total liabilities and shareholders’ equity | 12,097,008 | 11,554,913 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Assets | ||
Assets held for sale | $ 3,988 | $ 4,577 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity fair value | $ 580,538 | $ 647,236 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 51,903,190 | 51,903,190 |
Common stock, shares outstanding (in shares) | 47,791,829 | 48,667,110 |
Treasury stock (in shares) | 4,111,361 | 3,236,080 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and dividend income | ||
Loans | $ 62,474 | $ 75,933 |
Securities and other | 12,349 | 12,220 |
Total interest and dividend income | 74,823 | 88,153 |
Interest expense | ||
Deposits | 4,174 | 9,583 |
Borrowings | 1,586 | 3,477 |
Total interest expense | 5,760 | 13,060 |
Net interest income | 69,063 | 75,093 |
Non-interest income | ||
Other, net | 3,166 | 2,148 |
(Loss) on securities, net | (745) | (31) |
Total non-interest income | 20,681 | 26,193 |
Total net revenue | 89,744 | 101,286 |
(Benefit)/provision for credit losses | (4,000) | 6,500 |
Non-interest expense | ||
Compensation and benefits | 37,521 | 38,735 |
Occupancy and equipment | 10,067 | 11,024 |
Technology and communications | 8,527 | 8,593 |
Marketing and promotion | 1,111 | 595 |
Professional services | 2,692 | 6,614 |
FDIC premiums and assessments | 987 | 1,120 |
Other real estate owned and foreclosures | 0 | 2 |
Amortization of intangible assets | 1,286 | 1,319 |
Acquisition, restructuring, and other expenses | 18 | 3,486 |
Other | 6,341 | 6,666 |
Total non-interest expense | 68,550 | 78,154 |
Income before income taxes | 25,194 | 16,632 |
Income tax expense | 4,998 | 3,601 |
Net income | $ 20,196 | $ 13,031 |
Basic earnings per common share (in dollars per share) | $ 0.42 | $ 0.26 |
Diluted earnings per common share (in dollars per share) | $ 0.42 | $ 0.26 |
Weighted average shares outstanding: | ||
Basic (in shares) | 47,668 | 50,330 |
Diluted (in shares) | 48,067 | 50,565 |
Total fee income | ||
Non-interest income | ||
Total fee income | $ 18,260 | $ 24,076 |
Deposit related fees | ||
Non-interest income | ||
Total fee income | 7,351 | 7,126 |
Loan fees and revenue | ||
Non-interest income | ||
Total fee income | 8,265 | 10,246 |
Insurance commissions and fees | ||
Non-interest income | ||
Total fee income | 0 | 3,130 |
Wealth management fees | ||
Non-interest income | ||
Total fee income | 2,625 | 2,772 |
Mortgage banking originations | ||
Non-interest income | ||
Total fee income | $ 19 | $ 802 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 20,196 | $ 13,031 |
Other comprehensive (loss), before tax: | ||
Changes in unrealized (loss) on debt securities available-for-sale | (101,373) | (27,013) |
Income taxes related to other comprehensive income: | ||
Changes in unrealized (loss) on debt securities available-for-sale | 26,379 | 6,863 |
Total other comprehensive (loss) | (74,994) | (20,150) |
Total comprehensive (loss) | $ (54,798) | $ (7,119) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Unearned compensation | Retained earnings (deficit) | Accumulated other comprehensive income/(loss) | Treasury stock |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 50,833 | ||||||
Balance at Beginning of Period at Dec. 31, 2020 | $ 1,187,773 | $ 528 | $ 1,427,239 | $ (6,245) | $ (233,344) | $ 30,871 | $ (31,276) |
Comprehensive (loss): | |||||||
Net income | 13,031 | 13,031 | |||||
Other comprehensive (loss) | (20,150) | (20,150) | |||||
Total comprehensive (loss) | (7,119) | 13,031 | (20,150) | ||||
Cash dividends declared on common shares | (6,124) | (6,124) | |||||
Forfeited shares (in shares) | (52) | ||||||
Forfeited shares | 0 | (234) | 1,333 | (1,099) | |||
Exercise of stock options (in shares) | 5 | ||||||
Exercise of stock options | 69 | (79) | 148 | ||||
Restricted stock grants (in shares) | 210 | ||||||
Restricted stock grants | 0 | (2,660) | (3,485) | 6,145 | |||
Stock-based compensation | 675 | 675 | |||||
Other, net (in shares) | (8) | ||||||
Other, net | (135) | 4 | (139) | ||||
Balance at end of period (in shares) at Mar. 31, 2021 | 50,988 | ||||||
Balance at End of Period at Mar. 31, 2021 | 1,175,139 | $ 528 | 1,424,349 | (7,722) | (226,516) | 10,721 | (26,221) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 48,667 | ||||||
Balance at Beginning of Period at Dec. 31, 2021 | 1,182,435 | $ 528 | 1,423,445 | (9,056) | (139,383) | (3,243) | (89,856) |
Comprehensive (loss): | |||||||
Net income | 20,196 | 20,196 | |||||
Other comprehensive (loss) | (74,994) | (74,994) | |||||
Total comprehensive (loss) | (54,798) | 20,196 | (74,994) | ||||
Cash dividends declared on common shares | (6,152) | (6,152) | |||||
Treasury shares repurchased (in shares) | (972) | ||||||
Treasury shares repurchased | (29,254) | (29,254) | |||||
Forfeited shares (in shares) | (36) | ||||||
Forfeited shares | 0 | 70 | 983 | (1,053) | |||
Exercise of stock options (in shares) | 1 | ||||||
Exercise of stock options | 25 | (4) | 29 | ||||
Restricted stock grants (in shares) | 139 | ||||||
Restricted stock grants | 0 | 161 | (4,016) | 3,855 | |||
Stock-based compensation | 1,805 | 1,805 | |||||
Other, net (in shares) | (7) | ||||||
Other, net | (200) | 3 | (203) | ||||
Balance at end of period (in shares) at Mar. 31, 2022 | 47,792 | ||||||
Balance at End of Period at Mar. 31, 2022 | $ 1,093,861 | $ 528 | $ 1,423,679 | $ (10,284) | $ (125,343) | $ (78,237) | $ (116,482) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, cash dividends declared (in dollars per share) | $ 0.12 | $ 0.12 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 20,196 | $ 13,031 | $ 20,196 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Benefit)/provision for credit losses | (4,000) | 6,500 | |
Net amortization of securities | 668 | 389 | |
Change in unamortized net loan costs and premiums | 560 | (2,755) | |
Premises and equipment depreciation and amortization expense | 2,479 | 2,839 | |
Stock-based compensation expense | 1,805 | 675 | |
Accretion of purchase accounting entries, net | (677) | (1,305) | |
Amortization of other intangibles | 1,286 | 1,319 | |
Income from cash surrender value of bank-owned life insurance policies | (1,332) | (1,348) | |
Securities losses, net | 745 | 31 | |
Net change in loans held-for-sale | 5,204 | 3,938 | |
Loss on disposition of assets | 0 | 2,811 | |
Amortization of interest in tax-advantaged projects | 357 | 33 | |
Net change in other | (10,595) | (2,584) | |
Net cash provided by operating activities | 16,696 | 23,574 | |
Cash flows from investing activities: | |||
Net decrease in trading security | 202 | 192 | |
Proceeds from sales of marketable equity securities | 0 | 2,849 | |
Purchases of securities available for sale | (386,636) | (103,877) | |
Proceeds from maturities, calls, and prepayments of securities available for sale | 130,118 | 166,998 | |
Purchases of securities held to maturity | 0 | (155,417) | |
Proceeds from maturities, calls, and prepayments of securities held to maturity | 23,853 | 9,377 | |
Net change in loans | (443,357) | ||
Net change in loans | 412,255 | ||
Net change in Mid-Atlantic region loans held for sale | 0 | 16,830 | |
Proceeds from surrender of bank-owned life insurance | 429 | 0 | |
Purchase of Federal Home Loan Bank stock | (116) | 0 | |
Proceeds from redemption of Federal Home Loan Bank stock | 87 | 6,193 | |
Purchase of premises and equipment, net | 0 | (2,297) | |
Net cash (used)/provided by investing activities | (675,420) | 353,103 | |
Cash flows from financing activities: | |||
Net increase in deposits | 630,255 | 28,562 | |
Net change in Mid-Atlantic region deposits held for sale | 0 | 29,245 | |
Proceeds from Federal Home Loan Bank advances and other borrowings | 1,275 | 0 | |
Repayments of Federal Home Loan Bank advances and other borrowings | (46) | (123,022) | |
Purchase of treasury stock | (29,254) | 0 | |
Exercise of stock options | 25 | 69 | |
Common stock cash dividends paid | (6,152) | (6,124) | |
Settlement of derivative contracts with financial institution counterparties | 42,065 | 36,326 | |
Net cash provided/(used) by financing activities | 638,168 | (34,944) | |
Net change in cash and cash equivalents | (20,556) | 341,733 | |
Cash and cash equivalents at beginning of period | 1,627,807 | 1,557,875 | $ 1,557,875 |
Cash and cash equivalents at end of period | 1,607,251 | 1,899,608 | |
Supplemental cash flow information: | |||
Interest paid on deposits | 3,965 | 10,149 | |
Interest paid on borrowed funds | 1,588 | 3,655 | |
Income taxes (refunded) paid, net | 2,694 | (2,386) | |
Other non-cash changes: | |||
Other net comprehensive income | (74,994) | (20,150) | |
Unsettled transactions related to security purchases | 0 | 22,126 | |
Reclass of seasoned loan portfolios to held-for-sale, net | 0 | 9,500 | |
Reclass of held-for-sale loans to held-for-investment, net | $ 606 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The Consolidated Financial Statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts. These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Refer to Note 9 – Other Commitments, Contingencies, Off-Balance Sheet Activities, and Pandemic Impact for pandemic related risks and uncertainties. Recently Adopted Accounting Principles There were no new applicable material accounting pronouncements adopted by the Company since December 31, 2021. Future Application of Accounting Pronouncements In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method.” The guidance expands the current last-of-layer method to allow multiple hedge layers of a single closed portfolio (renamed to portfolio layer method) and expands the portfolio layer method to include nonprepayable financial assets. The ASU specifies eligible hedging instruments in a single-layer hedge and provides additional guidance on accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. Further, hedge basis adjustments should be considered when determining credit losses for assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the troubled debt restructuring (“TDR”) accounting model that was adopted with Topic 326, “Financial Instruments – Credit Losses” and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU requires prospective disclosure of current-period gross write-offs by year of origination. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted and the Company can elect to adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
TRADING SECURITY
TRADING SECURITY | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
TRADING SECURITY | TRADING SECURITYThe Company holds a tax-advantaged economic development bond accounted for at fair value. The security had an amortized cost of $7.7 million and $7.9 million, and a fair value of $7.8 million and $8.4 million, at March 31, 2022 and December 31, 2021, respectively. As discussed further in Note 7 - Derivative Financial Instruments and Hedging Activities, the Company entered into a swap contract to swap-out the fixed rate of the security in exchange for a variable rate. The Company does not purchase securities with the intent of selling them in the near term, and there were no other securities in the trading portfolio at March 31, 2022 or December 31, 2021. |
SECURITIES AVAILABLE FOR SALE,
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES | SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES The following is a summary of securities available for sale, held to maturity, and marketable equity securities: (In thousands) Amortized Cost Gross Gross Fair Value Allowance March 31, 2022 Securities available for sale U.S Treasuries $ 290,656 $ 31 $ (78) $ 290,609 Municipal bonds and obligations 68,624 2,039 (440) 70,223 — Agency collateralized mortgage obligations 740,928 68 (43,284) 697,712 — Agency mortgage-backed securities 702,903 50 (48,567) 654,386 — Agency commercial mortgage-backed securities 273,144 100 (14,920) 258,324 — Corporate bonds 44,803 373 (678) 44,498 — Other bonds and obligations 16,790 77 (44) 16,823 — Total securities available for sale 2,137,848 2,738 (108,011) 2,032,575 — Securities held to maturity Municipal bonds and obligations 271,466 5,462 (11,963) 264,965 67 Agency collateralized mortgage obligations 143,170 618 (9,741) 134,047 — Agency mortgage-backed securities 55,058 — (5,353) 49,705 — Agency commercial mortgage-backed securities 139,751 — (10,611) 129,140 — Tax advantaged economic development bonds 2,564 15 (63) 2,516 32 Other bonds and obligations 165 — — 165 — Total securities held to maturity 612,174 6,095 (37,731) 580,538 99 Marketable equity securities 15,690 109 (1,080) 14,719 — Total $ 2,765,712 $ 8,942 $ (146,822) $ 2,627,832 $ 99 (In thousands) Amortized Cost Gross Gross Fair Value Allowance December 31, 2021 Securities available for sale U.S Treasuries $ 59,972 $ 1 $ — $ 59,973 $ — Municipal bonds and obligations 71,822 5,355 — 77,177 — Agency collateralized mortgage obligations 693,782 5,566 (11,012) 688,336 — Agency mortgage-backed securities 711,154 2,347 (7,642) 705,859 — Agency commercial mortgage-backed securities 282,958 2,996 (3,620) 282,334 — Corporate bonds 44,824 950 (114) 45,660 — Other bonds and obligations 17,301 953 (8) 18,246 — Total securities available for sale 1,881,813 18,168 (22,396) 1,877,585 — Securities held to maturity Municipal bonds and obligations 281,515 16,151 (693) 296,973 70 Agency collateralized mortgage obligations 149,195 3,203 (3,513) 148,885 — Agency mortgage-backed securities 57,327 95 (1,498) 55,924 — Agency commercial mortgage-backed securities 145,573 266 (3,289) 142,550 — Tax advantaged economic development bonds 2,728 26 (15) 2,739 35 Other bonds and obligations 165 — — 165 — Total securities held to maturity 636,503 19,741 (9,008) 647,236 105 Marketable equity securities 15,689 67 (303) 15,453 — Total $ 2,534,005 $ 37,979 $ (31,707) $ 2,540,274 $ 105 The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three months ended March 31, 2022 and 2021: (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2021 $ 70 $ 35 $ 105 Provision for credit losses - reversal (3) (3) (6) Balance at March 31, 2022 $ 67 $ 32 $ 99 (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2020 $ 64 $ 40 $ 104 Provision for credit losses 7 — 7 Balance at March 31, 2021 $ 71 $ 40 $ 111 Credit Quality Information The Company monitors the credit quality of held to maturity securities through credit ratings from various rating agencies. Credit ratings express opinions about the credit quality of a security and are utilized by the Company to make informed decisions. Investment grade securities are rated BBB-/Baa3 or higher and generally considered by the rating agencies and market participants to be of low credit risk. Conversely, securities rated below investment grade are considered to have distinctively higher credit risk than investment grade securities. For securities without credit ratings, the Company utilizes other financial information indicating the financial health of the underlying municipality, agency, or organization. As of March 31, 2022, none of the Company's investment securities were delinquent or in non-accrual status. The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at March 31, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale Held to maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within 1 year $ 292,101 $ 292,057 $ 1,717 $ 1,718 Over 1 year to 5 years 7,941 8,007 2,783 2,799 Over 5 years to 10 years 48,905 48,853 21,186 21,602 Over 10 years 71,926 73,236 248,509 241,527 Total bonds and obligations 420,873 422,153 274,195 267,646 Mortgage-backed securities 1,716,975 1,610,422 337,979 312,892 Total $ 2,137,848 $ 2,032,575 $ 612,174 $ 580,538 During the three months ended March 31, 2022, purchases of AFS securities totaled $386.6 million. During the three months ended March 31, 2022, there were no sales of AFS securities. During the three months ended March 31, 2021, purchases of AFS securities totaled $103.9 million, and there were no sales of AFS securities. During the three months ended March 31, 2021, there were no gross gains or losses on AFS securities. These gains and losses are included in gain/(loss) on securities, net on the consolidated statements of income. Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (In thousands) Losses Value Losses Value Losses Value March 31, 2022 Securities available for sale U.S Treasuries $ 78 $ 140,643 $ — $ — $ 78 $ 140,643 Municipal bonds and obligations 440 10,695 — — 440 10,695 Agency collateralized mortgage obligations 38,150 637,494 5,134 38,740 43,284 676,234 Agency mortgage-backed securities 24,058 414,665 24,509 233,313 48,567 647,978 Agency commercial mortgage-backed securities 8,380 178,298 6,540 69,180 14,920 247,478 Corporate bonds 678 16,533 — — 678 16,533 Other bonds and obligations 35 6,049 9 594 44 6,643 Total securities available for sale $ 71,819 $ 1,404,377 $ 36,192 $ 341,827 $ 108,011 $ 1,746,204 Securities held to maturity Municipal bonds and obligations $ 10,422 $ 43,645 $ 1,541 $ 5,249 $ 11,963 $ 48,894 Agency collateralized mortgage obligations 5,863 48,246 3,878 32,979 9,741 81,225 Agency mortgage-backed securities 73 2,925 5,280 46,780 5,353 49,705 Agency commercial mortgage-backed securities 5,524 77,044 5,087 52,095 10,611 129,139 Tax advantaged economic development bonds 63 1,171 — — 63 1,171 Total securities held to maturity 21,945 173,031 15,786 137,103 37,731 310,134 Total $ 93,764 $ 1,577,408 $ 51,978 $ 478,930 $ 145,742 $ 2,056,338 December 31, 2021 Securities available for sale Agency collateralized mortgage obligations $ 9,626 $ 375,132 $ 1,386 $ 27,025 $ 11,012 $ 402,157 Agency mortgage-backed securities 3,179 222,887 4,463 175,941 7,642 398,828 Agency commercial mortgage-backed securities 1,609 103,354 2,011 48,619 3,620 151,973 Corporate bonds 114 11,115 — — 114 11,115 Other bonds and obligations — — 8 694 8 694 Total securities available for sale $ 14,528 $ 712,488 $ 7,868 $ 252,279 $ 22,396 $ 964,767 Securities held to maturity Municipal bonds and obligations $ 693 $ 36,981 $ — $ — $ 693 $ 36,981 Agency collateralized mortgage obligations 1,808 49,308 1,705 36,212 3,513 85,520 Agency mortgage-backed securities 839 26,656 659 26,025 1,498 52,681 Agency commercial mortgage-backed securities 1,255 80,406 2,034 51,654 3,289 132,060 Tax advantaged economic development bonds 15 1,255 — — 15 1,255 Total securities held to maturity 4,610 194,606 4,398 113,891 9,008 308,497 Total $ 19,138 $ 907,094 $ 12,266 $ 366,170 $ 31,404 $ 1,273,264 Debt Securities The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of March 31, 2022, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at March 31, 2022: AFS U.S Treasuries At March 31, 2022, 6 of the 11 securities in the Company’s portfolio of U.S Treasuries were in unrealized loss positions. Aggregate unrealized losses represented 0.1% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS municipal bonds and obligations At March 31, 2022, 7 of the 100 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 4.0% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. AFS collateralized mortgage obligations At March 31, 2022, 224 of the 255 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 6.0% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS commercial and residential mortgage-backed securities At March 31, 2022, 90 of the 134 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 6.6% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS corporate bonds At March 31, 2022, 6 of the 15 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. Aggregate unrealized losses represents 3.9% of the amortized cost of the bond in an unrealized loss position. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. AFS other bonds and obligations At March 31, 2022, 4 of the 5 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.7% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing. HTM municipal bonds and obligations At March 31, 2022, 41 of the 200 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 19.7% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. HTM collateralized mortgage obligations At March 31, 2022, 7 of the 14 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 10.7% of the amortized cost of the securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing. HTM commercial and residential mortgage-backed securities At March 31, 2022, 16 of the 17 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 8.2% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. HTM tax-advantaged economic development bonds At March 31, 2022, 1 of the 3 securities in the Company’s portfolio of tax-advantaged economic development bonds was in an unrealized loss position. Aggregate unrealized losses represented 5.1% of the amortized cost of the security in an unrealized loss position. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types: (In thousands) March 31, 2022 December 31, 2021 Construction $ 310,778 $ 324,282 Commercial multifamily 640,922 515,817 Commercial real estate owner occupied 609,526 606,477 Commercial real estate non-owner occupied 2,207,124 2,156,929 Commercial and industrial 1,350,752 1,284,429 Residential real estate 1,665,304 1,489,248 Home equity 244,649 252,366 Consumer other 238,268 196,299 Total loans $ 7,267,323 $ 6,825,847 Allowance for credit losses 99,475 106,094 Net loans $ 7,167,848 $ 6,719,753 As of March 31, 2022 and December 31, 2021, outstanding loans originated under the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") totaled $15.6 million and $29.9 million, respectively. These loans are 100% guaranteed by the SBA and the full principal amount of the loan may qualify for forgiveness. These loans are included in commercial and industrial. During the three months ended March 31, 2022, there were no loans reclassified to held for sale. During the three months ended March 31, 2021, the Company reclassified $9.5 million of commercial loans to held for sale, reflecting its intent to sell these loans. Held for sale loans are not contained in the balances within this note and are accounted for at the lower of carrying value or fair market value within loans held for sale on the Consolidated Balance Sheet. Risk characteristics relevant to each portfolio segment are as follows: Construction - Loans in this segment primarily include real estate development loans for which payment is derived from sale of the property or long term financing at completion. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial real estate multifamily, owner occupied and non-owner - Loans in these segments are primarily owner-occupied or income-producing properties throughout New England and Northeastern New York. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy, which in turn, will have an effect on the credit quality in this segment. Management monitors the cash flows of these loans. Commercial and industrial loans - Loans in this segment are made to businesses and are generally secured by assets of the business such as accounts receivable, inventory, marketable securities, other liquid collateral, equipment and other business assets. Repayment is expected from the cash flows of the business. Loans in this segment include asset based loans which generally have no scheduled repayment and which are closely monitored against formula based collateral advance ratios. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Residential real estate - All loans in this segment are collateralized by residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Home equity and other consumer loans - Loans in this segment are primarily home equity lines of credit, automobile loans and other consumer loans. