Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35522 | |
Entity Registrant Name | BANC OF CALIFORNIA, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 04-3639825 | |
Entity Address, Address Line One | 3 MacArthur Place | |
Entity Address, City or Town | Santa Ana | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92707 | |
City Area Code | 855 | |
Local Phone Number | 361-2262 | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | BANC | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001169770 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 56,956,386 | |
Class B Non-Voting Non-Convertible Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 477,321 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 42,532 | $ 47,434 |
Interest-earning deposits in financial institutions | 241,197 | 181,462 |
Total cash and cash equivalents | 283,729 | 228,896 |
Securities held-to-maturity, at amortized cost (fair value of $267,045 and $262,460 at June 30, 2023 and December 31, 2022) | 328,405 | 328,641 |
Securities available-for-sale, at fair value (amortized cost of $977,249 and $909,563 at June 30, 2023 and December 31, 2022; allowance for credit losses of $1,036 and $0 at June 30, 2023 and December 31, 2022) | 922,091 | 868,297 |
Loans receivable | 7,156,206 | 7,115,038 |
Allowance for loan losses | (80,883) | (85,960) |
Loans receivable, net | 7,075,323 | 7,029,078 |
Federal Home Loan Bank and other bank stock, at cost | 60,281 | 57,092 |
Premises and equipment, net | 108,235 | 107,345 |
Bank owned life insurance | 128,973 | 127,122 |
Deferred income taxes, net | 64,001 | 50,518 |
Goodwill | 114,312 | 114,312 |
Other intangibles | 6,603 | 7,526 |
Other assets | 278,312 | 278,189 |
Total assets | 9,370,265 | 9,197,016 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Noninterest-bearing deposits | 2,446,693 | 2,809,328 |
Interest-bearing deposits | 4,424,383 | 4,311,593 |
Total deposits | 6,871,076 | 7,120,921 |
Federal Home Loan Bank (FHLB) advances, net and Federal Reserve Bank (FRB) borrowings | 1,147,997 | 727,348 |
Long-term debt, net | 274,121 | 274,906 |
Accrued expenses and other liabilities | 120,017 | 114,223 |
Total liabilities | 8,413,211 | 8,237,398 |
Commitments and contingent liabilities | ||
Additional paid-in capital | 867,994 | 866,478 |
Retained earnings | 275,430 | 248,988 |
Treasury stock, at cost (8,383,337 and 6,623,846 shares at June 30, 2023 and December 31, 2022) | (137,270) | (115,907) |
Accumulated other comprehensive loss, net | (49,758) | (40,597) |
Total stockholders’ equity | 957,054 | 959,618 |
Total liabilities and stockholders’ equity | 9,370,265 | 9,197,016 |
Common Stock | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Common stock | 653 | 651 |
Class B Common Stock | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Common stock | $ 5 | $ 5 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Securities held-to-maturity | $ 267,045 | $ 262,460 |
Amortized cost | 977,249 | 909,563 |
Allowance for credit loss | $ (1,036) | $ 0 |
Treasury stock (in shares) | 8,383,337 | 6,623,846 |
Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 446,863,844 | 446,863,844 |
Common stock, shares issued (in shares) | 65,328,043 | 65,168,380 |
Common stock, shares outstanding (in shares) | 56,944,706 | 58,544,534 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,136,156 | 3,136,156 |
Common stock, shares issued (in shares) | 477,321 | 477,321 |
Common stock, shares outstanding (in shares) | 477,321 | 477,321 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest and dividend income | |||||
Loans, including fees | $ 92,889 | $ 87,418 | $ 78,895 | $ 180,307 | $ 155,129 |
Securities | 15,804 | 14,909 | 8,124 | 30,713 | 15,433 |
Other interest-earning assets | 7,458 | 4,592 | 1,399 | 12,050 | 2,125 |
Total interest and dividend income | 116,151 | 106,919 | 88,418 | 223,070 | 172,687 |
Interest expense | |||||
Deposits | 28,118 | 20,527 | 3,180 | 48,645 | 4,568 |
FHLB advances and FRB borrowings | 14,703 | 9,648 | 3,114 | 24,351 | 6,067 |
Other interest-bearing liabilities | 3,698 | 3,691 | 3,825 | 7,389 | 7,312 |
Total interest expense | 46,519 | 33,866 | 10,119 | 80,385 | 17,947 |
Net interest income | 69,632 | 73,053 | 78,299 | 142,685 | 154,740 |
Provision for (reversal of) credit losses | 1,900 | 2,000 | 0 | 3,900 | (31,542) |
Net interest income after provision for (reversal of) credit losses | 67,732 | 71,053 | 78,299 | 138,785 | 186,282 |
Noninterest income | |||||
Customer service fees | 2,022 | 1,979 | 2,578 | 4,001 | 5,012 |
Loan servicing income | 574 | 547 | 109 | 1,121 | 321 |
Income from bank owned life insurance | 951 | 900 | 810 | 1,851 | 1,606 |
Net gain on sale of securities available-for-sale | 0 | 0 | 0 | 0 | 16 |
All other income | 2,477 | 4,433 | 3,689 | 6,910 | 6,141 |
Total noninterest income | 6,024 | 7,859 | 7,186 | 13,883 | 13,096 |
Noninterest expense | |||||
Salaries and employee benefits | 28,282 | 29,656 | 28,264 | 57,938 | 57,251 |
Occupancy and equipment | 5,603 | 5,526 | 5,741 | 11,129 | 11,378 |
Professional fees | 4,001 | 4,072 | 4,001 | 8,073 | 6,840 |
Data processing | 1,686 | 1,563 | 1,782 | 3,249 | 3,610 |
Regulatory assessments | 1,301 | 1,202 | 1,021 | 2,503 | 1,796 |
Software and technology | 3,579 | 3,274 | 2,747 | 6,853 | 5,447 |
(Gain) loss on investments in alternative energy partnerships | (36) | 1,618 | 1,043 | 1,582 | 1,201 |
Reversal of loan repurchase reserves | (808) | (11) | (490) | (819) | (961) |
Amortization of other intangibles | 462 | 461 | 313 | 923 | 754 |
Other expense | 5,062 | 3,878 | 4,190 | 8,940 | 7,892 |
Total noninterest expense | 49,132 | 51,239 | 48,612 | 100,371 | 95,208 |
Income before income taxes | 24,624 | 27,673 | 36,873 | 52,297 | 104,170 |
Income tax expense | 6,745 | 7,395 | 10,161 | 14,140 | 28,946 |
Net income | 17,879 | 20,278 | 26,712 | 38,157 | 75,224 |
Preferred stock dividends | 0 | 0 | 0 | 0 | 1,420 |
Impact of preferred stock redemption | 0 | 0 | 0 | 0 | 3,747 |
Net income available to common stockholders | $ 17,879 | $ 20,278 | 26,712 | $ 38,157 | 70,057 |
Common Stock | |||||
Noninterest expense | |||||
Preferred stock dividends | 0 | 1,409 | |||
Impact of preferred stock redemption | $ 0 | $ 3,718 | |||
Earnings per share: | |||||
Basic (in dollars per share) | $ 0.31 | $ 0.34 | $ 0.44 | $ 0.65 | $ 1.13 |
Diluted (in dollars per share) | 0.31 | 0.34 | $ 0.43 | 0.65 | $ 1.13 |
Class B Common Stock | |||||
Noninterest expense | |||||
Preferred stock dividends | $ 0 | $ 11 | |||
Impact of preferred stock redemption | $ 0 | $ 29 | |||
Earnings per share: | |||||
Basic (in dollars per share) | 0.31 | 0.34 | $ 0.44 | 0.65 | $ 1.13 |
Diluted (in dollars per share) | $ 0.31 | $ 0.34 | $ 0.44 | $ 0.65 | $ 1.13 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 17,879 | $ 20,278 | $ 26,712 | $ 38,157 | $ 75,224 |
Unrealized loss on available-for-sale securities: | |||||
Unrealized loss arising during the period | (5,215) | (3,926) | (15,113) | (9,141) | (42,026) |
Reclassification adjustment for gain included in net income | 0 | 0 | 0 | 0 | (11) |
Total change in unrealized loss on available-for-sale securities | (5,215) | (3,926) | (15,113) | (9,141) | (42,037) |
Unrealized gain (loss) arising during the period | 5,764 | (6,146) | 0 | (382) | 0 |
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity | 182 | 180 | 226 | 362 | 235 |
Total other comprehensive income (loss) | 731 | (9,892) | (14,887) | (9,161) | (41,802) |
Comprehensive income | $ 18,610 | $ 10,386 | $ 11,825 | $ 28,996 | $ 33,422 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock Voting | Common Stock Class B Non-Voting | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2021 | $ 1,065,290 | $ 94,956 | $ 646 | $ 5 | $ 854,873 | $ 147,894 | $ (40,827) | $ 7,743 |
Comprehensive income: | ||||||||
Net income | 75,224 | 75,224 | ||||||
Other comprehensive loss, net | (41,802) | (41,802) | ||||||
Issuance of common stock | 0 | 1 | (1) | |||||
Redemption of preferred stock | (98,703) | (94,956) | (3,747) | |||||
Purchase of shares of treasury stock | (43,186) | (43,186) | ||||||
Share-based compensation expense | 2,767 | 2,767 | ||||||
Restricted stock surrendered due to employee tax liability | (1,560) | (1,560) | ||||||
Shares purchased under the Dividend Reinvestment Plan | (60) | 0 | (60) | |||||
Dividends declared | (7,420) | (7,420) | ||||||
Preferred stock dividends | (1,420) | (1,420) | ||||||
Ending Balance at Jun. 30, 2022 | 949,130 | 0 | 647 | 5 | 856,079 | 210,471 | (84,013) | (34,059) |
Beginning Balance at Mar. 31, 2022 | 979,009 | 646 | 5 | 855,198 | 187,457 | (45,125) | (19,172) | |
Comprehensive income: | ||||||||
Net income | 26,712 | 26,712 | ||||||
Other comprehensive loss, net | (14,887) | (14,887) | ||||||
Issuance of common stock | 0 | 1 | (1) | |||||
Purchase of shares of treasury stock | (38,888) | (38,888) | ||||||
Share-based compensation expense | 1,482 | 1,482 | ||||||
Restricted stock surrendered due to employee tax liability | (600) | (600) | ||||||
Shares purchased under the Dividend Reinvestment Plan | (30) | (30) | ||||||
Dividends declared | (3,668) | (3,668) | ||||||
Ending Balance at Jun. 30, 2022 | 949,130 | 0 | 647 | 5 | 856,079 | 210,471 | (84,013) | (34,059) |
Beginning Balance at Dec. 31, 2022 | 959,618 | 0 | 651 | 5 | 866,478 | 248,988 | (115,907) | (40,597) |
Comprehensive income: | ||||||||
Net income | 20,278 | |||||||
Other comprehensive loss, net | (9,892) | |||||||
Ending Balance at Mar. 31, 2023 | 958,907 | 653 | 5 | 866,306 | 263,524 | (121,092) | (50,489) | |
Beginning Balance at Dec. 31, 2022 | 959,618 | 0 | 651 | 5 | 866,478 | 248,988 | (115,907) | (40,597) |
Comprehensive income: | ||||||||
Net income | 38,157 | 38,157 | ||||||
Other comprehensive loss, net | (9,161) | (9,161) | ||||||
Issuance of common stock | 0 | 3 | (3) | |||||
Purchase of shares of treasury stock | (21,363) | (21,363) | ||||||
Share-based compensation expense | 3,181 | 3,181 | ||||||
Restricted stock surrendered due to employee tax liability | (1,663) | (1) | (1,662) | |||||
Shares purchased under the Dividend Reinvestment Plan | (189) | (189) | ||||||
Dividends declared | (11,526) | (11,526) | ||||||
Preferred stock dividends | 0 | 0 | ||||||
Ending Balance at Jun. 30, 2023 | 957,054 | 0 | 653 | 5 | 867,994 | 275,430 | (137,270) | (49,758) |
Beginning Balance at Mar. 31, 2023 | 958,907 | 653 | 5 | 866,306 | 263,524 | (121,092) | (50,489) | |
Comprehensive income: | ||||||||
Net income | 17,879 | 17,879 | ||||||
Other comprehensive loss, net | 731 | 731 | ||||||
Purchase of shares of treasury stock | (16,178) | (16,178) | ||||||
Share-based compensation expense | 1,726 | 1,726 | ||||||
Restricted stock surrendered due to employee tax liability | (38) | 0 | (38) | |||||
Shares purchased under the Dividend Reinvestment Plan | (93) | (93) | ||||||
Dividends declared | (5,880) | (5,880) | ||||||
Ending Balance at Jun. 30, 2023 | $ 957,054 | $ 0 | $ 653 | $ 5 | $ 867,994 | $ 275,430 | $ (137,270) | $ (49,758) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Shares repurchased (in shares) | 1,348,545 | 2,113,176 | 1,759,491 | 2,328,726 |
Dividends declared, per common share (in dollars per share) | $ 0.10 | $ 0.06 | $ 0.20 | $ 0.12 |
Shares purchased under the Dividend Reinvestment Plan | $ 93 | $ 30 | $ 189 | $ 60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 38,157 | $ 75,224 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for (reversal of) credit losses | 3,900 | (31,542) |
Reversal of loan repurchase reserves | (819) | (961) |
Depreciation on premises and equipment | 7,345 | 7,920 |
Amortization of other intangibles | 923 | 754 |
Amortization of debt issuance costs | 864 | 837 |
Net amortization of premium on securities | 184 | 587 |
Net (accretion) amortization of deferred loan costs (fees) and purchased premiums (discounts) | 684 | 571 |
Deferred income tax expense | 1,669 | 975 |
Bank owned life insurance income | (1,851) | (1,606) |
Share-based compensation expense | 3,181 | 2,767 |
Income (loss) from interest rate swaps | 14 | (185) |
Loss on investments in alternative energy partnerships and affordable housing investments | 4,520 | 3,456 |
Net gain on sale of securities available-for-sale | 0 | (16) |
Gain on redemption of senior notes | (80) | 0 |
Gain on sale-leaseback of branch | 0 | (771) |
Loss on disposal of property and equipment | 0 | 8 |
Repurchase of mortgage loans | (609) | (1,262) |
Proceeds from sales of and principal collected on loans held-for-sale | 346 | 0 |
Change in accrued interest receivable and other assets | (15,319) | 26,514 |
Change in accrued interest payable and other liabilities | 7,327 | (8,122) |
Net cash provided by operating activities | 50,436 | 75,148 |
Cash flows from investing activities: | ||
Proceeds from sales of securities available-for-sale | 0 | 17,645 |
Proceeds from maturities and calls of securities available-for-sale | 20,000 | 38,500 |
Purchases of securities available-for-sale | (101,740) | (15,000) |
Proceeds from principal repayments of securities held-to-maturity and available-for-sale | 14,613 | 20,495 |
Loan originations and principal collections, net | 9,277 | 474,252 |
Purchases of loans | (61,420) | (641,556) |
Redemption of FHLB stock | 30,543 | 0 |
Purchases of FHLB and other bank stock | (33,732) | (6,857) |
Purchase of mortgage servicing rights | 0 | (20,563) |
Purchases of premises and equipment | (5,016) | (1,381) |
Proceeds from sale-leaseback of branch | 0 | 2,400 |
Funding of equity investments | (3,597) | (3,950) |
Decrease in investments in alternative energy partnerships | 717 | 1,156 |
Net cash used in investing activities | (130,355) | (134,859) |
Cash flows from financing activities: | ||
Net (decrease) increase in deposits | (249,777) | 119,248 |
Net increase in short-term FHLB advances and FRB borrowings | 320,000 | 35,000 |
Proceeds from FHLB long-term advances and FRB borrowings | 100,000 | 0 |
Net increase in other borrowings | 0 | 73,000 |
Redemption of preferred stock | 0 | (98,703) |
Redemption of long term debt | (920) | 0 |
Purchase of treasury stock | (21,363) | (43,186) |
Purchase of stock surrendered to pay tax liability | (1,662) | (1,560) |
Dividends paid on preferred stock | 0 | (1,727) |
Dividends paid on common stock | (11,526) | (7,420) |
Net cash provided by financing activities | 134,752 | 74,652 |
Net change in cash and cash equivalents | 54,833 | 14,941 |
Cash and cash equivalents at beginning of period | 228,896 | 228,123 |
Cash and cash equivalents at end of period | 283,729 | 243,064 |
Supplemental cash flow information | ||
Interest paid on deposits and borrowed funds | 71,734 | 16,574 |
Income taxes paid | 0 | 9,692 |
Supplemental disclosure of non-cash activities | ||
Transfer from loans to other real estate owned, net | 882 | 0 |
Reclassification of securities available-for-sale to held-to-maturity | 0 | 329,416 |
Operating lease right-of-use assets received in exchange for lease liabilities | 1,633 | 1,253 |
Commitments to fund low income housing tax credit investments | 0 | 7,000 |
Goodwill adjustments for purchase accounting | $ 0 | $ 826 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Banc of California, Inc., a Maryland corporation, was incorporated in March 2002 and serves as the holding company for its wholly owned subsidiary, Banc of California, National Association (the “Bank”), a California-based bank. When we refer to the “parent” or the “holding company", we are referring to Banc of California, Inc., the parent company, on a stand-alone basis. When we refer to “we,” “us,” “our,” or the “Company”, we are referring to Banc of California, Inc. and its consolidated subsidiaries including the Bank, collectively. We are regulated as a bank holding company by the FRB and the Bank operates under a national bank charter issued by the Office of the Comptroller of the Currency (“OCC”), the Bank’s primary regulator. The Bank is a member of the Federal Home Loan Bank (“FHLB”) system, and maintains insurance on deposit accounts with the Federal Deposit Insurance Corporation (“FDIC”). The Bank offers a variety of financial services to meet the banking and financial needs of the communities it serves, with operations conducted through 33 offices including 27 full-service branches located throughout Southern California as of June 30, 2023. Basis of Presentation: The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Article 10 of SEC Regulation S-X and other SEC rules and regulations for reporting on the Quarterly Report on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles (“GAAP”) are not included herein. These interim statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2022 filed by us with the SEC. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, comprehensive income (loss), total assets or total shareholders’ equity previously reported. In the opinion of management of the Company, the accompanying unaudited interim consolidated financial statements reflect all of the adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial condition and consolidated results of operations as of the dates and for the periods presented. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Principles of Consolidation: The accompanying unaudited consolidated financial statements include the accounts of the Company and its consolidated subsidiaries as of June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and June 30, 2022. Significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its then wholly-owned subsidiaries. Significant Accounting Policies: The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the banking industry. We have not made any changes in our significant accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC, except for those described below, which reflect a new accounting policy adopted and the impact of the adoption of ASU 2022-02: Derivative Instruments - Cash Flow Hedge : The Company applies hedge accounting for certain derivative instruments used to manage interest rate risk. A cash flow hedge is a derivative instrument used to manage the variability in future expected cash flows that would otherwise be impacted by movements in interest rates. To quality for hedge accounting, the cash flow hedge must be highly effective at reducing the risk associated with the hedged exposure. The effectiveness of the hedging relationship is documented at inception and is monitored at least quarterly through the life of the transaction. A cash flow hedge that is designated as highly effective is carried at fair value with the change in fair value included in the assessment of hedge effectiveness recorded in other comprehensive income (loss) (“AOCI”) and subsequently recognized in earnings in the same period that the hedged forecasted transaction affects earnings. At that time, the amount reclassified from AOCI is presented in the same income statement line item in which the hedged transaction is reported (interest income or expense). If the cash flow hedge becomes ineffective, the change in fair value is reclassified from AOCI to earnings. Loan Modifications to Borrowers Experiencing Financial Difficulty: Prior to the adoption of ASU 2022-02, we accounted for the modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a troubled debt restructuring (“TDR”). Effective January 1, 2023, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Loans that were considered a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the superseded TDR accounting guidance until the loan is paid off, liquidated, or subsequently modified. Since adoption of ASU 2022-02 on January 1, 2023, we have evaluated all loan modifications under ASC 310-20 to determine whether a modification made to a borrower results in a new loan or is a continuation of the existing loan. Use of Estimates in the Preparation of Financial Statements: The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and disclosures provided, and actual results could differ. The allowance for credit losses (“ACL”) (which includes the allowance for loan losses (“ALL”) and the reserve for unfunded noncancellable loan commitments (“RUC”)), loan repurchase reserve, realization of deferred tax assets, the fair value of assets and liabilities acquired in business combinations and related purchase price allocation, the valuation of goodwill and other intangible assets, other derivatives, hypothetical liquidation at book value (“HLBV”) of investments in alternative energy partnerships, and the fair value measurement of financial instruments are particularly subject to change and such change could have a material effect on the consolidated financial statements. Recently Adopted Accounting Guidance: In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments—Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures , which addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (“ASU 2016-13”) that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for TDRs by creditors that have adopted the CECL model and enhances the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted ASU 2022-02 on January 1, 2023 and the impact of adoption did not have a material effect on our consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted : In March 2023, the FASB issued ASU 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”) , which permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, which was previously allowed only for low-income housing tax credit (“LIHTC”) investments, if certain conditions are met. ASU 2023-02 is effective for fiscal years beginning after December 15, 2023, and including interim periods within those fiscal years. The amendment must be applied on either a modified retrospective or a retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures, including assessing eligibility to apply the updated guidance to our investments in alternative energy partnerships currently accounted for using the HLBV method of the equity method of accounting. |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS Fair Value Hierarchy ASC 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value: • Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2: Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured on a Recurring Basis Securities Available-for-Sale (“AFS”): The fair values of AFS securities are generally determined by quoted market prices in active markets, if available (Level 1). If quoted market prices are not available, we primarily employ independent pricing services that utilize pricing models to calculate fair value. Such fair value measurements consider observable data such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and respective terms and conditions for debt instruments (Level 2). We adhere to established processes to monitor the pricing services’ assumptions and challenge the valuations that appear unusual or unexpected. Multiple quotes or prices may be obtained in this process and we determine which fair value is most appropriate based on market information and analysis. Quotes obtained through this process are generally non-binding. We follow established procedures to ensure that assets and liabilities are properly classified in the fair value hierarchy. Level 2 securities include SBA loan pool securities, U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities, non-agency residential mortgage-backed securities, non-agency commercial mortgage-backed securities, collateralized loan obligations, and corporate debt securities. When a market is illiquid or there is a lack of transparency around the inputs to valuation, including at least one unobservable input, the securities are classified as Level 3 and reliance is placed upon internally developed models and management’s judgment and evaluation for valuation. Derivative Assets and Liabilities: Cash Flow Hedge. We have entered into pay-fixed, receive-variable interest rate swap contracts with institutional counterparties to hedge against variability in cash flows attributable to interest rate risk caused by changes in interest rates on our deposits and borrowings. We estimate the fair value of these contracts based on inputs from a third-party pricing model, which incorporates such factors as the Treasury curve, SOFR rates, and the pay rate on the interest rate swaps. The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps is classified as Level 2. Interest Rate Swaps. We offer interest rate swap products to certain loan clients to allow them to hedge the risk of rising interest rates on their variable rate loans. We originate a variable rate loan and enter into a variable-to-fixed interest rate swap with the client. We also enter into an offsetting swap with a correspondent bank. These back-to-back agreements are intended to offset each other and allow us to originate a variable rate loan while providing a contract for fixed interest payments for the client. The net cash flow for us is equal to the interest income received from a variable rate loan originated with the client plus a fee. The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps is classified as Level 2. Foreign Exchange Contracts. We offer short-term foreign exchange contracts to customers to purchase and/or sell foreign currencies at set rates in the future. These products allow customers to hedge the foreign exchange rate risk of their deposits and loans denominated in foreign currencies. In conjunction with these products, we also enter into offsetting back-to-back contracts with institutional counterparties to hedge our foreign exchange rate risk. These back-to-back contracts are intended to offset each other and allow us to offer our customers foreign exchange products. The fair value of both of these offsetting asset and liability instruments is based on the change in the underlying foreign exchange rate. We are subject to counterparty risk in the event our customers or institutional counterparties default under these contracts. Given the short-term nature of the contracts, the counterparties’ credit risks are considered nominal and typically result in no adjustments to the valuation of the short-term foreign exchange contracts. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of these contracts is classified as Level 2. The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2023 Assets Securities available-for-sale: SBA loan pools securities $ 9,215 $ — $ 9,215 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 81,708 — 81,708 — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 89,260 — 89,260 — Non-agency residential mortgage-backed securities 111,508 — 111,508 — Collateralized loan obligations 482,831 — 482,831 — Corporate debt securities 147,569 — 147,569 — Derivative assets: Interest rate swaps and foreign exchange contracts (1) 2,199 — 2,199 — Liabilities Derivative liabilities: Cash flow hedges (2) 454 — 454 — Interest rate swaps and foreign exchange contracts (2) 2,172 — 2,172 — December 31, 2022 Assets Securities available-for-sale: SBA loan pools securities $ 11,187 $ — $ 11,187 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,206 — 40,206 — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 93,191 — 93,191 — Municipal securities — — — — Non-agency residential mortgage-backed securities 80,492 — 80,492 — Collateralized loan obligations 476,603 — 476,603 — Corporate debt securities 166,618 — 166,618 — Derivative assets: Interest rate swaps and foreign exchange contracts (1) 2,292 — 2,292 — Liabilities Derivative liabilities: Interest rate swaps and foreign exchange contracts (2) 2,251 — 2,251 — (1) Included in other assets in the consolidated statements of financial condition. (2) Included in accrued expenses and other liabilities in the consolidated statements of financial condition. There were no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2023 and 2022. Assets and Liabilities Measured on a Non-Recurring Basis Individually Evaluated Loans: The fair value of individually evaluated loans with specific allocations of the ACL based on collateral values is generally derived from recent real estate appraisals and automated valuation models (“AVMs”). These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers for differences between the comparable sales and income data available. Such adjustments are typically deemed significant unobservable inputs used for determining fair value and result in a Level 3 classification. Other Real Estate Owned (“OREO”): The fair value of OREO is generally based on recent real estate appraisals, less estimated costs to sell. