Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 08, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.01 per share | |
Trading Symbol | BHLB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 43,292,906 | |
Entity Central Index Key | 0001108134 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and due from banks | $ 111,676 | $ 148,148 |
Short-term investments | 1,082,019 | 1,055,096 |
Total cash and cash equivalents | 1,193,695 | 1,203,244 |
Trading securities, at fair value | 5,909 | 6,142 |
Equity securities, at fair value | 12,823 | 13,029 |
Securities available for sale, at fair value | 625,857 | 1,022,285 |
Securities held to maturity (fair values of $459,626 and $476,228) | 531,820 | 543,351 |
Federal Home Loan Bank stock | 20,522 | 22,689 |
Total securities | 1,196,931 | 1,607,496 |
Less: Allowance for credit losses on held to maturity securities | (61) | (68) |
Net securities | 1,196,870 | 1,607,428 |
Loans held for sale | 6,345 | 2,237 |
Total loans | 9,085,753 | 9,039,686 |
Less: Allowance for credit losses on loans | (107,331) | (105,357) |
Net loans | 8,978,422 | 8,934,329 |
Premises and equipment, net | 57,832 | 68,915 |
Other intangible assets | 18,460 | 19,664 |
Cash surrender value of bank-owned life insurance policies | 243,777 | 242,309 |
Other assets | 368,190 | 341,757 |
Total assets | 12,146,611 | 12,430,821 |
Liabilities | ||
Demand deposits | 2,261,794 | 2,469,164 |
NOW and other deposits | 793,492 | 858,644 |
Money market deposits | 3,411,672 | 3,565,516 |
Savings deposits | 1,010,630 | 1,053,810 |
Time deposits | 2,405,384 | 2,686,250 |
Total deposits | 9,882,972 | 10,633,384 |
Short-term debt | 210,000 | 260,000 |
Long-term Federal Home Loan Bank advances and other | 127,169 | 125,223 |
Subordinated borrowings | 121,425 | 121,363 |
Total borrowings | 458,594 | 506,586 |
Other liabilities | 297,663 | 278,630 |
Total liabilities | 11,136,688 | 11,418,600 |
Shareholders’ equity | ||
Common stock ($0.01 par value; 100,000,000 shares authorized and 51,903,190 shares issued and 43,414,610 shares outstanding in 2024; 51,903,190 shares issued and 43,500,872 shares outstanding in 2023) | 528 | 528 |
Additional paid-in capital - common stock | 1,422,709 | 1,423,273 |
Unearned compensation | (11,297) | (10,109) |
Retained (deficit) | (61,147) | (33,136) |
Accumulated other comprehensive (loss) | (114,415) | (143,016) |
Treasury stock, at cost (8,488,580 shares in 2024 and 8,402,318 shares in 2023) | (226,455) | (225,319) |
Total shareholders’ equity | 1,009,923 | 1,012,221 |
Total liabilities and shareholders’ equity | 12,146,611 | 12,430,821 |
Held For Sale | ||
Assets | ||
Assets held for sale | 83,020 | 10,938 |
Liabilities | ||
Liabilities held for sale | $ 497,459 | $ 0 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity fair value | $ 459,626 | $ 476,228 |
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) | 43,414,610 | 43,500,872 |
Treasury stock, shares (in shares) | 8,488,580 | 8,402,318 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest and dividend income | ||
Loans | $ 136,560 | $ 117,493 |
Securities and other | 15,446 | 14,823 |
Total interest and dividend income | 152,006 | 132,316 |
Interest expense | ||
Deposits | 56,862 | 26,082 |
Borrowings | 7,004 | 8,701 |
Total interest expense | 63,866 | 34,783 |
Net interest income | 88,140 | 97,533 |
Non-interest income | ||
Other, net | 1,874 | 359 |
Fair value adjustments on securities | (115) | 234 |
(Loss) on sale of AFS securities, net | (49,909) | 0 |
Total non-interest income | (32,599) | 16,606 |
Total net revenue | 55,541 | 114,139 |
Provision expense for credit losses | 6,000 | 8,999 |
Non-interest expense | ||
Compensation and benefits | 40,735 | 39,071 |
Occupancy and equipment | 8,698 | 9,379 |
Technology | 9,904 | 9,471 |
Professional services | 2,676 | 3,277 |
Regulatory expenses | 1,845 | 1,426 |
Amortization of intangible assets | 1,205 | 1,205 |
Marketing | 1,116 | 1,208 |
Restructuring and other expenses | 3,617 | (36) |
Other | 6,224 | 6,954 |
Total non-interest expense | 76,020 | 71,955 |
(Loss)/income before income taxes | (26,479) | 33,185 |
Income tax (benefit)/expense | (6,291) | 5,548 |
Net (loss)/income | $ (20,188) | $ 27,637 |
Basic (loss)/earnings per common share (in dollars per share) | $ (0.47) | $ 0.63 |
Diluted (loss)/earnings per common share (in dollars per share) | $ (0.47) | $ 0.63 |
Weighted average shares outstanding: | ||
Basic (in shares) | 42,777 | 43,693 |
Diluted (in shares) | 43,028 | 44,036 |
Total fee income | ||
Non-interest income | ||
Total fee income | $ 15,551 | $ 16,013 |
Deposit related fees | ||
Non-interest income | ||
Total fee income | 8,305 | 8,311 |
Loan related fees | ||
Non-interest income | ||
Total fee income | 2,663 | 2,469 |
Gain on SBA loans | ||
Non-interest income | ||
Total fee income | 1,699 | 2,494 |
Wealth management fees | ||
Non-interest income | ||
Total fee income | $ 2,884 | $ 2,739 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss)/income | $ (20,188) | $ 27,637 |
Other comprehensive (loss), before tax: | ||
Changes in unrealized (loss) on debt securities available-for-sale | 44,287 | 23,968 |
Changes in unrealized gain/(loss) on derivative hedges | (5,524) | 5,798 |
Income taxes related to other comprehensive (loss): | ||
Changes in unrealized (loss) on debt securities available-for-sale | (11,664) | (6,224) |
Changes in unrealized gain/(loss) on derivative hedges | 1,502 | (1,556) |
Total other comprehensive income | 28,601 | 21,986 |
Total comprehensive income | $ 8,413 | $ 49,623 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional paid-in capital | Unearned compensation | Retained earnings (deficit) | Retained earnings (deficit) Cumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive (loss) | Treasury stock |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 44,361,000 | ||||||||
Balance at Beginning of Period at Dec. 31, 2022 | $ 954,062 | $ 401 | $ 528 | $ 1,424,183 | $ (8,598) | $ (71,428) | $ (181,052) | $ (209,571) | |
Comprehensive income: | |||||||||
Net (loss)/income | 27,637 | 27,637 | |||||||
Other comprehensive income | 21,986 | 21,986 | |||||||
Total comprehensive income | $ 49,623 | 27,637 | 21,986 | ||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||
Cash dividends declared on common shares | $ (8,008) | (8,008) | |||||||
Treasury shares repurchased (in shares) | (47,000) | ||||||||
Treasury shares repurchased | (1,190) | (1,190) | |||||||
Forfeited shares (in shares) | (31,000) | ||||||||
Forfeited shares | 0 | 87 | 834 | (921) | |||||
Exercise of stock options (in shares) | 0 | ||||||||
Exercise of stock options | 0 | 0 | 0 | ||||||
Restricted stock grants (in shares) | 143,000 | ||||||||
Restricted stock grants | 0 | 446 | (4,352) | 3,906 | |||||
Stock-based compensation | 1,196 | 1,196 | |||||||
Other, net (in shares) | (15,000) | ||||||||
Other, net | (604) | (153) | (451) | ||||||
Balance at end of period (in shares) at Mar. 31, 2023 | 44,411,000 | ||||||||
Balance at End of Period at Mar. 31, 2023 | $ 995,480 | 401 | $ 528 | 1,424,563 | (10,920) | (51,398) | $ 401 | (159,066) | (208,227) |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 43,500,872 | 43,501,000 | |||||||
Balance at Beginning of Period at Dec. 31, 2023 | $ 1,012,221 | $ 0 | $ 528 | 1,423,273 | (10,109) | (33,136) | (143,016) | (225,319) | |
Comprehensive income: | |||||||||
Net (loss)/income | (20,188) | (20,188) | |||||||
Other comprehensive income | 28,601 | 28,601 | |||||||
Total comprehensive income | 8,413 | (20,188) | 28,601 | ||||||
Cash dividends declared on common shares | (7,823) | (7,823) | |||||||
Treasury shares repurchased (in shares) | (182,000) | ||||||||
Treasury shares repurchased | (4,045) | (4,045) | |||||||
Forfeited shares (in shares) | (49,000) | ||||||||
Forfeited shares | 0 | (195) | 1,309 | (1,114) | |||||
Exercise of stock options | 0 | ||||||||
Restricted stock grants (in shares) | 186,000 | ||||||||
Restricted stock grants | 0 | (369) | (4,598) | 4,967 | |||||
Stock-based compensation | 2,101 | 2,101 | |||||||
Other, net (in shares) | (41,000) | ||||||||
Other, net | $ (944) | (944) | |||||||
Balance at end of period (in shares) at Mar. 31, 2024 | 43,414,610 | 43,415,000 | |||||||
Balance at End of Period at Mar. 31, 2024 | $ 1,009,923 | $ 528 | $ 1,422,709 | $ (11,297) | $ (61,147) | $ (114,415) | $ (226,455) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends, declared on common stock (in dollars per share) | $ 0.18 | $ 0.18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net (loss)/income | $ (20,188,000) | $ 27,637,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 6,000,000 | 8,999,000 |
Net amortization/(accretion) of securities | 568,000 | (42,000) |
Change in unamortized net loan costs and premiums | 799,000 | 309,000 |
Premises and equipment depreciation and amortization expense | 1,939,000 | 2,223,000 |
Stock-based compensation expense | 2,101,000 | 1,196,000 |
Accretion of purchase accounting entries, net | (221,000) | (47,000) |
Amortization of other intangibles | 1,205,000 | 1,205,000 |
Income from cash surrender value of bank-owned life insurance policies | (1,468,000) | (977,000) |
(Gain) on SBA loan sales | (1,699,000) | (2,494,000) |
Fair value adjustments on securities | 115,000 | (234,000) |
Loss on sale of AFS securities, net | 49,909,000 | 0 |
Net change in loans held-for-sale | (4,108,000) | 2,405,000 |
Amortization of interest in tax-advantaged projects | 134,000 | 2,285,000 |
Net change in other | (28,225,000) | (1,465,000) |
Net cash provided by operating activities | 6,861,000 | 41,000,000 |
Cash flows from investing activities: | ||
Net decrease in trading security | 222,000 | 212,000 |
Purchases of securities available for sale | (7,798,000) | (28,899,000) |
Proceeds from sales of securities available for sale | 361,871,000 | 0 |
Proceeds from maturities, calls, and prepayments of securities available for sale | 36,344,000 | 69,404,000 |
Proceeds from maturities, calls, and prepayments of securities held to maturity | 11,415,000 | 8,380,000 |
Net change in loans | (107,435,000) | (351,311,000) |
Purchase of Federal Home Loan Bank stock | (22,610,000) | (183,155,000) |
Proceeds from redemption of Federal Home Loan Bank stock | 24,777,000 | 146,129,000 |
Net investment in limited partnership tax credits | (4,675,000) | (3,686,000) |
Purchase of premises and equipment, net | (235,000) | (753,000) |
Net cash provided/(used) by investing activities | 291,876,000 | (343,679,000) |
Cash flows from financing activities: | ||
Net (decrease) in deposits | (265,882,000) | (259,724,000) |
Proceeds from Federal Home Loan Bank advances and other borrowings | 202,000,000 | 3,555,000,000 |
Repayments of Federal Home Loan Bank advances and other borrowings | (250,055,000) | (2,655,050,000) |
Purchase of treasury stock | (4,045,000) | (1,190,000) |
Common stock cash dividends paid | 0 | (8,008,000) |
Settlement of derivative contracts with financial institution counterparties | 9,696,000 | (7,142,000) |
Net cash (used)/provided by financing activities | (308,286,000) | 623,886,000 |
Net change in cash and cash equivalents | (9,549,000) | 321,207,000 |
Cash and cash equivalents at beginning of period | 1,203,244,000 | 685,355,000 |
Cash and cash equivalents at end of period | 1,193,695,000 | 1,006,562,000 |
Supplemental cash flow information: | ||
Interest paid on deposits | 57,719,000 | 25,267,000 |
Interest paid on borrowed funds | 7,241,000 | 6,163,000 |
Income taxes paid, net | 995,000 | 4,412,000 |
Other non-cash changes: | ||
Other net comprehensive income | 28,601,000 | 21,986,000 |
Properties transferred to held for sale | 58,455,000 | 4,960,000 |
Reclassification of New York branch assets to assets held-for-sale | 13,936,000 | 0 |
Reclassification of New York branch deposits to liabilities held-for-sale, net | 484,530,000 | 0 |
Reclassification of New York branch liabilities to liabilities held-for-sale | 12,929,000 | 0 |
Dividends declared not yet paid | 7,823,000 | 0 |
Impact to retained earnings from adoption of ASU 2022-02 | $ 1,009,923,000 | 995,480,000 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Other non-cash changes: | ||
Impact to retained earnings from adoption of ASU 2022-02 | $ 401,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods. Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. 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. Recently Adopted Accounting Principles Effective January 1, 2024, the Corporation adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2023-02, "Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)" (ASU 2023-02). ASU 2023-02 expanded the permitted use of the proportional amortization method (PAM), which was previously only available to low-income housing tax credit investments, to other tax equity investments if certain conditions are met. Under PAM, the initial cost of an investment is amortized in proportion to the income tax benefits received and both the amortization of the investment and the income tax benefits received are recognized as a component of income tax expense. Under this ASU, an entity has the option to apply PAM to applicable investments on a tax-credit-program-by-tax-credit-program basis. The company has elected PAM for its public welfare investments which consist of Affordable Housing and New Market tax credit investments. In addition, the amendments in this ASU require that all tax equity investments accounted for using PAM use the delayed equity contribution guidance in paragraph ASC 323-740-25-3, requiring a liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable. The amendments in this ASU also require additional disclosures in interim and annual periods concerning investments for which PAM is applied, including (i) the nature of tax equity investments, and (ii) the effect of tax equity investments and related income tax credits and other income tax benefits on the financial position and results of operations. The provisions of this ASU became effective for the Company for interim and annual periods beginning January 1, 2024. Refer to Note 15 – Tax Equity Investments for additional information. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Future Application of Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU requires disclosure in the rate reconciliation table of additional categories of information and more details about the reconciling items in some categories if items meet a quantitative threshold. The ASU also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. 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. |
BRANCH SALE
BRANCH SALE | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BRANCH SALE | BRANCH SALE The Company has entered into definitive agreements with three buyers to sell ten of its upstate and eastern New York branches, consisting of eight offices in Albany, Saratoga, Schenectady and Columbia counties, one office in Whitehall and one office in East Syracuse. The branch sale includes residential mortgages and consumer loans with a total balance of $58.5 million and deposit accounts with a total balance of $484.5 million as of March 31, 2024. The sales also include all branch premises, including leased properties, and equipment. These balances are included in assets held for sale and liabilities held for sale on the Consolidated Balance Sheet. The sales exclude Berkshire’s commercial banking business. The buyers intend to offer employment to all associated staff. The sales are targeted for completion by the end of the third quarter of 2024 subject to customary regulatory approvals and associated system conversions. The following is a summary of the assets and liabilities associated with the branch sales at March 31, 2024 and December 31, 2023: (In thousands) March 31, 2024 December 31, 2023 Assets Loans $ 58,455 $ — Other assets 13,936 — Total assets $ 72,391 $ — Liabilities Deposits $ 484,530 $ — Other liabilities 12,929 — Total liabilities $ 497,459 $ — |
TRADING SECURITIES
TRADING SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
TRADING SECURITIES | TRADING SECURITIES The Company holds a tax-advantaged economic development bond accounted for at fair value. The security had an amortized cost of $6.0 million and $6.2 million, and a fair value of $5.9 million and $6.1 million, at March 31, 2024 and December 31, 2023, respectively. As discussed further in Note 8 - 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, 2024 or December 31, 2023. |
SECURITIES AVAILABLE FOR SALE,
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES | SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND 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, 2024 Securities available for sale U.S Treasuries $ 7,880 $ — $ (4) $ 7,876 Municipal bonds and obligations 64,384 240 (2,102) 62,522 — Agency collateralized mortgage obligations 282,460 — (66,747) 215,713 — Agency mortgage-backed securities 288,094 — (53,454) 234,640 — Agency commercial mortgage-backed securities 88,302 — (18,444) 69,858 — Corporate bonds 38,721 64 (4,193) 34,592 — Other bonds and obligations 655 67 (66) 656 — Total securities available for sale 770,496 371 (145,010) 625,857 — Securities held to maturity Municipal bonds and obligations 244,100 262 (19,819) 224,543 41 Agency collateralized mortgage obligations 109,825 — (18,809) 91,016 — Agency mortgage-backed securities 46,555 — (8,543) 38,012 — Agency commercial mortgage-backed securities 129,620 — (25,263) 104,357 — Tax advantaged economic development bonds 1,442 — (22) 1,420 20 Other bonds and obligations 278 — — 278 — Total securities held to maturity 531,820 262 (72,456) 459,626 61 Equity securities 15,035 — (2,212) 12,823 — Total $ 1,317,351 $ 633 $ (219,678) $ 1,098,306 $ 61 (In thousands) Amortized Cost Gross Gross Fair Value Allowance December 31, 2023 Securities available for sale U.S Treasuries $ 7,980 $ 1 $ — $ 7,981 $ — Municipal bonds and obligations 64,788 494 (1,429) 63,853 — Agency collateralized mortgage obligations 426,986 — (79,112) 347,874 — Agency mortgage-backed securities 492,633 2 (75,155) 417,480 — Agency commercial mortgage-backed securities 174,879 — (29,553) 145,326 — Corporate bonds 43,291 34 (4,210) 39,115 — Other bonds and obligations 655 67 (66) 656 — Total securities available for sale 1,211,212 598 (189,525) 1,022,285 — Securities held to maturity Municipal bonds and obligations 251,046 698 (16,987) 234,757 48 Agency collateralized mortgage obligations 112,929 — (18,360) 94,569 — Agency mortgage-backed securities 47,379 — (8,052) 39,327 — Agency commercial mortgage-backed securities 130,169 — (24,368) 105,801 — Tax advantaged economic development bonds 1,540 6 (60) 1,486 20 Other bonds and obligations 288 — — 288 — Total securities held to maturity 543,351 704 (67,827) 476,228 68 Equity securities 15,035 — (2,006) 13,029 — Total $ 1,769,598 $ 1,302 $ (259,358) $ 1,511,542 $ 68 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, 2024 and 2023: (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2023 $ 48 $ 20 $ 68 (Benefit)/provision for credit losses (7) — (7) Balance at March 31, 2024 $ 41 $ 20 $ 61 (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2022 $ 66 $ 25 $ 91 (Benefit)/provision for credit losses (17) (3) (20) Balance at March 31, 2023 $ 49 $ 22 $ 71 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, 2024, 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, 2024 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 $ 7,960 $ 7,956 $ 410 $ 410 Over 1 year to 5 years 16,547 16,357 1,743 1,720 Over 5 years to 10 years 51,166 47,122 37,444 37,281 Over 10 years 35,967 34,211 206,223 186,830 Total bonds and obligations 111,640 105,646 245,820 226,241 Mortgage-backed securities 658,856 520,211 286,000 233,385 Total $ 770,496 $ 625,857 $ 531,820 $ 459,626 During the three months ended March 31, 2024, purchases of AFS securities totaled $7.8 million. During the three months ended March 31, 2024, proceeds from sales of AFS securities totaled $361.9 million. During the three months ended March 31, 2023, purchases of AFS securities totaled $28.9 million. During the t hree months ended March 31, 2023, there were no sales of AFS securities. During the three months ended March 31, 2024, gross gains totaled $5.1 million and gross losses totaled $54.9 million. 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, 2024 Securities available for sale U.S Treasuries $ 4 $ 7,876 $ — $ — $ 4 $ 7,876 Municipal bonds and obligations 191 22,706 1,911 25,139 2,102 47,845 Agency collateralized mortgage obligations — — 66,747 215,713 66,747 215,713 Agency mortgage-backed securities — — 53,454 234,640 53,454 234,640 Agency commercial mortgage-backed securities — — 18,444 69,858 18,444 69,858 Corporate bonds — — 4,193 33,733 4,193 33,733 Other bonds and obligations — — 66 295 66 295 Total securities available for sale $ 195 $ 30,582 $ 144,815 $ 579,378 $ 145,010 $ 609,960 Securities held to maturity Municipal bonds and obligations $ 420 $ 58,566 $ 19,399 $ 109,527 $ 19,819 $ 168,093 Agency collateralized mortgage obligations 1 20 18,808 90,996 18,809 91,016 Agency mortgage-backed securities — — 8,543 38,012 8,543 38,012 Agency commercial mortgage-backed securities — — 25,263 104,357 25,263 104,357 Tax advantaged economic development bonds 10 487 12 933 22 1,420 Total securities held to maturity 431 59,073 72,025 343,825 72,456 402,898 Total $ 626 $ 89,655 $ 216,840 $ 923,203 $ 217,466 $ 1,012,858 December 31, 2023 Securities available for sale Municipal bonds and obligations $ 76 $ 9,326 $ 1,353 $ 22,739 $ 1,429 $ 32,065 Agency collateralized mortgage obligations — — 79,112 347,874 79,112 347,874 Agency mortgage-backed securities 1 22 75,154 417,151 75,155 417,173 Agency commercial mortgage-backed securities — — 29,553 145,326 29,553 145,326 Corporate bonds 457 6,543 3,753 31,690 4,210 38,233 Other bonds and obligations — — 66 295 66 295 Total securities available for sale $ 534 $ 15,891 $ 188,991 $ 965,075 $ 189,525 $ 980,966 Securities held to maturity Municipal bonds and obligations $ 229 $ 28,895 $ 16,758 $ 92,063 $ 16,987 $ 120,958 Agency collateralized mortgage obligations 1 21 18,359 94,548 18,360 94,569 Agency mortgage-backed securities — — 8,052 39,327 8,052 39,327 Agency commercial mortgage-backed securities — — 24,368 105,801 24,368 105,801 Tax advantaged economic development bonds — — 60 922 60 922 Total securities held to maturity 230 28,916 67,597 332,661 67,827 361,577 Total $ 764 $ 44,807 $ 256,588 $ 1,297,736 $ 257,352 $ 1,342,543 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, 2024, 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, 2024: AFS U.S Treasuries At March 31, 2024, 1 of the 1 securities in the Company’s portfolio of AFS U.S Treasuries was in an unrealized loss position. Aggregate unrealized losses represents 0.1% 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. The security is performing. AFS municipal bonds and obligations At March 31, 2024, 63 of the 91 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 4.2% 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, 2024, 37 of the 38 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 23.6% 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, 2024, 28 of the 28 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 19.1% 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, 2024, 13 of the 14 securities in the Company’s portfolio of AFS corporate bonds were in unrealized loss positions. Aggregate unrealized losses represents 11.1% of the amortized cost of the bonds in unrealized loss positions. 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. All securities are performing. AFS other bonds and obligations At March 31, 2024, 2 of the 3 securities in the Company’s portfolio of AFS other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represents 18.3% of the amortized cost of the bonds in unrealized loss positions. 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. All securities are performing. HTM municipal bonds and obligations At March 31, 2024, 123 of the 168 securities in the Company’s portfolio of HTM municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 10.6% 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, 2024, 12 of the 12 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 17.1% 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, 2024, 17 of the 17 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 19.2% 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, 2024, 2 of the 2 securities in the Company’s portfolio of tax-advantaged economic development bonds were in unrealized loss positions. Aggregate unrealized losses represented 9.1% of the amortized cost of securities in unrealized loss positions. 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, 2024 | |