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Allowance for Credit Losses for Loans The Allowance for Credit Losses for Loans (“ACLL”) is comprised of the allowance for loan losses, and the allowance for unfunded commitments is accounted for as a separate liability in other liabilities on the balance sheet. The level of the ACLL represents management’s estimate of expected credit losses over the expected life of the loans at the balance sheet date. The Company uses a static pool migration analysis method, applying expected historical loss trend and observed economic metrics. The level of the ACLL is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past and current events, utilizing a 7 quarter reasonable and supportable forecast period with a 1 year reversion period. The ACLL reserve is overlaid with qualitative factors based upon: • the existence and growth of concentrations of credit; • the volume and severity of past due financial assets, including nonaccrual assets; • the institutions lending and credit review as well as the experience and ability of relevant management and staff and; • the effect of other external factors such as regulatory, competition, regional market conditions, legal and technological environment and other events such as natural disasters; • the effect of other economic factors such as economic stimulus and customer forbearance programs. The allowance for unfunded commitments is maintained at a level by the Company to be sufficient to absorb expected lifetime losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit). The Company’s activity in the allowance for credit losses for loans for the three months ended March 31, 2022 and March 31, 2021 was as follows: (In thousands) Balance at Beginning of Period Charge-offs Recoveries Provision for Credit Losses Balance at End of Period Three months ended March 31, 2022 Construction $ 3,206 $ — $ — $ (701) $ 2,505 Commercial multifamily 6,120 — — (349) 5,771 Commercial real estate owner occupied 12,752 (130) 209 (1,333) 11,498 Commercial real estate non-owner occupied 32,106 (4,884) 1,266 (2,674) 25,814 Commercial and industrial 22,584 (653) 1,288 (270) 22,949 Residential real estate 22,406 (164) 388 (4,814) 17,816 Home equity 4,006 — 134 (837) 3,303 Consumer other 2,914 (216) 137 6,984 9,819 Total allowance for credit losses $ 106,094 $ (6,047) $ 3,422 $ (3,994) $ 99,475 (In thousands) Balance at Beginning of Period Charge-offs Recoveries Provision for Credit Losses Balance at End of Period Three months ended March 31, 2021 Construction $ 5,111 $ — $ — $ (714) $ 4,397 Commercial multifamily 5,916 (124) 62 497 6,351 Commercial real estate owner occupied 12,380 (376) 12 2,241 14,257 Commercial real estate non-owner occupied 35,850 (6,658) 126 5,243 34,561 Commercial and industrial 25,013 (3,320) 644 3,734 26,071 Residential real estate 28,491 (377) 437 (2,751) 25,800 Home equity 6,482 (77) 24 (680) 5,749 Consumer other 8,059 (528) 160 (1,077) 6,614 Total allowance for credit losses $ 127,302 $ (11,460) $ 1,465 $ 6,493 $ 123,800 The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liability on consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of income. The Company’s activity in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2022 and March 31, 2021 was as follows: Three Months Ended (In thousands) 2022 2021 Balance at beginning of period $ 7,043 $ 7,629 Expense for credit losses — 200 Balance at end of period $ 7,043 $ 7,829 Credit Quality Information The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential weaknesses and are evaluated closely by management. Substandard, including non-accruing loans, are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. For commercial credits, the Company assigns an internal risk rating at origination and reviews the rating annual, semiannually, or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations. The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention, and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60-89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. The following table presents the Company’s loans by risk category: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2022 Construction Risk rating Pass $ 23,309 $ 101,236 $ 28,394 $ 90,605 $ 33,505 $ 4,932 $ 49 $ — $ 282,030 Special Mention — — — — — — — — — Substandard — — — — 28,748 — — — 28,748 Total $ 23,309 $ 101,236 $ 28,394 $ 90,605 $ 62,253 $ 4,932 $ 49 $ — $ 310,778 Commercial multifamily: Risk rating Pass $ 125,302 $ 63,610 $ 28,023 $ 119,128 $ 69,248 $ 225,003 $ 769 $ — $ 631,083 Special Mention — — 2,682 — 5,578 — — — 8,260 Substandard — — — — — 1,445 134 — 1,579 Total $ 125,302 $ 63,610 $ 30,705 $ 119,128 $ 74,826 $ 226,448 $ 903 $ — $ 640,922 Commercial real estate owner occupied: Risk rating Pass $ 26,695 $ 147,396 $ 49,844 $ 85,077 $ 87,214 $ 195,950 $ 3,344 $ — $ 595,520 Special Mention — — 396 1,609 262 1,395 — — 3,662 Substandard — — 116 856 1,576 7,796 — — 10,344 Total $ 26,695 $ 147,396 $ 50,356 $ 87,542 $ 89,052 $ 205,141 $ 3,344 $ — $ 609,526 Commercial real estate non-owner occupied: Risk rating Pass $ 228,720 $ 425,619 $ 169,251 $ 260,590 $ 333,773 $ 667,716 $ 18,161 $ — $ 2,103,830 Special Mention — — — 11,119 13,737 29,310 — — 54,166 Substandard — — 7,504 — 3,066 38,459 99 — 49,128 Total $ 228,720 $ 425,619 $ 176,755 $ 271,709 $ 350,576 $ 735,485 $ 18,260 $ — $ 2,207,124 Commercial and industrial: Risk rating Pass $ 76,088 $ 182,930 $ 110,615 $ 93,214 $ 132,957 $ 167,828 $ 519,051 $ — $ 1,282,683 Special Mention — — 1,296 9,857 3,157 1,244 19,264 — 34,818 Substandard — 465 2,416 8,128 2,781 4,285 14,949 — 33,024 Doubtful — — — — — 14 213 — 227 Total $ 76,088 $ 183,395 $ 114,327 $ 111,199 $ 138,895 $ 173,371 $ 553,477 $ — $ 1,350,752 Residential real estate Risk rating Pass $ 225,079 $ 259,363 $ 107,629 $ 81,674 $ 153,406 $ 820,956 $ 291 $ — $ 1,648,398 Special Mention — — 328 — — 499 — — 827 Substandard — 854 13 425 2,031 12,756 — — 16,079 Total $ 225,079 $ 260,217 $ 107,970 $ 82,099 $ 155,437 $ 834,211 $ 291 $ — $ 1,665,304 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2021 Construction Risk rating Pass $ 71,784 $ 52,725 $ 117,784 $ 66,950 $ 3,839 $ 1,721 $ 50 $ — $ 314,853 Special Mention — — — — — — — — — Substandard — — — 9,429 — — — — 9,429 Total $ 71,784 $ 52,725 $ 117,784 $ 76,379 $ 3,839 $ 1,721 $ 50 $ — $ 324,282 Commercial multifamily: Risk rating Pass $ 63,630 $ 28,172 $ 98,455 $ 59,720 $ 76,699 $ 176,020 $ 457 $ — $ 503,153 Special Mention — 2,700 — 5,598 — — — — 8,298 Substandard — — — — — 4,230 136 — 4,366 Total $ 63,630 $ 30,872 $ 98,455 $ 65,318 $ 76,699 $ 180,250 $ 593 $ — $ 515,817 Commercial real estate owner occupied: Risk rating Pass $ 154,434 $ 50,236 $ 85,687 $ 91,316 $ 45,995 $ 157,346 $ 3,206 $ — $ 588,220 Special Mention — 525 869 1,668 1,405 1,157 — — 5,624 Substandard — — 2,113 1,593 838 8,089 — — 12,633 Total $ 154,434 $ 50,761 $ 88,669 $ 94,577 $ 48,238 $ 166,592 $ 3,206 $ — $ 606,477 Commercial real estate non-owner occupied: Risk rating Pass $ 426,086 $ 176,172 $ 296,985 $ 349,947 $ 204,043 $ 585,044 $ 19,511 $ — $ 2,057,788 Special Mention — 221 3,472 7,632 2,302 27,268 — — 40,895 Substandard — 7,588 — 2,784 33,472 14,303 99 — 58,246 Total $ 426,086 $ 183,981 $ 300,457 $ 360,363 $ 239,817 $ 626,615 $ 19,610 $ — $ 2,156,929 Commercial and industrial: Risk rating Pass $ 187,257 $ 130,520 $ 114,153 $ 156,443 $ 54,190 $ 136,837 $ 424,393 $ — $ 1,203,793 Special Mention 661 1,691 10,824 5,092 1,433 488 22,468 — 42,657 Substandard 211 2,494 9,609 3,145 2,020 2,330 17,935 — 37,744 Doubtful — — — — — 15 220 — 235 Total $ 188,129 $ 134,705 $ 134,586 $ 164,680 $ 57,643 $ 139,670 $ 465,016 $ — $ 1,284,429 Residential real estate Risk rating Pass $ 214,306 $ 114,536 $ 86,997 $ 169,537 $ 189,980 $ 697,401 $ 293 $ — $ 1,473,050 Special Mention — — — 120 502 1,557 — — 2,179 Substandard 1,239 — 142 1,849 2,161 8,628 — — 14,019 Total $ 215,545 $ 114,536 $ 87,139 $ 171,506 $ 192,643 $ 707,586 $ 293 $ — $ 1,489,248 For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2022 Home equity: Payment performance Performing $ — $ 122 $ 464 $ — $ — $ 22 $ 242,052 $ — $ 242,660 Nonperforming — — — — — — 1,989 — 1,989 Total $ — $ 122 $ 464 $ — $ — $ 22 $ 244,041 $ — $ 244,649 Consumer other: Payment performance Performing $ 68,740 $ 35,602 $ 10,303 $ 18,878 $ 48,084 $ 47,445 $ 6,902 $ — $ 235,954 Nonperforming — 92 39 263 733 1,167 20 — 2,314 Total $ 68,740 $ 35,694 $ 10,342 $ 19,141 $ 48,817 $ 48,612 $ 6,922 $ — $ 238,268 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2021 Home equity: Payment performance Performing $ 125 $ 469 $ — $ — $ — $ 24 $ 249,590 $ — $ 250,208 Nonperforming — — — — — — 2,158 — 2,158 Total $ 125 $ 469 $ — $ — $ — $ 24 $ 251,748 $ — $ 252,366 Consumer other: Payment performance Performing $ 37,994 $ 11,189 $ 21,548 $ 55,577 $ 30,632 $ 28,797 $ 7,505 $ — $ 193,242 Nonperforming 8 46 290 797 746 1,139 31 — 3,057 Total $ 38,002 $ 11,235 $ 21,838 $ 56,374 $ 31,378 $ 29,936 $ 7,536 $ — $ 196,299 The following is a summary of loans by past due status at March 31, 2022 and December 31, 2021: (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans March 31, 2022 Construction $ — $ — $ — $ — $ 310,778 $ 310,778 Commercial multifamily — — 182 182 640,740 640,922 Commercial real estate owner occupied 225 — 4,263 4,488 605,038 609,526 Commercial real estate non-owner occupied 2,342 26 4,923 7,291 2,199,833 2,207,124 Commercial and industrial 3,979 476 7,450 11,905 1,338,847 1,350,752 Residential real estate 3,821 828 15,263 19,912 1,645,392 1,665,304 Home equity 188 70 1,989 2,247 242,402 244,649 Consumer other 1,366 198 2,224 3,788 234,480 238,268 Total $ 11,921 $ 1,598 $ 36,294 $ 49,813 $ 7,217,510 $ 7,267,323 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans December 31, 2021 Construction $ — $ — $ — $ — $ 324,282 $ 324,282 Commercial multifamily 82 306 187 575 515,242 515,817 Commercial real estate owner occupied — 400 4,221 4,621 601,856 606,477 Commercial real estate non-owner occupied 25,420 653 9,049 35,122 2,121,807 2,156,929 Commercial and industrial 2,700 709 6,836 10,245 1,274,184 1,284,429 Residential real estate 5,529 2,015 13,264 20,808 1,468,440 1,489,248 Home equity 258 108 2,158 2,524 249,842 252,366 Consumer other 1,363 320 2,882 4,565 191,734 196,299 Total $ 35,352 $ 4,511 $ 38,597 $ 78,460 $ 6,747,387 $ 6,825,847 The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of March 31, 2022 and December 31, 2021: (In thousands) Nonaccrual Amortized Cost Nonaccrual With No Related Allowance Past Due 90 Days or Greater and Accruing Interest Income Recognized on Nonaccrual At or for the three months ended March 31, 2022 Construction $ — $ — $ — $ — Commercial multifamily 182 182 — — Commercial real estate owner occupied 3,726 2,477 537 — Commercial real estate non-owner occupied 4,751 94 172 — Commercial and industrial 5,619 746 1,831 — Residential real estate 11,678 6,946 3,585 — Home equity 1,719 132 270 — Consumer other 2,006 4 218 — Total $ 29,681 $ 10,581 $ 6,613 $ — The commercial and industrial loans nonaccrual amortized cost as of March 31, 2022 included medallion loans with a fair value of $1.2 million and a contractual balance of $23.1 million. (In thousands) Nonaccrual Amortized Cost Nonaccrual With No Related Allowance Past Due 90 Days or Greater and Accruing Interest Income Recognized on Nonaccrual At or for the three months ended December 31, 2021 Construction $ — $ — $ — $ — Commercial multifamily 187 187 — — Commercial real estate owner occupied 4,221 2,413 — — Commercial real estate non-owner occupied 8,877 8,412 172 — Commercial and industrial 6,747 1,506 89 — Residential real estate 10,698 6,511 2,566 — Home equity 1,901 141 257 — Consumer other 2,695 4 187 — Total $ 35,326 $ 19,174 $ 3,271 $ — The commercial and industrial loans nonaccrual amortized cost as of December 31, 2021 included medallion loans with a fair value of $1.2 million and a contractual balance of $31.4 million. The following table summarizes information about total loans rated Special Mention or lower at March 31, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity. (In thousands) March 31, 2022 December 31, 2021 Non-Accrual $ 29,681 $ 35,326 Substandard Accruing 113,755 106,560 Total Classified 143,436 141,886 Special Mention 101,992 100,071 Total Criticized $ 245,428 $ 241,957 A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. Expected credit losses for collateral-dependent loans are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Significant quarter over quarter changes are reflective of changes in nonaccrual status and not necessarily associated with credit quality indicators like appraisal value. The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment: Type of Collateral (In thousands) Real Estate Investment Securities/Cash Other March 31, 2022 Construction $ 9,429 $ — $ — Commercial multifamily 184 — — Commercial real estate owner occupied 3,628 — — Commercial real estate non-owner occupied 5,481 — — Commercial and industrial 623 — 1,040 Residential real estate 6,563 — — Home equity 253 — — Consumer other 6 — — Total loans $ 26,167 $ — $ 1,040 December 31, 2021 Construction $ 9,429 $ — $ — Commercial multifamily 188 — — Commercial real estate owner occupied 4,466 — — Commercial real estate non-owner occupied 9,501 — — Commercial and industrial 526 — 1,040 Residential real estate 7,035 — — Home equity 262 — — Consumer other 2 — — Total loans $ 31,409 $ — $ 1,040 Troubled Debt Restructuring Loans The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. The following table presents activity in TDRs for the three months ended March 31, 2022 and March 31, 2021: (In thousands) Balance at Beginning of Period Principal Payments TDR Status Change Other Additions/(Reductions) Newly Identified TDRs Balance at End of Period Three months ended March 31, 2022 Construction $ 9,429 $ — $ — $ — $ — $ 9,429 Commercial multifamily 703 (9) — — — 694 Commercial real estate owner occupied 2,733 (9) — — — 2,724 Commercial real estate non-owner occupied 9,310 — — (8,312) — 998 Commercial and industrial 3,656 (51) — (13) — 3,592 Residential real estate 1,117 (8) — — — 1,109 Home equity 121 (2) — — 50 169 Consumer other 33 (1) — — — 32 Total $ 27,102 $ (80) $ — $ (8,325) $ 50 $ 18,747 (In thousands) Balance at Beginning of Period Principal Payments TDR Status Change Other Additions/(Reductions) Newly Identified TDRs Balance at End of Period Three months ended March 31, 2021 Construction $ — $ — $ — $ — $ — $ — Commercial multifamily 754 (13) — — — 741 Commercial real estate owner occupied 1,731 (6) — — — 1,725 Commercial real estate non-owner occupied 13,684 (14) — 511 544 14,725 Commercial and industrial 2,686 (199) — — 146 2,633 Residential real estate 1,524 (31) — — — 1,493 Home equity 133 (3) — — — 130 Consumer other 36 (2) — — — 34 Total $ 20,548 $ (268) $ — $ 511 $ 690 $ 21,481 The following table presents loans modified as TDRs that occurred during the three months ended March 31, 2022 and 2021: (dollars in thousands) Total Three months ended March 31, 2022 TDR: Number of loans 1 Pre-modification outstanding recorded investment $ 50 Post-modification outstanding recorded investment $ 50 Three months ended March 31, 2021 TDR: Number of loans 4 Pre-modification outstanding recorded investment $ 690 Post-modification outstanding recorded investment $ 690 The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2022: (in thousands) Number of Loans Recorded Investment Three months ended March 31, 2022 Commercial and industrial 1 $ 105 Total 1 $ 105 There were no TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2021. Beginning in March 2020, the Company has offered three-month payment deferrals for customers with a current payment status who were negatively impacted by economic disruption caused by the COVID-19 pandemic. Refer to Note 9 - Other Commitments, Contingencies, and Off-Balance Sheet Activities, and Pandemic Impact for more information regarding these modifications. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits is as follows: (In thousands) March 31, December 31, Time less than $100,000 $ 543,728 $ 676,979 Time $100,000 through $250,000 623,928 610,174 Time more than $250,000 361,266 391,787 Total time deposits $ 1,528,922 $ 1,678,940 Included in total deposits are brokered deposits of $164.8 million and $228.1 million at March 31, 2022 and December 31, 2021, respectively. Included in total deposits are reciprocal deposits of $79.9 million and $89.2 million at March 31, 2022 and December 31, 2021, respectively. |
BORROWED FUNDS
BORROWED FUNDS | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at March 31, 2022 and December 31, 2021 are summarized, as follows: March 31, 2022 December 31, 2021 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLB $ — — % $ — — % Total short-term borrowings: — — — — Long-term borrowings: Advances from the FHLB and other borrowings 14,563 1.60 13,331 1.75 Subordinated borrowings 74,633 7.00 74,590 7.00 Junior subordinated borrowing - Trust I 15,464 2.33 15,464 2.01 Junior subordinated borrowing - Trust II 7,472 2.53 7,459 1.90 Total long-term borrowings: 112,132 5.36 110,844 5.33 Total $ 112,132 5.36 % $ 110,844 5.33 % Short-term debt includes Federal Home Loan Bank (“FHLB”) advances with an original maturity of less than one year. The Bank also maintains a $3.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the periods ended March 31, 2022 and December 31, 2021. The Bank's available borrowing capacity with the FHLB was $1.3 billion and $1.5 billion for the periods ended March 31, 2022 and December 31, 2021. The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank under this arrangement took place for the periods ended March 31, 2022 and December 31, 2021. As a participant in the SBA Paycheck Protection Program ("PPP"), the Bank may pledge originated loans as collateral at face value to the Federal Reserve Bank of Boston for term financings. As of March 31, 2022 and December 31, 2021, the Bank had no pledged PPP loans. The Bank's available borrowing capacity with the Federal Reserve Bank was $553.2 million and $511.0 million for the periods ended March 31, 2022 and December 31, 2021, respectively. Long-term FHLB advances consist of advances with an original maturity of more than one year and are subject to prepayment penalties. The advances outstanding at March 31, 2022 included callable advances totaling $10.0 million and amortizing advances totaling $4.6 million. The advances outstanding at December 31, 2021 included callable advances totaling $10.0 million and amortizing advances totaling $3.4 million. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities. A summary of maturities of FHLB advances as of March 31, 2022 is as follows: March 31, 2022 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2022 $ 3,999 2.04 % 2023 — — 2024 35 — 2025 5,971 1.99 2025 and beyond 4,558 0.72 Total FHLB advances $ 14,563 1.60 % The Company did not have variable-rate FHLB advances for the periods ended March 31, 2022 and December 31, 2021, respectively. In September 2012, the Company issued fifteen year subordinated notes in the amount of $75.0 million at a discount of 1.15%. The interest rate is fixed at 6.875% for the first ten years. After ten years, the notes become callable and convert to an interest rate of three-month LIBOR rate plus 5.113%. The subordinated note includes reduction to the note principal balance of $61 thousand and $92 thousand for unamortized debt issuance costs as of March 31, 2022 and December 31, 2021, respectively. The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets at a cost of $0.5 million. The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to LIBOR plus 1.85% and had a rate of 2.33% and 2.01% at March 31, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements. The Company holds 100% of the common stock of SI Capital Trust II (“Trust II”) which is included in other assets at a cost of $0.2 million. The sole asset of Trust II is $8.2 million of the Company’s junior subordinated debentures due in 2036. These debentures bear interest at a variable rate equal to LIBOR plus 1.70% and had a rate of 2.53% and 1.90% at March 31, 2022 and December 31, 2021, respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to shareholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust II is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust II is not consolidated into the Company’s financial statements. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As of March 31, 2022, the Company held derivatives with a total notional amount of $3.7 billion. The Company had economic hedges totaling $3.7 billion and $1.2 million non-hedging derivatives, which are not designated as hedges for accounting purposes with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $3.4 billion, risk participation agreements with dealer banks of $0.3 billion, and $0.3 million in forward commitment contracts. As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management and Capital Committee of the Company’s Board of Directors. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant at March 31, 2022. The Company pledged collateral to derivative counterparties in the form of cash totaling $38.6 million and securities with an amortized cost of $45.4 million and a fair value of $45.3 million as of March 31, 2022. The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back economic hedges. However certain language is written into the International Swaps Dealers Association, Inc. (“ISDA”) and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. Information about derivative assets and liabilities at March 31, 2022, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 7,677 7.7 0.60 % 5.09 % $ (726) Interest rate swaps on loans with commercial loan customers 1,688,052 6.0 3.97 % 2.01 % (2,540) Offsetting interest rate swaps on loans with commercial loan customers (1) 1,688,052 6.0 2.01 % 3.97 % 6,179 Risk participation agreements with dealer banks 329,679 5.5 324 Forward sale commitments 307 0.2 7 Total economic hedges 3,713,767 3,244 Non-hedging derivatives: Commitments to lend 1,184 0.2 18 Total non-hedging derivatives 1,184 18 Total $ 3,714,951 $ 3,262 (1) Fair value estimates include the impact of $3.4 million settled to market contract agreements. Information about derivative assets and liabilities at December 31, 2021, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 7,879 7.9 0.47 % 5.09 % $ (1,158) Interest rate swaps on loans with commercial loan customers 1,684,238 5.8 3.99 % 1.91 % 74,348 Offsetting interest rate swaps on loans with commercial loan customers (1) 1,684,238 5.8 1.91 % 3.99 % (30,454) Risk participation agreements with dealer banks 320,981 5.8 432 Forward sale commitments 6,377 0.2 134 Total economic hedges 3,703,713 43,302 Non-hedging derivatives: Commitments to lend 8,192 0.2 124 Total non-hedging derivatives 8,192 124 Total $ 3,711,905 $ 43,426 (1) Fair value estimates include the impact of $45.7 million settled to market contract agreements. Economic hedges As of March 31, 2022, the Company has an interest rate swap with a $7.7 million notional amount to swap out the fixed rate of interest on an economic development bond bearing a fixed rate of 5.09%, currently within the Company’s trading portfolio under the fair value option, in exchange for a LIBOR-based floating rate. The intent of the economic hedge is to improve the Company’s asset sensitivity to changing interest rates in anticipation of favorable average floating rates of interest over the 21-year life of the bond. The fair value changes of the economic development bond are mostly offset by fair value changes of the related interest rate swap. The Company also offers certain derivative products directly to qualified commercial borrowers. The Company economically hedges derivative transactions executed with commercial borrowers by entering into mirror-image, offsetting derivatives with third-party financial institutions. The transaction allows the Company’s customer to convert a variable-rate loan to a fixed rate loan. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts mostly offset each other in earnings. There was no credit valuation loss adjustment arising from the difference in credit worthiness of the commercial loan and financial institution counterparties as of March 31, 2022. The interest income and expense on these mirror image swaps exactly offset each other. The Company has risk participation agreements with dealer banks. Risk participation agreements occur when the Company participates on a loan and a swap where another bank is the lead. The Company gets paid a fee to take on the risk associated with having to make the lead bank whole on Berkshire’s portion of the pro-rated swap should the borrower default. Changes in fair value are recorded in current period earnings. The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings. The Company uses the following types of forward sale commitments contracts: • Best efforts loan sales, • Mandatory delivery loan sales, and • To Be Announced (“TBA”) mortgage-backed securities sales. A best efforts contract refers to a loan sale agreement where the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. The Company may enter into a best efforts contract once the price is known, which is shortly after the potential borrower’s interest rate is locked. A mandatory delivery contract is a loan sale agreement where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer. The Company may sell TBA mortgage-backed securities to hedge the changes in fair value of interest rate lock commitments and held for sale loans, which do not have corresponding best efforts or mandatory delivery contracts. These security sales transactions are closed once mandatory contracts are written. On the closing date the price of the security is locked-in, and the sale is paired-off with a purchase of the same security. Settlement of the security purchase/sale transaction is done with cash on a net-basis. Non-hedging derivatives The Company enters into interest rate lock commitments (“IRLCs”), or commitments to lend, for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s consolidated statements of operations. Changes in the fair value of IRLCs subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows: Three Months Ended March 31, (In thousands) 2022 2021 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain recognized in other non-interest income $ 432 $ 346 Interest rate swaps on loans with commercial loan customers: Unrealized (loss) recognized in other non-interest income (78,698) (60,302) Favorable change in credit valuation adjustment recognized in other non-interest income 867 2,502 Offsetting interest rate swaps on loans with commercial loan customers: Unrealized gain recognized in other non-interest income 78,698 60,302 Risk participation agreements: Unrealized (loss) recognized in other non-interest income (108) (329) Forward commitments: Unrealized (loss)/gain recognized in other non-interest income (127) 6 Realized gain/(loss) in other non-interest income — (6) Non-hedging derivatives Commitments to lend Unrealized (loss) recognized in other non-interest income $ (106) $ (550) Realized gain in other non-interest income 252 1,352 Assets and Liabilities Subject to Enforceable Master Netting Arrangements Interest Rate Swap Agreements (“Swap Agreements”) The Company enters into swap agreements to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral generally in the form of marketable securities is received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds. The Company had net asset positions with its financial institution counterparties totaling $26.7 million and $2.2 million as of March 31, 2022 and December 31, 2021, respectively. The Company had net asset positions with its commercial banking counterparties totaling $22.7 million and $76.8 million as of March 31, 2022 and December 31, 2021, respectively. The Company had net liability positions with its financial institution counterparties totaling $20.3 million and $33.3 million as of March 31, 2022 and December 31, 2021, respectively. The Company had net liability positions with its commercial banking counterparties totaling $25.3 million as of March 31, 2022. The Company had $2.5 million net liability positions with its commercial banking counterparties as of December 31, 2021. The Company has collateral pledged to cover this liability. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of March 31, 2022 and December 31, 2021: Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount March 31, 2022 Interest Rate Swap Agreements: Institutional counterparties $ 26,748 $ (49) $ 26,699 $ — $ — $ 26,699 Commercial counterparties 22,748 — 22,748 — — 22,748 Total $ 49,496 $ (49) $ 49,447 $ — $ — $ 49,447 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount March 31, 2022 Interest Rate Swap Agreements: Institutional counterparties $ (24,005) $ 3,712 $ (20,293) $ 45,288 $ 38,609 $ 63,604 Commercial counterparties (25,288) — (25,288) — — (25,288) Total $ (49,293) $ 3,712 $ (45,581) $ 45,288 $ 38,609 $ 38,316 Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount December 31, 2021 Interest Rate Swap Agreements: Institutional counterparties $ 2,223 $ (75) $ 2,148 $ — $ — $ 2,148 Commercial counterparties 76,809 — 76,809 — — 76,809 Total $ 79,032 $ (75) $ 78,957 $ — $ — $ 78,957 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount December 31, 2021 Interest Rate Swap Agreements: Institutional counterparties $ (78,146) $ 44,814 $ (33,332) $ 34,896 $ 43,694 $ 45,258 Commercial counterparties (2,461) — (2,461) — — (2,461) Total $ (80,607) $ 44,814 $ (35,793) $ 34,896 $ 43,694 $ 42,797 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At March 31, 2022, lease expiration dates ranged from 1 month to 18 years. The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities: (In thousands) March 31, 2022 December 31, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 53,641 $ 52,180 Finance lease right-of-use assets Premises and equipment, net 6,543 6,674 Total Lease Right-of-Use Assets $ 60,184 $ 58,854 Lease Liabilities Operating lease liabilities Other liabilities $ 57,085 $ 55,674 Finance lease liabilities Other liabilities 9,725 9,862 Total Lease Liabilities $ 66,810 $ 65,536 Supplemental information related to leases was as follows: March 31, 2022 December 31, 2021 Weighted-Average Remaining Lease Term (in years) Operating leases 9.5 9.5 Finance leases 12.6 12.8 Weighted-Average Discount Rate Operating leases 2.59 % 2.77 % Finance leases 5.00 % 5.00 % The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not have any material sub-lease agreements. Lease expense for operating leases for the three months ended March 31, 2022 was $2.6 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Lease expense for operating leases for the three months ended March 31, 2021 was $2.8 million.Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,614 $ 3,330 Operating cash flows from finance leases 120 127 Financing cash flows from finance leases 138 131 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2022: (In thousands) Operating Leases Finance Leases 2022 $ 7,499 $ 772 2023 9,192 1,037 2024 7,993 1,037 2025 6,215 1,037 2026 4,992 1,037 Thereafter 28,683 8,187 Total undiscounted lease payments 64,574 13,107 Less amounts representing interest (7,489) (3,382) Lease liability $ 57,085 $ 9,725 |