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers for differences between the comparable sales and income data available. Such adjustments are typically deemed significant unobservable inputs used for determining fair value and result in a Level 3 classification. The following table presents our financial assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2023 Assets Individually evaluated loans: Commercial and industrial $ 756 $ — $ — $ 756 SBA 16 — — 16 Other consumer 93 — — 93 Other real estate owned: Single family residential 882 — — 882 December 31, 2022 Assets Individually evaluated loans: Single family residential mortgage $ 3,600 $ — $ — $ 3,600 Commercial and industrial 7,115 — — 7,115 SBA 3,704 — — 3,704 The following table presents the gains (losses) recognized on assets measured at fair value on a non-recurring basis for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Individually evaluated loans: Single family residential mortgage $ — $ (1) $ (43) $ (340) Commercial and industrial (5,157) (564) (12,300) (1,198) SBA (470) (198) (75) (172) Other consumer (152) (216) (170) (243) Commercial real estate — — (300) — Other real estate owned: Single family residential (165) — (165) — Estimated Fair Values of Financial Instruments The following table presents the carrying amounts and estimated fair values of financial assets and liabilities as of the dates indicated: Carrying Amount Fair Value Measurement Level ($ in thousands) Level 1 Level 2 Level 3 Total June 30, 2023 Financial assets Cash and cash equivalents $ 283,729 $ 283,729 $ — $ — $ 283,729 Securities held-to-maturity 328,405 — 267,045 — 267,045 Securities available-for-sale 922,091 — 922,091 — 922,091 Federal Home Loan Bank and other bank stock 60,281 — 60,281 — 60,281 Loans receivable, net of allowance for credit losses 7,075,323 — — 6,578,187 6,578,187 Accrued interest receivable 35,821 35,821 — — 35,821 Interest rate swaps and foreign exchange contracts 2,199 — 2,199 — 2,199 Financial liabilities Deposits 6,871,076 5,217,484 1,642,237 — 6,859,721 Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings 1,147,997 — 1,116,711 — 1,116,711 Long-term debt 274,121 — 256,378 — 256,378 Cash flow hedges 454 454 454 Interest rate swaps and foreign exchange contracts 2,172 — 2,172 — 2,172 Accrued interest payable 14,791 14,791 — — 14,791 December 31, 2022 Financial assets Cash and cash equivalents $ 228,896 $ 228,896 $ — $ — $ 228,896 Securities held-to-maturity 328,641 — 262,460 — 262,460 Securities available-for-sale 868,297 — 868,297 — 868,297 Federal Home Loan Bank and other bank stock 57,092 — 57,092 — 57,092 Loans receivable, net of allowance for credit losses 7,029,078 — — 6,526,916 6,526,916 Accrued interest receivable 37,942 37,942 — — 37,942 Interest rate swaps and foreign exchange contracts 2,292 — 2,292 — 2,292 Financial liabilities Deposits 7,120,921 5,931,500 1,175,857 — 7,107,357 Advances from Federal Home Loan Bank 727,348 — 699,730 — 699,730 Long-term debt 274,906 — 269,673 — 269,673 Interest rate swaps and foreign exchange contracts 2,251 — 2,251 — 2,251 Accrued interest payable 7,004 7,004 — — 7,004 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following table presents the amortized cost and fair value of the investment securities portfolio as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair June 30, 2023 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 152,843 $ — $ (27,987) $ — $ 124,856 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 61,359 — (11,937) — 49,422 Municipal securities 114,203 — (21,436) — 92,767 Total securities held-to-maturity $ 328,405 $ — $ (61,360) $ — $ 267,045 Securities available-for-sale: SBA loan pool securities $ 9,251 $ 7 $ (43) $ — $ 9,215 U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 82,913 — (1,205) — 81,708 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 95,760 — (6,500) — 89,260 Non-agency residential mortgage-backed securities 122,995 — (11,487) — 111,508 Collateralized loan obligations 490,534 — (7,703) — 482,831 Corporate debt securities 175,796 — (27,191) (1,036) 147,569 Total securities available-for-sale $ 977,249 $ 7 $ (54,129) $ (1,036) $ 922,091 December 31, 2022 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 153,033 $ — $ (29,807) $ — $ 123,226 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 61,404 — (11,946) — 49,458 Municipal securities 114,204 — (24,428) — 89,776 Total securities held-to-maturity $ 328,641 $ — $ (66,181) $ — $ 262,460 Securities available-for-sale: SBA loan pool securities $ 11,241 $ — $ (54) $ — $ 11,187 U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,431 — (225) — 40,206 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 99,075 — (5,884) — 93,191 Non-agency residential mortgage-backed securities 90,832 — (10,340) — 80,492 Collateralized loan obligations 492,203 — (15,600) — 476,603 Corporate debt securities 175,781 32 (9,195) — 166,618 Total securities available-for-sale $ 909,563 $ 32 $ (41,298) $ — $ 868,297 During the first quarter of 2022, certain longer-duration fixed-rate mortgage-backed securities and municipal securities with an amortized cost basis of $346.0 million were transferred from the available-for-sale (“AFS”) portfolio to the held-to-maturity (“HTM”) portfolio. At the time of the transfer, the securities had an unrealized gross loss of $16.6 million, which became part of the securities’ amortized cost basis. This amount, along with the unrealized loss included in accumulated other comprehensive income, is subsequently amortized over the remaining life of the security as an adjustment to its yield using the interest method. As a result, there is no impact on the consolidated statements of operations. At June 30, 2023, the gross unrealized loss included in accumulated other comprehensive income was $15.3 million. At June 30, 2023, our investment securities portfolio consisted of agency securities, municipal securities, mortgage-backed securities (“MBS”), collateralized loan obligations (“CLOs”), and corporate debt securities. The expected maturities of these types of securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Accrued interest receivable on AFS and HTM securities totaled $10.4 million and $9.2 million at June 30, 2023 and December 31, 2022, and is included within other assets in the accompanying consolidated statements of financial condition. At June 30, 2023 and December 31, 2022, there were no holdings of any one issuer, other than U.S. government agency and sponsored enterprises, in an amount greater than 10 percent of our stockholders’ equity. Pledged Securities Investment securities with carrying values of $535.1 million and $356.5 million as of June 30, 2023 and December 31, 2022 were pledged to secure FHLB advances, FRB borrowings, public deposits and for other deposits as required or permitted by law. Securities Available-for-Sale The following table presents proceeds from sales and calls of AFS securities and the associated gross gains and losses realized through earnings upon the sales and calls of AFS securities for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Gross realized gains $ — $ — $ — $ 209 Gross realized losses — — — (193) Net realized gains on sales and calls $ — $ — $ — $ 16 Proceeds from sales and calls $ 20,000 $ 38,500 $ 20,000 $ 56,146 The following table summarizes the AFS investment securities with unrealized losses by security type and length of time in a continuous, unrealized loss position as of the dates indicated: Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses June 30, 2023 Securities available-for-sale: SBA loan pool securities $ — $ — $ 7,461 $ (43) $ 7,461 $ (43) U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 81,708 (1,205) — — 81,708 (1,205) U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 51,780 (767) 37,478 (5,733) 89,258 (6,500) Non-agency residential mortgage-backed securities 71,394 (1,734) 40,114 (9,753) 111,508 (11,487) Collateralized loan obligations 41,278 (481) 441,552 (7,222) 482,830 (7,703) Corporate debt securities 95,031 (10,265) 52,538 (16,926) 147,569 (27,191) Total securities available-for-sale $ 341,191 $ (14,452) $ 579,143 $ (39,677) $ 920,334 $ (54,129) December 31, 2022 Securities available-for-sale: SBA loan pool securities $ 2,260 $ (3) $ 8,927 $ (51) $ 11,187 $ (54) U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,206 (225) — — 40,206 (225) U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 76,441 (2,533) 16,750 (3,351) 93,191 (5,884) Non-agency residential mortgage-backed securities 80,492 (10,340) — — 80,492 (10,340) Collateralized loan obligations 235,936 (7,492) 240,667 (8,108) 476,603 (15,600) Corporate debt securities 159,492 (8,374) 4,180 (821) 163,672 (9,195) Total securities available-for-sale $ 594,827 $ (28,967) $ 270,524 $ (12,331) $ 865,351 $ (41,298) At June 30, 2023, our AFS securities portfolio consisted of 86 securities, of which 85 securities were in an unrealized loss position. At December 31, 2022, our AFS securities portfolio consisted of 77 securities, of which 76 securities were in an unrealized loss position. We monitor our securities portfolio for identification of potential credit impairment. During the three and six months ended June 30, 2023, we recognized a $1.0 million provision for credit losses on three corporate debt securities of other financial institutions that were downgraded to below investment grade by external credit agencies. During the three and six months ended June 30, 2022, there was no provision for credit losses related to AFS or HTM securities. Except for the corporate debt securities noted above, we believe there was no credit impairment and the decline in fair value of our securities since acquisition was attributable to a combination of changes in interest rates and general volatility in market conditions. As of June 30, 2023, we did not have the intent to sell securities in an unrealized loss position and further believe, it is more likely than not, that we will not be required to sell these securities before their anticipated recovery. As of June 30, 2023, 82 of our 85 AFS securities in an unrealized loss position received an investment grade credit rating, and all of our HTM securities in an unrealized loss position received an investment grade credit rating. The following table presents the amortized cost and fair value of the investment securities portfolio as of June 30, 2023, based on the earlier of contractual maturity dates or next repricing date: Held-to-Maturity Available-for-Sale ($ in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Earlier of maturity or next repricing date: Within one year $ — $ — $ 505,106 $ 497,279 One to five years — — 171,438 144,892 Five to ten years 37,339 31,963 42,240 34,914 Greater than ten years 291,066 235,082 258,465 245,006 Total $ 328,405 $ 267,045 $ 977,249 $ 922,091 Contractual maturities may not reflect the actual maturities of the investments. The average lives for MBS and collateralized mortgage obligations (“CMOs”) will likely be shorter than their contractual maturities due to prepayments and amortization. The following table presents the fair value and weighted average yields using amortized cost of the AFS securities portfolio as of June 30, 2023, based on the earlier of contractual maturity dates or next repricing dates: One year or less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total ($ in thousands) Fair Weighted-Average Yield Fair Weighted-Average Yield Fair Weighted-Average Yield Fair Weighted-Average Yield Fair Weighted-Average Yield Securities available-for-sale: SBA loan pool securities $ 9,215 3.87 % $ — — % $ — — % $ — — % $ 9,215 3.87 % U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities — — % — — % — — % 81,708 5.54 % 81,708 5.54 % U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 5,233 5.70 % 7,795 3.61 % 24,442 3.14 % 51,790 5.19 % 89,260 4.45 % Non-agency residential mortgage-backed securities — — % — — % — — % 111,508 3.92 % 111,508 3.92 % Collateralized loan obligations 482,831 6.88 % — — % — — % — — % 482,831 6.88 % Corporate debt securities — — % 137,097 4.82 % 10,472 5.73 % — — % 147,569 4.89 % Total securities available-for-sale $ 497,279 6.81 % $ 144,892 4.76 % $ 34,914 3.95 % $ 245,006 4.70 % $ 922,091 5.77 % The following table presents the amortized cost and weighted average yields using amortized cost of the HTM securities portfolio as of June 30, 2023, based on the earlier of contractual maturity dates or next repricing dates: One year or less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total ($ in thousands) Amortized Weighted-Average Yield Amortized Weighted-Average Yield Amortized Weighted-Average Yield Amortized Weighted-Average Yield Amortized Weighted-Average Yield Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — — % $ — — % $ 9,344 2.52 % $ 143,499 2.70 % $ 152,843 2.69 % U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations — — % — — % — — % 61,359 2.64 % 61,359 2.64 % Municipal securities — — % — — % 27,995 2.32 % 86,208 2.72 % 114,203 2.62 % Total securities held-to-maturity $ — — % $ — — % $ 37,339 2.37 % $ 291,066 2.69 % $ 328,405 2.66 % |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSEShe following table presents the balances in our loan portfolio as of the dates indicated: ($ in thousands) June 30, December 31, Commercial: Commercial and industrial (1) $ 2,000,408 $ 1,845,960 Commercial real estate 1,266,438 1,259,651 Multifamily 1,654,152 1,689,943 SBA 62,898 68,137 Construction 264,684 243,553 Consumer: Single family residential mortgage 1,820,721 1,920,806 Other consumer 86,905 86,988 Total loans $ 7,156,206 $ 7,115,038 Allowance for loan losses (80,883) (85,960) Loans receivable, net $ 7,075,323 $ 7,029,078 (1) Includes warehouse lending balances of $786.1 million and $602.5 million at June 30, 2023 and December 31, 2022. The following table presents the balances of total loans as of the dates indicated: ($ in thousands) June 30, December 31, Unpaid principal balance $ 7,148,929 $ 7,107,897 Unamortized net premiums 16,997 18,319 Unamortized net deferred (fees) costs (1,238) (1,880) Fair value adjustment (1) (8,482) (9,298) Total loans $ 7,156,206 $ 7,115,038 (1) At June 30, 2023, includes $7.4 million related to the acquisition of Pacific Mercantile Bancorp (“PMB”), of which $3.7 million related to purchased credit deteriorated (“PCD”) loans. At December 31, 2022, includes $8.0 million related to the PMB Acquisition, of which $4.1 million related to PCD loans. Credit Quality Indicators We categorize loans into risk categories based on relevant information about the ability of borrowers to repay their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze the associated risks in the current loan portfolio and individually grade each loan for credit risk. This analysis includes all loans delinquent over 60 days and non-homogeneous loans such as commercial and commercial real estate (“CRE”) loans. We use the following definitions for risk ratings: Pass : Loans risk rated “Pass” are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weakness as defined under “Special Mention”, “Substandard” or “Doubtful.” Special Mention : Loans risk rated “Special Mention” have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or of our credit position at some future date. Substandard : Loans risk rated “Substandard” are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or a weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful : Loans risk rated “Doubtful” have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the risk categories for total loans by class of loans and origination year as of June 30, 2023: Term Loans Amortized Cost Basis by Origination Year ($ in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Total June 30, 2023 Commercial: Commercial and industrial Pass $ 50,265 $ 250,300 $ 172,125 $ 54,809 $ 38,087 $ 219,373 $ 1,120,399 $ 17,845 $ 1,923,203 Special mention — 1,568 3,761 — 8,817 9,660 6,800 392 30,998 Substandard — 4,051 135 2,422 301 13,056 14,167 2,716 36,848 Doubtful (1) 3,910 — — 71 — — 5,378 — 9,359 Commercial and industrial 54,175 255,919 176,021 57,302 47,205 242,089 1,146,744 20,953 2,000,408 Commercial real estate Pass 25,752 393,803 342,564 59,987 82,821 343,679 2,265 57 1,250,928 Special mention — — 5,352 — 6,899 — — — 12,251 Substandard — 1,761 — — — 658 — 840 3,259 Doubtful — — — — — — — — — Commercial real estate 25,752 395,564 347,916 59,987 89,720 344,337 2,265 897 1,266,438 Multifamily Pass 23,474 624,664 387,413 153,613 225,130 212,731 3 9,215 1,636,243 Special mention — — — 2,995 — — — — 2,995 Substandard — — — — — 14,914 — — 14,914 Doubtful — — — — — — — — — Multifamily 23,474 624,664 387,413 156,608 225,130 227,645 3 9,215 1,654,152 SBA Pass — 9,288 12,199 3,543 5,787 19,274 326 447 50,864 Special mention — — 676 — — 579 — 1 1,256 Substandard — — — 303 877 8,443 351 502 10,476 Doubtful — — — — — — — 302 302 SBA — 9,288 12,875 3,846 6,664 28,296 677 1,252 62,898 Construction Pass 1,996 96,130 113,770 27,795 — 24,984 9 — 264,684 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Construction 1,996 96,130 113,770 27,795 — 24,984 9 — 264,684 Consumer: Single family residential mortgage Pass — 595,050 768,940 70,311 44,030 302,777 2,445 — 1,783,553 Special mention — — 680 — — 2,321 — — 3,001 Substandard — 9,656 6,607 2,161 — 13,876 1,867 — 34,167 Doubtful — — — — — — — — — Single family residential mortgage — 604,706 776,227 72,472 44,030 318,974 4,312 — 1,820,721 Other consumer Pass 16,210 18,972 13,592 7,650 4,288 15,541 8,696 1,183 86,132 Special mention — — — — — 1 349 52 402 Substandard — — 111 — 122 57 81 — 371 Doubtful — — — — — — — — — Other consumer 16,210 18,972 13,703 7,650 4,410 15,599 9,126 1,235 86,905 Total loans $ 121,607 $ 2,005,243 $ 1,827,925 $ 385,660 $ 417,159 $ 1,201,924 $ 1,163,136 $ 33,552 $ 7,156,206 Total loans Pass $ 117,697 $ 1,988,207 $ 1,810,603 $ 377,708 $ 400,143 $ 1,138,359 $ 1,134,143 $ 28,747 $ 6,995,607 Special mention — 1,568 10,469 2,995 15,716 12,561 7,149 445 50,903 Substandard — 15,468 6,853 4,886 1,300 51,004 16,466 4,058 100,035 Doubtful (1) 3,910 — — 71 — — 5,378 302 9,661 Total loans $ 121,607 $ 2,005,243 $ 1,827,925 $ 385,660 $ 417,159 $ 1,201,924 $ 1,163,136 $ 33,552 $ 7,156,206 ( 1 ) Doubtful loans in origination year 2023 included one commercial and industrial loan that was modified and accounted for as a new loan. The following table presents the risk categories for total loans by class of loans and origination year as of December 31, 2022: Term Loans Amortized Cost Basis by Origination Year ($ in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Total December 31, 2022 Commercial: Commercial and industrial Pass $ 269,367 $ 170,513 $ 62,931 $ 53,001 $ 76,811 $ 164,394 $ 932,464 $ 19,803 $ 1,749,284 Special mention — 19,203 1,042 — 1 11,528 17,142 483 49,399 Substandard 3,833 64 3,002 502 3,630 2,729 23,012 6,501 43,273 Doubtful — — — 4,004 — — — — 4,004 Commercial and industrial 273,200 189,780 66,975 57,507 80,442 178,651 972,618 26,787 1,845,960 Commercial real estate Pass 348,298 363,335 60,564 94,772 155,790 224,213 1,163 61 1,248,196 Special mention — — — — — 1,745 — — 1,745 Substandard — — — — 1 8,799 910 — 9,710 Doubtful — — — — — — — — — Commercial real estate 348,298 363,335 60,564 94,772 155,791 234,757 2,073 61 1,259,651 Multifamily Pass 626,186 390,928 154,636 229,511 109,887 138,063 3 9,307 1,658,521 Special mention — — 2,997 — — — — — 2,997 Substandard — — — — 11,069 17,356 — — 28,425 Doubtful — — — — — — — — — Multifamily 626,186 390,928 157,633 229,511 120,956 155,419 3 9,307 1,689,943 SBA Pass 9,421 15,468 4,009 5,899 1,176 19,090 603 123 55,789 Special mention — — — — 201 598 — 1 800 Substandard — — 320 339 385 9,097 628 779 11,548 Doubtful — — — — — — — — — SBA 9,421 15,468 4,329 6,238 1,762 28,785 1,231 903 68,137 Construction Pass 85,430 98,572 27,704 6,495 — 25,352 — — 243,553 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Construction 85,430 98,572 27,704 6,495 — 25,352 — — 243,553 Consumer: Single family residential mortgage Pass 627,213 797,744 72,658 47,284 89,492 255,520 — — 1,889,911 Special mention 1,716 218 — 1,537 3,378 2,252 — — 9,101 Substandard 3,571 — 2,171 — 8,573 7,479 — — 21,794 Doubtful — — — — — — — — — Single family residential mortgage 632,500 797,962 74,829 48,821 101,443 265,251 — — 1,920,806 Other consumer Pass 23,340 15,986 8,805 5,524 3,363 15,920 10,914 2,747 86,599 Special mention — — — 3 — 19 62 54 138 Substandard — — 56 — 83 31 81 — 251 Doubtful — — — — — — — — — Other consumer 23,340 15,986 8,861 5,527 3,446 15,970 11,057 2,801 86,988 Total loans $ 1,998,375 $ 1,872,031 $ 400,895 $ 448,871 $ 463,840 $ 904,185 $ 986,982 $ 39,859 $ 7,115,038 Total loans Pass $ 1,989,255 $ 1,852,546 $ 391,307 $ 442,486 $ 436,519 $ 842,552 $ 945,147 $ 32,041 $ 6,931,853 Special mention 1,716 19,421 4,039 1,540 3,580 16,142 17,204 538 64,180 Substandard 7,404 64 5,549 841 23,741 45,491 24,631 7,280 115,001 Doubtful — — — 4,004 — — — — 4,004 Total loans $ 1,998,375 $ 1,872,031 $ 400,895 $ 448,871 $ 463,840 $ 904,185 $ 986,982 $ 39,859 $ 7,115,038 Past Due Loans The following table presents the aging of the recorded investment in past due loans, excluding accrued interest receivable (which is not considered to be material), by class of loans as of the dates indicated: ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total June 30, 2023 Commercial: Commercial and industrial 1,430 4,442 16,631 22,503 1,977,905 2,000,408 Commercial real estate 2,047 831 1,760 4,638 1,261,800 1,266,438 Multifamily — 1,124 — 1,124 1,653,028 1,654,152 SBA 735 247 9,193 10,175 52,723 62,898 Construction — — — — 264,684 264,684 Consumer: Single family residential mortgage 43,956 9,466 12,504 65,926 1,754,795 1,820,721 Other consumer 119 349 81 549 86,356 86,905 Total $ 48,287 $ 16,459 $ 40,169 $ 104,915 $ 7,051,291 $ 7,156,206 December 31, 2022 Commercial: Commercial and industrial 4,002 481 13,833 18,316 1,827,644 1,845,960 Commercial real estate 311 — 910 1,221 1,258,430 1,259,651 Multifamily — — — — 1,689,943 1,689,943 SBA 287 — 10,299 10,586 57,551 68,137 Construction — — — — 243,553 243,553 Consumer: Single family residential mortgage 36,338 5,068 19,431 60,837 1,859,969 1,920,806 Other consumer 163 16 81 260 86,728 86,988 Total $ 41,101 $ 5,565 $ 44,554 $ 91,220 $ 7,023,818 $ 7,115,038 Nonaccrual Loans The following table presents nonaccrual loans as of the dates indicated: June 30, 2023 December 31, 2022 ($ in thousands) Total Nonaccrual Loans with no ACL Total Nonaccrual Loans with no ACL Nonaccrual loans Commercial: Commercial and industrial $ 21,228 $ 10,824 $ 22,613 $ 10,959 Commercial real estate 2,600 2,600 910 910 SBA 9,611 9,502 10,417 5,613 Consumer: Single family residential mortgage 33,496 33,495 21,116 17,187 Other consumer 371 260 195 195 Total nonaccrual loans $ 67,306 $ 56,681 $ 55,251 $ 34,864 At June 30, 2023 and December 31, 2022, there were no loans that were past due 90 days or more and still accruing. Allowance for Credit Losses - Loans The ACL methodology uses a nationally recognized, third-party model that includes many assumptions based on historical and peer loss data, current loan portfolio risk profile including risk ratings, and economic forecasts including macroeconomic variables released by the model provider during June 2023. The published forecasts consider the Federal Reserve’s monetary policy, labor market constraints, inflation levels, global oil prices and changes in real estate values, among other factors. The ACL also incorporates qualitative factors to account for certain loan portfolio characteristics that are not taken into consideration by the third-party model including underlying strengths and weaknesses in various segments of the loan portfolio. As is the case with all estimates, the ACL is expected to be impacted in future periods by economic volatility, changing economic forecasts, underlying model assumptions, and asset quality metrics, all of which may be better or worse than current estimates. The ACL process involves subjective and complex judgments as well as adjustments for numerous factors including those described in the federal banking agencies’ joint interagency policy statement on ALL, which include underwriting experience and collateral value changes, among others. The RUC is established to cover the current expected credit losses for the estimated level of funding of these loan commitments, except for unconditionally cancellable commitments for which no reserve is required under ASC 326. At June 30, 2023 and December 31, 2022, the reserve for unfunded loan commitments was $4.0 million and $5.3 million and was included in accrued expenses and other liabilities on the consolidated statements of financial condition. The following table presents a summary of activity in the ACL for the periods indicated: Three Months Ended June 30, ($ in thousands) 2023 2022 Allowance Reserve for Unfunded Loan Commitments Allowance Allowance Reserve for Unfunded Loan Commitments Allowance Balance at beginning of period $ 84,560 $ 4,805 $ 89,365 $ 93,226 $ 5,405 $ 98,631 Charge-offs (5,667) — (5,667) (494) — (494) Recoveries 326 — 326 1,561 — 1,561 Net (charge-offs) recoveries (5,341) — (5,341) 1,067 — 1,067 Provision for (reversal of) credit losses 1,664 (800) 864 (500) 500 — Balance at end of period $ 80,883 $ 4,005 $ 84,888 $ 93,793 $ 5,905 $ 99,698 Six Months Ended June 30, ($ in thousands) 2023 2022 Allowance Reserve for Unfunded Loan Commitments Allowance Allowance Reserve for Unfunded Loan Commitments Allowance Balance at beginning of period $ 85,960 $ 5,305 $ 91,265 $ 92,584 $ 5,605 $ 98,189 Charge-offs (9,616) — (9,616) (725) — (725) Recoveries 375 — 375 33,776 — 33,776 Net (charge-offs) recoveries (9,241) — (9,241) 33,051 — 33,051 Provision for (reversal of) credit losses 4,164 (1,300) 2,864 (31,842) 300 (31,542) Balance at end of period $ 80,883 $ 4,005 $ 84,888 $ 93,793 $ 5,905 $ 99,698 During the six months ended June 30, 2022, total recoveries included $31.3 million related to a recovery from the settlement of a loan previously charged-off in 2019. This recovery resulted in a reversal of provision for credit losses during the same period. Accrued interest receivable on loans receivable, net totaled $25.1 million and $28.6 million at June 30, 2023 and December 31, 2022, and is included within other assets in the accompanying consolidated statements of financial condition. Accrued interest receivable is excluded from the allowance of credit losses. The following table presents the activity and balance in the ALL as of or for the three and six months ended June 30, 2023: ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Single Family Residential Mortgage Other Consumer Total ALL: Three Months Ended June 30, 2023: Balance at March 31, 2023 $ 32,644 $ 16,119 $ 15,038 $ 2,097 $ 6,425 $ 11,481 $ 756 $ 84,560 Charge-offs (4,450) — — (1,081) — — (136) (5,667) Recoveries 22 — — 286 — 1 17 326 Net (charge-offs) recoveries (4,428) — — (795) — 1 (119) (5,341) Provision for (reversal of) credit losses - loans 4,607 (352) (341) 85 (372) (1,964) 1 1,664 Balance at June 30, 2023 $ 32,823 $ 15,767 $ 14,697 $ 1,387 $ 6,053 $ 9,518 $ 638 $ 80,883 Six Months Ended June 30, 2023: Balance at December 31, 2022 $ 34,156 $ 15,977 $ 14,696 $ 2,648 $ 5,850 $ 12,050 $ 583 $ 85,960 Charge-offs (7,711) (300) — (1,081) — (372) (152) (9,616) Recoveries 39 — — 310 — 2 24 375 Net (charge-offs) recoveries (7,672) (300) — (771) — (370) (128) (9,241) Provision for (reversal of) credit losses - loans 6,339 90 1 (490) 203 (2,162) 183 4,164 Balance at June 30, 2023 $ 32,823 $ 15,767 $ 14,697 $ 1,387 $ 6,053 $ 9,518 $ 638 $ 80,883 The following table presents the activity and balance in the ALL as of or for the three and six months ended June 30, 2022: ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Single Family Residential Mortgage Other Consumer Total ALL: Three Months Ended June 30, 2022: Balance at March 31, 2022 $ 39,967 $ 16,490 $ 15,337 $ 3,041 $ 6,268 $ 11,029 $ 1,094 $ 93,226 Charge-offs (138) — — (139) — — (217) (494) Recoveries 1,400 — — 3 — 154 4 1,561 Net recoveries (charge-offs) 1,262 — — (136) — 154 (213) 1,067 Provision for (reversal of) credit losses - loans 184 (748) 341 128 (2,013) 1,622 (14) (500) Balance at June 30, 2022 $ 41,413 $ 15,742 $ 15,678 $ 3,033 $ 4,255 $ 12,805 $ 867 $ 93,793 Six Months Ended June 30, 2022: Balance at December 31, 2021 $ 33,557 $ 21,727 $ 17,893 $ 3,017 $ 5,622 $ 9,608 $ 1,160 $ 92,584 Charge-offs (320) — — (152) — (10) (243) (725) Recoveries 32,817 — — 761 — 192 6 33,776 Net recoveries (charge-offs) 32,497 — — 609 — 182 (237) 33,051 (Reversal of) provision for credit losses - loans (24,641) (5,985) (2,215) (593) (1,367) 3,015 (56) (31,842) Balance at June 30, 2022 $ 41,413 $ 15,742 $ 15,678 $ 3,033 $ 4,255 $ 12,805 $ 867 $ 93,793 The following table presents the gross charge-offs by class of loans and origination year as of June 30, 2023: Gross Charge-offs ($ in thousands) 2023 2022 2021 2020 2019 Prior Total Three Months Ended June 30, 2023 Commercial: Commercial and industrial $ — $ (4,118) $ (332) $ — $ — $ — $ (4,450) SBA — — (64) — — (1,017) (1,081) Consumer: Other consumer — — — (59) — (77) (136) Total loans $ — $ (4,118) $ (396) $ (59) $ — $ (1,094) $ (5,667) Six Months Ended June 30, 2023 Commercial: Commercial and industrial $ — $ (5,717) $ (1,085) $ — $ — $ (909) $ (7,711) Commercial real estate — — — — — (300) (300) SBA — — (64) — — (1,017) (1,081) Consumer: Single family residential mortgage — — — (372) — — (372) Other consumer — (16) — (59) — (77) (152) Total loans $ — $ (5,733) $ (1,149) $ (431) $ — $ (2,303) $ (9,616) Collateral Dependent Loans A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the operation or sale of the collateral. Collateral dependent loans are evaluated individually and the ALL is determined based on the amount by which amortized costs exceed the estimated fair value of the collateral, adjusted for estimated selling costs. Collateral dependent loans consisted of the following as of the dates indicated: June 30, 2023 Real Estate ($ in thousands) Commercial Residential Business Assets Automobile Total Commercial: Commercial and industrial $ — $ — $ 15,538 $ 62 $ 15,600 Commercial real estate 2,600 — — — 2,600 SBA 18 2,948 6,645 — 9,611 Consumer: Single family residential mortgage — 33,496 — — 33,496 Other consumer — 81 — 290 371 Total loans $ 2,618 $ 36,525 $ 22,183 $ 352 $ 61,678 December 31, 2022 Real Estate ($ in thousands) Commercial Residential Business Assets Automobile Total Commercial: Commercial and industrial $ — $ — $ 18,392 $ — $ 18,392 Commercial real estate 910 — — — 910 SBA 23 4,702 5,691 — 10,416 Consumer: Single family residential mortgage — 21,262 — — 21,262 Other consumer — 81 — 113 194 Total loans $ 933 $ 26,045 $ 24,083 $ 113 $ 51,174 Loan Modifications to Borrowers Experiencing Financial Difficulty Loans modified for borrowers experiencing financial difficulty consisted of the following as of the dates indicated: ($ in thousands) Commercial and industrial Single family residential mortgage Total June 30, 2023 Interest rate reduction: Amortized cost basis $ — $ 1,071 $ 1,071 % of total class of loans — % 0.1 % — % Term extension: Amortized cost basis $ — $ 286 $ 286 % of total class of loans — % — % — % Combination - principal reduction and payment delays: Amortized cost basis $ 3,910 $ — $ 3,910 % of total class of loans 0.2 % — % 0.1 % Total amortized cost basis $ 3,910 $ 1,357 $ 5,267 Percentage of total class of loans 0.2 % 0.1 % 0.1 % The following table presents the aging of loans modified to borrowers experiencing financial difficulty at June 30, 2023: ($ in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Total June 30, 2023 Commercial: Commercial and industrial $ — $ 3,910 $ — $ 3,910 $ — $ 3,910 Consumer: Single family residential mortgage — — — — 1,357 1,357 $ — $ 3,910 $ — $ 3,910 $ 1,357 $ 5,267 There were no loan modifications made to borrowers experiencing financial difficulty during the quarter ended June 30, 2023 that subsequently defaulted. Troubled Debt Restructurings (for modifications to borrowers experiencing financial difficulty prior to January 1, 2023) At June 30, 2023 and December 31, 2022, we had 10 and 15 loans classified as TDRs, with an aggregate balance of $8.0 million and $16.1 million. During the six months ended June 30, 2023 a $3.9 million commercial and industrial (“C&I”) loan that was restructured during 2022 was modified and accounted for as a new loan. Additionally, $4.0 million relating to two commercial relationships were paid down during this same period. Accruing TDRs were $2.5 million and nonaccrual TDRs were $5.5 million at June 30, 2023, compared to accruing TDRs of $2.7 million and nonaccrual TDRs of $13.4 million at December 31, 2022. Purchases, Sales, and Transfers From time to time, we purchase and sell loans in the secondary market. There were no loans purchased during the three months ended June 30, 2023. During the six months ended June 30, 2023, we purchased loans aggregating $61.4 million. During the three and six months ended June 30, 2022, we purchased loans aggregating $277.2 million and $641.5 million. There were no loans transferred from held for investment to loans held-for-sale, and there were no sales of loans for the three and six months ended June 30, 2023 and 2022. Non-Traditional Mortgage (“NTM”) Loans We no longer originate SFR loans, however we have purchased and may continue to purchase pools of loans that include NTM loans such as interest only loans with maturities of up to 40 years and flexible initial repricing dates, ranging from 1 to 10 years, and periodic repricing dates through the life of the loan. NTM loans are included in our SFR mortgage portfolio and are comprised primarily of interest only loans. As of June 30, 2023 and December 31, 2022, the NTM loans totaled $811.7 million, or 11.3% of total loans, and $862.3 million, or 12.1% of total loans. The total NTM portfolio decreased by $50.7 million, or 5.9% during the six months ended June 30, 2023. The decrease was due to principal paydowns and payoffs. At June 30, 2023 and December 31, 2022, nonperforming NTM loans totaled $13.3 million and $3.0 million. Non-Traditional Mortgage Performance Indicators |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair values. At June 30, 2023 and December 31, 2022, we had goodwill of $114.3 million. The following table presents changes in the carrying amount of goodwill for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Goodwill, beginning of period $ 114,312 $ 95,127 $ 114,312 $ 94,301 Goodwill adjustments for purchase accounting — — — 826 Goodwill, end of period $ 114,312 $ 95,127 $ 114,312 $ 95,127 The acquisition of Deepstack in the third quarter of 2022 resulted in the recognition of $18.2 million in goodwill. We also adjusted goodwill in the first quarter of 2022 as a result of updates to the initial fair value of core deposit intangibles and finalization of income tax returns related to the acquisition of PMB. We evaluate goodwill for impairment as of October 1 each year, and more frequently if events or circumstances indicate that there may be impairment. We completed our most recent annual goodwill impairment test as of October 1, 2022 and determined that no goodwill impairment existed. For the three and six months ended June 30, 2023, we analyzed indicators related to potential goodwill impairment due to volatility in the financial markets and recent events in the banking sector. Based on this analysis, we did not identify any impairment to goodwill. Other Intangibles Other intangibles are comprised of the following at June 30, 2023 and December 31, 2022: ($ in thousands) June 30, December 31, Core deposit intangibles $ 3,363 $ 3,932 Developed technology 2,357 2,637 Other intangibles 883 957 Total other intangibles $ 6,603 $ 7,526 Other intangibles are amortized over their estimated useful lives and reviewed for impairment at least quarterly. As of June 30, 2023, the weighted average remaining amortization period for core deposit intangibles was approximately 6.3 years. Amortization periods for developed technology and other intangibles acquired in the acquisition of Deepstack have useful lives ranging from 3 to 10 years. The following table presents changes in the carrying amount of other intangibles for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Other intangibles: Balance, beginning of period $ 38,778 $ 34,978 $ 38,778 $ 35,958 Purchase accounting adjustments — — — (980) Balance, end of period 38,778 34,978 38,778 34,978 Accumulated amortization: Balance, beginning of period 31,713 29,988 31,252 29,547 Amortization of other intangibles 462 313 923 754 Balance, end of period 32,175 30,301 32,175 30,301 Other intangibles $ 6,603 $ 4,677 $ 6,603 $ 4,677 The following table presents estimated future amortization expense of other intangibles as of June 30, 2023: ($ in thousands) Remainder of 2023 2024 2025 2026 2027 2028 and After Total Estimated future amortization expense $ 876 $ 1,425 $ 1,107 $ 1,013 $ 811 $ 1,371 $ 6,603 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES, FEDERAL RESERVE BANK BORROWINGS AND OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2023 | |
