Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36461 | |
Entity Registrant Name | FIRST FOUNDATION INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8639702 | |
Entity Address, Address Line One | 200 Crescent Court | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 469 | |
Local Phone Number | 638-9636 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FFWM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,070,936 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001413837 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 783,376 | $ 629,707 |
Securities available-for-sale ("AFS") | 901,746 | 814,671 |
Allowance for credit losses - investments | (10,098) | (7,245) |
Net securities | 891,648 | 807,426 |
Loans held for sale | 501,433 | 505,404 |
Loans held for investment | 5,308,959 | 4,803,799 |
Allowance for credit losses - loans | (20,985) | (24,200) |
Net loans | 5,287,974 | 4,779,599 |
Investment in FHLB stock | 17,250 | 17,250 |
Deferred taxes | 11,247 | 8,603 |
Premises and equipment, net | 8,091 | 8,012 |
Goodwill and intangibles | 94,083 | 95,296 |
Other assets | 139,961 | 105,863 |
Total Assets | 7,735,063 | 6,957,160 |
Liabilities: | ||
Deposits | 6,844,978 | 5,913,433 |
Borrowings | 12,500 | 269,000 |
Accounts payable and other liabilities | 110,754 | 79,016 |
Total Liabilities | 6,968,232 | 6,261,449 |
Shareholders' Equity | ||
Common Stock | 45 | 45 |
Additional paid-in-capital | 436,835 | 433,941 |
Retained earnings | 321,184 | 247,638 |
Accumulated other comprehensive income (loss) | 8,767 | 14,087 |
Total Shareholders' Equity | 766,831 | 695,711 |
Total Liabilities and Shareholders' Equity | $ 7,735,063 | $ 6,957,160 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income: | ||||
Loans | $ 56,781 | $ 55,231 | $ 166,291 | $ 165,249 |
Securities AFS | 4,606 | 6,107 | 14,739 | 19,643 |
FHLB stock, fed funds sold and interest-bearing deposits | 602 | 353 | 1,500 | 1,069 |
Total interest income | 61,989 | 61,691 | 182,530 | 185,961 |
Interest expense: | ||||
Deposits | 2,753 | 7,988 | 10,763 | 33,548 |
Borrowings | 49 | 2,086 | 441 | 7,481 |
Total interest expense | 2,802 | 10,074 | 11,204 | 41,029 |
Net interest income | 59,187 | 51,617 | 171,326 | 144,932 |
Provision for credit losses | (417) | 1,548 | (13) | 6,979 |
Net interest income after provision for credit losses | 59,604 | 50,069 | 171,339 | 137,953 |
Noninterest income: | ||||
Asset management, consulting and other fees | $ 9,313 | $ 7,368 | $ 26,410 | $ 21,863 |
Type of Revenue [Extensible List] | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember | us-gaap:InvestmentAdvisoryManagementAndAdministrativeServiceMember |
Gain on sale of loans | $ 18,135 | $ 15,140 | $ 21,459 | $ 15,140 |
Other income | 3,232 | 1,133 | 8,754 | 6,282 |
Total noninterest income | 30,680 | 23,641 | 56,623 | 43,285 |
Noninterest expense: | ||||
Compensation and benefits | 23,241 | 17,914 | 64,970 | 56,059 |
Occupancy and depreciation | 6,427 | 6,052 | 18,297 | 17,419 |
Professional services and marketing costs | 2,700 | 2,077 | 8,729 | 5,880 |
Customer service costs | 2,512 | 1,723 | 6,635 | 5,717 |
Other expenses | 3,514 | 2,829 | 9,891 | 9,329 |
Total noninterest expense | 38,394 | 30,595 | 108,522 | 94,404 |
Income before taxes on income | 51,890 | 43,115 | 119,440 | 86,834 |
Taxes on income | 14,664 | 12,177 | 33,805 | 24,831 |
Net income | $ 37,226 | $ 30,938 | $ 85,635 | $ 62,003 |
Net income per share: | ||||
Basic | $ 0.83 | $ 0.69 | $ 1.91 | $ 1.39 |
Diluted | $ 0.83 | $ 0.69 | $ 1.90 | $ 1.38 |
Shares used in computation: | ||||
Basic | 44,819,743 | 44,625,668 | 44,773,683 | 44,638,634 |
Diluted | 45,002,937 | 44,885,776 | 44,977,863 | 44,883,612 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - UNAUDITED - USD ($) $ in Thousands | Common Stock | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning balance at Dec. 31, 2019 | $ 45 | $ 433,775 | $ 175,773 | $ 4,276 | $ 613,869 |
Beginning balance (in shares) at Dec. 31, 2019 | 44,670,743 | ||||
Net income | 62,003 | 62,003 | |||
Other comprehensive income (loss) | 11,956 | 11,956 | |||
Stock based compensation | 1,660 | 1,660 | |||
Cash dividend | (9,380) | (9,380) | |||
Exercise of options | 652 | 652 | |||
Exercise of options (in shares) | 87,000 | ||||
Stock grants - vesting of restricted stock units (in shares) | 92,915 | ||||
Repurchase of shares from restricted shares vesting | (2,824) | (2,824) | |||
Repurchase of shares from restricted shares vesting (in shares) | (224,334) | ||||
Ending balance at Sep. 30, 2020 | $ 45 | 433,263 | 228,396 | 16,232 | 677,936 |
Ending balance (in shares) at Sep. 30, 2020 | 44,626,324 | ||||
Beginning balance at Jun. 30, 2020 | $ 45 | 432,791 | 200,582 | 5,303 | 638,721 |
Beginning balance (in shares) at Jun. 30, 2020 | 44,625,324 | ||||
Net income | 30,938 | 30,938 | |||
Other comprehensive income (loss) | 10,929 | 10,929 | |||
Stock based compensation | 465 | 465 | |||
Cash dividend | (3,124) | (3,124) | |||
Exercise of options | 7 | 7 | |||
Exercise of options (in shares) | 1,000 | ||||
Ending balance at Sep. 30, 2020 | $ 45 | 433,263 | 228,396 | 16,232 | 677,936 |
Ending balance (in shares) at Sep. 30, 2020 | 44,626,324 | ||||
Beginning balance at Dec. 31, 2020 | $ 45 | 433,941 | 247,638 | 14,087 | 695,711 |
Beginning balance (in shares) at Dec. 31, 2020 | 44,667,650 | ||||
Net income | 85,635 | 85,635 | |||
Other comprehensive income (loss) | (5,320) | (5,320) | |||
Stock based compensation | 2,202 | 2,202 | |||
Cash dividend | (12,089) | (12,089) | |||
Exercise of options | 1,880 | 1,880 | |||
Exercise of options (in shares) | 211,203 | ||||
Stock grants - vesting of restricted stock units (in shares) | 117,223 | ||||
Repurchase of shares from restricted shares vesting | (1,188) | (1,188) | |||
Repurchase of shares from restricted shares vesting (in shares) | (40,937) | ||||
Ending balance at Sep. 30, 2021 | $ 45 | 436,835 | 321,184 | 8,767 | 766,831 |
Ending balance (in shares) at Sep. 30, 2021 | 44,955,139 | ||||
Beginning balance at Jun. 30, 2021 | $ 45 | 435,201 | 287,997 | 10,775 | 734,018 |
Beginning balance (in shares) at Jun. 30, 2021 | 44,819,743 | ||||
Net income | 37,226 | 37,226 | |||
Other comprehensive income (loss) | (2,008) | (2,008) | |||
Stock based compensation | 573 | 573 | |||
Cash dividend | (4,039) | (4,039) | |||
Exercise of options | 1,062 | 1,062 | |||
Exercise of options (in shares) | 135,396 | ||||
Ending balance at Sep. 30, 2021 | $ 45 | $ 436,835 | $ 321,184 | $ 8,767 | $ 766,831 |
Ending balance (in shares) at Sep. 30, 2021 | 44,955,139 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 37,226 | $ 30,938 | $ 85,635 | $ 62,003 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities arising during the period | (2,837) | 15,448 | (7,519) | 16,898 |
Other comprehensive income (loss) before tax | (2,837) | 15,448 | (7,519) | 16,898 |
Income tax expense (benefit) related to items of other comprehensive income | (829) | 4,519 | (2,199) | 4,942 |
Other comprehensive income (loss) | (2,008) | 10,929 | (5,320) | 11,956 |
Total comprehensive income | $ 35,218 | $ 41,867 | $ 80,315 | $ 73,959 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||||
Net income | $ 85,635 | $ 62,003 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses - loans | (2,865) | 3,990 | |||
Provision for credit losses - securities AFS | $ 982 | 2,853 | 8,049 | $ 7,245 | |
Stock-based compensation expense | 2,202 | 1,660 | |||
Depreciation and amortization | 2,477 | 2,367 | |||
Deferred tax benefit | (445) | (1,020) | |||
Amortization of premium on securities | 750 | ||||
Amortization of core deposit intangible | 1,213 | 1,456 | |||
Amortization of mortgage servicing rights - net | 1,370 | 1,034 | |||
Amortization of premiums on purchased loans - net | (4,169) | ||||
Gain on sale of loans | (18,135) | $ (15,140) | (21,459) | (15,140) | |
Valuation allowance on mortgage servicing rights - net | 2,134 | ||||
Increase in other assets | (34,876) | (4,689) | |||
Increase (decrease) in accounts payable and other liabilities | 31,151 | (5,149) | |||
Net cash provided by operating activities | 70,140 | 50,392 | |||
Cash Flows from Investing Activities: | |||||
Net increase in loans | (1,063,500) | (625,373) | |||
Proceeds from sale of loans | 580,417 | 577,875 | |||
Purchase of premises and equipment | (2,556) | (2,277) | |||
Recovery of allowance for credit losses | 864 | 786 | |||
Purchases of securities AFS | (306,267) | (60,988) | |||
Proceeds from sale of securities | 3,500 | ||||
Maturities of securities AFS | 207,423 | 197,271 | |||
Sale of FHLB stock, net | 4,269 | ||||
Net cash used in investing activities | (580,119) | 91,563 | |||
Cash Flows from Financing Activities: | |||||
Increase in deposits | 931,545 | 572,669 | |||
Net decrease in FHLB advances | (255,000) | (474,000) | |||
Line of credit net change - borrowings, net | (1,500) | ||||
Dividends paid | (12,089) | (9,380) | |||
Settlement of swap | (11,476) | ||||
Proceeds from exercise of stock options | 1,880 | 652 | |||
Repurchase of stock | (1,188) | (2,824) | |||
Net cash provided by financing activities | 663,648 | 75,641 | |||
Increase in cash and cash equivalents | 153,669 | 217,596 | |||
Cash and cash equivalents at beginning of year | 629,707 | 65,387 | 65,387 | ||
Cash and cash equivalents at end of period | $ 783,376 | $ 282,983 | 783,376 | 282,983 | $ 629,707 |
Supplemental disclosures of cash flow information: | |||||
Income taxes | 27,683 | 19,369 | |||
Interest | 12,873 | 41,500 | |||
Noncash transactions: | |||||
Transfer of loans to loans held for sale | 555,085 | 567,618 | |||
Mortgage servicing rights from loan sales | 2,726 | 3,853 | |||
Chargeoffs against allowance for credit losses | $ 627 | $ 1,393 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION The consolidated financial statements include First Foundation Inc. (“FFI”) and its wholly owned subsidiaries: First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB” or the “Bank”) and the wholly owned subsidiaries of FFB, First Foundation Insurance Services (“FFIS”), Blue Moon Management, LLC, and First Foundation Public Finance (“FFPF”) (collectively referred to as the “Company”). FFI also has two inactive wholly owned subsidiaries, First Foundation Consulting and First Foundation Advisors, LLC. All intercompany balances and transactions have been eliminated in consolidation. The results of operations reflect any interim adjustments, all of which are of a normal recurring nature and which, in the opinion of management, are necessary for a fair presentation of the results for the interim period presented. The results for the 2021 interim periods are not necessarily indicative of the results expected for the full year. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements include all information and footnotes required for interim financial statement presentation. These financial statements assume that readers have read the most recent Annual Report on Form 10-K which contains the latest available audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2020. Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2021 presentation. Recent Accounting Pronouncements In August 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-06, “ Presentation of Financial Statements (Topic 205), Financial Services – Depository and Lending (Topic 942), and Financial Services – Investment Companies (Topic 946)” In October 2020, FASB issued ASU 2020-10, “ Codification Improvements” In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 2: FAIR VALUE MEASUREMENTS Assets Measured at Fair Value on a Recurring Basis Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Current accounting guidance 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. There are three levels of inputs that may be used to measure fair values: 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 other 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 the Company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurement Level (dollars in thousands) Total Level 1 Level 2 Level 3 September 30, 2021: Investment securities available for sale: Agency mortgage-backed securities $ 757,942 $ — $ 757,942 $ — Beneficial interest – FHLMC securitizations 13,145 — — 13,145 Corporate bonds 116,911 — 116,911 — Other 3,650 497 3,153 — Investment in equity securities 540 540 — — Total assets at fair value on a recurring basis $ 892,188 $ 1,037 $ 878,006 $ 13,145 December 31, 2020: Investment securities available for sale: Agency mortgage-backed securities $ 723,995 $ — $ 723,995 $ — Beneficial interest – FHLMC securitizations 23,463 — — 23,463 Corporate bonds 58,358 — 58,358 — Other 1,610 503 1,107 — Investment in equity securities 338 338 — — Total assets at fair value on a recurring basis $ 807,764 $ 841 $ 783,460 $ 23,463 The decrease in Level 3 assets from December 31, 2020 was due to securitization paydowns and to $2.9 million in provisions for credit losses in the first nine months of 2021. Assets Measured at Fair Value on a Nonrecurring Basis From time to time, we may be required to measure other assets at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Loans Real Estate Owned Mortgage Servicing Rights. Fair Value of Financial Instruments FASB ASC 825-10, “ Disclosures about Fair Value of Financial Instruments Fair value estimates are made at a discrete point in time based on relevant market information and other information about the financial instruments. Because no active market exists for a significant portion of our financial instruments, fair value estimates are based in large part on judgments we make primarily regarding current economic conditions, risk characteristics of various financial instruments, prepayment rates, and future expected loss experience. These estimates are subjective in nature and invariably involve some inherent uncertainties. Additionally, unexpected changes in events or circumstances can occur that could require us to make changes to our assumptions and which, in turn, could significantly affect and require us to make changes to our previous estimates of fair value. In addition, the fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of existing and anticipated future customer relationships and the value of assets and liabilities that are not considered financial instruments, such as premises and equipment and other real estate owned. The following methods and assumptions were used to estimate the fair value of financial instruments: Cash and Cash Equivalents Interest-Bearing Deposits with Financial Institutions Investment Securities Available for Sale Federal Home Loan Bank Stock. Loans Held For Sale. Loans Held for Investment Deposits Borrowings The carrying amounts and estimated fair values of financial instruments are as follows as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total September 30, 2021: Assets: Cash and cash equivalents $ 783,376 $ 783,376 $ — $ — $ 783,376 Securities AFS, net 891,648 497 878,006 13,145 891,648 Loans held for sale 501,433 — 506,547 — 506,547 Loans, net 5,287,974 — — 5,342,001 5,342,001 Investment in FHLB stock 17,250 — 17,250 — 17,250 Investment in equity securities 540 540 — — 540 Liabilities: Deposits $ 6,844,978 $ 6,231,505 $ 619,516 $ — $ 6,851,021 Borrowings 12,500 — — 12,500 12,500 December 31, 2020: Assets: Cash and cash equivalents $ 629,707 $ 629,707 $ — $ — $ 629,707 Securities AFS, net 807,426 503 783,460 23,463 807,426 Loans held for sale 505,404 — 510,638 — 510,638 Loans, net 4,779,599 — — 4,829,258 4,829,258 Investment in FHLB stock 17,250 — 17,250 — 17,250 Investment in equity securities 338 338 — — 338 Liabilities: Deposits $ 5,913,433 $ 4,934,537 $ 978,897 $ — $ 5,913,434 Borrowings 269,000 — 255,000 14,000 269,000 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
SECURITIES | |
SECURITIES | NOTE 3: SECURITIES The following table provides a summary of the Company’s securities AFS portfolio as of: Amortized Gross Unrealized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value September 30, 2021: Agency mortgage-backed securities $ 749,029 $ 9,914 $ (1,001) $ — $ 757,942 Beneficial interests in FHLMC securitization 22,764 479 — (10,098) 13,145 Corporate bonds 114,000 3,034 (123) — 116,911 Other 3,561 91 (2) — 3,650 Total $ 889,354 $ 13,518 $ (1,126) $ (10,098) $ 891,648 December 31, 2020: Agency mortgage-backed securities $ 705,752 $ 18,243 $ — $ — $ 723,995 Beneficial interests in FHLMC securitization 30,497 211 — (7,245) 23,463 Corporate bonds 57,000 1,358 — — 58,358 Other 1,512 98 — — 1,610 Total $ 794,761 $ 19,910 $ — $ (7,245) $ 807,426 US Treasury securities of $0.5 million as of September 30, 2021 and December 31, 2020 that are included in the table above as Other are pledged as collateral to the State of California to meet regulatory requirements related to the Bank’s trust operations. As of September 30, 2021, $169.7 million of agency mortgage-backed securities are pledged as collateral as support for the Bank’s obligations under loan sales and securitization agreements entered into from 2018 through 2021. The table below indicates, as of September 30, 2021, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Securities with Unrealized Loss at September 30, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Agency mortgage-backed securities $ 86,766 $ (1,001) $ — $ — $ 86,766 $ (1,001) Corporate bonds 19,877 (123) — — 19,877 (123) Other 497 (2) — — 497 (2) Total temporarily impaired securities $ 107,140 $ (1,126) $ — $ — $ 107,140 $ (1,126) There were no unrealized losses on our investments as of December 31, 2020. Unrealized losses in agency mortgage backed securities, beneficial interests in FHLMC securitizations, and other securities have not been recognized into income because the issuer bonds are of high credit quality, management does not intend to sell, it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in discount rates and assumptions regarding future interest rates. The fair value is expected to recover as the bonds approach maturity. The following is a roll forward of the Bank’s allowance for credit losses related to securities for the following periods: (dollars in thousands) Total Three Months Ended September 30, 2021: Beginning balance $ 9,116 Provision for credit losses 982 Balance: September 30, 2021 $ 10,098 Nine Months Ended September 30, 2021: Beginning balance $ 7,245 Provision for credit losses 2,853 Balance: September 30, 2021 $ 10,098 Year Ended December 31, 2020: Beginning balance $ — Provision for credit losses 7,245 Balance: December 31, 2020 $ 7,245 The scheduled maturities of securities AFS and the related weighted average yields were as follows for the periods indicated: Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total September 30, 2021 Amortized Cost: Corporate bonds $ — $ — $ 109,000 $ 5,000 $ 114,000 Other — 1,533 2,028 — 3,561 Total $ — $ 1,533 $ 111,028 $ 5,000 $ 117,561 Weighted average yield — % 2.03 % 4.37 % 3.38 % 4.30 % Estimated Fair Value: Corporate bonds $ — $ — $ 111,811 $ 5,100 $ 116,911 Other — 1,619 2,031 — 3,650 Total $ — $ 1,619 $ 113,842 $ 5,100 $ 120,561 Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total December 31, 2020 Amortized Cost: Corporate bonds $ — $ — $ 57,000 $ — $ 57,000 Other 500 1,012 — — 1,512 Total $ 500 $ 1,012 $ 57,000 $ — $ 58,512 Weighted average yield 1.83 % 2.81 % 5.39 % — % 5.32 % Estimated Fair Value: Corporate bonds $ — $ — $ 58,358 $ — $ 58,358 Other 503 1,107 — — 1,610 Total $ 503 $ 1,107 $ 58,358 $ — $ 59,968 Agency mortgage-backed securities and beneficial interests in FHLMC securitizations are excluded from the above table because such securities are not due at a single maturity date. The weighted average yield of the agency mortgage-backed securities and beneficial interests as of September 30, 2021 and December 31, 2020 was 2.00% and 2.39%, respectively. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2021 | |
LOANS | |
LOANS | NOTE 4: LOANS The following is a summary of our loans as of: September 30, December 31, (dollars in thousands) 2021 2020 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 2,518,151 $ 2,247,542 Single family 818,968 806,014 Total real estate loans secured by residential properties 3,337,119 3,053,556 Commercial properties 669,912 747,807 Land and construction 63,706 55,832 Total real estate loans 4,070,737 3,857,195 Commercial and industrial loans 1,217,078 918,676 Consumer loans 9,468 18,888 Total loans 5,297,283 4,794,759 Premiums, discounts and deferred fees and expenses 11,676 9,040 Total $ 5,308,959 $ 4,803,799 The following table summarizes our delinquent and nonaccrual loans as of: Past Due and Still Accruing Total Past 90 Days Due and (dollars in thousands) 30–59 Days 60-89 Days or More Nonaccrual Nonaccrual Current Total September 30, 2021: Real estate loans: Residential properties $ — $ — $ — $ 10,652 $ 10,652 $ 3,338,547 $ 3,349,199 Commercial properties 2,947 — — 1,573 4,520 665,806 670,326 Land and construction — — — — — 63,701 63,701 Commercial and industrial loans 79 122 — 6,481 6,682 1,209,559 1,216,241 Consumer loans 1,142 — — — 1,142 8,350 9,492 Total $ 4,168 $ 122 $ — $ 18,706 $ 22,996 $ 5,285,963 $ 5,308,959 Percentage of total loans 0.08 % 0.00 % — % 0.35 % 0.43 % December 31, 2020: Real estate loans: Residential properties $ 35 $ — $ — $ 10,947 $ 10,982 $ 3,042,574 $ 3,053,556 Commercial properties 951 240 — 4,544 5,735 742,072 747,807 Land and construction — — — — — 55,832 55,832 Commercial and industrial loans 1,013 411 152 5,137 6,713 911,963 918,676 Consumer loans — — — — — 18,888 18,888 Total $ 1,999 $ 651 $ 152 $ 20,628 $ 23,430 $ 4,771,329 $ 4,794,759 Percentage of total loans 0.04 % 0.01 % 0.00 % 0.43 % 0.49 % The following table summarizes our nonaccrual loans as of: Nonaccrual Nonaccrual with Allowance with no Allowance (dollars in thousands) for Credit Losses for Credit Losses September 30, 2021: Real estate loans: Residential properties $ 2,943 $ 7,709 Commercial properties — 1,573 Commercial and industrial loans 1,845 4,636 Total $ 4,788 $ 13,918 December 31, 2020: Real estate loans: Residential properties $ 2,987 $ 7,959 Commercial properties — 4,544 Commercial and industrial loans 2,581 2,557 Total $ 5,568 $ 15,060 The following table presents the loans classified as troubled debt restructurings (“TDR”) by accrual and nonaccrual status as of: September 30, 2021 December 31, 2020 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Residential loans $ 1,200 $ — $ 1,200 $ 1,200 $ — $ 1,200 Commercial real estate loans 1,043 1,201 2,244 1,107 1,277 2,384 Commercial and industrial loans 863 2,100 2,963 1,041 2,832 3,873 Total $ 3,106 $ 3,301 $ 6,407 $ 3,348 $ 4,109 $ 7,457 The following table provides information on loans that were modified as TDRs for the following periods: Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Nine Months Ended September 30, 2021: Commercial and industrial loans 1 $ 346 $ 346 $ — Total 1 $ 346 $ 346 $ — Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year Ended December 31, 2020 Commercial and industrial loans 1 $ 507 $ 507 — Total 1 $ 507 $ 507 $ — All of these loans were classified as a TDR as a result of a reduction in required principal payments and an extension of the maturity date of the loans. These loans have been paying in accordance with the terms of their restructure. |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2021 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 5: ALLOWANCE FOR CREDIT LOSSES The following is a roll forward of the Bank’s allowance for credit losses related to loans for the following periods: Beginning Adoption of Provision (benefit) for Ending (dollars in thousands) Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2021: Real estate loans: Residential properties $ 7,236 $ — $ (1,507) $ — $ — $ 5,729 Commercial properties 5,485 — (148) — — 5,337 Land and construction 1,984 — (258) — — 1,726 Commercial and industrial loans 7,458 — 492 (219) 355 8,086 Consumer loans 109 — (2) — — 107 Total $ 22,272 $ — $ (1,423) $ (219) $ 355 $ 20,985 Nine Months Ended September 30, 2021: Real estate loans: Residential properties $ 5,115 $ — $ 614 $ — $ — $ 5,729 Commercial properties 8,711 — (3,374) — — 5,337 Land and construction 892 — 834 — — 1,726 Commercial and industrial loans 9,249 — (1,400) (627) 864 8,086 Consumer loans 233 — (126) — — 107 Total $ 24,200 $ — $ (3,452) $ (627) $ 864 $ 20,985 Year Ended December 31, 2020: Real estate loans: Residential properties $ 8,423 $ 363 $ (3,671) $ — $ — $ 5,115 Commercial properties 4,166 3,760 785 — — 8,711 Land and construction 573 92 227 — — 892 Commercial and industrial loans 7,448 — 2,642 (1,844) 1,003 9,249 Consumer loans 190 — 43 — — 233 Total $ 20,800 $ 4,215 $ 26 $ (1,844) $ 1,003 $ 24,200 The following table presents the balance in the allowance for credit losses and the recorded investment in loans by impairment method as of: Allowance for Credit Losses Loans Evaluated (dollars in thousands) Individually Collectively Total September 30, 2021: Allowance for credit losses: Real estate loans: Residential properties $ 1,174 $ 4,555 $ 5,729 Commercial properties 411 4,926 5,337 Land and construction — 1,726 1,726 Commercial and industrial loans 590 7,496 8,086 Consumer loans — 107 107 Total $ 2,175 $ 18,810 $ 20,985 Loans: Real estate loans: Residential properties $ 16,417 $ 3,332,782 $ 3,349,199 Commercial properties 13,931 656,395 670,326 Land and construction — 63,701 63,701 Commercial and industrial loans 7,611 1,208,630 1,216,241 Consumer loans — 9,492 9,492 Total $ 37,959 $ 5,271,000 $ 5,308,959 December 31, 2020: Allowance for credit losses: Real estate loans: Residential properties $ 1,059 $ 4,056 $ 5,115 Commercial properties 374 8,337 8,711 Land and construction — 892 892 Commercial and industrial loans 956 8,293 9,249 Consumer loans — 233 233 Total $ 2,389 $ 21,811 $ 24,200 Loans: Real estate loans: Residential properties $ 12,414 $ 3,041,142 $ 3,053,556 Commercial properties 17,304 730,503 747,807 Land and construction — 55,832 55,832 Commercial and industrial loans 6,472 912,204 918,676 Consumer loans — 18,888 18,888 Total $ 36,190 $ 4,758,569 $ 4,794,759 The following tables present risk categories of loans based on year of origination, as of: Revolving (dollars in thousands) 2021 2020 2019 2018 2017 Prior Loans Total September 30, 2021: Loans secured by Real Estate: Residential Multifamily Pass $ 552,257 $ 887,859 $ 492,189 $ 305,631 $ 174,156 $ 114,690 $ — $ 2,526,782 Special Mention — — 1,182 — — — — 1,182 Substandard — — — — — — — — Total $ 552,257 $ 887,859 $ 493,371 $ 305,631 $ 174,156 $ 114,690 $ — $ 2,527,964 Single Family Pass $ 222,918 $ 132,447 $ 57,672 $ 71,626 $ 59,101 $ 239,357 $ 21,671 $ 804,792 Special Mention — — — — — — 26 26 Substandard — — — — 1,887 11,269 3,261 16,417 Total $ 222,918 $ 132,447 $ 57,672 $ 71,626 $ 60,988 $ 250,626 $ 24,958 $ 821,235 Commercial Real Estate Pass $ 55,894 $ 39,467 $ 76,225 $ 93,801 $ 120,021 $ 242,375 $ — $ 627,783 Special Mention — — 10,595 10,674 — 5,895 — 27,164 Substandard — — 5,861 — 2,252 7,266 — 15,379 Total $ 55,894 $ 39,467 $ 92,681 $ 104,475 $ 122,273 $ 255,536 $ — $ 670,326 Land and construction Pass $ 4,360 $ (13) $ 17,208 $ 31,060 $ 10,505 $ 581 $ — $ 63,701 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 4,360 $ (13) $ 17,208 $ 31,060 $ 10,505 $ 581 $ — $ 63,701 Commercial Pass $ 357,032 $ 206,077 $ 99,384 $ 24,709 $ 7,014 $ 22,685 $ 483,029 $ 1,199,930 Special Mention — 1,383 904 824 — 51 1,241 4,403 Substandard — 1,969 1,847 1,007 214 2,564 4,307 11,908 Total $ 357,032 $ 209,429 $ 102,135 $ 26,540 $ 7,228 $ 25,300 $ 488,577 $ 1,216,241 Consumer Pass $ 39 $ 1,142 $ — $ 1,249 $ — $ 81 $ 6,981 $ 9,492 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 39 $ 1,142 $ — $ 1,249 $ — $ 81 $ 6,981 $ 9,492 Total loans Pass $ 1,192,500 $ 1,266,979 $ 742,678 $ 528,076 $ 370,797 $ 619,769 $ 511,681 $ 5,232,480 Special Mention — 1,383 12,681 11,498 — 5,946 1,267 32,775 Substandard — 1,969 7,708 1,007 4,353 21,099 7,568 43,704 Total $ 1,192,500 $ 1,270,331 $ 763,067 $ 540,581 $ 375,150 $ 646,814 $ 520,516 $ 5,308,959 Revolving (dollars in thousands) 2020 2019 2018 2017 2016 Prior Loans Total December 31, 2020: Loans secured by Real Estate: Residential Multifamily Pass $ 774,701 $ 638,237 $ 469,866 $ 218,470 $ 82,941 $ 63,328 $ — $ 2,247,543 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 774,701 $ 638,237 $ 469,866 $ 218,470 $ 82,941 $ 63,328 $ — $ 2,247,543 Single Family Pass $ 173,563 $ 83,311 $ 110,560 $ 95,888 $ 107,568 $ 196,692 $ 25,014 $ 792,596 Special Mention — — — 986 — — — 986 Substandard — — — 1,946 — 7,134 3,351 12,431 Total $ 173,563 $ 83,311 $ 110,560 $ 98,820 $ 107,568 $ 203,826 $ 28,365 $ 806,013 Commercial Real Estate Pass $ 46,260 $ 100,432 $ 120,230 $ 129,120 $ 119,719 $ 194,533 $ — $ 710,294 Special Mention — 743 16,278 — 2,333 157 — 19,511 Substandard — 5,929 — 2,336 2,515 7,222 — 18,002 Total $ 46,260 $ 107,104 $ 136,508 $ 131,456 $ 124,567 $ 201,912 $ — $ 747,807 Land and construction Pass $ 257 $ 15,923 $ 27,792 $ 10,532 $ 706 $ 622 $ — $ 55,832 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 257 $ 15,923 $ 27,792 $ 10,532 $ 706 $ 622 $ — $ 55,832 Commercial Pass $ 377,500 $ 146,279 $ 54,910 $ 15,868 $ 13,180 $ 16,823 $ 270,604 $ 895,164 Special Mention 2,058 3,922 1,868 579 297 448 6,107 15,279 Substandard 1,226 316 1,188 259 2,459 281 2,504 8,233 Total $ 380,784 $ 150,517 $ 57,966 $ 16,706 $ 15,936 $ 17,552 $ 279,215 $ 918,676 Consumer Pass $ 2,557 $ — $ 1,321 $ 3 $ 6,784 $ 100 $ 8,123 $ 18,888 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 2,557 $ — $ 1,321 $ 3 $ 6,784 $ 100 $ 8,123 $ 18,888 Total loans Pass $ 1,374,838 $ 984,182 $ 784,679 $ 469,881 $ 330,898 $ 472,098 $ 303,741 $ 4,720,317 Special Mention 2,058 4,665 18,146 1,565 2,630 605 6,107 35,776 Substandard 1,226 6,245 1,188 4,541 4,974 14,637 5,855 38,666 Total $ 1,378,122 $ 995,092 $ 804,013 $ 475,987 $ 338,502 $ 487,340 $ 315,703 $ 4,794,759 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses and the related allowance for credit losses (“ACL”) allocated to these loans: Equipment/ ACL (dollars in thousands) Real Estate Cash Receivables Total Allocation September 30, 2021: Loans secured by Real Estate: Residential properties Single family $ 9,918 $ — $ — $ 9,918 $ 1,157 Commercial loans — 250 — 250 — Total $ 9,918 $ 250 $ — $ 10,168 $ 1,157 December 31, 2020: Loans secured by Real Estate: Residential properties Single family $ 10,144 $ — $ — $ 10,144 $ 1,051 Commercial loans — 250 122 372 44 Total $ 10,144 $ 250 $ 122 $ 10,516 $ 1,095 |
LOAN SALES AND MORTGAGE SERVICI
LOAN SALES AND MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2021 | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | |
LOAN SALES AND MORTGAGE SERVICING RIGHTS | NOTE 6: LOAN SALES AND MORTGAGE SERVICING RIGHTS FFB sold $580 million of multifamily loans for the nine months ended September 30, 2021 and recognized a gain of $21.5 million. In 2020, FFB sold $553 million of multifamily loans and recognized a gain of $15.1 million. For sales of multifamily loans, FFB retained servicing rights for the majority of these loans and recognized mortgage servicing rights as part of the transactions. As of September 30, 2021 and December 31, 2020, mortgage servicing rights were $10.7 million and $7.9 million, respectively. The amount of loans serviced for others totaled $1.5 billion as of September 30, 2021 and December 31, 2020. The mortgage servicing rights as of September 30, 2021 and December 31, 2020 are net of $3.6 million and $1.4 million valuation allowances, respectively. Excluding $3.1 million in valuation provisions on mortgage servicing rights taken in the nine months ended September 30, 2021, servicing fees for the first nine months ended September 30, 2021 were $2.3 million, while servicing fees were $0.3 million for the nine months ended September 30, 2020. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2021 | |
DEPOSITS | |
DEPOSITS | NOTE 7: DEPOSITS The following table summarizes the outstanding balance of deposits and average rates paid thereon as of: September 30, 2021 December 31, 2020 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 2,995,570 — $ 1,655,847 — Interest-bearing 945,654 0.241 % 871,289 0.372 % Money market and savings 2,290,380 0.319 % 2,407,401 0.549 % Certificates of deposits 613,374 0.229 % 978,896 0.591 % Total $ 6,844,978 0.161 % $ 5,913,433 0.376 % At September 30, 2021, of the $344 million of certificates of deposits over $250,000, $342 million mature within one year and $2 million mature after one year. Of the $269 million of certificates of deposit of $250,000 or less, $260 million mature within one year and $9 million mature after one year. At December 31, 2020, of the $416 million of certificates of deposits of $250,000 or more, $409 million mature within one year and $7 million mature after one year. Of the $563 million of certificates of deposit of less than $250,000, $520 million mature within one year and $43 million mature after one year. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2021 | |
BORROWINGS | |
BORROWINGS | NOTE 8: BORROWINGS At September 30, 2021, our borrowings consisted of $12.5 million of borrowings under a holding company line of credit. At December 31, 2020, our borrowings consisted of $255 million of overnight FHLB advances at the Bank and $14 million of borrowings under a holding company line of credit. At September 30, 2021, the interest rate on the holding company line of credit was 3.64%. FHLB advances are collateralized primarily by loans secured by single family, multifamily, and commercial real estate properties with a carrying value of $3.8 billion as of September 30, 2021. As a matter of practice, the Bank provides substantially all of its qualifying loans as collateral to the FHLB or the Federal Reserve Bank. The Bank’s total borrowing capacity from the FHLB at September 30, 2021 was $2.5 billion. The Bank had in place $275 million of letters of credit from the FHLB, as of September 30, 2021 which are used to meet collateral requirements for borrowings from the State of California and local agencies. During 2017, FFI entered into a loan agreement with an unaffiliated lender that provides for a revolving line of credit for up to $40 million. The loan agreement matures in five years, with an option to extend the maturity date subject to certain conditions, and bears interest at 90 day LIBOR plus 350 basis points (3.50%). FFI’s obligations under the loan agreement are secured by, among other things, a pledge of all of its equity in FFB. We are required to meet certain financial covenants during the term of the loan, including minimum capital levels and limits on classified assets. As of September 30, 2021 and December 31, 2020, FFI was in compliance with the covenants on this loan agreement. The Bank also has $195 million available borrowing capacity through unsecured fed funds lines, ranging in size from $20 million to $100 million, with five other financial institutions, and a $204 million secured line with the Federal Reserve Bank, secured by single family loans. None of these lines had outstanding borrowings as September 30, 2021. Combined, the Bank’s unused lines of credit as of September 30, 2021 and December 31, 2020 were $2.9 billion and $2.4 billion, respectively. The average balance of overnight borrowings during all of 2020 was $56 million. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 9: EARNINGS PER SHARE Basic earnings per share excludes dilution and is computed by dividing net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock that would then share in earnings. The following table sets forth the Company’s unaudited earnings per share calculations for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 37,226 $ 37,226 $ 30,938 $ 30,938 Basic common shares outstanding 44,819,743 44,819,743 44,625,668 44,625,668 Effect of options, restricted stock and contingent shares issuable 183,194 260,108 Diluted common shares outstanding 45,002,937 44,885,776 Earnings per share $ 0.83 $ 0.83 $ 0.69 $ 0.69 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 (dollars in thousands, except share and per share amounts) Basic Diluted Basic Diluted Net income $ 85,635 $ 85,635 $ 62,003 $ 62,003 Basic common shares outstanding 44,773,683 44,773,683 44,638,634 44,638,634 Effect of options and restricted stock 204,180 244,978 Diluted common shares outstanding 44,977,863 44,883,612 Earnings per share $ 1.91 $ 1.90 $ 1.39 $ 1.38 Based on a weighted average basis, restricted stock units to purchase 39,439 shares of common stock were excluded for the nine months ended September 30 2020, because their effect would have been anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2021 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 10: SEGMENT REPORTING For the three and nine months ended September 30, 2021 and 2020, the Company had two reportable business segments: Banking (FFB and FFIS) and Wealth Management (FFA). The results of FFI and any elimination entries are included in the column labeled “Other”. The following tables show key operating results for each of our business segments used to arrive at our consolidated totals for the following periods: Wealth (dollars in thousands) Banking Management Other Total Three Months Ended September 30, 2021: Interest income $ 61,989 $ — $ — $ 61,989 Interest expense 2,753 — 49 2,802 Net interest income 59,236 — (49) 59,187 Provision for credit losses (417) — — (417) Noninterest income 23,202 7,857 (379) 30,680 Noninterest expense 31,488 6,338 568 38,394 Income (loss) before taxes on income $ 51,367 $ 1,519 $ (996) $ 51,890 Three Months Ended September 30, 2020: Interest income $ 61,691 $ — $ — $ 61,691 Interest expense 10,024 — 50 10,074 Net interest income 51,667 — (50) 51,617 Provision for credit losses 1,548 — — 1,548 Noninterest income 17,976 6,020 (355) 23,641 Noninterest expense 24,949 5,166 480 30,595 Income (loss) before taxes on income $ 43,146 $ 854 $ (885) $ 43,115 Wealth (dollars in thousands) Banking Management Other Total Nine Months Ended September 30, 2021: Interest income $ 182,530 $ — $ — $ 182,530 Interest expense 10,988 — 216 11,204 Net interest income 171,542 — (216) 171,326 Provision for credit losses (13) — — (13) Noninterest income 35,710 22,020 (1,107) 56,623 Noninterest expense 88,935 17,441 2,146 108,522 Income (loss) before taxes on income $ 118,330 $ 4,579 $ (3,469) $ 119,440 Nine Months Ended September 30, 2020: Interest income $ 185,961 $ — $ — $ 185,961 Interest expense 40,899 — 130 41,029 Net interest income 145,062 — (130) 144,932 Provision for credit losses 6,979 — — 6,979 Noninterest income 26,270 18,139 (1,124) 43,285 Noninterest expense 76,235 16,735 1,434 94,404 Income (loss) before taxes on income $ 88,118 $ 1,404 $ (2,688) $ 86,834 |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2021 | |