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, 2024 December 31, 2023 Construction $ 637,372 $ 640,371 Commercial multifamily 617,854 599,145 Commercial real estate owner occupied 655,839 628,646 Commercial real estate non-owner occupied 2,637,446 2,606,409 Commercial and industrial 1,384,837 1,359,249 Residential real estate 2,752,370 2,760,312 Home equity 206,592 224,223 Consumer other 193,443 221,331 Total loans $ 9,085,753 $ 9,039,686 Allowance for credit losses (107,331) (105,357) Net loans $ 8,978,422 $ 8,934,329 During the three months ended March 31, 2024, in consideration of the pending branch sale, $20.0 million of residential real estate loans and $38.5 million of consumer loans were reclassified to assets held for sale on the Consolidated Balance Sheet . Transferred held for sale loans are not contained in the balances within this note and are accounted for at the lower of carr ying value or fair market value. 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 credit 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) and is included in other liabilities on the consolidated balance sheet. The Company’s activity in the allowance for credit losses for loans for the three months ended March 31, 2024 and March 31, 2023 was as follows: (In thousands) Balance at Beginning of Period Charge-offs Recoveries Provision/(Benefit) for Credit Losses Balance at End of Period Three months ended March 31, 2024 Construction $ 2,885 $ — $ — $ (305) $ 2,580 Commercial multifamily 2,475 — — 174 2,649 Commercial real estate owner occupied 9,443 (107) 14 548 9,898 Commercial real estate non-owner occupied 38,221 — 81 (4,047) 34,255 Commercial and industrial 18,602 (2,442) 657 3,199 20,016 Residential real estate 19,622 (41) 186 2,644 22,411 Home equity 2,015 — 239 (262) 1,992 Consumer other 12,094 (3,046) 426 4,056 13,530 Total allowance for credit losses $ 105,357 $ (5,636) $ 1,603 $ 6,007 $ 107,331 (In thousands) Balance at Beginning of Period Adoption of ASU No. 2022-02 Charge-offs Recoveries Provision/(Benefit) for Credit Losses Balance at End of Period Three months ended March 31, 2023 Construction $ 1,227 $ — $ — $ — $ 309 1,536 Commercial multifamily 1,810 — — 6 (118) 1,698 Commercial real estate owner occupied 10,739 24 (70) 45 (460) 10,278 Commercial real estate non-owner occupied 30,724 — — 95 2,589 33,408 Commercial and industrial 18,743 (23) (6,033) 305 7,172 20,164 Residential real estate 18,666 2 (31) 387 (1,434) 17,590 Home equity 2,173 — (10) 26 131 2,320 Consumer other 12,188 (404) (1,793) 176 830 10,997 Total allowance for credit losses $ 96,270 $ (401) $ (7,937) $ 1,040 $ 9,019 $ 97,991 The Company’s allowance for credit losses on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve recognized in other noninterest expense in the consolidated statement of operations. The Company’s activity in the allowance for credit losses on unfunded commitments for the three months ended March 31, 2024 and 2023 was as follows: Three Months Ended (In thousands) 2024 2023 Balance at beginning of period $ 9,256 $ 8,588 Expense for credit losses — 99 Balance at end of period $ 9,256 $ 8,687 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) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2024 Construction Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 8,985 $ 114,473 $ 379,821 $ 100,836 $ 12,866 $ 2,436 $ — $ — $ 619,417 Special Mention — — — 551 — — — — 551 Substandard — — — 17,404 — — — — 17,404 Total $ 8,985 $ 114,473 $ 379,821 $ 118,791 $ 12,866 $ 2,436 $ — $ — $ 637,372 Commercial multifamily: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 30,725 $ 16,484 $ 217,796 $ 56,310 $ 26,412 $ 261,531 $ 400 $ — $ 609,658 Special Mention — — — — — — — — — Substandard — — — 240 2,535 5,421 — — 8,196 Total $ 30,725 $ 16,484 $ 217,796 $ 56,550 $ 28,947 $ 266,952 $ 400 $ — $ 617,854 Commercial real estate owner occupied: Current period gross write-offs $ — $ — $ — $ 40 $ — $ 67 $ — $ — $ 107 Risk rating Pass $ 27,890 $ 102,110 $ 128,047 $ 109,767 $ 46,991 $ 225,876 $ 2,504 $ — $ 643,185 Special Mention — — 122 103 222 4,315 — — 4,762 Substandard — — — 362 47 7,483 — — 7,892 Total $ 27,890 $ 102,110 $ 128,169 $ 110,232 $ 47,260 $ 237,674 $ 2,504 $ — $ 655,839 Commercial real estate non-owner occupied: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 25,826 $ 403,246 $ 593,124 $ 408,882 $ 139,590 $ 982,448 $ 4,560 $ — $ 2,557,676 Special Mention — — 375 2,847 227 26,423 2,256 — 32,128 Substandard — — — — 6,724 40,918 — — 47,642 Total $ 25,826 $ 403,246 $ 593,499 $ 411,729 $ 146,541 $ 1,049,789 $ 6,816 $ — $ 2,637,446 Commercial and industrial: Current period gross write-offs $ — $ 19 $ 645 $ 467 $ 57 $ 1,254 $ — $ — $ 2,442 Risk rating Pass $ 65,753 $ 131,330 $ 180,901 $ 111,392 $ 65,827 $ 139,489 $ 577,352 $ — $ 1,272,044 Special Mention — 517 23,600 2,781 1,608 2,258 27,992 — 58,756 Substandard — 404 856 11,407 905 14,143 26,322 — 54,037 Total $ 65,753 $ 132,251 $ 205,357 $ 125,580 $ 68,340 $ 155,890 $ 631,666 $ — $ 1,384,837 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Residential real estate Current period gross write-offs $ — $ — $ — $ — $ — $ 41 $ — $ — $ 41 Risk rating Pass $ 54,163 $ 593,394 $ 958,105 $ 258,870 $ 85,758 $ 790,298 $ 64 $ — $ 2,740,652 Special Mention — — — — — 1,582 — — 1,582 Substandard — — 127 907 376 8,726 — — 10,136 Total $ 54,163 $ 593,394 $ 958,232 $ 259,777 $ 86,134 $ 800,606 $ 64 $ — $ 2,752,370 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2023 Construction Current period gross write-offs $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1 Risk rating Pass $ 104,507 $ 346,419 $ 138,802 $ 29,176 $ 2,545 $ 1,098 $ — $ — $ 622,547 Special Mention — — 512 — — — — — 512 Substandard — — 17,312 — — — — — 17,312 Total $ 104,507 $ 346,419 $ 156,626 $ 29,176 $ 2,545 $ 1,098 $ — $ — $ 640,371 Commercial multifamily: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 16,020 $ 216,477 $ 56,817 $ 26,566 $ 94,733 $ 179,923 $ 377 $ — $ 590,913 Special Mention — — — — — — — — — Substandard — — 242 2,554 — 5,436 — — 8,232 Total $ 16,020 $ 216,477 $ 57,059 $ 29,120 $ 94,733 $ 185,359 $ 377 $ — $ 599,145 Commercial real estate owner occupied: Current period gross write-offs $ — $ — $ — $ 380 $ — $ 109 $ — $ — $ 489 Risk rating Pass $ 97,271 $ 120,327 $ 122,151 $ 37,914 $ 70,393 $ 165,224 $ 2,653 $ — $ 615,933 Special Mention — — 424 222 — 788 — — 1,434 Substandard — — 81 47 4,703 6,448 — — 11,279 Total $ 97,271 $ 120,327 $ 122,656 $ 38,183 $ 75,096 $ 172,460 $ 2,653 $ — $ 628,646 Commercial real estate non-owner occupied: Current period gross write-offs $ — $ — $ — $ — $ — $ 65 $ — $ — $ 65 Risk rating Pass $ 404,687 $ 591,897 $ 385,247 $ 135,134 $ 277,870 $ 736,566 $ 4,553 $ — $ 2,535,954 Special Mention — — — 229 19,465 726 — — 20,420 Substandard — — — 6,814 13,483 29,738 — — 50,035 Total $ 404,687 $ 591,897 $ 385,247 $ 142,177 $ 310,818 $ 767,030 $ 4,553 $ — $ 2,606,409 Commercial and industrial: Current period gross write-offs $ — $ 1,154 $ 863 $ 2,763 $ 1,496 $ 9,283 $ 2,313 $ — $ 17,872 Risk rating Pass $ 142,946 $ 203,126 $ 118,191 $ 69,722 $ 39,437 $ 112,770 $ 554,153 $ — $ 1,240,345 Special Mention 526 23,149 3,735 1,621 610 1,353 35,244 — 66,238 Substandard 432 761 11,702 1,135 3,785 12,538 22,313 — 52,666 Total $ 143,904 $ 227,036 $ 133,628 $ 72,478 $ 43,832 $ 126,661 $ 611,710 $ — $ 1,359,249 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Residential real estate Current period gross write-offs $ — $ 50 $ — $ 50 $ 174 $ 39 $ — $ — $ 313 Risk rating Pass $ 599,124 $ 973,031 $ 266,055 $ 88,302 $ 66,837 $ 755,372 $ 81 $ — $ 2,748,802 Special Mention — — — — 140 664 — — 804 Substandard — 129 1,176 379 574 8,448 — — 10,706 Total $ 599,124 $ 973,160 $ 267,231 $ 88,681 $ 67,551 $ 764,484 $ 81 $ — $ 2,760,312 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) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2024 Home equity: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Payment performance Performing $ — $ — $ — $ — $ 435 $ 2,458 $ 202,837 $ — $ 205,730 Nonperforming — — — — — — 862 — 862 Total $ — $ — $ — $ — $ 435 $ 2,458 $ 203,699 $ — $ 206,592 Consumer other: Current period gross write-offs $ — $ 64 $ 2,543 $ 387 $ — $ 52 $ — $ — $ 3,046 Payment performance Performing $ 7,471 $ 41,972 $ 94,137 $ 16,632 $ 4,966 $ 17,766 $ 10,023 $ — $ 192,967 Nonperforming — 1 108 27 4 328 8 — 476 Total $ 7,471 $ 41,973 $ 94,245 $ 16,659 $ 4,970 $ 18,094 $ 10,031 $ — $ 193,443 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2023 Home equity: Current period gross write-offs $ — $ — $ — $ 70 $ — $ — $ 18 $ — $ 88 Payment performance Performing $ — $ — $ — $ 439 $ — $ 2,614 $ 220,209 $ — $ 223,262 Nonperforming — — — — — — 961 — 961 Total $ — $ — $ — $ 439 $ — $ 2,614 $ 221,170 $ — $ 224,223 Consumer other: Current period gross write-offs $ 109 $ 8,843 $ 1,149 $ 11 $ 78 $ 239 $ — $ — $ 10,429 Payment performance Performing $ 49,588 $ 108,284 $ 19,679 $ 5,843 $ 7,054 $ 19,587 $ 10,614 $ — $ 220,649 Nonperforming 77 104 47 26 110 284 34 — 682 Total $ 49,665 $ 108,388 $ 19,726 $ 5,869 $ 7,164 $ 19,871 $ 10,648 $ — $ 221,331 The following is a summary of loans by past due status at March 31, 2024 and December 31, 2023: (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, 2024 Construction $ — $ — $ — $ — $ 637,372 $ 637,372 Commercial multifamily 531 5,421 — 5,952 611,902 617,854 Commercial real estate owner occupied 347 701 1,268 2,316 653,523 655,839 Commercial real estate non-owner occupied 5,732 — 3,697 9,429 2,628,017 2,637,446 Commercial and industrial 709 149 9,271 10,129 1,374,708 1,384,837 Residential real estate 8,929 1,582 10,137 20,648 2,731,722 2,752,370 Home equity 679 111 1,464 2,254 204,338 206,592 Consumer other 1,631 1,161 1,499 4,291 189,152 193,443 Total $ 18,558 $ 9,125 $ 27,336 $ 55,019 $ 9,030,734 $ 9,085,753 (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, 2023 Construction $ — $ — $ — $ — $ 640,371 $ 640,371 Commercial multifamily 5,436 187 — 5,623 593,522 599,145 Commercial real estate owner occupied 581 286 804 1,671 626,975 628,646 Commercial real estate non-owner occupied 139 251 3,798 4,188 2,602,221 2,606,409 Commercial and industrial 2,749 689 8,769 12,207 1,347,042 1,359,249 Residential real estate 5,669 943 10,687 17,299 2,743,013 2,760,312 Home equity 707 498 1,281 2,486 221,737 224,223 Consumer other 2,363 1,642 1,606 5,611 215,720 221,331 Total $ 17,644 $ 4,496 $ 26,945 $ 49,085 $ 8,990,601 $ 9,039,686 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, 2024 and December 31, 2023: (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, 2024 Construction $ — $ — $ — $ — Commercial multifamily — — — — Commercial real estate owner occupied 1,268 571 — — Commercial real estate non-owner occupied 3,697 38 — — Commercial and industrial 8,971 5,613 300 — Residential real estate 6,182 2,723 3,955 — Home equity 862 114 602 — Consumer other 475 — 1,024 — Total $ 21,455 $ 9,059 $ 5,881 $ — The commercial and industrial loans nonaccrual amortized cost as of March 31, 2024 included medallion loans with a fair value of $0.4 million and a contractual balance of $8.3 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, 2023 Construction $ — $ — $ — $ — Commercial multifamily — — — — Commercial real estate owner occupied 605 285 199 — Commercial real estate non-owner occupied 3,798 45 — — Commercial and industrial 8,665 5,586 104 — Residential real estate 6,696 2,796 3,991 — Home equity 961 122 320 — Consumer other 682 — 924 — Total $ 21,407 $ 8,834 $ 5,538 $ — The commercial and industrial loans nonaccrual amortized cost as of December 31, 2023 included medallion loans with a fair value of $0.4 million and a contractual balance of $8.8 million. The following table summarizes information about total loans rated Special Mention or lower at March 31, 2024 and December 31, 2023. 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, 2024 December 31, 2023 Non-Accrual $ 21,455 $ 21,407 Substandard Accruing 126,806 131,689 Total Classified 148,261 153,096 Special Mention 99,037 91,502 Total Criticized $ 247,298 $ 244,598 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, 2024 Construction $ — $ — $ — Commercial multifamily — — — Commercial real estate owner occupied 592 — — Commercial real estate non-owner occupied 331 — — Commercial and industrial 4,539 — 1,072 Residential real estate 2,305 — — Home equity 114 — — Consumer other — — — Total loans $ 7,881 $ — $ 1,072 December 31, 2023 Construction $ — $ — $ — Commercial multifamily — — — Commercial real estate owner occupied 650 — — Commercial real estate non-owner occupied 342 — — Commercial and industrial 4,788 — 944 Residential real estate 5,035 — — Home equity 135 — — Consumer other 40 — — Total loans $ 10,990 $ — $ 944 Modified Loans Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extension, an other-than-insignificant payment delay or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. In some cases, the Company provides multiple types of concessions on one loan. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. For the loans included in the "combination" columns below, multiple types of modifications have been made on the same loan within the current reporting period. The combination is at least two of the following: a term extension and principal forgiveness, an other-than-insignificant payment delay and/or an interest rate reduction. The following tables present the amortized cost basis of loans at March 31, 2024 and March 31,2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and March 31,2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: (In thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Three months ended March 31, 2024 Construction $ — $ — $ — $ — $ — $ — — % Commercial multifamily — — — — — — — Commercial real estate owner occupied — — — — — — — Commercial real estate non-owner occupied — — — — — — — Commercial and industrial — 108 474 297 — — 0.06 Residential real estate — — — — — — — Home equity — — — — — — — Consumer other — — — — — — — Total $ — $ 108 $ 474 $ 297 $ — $ — 0.01 % The Company has not committed to lend additional amounts to the borrowers included in the previous table. (In thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Three months ended March 31, 2023 Construction $ — $ — $ — $ — $ — $ — — % Commercial multifamily — — — — — — — Commercial real estate owner occupied — 387 — — — — 0.06 Commercial real estate non-owner occupied — — — — — — — Commercial and industrial — — — — 10 — — Residential real estate — — — — — — — Home equity — — — — — — — Consumer other — — — — — — — Total $ — $ 387 $ — $ — $ 10 $ — — % The Company has not committed to lend additional amounts to the borrowers included in the previous table. The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. As of March 31, 2024 and March 31, 2023, there were no loans that were modified to borrowers experiencing financial difficulty that were past due. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and March 31, 2023. (In thousands) Principal Forgiveness Weighted Average Interest Rate Reduction Weighted Average Term Extension (months) Three months ended March 31, 2024 Construction $ — — % 0 Commercial multifamily — — 0 Commercial real estate owner occupied — — 0 Commercial real estate non-owner occupied — — 0 Commercial and industrial — 10.75 56 Residential real estate — — 0 Home equity — — 0 Consumer other — — 0 (In thousands) Principal Forgiveness Weighted Average Interest Rate Reduction Weighted Average Term Extension (months) Three months ended March 31, 2023 Construction $ — — % 0 Commercial multifamily — — 0 Commercial real estate owner occupied — — 0 Commercial real estate non-owner occupied — — 0 Commercial and industrial — 1.25 0 Residential real estate — — 0 Home equity — — 0 Consumer other — — 0 The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. (in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Three months ended March 31, 2024 Construction $ — $ — $ — $ — Commercial multifamily — — — — Commercial real estate owner occupied — — — — Commercial real estate non-owner occupied — — — — Commercial and industrial — — 202 — Residential real estate — — — — Home equity — — — — Consumer other — — — — Total $ — $ — $ 202 $ — There were no loans that had a payment default during the three months ended March 31, 2023 that were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2024 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits is as follows: (In thousands) March 31, December 31, Time less than $100,000 $ 667,853 $ 724,911 Time $100,000 through $250,000 1,143,941 1,276,175 Time more than $250,000 593,590 685,164 Total time deposits $ 2,405,384 $ 2,686,250 |
BORROWED FUNDS
BORROWED FUNDS | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 December 31, 2023 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term debt: Advances from the FHLB $ 210,000 5.54 % $ 260,000 5.54 % Total short-term borrowings: 210,000 5.54 260,000 5.54 Long-term debt: Advances from the FHLB and other borrowings 127,169 4.76 125,223 4.80 Subordinated borrowings 98,384 5.50 98,335 5.50 Junior subordinated borrowing - Trust I 15,464 7.43 15,464 7.49 Junior subordinated borrowing - Trust II 7,577 7.29 7,564 7.35 Total long-term borrowings: 248,594 5.29 246,586 5.33 Total $ 458,594 5.40 % $ 506,586 5.44 % 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, 2024 and December 31, 2023. The Bank's available borrowing capacity with the FHLB was $2.2 billion and $2.5 billion for the periods ended March 31, 2024 and December 31, 2023. 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. The Bank had no borrowings with the Federal Reserve Bank under this arrangement during the periods ended March 31, 2024 and December 31, 2023, respectively. The Bank's available borrowing capacity with the Federal Reserve Bank was $1.3 billion and $1.5 billion for the periods ended March 31, 2024 and December 31, 2023, respectively. Long-term FHLB advances consist of advances with an original maturity of more than one year and are subject to prepayment penalties. There were no callable advances outstanding at March 31, 2024. The advances outstanding at March 31, 2024 included amortizing advances totaling $6.2 million. There were no callable advances outstanding at December 31, 2023. The advances outstanding at December 31, 2023 included amortizing advances totaling $4.2 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, 2024 is as follows: March 31, 2024 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2024 $ 240,007 5.46 % 2025 90,000 5.01 2026 512 2.20 2027 155 2.00 2028 and beyond 6,495 0.71 Total FHLB advances $ 337,169 5.24 % The Company did not have variable-rate FHLB advances for the periods ended March 31, 2024 and December 31, 2023, respectively. In June 2022, the Company issued ten year subordinated notes in the amount of $100.0 million. The interest rate is fixed at 5.50% for the first five years. After five years, the notes become callable and will bear interest at a floating rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR), plus 249 basis points. The subordinated note includes reduction to the note principal balance of $1.1 million for unamortized debt issuance costs as of March 31, 2024. 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 3-month CME Term SOFR plus 1.85% and had a rate of 7.43% and 7.49% at March 31, 2024 and December 31, 2023, 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 3-month CME Term SOFR plus 1.70% and had a rate of 7.29% and 7.35% at March 31, 2024 and December 31, 2023, 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, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As of March 31, 2024, the Company held derivatives with a total notional amount of $4.9 billion. That amount included $0.8 billion in interest rate swap derivatives that were designated as cash flow hedges for accounting purposes. The Company also had economic hedges totaling $4.0 billion and $22.0 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 $3.7 billion, risk participation agreements with dealer banks of $0.4 billion, and $5.7 million in forward commitment contracts. As of December 31, 2023, the Company held derivatives with a total notional amount of $4.8 billion. That amount included $0.6 billion in interest rate swap derivatives and $0.2 billion in interest rate collars that were designated as cash flow hedges for accounting purposes. The Company had economic hedges and non-hedging derivatives totaling $4.0 billion and $11.1 million, respectively, which are not designated as hedges for accounting purposes and are therefore recorded at fair value with changes in fair value recorded directly through earnings. Economic hedges included interest rate swaps totaling $3.6 billion, risk participation agreements with dealer banks of $376.6 million, and $2.2 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, 2024. The Company had no pledged collateral to derivative counterparties in the form of cash as of March 31, 2024. The Company had pledged securities to derivative counterparties with an amortized cost of $10.6 million and a fair value of $10.1 million as of March 31, 2024. 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, 2024, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on commercial loans (1) $ 600,000 1.6 3.64 % 5.33 % $ — Interest rate collars on commercial loans 200,000 2.3 430 Total cash flow hedges 800,000 430 Economic hedges: Interest rate swap on tax advantaged economic development bond $ 5,980 5.7 5.81 % 5.09 % $ (84) Interest rate swaps on loans with commercial loan customers 1,823,651 4.7 4.42 % 6.31 % (87,452) Offsetting interest rate swaps on loans with commercial loan customers (1) 1,823,651 4.7 6.31 % 4.42 % 48,691 Risk participation agreements with dealer banks 374,457 5.2 (28) Forward sale commitments 5,711 0.2 78 Total economic hedges 4,033,450 (38,795) Non-hedging derivatives: Commitments to lend 21,962 0.2 147 Total non-hedging derivatives 21,962 147 Total $ 4,855,412 $ (38,218) (1) Fair value estimates include the impact of $29.2 million settled to market contract agreements. Information about derivative assets and liabilities at December 31, 2023, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on commercial loans $ 600,000 1.9 3.64 % 5.35 % $ — Interest rate collars on commercial loans 200,000 2.5 1,658 800,000 1,658 Economic hedges: Interest rate swap on tax advantaged economic development bond $ 6,202 5.9 5.82 % 5.09 % $ (172) Interest rate swaps on loans with commercial loan customers 1,795,562 4.9 4.36 % 6.27 % (63,865) Offsetting interest rate swaps on loans with commercial loan customers (1) 1,795,562 4.9 6.27 % 4.36 % 32,053 Risk participation agreements with dealer banks 376,553 5.5 (18) Forward sale commitments 2,207 0.2 21 Total economic hedges 3,976,086 (31,981) Non-hedging derivatives: Commitments to lend 11,104 0.2 34 Total non-hedging derivatives 11,104 34 Total $ 4,787,190 $ (30,289) (1) Fair value estimates include the impact of $26.7 million settled to market contract agreements. Cash flow hedges The effective portion of unrealized changes in the fair value of derivatives accounted for as cash flow hedges is reported in other comprehensive income and subsequently reclassified to earnings in the same period or periods during which the hedged transaction is forecasted to affect earnings. Each quarter, the Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The ineffective portion of changes in the fair value of the derivatives is recognized directly in earnings. All cash flow hedges are considered highly effective. As of March 31, 2024, the Company had eight interest rate swap contracts with a notional value of $600.0 million. The interest rate swaps have durations of two As of March 31, 2024, the Company had two interest rate collars. The first interest rate collar has a 3.00% floor and a 5.75% cap with a notional value of $100.0 million. The second interest rate collar has a 3.25% floor and a 5.75% cap with a notional value of $100.0 million. The interest rate collars have durations of two Amounts included in the Consolidated Statements of Operations and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows: Three Months Ended (In thousands) 2024 2023 Interest rate swaps on commercial loans: Unrealized (loss) recognized in accumulated other comprehensive loss $ (5,681) $ 5,641 Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense (157) (157) Net tax benefit on items recognized in accumulated other comprehensive income 1,502 (1,556) Other comprehensive loss recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ (4,022) $ 4,242 Net interest expense recognized on hedged commercial loans $ 2,720 $ 1,293 Economic hedges As of March 31, 2024, the Company had an interest rate swap with a $6.0 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 SOFR-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, 2024. 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 Operations related to economic hedges and non-hedging derivatives were as follows: Three Months Ended March 31, (In thousands) 2024 2023 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain recognized in other non-interest income $ 88 $ (68) Interest rate swaps on loans with commercial loan customers: Unrealized (loss)/gain recognized in other non-interest income (23,649) 27,024 Favorable change in credit valuation adjustment recognized in other non-interest income — — Offsetting interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income 23,649 (27,024) Risk participation agreements: Unrealized gain/(loss) recognized in other non-interest income 10 (16) Forward commitments: Unrealized gain recognized in other non-interest income 57 7 Non-hedging derivatives Commitments to lend Unrealized gain recognized in other non-interest income $ 113 $ 9 Realized gain in other non-interest income 157 39 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 $48.7 million and $39.8 million as of March 31, 2024 and December 31, 2023, respectively. The Company had net asset positions with its commercial banking counterparties totaling $3.7 million and $6.0 million as of March 31, 2024 and December 31, 2023, respectively. The Company had net liability positions with its financial institution counterparties totaling $3.8 million and $6.1 million as of March 31, 2024 and December 31, 2023, respectively. The Company had net liability positions with its commercial banking counterparties totaling $86.9 million and $69.8 million as of March 31, 2024 and December 31, 2023. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of March 31, 2024 and December 31, 2023: Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Assets Balance Sheet Balance Sheet Instruments Collateral Received Net Amount March 31, 2024 Interest Rate Swap Agreements: Institutional counterparties $ 87,412 $ (38,761) $ 48,651 $ — $ — $ 48,651 Commercial counterparties 3,725 — 3,725 — — 3,725 Total $ 91,137 $ (38,761) $ 52,376 $ — $ — $ 52,376 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Liabilities Balance Sheet Balance Sheet Instruments Collateral Pledged Net Amount March 31, 2024 Interest Rate Swap Agreements: Institutional counterparties $ (13,400) $ 9,584 $ (3,816) $ 10,115 $ — $ 6,299 Commercial counterparties (86,919) — (86,919) — — (86,919) Total $ (100,319) $ 9,584 $ (90,735) $ 10,115 $ — $ (80,620) Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Assets Balance Sheet Balance Sheet Instruments Collateral Received Net Amount December 31, 2023 Interest Rate Swap Agreements: Institutional counterparties $ 71,579 $ (31,812) $ 39,767 $ — $ — $ 39,767 Commercial counterparties 5,992 — 5,992 — — 5,992 Total $ 77,571 $ (31,812) $ 45,759 $ — $ — $ 45,759 Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Liabilities Balance Sheet Balance Sheet Instruments Collateral Pledged Net Amount December 31, 2023 Interest Rate Swap Agreements: Institutional counterparties $ (11,277) $ 5,142 $ (6,135) $ 9,633 $ — $ 3,498 Commercial counterparties (69,796) — (69,796) — — (69,796) Total $ (81,073) $ 5,142 $ (75,931) $ 9,633 $ — $ (66,298) |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, lease expiration dates ranged from 1 month to 16 years. The following table represents the Consolidated Balance Sheet classification of the Company’s right-of-use (“ROU”) assets and lease liabilities: (In thousands) March 31, 2024 December 31, 2023 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 40,845 $ 47,348 Finance lease right-of-use assets Premises and equipment, net 665 5,597 Total Lease Right-of-Use Assets $ 41,510 $ 52,945 Lease Liabilities Operating lease liabilities Other liabilities $ 46,068 $ 53,026 Finance lease liabilities Other liabilities 927 8,681 Total Lease Liabilities $ 46,995 $ 61,707 Supplemental information related to leases was as follows: March 31, 2024 December 31, 2023 Weighted-Average Remaining Lease Term (in years) Operating leases 8.2 8.3 Finance leases 13.8 10.8 Weighted-Average Discount Rate Operating leases 2.97 % 2.90 % 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, 2024 was $2.2 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, 2023 was $2.3 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, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,194 $ 2,273 Operating cash flows from finance leases 75 113 Financing cash flows from finance leases 149 147 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2024: (In thousands) Operating Leases Finance Leases 2024 $ 6,620 $ 70 2025 7,840 93 2026 6,840 93 2027 5,957 93 2028 4,920 93 Thereafter 19,077 837 Total undiscounted lease payments 51,254 1,279 Less amounts representing interest (5,186) (352) Lease liability $ 46,068 $ 927 |
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, 2024, lease expiration dates ranged from 1 month to 16 years. The following table represents the Consolidated Balance Sheet classification of the Company’s right-of-use (“ROU”) assets and lease liabilities: (In thousands) March 31, 2024 December 31, 2023 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 40,845 $ 47,348 Finance lease right-of-use assets Premises and equipment, net 665 5,597 Total Lease Right-of-Use Assets $ 41,510 $ 52,945 Lease Liabilities Operating lease liabilities Other liabilities $ 46,068 $ 53,026 Finance lease liabilities Other liabilities 927 8,681 Total Lease Liabilities $ 46,995 $ 61,707 Supplemental information related to leases was as follows: March 31, 2024 December 31, 2023 Weighted-Average Remaining Lease Term (in years) Operating leases 8.2 8.3 Finance leases 13.8 10.8 Weighted-Average Discount Rate Operating leases 2.97 % 2.90 % 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, 2024 was $2.2 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, 2023 was $2.3 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, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,194 $ 2,273 Operating cash flows from finance leases 75 113 Financing cash flows from finance leases 149 147 The following table presents a maturity analysis of the Company’s lease liability by lease classification at March 31, 2024: (In thousands) Operating Leases Finance Leases 2024 $ 6,620 $ 70 2025 7,840 93 2026 6,840 93 2027 5,957 93 2028 4,920 93 Thereafter 19,077 837 Total undiscounted lease payments 51,254 1,279 Less amounts representing interest (5,186) (352) Lease liability $ 46,068 $ 927 |
CAPITAL RATIOS AND SHAREHOLDERS
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