Federal Home Loan Banks [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES, FEDERAL RESERVE BANK BORROWINGS AND OTHER BORROWINGS | FEDERAL HOME LOAN BANK ADVANCES, FEDERAL RESERVE BANK BORROWINGS AND OTHER BORROWINGS Federal Home Loan Bank (FHLB) Advances The following table presents advances from the FHLB as of the dates indicated: ($ in thousands) June 30, December 31, Fixed rate: Outstanding balance (1) $ 811,000 $ 711,000 Interest rates ranging from 0.64 % 0.64 % Interest rates ranging to 3.70 % 3.70 % Weighted average interest rate 3.04 % 2.97 % Variable rate: Outstanding balance $ — $ 20,000 Weighted average interest rate — % 4.59 % (1) Excludes $3.0 million and $3.7 million of unamortized debt issuance costs at June 30, 2023 and December 31, 2022. As of June 30, 2023, FHLB advances consisted of $611 million in term advances with a weighted average life of 3 years and a weighted average interest rate of 2.91% and $200 million in putable advances with a weighted average life of 4.5 years and a weighted average interest rate of 3.44%. Term advances are payable at maturity date, and advances paid early are subject to a prepayment penalty. The putable advances can be called quarterly until maturity at the option of the FHLB beginning in December 2023. FHLB advances are collateralized by a blanket lien on all real estate loans. As of June 30, 2023, our secured borrowing capacity with the FHLB totaled $2.39 billion, of which the Bank was eligible to borrow an additional $1.16 billion based on qualifying loans with an aggregate unpaid principal balance of $3.47 billion as of that date. The Bank’s investment in the capital stock of the FHLB of San Francisco totaled $25.7 million and $22.6 million at June 30, 2023 and December 31, 2022. Federal Reserve Bank (FRB) Borrowings At June 30, 2023, the Bank had borrowing capacity with the Federal Reserve Bank of San Francisco (the “Federal Reserve”) of $1.45 billion, including the secured borrowing capacity through the FRB Discount Window, Borrower-in-Custody (“BIC”), and Bank Term Funding (“BTFP”) programs. Borrowings under the BIC program are overnight advances with interest chargeable at the primary credit borrowing rate. Borrowings under the BTFP, which was established in March 2023, are for periods up to one year in length, with interest rates based on the one-year overnight index swap (“OIS”) rate plus a spread of 10 basis points. BTFP borrowings are collateralized by eligible investment securities valued at par and provide an additional source of liquidity leveraging high-quality securities. At June 30, 2023, the Bank pledged certain qualifying loans with an unpaid principal balance of $1.40 billion and securities with a carrying value of $515.3 million as collateral for the FRB credit programs. Borrowings from the Federal Reserve through the FRB Discount Window and BIC programs were $340.0 million and zero at June 30, 2023 and December 31, 2022. There were no borrowings under the BTFP at June 30, 2023. The Bank’s investment in capital stock of the Federal Reserve totaled $34.6 million and $34.5 million at June 30, 2023 and December 31, 2022. Other Borrowings The Bank maintained available unsecured federal funds lines with six correspondent banks totaling $290.0 million, with no outstanding borrowings at June 30, 2023 and December 31, 2022. The Bank also has the ability to access unsecured overnight borrowings from various financial institutions through the American Financial Exchange platform ("AFX"). The availability of such unsecured borrowings fluctuates regularly and are subject to the counterparties discretion and totaled $365.0 million and $445.0 million at June 30, 2023 and December 31, 2022. Borrowings from the correspondent banks and AFX totaled zero at June 30, 2023 and December 31, 2022. In December 2022, the holding company renewed its $50.0 million revolving line of credit with another financial institution. The line of credit matures on December 18, 2023 and is subject to certain operational and financial covenants. There were no borrowings under this line of credit at June 30, 2023 and December 31, 2022, and we were in compliance with all covenants. The Bank also maintained repurchase agreements and had no outstanding securities sold under agreements to repurchase at June 30, 2023 and December 31, 2022. Availabilities and terms on repurchase agreements are subject to the counterparties’ discretion and the pledging of additional investment securities. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table presents our long-term debt as of the dates indicated: June 30, 2023 December 31, 2022 ($ in thousands) Interest Maturity Par Unamortized Debt Issuance Cost and Discount Par Unamortized Debt Issuance Cost and Discount Senior notes 5.25% 4/15/2025 $ 174,000 $ (609) $ 175,000 $ (722) Subordinated notes (1) 4.375% 10/30/2030 85,000 (1,797) 85,000 (1,899) PMB Statutory Trust III, junior subordinated debentures SOFR + 3.40% 9/26/2032 7,217 — 7,217 — PMB Capital Trust III, junior subordinated debentures SOFR + 2.00% 10/8/2034 10,310 — 10,310 — Total $ 276,527 $ (2,406) $ 277,527 $ (2,621) (1) The Subordinated Notes bear interest at an initial fixed rate of 4.375% per annum, payable semi-annually in arrears. From and including October 30, 2025 to, but excluding, the maturity date or the date of earlier redemption, the Subordinated Notes bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be 3-Month Term SOFR, plus a spread of 419.5 basis points, payable quarterly in arrears. During the three and six months ended June 30, 2023, we repurchased senior notes with an outstanding balance of $1.0 million at a discount and recognized an $80 thousand gain. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three and six months ended June 30, 2023, income tax expense was $6.7 million and $14.1 million, resulting in an effective tax rate of 27.4% and 27.0%. For the three and six months ended June 30, 2022, income tax expense was $10.2 million and $28.9 million, resulting in an effective tax rate of 27.6% and 27.8%. The effective tax rate for the three and six months ended June 30, 2023 and 2022, differs from the combined federal and state statutory rate for the consolidated company of 28.9% due primarily to various permanent tax differences, tax credits and other discrete tax items that impact our effective tax rate. We account for income taxes by recognizing deferred tax assets and liabilities based upon temporary differences between the amounts for financial reporting purposes and the tax basis of our assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, management will continue to evaluate both positive and negative evidence on a quarterly basis, including considering the four possible sources of future taxable income, such as future reversal of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in prior carryback year(s), and future tax planning strategies. Based on this analysis, management determined, it was more likely than not, that all of the deferred tax assets would be realized; therefore, no valuation allowance was provided against the net deferred tax assets of $64.0 million and $50.5 million at June 30, 2023 and December 31, 2022. ASC 740-10-25 relates to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740-10-25 prescribes a threshold and a measurement process for recognizing in the financial statements a tax position taken or expected to be taken in a tax return and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. We had unrecognized tax benefits of $0.8 million at both June 30, 2023 and December 31, 2022. We do not believe that the unrecognized tax benefits will change materially in the next twelve months. As of June 30, 2023, the total unrecognized tax benefit that, if recognized, would impact the effective tax rate was $0.6 million. At June 30, 2023 and December 31, 2022, we had no accrued interest or penalties. In the event we are assessed interest and/or penalties by federal or state tax authorities, such amounts will be classified in the consolidated financial statements as income tax expense. We are subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. We are no longer subject to examination by U.S. federal taxing authorities for years before 2019. The statute of limitations for the assessment of California franchise taxes has expired for tax years before 2018 (other state income and franchise tax statutes of limitations vary by state). |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies and for certain loan clients to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company recognizes all derivatives on the consolidated balance sheet at fair value in other assets and other liabilities. On the date we enter into a derivative contract, the derivative is designated as either a fair value hedge, cash flow hedge, or a hedge designation is not made as it is a customer-related transaction. When a derivative is designated as a fair value hedge or cash flow hedge, the Company performs an assessment at inception, and, at least quarterly thereafter, to determine the effectiveness of the derivative in offsetting changes in the fair value or cash flows of the hedged items. Cash flow hedge In March 2023, the Company entered into pay-fixed, receive-variable interest-rate swap contracts classified as cash flow hedges with notional amounts aggregating $300.0 million, five year terms and varying maturity dates through 2028. These swap contracts were entered into with institutional counterparties to hedge against variability in cash flows attributable to interest rate risk related to changes in the SOFR benchmark interest rate on a portion of the Company’s variable rate deposits and borrowings. The cash flow hedges were deemed highly effective at inception. The portion of changes in the fair value of the cash flow hedges considered highly effective are recognized in other comprehensive income (loss) until the related cash flows from the hedged item are recognized in earnings. At June 30, 2023, the fair value of the cash flow hedges represent a liability of $0.5 million, of which $0.4 million (net of tax) was included in accumulated other comprehensive loss on the consolidated statements of financial condition. Other interest rate swaps and foreign exchange contracts not designated for hedge accounting During the three and six months ended June 30, 2023, changes in fair value of interest rate swaps on loans and foreign exchange contracts were gains of $10 thousand and losses of $14 thousand and were included in other income on the consolidated statements of operations. During the three and six months ended June 30, 2022, changes in fair value of interest rate swaps on loans and foreign exchange contracts were gains of $82 thousand and $0.2 million. The following table presents the notional amount and fair value of our derivative instruments as of the dates indicated. June 30, 2023 December 31, 2022 ($ in thousands) Notional Amount Fair Notional Amount Fair Derivative assets: Interest rate swaps on loans $ 32,677 $ 2,158 $ 33,694 $ 2,134 Foreign exchange contracts 4,892 41 5,885 158 Total $ 37,569 $ 2,199 $ 39,579 $ 2,292 Derivative liabilities: Cash flow hedges $ 300,000 $ 454 $ — $ — Interest rate swaps on loans 32,677 2,138 33,694 2,107 Foreign exchange contracts 4,892 34 5,885 144 Total $ 337,569 $ 2,626 $ 39,579 $ 2,251 |
EMPLOYEE STOCK COMPENSATION
EMPLOYEE STOCK COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
EMPLOYEE STOCK COMPENSATION | EMPLOYEE STOCK COMPENSATION On May 31, 2018, our stockholders approved the Company’s 2018 Omnibus Stock Incentive Plan (“2018 Omnibus Plan”). The 2018 Omnibus Plan provides that the maximum number of shares available for awards is 4,417,882. As of June 30, 2023, there were 1,901,039 shares available for future awards. Stock-based Compensation Expense The following table presents total stock-based compensation expense and the related tax benefits for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Restricted stock awards and units $ 1,726 $ 1,482 $ 3,181 $ 2,767 Related tax benefits $ 499 $ 428 $ 920 $ 799 Total stock-based compensation expense represents the cost of service-based restricted stock units, performance-based restricted stock units and performance-based restricted stock units with market conditions. At June 30, 2023, unrecognized compensation expense totaled $12.8 million and will be recognized over a weighted average remaining period of 2.5 years. Restricted Stock Awards and Restricted Stock Units We have granted restricted stock awards and restricted stock units to certain employees, officers, and directors. The restricted stock awards and units are measured based on grant-date fair value, which generally reflect the closing price of our stock on the date of grant. For awards containing market conditions, we engage a third party to perform a valuation analysis using a Monte Carlo simulation model to determine grant-date fair value. The restricted stock awards and units fully vest after a specified period (generally ranging from one The following table presents unvested restricted stock awards and restricted stock units activity for the three and six months ended June 30, 2023: Three Months Ended Six Months Ended Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Outstanding at beginning of period 1,450,539 $ 14.85 1,403,245 $ 14.68 Granted (1) 80,395 $ 10.20 374,200 $ 16.07 Vested (2) (51,294) $ 17.94 (283,077) $ 17.39 Forfeited (3) (129,430) $ 20.32 (144,158) $ 13.55 Outstanding at end of period 1,350,210 $ 14.61 1,350,210 $ 14.61 (1) There were zero and 79,784 performance-based shares/units included in shares granted for the three and six months ended June 30, 2023. (2) There were zero and 66,699 performance-based shares/units included in vested shares for the three and six months ended June 30, 2023. (3) The number of forfeited shares included aggregate performance-based shares/units of 113,650 and 124,882 for the three and six months ended June 30, 2023 . Stock Options We have issued stock options to certain employees, officers, and directors. Stock options are issued at the closing market price immediately before the grant date and generally have a three seven market value of the shares acquired at the time of exercise less the exercise price. There were no stock options granted and no unvested stock options as of June 30, 2023 and December 31, 2022. The following tables represents stock option activity for the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 ($ in thousands, except per share data) Number Weighted-Average Exercise Price Per Share Number Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contract Term Aggregate Intrinsic Value Outstanding at beginning of period 14,904 $ 13.05 14,904 $ 13.05 Exercised — $ — — $ — Outstanding at end of period 14,904 $ 13.05 14,904 $ 13.05 1.8 years $ 2 Exercisable at end of period 14,904 $ 13.05 14,904 $ 13.05 1.8 years $ 2 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock We are authorized to issue 50,000,000 shares of preferred stock with par value of $0.01 per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference but generally have no voting rights. All of our shares of preferred stock had a $1,000 per share liquidation preference and there were no preferred shares outstanding since March 2022. The following table summarizes redemptions and repurchases of these depositary shares for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Series E Preferred Stock: Depositary shares repurchased — — — 3,948,080 Preferred Stock retired (shares) — — — 98,702 Consideration paid $ — $ — $ — $ 98,703 Carrying value — — — 94,956 Impact of preferred stock redemption $ — $ — $ — $ 3,747 During the first quarter of 2022, we redeemed all of our outstanding Series E Depositary Shares, resulting in an after-tax charge of $3.7 million in the accompanying consolidated statements of operations. Common Share Repurchase Program On February 13, 2023, we announced our Board of Directors authorized the repurchase of up to $35 million of our common stock. The repurchase authorization expires in February 2024. Purchases may be made in open-market transactions, in block transactions on or off an exchange, in privately negotiated transactions or by other means as determined by our management and in accordance with the regulations of the SEC. The timing of purchases and the number of shares repurchased under the program will depend on a variety of factors including price, trading volume, corporate and regulatory requirements and market conditions. During the three and six months ended June 30, 2023, common stock repurchased under the program totaled 1,348,545 shares and 1,759,491 shares at a weighted average price of $11.85 and $12.02. As of June 30, 2023, the Company had $13.9 million remaining under the current stock repurchase authorization. Change in Accumulated Other Comprehensive (Loss) Income ("AOCI") Our AOCI includes unrealized gain (loss) on AFS securities and cash flow hedges. Changes to AOCI are presented net of the tax effect as a component of stockholders’ equity. Reclassifications from AOCI occur when a security is sold, called or matures and are recorded on the consolidated statements of operations either as a gain or loss. During the first quarter of 2022, we transferred certain AFS securities to HTM. The unrealized loss on such securities at the time of transfer continues to be reported in AOCI and is amortized over the remaining life of the security as a yield adjustment. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in AOCI and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. If a cash flow hedge is terminated or is no longer deemed highly effective, the hedge accounting is ceased and any gain or loss included in AOCI is reclassified into earnings. The following table presents changes to AOCI for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Balance at beginning of period $ (50,489) $ (19,172) $ (40,597) $ 7,743 Unrealized loss on securities available-for-sale: Unrealized loss arising during the period (7,334) (21,016) (12,857) (59,103) Reclassification adjustment from other comprehensive income — — — (16) Total unrealized loss on securities available-for-sale (7,334) (21,016) (12,857) (59,119) Amortization of unrealized loss of available-for-sale securities transferred to held-to-maturity 252 246 505 333 Unrealized gain (loss) on cash flow hedges: Unrealized gain (loss) arising during the period 8,168 — (454) — Tax effect of current period changes (355) 5,883 3,645 16,984 Total changes, net of taxes 731 (14,887) (9,161) (41,802) Balance at end of period $ (49,758) $ (34,059) $ (49,758) $ (34,059) |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES We hold ownership interests in alternative energy partnerships, qualified affordable housing partnerships and other CRA investments and have a variable interest in a multifamily securitization trust. We evaluate our interests in these entities to determine whether they meet the definition of a variable interest entity ("VIE") and whether we are required to consolidate these entities. A VIE is consolidated by its primary beneficiary, which is the party that has both (i) the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) a variable interest that could potentially be significant to the VIE. To determine whether or not a variable interest we hold could potentially be significant to the VIE, we consider both qualitative and quantitative factors regarding the nature, size, and form of our involvement with the VIE. We have determined that our interests in these entities meet the definition of variable interests; however none of the VIE’s meet the criteria for consolidation. Unconsolidated VIEs Alternative Energy Partnerships We invested in certain alternative energy partnerships (limited liability companies) formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits (energy tax credits). These entities were formed to invest in newly established residential and commercial solar leases and power purchase agreements. As a result of our investments, we have the right to certain investment tax credits and tax depreciation benefits (recognized on the flow through income statement method in accordance with ASC 740), and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. While our interest in the alternative energy partnerships meets the definition of a VIE in accordance with ASC 810, we have determined that we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact the economic performance of the entities including operational and credit risk management activities. As we are not the primary beneficiary, we did not consolidate the entities. We use the HLBV method to account for our investments in alternative energy partnerships as an equity investment. Under the HLBV method, an equity method investor determines its share of an investee’s net earnings by comparing its claim on the investee’s book value at the beginning and end of the period, assuming the investee were to liquidate all assets at their U.S. GAAP amounts and distribute the resulting cash to creditors and investors under their respective priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is our share of the earnings or losses from the equity investment for the period. To account for the tax credits earned on investments in alternative energy partnerships, we use the flow-through income statement method. Under this method, the tax credits are recognized as a reduction to income tax expense and the initial book-tax differences in the basis of the investments are recognized as additional tax expense in the year they are earned. Investments in alternative energy partnerships totaled $19.1 million and $21.4 million at June 30, 2023 and December 31, 2022. The following table presents information regarding activity in our alternative energy partnerships for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Return of capital $ 352 $ 582 $ 717 $ 1,156 Gain (loss) on investments in alternative energy partnerships 36 (1,043) (1,582) (1,201) Tax expense (benefit) recognized from HLBV application 10 (301) (457) (347) There were no fundings of alternative energy partnerships or related income tax credits recognized for the three and six months ended June 30, 2023 and 2022. The following table represents the carrying value of the associated unconsolidated assets and liabilities and the associated maximum loss exposure for alternative energy partnerships as of the dates indicated: ($ in thousands) June 30, December 31, Cash $ 2,910 $ 4,110 Equipment, net of depreciation 233,152 237,641 Other assets 10,078 9,838 Total unconsolidated assets $ 246,140 $ 251,589 Total unconsolidated liabilities $ 11,426 $ 11,679 Maximum loss exposure $ 19,111 $ 21,410 The maximum loss exposure that would be absorbed by us in the event that all of the assets in alternative energy partnerships are deemed worthless is $19.1 million, which is our recorded investment amount at June 30, 2023. We believe that the loss exposure on our investments is reduced considering our return on our investment is provided not only by the cash flows of the underlying client leases and power purchase agreements, but also through the tax benefits, including the federal tax credit carryover that resulted from the investments. In addition, our exposure is further limited as the arrangements include a transition manager to support any transition of the solar company sponsor, whose role includes that of the servicer and operation and maintenance provider, in the event the sponsor would be required to be removed from its responsibilities (e.g., bankruptcy, breach of contract, etc.). Qualified Affordable Housing Partnerships - Low Income Housing Tax Credits We invest in limited partnerships that operate qualified affordable housing projects that qualify for LIHTC. The returns on these investments are generated primarily through allocated federal tax credits and other tax benefits. In addition, LIHTC investments contribute to our compliance with the Community Reinvestment Act. These limited partnerships are considered to be VIEs, because either (i) they do not have sufficient equity investment at risk or (ii) the limited partners with equity at risk do not have substantive kick-out rights through voting rights or substantive participating rights over the general partner. As a limited partner, we are not the primary beneficiary because the general partner has the ability to direct the activities of the VIEs that most significantly impact their economic performance. As a result, we do not consolidate these partnerships. The following table presents information regarding balances in LIHTC investments for the periods indicated: ($ in thousands) June 30, December 31, Ending balance (1) $ 42,818 $ 45,726 Aggregate funding commitment 72,997 72,967 Total amount funded 57,290 55,487 Unfunded commitment 15,707 17,480 Maximum loss exposure 42,818 45,726 (1) Included in other assets in the accompanying Consolidated Statements of Financial Condition. The following table presents information regarding activity in our LIHTC investments for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Fundings $ 1,168 $ 919 $ 1,803 $ 2,024 Proportional amortization recognized 1,427 1,027 2,938 2,573 Income tax credits recognized 1,688 1,163 3,375 2,536 Other CRA Investments We invest in other CRA investments that are accounted for using the equity method of accounting or the measurement alternative to fair value for equity investments without a readily determinable fair value. Other CRA investments totaled $89.0 million and $85.0 million at June 30, 2023 and December 31, 2022. CRA investments that are accounted for under the equity method consist primarily of investments in small business investment companies (“SBICs”) and limited partnerships which provide affordable housing where our ownership percentage exceeds 3%. Under the equity method of accounting, we record our proportionate share of the profits or losses of the investment entity as an adjustment to the carrying value of the investment and as a component of noninterest income. Equity investments that do not meet the criteria to be accounted for under the equity method and do not have a readily determinable fair value are accounted for at cost under the measurement alternative to fair value with adjustments for impairment and observable price changes as applicable. These investments consist primarily of investments in limited partnerships which provide affordable housing where our partnership percentage is less than 3% and other qualifying investments such as Community Development Financial Institutions (“CDFI”) stock. Multifamily Securitization During the third quarter of 2019, we transferred $573.5 million of multifamily loans, through a two-step process, to a third-party depositor which placed the multifamily loans into a third-party trust (a VIE) that issued structured pass-through certificates to investors. The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860. We determined that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that will have the most significant economic impact on the entity, therefore we do not consolidate the securitization trust. Our continuing involvement in this securitization is limited to customary obligations associated with the securitization of loans, including the obligation to cure, repurchase, or substitute loans in the event of a material breach in representations. Additionally, we have the obligation to guarantee credit losses up to 12% of the aggregate unpaid principal balances at cut-off date of the securitization. This obligation is supported by a $68.8 million letter of credit between Freddie Mac and the FHLB. The maximum loss exposure that would be absorbed by us in the event that all of the assets in the securitization trust are deemed worthless is $68.8 million, which represents the aforementioned obligation to guarantee credit losses up to 12%. We believe that the loss exposure on the multifamily securitization is reduced by both loan-to-value ratios of the underlying collateral balances and the overcollateralization that exists within the securitization trust. At June 30, 2023, the remaining unpaid principal balance on the securitization totaled $91.0 million, and we have a $1.2 million repurchase reserve related to this VIE. Capital Trusts - Trust Preferred Securities In connection with our acquisition of PMB, we acquired investments in two grantor trusts. These grantor trusts were originally formed to sell and issue trust preferred securities to institutional investors (Refer to Note 7 - Long-term Debt ). We are not the primary beneficiary, and consequently, these grantor trusts are not consolidated in the consolidated financial statements. At |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents computations of basic and diluted earnings per common share (“EPS”) for the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Six Months Ended ($ in thousands except per share data) Common Stock Class B Common Stock Class B Common Stock Net income $ 17,732 $ 147 $ 37,846 $ 311 Weighted average common shares outstanding 57,503,213 477,321 58,017,185 477,321 Dilutive effects of restricted shares/units 45,268 — 104,941 — Dilutive effects of stock options 205 — 866 — Average shares and dilutive common shares 57,548,686 477,321 58,122,992 477,321 Basic earnings per common share $ 0.31 $ 0.31 $ 0.65 $ 0.65 Diluted earnings per common share $ 0.31 $ 0.31 $ 0.65 $ 0.65 For the three and six months ended June 30, 2023, there were 609,324 and 457,960 anti-dilutive restricted shares/units and 11,232 and zero anti-dilutive stock options that were excluded from computing diluted earnings per common share. The following table presents computations of basic and diluted EPS for the three and six months ended June 30, 2022: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 ($ in thousands except per share data) Common Stock Class B Common Stock Common Stock Class B Common Stock Net income $ 26,504 $ 208 $ 74,645 $ 579 Less: preferred stock dividends — — (1,409) (11) Less: preferred stock redemption — — (3,718) (29) Net income allocated to common stockholders $ 26,504 $ 208 $ 69,518 $ 539 Weighted average common shares outstanding 60,873,481 477,321 61,497,261 477,321 Dilutive effects of stock units 245,571 — 269,093 — Dilutive effects of stock options 4,242 — 4,701 — Average shares and dilutive common shares 61,123,294 477,321 61,771,055 477,321 Basic earnings per common share $ 0.44 $ 0.44 $ 1.13 $ 1.13 Diluted earnings per common share $ 0.43 $ 0.44 $ 1.13 $ 1.13 For the three and six months ended June 30, 2022, there were 354,484 and 806 anti-dilutive restricted shares/units and no anti-dilutive stock options that were excluded from computing diluted earnings per common share. |