LEASES | LEASES Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, ATM locations, and office space. Most of the Company’s leases are classified as operating leases. At March 31, 2022, lease expiration dates ranged from 1 month to 18 years. The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities: (In thousands) March 31, 2022 December 31, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 53,641 $ 52,180 Finance lease right-of-use assets Premises and equipment, net 6,543 6,674 Total Lease Right-of-Use Assets $ 60,184 $ 58,854 Lease Liabilities Operating lease liabilities Other liabilities $ 57,085 $ 55,674 Finance lease liabilities Other liabilities 9,725 9,862 Total Lease Liabilities $ 66,810 $ 65,536 Supplemental information related to leases was as follows: March 31, 2022 December 31, 2021 Weighted-Average Remaining Lease Term (in years) Operating leases 9.5 9.5 Finance leases 12.6 12.8 Weighted-Average Discount Rate Operating leases 2.59 % 2.77 % Finance leases 5.00 % 5.00 % The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For real estate leases, non-lease components and other non-components, such as common area maintenance charges, real estate taxes, and insurance are not included in the measurement of the lease liability since they are generally able to be segregated. The Company does not have any material sub-lease agreements. Lease expense for operating leases for the three months ended March 31, 2022 was $2.6 million. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Lease expense for operating leases for the three months ended March 31, 2021 was $2.8 million.Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,614 $ 3,330 Operating cash flows from finance leases 120 127 Financing cash flows from finance leases 138 131 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2022: (In thousands) Operating Leases Finance Leases 2022 $ 7,499 $ 772 2023 9,192 1,037 2024 7,993 1,037 2025 6,215 1,037 2026 4,992 1,037 Thereafter 28,683 8,187 Total undiscounted lease payments 64,574 13,107 Less amounts representing interest (7,489) (3,382) Lease liability $ 57,085 $ 9,725 |
OTHER COMMITMENTS, CONTINGENCIE
OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT | OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT In March 2020, the World Health Organization declared a novel strain of coronavirus ("COVID-19") a global pandemic and the United States declared a National Public Health Emergency. The impact of the COVID-19 pandemic is fluid and continues to evolve, which is adversely affecting some of the Company’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets and has had an adverse effect on the Company’s business, financial condition and results of operations. The ultimate extent of the continuing impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets, and our clients, employees, and vendors. The Company’s business, financial condition and results of operations generally rely upon the ability of the Company’s borrowers to repay their loans, the value of collateral underlying the Company’s secured loans, and demand for loans and other products and services the Company offers, which are highly dependent on the business environment in the Company’s primary markets where it operates and in the United States as a whole. These circumstances could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, results of operations and prospects. Material adverse impacts may include all or a combination of valuation impairments on the Company’s intangible assets, investments, loans, loan servicing rights, deferred tax assets, lease right-of-use assets, or counter-party risk derivatives. |
CAPITAL RATIOS AND SHAREHOLDERS
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | CAPITAL RATIOS AND SHAREHOLDERS’ EQUITY The actual and required capital ratios were as follows: March 31, December 31, Minimum Capital Requirement Company (consolidated) Total capital to risk-weighted assets 16.0 % 17.3 % 8.0 % Common equity tier 1 capital to risk-weighted assets 13.9 15.0 4.5 Tier 1 capital to risk-weighted assets 14.2 15.3 6.0 Tier 1 capital to average assets 10.3 10.5 4.0 March 31, December 31, Regulatory Minimum to be Adequately Capitalized Regulatory Bank Total capital to risk-weighted assets 14.5 % 15.9 % 8.0 % 10.0 % Common equity tier 1 capital to risk-weighted assets 13.5 14.8 4.5 6.5 Tier 1 capital to risk-weighted assets 13.5 14.8 6.0 8.0 Tier 1 capital to average assets 9.8 10.1 4.0 5.0 The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Failure to meet capital requirements can initiate regulatory action. At each date shown, the Company met the minimum capital requirements and the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above. Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common equity Tier 1 capital to risk weighted assets. The Bank's Common equity Tier 1 capital to risk weighted assets exceeds the minimum to be well capitalized. In addition, the final capital rules added a requirement to maintain a minimum conservation buffer, composed of Common equity Tier 1 capital, of 2.5% of risk-weighted assets, to be phased in over three years and applied to the Common equity Tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio, and the Total risk-based capital ratio. As of January 1, 2019, banking organizations must maintain a minimum Common equity Tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5%, and a minimum Total risk-based capital ratio of 10.5%. The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met. At March 31, 2022, the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and the Bank's regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The capital levels of both the Company and the Bank at March 31, 2022 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 2.5%. Accumulated other comprehensive (loss) Components of accumulated other comprehensive (loss) is as follows: (In thousands) March 31, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding loss on AFS securities $ (103,179) $ (1,806) Net unrealized holding (loss) on pension plans (2,518) (2,518) Income taxes related to items of accumulated other comprehensive income: Net unrealized tax benefit on AFS securities 26,786 407 Net unrealized tax benefit on pension plans 674 674 Accumulated other comprehensive loss $ (78,237) $ (3,243) The following table presents the components of other comprehensive (loss) for the three months ended March 31, 2022 and 2021: (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31 , 2022 Net unrealized holding loss on AFS securities: x Net unrealized (losses) arising during the period $ (101,373) $ 26,379 $ (74,994) Less: reclassification adjustment for gains realized in net income — — — Net unrealized holding (loss) on AFS securities (101,373) 26,379 (74,994) Other comprehensive (loss) $ (101,373) $ 26,379 $ (74,994) Three Months Ended March 31 , 2021 Net unrealized holding loss on AFS securities: Net unrealized (losses) arising during the period $ (27,013) $ 6,863 $ (20,150) Less: reclassification adjustment for gains realized in net income — — — Net unrealized holding (loss) on AFS securities (27,013) 6,863 (20,150) Other comprehensive (loss) $ (27,013) $ 6,863 $ (20,150) The following table presents the changes in each component of accumulated other comprehensive (loss), for the three months ended March 31, 2022 and 2021: (In thousands) Net unrealized Net unrealized Total Three Months Ended March 31, 2022 Balance at Beginning of Period $ (1,398) $ (1,845) $ (3,243) Other comprehensive loss before reclassifications (74,994) — (74,994) Less: amounts reclassified from accumulated other comprehensive (loss) — — — Total other comprehensive (loss) (74,994) — (74,994) Balance at End of Period $ (76,392) $ (1,845) $ (78,237) Three Months Ended March 31, 2021 Balance at Beginning of Period $ 33,458 $ (2,587) $ 30,871 Other comprehensive loss before reclassifications (20,150) — (20,150) Less: amounts reclassified from accumulated other comprehensive (loss) — — — Total other comprehensive (loss) (20,150) — (20,150) Balance at End of Period $ 13,308 $ (2,587) $ 10,721 There were no amounts reclassified out of each component of accumulated other comprehensive (loss) for the three months ended March 31, 2022, and 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): Three Months Ended March 31, (In thousands, except per share data) 2022 2021 Net income $ 20,196 $ 13,031 Average number of common shares issued 51,903 51,903 Less: average number of treasury shares 3,494 948 Less: average number of unvested stock award shares 741 625 Average number of basic shares outstanding 47,668 50,330 Plus: dilutive effect of unvested stock award shares 392 235 Plus: dilutive effect of stock options outstanding 7 — Average number of diluted shares outstanding 48,067 50,565 Basic earnings per common share: $ 0.42 $ 0.26 Diluted earnings per common share: $ 0.42 $ 0.26 For the three months ended March 31, 2022, 366 thousand shares of unvested restricted stock and 71 thousand options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. For the three months ended March 31, 2021, 390 thousand shares of unvested restricted stock and all options outstanding were anti-dilutive and therefore excluded from the earnings per share calculation. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS A combined summary of activity in the Company’s stock award and stock option plans for the three months ended March 31, 2022 is presented in the following table: Non-Vested Stock Awards Outstanding Stock Options Outstanding (Shares in thousands) Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Exercise Price December 31, 2021 710 $ 20.16 80 $ 25.21 Granted 139 28.92 — — Acquired — — — — Stock options exercised — — 1 23.30 Stock awards vested (63) 22.09 — — Forfeited (36) 27.12 — — Expired — — (3) 23.34 March 31, 2022 750 $ 21.73 78 $ 25.30 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value. Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. March 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 7,798 $ 7,798 Securities available for sale: U.S Treasuries — 290,609 — 290,609 Municipal bonds and obligations — 70,223 — 70,223 Agency collateralized mortgage obligations — 697,712 — 697,712 Agency residential mortgage-backed securities — 654,386 — 654,386 Agency commercial mortgage-backed securities — 258,324 — 258,324 Corporate bonds — 40,478 4,020 44,498 Other bonds and obligations — 16,823 — 16,823 Marketable equity securities 14,064 655 — 14,719 Loans held for investment at fair value — — 1,197 1,197 Loans held for sale — 300 — 300 Derivative assets — 49,046 25 49,071 Capitalized servicing rights — — 1,786 1,786 Derivative liabilities — 45,809 — 45,809 December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 8,354 $ 8,354 Securities available for sale: U.S Treasuries — 59,973 — 59,973 Municipal bonds and obligations — 77,177 — 77,177 Agency collateralized mortgage obligations — 688,336 — 688,336 Agency residential mortgage-backed securities — 705,859 — 705,859 Agency commercial mortgage-backed securities — 282,334 — 282,334 Corporate bonds — 41,630 4,030 45,660 Other bonds and obligations — 18,246 — 18,246 Marketable equity securities 14,798 655 — 15,453 Loans held for investment at fair value — — 1,200 1,200 Loans held for sale — 6,110 — 6,110 Derivative assets — 79,270 258 79,528 Capitalized servicing rights — — 1,966 1,966 Derivative liabilities — 35,194 — 35,194 There were no transfers between levels during the three months ended March 31, 2022. Trading Security at Fair Value. The Company holds one security designated as a trading security. It is a tax-advantaged economic development bond issued to the Company by a local nonprofit which provides wellness and health programs. The fair value of this security is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable and there is little to no market activity in the security; therefore, the security meets the definition of a Level 3 security. The discount rate used in the valuation of the security is sensitive to movements in the 3-month LIBOR rate. Securities Available for Sale and Marketable Equity Securities . Marketable equity securities classified as Level 1 consist of publicly-traded equity securities for which the fair values can be obtained through quoted market prices in active exchange markets. Marketable equity securities classified as Level 2 consist of securities with infrequent trades in active exchange markets, and pricing is primarily sourced from third party pricing services. AFS securities classified as Level 2 include most of the Company’s debt securities. The pricing on Level 2 and Level 3 was primarily sourced from third party pricing services, overseen by management, and is based on models that consider standard input factors such as dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and condition, among other things. Level 3 pricing includes inputs unobservable to market participants. Loans Held for Investment. The Company’s held for investment loan portfolio includes loans originated by Company and loans acquired through business combinations. The Company intends to hold these assets until maturity as a part of its business operations. For one acquired portfolio subset, the Company previously accounted for these purchased-credit impaired loans as a pool under ASC 310, as they were determined to have common risk characteristics. These loans were recorded at fair value on acquisition date and subsequently evaluated for impairment collectively. Upon adoption of ASC 326, the Company elected the fair value option on this portfolio, recognizing an $11.2 million fair value write-down charged to Retained Earnings, net of deferred tax impact, as of January 1, 2020. The fair value of this loan portfolio is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable; therefore, the loans meet the definition of Level 3 assets. The discount rate used in the valuation is consistent with assets that have significant credit deterioration. The cash flow assumptions include payment schedules for loans with current payment histories and estimated collateral value for delinquent loans. All of these loans were nonperforming as of March 31, 2022. Aggregate Fair Value March 31, 2022 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 1,197 $ 23,148 $ (21,951) Aggregate Fair Value December 31, 2021 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 1,200 $ 31,430 $ (30,230) Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets. Aggregate Fair Value March 31, 2022 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 300 $ 291 $ 9 Aggregate Fair Value December 31, 2021 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 6,110 $ 5,926 $ 184 The changes in fair value of loans held for sale for the three months ended March 31, 2022, were losses of $175 thousand. During the three ended March 31, 2022, originations of loans held for sale totaled $7.4 million and sales of loans originated for sale totaled $13.1 million. The changes in fair value of loans held for sale for the three months ended March 31, 2021, were gains of $6 thousand. During the three months ended March 31, 2021, originations of loans held for sale totaled $44.0 million and sales of loans originated for sale totaled $46.9 million. Interest Rate Swaps. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of March 31, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Commitments to Lend. The Company enters into commitments to lend for residential mortgage loans intended for sale, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close, and by the non-refundable costs of originating the loan. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. The costs to originate are primarily based on the Company’s internal commission rates that are not observable. As such, these commitments are classified as Level 3 measurements. Forward Sale Commitments . The Company utilizes forward sale commitments as economic hedges against potential changes in the values of the commitments to lend and loans originated for sale. To Be Announced (“TBA”) mortgage-backed securities forward commitment sales are used as the hedging instrument, are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of the Company’s best efforts and mandatory delivery loan sale commitments are determined similarly to the commitments to lend using quoted prices in the market place that are observable. However, costs to originate and closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are considered factors that are not observable. As such, best efforts and mandatory forward commitments are classified as Level 3 measurements. Capitalized Servicing Rights. The Company accounts for certain capitalized servicing rights at fair value in its Consolidated Financial Statements, as the Company is permitted to elect the fair value option for each specific instrument. A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021. Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Security for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2022 December 31, 2021 $ 8,354 $ 4,030 $ 1,200 $ 124 $ 134 $ 1,966 Unrealized (loss)/gain, net recognized in other non-interest income (354) — 209 70 (127) (180) Unrealized gain included in accumulated other comprehensive income — (10) — — — — Unrealized gain/(loss), net recognized in discontinued operations — — — — — — Paydown of asset (202) — (212) — — — Transfers to held for sale loans — — — (176) — — March 31, 2022 $ 7,798 $ 4,020 $ 1,197 $ 18 $ 7 $ 1,786 Unrealized gain relating to instruments still held at March 31, 2022 $ 121 $ 20 $ — $ 18 $ 7 $ — Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Security for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2021 December 31, 2020 $ 9,708 $ 15,000 $ 2,265 $ 735 $ 320 $ 3,033 Maturities, calls, and prepayments of AFS security — (15,000) — — — — Unrealized (loss)/gain, net recognized in other non-interest income (166) — 414 818 6 (65) Paydown of asset (192) — (1,231) — — — Transfers to held for sale loans — — — (1,368) — — Additions to servicing rights — — — — — — March 31, 2021 $ 9,350 $ — $ 1,448 $ 185 $ 326 $ 2,968 Unrealized gains relating to instruments still held at March 31,2021 $ 887 $ — $ — $ 185 $ 326 $ — Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant (In thousands) March 31, 2022 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 7,798 Discounted Cash Flow Discount Rate 4.32 % AFS Securities 4,020 Indication from Market Maker Price 101.00% Loans held for investment 1,197 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $6.3 - $16.9 Commitments to lend 18 Historical Trend Closing Ratio 80.00 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 7 Historical Trend Closing Ratio 80.00 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,786 Discounted cash flow Constant Prepayment Rate (CPR) 12.55 % Discount Rate 9.01 % Total $ 14,826 Fair Value Significant (In thousands) December 31, 2021 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 8,354 Discounted Cash Flow Discount Rate 3.35 % AFS Securities 4,030 Indication from Market Maker Price 101.00 % Loans held for investment 1,200 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $6.3- $19.8 Commitments to lend 124 Historical Trend Closing Ratio 82.09 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 134 Historical Trend Closing Ratio 82.09 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,966 Discounted Cash Flow Constant Prepayment Rate (CPR) 19.41 % Discount Rate 9.50 % Total $ 15,808 Non-Recurring Fair Value Measurements The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis. March 31, 2022 December 31, 2021 Fair Value Measurement Date as of March 31, 2022 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Assets Individually evaluated $ 8,192 $ 12,482 March 2022 Capitalized servicing rights 13,579 14,056 March 2022 Total $ 21,771 $ 26,538 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) March 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 8,192 Fair Value of Collateral Discounted Cash Flow - Loss Severity (100.00)% to 102.24% ((45.07)%) Appraised Value $0 to $4,319 ($2,497) Capitalized servicing rights 13,579 Discounted Cash Flow Constant Prepayment Rate (CPR) 6.16% to 13.64% (11.51%) Discount Rate 9.09% to 11.74% (10.83%) Total $ 21,771 (1) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value (In thousands) December 31, 2021 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 12,482 Fair Value of Collateral Discounted Cash Flow - loss severity (35.96)% to 133.09% ((49.14)%) Appraised Value $0 to $405 ($256) Capitalized servicing rights 14,056 Discounted Cash Flow Constant Prepayment Rate (CPR) 6.24% to 17.73% (13.29%) Discount Rate 9.59% to 13.11% (11.97%) Total $ 26,538 (1) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. There were no Level 1 or Level 2 nonrecurring fair value measurements for the periods ended March 31, 2022 and December 31, 2021. Individually evaluated loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Capitalized loan servicing rights . A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. Summary of Estimated Fair Values of Financial Instruments The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. March 31, 2022 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,607,251 $ 1,607,251 $ 1,607,251 $ — $ — Trading security 7,798 7,798 — — 7,798 Marketable equity securities 14,719 14,719 14,064 655 — Securities available for sale 2,032,575 2,032,575 — 2,028,555 4,020 Securities held to maturity 612,174 580,538 — 578,021 2,517 FHLB bank stock and restricted securities 10,829 N/A N/A N/A N/A Net loans 7,167,848 7,224,588 — — 7,224,588 Loans held for sale 300 300 — 300 — Accrued interest receivable 33,813 33,813 — 33,813 — Derivative assets 49,071 49,071 — 49,046 25 Financial Liabilities Total deposits $ 10,699,208 $ 10,683,261 $ — $ 10,683,261 $ — Short-term debt — — — — — Long-term Federal Home Loan Bank advances and other 14,563 13,487 — 13,487 — Subordinated borrowings 97,569 94,267 — 94,267 — Derivative liabilities 45,809 45,809 — 45,809 — December 31, 2021 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,627,807 $ 1,627,807 $ 1,627,807 $ — $ — Trading security 8,354 8,354 — — 8,354 Marketable equity securities 15,453 15,453 14,798 655 — Securities available for sale and other 1,877,585 1,877,585 — 1,873,555 4,030 Securities held to maturity 636,503 647,236 — 644,497 2,739 FHLB bank stock and restricted securities 10,800 N/A N/A N/A N/A Net loans 6,719,753 6,850,975 — — 6,850,975 Loans held for sale 6,110 6,110 — 6,110 — Accrued interest receivable 33,534 33,534 — 33,534 — Derivative assets 79,528 79,528 — 79,270 258 Financial Liabilities Total deposits $ 10,068,953 $ 10,073,217 $ — $ 10,073,217 $ — Short-term debt — — — — — Long-term Federal Home Loan Bank advances 13,331 13,053 — 13,053 — Subordinated borrowings 97,513 95,006 — 95,006 — Derivative liabilities 35,194 35,194 — 35,194 — |