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 14.0 % 14.4 % 8.0 % Tier 1 capital to risk-weighted assets 11.8 12.3 6.0 Common equity tier 1 capital to risk-weighted assets 11.6 12.0 4.5 Tier 1 capital to average assets 9.5 9.7 4.0 March 31, December 31, Regulatory Minimum to be Adequately Capitalized Regulatory Bank Total capital to risk-weighted assets 13.0 % 13.3 % 8.0 % 10.0 % Tier 1 capital to risk-weighted assets 11.9 12.2 6.0 8.0 Common equity tier 1 capital to risk-weighted assets 11.9 12.2 4.5 6.5 Tier 1 capital to average assets 9.6 9.6 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. 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%, including a 2.5% capital conservation buffer. Capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the capital conservation buffer is not met. At March 31, 2024, 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, 2024 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 $ (144,640) $ (188,927) Net unrealized (loss) on cash flow hedging derivatives (9,789) (4,265) Net unrealized holding (loss) on pension plans (528) (528) Income taxes related to items of accumulated other comprehensive income: Net unrealized tax benefit on AFS securities 37,737 49,401 Net unrealized tax benefit on cash flow hedging derivatives 2,661 1,159 Net unrealized tax benefit on pension plans 144 144 Accumulated other comprehensive loss $ (114,415) $ (143,016) The following table presents the components of other comprehensive (loss) for the three months ended March 31, 2024 and 2023: (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2024 Net unrealized holding loss on AFS securities: x Net unrealized (losses) arising during the period $ (5,622) $ 1,891 $ (3,731) Less: reclassification adjustment for (losses) realized in net income (49,909) 13,555 (36,354) Net unrealized holding gain on AFS securities 44,287 (11,664) 32,623 Net unrealized loss on cash flow hedging derivatives: Net unrealized (loss) arising during the period (5,681) 1,545 (4,136) Less: reclassification adjustment for (losses) realized in net income (157) 43 (114) Net unrealized loss on cash flow hedging derivatives (5,524) 1,502 (4,022) Other comprehensive income $ 38,763 $ (10,162) $ 28,601 Three Months Ended March 31, 2023 Net unrealized holding loss on AFS securities: Net unrealized (losses) arising during the period $ 23,968 $ (6,224) $ 17,744 Less: reclassification adjustment for gains realized in net income — — — Net unrealized holding (loss) on AFS securities 23,968 (6,224) 17,744 Net unrealized loss on cash flow hedging derivatives: Net unrealized (loss) arising during the period 5,641 (1,514) 4,127 Less: reclassification adjustment for (losses) realized in net income (157) 42 (115) Net unrealized (loss) on cash flow hedging derivatives 5,798 (1,556) 4,242 Other comprehensive income $ 29,766 $ (7,780) $ 21,986 The following table presents the changes in each component of accumulated other comprehensive (loss), for the three months ended March 31, 2024 and 2023: (In thousands) Net unrealized Net loss on Net unrealized Total Three Months Ended March 31, 2024 Balance at Beginning of Period $ (139,525) $ (3,106) $ (385) $ (143,016) Other comprehensive (loss) before reclassifications (3,731) (4,136) (7,867) Less: amounts reclassified from accumulated other comprehensive (loss) (36,354) (114) — (36,468) Total other comprehensive income/(loss) 32,623 (4,022) — 28,601 Balance at End of Period $ (106,902) $ (7,128) $ (385) $ (114,415) Three Months Ended March 31, 2023 Balance at Beginning of Period $ (175,557) $ (4,878) $ (617) $ (181,052) Other comprehensive income before reclassifications 17,744 4,127 — 21,871 Less: amounts reclassified from accumulated other comprehensive (loss) — (115) — (115) Total other comprehensive income 17,744 4,242 — 21,986 Balance at End of Period $ (157,813) $ (636) $ (617) $ (159,066) The following table presents the amounts reclassified out of each component of accumulated other comprehensive income for the three months ended March 31, 2024 and 2023: Affected Line Item in the Three Months Ended March 31, Statement where Net Income (In thousands) 2024 2023 is Presented Realized (losses) on AFS securities: $ (49,909) $ — Non-interest income 13,555 — Tax expense (36,354) — Net of tax Realized (losses) on cash flow hedging derivatives: (157) (157) Interest expense — — Non-interest expense 43 42 Tax benefit (114) (115) Net of tax Total reclassifications for the period $ (36,468) $ (115) Net of tax |
(LOSS)_EARNINGS PER SHARE
(LOSS)/EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
(LOSS)/EARNINGS PER SHARE | (LOSS)/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) 2024 2023 Net (loss)/income $ (20,188) $ 27,637 Average number of common shares issued 51,903 51,903 Less: average number of treasury shares 8,356 7,488 Less: average number of unvested stock award shares 770 722 Average number of basic shares outstanding 42,777 43,693 Plus: dilutive effect of unvested stock award shares 251 343 Plus: dilutive effect of stock options outstanding — — Average number of diluted shares outstanding 43,028 44,036 Basic (loss)/earnings per common share: $ (0.47) $ 0.63 Diluted (loss)/earnings per common share: $ (0.47) $ 0.63 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 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, 2023 785 $ 24.92 49 $ 26.46 Granted 185 24.81 — — Acquired — — — — Stock options exercised — — — — Stock awards vested (167) 21.61 — — Forfeited (49) 26.90 — — Expired — — — — March 31, 2024 754 $ 25.85 49 $ 26.46 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. March 31, 2024 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading securities $ — $ — $ 5,909 $ 5,909 Securities available for sale: U.S Treasuries 7,876 — — 7,876 Municipal bonds and obligations — 62,522 — 62,522 Agency collateralized mortgage obligations — 215,713 — 215,713 Agency residential mortgage-backed securities — 234,640 — 234,640 Agency commercial mortgage-backed securities — 69,858 — 69,858 Corporate bonds — 30,663 3,929 34,592 Other bonds and obligations — 656 — 656 Equity securities 12,823 — — 12,823 Loans held for investment at fair value — — 396 396 Loans held for sale — 6,345 — 6,345 Derivative assets — 52,298 225 52,523 Capitalized servicing rights — — 1,346 1,346 Derivative liabilities — 90,737 — 90,737 December 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading securities $ — $ — $ 6,142 $ 6,142 Securities available for sale: U.S Treasuries 7,981 — — 7,981 Municipal bonds and obligations — 63,853 — 63,853 Agency collateralized mortgage obligations — 347,874 — 347,874 Agency residential mortgage-backed securities — 417,480 — 417,480 Agency commercial mortgage-backed securities — 145,326 — 145,326 Corporate bonds — 35,192 3,923 39,115 Equity securities 13,029 — — 13,029 Loans held for investment at fair value — — 374 374 Loans held for sale — 2,237 — 2,237 Derivative assets — 45,613 55 45,668 Capitalized servicing rights — — 1,526 1,526 Derivative liabilities — 75,957 — 75,957 There were no transfers between levels during the three months ended March 31, 2024. Trading Securities 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 SOFR rate. Securities Available for Sale and Equity Securities . 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. 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 1 consist of U.S. Treasury securities. 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, 2024. Aggregate Fair Value March 31, 2024 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 396 $ 8,273 $ (7,877) Aggregate Fair Value December 31, 2023 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 374 $ 8,809 $ (8,435) 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, 2024 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 6,345 $ 6,258 $ 87 Aggregate Fair Value December 31, 2023 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 2,237 $ 2,205 $ 32 The changes in fair value of loans held for sale for the three months ended March 31, 2024, were gains of $55 thousand. During the three months ended March 31, 2024, originations of loans held for sale totaled $27.8 million. During the three months ended March 31, 2024, sales of loans originated for sale totaled $24.3 million. The changes in fair value of loans held for sale for the three months ended March 31, 2023, were gains of $9 thousand. During the three months ended March 31, 2023, originations of loans held for sale totaled $7.0 million. During the three months ended March 31, 2023, sales of loans originated for sale totaled $6.4 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, 2024, 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, 2024 and 2023. Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Securities for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2024 December 31, 2023 $ 6,142 $ 3,923 $ 374 $ 34 $ 21 $ 1,526 Unrealized (loss)/gain, net recognized in other non-interest income (11) — 48 261 57 (180) Unrealized gain included in accumulated other comprehensive income — 6 — — — — Paydown of asset (222) — (26) — — — Transfers to held for sale loans — — — (148) — — March 31, 2024 $ 5,909 $ 3,929 $ 396 $ 147 $ 78 $ 1,346 Unrealized (loss)/gain relating to instruments still held at March 31, 2024 $ (71) $ (71) $ — $ 147 $ 78 $ — Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Securities for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2023 December 31, 2022 $ 6,708 $ 4,000 $ 605 $ 17 $ 8 $ 1,846 Unrealized gain/(loss), net recognized in other non-interest income 88 — (129) 34 7 (180) Unrealized (loss) included in accumulated other comprehensive income — (200) — — — — Paydown of asset (212) (16) — — — Transfers to held for sale loans — — — (25) — — March 31, 2023 $ 6,584 $ 3,800 $ 460 $ 26 $ 15 $ 1,666 Unrealized (loss)/gain relating to instruments still held at March 31, 2023 $ (266) $ (200) $ — $ 26 $ 15 $ — Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant (In thousands) March 31, 2024 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Securities $ 5,909 Discounted Cash Flow Discount Rate 4.04 % AFS Securities 3,929 Indication from Market Maker Price 98.23% Loans held for investment 396 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $0.0 - $19.4 Commitments to lend 147 Historical Trend Closing Ratio 83.24 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 78 Historical Trend Closing Ratio 83.24 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,346 Discounted cash flow Constant Prepayment Rate (CPR) 7.31 % Discount Rate 11.08 % Total $ 11,805 Fair Value Significant (In thousands) December 31, 2023 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Securities $ 6,142 Discounted Cash Flow Discount Rate 4.19 % AFS Securities 3,923 Indication from Market Maker Price 98.07 % Loans held for investment 374 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $0.0- $18.3 Commitments to lend 34 Historical Trend Closing Ratio 84.29 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 21 Historical Trend Closing Ratio 84.29 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,526 Discounted Cash Flow Constant Prepayment Rate (CPR) 7.63 % Discount Rate 11.08 % Total $ 12,020 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, 2024 Fair Value Measurement Date December 31, 2023 Fair Value Measurement Date Level 3 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Inputs Assets Individually evaluated $ 4,400 March 2024 $ 4,395 December 2023 Capitalized servicing rights 8,643 March 2024 10,569 December 2023 Total $ 13,043 $ 14,964 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) March 31, 2024 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 4,400 Fair Value of Collateral Discounted Cash Flow - Loss Severity (100.00)% to (0.07)% (63.70%) Appraised Value $0 to $3,418 ($2,769) Capitalized servicing rights 8,643 Discounted Cash Flow Constant Prepayment Rate (CPR) 5.56% to 15.89% (12.77%) Discount Rate 10.47% to 15.12% (13.05%) Total $ 13,043 (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, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 4,395 Fair Value of Collateral Discounted Cash Flow - loss severity (100.00)% to (0.08)% ((67.00)%) Appraised Value $0 to $3,389 ($2,774) Capitalized servicing rights 10,569 Discounted Cash Flow Constant Prepayment Rate (CPR) 5.43% to 17.15% (12.31%) Discount Rate 10.09% to 16.59% (13.82%) Total $ 14,964 (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, 2024 and December 31, 2023. 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. Loans Transferred to Held for Sale. Once a decision has been made to sell loans not previously classified as held for sale, these loans are transferred into the held for sale category and carried at the lower of cost or fair value. 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. 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. 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, 2024 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,193,695 $ 1,193,695 $ 1,193,695 $ — $ — Trading securities 5,909 5,909 — — 5,909 Equity securities 12,823 12,823 12,823 — — Securities available for sale 625,857 625,857 7,876 614,052 3,929 Securities held to maturity 531,820 459,626 — 458,206 1,420 Federal Home Loan Bank stock 20,522 N/A N/A N/A N/A Net loans 8,978,422 8,780,482 — — 8,780,482 Loans held for sale 6,345 6,345 — 6,345 — Accrued interest receivable 52,528 52,528 — 52,528 — Derivative assets 52,523 52,523 — 52,298 225 Assets held for sale 83,020 83,020 — 24,565 58,455 Financial Liabilities Total deposits $ 9,882,972 $ 9,869,404 $ — $ 9,869,404 $ — Short-term debt 210,000 209,962 — 209,962 — Long-term Federal Home Loan Bank advances and other 127,169 124,519 — 124,519 — Subordinated borrowings 121,425 102,982 — 102,982 — Accrued interest payable 13,545 13,545 — 13,545 — Derivative liabilities 90,737 90,737 — 90,737 — Liabilities held for sale 497,459 495,972 — 495,972 — December 31, 2023 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,203,244 $ 1,203,244 $ 1,203,244 $ — $ — Trading securities 6,142 6,142 — — 6,142 Equity securities 13,029 13,029 13,029 — — Securities available for sale and other 1,022,285 1,022,285 7,981 1,010,381 3,923 Securities held to maturity 543,351 476,228 — 474,742 1,486 Federal Home Loan Bank stock 22,689 N/A N/A N/A N/A Net loans 8,934,329 8,768,108 — — 8,768,108 Loans held for sale 2,237 2,237 — 2,237 — Accrued interest receivable 53,096 53,096 — 53,096 — Derivative assets 45,668 45,668 — 45,613 55 Financial Liabilities Total deposits $ 10,633,384 $ 10,615,655 $ — $ 10,615,655 $ — Short-term debt 260,000 260,035 — 260,035 — Long-term Federal Home Loan Bank advances 125,223 123,747 — 123,747 — Subordinated borrowings 121,363 98,138 — 98,138 — Accrued interest payable 13,766 13,766 — 13,766 — Derivative liabilities 75,957 75,957 — 75,957 — |
NET INTEREST INCOME AFTER PROVI
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2024 | |
Banking and Thrift, Interest [Abstract] | |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES Presented below is net interest income after provision for credit losses for the three months ended March 31, 2024 and 2023, respectively. Three Months Ended March 31, (In thousands) 2024 2023 Net interest income $ 88,140 $ 97,533 Provision for credit losses 6,000 8,999 Net interest after provision for credit losses $ 82,140 $ 88,534 |
TAX EQUITY INVESTMENTS
TAX EQUITY INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
TAX EQUITY INVESTMENTS | TAX EQUITY INVESTMENTS The Company typically accounts for tax equity investments using the proportional amortization method, if certain criteria are met. The election to account for tax equity investments using the proportional amortization method is done so on a tax credit program-by-tax credit program basis. Under the proportional amortization method, the Company amortizes the initial cost of the investment, which is inclusive of any delayed equity contributions, that are unconditional and legally binding or for equity contributions that are contingent on a future event, when that event becomes probable, in proportion to the income tax credits and other income tax benefits that are allocated to the Company over the period of the investment. Under the proportional amortization method, the Company amortizes the initial cost of the investment, inclusive of delayed equity contributions, in proportion to the income tax credits and other income tax benefits that are allocated to the Company over the period of the investment. The net benefits of these investments, which are comprised of income tax credits and operating loss income tax benefits, net of investment amortization, are recognized in the statement of operations as a component of income tax expense. At March 31, 2024 and December 31, 2023 the carrying value was $35.5 million and $16.6 million, and are included in other assets on the consolidated balance sheet. The carrying value of the Public Welfare Investments on March 31, 2024 include $18 million of delayed equity contributions described in the chart below. As of March 31, 2024, the Company's delayed equity contributions were estimated to be paid as follows: (In thousands) Delayed Equity Contributions 2024 $ 3,939 2025 $ 7,814 2026 $ 3,350 2027 $ 2,841 2028 $ 18 Thereafter $ 222 Total delayed equity contributions $ 18,184 The following table presents income tax credits and other income tax benefits, as well as amortization expense, associated with investments where the proportional amortization method of accounting has been applied for the periods indicated. (In thousands) Three Months Ended Provision for Income Taxes: Amortization of tax credit investments $ (639) Tax credit and other tax benefit/(expense) 573 Total provision for income taxes (66) There were no material non-income tax related activity associated with these investments recorded outside of income tax expense for the three months ended March 31, 2024. The non-income tax related activity associated with these investments recorded outside of the income tax expense for the three months ended March 31, 2023 was $2.3 million. There were no impairment losses recorded on tax equity investments during the three months ended March 31, 2024 and 2023, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net (loss)/income | $ (20,188) | $ 27,637 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023. In management’s opinion, all adjustments necessary for a fair statement are reflected in the interim periods. |
Reclassifications | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
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. |
Recently Adopted Accounting Principles and Future Application of Accounting Pronouncements | Recently Adopted Accounting Principles Effective January 1, 2024, the Corporation adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2023-02, "Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)" (ASU 2023-02). ASU 2023-02 expanded the permitted use of the proportional amortization method (PAM), which was previously only available to low-income housing tax credit investments, to other tax equity investments if certain conditions are met. Under PAM, the initial cost of an investment is amortized in proportion to the income tax benefits received and both the amortization of the investment and the income tax benefits received are recognized as a component of income tax expense. Under this ASU, an entity has the option to apply PAM to applicable investments on a tax-credit-program-by-tax-credit-program basis. The company has elected PAM for its public welfare investments which consist of Affordable Housing and New Market tax credit investments. In addition, the amendments in this ASU require that all tax equity investments accounted for using PAM use the delayed equity contribution guidance in paragraph ASC 323-740-25-3, requiring a liability be recognized for delayed equity contributions that are unconditional and legally binding or for equity contributions that are contingent upon a future event when that contingent event becomes probable. The amendments in this ASU also require additional disclosures in interim and annual periods concerning investments for which PAM is applied, including (i) the nature of tax equity investments, and (ii) the effect of tax equity investments and related income tax credits and other income tax benefits on the financial position and results of operations. The provisions of this ASU became effective for the Company for interim and annual periods beginning January 1, 2024. Refer to Note 15 – Tax Equity Investments for additional information. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Future Application of Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU requires disclosure in the rate reconciliation table of additional categories of information and more details about the reconciling items in some categories if items meet a quantitative threshold. The ASU also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. 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. |
Tax Equity Investments | The Company typically accounts for tax equity investments using the proportional amortization method, if certain criteria are met. The election to account for tax equity investments using the proportional amortization method is done so on a tax credit program-by-tax credit program basis. Under the proportional amortization method, the Company amortizes the initial cost of the investment, which is inclusive of any delayed equity contributions, that are unconditional and legally binding or for equity contributions that are contingent on a future event, when that event becomes probable, in proportion to the income tax credits and other income tax benefits that are allocated to the Company over the period of the investment. |
BRANCH SALE (Tables)
BRANCH SALE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following is a summary of the assets and liabilities associated with the branch sales at March 31, 2024 and December 31, 2023: (In thousands) March 31, 2024 December 31, 2023 Assets Loans $ 58,455 $ — Other assets 13,936 — Total assets $ 72,391 $ — Liabilities Deposits $ 484,530 $ — Other liabilities 12,929 — Total liabilities $ 497,459 $ — |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 Securities available for sale U.S Treasuries $ 7,880 $ — $ (4) $ 7,876 Municipal bonds and obligations 64,384 240 (2,102) 62,522 — Agency collateralized mortgage obligations 282,460 — (66,747) 215,713 — Agency mortgage-backed securities 288,094 — (53,454) 234,640 — Agency commercial mortgage-backed securities 88,302 — (18,444) 69,858 — Corporate bonds 38,721 64 (4,193) 34,592 — Other bonds and obligations 655 67 (66) 656 — Total securities available for sale 770,496 371 (145,010) 625,857 — Securities held to maturity Municipal bonds and obligations 244,100 262 (19,819) 224,543 41 Agency collateralized mortgage obligations 109,825 — (18,809) 91,016 — Agency mortgage-backed securities 46,555 — (8,543) 38,012 — Agency commercial mortgage-backed securities 129,620 — (25,263) 104,357 — Tax advantaged economic development bonds 1,442 — (22) 1,420 20 Other bonds and obligations 278 — — 278 — Total securities held to maturity 531,820 262 (72,456) 459,626 61 Equity securities 15,035 — (2,212) 12,823 — Total $ 1,317,351 $ 633 $ (219,678) $ 1,098,306 $ 61 (In thousands) Amortized Cost Gross Gross Fair Value Allowance December 31, 2023 Securities available for sale U.S Treasuries $ 7,980 $ 1 $ — $ 7,981 $ — Municipal bonds and obligations 64,788 494 (1,429) 63,853 — Agency collateralized mortgage obligations 426,986 — (79,112) 347,874 — Agency mortgage-backed securities 492,633 2 (75,155) 417,480 — Agency commercial mortgage-backed securities 174,879 — (29,553) 145,326 — Corporate bonds 43,291 34 (4,210) 39,115 — Other bonds and obligations 655 67 (66) 656 — Total securities available for sale 1,211,212 598 (189,525) 1,022,285 — Securities held to maturity Municipal bonds and obligations 251,046 698 (16,987) 234,757 48 Agency collateralized mortgage obligations 112,929 — (18,360) 94,569 — Agency mortgage-backed securities 47,379 — (8,052) 39,327 — Agency commercial mortgage-backed securities 130,169 — (24,368) 105,801 — Tax advantaged economic development bonds 1,540 6 (60) 1,486 20 Other bonds and obligations 288 — — 288 — Total securities held to maturity 543,351 704 (67,827) 476,228 68 Equity securities 15,035 — (2,006) 13,029 — Total $ 1,769,598 $ 1,302 $ (259,358) $ 1,511,542 $ 68 |
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, 2024 and 2023: (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2023 $ 48 $ 20 $ 68 (Benefit)/provision for credit losses (7) — (7) Balance at March 31, 2024 $ 41 $ 20 $ 61 (In thousands) Municipal bonds and obligations Tax advantaged economic development bonds Total Balance at December 31, 2022 $ 66 $ 25 $ 91 (Benefit)/provision for credit losses (17) (3) (20) Balance at March 31, 2023 $ 49 $ 22 $ 71 |
Schedule of Amortized Cost and 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, 2024 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 $ 7,960 $ 7,956 $ 410 $ 410 Over 1 year to 5 years 16,547 16,357 1,743 1,720 Over 5 years to 10 years 51,166 47,122 37,444 37,281 Over 10 years 35,967 34,211 206,223 186,830 Total bonds and obligations 111,640 105,646 245,820 226,241 Mortgage-backed securities 658,856 520,211 286,000 233,385 Total $ 770,496 $ 625,857 $ 531,820 $ 459,626 |
Schedule of Securities with Unrealized Losses, Segregated by the Duration of their Continuous Unrealized Loss Positions | 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, 2024 Securities available for sale U.S Treasuries $ 4 $ 7,876 $ — $ — $ 4 $ 7,876 Municipal bonds and obligations 191 22,706 1,911 25,139 2,102 47,845 Agency collateralized mortgage obligations — — 66,747 215,713 66,747 215,713 Agency mortgage-backed securities — — 53,454 234,640 53,454 234,640 Agency commercial mortgage-backed securities — — 18,444 69,858 18,444 69,858 Corporate bonds — — 4,193 33,733 4,193 33,733 Other bonds and obligations — — 66 295 66 295 Total securities available for sale $ 195 $ 30,582 $ 144,815 $ 579,378 $ 145,010 $ 609,960 Securities held to maturity Municipal bonds and obligations $ 420 $ 58,566 $ 19,399 $ 109,527 $ 19,819 $ 168,093 Agency collateralized mortgage obligations 1 20 18,808 90,996 18,809 91,016 Agency mortgage-backed securities — — 8,543 38,012 8,543 38,012 Agency commercial mortgage-backed securities — — 25,263 104,357 25,263 104,357 Tax advantaged economic development bonds 10 487 12 933 22 1,420 Total securities held to maturity 431 59,073 72,025 343,825 72,456 402,898 Total $ 626 $ 89,655 $ 216,840 $ 923,203 $ 217,466 $ 1,012,858 December 31, 2023 Securities available for sale Municipal bonds and obligations $ 76 $ 9,326 $ 1,353 $ 22,739 $ 1,429 $ 32,065 Agency collateralized mortgage obligations — — 79,112 347,874 79,112 347,874 Agency mortgage-backed securities 1 22 75,154 417,151 75,155 417,173 Agency commercial mortgage-backed securities — — 29,553 145,326 29,553 145,326 Corporate bonds 457 6,543 3,753 31,690 4,210 38,233 Other bonds and obligations — — 66 295 66 295 Total securities available for sale $ 534 $ 15,891 $ 188,991 $ 965,075 $ 189,525 $ 980,966 Securities held to maturity Municipal bonds and obligations $ 229 $ 28,895 $ 16,758 $ 92,063 $ 16,987 $ 120,958 Agency collateralized mortgage obligations 1 21 18,359 94,548 18,360 94,569 Agency mortgage-backed securities — — 8,052 39,327 8,052 39,327 Agency commercial mortgage-backed securities — — 24,368 105,801 24,368 105,801 Tax advantaged economic development bonds — — 60 922 60 922 Total securities held to maturity 230 28,916 67,597 332,661 67,827 361,577 Total $ 764 $ 44,807 $ 256,588 $ 1,297,736 $ 257,352 $ 1,342,543 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Construction $ 637,372 $ 640,371 Commercial multifamily 617,854 599,145 Commercial real estate owner occupied 655,839 628,646 Commercial real estate non-owner occupied 2,637,446 2,606,409 Commercial and industrial 1,384,837 1,359,249 Residential real estate 2,752,370 2,760,312 Home equity 206,592 224,223 Consumer other 193,443 221,331 Total loans $ 9,085,753 $ 9,039,686 Allowance for credit losses (107,331) (105,357) Net loans $ 8,978,422 $ 8,934,329 |
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, 2024 and March 31, 2023 was as follows: (In thousands) Balance at Beginning of Period Charge-offs Recoveries Provision/(Benefit) for Credit Losses Balance at End of Period Three months ended March 31, 2024 Construction $ 2,885 $ — $ — $ (305) $ 2,580 Commercial multifamily 2,475 — — 174 2,649 Commercial real estate owner occupied 9,443 (107) 14 548 9,898 Commercial real estate non-owner occupied 38,221 — 81 (4,047) 34,255 Commercial and industrial 18,602 (2,442) 657 3,199 20,016 Residential real estate 19,622 (41) 186 2,644 22,411 Home equity 2,015 — 239 (262) 1,992 Consumer other 12,094 (3,046) 426 4,056 13,530 Total allowance for credit losses $ 105,357 $ (5,636) $ 1,603 $ 6,007 $ 107,331 (In thousands) Balance at Beginning of Period Adoption of ASU No. 2022-02 Charge-offs Recoveries Provision/(Benefit) for Credit Losses Balance at End of Period Three months ended March 31, 2023 Construction $ 1,227 $ — $ — $ — $ 309 1,536 Commercial multifamily 1,810 — — 6 (118) 1,698 Commercial real estate owner occupied 10,739 24 (70) 45 (460) 10,278 Commercial real estate non-owner occupied 30,724 — — 95 2,589 33,408 Commercial and industrial 18,743 (23) (6,033) 305 7,172 20,164 Residential real estate 18,666 2 (31) 387 (1,434) 17,590 Home equity 2,173 — (10) 26 131 2,320 Consumer other 12,188 (404) (1,793) 176 830 10,997 Total allowance for credit losses $ 96,270 $ (401) $ (7,937) $ 1,040 $ 9,019 $ 97,991 |
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, 2024 and 2023 was as follows: Three Months Ended (In thousands) 2024 2023 Balance at beginning of period $ 9,256 $ 8,588 Expense for credit losses — 99 Balance at end of period $ 9,256 $ 8,687 |