LOAN COMMITMENTS AND OTHER RELA
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | LOAN COMMITMENTS AND OTHER RELATED ACTIVITIESSome financial instruments, such as unfunded loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met prior to their expiration dates. Commitments may expire without being used. Risk of credit loss exists up to the face amount of these instruments. The same credit policies are used to make such commitments as are used for originating loans, including obtaining collateral at exercise of the commitment. The following table presents the contractual amount of financial instruments with off-balance-sheet risk as of the periods indicated: June 30, 2023 December 31, 2022 ($ in thousands) Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to extend credit $ 39,729 $ 161,036 $ 50,193 $ 180,696 Unused lines of credit 47,334 1,330,913 8,392 1,505,122 Letters of credit 1,671 7,462 2,461 7,016 Other Commitments At June 30, 2023, we had unfunded commitments of $15.7 million, $7.5 million, and $20.0 million for LIHTC investments, SBIC investments, and other investments. At December 31, 2022, we had unfunded commitments of $17.5 million, $8.6 million, and $9.8 million for LIHTC investments, SBIC investments, and other investments. |
OTHER ASSETS AND OTHER LIABILIT
OTHER ASSETS AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS AND OTHER LIABILITIES | OTHER ASSETS AND OTHER LIABILITIES The following table presents the components of other assets as of the dates indicated: ($ in thousands) June 30, December 31, Accrued interest receivable $ 35,821 $ 37,942 Prepaid expenses 9,816 8,068 Derivative instruments (1) 2,199 2,292 Operating lease right-of-use assets 26,630 28,780 Servicing assets 21,051 22,484 Other real estate owned 882 — Income taxes receivable — 7,679 Investments: CRA and other equity investments (2) 94,703 90,295 LIHTCs (2) 42,818 45,726 Alternative energy partnerships (2) 19,111 21,410 Other assets 25,281 13,513 Total other assets $ 278,312 $ 278,189 (1) See Note 9 - Derivative Instruments for information regarding derivative instruments (2) See Note 12 - Variable Interest Entities regarding alternative energy partnerships, LIHTC and other CRA investments The following table presents the components of accrued expenses and other liabilities as of the dates indicated: ($ in thousands) June 30, December 31, Accrued interest payable $ 14,791 $ 7,004 Accounts payable and accrued expenses 43,791 37,560 Income taxes payable 682 — Derivative liabilities (1) 2,626 2,251 Lease liability 30,505 33,122 Commitments to fund LIHTC (2) 15,707 17,480 Reserve for unfunded noncancellable loan commitments 4,005 5,305 Reserve for loss on repurchased loans 1,977 2,989 Other liabilities 5,933 8,512 Total accrued expenses and other liabilities $ 120,017 $ 114,223 (1) See Note 9 - Derivative Instruments for information regarding derivative instruments (2) See Note 14 - Loan Commitments and Other Related Activities regarding commitments to fund LIHTC |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The following table presents noninterest income, segregated by revenue streams, in-scope and out-of-scope of Topic 606 - Revenue From Contracts With Customers , for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Noninterest income In scope of Topic 606 Deposit service fees $ 1,377 $ 1,627 $ 2,640 $ 3,281 Debit card fees 424 542 801 995 Other 331 137 699 296 Noninterest income (in-scope of Topic 606) 2,132 2,306 4,140 4,572 Noninterest income (out-of-scope of Topic 606) 3,892 4,880 9,743 8,524 Total noninterest income $ 6,024 $ 7,186 $ 13,883 $ 13,096 We do not typically enter into long-term revenue contracts with clients and as of June 30, 2023 and December 31, 2022, we did not have any significant contract balances within the scope of Topic 606 and we did not capitalize any revenue contract acquisition costs. Sale-leaseback Transactions In January 2022, we completed a sale-leaseback transaction for $2.4 million and recognized a gain of $0.8 million. Gains related to sale-leaseback are included in other income in the accompanying consolidated statements of operations. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Certain of our executive officers and directors, and their related interests, are customers of, or have had transactions with the Bank in the ordinary course of business, including deposits, loans and other financial services related transactions. From time to time, the Bank may make loans to executive officers and directors, and their related interests, in the ordinary course of business and on substantially the same terms and conditions, including interest rates and collateral, as those of comparable transactions with non-insiders prevailing at the time, in accordance with the Bank’s underwriting guidelines, and do not involve more than the normal risk of collectability or present other unfavorable features. As of June 30, 2023, no related party loans were categorized as nonaccrual, past due, restructured or potential problem loans. Transactions with Related Parties The Company and the Bank have engaged in transactions described below with the Company’s current or former directors, executive officers, and beneficial owners of more than five percent of the outstanding shares of the Company’s voting common stock and certain persons related to them. As previously disclosed, the Company’s Board of Directors has authorized and directed the Company to provide indemnification, advancement and/or reimbursement for the costs of separate independent counsel retained by any then-current officer or director, in their individual capacity, with respect to matters related to (i) an investigation by the Special Committee of the Company’s Board of Directors in late 2016, (ii) a formal order of investigation issued by the SEC on January 4, 2017 (since resolved), and (iii) any civil or administrative proceedings against the Company as well as officers and directors currently or previously associated with the Company (collectively, the “Indemnified Matters”). Indemnification costs were paid or reimbursed by the Company or its insurance carriers o n behalf of certain current directors in connection with the Indemnified Matters, in an aggregate amount less than $120 thousand for each of the three and six months ended June 30, 2023 and 2022. |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION From time to time, we are involved as plaintiff or defendant in various legal actions arising in the normal course of business. In accordance with applicable accounting guidance, we establish an accrued liability when those matters present loss contingencies that are both probable and estimable. While the ultimate liability with respect to legal actions cannot be determined at this time, we believe that damages, if any, and other amounts relating to pending matters are not likely to be material to the consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS We have evaluated events from the date of the consolidated financial statements on June 30, 2023 through the issuance of these consolidated financial statements included in this Quarterly Report on Form 10-Q. On July 25, 2023, the Company and PacWest announced the execution of an Agreement and Plan of Merger, pursuant to which (a) a newly formed merger subsidiary of the Company will merge with and into PacWest, with PacWest surviving (the “merger”), (b) immediately following the merger, PacWest will merge into the Company, with the Company surviving (the “second-step merger”), (c) promptly following the second-step merger, Pacific Western Bank, a California-chartered non-member bank and prior to the second-step merger, a wholly-owned subsidiary of PacWest (“PacWest Bank”), will become a member of the Federal Reserve System (the “FRS Membership”) and (d) promptly following the effectiveness of the FRS Membership, the Bank will merge into PacWest Bank, with PacWest Bank surviving as a wholly-owned subsidiary of the Company. Upon closing of the transaction, the combined holding company and bank will operate under the Banc of California name and brand. At the closing of the merger, PacWest stockholders will be entitled to receive 0.6569 of a share of the Company’s common stock for each share held of PacWest common stock. Each outstanding share of PacWest’s 7.75% series A fixed-rate reset noncumulative perpetual preferred stock will be converted into the right to receive one share of a newly created series of substantially identical preferred stock of the Company with the same terms and conditions. In connection with the proposed transaction, the Company also entered into separate investment agreements (the “Investment Agreements”) with affiliates of funds managed by Warburg Pincus LLC (the “Warburg Investors”) and certain investment vehicles sponsored, managed or advised by Centerbridge Partners, L.P. and its affiliates (the “Centerbridge Investors” and, together with the Warburg Investors, the “Investors”), which together will invest a total of $400 million for newly issued equity securities of the Company substantially concurrently with and subject to closing of the transaction. Subject to the terms and conditions of the Investment Agreements, at the closing of the transactions contemplated thereby, the Company expects to issue to the Warburg Investors and the Centerbridge Investors, in the aggregate, approximately 21.8 million shares of common stock at a purchase price of $12.30 per share and 10.8 million shares of a new class of nonvoting, common-equivalent stock at a purchase price of $12.30 per share. Additionally, the Warburg Investors will receive warrants to purchase approximately 15.9 million of the Company’s nonvoting, common-equivalent shares, and the Centerbridge Investors will receive warrants to purchase approximately 3.0 million shares of the Company’s common stock, each with an exercise price of $15.375 per share. The warrants are exercisable for a period of seven years and subject to mandatory exercise when the market price of the Company’s common stock reaches or exceeds $24.60 for twenty or more trading days during any thirty-consecutive trading day period. Simultaneously with entering into the definitive merger agreement, Banc of California, N.A. entered into an aggregate of $3.5 billion in interest rate swap options to hedge interest rate risk for a total cost of $15.7 million, and a contingent forward asset sale agreement on the SFR loan portfolio of $1.8 billion. Except as noted, there have been no other subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the consolidated financial statements as of June 30, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited interim consolidated financial statements have been prepared pursuant to Article 10 of SEC Regulation S-X and other SEC rules and regulations for reporting on the Quarterly Report on Form 10-Q. Accordingly, certain disclosures required by U.S. generally accepted accounting principles (“GAAP”) are not included herein. These interim statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2022 filed by us with the SEC. |
Reclassification | Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications are immaterial and have no effect on net income, comprehensive income (loss), total assets or total shareholders’ equity previously reported.In the opinion of management of the Company, the accompanying unaudited interim consolidated financial statements reflect all of the adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial condition and consolidated results of operations as of the dates and for the periods presented. |
Principles of Consolidation | Principles of Consolidation: The accompanying unaudited consolidated financial statements include the accounts of the Company and its consolidated subsidiaries as of June 30, 2023 and December 31, 2022 and for the three and six months ended June 30, 2023 and June 30, 2022. Significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its then wholly-owned subsidiaries. |
Significant Accounting Policies, and Recent Accounting Guidance | Significant Accounting Policies: The accounting and reporting policies of the Company are based upon GAAP and conform to predominant practices within the banking industry. We have not made any changes in our significant accounting policies from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC, except for those described below, which reflect a new accounting policy adopted and the impact of the adoption of ASU 2022-02: Derivative Instruments - Cash Flow Hedge : The Company applies hedge accounting for certain derivative instruments used to manage interest rate risk. A cash flow hedge is a derivative instrument used to manage the variability in future expected cash flows that would otherwise be impacted by movements in interest rates. To quality for hedge accounting, the cash flow hedge must be highly effective at reducing the risk associated with the hedged exposure. The effectiveness of the hedging relationship is documented at inception and is monitored at least quarterly through the life of the transaction. A cash flow hedge that is designated as highly effective is carried at fair value with the change in fair value included in the assessment of hedge effectiveness recorded in other comprehensive income (loss) (“AOCI”) and subsequently recognized in earnings in the same period that the hedged forecasted transaction affects earnings. At that time, the amount reclassified from AOCI is presented in the same income statement line item in which the hedged transaction is reported (interest income or expense). If the cash flow hedge becomes ineffective, the change in fair value is reclassified from AOCI to earnings. Loan Modifications to Borrowers Experiencing Financial Difficulty: Prior to the adoption of ASU 2022-02, we accounted for the modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a troubled debt restructuring (“TDR”). Effective January 1, 2023, we adopted ASU 2022-02, which eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023. Loans that were considered a TDR prior to the adoption of ASU 2022-02 will continue to be accounted for under the superseded TDR accounting guidance until the loan is paid off, liquidated, or subsequently modified. Since adoption of ASU 2022-02 on January 1, 2023, we have Recently Adopted Accounting Guidance: In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments—Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures , which addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (“ASU 2016-13”) that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for TDRs by creditors that have adopted the CECL model and enhances the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We adopted ASU 2022-02 on January 1, 2023 and the impact of adoption did not have a material effect on our consolidated financial statements. Recently Issued Accounting Guidance Not Yet Adopted : In March 2023, the FASB issued ASU 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”) , which permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method, which was previously allowed only for low-income housing tax credit (“LIHTC”) investments, if certain conditions are met. ASU 2023-02 is effective for fiscal years beginning after December 15, 2023, and including interim periods within those fiscal years. The amendment must be applied on either a modified retrospective or a retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures, including assessing eligibility to apply the updated guidance to our investments in alternative energy partnerships currently accounted for using the HLBV method of the equity method of accounting. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements: The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and disclosures provided, and actual results could differ. The allowance for credit losses (“ACL”) (which includes the allowance for loan losses (“ALL”) and the reserve for unfunded noncancellable loan commitments (“RUC”)), loan repurchase reserve, realization of deferred tax assets, the fair value of assets and liabilities acquired in business combinations and related purchase price allocation, the valuation of goodwill and other intangible assets, other derivatives, hypothetical liquidation at book value (“HLBV”) of investments in alternative energy partnerships, and the fair value measurement of financial instruments are particularly subject to change and such change could have a material effect on the consolidated financial statements. |
Sale-leaseback Transaction | Sale-leaseback Transactions In January 2022, we completed a sale-leaseback transaction for $2.4 million and recognized a gain of $0.8 million. Gains related to sale-leaseback are included in other income in the accompanying consolidated statements of operations. |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on a Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2023 Assets Securities available-for-sale: SBA loan pools securities $ 9,215 $ — $ 9,215 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 81,708 — 81,708 — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 89,260 — 89,260 — Non-agency residential mortgage-backed securities 111,508 — 111,508 — Collateralized loan obligations 482,831 — 482,831 — Corporate debt securities 147,569 — 147,569 — Derivative assets: Interest rate swaps and foreign exchange contracts (1) 2,199 — 2,199 — Liabilities Derivative liabilities: Cash flow hedges (2) 454 — 454 — Interest rate swaps and foreign exchange contracts (2) 2,172 — 2,172 — December 31, 2022 Assets Securities available-for-sale: SBA loan pools securities $ 11,187 $ — $ 11,187 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,206 — 40,206 — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 93,191 — 93,191 — Municipal securities — — — — Non-agency residential mortgage-backed securities 80,492 — 80,492 — Collateralized loan obligations 476,603 — 476,603 — Corporate debt securities 166,618 — 166,618 — Derivative assets: Interest rate swaps and foreign exchange contracts (1) 2,292 — 2,292 — Liabilities Derivative liabilities: Interest rate swaps and foreign exchange contracts (2) 2,251 — 2,251 — (1) Included in other assets in the consolidated statements of financial condition. (2) Included in accrued expenses and other liabilities in the consolidated statements of financial condition. |
Schedule of Fair Value Liabilities Measured on a Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2023 Assets Securities available-for-sale: SBA loan pools securities $ 9,215 $ — $ 9,215 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 81,708 — 81,708 — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 89,260 — 89,260 — Non-agency residential mortgage-backed securities 111,508 — 111,508 — Collateralized loan obligations 482,831 — 482,831 — Corporate debt securities 147,569 — 147,569 — Derivative assets: Interest rate swaps and foreign exchange contracts (1) 2,199 — 2,199 — Liabilities Derivative liabilities: Cash flow hedges (2) 454 — 454 — Interest rate swaps and foreign exchange contracts (2) 2,172 — 2,172 — December 31, 2022 Assets Securities available-for-sale: SBA loan pools securities $ 11,187 $ — $ 11,187 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,206 — 40,206 — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 93,191 — 93,191 — Municipal securities — — — — Non-agency residential mortgage-backed securities 80,492 — 80,492 — Collateralized loan obligations 476,603 — 476,603 — Corporate debt securities 166,618 — 166,618 — Derivative assets: Interest rate swaps and foreign exchange contracts (1) 2,292 — 2,292 — Liabilities Derivative liabilities: Interest rate swaps and foreign exchange contracts (2) 2,251 — 2,251 — (1) Included in other assets in the consolidated statements of financial condition. (2) Included in accrued expenses and other liabilities in the consolidated statements of financial condition. |
Schedule of Assets and Liabilities Measured on Non-recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs June 30, 2023 Assets Individually evaluated loans: Commercial and industrial $ 756 $ — $ — $ 756 SBA 16 — — 16 Other consumer 93 — — 93 Other real estate owned: Single family residential 882 — — 882 December 31, 2022 Assets Individually evaluated loans: Single family residential mortgage $ 3,600 $ — $ — $ 3,600 Commercial and industrial 7,115 — — 7,115 SBA 3,704 — — 3,704 |
Schedule of Gains and (Losses) Recognized on Assets Measured at Fair Value on Non-recurring Basis | The following table presents the gains (losses) recognized on assets measured at fair value on a non-recurring basis for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Individually evaluated loans: Single family residential mortgage $ — $ (1) $ (43) $ (340) Commercial and industrial (5,157) (564) (12,300) (1,198) SBA (470) (198) (75) (172) Other consumer (152) (216) (170) (243) Commercial real estate — — (300) — Other real estate owned: Single family residential (165) — (165) — |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | Estimated Fair Values of Financial Instruments The following table presents the carrying amounts and estimated fair values of financial assets and liabilities as of the dates indicated: Carrying Amount Fair Value Measurement Level ($ in thousands) Level 1 Level 2 Level 3 Total June 30, 2023 Financial assets Cash and cash equivalents $ 283,729 $ 283,729 $ — $ — $ 283,729 Securities held-to-maturity 328,405 — 267,045 — 267,045 Securities available-for-sale 922,091 — 922,091 — 922,091 Federal Home Loan Bank and other bank stock 60,281 — 60,281 — 60,281 Loans receivable, net of allowance for credit losses 7,075,323 — — 6,578,187 6,578,187 Accrued interest receivable 35,821 35,821 — — 35,821 Interest rate swaps and foreign exchange contracts 2,199 — 2,199 — 2,199 Financial liabilities Deposits 6,871,076 5,217,484 1,642,237 — 6,859,721 Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings 1,147,997 — 1,116,711 — 1,116,711 Long-term debt 274,121 — 256,378 — 256,378 Cash flow hedges 454 454 454 Interest rate swaps and foreign exchange contracts 2,172 — 2,172 — 2,172 Accrued interest payable 14,791 14,791 — — 14,791 December 31, 2022 Financial assets Cash and cash equivalents $ 228,896 $ 228,896 $ — $ — $ 228,896 Securities held-to-maturity 328,641 — 262,460 — 262,460 Securities available-for-sale 868,297 — 868,297 — 868,297 Federal Home Loan Bank and other bank stock 57,092 — 57,092 — 57,092 Loans receivable, net of allowance for credit losses 7,029,078 — — 6,526,916 6,526,916 Accrued interest receivable 37,942 37,942 — — 37,942 Interest rate swaps and foreign exchange contracts 2,292 — 2,292 — 2,292 Financial liabilities Deposits 7,120,921 5,931,500 1,175,857 — 7,107,357 Advances from Federal Home Loan Bank 727,348 — 699,730 — 699,730 Long-term debt 274,906 — 269,673 — 269,673 Interest rate swaps and foreign exchange contracts 2,251 — 2,251 — 2,251 Accrued interest payable 7,004 7,004 — — 7,004 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Available-for-Sale Investment Securities | The following table presents the amortized cost and fair value of the investment securities portfolio as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance Fair June 30, 2023 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 152,843 $ — $ (27,987) $ — $ 124,856 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 61,359 — (11,937) — 49,422 Municipal securities 114,203 — (21,436) — 92,767 Total securities held-to-maturity $ 328,405 $ — $ (61,360) $ — $ 267,045 Securities available-for-sale: SBA loan pool securities $ 9,251 $ 7 $ (43) $ — $ 9,215 U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 82,913 — (1,205) — 81,708 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 95,760 — (6,500) — 89,260 Non-agency residential mortgage-backed securities 122,995 — (11,487) — 111,508 Collateralized loan obligations 490,534 — (7,703) — 482,831 Corporate debt securities 175,796 — (27,191) (1,036) 147,569 Total securities available-for-sale $ 977,249 $ 7 $ (54,129) $ (1,036) $ 922,091 December 31, 2022 Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 153,033 $ — $ (29,807) $ — $ 123,226 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 61,404 — (11,946) — 49,458 Municipal securities 114,204 — (24,428) — 89,776 Total securities held-to-maturity $ 328,641 $ — $ (66,181) $ — $ 262,460 Securities available-for-sale: SBA loan pool securities $ 11,241 $ — $ (54) $ — $ 11,187 U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,431 — (225) — 40,206 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 99,075 — (5,884) — 93,191 Non-agency residential mortgage-backed securities 90,832 — (10,340) — 80,492 Collateralized loan obligations 492,203 — (15,600) — 476,603 Corporate debt securities 175,781 32 (9,195) — 166,618 Total securities available-for-sale $ 909,563 $ 32 $ (41,298) $ — $ 868,297 |
Schedule of Proceeds from Sales and Calls of Securities and Associated Gross Gains and Losses | The following table presents proceeds from sales and calls of AFS securities and the associated gross gains and losses realized through earnings upon the sales and calls of AFS securities for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Gross realized gains $ — $ — $ — $ 209 Gross realized losses — — — (193) Net realized gains on sales and calls $ — $ — $ — $ 16 Proceeds from sales and calls $ 20,000 $ 38,500 $ 20,000 $ 56,146 |
Schedule of Securities Available-for-Sale | The following table summarizes the AFS investment securities with unrealized losses by security type and length of time in a continuous, unrealized loss position as of the dates indicated: Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Gross Unrealized Losses Fair Gross Unrealized Losses Fair Gross Unrealized Losses June 30, 2023 Securities available-for-sale: SBA loan pool securities $ — $ — $ 7,461 $ (43) $ 7,461 $ (43) U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 81,708 (1,205) — — 81,708 (1,205) U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 51,780 (767) 37,478 (5,733) 89,258 (6,500) Non-agency residential mortgage-backed securities 71,394 (1,734) 40,114 (9,753) 111,508 (11,487) Collateralized loan obligations 41,278 (481) 441,552 (7,222) 482,830 (7,703) Corporate debt securities 95,031 (10,265) 52,538 (16,926) 147,569 (27,191) Total securities available-for-sale $ 341,191 $ (14,452) $ 579,143 $ (39,677) $ 920,334 $ (54,129) December 31, 2022 Securities available-for-sale: SBA loan pool securities $ 2,260 $ (3) $ 8,927 $ (51) $ 11,187 $ (54) U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 40,206 (225) — — 40,206 (225) U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 76,441 (2,533) 16,750 (3,351) 93,191 (5,884) Non-agency residential mortgage-backed securities 80,492 (10,340) — — 80,492 (10,340) Collateralized loan obligations 235,936 (7,492) 240,667 (8,108) 476,603 (15,600) Corporate debt securities 159,492 (8,374) 4,180 (821) 163,672 (9,195) Total securities available-for-sale $ 594,827 $ (28,967) $ 270,524 $ (12,331) $ 865,351 $ (41,298) The following table presents the fair value and weighted average yields using amortized cost of the AFS securities portfolio as of June 30, 2023, based on the earlier of contractual maturity dates or next repricing dates: One year or less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total ($ in thousands) Fair Weighted-Average Yield Fair Weighted-Average Yield Fair Weighted-Average Yield Fair Weighted-Average Yield Fair Weighted-Average Yield Securities available-for-sale: SBA loan pool securities $ 9,215 3.87 % $ — — % $ — — % $ — — % $ 9,215 3.87 % U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities — — % — — % — — % 81,708 5.54 % 81,708 5.54 % U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 5,233 5.70 % 7,795 3.61 % 24,442 3.14 % 51,790 5.19 % 89,260 4.45 % Non-agency residential mortgage-backed securities — — % — — % — — % 111,508 3.92 % 111,508 3.92 % Collateralized loan obligations 482,831 6.88 % — — % — — % — — % 482,831 6.88 % Corporate debt securities — — % 137,097 4.82 % 10,472 5.73 % — — % 147,569 4.89 % Total securities available-for-sale $ 497,279 6.81 % $ 144,892 4.76 % $ 34,914 3.95 % $ 245,006 4.70 % $ 922,091 5.77 % |