ACQUISITIONS | |
ACQUISITIONS | NOTE 11: ACQUISITIONS Acquisition of TGR Financial, Inc. On June 2, 2021, FFI entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with TGR Financial, Inc. (“TGR Financial”), pursuant to which TGR Financial will merge with and into FFI (the “Merger”), with FFI as the surviving corporation. The Merger Agreement contemplates that immediately after the Merger, First Florida Integrity Bank, a Florida state-chartered bank and wholly-owned subsidiary of TGR Financial, will merge with and into FFB, with FFB as the surviving bank. Subject to the terms and conditions of the Merger Agreement, upon consummation of the Merger, each outstanding share of TGR Financial common stock will be converted into the right to receive 0.6068 (the “Exchange Ratio”) of a share of FFI common stock, and each outstanding share of TGR Financial preferred stock will be converted into the right to receive the number of shares of FFI common stock equal to the product of the number of shares of TGR Financial common stock into which such share of TGR Financial preferred stock is convertible in connection with, and as a result of, the Merger, multiplied by the Exchange Ratio. In addition, at the effective time of the Merger, FFI will cash out all outstanding stock options based on a formula using the average closing price of FFI’s common stock for a 20-day trading period prior to the closing of the Merger. Subject to regulatory approvals, the transaction is expected to close during the fourth quarter of 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 12: SUBSEQUENT EVENTS Cash Dividend On October 26, 2021, the Board of Directors of the Company declared a quarterly cash dividend of $0.09 per common share to be paid on November 15, 2021 to stockholders of record as of the close of business on November 5, 2021. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
BASIS OF PRESENTATION | |
Basis of Presentation | The consolidated financial statements include First Foundation Inc. (“FFI”) and its wholly owned subsidiaries: First Foundation Advisors (“FFA”) and First Foundation Bank (“FFB” or the “Bank”) and the wholly owned subsidiaries of FFB, First Foundation Insurance Services (“FFIS”), Blue Moon Management, LLC, and First Foundation Public Finance (“FFPF”) (collectively referred to as the “Company”). FFI also has two inactive wholly owned subsidiaries, First Foundation Consulting and First Foundation Advisors, LLC. All intercompany balances and transactions have been eliminated in consolidation. The results of operations reflect any interim adjustments, all of which are of a normal recurring nature and which, in the opinion of management, are necessary for a fair presentation of the results for the interim period presented. The results for the 2021 interim periods are not necessarily indicative of the results expected for the full year. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. The accompanying unaudited consolidated financial statements include all information and footnotes required for interim financial statement presentation. These financial statements assume that readers have read the most recent Annual Report on Form 10-K which contains the latest available audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2020. Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2021 presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-06, “ Presentation of Financial Statements (Topic 205), Financial Services – Depository and Lending (Topic 942), and Financial Services – Investment Companies (Topic 946)” In October 2020, FASB issued ASU 2020-10, “ Codification Improvements” In March 2020, the FASB issued ASU 2020-04, “ Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting” |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables show the recorded amounts of assets and liabilities measured at fair value on a recurring basis as of: Fair Value Measurement Level (dollars in thousands) Total Level 1 Level 2 Level 3 September 30, 2021: Investment securities available for sale: Agency mortgage-backed securities $ 757,942 $ — $ 757,942 $ — Beneficial interest – FHLMC securitizations 13,145 — — 13,145 Corporate bonds 116,911 — 116,911 — Other 3,650 497 3,153 — Investment in equity securities 540 540 — — Total assets at fair value on a recurring basis $ 892,188 $ 1,037 $ 878,006 $ 13,145 December 31, 2020: Investment securities available for sale: Agency mortgage-backed securities $ 723,995 $ — $ 723,995 $ — Beneficial interest – FHLMC securitizations 23,463 — — 23,463 Corporate bonds 58,358 — 58,358 — Other 1,610 503 1,107 — Investment in equity securities 338 338 — — Total assets at fair value on a recurring basis $ 807,764 $ 841 $ 783,460 $ 23,463 |
Carrying Amounts and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of financial instruments are as follows as of: Carrying Fair Value Measurement Level (dollars in thousands) Value 1 2 3 Total September 30, 2021: Assets: Cash and cash equivalents $ 783,376 $ 783,376 $ — $ — $ 783,376 Securities AFS, net 891,648 497 878,006 13,145 891,648 Loans held for sale 501,433 — 506,547 — 506,547 Loans, net 5,287,974 — — 5,342,001 5,342,001 Investment in FHLB stock 17,250 — 17,250 — 17,250 Investment in equity securities 540 540 — — 540 Liabilities: Deposits $ 6,844,978 $ 6,231,505 $ 619,516 $ — $ 6,851,021 Borrowings 12,500 — — 12,500 12,500 December 31, 2020: Assets: Cash and cash equivalents $ 629,707 $ 629,707 $ — $ — $ 629,707 Securities AFS, net 807,426 503 783,460 23,463 807,426 Loans held for sale 505,404 — 510,638 — 510,638 Loans, net 4,779,599 — — 4,829,258 4,829,258 Investment in FHLB stock 17,250 — 17,250 — 17,250 Investment in equity securities 338 338 — — 338 Liabilities: Deposits $ 5,913,433 $ 4,934,537 $ 978,897 $ — $ 5,913,434 Borrowings 269,000 — 255,000 14,000 269,000 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SECURITIES | |
Summary of AFS Securities Portfolio | The following table provides a summary of the Company’s securities AFS portfolio as of: Amortized Gross Unrealized Allowance for Estimated (dollars in thousands) Cost Gains Losses Credit Losses Fair Value September 30, 2021: Agency mortgage-backed securities $ 749,029 $ 9,914 $ (1,001) $ — $ 757,942 Beneficial interests in FHLMC securitization 22,764 479 — (10,098) 13,145 Corporate bonds 114,000 3,034 (123) — 116,911 Other 3,561 91 (2) — 3,650 Total $ 889,354 $ 13,518 $ (1,126) $ (10,098) $ 891,648 December 31, 2020: Agency mortgage-backed securities $ 705,752 $ 18,243 $ — $ — $ 723,995 Beneficial interests in FHLMC securitization 30,497 211 — (7,245) 23,463 Corporate bonds 57,000 1,358 — — 58,358 Other 1,512 98 — — 1,610 Total $ 794,761 $ 19,910 $ — $ (7,245) $ 807,426 |
Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time | The table below indicates, as of September 30, 2021, the gross unrealized losses and fair values of our investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Securities with Unrealized Loss at September 30, 2021 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) Value Loss Value Loss Value Loss Agency mortgage-backed securities $ 86,766 $ (1,001) $ — $ — $ 86,766 $ (1,001) Corporate bonds 19,877 (123) — — 19,877 (123) Other 497 (2) — — 497 (2) Total temporarily impaired securities $ 107,140 $ (1,126) $ — $ — $ 107,140 $ (1,126) |
Summary of Allowance For Credit Losses - Securities AFS | (dollars in thousands) Total Three Months Ended September 30, 2021: Beginning balance $ 9,116 Provision for credit losses 982 Balance: September 30, 2021 $ 10,098 Nine Months Ended September 30, 2021: Beginning balance $ 7,245 Provision for credit losses 2,853 Balance: September 30, 2021 $ 10,098 Year Ended December 31, 2020: Beginning balance $ — Provision for credit losses 7,245 Balance: December 31, 2020 $ 7,245 |
Scheduled Maturities of Securities AFS Other than Mortgage Backed Securities and the Related Weighted Average Yield | The scheduled maturities of securities AFS and the related weighted average yields were as follows for the periods indicated: Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total September 30, 2021 Amortized Cost: Corporate bonds $ — $ — $ 109,000 $ 5,000 $ 114,000 Other — 1,533 2,028 — 3,561 Total $ — $ 1,533 $ 111,028 $ 5,000 $ 117,561 Weighted average yield — % 2.03 % 4.37 % 3.38 % 4.30 % Estimated Fair Value: Corporate bonds $ — $ — $ 111,811 $ 5,100 $ 116,911 Other — 1,619 2,031 — 3,650 Total $ — $ 1,619 $ 113,842 $ 5,100 $ 120,561 Less than 1 Through 5 Through After (dollars in thousands) 1 Year 5 years 10 Years 10 Years Total December 31, 2020 Amortized Cost: Corporate bonds $ — $ — $ 57,000 $ — $ 57,000 Other 500 1,012 — — 1,512 Total $ 500 $ 1,012 $ 57,000 $ — $ 58,512 Weighted average yield 1.83 % 2.81 % 5.39 % — % 5.32 % Estimated Fair Value: Corporate bonds $ — $ — $ 58,358 $ — $ 58,358 Other 503 1,107 — — 1,610 Total $ 503 $ 1,107 $ 58,358 $ — $ 59,968 |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
LOANS | |
Summary of Loans | September 30, December 31, (dollars in thousands) 2021 2020 Outstanding principal balance: Loans secured by real estate: Residential properties: Multifamily $ 2,518,151 $ 2,247,542 Single family 818,968 806,014 Total real estate loans secured by residential properties 3,337,119 3,053,556 Commercial properties 669,912 747,807 Land and construction 63,706 55,832 Total real estate loans 4,070,737 3,857,195 Commercial and industrial loans 1,217,078 918,676 Consumer loans 9,468 18,888 Total loans 5,297,283 4,794,759 Premiums, discounts and deferred fees and expenses 11,676 9,040 Total $ 5,308,959 $ 4,803,799 |
Summary of Delinquent and Nonaccrual Loans | The following table summarizes our delinquent and nonaccrual loans as of: Past Due and Still Accruing Total Past 90 Days Due and (dollars in thousands) 30–59 Days 60-89 Days or More Nonaccrual Nonaccrual Current Total September 30, 2021: Real estate loans: Residential properties $ — $ — $ — $ 10,652 $ 10,652 $ 3,338,547 $ 3,349,199 Commercial properties 2,947 — — 1,573 4,520 665,806 670,326 Land and construction — — — — — 63,701 63,701 Commercial and industrial loans 79 122 — 6,481 6,682 1,209,559 1,216,241 Consumer loans 1,142 — — — 1,142 8,350 9,492 Total $ 4,168 $ 122 $ — $ 18,706 $ 22,996 $ 5,285,963 $ 5,308,959 Percentage of total loans 0.08 % 0.00 % — % 0.35 % 0.43 % December 31, 2020: Real estate loans: Residential properties $ 35 $ — $ — $ 10,947 $ 10,982 $ 3,042,574 $ 3,053,556 Commercial properties 951 240 — 4,544 5,735 742,072 747,807 Land and construction — — — — — 55,832 55,832 Commercial and industrial loans 1,013 411 152 5,137 6,713 911,963 918,676 Consumer loans — — — — — 18,888 18,888 Total $ 1,999 $ 651 $ 152 $ 20,628 $ 23,430 $ 4,771,329 $ 4,794,759 Percentage of total loans 0.04 % 0.01 % 0.00 % 0.43 % 0.49 % |
Summary of nonaccrual loans | Nonaccrual Nonaccrual with Allowance with no Allowance (dollars in thousands) for Credit Losses for Credit Losses September 30, 2021: Real estate loans: Residential properties $ 2,943 $ 7,709 Commercial properties — 1,573 Commercial and industrial loans 1,845 4,636 Total $ 4,788 $ 13,918 December 31, 2020: Real estate loans: Residential properties $ 2,987 $ 7,959 Commercial properties — 4,544 Commercial and industrial loans 2,581 2,557 Total $ 5,568 $ 15,060 |