NET INTEREST INCOME AFTER BENEF
NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES | NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES Presented below is net interest income after provision for credit losses for the three months ended March 31, 2022 and 2021, respectively. Three Months Ended March 31, (In thousands) 2022 2021 Net interest income $ 69,063 $ 75,093 (Benefit)/provision for credit losses (4,000) 6,500 Net interest after provision for credit losses $ 73,063 $ 68,593 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The Consolidated Financial Statements (the “financial statements”) of Berkshire Hills Bancorp, Inc. and its subsidiaries (the “Company” or “Berkshire”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company is a Delaware corporation, headquartered in Boston, Massachusetts, and the holding company for Berkshire Bank (the “Bank”), a Massachusetts-chartered trust company headquartered in Pittsfield, Massachusetts. These financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Bank’s consolidated subsidiaries. In consolidation, all significant intercompany accounts and transactions are eliminated. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless GAAP requires otherwise. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these financial statements were issued. These interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and disclosures Berkshire Hills Bancorp, Inc. previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates. Refer to Note 9 – Other Commitments, Contingencies, Off-Balance Sheet Activities, and Pandemic Impact for pandemic related risks and uncertainties. |
Recently Adopted Accounting Principles and Future Application of Accounting Pronouncements | Recently Adopted Accounting Principles There were no new applicable material accounting pronouncements adopted by the Company since December 31, 2021. Future Application of Accounting Pronouncements In March 2022, the FASB issued ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method.” The guidance expands the current last-of-layer method to allow multiple hedge layers of a single closed portfolio (renamed to portfolio layer method) and expands the portfolio layer method to include nonprepayable financial assets. The ASU specifies eligible hedging instruments in a single-layer hedge and provides additional guidance on accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method. Further, hedge basis adjustments should be considered when determining credit losses for assets included in the closed portfolio. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” The ASU eliminates the troubled debt restructuring (“TDR”) accounting model that was adopted with Topic 326, “Financial Instruments – Credit Losses” and enhances disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. The ASU requires prospective disclosure of current-period gross write-offs by year of origination. The amendments in this ASU are effective for fiscal years ending after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted and the Company can elect to adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is still evaluating; however, the adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements. |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Securities Available for Sale, Held to Maturity, and Marketable Equity Securities | The following is a summary of securities available for sale, held to maturity, and marketable equity securities: (In thousands) Amortized Cost Gross Gross Fair Value Allowance March 31, 2022 Securities available for sale U.S Treasuries $ 290,656 $ 31 $ (78) $ 290,609 Municipal bonds and obligations 68,624 2,039 (440) 70,223 — Agency collateralized mortgage obligations 740,928 68 (43,284) 697,712 — Agency mortgage-backed securities 702,903 50 (48,567) 654,386 — Agency commercial mortgage-backed securities 273,144 100 (14,920) 258,324 — Corporate bonds 44,803 373 (678) 44,498 — Other bonds and obligations 16,790 77 (44) 16,823 — Total securities available for sale 2,137,848 2,738 (108,011) 2,032,575 — Securities held to maturity Municipal bonds and obligations 271,466 5,462 (11,963) 264,965 67 Agency collateralized mortgage obligations 143,170 618 (9,741) 134,047 — Agency mortgage-backed securities 55,058 — (5,353) 49,705 — Agency commercial mortgage-backed securities 139,751 — (10,611) 129,140 — Tax advantaged economic development bonds 2,564 15 (63) 2,516 32 Other bonds and obligations 165 — — 165 — Total securities held to maturity 612,174 6,095 (37,731) 580,538 99 Marketable equity securities 15,690 109 (1,080) 14,719 — Total $ 2,765,712 $ 8,942 $ (146,822) $ 2,627,832 $ 99 (In thousands) Amortized Cost Gross Gross Fair Value Allowance December 31, 2021 Securities available for sale U.S Treasuries $ 59,972 $ 1 $ — $ 59,973 $ — Municipal bonds and obligations 71,822 5,355 — 77,177 — Agency collateralized mortgage obligations 693,782 5,566 (11,012) 688,336 — Agency mortgage-backed securities 711,154 2,347 (7,642) 705,859 — Agency commercial mortgage-backed securities 282,958 2,996 (3,620) 282,334 — Corporate bonds 44,824 950 (114) 45,660 — Other bonds and obligations 17,301 953 (8) 18,246 — Total securities available for sale 1,881,813 18,168 (22,396) 1,877,585 — Securities held to maturity Municipal bonds and obligations 281,515 16,151 (693) 296,973 70 Agency collateralized mortgage obligations 149,195 3,203 (3,513) 148,885 — Agency mortgage-backed securities 57,327 95 (1,498) 55,924 — Agency commercial mortgage-backed securities 145,573 266 (3,289) 142,550 — Tax advantaged economic development bonds 2,728 26 (15) 2,739 35 Other bonds and obligations 165 — — 165 — Total securities held to maturity 636,503 19,741 (9,008) 647,236 105 Marketable equity securities 15,689 67 (303) 15,453 — Total $ 2,534,005 $ 37,979 $ (31,707) $ 2,540,274 $ 105 |
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table summarizes the activity in the allowance for credit losses for debt securities held to maturity by security type for the three months ended March 31, 2022 and 2021: (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2021 $ 70 $ 35 $ 105 Provision for credit losses - reversal (3) (3) (6) Balance at March 31, 2022 $ 67 $ 32 $ 99 (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2020 $ 64 $ 40 $ 104 Provision for credit losses 7 — 7 Balance at March 31, 2021 $ 71 $ 40 $ 111 |
Schedule of Estimated Fair Value of Available for Sale (“AFS”) and Held to Maturity (“HTM”) Securities Segregated by Contractual Maturity | The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at March 31, 2022 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale Held to maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within 1 year $ 292,101 $ 292,057 $ 1,717 $ 1,718 Over 1 year to 5 years 7,941 8,007 2,783 2,799 Over 5 years to 10 years 48,905 48,853 21,186 21,602 Over 10 years 71,926 73,236 248,509 241,527 Total bonds and obligations 420,873 422,153 274,195 267,646 Mortgage-backed securities 1,716,975 1,610,422 337,979 312,892 Total $ 2,137,848 $ 2,032,575 $ 612,174 $ 580,538 |
Schedule of Securities Available for Sale and Held to Maturity with Unrealized Losses, Segregated by Duration | Securities available for sale and held to maturity with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (In thousands) Losses Value Losses Value Losses Value March 31, 2022 Securities available for sale U.S Treasuries $ 78 $ 140,643 $ — $ — $ 78 $ 140,643 Municipal bonds and obligations 440 10,695 — — 440 10,695 Agency collateralized mortgage obligations 38,150 637,494 5,134 38,740 43,284 676,234 Agency mortgage-backed securities 24,058 414,665 24,509 233,313 48,567 647,978 Agency commercial mortgage-backed securities 8,380 178,298 6,540 69,180 14,920 247,478 Corporate bonds 678 16,533 — — 678 16,533 Other bonds and obligations 35 6,049 9 594 44 6,643 Total securities available for sale $ 71,819 $ 1,404,377 $ 36,192 $ 341,827 $ 108,011 $ 1,746,204 Securities held to maturity Municipal bonds and obligations $ 10,422 $ 43,645 $ 1,541 $ 5,249 $ 11,963 $ 48,894 Agency collateralized mortgage obligations 5,863 48,246 3,878 32,979 9,741 81,225 Agency mortgage-backed securities 73 2,925 5,280 46,780 5,353 49,705 Agency commercial mortgage-backed securities 5,524 77,044 5,087 52,095 10,611 129,139 Tax advantaged economic development bonds 63 1,171 — — 63 1,171 Total securities held to maturity 21,945 173,031 15,786 137,103 37,731 310,134 Total $ 93,764 $ 1,577,408 $ 51,978 $ 478,930 $ 145,742 $ 2,056,338 December 31, 2021 Securities available for sale Agency collateralized mortgage obligations $ 9,626 $ 375,132 $ 1,386 $ 27,025 $ 11,012 $ 402,157 Agency mortgage-backed securities 3,179 222,887 4,463 175,941 7,642 398,828 Agency commercial mortgage-backed securities 1,609 103,354 2,011 48,619 3,620 151,973 Corporate bonds 114 11,115 — — 114 11,115 Other bonds and obligations — — 8 694 8 694 Total securities available for sale $ 14,528 $ 712,488 $ 7,868 $ 252,279 $ 22,396 $ 964,767 Securities held to maturity Municipal bonds and obligations $ 693 $ 36,981 $ — $ — $ 693 $ 36,981 Agency collateralized mortgage obligations 1,808 49,308 1,705 36,212 3,513 85,520 Agency mortgage-backed securities 839 26,656 659 26,025 1,498 52,681 Agency commercial mortgage-backed securities 1,255 80,406 2,034 51,654 3,289 132,060 Tax advantaged economic development bonds 15 1,255 — — 15 1,255 Total securities held to maturity 4,610 194,606 4,398 113,891 9,008 308,497 Total $ 19,138 $ 907,094 $ 12,266 $ 366,170 $ 31,404 $ 1,273,264 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Loans | The following is a summary of total loans by regulatory call report code with sub-segmentation based on underlying collateral for certain loan types: (In thousands) March 31, 2022 December 31, 2021 Construction $ 310,778 $ 324,282 Commercial multifamily 640,922 515,817 Commercial real estate owner occupied 609,526 606,477 Commercial real estate non-owner occupied 2,207,124 2,156,929 Commercial and industrial 1,350,752 1,284,429 Residential real estate 1,665,304 1,489,248 Home equity 244,649 252,366 Consumer other 238,268 196,299 Total loans $ 7,267,323 $ 6,825,847 Allowance for credit losses 99,475 106,094 Net loans $ 7,167,848 $ 6,719,753 |
Schedule of Allowance for Credit Losses for Loans, Activity | The Company’s activity in the allowance for credit losses for loans for the three months ended March 31, 2022 and March 31, 2021 was as follows: (In thousands) Balance at Beginning of Period Charge-offs Recoveries Provision for Credit Losses Balance at End of Period Three months ended March 31, 2022 Construction $ 3,206 $ — $ — $ (701) $ 2,505 Commercial multifamily 6,120 — — (349) 5,771 Commercial real estate owner occupied 12,752 (130) 209 (1,333) 11,498 Commercial real estate non-owner occupied 32,106 (4,884) 1,266 (2,674) 25,814 Commercial and industrial 22,584 (653) 1,288 (270) 22,949 Residential real estate 22,406 (164) 388 (4,814) 17,816 Home equity 4,006 — 134 (837) 3,303 Consumer other 2,914 (216) 137 6,984 9,819 Total allowance for credit losses $ 106,094 $ (6,047) $ 3,422 $ (3,994) $ 99,475 (In thousands) Balance at Beginning of Period Charge-offs Recoveries Provision for Credit Losses Balance at End of Period Three months ended March 31, 2021 Construction $ 5,111 $ — $ — $ (714) $ 4,397 Commercial multifamily 5,916 (124) 62 497 6,351 Commercial real estate owner occupied 12,380 (376) 12 2,241 14,257 Commercial real estate non-owner occupied 35,850 (6,658) 126 5,243 34,561 Commercial and industrial 25,013 (3,320) 644 3,734 26,071 Residential real estate 28,491 (377) 437 (2,751) 25,800 Home equity 6,482 (77) 24 (680) 5,749 Consumer other 8,059 (528) 160 (1,077) 6,614 Total allowance for credit losses $ 127,302 $ (11,460) $ 1,465 $ 6,493 $ 123,800 |
Schedule of Allowance for Credit Losses on Unfunded Loan Commitments, Activity | The Company’s activity in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2022 and March 31, 2021 was as follows: Three Months Ended (In thousands) 2022 2021 Balance at beginning of period $ 7,043 $ 7,629 Expense for credit losses — 200 Balance at end of period $ 7,043 $ 7,829 |
Schedule of Loans by Risk Rating | The following table presents the Company’s loans by risk category: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2022 Construction Risk rating Pass $ 23,309 $ 101,236 $ 28,394 $ 90,605 $ 33,505 $ 4,932 $ 49 $ — $ 282,030 Special Mention — — — — — — — — — Substandard — — — — 28,748 — — — 28,748 Total $ 23,309 $ 101,236 $ 28,394 $ 90,605 $ 62,253 $ 4,932 $ 49 $ — $ 310,778 Commercial multifamily: Risk rating Pass $ 125,302 $ 63,610 $ 28,023 $ 119,128 $ 69,248 $ 225,003 $ 769 $ — $ 631,083 Special Mention — — 2,682 — 5,578 — — — 8,260 Substandard — — — — — 1,445 134 — 1,579 Total $ 125,302 $ 63,610 $ 30,705 $ 119,128 $ 74,826 $ 226,448 $ 903 $ — $ 640,922 Commercial real estate owner occupied: Risk rating Pass $ 26,695 $ 147,396 $ 49,844 $ 85,077 $ 87,214 $ 195,950 $ 3,344 $ — $ 595,520 Special Mention — — 396 1,609 262 1,395 — — 3,662 Substandard — — 116 856 1,576 7,796 — — 10,344 Total $ 26,695 $ 147,396 $ 50,356 $ 87,542 $ 89,052 $ 205,141 $ 3,344 $ — $ 609,526 Commercial real estate non-owner occupied: Risk rating Pass $ 228,720 $ 425,619 $ 169,251 $ 260,590 $ 333,773 $ 667,716 $ 18,161 $ — $ 2,103,830 Special Mention — — — 11,119 13,737 29,310 — — 54,166 Substandard — — 7,504 — 3,066 38,459 99 — 49,128 Total $ 228,720 $ 425,619 $ 176,755 $ 271,709 $ 350,576 $ 735,485 $ 18,260 $ — $ 2,207,124 Commercial and industrial: Risk rating Pass $ 76,088 $ 182,930 $ 110,615 $ 93,214 $ 132,957 $ 167,828 $ 519,051 $ — $ 1,282,683 Special Mention — — 1,296 9,857 3,157 1,244 19,264 — 34,818 Substandard — 465 2,416 8,128 2,781 4,285 14,949 — 33,024 Doubtful — — — — — 14 213 — 227 Total $ 76,088 $ 183,395 $ 114,327 $ 111,199 $ 138,895 $ 173,371 $ 553,477 $ — $ 1,350,752 Residential real estate Risk rating Pass $ 225,079 $ 259,363 $ 107,629 $ 81,674 $ 153,406 $ 820,956 $ 291 $ — $ 1,648,398 Special Mention — — 328 — — 499 — — 827 Substandard — 854 13 425 2,031 12,756 — — 16,079 Total $ 225,079 $ 260,217 $ 107,970 $ 82,099 $ 155,437 $ 834,211 $ 291 $ — $ 1,665,304 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2021 Construction Risk rating Pass $ 71,784 $ 52,725 $ 117,784 $ 66,950 $ 3,839 $ 1,721 $ 50 $ — $ 314,853 Special Mention — — — — — — — — — Substandard — — — 9,429 — — — — 9,429 Total $ 71,784 $ 52,725 $ 117,784 $ 76,379 $ 3,839 $ 1,721 $ 50 $ — $ 324,282 Commercial multifamily: Risk rating Pass $ 63,630 $ 28,172 $ 98,455 $ 59,720 $ 76,699 $ 176,020 $ 457 $ — $ 503,153 Special Mention — 2,700 — 5,598 — — — — 8,298 Substandard — — — — — 4,230 136 — 4,366 Total $ 63,630 $ 30,872 $ 98,455 $ 65,318 $ 76,699 $ 180,250 $ 593 $ — $ 515,817 Commercial real estate owner occupied: Risk rating Pass $ 154,434 $ 50,236 $ 85,687 $ 91,316 $ 45,995 $ 157,346 $ 3,206 $ — $ 588,220 Special Mention — 525 869 1,668 1,405 1,157 — — 5,624 Substandard — — 2,113 1,593 838 8,089 — — 12,633 Total $ 154,434 $ 50,761 $ 88,669 $ 94,577 $ 48,238 $ 166,592 $ 3,206 $ — $ 606,477 Commercial real estate non-owner occupied: Risk rating Pass $ 426,086 $ 176,172 $ 296,985 $ 349,947 $ 204,043 $ 585,044 $ 19,511 $ — $ 2,057,788 Special Mention — 221 3,472 7,632 2,302 27,268 — — 40,895 Substandard — 7,588 — 2,784 33,472 14,303 99 — 58,246 Total $ 426,086 $ 183,981 $ 300,457 $ 360,363 $ 239,817 $ 626,615 $ 19,610 $ — $ 2,156,929 Commercial and industrial: Risk rating Pass $ 187,257 $ 130,520 $ 114,153 $ 156,443 $ 54,190 $ 136,837 $ 424,393 $ — $ 1,203,793 Special Mention 661 1,691 10,824 5,092 1,433 488 22,468 — 42,657 Substandard 211 2,494 9,609 3,145 2,020 2,330 17,935 — 37,744 Doubtful — — — — — 15 220 — 235 Total $ 188,129 $ 134,705 $ 134,586 $ 164,680 $ 57,643 $ 139,670 $ 465,016 $ — $ 1,284,429 Residential real estate Risk rating Pass $ 214,306 $ 114,536 $ 86,997 $ 169,537 $ 189,980 $ 697,401 $ 293 $ — $ 1,473,050 Special Mention — — — 120 502 1,557 — — 2,179 Substandard 1,239 — 142 1,849 2,161 8,628 — — 14,019 Total $ 215,545 $ 114,536 $ 87,139 $ 171,506 $ 192,643 $ 707,586 $ 293 $ — $ 1,489,248 For home equity and consumer other loan portfolio segments, Berkshire evaluates credit quality based on the aging status of the loan and by payment activity. The performing or nonperforming status is updated on an ongoing basis dependent upon improvement and deterioration in credit quality. The following table presents the amortized cost based on payment activity: Term Loans Amortized Cost Basis by Origination Year (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2022 Home equity: Payment performance Performing $ — $ 122 $ 464 $ — $ — $ 22 $ 242,052 $ — $ 242,660 Nonperforming — — — — — — 1,989 — 1,989 Total $ — $ 122 $ 464 $ — $ — $ 22 $ 244,041 $ — $ 244,649 Consumer other: Payment performance Performing $ 68,740 $ 35,602 $ 10,303 $ 18,878 $ 48,084 $ 47,445 $ 6,902 $ — $ 235,954 Nonperforming — 92 39 263 733 1,167 20 — 2,314 Total $ 68,740 $ 35,694 $ 10,342 $ 19,141 $ 48,817 $ 48,612 $ 6,922 $ — $ 238,268 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2021 Home equity: Payment performance Performing $ 125 $ 469 $ — $ — $ — $ 24 $ 249,590 $ — $ 250,208 Nonperforming — — — — — — 2,158 — 2,158 Total $ 125 $ 469 $ — $ — $ — $ 24 $ 251,748 $ — $ 252,366 Consumer other: Payment performance Performing $ 37,994 $ 11,189 $ 21,548 $ 55,577 $ 30,632 $ 28,797 $ 7,505 $ — $ 193,242 Nonperforming 8 46 290 797 746 1,139 31 — 3,057 Total $ 38,002 $ 11,235 $ 21,838 $ 56,374 $ 31,378 $ 29,936 $ 7,536 $ — $ 196,299 The following table summarizes information about total loans rated Special Mention or lower at March 31, 2022 and December 31, 2021. The table below includes consumer loans that are Special Mention and Substandard accruing that are classified as performing based on payment activity. (In thousands) March 31, 2022 December 31, 2021 Non-Accrual $ 29,681 $ 35,326 Substandard Accruing 113,755 106,560 Total Classified 143,436 141,886 Special Mention 101,992 100,071 Total Criticized $ 245,428 $ 241,957 |
Summary of Past Due Loans | The following is a summary of loans by past due status at March 31, 2022 and December 31, 2021: (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans March 31, 2022 Construction $ — $ — $ — $ — $ 310,778 $ 310,778 Commercial multifamily — — 182 182 640,740 640,922 Commercial real estate owner occupied 225 — 4,263 4,488 605,038 609,526 Commercial real estate non-owner occupied 2,342 26 4,923 7,291 2,199,833 2,207,124 Commercial and industrial 3,979 476 7,450 11,905 1,338,847 1,350,752 Residential real estate 3,821 828 15,263 19,912 1,645,392 1,665,304 Home equity 188 70 1,989 2,247 242,402 244,649 Consumer other 1,366 198 2,224 3,788 234,480 238,268 Total $ 11,921 $ 1,598 $ 36,294 $ 49,813 $ 7,217,510 $ 7,267,323 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans December 31, 2021 Construction $ — $ — $ — $ — $ 324,282 $ 324,282 Commercial multifamily 82 306 187 575 515,242 515,817 Commercial real estate owner occupied — 400 4,221 4,621 601,856 606,477 Commercial real estate non-owner occupied 25,420 653 9,049 35,122 2,121,807 2,156,929 Commercial and industrial 2,700 709 6,836 10,245 1,274,184 1,284,429 Residential real estate 5,529 2,015 13,264 20,808 1,468,440 1,489,248 Home equity 258 108 2,158 2,524 249,842 252,366 Consumer other 1,363 320 2,882 4,565 191,734 196,299 Total $ 35,352 $ 4,511 $ 38,597 $ 78,460 $ 6,747,387 $ 6,825,847 |
Summary of Loans on Nonaccrual Status and Loans Past Due | The following is a summary of loans on nonaccrual status and loans past due 90 days or more and still accruing as of March 31, 2022 and December 31, 2021: (In thousands) Nonaccrual Amortized Cost Nonaccrual With No Related Allowance Past Due 90 Days or Greater and Accruing Interest Income Recognized on Nonaccrual At or for the three months ended March 31, 2022 Construction $ — $ — $ — $ — Commercial multifamily 182 182 — — Commercial real estate owner occupied 3,726 2,477 537 — Commercial real estate non-owner occupied 4,751 94 172 — Commercial and industrial 5,619 746 1,831 — Residential real estate 11,678 6,946 3,585 — Home equity 1,719 132 270 — Consumer other 2,006 4 218 — Total $ 29,681 $ 10,581 $ 6,613 $ — The commercial and industrial loans nonaccrual amortized cost as of March 31, 2022 included medallion loans with a fair value of $1.2 million and a contractual balance of $23.1 million. (In thousands) Nonaccrual Amortized Cost Nonaccrual With No Related Allowance Past Due 90 Days or Greater and Accruing Interest Income Recognized on Nonaccrual At or for the three months ended December 31, 2021 Construction $ — $ — $ — $ — Commercial multifamily 187 187 — — Commercial real estate owner occupied 4,221 2,413 — — Commercial real estate non-owner occupied 8,877 8,412 172 — Commercial and industrial 6,747 1,506 89 — Residential real estate 10,698 6,511 2,566 — Home equity 1,901 141 257 — Consumer other 2,695 4 187 — Total $ 35,326 $ 19,174 $ 3,271 $ — |
Schedule of Collateral Dependent Loans | The following table presents the amortized cost basis of individually analyzed collateral-dependent loans by loan portfolio segment: Type of Collateral (In thousands) Real Estate Investment Securities/Cash Other March 31, 2022 Construction $ 9,429 $ — $ — Commercial multifamily 184 — — Commercial real estate owner occupied 3,628 — — Commercial real estate non-owner occupied 5,481 — — Commercial and industrial 623 — 1,040 Residential real estate 6,563 — — Home equity 253 — — Consumer other 6 — — Total loans $ 26,167 $ — $ 1,040 December 31, 2021 Construction $ 9,429 $ — $ — Commercial multifamily 188 — — Commercial real estate owner occupied 4,466 — — Commercial real estate non-owner occupied 9,501 — — Commercial and industrial 526 — 1,040 Residential real estate 7,035 — — Home equity 262 — — Consumer other 2 — — Total loans $ 31,409 $ — $ 1,040 |
Schedule of Troubled Debt Restructurings, Activity | The following table presents activity in TDRs for the three months ended March 31, 2022 and March 31, 2021: (In thousands) Balance at Beginning of Period Principal Payments TDR Status Change Other Additions/(Reductions) Newly Identified TDRs Balance at End of Period Three months ended March 31, 2022 Construction $ 9,429 $ — $ — $ — $ — $ 9,429 Commercial multifamily 703 (9) — — — 694 Commercial real estate owner occupied 2,733 (9) — — — 2,724 Commercial real estate non-owner occupied 9,310 — — (8,312) — 998 Commercial and industrial 3,656 (51) — (13) — 3,592 Residential real estate 1,117 (8) — — — 1,109 Home equity 121 (2) — — 50 169 Consumer other 33 (1) — — — 32 Total $ 27,102 $ (80) $ — $ (8,325) $ 50 $ 18,747 (In thousands) Balance at Beginning of Period Principal Payments TDR Status Change Other Additions/(Reductions) Newly Identified TDRs Balance at End of Period Three months ended March 31, 2021 Construction $ — $ — $ — $ — $ — $ — Commercial multifamily 754 (13) — — — 741 Commercial real estate owner occupied 1,731 (6) — — — 1,725 Commercial real estate non-owner occupied 13,684 (14) — 511 544 14,725 Commercial and industrial 2,686 (199) — — 146 2,633 Residential real estate 1,524 (31) — — — 1,493 Home equity 133 (3) — — — 130 Consumer other 36 (2) — — — 34 Total $ 20,548 $ (268) $ — $ 511 $ 690 $ 21,481 |
Schedule of Loans Modified as TDRs | The following table presents loans modified as TDRs that occurred during the three months ended March 31, 2022 and 2021: (dollars in thousands) Total Three months ended March 31, 2022 TDR: Number of loans 1 Pre-modification outstanding recorded investment $ 50 Post-modification outstanding recorded investment $ 50 Three months ended March 31, 2021 TDR: Number of loans 4 Pre-modification outstanding recorded investment $ 690 Post-modification outstanding recorded investment $ 690 The following table presents loans by portfolio segment modified as TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2022: (in thousands) Number of Loans Recorded Investment Three months ended March 31, 2022 Commercial and industrial 1 $ 105 Total 1 $ 105 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Time Deposits | A summary of time deposits is as follows: (In thousands) March 31, December 31, Time less than $100,000 $ 543,728 $ 676,979 Time $100,000 through $250,000 623,928 610,174 Time more than $250,000 361,266 391,787 Total time deposits $ 1,528,922 $ 1,678,940 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at March 31, 2022 and December 31, 2021 are summarized, as follows: March 31, 2022 December 31, 2021 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLB $ — — % $ — — % Total short-term borrowings: — — — — Long-term borrowings: Advances from the FHLB and other borrowings 14,563 1.60 13,331 1.75 Subordinated borrowings 74,633 7.00 74,590 7.00 Junior subordinated borrowing - Trust I 15,464 2.33 15,464 2.01 Junior subordinated borrowing - Trust II 7,472 2.53 7,459 1.90 Total long-term borrowings: 112,132 5.36 110,844 5.33 Total $ 112,132 5.36 % $ 110,844 5.33 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLB advances as of March 31, 2022 is as follows: March 31, 2022 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2022 $ 3,999 2.04 % 2023 — — 2024 35 — 2025 5,971 1.99 2025 and beyond 4,558 0.72 Total FHLB advances $ 14,563 1.60 % |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities | Information about derivative assets and liabilities at March 31, 2022, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 7,677 7.7 0.60 % 5.09 % $ (726) Interest rate swaps on loans with commercial loan customers 1,688,052 6.0 3.97 % 2.01 % (2,540) Offsetting interest rate swaps on loans with commercial loan customers (1) 1,688,052 6.0 2.01 % 3.97 % 6,179 Risk participation agreements with dealer banks 329,679 5.5 324 Forward sale commitments 307 0.2 7 Total economic hedges 3,713,767 3,244 Non-hedging derivatives: Commitments to lend 1,184 0.2 18 Total non-hedging derivatives 1,184 18 Total $ 3,714,951 $ 3,262 (1) Fair value estimates include the impact of $3.4 million settled to market contract agreements. Information about derivative assets and liabilities at December 31, 2021, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Economic hedges: Interest rate swap on tax advantaged economic development bond $ 7,879 7.9 0.47 % 5.09 % $ (1,158) Interest rate swaps on loans with commercial loan customers 1,684,238 5.8 3.99 % 1.91 % 74,348 Offsetting interest rate swaps on loans with commercial loan customers (1) 1,684,238 5.8 1.91 % 3.99 % (30,454) Risk participation agreements with dealer banks 320,981 5.8 432 Forward sale commitments 6,377 0.2 134 Total economic hedges 3,703,713 43,302 Non-hedging derivatives: Commitments to lend 8,192 0.2 124 Total non-hedging derivatives 8,192 124 Total $ 3,711,905 $ 43,426 (1) Fair value estimates include the impact of $45.7 million settled to market contract agreements. |