Schedule of Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of the investment securities portfolio as of June 30, 2023, based on the earlier of contractual maturity dates or next repricing date: Held-to-Maturity Available-for-Sale ($ in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Earlier of maturity or next repricing date: Within one year $ — $ — $ 505,106 $ 497,279 One to five years — — 171,438 144,892 Five to ten years 37,339 31,963 42,240 34,914 Greater than ten years 291,066 235,082 258,465 245,006 Total $ 328,405 $ 267,045 $ 977,249 $ 922,091 |
Schedule of Fair Value and Weighted Average Yields of Securities Held-to-Maturity | The following table presents the amortized cost and weighted average yields using amortized cost of the HTM securities portfolio as of June 30, 2023, based on the earlier of contractual maturity dates or next repricing dates: One year or less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total ($ in thousands) Amortized Weighted-Average Yield Amortized Weighted-Average Yield Amortized Weighted-Average Yield Amortized Weighted-Average Yield Amortized Weighted-Average Yield Securities held-to-maturity: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — — % $ — — % $ 9,344 2.52 % $ 143,499 2.70 % $ 152,843 2.69 % U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations — — % — — % — — % 61,359 2.64 % 61,359 2.64 % Municipal securities — — % — — % 27,995 2.32 % 86,208 2.72 % 114,203 2.62 % Total securities held-to-maturity $ — — % $ — — % $ 37,339 2.37 % $ 291,066 2.69 % $ 328,405 2.66 % |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans and Leases Receivable | The following table presents the balances in our loan portfolio as of the dates indicated: ($ in thousands) June 30, December 31, Commercial: Commercial and industrial (1) $ 2,000,408 $ 1,845,960 Commercial real estate 1,266,438 1,259,651 Multifamily 1,654,152 1,689,943 SBA 62,898 68,137 Construction 264,684 243,553 Consumer: Single family residential mortgage 1,820,721 1,920,806 Other consumer 86,905 86,988 Total loans $ 7,156,206 $ 7,115,038 Allowance for loan losses (80,883) (85,960) Loans receivable, net $ 7,075,323 $ 7,029,078 (1) Includes warehouse lending balances of $786.1 million and $602.5 million at June 30, 2023 and December 31, 2022. The following table presents the balances of total loans as of the dates indicated: ($ in thousands) June 30, December 31, Unpaid principal balance $ 7,148,929 $ 7,107,897 Unamortized net premiums 16,997 18,319 Unamortized net deferred (fees) costs (1,238) (1,880) Fair value adjustment (1) (8,482) (9,298) Total loans $ 7,156,206 $ 7,115,038 (1) At June 30, 2023, includes $7.4 million related to the acquisition of Pacific Mercantile Bancorp (“PMB”), of which $3.7 million related to purchased credit deteriorated (“PCD”) loans. At December 31, 2022, includes $8.0 million related to the PMB Acquisition, of which $4.1 million related to PCD loans. Collateral dependent loans consisted of the following as of the dates indicated: June 30, 2023 Real Estate ($ in thousands) Commercial Residential Business Assets Automobile Total Commercial: Commercial and industrial $ — $ — $ 15,538 $ 62 $ 15,600 Commercial real estate 2,600 — — — 2,600 SBA 18 2,948 6,645 — 9,611 Consumer: Single family residential mortgage — 33,496 — — 33,496 Other consumer — 81 — 290 371 Total loans $ 2,618 $ 36,525 $ 22,183 $ 352 $ 61,678 December 31, 2022 Real Estate ($ in thousands) Commercial Residential Business Assets Automobile Total Commercial: Commercial and industrial $ — $ — $ 18,392 $ — $ 18,392 Commercial real estate 910 — — — 910 SBA 23 4,702 5,691 — 10,416 Consumer: Single family residential mortgage — 21,262 — — 21,262 Other consumer — 81 — 113 194 Total loans $ 933 $ 26,045 $ 24,083 $ 113 $ 51,174 |
Schedule of Risk Categories for Loans and Leases | The following table presents the risk categories for total loans by class of loans and origination year as of June 30, 2023: Term Loans Amortized Cost Basis by Origination Year ($ in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Total June 30, 2023 Commercial: Commercial and industrial Pass $ 50,265 $ 250,300 $ 172,125 $ 54,809 $ 38,087 $ 219,373 $ 1,120,399 $ 17,845 $ 1,923,203 Special mention — 1,568 3,761 — 8,817 9,660 6,800 392 30,998 Substandard — 4,051 135 2,422 301 13,056 14,167 2,716 36,848 Doubtful (1) 3,910 — — 71 — — 5,378 — 9,359 Commercial and industrial 54,175 255,919 176,021 57,302 47,205 242,089 1,146,744 20,953 2,000,408 Commercial real estate Pass 25,752 393,803 342,564 59,987 82,821 343,679 2,265 57 1,250,928 Special mention — — 5,352 — 6,899 — — — 12,251 Substandard — 1,761 — — — 658 — 840 3,259 Doubtful — — — — — — — — — Commercial real estate 25,752 395,564 347,916 59,987 89,720 344,337 2,265 897 1,266,438 Multifamily Pass 23,474 624,664 387,413 153,613 225,130 212,731 3 9,215 1,636,243 Special mention — — — 2,995 — — — — 2,995 Substandard — — — — — 14,914 — — 14,914 Doubtful — — — — — — — — — Multifamily 23,474 624,664 387,413 156,608 225,130 227,645 3 9,215 1,654,152 SBA Pass — 9,288 12,199 3,543 5,787 19,274 326 447 50,864 Special mention — — 676 — — 579 — 1 1,256 Substandard — — — 303 877 8,443 351 502 10,476 Doubtful — — — — — — — 302 302 SBA — 9,288 12,875 3,846 6,664 28,296 677 1,252 62,898 Construction Pass 1,996 96,130 113,770 27,795 — 24,984 9 — 264,684 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Construction 1,996 96,130 113,770 27,795 — 24,984 9 — 264,684 Consumer: Single family residential mortgage Pass — 595,050 768,940 70,311 44,030 302,777 2,445 — 1,783,553 Special mention — — 680 — — 2,321 — — 3,001 Substandard — 9,656 6,607 2,161 — 13,876 1,867 — 34,167 Doubtful — — — — — — — — — Single family residential mortgage — 604,706 776,227 72,472 44,030 318,974 4,312 — 1,820,721 Other consumer Pass 16,210 18,972 13,592 7,650 4,288 15,541 8,696 1,183 86,132 Special mention — — — — — 1 349 52 402 Substandard — — 111 — 122 57 81 — 371 Doubtful — — — — — — — — — Other consumer 16,210 18,972 13,703 7,650 4,410 15,599 9,126 1,235 86,905 Total loans $ 121,607 $ 2,005,243 $ 1,827,925 $ 385,660 $ 417,159 $ 1,201,924 $ 1,163,136 $ 33,552 $ 7,156,206 Total loans Pass $ 117,697 $ 1,988,207 $ 1,810,603 $ 377,708 $ 400,143 $ 1,138,359 $ 1,134,143 $ 28,747 $ 6,995,607 Special mention — 1,568 10,469 2,995 15,716 12,561 7,149 445 50,903 Substandard — 15,468 6,853 4,886 1,300 51,004 16,466 4,058 100,035 Doubtful (1) 3,910 — — 71 — — 5,378 302 9,661 Total loans $ 121,607 $ 2,005,243 $ 1,827,925 $ 385,660 $ 417,159 $ 1,201,924 $ 1,163,136 $ 33,552 $ 7,156,206 ( 1 ) Doubtful loans in origination year 2023 included one commercial and industrial loan that was modified and accounted for as a new loan. The following table presents the risk categories for total loans by class of loans and origination year as of December 31, 2022: Term Loans Amortized Cost Basis by Origination Year ($ in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Amortized Cost Basis Total December 31, 2022 Commercial: Commercial and industrial Pass $ 269,367 $ 170,513 $ 62,931 $ 53,001 $ 76,811 $ 164,394 $ 932,464 $ 19,803 $ 1,749,284 Special mention — 19,203 1,042 — 1 11,528 17,142 483 49,399 Substandard 3,833 64 3,002 502 3,630 2,729 23,012 6,501 43,273 Doubtful — — — 4,004 — — — — 4,004 Commercial and industrial 273,200 189,780 66,975 57,507 80,442 178,651 972,618 26,787 1,845,960 Commercial real estate Pass 348,298 363,335 60,564 94,772 155,790 224,213 1,163 61 1,248,196 Special mention — — — — — 1,745 — — 1,745 Substandard — — — — 1 8,799 910 — 9,710 Doubtful — — — — — — — — — Commercial real estate 348,298 363,335 60,564 94,772 155,791 234,757 2,073 61 1,259,651 Multifamily Pass 626,186 390,928 154,636 229,511 109,887 138,063 3 9,307 1,658,521 Special mention — — 2,997 — — — — — 2,997 Substandard — — — — 11,069 17,356 — — 28,425 Doubtful — — — — — — — — — Multifamily 626,186 390,928 157,633 229,511 120,956 155,419 3 9,307 1,689,943 SBA Pass 9,421 15,468 4,009 5,899 1,176 19,090 603 123 55,789 Special mention — — — — 201 598 — 1 800 Substandard — — 320 339 385 9,097 628 779 11,548 Doubtful — — — — — — — — — SBA 9,421 15,468 4,329 6,238 1,762 28,785 1,231 903 68,137 Construction Pass 85,430 98,572 27,704 6,495 — 25,352 — — 243,553 Special mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Construction 85,430 98,572 27,704 6,495 — 25,352 — — 243,553 Consumer: Single family residential mortgage Pass 627,213 797,744 72,658 47,284 89,492 255,520 — — 1,889,911 Special mention 1,716 218 — 1,537 3,378 2,252 — — 9,101 Substandard 3,571 — 2,171 — 8,573 7,479 — — 21,794 Doubtful — — — — — — — — — Single family residential mortgage 632,500 797,962 74,829 48,821 101,443 265,251 — — 1,920,806 Other consumer Pass 23,340 15,986 8,805 5,524 3,363 15,920 10,914 2,747 86,599 Special mention — — — 3 — 19 62 54 138 Substandard — — 56 — 83 31 81 — 251 Doubtful — — — — — — — — — Other consumer 23,340 15,986 8,861 5,527 3,446 15,970 11,057 2,801 86,988 Total loans $ 1,998,375 $ 1,872,031 $ 400,895 $ 448,871 $ 463,840 $ 904,185 $ 986,982 $ 39,859 $ 7,115,038 Total loans Pass $ 1,989,255 $ 1,852,546 $ 391,307 $ 442,486 $ 436,519 $ 842,552 $ 945,147 $ 32,041 $ 6,931,853 Special mention 1,716 19,421 4,039 1,540 3,580 16,142 17,204 538 64,180 Substandard 7,404 64 5,549 841 23,741 45,491 24,631 7,280 115,001 Doubtful — — — 4,004 — — — — 4,004 Total loans $ 1,998,375 $ 1,872,031 $ 400,895 $ 448,871 $ 463,840 $ 904,185 $ 986,982 $ 39,859 $ 7,115,038 The following table presents the gross charge-offs by class of loans and origination year as of June 30, 2023: Gross Charge-offs ($ in thousands) 2023 2022 2021 2020 2019 Prior Total Three Months Ended June 30, 2023 Commercial: Commercial and industrial $ — $ (4,118) $ (332) $ — $ — $ — $ (4,450) SBA — — (64) — — (1,017) (1,081) Consumer: Other consumer — — — (59) — (77) (136) Total loans $ — $ (4,118) $ (396) $ (59) $ — $ (1,094) $ (5,667) Six Months Ended June 30, 2023 Commercial: Commercial and industrial $ — $ (5,717) $ (1,085) $ — $ — $ (909) $ (7,711) Commercial real estate — — — — — (300) (300) SBA — — (64) — — (1,017) (1,081) Consumer: Single family residential mortgage — — — (372) — — (372) Other consumer — (16) — (59) — (77) (152) Total loans $ — $ (5,733) $ (1,149) $ (431) $ — $ (2,303) $ (9,616) |
Schedule of Aging of Recorded Investment in Past Due Loans and Leases | The following table presents the aging of the recorded investment in past due loans, excluding accrued interest receivable (which is not considered to be material), by class of loans as of the dates indicated: ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total June 30, 2023 Commercial: Commercial and industrial 1,430 4,442 16,631 22,503 1,977,905 2,000,408 Commercial real estate 2,047 831 1,760 4,638 1,261,800 1,266,438 Multifamily — 1,124 — 1,124 1,653,028 1,654,152 SBA 735 247 9,193 10,175 52,723 62,898 Construction — — — — 264,684 264,684 Consumer: Single family residential mortgage 43,956 9,466 12,504 65,926 1,754,795 1,820,721 Other consumer 119 349 81 549 86,356 86,905 Total $ 48,287 $ 16,459 $ 40,169 $ 104,915 $ 7,051,291 $ 7,156,206 December 31, 2022 Commercial: Commercial and industrial 4,002 481 13,833 18,316 1,827,644 1,845,960 Commercial real estate 311 — 910 1,221 1,258,430 1,259,651 Multifamily — — — — 1,689,943 1,689,943 SBA 287 — 10,299 10,586 57,551 68,137 Construction — — — — 243,553 243,553 Consumer: Single family residential mortgage 36,338 5,068 19,431 60,837 1,859,969 1,920,806 Other consumer 163 16 81 260 86,728 86,988 Total $ 41,101 $ 5,565 $ 44,554 $ 91,220 $ 7,023,818 $ 7,115,038 The following table presents the aging of loans modified to borrowers experiencing financial difficulty at June 30, 2023: ($ in thousands) 30-59 Days 60-89 Days Over 90 Days Total Current Total June 30, 2023 Commercial: Commercial and industrial $ — $ 3,910 $ — $ 3,910 $ — $ 3,910 Consumer: Single family residential mortgage — — — — 1,357 1,357 $ — $ 3,910 $ — $ 3,910 $ 1,357 $ 5,267 There were no loan modifications made to borrowers experiencing financial difficulty during the quarter ended June 30, 2023 that subsequently defaulted. |
Schedule of Composition of Nonaccrual Loans and Leases | The following table presents nonaccrual loans as of the dates indicated: June 30, 2023 December 31, 2022 ($ in thousands) Total Nonaccrual Loans with no ACL Total Nonaccrual Loans with no ACL Nonaccrual loans Commercial: Commercial and industrial $ 21,228 $ 10,824 $ 22,613 $ 10,959 Commercial real estate 2,600 2,600 910 910 SBA 9,611 9,502 10,417 5,613 Consumer: Single family residential mortgage 33,496 33,495 21,116 17,187 Other consumer 371 260 195 195 Total nonaccrual loans $ 67,306 $ 56,681 $ 55,251 $ 34,864 |
Schedule of Allowance for Loan and Lease Losses and Recorded Investment, Excluding Accrued Interest, in Loans | The following table presents a summary of activity in the ACL for the periods indicated: Three Months Ended June 30, ($ in thousands) 2023 2022 Allowance Reserve for Unfunded Loan Commitments Allowance Allowance Reserve for Unfunded Loan Commitments Allowance Balance at beginning of period $ 84,560 $ 4,805 $ 89,365 $ 93,226 $ 5,405 $ 98,631 Charge-offs (5,667) — (5,667) (494) — (494) Recoveries 326 — 326 1,561 — 1,561 Net (charge-offs) recoveries (5,341) — (5,341) 1,067 — 1,067 Provision for (reversal of) credit losses 1,664 (800) 864 (500) 500 — Balance at end of period $ 80,883 $ 4,005 $ 84,888 $ 93,793 $ 5,905 $ 99,698 Six Months Ended June 30, ($ in thousands) 2023 2022 Allowance Reserve for Unfunded Loan Commitments Allowance Allowance Reserve for Unfunded Loan Commitments Allowance Balance at beginning of period $ 85,960 $ 5,305 $ 91,265 $ 92,584 $ 5,605 $ 98,189 Charge-offs (9,616) — (9,616) (725) — (725) Recoveries 375 — 375 33,776 — 33,776 Net (charge-offs) recoveries (9,241) — (9,241) 33,051 — 33,051 Provision for (reversal of) credit losses 4,164 (1,300) 2,864 (31,842) 300 (31,542) Balance at end of period $ 80,883 $ 4,005 $ 84,888 $ 93,793 $ 5,905 $ 99,698 The following table presents the activity and balance in the ALL as of or for the three and six months ended June 30, 2023: ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Single Family Residential Mortgage Other Consumer Total ALL: Three Months Ended June 30, 2023: Balance at March 31, 2023 $ 32,644 $ 16,119 $ 15,038 $ 2,097 $ 6,425 $ 11,481 $ 756 $ 84,560 Charge-offs (4,450) — — (1,081) — — (136) (5,667) Recoveries 22 — — 286 — 1 17 326 Net (charge-offs) recoveries (4,428) — — (795) — 1 (119) (5,341) Provision for (reversal of) credit losses - loans 4,607 (352) (341) 85 (372) (1,964) 1 1,664 Balance at June 30, 2023 $ 32,823 $ 15,767 $ 14,697 $ 1,387 $ 6,053 $ 9,518 $ 638 $ 80,883 Six Months Ended June 30, 2023: Balance at December 31, 2022 $ 34,156 $ 15,977 $ 14,696 $ 2,648 $ 5,850 $ 12,050 $ 583 $ 85,960 Charge-offs (7,711) (300) — (1,081) — (372) (152) (9,616) Recoveries 39 — — 310 — 2 24 375 Net (charge-offs) recoveries (7,672) (300) — (771) — (370) (128) (9,241) Provision for (reversal of) credit losses - loans 6,339 90 1 (490) 203 (2,162) 183 4,164 Balance at June 30, 2023 $ 32,823 $ 15,767 $ 14,697 $ 1,387 $ 6,053 $ 9,518 $ 638 $ 80,883 The following table presents the activity and balance in the ALL as of or for the three and six months ended June 30, 2022: ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Single Family Residential Mortgage Other Consumer Total ALL: Three Months Ended June 30, 2022: Balance at March 31, 2022 $ 39,967 $ 16,490 $ 15,337 $ 3,041 $ 6,268 $ 11,029 $ 1,094 $ 93,226 Charge-offs (138) — — (139) — — (217) (494) Recoveries 1,400 — — 3 — 154 4 1,561 Net recoveries (charge-offs) 1,262 — — (136) — 154 (213) 1,067 Provision for (reversal of) credit losses - loans 184 (748) 341 128 (2,013) 1,622 (14) (500) Balance at June 30, 2022 $ 41,413 $ 15,742 $ 15,678 $ 3,033 $ 4,255 $ 12,805 $ 867 $ 93,793 Six Months Ended June 30, 2022: Balance at December 31, 2021 $ 33,557 $ 21,727 $ 17,893 $ 3,017 $ 5,622 $ 9,608 $ 1,160 $ 92,584 Charge-offs (320) — — (152) — (10) (243) (725) Recoveries 32,817 — — 761 — 192 6 33,776 Net recoveries (charge-offs) 32,497 — — 609 — 182 (237) 33,051 (Reversal of) provision for credit losses - loans (24,641) (5,985) (2,215) (593) (1,367) 3,015 (56) (31,842) Balance at June 30, 2022 $ 41,413 $ 15,742 $ 15,678 $ 3,033 $ 4,255 $ 12,805 $ 867 $ 93,793 |
Schedule of Troubled Debt Restructurings | Loans modified for borrowers experiencing financial difficulty consisted of the following as of the dates indicated: ($ in thousands) Commercial and industrial Single family residential mortgage Total June 30, 2023 Interest rate reduction: Amortized cost basis $ — $ 1,071 $ 1,071 % of total class of loans — % 0.1 % — % Term extension: Amortized cost basis $ — $ 286 $ 286 % of total class of loans — % — % — % Combination - principal reduction and payment delays: Amortized cost basis $ 3,910 $ — $ 3,910 % of total class of loans 0.2 % — % 0.1 % Total amortized cost basis $ 3,910 $ 1,357 $ 5,267 Percentage of total class of loans 0.2 % 0.1 % 0.1 % |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying amount of goodwill for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Goodwill, beginning of period $ 114,312 $ 95,127 $ 114,312 $ 94,301 Goodwill adjustments for purchase accounting — — — 826 Goodwill, end of period $ 114,312 $ 95,127 $ 114,312 $ 95,127 |
Schedule of Finite-lived Intangible Assets | Other intangibles are comprised of the following at June 30, 2023 and December 31, 2022: ($ in thousands) June 30, December 31, Core deposit intangibles $ 3,363 $ 3,932 Developed technology 2,357 2,637 Other intangibles 883 957 Total other intangibles $ 6,603 $ 7,526 The following table presents changes in the carrying amount of other intangibles for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Other intangibles: Balance, beginning of period $ 38,778 $ 34,978 $ 38,778 $ 35,958 Purchase accounting adjustments — — — (980) Balance, end of period 38,778 34,978 38,778 34,978 Accumulated amortization: Balance, beginning of period 31,713 29,988 31,252 29,547 Amortization of other intangibles 462 313 923 754 Balance, end of period 32,175 30,301 32,175 30,301 Other intangibles $ 6,603 $ 4,677 $ 6,603 $ 4,677 |
Schedule of Estimated Future Amortization Expense | The following table presents estimated future amortization expense of other intangibles as of June 30, 2023: ($ in thousands) Remainder of 2023 2024 2025 2026 2027 2028 and After Total Estimated future amortization expense $ 876 $ 1,425 $ 1,107 $ 1,013 $ 811 $ 1,371 $ 6,603 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES, FEDERAL RESERVE BANK BORROWINGS AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Advances from the FHLB | The following table presents advances from the FHLB as of the dates indicated: ($ in thousands) June 30, December 31, Fixed rate: Outstanding balance (1) $ 811,000 $ 711,000 Interest rates ranging from 0.64 % 0.64 % Interest rates ranging to 3.70 % 3.70 % Weighted average interest rate 3.04 % 2.97 % Variable rate: Outstanding balance $ — $ 20,000 Weighted average interest rate — % 4.59 % |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The following table presents our long-term debt as of the dates indicated: June 30, 2023 December 31, 2022 ($ in thousands) Interest Maturity Par Unamortized Debt Issuance Cost and Discount Par Unamortized Debt Issuance Cost and Discount Senior notes 5.25% 4/15/2025 $ 174,000 $ (609) $ 175,000 $ (722) Subordinated notes (1) 4.375% 10/30/2030 85,000 (1,797) 85,000 (1,899) PMB Statutory Trust III, junior subordinated debentures SOFR + 3.40% 9/26/2032 7,217 — 7,217 — PMB Capital Trust III, junior subordinated debentures SOFR + 2.00% 10/8/2034 10,310 — 10,310 — Total $ 276,527 $ (2,406) $ 277,527 $ (2,621) (1) The Subordinated Notes bear interest at an initial fixed rate of 4.375% per annum, payable semi-annually in arrears. From and including October 30, 2025 to, but excluding, the maturity date or the date of earlier redemption, the Subordinated Notes bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be 3-Month Term SOFR, plus a spread of 419.5 basis points, payable quarterly in arrears. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Amount and Market Value of Mortgage Banking Derivatives | The following table presents the notional amount and fair value of our derivative instruments as of the dates indicated. June 30, 2023 December 31, 2022 ($ in thousands) Notional Amount Fair Notional Amount Fair Derivative assets: Interest rate swaps on loans $ 32,677 $ 2,158 $ 33,694 $ 2,134 Foreign exchange contracts 4,892 41 5,885 158 Total $ 37,569 $ 2,199 $ 39,579 $ 2,292 Derivative liabilities: Cash flow hedges $ 300,000 $ 454 $ — $ — Interest rate swaps on loans 32,677 2,138 33,694 2,107 Foreign exchange contracts 4,892 34 5,885 144 Total $ 337,569 $ 2,626 $ 39,579 $ 2,251 |
EMPLOYEE STOCK COMPENSATION (Ta
EMPLOYEE STOCK COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The following table presents total stock-based compensation expense and the related tax benefits for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Restricted stock awards and units $ 1,726 $ 1,482 $ 3,181 $ 2,767 Related tax benefits $ 499 $ 428 $ 920 $ 799 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table presents unvested restricted stock awards and restricted stock units activity for the three and six months ended June 30, 2023: Three Months Ended Six Months Ended Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Outstanding at beginning of period 1,450,539 $ 14.85 1,403,245 $ 14.68 Granted (1) 80,395 $ 10.20 374,200 $ 16.07 Vested (2) (51,294) $ 17.94 (283,077) $ 17.39 Forfeited (3) (129,430) $ 20.32 (144,158) $ 13.55 Outstanding at end of period 1,350,210 $ 14.61 1,350,210 $ 14.61 (1) There were zero and 79,784 performance-based shares/units included in shares granted for the three and six months ended June 30, 2023. (2) There were zero and 66,699 performance-based shares/units included in vested shares for the three and six months ended June 30, 2023. (3) The number of forfeited shares included aggregate performance-based shares/units of 113,650 and 124,882 for the three and six months ended June 30, 2023 . |
Schedule of Option Activity | The following tables represents stock option activity for the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 ($ in thousands, except per share data) Number Weighted-Average Exercise Price Per Share Number Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contract Term Aggregate Intrinsic Value Outstanding at beginning of period 14,904 $ 13.05 14,904 $ 13.05 Exercised — $ — — $ — Outstanding at end of period 14,904 $ 13.05 14,904 $ 13.05 1.8 years $ 2 Exercisable at end of period 14,904 $ 13.05 14,904 $ 13.05 1.8 years $ 2 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Preferred Stock | The following table summarizes redemptions and repurchases of these depositary shares for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Series E Preferred Stock: Depositary shares repurchased — — — 3,948,080 Preferred Stock retired (shares) — — — 98,702 Consideration paid $ — $ — $ — $ 98,703 Carrying value — — — 94,956 Impact of preferred stock redemption $ — $ — $ — $ 3,747 |
Schedule of Changes to Accumulate Other Comprehensive Income by Components | The following table presents changes to AOCI for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Balance at beginning of period $ (50,489) $ (19,172) $ (40,597) $ 7,743 Unrealized loss on securities available-for-sale: Unrealized loss arising during the period (7,334) (21,016) (12,857) (59,103) Reclassification adjustment from other comprehensive income — — — (16) Total unrealized loss on securities available-for-sale (7,334) (21,016) (12,857) (59,119) Amortization of unrealized loss of available-for-sale securities transferred to held-to-maturity 252 246 505 333 Unrealized gain (loss) on cash flow hedges: Unrealized gain (loss) arising during the period 8,168 — (454) — Tax effect of current period changes (355) 5,883 3,645 16,984 Total changes, net of taxes 731 (14,887) (9,161) (41,802) Balance at end of period $ (49,758) $ (34,059) $ (49,758) $ (34,059) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Variable Interest Entity [Line Items] | |
Schedule of Unconsolidated VIEs | The following table represents the carrying value of the associated unconsolidated assets and liabilities and the associated maximum loss exposure for alternative energy partnerships as of the dates indicated: ($ in thousands) June 30, December 31, Cash $ 2,910 $ 4,110 Equipment, net of depreciation 233,152 237,641 Other assets 10,078 9,838 Total unconsolidated assets $ 246,140 $ 251,589 Total unconsolidated liabilities $ 11,426 $ 11,679 Maximum loss exposure $ 19,111 $ 21,410 |
Variable Interest Entity, Not Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Schedule of Unconsolidated VIEs | The following table presents information regarding activity in our alternative energy partnerships for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Return of capital $ 352 $ 582 $ 717 $ 1,156 Gain (loss) on investments in alternative energy partnerships 36 (1,043) (1,582) (1,201) Tax expense (benefit) recognized from HLBV application 10 (301) (457) (347) |
Variable Interest Entity, Not Primary Beneficiary | Affordable Housing Fund Investment | |
Variable Interest Entity [Line Items] | |
Schedule of Unconsolidated VIEs | The following table presents information regarding balances in LIHTC investments for the periods indicated: ($ in thousands) June 30, December 31, Ending balance (1) $ 42,818 $ 45,726 Aggregate funding commitment 72,997 72,967 Total amount funded 57,290 55,487 Unfunded commitment 15,707 17,480 Maximum loss exposure 42,818 45,726 (1) Included in other assets in the accompanying Consolidated Statements of Financial Condition. The following table presents information regarding activity in our LIHTC investments for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Fundings $ 1,168 $ 919 $ 1,803 $ 2,024 Proportional amortization recognized 1,427 1,027 2,938 2,573 Income tax credits recognized 1,688 1,163 3,375 2,536 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share | The following table presents computations of basic and diluted earnings per common share (“EPS”) for the three and six months ended June 30, 2023: Three Months Ended June 30, 2023 Six Months Ended ($ in thousands except per share data) Common Stock Class B Common Stock Class B Common Stock Net income $ 17,732 $ 147 $ 37,846 $ 311 Weighted average common shares outstanding 57,503,213 477,321 58,017,185 477,321 Dilutive effects of restricted shares/units 45,268 — 104,941 — Dilutive effects of stock options 205 — 866 — Average shares and dilutive common shares 57,548,686 477,321 58,122,992 477,321 Basic earnings per common share $ 0.31 $ 0.31 $ 0.65 $ 0.65 Diluted earnings per common share $ 0.31 $ 0.31 $ 0.65 $ 0.65 The following table presents computations of basic and diluted EPS for the three and six months ended June 30, 2022: Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 ($ in thousands except per share data) Common Stock Class B Common Stock Common Stock Class B Common Stock Net income $ 26,504 $ 208 $ 74,645 $ 579 Less: preferred stock dividends — — (1,409) (11) Less: preferred stock redemption — — (3,718) (29) Net income allocated to common stockholders $ 26,504 $ 208 $ 69,518 $ 539 Weighted average common shares outstanding 60,873,481 477,321 61,497,261 477,321 Dilutive effects of stock units 245,571 — 269,093 — Dilutive effects of stock options 4,242 — 4,701 — Average shares and dilutive common shares 61,123,294 477,321 61,771,055 477,321 Basic earnings per common share $ 0.44 $ 0.44 $ 1.13 $ 1.13 Diluted earnings per common share $ 0.43 $ 0.44 $ 1.13 $ 1.13 |
LOAN COMMITMENTS AND OTHER RE_2
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Amount of Financial Instruments With Off-balance-sheet Risk | The following table presents the contractual amount of financial instruments with off-balance-sheet risk as of the periods indicated: June 30, 2023 December 31, 2022 ($ in thousands) Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to extend credit $ 39,729 $ 161,036 $ 50,193 $ 180,696 Unused lines of credit 47,334 1,330,913 8,392 1,505,122 Letters of credit 1,671 7,462 2,461 7,016 |
OTHER ASSETS AND OTHER LIABIL_2
OTHER ASSETS AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets and Other Liabilities | The following table presents the components of other assets as of the dates indicated: ($ in thousands) June 30, December 31, Accrued interest receivable $ 35,821 $ 37,942 Prepaid expenses 9,816 8,068 Derivative instruments (1) 2,199 2,292 Operating lease right-of-use assets 26,630 28,780 Servicing assets 21,051 22,484 Other real estate owned 882 — Income taxes receivable — 7,679 Investments: CRA and other equity investments (2) 94,703 90,295 LIHTCs (2) 42,818 45,726 Alternative energy partnerships (2) 19,111 21,410 Other assets 25,281 13,513 Total other assets $ 278,312 $ 278,189 (1) See Note 9 - Derivative Instruments for information regarding derivative instruments (2) See Note 12 - Variable Interest Entities regarding alternative energy partnerships, LIHTC and other CRA investments The following table presents the components of accrued expenses and other liabilities as of the dates indicated: ($ in thousands) June 30, December 31, Accrued interest payable $ 14,791 $ 7,004 Accounts payable and accrued expenses 43,791 37,560 Income taxes payable 682 — Derivative liabilities (1) 2,626 2,251 Lease liability 30,505 33,122 Commitments to fund LIHTC (2) 15,707 17,480 Reserve for unfunded noncancellable loan commitments 4,005 5,305 Reserve for loss on repurchased loans 1,977 2,989 Other liabilities 5,933 8,512 Total accrued expenses and other liabilities $ 120,017 $ 114,223 (1) See Note 9 - Derivative Instruments for information regarding derivative instruments (2) See Note 14 - Loan Commitments and Other Related Activities regarding commitments to fund LIHTC |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Noninterest (Loss) Income | The following table presents noninterest income, segregated by revenue streams, in-scope and out-of-scope of Topic 606 - Revenue From Contracts With Customers , for the periods indicated: Three Months Ended Six Months Ended ($ in thousands) 2023 2022 2023 2022 Noninterest income In scope of Topic 606 Deposit service fees $ 1,377 $ 1,627 $ 2,640 $ 3,281 Debit card fees 424 542 801 995 Other 331 137 699 296 Noninterest income (in-scope of Topic 606) 2,132 2,306 4,140 4,572 Noninterest income (out-of-scope of Topic 606) 3,892 4,880 9,743 8,524 Total noninterest income $ 6,024 $ 7,186 $ 13,883 $ 13,096 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | Jun. 30, 2023 branch office |
Accounting Policies [Abstract] | |
Number of offices | office | 33 |