Composition of TDRs by Accrual and Nonaccrual Status | The following table presents the loans classified as troubled debt restructurings (“TDR”) by accrual and nonaccrual status as of: September 30, 2021 December 31, 2020 (dollars in thousands) Accrual Nonaccrual Total Accrual Nonaccrual Total Residential loans $ 1,200 $ — $ 1,200 $ 1,200 $ — $ 1,200 Commercial real estate loans 1,043 1,201 2,244 1,107 1,277 2,384 Commercial and industrial loans 863 2,100 2,963 1,041 2,832 3,873 Total $ 3,106 $ 3,301 $ 6,407 $ 3,348 $ 4,109 $ 7,457 The following table provides information on loans that were modified as TDRs for the following periods: Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Nine Months Ended September 30, 2021: Commercial and industrial loans 1 $ 346 $ 346 $ — Total 1 $ 346 $ 346 $ — Outstanding Recorded Investment (dollars in thousands) Number of loans Pre-Modification Post-Modification Financial Impact Year Ended December 31, 2020 Commercial and industrial loans 1 $ 507 $ 507 — Total 1 $ 507 $ 507 $ — |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
ALLOWANCE FOR CREDIT LOSSES | |
Bank's Allowance for Credit Losses | The following is a roll forward of the Bank’s allowance for credit losses related to loans for the following periods: Beginning Adoption of Provision (benefit) for Ending (dollars in thousands) Balance ASC 326 Credit Losses Charge-offs Recoveries Balance Three Months Ended September 30, 2021: Real estate loans: Residential properties $ 7,236 $ — $ (1,507) $ — $ — $ 5,729 Commercial properties 5,485 — (148) — — 5,337 Land and construction 1,984 — (258) — — 1,726 Commercial and industrial loans 7,458 — 492 (219) 355 8,086 Consumer loans 109 — (2) — — 107 Total $ 22,272 $ — $ (1,423) $ (219) $ 355 $ 20,985 Nine Months Ended September 30, 2021: Real estate loans: Residential properties $ 5,115 $ — $ 614 $ — $ — $ 5,729 Commercial properties 8,711 — (3,374) — — 5,337 Land and construction 892 — 834 — — 1,726 Commercial and industrial loans 9,249 — (1,400) (627) 864 8,086 Consumer loans 233 — (126) — — 107 Total $ 24,200 $ — $ (3,452) $ (627) $ 864 $ 20,985 Year Ended December 31, 2020: Real estate loans: Residential properties $ 8,423 $ 363 $ (3,671) $ — $ — $ 5,115 Commercial properties 4,166 3,760 785 — — 8,711 Land and construction 573 92 227 — — 892 Commercial and industrial loans 7,448 — 2,642 (1,844) 1,003 9,249 Consumer loans 190 — 43 — — 233 Total $ 20,800 $ 4,215 $ 26 $ (1,844) $ 1,003 $ 24,200 |
Balance in Allowance for Credit Losses and Recorded Investment in Loans by Impairment | The following table presents the balance in the allowance for credit losses and the recorded investment in loans by impairment method as of: Allowance for Credit Losses Loans Evaluated (dollars in thousands) Individually Collectively Total September 30, 2021: Allowance for credit losses: Real estate loans: Residential properties $ 1,174 $ 4,555 $ 5,729 Commercial properties 411 4,926 5,337 Land and construction — 1,726 1,726 Commercial and industrial loans 590 7,496 8,086 Consumer loans — 107 107 Total $ 2,175 $ 18,810 $ 20,985 Loans: Real estate loans: Residential properties $ 16,417 $ 3,332,782 $ 3,349,199 Commercial properties 13,931 656,395 670,326 Land and construction — 63,701 63,701 Commercial and industrial loans 7,611 1,208,630 1,216,241 Consumer loans — 9,492 9,492 Total $ 37,959 $ 5,271,000 $ 5,308,959 December 31, 2020: Allowance for credit losses: Real estate loans: Residential properties $ 1,059 $ 4,056 $ 5,115 Commercial properties 374 8,337 8,711 Land and construction — 892 892 Commercial and industrial loans 956 8,293 9,249 Consumer loans — 233 233 Total $ 2,389 $ 21,811 $ 24,200 Loans: Real estate loans: Residential properties $ 12,414 $ 3,041,142 $ 3,053,556 Commercial properties 17,304 730,503 747,807 Land and construction — 55,832 55,832 Commercial and industrial loans 6,472 912,204 918,676 Consumer loans — 18,888 18,888 Total $ 36,190 $ 4,758,569 $ 4,794,759 |
Risk Category of Loans Based on Year of Origination | The following tables present risk categories of loans based on year of origination, as of: Revolving (dollars in thousands) 2021 2020 2019 2018 2017 Prior Loans Total September 30, 2021: Loans secured by Real Estate: Residential Multifamily Pass $ 552,257 $ 887,859 $ 492,189 $ 305,631 $ 174,156 $ 114,690 $ — $ 2,526,782 Special Mention — — 1,182 — — — — 1,182 Substandard — — — — — — — — Total $ 552,257 $ 887,859 $ 493,371 $ 305,631 $ 174,156 $ 114,690 $ — $ 2,527,964 Single Family Pass $ 222,918 $ 132,447 $ 57,672 $ 71,626 $ 59,101 $ 239,357 $ 21,671 $ 804,792 Special Mention — — — — — — 26 26 Substandard — — — — 1,887 11,269 3,261 16,417 Total $ 222,918 $ 132,447 $ 57,672 $ 71,626 $ 60,988 $ 250,626 $ 24,958 $ 821,235 Commercial Real Estate Pass $ 55,894 $ 39,467 $ 76,225 $ 93,801 $ 120,021 $ 242,375 $ — $ 627,783 Special Mention — — 10,595 10,674 — 5,895 — 27,164 Substandard — — 5,861 — 2,252 7,266 — 15,379 Total $ 55,894 $ 39,467 $ 92,681 $ 104,475 $ 122,273 $ 255,536 $ — $ 670,326 Land and construction Pass $ 4,360 $ (13) $ 17,208 $ 31,060 $ 10,505 $ 581 $ — $ 63,701 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 4,360 $ (13) $ 17,208 $ 31,060 $ 10,505 $ 581 $ — $ 63,701 Commercial Pass $ 357,032 $ 206,077 $ 99,384 $ 24,709 $ 7,014 $ 22,685 $ 483,029 $ 1,199,930 Special Mention — 1,383 904 824 — 51 1,241 4,403 Substandard — 1,969 1,847 1,007 214 2,564 4,307 11,908 Total $ 357,032 $ 209,429 $ 102,135 $ 26,540 $ 7,228 $ 25,300 $ 488,577 $ 1,216,241 Consumer Pass $ 39 $ 1,142 $ — $ 1,249 $ — $ 81 $ 6,981 $ 9,492 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 39 $ 1,142 $ — $ 1,249 $ — $ 81 $ 6,981 $ 9,492 Total loans Pass $ 1,192,500 $ 1,266,979 $ 742,678 $ 528,076 $ 370,797 $ 619,769 $ 511,681 $ 5,232,480 Special Mention — 1,383 12,681 11,498 — 5,946 1,267 32,775 Substandard — 1,969 7,708 1,007 4,353 21,099 7,568 43,704 Total $ 1,192,500 $ 1,270,331 $ 763,067 $ 540,581 $ 375,150 $ 646,814 $ 520,516 $ 5,308,959 Revolving (dollars in thousands) 2020 2019 2018 2017 2016 Prior Loans Total December 31, 2020: Loans secured by Real Estate: Residential Multifamily Pass $ 774,701 $ 638,237 $ 469,866 $ 218,470 $ 82,941 $ 63,328 $ — $ 2,247,543 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 774,701 $ 638,237 $ 469,866 $ 218,470 $ 82,941 $ 63,328 $ — $ 2,247,543 Single Family Pass $ 173,563 $ 83,311 $ 110,560 $ 95,888 $ 107,568 $ 196,692 $ 25,014 $ 792,596 Special Mention — — — 986 — — — 986 Substandard — — — 1,946 — 7,134 3,351 12,431 Total $ 173,563 $ 83,311 $ 110,560 $ 98,820 $ 107,568 $ 203,826 $ 28,365 $ 806,013 Commercial Real Estate Pass $ 46,260 $ 100,432 $ 120,230 $ 129,120 $ 119,719 $ 194,533 $ — $ 710,294 Special Mention — 743 16,278 — 2,333 157 — 19,511 Substandard — 5,929 — 2,336 2,515 7,222 — 18,002 Total $ 46,260 $ 107,104 $ 136,508 $ 131,456 $ 124,567 $ 201,912 $ — $ 747,807 Land and construction Pass $ 257 $ 15,923 $ 27,792 $ 10,532 $ 706 $ 622 $ — $ 55,832 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 257 $ 15,923 $ 27,792 $ 10,532 $ 706 $ 622 $ — $ 55,832 Commercial Pass $ 377,500 $ 146,279 $ 54,910 $ 15,868 $ 13,180 $ 16,823 $ 270,604 $ 895,164 Special Mention 2,058 3,922 1,868 579 297 448 6,107 15,279 Substandard 1,226 316 1,188 259 2,459 281 2,504 8,233 Total $ 380,784 $ 150,517 $ 57,966 $ 16,706 $ 15,936 $ 17,552 $ 279,215 $ 918,676 Consumer Pass $ 2,557 $ — $ 1,321 $ 3 $ 6,784 $ 100 $ 8,123 $ 18,888 Special Mention — — — — — — — — Substandard — — — — — — — — Total $ 2,557 $ — $ 1,321 $ 3 $ 6,784 $ 100 $ 8,123 $ 18,888 Total loans Pass $ 1,374,838 $ 984,182 $ 784,679 $ 469,881 $ 330,898 $ 472,098 $ 303,741 $ 4,720,317 Special Mention 2,058 4,665 18,146 1,565 2,630 605 6,107 35,776 Substandard 1,226 6,245 1,188 4,541 4,974 14,637 5,855 38,666 Total $ 1,378,122 $ 995,092 $ 804,013 $ 475,987 $ 338,502 $ 487,340 $ 315,703 $ 4,794,759 |
Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Credit Losses and Related ACL Allocated to Loans | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses and the related allowance for credit losses (“ACL”) allocated to these loans: Equipment/ ACL (dollars in thousands) Real Estate Cash Receivables Total Allocation September 30, 2021: Loans secured by Real Estate: Residential properties Single family $ 9,918 $ — $ — $ 9,918 $ 1,157 Commercial loans — 250 — 250 — Total $ 9,918 $ 250 $ — $ 10,168 $ 1,157 December 31, 2020: Loans secured by Real Estate: Residential properties Single family $ 10,144 $ — $ — $ 10,144 $ 1,051 Commercial loans — 250 122 372 44 Total $ 10,144 $ 250 $ 122 $ 10,516 $ 1,095 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
DEPOSITS | |
Summary of Outstanding Balance of Deposits and Average Rates | The following table summarizes the outstanding balance of deposits and average rates paid thereon as of: September 30, 2021 December 31, 2020 Weighted Weighted (dollars in thousands) Amount Average Rate Amount Average Rate Demand deposits: Noninterest-bearing $ 2,995,570 — $ 1,655,847 — Interest-bearing 945,654 0.241 % 871,289 0.372 % Money market and savings 2,290,380 0.319 % 2,407,401 0.549 % Certificates of deposits 613,374 0.229 % 978,896 0.591 % Total $ 6,844,978 0.161 % $ 5,913,433 0.376 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 (dollars in thousands, except per share amounts) Basic Diluted Basic Diluted Net income $ 37,226 $ 37,226 $ 30,938 $ 30,938 Basic common shares outstanding 44,819,743 44,819,743 44,625,668 44,625,668 Effect of options, restricted stock and contingent shares issuable 183,194 260,108 Diluted common shares outstanding 45,002,937 44,885,776 Earnings per share $ 0.83 $ 0.83 $ 0.69 $ 0.69 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 (dollars in thousands, except share and per share amounts) Basic Diluted Basic Diluted Net income $ 85,635 $ 85,635 $ 62,003 $ 62,003 Basic common shares outstanding 44,773,683 44,773,683 44,638,634 44,638,634 Effect of options and restricted stock 204,180 244,978 Diluted common shares outstanding 44,977,863 44,883,612 Earnings per share $ 1.91 $ 1.90 $ 1.39 $ 1.38 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SEGMENT REPORTING | |
Key Operating Results of Business Segments | Wealth (dollars in thousands) Banking Management Other Total Three Months Ended September 30, 2021: Interest income $ 61,989 $ — $ — $ 61,989 Interest expense 2,753 — 49 2,802 Net interest income 59,236 — (49) 59,187 Provision for credit losses (417) — — (417) Noninterest income 23,202 7,857 (379) 30,680 Noninterest expense 31,488 6,338 568 38,394 Income (loss) before taxes on income $ 51,367 $ 1,519 $ (996) $ 51,890 Three Months Ended September 30, 2020: Interest income $ 61,691 $ — $ — $ 61,691 Interest expense 10,024 — 50 10,074 Net interest income 51,667 — (50) 51,617 Provision for credit losses 1,548 — — 1,548 Noninterest income 17,976 6,020 (355) 23,641 Noninterest expense 24,949 5,166 480 30,595 Income (loss) before taxes on income $ 43,146 $ 854 $ (885) $ 43,115 Wealth (dollars in thousands) Banking Management Other Total Nine Months Ended September 30, 2021: Interest income $ 182,530 $ — $ — $ 182,530 Interest expense 10,988 — 216 11,204 Net interest income 171,542 — (216) 171,326 Provision for credit losses (13) — — (13) Noninterest income 35,710 22,020 (1,107) 56,623 Noninterest expense 88,935 17,441 2,146 108,522 Income (loss) before taxes on income $ 118,330 $ 4,579 $ (3,469) $ 119,440 Nine Months Ended September 30, 2020: Interest income $ 185,961 $ — $ — $ 185,961 Interest expense 40,899 — 130 41,029 Net interest income 145,062 — (130) 144,932 Provision for credit losses 6,979 — — 6,979 Noninterest income 26,270 18,139 (1,124) 43,285 Noninterest expense 76,235 16,735 1,434 94,404 Income (loss) before taxes on income $ 88,118 $ 1,404 $ (2,688) $ 86,834 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | 9 Months Ended |
Sep. 30, 2021subsidiary | |
BASIS OF PRESENTATION | |
Number of inactive wholly owned subsidiaries | 2 |
FAIR VALUE MEASUREMENTS- Record
FAIR VALUE MEASUREMENTS- Recorded Amounts of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 891,648 | $ 807,426 |
Investment in equity securities | 540 | 338 |
Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,650 | 1,610 |
Agency mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 757,942 | 723,995 |
Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 13,145 | 23,463 |
Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 116,911 | 58,358 |
Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 540 | 338 |
Total assets at fair value on a recurring basis | 892,188 | 807,764 |
Fair Value on Recurring Basis | Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,650 | 1,610 |
Fair Value on Recurring Basis | Agency mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 757,942 | 723,995 |
Fair Value on Recurring Basis | Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 13,145 | 23,463 |
Fair Value on Recurring Basis | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 116,911 | 58,358 |