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) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2024 Construction Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 8,985 $ 114,473 $ 379,821 $ 100,836 $ 12,866 $ 2,436 $ — $ — $ 619,417 Special Mention — — — 551 — — — — 551 Substandard — — — 17,404 — — — — 17,404 Total $ 8,985 $ 114,473 $ 379,821 $ 118,791 $ 12,866 $ 2,436 $ — $ — $ 637,372 Commercial multifamily: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 30,725 $ 16,484 $ 217,796 $ 56,310 $ 26,412 $ 261,531 $ 400 $ — $ 609,658 Special Mention — — — — — — — — — Substandard — — — 240 2,535 5,421 — — 8,196 Total $ 30,725 $ 16,484 $ 217,796 $ 56,550 $ 28,947 $ 266,952 $ 400 $ — $ 617,854 Commercial real estate owner occupied: Current period gross write-offs $ — $ — $ — $ 40 $ — $ 67 $ — $ — $ 107 Risk rating Pass $ 27,890 $ 102,110 $ 128,047 $ 109,767 $ 46,991 $ 225,876 $ 2,504 $ — $ 643,185 Special Mention — — 122 103 222 4,315 — — 4,762 Substandard — — — 362 47 7,483 — — 7,892 Total $ 27,890 $ 102,110 $ 128,169 $ 110,232 $ 47,260 $ 237,674 $ 2,504 $ — $ 655,839 Commercial real estate non-owner occupied: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 25,826 $ 403,246 $ 593,124 $ 408,882 $ 139,590 $ 982,448 $ 4,560 $ — $ 2,557,676 Special Mention — — 375 2,847 227 26,423 2,256 — 32,128 Substandard — — — — 6,724 40,918 — — 47,642 Total $ 25,826 $ 403,246 $ 593,499 $ 411,729 $ 146,541 $ 1,049,789 $ 6,816 $ — $ 2,637,446 Commercial and industrial: Current period gross write-offs $ — $ 19 $ 645 $ 467 $ 57 $ 1,254 $ — $ — $ 2,442 Risk rating Pass $ 65,753 $ 131,330 $ 180,901 $ 111,392 $ 65,827 $ 139,489 $ 577,352 $ — $ 1,272,044 Special Mention — 517 23,600 2,781 1,608 2,258 27,992 — 58,756 Substandard — 404 856 11,407 905 14,143 26,322 — 54,037 Total $ 65,753 $ 132,251 $ 205,357 $ 125,580 $ 68,340 $ 155,890 $ 631,666 $ — $ 1,384,837 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Residential real estate Current period gross write-offs $ — $ — $ — $ — $ — $ 41 $ — $ — $ 41 Risk rating Pass $ 54,163 $ 593,394 $ 958,105 $ 258,870 $ 85,758 $ 790,298 $ 64 $ — $ 2,740,652 Special Mention — — — — — 1,582 — — 1,582 Substandard — — 127 907 376 8,726 — — 10,136 Total $ 54,163 $ 593,394 $ 958,232 $ 259,777 $ 86,134 $ 800,606 $ 64 $ — $ 2,752,370 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2023 Construction Current period gross write-offs $ — $ — $ — $ — $ — $ 1 $ — $ — $ 1 Risk rating Pass $ 104,507 $ 346,419 $ 138,802 $ 29,176 $ 2,545 $ 1,098 $ — $ — $ 622,547 Special Mention — — 512 — — — — — 512 Substandard — — 17,312 — — — — — 17,312 Total $ 104,507 $ 346,419 $ 156,626 $ 29,176 $ 2,545 $ 1,098 $ — $ — $ 640,371 Commercial multifamily: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Risk rating Pass $ 16,020 $ 216,477 $ 56,817 $ 26,566 $ 94,733 $ 179,923 $ 377 $ — $ 590,913 Special Mention — — — — — — — — — Substandard — — 242 2,554 — 5,436 — — 8,232 Total $ 16,020 $ 216,477 $ 57,059 $ 29,120 $ 94,733 $ 185,359 $ 377 $ — $ 599,145 Commercial real estate owner occupied: Current period gross write-offs $ — $ — $ — $ 380 $ — $ 109 $ — $ — $ 489 Risk rating Pass $ 97,271 $ 120,327 $ 122,151 $ 37,914 $ 70,393 $ 165,224 $ 2,653 $ — $ 615,933 Special Mention — — 424 222 — 788 — — 1,434 Substandard — — 81 47 4,703 6,448 — — 11,279 Total $ 97,271 $ 120,327 $ 122,656 $ 38,183 $ 75,096 $ 172,460 $ 2,653 $ — $ 628,646 Commercial real estate non-owner occupied: Current period gross write-offs $ — $ — $ — $ — $ — $ 65 $ — $ — $ 65 Risk rating Pass $ 404,687 $ 591,897 $ 385,247 $ 135,134 $ 277,870 $ 736,566 $ 4,553 $ — $ 2,535,954 Special Mention — — — 229 19,465 726 — — 20,420 Substandard — — — 6,814 13,483 29,738 — — 50,035 Total $ 404,687 $ 591,897 $ 385,247 $ 142,177 $ 310,818 $ 767,030 $ 4,553 $ — $ 2,606,409 Commercial and industrial: Current period gross write-offs $ — $ 1,154 $ 863 $ 2,763 $ 1,496 $ 9,283 $ 2,313 $ — $ 17,872 Risk rating Pass $ 142,946 $ 203,126 $ 118,191 $ 69,722 $ 39,437 $ 112,770 $ 554,153 $ — $ 1,240,345 Special Mention 526 23,149 3,735 1,621 610 1,353 35,244 — 66,238 Substandard 432 761 11,702 1,135 3,785 12,538 22,313 — 52,666 Total $ 143,904 $ 227,036 $ 133,628 $ 72,478 $ 43,832 $ 126,661 $ 611,710 $ — $ 1,359,249 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total Residential real estate Current period gross write-offs $ — $ 50 $ — $ 50 $ 174 $ 39 $ — $ — $ 313 Risk rating Pass $ 599,124 $ 973,031 $ 266,055 $ 88,302 $ 66,837 $ 755,372 $ 81 $ — $ 2,748,802 Special Mention — — — — 140 664 — — 804 Substandard — 129 1,176 379 574 8,448 — — 10,706 Total $ 599,124 $ 973,160 $ 267,231 $ 88,681 $ 67,551 $ 764,484 $ 81 $ — $ 2,760,312 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) 2024 2023 2022 2021 2020 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2024 Home equity: Current period gross write-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Payment performance Performing $ — $ — $ — $ — $ 435 $ 2,458 $ 202,837 $ — $ 205,730 Nonperforming — — — — — — 862 — 862 Total $ — $ — $ — $ — $ 435 $ 2,458 $ 203,699 $ — $ 206,592 Consumer other: Current period gross write-offs $ — $ 64 $ 2,543 $ 387 $ — $ 52 $ — $ — $ 3,046 Payment performance Performing $ 7,471 $ 41,972 $ 94,137 $ 16,632 $ 4,966 $ 17,766 $ 10,023 $ — $ 192,967 Nonperforming — 1 108 27 4 328 8 — 476 Total $ 7,471 $ 41,973 $ 94,245 $ 16,659 $ 4,970 $ 18,094 $ 10,031 $ — $ 193,443 Term Loans Amortized Cost Basis by Origination Year (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2023 Home equity: Current period gross write-offs $ — $ — $ — $ 70 $ — $ — $ 18 $ — $ 88 Payment performance Performing $ — $ — $ — $ 439 $ — $ 2,614 $ 220,209 $ — $ 223,262 Nonperforming — — — — — — 961 — 961 Total $ — $ — $ — $ 439 $ — $ 2,614 $ 221,170 $ — $ 224,223 Consumer other: Current period gross write-offs $ 109 $ 8,843 $ 1,149 $ 11 $ 78 $ 239 $ — $ — $ 10,429 Payment performance Performing $ 49,588 $ 108,284 $ 19,679 $ 5,843 $ 7,054 $ 19,587 $ 10,614 $ — $ 220,649 Nonperforming 77 104 47 26 110 284 34 — 682 Total $ 49,665 $ 108,388 $ 19,726 $ 5,869 $ 7,164 $ 19,871 $ 10,648 $ — $ 221,331 The following table summarizes information about total loans rated Special Mention or lower at March 31, 2024 and December 31, 2023. 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, 2024 December 31, 2023 Non-Accrual $ 21,455 $ 21,407 Substandard Accruing 126,806 131,689 Total Classified 148,261 153,096 Special Mention 99,037 91,502 Total Criticized $ 247,298 $ 244,598 |
Schedule of Past Due Loans | The following is a summary of loans by past due status at March 31, 2024 and December 31, 2023: (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, 2024 Construction $ — $ — $ — $ — $ 637,372 $ 637,372 Commercial multifamily 531 5,421 — 5,952 611,902 617,854 Commercial real estate owner occupied 347 701 1,268 2,316 653,523 655,839 Commercial real estate non-owner occupied 5,732 — 3,697 9,429 2,628,017 2,637,446 Commercial and industrial 709 149 9,271 10,129 1,374,708 1,384,837 Residential real estate 8,929 1,582 10,137 20,648 2,731,722 2,752,370 Home equity 679 111 1,464 2,254 204,338 206,592 Consumer other 1,631 1,161 1,499 4,291 189,152 193,443 Total $ 18,558 $ 9,125 $ 27,336 $ 55,019 $ 9,030,734 $ 9,085,753 (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, 2023 Construction $ — $ — $ — $ — $ 640,371 $ 640,371 Commercial multifamily 5,436 187 — 5,623 593,522 599,145 Commercial real estate owner occupied 581 286 804 1,671 626,975 628,646 Commercial real estate non-owner occupied 139 251 3,798 4,188 2,602,221 2,606,409 Commercial and industrial 2,749 689 8,769 12,207 1,347,042 1,359,249 Residential real estate 5,669 943 10,687 17,299 2,743,013 2,760,312 Home equity 707 498 1,281 2,486 221,737 224,223 Consumer other 2,363 1,642 1,606 5,611 215,720 221,331 Total $ 17,644 $ 4,496 $ 26,945 $ 49,085 $ 8,990,601 $ 9,039,686 |
Schedule 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, 2024 and December 31, 2023: (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, 2024 Construction $ — $ — $ — $ — Commercial multifamily — — — — Commercial real estate owner occupied 1,268 571 — — Commercial real estate non-owner occupied 3,697 38 — — Commercial and industrial 8,971 5,613 300 — Residential real estate 6,182 2,723 3,955 — Home equity 862 114 602 — Consumer other 475 — 1,024 — Total $ 21,455 $ 9,059 $ 5,881 $ — The commercial and industrial loans nonaccrual amortized cost as of March 31, 2024 included medallion loans with a fair value of $0.4 million and a contractual balance of $8.3 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, 2023 Construction $ — $ — $ — $ — Commercial multifamily — — — — Commercial real estate owner occupied 605 285 199 — Commercial real estate non-owner occupied 3,798 45 — — Commercial and industrial 8,665 5,586 104 — Residential real estate 6,696 2,796 3,991 — Home equity 961 122 320 — Consumer other 682 — 924 — Total $ 21,407 $ 8,834 $ 5,538 $ — |
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, 2024 Construction $ — $ — $ — Commercial multifamily — — — Commercial real estate owner occupied 592 — — Commercial real estate non-owner occupied 331 — — Commercial and industrial 4,539 — 1,072 Residential real estate 2,305 — — Home equity 114 — — Consumer other — — — Total loans $ 7,881 $ — $ 1,072 December 31, 2023 Construction $ — $ — $ — Commercial multifamily — — — Commercial real estate owner occupied 650 — — Commercial real estate non-owner occupied 342 — — Commercial and industrial 4,788 — 944 Residential real estate 5,035 — — Home equity 135 — — Consumer other 40 — — Total loans $ 10,990 $ — $ 944 |
Schedule of Amortized Cost Basis of Loans | The following tables present the amortized cost basis of loans at March 31, 2024 and March 31,2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and March 31,2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below: (In thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Three months ended March 31, 2024 Construction $ — $ — $ — $ — $ — $ — — % Commercial multifamily — — — — — — — Commercial real estate owner occupied — — — — — — — Commercial real estate non-owner occupied — — — — — — — Commercial and industrial — 108 474 297 — — 0.06 Residential real estate — — — — — — — Home equity — — — — — — — Consumer other — — — — — — — Total $ — $ 108 $ 474 $ 297 $ — $ — 0.01 % The Company has not committed to lend additional amounts to the borrowers included in the previous table. (In thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Combination Term Extension and Principal Forgiveness Combination Term Extension and Interest Rate Reduction Total Class of Financing Receivable Three months ended March 31, 2023 Construction $ — $ — $ — $ — $ — $ — — % Commercial multifamily — — — — — — — Commercial real estate owner occupied — 387 — — — — 0.06 Commercial real estate non-owner occupied — — — — — — — Commercial and industrial — — — — 10 — — Residential real estate — — — — — — — Home equity — — — — — — — Consumer other — — — — — — — Total $ — $ 387 $ — $ — $ 10 $ — — % The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2024 and March 31, 2023. (In thousands) Principal Forgiveness Weighted Average Interest Rate Reduction Weighted Average Term Extension (months) Three months ended March 31, 2024 Construction $ — — % 0 Commercial multifamily — — 0 Commercial real estate owner occupied — — 0 Commercial real estate non-owner occupied — — 0 Commercial and industrial — 10.75 56 Residential real estate — — 0 Home equity — — 0 Consumer other — — 0 (In thousands) Principal Forgiveness Weighted Average Interest Rate Reduction Weighted Average Term Extension (months) Three months ended March 31, 2023 Construction $ — — % 0 Commercial multifamily — — 0 Commercial real estate owner occupied — — 0 Commercial real estate non-owner occupied — — 0 Commercial and industrial — 1.25 0 Residential real estate — — 0 Home equity — — 0 Consumer other — — 0 The following table presents the amortized cost basis of loans that had a payment default during the three months ended March 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. (in thousands) Principal Forgiveness Payment Delay Term Extension Interest Rate Reduction Three months ended March 31, 2024 Construction $ — $ — $ — $ — Commercial multifamily — — — — Commercial real estate owner occupied — — — — Commercial real estate non-owner occupied — — — — Commercial and industrial — — 202 — Residential real estate — — — — Home equity — — — — Consumer other — — — — Total $ — $ — $ 202 $ — |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 $ 667,853 $ 724,911 Time $100,000 through $250,000 1,143,941 1,276,175 Time more than $250,000 593,590 685,164 Total time deposits $ 2,405,384 $ 2,686,250 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 December 31, 2023 Weighted Weighted Average Average (Dollars in thousands) Principal Rate Principal Rate Short-term debt: Advances from the FHLB $ 210,000 5.54 % $ 260,000 5.54 % Total short-term borrowings: 210,000 5.54 260,000 5.54 Long-term debt: Advances from the FHLB and other borrowings 127,169 4.76 125,223 4.80 Subordinated borrowings 98,384 5.50 98,335 5.50 Junior subordinated borrowing - Trust I 15,464 7.43 15,464 7.49 Junior subordinated borrowing - Trust II 7,577 7.29 7,564 7.35 Total long-term borrowings: 248,594 5.29 246,586 5.33 Total $ 458,594 5.40 % $ 506,586 5.44 % |
Schedule of Maturities of FHLBB Advances | A summary of maturities of FHLB advances as of March 31, 2024 is as follows: March 31, 2024 Weighted Average (In thousands, except rates) Principal Rate Fixed rate advances maturing: 2024 $ 240,007 5.46 % 2025 90,000 5.01 2026 512 2.20 2027 155 2.00 2028 and beyond 6,495 0.71 Total FHLB advances $ 337,169 5.24 % |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on commercial loans (1) $ 600,000 1.6 3.64 % 5.33 % $ — Interest rate collars on commercial loans 200,000 2.3 430 Total cash flow hedges 800,000 430 Economic hedges: Interest rate swap on tax advantaged economic development bond $ 5,980 5.7 5.81 % 5.09 % $ (84) Interest rate swaps on loans with commercial loan customers 1,823,651 4.7 4.42 % 6.31 % (87,452) Offsetting interest rate swaps on loans with commercial loan customers (1) 1,823,651 4.7 6.31 % 4.42 % 48,691 Risk participation agreements with dealer banks 374,457 5.2 (28) Forward sale commitments 5,711 0.2 78 Total economic hedges 4,033,450 (38,795) Non-hedging derivatives: Commitments to lend 21,962 0.2 147 Total non-hedging derivatives 21,962 147 Total $ 4,855,412 $ (38,218) (1) Fair value estimates include the impact of $29.2 million settled to market contract agreements. Information about derivative assets and liabilities at December 31, 2023, follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Interest rate swaps on commercial loans $ 600,000 1.9 3.64 % 5.35 % $ — Interest rate collars on commercial loans 200,000 2.5 1,658 800,000 1,658 Economic hedges: Interest rate swap on tax advantaged economic development bond $ 6,202 5.9 5.82 % 5.09 % $ (172) Interest rate swaps on loans with commercial loan customers 1,795,562 4.9 4.36 % 6.27 % (63,865) Offsetting interest rate swaps on loans with commercial loan customers (1) 1,795,562 4.9 6.27 % 4.36 % 32,053 Risk participation agreements with dealer banks 376,553 5.5 (18) Forward sale commitments 2,207 0.2 21 Total economic hedges 3,976,086 (31,981) Non-hedging derivatives: Commitments to lend 11,104 0.2 34 Total non-hedging derivatives 11,104 34 Total $ 4,787,190 $ (30,289) (1) Fair value estimates include the impact of $26.7 million settled to market contract agreements. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Amounts included in the Consolidated Statements of Operations and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows: Three Months Ended (In thousands) 2024 2023 Interest rate swaps on commercial loans: Unrealized (loss) recognized in accumulated other comprehensive loss $ (5,681) $ 5,641 Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense (157) (157) Net tax benefit on items recognized in accumulated other comprehensive income 1,502 (1,556) Other comprehensive loss recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ (4,022) $ 4,242 Net interest expense recognized on hedged commercial loans $ 2,720 $ 1,293 |
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 Operations related to economic hedges and non-hedging derivatives were as follows: Three Months Ended March 31, (In thousands) 2024 2023 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain recognized in other non-interest income $ 88 $ (68) Interest rate swaps on loans with commercial loan customers: Unrealized (loss)/gain recognized in other non-interest income (23,649) 27,024 Favorable change in credit valuation adjustment recognized in other non-interest income — — Offsetting interest rate swaps on loans with commercial loan customers: Unrealized gain/(loss) recognized in other non-interest income 23,649 (27,024) Risk participation agreements: Unrealized gain/(loss) recognized in other non-interest income 10 (16) Forward commitments: Unrealized gain recognized in other non-interest income 57 7 Non-hedging derivatives Commitments to lend Unrealized gain recognized in other non-interest income $ 113 $ 9 Realized gain in other non-interest income 157 39 |
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 the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Assets Balance Sheet Balance Sheet Instruments Collateral Received Net Amount March 31, 2024 Interest Rate Swap Agreements: Institutional counterparties $ 87,412 $ (38,761) $ 48,651 $ — $ — $ 48,651 Commercial counterparties 3,725 — 3,725 — — 3,725 Total $ 91,137 $ (38,761) $ 52,376 $ — $ — $ 52,376 Offsetting of Financial Assets and Derivative Assets Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Assets Balance Sheet Balance Sheet Instruments Collateral Received Net Amount December 31, 2023 Interest Rate Swap Agreements: Institutional counterparties $ 71,579 $ (31,812) $ 39,767 $ — $ — $ 39,767 Commercial counterparties 5,992 — 5,992 — — 5,992 Total $ 77,571 $ (31,812) $ 45,759 $ — $ — $ 45,759 |
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 the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Liabilities Balance Sheet Balance Sheet Instruments Collateral Pledged Net Amount March 31, 2024 Interest Rate Swap Agreements: Institutional counterparties $ (13,400) $ 9,584 $ (3,816) $ 10,115 $ — $ 6,299 Commercial counterparties (86,919) — (86,919) — — (86,919) Total $ (100,319) $ 9,584 $ (90,735) $ 10,115 $ — $ (80,620) Offsetting of Financial Liabilities and Derivative Liabilities Gross Gross Amounts Net Amounts Gross Amounts Not Offset in the Consolidated Balance Sheet Recognized Consolidated Consolidated Financial Cash (In thousands) Liabilities Balance Sheet Balance Sheet Instruments Collateral Pledged Net Amount December 31, 2023 Interest Rate Swap Agreements: Institutional counterparties $ (11,277) $ 5,142 $ (6,135) $ 9,633 $ — $ 3,498 Commercial counterparties (69,796) — (69,796) — — (69,796) Total $ (81,073) $ 5,142 $ (75,931) $ 9,633 $ — $ (66,298) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of ROU Assets and Lease Liabilities | The following table represents the Consolidated Balance Sheet classification of the Company’s right-of-use (“ROU”) assets and lease liabilities: (In thousands) March 31, 2024 December 31, 2023 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Other assets $ 40,845 $ 47,348 Finance lease right-of-use assets Premises and equipment, net 665 5,597 Total Lease Right-of-Use Assets $ 41,510 $ 52,945 Lease Liabilities Operating lease liabilities Other liabilities $ 46,068 $ 53,026 Finance lease liabilities Other liabilities 927 8,681 Total Lease Liabilities $ 46,995 $ 61,707 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental information related to leases was as follows: March 31, 2024 December 31, 2023 Weighted-Average Remaining Lease Term (in years) Operating leases 8.2 8.3 Finance leases 13.8 10.8 Weighted-Average Discount Rate Operating leases 2.97 % 2.90 % Finance leases 5.00 % 5.00 % Supplemental cash flow information related to leases was as follows: Three Months Ended (In thousands) March 31, 2024 March 31, 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,194 $ 2,273 Operating cash flows from finance leases 75 113 Financing cash flows from finance leases 149 147 |
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, 2024: (In thousands) Operating Leases Finance Leases 2024 $ 6,620 $ 70 2025 7,840 93 2026 6,840 93 2027 5,957 93 2028 4,920 93 Thereafter 19,077 837 Total undiscounted lease payments 51,254 1,279 Less amounts representing interest (5,186) (352) Lease liability $ 46,068 $ 927 |
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, 2024: (In thousands) Operating Leases Finance Leases 2024 $ 6,620 $ 70 2025 7,840 93 2026 6,840 93 2027 5,957 93 2028 4,920 93 Thereafter 19,077 837 Total undiscounted lease payments 51,254 1,279 Less amounts representing interest (5,186) (352) Lease liability $ 46,068 $ 927 |
CAPITAL RATIOS AND SHAREHOLDE_2
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 14.0 % 14.4 % 8.0 % Tier 1 capital to risk-weighted assets 11.8 12.3 6.0 Common equity tier 1 capital to risk-weighted assets 11.6 12.0 4.5 Tier 1 capital to average assets 9.5 9.7 4.0 March 31, December 31, Regulatory Minimum to be Adequately Capitalized Regulatory Bank Total capital to risk-weighted assets 13.0 % 13.3 % 8.0 % 10.0 % Tier 1 capital to risk-weighted assets 11.9 12.2 6.0 8.0 Common equity tier 1 capital to risk-weighted assets 11.9 12.2 4.5 6.5 Tier 1 capital to average assets 9.6 9.6 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 $ (144,640) $ (188,927) Net unrealized (loss) on cash flow hedging derivatives (9,789) (4,265) Net unrealized holding (loss) on pension plans (528) (528) Income taxes related to items of accumulated other comprehensive income: Net unrealized tax benefit on AFS securities 37,737 49,401 Net unrealized tax benefit on cash flow hedging derivatives 2,661 1,159 Net unrealized tax benefit on pension plans 144 144 Accumulated other comprehensive loss $ (114,415) $ (143,016) |
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, 2024 and 2023: (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended March 31, 2024 Net unrealized holding loss on AFS securities: x Net unrealized (losses) arising during the period $ (5,622) $ 1,891 $ (3,731) Less: reclassification adjustment for (losses) realized in net income (49,909) 13,555 (36,354) Net unrealized holding gain on AFS securities 44,287 (11,664) 32,623 Net unrealized loss on cash flow hedging derivatives: Net unrealized (loss) arising during the period (5,681) 1,545 (4,136) Less: reclassification adjustment for (losses) realized in net income (157) 43 (114) Net unrealized loss on cash flow hedging derivatives (5,524) 1,502 (4,022) Other comprehensive income $ 38,763 $ (10,162) $ 28,601 Three Months Ended March 31, 2023 Net unrealized holding loss on AFS securities: Net unrealized (losses) arising during the period $ 23,968 $ (6,224) $ 17,744 Less: reclassification adjustment for gains realized in net income — — — Net unrealized holding (loss) on AFS securities 23,968 (6,224) 17,744 Net unrealized loss on cash flow hedging derivatives: Net unrealized (loss) arising during the period 5,641 (1,514) 4,127 Less: reclassification adjustment for (losses) realized in net income (157) 42 (115) Net unrealized (loss) on cash flow hedging derivatives 5,798 (1,556) 4,242 Other comprehensive income $ 29,766 $ (7,780) $ 21,986 |
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, 2024 and 2023: (In thousands) Net unrealized Net loss on Net unrealized Total Three Months Ended March 31, 2024 Balance at Beginning of Period $ (139,525) $ (3,106) $ (385) $ (143,016) Other comprehensive (loss) before reclassifications (3,731) (4,136) (7,867) Less: amounts reclassified from accumulated other comprehensive (loss) (36,354) (114) — (36,468) Total other comprehensive income/(loss) 32,623 (4,022) — 28,601 Balance at End of Period $ (106,902) $ (7,128) $ (385) $ (114,415) Three Months Ended March 31, 2023 Balance at Beginning of Period $ (175,557) $ (4,878) $ (617) $ (181,052) Other comprehensive income before reclassifications 17,744 4,127 — 21,871 Less: amounts reclassified from accumulated other comprehensive (loss) — (115) — (115) Total other comprehensive income 17,744 4,242 — 21,986 Balance at End of Period $ (157,813) $ (636) $ (617) $ (159,066) |
Schedule of Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income for the three months ended March 31, 2024 and 2023: Affected Line Item in the Three Months Ended March 31, Statement where Net Income (In thousands) 2024 2023 is Presented Realized (losses) on AFS securities: $ (49,909) $ — Non-interest income 13,555 — Tax expense (36,354) — Net of tax Realized (losses) on cash flow hedging derivatives: (157) (157) Interest expense — — Non-interest expense 43 42 Tax benefit (114) (115) Net of tax Total reclassifications for the period $ (36,468) $ (115) Net of tax |
(LOSS)_EARNINGS PER SHARE (Tabl
(LOSS)/EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) 2024 2023 Net (loss)/income $ (20,188) $ 27,637 Average number of common shares issued 51,903 51,903 Less: average number of treasury shares 8,356 7,488 Less: average number of unvested stock award shares 770 722 Average number of basic shares outstanding 42,777 43,693 Plus: dilutive effect of unvested stock award shares 251 343 Plus: dilutive effect of stock options outstanding — — Average number of diluted shares outstanding 43,028 44,036 Basic (loss)/earnings per common share: $ (0.47) $ 0.63 Diluted (loss)/earnings per common share: $ (0.47) $ 0.63 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 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, 2023 785 $ 24.92 49 $ 26.46 Granted 185 24.81 — — Acquired — — — — Stock options exercised — — — — Stock awards vested (167) 21.61 — — Forfeited (49) 26.90 — — Expired — — — — March 31, 2024 754 $ 25.85 49 $ 26.46 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. March 31, 2024 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading securities $ — $ — $ 5,909 $ 5,909 Securities available for sale: U.S Treasuries 7,876 — — 7,876 Municipal bonds and obligations — 62,522 — 62,522 Agency collateralized mortgage obligations — 215,713 — 215,713 Agency residential mortgage-backed securities — 234,640 — 234,640 Agency commercial mortgage-backed securities — 69,858 — 69,858 Corporate bonds — 30,663 3,929 34,592 Other bonds and obligations — 656 — 656 Equity securities 12,823 — — 12,823 Loans held for investment at fair value — — 396 396 Loans held for sale — 6,345 — 6,345 Derivative assets — 52,298 225 52,523 Capitalized servicing rights — — 1,346 1,346 Derivative liabilities — 90,737 — 90,737 December 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading securities $ — $ — $ 6,142 $ 6,142 Securities available for sale: U.S Treasuries 7,981 — — 7,981 Municipal bonds and obligations — 63,853 — 63,853 Agency collateralized mortgage obligations — 347,874 — 347,874 Agency residential mortgage-backed securities — 417,480 — 417,480 Agency commercial mortgage-backed securities — 145,326 — 145,326 Corporate bonds — 35,192 3,923 39,115 Equity securities 13,029 — — 13,029 Loans held for investment at fair value — — 374 374 Loans held for sale — 2,237 — 2,237 Derivative assets — 45,613 55 45,668 Capitalized servicing rights — — 1,526 1,526 Derivative liabilities — 75,957 — 75,957 |
Schedule of Loans Held for Investment and Loans Held for Sale | Aggregate Fair Value March 31, 2024 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 396 $ 8,273 $ (7,877) Aggregate Fair Value December 31, 2023 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for investment at fair value $ 374 $ 8,809 $ (8,435) 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, 2024 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 6,345 $ 6,258 $ 87 Aggregate Fair Value December 31, 2023 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans held for sale $ 2,237 $ 2,205 $ 32 |
Schedule of Changes in Level 3 Assets and 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, 2024 and 2023. Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Securities for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2024 December 31, 2023 $ 6,142 $ 3,923 $ 374 $ 34 $ 21 $ 1,526 Unrealized (loss)/gain, net recognized in other non-interest income (11) — 48 261 57 (180) Unrealized gain included in accumulated other comprehensive income — 6 — — — — Paydown of asset (222) — (26) — — — Transfers to held for sale loans — — — (148) — — March 31, 2024 $ 5,909 $ 3,929 $ 396 $ 147 $ 78 $ 1,346 Unrealized (loss)/gain relating to instruments still held at March 31, 2024 $ (71) $ (71) $ — $ 147 $ 78 $ — Assets (Liabilities) Securities Loans Capitalized Trading Available Held for Commitments Forward Servicing (In thousands) Securities for Sale Investment to Lend Commitments Rights Three Months Ended March 31, 2023 December 31, 2022 $ 6,708 $ 4,000 $ 605 $ 17 $ 8 $ 1,846 Unrealized gain/(loss), net recognized in other non-interest income 88 — (129) 34 7 (180) Unrealized (loss) included in accumulated other comprehensive income — (200) — — — — Paydown of asset (212) (16) — — — Transfers to held for sale loans — — — (25) — — March 31, 2023 $ 6,584 $ 3,800 $ 460 $ 26 $ 15 $ 1,666 Unrealized (loss)/gain relating to instruments still held at March 31, 2023 $ (266) $ (200) $ — $ 26 $ 15 $ — |