Number of banking offices | branch | 27 |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 922,091 | $ 868,297 |
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Interest rate swaps and foreign exchange contracts | 2,626 | 2,251 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 922,091 | 868,297 |
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 922,091 | 868,297 |
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
SBA loan pool securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,215 | 11,187 |
SBA loan pool securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
SBA loan pool securities | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,215 | 11,187 |
SBA loan pool securities | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
SBA loan pool securities | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 9,215 | 11,187 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 81,708 | 40,206 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 81,708 | 40,206 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 81,708 | 40,206 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 89,260 | 93,191 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 89,260 | 93,191 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 89,260 | 93,191 |
Municipal securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Municipal securities | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Municipal securities | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Municipal securities | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Non-agency residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 111,508 | 80,492 |
Non-agency residential mortgage-backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-agency residential mortgage-backed securities | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 111,508 | 80,492 |
Non-agency residential mortgage-backed securities | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Non-agency residential mortgage-backed securities | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 111,508 | 80,492 |
Collateralized loan obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 482,831 | 476,603 |
Collateralized loan obligations | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Collateralized loan obligations | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 482,831 | 476,603 |
Collateralized loan obligations | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Collateralized loan obligations | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 482,831 | 476,603 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 147,569 | 166,618 |
Corporate debt securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate debt securities | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 147,569 | 166,618 |
Corporate debt securities | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate debt securities | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 147,569 | 166,618 |
Interest rate swaps and foreign exchange contracts | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Interest rate swaps and foreign exchange contracts | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Interest rate swaps and foreign exchange contracts | 2,172 | 2,251 |
Interest rate swaps and foreign exchange contracts | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Interest rate swaps and foreign exchange contracts | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Interest rate swaps and foreign exchange contracts | 2,172 | $ 2,251 |
Cash flow hedges | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 0 | |
Cash flow hedges | Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 454 | |
Cash flow hedges | Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | 0 | |
Cash flow hedges | Recurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps and foreign exchange contracts | $ 454 |
FAIR VALUES OF FINANCIAL INST_4
FAIR VALUES OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | $ 0 | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned: Single family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | |
Significant Other Observable Inputs (Level 2) | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | |
Significant Other Observable Inputs (Level 2) | Other real estate owned: Single family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 0 | |
Significant Unobservable Inputs (Level 3) | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 756 | 7,115 |
Significant Unobservable Inputs (Level 3) | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 16 | 3,704 |
Significant Unobservable Inputs (Level 3) | Other consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 93 | |
Significant Unobservable Inputs (Level 3) | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 3,600 | |
Significant Unobservable Inputs (Level 3) | Other real estate owned: Single family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 882 | |
Fair Value | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 756 | 7,115 |
Fair Value | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 16 | 3,704 |
Fair Value | Other consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | 93 | |
Fair Value | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | $ 3,600 | |
Fair Value | Other real estate owned: Single family residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Individually evaluated loans: | $ 882 |
FAIR VALUES OF FINANCIAL INST_5
FAIR VALUES OF FINANCIAL INSTRUMENTS - Gains and (Losses) on Non-Recurring Assets (Details) - Nonrecurring - Impaired Loans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Single family residential mortgage | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) recognized on assets measured at fair value | $ 0 | $ (1) | $ (43) | $ (340) |
Commercial and industrial | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) recognized on assets measured at fair value | (5,157) | (564) | (12,300) | (1,198) |
SBA | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) recognized on assets measured at fair value | (470) | (198) | (75) | (172) |
Other consumer | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) recognized on assets measured at fair value | (152) | (216) | (170) | (243) |
Commercial real estate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) recognized on assets measured at fair value | 0 | 0 | (300) | 0 |
Other real estate owned: Single family residential | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains (losses) recognized on assets measured at fair value | $ (165) | $ 0 | $ (165) | $ 0 |
FAIR VALUES OF FINANCIAL INST_6
FAIR VALUES OF FINANCIAL INSTRUMENTS - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial assets | ||
Cash and cash equivalents | $ 283,729 | $ 228,896 |
Securities held-to-maturity | 267,045 | 262,460 |
Securities available-for-sale | 922,091 | 868,297 |
Federal Home Loan Bank and other bank stock | 60,281 | 57,092 |
Loans receivable, net of allowance for credit losses | 6,578,187 | 6,526,916 |
Accrued interest receivable | 35,821 | 37,942 |
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Financial liabilities | ||
Deposits | 6,859,721 | 7,107,357 |
Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings | 1,116,711 | 699,730 |
Long-term debt | 256,378 | 269,673 |
Cash flow hedges | 454 | |
Interest rate swaps and foreign exchange contracts | 2,172 | 2,251 |
Accrued interest payable | 14,791 | 7,004 |
Fair value Measurement Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 283,729 | 228,896 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Federal Home Loan Bank and other bank stock | 0 | 0 |
Loans receivable, net of allowance for credit losses | 0 | 0 |
Accrued interest receivable | 35,821 | 37,942 |
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Financial liabilities | ||
Deposits | 5,217,484 | 5,931,500 |
Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Cash flow hedges | ||
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Accrued interest payable | 14,791 | 7,004 |
Fair value Measurement Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 267,045 | 262,460 |
Securities available-for-sale | 922,091 | 868,297 |
Federal Home Loan Bank and other bank stock | 60,281 | 57,092 |
Loans receivable, net of allowance for credit losses | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Financial liabilities | ||
Deposits | 1,642,237 | 1,175,857 |
Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings | 1,116,711 | 699,730 |
Long-term debt | 256,378 | 269,673 |
Cash flow hedges | 454 | |
Interest rate swaps and foreign exchange contracts | 2,172 | 2,251 |
Accrued interest payable | 0 | 0 |
Fair value Measurement Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Federal Home Loan Bank and other bank stock | 0 | 0 |
Loans receivable, net of allowance for credit losses | 6,578,187 | 6,526,916 |
Accrued interest receivable | 0 | 0 |
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Cash flow hedges | ||
Interest rate swaps and foreign exchange contracts | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 283,729 | 228,896 |
Securities held-to-maturity | 328,405 | 328,641 |
Securities available-for-sale | 922,091 | 868,297 |
Federal Home Loan Bank and other bank stock | 60,281 | 57,092 |
Loans receivable, net of allowance for credit losses | 7,075,323 | 7,029,078 |
Accrued interest receivable | 35,821 | 37,942 |
Interest rate swaps and foreign exchange contracts | 2,199 | 2,292 |
Financial liabilities | ||
Deposits | 6,871,076 | 7,120,921 |
Advances from Federal Home Loan Bank and Federal Reserve Bank borrowings | 1,147,997 | 727,348 |
Long-term debt | 274,121 | 274,906 |
Cash flow hedges | 454 | |
Interest rate swaps and foreign exchange contracts | 2,172 | 2,251 |
Accrued interest payable | $ 14,791 | $ 7,004 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Securities held-to-maturity: | ||
Amortized cost | $ 328,405 | $ 328,641 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (61,360) | (66,181) |
Allowance for Credit Losses | 0 | 0 |
Securities held-to-maturity | 267,045 | 262,460 |
Securities available-for-sale: | ||
Amortized cost | 977,249 | 909,563 |
Gross Unrealized Gains | 7 | 32 |
Gross Unrealized Losses | (54,129) | (41,298) |
Allowance for Credit Losses | (1,036) | 0 |
Available-for-sale securities | 922,091 | 868,297 |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | ||
Securities held-to-maturity: | ||
Amortized cost | 152,843 | 153,033 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (27,987) | (29,807) |
Allowance for Credit Losses | 0 | 0 |
Securities held-to-maturity | 124,856 | 123,226 |
Securities available-for-sale: | ||
Amortized cost | 82,913 | 40,431 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,205) | (225) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale securities | 81,708 | 40,206 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | ||
Securities held-to-maturity: | ||
Amortized cost | 61,359 | 61,404 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (11,937) | (11,946) |
Allowance for Credit Losses | 0 | 0 |
Securities held-to-maturity | 49,422 | 49,458 |
Securities available-for-sale: | ||
Amortized cost | 95,760 | 99,075 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6,500) | (5,884) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale securities | 89,260 | 93,191 |
Municipal securities | ||
Securities held-to-maturity: | ||
Amortized cost | 114,203 | 114,204 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (21,436) | (24,428) |
Allowance for Credit Losses | 0 | 0 |
Securities held-to-maturity | 92,767 | 89,776 |
SBA loan pool securities | ||
Securities available-for-sale: | ||
Amortized cost | 9,251 | 11,241 |
Gross Unrealized Gains | 7 | 0 |
Gross Unrealized Losses | (43) | (54) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale securities | 9,215 | 11,187 |
Non-agency residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Amortized cost | 122,995 | 90,832 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (11,487) | (10,340) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale securities | 111,508 | 80,492 |
Collateralized loan obligations | ||
Securities available-for-sale: | ||
Amortized cost | 490,534 | 492,203 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7,703) | (15,600) |
Allowance for Credit Losses | 0 | 0 |
Available-for-sale securities | 482,831 | 476,603 |
Corporate debt securities | ||
Securities available-for-sale: | ||
Amortized cost | 175,796 | 175,781 |
Gross Unrealized Gains | 0 | 32 |
Gross Unrealized Losses | (27,191) | (9,195) |
Allowance for Credit Losses | (1,036) | 0 |
Available-for-sale securities | $ 147,569 | $ 166,618 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) security | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Gross unrealized loss | $ 61,360 | $ 61,360 | $ 66,181 | |||
Accrued interest receivable on loans receivable | $ 10,400 | $ 10,400 | $ 9,200 | |||
Securities available for sale portfolio | security | 86 | 86 | 77 | |||
Available for sale securities in unrealized loss position | security | 85 | 85 | 76 | |||
Credit losses on available for sale securities | $ 0 | $ 0 | ||||
Credit losses on held to maturity securities | $ 0 | $ 0 | ||||
Investment Grade | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Available for sale securities in unrealized loss position | security | 82 | 82 | ||||
Corporate debt securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Credit losses on available for sale securities | $ 1,000 | $ 1,000 | ||||
Number of corporate debt securities | security | 3 | 3 | ||||
Certain Longer Duration Fixed-Rate Mortgage Backed Securities and Municipal Securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized cost basis, transferred from the available-for-sale portfolio to the held-to-maturity portfolio | $ 346,000 | |||||
Available-for-sale securities, accumulated gross unrealized loss, before tax | $ 16,600 | |||||
Gross unrealized loss | $ 15,300 | $ 15,300 | ||||
Collateral Pledged | FRB Discount Window | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Securities pledged | $ 535,100 | $ 535,100 | $ 356,500 |
INVESTMENT SECURITIES - Proceed
INVESTMENT SECURITIES - Proceeds from Sales and Calls of Securities and Associated Gross Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Gross realized gains | $ 0 | $ 0 | $ 0 | $ 209 | |
Gross realized losses | 0 | 0 | 0 | (193) | |
Net realized gains on sales and calls | 0 | $ 0 | 0 | 0 | 16 |
Proceeds from sales and calls | $ 20,000 | $ 38,500 | $ 20,000 | $ 56,146 |
INVESTMENT SECURITIES - Summa_2
INVESTMENT SECURITIES - Summary of Investment Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Securities available-for-sale: | ||
Less Than 12 Months | $ 341,191 | $ 594,827 |
12 Months or Longer | 579,143 | 270,524 |
Total | 920,334 | 865,351 |
Gross Unrealized Losses | ||
Less Than 12 Months | (14,452) | (28,967) |
12 Months or Longer | (39,677) | (12,331) |
Total | (54,129) | (41,298) |
SBA loan pool securities | ||
Securities available-for-sale: | ||
Less Than 12 Months | 0 | 2,260 |
12 Months or Longer | 7,461 | 8,927 |
Total | 7,461 | 11,187 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (3) |
12 Months or Longer | (43) | (51) |
Total | (43) | (54) |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Less Than 12 Months | 81,708 | 40,206 |
12 Months or Longer | 0 | 0 |
Total | 81,708 | 40,206 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,205) | (225) |
12 Months or Longer | 0 | 0 |
Total | (1,205) | (225) |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Less Than 12 Months | 51,780 | 76,441 |
12 Months or Longer | 37,478 | 16,750 |
Total | 89,258 | 93,191 |
Gross Unrealized Losses | ||
Less Than 12 Months | (767) | (2,533) |
12 Months or Longer | (5,733) | (3,351) |
Total | (6,500) | (5,884) |
Non-agency residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Less Than 12 Months | 71,394 | 80,492 |
12 Months or Longer | 40,114 | 0 |
Total | 111,508 | 80,492 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,734) | (10,340) |
12 Months or Longer | (9,753) | 0 |
Total | (11,487) | (10,340) |
Collateralized loan obligations | ||
Securities available-for-sale: | ||
Less Than 12 Months | 41,278 | 235,936 |
12 Months or Longer | 441,552 | 240,667 |
Total | 482,830 | 476,603 |
Gross Unrealized Losses | ||
Less Than 12 Months | (481) | (7,492) |
12 Months or Longer | (7,222) | (8,108) |
Total | (7,703) | (15,600) |
Corporate debt securities | ||
Securities available-for-sale: | ||
Less Than 12 Months | 95,031 | 159,492 |
12 Months or Longer | 52,538 | 4,180 |
Total | 147,569 | 163,672 |
Gross Unrealized Losses | ||
Less Than 12 Months | (10,265) | (8,374) |
12 Months or Longer | (16,926) | (821) |
Total | $ (27,191) | $ (9,195) |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturity Schedule (Detail) $ in Thousands | Jun. 30, 2023 USD ($) |
Amortized Cost | |
Within one year | $ 0 |
One to five years | 0 |
Five to ten years | 37,339 |
Greater than ten years | 291,066 |
Total | 328,405 |
Fair Value | |
Within one year | 0 |
One to five years | 0 |
Five to ten years | 31,963 |
Greater than ten years | 235,082 |
Total | 267,045 |
Amortized Cost | |
Within one year | 505,106 |
One to five years | 171,438 |
Five to ten years | 42,240 |
Greater than ten years | 258,465 |
Total | 977,249 |
Fair Value | |
Within one year | 497,279 |
One to five years | 144,892 |
Five to ten years | 34,914 |
Greater than ten years | 245,006 |
Total | $ 922,091 |
INVESTMENT SECURITIES - Composi
INVESTMENT SECURITIES - Composition, Repricing and Yield Information of Investment Securities Portfolio (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Fair Value | |
One year or less | $ 497,279 |
More than One Year through Five Years | 144,892 |
More than Five Years through Ten Years | 34,914 |
More than Ten Years | 245,006 |
Total | $ 922,091 |
Weighted-Average Yield | |
One year or less | 6.81% |
More than One Year through Five Years | 4.76% |
More than Five Years through Ten Years | 3.95% |
More than Ten Years | 4.70% |
Total | 5.77% |
Amortized Cost | |
One year or less | $ 0 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 37,339 |
More than Ten Years | 291,066 |
Total | $ 328,405 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 2.37% |
More than Ten Years | 2.69% |
Total | 2.66% |
SBA loan pool securities | |
Fair Value | |
One year or less | $ 9,215 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 0 |
More than Ten Years | 0 |
Total | $ 9,215 |
Weighted-Average Yield | |
One year or less | 3.87% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 0% |
More than Ten Years | 0% |
Total | 3.87% |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | |
Fair Value | |
One year or less | $ 0 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 0 |
More than Ten Years | 81,708 |
Total | $ 81,708 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 0% |
More than Ten Years | 5.54% |
Total | 5.54% |
Amortized Cost | |
One year or less | $ 0 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 9,344 |
More than Ten Years | 143,499 |
Total | $ 152,843 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 2.52% |
More than Ten Years | 2.70% |
Total | 2.69% |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | |
Fair Value | |
One year or less | $ 5,233 |
More than One Year through Five Years | 7,795 |
More than Five Years through Ten Years | 24,442 |
More than Ten Years | 51,790 |
Total | $ 89,260 |
Weighted-Average Yield | |
One year or less | 5.70% |
More than One Year through Five Years | 3.61% |
More than Five Years through Ten Years | 3.14% |
More than Ten Years | 5.19% |
Total | 4.45% |
Amortized Cost | |
One year or less | $ 0 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 0 |
More than Ten Years | 61,359 |
Total | $ 61,359 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 0% |
More than Ten Years | 2.64% |
Total | 2.64% |
Non-agency residential mortgage-backed securities | |
Fair Value | |
One year or less | $ 0 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 0 |
More than Ten Years | 111,508 |
Total | $ 111,508 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 0% |
More than Ten Years | 3.92% |
Total | 3.92% |
Collateralized loan obligations | |
Fair Value | |
One year or less | $ 482,831 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 0 |
More than Ten Years | 0 |
Total | $ 482,831 |
Weighted-Average Yield | |
One year or less | 6.88% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 0% |
More than Ten Years | 0% |
Total | 6.88% |
Corporate debt securities | |
Fair Value | |
One year or less | $ 0 |
More than One Year through Five Years | 137,097 |
More than Five Years through Ten Years | 10,472 |
More than Ten Years | 0 |
Total | $ 147,569 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 4.82% |
More than Five Years through Ten Years | 5.73% |
More than Ten Years | 0% |
Total | 4.89% |
Municipal securities | |
Amortized Cost | |
One year or less | $ 0 |
More than One Year through Five Years | 0 |
More than Five Years through Ten Years | 27,995 |
More than Ten Years | 86,208 |
Total | $ 114,203 |
Weighted-Average Yield | |
One year or less | 0% |
More than One Year through Five Years | 0% |
More than Five Years through Ten Years | 2.32% |
More than Ten Years | 2.72% |
Total | 2.62% |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 7,156,206 | $ 7,115,038 | ||||
Allowance for loan losses | (80,883) | (85,960) | ||||
Loans receivable, net | 7,075,323 | 7,029,078 | ||||
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | (84,888) | $ (89,365) | (91,265) | $ (99,698) | $ (98,631) | $ (98,189) |
Commercial | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 2,000,408 | 1,845,960 | ||||
Commercial | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,266,438 | 1,259,651 | ||||
Commercial | Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,654,152 | 1,689,943 | ||||
Commercial | SBA | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 62,898 | 68,137 | ||||
Commercial | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 264,684 | 243,553 | ||||
Commercial | Warehouse Lending Balances | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 786,100 | 602,500 | ||||
Consumer | Single family residential mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 1,820,721 | 1,920,806 | ||||
Consumer | Other consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 86,905 | $ 86,988 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Participating Mortgage Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balance | $ 7,148,929 | $ 7,107,897 |
Unamortized net premiums | 16,997 | 18,319 |
Unamortized net deferred (fees) costs | (1,238) | (1,880) |
Fair value adjustment | (8,482) | (9,298) |
Loans receivable, net | 7,156,206 | 7,115,038 |
PMB Acquisition | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustment | (7,400) | (8,000) |
PMB Acquisition | PCD loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair value adjustment | $ (3,700) | $ (4,100) |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Credit Quality Indicators Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Loans delinquent | 60 days |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Categories for Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | $ 121,607 | $ 1,998,375 |
Origination year - 1 year prior to current fiscal year | 2,005,243 | 1,872,031 |
Origination year - 2 years prior to current fiscal year | 1,827,925 | 400,895 |
Origination year - 3 years prior to current fiscal year | 385,660 | 448,871 |
Origination year - 4 years prior to current fiscal year | 417,159 | 463,840 |
Origination year - more than 4 years prior to current fiscal year | 1,201,924 | 904,185 |
Revolving Loans Amortized Cost Basis | 1,163,136 | 986,982 |
Revolving Loans Amortized Cost Basis Converted to Term | 33,552 | 39,859 |
Loans receivable, net | 7,156,206 | 7,115,038 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 117,697 | 1,989,255 |
Origination year - 1 year prior to current fiscal year | 1,988,207 | 1,852,546 |
Origination year - 2 years prior to current fiscal year | 1,810,603 | 391,307 |
Origination year - 3 years prior to current fiscal year | 377,708 | 442,486 |
Origination year - 4 years prior to current fiscal year | 400,143 | 436,519 |
Origination year - more than 4 years prior to current fiscal year | 1,138,359 | 842,552 |
Revolving Loans Amortized Cost Basis | 1,134,143 | 945,147 |
Revolving Loans Amortized Cost Basis Converted to Term | 28,747 | 32,041 |
Loans receivable, net | 6,995,607 | 6,931,853 |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 1,716 |
Origination year - 1 year prior to current fiscal year | 1,568 | 19,421 |
Origination year - 2 years prior to current fiscal year | 10,469 | 4,039 |
Origination year - 3 years prior to current fiscal year | 2,995 | 1,540 |
Origination year - 4 years prior to current fiscal year | 15,716 | 3,580 |
Origination year - more than 4 years prior to current fiscal year | 12,561 | 16,142 |
Revolving Loans Amortized Cost Basis | 7,149 | 17,204 |
Revolving Loans Amortized Cost Basis Converted to Term | 445 | 538 |
Loans receivable, net | 50,903 | 64,180 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 7,404 |
Origination year - 1 year prior to current fiscal year | 15,468 | 64 |
Origination year - 2 years prior to current fiscal year | 6,853 | 5,549 |
Origination year - 3 years prior to current fiscal year | 4,886 | 841 |
Origination year - 4 years prior to current fiscal year | 1,300 | 23,741 |
Origination year - more than 4 years prior to current fiscal year | 51,004 | 45,491 |
Revolving Loans Amortized Cost Basis | 16,466 | 24,631 |
Revolving Loans Amortized Cost Basis Converted to Term | 4,058 | 7,280 |
Loans receivable, net | 100,035 | 115,001 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 3,910 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 71 | 4,004 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 5,378 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 302 | 0 |
Loans receivable, net | 9,661 | 4,004 |
Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 54,175 | 273,200 |
Origination year - 1 year prior to current fiscal year | 255,919 | 189,780 |
Origination year - 2 years prior to current fiscal year | 176,021 | 66,975 |
Origination year - 3 years prior to current fiscal year | 57,302 | 57,507 |
Origination year - 4 years prior to current fiscal year | 47,205 | 80,442 |
Origination year - more than 4 years prior to current fiscal year | 242,089 | 178,651 |
Revolving Loans Amortized Cost Basis | 1,146,744 | 972,618 |
Revolving Loans Amortized Cost Basis Converted to Term | 20,953 | 26,787 |
Loans receivable, net | 2,000,408 | 1,845,960 |
Commercial | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 50,265 | 269,367 |
Origination year - 1 year prior to current fiscal year | 250,300 | 170,513 |
Origination year - 2 years prior to current fiscal year | 172,125 | 62,931 |
Origination year - 3 years prior to current fiscal year | 54,809 | 53,001 |
Origination year - 4 years prior to current fiscal year | 38,087 | 76,811 |
Origination year - more than 4 years prior to current fiscal year | 219,373 | 164,394 |
Revolving Loans Amortized Cost Basis | 1,120,399 | 932,464 |
Revolving Loans Amortized Cost Basis Converted to Term | 17,845 | 19,803 |
Loans receivable, net | 1,923,203 | 1,749,284 |
Commercial | Commercial and industrial | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 1,568 | 19,203 |
Origination year - 2 years prior to current fiscal year | 3,761 | 1,042 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 8,817 | 1 |
Origination year - more than 4 years prior to current fiscal year | 9,660 | 11,528 |
Revolving Loans Amortized Cost Basis | 6,800 | 17,142 |
Revolving Loans Amortized Cost Basis Converted to Term | 392 | 483 |
Loans receivable, net | 30,998 | 49,399 |
Commercial | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 3,833 |
Origination year - 1 year prior to current fiscal year | 4,051 | 64 |
Origination year - 2 years prior to current fiscal year | 135 | 3,002 |
Origination year - 3 years prior to current fiscal year | 2,422 | 502 |
Origination year - 4 years prior to current fiscal year | 301 | 3,630 |
Origination year - more than 4 years prior to current fiscal year | 13,056 | 2,729 |
Revolving Loans Amortized Cost Basis | 14,167 | 23,012 |
Revolving Loans Amortized Cost Basis Converted to Term | 2,716 | 6,501 |
Loans receivable, net | 36,848 | 43,273 |
Commercial | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 3,910 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 71 | 4,004 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 5,378 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 9,359 | 4,004 |
Commercial | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 25,752 | 348,298 |
Origination year - 1 year prior to current fiscal year | 395,564 | 363,335 |
Origination year - 2 years prior to current fiscal year | 347,916 | 60,564 |
Origination year - 3 years prior to current fiscal year | 59,987 | 94,772 |
Origination year - 4 years prior to current fiscal year | 89,720 | 155,791 |
Origination year - more than 4 years prior to current fiscal year | 344,337 | 234,757 |
Revolving Loans Amortized Cost Basis | 2,265 | 2,073 |
Revolving Loans Amortized Cost Basis Converted to Term | 897 | 61 |
Loans receivable, net | 1,266,438 | 1,259,651 |
Commercial | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 25,752 | 348,298 |
Origination year - 1 year prior to current fiscal year | 393,803 | 363,335 |
Origination year - 2 years prior to current fiscal year | 342,564 | 60,564 |
Origination year - 3 years prior to current fiscal year | 59,987 | 94,772 |
Origination year - 4 years prior to current fiscal year | 82,821 | 155,790 |
Origination year - more than 4 years prior to current fiscal year | 343,679 | 224,213 |
Revolving Loans Amortized Cost Basis | 2,265 | 1,163 |
Revolving Loans Amortized Cost Basis Converted to Term | 57 | 61 |
Loans receivable, net | 1,250,928 | 1,248,196 |
Commercial | Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 5,352 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 6,899 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 1,745 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 12,251 | 1,745 |
Commercial | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 1,761 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 1 |
Origination year - more than 4 years prior to current fiscal year | 658 | 8,799 |
Revolving Loans Amortized Cost Basis | 0 | 910 |
Revolving Loans Amortized Cost Basis Converted to Term | 840 | 0 |
Loans receivable, net | 3,259 | 9,710 |
Commercial | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 0 | 0 |
Commercial | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 23,474 | 626,186 |
Origination year - 1 year prior to current fiscal year | 624,664 | 390,928 |
Origination year - 2 years prior to current fiscal year | 387,413 | 157,633 |
Origination year - 3 years prior to current fiscal year | 156,608 | 229,511 |
Origination year - 4 years prior to current fiscal year | 225,130 | 120,956 |