Schedule of Amounts Included in the Consolidated Statements of Income Related to Economic Hedges and Non-Hedging Derivatives | Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows: Three Months Ended March 31, (In thousands) 2022 2021 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain recognized in other non-interest income $ 432 $ 346 Interest rate swaps on loans with commercial loan customers: Unrealized (loss) recognized in other non-interest income (78,698) (60,302) Favorable change in credit valuation adjustment recognized in other non-interest income 867 2,502 Offsetting interest rate swaps on loans with commercial loan customers: Unrealized gain recognized in other non-interest income 78,698 60,302 Risk participation agreements: Unrealized (loss) recognized in other non-interest income (108) (329) Forward commitments: Unrealized (loss)/gain recognized in other non-interest income (127) 6 Realized gain/(loss) in other non-interest income — (6) Non-hedging derivatives Commitments to lend Unrealized (loss) recognized in other non-interest income $ (106) $ (550) Realized gain in other non-interest income 252 1,352 |
Schedule of Assets Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount March 31, 2022 Interest Rate Swap Agreements: Institutional counterparties $ 26,748 $ (49) $ 26,699 $ — $ — $ 26,699 Commercial counterparties 22,748 — 22,748 — — 22,748 Total $ 49,496 $ (49) $ 49,447 $ — $ — $ 49,447 Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Assets Condition Condition Instruments Collateral Received Net Amount December 31, 2021 Interest Rate Swap Agreements: Institutional counterparties $ 2,223 $ (75) $ 2,148 $ — $ — $ 2,148 Commercial counterparties 76,809 — 76,809 — — 76,809 Total $ 79,032 $ (75) $ 78,957 $ — $ — $ 78,957 |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount March 31, 2022 Interest Rate Swap Agreements: Institutional counterparties $ (24,005) $ 3,712 $ (20,293) $ 45,288 $ 38,609 $ 63,604 Commercial counterparties (25,288) — (25,288) — — (25,288) Total $ (49,293) $ 3,712 $ (45,581) $ 45,288 $ 38,609 $ 38,316 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in Recognized Statements of Statements of Financial Cash (In thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount December 31, 2021 Interest Rate Swap Agreements: Institutional counterparties $ (78,146) $ 44,814 $ (33,332) $ 34,896 $ 43,694 $ 45,258 Commercial counterparties (2,461) — (2,461) — — (2,461) Total $ (80,607) $ 44,814 $ (35,793) $ 34,896 $ 43,694 $ 42,797 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of ROU Assets and Lease Liabilities | The following table represents the Consolidated Balance Sheets classification of the Company’s right-of-use (“ROU”) assets and lease liabilities: (In thousands) March 31, 2022 December 31, 2021 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 53,641 $ 52,180 Finance lease right-of-use assets Premises and equipment, net 6,543 6,674 Total Lease Right-of-Use Assets $ 60,184 $ 58,854 Lease Liabilities Operating lease liabilities Other liabilities $ 57,085 $ 55,674 Finance lease liabilities Other liabilities 9,725 9,862 Total Lease Liabilities $ 66,810 $ 65,536 |
Schedule of Supplemental Information Related to Leases | Supplemental information related to leases was as follows: March 31, 2022 December 31, 2021 Weighted-Average Remaining Lease Term (in years) Operating leases 9.5 9.5 Finance leases 12.6 12.8 Weighted-Average Discount Rate Operating leases 2.59 % 2.77 % Finance leases 5.00 % 5.00 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31, 2022 March 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,614 $ 3,330 Operating cash flows from finance leases 120 127 Financing cash flows from finance leases 138 131 |
Schedule of Maturity Analysis of Operating Lease Liability | The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2022: (In thousands) Operating Leases Finance Leases 2022 $ 7,499 $ 772 2023 9,192 1,037 2024 7,993 1,037 2025 6,215 1,037 2026 4,992 1,037 Thereafter 28,683 8,187 Total undiscounted lease payments 64,574 13,107 Less amounts representing interest (7,489) (3,382) Lease liability $ 57,085 $ 9,725 |
Schedule of Maturity Analysis of Finance Lease Liability | The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2022: (In thousands) Operating Leases Finance Leases 2022 $ 7,499 $ 772 2023 9,192 1,037 2024 7,993 1,037 2025 6,215 1,037 2026 4,992 1,037 Thereafter 28,683 8,187 Total undiscounted lease payments 64,574 13,107 Less amounts representing interest (7,489) (3,382) Lease liability $ 57,085 $ 9,725 |
CAPITAL RATIOS AND SHAREHOLDE_2
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Actual and Required Capital Ratios | The actual and required capital ratios were as follows: March 31, December 31, Minimum Capital Requirement Company (consolidated) Total capital to risk-weighted assets 16.0 % 17.3 % 8.0 % Common equity tier 1 capital to risk-weighted assets 13.9 15.0 4.5 Tier 1 capital to risk-weighted assets 14.2 15.3 6.0 Tier 1 capital to average assets 10.3 10.5 4.0 March 31, December 31, Regulatory Minimum to be Adequately Capitalized Regulatory Bank Total capital to risk-weighted assets 14.5 % 15.9 % 8.0 % 10.0 % Common equity tier 1 capital to risk-weighted assets 13.5 14.8 4.5 6.5 Tier 1 capital to risk-weighted assets 13.5 14.8 6.0 8.0 Tier 1 capital to average assets 9.8 10.1 4.0 5.0 |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive (loss) is as follows: (In thousands) March 31, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding loss on AFS securities $ (103,179) $ (1,806) Net unrealized holding (loss) on pension plans (2,518) (2,518) Income taxes related to items of accumulated other comprehensive income: Net unrealized tax benefit on AFS securities 26,786 407 Net unrealized tax benefit on pension plans 674 674 Accumulated other comprehensive loss $ (78,237) $ (3,243) |
Schedule of Components of Other Comprehensive Income (Loss) | The following table presents the components of other comprehensive (loss) for the three months ended March 31, 2022 and 2021: (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31 , 2022 Net unrealized holding loss on AFS securities: x Net unrealized (losses) arising during the period $ (101,373) $ 26,379 $ (74,994) Less: reclassification adjustment for gains realized in net income — — — Net unrealized holding (loss) on AFS securities (101,373) 26,379 (74,994) Other comprehensive (loss) $ (101,373) $ 26,379 $ (74,994) Three Months Ended March 31 , 2021 Net unrealized holding loss on AFS securities: Net unrealized (losses) arising during the period $ (27,013) $ 6,863 $ (20,150) Less: reclassification adjustment for gains realized in net income — — — Net unrealized holding (loss) on AFS securities (27,013) 6,863 (20,150) Other comprehensive (loss) $ (27,013) $ 6,863 $ (20,150) |
Schedule of Gross Changes in Each Component of Accumulated Other Comprehensive Income | The following table presents the changes in each component of accumulated other comprehensive (loss), for the three months ended March 31, 2022 and 2021: (In thousands) Net unrealized Net unrealized Total Three Months Ended March 31, 2022 Balance at Beginning of Period $ (1,398) $ (1,845) $ (3,243) Other comprehensive loss before reclassifications (74,994) — (74,994) Less: amounts reclassified from accumulated other comprehensive (loss) — — — Total other comprehensive (loss) (74,994) — (74,994) Balance at End of Period $ (76,392) $ (1,845) $ (78,237) Three Months Ended March 31, 2021 Balance at Beginning of Period $ 33,458 $ (2,587) $ 30,871 Other comprehensive loss before reclassifications (20,150) — (20,150) Less: amounts reclassified from accumulated other comprehensive (loss) — — — Total other comprehensive (loss) (20,150) — (20,150) Balance at End of Period $ 13,308 $ (2,587) $ 10,721 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): Three Months Ended March 31, (In thousands, except per share data) 2022 2021 Net income $ 20,196 $ 13,031 Average number of common shares issued 51,903 51,903 Less: average number of treasury shares 3,494 948 Less: average number of unvested stock award shares 741 625 Average number of basic shares outstanding 47,668 50,330 Plus: dilutive effect of unvested stock award shares 392 235 Plus: dilutive effect of stock options outstanding 7 — Average number of diluted shares outstanding 48,067 50,565 Basic earnings per common share: $ 0.42 $ 0.26 Diluted earnings per common share: $ 0.42 $ 0.26 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Activity in the Stock Award and Stock Option Plans | A combined summary of activity in the Company’s stock award and stock option plans for the three months ended March 31, 2022 is presented in the following table: Non-Vested Stock Awards Outstanding Stock Options Outstanding (Shares in thousands) Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Exercise Price December 31, 2021 710 $ 20.16 80 $ 25.21 Granted 139 28.92 — — Acquired — — — — Stock options exercised — — 1 23.30 Stock awards vested (63) 22.09 — — Forfeited (36) 27.12 — — Expired — — (3) 23.34 March 31, 2022 750 $ 21.73 78 $ 25.30 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Financial Liabilities 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 | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. March 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 7,798 $ 7,798 Securities available for sale: U.S Treasuries — 290,609 — 290,609 Municipal bonds and obligations — 70,223 — 70,223 Agency collateralized mortgage obligations — 697,712 — 697,712 Agency residential mortgage-backed securities — 654,386 — 654,386 Agency commercial mortgage-backed securities — 258,324 — 258,324 Corporate bonds — 40,478 4,020 44,498 Other bonds and obligations — 16,823 — 16,823 Marketable equity securities 14,064 655 — 14,719 Loans held for investment at fair value — — 1,197 1,197 Loans held for sale — 300 — 300 Derivative assets — 49,046 25 49,071 Capitalized servicing rights — — 1,786 1,786 Derivative liabilities — 45,809 — 45,809 December 31, 2021 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 8,354 $ 8,354 Securities available for sale: U.S Treasuries — 59,973 — 59,973 Municipal bonds and obligations — 77,177 — 77,177 Agency collateralized mortgage obligations — 688,336 — 688,336 Agency residential mortgage-backed securities — 705,859 — 705,859 Agency commercial mortgage-backed securities — 282,334 — 282,334 Corporate bonds — 41,630 4,030 45,660 Other bonds and obligations — 18,246 — 18,246 Marketable equity securities 14,798 655 — 15,453 Loans held for investment at fair value — — 1,200 1,200 Loans held for sale — 6,110 — 6,110 Derivative assets — 79,270 258 79,528 Capitalized servicing rights — — 1,966 1,966 Derivative liabilities — 35,194 — 35,194 |
Schedule of Loans Held for Sale | Aggregate Fair Value March 31, 2022 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 1,197 $ 23,148 $ (21,951) Aggregate Fair Value December 31, 2021 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 1,200 $ 31,430 $ (30,230) Loans Held for Sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets. Aggregate Fair Value March 31, 2022 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 300 $ 291 $ 9 Aggregate Fair Value December 31, 2021 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 6,110 $ 5,926 $ 184 |
Schedule of Changes in Level 3 Assets That Were Measured at Fair Value on a Recurring Basis | The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021. Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Security for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2022 December 31, 2021 $ 8,354 $ 4,030 $ 1,200 $ 124 $ 134 $ 1,966 Unrealized (loss)/gain, net recognized in other non-interest income (354) — 209 70 (127) (180) Unrealized gain included in accumulated other comprehensive income — (10) — — — — Unrealized gain/(loss), net recognized in discontinued operations — — — — — — Paydown of asset (202) — (212) — — — Transfers to held for sale loans — — — (176) — — March 31, 2022 $ 7,798 $ 4,020 $ 1,197 $ 18 $ 7 $ 1,786 Unrealized gain relating to instruments still held at March 31, 2022 $ 121 $ 20 $ — $ 18 $ 7 $ — Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Security for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2021 December 31, 2020 $ 9,708 $ 15,000 $ 2,265 $ 735 $ 320 $ 3,033 Maturities, calls, and prepayments of AFS security — (15,000) — — — — Unrealized (loss)/gain, net recognized in other non-interest income (166) — 414 818 6 (65) Paydown of asset (192) — (1,231) — — — Transfers to held for sale loans — — — (1,368) — — Additions to servicing rights — — — — — — March 31, 2021 $ 9,350 $ — $ 1,448 $ 185 $ 326 $ 2,968 Unrealized gains relating to instruments still held at March 31,2021 $ 887 $ — $ — $ 185 $ 326 $ — |
Schedule of Changes in Level 3 Liabilities That Were Measured at Fair Value on a Recurring Basis | The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021. Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Security for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2022 December 31, 2021 $ 8,354 $ 4,030 $ 1,200 $ 124 $ 134 $ 1,966 Unrealized (loss)/gain, net recognized in other non-interest income (354) — 209 70 (127) (180) Unrealized gain included in accumulated other comprehensive income — (10) — — — — Unrealized gain/(loss), net recognized in discontinued operations — — — — — — Paydown of asset (202) — (212) — — — Transfers to held for sale loans — — — (176) — — March 31, 2022 $ 7,798 $ 4,020 $ 1,197 $ 18 $ 7 $ 1,786 Unrealized gain relating to instruments still held at March 31, 2022 $ 121 $ 20 $ — $ 18 $ 7 $ — Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Security for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2021 December 31, 2020 $ 9,708 $ 15,000 $ 2,265 $ 735 $ 320 $ 3,033 Maturities, calls, and prepayments of AFS security — (15,000) — — — — Unrealized (loss)/gain, net recognized in other non-interest income (166) — 414 818 6 (65) Paydown of asset (192) — (1,231) — — — Transfers to held for sale loans — — — (1,368) — — Additions to servicing rights — — — — — — March 31, 2021 $ 9,350 $ — $ 1,448 $ 185 $ 326 $ 2,968 Unrealized gains relating to instruments still held at March 31,2021 $ 887 $ — $ — $ 185 $ 326 $ — |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant (In thousands) March 31, 2022 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 7,798 Discounted Cash Flow Discount Rate 4.32 % AFS Securities 4,020 Indication from Market Maker Price 101.00% Loans held for investment 1,197 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $6.3 - $16.9 Commitments to lend 18 Historical Trend Closing Ratio 80.00 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 7 Historical Trend Closing Ratio 80.00 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,786 Discounted cash flow Constant Prepayment Rate (CPR) 12.55 % Discount Rate 9.01 % Total $ 14,826 Fair Value Significant (In thousands) December 31, 2021 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading security $ 8,354 Discounted Cash Flow Discount Rate 3.35 % AFS Securities 4,030 Indication from Market Maker Price 101.00 % Loans held for investment 1,200 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $6.3- $19.8 Commitments to lend 124 Historical Trend Closing Ratio 82.09 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 134 Historical Trend Closing Ratio 82.09 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,966 Discounted Cash Flow Constant Prepayment Rate (CPR) 19.41 % Discount Rate 9.50 % Total $ 15,808 March 31, 2022 December 31, 2021 Fair Value Measurement Date as of March 31, 2022 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Assets Individually evaluated $ 8,192 $ 12,482 March 2022 Capitalized servicing rights 13,579 14,056 March 2022 Total $ 21,771 $ 26,538 |
Summary of Applicable Non-Recurring Fair Value Measurements | Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) March 31, 2022 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 8,192 Fair Value of Collateral Discounted Cash Flow - Loss Severity (100.00)% to 102.24% ((45.07)%) Appraised Value $0 to $4,319 ($2,497) Capitalized servicing rights 13,579 Discounted Cash Flow Constant Prepayment Rate (CPR) 6.16% to 13.64% (11.51%) Discount Rate 9.09% to 11.74% (10.83%) Total $ 21,771 (1) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value (In thousands) December 31, 2021 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 12,482 Fair Value of Collateral Discounted Cash Flow - loss severity (35.96)% to 133.09% ((49.14)%) Appraised Value $0 to $405 ($256) Capitalized servicing rights 14,056 Discounted Cash Flow Constant Prepayment Rate (CPR) 6.24% to 17.73% (13.29%) Discount Rate 9.59% to 13.11% (11.97%) Total $ 26,538 (1) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. |
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments | The following tables summarize the estimated fair values (represents exit price), and related carrying amounts, of the Company’s financial instruments. Certain financial instruments and all non-financial instruments are excluded. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. March 31, 2022 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,607,251 $ 1,607,251 $ 1,607,251 $ — $ — Trading security 7,798 7,798 — — 7,798 Marketable equity securities 14,719 14,719 14,064 655 — Securities available for sale 2,032,575 2,032,575 — 2,028,555 4,020 Securities held to maturity 612,174 580,538 — 578,021 2,517 FHLB bank stock and restricted securities 10,829 N/A N/A N/A N/A Net loans 7,167,848 7,224,588 — — 7,224,588 Loans held for sale 300 300 — 300 — Accrued interest receivable 33,813 33,813 — 33,813 — Derivative assets 49,071 49,071 — 49,046 25 Financial Liabilities Total deposits $ 10,699,208 $ 10,683,261 $ — $ 10,683,261 $ — Short-term debt — — — — — Long-term Federal Home Loan Bank advances and other 14,563 13,487 — 13,487 — Subordinated borrowings 97,569 94,267 — 94,267 — Derivative liabilities 45,809 45,809 — 45,809 — December 31, 2021 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,627,807 $ 1,627,807 $ 1,627,807 $ — $ — Trading security 8,354 8,354 — — 8,354 Marketable equity securities 15,453 15,453 14,798 655 — Securities available for sale and other 1,877,585 1,877,585 — 1,873,555 4,030 Securities held to maturity 636,503 647,236 — 644,497 2,739 FHLB bank stock and restricted securities 10,800 N/A N/A N/A N/A Net loans 6,719,753 6,850,975 — — 6,850,975 Loans held for sale 6,110 6,110 — 6,110 — Accrued interest receivable 33,534 33,534 — 33,534 — Derivative assets 79,528 79,528 — 79,270 258 Financial Liabilities Total deposits $ 10,068,953 $ 10,073,217 $ — $ 10,073,217 $ — Short-term debt — — — — — Long-term Federal Home Loan Bank advances 13,331 13,053 — 13,053 — Subordinated borrowings 97,513 95,006 — 95,006 — Derivative liabilities 35,194 35,194 — 35,194 — |
NET INTEREST INCOME AFTER BEN_2
NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Net Interest Income After Provision for Loan Losses | Presented below is net interest income after provision for credit losses for the three months ended March 31, 2022 and 2021, respectively. Three Months Ended March 31, (In thousands) 2022 2021 Net interest income $ 69,063 $ 75,093 (Benefit)/provision for credit losses (4,000) 6,500 Net interest after provision for credit losses $ 73,063 $ 68,593 |
TRADING SECURITY (Details)
TRADING SECURITY (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 7.7 | $ 7.9 |
Trading security | $ 7.8 | $ 8.4 |
SECURITIES AVAILABLE FOR SALE_3
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Securities available for sale | |||||
Amortized Cost | $ 2,137,848 | $ 1,881,813 | |||
Gross Unrealized Gains | 2,738 | 18,168 | |||
Gross Unrealized Losses | (108,011) | (22,396) | |||
Fair Value | 2,032,575 | 1,877,585 | |||
Allowance | 0 | 0 | |||
Securities held to maturity | |||||
Amortized Cost | 612,174 | 636,503 | |||
Gross Unrealized Gains | 6,095 | 19,741 | |||
Gross Unrealized Losses | (37,731) | (9,008) | |||
Fair Value | 580,538 | 647,236 | |||
Allowance | 99 | 105 | $ 111 | $ 104 | |
Marketable equity securities, amortized cost | 15,690 | 15,689 | |||
Marketable equity securities, gross unrealized gains | 109 | $ 67 | |||
Marketable equity securities, gross unrealized losses | (1,080) | $ (303) | |||
Marketable equity securities, fair value | 14,719 | 15,453 | |||
Total, amortized cost basis | 2,765,712 | 2,534,005 | |||
Total, gross unrealized gain | 8,942 | 37,979 | |||
Total, gross unrealized loss | (146,822) | (31,707) | |||
Total, fair value | 2,627,832 | 2,540,274 | |||
Total, allowance | 99 | 105 | |||
U.S Treasuries | |||||
Securities available for sale | |||||
Amortized Cost | 290,656 | 59,972 | |||
Gross Unrealized Gains | 31 | 1 | |||
Gross Unrealized Losses | (78) | 0 | |||
Fair Value | 290,609 | 59,973 | |||
Allowance | 0 | ||||
Municipal bonds and obligations | |||||
Securities available for sale | |||||
Amortized Cost | 68,624 | 71,822 | |||
Gross Unrealized Gains | 2,039 | 5,355 | |||
Gross Unrealized Losses | (440) | 0 | |||
Fair Value | 70,223 | 77,177 | |||
Allowance | 0 | 0 | |||
Securities held to maturity | |||||
Amortized Cost | 271,466 | 281,515 | |||
Gross Unrealized Gains | 5,462 | 16,151 | |||
Gross Unrealized Losses | (11,963) | (693) | |||
Fair Value | 264,965 | 296,973 | |||
Allowance | 67 | 70 | 71 | 64 | |
Agency collateralized mortgage obligations | |||||
Securities available for sale | |||||
Amortized Cost | 740,928 | 693,782 | |||
Gross Unrealized Gains | 68 | 5,566 | |||
Gross Unrealized Losses | (43,284) | (11,012) | |||
Fair Value | 697,712 | 688,336 | |||
Allowance | 0 | 0 | |||
Securities held to maturity | |||||
Amortized Cost | 143,170 | 149,195 | |||
Gross Unrealized Gains | 618 | 3,203 | |||
Gross Unrealized Losses | (9,741) | (3,513) | |||
Fair Value | 134,047 | 148,885 | |||
Allowance | 0 | 0 | |||
Agency mortgage-backed securities | |||||
Securities available for sale | |||||
Amortized Cost | 702,903 | 711,154 | |||
Gross Unrealized Gains | 50 | 2,347 | |||
Gross Unrealized Losses | (48,567) | (7,642) | |||
Fair Value | 654,386 | 705,859 | |||
Allowance | 0 | 0 | |||
Securities held to maturity | |||||
Amortized Cost | 55,058 | 57,327 | |||
Gross Unrealized Gains | 0 | 95 | |||
Gross Unrealized Losses | (5,353) | (1,498) | |||
Fair Value | 49,705 | 55,924 | |||
Allowance | 0 | 0 | |||
Agency commercial mortgage-backed securities | |||||
Securities available for sale | |||||
Amortized Cost | 273,144 | 282,958 | |||
Gross Unrealized Gains | 100 | 2,996 | |||
Gross Unrealized Losses | (14,920) | (3,620) | |||
Fair Value | 258,324 | 282,334 | |||
Allowance | 0 | 0 | |||
Securities held to maturity | |||||
Amortized Cost | 139,751 | 145,573 | |||
Gross Unrealized Gains | 0 | 266 | |||
Gross Unrealized Losses | (10,611) | (3,289) | |||
Fair Value | 129,140 | 142,550 | |||
Allowance | 0 | 0 | |||
Corporate bonds | |||||
Securities available for sale | |||||
Amortized Cost | 44,803 | 44,824 | |||
Gross Unrealized Gains | 373 | 950 | |||
Gross Unrealized Losses | (678) | (114) | |||
Fair Value | 44,498 | 45,660 | |||
Allowance | 0 | 0 | |||
Other bonds and obligations | |||||
Securities available for sale | |||||
Amortized Cost | 16,790 | 17,301 | |||
Gross Unrealized Gains | 77 | 953 | |||
Gross Unrealized Losses | (44) | (8) | |||
Fair Value | 16,823 | 18,246 | |||
Allowance | 0 | 0 | |||
Securities held to maturity | |||||
Amortized Cost | 165 | 165 | |||
Gross Unrealized Gains | 0 | 0 | |||
Gross Unrealized Losses | 0 | 0 | |||
Fair Value | 165 | 165 | |||
Allowance | 0 | 0 | |||
Tax advantaged economic development bonds | |||||
Securities held to maturity | |||||
Amortized Cost | 2,564 | 2,728 | |||
Gross Unrealized Gains | 15 | 26 | |||
Gross Unrealized Losses | (63) | (15) | |||
Fair Value | 2,516 | 2,739 | |||
Allowance | $ 32 | $ 35 | $ 40 | $ 40 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Debt Securities, Held to Maturity, Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 105 | $ 104 |
Provision for credit losses - expense (reversal) | (6) | 7 |
Ending balance | 99 | 111 |
Municipal bonds and obligations | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 70 | 64 |
Provision for credit losses - expense (reversal) | (3) | 7 |
Ending balance | 67 | 71 |
Tax advantaged economic development bonds | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 35 | 40 |
Provision for credit losses - expense (reversal) | (3) | 0 |