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, 2024 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Securities $ 5,909 Discounted Cash Flow Discount Rate 4.04 % AFS Securities 3,929 Indication from Market Maker Price 98.23% Loans held for investment 396 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $0.0 - $19.4 Commitments to lend 147 Historical Trend Closing Ratio 83.24 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 78 Historical Trend Closing Ratio 83.24 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,346 Discounted cash flow Constant Prepayment Rate (CPR) 7.31 % Discount Rate 11.08 % Total $ 11,805 Fair Value Significant (In thousands) December 31, 2023 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Securities $ 6,142 Discounted Cash Flow Discount Rate 4.19 % AFS Securities 3,923 Indication from Market Maker Price 98.07 % Loans held for investment 374 Discounted Cash Flow Discount Rate 25.00 % Collateral Value $0.0- $18.3 Commitments to lend 34 Historical Trend Closing Ratio 84.29 % Pricing Model Origination Costs, per loan $ 3 Forward commitments 21 Historical Trend Closing Ratio 84.29 % Pricing Model Origination Costs, per loan $ 3 Capitalized servicing rights 1,526 Discounted Cash Flow Constant Prepayment Rate (CPR) 7.63 % Discount Rate 11.08 % Total $ 12,020 March 31, 2024 Fair Value Measurement Date December 31, 2023 Fair Value Measurement Date Level 3 Level 3 Level 3 Level 3 (In thousands) Inputs Inputs Inputs Inputs Assets Individually evaluated $ 4,400 March 2024 $ 4,395 December 2023 Capitalized servicing rights 8,643 March 2024 10,569 December 2023 Total $ 13,043 $ 14,964 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (In thousands) March 31, 2024 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 4,400 Fair Value of Collateral Discounted Cash Flow - Loss Severity (100.00)% to (0.07)% (63.70%) Appraised Value $0 to $3,418 ($2,769) Capitalized servicing rights 8,643 Discounted Cash Flow Constant Prepayment Rate (CPR) 5.56% to 15.89% (12.77%) Discount Rate 10.47% to 15.12% (13.05%) Total $ 13,043 (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, 2023 Valuation Techniques Unobservable Inputs Range (Weighted Average) (1) Assets Individually evaluated $ 4,395 Fair Value of Collateral Discounted Cash Flow - loss severity (100.00)% to (0.08)% ((67.00)%) Appraised Value $0 to $3,389 ($2,774) Capitalized servicing rights 10,569 Discounted Cash Flow Constant Prepayment Rate (CPR) 5.43% to 17.15% (12.31%) Discount Rate 10.09% to 16.59% (13.82%) Total $ 14,964 (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. |
Schedule of Estimated Non-recurring Fair Value 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, 2024 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,193,695 $ 1,193,695 $ 1,193,695 $ — $ — Trading securities 5,909 5,909 — — 5,909 Equity securities 12,823 12,823 12,823 — — Securities available for sale 625,857 625,857 7,876 614,052 3,929 Securities held to maturity 531,820 459,626 — 458,206 1,420 Federal Home Loan Bank stock 20,522 N/A N/A N/A N/A Net loans 8,978,422 8,780,482 — — 8,780,482 Loans held for sale 6,345 6,345 — 6,345 — Accrued interest receivable 52,528 52,528 — 52,528 — Derivative assets 52,523 52,523 — 52,298 225 Assets held for sale 83,020 83,020 — 24,565 58,455 Financial Liabilities Total deposits $ 9,882,972 $ 9,869,404 $ — $ 9,869,404 $ — Short-term debt 210,000 209,962 — 209,962 — Long-term Federal Home Loan Bank advances and other 127,169 124,519 — 124,519 — Subordinated borrowings 121,425 102,982 — 102,982 — Accrued interest payable 13,545 13,545 — 13,545 — Derivative liabilities 90,737 90,737 — 90,737 — Liabilities held for sale 497,459 495,972 — 495,972 — December 31, 2023 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 1,203,244 $ 1,203,244 $ 1,203,244 $ — $ — Trading securities 6,142 6,142 — — 6,142 Equity securities 13,029 13,029 13,029 — — Securities available for sale and other 1,022,285 1,022,285 7,981 1,010,381 3,923 Securities held to maturity 543,351 476,228 — 474,742 1,486 Federal Home Loan Bank stock 22,689 N/A N/A N/A N/A Net loans 8,934,329 8,768,108 — — 8,768,108 Loans held for sale 2,237 2,237 — 2,237 — Accrued interest receivable 53,096 53,096 — 53,096 — Derivative assets 45,668 45,668 — 45,613 55 Financial Liabilities Total deposits $ 10,633,384 $ 10,615,655 $ — $ 10,615,655 $ — Short-term debt 260,000 260,035 — 260,035 — Long-term Federal Home Loan Bank advances 125,223 123,747 — 123,747 — Subordinated borrowings 121,363 98,138 — 98,138 — Accrued interest payable 13,766 13,766 — 13,766 — Derivative liabilities 75,957 75,957 — 75,957 — |
NET INTEREST INCOME AFTER PRO_2
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, respectively. Three Months Ended March 31, (In thousands) 2024 2023 Net interest income $ 88,140 $ 97,533 Provision for credit losses 6,000 8,999 Net interest after provision for credit losses $ 82,140 $ 88,534 |
TAX EQUITY INVESTMENTS (Tables)
TAX EQUITY INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Fiscal Year Maturity Commitment | As of March 31, 2024, the Company's delayed equity contributions were estimated to be paid as follows: (In thousands) Delayed Equity Contributions 2024 $ 3,939 2025 $ 7,814 2026 $ 3,350 2027 $ 2,841 2028 $ 18 Thereafter $ 222 Total delayed equity contributions $ 18,184 |
Schedule Of Tax Credit And Benefits | The following table presents income tax credits and other income tax benefits, as well as amortization expense, associated with investments where the proportional amortization method of accounting has been applied for the periods indicated. (In thousands) Three Months Ended Provision for Income Taxes: Amortization of tax credit investments $ (639) Tax credit and other tax benefit/(expense) 573 Total provision for income taxes (66) |
BRANCH SALE- Narrative (Details
BRANCH SALE- Narrative (Details) - Branch Sales $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) office buyer branch | Dec. 31, 2023 USD ($) | |
Albany, Saratoga, Schenectady and Columbia counties | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of office | 8 | |
Whitehall | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of office | 1 | |
East Syracuse | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of office | 1 | |
Held For Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of branches buyers | buyer | 3 | |
Number of branches sold | branch | 10 | |
Loans | $ | $ 58,455 | $ 0 |
Deposits | $ | $ 484,530 | $ 0 |
BRANCH SALE (Details)
BRANCH SALE (Details) - Held For Sale - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Total assets | $ 83,020 | $ 10,938 |
Liabilities | ||
Total liabilities | 497,459 | 0 |
Branch Sales | ||
Assets | ||
Loans | 58,455 | 0 |
Other assets | 13,936 | 0 |
Total assets | 72,391 | 0 |
Liabilities | ||
Deposits | 484,530 | 0 |
Other liabilities | 12,929 | 0 |
Total liabilities | $ 497,459 | $ 0 |
TRADING SECURITIES (Details)
TRADING SECURITIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 6 | $ 6.2 |
Trading securities | $ 5.9 | $ 6.1 |
SECURITIES AVAILABLE FOR SALE_3
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES - Schedule of Securities Available for Sale, Held to Maturity, and Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Securities available for sale | ||||
Amortized Cost | $ 770,496 | $ 1,211,212 | ||
Gross Unrealized Gains | 371 | 598 | ||
Gross Unrealized Losses | (145,010) | (189,525) | ||
Fair Value | 625,857 | 1,022,285 | ||
Allowance | 0 | 0 | ||
Securities held to maturity | ||||
Amortized Cost | 531,820 | 543,351 | ||
Gross Unrealized Gains | 262 | 704 | ||
Gross Unrealized Losses | (72,456) | (67,827) | ||
Fair Value | 459,626 | 476,228 | ||
Allowance | 61 | 68 | $ 71 | $ 91 |
Equity securities, Amortized Cost | 15,035 | 15,035 | ||
Equity securities, Gross Unrealized Gains | 0 | 0 | ||
Equity securities, Gross Unrealized Losses | (2,212) | (2,006) | ||
Equity securities, Fair Value | 12,823 | 13,029 | ||
Amortized Cost | 1,317,351 | 1,769,598 | ||
Gross Unrealized Gains | 633 | 1,302 | ||
Gross Unrealized Losses | (219,678) | (259,358) | ||
Fair Value | 1,098,306 | 1,511,542 | ||
Allowance | 61 | 68 | ||
U.S Treasuries | ||||
Securities available for sale | ||||
Amortized Cost | 7,880 | 7,980 | ||
Gross Unrealized Gains | 0 | 1 | ||
Gross Unrealized Losses | (4) | 0 | ||
Fair Value | 7,876 | 7,981 | ||
Allowance | 0 | |||
Municipal bonds and obligations | ||||
Securities available for sale | ||||
Amortized Cost | 64,384 | 64,788 | ||
Gross Unrealized Gains | 240 | 494 | ||
Gross Unrealized Losses | (2,102) | (1,429) | ||
Fair Value | 62,522 | 63,853 | ||
Allowance | 0 | 0 | ||
Securities held to maturity | ||||
Amortized Cost | 244,100 | 251,046 | ||
Gross Unrealized Gains | 262 | 698 | ||
Gross Unrealized Losses | (19,819) | (16,987) | ||
Fair Value | 224,543 | 234,757 | ||
Allowance | 41 | 48 | 49 | 66 |
Agency collateralized mortgage obligations | ||||
Securities available for sale | ||||
Amortized Cost | 282,460 | 426,986 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (66,747) | (79,112) | ||
Fair Value | 215,713 | 347,874 | ||
Allowance | 0 | 0 | ||
Securities held to maturity | ||||
Amortized Cost | 109,825 | 112,929 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (18,809) | (18,360) | ||
Fair Value | 91,016 | 94,569 | ||
Allowance | 0 | 0 | ||
Agency mortgage-backed securities | ||||
Securities available for sale | ||||
Amortized Cost | 288,094 | 492,633 | ||
Gross Unrealized Gains | 0 | 2 | ||
Gross Unrealized Losses | (53,454) | (75,155) | ||
Fair Value | 234,640 | 417,480 | ||
Allowance | 0 | 0 | ||
Securities held to maturity | ||||
Amortized Cost | 46,555 | 47,379 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (8,543) | (8,052) | ||
Fair Value | 38,012 | 39,327 | ||
Allowance | 0 | 0 | ||
Agency commercial mortgage-backed securities | ||||
Securities available for sale | ||||
Amortized Cost | 88,302 | 174,879 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (18,444) | (29,553) | ||
Fair Value | 69,858 | 145,326 | ||
Allowance | 0 | 0 | ||
Securities held to maturity | ||||
Amortized Cost | 129,620 | 130,169 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | (25,263) | (24,368) | ||
Fair Value | 104,357 | 105,801 | ||
Allowance | 0 | 0 | ||
Corporate bonds | ||||
Securities available for sale | ||||
Amortized Cost | 38,721 | 43,291 | ||
Gross Unrealized Gains | 64 | 34 | ||
Gross Unrealized Losses | (4,193) | (4,210) | ||
Fair Value | 34,592 | 39,115 | ||
Allowance | 0 | 0 | ||
Other bonds and obligations | ||||
Securities available for sale | ||||
Amortized Cost | 655 | 655 | ||
Gross Unrealized Gains | 67 | 67 | ||
Gross Unrealized Losses | (66) | (66) | ||
Fair Value | 656 | 656 | ||
Allowance | 0 | 0 | ||
Securities held to maturity | ||||
Amortized Cost | 278 | 288 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 278 | 288 | ||
Allowance | 0 | 0 | ||
Tax advantaged economic development bonds | ||||
Securities held to maturity | ||||
Amortized Cost | 1,442 | 1,540 | ||
Gross Unrealized Gains | 0 | 6 | ||
Gross Unrealized Losses | (22) | (60) | ||
Fair Value | 1,420 | 1,486 | ||
Allowance | $ 20 | $ 20 | $ 22 | $ 25 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES - Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total | ||
Beginning balance | $ 68 | $ 91 |
(Benefit)/provision for credit losses | (7) | (20) |
Ending balance | 61 | 71 |
Municipal bonds and obligations | ||
Total | ||
Beginning balance | 48 | 66 |
(Benefit)/provision for credit losses | (7) | (17) |
Ending balance | 41 | 49 |
Tax advantaged economic development bonds | ||
Total | ||
Beginning balance | 20 | 25 |
(Benefit)/provision for credit losses | 0 | (3) |
Ending balance | $ 20 | $ 22 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES - Schedule of Amortized Cost and Estimated Fair Value of Available for Sale (AFS) and Held to Maturity (HTM) Securities, Segregated by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 7,960 | |
Over 1 year to 5 years | 16,547 | |
Over 5 years to 10 years | 51,166 | |
Over 10 years | 35,967 | |
Total bonds and obligations | 111,640 | |
Mortgage-backed securities | 658,856 | |
Amortized Cost | 770,496 | $ 1,211,212 |
Available for sale, Fair Value | ||
Within 1 year | 7,956 | |
Over 1 year to 5 years | 16,357 | |
Over 5 years to 10 years | 47,122 | |
Over 10 years | 34,211 | |
Total bonds and obligations | 105,646 | |
Mortgage-backed securities | 520,211 | |
Fair Value | 625,857 | 1,022,285 |
Held to maturity, Amortized Cost | ||
Within 1 year | 410 | |
Over 1 year to 5 years | 1,743 | |
Over 5 years to 10 years | 37,444 | |
Over 10 years | 206,223 | |
Total bonds and obligations | 245,820 | |
Mortgage-backed securities | 286,000 | |
Amortized Cost | 531,820 | 543,351 |
Held to maturity, Fair Value | ||
Within 1 year | 410 | |
Over 1 year to 5 years | 1,720 | |
Over 5 years to 10 years | 37,281 | |
Over 10 years | 186,830 | |
Total bonds and obligations | 226,241 | |
Mortgage-backed securities | 233,385 | |
Fair Value | $ 459,626 | $ 476,228 |
SECURITIES AVAILABLE FOR SALE_6
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) security | Mar. 31, 2023 USD ($) | |
Investment Holdings [Line Items] | ||
Purchases of securities available for sale | $ | $ 7,798,000 | $ 28,899,000 |
Proceeds from sale of available-for-sale securities | $ | 361,871,000 | $ 0 |
Debt securities, available-for-sale, realized gain | $ | 5,100,000 | |
Debt securities, available-for-sale, realized loss | $ | $ 54,900,000 | |
U.S Treasuries | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 1 | |
Number of securities | 1 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 0.10% | |
Municipal bonds and obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 63 | |
Number of securities | 91 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 4.20% | |
Held-to-maturity, securities in unrealized loss positions | 123 | |
Number of securities in the portfolio of HTM | 168 | |
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 10.60% | |
Agency collateralized mortgage obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 37 | |
Number of securities | 38 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 23.60% | |
Held-to-maturity, securities in unrealized loss positions | 12 | |
Number of securities in the portfolio of HTM | 12 | |
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 17.10% | |
Agency commercial mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 28 | |
Number of securities | 28 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 19.10% | |
Held-to-maturity, securities in unrealized loss positions | 17 | |
Number of securities in the portfolio of HTM | 17 | |
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 19.20% | |
Corporate bonds | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 13 | |
Number of securities | 14 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 11.10% | |
Other bonds and obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 2 | |
Number of securities | 3 | |
Debt securities, continuous unrealized loss position, qualitative disclosure, aggregate losses percentage | 18.30% | |
Tax advantaged economic development bonds | ||
Investment Holdings [Line Items] | ||
Held-to-maturity, securities in unrealized loss positions | 2 | |
Number of securities in the portfolio of HTM | 2 | |
Aggregate unrealized losses as a percentage of the amortized cost of the securities in unrealized loss positions | 9.10% |
SECURITIES AVAILABLE FOR SALE_7
SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND EQUITY SECURITIES - Schedule of Securities with Unrealized Losses, Segregated by the Duration of their Continuous Unrealized Loss Positions (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | $ 195 | $ 534 |
Less Than Twelve Months, Fair Value | 30,582 | 15,891 |
Over Twelve Months, Gross Unrealized Losses | 144,815 | 188,991 |
Over Twelve Months, Fair Value | 579,378 | 965,075 |
Total Gross Unrealized Losses | 145,010 | 189,525 |
Total Fair Value | 609,960 | 980,966 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 431 | 230 |
Less Than Twelve Months, Fair Value | 59,073 | 28,916 |
Over Twelve Months, Gross Unrealized Losses | 72,025 | 67,597 |
Over Twelve Months, Fair Value | 343,825 | 332,661 |
Total Gross Unrealized Losses | 72,456 | 67,827 |
Total Fair Value | 402,898 | 361,577 |
Securities available for sale and held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 626 | 764 |
Less Than Twelve Months, Fair Value | 89,655 | 44,807 |
Over Twelve Months, Gross Unrealized Losses | 216,840 | 256,588 |
Over Twelve Months, Fair Value | 923,203 | 1,297,736 |
Total Gross Unrealized Losses | 217,466 | 257,352 |
Total Fair Value | 1,012,858 | 1,342,543 |
U.S Treasuries | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 4 | |
Less Than Twelve Months, Fair Value | 7,876 | |
Over Twelve Months, Gross Unrealized Losses | 0 | |
Over Twelve Months, Fair Value | 0 | |
Total Gross Unrealized Losses | 4 | |
Total Fair Value | 7,876 | |
Municipal bonds and obligations | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 191 | 76 |
Less Than Twelve Months, Fair Value | 22,706 | 9,326 |
Over Twelve Months, Gross Unrealized Losses | 1,911 | 1,353 |
Over Twelve Months, Fair Value | 25,139 | 22,739 |
Total Gross Unrealized Losses | 2,102 | 1,429 |
Total Fair Value | 47,845 | 32,065 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 420 | 229 |
Less Than Twelve Months, Fair Value | 58,566 | 28,895 |
Over Twelve Months, Gross Unrealized Losses | 19,399 | 16,758 |
Over Twelve Months, Fair Value | 109,527 | 92,063 |
Total Gross Unrealized Losses | 19,819 | 16,987 |
Total Fair Value | 168,093 | 120,958 |
Agency collateralized mortgage obligations | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Over Twelve Months, Gross Unrealized Losses | 66,747 | 79,112 |
Over Twelve Months, Fair Value | 215,713 | 347,874 |
Total Gross Unrealized Losses | 66,747 | 79,112 |
Total Fair Value | 215,713 | 347,874 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 1 | 1 |
Less Than Twelve Months, Fair Value | 20 | 21 |
Over Twelve Months, Gross Unrealized Losses | 18,808 | 18,359 |
Over Twelve Months, Fair Value | 90,996 | 94,548 |
Total Gross Unrealized Losses | 18,809 | 18,360 |
Total Fair Value | 91,016 | 94,569 |
Agency mortgage-backed securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 1 |
Less Than Twelve Months, Fair Value | 0 | 22 |
Over Twelve Months, Gross Unrealized Losses | 53,454 | 75,154 |
Over Twelve Months, Fair Value | 234,640 | 417,151 |
Total Gross Unrealized Losses | 53,454 | 75,155 |
Total Fair Value | 234,640 | 417,173 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Over Twelve Months, Gross Unrealized Losses | 8,543 | 8,052 |
Over Twelve Months, Fair Value | 38,012 | 39,327 |
Total Gross Unrealized Losses | 8,543 | 8,052 |
Total Fair Value | 38,012 | 39,327 |
Agency commercial mortgage-backed securities | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Over Twelve Months, Gross Unrealized Losses | 18,444 | 29,553 |
Over Twelve Months, Fair Value | 69,858 | 145,326 |
Total Gross Unrealized Losses | 18,444 | 29,553 |
Total Fair Value | 69,858 | 145,326 |
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Over Twelve Months, Gross Unrealized Losses | 25,263 | 24,368 |
Over Twelve Months, Fair Value | 104,357 | 105,801 |
Total Gross Unrealized Losses | 25,263 | 24,368 |
Total Fair Value | 104,357 | 105,801 |
Corporate bonds | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 457 |
Less Than Twelve Months, Fair Value | 0 | 6,543 |
Over Twelve Months, Gross Unrealized Losses | 4,193 | 3,753 |
Over Twelve Months, Fair Value | 33,733 | 31,690 |
Total Gross Unrealized Losses | 4,193 | 4,210 |
Total Fair Value | 33,733 | 38,233 |
Other bonds and obligations | ||
Securities available for sale | ||
Less Than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Less Than Twelve Months, Fair Value | 0 | 0 |
Over Twelve Months, Gross Unrealized Losses | 66 | 66 |
Over Twelve Months, Fair Value | 295 | 295 |
Total Gross Unrealized Losses | 66 | 66 |
Total Fair Value | 295 | 295 |
Securities held to maturity | ||
Total Gross Unrealized Losses | 0 | 0 |
Tax advantaged economic development bonds | ||
Securities held to maturity | ||
Less Than Twelve Months, Gross Unrealized Losses | 10 | 0 |
Less Than Twelve Months, Fair Value | 487 | 0 |
Over Twelve Months, Gross Unrealized Losses | 12 | 60 |
Over Twelve Months, Fair Value | 933 | 922 |
Total Gross Unrealized Losses | 22 | 60 |
Total Fair Value | $ 1,420 | $ 922 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Total Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 9,085,753 | $ 9,039,686 | ||
Allowance for credit losses | (107,331) | (105,357) | $ (97,991) | $ (96,270) |
Net loans | 8,978,422 | 8,934,329 | ||
Construction and commercial multifamily | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 637,372 | 640,371 | ||
Allowance for credit losses | (2,580) | (2,885) | (1,536) | (1,227) |
Construction and commercial multifamily | Commercial multifamily | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 617,854 | 599,145 | ||
Allowance for credit losses | (2,649) | (2,475) | (1,698) | (1,810) |
Commercial real estate | Commercial real estate owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 655,839 | 628,646 | ||
Allowance for credit losses | (9,898) | (9,443) | (10,278) | (10,739) |
Commercial real estate | Commercial real estate non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,637,446 | 2,606,409 | ||
Allowance for credit losses | (34,255) | (38,221) | (33,408) | (30,724) |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,384,837 | 1,359,249 | ||
Allowance for credit losses | (20,016) | (18,602) | (20,164) | (18,743) |
Residential real estate | Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 2,752,370 | 2,760,312 | ||
Allowance for credit losses | (22,411) | (19,622) | (17,590) | (18,666) |
Consumer loans | Home equity | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 206,592 | 224,223 | ||
Allowance for credit losses | (1,992) | (2,015) | (2,320) | (2,173) |
Consumer loans | Consumer other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 193,443 | 221,331 | ||
Allowance for credit losses | $ (13,530) | $ (12,094) | $ (10,997) | $ (12,188) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) reversion_period | Dec. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Valuation period | reversion_period | 7 | |
Forecasting revision period | 1 year | |
Total loans | $ 9,085,753 | $ 9,039,686 |
Consumer | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 193,443 | 221,331 |
Consumer | Consumer other | Held For Sale | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 38,500 | |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Financing receivable, nonaccrual, medallion loans, fair value | 400 | 400 |
Financing receivable, nonaccrual, medallion loans, contractual balance | 8,300 | 8,800 |
Total loans | 1,384,837 | 1,359,249 |
Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,752,370 | $ 2,760,312 |
Residential real estate | Residential real estate | Held For Sale | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 20,000 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | $ 105,357 | $ 96,270 | $ 96,270 |
Charge-offs | (5,636) | (7,937) | |
Recoveries | 1,603 | 1,040 | |
Provision/(Benefit) for Credit Losses | 6,007 | 9,019 | |
Balance at End of Period | 107,331 | 97,991 | 105,357 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | (401) | (401) | |
Construction and commercial multifamily | Construction | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 2,885 | 1,227 | 1,227 |
Charge-offs | 0 | 0 | (1) |
Recoveries | 0 | 0 | |
Provision/(Benefit) for Credit Losses | (305) | 309 | |
Balance at End of Period | 2,580 | 1,536 | 2,885 |
Construction and commercial multifamily | Construction | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 0 | 0 | |
Construction and commercial multifamily | Commercial multifamily | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 2,475 | 1,810 | 1,810 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 6 | |
Provision/(Benefit) for Credit Losses | 174 | (118) | |
Balance at End of Period | 2,649 | 1,698 | 2,475 |
Construction and commercial multifamily | Commercial multifamily | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 0 | 0 | |
Commercial real estate | Commercial real estate owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 9,443 | 10,739 | 10,739 |
Charge-offs | (107) | (70) | (489) |
Recoveries | 14 | 45 | |
Provision/(Benefit) for Credit Losses | 548 | (460) | |
Balance at End of Period | 9,898 | 10,278 | 9,443 |
Commercial real estate | Commercial real estate owner occupied | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 24 | 24 | |
Commercial real estate | Commercial real estate non-owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 38,221 | 30,724 | 30,724 |
Charge-offs | 0 | 0 | (65) |
Recoveries | 81 | 95 | |
Provision/(Benefit) for Credit Losses | (4,047) | 2,589 | |
Balance at End of Period | 34,255 | 33,408 | 38,221 |
Commercial real estate | Commercial real estate non-owner occupied | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 18,602 | 18,743 | 18,743 |
Charge-offs | (2,442) | (6,033) | (17,872) |
Recoveries | 657 | 305 | |
Provision/(Benefit) for Credit Losses | 3,199 | 7,172 | |
Balance at End of Period | 20,016 | 20,164 | 18,602 |
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | (23) | (23) | |
Residential real estate | Residential real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 19,622 | 18,666 | 18,666 |
Charge-offs | (41) | (31) | (313) |
Recoveries | 186 | 387 | |
Provision/(Benefit) for Credit Losses | 2,644 | (1,434) | |
Balance at End of Period | 22,411 | 17,590 | 19,622 |
Residential real estate | Residential real estate | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 2 | 2 | |
Consumer loans | Home equity | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 2,015 | 2,173 | 2,173 |
Charge-offs | 0 | (10) | (88) |
Recoveries | 239 | 26 | |
Provision/(Benefit) for Credit Losses | (262) | 131 | |
Balance at End of Period | 1,992 | 2,320 | 2,015 |
Consumer loans | Home equity | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 0 | 0 | |
Consumer loans | Consumer other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | 12,094 | 12,188 | 12,188 |
Charge-offs | (3,046) | (1,793) | (10,429) |
Recoveries | 426 | 176 | |
Provision/(Benefit) for Credit Losses | 4,056 | 830 | |
Balance at End of Period | $ 13,530 | 10,997 | 12,094 |
Consumer loans | Consumer other | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Period | $ (404) | $ (404) |
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, 2024 | Mar. 31, 2023 | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||
Balance at beginning of period | $ 9,256 | $ 8,588 |
Expense for credit losses | 0 | 99 |
Balance at end of period | $ 9,256 | $ 8,687 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Risk by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Current period gross write-offs | |||
Total | $ 5,636 | $ 7,937 | |
Payment performance | |||
Total loans | 9,085,753 | $ 9,039,686 | |
Special Mention | Performing | |||
Payment performance | |||
Total loans | 99,037 | 91,502 | |
Substandard | Performing | |||
Payment performance | |||
Total loans | 126,806 | 131,689 | |
Construction and commercial multifamily | Construction | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 0 | 0 | |
Write-offs, originated two years before current year | 0 | 0 | |
Write-offs, originated three years before current year | 0 | 0 | |
Write-offs, originated four years before current year | 0 | 0 | |
Write-offs, originated five years before current year | 0 | 1 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 0 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | 1 |
Payment performance | |||
Loans originated in current fiscal year | 8,985 | 104,507 | |
Loans originated in fiscal year before current fiscal year | 114,473 | 346,419 | |
Loans originated two years before current fiscal year | 379,821 | 156,626 | |