Fair Value Measurement Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 497 | 503 |
Investment in equity securities | 540 | 338 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment in equity securities | 540 | 338 |
Total assets at fair value on a recurring basis | 1,037 | 841 |
Fair Value Measurement Level 1 | Fair Value on Recurring Basis | Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 497 | 503 |
Fair Value Measurement Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 878,006 | 783,460 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 878,006 | 783,460 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Other | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,153 | 1,107 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Agency mortgage-backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 757,942 | 723,995 |
Fair Value Measurement Level 2 | Fair Value on Recurring Basis | Corporate bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 116,911 | 58,358 |
Fair Value Measurement Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 13,145 | 23,463 |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value on a recurring basis | 13,145 | 23,463 |
Fair Value Measurement Level 3 | Fair Value on Recurring Basis | Beneficial interest - FHLMC securitizations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 13,145 | $ 23,463 |
FAIR VALUE MEASUREMENTS - Valua
FAIR VALUE MEASUREMENTS - Valuation assumptions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Reserves related to impaired loans | $ 1,200 | $ 1,200 | $ 1,100 | ||
Provision for credit losses - loans | (417) | $ 1,548 | (13) | $ 6,979 | |
Fair Value Measurement Level 3 | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Provision for credit losses - loans | 2,900 | ||||
Impaired loans | $ 10,200 | $ 10,200 | $ 3,100 | ||
Fair Value Measurement Level 3 | Prepayment Rate | Minimum | Available for Sale | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.30 | 0.30 | 0.30 | ||
Fair Value Measurement Level 3 | Prepayment Rate | Minimum | Mortgage Servicing Rights | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.20 | 0.20 | |||
Fair Value Measurement Level 3 | Prepayment Rate | Maximum | Available for Sale | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.35 | 0.35 | 0.35 | ||
Fair Value Measurement Level 3 | Prepayment Rate | Maximum | Mortgage Servicing Rights | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.30 | 0.30 | |||
Fair Value Measurement Level 3 | Discount Rate | Minimum | Available for Sale | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.0670 | 0.0670 | 0.0670 | ||
Fair Value Measurement Level 3 | Discount Rate | Minimum | Mortgage Servicing Rights | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.0021 | 0.0021 | |||
Fair Value Measurement Level 3 | Discount Rate | Maximum | Available for Sale | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.10 | 0.10 | 0.10 | ||
Fair Value Measurement Level 3 | Discount Rate | Maximum | Mortgage Servicing Rights | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Alternative investment measurement input | 0.10 | 0.10 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 783,376 | $ 629,707 |
Securities AFS, net | 891,648 | 807,426 |
Loans held for sale | 501,433 | 505,404 |
Loans, net | 5,287,974 | 4,779,599 |
Investment in FHLB stock | 17,250 | 17,250 |
Investment in equity securities | 540 | 338 |
Liabilities: | ||
Deposits | 6,844,978 | 5,913,433 |
Borrowings | 12,500 | 269,000 |
Assets Fair Value: | ||
Cash and cash equivalents | 783,376 | 629,707 |
Securities AFS, net | 891,648 | 807,426 |
Loans held for sale | 506,547 | 510,638 |
Loans, net | 5,342,001 | 4,829,258 |
Investment in FHLB stock | 17,250 | 17,250 |
Investment in equity securities | 540 | 338 |
Liabilities Fair Value: | ||
Deposits | 6,851,021 | 5,913,434 |
Borrowings | 12,500 | 269,000 |
Fair Value Measurement Level 1 | ||
ASSETS | ||
Securities AFS, net | 497 | 503 |
Investment in equity securities | 540 | 338 |
Assets Fair Value: | ||
Cash and cash equivalents | 783,376 | 629,707 |
Securities AFS, net | 497 | 503 |
Investment in equity securities | 540 | 338 |
Liabilities Fair Value: | ||
Deposits | 6,231,505 | 4,934,537 |
Fair Value Measurement Level 2 | ||
ASSETS | ||
Securities AFS, net | 878,006 | 783,460 |
Investment in FHLB stock | 17,250 | 17,250 |
Assets Fair Value: | ||
Securities AFS, net | 878,006 | 783,460 |
Loans held for sale | 506,547 | 510,638 |
Investment in FHLB stock | 17,250 | 17,250 |
Liabilities Fair Value: | ||
Deposits | 619,516 | 978,897 |
Borrowings | 255,000 | |
Fair Value Measurement Level 3 | ||
ASSETS | ||
Securities AFS, net | 13,145 | 23,463 |
Assets Fair Value: | ||
Securities AFS, net | 13,145 | 23,463 |
Loans, net | 5,342,001 | 4,829,258 |
Liabilities Fair Value: | ||
Borrowings | $ 12,500 | $ 14,000 |
SECURITIES - Summary of AFS Sec
SECURITIES - Summary of AFS Securities Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | $ 889,354 | $ 794,761 | |
Gross Unrealized gains | 13,518 | 19,910 | |
Gross Unrealized losses | (1,126) | ||
Allowance for credit losses - investments | (10,098) | $ (9,116) | (7,245) |
Estimated Fair Value | 891,648 | 807,426 | |
Other | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 3,561 | 1,512 | |
Gross Unrealized gains | 91 | 98 | |
Gross Unrealized losses | (2) | ||
Estimated Fair Value | 3,650 | 1,610 | |
Agency mortgage-backed Securities | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 749,029 | 705,752 | |
Gross Unrealized gains | 9,914 | 18,243 | |
Gross Unrealized losses | (1,001) | ||
Estimated Fair Value | 757,942 | 723,995 | |
Beneficial interest - FHLMC securitizations | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 22,764 | 30,497 | |
Gross Unrealized gains | 479 | 211 | |
Allowance for credit losses - investments | (10,098) | (7,245) | |
Estimated Fair Value | 13,145 | 23,463 | |
Corporate bonds | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Amortized cost | 114,000 | 57,000 | |
Gross Unrealized gains | 3,034 | 1,358 | |
Gross Unrealized losses | (123) | ||
Estimated Fair Value | $ 116,911 | $ 58,358 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Weighted average yield, total | 4.30% | 5.32% |
US Treasury Securities | Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities pledged as collateral | $ 0.5 | $ 0.5 |
Agency mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities pledged as collateral | $ 169.7 | |
Agency Mortgage-backed Securities and Beneficial interests in FHLMC securitization | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Weighted average yield, total | 2.00% | 2.39% |
SECURITIES - Schedule of Securi
SECURITIES - Schedule of Securities in a Continuous Unrealized Loss Position Aggregated by Investment Category and Length of Time (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 107,140 | |
Less than 12 months, Unrealized Loss | (1,126) | |
Total, Fair Value | 107,140 | |
Total, Unrealized Loss | (1,126) | $ 0 |
Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 497 | |
Less than 12 months, Unrealized Loss | (2) | |
Total, Fair Value | 497 | |
Total, Unrealized Loss | (2) | |
Agency mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 86,766 | |
Less than 12 months, Unrealized Loss | (1,001) | |
Total, Fair Value | 86,766 | |
Total, Unrealized Loss | (1,001) | |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 19,877 | |
Less than 12 months, Unrealized Loss | (123) | |
Total, Fair Value | 19,877 | |
Total, Unrealized Loss | $ (123) |
SECURITIES - Schedule of Allowa
SECURITIES - Schedule of Allowance for Credit Losses - Securities AFS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Investments [Abstract] | ||||
Beginning Balance for period | $ 9,116 | $ 7,245 | ||
Provision for credit losses - securities AFS | 982 | 2,853 | $ 8,049 | $ 7,245 |
Ending Balance for period | $ 10,098 | $ 10,098 | $ 7,245 |
SECURITIES - Scheduled Maturiti
SECURITIES - Scheduled Maturities of Securities AFS and the Related Weighted Average Yields (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | $ 500 | |
Amortized cost, one through five years | $ 1,533 | 1,012 |
Amortized cost, five through ten years | 111,028 | 57,000 |
Amortized cost, after ten years | 5,000 | |
Amortized cost, total | $ 117,561 | $ 58,512 |
Weighted average yield, less than one year | 1.83% | |
Weighted average yield, one through five years | 2.03% | 2.81% |
Weighted average yield, five through ten years | 4.37% | 5.39% |
Weighted average yield, after ten years | 3.38% | |
Weighted average yield, total | 4.30% | 5.32% |
Estimated fair value, less than one year | $ 503 | |
Estimated fair value, one through five years | $ 1,619 | 1,107 |
Estimated fair value, five through ten years | 113,842 | 58,358 |
Estimated fair value, after ten years | 5,100 | |
Estimated fair value, total | 120,561 | 59,968 |
Other | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, less than one year | 500 | |
Amortized cost, one through five years | 1,533 | 1,012 |
Amortized cost, five through ten years | 2,028 | |
Amortized cost, total | 3,561 | 1,512 |
Estimated fair value, less than one year | 503 | |
Estimated fair value, one through five years | 1,619 | 1,107 |
Estimated fair value, five through ten years | 2,031 | |
Estimated fair value, total | 3,650 | 1,610 |
Corporate bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, five through ten years | 109,000 | 57,000 |
Amortized cost, after ten years | 5,000 | |
Amortized cost, total | 114,000 | 57,000 |
Estimated fair value, five through ten years | 111,811 | 58,358 |
Estimated fair value, after ten years | 5,100 | |
Estimated fair value, total | $ 116,911 | $ 58,358 |
LOANS - Summary of Loans (Detai
LOANS - Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | $ 5,297,283 | $ 4,794,759 |
Premiums, discounts and deferred fees and expenses | 11,676 | 9,040 |
Total | 5,308,959 | 4,803,799 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,053,556 | |
Total | 3,349,199 | |
Multifamily | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 2,527,964 | |
Single family | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 821,235 | |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 747,807 | |
Total | 670,326 | |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 55,832 | |
Total | 63,701 | |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 1,217,078 | 918,676 |
Total | 1,216,241 | |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 9,468 | 18,888 |
Total | 9,492 | |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,070,737 | 3,857,195 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,337,119 | 3,053,556 |
Total | 3,349,199 | |
Real Estate Loans | Multifamily | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 2,518,151 | 2,247,542 |
Real Estate Loans | Single family | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 818,968 | 806,014 |
Real Estate Loans | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 669,912 | 747,807 |
Total | 670,326 | |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 63,706 | $ 55,832 |
Total | $ 63,701 |
LOANS - Summary of Delinquent a
LOANS - Summary of Delinquent and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | $ 22,996 | $ 23,430 |
90 Days or More Past Due and Still Accruing | 152 | |
Nonaccrual Past Due and Still Accruing | 18,706 | 20,628 |
Current | 5,285,963 | 4,771,329 |
Total loans | 5,297,283 | 4,794,759 |
Total | $ 5,308,959 | $ 4,803,799 |
Percentage of Total Loans Due 30-59 Days | 0.08% | 0.04% |
Percentage of Total Loans Due 60-89 Days | 0.00% | 0.01% |
Percentage of Total Loans Due 90 Days or More | 0.00% | |
Percentage of Total Loans Due Nonaccrual | 0.35% | 0.43% |
Percentage of Total Loans | 0.43% | 0.49% |
30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | $ 4,168 | $ 1,999 |
60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 122 | 651 |
Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 3,053,556 | |
Total | 3,349,199 | |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 747,807 | |
Total | 670,326 | |
Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 55,832 | |
Total | 63,701 | |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 6,682 | 6,713 |
90 Days or More Past Due and Still Accruing | 152 | |
Nonaccrual Past Due and Still Accruing | 6,481 | 5,137 |
Current | 1,209,559 | 911,963 |
Total loans | 1,217,078 | 918,676 |
Total | 1,216,241 | |
Commercial and Industrial Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 79 | 1,013 |
Commercial and Industrial Loans | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 122 | 411 |
Consumer Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 1,142 | |