Ending balance | $ 32 | $ 40 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Schedule of Maturity of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 292,101 | |
Over 1 year to 5 years | 7,941 | |
Over 5 years to 10 years | 48,905 | |
Over 10 years | 71,926 | |
Total bonds and obligations | 420,873 | |
Mortgage-backed securities | 1,716,975 | |
Amortized Cost | 2,137,848 | $ 1,881,813 |
Available for sale, Fair Value | ||
Within 1 year | 292,057 | |
Over 1 year to 5 years | 8,007 | |
Over 5 years to 10 years | 48,853 | |
Over 10 years | 73,236 | |
Total bonds and obligations | 422,153 | |
Mortgage-backed securities | 1,610,422 | |
Fair Value | 2,032,575 | 1,877,585 |
Held to maturity, Amortized Cost | ||
Within 1 year | 1,717 | |
Over 1 year to 5 years | 2,783 | |
Over 5 years to 10 years | 21,186 | |
Over 10 years | 248,509 | |
Total bonds and obligations | 274,195 | |
Mortgage-backed securities | 337,979 | |
Amortized Cost | 612,174 | 636,503 |
Held to maturity, Fair Value | ||
Within 1 year | 1,718 | |
Over 1 year to 5 years | 2,799 | |
Over 5 years to 10 years | 21,602 | |
Over 10 years | 241,527 | |
Total bonds and obligations | 267,646 | |
Mortgage-backed securities | 312,892 | |
Fair Value | $ 580,538 | $ 647,236 |
SECURITIES AVAILABLE FOR SALE_6
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)security | Mar. 31, 2021USD ($) | |
Investment Holdings [Line Items] | ||
Purchases of securities available for sale | $ | $ 386,636,000 | $ 103,877,000 |
Proceeds from sale of available-for-sale securities | $ | $ 0 | 0 |
Debt securities, available-for-sale, realized gain | $ | 0 | |
Debt securities, available-for-sale, realized loss | $ | $ 0 | |
U.S Treasuries | Available-for-sale Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 6 | |
Number of securities | 11 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 0.10% | |
Municipal bonds and obligations | Available-for-sale Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 7 | |
Number of securities | 100 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 4.00% | |
Municipal bonds and obligations | Held-to-maturity Securities | ||
Investment Holdings [Line Items] | ||
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 19.70% | |
Held-to-maturity, securities in unrealized loss positions | 41 | |
Held-to-maturity securities portfolio, number of securities | 200 | |
Agency collateralized mortgage obligations | Available-for-sale Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 224 | |
Number of securities | 255 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 6.00% | |
Agency collateralized mortgage obligations | Held-to-maturity Securities | ||
Investment Holdings [Line Items] | ||
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 10.70% | |
Held-to-maturity, securities in unrealized loss positions | 7 | |
Held-to-maturity securities portfolio, number of securities | 14 | |
Agency mortgage-backed securities | Available-for-sale Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 90 | |
Number of securities | 134 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 6.60% | |
Agency mortgage-backed securities | Held-to-maturity Securities | ||
Investment Holdings [Line Items] | ||
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 8.20% | |
Held-to-maturity, securities in unrealized loss positions | 16 | |
Held-to-maturity securities portfolio, number of securities | 17 | |
Corporate bonds | Available-for-sale Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 6 | |
Number of securities | 15 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 3.90% | |
Other bonds and obligations | Available-for-sale Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 4 | |
Number of securities | 5 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 0.70% | |
Tax advantaged economic development bonds | Held-to-maturity Securities | ||
Investment Holdings [Line Items] | ||
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 5.10% | |
Held-to-maturity, securities in unrealized loss positions | 1 | |
Held-to-maturity securities portfolio, number of securities | 3 |
SECURITIES AVAILABLE FOR SALE_7
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND MARKETABLE EQUITY SECURITIES - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | $ 71,819 | $ 14,528 |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 36,192 | 7,868 |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 108,011 | 22,396 |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 1,404,377 | 712,488 |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 341,827 | 252,279 |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 1,746,204 | 964,767 |
Gros Unrealized Losses | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 21,945 | 4,610 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 15,786 | 4,398 |
Held to maturity securities, accumulated unrecognized holding loss | 37,731 | 9,008 |
Fair Value | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 173,031 | 194,606 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 137,103 | 113,891 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 310,134 | 308,497 |
Securities available for sale and held to maturity | ||
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, aggregate losses | 93,764 | 19,138 |
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, fair value | 1,577,408 | 907,094 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, aggregate losses | 51,978 | 12,266 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, fair value | 478,930 | 366,170 |
Held to maturity and available for sale securities continuous unrealized loss position, aggregate losses | 145,742 | 31,404 |
Held to maturity and available for sale securities continuous unrealized loss position, fair value | 2,056,338 | 1,273,264 |
U.S Treasuries | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 78 | |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 0 | |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 78 | |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 140,643 | |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 140,643 | |
Municipal bonds and obligations | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 440 | |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 0 | |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 440 | |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 10,695 | |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 10,695 | |
Gros Unrealized Losses | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 10,422 | 693 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 1,541 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | 11,963 | 693 |
Fair Value | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 43,645 | 36,981 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 5,249 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 48,894 | 36,981 |
Agency collateralized mortgage obligations | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 38,150 | 9,626 |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 5,134 | 1,386 |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 43,284 | 11,012 |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 637,494 | 375,132 |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 38,740 | 27,025 |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 676,234 | 402,157 |
Gros Unrealized Losses | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 5,863 | 1,808 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 3,878 | 1,705 |
Held to maturity securities, accumulated unrecognized holding loss | 9,741 | 3,513 |
Fair Value | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 48,246 | 49,308 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 32,979 | 36,212 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 81,225 | 85,520 |
Agency mortgage-backed securities | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 24,058 | 3,179 |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 24,509 | 4,463 |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 48,567 | 7,642 |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 414,665 | 222,887 |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 233,313 | 175,941 |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 647,978 | 398,828 |
Gros Unrealized Losses | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 73 | 839 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 5,280 | 659 |
Held to maturity securities, accumulated unrecognized holding loss | 5,353 | 1,498 |
Fair Value | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 2,925 | 26,656 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 46,780 | 26,025 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 49,705 | 52,681 |
Agency commercial mortgage-backed securities | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 8,380 | 1,609 |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 6,540 | 2,011 |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 14,920 | 3,620 |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 178,298 | 103,354 |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 69,180 | 48,619 |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 247,478 | 151,973 |
Gros Unrealized Losses | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 5,524 | 1,255 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 5,087 | 2,034 |
Held to maturity securities, accumulated unrecognized holding loss | 10,611 | 3,289 |
Fair Value | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 77,044 | 80,406 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 52,095 | 51,654 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 129,139 | 132,060 |
Corporate bonds | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 678 | 114 |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 0 | 0 |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 678 | 114 |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 16,533 | 11,115 |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | 0 |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 16,533 | 11,115 |
Other bonds and obligations | ||
Securities available for sale, Gross Unrealized Losses | ||
Debt securities, available for sale securities, less than twelve months, gross unrealized losses | 35 | 0 |
Debt securities, available for sale securities, over twelve months, gross unrealized losses | 9 | 8 |
Debt securities, available for sale securities, continuous unrealized loss position, accumulated loss | 44 | 8 |
Securities available for sale, Fair Value | ||
Debt securities, available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 6,049 | 0 |
Debt securities, available for sale securities, continuous unrealized loss position, over twelve months, fair value | 594 | 694 |
Debt securities, available for sale securities, continuous unrealized loss position, fair value | 6,643 | 694 |
Tax advantaged economic development bonds | ||
Gros Unrealized Losses | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 63 | 15 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | 63 | 15 |
Fair Value | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 1,171 | 1,255 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | $ 1,171 | $ 1,255 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Total Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 7,267,323 | $ 6,825,847 | ||
Allowance for credit losses | 99,475 | 106,094 | $ 123,800 | $ 127,302 |
Net loans | 7,167,848 | 6,719,753 | ||
Commercial | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 310,778 | 324,282 | ||
Allowance for credit losses | 2,505 | 3,206 | 4,397 | 5,111 |
Commercial | Commercial multifamily | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 640,922 | 515,817 | ||
Allowance for credit losses | 5,771 | 6,120 | 6,351 | 5,916 |
Commercial real estate | Commercial real estate owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 609,526 | 606,477 | ||
Allowance for credit losses | 11,498 | 12,752 | 14,257 | 12,380 |
Commercial real estate | Commercial real estate non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,207,124 | 2,156,929 | ||
Allowance for credit losses | 25,814 | 32,106 | 34,561 | 35,850 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,350,752 | 1,284,429 | ||
Allowance for credit losses | 22,949 | 22,584 | 26,071 | 25,013 |
Residential mortgages | Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,665,304 | 1,489,248 | ||
Allowance for credit losses | 17,816 | 22,406 | 25,800 | 28,491 |
Consumer loans | Home equity | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 244,649 | 252,366 | ||
Allowance for credit losses | 3,303 | 4,006 | 5,749 | 6,482 |
Consumer loans | Consumer other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 238,268 | 196,299 | ||
Allowance for credit losses | $ 9,819 | $ 2,914 | $ 6,614 | $ 8,059 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Net loans | $ 7,167,848 | $ 6,719,753 | |
Financing receivable, reclassification, held for sale | 0 | ||
Commercial loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Financing receivable, reclassification, held for sale | $ 9,500 | ||
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Financing receivable, nonaccrual, medallion loans, fair value | 1,200 | 1,200 | |
Financing receivable, nonaccrual, medallion loans, contractual balance | 23,100 | 31,400 | |
Small Business Administration (SBA), CARES Act, Paycheck Protection Program | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Net loans | $ 15,600 | $ 29,900 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | $ 106,094 | $ 127,302 |
Charge-offs | (6,047) | (11,460) |
Recoveries | 3,422 | 1,465 |
(Benefit)/provision for credit losses | (3,994) | 6,493 |
Balance at End of Period | 99,475 | 123,800 |
Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 3,206 | 5,111 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
(Benefit)/provision for credit losses | (701) | (714) |
Balance at End of Period | 2,505 | 4,397 |
Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 6,120 | 5,916 |
Charge-offs | 0 | (124) |
Recoveries | 0 | 62 |
(Benefit)/provision for credit losses | (349) | 497 |
Balance at End of Period | 5,771 | 6,351 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 12,752 | 12,380 |
Charge-offs | (130) | (376) |
Recoveries | 209 | 12 |
(Benefit)/provision for credit losses | (1,333) | 2,241 |
Balance at End of Period | 11,498 | 14,257 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 32,106 | 35,850 |
Charge-offs | (4,884) | (6,658) |
Recoveries | 1,266 | 126 |
(Benefit)/provision for credit losses | (2,674) | 5,243 |
Balance at End of Period | 25,814 | 34,561 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 22,584 | 25,013 |
Charge-offs | (653) | (3,320) |
Recoveries | 1,288 | 644 |
(Benefit)/provision for credit losses | (270) | 3,734 |
Balance at End of Period | 22,949 | 26,071 |
Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 22,406 | 28,491 |
Charge-offs | (164) | (377) |
Recoveries | 388 | 437 |
(Benefit)/provision for credit losses | (4,814) | (2,751) |
Balance at End of Period | 17,816 | 25,800 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 4,006 | 6,482 |
Charge-offs | 0 | (77) |
Recoveries | 134 | 24 |
(Benefit)/provision for credit losses | (837) | (680) |
Balance at End of Period | 3,303 | 5,749 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at Beginning of Period | 2,914 | 8,059 |
Charge-offs | (216) | (528) |
Recoveries | 137 | 160 |
(Benefit)/provision for credit losses | 6,984 | (1,077) |
Balance at End of Period | $ 9,819 | $ 6,614 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES Allowance for Credit Losses Activity, Unfunded Loan Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 7,043 | $ 7,629 |
Expense for credit losses | 0 | 200 |
Balance at end of period | $ 7,043 | $ 7,829 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES Loan Risk by Category (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 7,267,323 | $ 6,825,847 |
Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 23,309 | 71,784 |
2021 | 101,236 | 52,725 |
2020 | 28,394 | 117,784 |
2019 | 90,605 | 76,379 |
2018 | 62,253 | 3,839 |
Prior | 4,932 | 1,721 |
Revolving Loans Amortized Cost Basis | 49 | 50 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 310,778 | 324,282 |
Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 125,302 | 63,630 |
2021 | 63,610 | 30,872 |
2020 | 30,705 | 98,455 |
2019 | 119,128 | 65,318 |
2018 | 74,826 | 76,699 |
Prior | 226,448 | 180,250 |
Revolving Loans Amortized Cost Basis | 903 | 593 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 640,922 | 515,817 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 26,695 | 154,434 |
2021 | 147,396 | 50,761 |
2020 | 50,356 | 88,669 |
2019 | 87,542 | 94,577 |
2018 | 89,052 | 48,238 |
Prior | 205,141 | 166,592 |
Revolving Loans Amortized Cost Basis | 3,344 | 3,206 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 609,526 | 606,477 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 228,720 | 426,086 |
2021 | 425,619 | 183,981 |
2020 | 176,755 | 300,457 |
2019 | 271,709 | 360,363 |
2018 | 350,576 | 239,817 |
Prior | 735,485 | 626,615 |
Revolving Loans Amortized Cost Basis | 18,260 | 19,610 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 2,207,124 | 2,156,929 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 76,088 | 188,129 |
2021 | 183,395 | 134,705 |
2020 | 114,327 | 134,586 |
2019 | 111,199 | 164,680 |
2018 | 138,895 | 57,643 |
Prior | 173,371 | 139,670 |
Revolving Loans Amortized Cost Basis | 553,477 | 465,016 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,350,752 | 1,284,429 |
Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 225,079 | 215,545 |
2021 | 260,217 | 114,536 |
2020 | 107,970 | 87,139 |
2019 | 82,099 | 171,506 |
2018 | 155,437 | 192,643 |
Prior | 834,211 | 707,586 |
Revolving Loans Amortized Cost Basis | 291 | 293 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,665,304 | 1,489,248 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 125 |
2021 | 122 | 469 |
2020 | 464 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 22 | 24 |
Revolving Loans Amortized Cost Basis | 244,041 | 251,748 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 244,649 | 252,366 |
Consumer loans | Home equity | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 125 |
2021 | 122 | 469 |
2020 | 464 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 22 | 24 |
Revolving Loans Amortized Cost Basis | 242,052 | 249,590 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 242,660 | 250,208 |
Consumer loans | Home equity | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 1,989 | 2,158 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,989 | 2,158 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 68,740 | 38,002 |
2021 | 35,694 | 11,235 |
2020 | 10,342 | 21,838 |
2019 | 19,141 | 56,374 |
2018 | 48,817 | 31,378 |
Prior | 48,612 | 29,936 |
Revolving Loans Amortized Cost Basis | 6,922 | 7,536 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 238,268 | 196,299 |
Consumer loans | Consumer other | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 68,740 | 37,994 |
2021 | 35,602 | 11,189 |
2020 | 10,303 | 21,548 |
2019 | 18,878 | 55,577 |
2018 | 48,084 | 30,632 |
Prior | 47,445 | 28,797 |
Revolving Loans Amortized Cost Basis | 6,902 | 7,505 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 235,954 | 193,242 |
Consumer loans | Consumer other | Nonperforming | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 8 |
2021 | 92 | 46 |
2020 | 39 | 290 |
2019 | 263 | 797 |
2018 | 733 | 746 |
Prior | 1,167 | 1,139 |
Revolving Loans Amortized Cost Basis | 20 | 31 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 2,314 | 3,057 |
Pass | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 23,309 | 71,784 |
2021 | 101,236 | 52,725 |
2020 | 28,394 | 117,784 |
2019 | 90,605 | 66,950 |
2018 | 33,505 | 3,839 |
Prior | 4,932 | 1,721 |
Revolving Loans Amortized Cost Basis | 49 | 50 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 282,030 | 314,853 |
Pass | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 125,302 | 63,630 |
2021 | 63,610 | 28,172 |
2020 | 28,023 | 98,455 |
2019 | 119,128 | 59,720 |
2018 | 69,248 | 76,699 |
Prior | 225,003 | 176,020 |
Revolving Loans Amortized Cost Basis | 769 | 457 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 631,083 | 503,153 |
Pass | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 26,695 | 154,434 |
2021 | 147,396 | 50,236 |
2020 | 49,844 | 85,687 |
2019 | 85,077 | 91,316 |
2018 | 87,214 | 45,995 |
Prior | 195,950 | 157,346 |
Revolving Loans Amortized Cost Basis | 3,344 | 3,206 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 595,520 | 588,220 |
Pass | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 228,720 | 426,086 |
2021 | 425,619 | 176,172 |
2020 | 169,251 | 296,985 |
2019 | 260,590 | 349,947 |
2018 | 333,773 | 204,043 |
Prior | 667,716 | 585,044 |
Revolving Loans Amortized Cost Basis | 18,161 | 19,511 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 2,103,830 | 2,057,788 |
Pass | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 76,088 | 187,257 |
2021 | 182,930 | 130,520 |
2020 | 110,615 | 114,153 |
2019 | 93,214 | 156,443 |
2018 | 132,957 | 54,190 |
Prior | 167,828 | 136,837 |
Revolving Loans Amortized Cost Basis | 519,051 | 424,393 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,282,683 | 1,203,793 |
Pass | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 225,079 | 214,306 |
2021 | 259,363 | 114,536 |
2020 | 107,629 | 86,997 |
2019 | 81,674 | 169,537 |
2018 | 153,406 | 189,980 |
Prior | 820,956 | 697,401 |
Revolving Loans Amortized Cost Basis | 291 | 293 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,648,398 | 1,473,050 |
Special Mention | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 101,992 | 100,071 |
Special Mention | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 0 | 0 |
Special Mention | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 2,700 |
2020 | 2,682 | 0 |
2019 | 0 | 5,598 |
2018 | 5,578 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 8,260 | 8,298 |
Special Mention | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 525 |
2020 | 396 | 869 |
2019 | 1,609 | 1,668 |
2018 | 262 | 1,405 |
Prior | 1,395 | 1,157 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 3,662 | 5,624 |
Special Mention | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 221 |
2020 | 0 | 3,472 |
2019 | 11,119 | 7,632 |
2018 | 13,737 | 2,302 |
Prior | 29,310 | 27,268 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 54,166 | 40,895 |
Special Mention | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 661 |
2021 | 0 | 1,691 |
2020 | 1,296 | 10,824 |
2019 | 9,857 | 5,092 |
2018 | 3,157 | 1,433 |
Prior | 1,244 | 488 |
Revolving Loans Amortized Cost Basis | 19,264 | 22,468 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 34,818 | 42,657 |
Special Mention | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 328 | 0 |
2019 | 0 | 120 |
2018 | 0 | 502 |
Prior | 499 | 1,557 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 827 | 2,179 |
Substandard | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 113,755 | 106,560 |
Substandard | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 9,429 |
2018 | 28,748 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 28,748 | 9,429 |
Substandard | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 1,445 | 4,230 |
Revolving Loans Amortized Cost Basis | 134 | 136 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 1,579 | 4,366 |
Substandard | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 116 | 2,113 |
2019 | 856 | 1,593 |
2018 | 1,576 | 838 |
Prior | 7,796 | 8,089 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 10,344 | 12,633 |
Substandard | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 7,588 |
2020 | 7,504 | 0 |
2019 | 0 | 2,784 |
2018 | 3,066 | 33,472 |
Prior | 38,459 | 14,303 |
Revolving Loans Amortized Cost Basis | 99 | 99 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 49,128 | 58,246 |
Substandard | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 211 |
2021 | 465 | 2,494 |
2020 | 2,416 | 9,609 |
2019 | 8,128 | 3,145 |
2018 | 2,781 | 2,020 |
Prior | 4,285 | 2,330 |
Revolving Loans Amortized Cost Basis | 14,949 | 17,935 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 33,024 | 37,744 |
Substandard | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 1,239 |
2021 | 854 | 0 |
2020 | 13 | 142 |
2019 | 425 | 1,849 |
2018 | 2,031 | 2,161 |
Prior | 12,756 | 8,628 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | 16,079 | 14,019 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
2022 | 0 | 0 |
2021 | 0 | 0 |
2020 | 0 | 0 |
2019 | 0 | 0 |
2018 | 0 | 0 |
Prior | 14 | 15 |
Revolving Loans Amortized Cost Basis | 213 | 220 |
Revolving Loans Converted to Term | 0 | 0 |
Total loans | $ 227 | $ 235 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 7,267,323 | $ 6,825,847 |
Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 310,778 | 324,282 |
Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 640,922 | 515,817 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 609,526 | 606,477 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,207,124 | 2,156,929 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,350,752 | 1,284,429 |
Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,665,304 | 1,489,248 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 244,649 | 252,366 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 238,268 | 196,299 |
30-59 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 11,921 | 35,352 |
30-59 Days Past Due | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
30-59 Days Past Due | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 82 |
30-59 Days Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 225 | 0 |