Loans originated three years before current fiscal year | 118,791 | 29,176 | |
Loans originated four years before current fiscal year | 12,866 | 2,545 | |
Loans originated more than five years before current fiscal year | 2,436 | 1,098 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 637,372 | 640,371 | |
Construction and commercial multifamily | Commercial multifamily | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 0 | 0 | |
Write-offs, originated two years before current year | 0 | 0 | |
Write-offs, originated three years before current year | 0 | 0 | |
Write-offs, originated four years before current year | 0 | 0 | |
Write-offs, originated five years before current year | 0 | 0 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 0 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | 0 |
Payment performance | |||
Loans originated in current fiscal year | 30,725 | 16,020 | |
Loans originated in fiscal year before current fiscal year | 16,484 | 216,477 | |
Loans originated two years before current fiscal year | 217,796 | 57,059 | |
Loans originated three years before current fiscal year | 56,550 | 29,120 | |
Loans originated four years before current fiscal year | 28,947 | 94,733 | |
Loans originated more than five years before current fiscal year | 266,952 | 185,359 | |
Revolving Loans Amortized Cost Basis | 400 | 377 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 617,854 | 599,145 | |
Construction and commercial multifamily | Pass | Construction | |||
Payment performance | |||
Loans originated in current fiscal year | 8,985 | 104,507 | |
Loans originated in fiscal year before current fiscal year | 114,473 | 346,419 | |
Loans originated two years before current fiscal year | 379,821 | 138,802 | |
Loans originated three years before current fiscal year | 100,836 | 29,176 | |
Loans originated four years before current fiscal year | 12,866 | 2,545 | |
Loans originated more than five years before current fiscal year | 2,436 | 1,098 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 619,417 | 622,547 | |
Construction and commercial multifamily | Pass | Commercial multifamily | |||
Payment performance | |||
Loans originated in current fiscal year | 30,725 | 16,020 | |
Loans originated in fiscal year before current fiscal year | 16,484 | 216,477 | |
Loans originated two years before current fiscal year | 217,796 | 56,817 | |
Loans originated three years before current fiscal year | 56,310 | 26,566 | |
Loans originated four years before current fiscal year | 26,412 | 94,733 | |
Loans originated more than five years before current fiscal year | 261,531 | 179,923 | |
Revolving Loans Amortized Cost Basis | 400 | 377 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 609,658 | 590,913 | |
Construction and commercial multifamily | Special Mention | Construction | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 512 | |
Loans originated three years before current fiscal year | 551 | 0 | |
Loans originated four years before current fiscal year | 0 | 0 | |
Loans originated more than five years before current fiscal year | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 551 | 512 | |
Construction and commercial multifamily | Special Mention | Commercial multifamily | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 0 | |
Loans originated three years before current fiscal year | 0 | 0 | |
Loans originated four years before current fiscal year | 0 | 0 | |
Loans originated more than five years before current fiscal year | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 0 | 0 | |
Construction and commercial multifamily | Substandard | Construction | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 17,312 | |
Loans originated three years before current fiscal year | 17,404 | 0 | |
Loans originated four years before current fiscal year | 0 | 0 | |
Loans originated more than five years before current fiscal year | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 17,404 | 17,312 | |
Construction and commercial multifamily | Substandard | Commercial multifamily | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 242 | |
Loans originated three years before current fiscal year | 240 | 2,554 | |
Loans originated four years before current fiscal year | 2,535 | 0 | |
Loans originated more than five years before current fiscal year | 5,421 | 5,436 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 8,196 | 8,232 | |
Commercial real estate | Commercial real estate owner occupied | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 0 | 0 | |
Write-offs, originated two years before current year | 0 | 0 | |
Write-offs, originated three years before current year | 40 | 380 | |
Write-offs, originated four years before current year | 0 | 0 | |
Write-offs, originated five years before current year | 67 | 109 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 0 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 107 | 70 | 489 |
Payment performance | |||
Loans originated in current fiscal year | 27,890 | 97,271 | |
Loans originated in fiscal year before current fiscal year | 102,110 | 120,327 | |
Loans originated two years before current fiscal year | 128,169 | 122,656 | |
Loans originated three years before current fiscal year | 110,232 | 38,183 | |
Loans originated four years before current fiscal year | 47,260 | 75,096 | |
Loans originated more than five years before current fiscal year | 237,674 | 172,460 | |
Revolving Loans Amortized Cost Basis | 2,504 | 2,653 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 655,839 | 628,646 | |
Commercial real estate | Commercial real estate non-owner occupied | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 0 | 0 | |
Write-offs, originated two years before current year | 0 | 0 | |
Write-offs, originated three years before current year | 0 | 0 | |
Write-offs, originated four years before current year | 0 | 0 | |
Write-offs, originated five years before current year | 0 | 65 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 0 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 0 | 65 |
Payment performance | |||
Loans originated in current fiscal year | 25,826 | 404,687 | |
Loans originated in fiscal year before current fiscal year | 403,246 | 591,897 | |
Loans originated two years before current fiscal year | 593,499 | 385,247 | |
Loans originated three years before current fiscal year | 411,729 | 142,177 | |
Loans originated four years before current fiscal year | 146,541 | 310,818 | |
Loans originated more than five years before current fiscal year | 1,049,789 | 767,030 | |
Revolving Loans Amortized Cost Basis | 6,816 | 4,553 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 2,637,446 | 2,606,409 | |
Commercial real estate | Pass | Commercial real estate owner occupied | |||
Payment performance | |||
Loans originated in current fiscal year | 27,890 | 97,271 | |
Loans originated in fiscal year before current fiscal year | 102,110 | 120,327 | |
Loans originated two years before current fiscal year | 128,047 | 122,151 | |
Loans originated three years before current fiscal year | 109,767 | 37,914 | |
Loans originated four years before current fiscal year | 46,991 | 70,393 | |
Loans originated more than five years before current fiscal year | 225,876 | 165,224 | |
Revolving Loans Amortized Cost Basis | 2,504 | 2,653 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 643,185 | 615,933 | |
Commercial real estate | Pass | Commercial real estate non-owner occupied | |||
Payment performance | |||
Loans originated in current fiscal year | 25,826 | 404,687 | |
Loans originated in fiscal year before current fiscal year | 403,246 | 591,897 | |
Loans originated two years before current fiscal year | 593,124 | 385,247 | |
Loans originated three years before current fiscal year | 408,882 | 135,134 | |
Loans originated four years before current fiscal year | 139,590 | 277,870 | |
Loans originated more than five years before current fiscal year | 982,448 | 736,566 | |
Revolving Loans Amortized Cost Basis | 4,560 | 4,553 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 2,557,676 | 2,535,954 | |
Commercial real estate | Special Mention | Commercial real estate owner occupied | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 122 | 424 | |
Loans originated three years before current fiscal year | 103 | 222 | |
Loans originated four years before current fiscal year | 222 | 0 | |
Loans originated more than five years before current fiscal year | 4,315 | 788 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 4,762 | 1,434 | |
Commercial real estate | Special Mention | Commercial real estate non-owner occupied | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 375 | 0 | |
Loans originated three years before current fiscal year | 2,847 | 229 | |
Loans originated four years before current fiscal year | 227 | 19,465 | |
Loans originated more than five years before current fiscal year | 26,423 | 726 | |
Revolving Loans Amortized Cost Basis | 2,256 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 32,128 | 20,420 | |
Commercial real estate | Substandard | Commercial real estate owner occupied | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 81 | |
Loans originated three years before current fiscal year | 362 | 47 | |
Loans originated four years before current fiscal year | 47 | 4,703 | |
Loans originated more than five years before current fiscal year | 7,483 | 6,448 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 7,892 | 11,279 | |
Commercial real estate | Substandard | Commercial real estate non-owner occupied | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 0 | |
Loans originated three years before current fiscal year | 0 | 6,814 | |
Loans originated four years before current fiscal year | 6,724 | 13,483 | |
Loans originated more than five years before current fiscal year | 40,918 | 29,738 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 47,642 | 50,035 | |
Commercial and industrial | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 19 | 1,154 | |
Write-offs, originated two years before current year | 645 | 863 | |
Write-offs, originated three years before current year | 467 | 2,763 | |
Write-offs, originated four years before current year | 57 | 1,496 | |
Write-offs, originated five years before current year | 1,254 | 9,283 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 2,313 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 2,442 | 6,033 | 17,872 |
Payment performance | |||
Loans originated in current fiscal year | 65,753 | 143,904 | |
Loans originated in fiscal year before current fiscal year | 132,251 | 227,036 | |
Loans originated two years before current fiscal year | 205,357 | 133,628 | |
Loans originated three years before current fiscal year | 125,580 | 72,478 | |
Loans originated four years before current fiscal year | 68,340 | 43,832 | |
Loans originated more than five years before current fiscal year | 155,890 | 126,661 | |
Revolving Loans Amortized Cost Basis | 631,666 | 611,710 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 1,384,837 | 1,359,249 | |
Commercial and industrial | Pass | |||
Payment performance | |||
Loans originated in current fiscal year | 65,753 | 142,946 | |
Loans originated in fiscal year before current fiscal year | 131,330 | 203,126 | |
Loans originated two years before current fiscal year | 180,901 | 118,191 | |
Loans originated three years before current fiscal year | 111,392 | 69,722 | |
Loans originated four years before current fiscal year | 65,827 | 39,437 | |
Loans originated more than five years before current fiscal year | 139,489 | 112,770 | |
Revolving Loans Amortized Cost Basis | 577,352 | 554,153 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 1,272,044 | 1,240,345 | |
Commercial and industrial | Special Mention | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 526 | |
Loans originated in fiscal year before current fiscal year | 517 | 23,149 | |
Loans originated two years before current fiscal year | 23,600 | 3,735 | |
Loans originated three years before current fiscal year | 2,781 | 1,621 | |
Loans originated four years before current fiscal year | 1,608 | 610 | |
Loans originated more than five years before current fiscal year | 2,258 | 1,353 | |
Revolving Loans Amortized Cost Basis | 27,992 | 35,244 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 58,756 | 66,238 | |
Commercial and industrial | Substandard | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 432 | |
Loans originated in fiscal year before current fiscal year | 404 | 761 | |
Loans originated two years before current fiscal year | 856 | 11,702 | |
Loans originated three years before current fiscal year | 11,407 | 1,135 | |
Loans originated four years before current fiscal year | 905 | 3,785 | |
Loans originated more than five years before current fiscal year | 14,143 | 12,538 | |
Revolving Loans Amortized Cost Basis | 26,322 | 22,313 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 54,037 | 52,666 | |
Residential real estate | Residential real estate | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 0 | 50 | |
Write-offs, originated two years before current year | 0 | 0 | |
Write-offs, originated three years before current year | 0 | 50 | |
Write-offs, originated four years before current year | 0 | 174 | |
Write-offs, originated five years before current year | 41 | 39 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 0 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 41 | 31 | 313 |
Payment performance | |||
Loans originated in current fiscal year | 54,163 | 599,124 | |
Loans originated in fiscal year before current fiscal year | 593,394 | 973,160 | |
Loans originated two years before current fiscal year | 958,232 | 267,231 | |
Loans originated three years before current fiscal year | 259,777 | 88,681 | |
Loans originated four years before current fiscal year | 86,134 | 67,551 | |
Loans originated more than five years before current fiscal year | 800,606 | 764,484 | |
Revolving Loans Amortized Cost Basis | 64 | 81 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 2,752,370 | 2,760,312 | |
Residential real estate | Pass | Residential real estate | |||
Payment performance | |||
Loans originated in current fiscal year | 54,163 | 599,124 | |
Loans originated in fiscal year before current fiscal year | 593,394 | 973,031 | |
Loans originated two years before current fiscal year | 958,105 | 266,055 | |
Loans originated three years before current fiscal year | 258,870 | 88,302 | |
Loans originated four years before current fiscal year | 85,758 | 66,837 | |
Loans originated more than five years before current fiscal year | 790,298 | 755,372 | |
Revolving Loans Amortized Cost Basis | 64 | 81 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 2,740,652 | 2,748,802 | |
Residential real estate | Special Mention | Residential real estate | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 0 | |
Loans originated three years before current fiscal year | 0 | 0 | |
Loans originated four years before current fiscal year | 0 | 140 | |
Loans originated more than five years before current fiscal year | 1,582 | 664 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 1,582 | 804 | |
Residential real estate | Substandard | Residential real estate | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 129 | |
Loans originated two years before current fiscal year | 127 | 1,176 | |
Loans originated three years before current fiscal year | 907 | 379 | |
Loans originated four years before current fiscal year | 376 | 574 | |
Loans originated more than five years before current fiscal year | 8,726 | 8,448 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 10,136 | 10,706 | |
Consumer | Home equity | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 0 | |
Write-offs, originated in prior year | 0 | 0 | |
Write-offs, originated two years before current year | 0 | 0 | |
Write-offs, originated three years before current year | 0 | 70 | |
Write-offs, originated four years before current year | 0 | 0 | |
Write-offs, originated five years before current year | 0 | 0 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 18 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 0 | 10 | 88 |
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 0 | |
Loans originated three years before current fiscal year | 0 | 439 | |
Loans originated four years before current fiscal year | 435 | 0 | |
Loans originated more than five years before current fiscal year | 2,458 | 2,614 | |
Revolving Loans Amortized Cost Basis | 203,699 | 221,170 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 206,592 | 224,223 | |
Consumer | Home equity | Performing | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 0 | |
Loans originated three years before current fiscal year | 0 | 439 | |
Loans originated four years before current fiscal year | 435 | 0 | |
Loans originated more than five years before current fiscal year | 2,458 | 2,614 | |
Revolving Loans Amortized Cost Basis | 202,837 | 220,209 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 205,730 | 223,262 | |
Consumer | Home equity | Nonperforming | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 0 | |
Loans originated in fiscal year before current fiscal year | 0 | 0 | |
Loans originated two years before current fiscal year | 0 | 0 | |
Loans originated three years before current fiscal year | 0 | 0 | |
Loans originated four years before current fiscal year | 0 | 0 | |
Loans originated more than five years before current fiscal year | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 862 | 961 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 862 | 961 | |
Consumer | Consumer other | |||
Current period gross write-offs | |||
Write-offs, originated in current year | 0 | 109 | |
Write-offs, originated in prior year | 64 | 8,843 | |
Write-offs, originated two years before current year | 2,543 | 1,149 | |
Write-offs, originated three years before current year | 387 | 11 | |
Write-offs, originated four years before current year | 0 | 78 | |
Write-offs, originated five years before current year | 52 | 239 | |
Write-offs, Revolving Loans Amortized Cost Basis | 0 | 0 | |
Write-offs, Revolving Loans Converted to Term | 0 | 0 | |
Total | 3,046 | $ 1,793 | 10,429 |
Payment performance | |||
Loans originated in current fiscal year | 7,471 | 49,665 | |
Loans originated in fiscal year before current fiscal year | 41,973 | 108,388 | |
Loans originated two years before current fiscal year | 94,245 | 19,726 | |
Loans originated three years before current fiscal year | 16,659 | 5,869 | |
Loans originated four years before current fiscal year | 4,970 | 7,164 | |
Loans originated more than five years before current fiscal year | 18,094 | 19,871 | |
Revolving Loans Amortized Cost Basis | 10,031 | 10,648 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 193,443 | 221,331 | |
Consumer | Consumer other | Performing | |||
Payment performance | |||
Loans originated in current fiscal year | 7,471 | 49,588 | |
Loans originated in fiscal year before current fiscal year | 41,972 | 108,284 | |
Loans originated two years before current fiscal year | 94,137 | 19,679 | |
Loans originated three years before current fiscal year | 16,632 | 5,843 | |
Loans originated four years before current fiscal year | 4,966 | 7,054 | |
Loans originated more than five years before current fiscal year | 17,766 | 19,587 | |
Revolving Loans Amortized Cost Basis | 10,023 | 10,614 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | 192,967 | 220,649 | |
Consumer | Consumer other | Nonperforming | |||
Payment performance | |||
Loans originated in current fiscal year | 0 | 77 | |
Loans originated in fiscal year before current fiscal year | 1 | 104 | |
Loans originated two years before current fiscal year | 108 | 47 | |
Loans originated three years before current fiscal year | 27 | 26 | |
Loans originated four years before current fiscal year | 4 | 110 | |
Loans originated more than five years before current fiscal year | 328 | 284 | |
Revolving Loans Amortized Cost Basis | 8 | 34 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total loans | $ 476 | $ 682 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 9,085,753 | $ 9,039,686 |
Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 637,372 | 640,371 |
Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 617,854 | 599,145 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 655,839 | 628,646 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,637,446 | 2,606,409 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,384,837 | 1,359,249 |
Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,752,370 | 2,760,312 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 206,592 | 224,223 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 193,443 | 221,331 |
Total Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 55,019 | 49,085 |
Total Past Due | Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Total Past Due | Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 5,952 | 5,623 |
Total Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,316 | 1,671 |
Total Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 9,429 | 4,188 |
Total Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 10,129 | 12,207 |
Total Past Due | Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 20,648 | 17,299 |
Total Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,254 | 2,486 |
Total Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 4,291 | 5,611 |
30-59 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 18,558 | 17,644 |
30-59 Days Past Due | Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
30-59 Days Past Due | Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 531 | 5,436 |
30-59 Days Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 347 | 581 |
30-59 Days Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 5,732 | 139 |
30-59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 709 | 2,749 |
30-59 Days Past Due | Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 8,929 | 5,669 |
30-59 Days Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 679 | 707 |
30-59 Days Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,631 | 2,363 |
60-89 Days Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 9,125 | 4,496 |
60-89 Days Past Due | Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
60-89 Days Past Due | Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 5,421 | 187 |
60-89 Days Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 701 | 286 |
60-89 Days Past Due | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 251 |
60-89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 149 | 689 |
60-89 Days Past Due | Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,582 | 943 |
60-89 Days Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 111 | 498 |
60-89 Days Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,161 | 1,642 |
90 Days or Greater Past Due | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 27,336 | 26,945 |
90 Days or Greater Past Due | Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
90 Days or Greater Past Due | Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
90 Days or Greater Past Due | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,268 | 804 |
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 | 3,697 | 3,798 |
90 Days or Greater Past Due | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 9,271 | 8,769 |
90 Days or Greater Past Due | Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 10,137 | 10,687 |
90 Days or Greater Past Due | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,464 | 1,281 |
90 Days or Greater Past Due | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,499 | 1,606 |
Current | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 9,030,734 | 8,990,601 |
Current | Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 637,372 | 640,371 |
Current | Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 611,902 | 593,522 |
Current | Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 653,523 | 626,975 |
Current | Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,628,017 | 2,602,221 |
Current | Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,374,708 | 1,347,042 |
Current | Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,731,722 | 2,743,013 |
Current | Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 204,338 | 221,737 |
Current | Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 189,152 | $ 215,720 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Nonaccrual Loans and Loans Past Due (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | $ 21,455 | $ 21,407 |
Nonaccrual With No Related Allowance | 9,059 | 8,834 |
Past Due 90 Days or Greater and Accruing | 5,881 | 5,538 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Construction and commercial multifamily | 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 |
Construction and commercial multifamily | Commercial multifamily | ||
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 real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 1,268 | 605 |
Nonaccrual With No Related Allowance | 571 | 285 |
Past Due 90 Days or Greater and Accruing | 0 | 199 |
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 | 3,697 | 3,798 |
Nonaccrual With No Related Allowance | 38 | 45 |
Past Due 90 Days or Greater and Accruing | 0 | 0 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 8,971 | 8,665 |
Nonaccrual With No Related Allowance | 5,613 | 5,586 |
Past Due 90 Days or Greater and Accruing | 300 | 104 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 6,182 | 6,696 |
Nonaccrual With No Related Allowance | 2,723 | 2,796 |
Past Due 90 Days or Greater and Accruing | 3,955 | 3,991 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 862 | 961 |
Nonaccrual With No Related Allowance | 114 | 122 |
Past Due 90 Days or Greater and Accruing | 602 | 320 |
Interest Income Recognized on Nonaccrual | 0 | 0 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Nonaccrual Amortized Cost | 475 | 682 |
Nonaccrual With No Related Allowance | 0 | 0 |
Past Due 90 Days or Greater and Accruing | 1,024 | 924 |
Interest Income Recognized on Nonaccrual | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Total Loans Rated Special Mention or Lower (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 9,085,753 | $ 9,039,686 |
Total Criticized | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 247,298 | 244,598 |
Total Classified | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 148,261 | 153,096 |
Non-Accrual | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 21,455 | 21,407 |
Substandard Accruing | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 126,806 | 131,689 |
Special Mention | Performing | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 99,037 | $ 91,502 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 21,455 | $ 21,407 |
Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 7,881 | 10,990 |
Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,072 | 944 |
Construction and commercial multifamily | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Construction | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Construction | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Construction | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,268 | 605 |
Commercial real estate | Commercial real estate owner occupied | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 592 | 650 |
Commercial real estate | Commercial real estate owner occupied | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 3,697 | 3,798 |
Commercial real estate | Commercial real estate non-owner occupied | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 331 | 342 |
Commercial real estate | Commercial real estate non-owner occupied | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 8,971 | 8,665 |
Commercial and industrial | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 4,539 | 4,788 |
Commercial and industrial | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Commercial and industrial | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 1,072 | 944 |
Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 6,182 | 6,696 |
Residential real estate | Residential real estate | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 2,305 | 5,035 |
Residential real estate | Residential real estate | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | Residential real estate | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 862 | 961 |
Consumer loans | Home equity | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 114 | 135 |
Consumer loans | Home equity | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Home equity | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 475 | 682 |