Current | 8,350 | 18,888 |
Total loans | 9,468 | 18,888 |
Total | 9,492 | |
Consumer Loans | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 1,142 | |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans | 4,070,737 | 3,857,195 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 10,652 | 10,982 |
Nonaccrual Past Due and Still Accruing | 10,652 | 10,947 |
Current | 3,338,547 | 3,042,574 |
Total loans | 3,337,119 | 3,053,556 |
Total | 3,349,199 | |
Real Estate Loans | Residential Properties | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 35 | |
Real Estate Loans | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 4,520 | 5,735 |
Nonaccrual Past Due and Still Accruing | 1,573 | 4,544 |
Current | 665,806 | 742,072 |
Total loans | 669,912 | 747,807 |
Total | 670,326 | |
Real Estate Loans | Commercial Real Estate | 30-59 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 2,947 | 951 |
Real Estate Loans | Commercial Real Estate | 60-89 Days | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Past Due and Nonaccrual | 240 | |
Real Estate Loans | Land and Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Current | 63,701 | 55,832 |
Total loans | 63,706 | $ 55,832 |
Total | $ 63,701 |
LOANS - Summary of Nonaccrual L
LOANS - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | $ 4,788 | $ 5,568 |
Nonaccrual with No Allowance for Credit Losses | 13,918 | 15,060 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | 1,845 | 2,581 |
Nonaccrual with No Allowance for Credit Losses | 4,636 | 2,557 |
Real Estate Loans | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with Allowance for Credit Losses | 2,943 | 2,987 |
Nonaccrual with No Allowance for Credit Losses | 7,709 | 7,959 |
Real Estate Loans | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual with No Allowance for Credit Losses | $ 1,573 | $ 4,544 |
LOANS - Composition of TDRs by
LOANS - Composition of TDRs by Accrual and Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | $ 18,706 | $ 20,628 |
Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Nonaccrual | 6,481 | 5,137 |
Principal Reduction And Extended Maturity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 3,106 | 3,348 |
Troubled Debt Restructurings, Nonaccrual | 3,301 | 4,109 |
Troubled Debt Restructurings, Total | 6,407 | 7,457 |
Principal Reduction And Extended Maturity | Residential Properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,200 | 1,200 |
Troubled Debt Restructurings, Total | 1,200 | 1,200 |
Principal Reduction And Extended Maturity | Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 1,043 | 1,107 |
Troubled Debt Restructurings, Nonaccrual | 1,201 | 1,277 |
Troubled Debt Restructurings, Total | 2,244 | 2,384 |
Principal Reduction And Extended Maturity | Commercial and Industrial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Troubled Debt Restructurings, Accrual | 863 | 1,041 |
Troubled Debt Restructurings, Nonaccrual | 2,100 | 2,832 |
Troubled Debt Restructurings, Total | $ 2,963 | $ 3,873 |
LOANS - Schedule of Detail of L
LOANS - Schedule of Detail of Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 1 | 1 |
Outstanding recorded investment, pre-modification | $ 346 | $ 507 |
Outstanding recorded investment, post-modification | $ 346 | $ 507 |
Commercial and Industrial Loans | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 1 | 1 |
Outstanding recorded investment, pre-modification | $ 346 | $ 507 |
Outstanding recorded investment, post-modification | $ 346 | $ 507 |
ALLOWANCE FOR CREDIT LOSSES - B
ALLOWANCE FOR CREDIT LOSSES - Bank's Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | $ 22,272 | $ 24,200 | $ 20,800 |
Changes due to adoption | 4,215 | ||
Provision for Credit Losses | (1,423) | (3,452) | 26 |
Charge-offs | (219) | (627) | (1,844) |
Recoveries | 355 | 864 | 1,003 |
Ending Balance | 20,985 | 20,985 | 24,200 |
Residential Properties | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 7,236 | 5,115 | 8,423 |
Changes due to adoption | 363 | ||
Provision for Credit Losses | (1,507) | 614 | (3,671) |
Ending Balance | 5,729 | 5,729 | 5,115 |
Commercial Real Estate | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 5,485 | 8,711 | 4,166 |
Changes due to adoption | 3,760 | ||
Provision for Credit Losses | (148) | (3,374) | 785 |
Ending Balance | 5,337 | 5,337 | 8,711 |
Land and Construction | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 1,984 | 892 | 573 |
Changes due to adoption | 92 | ||
Provision for Credit Losses | (258) | 834 | 227 |
Ending Balance | 1,726 | 1,726 | 892 |
Commercial and Industrial Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 7,458 | 9,249 | 7,448 |
Provision for Credit Losses | 492 | (1,400) | 2,642 |
Charge-offs | (219) | (627) | (1,844) |
Recoveries | 355 | 864 | 1,003 |
Ending Balance | 8,086 | 8,086 | 9,249 |
Consumer Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Beginning Balance | 109 | 233 | 190 |
Provision for Credit Losses | (2) | (126) | 43 |
Ending Balance | $ 107 | $ 107 | $ 233 |
ALLOWANCE FOR CREDIT LOSSES -_2
ALLOWANCE FOR CREDIT LOSSES - Balance in Allowance for Credit Losses and Recorded Investment in Loans by Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | $ 2,175 | $ 2,389 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 18,810 | 21,811 |
Total Allowance for Credit Losses | 20,985 | 24,200 |
Loans, Individually Evaluated for Impairment | 37,959 | 36,190 |
Loans, Collectively Evaluated for Impairment | 5,271,000 | 4,758,569 |
Total loans | 5,297,283 | 4,794,759 |
Total | 5,308,959 | 4,803,799 |
Residential Properties | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 1,174 | 1,059 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,555 | 4,056 |
Total Allowance for Credit Losses | 5,729 | 5,115 |
Loans, Individually Evaluated for Impairment | 16,417 | 12,414 |
Loans, Collectively Evaluated for Impairment | 3,332,782 | 3,041,142 |
Total loans | 3,053,556 | |
Total | 3,349,199 | |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 411 | 374 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,926 | 8,337 |
Total Allowance for Credit Losses | 5,337 | 8,711 |
Loans, Individually Evaluated for Impairment | 13,931 | 17,304 |
Loans, Collectively Evaluated for Impairment | 656,395 | 730,503 |
Total loans | 747,807 | |
Total | 670,326 | |
Land and Construction | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,726 | 892 |
Total Allowance for Credit Losses | 1,726 | 892 |
Loans, Collectively Evaluated for Impairment | 63,701 | 55,832 |
Total loans | 55,832 | |
Total | 63,701 | |
Commercial and Industrial Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Individually Evaluated for Impairment | 590 | 956 |
Allowance for Credit Losses, Collectively Evaluated for Impairment | 7,496 | 8,293 |
Total Allowance for Credit Losses | 8,086 | 9,249 |
Loans, Individually Evaluated for Impairment | 7,611 | 6,472 |
Loans, Collectively Evaluated for Impairment | 1,208,630 | 912,204 |
Total loans | 1,217,078 | 918,676 |
Total | 1,216,241 | |
Consumer Loans | ||
Financing Receivable Impaired [Line Items] | ||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 107 | 233 |
Total Allowance for Credit Losses | 107 | 233 |
Loans, Collectively Evaluated for Impairment | 9,492 | 18,888 |
Total loans | 9,468 | $ 18,888 |
Total | $ 9,492 |
ALLOWANCE FOR CREDIT LOSSES - R
ALLOWANCE FOR CREDIT LOSSES - Risk Category of Loans Based on Year of Origination (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | $ 1,192,500 | $ 1,378,122 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,270,331 | 995,092 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 763,067 | 804,013 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 540,581 | 475,987 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 375,150 | 338,502 |
Prior | 646,814 | 487,340 |
Revolving Loans | 520,516 | 315,703 |
Total loans | 4,794,759 | |
Total | 5,308,959 | 4,803,799 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 1,192,500 | 1,374,838 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,266,979 | 984,182 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 742,678 | 784,679 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 528,076 | 469,881 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 370,797 | 330,898 |
Prior | 619,769 | 472,098 |
Revolving Loans | 511,681 | 303,741 |
Total loans | 4,720,317 | |
Total | 5,232,480 | |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 2,058 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,383 | 4,665 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 12,681 | 18,146 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 11,498 | 1,565 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 2,630 | |
Prior | 5,946 | 605 |
Revolving Loans | 1,267 | 6,107 |
Total loans | 35,776 | |
Total | 32,775 | |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 1,226 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,969 | 6,245 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 7,708 | 1,188 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,007 | 4,541 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 4,353 | 4,974 |
Prior | 21,099 | 14,637 |
Revolving Loans | 7,568 | 5,855 |
Total loans | 38,666 | |
Total | 43,704 | |
Residential Properties | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 774,701 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 638,237 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 469,866 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 218,470 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 82,941 | |
Prior | 63,328 | |
Total loans | 2,247,543 | |
Total | 3,349,199 | |
Residential Properties | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 774,701 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 638,237 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 469,866 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 218,470 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 82,941 | |
Prior | 63,328 | |
Total loans | 2,247,543 | |
Multifamily | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 552,257 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 887,859 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 493,371 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 305,631 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 174,156 | |
Prior | 114,690 | |
Total | 2,527,964 | |
Multifamily | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 552,257 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 887,859 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 492,189 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 305,631 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 174,156 | |
Prior | 114,690 | |
Total | 2,526,782 | |
Multifamily | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,182 | |
Total | 1,182 | |
Single family | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 222,918 | 173,563 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 132,447 | 83,311 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 57,672 | 110,560 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 71,626 | 98,820 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 60,988 | 107,568 |
Prior | 250,626 | 203,826 |
Revolving Loans | 24,958 | 28,365 |
Total loans | 806,013 | |
Total | 821,235 | |
Single family | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 222,918 | 173,563 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 132,447 | 83,311 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 57,672 | 110,560 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 71,626 | 95,888 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 59,101 | 107,568 |
Prior | 239,357 | 196,692 |
Revolving Loans | 21,671 | 25,014 |
Total loans | 792,596 | |
Total | 804,792 | |
Single family | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated Three Years Before Latest Fiscal Year | 986 | |
Revolving Loans | 26 | |
Total loans | 986 | |
Total | 26 | |
Single family | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,946 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 1,887 | |
Prior | 11,269 | 7,134 |
Revolving Loans | 3,261 | 3,351 |
Total loans | 12,431 | |
Total | 16,417 | |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 55,894 | 46,260 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 39,467 | 107,104 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 92,681 | 136,508 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 104,475 | 131,456 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 122,273 | 124,567 |