30-59 Days Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,342 | 25,420 |
30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 3,979 | 2,700 |
30-59 Days Past Due | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 3,821 | 5,529 |
30-59 Days Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 188 | 258 |
30-59 Days Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,366 | 1,363 |
60-89 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,598 | 4,511 |
60-89 Days Past Due | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
60-89 Days Past Due | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 306 |
60-89 Days Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 400 |
60-89 Days Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 26 | 653 |
60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 476 | 709 |
60-89 Days Past Due | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 828 | 2,015 |
60-89 Days Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 70 | 108 |
60-89 Days Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 198 | 320 |
90 Days or Greater Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 36,294 | 38,597 |
90 Days or Greater Past Due | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
90 Days or Greater Past Due | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 182 | 187 |
90 Days or Greater Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 4,263 | 4,221 |
90 Days or Greater Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 4,923 | 9,049 |
90 Days or Greater Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 7,450 | 6,836 |
90 Days or Greater Past Due | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 15,263 | 13,264 |
90 Days or Greater Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,989 | 2,158 |
90 Days or Greater Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,224 | 2,882 |
Total Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 49,813 | 78,460 |
Total Past Due | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Total Past Due | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 182 | 575 |
Total Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 4,488 | 4,621 |
Total Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 7,291 | 35,122 |
Total Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 11,905 | 10,245 |
Total Past Due | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 19,912 | 20,808 |
Total Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,247 | 2,524 |
Total Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 3,788 | 4,565 |
Current | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 7,217,510 | 6,747,387 |
Current | Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 310,778 | 324,282 |
Current | Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 640,740 | 515,242 |
Current | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 605,038 | 601,856 |
Current | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,199,833 | 2,121,807 |
Current | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,338,847 | 1,274,184 |
Current | Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,645,392 | 1,468,440 |
Current | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 242,402 | 249,842 |
Current | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 234,480 | $ 191,734 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES Summary of Nonaccrual Loans and Loans Past Due (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | $ 29,681 | $ 35,326 |
Nonaccrual With No Related Allowance | 10,581 | 19,174 |
Past Due 90 Days or Greater and Accruing | 6,613 | 3,271 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or Greater and Accruing | 0 | 0 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 182 | 187 |
Nonaccrual With No Related Allowance | 182 | 187 |
Past Due 90 Days or Greater and Accruing | 0 | 0 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 3,726 | 4,221 |
Nonaccrual With No Related Allowance | 2,477 | 2,413 |
Past Due 90 Days or Greater and Accruing | 537 | 0 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 4,751 | 8,877 |
Nonaccrual With No Related Allowance | 94 | 8,412 |
Past Due 90 Days or Greater and Accruing | 172 | 172 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 5,619 | 6,747 |
Nonaccrual With No Related Allowance | 746 | 1,506 |
Past Due 90 Days or Greater and Accruing | 1,831 | 89 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 11,678 | 10,698 |
Nonaccrual With No Related Allowance | 6,946 | 6,511 |
Past Due 90 Days or Greater and Accruing | 3,585 | 2,566 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 1,719 | 1,901 |
Nonaccrual With No Related Allowance | 132 | 141 |
Past Due 90 Days or Greater and Accruing | 270 | 257 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 2,006 | 2,695 |
Nonaccrual With No Related Allowance | 4 | 4 |
Past Due 90 Days or Greater and Accruing | 218 | 187 |
Interest Income Recognized on Nonaccrual | $ 0 | $ 0 |
LOANS AND RELATED ALLOWANCE FOR
LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES Summary of Total Loans Rated Special Mention or Lower (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 7,267,323 | $ 6,825,847 |
Total Criticized | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 245,428 | 241,957 |
Total Classified | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 143,436 | 141,886 |
Non-Accrual | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 29,681 | 35,326 |
Substandard Accruing | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 113,755 | 106,560 |
Special Mention | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 101,992 | $ 100,071 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES Summary of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | $ 29,681 | $ 35,326 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 26,167 | 31,409 |
Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 1,040 | 1,040 |
Commercial | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial | Construction | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 9,429 | 9,429 |
Commercial | Construction | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial | Construction | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 182 | 187 |
Commercial | Commercial multifamily | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 184 | 188 |
Commercial | Commercial multifamily | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial | Commercial multifamily | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 3,726 | 4,221 |
Commercial real estate | Commercial real estate owner occupied | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 3,628 | 4,466 |
Commercial real estate | Commercial real estate owner occupied | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 4,751 | 8,877 |
Commercial real estate | Commercial real estate non-owner occupied | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 5,481 | 9,501 |
Commercial real estate | Commercial real estate non-owner occupied | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 5,619 | 6,747 |
Commercial and industrial | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 623 | 526 |
Commercial and industrial | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Commercial and industrial | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 1,040 | 1,040 |
Residential mortgages | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 11,678 | 10,698 |
Residential mortgages | Residential real estate | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 6,563 | 7,035 |
Residential mortgages | Residential real estate | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Residential mortgages | Residential real estate | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 1,719 | 1,901 |
Consumer loans | Home equity | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 253 | 262 |
Consumer loans | Home equity | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Consumer loans | Home equity | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 2,006 | 2,695 |
Consumer loans | Consumer other | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 6 | 2 |
Consumer loans | Consumer other | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 0 | 0 |
Consumer loans | Consumer other | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES Schedule of Troubled Debt Restructurings, Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | $ 27,102 | $ 20,548 |
Principal Payments | (80) | (268) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | (8,325) | 511 |
Newly Identified TDRs | 50 | 690 |
Balance at End of Period | 18,747 | 21,481 |
Commercial | Construction | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 9,429 | 0 |
Principal Payments | 0 | 0 |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | 0 | 0 |
Newly Identified TDRs | 0 | 0 |
Balance at End of Period | 9,429 | 0 |
Commercial | Commercial multifamily | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 703 | 754 |
Principal Payments | (9) | (13) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | 0 | 0 |
Newly Identified TDRs | 0 | 0 |
Balance at End of Period | 694 | 741 |
Commercial real estate | Commercial real estate owner occupied | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 2,733 | 1,731 |
Principal Payments | (9) | (6) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | 0 | 0 |
Newly Identified TDRs | 0 | 0 |
Balance at End of Period | 2,724 | 1,725 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 9,310 | 13,684 |
Principal Payments | 0 | (14) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | (8,312) | 511 |
Newly Identified TDRs | 0 | 544 |
Balance at End of Period | 998 | 14,725 |
Commercial and industrial | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 3,656 | 2,686 |
Principal Payments | (51) | (199) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | (13) | 0 |
Newly Identified TDRs | 0 | 146 |
Balance at End of Period | 3,592 | 2,633 |
Residential mortgages | Residential real estate | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 1,117 | 1,524 |
Principal Payments | (8) | (31) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | 0 | 0 |
Newly Identified TDRs | 0 | 0 |
Balance at End of Period | 1,109 | 1,493 |
Consumer loans | Home equity | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 121 | 133 |
Principal Payments | (2) | (3) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | 0 | 0 |
Newly Identified TDRs | 50 | 0 |
Balance at End of Period | 169 | 130 |
Consumer loans | Consumer other | ||
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||
Balance at Beginning of Period | 33 | 36 |
Principal Payments | (1) | (2) |
TDR Status Change | 0 | 0 |
Other Additions/(Reductions) | 0 | 0 |
Newly Identified TDRs | 0 | 0 |
Balance at End of Period | $ 32 | $ 34 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1,000 | 4,000 |
Pre-modification outstanding recorded investment | $ 50 | $ 690 |
Post-modification outstanding recorded investment | $ 50 | $ 690 |
Number of Loans | loan | 1 | |
Recorded Investment | $ 105 | |
Commercial and industrial | Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | |
Recorded Investment | $ 105 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 543,728 | $ 676,979 |
Time $100,000 through $250,000 | 623,928 | 610,174 |
Time more than $250,000 | 361,266 | 391,787 |
Total time deposits | 1,528,922 | 1,678,940 |
Brokered time deposits | 164,800 | 228,100 |
Reciprocal deposits | $ 79,900 | $ 89,200 |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal, Short-term borrowings | $ 0 | $ 0 |
Principal, Long-term borrowings | 112,132 | 110,844 |
Total borrowings | $ 112,132 | $ 110,844 |
Weighted average rate on short-term borrowings | 0.00% | 0.00% |
Weighted average rate on long-term borrowings | 5.36% | 5.33% |
Weighted average rate | 5.36% | 5.33% |
Advances from the FHLB | ||
Debt Instrument [Line Items] | ||
Principal, Short-term borrowings | $ 0 | $ 0 |
Principal, Long-term borrowings | $ 14,563 | $ 13,331 |
Weighted average rate on short-term borrowings | 0.00% | 0.00% |
Weighted average rate on long-term borrowings | 1.60% | 1.75% |
Subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Principal, Long-term borrowings | $ 74,633 | $ 74,590 |
Weighted average rate on long-term borrowings | 7.00% | 7.00% |
Junior subordinated borrowing - Trust I | ||
Debt Instrument [Line Items] | ||
Principal, Long-term borrowings | $ 15,464 | $ 15,464 |
Weighted average rate on long-term borrowings | 2.33% | 2.01% |
Junior subordinated borrowing - Trust II | ||
Debt Instrument [Line Items] | ||
Principal, Long-term borrowings | $ 7,472 | $ 7,459 |
Weighted average rate on long-term borrowings | 2.53% | 1.90% |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Sep. 30, 2012 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Line of credit, current | $ 3,000,000 | ||
Short-term debt | 0 | $ 0 | |
Long-term borrowings | 112,132,000 | 110,844,000 | |
Variable-rate FHLB advances | 0 | 0 | |
Advances from the FHLB | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 0 | 0 | |
Line of credit facility, remaining borrowing capacity | 1,300,000,000 | 1,500,000,000 | |
Short-term debt | 0 | 0 | |
Long-term borrowings | 14,563,000 | 13,331,000 | |
Federal Home Loan Bank Certificates And Obligations F H L B Callable Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 10,000,000 | 10,000,000 | |
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 4,600,000 | 3,400,000 | |
Subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 74,633,000 | 74,590,000 | |
Maturity period | 15 years | ||
Principal amount of debt issued | $ 75,000,000 | ||
Discount rate | 1.15% | ||
Fixed interest rate | 6.875% | ||
Maturity period with fixed interest rate | 10 years | ||
Non callable period | 10 years | ||
Subordinated borrowings | Debt Instrument Variable Rate Three Month L I B O R | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 5.113% | ||
Unamortized debt issuance expense | $ 61,000 | $ 92,000 | |
Junior subordinated borrowing | Trust I | |||
Debt Instrument [Line Items] | |||
Common stock of trust | 100.00% | ||
Common stock of trust included in other asset | $ 500,000 | ||
Sole asset of trust in form of debt | $ 15,500,000 | ||
Variable interest rate | 2.33% | 2.01% | |
Period up to which interest payments can be deferred | 5 years | ||
Junior subordinated borrowing | Trust II | |||
Debt Instrument [Line Items] | |||
Common stock of trust | 100.00% | ||
Common stock of trust included in other asset | $ 200,000 | ||
Sole asset of trust in form of debt | $ 8,200,000 | ||
Variable interest rate | 2.53% | 1.90% | |
Period up to which interest payments can be deferred | 5 years | ||
Junior subordinated borrowing | LIBOR | Trust I | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.85% | ||
Junior subordinated borrowing | LIBOR | Trust II | |||
Debt Instrument [Line Items] | |||
Interest rate margin | 1.70% | ||
Federal Reserve Bank Advances | |||
Debt Instrument [Line Items] | |||
Line of credit facility, remaining borrowing capacity | $ 553,200,000 | $ 511,000,000 | |
Short-term debt | $ 0 | $ 0 |
BORROWED FUNDS - Summary of Mat
BORROWED FUNDS - Summary of Maturities of FHLB (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Principal | |
Total FHLB advances | $ 14,563 |
Fixed rate advances | |
Principal | |
2022 | 3,999 |
2023 | 0 |
2024 | 35 |
2025 | 5,971 |
2025 and beyond | $ 4,558 |
Fixed rate advances | Weighted Average Rate | |
Weighted Average Rate | |
2022 | 2.04% |
2023 | 0.00% |
2024 | 0.00% |
2025 | 1.99% |
2025 and beyond | 0.72% |
Total FHLB advances | 1.60% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Notional amount | $ 3,714,951,000 | $ 3,711,905,000 |
Cash collateral pledged | 38,600,000 | |
Amortized cost of securities pledged as collateral to derivative counterparties | 45,400,000 | |
Fair value of securities as pledged collateral to derivative counterparties | 45,300,000 | |
Commercial counterparties | ||
Derivative [Line Items] | ||
Net asset position | 26,700,000 | 2,200,000 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 7,700,000 | |
Cash collateral pledged | 38,609,000 | 43,694,000 |
Interest rate swaps | Commercial counterparties | ||
Derivative [Line Items] | ||
Cash collateral pledged | 0 | 0 |
Net asset position | 22,700,000 | 76,800,000 |
Collateral already posted, aggregate fair value | 25,300,000 | 2,500,000 |
Interest rate swaps | Institutional counterparties | ||
Derivative [Line Items] | ||
Cash collateral pledged | 38,609,000 | 43,694,000 |
Collateral already posted, aggregate fair value | 20,300,000 | 33,300,000 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | 1,184,000 | 8,192,000 |
Economic hedges | ||
Derivative [Line Items] | ||
Credit valuation adjustments | $ 0 | |
Economic hedges | Interest rate swap on tax advantaged economic development bond | ||
Derivative [Line Items] | ||
Fixed rate of interest | 5.09% | |
Maturity period | 21 years | |
Economic hedges | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount | $ 3,713,767,000 | 3,703,713,000 |
Economic hedges | Designated as Hedging Instrument | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 3,400,000,000 | |
Economic hedges | Designated as Hedging Instrument | Interest rate swaps | Interest rate swap on tax advantaged economic development bond | ||
Derivative [Line Items] | ||
Notional amount | 7,677,000 | 7,879,000 |
Economic hedges | Designated as Hedging Instrument | Risk participation agreements with dealer banks | ||
Derivative [Line Items] | ||
Notional amount | 329,679,000 | 320,981,000 |
Economic hedges | Designated as Hedging Instrument | Forward sale commitments | ||
Derivative [Line Items] | ||
Notional amount | $ 307,000 | $ 6,377,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 3,714,951 | $ 3,711,905 |
Estimated fair value asset (liability) | 3,262 | 43,426 |
Impact of settled to market contracts | 3,400 | 45,700 |
Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 7,700 | |
Designated as Hedging Instrument | Economic hedges | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 3,713,767 | 3,703,713 |
Estimated fair value asset (liability) | 3,244 | 43,302 |
Designated as Hedging Instrument | Economic hedges | Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 3,400,000 | |
Designated as Hedging Instrument | Economic hedges | Interest rate swaps | Interest rate swap on tax advantaged economic development bond | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 7,677 | $ 7,879 |
Weighted average maturity | 7 years 8 months 12 days | 7 years 10 months 24 days |
Weighted average rate, received | 0.60% | 0.47% |
Weighted average rate, contract pay rate | 5.09% | 5.09% |
Estimated fair value asset (liability) | $ (726) | $ (1,158) |
Designated as Hedging Instrument | Economic hedges | Interest rate swaps | Loans with commercial loan customers | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 1,688,052 | $ 1,684,238 |
Weighted average maturity | 6 years | 5 years 9 months 18 days |
Weighted average rate, received | 3.97% | 3.99% |
Weighted average rate, contract pay rate | 2.01% | 1.91% |
Estimated fair value asset (liability) | $ (2,540) | $ 74,348 |
Designated as Hedging Instrument | Economic hedges | Reverse interest rate swaps | Loans with commercial loan customers | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 1,688,052 | $ 1,684,238 |
Weighted average maturity | 6 years | 5 years 9 months 18 days |
Weighted average rate, received | 2.01% | 1.91% |
Weighted average rate, contract pay rate | 3.97% | 3.99% |
Estimated fair value asset (liability) | $ 6,179 | $ (30,454) |
Designated as Hedging Instrument | Economic hedges | Risk participation agreements with dealer banks | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 329,679 | $ 320,981 |
Weighted average maturity | 5 years 6 months | 5 years 9 months 18 days |
Estimated fair value asset (liability) | $ 324 | $ 432 |
Designated as Hedging Instrument | Economic hedges | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 307 | $ 6,377 |
Weighted average maturity | 2 months 12 days | 2 months 12 days |
Estimated fair value asset (liability) | $ 7 | $ 134 |
Not Designated as Hedging Instrument | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 1,184 | 8,192 |
Estimated fair value asset (liability) | 18 | 124 |
Not Designated as Hedging Instrument | Commitments to lend | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 1,184 | $ 8,192 |
Weighted average maturity | 2 months 12 days | 2 months 12 days |
Estimated fair value asset (liability) | $ 18 | $ 124 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest rate swaps | Economic hedges | Industrial revenue bond | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in other non-interest income | $ 432 | $ 346 |
Interest rate swaps | Economic hedges | Loans with commercial loan customers | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in other non-interest income | (78,698) | (60,302) |
Favorable change in credit valuation adjustment recognized in other non-interest income | 867 | 2,502 |
Reverse interest rate swaps | Economic hedges | Loans with commercial loan customers | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in other non-interest income | 78,698 | 60,302 |
Risk participation agreements | Economic hedges | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in other non-interest income | (108) | (329) |
Forward commitments | Economic hedges | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in other non-interest income | (127) | 6 |
Realized gain/(loss) in other non-interest income | 0 | (6) |
Commitments to lend | Non-hedging derivatives | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in other non-interest income | (106) | (550) |
Realized gain/(loss) in other non-interest income | $ 252 | $ 1,352 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting of Financial Assets and Derivative Assets (Details) - Interest rate swaps - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting of Financial Assets and Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 49,496 | $ 79,032 |
Gross Amounts Offset in the Statements of Condition | (49) | (75) |
Net Amounts of Assets Presented in the Statements of Condition | 49,447 | 78,957 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 49,447 | 78,957 |
Institutional counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross Amounts of Recognized Assets | 26,748 | 2,223 |
Gross Amounts Offset in the Statements of Condition | (49) | (75) |
Net Amounts of Assets Presented in the Statements of Condition | 26,699 | 2,148 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 26,699 | 2,148 |
Commercial counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross Amounts of Recognized Assets | 22,748 | 76,809 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 22,748 | 76,809 |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | $ 22,748 | $ 76,809 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Offsetting Financial Liabilities and Derivative Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | $ 38,600 | |
Interest rate swaps | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | (49,293) | $ (80,607) |
Gross amounts offset in the Statements of Condition | 3,712 | 44,814 |
Net Amounts of Liabilities Presented in the Statements of Condition | (45,581) | (35,793) |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 45,288 | 34,896 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 38,609 | 43,694 |
Net Amount | 38,316 | 42,797 |
Interest rate swaps | Institutional counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | (24,005) | (78,146) |
Gross amounts offset in the Statements of Condition | 3,712 | 44,814 |
Net Amounts of Liabilities Presented in the Statements of Condition | (20,293) | (33,332) |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 45,288 | 34,896 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 38,609 | 43,694 |
Net Amount | 63,604 | 45,258 |
Interest rate swaps | Commercial counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | (25,288) | (2,461) |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | (25,288) | (2,461) |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | $ (25,288) | $ (2,461) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 2.6 | $ 2.8 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease contract term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease contract term | 18 years |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Lease Right-of-Use Assets | ||
Operating lease right-of-use assets | $ 53,641 | $ 52,180 |
Finance lease right-of-use assets | 6,543 | 6,674 |
Total Lease Right-of-Use Assets | 60,184 | 58,854 |
Lease Liabilities | ||
Operating lease liabilities | 57,085 | 55,674 |
Finance lease liabilities | 9,725 | 9,862 |
Total Lease Liabilities | $ 66,810 | $ 65,536 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Premises and equipment, net | Premises and equipment, net |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Weighted-Average Remaining Lease Term (in years) | ||
Operating leases | 9 years 6 months | 9 years 6 months |
Finance leases | 12 years 7 months 6 days | 12 years 9 months 18 days |
Weighted-Average Discount Rate | ||
Operating leases | 2.59% | 2.77% |
Finance leases | 5.00% | 5.00% |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 2,614 | $ 3,330 |
Operating cash flows from finance leases | 120 | 127 |
Financing cash flows from finance leases | $ 138 | $ 131 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 | $ 7,499 | |
2023 | 9,192 | |
2024 | 7,993 | |
2025 | 6,215 | |
2026 | 4,992 | |
Thereafter | 28,683 | |
Total undiscounted lease payments | 64,574 | |
Less amounts representing interest | (7,489) | |
Lease liability | 57,085 | $ 55,674 |
Finance Leases | ||
2022 | 772 | |
2023 | 1,037 | |
2024 | 1,037 | |