Consumer loans | Consumer other | Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 40 |
Consumer loans | Consumer other | Investment Securities/Cash | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | 0 | 0 |
Consumer loans | Consumer other | Other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Total loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Amortized Cost Basis of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 108 | 387 |
Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 474 | 0 |
Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 297 | 0 |
Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 10 |
Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0.01% | 0% |
Construction and commercial multifamily | Construction | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Construction and commercial multifamily | Construction | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Construction | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Construction | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Construction | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Construction | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Construction and commercial multifamily | Commercial multifamily | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Construction and commercial multifamily | Commercial multifamily | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Construction and commercial multifamily | Commercial multifamily | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Commercial real estate | Commercial real estate owner occupied | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Commercial real estate | Commercial real estate owner occupied | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 387 |
Commercial real estate | Commercial real estate owner occupied | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate owner occupied | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0.06% |
Commercial real estate | Commercial real estate non-owner occupied | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Commercial real estate | Commercial real estate non-owner occupied | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Commercial and industrial | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Commercial and industrial | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 108 | 0 |
Commercial and industrial | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 474 | 0 |
Commercial and industrial | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 297 | 0 |
Commercial and industrial | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 10 |
Commercial and industrial | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0.06% | 0% |
Residential real estate | Residential real estate | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Residential real estate | Residential real estate | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Residential real estate | Residential real estate | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Residential real estate | Residential real estate | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Residential real estate | Residential real estate | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Residential real estate | Residential real estate | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Consumer loans | Home equity | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Consumer loans | Home equity | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Home equity | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Home equity | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Home equity | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Home equity | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
Consumer loans | Consumer other | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Consumer loans | Consumer other | Payment Delay | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Consumer other | Term Extension | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Consumer other | Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Consumer other | Combination Term Extension and Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | 0 | 0 |
Consumer loans | Consumer other | Combination Term Extension and Interest Rate Reduction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Amortized cost basis | $ 0 | $ 0 |
Total Class of Financing Receivable | 0% | 0% |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commercial loans | Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Commercial loans | Construction | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Commercial loans | Commercial multifamily | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Commercial loans | Commercial multifamily | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Commercial real estate | Commercial real estate owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Commercial real estate | Commercial real estate owner occupied | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Commercial real estate | Commercial real estate non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Commercial real estate | Commercial real estate non-owner occupied | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 10.75% | 1.25% |
Weighted Average Term Extension (months) | 56 months | 0 months |
Commercial and industrial | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Residential real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Residential real estate | Residential real estate | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Consumer | Home equity | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Consumer | Home equity | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
Consumer | Consumer other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Weighted Average Interest Rate Reduction | 0% | 0% |
Weighted Average Term Extension (months) | 0 months | 0 months |
Consumer | Consumer other | Principal Forgiveness | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Principal Forgiveness | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified Subsequently Defaulted (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | $ 0 |
Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 202 |
Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Construction | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Construction | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Construction | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Construction | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Commercial multifamily | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Commercial multifamily | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Commercial multifamily | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial loans | Commercial multifamily | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate owner occupied | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate owner occupied | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate owner occupied | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate owner occupied | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial real estate | Commercial real estate non-owner occupied | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial and industrial | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial and industrial | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Commercial and industrial | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 202 |
Commercial and industrial | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Residential real estate | Residential real estate | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Residential real estate | Residential real estate | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Residential real estate | Residential real estate | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Residential real estate | Residential real estate | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Home equity | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Home equity | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Home equity | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Home equity | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Consumer other | Principal Forgiveness | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Consumer other | Payment Delay | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Consumer other | Term Extension | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | 0 |
Consumer | Consumer other | Interest Rate Reduction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Total | $ 0 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 667,853 | $ 724,911 |
Time $100,000 through $250,000 | 1,143,941 | 1,276,175 |
Time more than $250,000 | 593,590 | 685,164 |
Total time deposits | $ 2,405,384 | $ 2,686,250 |
BORROWED FUNDS - Schedule of Bo
BORROWED FUNDS - Schedule of Borrowed Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal, Short-term debt | $ 210,000 | $ 260,000 |
Principal, Long-term debt | 248,594 | 246,586 |
Total borrowings | $ 458,594 | $ 506,586 |
Weighted average rate on short-term borrowings (as percent) | 5.54% | 5.54% |
Weighted average rate on long-term borrowings (as percent) | 5.29% | 5.33% |
Weighted Average Rate | 5.40% | 5.44% |
Advances from the FHLB | ||
Debt Instrument [Line Items] | ||
Principal, Short-term debt | $ 210,000 | $ 260,000 |
Principal, Long-term debt | $ 127,169 | $ 125,223 |
Weighted average rate on short-term borrowings (as percent) | 5.54% | 5.54% |
Weighted average rate on long-term borrowings (as percent) | 4.76% | 4.80% |
Subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Principal, Long-term debt | $ 98,384 | $ 98,335 |
Weighted average rate on long-term borrowings (as percent) | 5.50% | 5.50% |
Junior subordinated borrowing - Trust I | ||
Debt Instrument [Line Items] | ||
Principal, Long-term debt | $ 15,464 | $ 15,464 |
Weighted average rate on long-term borrowings (as percent) | 7.43% | 7.49% |
Junior subordinated borrowing - Trust II | ||
Debt Instrument [Line Items] | ||
Principal, Long-term debt | $ 7,577 | $ 7,564 |
Weighted average rate on long-term borrowings (as percent) | 7.29% | 7.35% |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||
Line of credit, current | $ 3,000,000 | ||
Short-term debt | 210,000,000 | $ 260,000,000 | |
Long-term borrowings | 248,594,000 | 246,586,000 | |
Variable-rate FHLB advances | 0 | 0 | |
Federal Reserve Bank Advances | |||
Debt Instrument [Line Items] | |||
Line of credit facility, remaining borrowing capacity | 1,300,000,000 | 1,500,000,000 | |
Short-term debt | 0 | 0 | |
Advances from the FHLB | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | 0 | 0 | |
Line of credit facility, remaining borrowing capacity | 2,200,000,000 | 2,500,000,000 | |
Short-term debt | 210,000,000 | 260,000,000 | |
Long-term borrowings | 127,169,000 | 125,223,000 | |
Advances from the FHLB | Federal Home Loan Bank, Advances, Callable Option | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 0 | ||
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 6,200,000 | 4,200,000 | |
Subordinated borrowings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 98,384,000 | $ 98,335,000 | |
Subordinated borrowings | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Maturity period | 10 years | ||
Principal amount of debt issued | $ 100,000,000 | ||
Fixed interest rate | 5.50% | ||
Maturity period with fixed interest rate | 5 years | ||
Non callable period | 5 years | ||
Interest rate margin | 2.49% | ||
Subordinated borrowings | Subordinated Debt | Debt Instrument Variable Rate Three Month SOFR | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | $ 1,100,000 | ||
Junior subordinated borrowing | Trust I | |||
Debt Instrument [Line Items] | |||
Common stock of trust | 100% | ||
Common stock of trust included in other asset | $ 500,000 | ||
Sole asset of trust in form of debt | $ 15,500,000 | ||
Variable interest rate | 7.43% | 7.49% | |
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% | ||
Common stock of trust included in other asset | $ 200,000 | ||
Sole asset of trust in form of debt | $ 8,200,000 | ||
Variable interest rate | 7.29% | 7.35% | |
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% |
BORROWED FUNDS - Schedule of Ma
BORROWED FUNDS - Schedule of Maturities of FHLBB Advances (Details) - Fixed Rate Advances $ in Thousands | Mar. 31, 2024 USD ($) |
Principal | |
2024 | $ 240,007 |
2025 | 90,000 |
2026 | 512 |
2027 | 155 |
2028 and beyond | 6,495 |
Total FHLBB advances | $ 337,169 |
Weighted Average | |
Weighted Average Rate | |
2024 | 0.0546 |
2025 | 5.01% |
2026 | 2.20% |
2027 | 2% |
2028 and beyond | 0.0071 |
Total FHLB advances | 5.24% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) instrument | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | ||
Notional amount | $ 4,855,412,000 | $ 4,787,190,000 |
Cash collateral pledged | 0 | |
Amortized cost of securities pledged as collateral to derivative counterparties | 10,600,000 | |
Fair value of securities as pledged collateral to derivative counterparties | 10,100,000 | |
Commercial counterparties | ||
Derivative [Line Items] | ||
Net asset position | 48,700,000 | 39,800,000 |
Non-hedging derivatives | ||
Derivative [Line Items] | ||
Notional amount | 21,962,000 | 11,104,000 |
Cash flow hedges | ||
Derivative [Line Items] | ||
Notional amount | 600,000,000 | |
Cash flow hedges | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | 800,000,000 | 800,000,000 |
Economic hedging | ||
Derivative [Line Items] | ||
Credit valuation adjustments | $ 0 | |
Economic hedging | Interest rate swap on tax advantaged economic development bond | ||
Derivative [Line Items] | ||
Fixed rate of interest | 5.09% | |
Maturity period | 21 years | |
Economic hedging | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | $ 4,033,450,000 | 3,976,086,000 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount | 6,000,000 | |
Cash collateral pledged | 0 | 0 |
Interest rate swaps | Commercial counterparties | ||
Derivative [Line Items] | ||
Cash collateral pledged | 0 | 0 |
Net asset position | 3,700,000 | 6,000,000 |
Collateral already posted, aggregate fair value | 86,900,000 | 69,800,000 |
Interest rate swaps | Institutional counterparties | ||
Derivative [Line Items] | ||
Cash collateral pledged | 0 | 0 |
Collateral already posted, aggregate fair value | $ 3,800,000 | 6,100,000 |
Interest rate swaps | Minimum | ||
Derivative [Line Items] | ||
Derivative, term | 2 years | |
Interest rate swaps | Maximum | ||
Derivative [Line Items] | ||
Derivative, term | 2 years | |
Interest rate swaps | Cash flow hedges | ||
Derivative [Line Items] | ||
Number of instruments | instrument | 8 | |
Interest rate swaps | Cash flow hedges | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | $ 800,000,000 | 600,000,000 |
Interest rate swaps | Economic hedging | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | 3,700,000,000 | 3,600,000,000 |
Risk participation agreements with dealer banks | Economic hedging | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | 374,457,000 | 376,553,000 |
Forward sale commitments | Economic hedging | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | $ 5,700,000 | 2,200,000 |
Interest rate collars | Cash flow hedges | ||
Derivative [Line Items] | ||
Number of instruments | instrument | 2 | |
Interest rate collars | Cash flow hedges | Designated as hedging | ||
Derivative [Line Items] | ||
Notional amount | $ 200,000,000 | |
Interest rate collars | Cash flow hedges | Minimum | ||
Derivative [Line Items] | ||
Derivative, term | 2 years | |
Interest rate collars | Cash flow hedges | Maximum | ||
Derivative [Line Items] | ||
Derivative, term | 3 years | |
First Interest Rate Collars | Cash flow hedges | ||
Derivative [Line Items] | ||
Notional amount | $ 100,000,000 | |
Floor interest rate | 3% | |
Cap interest rate | 5.75% | |
Second Interest Rate Collars | Cash flow hedges | ||
Derivative [Line Items] | ||
Notional amount | $ 100,000,000 | |
Floor interest rate | 3.25% | |
Cap interest rate | 5.75% |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 4,855,412 | $ 4,787,190 |
Estimated Fair Value Asset (Liability) | (38,218) | (30,289) |
Impact of settled to market contracts | 29,200 | 26,700 |
Non-hedging derivatives | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 21,962 | 11,104 |
Estimated Fair Value Asset (Liability) | 147 | 34 |
Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 6,000 | |
Commitments to lend | Non-hedging derivatives | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 21,962 | $ 11,104 |
Weighted Average Maturity (In years) | 2 months 12 days | 2 months 12 days |
Estimated Fair Value Asset (Liability) | $ 147 | $ 34 |
Cash flow hedges | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 600,000 | |
Cash flow hedges | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 800,000 | 800,000 |
Estimated Fair Value Asset (Liability) | 430 | 1,658 |
Cash flow hedges | Interest rate swaps | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 800,000 | 600,000 |
Cash flow hedges | Interest rate swaps | Designated as hedging | Commercial loan | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 600,000 | $ 600,000 |
Weighted Average Maturity (In years) | 1 year 7 months 6 days | 1 year 10 months 24 days |
Weighted Average Rate, Received | 3.64% | 3.64% |
Weighted Average Rate, Contract pay rate | 5.33% | 5.35% |
Estimated Fair Value Asset (Liability) | $ 0 | $ 0 |
Cash flow hedges | Interest rate collars | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 200,000 | |
Cash flow hedges | Interest rate collars | Designated as hedging | Commercial loan | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 200,000 | $ 200,000 |
Weighted Average Maturity (In years) | 2 years 3 months 18 days | 2 years 6 months |
Estimated Fair Value Asset (Liability) | $ 430 | $ 1,658 |
Economic hedges | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 4,033,450 | 3,976,086 |
Estimated Fair Value Asset (Liability) | (38,795) | (31,981) |
Economic hedges | Interest rate swaps | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | 3,700,000 | 3,600,000 |
Economic hedges | Interest rate swaps | Designated as hedging | Commercial loan | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 1,823,651 | $ 1,795,562 |
Weighted Average Maturity (In years) | 4 years 8 months 12 days | 4 years 10 months 24 days |
Weighted Average Rate, Received | 4.42% | 4.36% |
Weighted Average Rate, Contract pay rate | 6.31% | 6.27% |
Estimated Fair Value Asset (Liability) | $ (87,452) | $ (63,865) |
Economic hedges | Interest rate swaps | Designated as hedging | Interest rate swap on tax advantaged economic development bond | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 5,980 | $ 6,202 |
Weighted Average Maturity (In years) | 5 years 8 months 12 days | 5 years 10 months 24 days |
Weighted Average Rate, Received | 5.81% | 5.82% |
Weighted Average Rate, Contract pay rate | 5.09% | 5.09% |
Estimated Fair Value Asset (Liability) | $ (84) | $ (172) |
Economic hedges | Reverse interest rate swaps | Designated as hedging | Commercial loan | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 1,823,651 | $ 1,795,562 |
Weighted Average Maturity (In years) | 4 years 8 months 12 days | 4 years 10 months 24 days |
Weighted Average Rate, Received | 6.31% | 6.27% |
Weighted Average Rate, Contract pay rate | 4.42% | 4.36% |
Estimated Fair Value Asset (Liability) | $ 48,691 | $ 32,053 |
Economic hedges | Risk participation agreements with dealer banks | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 374,457 | $ 376,553 |
Weighted Average Maturity (In years) | 5 years 2 months 12 days | 5 years 6 months |
Estimated Fair Value Asset (Liability) | $ (28) | $ (18) |
Economic hedges | Forward sale commitments | Designated as hedging | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional Amount | $ 5,711 | $ 2,207 |
Weighted Average Maturity (In years) | 2 months 12 days | 2 months 12 days |
Estimated Fair Value Asset (Liability) | $ 78 | $ 21 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Consolidated Statements of Income and Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative [Line Items] | ||
Unrealized (loss) recognized in accumulated other comprehensive loss | $ (5,524) | $ 5,798 |
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense | (1,502) | 1,556 |
Interest rate swaps | Interest Expense | ||
Derivative [Line Items] | ||
Net interest expense recognized on hedged commercial loans | 2,720 | 1,293 |
Interest rate swaps | Commercial loan | ||
Derivative [Line Items] | ||
Unrealized (loss) recognized in accumulated other comprehensive loss | (5,681) | 5,641 |
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense | (157) | (157) |
Net tax benefit on items recognized in accumulated other comprehensive income | 1,502 | (1,556) |
Other comprehensive loss recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | $ (4,022) | $ 4,242 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Economic Hedges and Non-hedging Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest rate swaps | Economic hedges | Industrial revenue bond | ||
Derivative [Line Items] | ||
Unrealized gain/(loss) recognized in other non-interest income | $ 88 | $ (68) |
Interest rate swaps | Economic hedges | Loans with commercial loan customers | ||
Derivative [Line Items] | ||
Unrealized gain/(loss) recognized in other non-interest income | (23,649) | 27,024 |
Favorable change in credit valuation adjustment recognized in other non-interest income | 0 | 0 |
Reverse interest rate swaps | Economic hedges | Loans with commercial loan customers | ||
Derivative [Line Items] | ||
Unrealized gain/(loss) recognized in other non-interest income | 23,649 | (27,024) |
Risk participation agreements | Economic hedges | ||
Derivative [Line Items] | ||
Unrealized gain/(loss) recognized in other non-interest income | 10 | (16) |
Forward commitments | Economic hedges | ||
Derivative [Line Items] | ||
Unrealized gain/(loss) recognized in other non-interest income | 57 | 7 |
Commitments to lend | Non-hedging derivatives | ||
Derivative [Line Items] | ||
Unrealized gain/(loss) recognized in other non-interest income | 113 | 9 |
Realized gain in other non-interest income | $ 157 | $ 39 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Assets Subject to an Enforceable Master Netting Arrangement (Details) - Interest rate swaps - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting of Financial Assets and Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 91,137 | $ 77,571 |
Gross Amounts Offset in the Statements of Condition | (38,761) | (31,812) |
Net Amounts of Assets Presented in the Statements of Condition | 52,376 | 45,759 |
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 | 52,376 | 45,759 |
Institutional counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross Amounts of Recognized Assets | 87,412 | 71,579 |
Gross Amounts Offset in the Statements of Condition | (38,761) | (31,812) |
Net Amounts of Assets Presented in the Statements of Condition | 48,651 | 39,767 |
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 | 48,651 | 39,767 |
Commercial counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross Amounts of Recognized Assets | 3,725 | 5,992 |
Gross Amounts Offset in the Statements of Condition | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Condition | 3,725 | 5,992 |
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 | $ 3,725 | $ 5,992 |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Assets Subject to an Enforceable Master Netting Arrangement (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | $ 0 | |
Interest rate swaps | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | (100,319,000) | $ (81,073,000) |
Gross amounts offset in the Statements of Condition | 9,584,000 | 5,142,000 |
Net Amounts of Liabilities Presented in the Statements of Condition | (90,735,000) | (75,931,000) |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 10,115,000 | 9,633,000 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | (80,620,000) | (66,298,000) |
Interest rate swaps | Institutional counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | (13,400,000) | (11,277,000) |
Gross amounts offset in the Statements of Condition | 9,584,000 | 5,142,000 |
Net Amounts of Liabilities Presented in the Statements of Condition | (3,816,000) | (6,135,000) |
Gross Amounts Not Offset in the Statements of Condition, Financial Instruments | 10,115,000 | 9,633,000 |
Gross Amounts Not Offset in the Statements of Condition, Cash Collateral Received | 0 | 0 |
Net Amount | 6,299,000 | 3,498,000 |
Interest rate swaps | Commercial counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | (86,919,000) | (69,796,000) |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Condition | (86,919,000) | (69,796,000) |
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 | $ (86,919,000) | $ (69,796,000) |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 2.2 | $ 2.3 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease contract term | 1 month | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease contract term | 16 years |
LEASES - Schedule of ROU Assets
LEASES - Schedule of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Lease Right-of-Use Assets | ||
Operating lease right-of-use assets | $ 40,845 | $ 47,348 |
Finance lease right-of-use assets | 665 | 5,597 |
Total Lease Right-of-Use Assets | 41,510 | 52,945 |
Lease Liabilities | ||
Operating lease liabilities | 46,068 | 53,026 |
Finance lease liabilities | 927 | 8,681 |
Total Lease Liabilities | $ 46,995 | $ 61,707 |
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 - Schedule of Supplement
LEASES - Schedule of Supplemental Information Related to Leases (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Weighted-Average Remaining Lease Term (in years) | ||
Operating leases | 8 years 2 months 12 days | 8 years 3 months 18 days |
Finance leases | 13 years 9 months 18 days | 10 years 9 months 18 days |
Weighted-Average Discount Rate | ||
Operating leases | 2.97% | 2.90% |
Finance leases | 5% | 5% |
LEASES - Schedule of Suppleme_2
LEASES - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 2,194 | $ 2,273 |
Operating cash flows from finance leases | 75 | 113 |
Financing cash flows from finance leases | $ 149 | $ 147 |
LEASES - Schedule of Maturity A
LEASES - Schedule of Maturity Analysis of Operating and Finance Lease Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
2024 | $ 6,620 | |
2025 | 7,840 | |
2026 | 6,840 | |
2027 | 5,957 | |
2028 | 4,920 | |
Thereafter | 19,077 | |
Total undiscounted lease payments | 51,254 | |
Less amounts representing interest | (5,186) | |
Lease liability | 46,068 | $ 53,026 |
Finance Leases | ||
2024 | 70 | |
2025 | 93 | |
2026 | 93 | |
2027 | 93 | |
2028 | 93 | |
Thereafter | 837 | |
Total undiscounted lease payments | 1,279 | |
Less amounts representing interest | (352) | |
Lease liability | $ 927 | $ 8,681 |
CAPITAL RATIOS AND SHAREHOLDE_3
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Actual and Required Capital Ratios (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Tier 1 capital to risk-weighted assets | ||
Total capital to risk-weighted assets | 0.140 | 0.144 |
Tier 1 capital to risk-weighted assets | 0.118 | 0.123 |
Common equity tier 1 capital to risk-weighted assets | 11.60% | 12% |
Tier 1 capital to average assets | 0.095 | 0.097 |
Total capital to risk-weighted assets, Minimum Capital Requirement, Ratio | 0.080 | |
Tier 1 capital risk-weighted assets, Minimum Capital Requirement, Ratio | 0.060 | |
Common equity tier 1 capital to risk weighted assets Minimum Capital Requirement , Ratio | 0.045 | |
Tier 1 capital to average assets, Minimum Capital Requirement, Ratio | 0.040 | |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Total capital to risk-weighted assets | 0.130 | 0.133 |
Tier 1 capital to risk-weighted assets | 0.119 | 0.122 |
Common equity tier 1 capital to risk-weighted assets | 11.90% | 12.20% |
Tier 1 capital to average assets | 0.096 | 0.096 |
Total capital to risk-weighted assets, Minimum Capital Requirement, Ratio | 0.080 | |
Tier 1 capital risk-weighted assets, Minimum Capital Requirement, Ratio | 0.060 | |
Tier 1 capital to average assets, Minimum Capital Requirement, Ratio | 0.040 | |
Tier 1 capital to average assets, Regulatory Minimum to be Well Capitalized, Ratio, Ratio | 0.100 | |
Tier 1 capital risk-weighted assets, Regulatory Minimum to be Well Capitalized, Ratio, Ratio | 0.080 | |
Common equity tier 1 capital to risk weighted assets, Regulatory Minimum to be Well Capitalized, Ratio | 0.065 | |