Prior | 255,536 | 201,912 |
Total loans | 747,807 | |
Total | 670,326 | |
Commercial Real Estate | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 55,894 | 46,260 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 39,467 | 100,432 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 76,225 | 120,230 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 93,801 | 129,120 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 120,021 | 119,719 |
Prior | 242,375 | 194,533 |
Total loans | 710,294 | |
Total | 627,783 | |
Commercial Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 743 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 10,595 | 16,278 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 10,674 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 2,333 | |
Prior | 5,895 | 157 |
Total loans | 19,511 | |
Total | 27,164 | |
Commercial Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 5,929 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 5,861 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 2,336 | |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 2,252 | 2,515 |
Prior | 7,266 | 7,222 |
Total loans | 18,002 | |
Total | 15,379 | |
Land and Construction | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 4,360 | 257 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | (13) | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 15,923 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 17,208 | 27,792 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 31,060 | 10,532 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 10,505 | 706 |
Prior | 581 | 622 |
Total loans | 55,832 | |
Total | 63,701 | |
Land and Construction | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 4,360 | 257 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | (13) | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 15,923 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 17,208 | 27,792 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 31,060 | 10,532 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 10,505 | 706 |
Prior | 581 | 622 |
Total loans | 55,832 | |
Total | 63,701 | |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 357,032 | 380,784 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 209,429 | 150,517 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 102,135 | 57,966 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 26,540 | 16,706 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 7,228 | 15,936 |
Prior | 25,300 | 17,552 |
Revolving Loans | 488,577 | 279,215 |
Total loans | 918,676 | |
Total | 1,216,241 | |
Commercial and Industrial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 357,032 | 377,500 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 206,077 | 146,279 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 99,384 | 54,910 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 24,709 | 15,868 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 7,014 | 13,180 |
Prior | 22,685 | 16,823 |
Revolving Loans | 483,029 | 270,604 |
Total loans | 895,164 | |
Total | 1,199,930 | |
Commercial and Industrial Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 2,058 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,383 | 3,922 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 904 | 1,868 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 824 | 579 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 297 | |
Prior | 51 | 448 |
Revolving Loans | 1,241 | 6,107 |
Total loans | 15,279 | |
Total | 4,403 | |
Commercial and Industrial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 1,226 | |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,969 | 316 |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,847 | 1,188 |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,007 | 259 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 214 | 2,459 |
Prior | 2,564 | 281 |
Revolving Loans | 4,307 | 2,504 |
Total loans | 8,233 | |
Total | 11,908 | |
Consumer Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 39 | 2,557 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,142 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,321 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,249 | 3 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 6,784 | |
Prior | 81 | 100 |
Revolving Loans | 6,981 | 8,123 |
Total loans | 18,888 | |
Total | 9,492 | |
Consumer Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing Receivable Originated In Current Fiscal Year | 39 | 2,557 |
Financing Receivable Originated In Fiscal Year Before Latest Fiscal Year | 1,142 | |
Financing Receivable Originated Two Years Before Latest Fiscal Year | 1,321 | |
Financing Receivable Originated Three Years Before Latest Fiscal Year | 1,249 | 3 |
Financing Receivable Originated Four Years Before Latest Fiscal Year | 6,784 | |
Prior | 81 | 100 |
Revolving Loans | 6,981 | 8,123 |
Total loans | $ 18,888 | |
Total | $ 9,492 |
ALLOWANCE FOR CREDIT LOSSES - A
ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Credit Losses and Related ACL Allocated to Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Allowance for Credit Losses | $ 20,985 | $ 24,200 |
Collateral Dependent Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 10,168 | 10,516 |
Total Allowance for Credit Losses | 1,157 | 1,095 |
Collateral Dependent Loans | Real Estate. | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 9,918 | 10,144 |
Collateral Dependent Loans | Cash | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 250 | 250 |
Collateral Dependent Loans | Equipment/Receivables | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 122 | |
Collateral Dependent Loans | Single family | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 9,918 | 10,144 |
Total Allowance for Credit Losses | 1,157 | 1,051 |
Collateral Dependent Loans | Single family | Real Estate. | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 9,918 | 10,144 |
Collateral Dependent Loans | Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | 250 | 372 |
Total Allowance for Credit Losses | 44 | |
Collateral Dependent Loans | Commercial and Industrial Loans | Cash | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | $ 250 | 250 |
Collateral Dependent Loans | Commercial and Industrial Loans | Equipment/Receivables | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Amortized cost | $ 122 |
LOAN SALES AND MORTGAGE SERVI_2
LOAN SALES AND MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loan Sales And Mortgage Servicing Rights [Line Items] | |||||
Gain on sale of loans | $ 18,135 | $ 15,140 | $ 21,459 | $ 15,140 | |
First Foundation Bank | |||||
Loan Sales And Mortgage Servicing Rights [Line Items] | |||||
Sale of multifamily loans through securitization | 580,000 | $ 553,000 | |||
Gain on sale of loans | 21,500 | 15,100 | |||
Mortgage servicing rights | 10,700 | 10,700 | 7,900 | ||
Loans serviced for others | 1,500,000 | 1,500,000 | 1,500,000 | ||
Valuation allowance of mortgage servicing rights | 3,600 | 3,600 | $ 1,400 | ||
Valuation provision on mortgage servicing rights | $ 3,100 | 3,100 | |||
Servicing fees earned on loans | $ 2,300 | $ 300 |
DEPOSITS - Summary of Outstandi
DEPOSITS - Summary of Outstanding Balance of Deposits and Average Rates (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
DEPOSITS | ||
Demand deposits, Noninterest-bearing | $ 2,995,570 | $ 1,655,847 |
Demand deposits, Interest-bearing | 945,654 | 871,289 |
Money market and savings | 2,290,380 | 2,407,401 |
Certificates of deposits | 613,374 | 978,896 |
Total | $ 6,844,978 | $ 5,913,433 |
Demand deposits, Interest-bearing, Weighted Average Rate | 0.241% | 0.372% |
Money market and savings, Weighted Average Rate | 0.319% | 0.549% |
Certificates of deposits, Weighted Average Rate | 0.229% | 0.591% |
Total, Weighted Average Rate | 0.161% | 0.376% |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
DEPOSITS | ||
Certificates of deposits of $250,000 or more, maturities within one year | $ 342 | $ 409 |
Certificates of deposits of $250,000 or more, maturities after one year | 2 | 7 |
Certificates of deposits of $250,000 or more, total | 344 | 416 |
Certificates of deposit of less than $ 250,000, maturities within one year | 260 | 520 |
Certificates of deposit of less than $ 250,000, maturities after one year | 9 | 43 |
Certificates of deposit of less than $250,000, total | $ 269 | $ 563 |
BORROWINGS (Details)
BORROWINGS (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)Institution | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||
Overnight FHLB advances | $ 255,000,000 | ||
Long-term line of credit | $ 0 | ||
Loans pledged as collateral | 3,800,000,000 | ||
Federal Home Loan Bank, maximum borrowing capacity | 2,500,000,000 | ||
Federal Home Loan Bank, additional credit available | 275,000,000 | ||
Unsecured debt | $ 195,000,000 | ||
Number of financial institutions | Institution | 5 | ||
Unused lines of credit | $ 2,900,000,000 | 2,400,000,000 | |
FHLB, average daily balance of borrowings outstanding | 56,000,000 | ||
Secured debt | 204,000,000 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 20,000,000 | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Unsecured debt | 100,000,000 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowing capacity | $ 40,000,000 | ||
Line of credit maturity period | 5 years | ||
Revolving Credit Facility | 90 Day LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument basis point rate | 3.50% | ||
FFI | |||
Debt Instrument [Line Items] | |||
Long-term line of credit | $ 12,500,000 | $ 14,000,000 | |
Line of credit facility, Interest rate | 3.64% |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
EARNINGS PER SHARE | ||||
Net income | $ 37,226 | $ 30,938 | $ 85,635 | $ 62,003 |
Basic common shares outstanding | 44,819,743 | 44,625,668 | 44,773,683 | 44,638,634 |
Earnings per share, Basic | $ 0.83 | $ 0.69 | $ 1.91 | $ 1.39 |
Net income, Diluted | $ 37,226 | $ 30,938 | $ 85,635 | $ 62,003 |
Effect of options and restricted stock | 183,194 | 260,108 | 204,180 | 244,978 |
Diluted common shares outstanding | 45,002,937 | 44,885,776 | 44,977,863 | 44,883,612 |
Earnings per share, Diluted | $ 0.83 | $ 0.69 | $ 1.90 | $ 1.38 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive (Details) | 9 Months Ended |
Sep. 30, 2020shares | |
Restricted Stock Units | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from computation of earnings per share | 39,439 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
SEGMENT REPORTING | ||||
Reportable business segments | 2 | 2 | 2 | 2 |
SEGMENT REPORTING - Key Operati
SEGMENT REPORTING - Key Operating Results of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Interest income | $ 61,989 | $ 61,691 | $ 182,530 | $ 185,961 |
Interest expense | 2,802 | 10,074 | 11,204 | 41,029 |
Net interest income | 59,187 | 51,617 | 171,326 | 144,932 |
Provision for credit losses | (417) | 1,548 | (13) | 6,979 |
Noninterest income | 30,680 | 23,641 | 56,623 | 43,285 |
Noninterest expense | 38,394 | 30,595 | 108,522 | 94,404 |
Income before taxes on income | 51,890 | 43,115 | 119,440 | 86,834 |
Operating Segments | Banking | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 61,989 | 61,691 | 182,530 | 185,961 |
Interest expense | 2,753 | 10,024 | 10,988 | 40,899 |
Net interest income | 59,236 | 51,667 | 171,542 | 145,062 |
Provision for credit losses | (417) | 1,548 | (13) | 6,979 |
Noninterest income | 23,202 | 17,976 | 35,710 | 26,270 |
Noninterest expense | 31,488 | 24,949 | 88,935 | 76,235 |
Income before taxes on income | 51,367 | 43,146 | 118,330 | 88,118 |
Operating Segments | Wealth Management | ||||
Segment Reporting Information [Line Items] | ||||
Noninterest income | 7,857 | 6,020 | 22,020 | 18,139 |
Noninterest expense | 6,338 | 5,166 | 17,441 | 16,735 |
Income before taxes on income | 1,519 | 854 | 4,579 | 1,404 |
Other. | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | 49 | 50 | 216 | 130 |
Net interest income | (49) | (50) | (216) | (130) |
Noninterest income | (379) | (355) | (1,107) | (1,124) |
Noninterest expense | 568 | 480 | 2,146 | 1,434 |
Income before taxes on income | $ (996) | $ (885) | $ (3,469) | $ (2,688) |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - TGR Financial | Jun. 02, 2021D |
ACQUISITIONS | |
Exchange Ratio | 0.6068 |
Number of trading days prior to closing of merger | 20 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Oct. 26, 2021$ / shares |
Subsequent Event [Line Items] | |
Dividends payable, amount per share | $ 0.09 |
Dividends payable, date to be paid | Nov. 15, 2021 |
Dividends payable, date of record | Nov. 5, 2021 |