Origination year - more than 4 years prior to current fiscal year | 227,645 | 155,419 |
Revolving Loans Amortized Cost Basis | 3 | 3 |
Revolving Loans Amortized Cost Basis Converted to Term | 9,215 | 9,307 |
Loans receivable, net | 1,654,152 | 1,689,943 |
Commercial | Multifamily | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 23,474 | 626,186 |
Origination year - 1 year prior to current fiscal year | 624,664 | 390,928 |
Origination year - 2 years prior to current fiscal year | 387,413 | 154,636 |
Origination year - 3 years prior to current fiscal year | 153,613 | 229,511 |
Origination year - 4 years prior to current fiscal year | 225,130 | 109,887 |
Origination year - more than 4 years prior to current fiscal year | 212,731 | 138,063 |
Revolving Loans Amortized Cost Basis | 3 | 3 |
Revolving Loans Amortized Cost Basis Converted to Term | 9,215 | 9,307 |
Loans receivable, net | 1,636,243 | 1,658,521 |
Commercial | Multifamily | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 2,997 |
Origination year - 3 years prior to current fiscal year | 2,995 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 2,995 | 2,997 |
Commercial | Multifamily | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 11,069 |
Origination year - more than 4 years prior to current fiscal year | 14,914 | 17,356 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 14,914 | 28,425 |
Commercial | Multifamily | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 0 | 0 |
Commercial | SBA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 9,421 |
Origination year - 1 year prior to current fiscal year | 9,288 | 15,468 |
Origination year - 2 years prior to current fiscal year | 12,875 | 4,329 |
Origination year - 3 years prior to current fiscal year | 3,846 | 6,238 |
Origination year - 4 years prior to current fiscal year | 6,664 | 1,762 |
Origination year - more than 4 years prior to current fiscal year | 28,296 | 28,785 |
Revolving Loans Amortized Cost Basis | 677 | 1,231 |
Revolving Loans Amortized Cost Basis Converted to Term | 1,252 | 903 |
Loans receivable, net | 62,898 | 68,137 |
Commercial | SBA | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 9,421 |
Origination year - 1 year prior to current fiscal year | 9,288 | 15,468 |
Origination year - 2 years prior to current fiscal year | 12,199 | 4,009 |
Origination year - 3 years prior to current fiscal year | 3,543 | 5,899 |
Origination year - 4 years prior to current fiscal year | 5,787 | 1,176 |
Origination year - more than 4 years prior to current fiscal year | 19,274 | 19,090 |
Revolving Loans Amortized Cost Basis | 326 | 603 |
Revolving Loans Amortized Cost Basis Converted to Term | 447 | 123 |
Loans receivable, net | 50,864 | 55,789 |
Commercial | SBA | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 676 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 201 |
Origination year - more than 4 years prior to current fiscal year | 579 | 598 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 1 | 1 |
Loans receivable, net | 1,256 | 800 |
Commercial | SBA | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 320 |
Origination year - 3 years prior to current fiscal year | 303 | 339 |
Origination year - 4 years prior to current fiscal year | 877 | 385 |
Origination year - more than 4 years prior to current fiscal year | 8,443 | 9,097 |
Revolving Loans Amortized Cost Basis | 351 | 628 |
Revolving Loans Amortized Cost Basis Converted to Term | 502 | 779 |
Loans receivable, net | 10,476 | 11,548 |
Commercial | SBA | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 302 | 0 |
Loans receivable, net | 302 | 0 |
Commercial | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 1,996 | 85,430 |
Origination year - 1 year prior to current fiscal year | 96,130 | 98,572 |
Origination year - 2 years prior to current fiscal year | 113,770 | 27,704 |
Origination year - 3 years prior to current fiscal year | 27,795 | 6,495 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 24,984 | 25,352 |
Revolving Loans Amortized Cost Basis | 9 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 264,684 | 243,553 |
Commercial | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 1,996 | 85,430 |
Origination year - 1 year prior to current fiscal year | 96,130 | 98,572 |
Origination year - 2 years prior to current fiscal year | 113,770 | 27,704 |
Origination year - 3 years prior to current fiscal year | 27,795 | 6,495 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 24,984 | 25,352 |
Revolving Loans Amortized Cost Basis | 9 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 264,684 | 243,553 |
Commercial | Construction | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 0 | 0 |
Commercial | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 0 | 0 |
Commercial | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 0 | 0 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 632,500 |
Origination year - 1 year prior to current fiscal year | 604,706 | 797,962 |
Origination year - 2 years prior to current fiscal year | 776,227 | 74,829 |
Origination year - 3 years prior to current fiscal year | 72,472 | 48,821 |
Origination year - 4 years prior to current fiscal year | 44,030 | 101,443 |
Origination year - more than 4 years prior to current fiscal year | 318,974 | 265,251 |
Revolving Loans Amortized Cost Basis | 4,312 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 1,820,721 | 1,920,806 |
Consumer | Single family residential mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 627,213 |
Origination year - 1 year prior to current fiscal year | 595,050 | 797,744 |
Origination year - 2 years prior to current fiscal year | 768,940 | 72,658 |
Origination year - 3 years prior to current fiscal year | 70,311 | 47,284 |
Origination year - 4 years prior to current fiscal year | 44,030 | 89,492 |
Origination year - more than 4 years prior to current fiscal year | 302,777 | 255,520 |
Revolving Loans Amortized Cost Basis | 2,445 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 1,783,553 | 1,889,911 |
Consumer | Single family residential mortgage | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 1,716 |
Origination year - 1 year prior to current fiscal year | 0 | 218 |
Origination year - 2 years prior to current fiscal year | 680 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 1,537 |
Origination year - 4 years prior to current fiscal year | 0 | 3,378 |
Origination year - more than 4 years prior to current fiscal year | 2,321 | 2,252 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 3,001 | 9,101 |
Consumer | Single family residential mortgage | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 3,571 |
Origination year - 1 year prior to current fiscal year | 9,656 | 0 |
Origination year - 2 years prior to current fiscal year | 6,607 | 2,171 |
Origination year - 3 years prior to current fiscal year | 2,161 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 8,573 |
Origination year - more than 4 years prior to current fiscal year | 13,876 | 7,479 |
Revolving Loans Amortized Cost Basis | 1,867 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 34,167 | 21,794 |
Consumer | Single family residential mortgage | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 0 | 0 |
Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 16,210 | 23,340 |
Origination year - 1 year prior to current fiscal year | 18,972 | 15,986 |
Origination year - 2 years prior to current fiscal year | 13,703 | 8,861 |
Origination year - 3 years prior to current fiscal year | 7,650 | 5,527 |
Origination year - 4 years prior to current fiscal year | 4,410 | 3,446 |
Origination year - more than 4 years prior to current fiscal year | 15,599 | 15,970 |
Revolving Loans Amortized Cost Basis | 9,126 | 11,057 |
Revolving Loans Amortized Cost Basis Converted to Term | 1,235 | 2,801 |
Loans receivable, net | 86,905 | 86,988 |
Consumer | Other consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 16,210 | 23,340 |
Origination year - 1 year prior to current fiscal year | 18,972 | 15,986 |
Origination year - 2 years prior to current fiscal year | 13,592 | 8,805 |
Origination year - 3 years prior to current fiscal year | 7,650 | 5,524 |
Origination year - 4 years prior to current fiscal year | 4,288 | 3,363 |
Origination year - more than 4 years prior to current fiscal year | 15,541 | 15,920 |
Revolving Loans Amortized Cost Basis | 8,696 | 10,914 |
Revolving Loans Amortized Cost Basis Converted to Term | 1,183 | 2,747 |
Loans receivable, net | 86,132 | 86,599 |
Consumer | Other consumer | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 3 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 1 | 19 |
Revolving Loans Amortized Cost Basis | 349 | 62 |
Revolving Loans Amortized Cost Basis Converted to Term | 52 | 54 |
Loans receivable, net | 402 | 138 |
Consumer | Other consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 111 | 56 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 122 | 83 |
Origination year - more than 4 years prior to current fiscal year | 57 | 31 |
Revolving Loans Amortized Cost Basis | 81 | 81 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | 371 | 251 |
Consumer | Other consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - current fiscal year | 0 | 0 |
Origination year - 1 year prior to current fiscal year | 0 | 0 |
Origination year - 2 years prior to current fiscal year | 0 | 0 |
Origination year - 3 years prior to current fiscal year | 0 | 0 |
Origination year - 4 years prior to current fiscal year | 0 | 0 |
Origination year - more than 4 years prior to current fiscal year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Amortized Cost Basis Converted to Term | 0 | 0 |
Loans receivable, net | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | $ 7,156,206 | $ 7,115,038 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 48,287 | 41,101 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 16,459 | 5,565 |
Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 40,169 | 44,554 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 104,915 | 91,220 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 7,051,291 | 7,023,818 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 2,000,408 | 1,845,960 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,266,438 | 1,259,651 |
Commercial | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,654,152 | 1,689,943 |
Commercial | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 62,898 | 68,137 |
Commercial | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 264,684 | 243,553 |
Commercial | Loans and Finance Receivables, Traditional | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 2,000,408 | 1,845,960 |
Commercial | Loans and Finance Receivables, Traditional | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,430 | 4,002 |
Commercial | Loans and Finance Receivables, Traditional | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 4,442 | 481 |
Commercial | Loans and Finance Receivables, Traditional | Commercial and industrial | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 16,631 | 13,833 |
Commercial | Loans and Finance Receivables, Traditional | Commercial and industrial | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 22,503 | 18,316 |
Commercial | Loans and Finance Receivables, Traditional | Commercial and industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,977,905 | 1,827,644 |
Commercial | Loans and Finance Receivables, Traditional | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,266,438 | 1,259,651 |
Commercial | Loans and Finance Receivables, Traditional | Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 2,047 | 311 |
Commercial | Loans and Finance Receivables, Traditional | Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 831 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Commercial real estate | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,760 | 910 |
Commercial | Loans and Finance Receivables, Traditional | Commercial real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 4,638 | 1,221 |
Commercial | Loans and Finance Receivables, Traditional | Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,261,800 | 1,258,430 |
Commercial | Loans and Finance Receivables, Traditional | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,654,152 | 1,689,943 |
Commercial | Loans and Finance Receivables, Traditional | Multifamily | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Multifamily | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,124 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Multifamily | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Multifamily | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,124 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Multifamily | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,653,028 | 1,689,943 |
Commercial | Loans and Finance Receivables, Traditional | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 62,898 | 68,137 |
Commercial | Loans and Finance Receivables, Traditional | SBA | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 735 | 287 |
Commercial | Loans and Finance Receivables, Traditional | SBA | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 247 | 0 |
Commercial | Loans and Finance Receivables, Traditional | SBA | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 9,193 | 10,299 |
Commercial | Loans and Finance Receivables, Traditional | SBA | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 10,175 | 10,586 |
Commercial | Loans and Finance Receivables, Traditional | SBA | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 52,723 | 57,551 |
Commercial | Loans and Finance Receivables, Traditional | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 264,684 | 243,553 |
Commercial | Loans and Finance Receivables, Traditional | Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Construction | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Construction | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Construction | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial | Loans and Finance Receivables, Traditional | Construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 264,684 | 243,553 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,820,721 | 1,920,806 |
Consumer | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 86,905 | 86,988 |
Consumer | Loans and Finance Receivables, Traditional | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,820,721 | 1,920,806 |
Consumer | Loans and Finance Receivables, Traditional | Single family residential mortgage | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 43,956 | 36,338 |
Consumer | Loans and Finance Receivables, Traditional | Single family residential mortgage | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 9,466 | 5,068 |
Consumer | Loans and Finance Receivables, Traditional | Single family residential mortgage | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 12,504 | 19,431 |
Consumer | Loans and Finance Receivables, Traditional | Single family residential mortgage | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 65,926 | 60,837 |
Consumer | Loans and Finance Receivables, Traditional | Single family residential mortgage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 1,754,795 | 1,859,969 |
Consumer | Loans and Finance Receivables, Traditional | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 86,905 | 86,988 |
Consumer | Loans and Finance Receivables, Traditional | Other consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 119 | 163 |
Consumer | Loans and Finance Receivables, Traditional | Other consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 349 | 16 |
Consumer | Loans and Finance Receivables, Traditional | Other consumer | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 81 | 81 |
Consumer | Loans and Finance Receivables, Traditional | Other consumer | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 549 | 260 |
Consumer | Loans and Finance Receivables, Traditional | Other consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | $ 86,356 | $ 86,728 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Composition of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | $ 67,306 | $ 55,251 |
Nonaccrual Loans with no ACL | 56,681 | 34,864 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 21,228 | 22,613 |
Nonaccrual Loans with no ACL | 10,824 | 10,959 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 2,600 | 910 |
Nonaccrual Loans with no ACL | 2,600 | 910 |
Commercial | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 9,611 | 10,417 |
Nonaccrual Loans with no ACL | 9,502 | 5,613 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 33,496 | 21,116 |
Nonaccrual Loans with no ACL | 33,495 | 17,187 |
Consumer | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total non-accrual loans | 371 | 195 |
Nonaccrual Loans with no ACL | $ 260 | $ 195 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Nonaccrual Loans and Leases Additional Information (Details) $ in Thousands | Jun. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan |
Financing Receivable, Past Due [Line Items] | ||
Loans 90 days past due and still accruing | $ 0 | $ 0 |
Other real estate owned, net | 882 | 0 |
Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Other real estate owned, net | $ 900 | $ 0 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Number of loans in process of foreclosure | loan | 4 | 9 |
Loans in process of foreclosure | $ 3,200 | $ 11,700 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses-Loans Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded loan commitments | $ 80,883 | $ 85,960 | |
Allowance for loan losses recovery from settlement of charged off | $ 31,300 | ||
Accrued interest receivable on loans receivable | 10,400 | 9,200 | |
Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accrued interest receivable on loans receivable | 25,100 | 28,600 | |
Unfunded Loan Commitment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unfunded loan commitments | $ 4,000 | $ 5,300 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses-Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | $ 85,960 | $ 85,960 | |||
Provision for (reversal of) credit losses | $ 1,900 | 2,000 | $ 0 | 3,900 | $ (31,542) |
Balance at end of period | 80,883 | 80,883 | |||
Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 89,365 | 91,265 | 98,631 | 91,265 | 98,189 |
Charge-offs | (5,667) | (494) | (9,616) | (725) | |
Recoveries | 326 | 1,561 | 375 | 33,776 | |
Net (charge-offs) recoveries | (5,341) | 1,067 | (9,241) | 33,051 | |
Provision for (reversal of) credit losses | 864 | 0 | 2,864 | (31,542) | |
Balance at end of period | 84,888 | 89,365 | 99,698 | 84,888 | 99,698 |
Allowance for Loan Losses | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 84,560 | 85,960 | 93,226 | 85,960 | 92,584 |
Charge-offs | (5,667) | (494) | (9,616) | (725) | |
Recoveries | 326 | 1,561 | 375 | 33,776 | |
Net (charge-offs) recoveries | (5,341) | 1,067 | (9,241) | 33,051 | |
Provision for (reversal of) credit losses | 1,664 | (500) | 4,164 | (31,842) | |
Balance at end of period | 80,883 | 84,560 | 93,793 | 80,883 | 93,793 |
Allowance for Loan Losses | Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 84,560 | 85,960 | 93,226 | 85,960 | 92,584 |
Charge-offs | (5,667) | (494) | (9,616) | (725) | |
Recoveries | 326 | 1,561 | 375 | 33,776 | |
Net (charge-offs) recoveries | (5,341) | 1,067 | (9,241) | 33,051 | |
Provision for (reversal of) credit losses | 1,664 | (500) | 4,164 | (31,842) | |
Balance at end of period | 80,883 | 84,560 | 93,793 | 80,883 | 93,793 |
Reserve for Unfunded Loan Commitments | Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 4,805 | 5,305 | 5,405 | 5,305 | 5,605 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision for (reversal of) credit losses | (800) | 500 | (1,300) | 300 | |
Balance at end of period | $ 4,005 | $ 4,805 | $ 5,905 | $ 4,005 | $ 5,905 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses and Recorded Investment Excluding Accrued Interest in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | $ 85,960 | $ 85,960 | |||
Provision for (reversal of) credit losses - loans | $ 1,900 | 2,000 | $ 0 | 3,900 | $ (31,542) |
Balance at end of period | 80,883 | 80,883 | |||
Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 89,365 | 91,265 | 98,631 | 91,265 | 98,189 |
Charge-offs | (5,667) | (494) | (9,616) | (725) | |
Recoveries | 326 | 1,561 | 375 | 33,776 | |
Net (charge-offs) recoveries | (5,341) | 1,067 | (9,241) | 33,051 | |
Provision for (reversal of) credit losses - loans | 864 | 0 | 2,864 | (31,542) | |
Balance at end of period | 84,888 | 89,365 | 99,698 | 84,888 | 99,698 |
Allowance for Loan Losses | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 84,560 | 85,960 | 93,226 | 85,960 | 92,584 |
Charge-offs | (5,667) | (494) | (9,616) | (725) | |
Recoveries | 326 | 1,561 | 375 | 33,776 | |
Net (charge-offs) recoveries | (5,341) | 1,067 | (9,241) | 33,051 | |
Provision for (reversal of) credit losses - loans | 1,664 | (500) | 4,164 | (31,842) | |
Balance at end of period | 80,883 | 84,560 | 93,793 | 80,883 | 93,793 |
Allowance for Loan Losses | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 84,560 | 85,960 | 93,226 | 85,960 | 92,584 |
Charge-offs | (5,667) | (494) | (9,616) | (725) | |
Recoveries | 326 | 1,561 | 375 | 33,776 | |
Net (charge-offs) recoveries | (5,341) | 1,067 | (9,241) | 33,051 | |
Provision for (reversal of) credit losses - loans | 1,664 | (500) | 4,164 | (31,842) | |
Balance at end of period | 80,883 | 84,560 | 93,793 | 80,883 | 93,793 |
Allowance for Loan Losses | Commercial | Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 32,644 | 34,156 | 39,967 | 34,156 | 33,557 |
Charge-offs | (4,450) | (138) | (7,711) | (320) | |
Recoveries | 22 | 1,400 | 39 | 32,817 | |
Net (charge-offs) recoveries | (4,428) | 1,262 | (7,672) | 32,497 | |
Provision for (reversal of) credit losses - loans | 4,607 | 184 | 6,339 | (24,641) | |
Balance at end of period | 32,823 | 32,644 | 41,413 | 32,823 | 41,413 |
Allowance for Loan Losses | Commercial | Commercial real estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 16,119 | 15,977 | 16,490 | 15,977 | 21,727 |
Charge-offs | 0 | 0 | (300) | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | (300) | 0 | |
Provision for (reversal of) credit losses - loans | (352) | (748) | 90 | (5,985) | |
Balance at end of period | 15,767 | 16,119 | 15,742 | 15,767 | 15,742 |
Allowance for Loan Losses | Commercial | Multifamily | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 15,038 | 14,696 | 15,337 | 14,696 | 17,893 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision for (reversal of) credit losses - loans | (341) | 341 | 1 | (2,215) | |
Balance at end of period | 14,697 | 15,038 | 15,678 | 14,697 | 15,678 |
Allowance for Loan Losses | Commercial | SBA | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 2,097 | 2,648 | 3,041 | 2,648 | 3,017 |
Charge-offs | (1,081) | (139) | (1,081) | (152) | |
Recoveries | 286 | 3 | 310 | 761 | |
Net (charge-offs) recoveries | (795) | (136) | (771) | 609 | |
Provision for (reversal of) credit losses - loans | 85 | 128 | (490) | (593) | |
Balance at end of period | 1,387 | 2,097 | 3,033 | 1,387 | 3,033 |
Allowance for Loan Losses | Commercial | Construction | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 6,425 | 5,850 | 6,268 | 5,850 | 5,622 |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Net (charge-offs) recoveries | 0 | 0 | 0 | 0 | |
Provision for (reversal of) credit losses - loans | (372) | (2,013) | 203 | (1,367) | |
Balance at end of period | 6,053 | 6,425 | 4,255 | 6,053 | 4,255 |
Allowance for Loan Losses | Consumer | Single Family Residential Mortgage | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 11,481 | 12,050 | 11,029 | 12,050 | 9,608 |
Charge-offs | 0 | 0 | (372) | (10) | |
Recoveries | 1 | 154 | 2 | 192 | |
Net (charge-offs) recoveries | 1 | 154 | (370) | 182 | |
Provision for (reversal of) credit losses - loans | (1,964) | 1,622 | (2,162) | 3,015 | |
Balance at end of period | 9,518 | 11,481 | 12,805 | 9,518 | 12,805 |
Allowance for Loan Losses | Consumer | Other Consumer | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Balance at beginning of period | 756 | 583 | 1,094 | 583 | 1,160 |
Charge-offs | (136) | (217) | (152) | (243) | |
Recoveries | 17 | 4 | 24 | 6 | |
Net (charge-offs) recoveries | (119) | (213) | (128) | (237) | |
Provision for (reversal of) credit losses - loans | 1 | (14) | 183 | (56) | |
Balance at end of period | $ 638 | $ 756 | $ 867 | $ 638 | $ 867 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Gross Charge-offs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | $ 0 | $ 0 |
2022 | (4,118) | (5,733) |
2021 | (396) | (1,149) |
2020 | (59) | (431) |
2019 | 0 | 0 |
Prior | (1,094) | (2,303) |
Total | (5,667) | (9,616) |
Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | (4,118) | (5,717) |
2021 | (332) | (1,085) |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | 0 | (909) |
Total | (4,450) | (7,711) |
Commercial | SBA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | (64) | (64) |
2020 | 0 | 0 |
2019 | 0 | 0 |
Prior | (1,017) | (1,017) |
Total | (1,081) | (1,081) |
Commercial | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | (300) | |
Total | (300) | |
Consumer | Other Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | 0 |
2022 | 0 | (16) |
2021 | 0 | 0 |
2020 | (59) | (59) |
2019 | 0 | 0 |
Prior | (77) | (77) |
Total | $ (136) | (152) |
Consumer | Single Family Residential Mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | (372) | |
2019 | 0 | |
Prior | 0 | |
Total | $ (372) |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Impaired [Line Items] | ||
Total loans | $ 7,156,206 | $ 7,115,038 |
Collateral Pledged | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 61,678 | 51,174 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 2,618 | 933 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 36,525 | 26,045 |
Business Assets | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 22,183 | 24,083 |
Automobile | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 352 | 113 |
Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 2,000,408 | 1,845,960 |
Commercial | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 1,266,438 | 1,259,651 |
Commercial | SBA | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 62,898 | 68,137 |
Commercial | Collateral Pledged | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 15,600 | 18,392 |
Commercial | Collateral Pledged | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 2,600 | 910 |
Commercial | Collateral Pledged | SBA | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 9,611 | 10,416 |
Commercial | Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Commercial | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 2,600 | 910 |
Commercial | Commercial | SBA | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 18 | 23 |
Commercial | Residential | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Residential | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Residential | SBA | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 2,948 | 4,702 |
Commercial | Business Assets | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 15,538 | 18,392 |
Commercial | Business Assets | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Business Assets | SBA | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 6,645 | 5,691 |
Commercial | Automobile | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 62 | 0 |
Commercial | Automobile | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Automobile | SBA | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 1,820,721 | 1,920,806 |
Consumer | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 86,905 | 86,988 |
Consumer | Collateral Pledged | Single family residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 33,496 | 21,262 |
Consumer | Collateral Pledged | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 371 | 194 |
Consumer | Commercial | Single family residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Commercial | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Residential | Single family residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 33,496 | 21,262 |
Consumer | Residential | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 81 | 81 |
Consumer | Business Assets | Single family residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Business Assets | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Automobile | Single family residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Automobile | Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Total loans | $ 290 | $ 113 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Modifications to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 5,267 |
% of total class of loans | 0.10% |
Interest rate reduction: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 1,071 |
% of total class of loans | 0% |
Term extension: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 286 |
% of total class of loans | 0% |
Combination - principal reduction and payment delays: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 3,910 |
% of total class of loans | 0.10% |
Commercial and industrial | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 3,910 |
% of total class of loans | 0.20% |
Commercial and industrial | Interest rate reduction: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 0 |
% of total class of loans | 0% |
Commercial and industrial | Term extension: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 0 |
% of total class of loans | 0% |
Commercial and industrial | Combination - principal reduction and payment delays: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 3,910 |
% of total class of loans | 0.20% |
Single family residential mortgage | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 1,357 |
% of total class of loans | 0.10% |
Single family residential mortgage | Interest rate reduction: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 1,071 |
% of total class of loans | 0.10% |
Single family residential mortgage | Term extension: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 286 |
% of total class of loans | 0% |
Single family residential mortgage | Combination - principal reduction and payment delays: | |
Financing Receivable, Past Due [Line Items] | |
Loans receivable | $ 0 |
% of total class of loans | 0% |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Aging of Loans Modified to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | $ 5,267 |
30 - 59 Days Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
60 - 89 Days Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 3,910 |
Greater than 89 Days Past due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Total Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 3,910 |
Current | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 1,357 |
Commercial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 3,910 |
Commercial | Commercial and industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 3,910 |