2025 | 1,037 | |
2026 | 1,037 | |
Thereafter | 8,187 | |
Total undiscounted lease payments | 13,107 | |
Less amounts representing interest | (3,382) | |
Lease liability | $ 9,725 | $ 9,862 |
OTHER COMMITMENTS, CONTINGENC_2
OTHER COMMITMENTS, CONTINGENCIES, OFF-BALANCE SHEET ACTIVITIES, AND PANDEMIC IMPACT Narrative (Details) $ in Millions | Mar. 31, 2022USD ($)loan | Dec. 31, 2021USD ($)loan |
Commitments and Contingencies Disclosure [Abstract] | ||
Active modified loans | loan | 7 | 19 |
Active modified loans, carrying value | $ | $ 13.5 | $ 14.4 |
CAPITAL RATIOS AND SHAREHOLDE_3
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) | Mar. 31, 2022 | Dec. 31, 2021 |
Tier 1 capital to risk-weighted assets | ||
Total capital to risk-weighted assets | 0.160 | 0.173 |
Common equity tier 1 capital to risk-weighted assets | 13.90% | 15.00% |
Tier 1 capital to risk-weighted assets | 0.142 | 0.153 |
Tier 1 capital to average assets | 0.103 | 0.105 |
Total capital to risk-weighted assets | 0.080 | |
Common equity tier 1 capital to risk-weighted assets | 0.045 | |
Tier 1 capital to risk-weighted assets | 0.060 | |
Tier 1 capital to average assets | 0.040 | |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Total capital to risk-weighted assets | 0.145 | 0.159 |
Common equity tier 1 capital to risk-weighted assets | 13.50% | 14.80% |
Tier 1 capital to risk-weighted assets | 0.135 | 0.148 |
Tier 1 capital to average assets | 0.098 | 0.101 |
CAPITAL RATIOS AND SHAREHOLDE_4
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders’ equity | $ 1,093,861 | $ 1,182,435 | $ 1,175,139 | $ 1,187,773 |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders’ equity | (78,237) | (3,243) | 10,721 | 30,871 |
Net unrealized holding loss on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income, before tax | (103,179) | (1,806) | ||
Income taxes related to items of accumulated other comprehensive income | 26,786 | 407 | ||
Total shareholders’ equity | (76,392) | (1,398) | 13,308 | 33,458 |
Net unrealized holding (loss) on pension plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income, before tax | (2,518) | (2,518) | ||
Income taxes related to items of accumulated other comprehensive income | 674 | 674 | ||
Total shareholders’ equity | $ (1,845) | $ (1,845) | $ (2,587) | $ (2,587) |
CAPITAL RATIOS AND SHAREHOLDE_5
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net unrealized gains (losses) arising during the period | ||
Net of Tax | $ (74,994) | $ (20,150) |
Less: reclassification adjustment for gains (losses) realized in net income | ||
Net of Tax | 0 | 0 |
Other comprehensive income (loss) | ||
Before Tax | (101,373) | (27,013) |
Tax Effect | 26,379 | 6,863 |
Total other comprehensive (loss) | (74,994) | (20,150) |
Net unrealized holding loss on AFS securities | ||
Net unrealized gains (losses) arising during the period | ||
Before Tax | (101,373) | (27,013) |
Tax Effect | 26,379 | 6,863 |
Net of Tax | (74,994) | (20,150) |
Less: reclassification adjustment for gains (losses) realized in net income | ||
Before Tax | 0 | 0 |
Tax Effect | 0 | 0 |
Net of Tax | 0 | 0 |
Other comprehensive income (loss) | ||
Before Tax | (101,373) | (27,013) |
Tax Effect | 26,379 | 6,863 |
Total other comprehensive (loss) | $ (74,994) | $ (20,150) |
CAPITAL RATIOS AND SHAREHOLDE_6
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | $ 1,182,435 | $ 1,187,773 |
Other comprehensive loss before reclassifications | (74,994) | (20,150) |
Less: amounts reclassified from accumulated other comprehensive (loss) | 0 | 0 |
Total other comprehensive (loss) | (74,994) | (20,150) |
Balance at End of Period | 1,093,861 | 1,175,139 |
Accumulated other comprehensive loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (3,243) | 30,871 |
Total other comprehensive (loss) | (74,994) | (20,150) |
Balance at End of Period | (78,237) | 10,721 |
Net unrealized holding loss on AFS Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (1,398) | 33,458 |
Other comprehensive loss before reclassifications | (74,994) | (20,150) |
Less: amounts reclassified from accumulated other comprehensive (loss) | 0 | 0 |
Total other comprehensive (loss) | (74,994) | (20,150) |
Balance at End of Period | (76,392) | 13,308 |
Net unrealized holding loss on pension plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (1,845) | (2,587) |
Other comprehensive loss before reclassifications | 0 | 0 |
Less: amounts reclassified from accumulated other comprehensive (loss) | 0 | 0 |
Total other comprehensive (loss) | 0 | 0 |
Balance at End of Period | $ (1,845) | $ (2,587) |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Earnings per share | |||
Net income | $ 20,196 | $ 13,031 | $ 20,196 |
Average number of common shares issued (in shares) | 51,903 | 51,903 | |
Less: average number of treasury shares (in shares) | 3,494 | 948 | |
Less: average number of unvested stock award shares (in shares) | 741 | 625 | |
Average number of basic shares outstanding (in shares) | 47,668 | 50,330 | |
Average number of diluted shares outstanding (in shares) | 48,067 | 50,565 | |
Basic earnings per common share (in dollars per share) | $ 0.42 | $ 0.26 | |
Diluted earnings per common share (in dollars per share) | $ 0.42 | $ 0.26 | |
Unvested stock award shares | |||
Earnings per share | |||
Plus: dilutive effect of share-based payment arrangements (in shares) | 392 | 235 | |
Stock options | |||
Earnings per share | |||
Plus: dilutive effect of share-based payment arrangements (in shares) | 7 | 0 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Unvested stock award shares | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 366 | 390 |
Stock options | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 71 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Summary of Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Non-Vested Stock Awards Outstanding | ||
Number of Shares | ||
Balance at the beginning of the period (in shares) | 710 | |
Granted (in shares) | 139 | |
Acquired (in shares) | 0 | |
Stock awards vested (in shares) | (63) | |
Forfeited (in shares) | (36) | |
Expired (in shares) | 0 | |
Balance at the end of the period (in shares) | 750 | |
Weighted-Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 20.16 | |
Granted (in dollars per share) | 28.92 | |
Acquired (in dollars per share) | 0 | |
Stock awards vested (in dollars per share) | 22.09 | |
Forfeited (in dollars per share) | 27.12 | |
Expired (in dollars per share) | 0 | |
Balance at the end of the period (in dollars per share) | $ 21.73 | |
Stock Options Outstanding | ||
Number of Shares | ||
Stock awards vested (in shares) | (63) | (44) |
Number of Shares | ||
Balance at the beginning of the period (in shares) | 80 | |
Granted (in shares) | 0 | |
Acquired (in shares) | 0 | |
Stock options exercised (in shares) | 1 | |
Forfeited (in shares) | 0 | |
Expired (in shares) | (3) | |
Balance at the end of the period (in shares) | 78 | |
Weighted-Average Exercise Price | ||
Balance at the beginning of the period (in dollars per share) | $ 25.21 | |
Granted (in dollars per share) | 0 | |
Acquired (in dollars per share) | 0 | |
Stock options exercised (in dollars per share) | 23.30 | |
Forfeited (in dollars per share) | 0 | |
Expired (in dollars per share) | 23.34 | |
Balance at the end of the period (in dollars per share) | $ 25.30 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of stock options | $ 25 | $ 69 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of stock options | $ 25 | $ 69 |
Stock awards vested (in shares) | 63 | 44 |
Non-Vested Stock Awards Outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards vested (in shares) | 63 | |
Total compensation cost | $ 1,800 | $ 700 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | $ 7,800 | $ 8,400 |
Securities available for sale, at fair value | 2,032,575 | 1,877,585 |
Marketable equity securities | 14,719 | 15,453 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 7,798 | 8,354 |
Securities available for sale, at fair value | 2,032,575 | 1,877,585 |
Marketable equity securities | 14,719 | 15,453 |
Loans held for investment at fair value | 7,224,588 | 6,850,975 |
Loans held for sale | 300 | 6,110 |
Derivative assets | 49,071 | 79,528 |
Derivative liabilities | 45,809 | 35,194 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale, at fair value | 0 | 0 |
Marketable equity securities | 14,064 | 14,798 |
Loans held for investment at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale, at fair value | 2,028,555 | 1,873,555 |
Marketable equity securities | 655 | 655 |
Loans held for investment at fair value | 0 | 0 |
Loans held for sale | 300 | 6,110 |
Derivative assets | 49,046 | 79,270 |
Derivative liabilities | 45,809 | 35,194 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 7,798 | 8,354 |
Securities available for sale, at fair value | 4,020 | 4,030 |
Marketable equity securities | 0 | 0 |
Loans held for investment at fair value | 7,224,588 | 6,850,975 |
Loans held for sale | 0 | 0 |
Derivative assets | 25 | 258 |
Derivative liabilities | 0 | 0 |
Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 7,798 | 8,354 |
Loans held for sale | 300 | 6,110 |
Derivative assets | 49,071 | 79,528 |
Capitalized servicing rights | 1,786 | 1,966 |
Derivative liabilities | 45,809 | 35,194 |
Recurring | Fair Value | Debt securities | U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 290,609 | 59,973 |
Recurring | Fair Value | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 70,223 | 77,177 |
Recurring | Fair Value | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 697,712 | 688,336 |
Recurring | Fair Value | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 654,386 | 705,859 |
Recurring | Fair Value | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 258,324 | 282,334 |
Recurring | Fair Value | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 44,498 | 45,660 |
Recurring | Fair Value | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 16,823 | 18,246 |
Recurring | Fair Value | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 14,719 | 15,453 |
Loans held for investment at fair value | 1,197 | 1,200 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Debt securities | U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 14,064 | 14,798 |
Loans held for investment at fair value | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 300 | 6,110 |
Derivative assets | 49,046 | 79,270 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 45,809 | 35,194 |
Recurring | Level 2 | Debt securities | U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 290,609 | 59,973 |
Recurring | Level 2 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 70,223 | 77,177 |
Recurring | Level 2 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 697,712 | 688,336 |
Recurring | Level 2 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 654,386 | 705,859 |
Recurring | Level 2 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 258,324 | 282,334 |
Recurring | Level 2 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 40,478 | 41,630 |
Recurring | Level 2 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 16,823 | 18,246 |
Recurring | Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 655 | 655 |
Loans held for investment at fair value | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 7,798 | 8,354 |
Securities available for sale, at fair value | 4,030 | |
Loans held for sale | 0 | 0 |
Derivative assets | 25 | 258 |
Capitalized servicing rights | 1,786 | 1,966 |
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | Debt securities | U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Agency commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 4,020 | 4,030 |
Recurring | Level 3 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable equity securities | 0 | 0 |
Loans held for investment at fair value | $ 1,197 | $ 1,200 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022USD ($)security | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Jan. 01, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of trading securities in the portfolio | security | 1 | |||
Retained earnings write-down | $ 125,343 | $ 139,383 | ||
Continuing Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments for origination of mortgage loans held-for-sale | 7,400 | $ 44,000 | ||
Proceeds from sale and collection of loans held-for-sale | 13,100 | 46,900 | ||
Continuing Operations | Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) in fair value of loans held for sale included in earnings | $ (175) | $ 6 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Loans Held for Investment | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Retained earnings write-down | $ 11,200 |
FAIR VALUE MEASUREMENTS - Loans
FAIR VALUE MEASUREMENTS - Loans Held for Investment (Details) - Loans Held for Investment - Continuing Operations - Recurring - Level 2 - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | $ 1,197 | $ 1,200 |
Aggregate Unpaid Principal | 23,148 | 31,430 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ (21,951) | $ (30,230) |
FAIR VALUE MEASUREMENTS - Loa_2
FAIR VALUE MEASUREMENTS - Loans Held for Sale (Details) - Level 2 - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans Held for Sale | ||
Aggregate Fair Value | $ 300 | $ 6,110 |
Recurring | ||
Loans Held for Sale | ||
Aggregate Fair Value | 300 | 6,110 |
Continuing Operations | Recurring | Loans Held for Sale | ||
Loans Held for Sale | ||
Aggregate Fair Value | 300 | 6,110 |
Aggregate Unpaid Principal | 291 | 5,926 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 9 | $ 184 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Maturities, calls, and prepayments of AFS security | $ (130,118) | $ (166,998) |
Commitments to Lend | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Unrealized (loss)/gain, net recognized in other non-interest income | 70 | 818 |
Unrealized gain relating to instruments still held at the end of the period | 18 | 185 |
Derivative Asset (Liability) | ||
Beginning balance | 124 | 735 |
Unrealized (loss)/gain, net recognized in other non-interest income | 70 | 818 |
Transfers to held for sale loans | (176) | (1,368) |
Ending balance | 18 | 185 |
Forward Commitments | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Unrealized (loss)/gain, net recognized in other non-interest income | (127) | 6 |
Unrealized gain relating to instruments still held at the end of the period | 7 | 326 |
Derivative Asset (Liability) | ||
Beginning balance | 134 | 320 |
Unrealized (loss)/gain, net recognized in other non-interest income | (127) | 6 |
Ending balance | 7 | 326 |
Trading Security | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Balance at the beginning of the period | 8,354 | 9,708 |
Unrealized (loss)/gain, net recognized in other non-interest income | (354) | (166) |
Paydown of asset | (202) | (192) |
Balance at the end of the period | 7,798 | 9,350 |
Unrealized gain relating to instruments still held at the end of the period | 121 | 887 |
Derivative Asset (Liability) | ||
Unrealized (loss)/gain, net recognized in other non-interest income | (354) | (166) |
Securities Available for Sale | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Balance at the beginning of the period | 4,030 | 15,000 |
Maturities, calls, and prepayments of AFS security | (15,000) | |
Unrealized (loss) included in accumulated other comprehensive income (loss) | 10 | |
Balance at the end of the period | 4,020 | 0 |
Unrealized gain relating to instruments still held at the end of the period | 20 | 0 |
Loans Held for Investment | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Balance at the beginning of the period | 1,200 | 2,265 |
Unrealized (loss)/gain, net recognized in other non-interest income | 209 | 414 |
Paydown of asset | (212) | (1,231) |
Balance at the end of the period | 1,197 | 1,448 |
Unrealized gain relating to instruments still held at the end of the period | 0 | 0 |
Derivative Asset (Liability) | ||
Unrealized (loss)/gain, net recognized in other non-interest income | 209 | 414 |
Capitalized Servicing Rights | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Balance at the beginning of the period | 1,966 | 3,033 |
Unrealized (loss)/gain, net recognized in other non-interest income | (180) | (65) |
Additions to servicing rights | 0 | |
Balance at the end of the period | 1,786 | 2,968 |
Derivative Asset (Liability) | ||
Unrealized (loss)/gain, net recognized in other non-interest income | (180) | $ (65) |
Discontinued Operations | Commitments to Lend | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Unrealized gain/(loss), net recognized in discontinued operations | 0 | |
Derivative Asset (Liability) | ||
Unrealized gain/(loss), net recognized in discontinued operations | 0 | |
Discontinued Operations | Capitalized Servicing Rights | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Unrealized gain/(loss), net recognized in discontinued operations | 0 | |
Derivative Asset (Liability) | ||
Unrealized gain/(loss), net recognized in discontinued operations | $ 0 |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) uSDPerLoan in Thousands, $ in Thousands | Mar. 31, 2022USD ($)uSDPerLoan | Dec. 31, 2021USD ($)uSDPerLoan |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security | $ 7,798 | $ 8,354 |
Level 3 | Recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security | 7,798 | 8,354 |
AFS Securities | 4,020 | |
Loans held for investment | 1,197 | 1,200 |
Total | 14,826 | 15,808 |
Level 3 | Recurring | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset | 18 | 124 |
Level 3 | Recurring | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset | 7 | 134 |
Level 3 | Recurring | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 1,786 | $ 1,966 |
Level 3 | Recurring | Discounted Cash Flow | Discount Rate | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security, Significant Unobservable Input Value | 0.0432 | 0.0335 |
Loan held for investment, Significant Unobservable Input Value | 0.2500 | 0.2500 |
Level 3 | Recurring | Discounted Cash Flow | Discount Rate | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Significant Unobservable Input Value | 0.0901 | 0.0950 |
Level 3 | Recurring | Discounted Cash Flow | Collateral Value | Minimum | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loan held for investment, Significant Unobservable Input Value | 6,300,000 | 6,300,000 |
Level 3 | Recurring | Discounted Cash Flow | Collateral Value | Maximum | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loan held for investment, Significant Unobservable Input Value | 16,900,000 | 19,800,000 |
Level 3 | Recurring | Discounted Cash Flow | Constant Prepayment Rate (CPR) | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Significant Unobservable Input Value | 0.1255 | 0.1941 |
Level 3 | Recurring | Indication from Market Maker | Price | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
AFS Securities, Significant Unobservable Input Value | 1.0100 | |
Level 3 | Recurring | Indication from Market Maker | Price | AFS Securities | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
AFS Securities, Significant Unobservable Input Value | 1.0100 | |
Level 3 | Recurring | Historical Trend | Closing Ratio | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset, Significant Unobservable Input Value | 0.8000 | 0.8209 |
Level 3 | Recurring | Historical Trend | Closing Ratio | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset, Significant Unobservable Input Value | 0.8000 | 0.8209 |
Level 3 | Recurring | Pricing Model | Origination Costs, per loan | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset, Significant Unobservable Input Value | uSDPerLoan | 3 | 3 |
Level 3 | Recurring | Pricing Model | Origination Costs, per loan | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset, Significant Unobservable Input Value | uSDPerLoan | 3 | 3 |
FAIR VALUE MEASUREMENTS - Mea_2
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated | $ 8,192 | $ 12,482 |
Capitalized servicing rights | 13,579 | 14,056 |
Total | $ 21,771 | $ 26,538 |
FAIR VALUE MEASUREMENTS - Uno_2
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - Non-recurring - Level 3 $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated | $ 8,192 | $ 12,482 |
Capitalized servicing rights | 13,579 | 14,056 |
Total | 21,771 | 26,538 |
Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated | $ 8,192 | $ 12,482 |
Minimum | Discounted Cash Flow - Loss Severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated, Unobservable Inputs, Range (Weighted Average) | 1 | 0.3596 |
Minimum | Appraised Value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated, Unobservable Inputs, Range (Weighted Average) | 0 | 0 |
Maximum | Discounted Cash Flow - Loss Severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated, Unobservable Inputs, Range (Weighted Average) | 1.0224 | 1.3309 |
Maximum | Appraised Value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated, Unobservable Inputs, Range (Weighted Average) | 4,319,000 | 405,000 |
Weighted Average | Discounted Cash Flow - Loss Severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated, Unobservable Inputs, Range (Weighted Average) | 0.4507 | 0.4914 |
Weighted Average | Appraised Value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated, Unobservable Inputs, Range (Weighted Average) | 2,497,000 | 256,000 |
Capitalized servicing rights | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 13,579 | $ 14,056 |
Capitalized servicing rights | Minimum | Constant Prepayment Rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average) | 0.0616 | 0.0624 |
Capitalized servicing rights | Minimum | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average) | 0.0909 | 0.0959 |
Capitalized servicing rights | Maximum | Constant Prepayment Rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average) | 0.1364 | 0.1773 |
Capitalized servicing rights | Maximum | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average) | 0.1174 | 0.1311 |
Capitalized servicing rights | Weighted Average | Constant Prepayment Rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average) | 0.1151 | 0.1329 |
Capitalized servicing rights | Weighted Average | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, Unobservable Inputs, Range (Weighted Average) | 0.1083 | 0.1197 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financial Assets | ||
Trading security | $ 7,800 | $ 8,400 |
Marketable equity securities | 14,719 | 15,453 |
Securities available for sale, at fair value | 2,032,575 | 1,877,585 |
Securities held to maturity | 580,538 | 647,236 |
FHLB bank stock and restricted securities | 10,829 | 10,800 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 1,607,251 | 1,627,807 |
Trading security | 0 | 0 |
Marketable equity securities | 14,064 | 14,798 |
Securities available for sale, at fair value | 0 | 0 |
Securities held to maturity | 0 | 0 |
Net loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances and other | 0 | 0 |
Subordinated borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 0 | 0 |
Marketable equity securities | 655 | 655 |
Securities available for sale, at fair value | 2,028,555 | 1,873,555 |
Securities held to maturity | 578,021 | 644,497 |
Net loans | 0 | 0 |
Loans held for sale | 300 | 6,110 |
Accrued interest receivable | 33,813 | 33,534 |
Derivative assets | 49,046 | 79,270 |
Financial Liabilities | ||
Total deposits | 10,683,261 | 10,073,217 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances and other | 13,487 | 13,053 |
Subordinated borrowings | 94,267 | 95,006 |
Derivative liabilities | 45,809 | 35,194 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 7,798 | 8,354 |
Marketable equity securities | 0 | 0 |
Securities available for sale, at fair value | 4,020 | 4,030 |
Securities held to maturity | 2,517 | 2,739 |
Net loans | 7,224,588 | 6,850,975 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 25 | 258 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances and other | 0 | 0 |
Subordinated borrowings | 0 | 0 |
Derivative liabilities | 0 | 0 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 1,607,251 | 1,627,807 |
Trading security | 7,798 | 8,354 |
Marketable equity securities | 14,719 | 15,453 |
Securities available for sale, at fair value | 2,032,575 | 1,877,585 |
Securities held to maturity | 612,174 | 636,503 |
FHLB bank stock and restricted securities | 10,829 | 10,800 |
Net loans | 7,167,848 | 6,719,753 |
Loans held for sale | 300 | 6,110 |
Accrued interest receivable | 33,813 | 33,534 |
Derivative assets | 49,071 | 79,528 |
Financial Liabilities | ||
Total deposits | 10,699,208 | 10,068,953 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances and other | 14,563 | 13,331 |
Subordinated borrowings | 97,569 | 97,513 |
Derivative liabilities | 45,809 | 35,194 |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 1,607,251 | 1,627,807 |
Trading security | 7,798 | 8,354 |
Marketable equity securities | 14,719 | 15,453 |
Securities available for sale, at fair value | 2,032,575 | 1,877,585 |
Securities held to maturity | 580,538 | 647,236 |
Net loans | 7,224,588 | 6,850,975 |
Loans held for sale | 300 | 6,110 |
Accrued interest receivable | 33,813 | 33,534 |
Derivative assets | 49,071 | 79,528 |
Financial Liabilities | ||
Total deposits | 10,683,261 | 10,073,217 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances and other | 13,487 | 13,053 |
Subordinated borrowings | 94,267 | 95,006 |
Derivative liabilities | $ 45,809 | $ 35,194 |
NET INTEREST INCOME AFTER BEN_3
NET INTEREST INCOME AFTER BENEFIT/PROVISION FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Banking and Thrift, Interest [Abstract] | ||
Net interest income | $ 69,063 | $ 75,093 |
(Benefit)/provision for credit losses | (4,000) | 6,500 |
Net interest after provision for credit losses | $ 73,063 | $ 68,593 |