Tier 1 capital to average assets, Regulatory Minimum to be Well Capitalized, Ratio, Ratio | 0.050 |
CAPITAL RATIOS AND SHAREHOLDE_4
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of AOCI (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders’ equity | $ 1,009,923 | $ 1,012,221 | $ 995,480 | $ 954,062 |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders’ equity | (114,415) | (143,016) | (159,066) | (181,052) |
Net unrealized holding (loss) on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income, before tax | (144,640) | (188,927) | ||
Income taxes related to items of accumulated other comprehensive income | 37,737 | 49,401 | ||
Total shareholders’ equity | (106,902) | (139,525) | (157,813) | (175,557) |
Net unrealized (loss) on cash flow hedging derivatives | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income, before tax | (9,789) | (4,265) | ||
Income taxes related to items of accumulated other comprehensive income | 2,661 | 1,159 | ||
Total shareholders’ equity | (7,128) | (3,106) | (636) | (4,878) |
Net unrealized holding (loss) on pension plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other accumulated comprehensive income, before tax | (528) | (528) | ||
Income taxes related to items of accumulated other comprehensive income | 144 | 144 | ||
Total shareholders’ equity | $ (385) | $ (385) | $ (617) | $ (617) |
CAPITAL RATIOS AND SHAREHOLDE_5
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Components of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net unrealized (losses) arising during the period | ||
Net of Tax | $ (7,867) | $ 21,871 |
Less: reclassification adjustment for gains (losses) realized in net income | ||
Net of Tax | (36,468) | (115) |
Other comprehensive income (loss) | ||
Before Tax | 38,763 | 29,766 |
Tax Effect | (10,162) | (7,780) |
Total other comprehensive income | 28,601 | 21,986 |
Net unrealized holding loss on AFS securities | ||
Net unrealized (losses) arising during the period | ||
Before Tax | (5,622) | 23,968 |
Tax Effect | 1,891 | (6,224) |
Net of Tax | (3,731) | 17,744 |
Less: reclassification adjustment for gains (losses) realized in net income | ||
Before Tax | (49,909) | 0 |
Tax Effect | 13,555 | 0 |
Net of Tax | (36,354) | 0 |
Other comprehensive income (loss) | ||
Before Tax | 44,287 | 23,968 |
Tax Effect | (11,664) | (6,224) |
Total other comprehensive income | 32,623 | 17,744 |
Net unrealized loss on cash flow hedging derivatives | ||
Net unrealized (losses) arising during the period | ||
Before Tax | (5,681) | 5,641 |
Tax Effect | 1,545 | (1,514) |
Net of Tax | (4,136) | 4,127 |
Less: reclassification adjustment for gains (losses) realized in net income | ||
Before Tax | (157) | (157) |
Tax Effect | 43 | 42 |
Net of Tax | (114) | (115) |
Other comprehensive income (loss) | ||
Before Tax | (5,524) | 5,798 |
Tax Effect | 1,502 | (1,556) |
Total other comprehensive income | $ (4,022) | $ 4,242 |
CAPITAL RATIOS AND SHAREHOLDE_6
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Reclassified of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | $ 1,012,221 | $ 954,062 |
Other comprehensive (loss) before reclassifications | (7,867) | 21,871 |
Less: amounts reclassified from accumulated other comprehensive (loss) | (36,468) | (115) |
Total other comprehensive income | 28,601 | 21,986 |
Balance at End of Period | 1,009,923 | 995,480 |
Accumulated other comprehensive loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (143,016) | (181,052) |
Total other comprehensive income | 28,601 | 21,986 |
Balance at End of Period | (114,415) | (159,066) |
Net unrealized holding loss on AFS securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (139,525) | (175,557) |
Other comprehensive (loss) before reclassifications | (3,731) | 17,744 |
Less: amounts reclassified from accumulated other comprehensive (loss) | (36,354) | 0 |
Total other comprehensive income | 32,623 | 17,744 |
Balance at End of Period | (106,902) | (157,813) |
Net loss on effective cash flow hedging derivatives | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (3,106) | (4,878) |
Other comprehensive (loss) before reclassifications | (4,136) | 4,127 |
Less: amounts reclassified from accumulated other comprehensive (loss) | (114) | (115) |
Total other comprehensive income | (4,022) | 4,242 |
Balance at End of Period | (7,128) | (636) |
Net unrealized holding loss on pension plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at Beginning of Period | (385) | (617) |
Other comprehensive (loss) before reclassifications | 0 | |
Less: amounts reclassified from accumulated other comprehensive (loss) | 0 | 0 |
Total other comprehensive income | 0 | 0 |
Balance at End of Period | $ (385) | $ (617) |
CAPITAL RATIOS AND SHAREHOLDE_7
CAPITAL RATIOS AND SHAREHOLDERS' EQUITY - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Non-interest expense | $ (32,599) | $ 16,606 |
Interest expense | (63,866) | (34,783) |
Tax expense/benefit | 6,291 | (5,548) |
Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Net of tax | (36,468) | (115) |
Net unrealized holding (loss) on AFS securities | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Non-interest expense | (49,909) | 0 |
Tax expense/benefit | 13,555 | 0 |
Net of tax | (36,354) | 0 |
Net unrealized (loss) on cash flow hedging derivatives | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||
Amounts reclassified out of each component of accumulated other comprehensive income | ||
Non-interest expense | 0 | 0 |
Interest expense | (157) | (157) |
Tax expense/benefit | 43 | 42 |
Net of tax | $ (114) | $ (115) |
(LOSS)_EARNINGS PER SHARE - Sch
(LOSS)/EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings per share | ||
Net (loss)/income | $ (20,188) | $ 27,637 |
Average number of common shares issued (in shares) | 51,903 | 51,903 |
Less: average number of treasury shares (in shares) | 8,356 | 7,488 |
Less: average number of unvested stock award shares (in shares) | 770 | 722 |
Average number of basic shares outstanding (in shares) | 42,777 | 43,693 |
Average number of diluted shares outstanding (in shares) | 43,028 | 44,036 |
Basic (loss)/earnings per common share (in dollars per share) | $ (0.47) | $ 0.63 |
Diluted (loss)/earnings per common share (in dollars per share) | $ (0.47) | $ 0.63 |
Unvested stock award | ||
Earnings per share | ||
Plus: dilutive effect (in shares) | 251 | 343 |
Stock options outstanding | ||
Earnings per share | ||
Plus: dilutive effect (in shares) | 0 | 0 |
(LOSS)_EARNINGS PER SHARE- Narr
(LOSS)/EARNINGS PER SHARE- Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unvested stock award | ||
Anti-dilutive securities | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 519 | 380 |
Stock options outstanding | ||
Anti-dilutive securities | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 49 | 49 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Schedule of Activity (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Non-Vested Stock Awards Outstanding | ||
Number of Shares | ||
Balance at the beginning of the period (in shares) | 785 | |
Granted (in shares) | 185 | |
Acquired (in shares) | 0 | |
Stock awards vested (in shares) | (167) | |
Forfeited (in shares) | (49) | |
Expired (in shares) | 0 | |
Balance at the end of the period (in shares) | 754 | |
Weighted-Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 24.92 | |
Granted (in dollars per share) | 24.81 | |
Acquired (in dollars per share) | 0 | |
Stock awards vested (in dollars per share) | 21.61 | |
Forfeited (in dollars per share) | 26.90 | |
Expired (in dollars per share) | 0 | |
Balance at the end of the period (in dollars per share) | $ 25.85 | |
Stock Options Outstanding | ||
Number of Shares | ||
Stock awards vested (in shares) | (167) | (96) |
Number of Shares | ||
Balance at the beginning of the period (in shares) | 49 | |
Granted (in shares) | 0 | |
Acquired (in shares) | 0 | |
Stock options exercised (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Balance at the end of the period (in shares) | 49 | |
Weighted-Average Exercise Price | ||
Balance at the beginning of the period (in dollars per share) | $ 26.46 | |
Granted (in dollars per share) | 0 | |
Acquired (in dollars per share) | 0 | |
Stock options exercised (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Expired (in dollars per share) | 0 | |
Balance at the end of the period (in dollars per share) | $ 26.46 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise of stock options | $ 0 | |
Stock awards vested (in shares) | 167 | 96 |
Non-Vested Stock Awards Outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards vested (in shares) | 167 | |
Total compensation cost | $ 2,100 | $ 1,200 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 5,900 | $ 6,100 |
Securities available for sale, at fair value | 625,857 | 1,022,285 |
Equity securities | 12,823 | 13,029 |
U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 7,876 | 7,981 |
Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 62,522 | 63,853 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 34,592 | 39,115 |
Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 656 | 656 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,909 | 6,142 |
Securities available for sale, at fair value | 625,857 | 1,022,285 |
Equity securities | 12,823 | 13,029 |
Loans held for investment at fair value | 8,780,482 | 8,768,108 |
Loans held for sale | 6,345 | 2,237 |
Derivative assets | 52,523 | 45,668 |
Derivative liabilities | 90,737 | 75,957 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Securities available for sale, at fair value | 7,876 | 7,981 |
Equity securities | 12,823 | 13,029 |
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 securities | 0 | 0 |
Securities available for sale, at fair value | 614,052 | 1,010,381 |
Equity securities | 0 | 0 |
Loans held for investment at fair value | 0 | 0 |
Loans held for sale | 6,345 | 2,237 |
Derivative assets | 52,298 | 45,613 |
Derivative liabilities | 90,737 | 75,957 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,909 | 6,142 |
Securities available for sale, at fair value | 3,929 | 3,923 |
Equity securities | 0 | 0 |
Loans held for investment at fair value | 8,780,482 | 8,768,108 |
Loans held for sale | 0 | 0 |
Derivative assets | 225 | 55 |
Derivative liabilities | 0 | 0 |
Recurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,909 | 6,142 |
Equity securities | 12,823 | 13,029 |
Loans held for investment at fair value | 396 | 374 |
Loans held for sale | 6,345 | 2,237 |
Derivative assets | 52,523 | 45,668 |
Capitalized servicing rights | 1,346 | 1,526 |
Derivative liabilities | 90,737 | 75,957 |
Recurring | Fair Value | U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 7,876 | 7,981 |
Recurring | Fair Value | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 62,522 | 63,853 |
Recurring | Fair Value | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 215,713 | 347,874 |
Recurring | Fair Value | 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 | 234,640 | 417,480 |
Recurring | Fair Value | 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 | 69,858 | 145,326 |
Recurring | Fair Value | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 34,592 | 39,115 |
Recurring | Fair Value | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 656 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Equity securities | 12,823 | 13,029 |
Loans held for investment at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | U.S Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 7,876 | 7,981 |
Recurring | Level 1 | 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 | 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 | 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 | 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 | 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 | 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 | |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Equity securities | 0 | 0 |
Loans held for investment at fair value | 0 | 0 |
Loans held for sale | 6,345 | 2,237 |
Derivative assets | 52,298 | 45,613 |
Capitalized servicing rights | 0 | 0 |
Derivative liabilities | 90,737 | 75,957 |
Recurring | Level 2 | 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 2 | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 62,522 | 63,853 |
Recurring | Level 2 | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 215,713 | 347,874 |
Recurring | Level 2 | 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 | 234,640 | 417,480 |
Recurring | Level 2 | 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 | 69,858 | 145,326 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 30,663 | 35,192 |
Recurring | Level 2 | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 656 | |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 5,909 | 6,142 |
Securities available for sale, at fair value | 3,923 | |
Equity securities | 0 | 0 |
Loans held for investment at fair value | 396 | 374 |
Loans held for sale | 0 | 0 |
Derivative assets | 225 | 55 |
Capitalized servicing rights | 1,346 | 1,526 |
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | 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 | 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 | 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 | 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 | 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 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 3,929 | $ 3,923 |
Recurring | Level 3 | 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 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Jan. 01, 2020 USD ($) | Mar. 31, 2024 USD ($) security | Mar. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of securities in the portfolio (security) | security | 1 | ||
Write-off | $ 5,636 | $ 7,937 | |
Continuing Operations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Payments for origination of mortgage loans held-for-sale | 27,800 | 7,000 | |
Proceeds from sale and collection of loans held-for-sale | 24,300 | 6,400 | |
Continuing Operations | Loans Held for Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains in fair value of loans held for sale included in earnings | $ 55 | $ 9 | |
Cumulative Effect, Period of Adoption, Adjustment | Loans Held for Investment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Write-off | $ (11,200) |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Loans Held for Investment (Details) - Level 2 - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Unpaid Principal | $ 24,565 | |
Loans Held for Investment | Continuing Operations | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 396 | $ 374 |
Aggregate Unpaid Principal | 8,273 | 8,809 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ (7,877) | $ (8,435) |
FAIR VALUE MEASUREMENTS - Sch_3
FAIR VALUE MEASUREMENTS - Schedule of Loans Held for Sale (Details) - Level 2 - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Loans Held for Sale | ||
Aggregate Fair Value | $ 6,345 | $ 2,237 |
Aggregate Unpaid Principal | 24,565 | |
Recurring | ||
Loans Held for Sale | ||
Aggregate Fair Value | 6,345 | 2,237 |
Continuing Operations | Recurring | Loans Held for Sale | ||
Loans Held for Sale | ||
Aggregate Fair Value | 6,345 | 2,237 |
Aggregate Unpaid Principal | 6,258 | 2,205 |
Aggregate Fair Value Less Aggregate Unpaid Principal | $ 87 | $ 32 |
FAIR VALUE MEASUREMENTS - Sch_4
FAIR VALUE MEASUREMENTS - Schedule of Changes in Level 3 Assets and Liabilities that were Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | $ 261 | $ 34 |
Unrealized (loss)/gain relating to instruments still held at the end of the period | 147 | 26 |
Derivative Asset (Liability) | ||
Beginning balance | 34 | 17 |
Unrealized (loss)/gain, net recognized in other non-interest income | 261 | 34 |
Transfers to held for sale loans | (148) | (25) |
Ending balance | 147 | 26 |
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 | 57 | 7 |
Unrealized (loss)/gain relating to instruments still held at the end of the period | 78 | 15 |
Derivative Asset (Liability) | ||
Beginning balance | 21 | 8 |
Unrealized (loss)/gain, net recognized in other non-interest income | 57 | 7 |
Ending balance | 78 | 15 |
Trading Security | ||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||
Balance at the beginning of the period | 6,142 | 6,708 |
Unrealized (loss)/gain, net recognized in other non-interest income | (11) | 88 |
Paydown of asset | (222) | (212) |
Balance at the end of the period | 5,909 | 6,584 |
Unrealized (loss)/gain relating to instruments still held at the end of the period | (71) | (266) |
Derivative Asset (Liability) | ||
Unrealized (loss)/gain, net recognized in other non-interest income | (11) | 88 |
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 | 3,923 | 4,000 |
Unrealized gain included in accumulated other comprehensive income | 6 | (200) |
Balance at the end of the period | 3,929 | 3,800 |
Unrealized (loss)/gain relating to instruments still held at the end of the period | (71) | (200) |
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 | 374 | 605 |
Unrealized (loss)/gain, net recognized in other non-interest income | 48 | (129) |
Paydown of asset | (26) | (16) |
Balance at the end of the period | 396 | 460 |
Unrealized (loss)/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 | 48 | (129) |
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 | 1,526 | 1,846 |
Unrealized (loss)/gain, net recognized in other non-interest income | (180) | (180) |
Balance at the end of the period | 1,346 | 1,666 |
Unrealized (loss)/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 | $ (180) | $ (180) |
FAIR VALUE MEASUREMENTS - Sch_5
FAIR VALUE MEASUREMENTS - Schedule of Quantitative Information about the Significant Unobservable Inputs within Level 3 (Details) $ in Thousands | Mar. 31, 2024 USD ($) uSDPerLoan | Dec. 31, 2023 USD ($) uSDPerLoan |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading Securities | $ 5,909 | $ 6,142 |
Level 3 | Recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading Securities | 5,909 | 6,142 |
AFS Securities | 3,929 | |
Loans held for investment | 396 | 374 |
Total | 11,805 | 12,020 |
Level 3 | Recurring | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset | 147 | 34 |
Level 3 | Recurring | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Derivative asset | 78 | 21 |
Level 3 | Recurring | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 1,346 | $ 1,526 |
Level 3 | Recurring | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Trading security, significant unobservable input value | 0.0404 | 0.0419 |
Loan held for investment, Significant Unobservable Input Value | 0.2500 | 0.2500 |
Level 3 | Recurring | Discount Rate | Discounted Cash Flow | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized Servicing Rights, Significant Unobservable Input Value | 0.1108 | 0.1108 |
Level 3 | Recurring | Price | Indication from Market Maker | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
AFS Securities, Significant Unobservable Input Value | 0.9823 | 0.9807 |
Level 3 | Recurring | Collateral Value | Discounted Cash Flow | Minimum | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loan held for investment, Significant Unobservable Input Value | 0 | 0 |
Level 3 | Recurring | Collateral Value | Discounted Cash Flow | Maximum | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loan held for investment, Significant Unobservable Input Value | 19,400,000 | 18,300,000 |
Level 3 | Recurring | Closing Ratio | Historical Trend | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Commitments, Significant Unobservable Input Value | 0.8324 | 0.8429 |
Level 3 | Recurring | Closing Ratio | Historical Trend | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Commitments, Significant Unobservable Input Value | 0.8324 | 0.8429 |
Level 3 | Recurring | Origination Costs, per loan | Pricing Model | Commitments to lend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Commitments, Significant Unobservable Input Value | uSDPerLoan | 3,000 | 3,000 |
Level 3 | Recurring | Origination Costs, per loan | Pricing Model | Forward commitments | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Commitments, Significant Unobservable Input Value | uSDPerLoan | 3,000 | 3,000 |
Level 3 | Recurring | Constant Prepayment Rate (CPR) | Discounted Cash Flow | Capitalized servicing rights | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized Servicing Rights, Significant Unobservable Input Value | 0.0731 | 0.0763 |
FAIR VALUE MEASUREMENTS - Sch_6
FAIR VALUE MEASUREMENTS - Schedule of Non-recurring Fair Value Measurements (Details) - Non-recurring - Level 3 - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated | $ 4,400 | $ 4,395 |
Capitalized servicing rights | 8,643 | 10,569 |
Total | $ 13,043 | $ 14,964 |
FAIR VALUE MEASUREMENTS - Sch_7
FAIR VALUE MEASUREMENTS - Schedule of Significant Unobservable Inputs for Non-recurring Assets (Details) - Level 3 $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loans held for sale | $ 0 | $ 0 |
Non-recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated | 4,400 | 4,395 |
Capitalized servicing rights | 8,643 | 10,569 |
Total | 13,043 | 14,964 |
Non-recurring | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated | $ 4,400 | $ 4,395 |
Non-recurring | Minimum | Discounted Cash Flow - Loss Severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated impaired loans, unobservable inputs, range, measurement input | 1 | 1 |
Non-recurring | Minimum | Appraised Value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated impaired loans, unobservable inputs, range, measurement input | 0 | 0 |
Non-recurring | Maximum | Discounted Cash Flow - Loss Severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated impaired loans, unobservable inputs, range, measurement input | 0.0007 | 0.0008 |
Non-recurring | Maximum | Appraised Value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated impaired loans, unobservable inputs, range, measurement input | 3,418,000 | 3,389,000 |
Non-recurring | Weighted Average | Discounted Cash Flow - Loss Severity | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated impaired loans, unobservable inputs, range, measurement input | 0.6370 | 0.6700 |
Non-recurring | Weighted Average | Appraised Value | Fair Value of Collateral | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Individually evaluated impaired loans, unobservable inputs, range, measurement input | 2,769,000 | 2,774,000 |
Non-recurring | Capitalized servicing rights | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | $ 8,643 | $ 10,569 |
Non-recurring | Capitalized servicing rights | Minimum | Constant Prepayment Rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, measurement input | 0.0556 | 0.0543 |
Non-recurring | Capitalized servicing rights | Minimum | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, measurement input | 0.1047 | 0.1009 |
Non-recurring | Capitalized servicing rights | Maximum | Constant Prepayment Rate (CPR) | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, measurement input | 0.1589 | 0.1715 |
Non-recurring | Capitalized servicing rights | Maximum | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, measurement input | 0.1512 | 0.1659 |
Non-recurring | 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, measurement input | 0.1277 | 0.1231 |
Non-recurring | Capitalized servicing rights | Weighted Average | Discount Rate | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights, measurement input | 0.1305 | 0.1382 |
FAIR VALUE MEASUREMENTS - Sch_8
FAIR VALUE MEASUREMENTS - Schedule of Estimated Non-recurring Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial Assets | ||
Trading securities | $ 5,900 | $ 6,100 |
Equity securities | 12,823 | 13,029 |
Securities available for sale, at fair value | 625,857 | 1,022,285 |
Securities held to maturity | 459,626 | 476,228 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 1,193,695 | 1,203,244 |
Trading securities | 5,909 | 6,142 |
Equity securities | 12,823 | 13,029 |
Securities available for sale, at fair value | 625,857 | 1,022,285 |
Securities held to maturity | 531,820 | 543,351 |
Federal Home Loan Bank stock | 20,522 | 22,689 |
Net loans | 8,978,422 | 8,934,329 |
Loans held for sale | 6,345 | 2,237 |
Accrued interest receivable | 52,528 | 53,096 |
Derivative assets | 52,523 | 45,668 |
Assets held for sale | 83,020 | |
Financial Liabilities | ||
Total deposits | 9,882,972 | 10,633,384 |
Short-term debt | 210,000 | 260,000 |
Long-term Federal Home Loan Bank advances and other | 127,169 | 125,223 |
Subordinated borrowings | 121,425 | 121,363 |
Accrued interest payable | 13,545 | 13,766 |
Derivative liabilities | 90,737 | 75,957 |
Liabilities held for sale | 497,459 | |
Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 1,193,695 | 1,203,244 |
Trading securities | 5,909 | 6,142 |
Equity securities | 12,823 | 13,029 |
Securities available for sale, at fair value | 625,857 | 1,022,285 |
Securities held to maturity | 459,626 | 476,228 |
Net loans | 8,780,482 | 8,768,108 |
Loans held for sale | 6,345 | 2,237 |
Accrued interest receivable | 52,528 | 53,096 |
Derivative assets | 52,523 | 45,668 |
Assets held for sale | 83,020 | |
Financial Liabilities | ||
Total deposits | 9,869,404 | 10,615,655 |
Short-term debt | 209,962 | 260,035 |
Long-term Federal Home Loan Bank advances and other | 124,519 | 123,747 |
Subordinated borrowings | 102,982 | 98,138 |
Accrued interest payable | 13,545 | 13,766 |
Derivative liabilities | 90,737 | 75,957 |
Liabilities held for sale | 495,972 | |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 1,193,695 | 1,203,244 |
Trading securities | 0 | 0 |
Equity securities | 12,823 | 13,029 |
Securities available for sale, at fair value | 7,876 | 7,981 |
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 |
Assets held for sale | 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 |
Accrued interest payable | 0 | 0 |
Derivative liabilities | 0 | 0 |
Liabilities held for sale | 0 | |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading securities | 0 | 0 |
Equity securities | 0 | 0 |
Securities available for sale, at fair value | 614,052 | 1,010,381 |
Securities held to maturity | 458,206 | 474,742 |
Net loans | 0 | 0 |
Loans held for sale | 6,345 | 2,237 |
Accrued interest receivable | 52,528 | 53,096 |
Derivative assets | 52,298 | 45,613 |
Assets held for sale | 24,565 | |
Financial Liabilities | ||
Total deposits | 9,869,404 | 10,615,655 |
Short-term debt | 209,962 | 260,035 |
Long-term Federal Home Loan Bank advances and other | 124,519 | 123,747 |
Subordinated borrowings | 102,982 | 98,138 |
Accrued interest payable | 13,545 | 13,766 |
Derivative liabilities | 90,737 | 75,957 |
Liabilities held for sale | 495,972 | |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading securities | 5,909 | 6,142 |
Equity securities | 0 | 0 |
Securities available for sale, at fair value | 3,929 | 3,923 |
Securities held to maturity | 1,420 | 1,486 |
Net loans | 8,780,482 | 8,768,108 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 225 | 55 |
Assets held for sale | 58,455 | |
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 |
Accrued interest payable | 0 | 0 |
Derivative liabilities | 0 | $ 0 |
Liabilities held for sale | $ 0 |
NET INTEREST INCOME AFTER PRO_3
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Banking and Thrift, Interest [Abstract] | ||
Net interest income | $ 88,140 | $ 97,533 |
Provision for credit losses | 6,000 | 8,999 |
Net interest after provision for credit losses | $ 82,140 | $ 88,534 |
TAX EQUITY INVESTMENTS - Narrat
TAX EQUITY INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Carrying value | $ 35,500 | $ 16,600 | |
Total delayed equity contributions | 18,184 | ||
Income tax (benefit)/expense | (6,291) | $ 5,548 | |
Impairment loss | 0 | 0 | |
Non-income tax related activity | $ 0 | $ 2,300 |
TAX EQUITY INVESTMENTS - Delaye
TAX EQUITY INVESTMENTS - Delayed Equity Contributions Associated Were Estimated To Be Paid (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Equity Method Investments and Joint Ventures [Abstract] | |
2024 | $ 3,939 |
2025 | 7,814 |
2026 | 3,350 |
2027 | 2,841 |
2028 | 18 |
Thereafter | 222 |
Total delayed equity contributions | $ 18,184 |
TAX EQUITY INVESTMENTS - Income
TAX EQUITY INVESTMENTS - Income Tax Credits and Other Income Tax Benefits, Amortization Expense, Total Provision For Income Taxes (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Equity Method Investments and Joint Ventures [Abstract] | |
Amortization of tax credit investments | $ (639) |
Tax credit and other tax benefit/(expense) | 573 |
Total provision for income taxes | $ (66) |