Commercial | Commercial and industrial | 30 - 59 Days Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Commercial | Commercial and industrial | 60 - 89 Days Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 3,910 |
Commercial | Commercial and industrial | Greater than 89 Days Past due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Commercial | Commercial and industrial | Total Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 3,910 |
Commercial | Commercial and industrial | Current | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Consumer | Single family residential mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 1,357 |
Consumer | Single family residential mortgage | 30 - 59 Days Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Consumer | Single family residential mortgage | 60 - 89 Days Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Consumer | Single family residential mortgage | Greater than 89 Days Past due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Consumer | Single family residential mortgage | Total Past Due | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | 0 |
Consumer | Single family residential mortgage | Current | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Loans receivable | $ 1,357 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings Additional Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) loan | Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Past Due [Line Items] | ||
Number of loans classified as TDRs | loan | 10 | 15 |
Aggregate balance | $ 8,000 | $ 16,100 |
Loans receivable | 5,267 | |
Accruing TDRs | 2,500 | 2,700 |
Non-accruing TDRs | 5,500 | $ 13,400 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 3,910 | |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans receivable | 3,910 | |
Amounts paid down on loans restructured and modified during the period | $ 4,000 | |
Number of restructured and modified securities paid down | loan | 2 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Purchases, Sales, and Transfers (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Receivables [Abstract] | ||||
Transfers of loans to held-for-sale | $ 0 | $ 0 | $ 0 | $ 0 |
Purchases of loans (excluding loans held-for-sale) | 277,200,000 | 61,400,000 | 641,500,000 | |
Sales of loans | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_19
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non Traditional Mortgage Loans Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 7,156,206 | $ 7,115,038 |
NTM Loans | Loan Portfolio | Loan Portfolio Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 11.30% | 12.10% |
NTM Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 811,700 | $ 862,300 |
Decrease in Non-Traditional Mortgage portfolio loans | 50,700 | |
NTM Loans | Consumer | Non-performing Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 13,300 | $ 3,000 |
Weighted average LTV (percent) | 61% | |
NTM Loans | Consumer | Interest Only | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loan term (in years) | 40 years | |
Mortgage loan, flexible initial term (in years) | 10 years | |
NTM Loans | Consumer | Interest Only | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loan, flexible initial term (in years) | 1 year | |
NTM Loans | Consumer | Loan Portfolio | Loan Portfolio Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Decrease in Non-Traditional Mortgage portfolio loans (percent) | 5.90% |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Additional Information (Details) - USD ($) | 6 Months Ended | |||||||
Oct. 01, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 114,312,000 | $ 114,312,000 | $ 114,312,000 | $ 95,127,000 | $ 95,127,000 | $ 94,301,000 | ||
Goodwill impairment | $ 0 | |||||||
Deepstack Technologies, LLC | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Goodwill | $ 18,200,000 | |||||||
Core deposit intangibles | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible assets, weighted average useful life | 6 years 3 months 18 days | |||||||
Core deposit intangibles | Minimum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization period of other intangible assets | 3 years | |||||||
Core deposit intangibles | Maximum | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization period of other intangible assets | 10 years |
GOODWILL AND OTHER INTANGIBLES-
GOODWILL AND OTHER INTANGIBLES- Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | $ 114,312 | $ 95,127 | $ 114,312 | $ 94,301 |
Goodwill adjustments for purchase accounting | 0 | 0 | 0 | 826 |
Goodwill, end of period | $ 114,312 | $ 95,127 | $ 114,312 | $ 95,127 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | $ 6,603 | $ 7,526 |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | 3,363 | 3,932 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | 2,357 | 2,637 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles | $ 883 | $ 957 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other intangibles: | |||||
Balance, beginning of period | $ 38,778 | $ 38,778 | $ 34,978 | $ 38,778 | $ 35,958 |
Purchase accounting adjustments | 0 | 0 | 0 | (980) | |
Balance, end of period | 38,778 | 38,778 | 34,978 | 38,778 | 34,978 |
Accumulated amortization: | |||||
Balance, beginning of period | 31,713 | 31,252 | 29,988 | 31,252 | 29,547 |
Amortization of other intangibles | 462 | 461 | 313 | 923 | 754 |
Balance, end of period | 32,175 | $ 31,713 | 30,301 | 32,175 | 30,301 |
Total | $ 6,603 | $ 4,677 | $ 6,603 | $ 4,677 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2023 | $ 876 | |
2024 | 1,425 | |
2025 | 1,107 | |
2026 | 1,013 | |
2027 | 811 | |
2028 and After | 1,371 | |
Total | $ 6,603 | $ 4,677 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES, FEDERAL RESERVE BANK BORROWINGS AND OTHER BORROWINGS - Summary of Advances From the FHLB (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fixed rate: | ||
Outstanding balance | $ 811,000 | $ 711,000 |
Variable rate: | ||
Outstanding balance | $ 0 | $ 20,000 |
Weighted average interest rate (percent) | 0% | 4.59% |
Unamortized debt issuance costs | $ 3,000 | $ 3,700 |
Minimum | ||
Fixed rate: | ||
Interest rate (percent) | 0.64% | 0.64% |
Maximum | ||
Fixed rate: | ||
Interest rate (percent) | 3.70% | 3.70% |
Weighted average (percent) | ||
Fixed rate: | ||
Interest rate (percent) | 3.04% | 2.97% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES, FEDERAL RESERVE BANK BORROWINGS AND OTHER BORROWINGS - Additional Information (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 USD ($) bank | Dec. 31, 2022 USD ($) bank | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Investment in capital stock of the federal reserve | $ 34,600,000 | $ 34,500,000 |
Number of correspondent banks | bank | 6 | 6 |
Available capacity | $ 365,000,000 | $ 445,000,000 |
Securities sold under repurchase agreements | 0 | 0 |
Revolving Credit Facility | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Line of credit facility | 50,000,000 | |
Other borrowings | 0 | 0 |
Line of Credit | Unsecured Federal Funds Line of Credit | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Line of credit facility | 290,000,000 | 290,000,000 |
Borrowings outstanding | 0 | 0 |
Other borrowings | 0 | 0 |
Federal Reserve Bank Advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Line of credit facility | 1,450,000,000 | |
Federal Reserve Bank Advances | FRB Discount Window and BIC Programs | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Borrowings during the period | 340,000,000 | 0 |
Borrowings outstanding | $ 340,000,000 | 0 |
Federal Reserve Bank Advances | BTFP Program | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Term of borrowings under the program | 1 year | |
Spread on variable rate (percent) | 0.10% | |
Borrowings outstanding | $ 0 | |
Federal Reserve Bank Advances | Collateralized loan obligations | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advances from FHLB collateralized | 1,400,000,000 | |
Collateral on line of credit facility | 515,300,000 | |
Term Advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances | $ 611,000,000 | |
Weighted average life | 3 years | |
Weighted average interest rate (percent) | 2.91% | |
Putable Advances | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB advances | $ 200,000,000 | |
Weighted average life | 4 years 6 months | |
Weighted average interest rate (percent) | 3.44% | |
Federal Home Loan Bank of San Francisco | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB stock | $ 25,700,000 | $ 22,600,000 |
Federal Home Loan Bank of San Francisco | Real Estate Loans | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Secured borrowing capacity from FHLB | 2,390,000,000 | |
Amount of additional available borrowing | 1,160,000,000 | |
Advances from FHLB collateralized | $ 3,470,000,000 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Par Value | $ 276,527 | $ 277,527 |
Unamortized Debt Issuance Cost and Discount | $ (2,406) | (2,621) |
Senior Notes | Senior notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.25% | |
Par Value | $ 174,000 | 175,000 |
Unamortized Debt Issuance Cost and Discount | $ (609) | (722) |
Senior Notes | Subordinated notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.375% | |
Par Value | $ 85,000 | 85,000 |
Unamortized Debt Issuance Cost and Discount | $ (1,797) | (1,899) |
Senior Notes | Subordinated notes | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 4.195% | |
Senior Notes | PMB Statutory Trust III, junior subordinated debentures | ||
Debt Instrument [Line Items] | ||
Par Value | $ 7,217 | 7,217 |
Unamortized Debt Issuance Cost and Discount | $ 0 | 0 |
Senior Notes | PMB Statutory Trust III, junior subordinated debentures | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 3.40% | |
Senior Notes | PMB Capital Trust III, junior subordinated debentures | ||
Debt Instrument [Line Items] | ||
Par Value | $ 10,310 | 10,310 |
Unamortized Debt Issuance Cost and Discount | $ 0 | $ 0 |
Senior Notes | PMB Capital Trust III, junior subordinated debentures | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (percent) | 2% |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||
Discount recognized gain. | $ 80 | $ 0 | |
Senior notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Repurchase amount | $ 1,000 | 1,000 | |
Discount recognized gain. | $ 80 | $ 80 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 6,700,000 | $ 10,200,000 | $ 14,100,000 | $ 28,900,000 | |
Effective tax rate (percent) | 27.40% | 27.60% | 27% | 27.80% | |
Effective income tax rate reconciliation, at federal and state statutory income tax rate, percent (percent) | 28.90% | 28.90% | 28.90% | 28.90% | |
Valuation allowance | $ 0 | $ 0 | $ 0 | ||
Net deferred tax asset | 64,000,000 | 64,000,000 | 50,500,000 | ||
Unrecognized tax benefits | 800,000 | 800,000 | 800,000 | ||
Unrecognized tax benefits that would impact the effective tax rate | 600,000 | 600,000 | |||
Accrued interest or penalties | $ 0 | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||||||
Derivatives liability, fair values | $ 2,626 | $ 2,626 | $ 2,251 | |||
Cash flow hedges | 454 | 454 | ||||
Gain (loss) on derivatives | (14) | $ 185 | ||||
Interest rate swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional amount | $ 300,000 | |||||
Term of cash flow hedge contracts | 5 years | |||||
Cash flow hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivatives liability, fair values | 454 | 454 | 0 | |||
Cash flow hedges | 400 | 400 | ||||
Interest rate swaps on loans | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivatives liability, fair values | 2,138 | 2,138 | $ 2,107 | |||
Gain (loss) on derivatives | $ 10 | $ 82 | $ (14) | $ 200 |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount and Market Value of Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional Amount | $ 37,569 | $ 39,579 |
Derivatives asset, Fair Value | 2,199 | 2,292 |
Derivative liabilities, Notional Amount | 337,569 | 39,579 |
Derivative liabilities, Fair Value | 2,626 | 2,251 |
Interest rate swaps on loans | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional Amount | 32,677 | 33,694 |
Derivatives asset, Fair Value | 2,158 | 2,134 |
Derivative liabilities, Notional Amount | 32,677 | 33,694 |
Derivative liabilities, Fair Value | 2,138 | 2,107 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives asset, Notional Amount | 4,892 | 5,885 |
Derivatives asset, Fair Value | 41 | 158 |
Derivative liabilities, Notional Amount | 4,892 | 5,885 |
Derivative liabilities, Fair Value | 34 | 144 |
Cash flow hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, Notional Amount | 300,000 | 0 |
Derivative liabilities, Fair Value | $ 454 | $ 0 |
EMPLOYEE STOCK COMPENSATION - A
EMPLOYEE STOCK COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | May 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | 0 | |
Unvested options outstanding (in shares) | 0 | 0 | |
Restricted stock awards and units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 12.8 | ||
Expense recognition period | 2 years 6 months | ||
Restricted stock awards and units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Restricted stock awards and units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Award expiration period | 7 years | ||
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Award expiration period | 10 years | ||
2018 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized for grant (in shares) | 4,417,882 | ||
Common stock available under new plan (in shares) | 1,901,039 |
EMPLOYEE STOCK COMPENSATION - S
EMPLOYEE STOCK COMPENSATION - Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Related tax benefits | $ 499 | $ 428 | $ 920 | $ 799 |
Restricted stock awards and units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 1,726 | $ 1,482 | $ 3,181 | $ 2,767 |
EMPLOYEE STOCK COMPENSATION - N
EMPLOYEE STOCK COMPENSATION - Nonvested Restricted Stock Awards and Restricted Stock Units (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Restricted stock awards and units | ||
Number of Shares | ||
Outstanding at beginning of period (in shares) | 1,450,539 | 1,403,245 |
Granted (in shares) | 80,395 | 374,200 |
Vested (in shares) | (51,294) | (283,077) |
Forfeited (in shares) | (129,430) | (144,158) |
Outstanding at end of period (in shares) | 1,350,210 | 1,350,210 |
Weighted Average Grant Date Fair Value Per Share | ||
Outstanding at beginning of period (in dollars per share) | $ 14.85 | $ 14.68 |
Granted (in dollars per share) | 10.20 | 16.07 |
Vested (in dollars per share) | 17.94 | 17.39 |
Forfeited (in dollars per share) | $ 20.32 | $ 13.55 |
Granted (in shares) | 80,395 | 374,200 |
Outstanding at end of period (in dollars per share) | $ 14.61 | $ 14.61 |
Performance Shares | ||
Number of Shares | ||
Granted (in shares) | 0 | 79,784 |
Vested (in shares) | 0 | (66,699) |
Forfeited (in shares) | (113,650) | (124,882) |
Weighted Average Grant Date Fair Value Per Share | ||
Granted (in shares) | 0 | 79,784 |
EMPLOYEE STOCK COMPENSATION - O
EMPLOYEE STOCK COMPENSATION - Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | |
Number of Shares | ||
Outstanding at beginning of period (in shares) | shares | 14,904 | 14,904 |
Exercised (in shares) | shares | 0 | 0 |
Outstanding at end of period (in shares) | shares | 14,904 | 14,904 |
Exercisable at end of period (in shares) | shares | 14,904 | 14,904 |
Weighted-Average Exercise Price Per Share | ||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 13.05 | $ 13.05 |
Exercised (in dollars per share) | $ / shares | 0 | 0 |
Outstanding at end of period (in dollars per share) | $ / shares | 13.05 | 13.05 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 13.05 | $ 13.05 |
Weighted-Average Remaining Contract Term | ||
Outstanding at end of period | 1 year 9 months 18 days | |
Exercisable at end of period | 1 year 9 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ | $ 2 | $ 2 |
Exercisable at end of period | $ | $ 2 | $ 2 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 13, 2023 | |
Class of Stock [Line Items] | |||||||
Impact of preferred stock redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 3,747 | ||
Authorized repurchase amount | $ 35,000 | ||||||
Shares repurchased (in shares) | 1,348,545 | 2,113,176 | 1,759,491 | 2,328,726 | |||
Shares repurchased, weighted average price (in usd per share) | $ 11.85 | $ 12.02 | |||||
Remaining authorized repurchase amount | $ 13,900 | $ 13,900 | |||||
Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | $ 1,000 | |||||
Preferred stock, outstanding (in shares) | 0 | 0 | |||||
Preferred Stock | Series E Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Impact of preferred stock redemption | $ 0 | $ 0 | $ 3,700 | $ 0 | $ 3,747 |
STOCKHOLDERS' EQUITY - Deposito
STOCKHOLDERS' EQUITY - Depository Share Repurchases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Class of Stock [Line Items] | ||||||
Impact of preferred stock redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 3,747 | |
Preferred Stock | Series E Depository Shares | ||||||
Class of Stock [Line Items] | ||||||
Shares redeemed (in shares) | 0 | 0 | 0 | 3,948,080 | ||
Preferred Stock | Series E Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares redeemed (in shares) | 0 | 0 | 0 | 98,702 | ||
Consideration paid | $ 0 | $ 0 | $ 0 | $ 98,703 | ||
Carrying value | 0 | 0 | 0 | 94,956 | ||
Impact of preferred stock redemption | $ 0 | $ 0 | $ 3,700 | $ 0 | $ 3,747 |
STOCKHOLDERS' EQUITY - Changes
STOCKHOLDERS' EQUITY - Changes to Accumulated Other Comprehensive (Loss) Income by Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (50,489) | $ (19,172) | ||
Tax effect of current period changes | (355) | 5,883 | ||
Total changes, net of taxes | 731 | (14,887) | ||
Balance at end of period | (49,758) | (34,059) | $ (49,758) | $ (34,059) |
Gain (loss) on securities available-for-sale | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (40,597) | 7,743 | ||
Unrealized loss arising during the period | (7,334) | (21,016) | (12,857) | (59,103) |
Reclassification adjustment from other comprehensive income | 0 | 0 | 0 | (16) |
Total unrealized loss on securities available-for-sale | (7,334) | (21,016) | (12,857) | (59,119) |
Amortization of unrealized loss of available-for-sale securities transferred to held-to-maturity | 252 | 246 | 505 | 333 |
Tax effect of current period changes | 3,645 | 16,984 | ||
Total changes, net of taxes | (9,161) | (41,802) | ||
Balance at end of period | (49,758) | (34,059) | (49,758) | (34,059) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Unrealized gain (loss) arising during the period | $ 8,168 | $ 0 | $ (454) | $ 0 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) trust | Jun. 30, 2022 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2023 USD ($) trust | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Variable Interest Entity [Line Items] | ||||||
Total assets | $ 9,370,265 | $ 9,370,265 | $ 9,197,016 | |||
Other CRA investments | $ 89,000 | $ 89,000 | 85,000 | |||
Number of grantor trusts | trust | 2 | 2 | ||||
Small Business Investment Companies (SBICs) | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage of limited partnership (percent) | 3% | 3% | ||||
Variable Interest Entity, Not Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | $ 246,140 | $ 246,140 | 251,589 | |||
Fundings | 0 | $ 0 | 0 | $ 0 | ||
Maximum loss exposure | 19,111 | 19,111 | 21,410 | |||
Unpaid principal amount | 91,000 | 91,000 | ||||
Investments in grantor trusts | 500 | 500 | 500 | |||
Variable Interest Entity, Not Primary Beneficiary | Multifamily | ||||||
Variable Interest Entity [Line Items] | ||||||
Fundings | $ 573,500 | |||||
Maximum loss exposure | $ 68,800 | $ 68,800 | ||||
Credit losses guaranteed (percent) | 12% | 12% | ||||
Repurchase liability recognized | $ 1,200 | $ 1,200 | ||||
Variable Interest Entity, Not Primary Beneficiary | Other Assets | ||||||
Variable Interest Entity [Line Items] | ||||||
Total assets | $ 19,100 | $ 19,100 | $ 21,400 |
VARIABLE INTEREST ENTITIES - In
VARIABLE INTEREST ENTITIES - Information Regarding Activity in Alternative Energy Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Variable Interest Entity [Line Items] | |||||
Gain (loss) on investments in alternative energy partnerships | $ 36 | $ (1,618) | $ (1,043) | $ (1,582) | $ (1,201) |
Tax expense (benefit) recognized from HLBV application | 6,745 | $ 7,395 | 10,161 | 14,140 | 28,946 |
Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Return of capital | 352 | 582 | 717 | 1,156 | |
Gain (loss) on investments in alternative energy partnerships | 36 | (1,043) | (1,582) | (1,201) | |
Tax expense (benefit) recognized from HLBV application | $ 10 | $ (301) | $ (457) | $ (347) |
VARIABLE INTEREST ENTITIES - Su
VARIABLE INTEREST ENTITIES - Summary of Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Equipment, net of depreciation | $ 108,235 | $ 107,345 |
Other assets | 278,312 | 278,189 |
Total unconsolidated assets | 9,370,265 | 9,197,016 |
Total unconsolidated liabilities | 8,413,211 | 8,237,398 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash | 2,910 | 4,110 |
Equipment, net of depreciation | 233,152 | 237,641 |
Other assets | 10,078 | 9,838 |
Total unconsolidated assets | 246,140 | 251,589 |
Total unconsolidated liabilities | 11,426 | 11,679 |
Maximum loss exposure | $ 19,111 | $ 21,410 |
VARIABLE INTEREST ENTITIES - Ba
VARIABLE INTEREST ENTITIES - Balances and Activity in Affordable Housing Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||||
Fundings | $ 3,597 | $ 3,950 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Ending balance | $ 19,111 | 19,111 | $ 21,410 | ||
Maximum loss exposure | 19,111 | 19,111 | 21,410 | ||
Affordable Housing Fund Investment | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Ending balance | 42,818 | 42,818 | 45,726 | ||
Aggregate funding commitment | 72,997 | 72,997 | 72,967 | ||
Total amount funded | 57,290 | 57,290 | 55,487 | ||
Unfunded commitment | 15,707 | 15,707 | 17,480 | ||
Maximum loss exposure | 42,818 | 42,818 | $ 45,726 | ||
Fundings | 1,168 | $ 919 | 1,803 | 2,024 | |
Proportional amortization recognized | 1,427 | 1,027 | 2,938 | 2,573 | |
Income tax credits recognized | $ 1,688 | $ 1,163 | $ 3,375 | $ 2,536 |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computations for Basic and Diluted Earnings/(Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Earnings Per Share [Line Items] | |||||
Less: preferred stock dividends | $ 0 | $ 0 | $ 0 | $ 0 | $ (1,420) |
Less: preferred stock redemption | 0 | $ 0 | 0 | 0 | (3,747) |
Common Stock | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Net income | $ 17,732 | 26,504 | $ 37,846 | 74,645 | |
Less: preferred stock dividends | 0 | (1,409) | |||
Less: preferred stock redemption | 0 | (3,718) | |||
Net income allocated to common stockholders | $ 26,504 | $ 69,518 | |||
Weighted average common shares outstanding (in shares) | 57,503,213 | 60,873,481 | 58,017,185 | 61,497,261 | |
Average shares and dilutive common shares (in shares) | 57,548,686 | 61,123,294 | 58,122,992 | 61,771,055 | |
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.34 | $ 0.44 | $ 0.65 | $ 1.13 |
Diluted earnings per common share (in dollars per share) | $ 0.31 | 0.34 | $ 0.43 | $ 0.65 | $ 1.13 |
Common Stock | Dilutive effects of restricted shares/units | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Dilutive effects of stock units and stock options (in shares) | 45,268 | 245,571 | 104,941 | 269,093 | |
Common Stock | Stock options | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Dilutive effects of stock units and stock options (in shares) | 205 | 4,242 | 866 | 4,701 | |
Class B Common Stock | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Net income | $ 147 | $ 208 | $ 311 | $ 579 | |
Less: preferred stock dividends | 0 | (11) | |||
Less: preferred stock redemption | 0 | (29) | |||
Net income allocated to common stockholders | $ 208 | $ 539 | |||
Weighted average common shares outstanding (in shares) | 477,321 | 477,321 | 477,321 | 477,321 | |
Average shares and dilutive common shares (in shares) | 477,321 | 477,321 | 477,321 | 477,321 | |
Basic earnings per common share (in dollars per share) | $ 0.31 | 0.34 | $ 0.44 | $ 0.65 | $ 1.13 |
Diluted earnings per common share (in dollars per share) | $ 0.31 | $ 0.34 | $ 0.44 | $ 0.65 | $ 1.13 |
Class B Common Stock | Dilutive effects of restricted shares/units | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Dilutive effects of stock units and stock options (in shares) | 0 | 0 | 0 | 0 | |
Class B Common Stock | Stock options | |||||
Schedule of Earnings Per Share [Line Items] | |||||
Dilutive effects of stock units and stock options (in shares) | 0 | 0 | 0 | 0 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Dilutive effects of restricted shares/units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock excluded from computation of earnings per share (in shares) | 609,324 | 354,484 | 457,960 | 806 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Stock excluded from computation of earnings per share (in shares) | 11,232 | 0 | 0 | 0 |
LOAN COMMITMENTS AND OTHER RE_3
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES - Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Other Commitments [Line Items] | ||
Unfunded commitment | $ 15,707 | $ 17,480 |
LIHTC Investments | ||
Other Commitments [Line Items] | ||
Unfunded commitment | 15,700 | 17,500 |
Small Business Investment Companies | ||
Other Commitments [Line Items] | ||
Unfunded commitment | 7,500 | 8,600 |
Other Investments | ||
Other Commitments [Line Items] | ||
Unfunded commitment | 20,000 | 9,800 |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Fixed Rate | 39,729 | 50,193 |
Variable Rate | 161,036 | 180,696 |
Unused lines of credit | ||
Other Commitments [Line Items] | ||
Fixed Rate | 47,334 | 8,392 |
Variable Rate | 1,330,913 | 1,505,122 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Fixed Rate | 1,671 | 2,461 |
Variable Rate | $ 7,462 | $ 7,016 |
OTHER ASSETS AND OTHER LIABIL_3
OTHER ASSETS AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets | ||
Accrued interest receivable | $ 35,821 | $ 37,942 |
Prepaid expenses | 9,816 | 8,068 |
Derivative instruments | $ 2,199 | $ 2,292 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets |
Operating lease right-of-use assets | $ 26,630 | $ 28,780 |
Servicing assets | 21,051 | 22,484 |
Other real estate owned | 882 | 0 |
Income tax receivable | 0 | 7,679 |
CRA and other equity investments | 94,703 | 90,295 |
LIHTCs | 42,818 | 45,726 |
Alternative energy partnerships | 19,111 | 21,410 |
Other assets | 25,281 | 13,513 |
Total other assets | 278,312 | 278,189 |
Other Liabilities | ||
Accrued interest payable | 14,791 | 7,004 |
Accounts payable and accrued expenses | 43,791 | 37,560 |
Income taxes payable | 682 | 0 |
Derivative liabilities | $ 2,626 | $ 2,251 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Total accrued expenses and other liabilities | Total accrued expenses and other liabilities |
Lease liability | $ 30,505 | $ 33,122 |
Commitments to fund LIHTC | 15,707 | 17,480 |
Reserve for unfunded noncancellable loan commitments | 4,005 | 5,305 |
Reserve for loss on repurchased loans | 1,977 | 2,989 |
Other liabilities | 5,933 | 8,512 |
Total accrued expenses and other liabilities | $ 120,017 | $ 114,223 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Noninterest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Noninterest income (in-scope of Topic 606) | $ 2,132 | $ 2,306 | $ 4,140 | $ 4,572 | |
Noninterest income (out-of-scope of Topic 606) | 3,892 | 4,880 | 9,743 | 8,524 | |
Total noninterest income | 6,024 | $ 7,859 | 7,186 | 13,883 | 13,096 |
Deposit service fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income (in-scope of Topic 606) | 1,377 | 1,627 | 2,640 | 3,281 | |
Debit card fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income (in-scope of Topic 606) | 424 | 542 | 801 | 995 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Noninterest income (in-scope of Topic 606) | $ 331 | $ 137 | $ 699 | $ 296 |
REVENUE RECOGNITION - Additiona
REVENUE RECOGNITION - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Sale leaseback transaction, net book value | $ 2,400 | ||
Gain on sale-leaseback of branch | $ 800 | $ 0 | $ 771 |
RELATED-PARTY TRANSACTIONS - Ad
RELATED-PARTY TRANSACTIONS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Director | Current Directors | Special Committee Investigation Indemnification | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related parties | $ 120 | $ 120 | $ 120 | $ 120 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, shares in Millions, $ in Millions | Jul. 25, 2023 USD ($) consecutive-tradingDay tradingDays $ / shares shares | Mar. 31, 2023 USD ($) |
Interest rate swaps | ||
Subsequent Event [Line Items] | ||
Aggregate notional amount | $ | $ 300 | |
Banc of California, NA | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Contingent forward asset sale | $ | $ 1,800 | |
Banc of California, NA | Subsequent Event | Interest rate swaps | ||
Subsequent Event [Line Items] | ||
Aggregate notional amount | $ | 3,500 | |
Cost of hedged item | $ | 15.7 | |
Warburg Pincus LLC (“Warburg”), and Centerbridge Partners, L.P. And Affiliates (“Centerbridge”) | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Total investment expected | $ | $ 400 | |
PacWest Agreement and Plan Of Merger | Subsequent Event | Common Stock | ||
Subsequent Event [Line Items] | ||
Shares issuable (in shares) | shares | 21.8 | |
Purchase price per share (in usd per share) | $ 12.30 | |
PacWest Agreement and Plan Of Merger | Subsequent Event | Common Stock | Non-Voting | ||
Subsequent Event [Line Items] | ||
Shares issuable (in shares) | shares | 10.8 | |
Purchase price per share (in usd per share) | $ 12.30 | |
PacWest Agreement and Plan Of Merger | PacWest | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Share conversion rate at merger | 0.6569 | |
PacWest Agreement and Plan Of Merger | PacWest | Subsequent Event | Noncumulative Preferred Stock | ||
Subsequent Event [Line Items] | ||
Share conversion rate at merger | 1 | |
Non cumulative preferred stock, dividend rate (percent) | 7.75% | |
PacWest Agreement and Plan Of Merger | Warburg | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Warrants to be issued (shares) | shares | 15.9 | |
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 15.375 | |
Warrants and rights outstanding, term | 7 years | |
Common stock, share price (in dollars per share) | $ 24.60 | |
Number of trading days | tradingDays | 20 | |
Number of consecutive trading day period | consecutive-tradingDay | 30 | |
PacWest Agreement and Plan Of Merger | Centerbridge | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Warrants to be issued (shares) | shares | 3 | |
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 15.375 | |
Warrants and rights outstanding, term | 7 years | |
Common stock, share price (in dollars per share) | $ 24.60 | |
Number of trading days | tradingDays | 20 | |
Number of consecutive trading day period | consecutive-tradingDay | 30 |